NORDICMINING

NORDIC MINING

ANNUAL REPORT 2022

CONTENT

CEO’s REPORT

OPERATIONS

BOD’s REPORT

CORPORATE GOVERNANCE

FINANCIAL STATEMENTS

28

CONSOLIDATED STATEMENT

OF PROFIT OR LOSS

Consolidated accounts for

Nordic Mining

(Amounts in NOK thousands)

Note

2022

2021

Other income

-

188

Payroll and related costs

Depreciation and amortization

Other operating expenses

Operating proﬁt/(loss)

4,22

12

6

(11 650)

(164)

(16 220)

(138)

(34 106)

(45 920)

(44 504)

(60 674)

Fair value gains/losses on investments

Fair value gains/losses on convertible loan

Financial income

13

19

7

283 844

(10 476)

63 487

66 374

-

127

Financial costs

7

(88 523)

202 412

(456)

5 371

Proﬁt/(loss) before tax

Income tax

8

-

Proﬁt/(loss) for the period

202 412

5 371

(Amounts in NOK)

EARNINGS PER SHARE

Basic earnings per share

Diluted earnings per share

9

0.88

0.75

0.02

NORDIC MINING

ANNUAL REPORT 2022

CONTENT

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CORPORATE GOVERNANCE

FINANCIAL STATEMENTS

29

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(Amounts in NOK thousands)

Note

2022

2021

Net proﬁt/(loss) for the period

202 412

5 371

OTHER COMPREHENSIVE INCOME:

Items that will not be reclassiﬁed subsequently to proﬁt or loss:

Changes in pension estimates

17,24

(1 009)

(100)

Other comprehensive income directly against equity

(1 009)

(100)

Total comprehensive income/(loss) for the period

201 403

5 271

NORDIC MINING

ANNUAL REPORT 2022

CONTENT

CEO’s REPORT

OPERATIONS

BOD’s REPORT

CORPORATE GOVERNANCE

FINANCIAL STATEMENTS

30

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(Amounts in NOK thousands)

Note

31.12.2022

31.12.2021

(Amounts in NOK thousands)

Note

31.12.2022

31.12.2021

ASSETS

SHAREHOLDERS’ EQUITY AND LIABILITIES

Shareholders’ equity

Non-current assets

Evaluation and exploration assets

Mine under construction

Property, plant and equipment

Right-of-use assets

10

11

12

13

-

288 410

1 090

106

28 800

-

Share capital

17

139 390

319 430

16 038

137 695

313 699

16 038

Share premium

200

Other paid-in capital

239

Retained earnings/(losses)

Other comprehensive income/(loss)

Total equity

(16 135)

(4 232)

(218 547)

(3 223)

Financial investments

Total non-current assets

-

190 519

219 758

17

289 606

454 491

245 662

Current assets

Non-current liabilities

Lease liabilities

Trade and other receivables

Bond Escrow

14,20

15

23 297

1 032 597

4 215

3 444

25

24

-

1 812

113

1 062

1 175

-

Pension liabilities

Restricted cash

16

Total non-current liabilities

Cash and cash equivalents

Total current assets

16

164 703

1 224 812

32 086

35 530

Current liabilities

Trade payables

20

15,20

19,20

18

37 168

850 825

142 976

27 146

3 093

-

Total assets

1 514 418

255 288

Bond loan

Convertible loan

Other current liabilities

Total current liabilities

Total liabilities

-

5 358

8 451

9 626

1 058 115

1 059 927

Total shareholders’ equity and liabilities

1 514 418

255 288

Oslo, 25 April 2023

The Board of Directors of Nordic Mining ASA

Kjell Roland

Kjell Sletsjøe

Deputy chair

Eva Kaijser

Board member

Benedicte Nordang

Board member

Antony Beckmand

Board member

Ivar S. Fossum

Chair

CEO

NORDIC MINING

ANNUAL REPORT 2022

CONTENT

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CORPORATE GOVERNANCE

FINANCIAL STATEMENTS

31

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Aꢀributed to equity holders of the parent

Share

capital

Share

premium

Other-paid-in

capital

Other comprehensive

Retained

Total

equity

(Amounts in NOK thousands)

Note

income/(loss) earnings/(losses)

Equity 1 January 2021

118 495

472 824

15 804

(3 124)

(439 711)

164 288

5 371

(100)

Proﬁt/(loss) for the period

Other comprehensive income

Total comprehensive income

Share issue

-

5 371

-

(100)

-

(100)

5 371

5 271

80 000

(4 133)

-

19 200

60 800

(4 133)

(215 792)

-

Transaction costs

-

215 792

-

Reduction of share premium to cover loss

Share-based compensation

Equity 31 December 2021

-

234

137 695

313 699

16 038

(3 223)

(218 547)

245 662

Equity 1 January 2022

Proﬁt/(loss) for the period

Other comprehensive income

Total comprehensive income

Share issue

137 695

313 699

16 038

(3 223)

-

(218 547)

202 412

-

245 662

202 412

(1 009)

-

(1 009)

-

202 412

-

201 403

7 426

6

1 695

5 731

319 430

Equity 31 December 2022

139 390

16 038

(4 232)

(16 135)

454 491

NORDIC MINING

ANNUAL REPORT 2022

CONTENT

CEO’s REPORT

OPERATIONS

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CORPORATE GOVERNANCE

FINANCIAL STATEMENTS

32

CONSOLIDATED STATEMENT OF CASH FLOWS

(Amounts in NOK thousands)

Note

2022

2021

(Amounts in NOK thousands)

Note

2022

2021

Operating activities

Financing activities

Income/loss (-) before income tax

Depreciation

202 412

164

5 371

Share issuance

17

19

15

7 426

-

80 000

12

138

Transaction costs, share issue

Gross proceeds from borrowings, Convertible loan

Transaction costs, Convertible loan

Transfer to Bond Escrow

(4 133)

Gain on sale of ﬁxed assets

Gains/losses on investments

Gains/losses on on convertible loan

Interest and fees, loans and borrowings

Interest Bond Escrow

-

(188)

132 500

(6 089)

(178 782)

(17 440)

(151)

-

13

19

(283 844)

10 476

41 961

(5 795)

(2 442)

-

(66 374)

-

Interest and ﬁnancing fees paid

Payment of lease liabilities

15

-

25

(156)

75 711

Foreign exchange, net

Net cash from ﬁnancing activities

(62 536)

Share-based expenses

234

Change in working capital

(7 285)

(4 215)

(259)

1 255

-

Net change in cash and cash equivalents

128 347

32 086

4 269

(10 137)

42 223

-

Transfer to restricted account

Diﬀerence between pension expense and payment

Net cash used in operating activites

16

Cash and cash equivalents at beginning of period

Eﬀect of exchange rate ﬂuctuation on cash held

Cash and cash equivalents at end of period

(406)

(59 970)

(48 826)

164 703

32 086

Investing activities

Net change in restricted cash

4 215

-

Acquisition of licenses and properties

Investment in mine under construction

Acquisition of property, plant and equipment

Financial investments

10

11

12

13

-

(233 733)

(921)

(2 211)

Restricted cash at beginning of period

Restricted cash at end of period

-

4 215

168 918

-

(24 030)

-

Restricted and unrestricted cash at end of period

32 086

-

Proceeds from sale of ﬁnancial investments

Sale of property, plant and equipment

Net cash used in investing activities

474 363

-

363

239 709

(25 879)

NORDIC MINING

ANNUAL REPORT 2022

CONTENT

CEO’s REPORT

OPERATIONS

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CORPORATE GOVERNANCE

FINANCIAL STATEMENTS

33

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Going concern assumption

The Group has historically used equity ﬁnancing to

ﬁnance research, operations, purchase of licenses

and other investments. In order to secure ﬁnancing

of the Engebø project, the Group has in 2022 issued

a bond loan and a convertible loan in addition to

divesting its investment in Keliber. At the date of

these annual ﬁnancial statements the Group has fully

ﬁnanced the Engebø Rutile and Garnet Project. The

project ﬁnancing comprises of equity, debt, and

royalty ﬁnancing. For more information on liquidity

risk see Board of Directors’ report and note 20.

amount when the recoverable amount is lower

than the carrying value of the asset. The

recoverable amount is the higher of fair value

less expected cost to sell and value in use (present

value based on the future use of the asset).

All impairment assessments require a high

degree of estimation, including assessments of

expected future cash ﬂows from the cash

generating unit and the estimation of applicable

discount rates. Impairment testing requires

long-term assumptions to be made concerning

a number of economic factors such as future

production levels, market conditions, production

expense, discount rates and political risk among

others, in order to establish relevant future

cash ﬂow estimates. There is a high degree of

reasoned judgement involved in establishing

these assumptions and in determining other

relevant factors.

•

Classiﬁcation of bond loan and Bond Escrow

(Note 15):

The Group issued in 2022 a USD 100 million

senior secured bond. The proceeds from the

bonds will following satisfaction of certain

pre-disbursement conditions precedent,

including conditions of the full amount of equity

ﬁnancing and royalty ﬁnancing having been

spent towards the development and construction

of the Engebø Project, be released in three

tranches from the Bond Escrow account. The bonds

are until satisfaction of the pre-disbursement

conditions precedent results in drawdown of

the bond proceeds from the bond escrow

account classiﬁed as a current liability in the

statement of ﬁnancial position. The restricted

cash balances from the bonds are classiﬁed as

“Bond Escrow” in the consolidated statement of

ﬁnancial position and will ﬁrst be recognized as

cash in the consolidated statement of ﬁnancial

position once the funds are released from the

escrow account. Interest expenses up to the

satisfaction of the condition of the Engebø

Project being fully ﬁnanced are recognized as

expense in the income statement at amortized

cost using the eﬀective interest-rate method.

