Endomines AB (publ)

Hello everyone, good afternoon and welcome to EndoMinds 2025 Results webcast. My name is Anni Turpeinen, I'm the Chief Communications Officer here at EndoMinds and joining me today are our CEO Karin Vyhtinen and our new CFO Minna Karttunen. And today we will go through End of Mind's performance during last year. And here's our agenda for today. First, Kari will summarize the key messages and activities from last year. And then Minna will continue with the financials. And after that, Kari will give a strategy execution update and U.S. update. And after the presentation, we will conclude the presentation with Outlook for 2026. And after the presentation, we will have a question and answer session where we are happy to answer your questions. So please feel free to send your questions via chat during the presentations, and please remember to type your questions in English. Thank you very much. Let's get started. Kari, the floor is yours.

Thank you, Anni. Extremely pleased to be here today. 2025 was a record year for endomines and still just after the record year we expect 2026 to be significantly better. And in the presentation we will go through the 2025 highlights and then also include our plans for 2026. Background on Endomines. Endomines is a gold mining and exploration company. We are a Finnish company listed in Finland. Our activities are based in the Karelian Gold Line in Eastern Finland near Ilomantsi. And in the Karelian Gold Line we have our production facilities. They are located in a place called Pampalo. So in Pampalo we have an underground mine. open pit mine, and then we have a processing plant where we produce gold concentrate, and that goes to Buuliden. Then we perform exploration, and that is focused in two different locations, the Southern Gold Line and Northern Gold Line. In the Southern Gold Line, we are currently doing a permitting project to expand our production to 70,000 to 100,000 ounces per annum. This is expected to happen in 2030. And at the same time, we will also include tungsten and molybdenum into our production. The Karelian Gold Line is an Archean greenstone belt. It's approximately 40 kilometers long, very similar features than other Archean greenstone belts, for example, in Kalgoorlie, Abidibi or Witwatersrand. Very prospective for gold mining and exploration. Key messages of 2025. It was a record year, so exceptional performance, strong operational performance, and it was supported by high gold prices in the gold market. The strategy is on track. The gold production increased by 16.3%. We will come back to that. We had a lot of exploration success, so on all the locations we had very significant discoveries. The Southern Gold Line permitting project is on schedule, so everything went according to the plan and we will continue in 26 with a strong start. And the US operations were streamlined. We released in October that we have divested three of the assets in Idaho. So we still have four assets in the USA, but now the operations are streamlined, which will help us on a cost level and also to allow us to focus on the activities in Finland. Sustainability is the backbone of our business and it guides everything we do. And we had a very active sustainability program activities during 25. And the outlook for 26 is also strong. So we expect the production to further increase. The guidance is that it will increase by 10 to 20%. And it's also worth noting that currently the situation in the gold market is very strong. So we are entering the year with very strong baseline. It was the best financial performance in the company history. And the performance came from two main factors, like the financial performance. It came from growing production, so we grew the production by 16.3%. And this was now the third year in a row that we increased the production significantly. So if we compare 22 to 25, so the production has increased by 93%. And the other big factor in the financial result is the gold price. So the gold price increased significantly over the year. We started the year at the level of $2,600 per ounce. And in December, the gold price was approximately $4,300. US dollars per ounce. So there was a significant increase. The average price was 3,436 US dollars per ounce. It is worth mentioning that currently the gold is trading at 4,900. So there are strong drivers for the gold price. There is a lot of global geopolitical uncertainty. which has resulted in high central bank buying, especially the BRIC nations, they are reducing the dependency on the US dollar and the funds are moving to safe haven investments like gold, so that has continued during 2025 and also continued in early 2026. It's a lot driven by the USA and the changes in the trade conditions in the US. And then one of the big factors is the Fed. So if you look back last 25-30 years, whenever there has been interest rate cuts, then it has affected gold price positively. We have seen it in 2025, but it's something that we expect to see also in 2026 and the years to come. Currently, the outlook is very strong. Even there has been now, after the remarkable increase in the price, there has been a slight decrease, but currently we are still on a higher level than in the beginning of January 2026, so the market is very strong. If you go through the exploration highlights in 2025, we go back to the resource development. We started the exploration activities in 2023. And the gold resource, it means that this is the amount of gold that we know that exists in the Karelian Gold Line, and it can be taken into production in the future years. And when we started the exploration activities in 23, our gold resource was approximately 200,000 ounces. And we have increased it by 148% by the end of 24. And now the next update is expected to happen in March 26. So in March 26, we will include all the results that we got from last year's drilling. So then the resource will further increase. In 25, we focused on two areas in exploration. In the Northern Gold Line, there was a lot of activities in Kartitsa. And then in the Southern Gold Line, it was Ukko, Ukko being the biggest item. That was a major discovery. So it was a newly discovered mineralization that we just discovered in April, May last year. From both locations, we got fantastic results. So it was exciting year and we are continuing work on both locations also this year. Ukko, it's a BIF type of gold deposit. And what does that mean? It's a banded iron formation type of gold deposit where gold is associated with iron. And what makes it different is the fact that as it is associated with iron, you can see the iron formation in the magnetic and electromagnetic maps. And here in the picture, there is... magnetic map of the area. And in the map, it can be seen that the iron formation is absolutely huge. It's seven to eight kilometers long. In some sections, it's one to two kilometers wide. And when we started the work last year in April, we went to the northern tip. And the reason why we went there was the fact that we took some outcrop samples and in the samples they were gold. So we tested this area with drilling and we got really, really good results. So over 30 meters of 3.3 grams per ton of gold, over nine meters of seven grams per ton of gold, and so on, so very good results. And the work continued in the north until early autumn. And then after that, late autumn and wintertime, we were testing the other areas. So we did some selected drill holes in the other areas just to understand the structure and to see if there is potential for further gold discoveries. And this is something that we will publish this year. this spring. This year the work will continue here and we expect to define the first gold resource from Mukko during 26. At Kartitsa, so this is the northern gold line, it hasn't received as much attention as Ukko, because the results from Ukko were very exciting and it was a new discovery. But the Kartitsa is a deposit that we discovered in 24, so it's also fairly new and there is no gold resources yet. We started drilling here during the autumn and again the results were really good. So over seven meters, over seven grams per ton of gold and so on. Long intersections. What is typical here is the fact that you have these wide gold bearing zones that continue very well. So you can follow the zones when you continue the drilling. And after the drilling, the results indicate that there is a gold bearing zone, which is approximately 1.5 kilometers long, but it's still open to south and north and even at depth. So there is a lot of work to do. to be done in the coming months and years, and it's a very prospective area. If you look at the area on a wider scale, it's not seen in the maps, there are similar sort of structures also further away, so that's something that we will test in the 26th to see if there is other zones which are similar to this one that we have found. Very exciting. Sustainability is the backbone of all our operations. We have ambitious sustainability program. And from the environmental side, we focus on three things, climate, water and biodiversity. Water is the biggest and the most important thing for us. We want to ensure that the water that leaves from the mine site is clean. So it's as clean or cleaner than anything that we have in the nature, so we want to always ensure that the water is clean. Then on the climate side, we are aiming to have a carbon-free gold production by 2035. biodiversity, that we do ongoing restoration of sites. We identify and respect the nature values. We Finnish people and us, we love the nature and we want to ensure that the operations are sustainable at all times. Everything starts with the people. We can only achieve great things if we have people that are happy, that the workplace is safe, so there is a high emphasis on personnel. Community, very important. We have ambitious plans, which of course, it raises questions that how will this affect our house or our business or the area as a whole. So we keep a lot of information sessions, try to be open on our plans and discuss with the people that how could we do things in a better way. And then the governance, that we have always ethical practices, and everybody knows how things should be done in different kind of situations. And now I will hand over the presentation to Minna.

