Gruvaktiebolaget Viscaria

Welcome to this report presentation with the Group of Stocks company Viscaria who released a report for the third quarter of 2024. CEO Jörgen Olsson and Finance Chief Frida Kesketalo will be taking us through the results and activities for the quarter followed by a Q&A session where you can ask questions in the chat. But before we get started, let's welcome the CEO of Viscaria, Jörgen Olsson. Hello Kiruna and hello Jörgen.

Hello everyone and thank you for listening to us today.

It's great to have you back. Jörgen, before you present, could you give us your impressions of the quarter?

Again, it's an incredibly eventful quarter. It's hard to name a few things, but let's mention that we could take our position in the contract on 1 August and more on that during the report we did. But then not least this, our fantastic, promising prospecting. We presented the results on 24 September and it continues to be as successful and even more successful. This is a great opportunity to show that we can cooperate with our companies in cooperation and coexistence. So it will be a very entertaining presentation today.

Thank you Jörgen. Without any words, I just want to say that the borough core has been the most beautiful thing I have seen since my first birthday. Jörgen, please present the report.

Thank you and welcome to the third quarter report for Veskarya 2024. As I mentioned earlier, a lot of things have happened during the quarter. I want to take the opportunity to present some of my colleagues. Thomas Nordmark, our infrastructure and logistics manager, will present all activities that are in the area now. We took our position in the contract on 1 August. But the promising prospecting will be presented by our geology manager, Linngren. It's not just the day of the retreat. Karin will tell us that it will be put on the road and we will continue to present the prospecting results. In the end, Frida will take us through the numbers and I will be available for a question later. Again, a very active quarter for us. We got the work order in conjunction with our judgment on 6 May. But we couldn't take it in advance for 1 August. It's all about the bird directive. As long as there are birds, animals, hedges and trees, you can't be a mess. It was the last July, so we could be in full speed on 1 August. But at 5 am, as many of you have seen on social media, we were already working with 15 machines. We have 3 mobile crosses in the area and a lot of activity. We will be back with that. We are working in high speed to present our feasibility study towards the end of the year. In conjunction with that, we will also present a resource update and our first reserve. Our resource, which is 93 million tons today, will be part of the reserve. It will be the initial economic mineable. It's the first time, and there are a lot of higher requirements when you specify what your initial reserve is. Compared to the resource, the resource also has to follow a reporting protocol. But it will be the first time in the history of Viskars that we present a reserve. Very exciting. We will also come in conjunction with this, in conjunction with the presentation of the feasibility study, the resource update and our reserve, to have a larger geological presentation sometime in December. We will be back with that. All this in conjunction, and not least what happened after the reporting period, here in the week, when Marko Miljö over the chairs, stated that they do not want any test conditions for anyone who is complaining. Our goal is to restore the strength under the conditions before the end of the year. And all other activities that you will hear from Thomas Nordmark here, it also makes us happy to say that our schedule for producing our first copper by the end of 2026 is fixed. So very exciting. But with this, for the first time for you viewers, I would like to welcome our infrastructure logistic director Thomas Nordmark up on stage and tell us a little. Thomas,

here

you go.