The conditions were satisﬁed on 8 March 2023.

Following the satisfaction of the ﬁnancing

conditions, borrowing costs related to the bond

loan a be capitalized as part of “Mine under

construction” at amortized cost using the

eﬀective interest-rate method.

•

Valuation of convertible loan (Note 19):

The Group entered in 2022 into a convertible

loan with a local investor group. The loan is

measured at fair value with changes in the fair

value recognized in the income statement.

As there is no observable market price for the

convertible loan, the Group is assessing the fair

value of the convertible loan using valuation

techniques. Fair value is the price that would be

received to divest the convertible loan in an

orderly transaction between market participants

at the measurement date. The fair value of the

convertible loan is measured using the

assumptions that market participants would

use when pricing the loan. The Group uses

NOTE 1 - GENERAL INFORMATION

Nordic Mining ASA

(“the Company”) and its

subsidiaries (together “the Group”) is engaged in

the exploration for and development of projects

for high-end industrial minerals and metals. The

address to Nordic Mining’s oﬃce is Munkedams-

veien 45, N-0250 Oslo, Norway.

These ﬁnancial

statements were approved for issue by the Board

of Directors on 25 April 2023.

NOTE 2 - SUMMARY OF SIGNIFICANT

ACCOUNTING PRINCIPLES

Basis of preparation

The principal accounting policies applied in the

preparation of these consolidated ﬁnancial

statements are set out below. These policies have

been consistently applied unless otherwise stated.

The consolidated ﬁnancial statements of Nordic

Mining ASA have been prepared in accordance with

International Financial Reporting Standards (IFRS)

as adopted by the European Union.

The consolidated ﬁnancial statements have been

prepared under the historical cost convention with

some exceptions outlined below; the main

exceptions being Financial investments and

Convertible loan at fair value through proﬁt or loss.

The annual accounts are based on the going

concern assumption.

Signiﬁcant accounting judgments, estimates

and assumptions

The preparation of the Group’s ﬁnancial state-

ments requires Management to make judgments,

estimates and assumptions that aﬀect the

reported amounts of revenues, expenses, assets

and liabilities, and the disclosure of contingent

liabilities, at the reporting date. However,

uncertainty about these assumptions and

estimates could result in outcomes that could

require a material adjustment to the carrying

amount of the asset or liability.

Key areas of judgement and estimation uncertainty:

•

Impairment of non-ﬁnancial assets

(Note 11 and 12):

The Group reviews whether its non-ﬁnancial

assets have suﬀered any impairment whenever

events or changes in circumstances indicate

that the carrying amount may not be recoverable.

An asset is wriꢀen down to its recoverable

NORDIC MINING

ANNUAL REPORT 2022

CONTENT

CEO’s REPORT

OPERATIONS

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CORPORATE GOVERNANCE

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34

valuation techniques that are appropriate in the

circumstances and for which suﬃcient data are

available to measure fair value, maximizing the

use of relevant observable inputs and minimizing

the use of unobservable inputs. The determination

of the fair value of the convertible loan still

requires signiﬁcant judgment from management.

The valuation of the convertible loan has been

based on level 3 inputs in the fair value hierarchy.

As there were no observable market price for

the convertible loan at year end 2022, the fair

value of the loan is based on Management’s

internal assessment of the market value at year

end, see note 19 for further information.

necessary to ensure consistency with the policies

adopted by the Group. All intra-group transactions,

balances, income and expenses are eliminated.

functional currency spot rates at the date the

transaction ﬁrst qualiﬁes for recognition. Monetary

items denominated in foreign currencies are

translated at the exchange rate at the balance

sheet date. Foreign exchange gains and losses

resulting from the seꢀlement of such transactions

and from the translation at year-end exchange rates

of monetary assets and liabilities denominated in

foreign currencies are recognized as ﬁnance income

or ﬁnance expense in the income statement.

recoverable, the drilling costs are expensed. Cost

of acquiring licenses is capitalized and assessed

for impairment at each reporting date.

Business combinations

The acquisition method of accounting is used to

account for the acquisition of businesses and

subsidiaries by the Group. The cost of an acquisition

is measured as the fair value of the assets given,

equity instruments issued, and liabilities incurred

or assumed at the date of exchange. Identiﬁable

assets acquired, and liabilities and contingent

liabilities assumed in a business combination are

measured initially at their fair values at the acquisition

date, irrespective of the extent of any non-controlling

interest. The excess of the cost of acquisition over

the fair value of the Group’s share of the identiﬁable

net assets acquired is recorded as goodwill.

Directly aꢀributable transaction costs related to

business combinations are expensed as incurred.

Mine under construction

During 2022, Evaluation and exploration assets

related to Engebø was reclassiﬁed in the balance

sheet to Mine under construction. The Group’s

accounting policy is to test Evaluation and

exploration assets for impairment and transfer to

Mine under construction as soon as a project has

been sanctioned for construction. Aꢁer transfer of

the evaluation and exploration assets, all subsequent

expenditure of the construction, installation or

completion of infrastructure facilities is capitalized

as Mine under construction. Aꢁer production

starts, all costs included in Mine under construction

are transferred to the category ‘Producing mine’.

Mine under construction is not depreciated until

construction is completed and the assets are

available for their intended use.

Acquisition of mining and mineral properties and

exploration and development of such properties

IFRS 6 “Exploration for and evaluation of mineral

resources” requires that exploration and evaluation

assets are classiﬁed as tangible or intangible

according to the nature of the assets acquired.

Some exploration and evaluation assets should be

classiﬁed as intangibles, such as drilling rights and

capitalized exploration cost. When technical

feasibility and commercial viability of extracting a

mineral resource is demonstrable, the assets

should be re-classiﬁed as ”Mine under construction”.

Evaluation and exploration assets that are

classiﬁed as intangible assets are tested for

impairment prior to reclassiﬁcation.

Basis for consolidation

The consolidated ﬁnancial statements comprise

the ﬁnancial statements of the Company and its

subsidiaries. Control is achieved when the Group is

exposed, or has rights, to variable returns from its

involvement with the investee, and has the ability

to aﬀect those returns through its power over the

investee. Speciﬁcally, the Group controls an

investee if, and only if, the Group has:

•

Power over the investee (i.e. existing rights that

give it the current ability to direct the relevant

activities of the investee)

•

Exposure, or rights, to variable returns from its

involvement with the investee

•

The ability to use its power over the investee to

aﬀect its returns

The subsidiaries include Nordic Rutile AS, Nordic

Ocean Resources AS, and Nordic Quartz AS, all 100%

owned and located in Oslo. The accounting principles

of the subsidiaries have been changed when

ꢂ

Foreign currency translation

Functional and presentation currency

NOK is the functional currency of the parent and the

presentation currency of the Group. Assets and

liabilities in foreign entities, including goodwill and

fair value adjustments related to business

combinations are translated to NOK at the

exchange rate at the balance sheet date. Revenues,

expenses, gains and losses are translated using the

average exchange rate during each quarterly

period. Translation adjustments are recognized

directly to Other Comprehensive Income.

Property, plant and equipment

The Group’s property, plant and equipment,

consisting of machinery and equipment, are

recorded at cost less accumulated depreciation.

Acquisition cost include cost directly aꢀributable

to the acquisition of the asset.

Subsequent cost is included in the asset’s carrying

amount or recognized as a separate asset, as

appropriate, only when it is probable that future

economic beneﬁts associated with the item will

ﬂow to the Group and the cost of the item can be

measured reliably. All other repairs and maintenance

cost are expensed as incurred.

Exploration and development for mineral properties

The Group employs the successful eﬀorts method

to account for exploration and development cost.

All exploration cost, with the exception of

acquisition cost of licenses and direct drilling cost

of exploration wells is expensed as incurred.

Drilling costs are temporarily capitalized pending

the evaluation of the potential existence of mineral

reserves. If reserves are not found, or if discoveries

are assessed not to be technically and commercially

Transactions and balances

Transactions in foreign currencies are initially

recorded by the Group’s entities at their respective

NORDIC MINING

ANNUAL REPORT 2022

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35

An item of property, plant and equipment is

de-recognized upon disposal or when no future

economic beneﬁts are expected from its use or

disposal. Any gain or loss arising on de-recognition

of the asset is calculated as the diﬀerence

between the net disposal proceeds and the

carrying amount of the asset and is presented as a

net gain or net loss in the income statement.

Depreciation is calculated on a straight-line basis

over the useful life of the asset (land is not

depreciated):

•

Machinery and equipment: 4-10 years

The asset’s useful life and residual amount are

reviewed on an annual basis and revised if

necessary. The carrying amount of the asset is

wriꢀen down to recoverable amount when the

carrying amount is higher that the estimated

recoverable amount (further details are

provided under “Impairment of non-ﬁnancial

assets” below).

separately identiﬁable cash ﬂows (cash-

generating units). Non-ﬁnancial assets other than

goodwill that suﬀered impairment are reviewed for

possible reversal of the impairment at each

reporting date.

Financial assets

Initial recognition and measurement:

Financial assets are classiﬁed, at initial recognition,

as subsequently measured at amortized cost, fair

value through other comprehensive income (OCI)

and fair value through proﬁt or loss.

Financial liabilities

Initial recognition and measurement:

Financial liabilities are classiﬁed, at initial recognition,

as ﬁnancial liabilities at fair value through proﬁt or

loss, loans and borrowings, payables, or as derivatives

designated as hedging instruments in an eﬀective

hedge, as appropriate. All ﬁnancial liabilities are

recognized initially at fair value and, in the case of loans

and borrowings and payables, net of directly

aꢀributable transaction costs. The Group’s ﬁnancial

liabilities include trade and other payables and loans

and borrowings, including bond loan and convertible

loan.

