Gruvaktiebolaget Viscaria

Warmly welcome everybody to Kiruna and to the Q4 2025 presentation of Viscaria. 2025 has proven to be another extremely eventful year and we are looking forward to another couple of eventful years. So, of course, the highlight for 2025 was when our environmental permit gained full legal force on April 16. A long journey, some five years since we kicked off, and a tremendous relief to have everything, all permits in place. That was followed up that we released our feasibility study on May 8th and also a significant resource upgrade. And after that release, we can immediately start the work with our debt financing. And later on this year, we could show the market that we have assigned Sockyen and ING to be our mandated lead arrangers for a debt financing package. It's also fantastic to continue to tell our investors every quarter that a thrilling exploration program continues to give successful results and more of that later. And in the autumn we concluded two new issues, one directed And one rights issue oversubscribed both of them, which contributed with some one and a half billion Swedish krona in cash. And we have continued with all the infrastructure work at site. We are today approximately 300 people on site. Some of them work seven days a week. So a lot of things are happening. We inaugurated the water treatment plant in October. And also later on, we could sign our first long lead item agreement. And that was the mill agreement with Metso. And in December, we signed our first off-take agreement with the smelter in Hamburg, Arubis, a successful agreement. Our deposit continues to deliver significant qualitative growth upsides. In this quarter, we have been able to disclose then a mineralization intersected in the B zone, some 76 meters with 0.99% copper and 1.37 ppm silver. Also, we've discovered high-grade copper in the C-zone, 5.8 meters at 2.31% copper and 1.64 ppm silver. And we've done an extremely thrilling step-out drilling in the D-zone, where we have stepped out as much as 400 meters and confirmed the extension of the D-zone from the existing resource. And yesterday we could press release another fund new that we will host our construction workers at our site for our overnight accommodation. This is a result of discussions with the Kirna municipality, where they asked us to offload the city from our construction workers. So the Viskaria village is only for the construction period, approximately two years, and then part of that will be taken down, part of that will be converted to offices. The fun thing is that in many construction sites around the world there are problems with construction workers' accommodations. Here we have done it in a different way. We do it as a hotel. We have the fantastic, thrilling hotel operator Strawberry as our operator. So that means you will have a main entrance. You will not go in isolated to your own cabins. You have a main entrance, you have check-in, you have check-out. The interior, the furniture, the bed linen is of higher and better quality. So you should feel well taken care of. And also we can offer our construction workers facilities to have fun and do athletic work and sauna activities. so they can feel welcome to the site. This will gain health and security and quality in our construction period. A fantastic fun initiative which we were proud to release yesterday. To build a mine site is very much more than just to build buildings in itself. Many of you have seen this slide before which is a rendered layout but part of this is already constructed. So the big main thing that is happening now is the erection of the processing plant to the left here in the picture. It's a plant of 6,800 square meters and at the capital cost of approximately two and a half billion And we just started the groundwork for that, which I assume we'll show you a picture of. But again, there's so much more than just doing the buildings. This is just a picture of how many massive of rock, moraine and soul and boulders that we need to transport every year in order to make foundation works for the buildings, the roads, logistical entrances for the mine openings, etc. So last year we transported more than 900 million cubic meters of rocks, moraine, soil, excavation, etc. One must remember that this takes time, it costs money, but we are very well progressing with all of that. So I told you about now the erection of the processing plant, the next thrilling big building construction here. And this is how it looked like just a few weeks ago when we did the first blast for the groundworks. And this blast was not only the first blast for our processing plant, it was also the first blast for me. And he asked me how it was. It was of course fun to do it. Most fun to be part of this extremely skilled and experienced team that was helping with all these construction works. All of them are in Kiruna or near reading Kiruna companies. So we know that we have a strategy and policy to assign as much as work as we can to companies that are based in Kiruna or within the nearest surrounding. All of them skilled mine workers, construction workers and building workers. So on this slide here, you can see the drill machine that was used for this specific area when we blasted for the groundworks for the processing plant. And again in order to move all this material every day we have some 16 dumpers moving material. Every dumper takes 40 tons and we have up to 300 truckloads every day that we move around. So for every quarter that goes now, we can make a more and more detailed time plan. The time plan is of course subject to building permits, but long lead items, a lot of contractors that need to tick into each other to make sure that everything goes according to plan. and we aim them to have the first initial extraction end of this year early 2027 and the first copper concentrate coming out late 2027 early 2028 and make 2028 as a ramp up year and then with the aim of having full production of 2029. And with this, I will hand over for a very thrilling presentation by Ross Armstrong, our head of geology and everything that is happening there. Welcome, Ross.

