Endomines Finland Plc – Stock Exchange Release/Inside Information – 26/10/2023, at 12.30 EET
Inside information: Endomines’ Board of Directors decided to change the depreciation method in Pampalo’s underground mine
On 26 October 2023, the Board of Directors of Endomines Finland Plc has decided to change the Pampalo underground mine's depreciation plan to reflect the actual economic lifetime of the mine as of 1 January 2023. The impact on the H1-2023 depreciation is MEUR 1.5 improving the net result respectively.
In Pampalo’s underground mine, the depreciation method has previously been based on substance which results in too short investment periods. The unit cost for depreciation based on substance is determined by using the ore reserves. Ore reserves refer to the tons of gold ore for which a mining plan has been drawn up. In addition, measured, verified and potential mineral reserves are assessed, which Endomines uses as a basis for drawing up long-term production plans. The ore reserves, mineral resources, and long-term production plans are being updated annually.
Based on current estimates, the actual economic life of the Pampalo underground mine extends at least until the end of 2030. From the beginning of the 2023 financial year, the depreciation method of Pampalo’s underground mine is straight-line depreciation based on the actual economic life of the mine. The depreciation plan will be reviewed regularly.
The impact on the group’s key figures is presented below. The corrected H1/2023 report is attached to this release and available on our website at https://endomines.com/en/for-investors/reports-and-presentations/
|
Key figures |
Unit |
1.1.-30.6.2023 before correction |
1.1.-30.6.2023 after correction |
|
Revenue |
MEUR |
10.7 |
10.7 |
|
Pampalo production revenue |
MEUR |
10.7 |
10.7 |
|
% of revenue |
% |
100.0 % |
100.0 % |
|
Operating expenses |
MEUR |
-10.1 |
-10.1 |
|
EBITDA |
MEUR |
0.4 |
0.4 |
|
Pampalo production EBITDA |
MEUR |
2.4 |
2.4 |
|
% of revenue |
% |
22.4 % |
22.4 % |
|
Depreciation and impairment losses |
MEUR |
-2.6 |
-1.1 |
|
Operating result |
MEUR |
-2.3 |
-0.8 |
|
Net result |
MEUR |
-3.3 |
-1.9 |
|
Net gearing ratio |
% |
34.2 % |
32.8 % |
|
Equity ratio |
% |
64.6 % |
65.5 % |
|
Earnings per share |
EUR |
-0.35 |
-0.20 |
|
Cash Cost in Pampalo, excl. investments |
EUR/oz |
1,193 |
1,193 |
Further information
Minni Lempinen, acting CFO
minni.lempinen@endomines.com, +358 40 769 3483
Endomines Finland Plc is a Finnish forerunner in sustainable mining. Our operations are focused on gold production and exploration in the Karelian Gold Line in Eastern Finland. We also own the rights to seven gold deposits in the US. We produce gold for the jewellery and electronics industries and create value by turning natural resources into wealth, and we also create value by transforming natural resources into wealth, an investment that can withstand the volatility of global politics. Our vision is to develop the Karelian gold line into one of the most important and sustainable gold-producing regions in the world. Endomines is listed on the OMX Helsinki main list (PAMPALO). www.endomines.com.