Government grants

Government grants are recognized where there is

reasonable assurance that the grant will be

received, and all aꢀached conditions will be

complied with. When the grant relates to an

expense item, it is recognized as income on a

systematic basis over the periods that the related

costs, for which it is intended to compensate, are

expensed. When the grant relates to an asset, it is

recognized as income in equal amounts over the

expected useful life of the related asset.

Financial assets at fair value through proﬁt

or loss:

Financial assets at fair value through proﬁt or loss

include ﬁnancial assets held for trading, ﬁnancial

assets designated upon initial recognition at fair

value through proﬁt or loss, or ﬁnancial assets

mandatorily required to be measured at fair value.

Financial assets are classiﬁed as held for trading if

they are acquired for the purpose of selling or

repurchasing in the near term. Derivatives,

including separated embedded derivatives, are

also classiﬁed as held for trading unless they are

designated as eﬀective hedging instruments.

Financial assets with cash ﬂows that are not solely

payments of principal and interest are classiﬁed

and measured at fair value through proﬁt or loss.

Subsequent measurement:

For purposes of subsequent measurement,

ﬁnancial liabilities are classiﬁed in two categories:

•

Financial liabilities at amortized cost (loans

and borrowings and trade and other payables)

•

Financial liabilities at fair value through proﬁt

or loss

Leases (as lessee)

The Group adopted IFRS 16 – Leases from 1

January 2019. IFRS 16 sets out the principles for

recognition, measurement, presentation and

disclosures of leases. IFRS 16 deﬁnes a lease as a

contract that conveys the right to control the use

of an identiﬁed asset for a period of time in exchange

for consideration. For each contract that meets this

deﬁnition, IFRS 16 requires lessees to recognize a

right-of-use asset and a lease liability in the

balance sheet with certain exemptions for short

term and low value leases. Lease payments are to

be reﬂected as interest expense and a reduction of

lease liabilities, while the right-of-use assets are to

be depreciated over the shorter of the lease term

and the assets’ useful life. Lease liabilities are

measured at the present value of remaining lease

payments, discounted using the Group’s calculated

borrowing rate. Right-of-use assets are measured

at an amount equal to the lease liability.

ꢂ

Impairment of non-ﬁnancial assets

Intangible assets that have an indeﬁnite useful life

or intangible assets not yet available for use are

not subject to amortization and are tested annually

for impairment. Assets that are subject to

amortization are reviewed for impairment

whenever events or changes in circumstances

indicate that the carrying amount may not be

recoverable. An impairment loss is recognized

for the amount by which the asset’s carrying

amount exceeds its recoverable amount. The

recoverable amount is the higher of an asset’s fair

value less cost to sell and value in use. For the

purposes of assessing impairment, assets are

grouped at the lowest levels for which there are

Financial liabilities at amortized cost

Aꢁer initial recognition, interest-bearing loans and

borrowings and trade and other payables are

subsequently measured at amortized cost using

the eﬀective interest method; any diﬀerence between

proceeds (net of transaction cost) and the redemption

value is recognized on the income statement over the

period of the interest-bearing liabilities.

Receivables

Receivables are recognized initially at fair value and

subsequently measured at amortized cost using the

eﬀective interest method, less provision for

impairment.

Cash and cash equivalents

Cash and short-term deposits in the balance sheet

comprise cash at banks and other short-term highly

liquid investments that are readily convertible to

known amounts of cash, are subject to an

insigniﬁcant risk of changes in fair value and with

original maturities of three months or less.

Financial liabilities at fair value through

proﬁt or loss

Aꢁer initial recognition, ﬁnancial liabilities

measured at fair value through proﬁt or loss are

measured at fair value at each balance sheet date,

with changes in fair value through proﬁt or loss.

NORDIC MINING

ANNUAL REPORT 2022

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36

Financial liabilities at fair value through proﬁt or

loss include ﬁnancial liabilities held for trading and

ﬁnancial liabilities designated upon initial recognition

as at fair value through proﬁt or loss. The Group has

designated its convertible loan into this category.

Financial liabilities are classiﬁed as held for trading

if they are incurred for the purpose of repurchasing

in the near term. This category also includes derivative

ﬁnancial instruments entered into by the Group that

are not designated as hedging instruments in hedge

relationships as deﬁned by IFRS 9. Separated

embedded derivatives are also classiﬁed as held for

trading unless they are designated as eﬀective

hedging instruments. Gains or losses on liabilities

held for trading are recognized in the statement of

proﬁt or loss and other comprehensive income.

value of the options is recognized as a payroll expense

in the statement of proﬁt or loss over the vesting

period and as other paid in equity in the balance sheet.

Fair value of options is estimated by use of the Black

Scholes option model and is charged to the statement

of proﬁt or loss over the vesting period without

revaluation of the value of the options.

Pensions

Deﬁned beneﬁt plan:

The Group has a deﬁned beneﬁt pension plan for its

employees that meet the Norwegian statutory

requirement. For the deﬁned beneﬁt plan, the cost of

providing the beneﬁts is determined using the unit

credit method, with actual valuations being carried

out at the end of each annual reporting period.

Re-measurement, comprising actuarial gains and

losses, the eﬀect of asset ceiling (if applicable) and

the return on plan assets (excluding interest), is

reﬂected immediately in the statement of ﬁnancial

position with a charge or credit recognized in other

comprehensive income in the period in which they

occur. Past service cost is recognized in proﬁt or loss

in the period of a plan amendment. Net interest is

calculated by applying the discount rate at the

beginning of the period to the net deﬁned beneﬁt

liability or asset.

•

obligations that cannot be measured with

suﬃcient reliability

Contingent liabilities are not recognized on the

balance sheet unless arising from assuming assets

and liabilities in a business combination. Signiﬁcant

contingent liabilities are disclosed unless the

possibility of an outﬂow of resources embodying

economic beneﬁts is remote. Reference is made to

Note 11 and 27 in the consolidated ﬁnancial

statements regarding contingent liabilities related

to the Engebø rutile deposit.

Income taxes

Income tax expense represents the sum of the taxes

currently payable and deferred tax. Taxes payable

are provided based on taxable proﬁts at the current

tax rate. Deferred taxes are recognized on diﬀerences

between the carrying amounts of assets and liabilities

in the ﬁnancial statements and the corresponding

tax bases used in the computation of taxable proﬁt.

Deferred tax liabilities are generally recognized for

all temporary diﬀerences, and deferred tax assets

are recognized to the extent that it is probable that

taxable proﬁts will be available against which

deductible temporary diﬀerences can be utilized.

Deferred income tax is not recognized on temporary

diﬀerences arising from initial recognition of an asset

or liability in a transaction other than a business

combination that at the time of the transaction

aﬀects neither accounting nor taxable proﬁt nor loss.

The carrying amount of deferred tax assets is

reviewed at each balance sheet date and reduced

to the extent that it is no longer probable that

suﬃcient taxable income will be available to allow

all or part of the asset to be recovered.

If deferred tax assets are not recognized, items

recorded directly to equity, or in other comprehen-

sive income (OCI), are accounted for gross, without

any deduction of deferred taxes.

Cash ﬂow statement

The Group reports the cash ﬂow statement using

the indirect method. The method involves adjusting

the result for the period for the eﬀects of transactions

without eﬀect on cash and changes in assets and

liabilities to show net cash ﬂow from operations.

Cash ﬂow relating to investment activities and

ﬁnancing activities are shown separately.

De-recognition of ﬁnancial liabilities

The Group de-recognizes a ﬁnancial liability (or a part

of a ﬁnancial liability) from its balance sheet when,

and only when, it is extinguished. A ﬁnancial liability is

extinguished when the obligation speciﬁed in the

contract is discharged or cancelled, or when it expires.

Deﬁned contribution plan:

In the deﬁned contribution pension plan, the Group

is responsible for making an agreed contribution to

the employee’s pension assets. The future pension

will be determined by the amount of the contributions

and the return on the pension savings. Once the

contributions have been paid, there are no further

payment obligations aꢀached to the deﬁned

contribution pension.

Related party transactions

All transactions, agreements and business

activities with related parties are conducted

according to ordinary business terms and

conditions. Parties are related if one party has the

ability, directly or indirectly, to control the other

party or exercise signiﬁcant inﬂuence over the

other party in making ﬁnancial and operating

decisions. Parties are also related if they are

subject to common control or common signiﬁcant

inﬂuence. The Group provides note disclosure for

related party transactions and balances in Note 20

in the consolidated ﬁnancial statements.

Share capital

Ordinary shares are classiﬁed as equity.

Share issuance cost that is incremental and directly

aꢀributable to the issue of new shares or options are

shown in equity as a deduction from the proceeds. If

deferred tax assets are not recognized, items

recorded directly to equity are accounted for gross,

without any deduction of deferred taxes.

Contingent liabilities

Contingent liabilities are deﬁned as:

•

possible obligations resulting from past events

whose existence depends on future events

•

obligations that are not recognized because it

is not probable that they will lead to an outﬂow

of resources

Share-based compensation

The Group uses equity seꢀled options to incentivize

employees and qualiﬁed resource persons. The fair

Earnings per share

The calculation of basic earnings per share is based

NORDIC MINING

ANNUAL REPORT 2022

CONTENT

CEO’s REPORT

OPERATIONS

BOD’s REPORT

CORPORATE GOVERNANCE

FINANCIAL STATEMENTS

37

on the proﬁt/loss aꢀributable to ordinary

shareholders using the weighted average number

of shares outstanding during the year aꢁer

deduction of the average number of treasury

shares held over the period. The calculation of

diluted earnings per share is consistent with the

calculation of basic earnings per share while giving

eﬀect to all dilutive potential ordinary shares that

were outstanding during the period, that is:

•

The net proﬁt for the period aꢀributable to

ordinary shares is increased by the aꢁer-tax

amount of dividends and interest recognized in the

period in respect of the dilutive potential ordinary

shares and adjusted for any other changes in

income or expense that would result from the

conversion of the dilutive potential ordinary shares.