Thank you very much, Jörgen. As I said, my name is Thomas Nordmark and I am responsible for infrastructure and logistics here at Viskaria. A little short of me, I am Kiruna Bå, three adults, three children, worked in the industry for 38 years, worked at ABB, was out in the world and built a little steel factory and some power plants. Then I came back to Kiruna in 1993. I worked at LKB when LKB took over man transport and energy. I was involved in developing them to become Europe's most efficient transport, with the world's strongest electricity and the highest share load. With more. And was LKB's power plant specialist in the last few years. Stayed there for 21 years. Then I asked Koni Sajron for help with getting his man transports going. So I helped them for three years until Jörgen heard of them. He said that I can't help him and start up Viskaria. It was too fun to say no to that. When you are going to start a new mine or restart Viskaria, it is always good to have a plan, a vision of how you want it to look. It is important now that it should be attractive to work in a mine industry. We should be afraid of our environment. So we took the help of an architecture bureau to come up with a concept. The lead words you see here are a coherent palette in autumn Sweden and the conservation of the natural environment. As far as possible. And some inspiration from the flowers you see in the middle of the picture. Viskaria, Alpina, Pjälne, Neulika. Yes. Then we have, as Jörgen said, the first of August. We had to wait with all the machines. We have this stage here, which we call site stage. That is, we try to do things in order so that we can clear the pit and clean the water before it goes out into the recipient. And that is according to the work order we have. These turquoise colors in the picture show our industrial area here. If we start with what is in the middle of the picture, where it says VTP 1000. It stands for Water Treatment Plan 1000 cubic meters. And we have just started building it. We have done the groundwork for this, of course, and we started it on August 1st. But it is a pretty impressive building. It is 40 meters wide, 80 meters long, contains a lot of process equipment. And here we have had help from, or here we have collaborated with a Finnish water cleaning company. Which is very good at cleaning just gravel water. And it takes about, until next August, it is in the process. And as a little extra feature here, so that part that is down to the left in the picture, that square there. We will produce our own water. Before the water comes to the water treatment facility, we have to drill down to the existing gravels that are here in the A-zone. And here you see the preprocessing work that we have done here. Dig out, drill, set up, pull in electricity. And the picture on the far right, down there, stands now, a week ago, a couple of guys who will drill four holes, 300 meters straight down there. Where we will lower the pumps to empty the gravel. It will be exciting, and the empty gravel takes about one and a half years. And then we go on to the next turquoise picture, the next one, but the one that is a little down to the left, the Laydown Area. What can that be? Yes, it's 9000 square meters big, a surface. Because here we will take our building material, everything that comes with the load, infrastructure and so on. To be able to build up the water treatment facility, the irrigation plant and all other facilities as soon as possible. Then we started digging, we have drilled a lot of prospecting, I think it was over 60000 meters per year. And all these bore channels must be preserved somewhere. And then we set up this tent here, which we had a fold in here last week. If we go further to what we call Viscaria Village, it is right next to our project office, where we all work now at Viscaria. Where our entrepreneurs will be, where they will change the shower, office, meeting places and even overnight stays. Here we have also thought a little bit about trying to avoid such social problems as it can be with such large establishments. So it's a bit of a city feeling, where you see each other, you have an indoor yard where you can meet and have a meaningful free time. With ballpark, large stairs, barbecue places, a little bit of everything. So I think that will be a winning concept. Because Viscaria should be an attractive partner to work with. If we go up to the Turquoise area called Parking and Crusher up here in the picture. Then it is where Jörgen said that we have taken the old Groberg's complex in charge here to produce construction materials, for roads, construction plans and buildings. And we have, as you can see in the picture, taken a large part of this. So we have produced about 120,000 tons of building material. In the picture up to the right here, you see the large parking lot that we need to have to be able to take in trucks, private cars, to park there so that we don't get so much traffic in the area. And with a nice view over our friend LKB on the other side. Electricity. Electricity is a very important part of the infrastructure so that we can reopen Viscaria. And in the picture here you see that there are two 130 kV lines that go straight through our area. And here we have together with Vattenfall, electric distribution, planned to write a contract and have a conception of how we will bring down the power, distribute it to all consumers, other construction plants, power stations, everything possible according to a one-line scheme. And on the right you see a little sketch of how these transformers will look. And there we have already ordered one of the transformers. It's so long, it's so long, yes, it's time for them, 28 months, but we have assured ourselves that we will get it during the spring of 2026. Yes, then we come to maybe my heart and logistics. How are we going to get our products, our copper concentrates and our nuclear power concentrates out? Here we have worked together with the traffic authority. And the traffic authority is responsible for installing and changing connections to the manned track, one in the south, one in the north, so that we can choose whether we should drive south down to the left-hand smelter, north to Norvik and out to Europe. And here I would like to show a short film that illustrates how it is intended to look. The direction here is that we come from the south, that is, from Luleå. We have the LKB area to the right, we have our area to the left with the old sand magazine. Here we fly over our magnetite train, so magnetite 1 low in front of it. And inside here at the cargo hall, as you can see, our copper train is standing here, with the covered copper wagons here waiting to be loaded. And it is about between 30 to 34 wagons in these trains that we have planned. The red building above the cargo hall is where the copper and iron mass concentrates come out, and then go down to our warehouse. And here you can also see that we can also receive the input material and materials from the railway. And these are the same type of wagons, these manned wagons for the iron mass concentrate that the copper iron uses and that is manufactured locally here in Kiruna. So when I film just out there, I would like to briefly summarize that I think we have been with you a lot since we started in August 1st. And we are also ready, as you want to see here, that as soon as we get a low force under the conditions, we will do it. And I am completely convinced that we will keep our schedule with the start in 2026. With those words, I leave over to Karin. Here you