Thank you very much, Juergen, and good morning to everyone here. Following on from the resource update in May, 2025 has been a year all about maintained momentum on the exploration front. And I think this has really come to a climax during the last quarter. In total throughout the year, we drilled 31,000 meters, and this has really been focused on the near mine setting, testing the down dip extensions of the known mineralized zones, which we can see on the cross section on the right hand side of the slide. But for today's update, we have three thrilling new results to share with you today. First, from the B zone, in a previously untested gap, we've found a whopping intersection of 76 meters at almost 1% copper. In addition, in the C zone, for the first time, we've discovered high-grade copper mineralization, 5.8 meters at 2.3%. And this is in an area that's previously been deemed to be non-economic. And then finally, exploration has continued in the D-zone, where a major step-out drill hole has confirmed the extension of the mineralisation over 400 metres from the existing resource boundaries. So I'll talk you through today all of these exciting results in more detail, so hopefully you can start to feel why we're just so thrilled in the geology department at the moment. But before jumping into these results, I want to give a quick status update on Gran Viscaria. You can see on this map the area outlined in yellow. This is a new exploration permit which we've just been granted within the last few weeks. This area was outlined as an area of interest for us after our summer mapping campaign last year, and also due to the geophysical results we got from the drone survey carried out in an adjacent area. But without further ado, let's jump into these expiration results and zoom back into the mine setting, starting first with the B zone, where we've really found something exceptional. So what we see here is a longitudinal section. So we're looking along the strike length of the B zone. And the coloration comes from grade times thickness. So what this means is that the hot colors, the red and pink and purple, these represent areas with the thicker and higher grade mineralization. You can see in the bottom left of this section, the bees on deep. That was a discovery we made during 2024. But the drilling of this discovery left a gap in the resource, in the mineral resource model that had previously not been tested with drilling. And that was until now. Drill hole 25013B was drilled in the exact middle of this gap, and the results are just outstanding. 76 meters at almost 1% copper, and within this, higher grade intervals as well, including 12 meters at 1.5% copper and 2 ppm of silver. And it's worth noting this correlation that we're seeing as well with the elevated copper grade coming with higher silver tenors as well. Let's put this result into context. So the average thickness of mineralized zones in Viscaria ranges between 10 and 15 meters. If we compare that to the over 75 meters in this intersection, then we're looking at mineralization over five times thicker than average. So this is really just another scale to the system here. And in fact, this isn't even the entire broad mineralized interval. The total interval intersected here was 222 meters at 0.6% copper. And we've seen something similar to this before, actually, during the 2024 exploration campaign. Drill hole 24115 intersected a very similar interval, over 200 meters at 0.5% copper. Following on from our latest result, we've actually completed a follow-up drill hole, 25013D. And you can see that was targeting around 100 meters southwest of 13B. And their assays are still pending, but from the first visual observations from the drill core, we can see that this is a similar mineralized section to what we see in 13B. But all these results, this begs the question as to why in this part of the deposit we're finding such thick mineralization, such thick intercepts. Well, to answer that question, we think this is well illustrated in this photo of the drill core here. So this is a piece of core from 13b, and we can see some varying mineralization styles here, both discordant cross-cutting veins and the more typical strata-bound mineralization that we are used to seeing in Inviscaria. And this essentially represents the fluid pathways for the hydrothermal fluids that originally brought the metals and brought them upward through the stratigraphy, exploiting structures just like the one outlined in red here. And when these fluids moved up these structures, they eventually met certain strata that were permissive, permeable, and reactive. And the fluids could then move laterally along these beds to form concordant strata-bound mineralized zones. And so it's in this area where we see an abundance of these feeder-style veins, that's where we have a higher proportion of mineralized units within the overall host package. And here we just have some more photos to share from the drill core to try and give you a sense of how these rocks look. In this part of the B-zone, the rocks are characterized by this pale coloration, and that comes from quite strong albite alteration. But we also see potassic feldspar alteration, hematite, and biotite more locally as well. And we can also say this part of the B-zone is quite enriched in magnetite too. So moving on to the C-zone, where we have another exciting exploration result to share. You might think, well, the C-zone, I've not heard of that one before. Usually when we talk about Viscaria and we look at cross-sections like we have on the slide here, we mention A-zone, B-zone, D-zone, but