•

Weighted average number of shares which

includes the eﬀect of all potential dilutive

shares as if converted at the beginning of the

period, or from the issue date if later.

NOTE 3 - SEGMENTS

The Group presents segments based on of the

Group’s mineral projects. The only reportable

segment of the Group is the Titanium and Garnet

segment. These are the minerals which can be

produced from the mineral deposit at Engebø.

The zoning plan and the discharge permit for the

project are approved and ﬁnal, without possibility

for appeals, and the operating license for the

project was granted in June 2020. In May 2022,

the Ministry of Trade, Industry and Fisheries

(“MTIF”) resolved that Nordic Mining’s operating

license is maintained as granted with full rights to

the Engebø deposit, conﬁrming the resolution from

the Directorate of Mining. The Deﬁnitive Feasibility

Study was presented in January 2020 and an

Updated Feasibility Study was presented in May

2021.

In April 2022, Nordic Rutile commenced early

construction works at Engebø, which includes

preparing the properties for construction,

continuation of detailed project planning and

process for procurement of critical process

equipment, and commencement of groundworks

on process plant area and preparatory works for

underground infrastructure.

NOTE 4 - SALARIES

(Amounts in NOK thousands)

2022

2021

Wages and salaries

11 404

10 982

Social security costs

2 089

2 266

Pension costs deﬁned beneﬁt plan

734

862

Pension costs deﬁned contribution plan

431

272

Board members, etc

1 300

Share-based compensation

-

234

Other personnel costs

588

304

Capitalized payroll costs

(4 896)

-

Total

11 650

16 220

Average number of full time employees

9

8

Reference is made to Note 23 for further information about remuneration of Senior Management and

guidelines for remuneration.

New accounting standards

New standards and amendments to standards and

interpretations eﬀective from 1 January 2022 did

not have any signiﬁcant impact on the ﬁnancial

statements.

New standards, amendments and interpretations

issued but not adopted by the Group

A number of new standards and amendments to

standards and interpretations are eﬀective for

annual periods beginning on or aꢁer 1 January

2023 and have not been applied in preparing these

ﬁnancial statements. None of these new standards

and amendments to standards and interpretations

are expected to have any signiﬁcant impact on the

Group’s ﬁnancial statements.

NORDIC MINING

ANNUAL REPORT 2022

CONTENT

CEO’s REPORT

OPERATIONS

BOD’s REPORT

CORPORATE GOVERNANCE

FINANCIAL STATEMENTS

38

The Group used the Black Scholes model to estimate fair value of the options granted at time of grant.

The following table show the weighted-average assumptions used in the model:

Weighted-average assumptions

2022

2021

Volatility *

41 %

Expected life

2,35

Risk free interest

1,05 %

Share price

2,47

Exercise price

2,63

* The expected volatility has been estimated based on historical volatility of the share price of the Company.

NOTE 5 - SHARE-BASED COMPENSATION

On 1 November 2018, the General Meeting of Nordic Mining approved an equity seꢀled share-based

compensation program of up to 4.5 million options for employees and qualiﬁed resource persons. On 26

November 2018, the Board of Directors granted 3 million options at a strike price of NOK 2.63 per share

to employees in the Group. The options vest by 1/3 each year, ﬁrst time on 30 June 2019. The option

agreements expired on 30 June 2022 and were conditional on the employee remaining in the Group’s

employment for the duration of the vesting period.

In April 2021 additional 0.4 million options were granted at a strike price of NOK 2.62 per share. These

options vested at grant date and expired on 30 June 2022.

All options have been exerciced during 2022 and there are no outstanding options at year end.

2022

2021

Number of

Weighted

Number of

Weighted

options

average

options

average

exercise price

Outstanding 1 January

2 825 000

2,63

2 425 000

2,63

Granted during the year

-

400 000

2,62

Cancelled during the year

-

Exercised during the year

(2 825 000)

2,63

-

Expired during the year

-

Outstanding 31 December

-

2 825 000

2,63

Exercisable 31 December

-

2 825 000

2,63

The average fair value of options granted in 2018 was NOK 0.59 at time of grant, and the average fair

value of options granted in 2021 was NOK 0.33 at time of grant. The average remaining contractual life

for options outstanding as per 31 December 2021 was 0.5 years.

The Group has no expenses for share based payment in 2022 (2021: NOK 234 thousand).

NOTE 6 - OTHER OPERATING COSTS

(Amounts in NOK thousands)

2022

2021

Lease expenses

2 932

2 329

Project costs – Engebø Rutile and Garnet

17 994

31 999

Consulting and legal fees

9 807

7 181

Other costs

7 191

3 342

Other operating expenses capitalized

(3 818)

-

Total

34 106

44 504

Auditor fees

(Amounts in NOK thousands)

2022

2021

Statutory audit

1 117

704

Other aꢀestation services

191

62

Total

1 308

766

The amounts exclude VAT.

NORDIC MINING

ANNUAL REPORT 2022

CONTENT

CEO’s REPORT

OPERATIONS

BOD’s REPORT

CORPORATE GOVERNANCE

FINANCIAL STATEMENTS

39

Tax eﬀects of temporary diﬀerences and tax loss carryforwards at 31 December:

Amounts in thousands

2022

2021

Mine under construction/PP&E

9 563

9 591

Pensions

399

234

Bond loan

(16 455)

-

Tax loss carryforwards

162 428

128 922

Total net deferred tax assets

155 935

138 747

Nominal tax rate (used for measurement)

22 %

Recognized in the statement of ﬁnancial position

Deferred tax asset

-

Deferred tax liability

-

The Group recognized nil in gross transaction cost of the 2022 share issues directly in equity (in 2021:

NOK 4.1 million) which is included in tax loss carry forwards.

The following table shows the reconciliation of expected tax using the nominal tax rate to the actual tax

expense/(income):

Amounts in thousands

2022

2021

Income/loss (-) before tax

202 412

5 371

Nominal tax rate

22 %

Expected income tax

44 531

1 182

Non-deductible costs

(39)

119

Non-taxable income

-

(332)

Eﬀect of non-taxable gains/losses on convertible loan

989

-

Eﬀect of non taxable gains/losses on investments

(62 446)

(14 602)

Non-recognized tax assets on current year result

16 965

13 633

Tax expense/(income)

-

NOTE 7 - FINANCE INCOME AND FINANCE COSTS

The following table shows the components of ﬁnancial income and ﬁnancial expense:

(Amounts in NOK thousands)

2022

2021

Interest income on bank deposits

1 575

40

Interest income, Bond Escrow

5 795

-

Foreign exchange gains

56 117

87

Finance income

63 487

127

Interest cost

(20 056)

(28)

Other ﬁnance costs

(25 605)

(184)

Foreign exchange losses

(42 862)

(244)

Finance costs

(88 523)

(456)

Other ﬁnance costs relates to fees in relation to the convertible loan (see Note 19 for details on convertible

loan), transaction costs related to USD 50 milllion non-dilutive royalty ﬁnancing agreement entered into

with between Nordic Rutile AS and Orion Resource Partner in February 2023, including the intercreditor

agreement entered into between Nordic Trustee on behalf of the senior secured bonds and Orion

Resource Partner, and other ﬁnance costs.

NOTE 8 - INCOME TAXES

The Group has incurred substantial tax losses carried forward and the related tax asset is shown in the

table below. At year end 2022, the Group cannot substantiate that there will be suﬃcient future taxable

income to be able to realize the Group’s unused tax losses, and therefore the Group has not recognized

deferred tax assets at 31 December 2022. Tax losses can be carried forward indeﬁnitely in Norway.

Amounts in NOK thousands

2022

2021

Taxes payable

-

Deferred tax

-

Income tax expense/(income)

-

NORDIC MINING

ANNUAL REPORT 2022

CONTENT

CEO’s REPORT

OPERATIONS

BOD’s REPORT

CORPORATE GOVERNANCE

FINANCIAL STATEMENTS

40

NOTE 9 - EARNINGS PER SHARE

(Amounts in NOK thousands and number of shares in thousands)

2022

2021

Earnings

Aꢀributable to ordinary shareholders

202 412

5 371

Number of shares

Weighted average number of ordinary shares outstanding - basic

231 249

224 569

Weighted average number of ordinary shares outstanding - diluted

268 286

227 272

(Amounts in NOK)

Earnings per share aꢀributable to ordinary shareholders

Basic earnings per share

0,88

0,02

Diluted earnings per share

0,75

0,02

The eﬀect of potentially dilutive shares arising from the convertible loan (ref. Note 19) is included in the

calculation of diluted earnings per share for 2022.

The eﬀect of potentially dilutive shares arising from options (ref. Note 5) was included in the calculation

of diluted earnings per share for 2021 since the options were in-the-money in 2021.