go. Thank you, Bommar. Thank you, Karin. Yes, it feels very fun to be here in the Borgkänna archive today and continue to present fantastic explosion results. I have my geologist with me today and they have worked incredibly hard to continue to follow up on these results that we presented for the first time in September this year. Today I will repeat the latest results and also tell you about what has happened since then and some plans for the future. The joy is, as I said, that we can continue to confirm that we have a fantastic presence in Viskaria. We have nice meetings both in the D-zone and in the newly established Abba-zone. Today we have full speed with three diamond on the rigs that are standing and drilling. We plan to continue to expand our rig capacity during the winter. And just as Jörg mentioned, we will also present the latest prospecting results in December this year. But what was it that we presented and where are we now? We could see from the latest results that Viskaria not only continues towards the depth but also shows higher stops towards the depth. Since then we have succeeded in continuing to drill in the D-zone and we see that these results show themselves again. We have both a very thick mineralization and it tends to increase the stops towards the depth, which is fantastic. We have also followed up the Abba-zone, the new feature that lies between the A-zone and the B-zone. And there we have also been able to follow up the lateral expansion of the Abba-zone. We could also announce a very thick package of mineralization at the depth, which we suspect could be a fusion of all three zones at the depth. And there we are waiting with excitement for the latest analysis results that will come in here very soon. And we have also followed up the results regarding gold and silver. I was going to show a picture, a cross-section of Viskaria's mineralization. Here we see models of Viskaria. Here we have the A-zone to the right in the picture, the B-zone in the middle and the D-zone to the left. We also see here the average stops that we have previously known about in Viskaria. We have drilled a lot during the year and the absolute largest part of the drilling has been in-fill drilling to be able to secure a safe gravel start. In this picture we see the only last prospecting drilling that is also very extensive. The B-zones are descriptions of extensions of both the D-zone and the B-zone that we have been able to confirm. And we also see the Abba-zone, which is very close to the infrastructure in the A-zone. It is about 200 meters below the infrastructure in the A-zone, which is a very positive prospecting drilling. And as I said, since September we have continued to drill and we can confirm that the D-zone's deep drilling also shows very thick mineralization with high stops. Today we will not present the analysis result, but it will come in December this year. And the focus has also been on the Abba-zone, where we can see how the Abba-zone extends laterally. When we have done so much drilling, a lot of interesting thoughts have opened up about how this prospecting can have come to be. What is it that makes it possible to have such a fantastic prospecting in Viskaria? As a lot of new geological information has made that we have made a schematic picture of how we think this prospecting has actually come into play. We see, as I said, the same type of penetration we look at here. We have the A-zone to the right, the Abba-zone and the D-zone to the left. We have come to a very well-preserved, competent mountain where the D-zone shows very nice hits. We also hit other types of mountain species in the deep. These mountain species are usually seen in similar properties, high copper-like properties in the world, so it feels very exciting to follow up. The maffic meeting we had in the deep, where we think that the species can actually be interwoven with the deep, we want to illustrate in this way. We also see from our latest geophysical studies that there is a trend with magnetic anomaly in the deep. Really exciting. What is the next step? We will continue full speed forward, increase our bore capacity to five rigs. We plan to drill about 30,000 meters at the end of this year and start the next one. We have also secured our bore capacity so that we have really powerful bore rigs that reach down to 2,000 meters deep. And will continue to be the focus, especially on Abba and the D-zone. We also want to continue to be very creative, so we will complete our bore rigs with physical examinations to understand how this all comes together. We are very looking forward to presenting the latest results in the update this December with our salary study. With that, I would like to thank you and leave it to Frida. Thank you, Karin.