never really the C-zone. But the sea zone is not something new. It's actually something that's been drilled quite extensively in the past. But it's been disregarded as a barren black shale devoid of economic mineralization. But we here in the Viscaria geology team, we like to look beyond previous biases and apply what we learn into new areas. And that's definitely the case here. So in nearby drilling in the D zone, we noticed more intense hydrothermal alteration, partial bleaching of the graphitic units. And so this caused a corresponding break in the geophysical signal as well. And this drove us to push this drill hole, 13C, which is basically an extension of 13B. This gave us the drive to push 13C beyond the B zone and into the C zone as well. And the result, the first high-grade copper mineralization recorded in the sea zone. 5.8 meters at 2.3% copper. And this sits within a wider interval of 24 meters at 1.5, sorry, 1.15% copper. What's really exciting about this result is it's not only the grade, but it's actually how this fits within the larger context within our conceptual exploration model. Here we see a plan view of the Viscaria. So we're now looking down on the mineralized zones. And we have the drill hole 13C still here for reference as well. The backdrop to all of this is data from the Magneta to Luric survey. And you can see in the warm colors, the red and pink, the high conductivity signal from formational conductors in the A zone and the C zone. So this is the graphitic units, basically, in the A zone and C zone. And if you follow the response from these formational conductors towards the southwest of the deposit, you can see that there's a distinct and sudden break. And it's exactly here that we've been drilling. And we've seen in the drill core the reason for this. Graphitic units being destroyed by intense hydrothermal alteration, decomposition of the conductive graphite, causing this corresponding break in the geophysical signal. And we see it as no coincidence as to the fact that we're making all of our latest discoveries, the ABBA zone, the B-zone deep, and now this mineralization in the C-zone. These are all located at around one kilometer depth in this same corridor. Here, we think we're beginning to define a major feeder zone, a zone of hydrothermal upflow. It's a northwest-southeast striking structural corridor hosting intense hydrothermal alteration and conducive conditions for the formation of several stacked high-grade mantles. So, thrilling results so far in the B-zone and C-zone. We'll round this up with a new update from the D-zone as well. So if you've been following along our previous quarterly updates, you'll recognize this image, which again, it's a longitudinal section of the D-zone mineral resource with grade thickness and color contours. The black dots around the bottom, these represent our step-out drill holes during 2025. And all of these holes successfully hit mineralization, both along strike and further to depth. But where I'd like to draw your attention is to the bottom left of this image, drill hole 24036. And this was actually an older B-zone drill hole that, with our new geological interpretation and the geophysical anomalies to justify it, we decided to push this from the B-zone all the way to the D-zone. And the results were spectacular. Assays are still pending, so we wait for those, and that's something to look out for in the future. But we've hit the mineralization over 400 meters from the existing resource boundaries. So what does this mean? Of course, this means we've opened up a huge space for resource expansion in the D zone. Potentially, we've outlined the down plunge extension of this southern chute. And really, I think we're just reiterating the scale of the system that we're now chasing. So I'll wrap this up by summarising our new results from Q4. Extensive mineralisation discovered in the B zone gap, the first high grades recorded in the C zone and a major 400 metre step out in the D zone. All of this points towards future resource growth and we're excited to continue that exploration into 2026. On the right-hand side of this slide, you see another cross-section of the deposit, where we can see the drill holes that we've been discussing today, the mineralized zones, and then the backdrop to this is now a slice of the magnetic inversion, which is another tool, another model that we use to guide the exploration. The main message I want to give you from this is that Viscaria remains open, and according to the geophysical indications, this deposit has extremely deep roots. We can see in the magnetic response from the D zone, as well as from B, ABBA and A, the magnetic signal extends beyond 1.5 kilometers depth, beyond the depths that we're currently exploring. And on top of that, we have several other conceptual targets that we're still yet to test. So looking ahead, we are aiming to maintain this momentum and continue into 2026. And already we have three drill rigs continuing to operate in the near mine setting. Furthermore, preparations are well underway for the reflection seismic survey, which will take place during the summer of 2026. And in that we're aiming to map the down dip extensions of reflectors, both known mineralized zones and hopefully new mineralized zones as well, as well as mapping the overall controlling structural architecture for the deposit. Well, what more to say? I think some really exciting results today. And I hope you follow along in the future during the next quarterly updates. So thank you very much for listening. And on that note, I'll hand the word to Frida.