NOTE 10 - EVALUATION AND EXPLORATION ASSETS

License

Capitalized

(Amounts in NOK thousands)

cost

exploration

Total

Cost at 1 January 2021

13 447

18 621

32 068

Additions

451

-

451

Cost at 31 December 2021

13 898

18 621

32 519

Additions

-

Reclassiﬁed to Mine under construction

(13 898)

(14 902)

(28 800)

Cost at 31 December 2022

-

3 719

Provision for impairment at 1 January 2021

-

(3 719)

Impairments

-

Provision for impairment at 31 December 2021

-

(3 719)

Impairments

-

Provision for impairment at 31 December 2022

-

(3 719)

Net book value 31 December 2022

-

Net book value 31 December 2021

13 898

14 902

28 800

Net book value 1 January 2021

13 447

14 902

28 349

NORDIC MINING

ANNUAL REPORT 2022

CONTENT

CEO’s REPORT

OPERATIONS

BOD’s REPORT

CORPORATE GOVERNANCE

FINANCIAL STATEMENTS

41

NOTE 11 - MINE UNDER CONSTRUCTION

(Amounts in NOK thousands)

Mine under construction

Cost at 1 January 2022

-

Transfer from evaluation and exploration assets

28 800

Additions

259 610

Cost at 31 December 2022

288 410

Impairment

-

Provision for impairment 31 December 2022

-

Net book value 31 December 2022

288 410

Net book value 31 December 2021

-

Net book value 1 January 2021

-

In April 2022 Nordic Rutile AS has exercised the agreements with landowners to acquire the main

properties at Engebø, which includes immediate access to the process plant area. The Company has

started construction works at Engebø, which includes preparing the properties for construction,

continuation of detailed project planning and process for procurement of critical process equipment,

and commencement of groundworks on process plant area and preparatory works for underground

infrastructure. The direct costs related to the work described above has been capitalized in the balance

sheet as Mine under construction, together with the cost of acquiring the land properties at Engebø.

In addition, Evaluation and exploration assets related to Engebø has in 2022 been reclassiﬁed in the

balance sheet to Mine under construction.

Mining concessions Engebø

The carrying amount for licenses related to the Engebø area is included in the transfer from Evaluation

and exploration assets. Additionally, the Group has a conditional liability to the seller of NOK 40 million

that will be paid if and when commercial operation commences at Engebø. No liability has been recognized

as per 31 December 2022.

NOTE 12 - PROPERTY, PLANT, EQUIPMENT AND RIGHT-OF-USE ASSETS

Machinery &

Right-of-use

(Amounts in NOK thousands)

equipment

assets

Total

Cost

1 January 2021

941

664

1 605

Additions

-

Disposals

(285)

31 December 2021

656

664

1 320

Additions

921

-

921

Disposals

-

31 December 2022

1 577

664

2 241

Depreciation

1 January 2021

(567)

(287)

(854)

Depreciation expense

-

(138)

Disposals

111

31 December 2021

(456)

(425)

(881)

Depreciation expense

(31)

(133)

(164)

Disposals

-

31 December 2022

(487)

(558)

(1 045)

Net book value

31 December 2022

1 090

106

1 196

31 December 2021

200

239

439

1 January 2021

374

377

751

Machinery and equipment are depreciated over a period of 4-10 years.

In 2021 the Group has sold a vehicle to its Senior Advisor, Lars K. Grøndahl, for NOK 363,000, which

represented the estimated market value.

NORDIC MINING

ANNUAL REPORT 2022

CONTENT

CEO’s REPORT

OPERATIONS

BOD’s REPORT

CORPORATE GOVERNANCE

FINANCIAL STATEMENTS

42

NOTE 13 - FINANCIAL INVESTMENTS

The Group’s only ﬁnancial investment in 2022 and 2021 has been the holding of shares in the Finnish

mining company Keliber Oy. At year end 2021 the Group had a 12.7% interest in Keliber. The investment

has been measured at Fair Value Through Proﬁt and Loss under IFRS 9 (“FVPL Method”).

2022

In June 2022, the Group accepted an oﬀer from Sibanye-Stillwater Limited to divest its shares in Keliber

for a cash consieration of EUR 157.28 per share, in total EUR 46.9 million. The sale of the shares was

completed in Q3 2022, with a gain on investment in 2022 of NOK 283.8 million. In addition, the

consideration received in EUR resulted in foreign exchange gains from the close of the sale to the funds

was recieved and sold to NOK, included in ﬁnancial income in 2022 of NOK 16.1 million.

2021

At year end 2021 the Group assessed the fair value of Keliber to EUR 64 per share, corresponding to

NOK 190.5 million. This resulted in a gain on the investment of NOK 66.3 million for the year. The

valuation as per 31 December 2021 was based on level 3 inputs in the fair value hierarchy.

Summary of eﬀects from Keliber investment in 2022 and 2021

Balance sheet

Statement of

(Amounts in NOK thousands)

proﬁt or loss

Fair value 1 January 2022

190 519

Gain on investment 2022

283 844

Disposal

(474 363)

Fair value 31 December 2022/

Total eﬀects on statement of proﬁt or loss

-

283 844

Fair value 1 January 2021

100 114

Addition in 2021

24 030

Gain on investment 2021

66 374

Fair value 31 December 2021/

Total eﬀects on statement of proﬁt or loss

190 519

66 374

NOTE 14 -TRADE AND OTHER RECEIVABLES

(Amounts in NOK thousands)

2022

2021

Other ﬁnancial receivables

918

802

Prepayments

829

821

Skaꢀefunn (receivable tax credit)

-

347

VAT receivable

21 550

1 474

Totalt

23 297

3 444

NORDIC MINING

CONTENT

CEO’s REPORT

OPERATIONS

BOD’s REPORT

2022

Carrying

Cash

amount

transferred to

(Amounts in thousands)

Bond Loan

Bond Escrow

Loan at nominal value

1 025 220

-

10% discount

(102 522)

-

Fees paid at inception

(33 361)

-

Other fees

(1 606)

-

Amortization of fees

2 583

-

Future interest transferred to Bond Escrow

-

42 900

(42 900)

Discount and fees transferred to Bond Escrow

-

135 883

(135 883)

Accrued interest

-

5 795

-

Foreign exchange

(39 490)

(41 318)

-

Total at year end

850 825

1 032 597

(178 782)

CORPORATE GOVERNANCE

FINANCIAL STATEMENTS

43

ANNUAL REPORT 2022

NOTE 15 - BOND LOAN AND BOND ESCROW

In November 2022, Nordic Rutile AS completed the issue of a USD 100 million 5-year senior secured

bond. The bonds are administered by Nordic Trustee. The bond has ﬁxed coupon of 12.5% per annum,

with interest payable quarterly in arrears, and an issue price of 90%.

The bond loan is classiﬁed as a current liability in the statement of ﬁnancial position until satisfaction of

the pre-disbursement conditions precedent results in drawdown of the bond proceeds from the Bond

Escrow account.

The bond loan was initially recognized at cost, being the fair value of the consideration received net of

issue costs associated with the borrowing (inclusive the 10% discount). Aꢁer initial recognition, the bond

loan is subsequently measured at amortized cost using the eﬀective interest method; any diﬀerence

between proceeds (net of transaction cost including the 10% discount) and the redemption value is

recognized on the income statement over the period of the loan.

The net proceeds of the bonds of USD 90 million was on issue deposited into a Bond Escrow account,

together with issue discount of USD 10 million, four months bond interest of USD 4.2 million, and

transaction costs of USD 3.3 million (in total NOK 178.8 million), transferred by Nordic Rutile AS in line

with the bond terms. Following conditions of the Engebø Project being fully funded, which were satisﬁed

on 8 March 2023, and certain pre-disbursement conditions precedent, the proceeds from the bonds will

be released in three tranches from the Bond Escrow account to be used for costs and expenditures to

bring the Engebø Project into commercial production.

NOTE 16 - CASH AND CASH EQUIVALENTS

(Amounts in NOK thousands)

2022

2021

Bank deposits

164 703

32 086

Total cash and cash equivalents

164 703

32 086

Restriced cash in tax withholding account

720

478

In addition to the amounts referred to above, the Group has a deposit of NOK 4.2 million on a restricted

account at year end pledged toward the Directorate of Mining. The purpose of the deposit is clean-up

measures in accordance with the operating license.

NORDIC MINING

ANNUAL REPORT 2022

CONTENT

CEO’s REPORT

OPERATIONS

BOD’s REPORT

CORPORATE GOVERNANCE

FINANCIAL STATEMENTS

44

Components of other comprehensive income

The following table shows a reconciliation of the components of other comprehensive income (“OCI”):

Actuarial

(Amounts in NOK thousands)

gain/loss

Total OCI

Balance on 1 January 2021

(3 123)

Actuarial gain/(loss)

(100)

Balance on 31 December 2021

(3 223)

Actuarial gain/(loss)

(1 009)

Balance on 31 December 2022

(4 232)

NOTE 17 - SHARE CAPITAL

Number of shares outstanding

Ordinary Shares

2021

Opening balance

197 491 772

Share issuance

32 000 000

31 December 2021

229 491 772

2022

Opening balance

229 491 772

Share issuance

2 825 000

31 December 2022

232 316 772

All shares carry equal rights and has a par value of 0.60 per share.

Share issues in 2022

In May 2022 a total of 2,825,000 options held by Management were exercised. Following the exercise

there are no outstanding options for shares in the Company held by Management. Gross proceeds were

NOK 7.4 million in accordance with the authorization to the Board to increase the share capital granted

by the general meeting on 14 May 2020. Following registration of the new share capital Nordic Mining’s

share capital has increased by NOK 1,695,000 to NOK 139,390,063.20 divided into 232,316,772

shares, each with a par value of NOK 0.60.