Yes, this picture you recognize from earlier. It is our time plan for reopening the Viskaria pit. We see with what we have succeeded in 2024, that is, we have maintained environmental protection with the regulation of the workforce. The proposal for environmental protection did not get a test protection and that we have also been able to start our infrastructure work against the deforestation of the underground pit next year. This creates the assumption that we can continue with the rest of the facilities and buildings by 2025, according to the plan, so that by the end of 2026 we achieve our goal of having the first copper concentrate from our own facility. So this time plan remains, it is fixed. Then I will present it to the company in financial condition for the year 2003. To summarize the report and the quarter in its entirety, it is characterized by the positive messages. It is partly that we have taken the environmental condition into consideration through the workforce regulation. It is also seen in our financial reports, since we have now completed the first part of the after-treatment plan, correspondingly 60 million, on a total after-treatment plan that is currently at 344 million and all this according to the environmental condition. During the quarter we also entered a joint venture agreement with Levas Sámeby. We were also able to present these fantastic prospecting results that Kare has now followed up on. We have also received messages from the ground and environmental supervision board this week that the test condition is not given and we are incredibly happy about that. All of these events in themselves are important and make us get closer to a real production start that will give us a profitable production in many years to come. If we go into a little detail on the financial development, we can start with the results that you see here. We have activated expenses for prospecting and valuation of the whole quarter. For the whole period, January and September, it goes up to 253 million. We see that it is a little higher than the previous year and it is also precisely according to our plan that we have a higher cost cost when we are so close to the start. Looking at the moving result, it goes up to minus 10 million per quarter and minus 33 million for the whole period. Looking at the period result, it is a little better than the moving result. It goes up to minus 6 million per quarter and minus 29 million for the whole period. Why the period result is better than the moving result is because we have a positive financial net. Looking at the period cash flow, it goes up to minus 129 million per quarter. We have had large payments. Looking at the whole period, we have a positive cash flow of 118 million. Why it is positive is mainly because of the new emissions that were carried out in June where we got a shot at 420 million net. If we go over to the balance sheets, we have the prospecting and valuation rates again. It goes up to 1.2 billion to compare with 836 million last year. This means that since September last year we have added another 377 million to the post. In these numbers, the previous offset is also 60 million, the first part of our transfer plan. We also have post-renewal. The current investment is 73 million. Here are the early infrastructure investments that are here in the permanent water supply, but also electricity and preparations for kindergarten work, as Thomas has told us. Equal funds go up to 385 million per last September. Own capital goes up to 1.6 billion. The essential change in own capital is the new emissions. If we look a little closer at our big post, prospecting and valuation rates, how the activated emissions look like, we see the emissions on a quarterly basis from 2021 until today. We have moved from a situation where we had activated emissions on a yearly basis, at about 100 million, to the situation we are in now, 2024, where we have, for the first three quarters, activated emissions corresponding to about 250 million. If we look closer at 2024, we see that it is borrowing and analysis and more costs that is more than half of the year's activated emissions. This work is done both for the upcoming start of the mine, but also in preparation for completing a high-quality FF as much as possible. We have a lot of preparatory work in all other areas of the business, including the start of the mine, not least the environmental protection process, which also generates a lot in these numbers. Also, the mine planning involves a lot of preparatory work to be able to do and lay as much of an optimized mine plan as possible before the start. We also work with process tests and different types of analyses against the planning side to prepare and be able to build as good a planning system as possible. Then again, we have infrastructure and site preparations, as Thomas has shown earlier, and there are also posts in the pre-projecting for the mine construction. All of these parts are according to the plan, what we need to do to be able to complete our FF, our profitability study, at the end of this year and after that be able to move on to the installation phases. And with that, I hand over to Jörgen again.

Thank you, Frida. And in summary, once again, a fantastic intensive quarter. We continue our preparatory work in full pace and we have an incredibly exciting time ahead of us, where you will get regular reports and feedback on not only the project, but also the fantastic, exciting prospecting. And I would like to thank you for your time. Thank you very much. Thank you. Thank you, Frida. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you.

Thank you. Thank you. Thank you. Thank you again, Thomas, Carin and Frida. Very interesting to have this broader presentation. I will start by asking a question about the infrastructure investments. There is much to be done and it takes a little time. But in terms of costs in terms of energy, electricity, electricity and railway and You need to pay a lot of money for this, but do you have anyone who is willing to share this money?

No, we have not received any subsidies yet today and we do not see anything in the future that the EU will have more subsidies even if we are holding a strategic commodity, namely copper. This is defined as a strategic commodity in the EU, but this is not an innovative new business. It is both boring and fun, fun in such a way that it is very predictable. It is a traditional mine that is to be opened, a traditional mineral copper. We shout after copper in the heat, but there is nothing new. We will cost all this ourselves, through our shareholders and bankers who lend us money. But it is a good product that has a good price setting on the market and has a very positive price range in

the future. Thank you. We are still in the economy and you are working on this profitability study. Then I have a question. With these new funds, will this profitability study be delayed or will you keep the planned deadline?

We will do our profitability study with the old results. The results of the profitability study are only until the last of July this year. It takes a long time to process them according to the reporting requirements. It will go into block modeling in geology, block modeling in the mine, it will be confirmed in chemical analysis results, it will go into independent financial calculations. All new results will be presented as a separate resource story. But it is as exciting as that. We will link it together with the profitability study and show how long the time has before we can break our new funds. And how it can be linked to the old gold plan. But the profitability study will not be delayed.