Thank you for that, Ross. Then I will walk you through the financial performance in summary for quarter four and also full year 2025. If we start with the income statement, we have these capitalized expenses related to exploration and evaluation assets. On the quarter, 78 million, well in line with the same period previous year. If we look at the full year 2025, we have 285 million compared to 331 previous years. if you look at the operating profit for the quarter is minus 26 compared to minus 20 for the quarter and the net profit for the quarter is minus 41 compared to minus 19 million looking at the net profit for the full year is minus 109 million compared to minus This higher negative results is mainly driven by a growing organization and also increasing of our financial expenses. If you then look at the cash flow for the period is positive both in the quarter and also during the full year. It's approximately 1.1 billion for the quarter and it's 1.2 billion for the full year. That's of course mainly related to both the shareholder loans and also the share issues that was carried out during the quarter four. If you then look a bit in the balance sheet, we have this exploration and evaluation assets. approximately 1.6 billion in the end of 2025 compared to 1.3 billion in the end of 2024. We have ongoing development, almost 900 million by the end of 2025 compared to only 165 million at the end of 2024. This ongoing development is substantially higher. This really defines where we are in the project phase right now. And during 2025 we also entered a more capital intensive phase of the project. We also got a question in the chat about CapEx for 2026 and that will be approximately 2.4 billion during this year. If we look at the cash and cash equivalents, we have 1.4 billion by the end of the year compared to 232 million end of 2024. The equity is approximately 3.1 billion compared to 1.6 billion previous year. So, we are in a really good, solid financial position by the end of 2025, primarily due to these share issues that were carried out during Q4. The cash proceeds from our directed issue was 800 million, and the right issue generated approximately 738 million after the conversion of the shareholder loan. This ends up in a cash position of 1.4 billion. Of this 1.4 billion, we have allocated 141 million for deposit for our closure costs, which means that we have available funds of 1.266 billion Swedish krona by the end of the year. If we then look a little bit on the debt side, 118 million of the shareholder loan was converted during December, which means that the remaining part of our shareholder loans are 654 million, and that's included the accrued and capitalized interest as well. If you then look a bit about the funding requirement of the project, we estimate it to be a mix of debt and equity, approximately 60-40. We are continuously updating our calculations based on new terms, new conditions, new decisions in the project. This may and probably will impact our CAPEX and the OPEX, but we don't see any major deviation according to our base calculations. In the other hand, we also see a substantial upside because we have a new level of the copper price when we're comparing today's copper price with what we have in our feasibility study and our base calculations. In all of our CAPEX, we have a contingency included by 10 to 15 percent, a little bit depending on which area we are talking about. And on top of that, we also have this cost of run facility included of 750 million. And we see that this really provides us with sufficient headroom to manage unforeseen costs and new conditions throughout the construction phase. And by that, I leave the word back to Jörgen again.

