Endomines Half-Year Report 1 Jan 2026-30 Jun 2026: Endomines' best half year result in history - net result of MEUR 10.4 exceeded the full-year result for 2025

Endomines Finland Plc – Stock Exchange Release, Half-Year Report – 13/8/2026, at 10.00 EEST

Endomines Half-Year Report 1 Jan 2026–30 Jun 2026: Endomines’ best half year result in history – net result of MEUR 10.4 exceeded the full-year result for 2025

This release is a summary of Endomines Finland Plc's Half-Year Report for the period January-June 2026. The full report is attached to the release and available on our website at https://endomines.com/en/for-investors/reports-and-presentations/.

Q2 2026 in brief

• The Group revenue increased by 46.1% and was MEUR 16.2 (MEUR 11.1)
• The Group EBITDA was MEUR 5.5 (MEUR 4.0), or 34.0% of revenue (36.0%)
• The Pampalo production segment EBITDA was MEUR 7.8 (MEUR 5.3), or 48.5% of revenue (47.6%)
• The Group operating result was MEUR 3.8 (MEUR 2.9), or 23.5% of revenue (26.6%)
• The Group net result was MEUR 3.3 (MEUR 0.8), or 20.3% of revenue (7.5%)
• Earnings per share (basic) was EUR 0.1 per share (EUR 0.0 per share)
• Operating cash flow before investments was MEUR 2.5 (MEUR 3.6)
• Gold production in Q2 increased by 9.7% from the comparison period and was 4,737 ounces (4,319 ounces), or 147.3 kg (134.3 kg)

H1 2026 in brief

• The Group revenue increased by 61.2% and was MEUR 34.7 (MEUR 21.5)
• The Group EBITDA was MEUR 14.3 (MEUR 7.7), or 41.2% of revenue (35.6%)
• The Pampalo production segment EBITDA was MEUR 19.5 (MEUR 10.0), or 56.2% of revenue (46.7%)
• The Group operating result was MEUR 11.1 (MEUR 5.4), or 32.0% of revenue (25.3%)
• The Group net result was MEUR 10.4 (MEUR 2.3), or 29.9% of revenue (10.6%)
• Earnings per share (basic) was EUR 0.3 per share (EUR 0.1 per share)
• Operating cash flow before investments was MEUR 11.2 (MEUR 5.1)
• Gold production in H1 increased by 9.7% from the comparison period and was 9,692 ounces (8,832 ounces), or 301.5 kg (274.7 kg)

CEO’s Review

I am very pleased with our strong performance in the first half of the year. We delivered an excellent financial result and achieved several strategically important milestones on our Golden Journey. Revenue for January-June increased by an impressive 61.2% and amounted to EUR 34.7 million. The Group EBITDA rose to 41.2% of revenue. Operating result was EUR 11.1 million, or 32.0% of revenue. The Group net result developed very strongly and increased to EUR 10.4 million, or 29.9% of revenue. Net result was approximately 4.5 times higher than in the first half of the previous year, exceeding the full-year result for the previous year.

The effects of the mining business acquisition completed in 2025 are now clearly visible in our operations. Production reliability has improved significantly, creating a strong foundation for both production growth and the long-term development of operations. Production volume in the second quarter increased by 9.7% year-on-year. Production growth was slowed by the replacement of the jaw crusher at the crushing plant in May. However, this investment further improves our operational reliability for the future. In June, we again achieved a new monthly production record.

We are clearly a growth company, and significant growth requires a strong financial foundation. In June, we received a EUR 1.51 million funding decision from the Eastern Finland Economic Development Centre and the EU for our tungsten project. In addition, we refinanced our EUR 12 million financing package on significantly improved terms and increased its total amount to EUR 21 million. Our operating net cash flow in H1 was MEUR 11.2, and most of our financing package remains unused. The equity ratio increased to 69.2% in June (31 Dec 2025: 61.5%). Our financial position provides us with stability and the opportunity to implement our growth strategy in a controlled and flexible manner.

In addition to our strong operational performance, the market environment supported our earnings during the review period. The average gold price in January–June was USD 4,697 per ounce (USD 3,072 per ounce). The conflict in the Middle East had a significant impact on market interest rate expectations and was reflected in the development of the gold price. However, there have been no material changes in the long-term drivers of gold. High indebtedness, the growing amount of money, substantial central bank gold purchases, geopolitical uncertainty and increasingly tense relations between major powers continue to support gold demand and a high price level over the longer term. We view the long-term outlook for gold as positive. This view is supported by several consensus forecasts, which anticipate further increases in the gold price towards the end of 2026.