Share issues in 2021

In February 2021, Nordic Mining completed a private placement of 32,000,000 shares with gross

proceeds of NOK 80 million. Following registration of the new share capital the Company’s share capital

has increased by NOK 19,200,000 to NOK 137,695,063.20 divided into 229,491,772 shares, each with

a par value of NOK 0.60.

NOTE 18 - OTHER CURRENT LIABILITIES

(Amounts in NOK thousands)

2022

2021

Tax withholding and social security accrual

1 230

1 131

Employee salary and holiday pay accrual

1 395

1 120

VAT payable

342

193

Lease liability

116

132

Accrued interest bond loan

17 456

-

Accrued expenses

6 607

2 781

Total

27 146

5 358

NORDIC MINING

ANNUAL REPORT 2022

CONTENT

CEO’s REPORT

OPERATIONS

BOD’s REPORT

CORPORATE GOVERNANCE

FINANCIAL STATEMENTS

45

NOTE 19 - CONVERTIBLE LOAN

In January 2022, Nordic Mining entered into a NOK 132.5 million 5% interest bearing convertible loan in

favor of Fjordavegen Holding AS, a local investor group led by two of the EPC partners for the Engebø

project. This transaction is the ﬁrst step in the project ﬁnancing of the Engebø Project.

The lenders may, and is contractually obliged to, convert all tranches from the loan, together with accrued

interests, into shares in Nordic Mining upon a share issue in Nordic Mining in relation to ﬁnal investment

decision (or delay of ﬁnal investment decision) for the Engebø Rutile and Garnet Project, however, at

latest 1 August 2023. The conversion price will as a starting point be NOK 3.355 per share, however, shall

be the lowest of NOK 3.355 and the subscription price in a subsequent share issue in Nordic Mining in

relation to ﬁnal investment decision/delay of ﬁnal investment decision, or if no such share issue occurs,

the lowest of NOK 3.355 and the volume-weighted average trading price the Nordic Mining’s share for

the last 20 trading days prior to 30 June 2023.

The convertible loan is measured at fair value with changes in fair value recognized in the income

statement. The Group has assessed the fair value of the convertible loan to be NOK 143.0 million at year

end 2022 and the recognized a fair vale loss of NOK 10.5 million in 2022. The valuation as per 31

December 2022 has been based on level 3 inputs in the fair value hierarchy.

The fair value of the convertible loan is calculated as the fair value of the loan plus the fair value of the

conversion option determined using Black Scholes option model for three (3) diﬀerent scenarios for

conversion date to provide probability weighted maturity. The key unobservable input to the valuation

include: 1) risk free NOK interest rate curve at the valuation date constructed from eﬀective yields on

Norwegian Treasury bills, 2) volatility of Nordic Mining share price calculated based on historical share

prices, and 3) expected conversion date based on managements expectation for ﬁnal investment devision.

The convertible loan with accrued interests, in total NOK 139.6 million, was converted into 232,703,125

new shares in Nordic Mining ASA on 4 March 2023, in relation to the private placement to fully fund the

Engebø Project. See note 28 for more information.

2022

Carrying

(Amounts in NOK thousands)

amount

Cash ﬂow

Convertible loan

132 500

Fees paid at inception

-

(6 089)

Change in fair value

10 476

-

Total

142 976

126 412

NOTE 20 - FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

Management of ﬁnancial risk

Nordic Mining is exposed to certain types of ﬁnancial risk related to the Group’s ﬁnancial instruments,

primarily market risk related to ﬂoating interest rate risk on cash and cash equivalents, liquidity risk and

currency risk.

Management of Nordic Mining manages the Group’s ﬁnancial risk primarily by identifying and evaluating

potential risk areas. Management’s focus is primarily on managing liquidity risk to secure continuing

operations and ﬁnancing of the Group’s capital-intensive projects. Nordic Mining’s cash holdings are

placed in bank accounts in Norwegian Kroner (NOK), United States Dollars (USD) and Euro (EUR). At year

end 2022, the Group’s main currency exposure is related to its bond loan and Bond Escrow, both wich are

denominated in USD.

The Group has at year end 2022 interest-bearing debt in the form of a bond loan and a convertible loan.

The Group does not have recurring revenues since the Group’s projects are still in the development phase.

The Group’s ﬁnancial instruments at year end 2022 mainly consist of the bond loan and Bond Escrow, a

convertible loan, bank deposits, customary short-term receivables, trade and other payables.

Liquidity risk

Liquidity risk is the risk that the Group will not be able to seꢀle its ﬁnancial obligations as they fall due.

The Group has historicalley used equity ﬁnancing in order to meet liquidity requirements related to

ﬁnancial obligations, covering operational losses, exploration activities and investments. In order to

secure ﬁnancing of the Engebø project, the Group has in 2022 issued a bond loan, and a convertible loan.

Of the Group’s ﬁnancial liabilities as at 31 December 2022 NOK 188.1 million mature within 6 months from

balance sheet date (31 December 2021: all ﬁnancial liabilities of NOK 7.0 million mature within 6 months).

At the date of these annual ﬁnancial statements the Group has secured the full project ﬁnancing package

for the Engebø Rutile and Garnet Project Project of USD 277 million, comprising equity, senior secured

bond, and non-dilutive royalty ﬁnancing. The project ﬁnancing package is expected to fund all costs and

expenditures to bring the Engebø Project into commercial production, including a contingency of USD 25

million and project reserve of USD 30 million. The bond and royalty ﬁnancing and is subject to certain

pre-disbursement conditions precedent before the proceeds can be released to the Project, including

standard conditions and utilization in full of the equity and royalty funds, respectively. The bond loan is

classiﬁed as a current liability in the statement of ﬁnancial position until satisfaction of the pre-disbursement

conditions precedent results in drawdown of the bond proceeds from the Bond Escrow account.

NORDIC MINING

ANNUAL REPORT 2022

CONTENT

CEO’s REPORT

OPERATIONS

BOD’s REPORT

CORPORATE GOVERNANCE

FINANCIAL STATEMENTS

46

Market risk

Market risk consists of the risk that real value or future cash ﬂow related to ﬁnancial instruments will

vary as a consequence of ﬂuctuation in market prices. Market risk includes, but is not limited to, currency

risk, interest rate risk and price risk from sales. Currently, the Group has no exposure to price risk from

sale of goods, and no ﬁnancial instruments have been entered into related to future expected exposures.

(i) Interest rate risk

The Group’s interest bearing debt at year end is at ﬁxed interest rates. Changes in interest rates aﬀect

the fair value of the debt. The Group will going forward calculate the sensitivity on the change in fair value

of the debt of a deﬁned parallel shiꢁ in the yield curve of the relevant curreny. The Group’s bank deposits

and the Bond Escrow are exposed to changes in the market interest rate. The Group’s exposure on the

result at year end 2022 is approximately +/-NOK 12 015 thousand per percentage-point change in the

variable market interest rate (2021: NOK 321 thousand).

(ii) Currency exchange risk

At year end 2022, the Group’s main currency exposure is related to its bond loan and Bond Escrow, both

wich are denominated in USD. A 10% increase or decrease in the USD currency rates would increase/

decrease the net income by approximately NOK 4.7 million at year end.

At year end 2021, the Group’s only currency exposure of signiﬁcance was the investment in Keliber Oy

(EUR). A 10% increase or decrease in the EUR currency rates would increase/decrease the net income by

approximately NOK 19.1 million at year end 2021.

The Group operates in an industry which is subject to extensive laws and regulations relevant for mining

operations, in particular in relation to environmental and operational issues, which has become more

stringent over time, and this development is expected to continue. Compliance with respect to environmental

regulations, closure and other maꢀers may involve signiﬁcant costs and/or other liabilities.

Failure to comply with applicable environmental laws, regulations and permiꢀing requirements may result

in enforcement actions including orders issued by regulatory or judicial authorities causing operations to

cease or be curtailed and may include obligations to take corrective measures requiring capital expenditures,

installation of additional equipment or remedial actions. There is a risk that the Group due to its engagement

in mining and mineral processing activities will be required to compensate those suﬀering loss or damage by

reason of such activities and may incur civil or criminal ﬁnes or penalties for violation of applicable laws or

regulations.

Current environmental laws, regulations and permits governing operations and activities of mining companies

may be changed. Regulatory requirements surrounding site reclamation and remediation activities, or more

stringent implementation thereof, could have a material adverse impact on the Group and cause increases in

capital expenditures or production costs or reduction in levels of operational production, or require

abandonment or delays in the development of new sites. There are no current amendments that the Group

is aware of that may impact the assets of the Group.

Nordic Mining’s climate-related ﬁnancial risk is considered to be low. The mining operations at the Group’s

main asset, the Engebø Project, is expected to have the lowest greenhouse gas footprint of all titanium

feedstock producers due to available hydroelectric power in the area and a tight infrastructure with minimal

transportation. Nordic Mining has a target of zero greenhouse gas emissions at Egnebø and has initiated the

development of a Climate Strategy Plan. The Group considers that there is minimal risk for stranded assets.

Credit risk

Credit risk is the risk of ﬁnancial losses if a customer or counterpart of a ﬁnancial instrument is unable to

meet contractual obligations.

The Group’s current business has only limited credit risk. Cash and cash equivalents and security deposits

in banks in addition to the Bond Escrow represent a large portion of the Group’s ﬁnancial assets at

31 December 2022. There has been no recognized loss on trade receivables in 2022 or 2021.

Procedures for evaluation of credit risk has only to a limited degree been introduced. However,

discretionary evaluations are done on a case-by-case basis. Management will evaluate the necessity of

implementing stricter credit evaluations on an on-going basis.