Thank you, Frida, and thank you, Ross, for great presentations. And as you can see, we have a fantastic, good, solid foundation, strong financials, and an extremely thrilling geology potential in this project. So all the financing discussions are well in progress with our lending banks and also with the Export Credit Guarantee Institutes. All permits are now in place and our bankable feasibility study that we presented in May last year is continuing to be rock solid and holds the fourth in all our discussions with the lending banks which we are very proud of. And we are continuously doing infrastructure investments. One third of the site approximately is today constructed and two thirds then is left. And the team is constantly growing as well with experienced people, not only from Sweden, but international as well with experienced miners. So with summary, I would like to invite Charlotte Schangen to the scene here and conduct our Q&A session. Welcome Charlotte.

Thank you, Jørgen. It's always nice to be here. So a lot has been happening since we met last time. What are you most proud about in this quarter?

uh i have a hard time to single out one specific item because there there's so many people that work so hard uh as i told you before we approximately 300 people logging into the site every day uh not that many during during the weekdays weekends but we have people here on the weekends as well uh so um uh and it's such a fantastic atmosphere not only among our own employees, among the consultants, but also the different subcontractors. So it would be unfair to pick out a certain element to be proud of. I am proud of the progress that we see every week, every month of construction of the site. To construct a site like this is, of course, not just tailwind. There are challenges. If not only every day, but every week the things that pops up. But to have a problem-solving atmosphere constantly with people that are taking on those challenges, that is a fantastic feature that we can see at our site.

So I was thinking you would talk about the geology.

I mean, as I told you, the ideology perspective that Ross talked about today is just fantastic. This is by far Europe's most overlooked copper deposit, period. And I think it soon will be proven to have a place as Europe's most fast-growing copper deposit as well. But... I also want to highlight everybody else's work here. It's so important to keep that atmosphere because we are a strong team only due to the fact that we are valuating each other for every bits and pieces that we're contributing to in this project.

We're going to talk a lot about what's happening on the site, but we have questions from the web. Please continue to write your questions. And there is one on the geology. Kristian Kopfer is wondering when can we potentially see a new resource update?

We hope that we can do that later this year. I don't want to promise that today still, because now it's extremely important that when we do the mean resource upgrade, that they are substantial, qualitative, and they can not only just show a certain small piece, but we want to really... be able to describe the big picture in a qualitative way but we're doing our utmost and as Ross told you we are three exploration drill rigs drilling 24 7 and all results are extremely thrilling so let's come back in the next quarterly report with a more precise judgment of this

And all of this parallel tracks happening on the area now. We have the water treatment plant, we have the processing plant, and also when they are steering when you can open the mine. You're saying, have you... Do you still have the same timeline?

I mean, there are small adjustments, but nothing that moves the big picture, nothing that moves the needle in a big way. But there are some small pushes from different areas that moved ahead the time schedule with some three to five months. but overall we will keep the timetable one must remember to build something that we are now doing during the next two years for some four and a half to five billion Swedish krona it is not done like this it's a lot of work streams a lot of contractors a lot of things that need to tick into each other but we have a fantastic planning team fantastic project management office So overall we will keep our timeline and make in 2028 that's a ramp up year and then aiming for full production 2029.

And still doing some excavation already in 2027?

Yes, indeed. There will be open pit mining already this year where we will take away waste dumps so we can go down to the ore and then underground by the end of the year, early next year.

So it's progressing according to plan here, but last time I was here, we talked about the water treatment plant a lot, and there is a process now at the courts. How is that going?

We still not got the verdict from the court, but we are, of course, in intense and close discussions with the court and authorities, and we don't foresee any problems with that. We do expect a verdict from the court within very short. We don't know more than that than within very short. and we don't foresee any problem with that verdict. We have applied for amended conditions but given the court a couple of different alternatives and we definitely believe that one of those alternatives will be decided by the court. So we wait for that. At the same time, as you all know as well, we found sulfates further down in the mine and also higher degrees of uranium. So we are adjusting the water treatment specification a bit and we're building up another step of sulfate treatment as well. So that means that we're now pumping around the water 500 cubic meter per hour in order to stir around and even out the different levels of zinc, copper, uranium and sulfates. And we, of course, pressure testing the whole cleaning system and so on. And we plan then to release water to the recipient in Q2.

And to do all this, you have the financing in place, more or less. We're waiting for the loan agreement. How is that progressing, those discussions?

an extremely intense progress that as well so the lending banks are doing their due diligence processes and and that will take another a couple of months and they have having their independent advisors pressure testing everything so they do technical due diligence esg due diligence legal due diligence etc etc but all those discussions are well in progress and we have not seen any black spots there.

Any key hurdles? What's the toughest part?