Alongside our financial achievements, we received the Finland’s Most Inspiring Workplaces recognition in the spring. I am particularly pleased with this recognition, as I strongly believe that committed and motivated professionals are our company’s most important asset. A thriving work community is reflected not only in our daily work but also in our results. My goal is for our culture to continue to be safe, approachable, fair and open, and to provide our people with an environment where they enjoy working and can develop.

One of the most significant achievements in the first half of 2026 was the exceptionally promising drilling results in the Ukko deposit area. High-grade gold intersections of up to 50 metres are of top quality, and comparable results have not previously been achieved on the Karelian Gold Line. Our original objective was to drill approximately 5,000 metres in the Ukko area in early summer 2025 and then move on to other targets. However, the campaign has now continued for more than a year, and approximately 27,000 metres had been drilled by the end of June 2026. Our significant investment in the area reflects our strong belief in the potential and scale of the deposit.

In 2026, we will drill a total of approximately 50,000 metres of pure exploration drilling, placing us among the leading exploration companies in Finland – in our view, we are the largest explorer in Finland this year. Over the previous three years, we drilled a total of approximately 52,500 metres, as a result of which our gold resources have more than tripled from 199,100 ounces to 619,600 ounces. We are therefore drilling almost as much in one year as during the previous three years combined. I look forward with great interest to this year’s drilling results, a significant part of which will focus on the Ukko deposit area. Our target is to commence production at Ukko around 2030 and to increase the Company’s annual gold production to 70,000–100,000 ounces.

After the review period, Endomines published the first drilling results for tungsten and molybdenum from the Southern Gold Line. The results support our strategy to expand our business into critical minerals and show promising tungsten and molybdenum potential in the region. In addition, the tungsten pre-enrichment experiments yielded encouraging results at an early stage. We will continue our exploration and development work with the aim of strengthening the commercial potential of the project and the quality of the products. Our long-term goal is to build an entity on the Southern Gold Line that supports tungsten production in addition to gold production, in which molybdenum serves as a sellable by-product and strengthens the economic profitability of the project.

Sustainability is always at the core of our operations. At the end of June, our LTIF improved to 9.7. In H1, we unfortunately had one accident resulting in absence. Any accident is too many, and safety remains our highest operational priority. We will continue our determined efforts towards our goal of zero accidents. Endomines’ long-term target is to achieve fossil-free gold production on the Karelian Gold Line by 2035. The CO2 emission intensity of gold production decreased by approximately 70% in H1 compared with the comparison period. Total emissions (Scope 1 and 2) also decreased by nearly 70%, even though our gold production increased. The most significant factor enabling the emission reductions was the transition to renewable hydroelectric power. To enhance water management, a real-time water and load balance monitoring system is being built at Pampalo. Once completed, it will enable more accurate monitoring, forecasting and reporting of the water fractions in the water cycle. In addition, we are launching a pilot project at Pampalo to test new water treatment technology. The objective of the project is to improve the efficiency of water management and ensure water purity. Finland's nature and waterways are irreplaceable.

Overall, 2026 has progressed excellently and in line with our plans. We have strengthened our operational performance, improved our profitability and created a solid foundation for future growth. Our strengthened financial position enables us to implement our strategy rapidly and on a larger scale.

Our goal is to build Endomines into a significant Finnish mining company that our employees can be proud of and that, through its own example, moves the industry towards a more responsible and sustainable future.

I would like to thank all our employees for their excellent work, which has enabled strong growth and good profit development. Everyone's contribution is important so that we can make determined progress towards our goals.

I would also like to thank our shareholders and stakeholders for their trust, support and commitment. We continue our Golden Journey with determination and build the next phase of growth together.

Kari Vyhtinen 
CEO 
Endomines Finland Plc 

Group’s key figures

Key figures	Unit	Q2 2026	Q2 2025	Change, %	H1 2026	H1 2025	Change, %	FY 2025
Revenue and profitability
Revenue	MEUR	16.2	11.1	46.1	34.7	21.5	61.2	45.5
Pampalo production revenue	MEUR	16.2	11.1	46.1	34.7	21.5	61.2	45.5
% of revenue	%	100.0	100.0	–	100.0	100.0	–	100.0
Operating expenses	MEUR	-10.7	-7.1	50.0	-20.5	-13.9	47.0	-29.3
EBITDA	MEUR	5.5	4.0	38.0	14.3	7.7	86.4	16.3
% of revenue	%	34.0	36.0	–	41.2	35.6	–	35.9
Pampalo production EBITDA	MEUR	7.8	5.3	48.7	19.5	10.0	94.0	21.8
% of revenue	%	48.5	47.6	–	56.2	46.7	–	47.8
Depreciation and impairment losses	MEUR	-1.7	-1.0	63.2	-3.2	-2.2	43.6	-8.7
Operating result	MEUR	3.8	2.9	29.1	11.1	5.4	103.8	7.6
% of revenue	%	23.5	26.6	–	32.0	25.3	–	16.7
Net result	MEUR	3.3	0.8	296.8	10.4	2.3	356.0	7.3
% of revenue	%	20.3	7.5	–	29.9	10.6	–	16.1
Earnings per share, basic	EUR	0.1	0.0	246.7	0.3	0.1	305.2	0.2
Balance sheet
Net gearing	%	10.1	28.8	–	10.1	28.8	–	17.4
Equity ratio	%	69.2	54.3	–	69.2	54.3	–	61.5
Operational key figures
Cash cost in Pampalo, excl. investments and change in inventory	EUR/ounce	-1,642	-1,334	23.1	-1,588	-1,285	23.6	-1,436
Gold production	ounces	4,737	4,319	9.7	9,692	8,832	9.7	16,630