Thank you. It will be an interesting extension of that further on. When you do a profitability study, how have you calculated the development of the copper price?

So far we are between 9,000 dollars per ton, which we have calculated. Today we have a copper price of 9,500 dollars per ton. And the future outlook points towards a higher copper price. We are discussing internally which copper prices will be set in the profitability study. We will get to that in December.

It is one of the mega trends, or several of the mega trends. The conversion from fossil fuels and electrification as part of that. So that should be an interesting development. I have also received some questions about the financial. How is the financial situation? Can you expect to have a stronger financial partner than the smaller shareholders?

We have six big Swedish institutions. We have a lot of big family offices and private individuals in our top 20 list. But we are working hard with the capital side and the loan side. And we are in the starting block for all of them. We are still waiting for the strength to be set. But a big investment will be a pre-election investment. We have the same rights for all of the existing shareholders. And those processes are in full swing. And the pressure is being put on the financial side. And in parallel we are negotiating the loan financing.

When it comes to loan financing, is it banks or is it obligations?

We are looking at it broadly, but there is a lot of discussion about banks.

Thank you. And the high-quality capital that you have found in the increased funds. Could you explain what this means for you in the long term?

In December we will develop more details. I wouldn't be serious today to tell you that. We have used a rubrication in the press release from September 2024. And also in today's quarterly report. The press release in September 2024 is reported according to PERC 2021. And we use the word exceptional results. And we have visual copper degrees that are mostly in double the degree of halt. This is the start of a new era in the history of Viskaria. This is huge.

You also mention in the report that you have a Tier 1-groove. Could you describe how you define Tier 1?

It is important to see that we are like a coming. And we will define that a little more in December. But the meetings we have now indicate much larger orders. As Karin visually could show compared to the market today. It is a completely different character. Completely different degrees. And we also say that this is one of the fastest growing copper degrees. And the results from the summer have given us a good back. To make a very focused prosperity campaign. We have never been so much prosperity in these four and a half years. We have been focused on having this predictable opening. But it is just that we have a very exciting time ahead of us. To see how the resource will grow. And therefore we dare to take these words and put them on Pentes.

Thank you. I understand that this message was very happy when it came to your condition. Would you be able to tell us about the process and the raw materials act that was carried out in the EU. When Sweden was the leader country. Have you noticed any difference because of that?

Yes, we think so. But it is very difficult to determine what is the hen and the egg. And what do I mean by that? Yes, of course, what is it really that has made us have a relatively fast process? Is it because we have a Brownfield project? So it was the mine earlier. Is it because we, as we ourselves, have been very, very serious? We put down 120 million SEK on our application that we sent in March 2022. Or is it a combination of all these factors, including the critical raw materials act, that makes the process go a little faster? It is difficult to determine exactly what it is. But we can point out a few things. We submitted the environmental application in March 2022. We got the application on May 6, 2024. So just two years later. It is very fast from a historical, grave perspective in Sweden. The application after the May 6th court. The developed application on the largest part is submitted as late as August 15. And less than three months later, the application is submitted as a market environment review. The application on the table, this is the application, is also seen as a record in the Swedish industry in the application process. But it deserves to be pointed out. The application process is a complex process. You have a detailed plan from the municipality. You have land uplots from the county board. You have construction of the construction of the state of Bergen. You have land development from the state of Bergen. You have a survey of the state of Bergen. You have environmental support from the county board. Different municipalities, complex processes. We think this has gone relatively well. And it has been a hard job. It will be difficult to open a grave. We think it has been a hard job.

Sounds good. How confident are you that you will get the cleaners in place? And can be in the process during the 26th with the grave itself?

I am of course confident when I talk about my organization. But I hope you have understood a little when you see this today. I am blessed with a group of fantastic professionals who are very motivated and very routine around us. We are several 25 full-time employees and have about 30 full-time, more or less full-time, engaged consultants. Everyone is a full-time professional in this industry. I am almost sitting like a high-class leader on the days. Everyone is incredibly motivated. It is almost difficult to take in how much has happened in our area since 1 August. There have been a lot of visitors up there and they can probably verify that. It is remarkable. So I am completely confident that we will keep our time. With

that it is time to close this broadcast where you presented your Q3 report for 2024. Jörgen Olsson with the team, thank you very much for your cooperation.

Thank you very much.

And thank you to you who have watched. See you again in three months.