Categories and fair value of ﬁnancial instruments

The carrying amounts on the balance sheet of cash and cash equivalents, receivables, payables to

suppliers, and other short-term ﬁnancial items are close to fair value due to the short time period till

maturity. For the convertible loan the carrying amount equals fair value.

The bond loan was issued in November 2022 and it is assessed that the fair value at year end was around

the redemption price of 92% of the nominal value of USD 100 million, provided the condition of the

Engebø Project being fully funded by 9 March 2023, and assuming no signiﬁcant change in interest rate

level and credit spread since the completion of the transaction. It is further assessed that the fair value of

Bond Escrow is approximately equal to book value of USD 104.8 million.

Political risk

In addition to ﬁnancial risk, the Group is exposed to political risk related to its mining projects. The political

risk includes the risk of not obtaining or extending the relevant governmental permits necessary to extract

and produce minerals from these mining projects.

NORDIC MINING

ANNUAL REPORT 2022

CONTENT

CEO’s REPORT

OPERATIONS

BOD’s REPORT

CORPORATE GOVERNANCE

FINANCIAL STATEMENTS

47

Year ended 31 December 2022

Amortized

Fair value through

Carrying

(Amounts in NOK thousands)

cost

proﬁt or loss

amount

Financial assets by category

Trade and ﬁnancial receivables

918

Bond Escrow

1 032 597

Restricted cash

4 215

Cash and cash equivalents

164 703

Total ﬁnancial assets

1 202 433

-

1 202 433

Financial liabilities by category

Accounts payable

37 168

Bond loan

850 825

Convertible loan

-

142 976

Other current ﬁnancial liabilities

8 002

Total ﬁnancial liabilities

895 995

142 976

1 038 971

Capital management

The Group has historically used equity ﬁnancing to ﬁnance research, operations, purchase of licenses and

other investments. In order to secure ﬁnancing of the Engebø project, the Group has in 2022 issued a

bond loan and a convertible loan in addition to divesting its investment in Keliber. At the date of these

annual ﬁnancial statements the Group has fully ﬁnanced the Engebø Rutile and Garnet Project. The

project ﬁnancing comprises of equity, debt and royalty ﬁnancing. For more information on liquidity risk

see Board of Directors’ report. The ratio of net debt (debt less cash) divided by total capital (net debt and

equity) as of 31 December 2022 is 59% (as of 31 December 2021 -9%).

NOTE 21 - INVESTMENTS IN SUBSIDIARIES

The table below provides an overview of Nordic Mining ASA’s subsidiaries as at 31 December 2022:

(Amounts in NOK thousands)

Location

Year incorp.

Ownership

Nordic Rutile AS

Oslo, Norge

2006

100 %

Nordic Ocean Resources AS

Oslo, Norge

2011

100 %

Nordic Quartz AS

Oslo, Norge

2011

100 %

Year ended 31 December 2021

Amortized

Fair value through

Carrying

(Amounts in NOK thousands)

cost

proﬁt or loss

amount

Financial assets by category

Financial investments

190 519

Trade and ﬁnancial receivables

802

Cash and cash equivalents

32 086

Total ﬁnancial assets

32 888

190 519

223 407

Financial liabilities by category

Accounts payable

3 093

Other current ﬁnancial liabilities

3 901

Total ﬁnancial liabilities

6 994

-

6 994

NORDIC MINING

ANNUAL REPORT 2022

CONTENT

CEO’s REPORT

OPERATIONS

BOD’s REPORT

CORPORATE GOVERNANCE

FINANCIAL STATEMENTS

48

NOTE 22 - SHAREHOLDERS

The table below shows the Company’s 20 largest shareholders as at 31 December 2022:

Shareholder

Number of shares

% ownership

Nordnet Bank AB

21 023 753

9,05 %

Clearstream Banking S.A.

8 663 269

3,73 %

Nordea Bank Abp

5 404 701

2,33 %

Knut Fosse AS

4 870 161

2,10 %

Nordnet Livsforsikring AS

4 270 190

1,84 %

Carlsen

3 607 500

1,55 %

Danske Bank A/S

3 593 285

1,55 %

Citibank, N.A.

2 549 660

1,10 %

Naturlig Valg AS

2 300 000

0,99 %

Magil AS

2 140 000

0,92 %

Infoinvest AS

2 015 000

0,87 %

Fossum

1 759 230

0,76 %

Stavanger Forvaltning AS

1 736 913

0,75 %

Dybvad Consulting AS

1 710 000

0,74 %

Snati AS

1 700 000

0,73 %

Joma Invest AS

1 500 000

0,65 %

Melum Mølle AS

1 500 000

0,65 %

Espmart Invest AS

1 500 000

0,65 %

Huldrastølen AS

1 484 124

0,64 %

Nordenꢃeldske Management AS

1 375 000

0,59 %

Total 20 largest shareholders

74 702 786

32,16 %

Other shareholders

157 613 986

67,84 %

Total

232 316 772

100,00 %

NORDIC MINING

ANNUAL REPORT 2022

CONTENT

CEO’s REPORT

OPERATIONS

BOD’s REPORT

CORPORATE GOVERNANCE

FINANCIAL STATEMENTS

49

NOTE 23 - RELATED PARTIES AND COMPENSATION OF MANAGEMENT

Compensation to Board members and Senior Management in 2022

Board

Other

Pension

Share based

(Amounts in NOK thousands)

Salary

member fees

compensation

costs

compensation

Total

Ivar S. Fossum, CEO

2 355

-

218

389

-

2 962

Christian Gjerde, CFO

1 727

-

21

104

-

1 851

Kenneth N. Angedal, Operations Director

1 591

-

7

86

-

1 684

Mona Schanche, VP Resource and Sustainability

1 535

-

21

253

-

1 808

Maurice Kok, Commercial Director

521

-

8

40

-

568

Terje Gundersen, Project Director

1 356

-

9

88

-

1 453

Ole Klevan, Nomination Commiꢀee (Chair)

-

50

-

50

Brita Eilersen, Nomination commiꢀee

-

30

-

30

Torger Lien, Nomination commiꢀee

-

30

-

30

Kjell Roland, Chair of the Board

-

350

-

350

Kjell Sletsjøe, Deputy Chair of the Board

-

210

-

210

Eva Kaijser, Board member

-

210

-

210

Benedicte Nordang, Board member

-

210

-

210

Antony Beckmand, Board member

-

210

-

210

Total

9 085

1 300

283

959

0

11 627

1. Maurice Kok started as Commercial Director on 1 August 2022.

2. Terje Gundersen started as Project Director for Engebø on 1 February 2022.

NORDIC MINING

ANNUAL REPORT 2022

CONTENT

CEO’s REPORT

OPERATIONS

BOD’s REPORT

CORPORATE GOVERNANCE

FINANCIAL STATEMENTS

50

Compensation to Board members and Senior Management in 2021

Board

Other

Pension

Share based

(Amounts in NOK thousands)

Salary

member fees

compensation

costs

compensation

Total

Ivar S. Fossum, CEO

2 427

-

225

414

45

3 110

Christian Gjerde, CFO

1 822

28

94

131

2 075

Lars K. Grøndahl, Senior Advisor¹

1 301

-

126

222

17

1 665

Kenneth N. Angedal, Operations Director

1 635

-

7

81

17

1 740

Mona Schanche, VP Resource and Sustainability

1 572

-

28

268

17

1 886

Ole Klevan, Nomination Commiꢀee (Chair)

-

50

-

50

Brita Eilersen, Nomination commiꢀee

-

30

-

30

Torger Lien, Nomination commiꢀee

-

30

-

30

Kjell Roland, Chair of the Board

-

350

-

350

Kjell Sletsjøe, Deputy Chair of the Board

-

210

-

210

Eva Kaijser, Board member

-

210

-

210

Benedicte Nordang, Board member

-

210

-

210

Antony Beckmand, Board member

-

210

-

210

Total

8 757

1 300

414

1 079

227

11 777

1. Lars K. Grøndal leꢁ the Company on 30 June 2021.

In 2021, all employees in the Group were paid a bonus for ﬁnalization of the UDFS for the Engebø Project

under the on-year Short-Term Incentive Program. No bonuses were paid under the Short-Term Incentive

Program in 2022. Senior Management is subject to termination periods of 3-6 months.

Guidelines for management remuneration

The main components of the guidelines for Senior Management salaries are as follows:

•

The compensation package should reﬂect the responsibility and the tasks that the individual persons

in Senior Management, and that the employee contributes towards the long-term creation of value in

Nordic Mining.

•

The Company will oﬀer competitive conditions to aꢀract relevant expertise for the development of

the Company.

•

The compensation package consists of ﬁxed salary plus participation in an option program that has

been approved by the annual meeting.

•

Senior Management participates in pension and insurance plans.

These guidelines have been used to recruit Senior Management in Nordic Mining ASA and to establish

salary levels.

NORDIC MINING

ANNUAL REPORT 2022

CONTENT

CEO’s REPORT

OPERATIONS

BOD’s REPORT

CORPORATE GOVERNANCE

FINANCIAL STATEMENTS

51

Other transactions with related parties

In 2021 the Group has sold a vehicle to its Senior Advisor, Lars K. Grøndahl, for NOK 363,000, which

represented the estimated market value.

Shares owned/controlled by members of the Board and senior management

and those related to them as of 31 December 2022

Name

No of shares

% owned

Kjell Roland, Chairman of the Board

290 475

0,13 %

Kjell Sletsjøe, Board member

21 676

0,01 %

Ivar S. Fossum, CEO

1 759 230

0,76 %

Christian Gjerde, CFO

400 000

0,17 %

Kenneth N. Angedal, Operations Director

445 822

0,19 %

Mona Schanche, VP Resource and Sustainability

441 063

0,19 %

Terje Gundersen, Project Director

66 333

0,03 %

Total

3 424 599

1,47 %

NOTE 24 - PENSIONS

The Group has a deﬁned beneﬁt plan or a deﬁned contribution plan (for new employees) for its employees

in the parent company, Nordic Mining ASA and a deﬁned contribution plan for its employees in Nordic

Rutile AS. The plans meet the Norwegian statutory requirements for pension plans for employees.