^* Earnings per share for the comparison periods has been adjusted due to the share split executed in April 2026.

Q2 2026 

The Group revenue in Q2 increased by 46.1% and was MEUR 16.2 (MEUR 11.1). 100% of the Group revenue consists of revenue from the Pampalo production segment. Revenue growth was attributable to a 9.7% increase in gold production volume and the high market price of gold, which was on average 37.6% higher than in the comparison period. The Group EBITDA increased by 38.0% and was MEUR 5.5 (MEUR 4.0). The Pampalo production segment EBITDA was MEUR 7.8 (MEUR 5.3), or 48.5% of revenue (47.6%). 

The change in inventories of finished goods and work in progress decreased EBITDA by MEUR -0.7 (MEUR 0.0). The amount used for materials, supplies and services during the review period amounted to MEUR 5.4 (MEUR 4.7). Personnel expenses increased mainly due to the increase in the number of personnel and amounted to MEUR 2.6 (MEUR 1.5). Mining mineral tax in Q2 was MEUR 0.5 (MEUR 0.1), and it is recognised in other operating expenses.

The Group operating result increased by 29.1% and was MEUR 3.8 (MEUR 2.9). The Group net result increased by 296.8% and was MEUR 3.3 (MEUR 0.8), and the earnings per share (basic) increased to EUR 0.1 (EUR 0.0). 

H1 2026

The Group revenue during the review period increased by 61.2 % and was MEUR 34.7 (MEUR 21.5). The Group revenue consists 100% of revenue from the Pampalo production segment. Revenue growth was attributable to a 9.7 % increase in gold production volume and the high market price of gold, which was on average 52.9 % higher than in the comparison period. The Group EBITDA increased by 86.4% and was MEUR 14.3 (MEUR 7.7). The Pampalo production segment EBITDA was MEUR 19.5 (MEUR 10.0), or 56.2% of revenue (46.7%).

The change in inventories of finished goods and work in progress improved EBITDA by MEUR 0.8 (MEUR 0.2). The amount used for materials, supplies and services during the review period amounted to MEUR 11.9 (MEUR 9.7). Personnel expenses increased mainly due to the increase in the number of personnel and amounted to MEUR 4.6 (MEUR 2.6).

Profitability was burdened by a total of approximately MEUR 1.3 in non-recurring expenses included in other operating expenses. Of these, MEUR 0.9 related to fees and other closing entries associated with the sale of three gold deposits located in Idaho, United States. The sale was agreed in November 2025 and completed during the first quarter of the year. Other non-recurring items in other operating expenses totalled MEUR 0.4. Mining mineral tax in January–June was MEUR 1.0 (MEUR 0.2), and it is recognised in other operating expenses.

The Group operating result increased by 103.8% and was MEUR 11.1 (MEUR 5.4). The Group net result increased by 356.0% and was MEUR 10.4 (MEUR 2.3), and the earnings per share (basic) increased to EUR 0.3 (EUR 0.1).

Significant events after the end of the reporting period

• 30 July 2026 Based on Endomines Finland Plc’s latest drilling results, the known strike length of the UKKO deposit discovered at Ukkolanvaara has expanded to 650 metres. The drilling program carried out during 2026 has further strengthened the view that the area hosts a gold-rich and thick gold deposit close to surface. The results indicate that the gold mineralization remains open both along strike and at depth. The UKKO deposit, discovered in 2025, has become the primary focus of Endomines’ exploration activities. During 2026, a total of 70 drill holes, with a combined length of 16,499 metres, have so far been drilled at Ukkolanvaara. Drilling activities are ongoing, and assay results are still pending for 20 drill holes. Endomines is targeting completion of the maiden Mineral Resource Estimate for Ukkolanvaara by late 2026 or early 2027.
• 11 August 2026 Endomines Finland Plc reported the first results of the tungsten and molybdenum drilling program as well as the tungsten analysis results of the drilling carried out at the Southern Gold Line in 2023 and 2024. The results confirmed the potential of the Southern Gold Line as a source of critical raw materials. At the same time, they show that there are promising conditions for tungsten enrichment. The drilling program is still ongoing, and the company is still waiting for the analysis results of 13 drill holes.