ESG. We're talking about the international banks. And they are, for natural reasons, extremely keen to make sure that we are engaging in the right way with all type of stakeholders. Municipality, people, the municipality as such, all authorities, indigenous people, etc., etc. East G is a very, and should be, tough area to go through in the DD. But we are doing well there as well, as you know, the Visquara project.

Have you received any indicative terms or what can you say?

We are negotiating long-form term sheets with the lending banks, but it's too early today. But again, everything is well in progress and we aim to close the debt financing by the end of Q2 this year.

Still, so that timeline really holds steady?

Yes.

And you have said so far that an additional then approximately 1.2 billion is needed. Is that still the case?

yeah that is indeed still the case as you heard here from Frida of course I mean we do in constant now calculations because we're getting as somewhat adjusted tenders in from suppliers and so on we have somewhat a cost inflation as well some of the foreign purchases are a bit then counteracted by stronger Swedish krona in our favor so it's really swings around about So if I will be conservative, maybe we can foresee a couple of hundred millions more in costs. But it's a bit too early stage to say that. And one should remember in this context as well that we have these contingency pillars of approximately 1.5 billion that really support that. So we feel that we have control over the funding process.

And there has been a question on the contingency. How much has been used so far of that?

I mean, so the cost of the run facility of $752 million, you cannot touch until the debt financing package is paid out. So that is always stay there until you start to draw on the funding side. Of the contingency in the initial CAPEX and the sustaining CAPEX, also approximately $750 million. Maybe some 50 of those have been used now in the initial agreements that were signed. There's quite some substantial agreement, but there's a huge amount of pillars left there as well in contingency.

There was a question that Frida answered that 2.4 billion is expected in CapEx in 2026. There's a follow-up on that. How much is expected until 2029?

I mean, so we do expect from today's date that we need to raise then another 5.2 to 5.5 billion Swedish krona, where of 4 billion then in debt and the rest in equity. Again, in that amount, approximately 1.5 billion in contingency. And those estimations still hold until the day we get cash flow positive.

And we've talked a bit about this, touched upon the copper price. Frida did that. It's much higher now than before. How does that affect you?

I mean, it really affects us in a good way. One should, however, remember that the debt financing package and the lending banks, they are using a lower copper price than we're having even in our bankable feasibility study. So they are using a price lower than 9,500 to make sure. And we ourselves, we have the financial model still at 9,500. Of course, we can allow ourselves to moderate maybe copper price around 11,000 now to see in the longer term. But we are still not even using the 13,000 that the market is today.

And another positive is the precious metals like gold and silver prices have also gone up. Will that affect your figures?

I mean, in the offtake agreement with the rubies, both gold and silver are payables. We have decided not to put that into our financial models yet because... It's mainly the silver that we can see contents of in the size, so we can get payable. We will save that to have as a bonus when we start to ship our first concentrate. But again, both silver and gold are payable in our agreement with Arubis.

And mentioning the Arubis agreement, some were a bit disappointed you only signed for half of your offtake. What's your view on that?

Nobody should be disappointed with that. This is a sign of strength. If we were pushed, then we would have sold 100% of our material in an offtake. This is a sign of strength that we can negotiate to only then sell half and have half out to other places in the market, mainly then to other smelters. So who is that? I mean, we don't have too many smelters in Europe, so it could be any of the large two left. I mean, we have the Polish KGHM, then we have the Swedish Boliden Rönnskär, and then we have Arubis as the big smelters in Europe. So those are all the suspects. Then, of course, we have traders that are extremely eager to lay their hands on our copper concentrate as well. So we'll see. We are negotiating with the different parties. It could also be the case that we will extend our agreement with Arubis, depending on how other players are playing this game.

I hope we have answered most of the questions, hopefully all that have come in from the web. Do you want to summarize this in any way, Jörgen?

I am extremely proud of this project is progressing. I am pleased with our negotiations with the lending banks. I'm also pleased with the continued support we have from all our investors that have indicated commitments to continue to support us in upcoming issues or issue in connection with the debt financing. And of course, I mean, it's hard to shy away from the fantastic geological results that we get through every month, which really, really show the fantastic growth potential, high grade potential in this project. Thank you. Thank you, Charlotte. And with that, we say thank you from Kiruna to all of you. And we look forward to see you in another three months. Thank you.