Thank you, Kari. Yes, good afternoon, everybody. So my name is Minna Karttonen, and I must say, of course, a great pleasure as a new CFO to be able to present a record strong financial result for the company. So highlights of the year, it was a record year measured in any kind of any financial criteria. Growth in revenue was for 59% and we reach a revenue of 45.5 million for the year Profitability wise on all levels in the P&L everything everything improved EBITDA grew by 182% and reached 16.3 million euros. EBIT three-folded and also the net result was nicely positive 7.3 million euros and our earnings per share for the year was 70 euro cents per share. And also cash flow wise, our operating cash flow was 13.1 million euros. So that even also more than doubled from previous year. And the balance sheet, of course, also got stronger. So as a whole, the whole balance sheet increased quite a bit and we reached the total assets of over 90 million euros, net gearing and equity ratio. also improved from previous year. And like Kari mentioned, it's worth mentioning that all of this positive result was achieved with average gold price of just over 3,400 USD per ounce. And we are now somewhere close to 5,000. So it's a good start for the coming year as well. Then a little bit more details. Revenue increases here. In our case, 100% of the revenue derives from Pampalo production segment. And it's good to also highlight that the profitability of Pampalo is at a good level. So EBITDA for the Pampalo production was, or the margin was 48%, whereas for the group it was 36%. And like I said, the revenue growth came from two places. So there was an increase in production volume and also then, of course, a nice development in gold price. And even though the result is really, really good and we are very happy about it, there were still some exceptional one of non-recurring items that burdened the profitability actually. So there was this agreed sales of these US assets where we incurred non-recurring costs related to sale. There was a new financing agreement agreed, and also that had some exceptional items related to arrangement. Exchange rate losses affected our net result by negative 2.1 million. And then again, we offset that, all those negative minus a little bit by recognizing a deferred tax asset in the amount of 4.1 million. But all in all, net result, 7.3 million. It's... it's a good achievement. I will come to these balance sheet ratios at a little bit later stage. Then even more details. Here I think I would just like to highlight the good profitability of the Pampalo production. Like mentioned already, it's worth noticing what Kari already pointed out, that we are doing exploration and there are costs related to that. And of course, this U.S. operations result for this year is exceptionally, costs related to U.S. operations are exceptionally high. They are one of items. And also good to mention that going forward, once this sale has been completed, the ongoing operating costs will clearly decline from the level where it has been thus far. Cash cost in Pampalo, it increased by 11.8% and reached 1,432 euros per ounce. There were two items that actually affected the change in the cash cost or increase in it. The one is takeover of the underground mining business, and I think we knew in advance that the cost in the beginning will slightly increase, but that increase should level off going forward to 26. And then the other fact there is that when the gold price increased to this level, we were able to extract a slightly, or somewhat do extraction for a little bit lower grade of ore, which of course then increases the unit price. And average gold price increase was 37% compared to previous year. And last but not least, our financial position, operating cash flow, strong 13.1 million, so more than doubled, like mentioned. Cash balance at the year end was 3.9 million euros. We do have available credit facilities. The new funding package that was negotiated, it was altogether 12 million euros, and of that, 7 million euros. is still not used or withdrawn. Interest-bearing debt was 13.6 million. That's divided to 12 million in long-term and 1.7 in short-term debt, net gearing 17%, equity ratio 61. So all in all, stronger balance sheet and financing position and much better operating cash flow compared to previous year.