Deﬁned Beneﬁt Plan

The Group has one beneﬁt plan for Norwegian employees with a total of 2 active members. The Group’s

deﬁned beneﬁt pension plan is a ﬁnal salary plan and contributions are made to a separately administered

fund. The level of beneﬁts provided depends on the member’s length of service and salary at retirement age.

Pension cost

(Amounts in NOK thousands)

2022

2021

Pension cost - employee beneﬁt

617

880

Pension cost - interest expense

24

Total pension related costs

642

904

Remeasurement gains/(losses) recorded to OCI

(1 009)

(100)

Movement in pension obligation during the year

(Amounts in NOK thousands)

2022

2021

Pension obligations January 1

15 704

14 785

Current value of pension beneﬁts for the year

642

904

Interest costs

263

222

Payments

(365)

(133)

Remeasurement loss/ (gain)

1 080

(4)

Other

81

(71)

Pension obligations as of 31 December

17 404

15 704

Shares owned/controlled by members of the Board and senior management

and those related to them as of 31 December 2021

Name

No of shares

% owned

Kjell Roland, Chairman of the Board

190 475

0,08 %

Kjell Sletsjøe, Board member

21 676

0,01 %

Eva Kaijser¹

110 472

0,05 %

Ivar S. Fossum, CEO

732 755

0,32 %

Kenneth N. Angedal, Operations Director

45 822

0,02 %

Mona Schanche, VP Resource and Sustainability

41 063

0,02 %

Total

1 142 263

0,49 %

1. The shares are owned by the the company Fågelsången AB.

NORDIC MINING

ANNUAL REPORT 2022

CONTENT

CEO’s REPORT

OPERATIONS

BOD’s REPORT

CORPORATE GOVERNANCE

FINANCIAL STATEMENTS

52

Movement in pension funds during the year

(Amounts in NOK thousands)

2022

2021

Pension funds 1 January

14 641

13 417

Expected return on plan assets

212

179

Contributions

994

1 271

Payments

(365)

(133)

Other

40

11

Remeasurement (loss)/ gain

71

(104)

Pension funds as of 31 December

15 593

14 641

Pension liability is classiﬁed in the balance sheet as follows

(Amounts in NOK thousands)

2022

2021

Pension funds

15 593

14 641

Pension obligations

(17 404)

(15 704)

Net pension asset

(1 812)

(1 062)

Pension asset/(liability) is shown in the balance sheet as

Other long-term asset

-

Pension liabilities

(1 812)

(1 062)

Assumptions

2022

2021

Discount interest rate

3,00 %

1,90 %

Annual projected increase in salary

3,50 %

2,75 %

Annual projected G- regulation

3,25 %

2,50 %

Annual projected regulation of pension

1,50 %

0,00 %

The major categories of plan assets as a percentage of the fair value of total plan assets

2022

2021

Equities

10,20 %

9,70 %

Bonds

14,60 %

19,60 %

Money market

4,20 %

10,60 %

Hold to maturity bonds

38,10 %

26,70 %

Loans and receivables

20,90 %

19,10 %

Real estate

11,00 %

13,60 %

Other

1,00 %

0,70 %

NOTE 25 - LEASES

The Group implemented IFRS 16 Leases from 1 January 2019 and recognized a right-to-use asset

related to the leasing of vehicles; see note 11. Short-term leases have been expensed as incurred; see

note 6. The Group’s oﬃce lease is cancellable with 4 months’ notice with no more than an insigniﬁcant

penalty and is as such considered a short-term lease.

Lease liability

(Amounts in NOK thousands)

2022

2021

Lease liability 1 January

245

373

Additions lease contracts

-

Accretion lease liability, included in ﬁnance cost

22

28

Payments of lease liability

(151)

(156)

Total lease liability 31 December

116

245

Speciﬁcation of lease liability in the balance sheet

(Amounts in NOK thousands)

2022

2021

Current *

116

132

Non-current

-

113

Total lease liability 31 December

116

245

* Current lease liability is included in other current liabilities; see note 16.

Future minimum lease payments under non-cancellable lease agreements (undiscounted)

(Amounts in NOK thousands)

2022

2021

Within a year

725

744

From year 2-5

-

132

Total

725

876

NORDIC MINING

ANNUAL REPORT 2022

CONTENT

CEO’s REPORT

OPERATIONS

BOD’s REPORT

CORPORATE GOVERNANCE

FINANCIAL STATEMENTS

53

NOTE 26 - PAYMENTS TO AND FROM GOVERNMENTAL INSTITUTIONS

In accordance with the Accounting Act, section 3-3d, the Group has assessed its relations with and

payments to and from governmental institutions. The Group‘s governmental relations are only with

institutions in Norway. All relations and payments are in the ordinary course of business and related to i.a.

license payments, payment of prospectus/ﬁnancial authority fees, R&D projects grants, tax refund, etc.

Estimated total payment from the Group to various Norwegian governmental institutions was NOK 0.6

million in 2022 (2021: NOK 0.2 million). Estimated total payment to the Group from various Norwegian

governmental institutions was NOK 0.0 million in 2022 (2021: NOK 1.2 million).

NOTE 28 - EVENTS AFTER BALANCE SHEET DATE

In January 2023 Nordic Rutile AS entered into a globally exclusive oꢄake agreement for the full planned

garnet production from Engebø for the ﬁrst 5 years of production. The oꢄake agreement is for the

supply and delivery of minimum total of 762,500 metric tonnes of garnet concentrate in the 5-year

contract period, up to a total of 785,000 metric tonnes, which is the full planned garnet production the

ﬁrst 5-years. The consideration will be based on a pre-agreed price schedule for the 5-year period. Nordic

Rutile has through this oꢄake agreement secured, together with the rutile oꢄake agreements

announced earlier, commiꢀed sales for up to the full production of both rutile and garnet from Engebø for

the ﬁrst 5 years of production, all with highly reputable buyers. In addition to materially de-risk the

market side, Nordic Rutile will with the three oꢄake agreements in place satisfy the oꢄake related

conditions in the company’s ﬁnancing agreements. The oꢄake agreements are inter alia subject to

certain conditions precedent.

In February 2023 Nordic Rutile AS has signed binding agreements with a fund managed by Orion Resource

Partners for USD 55 million investment in the Engebø Rutile and Garnet Project. The investment

comprises a USD 50 million non-dilutive royalty ﬁnancing to Nordic Rutile AS and USD 5 million in equity,

which will be contributed to Nordic Mining ASA. The royalty instrument is secured, subordinate to the

USD 100 million senior secured bond issued on 9 November 2022, subject to the terms of an Intercreditor

Agreement.

In March 2023 the Company raised NOK 940 million in gross proceeds in a private placement through the

allocation of 1,566,666,667 new shares, at a subscription price of NOK 0.60 per share. The new capital

subscribed is, together with other sources of commiꢀed equity, debt, and other ﬁnancing, expected to

fully ﬁnance the Engebø Project up to start of production.

Following the subscription mentioned above the Company’s convertible loan was converted. The convertible

loan with accrued interests, in total NOK 139.6 million was converted at the same subscription price as in

the private placement referred to above, i.e. NOK 0.60 per share.

In April 2023, the Company completed a subsequent oﬀering of 136,544,091 shares of in total

216,666,667 shares available in the oﬀering at the same subscription price as the private placement of

NOK 0.60 per share.

In April 2023 the Supreme Court’s appeals commiꢀee concluded that the appeal by AMR will be heard

before the Supreme Court, tentatively scheduled to take place before the summer 2023.

NOTE 27 - COMMITMENTS AND CONTINGENCIES

Conditional liability Engebø

The Group has a conditional liability to the seller of the mining rights in the Engebø area of NOK 40 million

that will be paid if and when commercial operation commences at Engebø. No liability has been recognized

as per 31 December 2022.

In October 2021 the Oslo District Court has ruled in favour of the subsidiary Nordic Rutile in the court

case against Artic Mineral Resources (AMR). The ruling conﬁrms that Nordic Rutile’s extraction rights are

valid and that the company has the right to extract and - within the limits of the Norwegian Mining’s Act

- utilize garnet and all other minerals on the Vevring side of the Engebø deposit. AMR appealed the ruling.

The Borgarting Court of Appeal ruled in October 2022 in favour of the subsidiary, Nordic Rutile.

The ruling received conﬁrms that Nordic Rutile has exclusive right to all minerals in the Engebø deposit -

within the limits of the Norwegian Mining Act - in line with the operating licence granted by the Ministry

of Trade, Industry and Fisheries in May 2022. The court ruled that AMR shall pay all legal expenses.

AMR appealed the verdict to the Supreme Court in November 2022. In April 2023 the Supreme Court’s

appeals commiꢀee concluded that the appeal by AMR will be heard before the Supreme Court, tentatively

scheduled to take place before the summer

2023.

NORDIC MINING

ANNUAL REPORT 2022

CONTENT

CEO’s REPORT

OPERATIONS

BOD’s REPORT

CORPORATE GOVERNANCE

FINANCIAL STATEMENTS

70

Nordic Mining ASA

Munkedamsveien 45 A

NO-0250 Oslo

Norway

Tel: +47 22 94 77 90

Email: post@nordicmining.com

www.nordicmining.com