Q2 2026 Gruvaktiebolaget Viscaria Earnings Call Transcript
Key Points
- All permits have gained full legal force, marking a major milestone and transitioning the project from planning to implementation.
- The mineral resource estimate was upgraded to 108 million tonnes at 0.9% copper, with a 16% increase in tonnage and 18% increase in contained copper, demonstrating strong growth.
- Exploration drilling continues to deliver positive results, with six new drill holes in the D zone all confirming extensions to mineralization, including high-grade intersections like 8 meters at 1.8% copper.
- The company has secured a 45-megawatt grid agreement with Vattenfall, ensuring power supply for operations.
- The water treatment plant is on schedule for completion by October 1, enabling dewatering to commence, and is being executed on time and within budget.
- Strong investor support is evident, with major shareholders providing an additional SEK400 million in shareholder loans, and the company has received positive feedback from international banks during financing market soundings.
- The project benefits from a strategic location in Kiruna, with access to skilled labor, existing infrastructure, and proximity to the iron ore line, reducing execution risks.
- The company has a clear plan for cost-efficient conversion drilling from underground starting in 2028, which will save significant time and costs compared to surface drilling.
- The company reported a higher net loss of SEK22 million for the quarter, driven by increased operating costs and interest expenses on shareholder loans.
- Cash flow from operations was negative at SEK42 million, reflecting ongoing investment activities and the transition to construction phase.
- The project remains heavily dependent on securing full financing, with no definitive agreements announced yet, and the process is still ongoing.
- There is uncertainty regarding the conversion of inferred resources to higher confidence categories, which is critical for the extended mine plan.
- The company faces potential risks from the broader market sentiment in northern Sweden, as highlighted by the Northvolt bankruptcy, although management downplays its direct impact.
- Exploration results are still pending for several district-scale targets, and the company has not yet confirmed the economic viability of these new discoveries.
- The project's timeline for first blast is set for September/October next year, which may be subject to delays due to dewatering and rehabilitation work.
- The company is not currently factoring in potential by-products like gold and silver into its economic calculations, which could limit upside potential.
(audio in progress) In Kiruna, it's here where everything starts. Every day, new drill cores come up here. We drilled 24/7 and had done so since May 2020 and have today an impressive amount of more than 200,000 meters drilled, a unique number for a company of our site in the international mining industry.
This has indeed been a milestone quarter for Viskaria. Of course, the main cornerstone was with all permits gaining full legal force on April 16. Follow-up by that, we released our first research statement and also a resource upgrade on May 8 where we confirmed higher copper grades, increased tonnage and an impressive growth potential. We have now gone from planning to full implementation.
The organisation continues to grow, and we also have impressive new additions to our Board in the form of Lars Cicero and Mark Johnson. And even if Mark has been introduced to you before, I think it's well noted to remind you that he is the Chief Operating Officer of one of the world's largest copper mines, Grasberg in
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