Endomines hit the Gold Room and the stock went out – now aiming for the military industry, says CEO

Mining company Endomines Reported the new mineral reserve estimates on Friday, and the positive news got the investors in Hurmos. The Endomines share was confirmed on Friday about 17.4 percent.

According to a news release published by the company, Korvilannuo, the southern part of the Karelian Gold Line, contains about 2.7 million tonnes of any mineral reserves with a gold content of 1.58 grams of gold. There are 138,800 ounces in total.

The gold content of about one gram per tonne can be considered economically profitable.

Gold findings sound good, but in practice there is still a distance to the riches. Endomines CEO Kari Vyhtinen However, according to the company, the company has progressed in the right direction.

The aim of Endomines is to launch production on the southern gold line in five years, and by then the target gold reserve will be around 600,000 ounces. This means that in practice it would be gold for ten years of production, which, according to Vyhtinen, is generally considered to be a reasonable amount of production to start production. Currently, Endomines have 270,000 ounces on the southern gold line, which means about four and a half years of production.

“We still need to find more, but we’re really good on the way. In the last two years, we have found about 200,000 ounces more gold reserves in the area. We have found more every year to ensure that the company is taken to another size, ”Vyhtinen assures.

Mineral reserve estimates are usually made annually, according to which Endomines have reported on new concentrations.

According to Vyhtinen, if everything goes according to plan, current production will be 5-7 times by 2030, ie the production of 14,300 ounces will move to 70,000-100,000 annual production. About 60,000 ounce of production would come from the southern gold line and the rest of the other destinations. The Vyhtinen estimates that the necessary permits will be obtained by 2028, and construction can be started at that time.

If production increases as planned, it also means that Endomines’ turnover 5-7 times in five years. The turnover of 2024 was EUR 28.7 million, which would have a turnover of EUR 143.5-200.9 million. In addition to gold, revenue from other products of Endomines accumulates.

Because the use of gold deposits is needed either to buy land or to pay compensation to landowners, costs will also increase as more discoveries are made. According to Vyhtinen, the costs increase roughly at the same pace with net sales. This would mean that in five years the operating profit of EUR 2.6 million last year would be 5-7 times higher, or about EUR 13-18.2 million. The price development of gold can affect the actual result.

The do not see as an opportunity that gold will not be found in future estimates. According to Vyhtinen, Endomines have hundreds, if not thousands of soil samples that contain gold and thus indicate that gold in the rock.

“We believe that the likelihood that we will be able to grow on the gold line on the planned schedule, is very high, about 80-90 percent,” says Vyhtinen.

Also targeted by the military industry

In addition to gold, another interesting attention to the Endomines mineral reserve evaluation update is, for example, the Vungsten in the military industry. Currently, the largest Volfarm producer is China, and Russia is also at the forefront of major producers.

Geopolitical tightening has increased the prices of Volfram. For example, China’s response to the US President Donald Trump The customs duties set up was to limit Volframic exports.

“In a couple of years, the importance of the Volfram will be much higher and more important and we will invest a lot. We are thinking that it will be made into our strategy, ”says Vyhtinen.

According to Vyhtinen, Endomines preliminary estimates that its volphicial production could in the future be 0.5-2 % of the world’s entire volphicial production.

During the spring, Endomines intends to seek the position of the EU critical mineral producer. It would allow, among other things, faster permit processes. It is also possible that a volphram in need of a volphram would participate in the investment and thereby speed up production.

According to Vyhtinen, the Endomines risk profile is now much lower than before, although there are still risks. As the biggest risks, Vyhtinen mentions, for example, the difficulty of predictability, currency risks, gold price volatility, and the risk that the company’s goals do not proceed on schedule.