Balance sheet and cash flow

At the end of June, total of the balance sheet amounted to MEUR 102.4 (31 Dec 2025: MEUR 92.3). The Group cash and cash equivalents amounted to MEUR 4.8 (31 Dec 2025: MEUR 3.9; 31 Mar 2026: MEUR 9.4). Compared with the end of March, cash and cash equivalents decreased due to an early payment of the final instalment of MEUR 1.9 for the Power Mining business acquisition, a MEUR 1.5 cash deposit collateral and a non-recurring expense of MEUR 0.2 relating to the new financing arrangement.

Interest-bearing liabilities amounted to MEUR 12.0 (31 Dec 2025: MEUR 13.7; 31 Mar 2026: MEUR 13.9). The amount of interest-bearing liabilities decreased due to the conversion of convertible loans into shares. Net gearing was 10.1 % (31 Dec 2025: 17.4%; 31 Mar 2026: 6.8%). The equity ratio was 69.2% (31 Dec 2025: 61.5%).

Operating net cash flow before investments in Q2 was MEUR 2.5 (MEUR 3.6). Net cash flow from investments was MEUR -7.0 (MEUR -2.6). Cash flow from investments included the early payment of MEUR -1.9 related to the final instalments of the Power Mining business acquisition, as well as the first grant instalment of MEUR +0.5 received from the Centre for Economic Development, Transport and the Environment for Eastern Finland and the EU for the tungsten project.

In H1 net operating cash flow before investments was EUR 11.2 million (EUR 5.1 million). Net cash flow from investing activities was EUR -10.0 million (EUR -6.8 million), which also included the first instalment of the gold deposits sold by Endomines Idaho LLC of EUR +1.9 million.

Financing

In June, Endomines received a funding decision of up to EUR 1.51 million by Economic Development Centre of Eastern Finland and the EU for the producer of critical minerals project. The grant will be received in instalments against reported costs and is estimated to be received between June 2026 and September 2028. The first instalment of approximately MEUR 0.5 was received in the second quarter of the year.

In June 2026, Endomines signed an agreement with Pohjois-Karjalan Osuuspankki on a new long-term financing package up to 21 million euros. The agreed package refinances the financing package of 12 million euros that was agreed upon in April 2025, of which the company has utilized approximately 5 million euros to date.

The agreement includes two separate secured loans of 5 million euros each. One of the loans was drawn to replace the previously drawn loan under the earlier financing package. The term of this loan is three years, while the term of the second loan is five years. Additionally, the company has increased its overdraft facility to 4 million euros and agreed on a bank guarantee limit of 5 million euros, which can be used, among other things, for environmental guarantees. Approximately MEUR 2.8 of this was drawn during the review period. A MEUR 1.5 cash deposit collateral was paid against the guarantee. The package also includes other financing limits and instruments to be determined at a later stage, totaling 2 million euros.

Guidance for the financial year 2026

The company reiterates its previous guidance and estimates gold production to increase by 10–20% compared to the previous year. In 2025, Endomines produced 16,630 ounces, or 517.2 kg of gold.

Webcast

A live webcast for analysts, investors, and the media will take place on August 13, 2026, at 14.00. The event will be held in English. Participation in the event at: https://endomines.events.inderes.com/h1-2026/register A recording of the webcast will be available later on the company's website at https://endomines.com/en/for-investors/reports-and-presentations/

Further information

Kari Vyhtinen
CEO, Endomines Finland Oyj
kari.vyhtinen@endomines.com
+358 40 585 0050

Minna Karttunen
CFO
Endomines Finland Plc
minna.karttunen@endomines.com
+358 40 513 3225 

Endomines Finland Plc is a Finnish forerunner in sustainable mining. Our mining operations in Pampalo, Ilomantsi region, focus on gold mining and processing, as well as exploration in the Karelian Gold Line, in Eastern Finland. We produce gold for the jewellery and electronics industries and create value by transforming natural resources into wealth, an investment that withstands the volatility of global politics. Our vision is to grow the Karelian Gold Line into a significant, sustainable gold-producing region. Endomines is listed on the main list of OMX Helsinki (PAMPALO). www.endomines.com.  

Half-Year Report H1 2026.pdf https://attachment.news.eu.nasdaq.com/ad56e669b69596a9ed6d3300467bc767c