Shares of Nordic Mining ASA fell more than 4% on Wednesday, deepening a 6.3% decline from the prior session, after the company reported a liquidity shortfall and slower-than-anticipated progress at its Engebø Rutile and Garnet facility in Norway.
The Oslo-listed miner posted an operating loss of NOK 154.3 million in the second quarter, with operating expenses totaling NOK 122.1 million. Cash on hand stood at roughly NOK 150 million at quarter-end, while the company has invested over NOK 3 billion in the project to date.
Production metrics reflected the ramp-up challenges: 1,262 tonnes of rutile and 10,127 tonnes of garnet were produced, but no revenue was recognized during the period. Nordic Mining attributed the revenue delay to ongoing discussions with customers regarding product quality for shipments made in the quarter.
Liquidity constraints remain a critical concern. The company’s cash runway extends only until September 4, 2026, following a deferred coupon payment and waivers secured from lenders. Management is targeting an additional $10–15 million in new liquidity to fund operations through November 2026, with discussions underway with bondholders, shareholders, and potential new investors to restructure its capital base.
Regulatory hurdles have also weighed on operations. Nordic Mining has operated under a temporary permit following a Norwegian Supreme Court ruling that invalidated its tailings disposal permits due to insufficient reasoning. A decision on a new temporary permit application is expected in September.
Chief Executive Finn Ivar Marum acknowledged the operational progress made in the quarter, including increased throughput and improved routines, while emphasizing the need for a sustainable liquidity solution. "We remain realistic about the challenges ahead and the time needed to reach full performance and reliability," he stated.
The company has revised its production profile following a comprehensive ramp-up review but maintains its long-term goal of generating significant free cash flow once the Engebø facility reaches full capacity.
