Financial development
Second Quarter, 1 April – 30 June 2025
· Sales amounted to SEK 0 million (0)
· Earnings after tax amounted to SEK -5.9 million (-4.0)
· Investments amounted to SEK 18.7 million (0.3) during the period
· Earnings per share before amounted to -0.09 SEK (-0.10)

First Half-Year, 1 January – 30 June 2025
· Sales amounted to SEK 0 million (0)
· Earnings after tax amounted to SEK -11.9 million (-7.0)
· Investments amounted to SEK 26.7 million (0.6) during the period
· Earnings per share before amounted to -0.18 SEK (-0.19)
· Cash and cash equivalents amounted to SEK 77.8 million (118.5) on June 30, 2025.
 
Significant events during the second quarter 2025
· Nordic Iron is entering a new phase and is changing its brand name to Nordic Iron, along with a new visual identity, to clarify its ambition as a modern mining company and its position in the value chain for fossil-free steel.
· As part of the company’s ongoing development, Nordic Iron is relocating to new, larger, and improved premises at Jägarnäsvägen 22 in Ludvika. The move is a direct result of the company’s growth during 2024 and the first half of 2025, characterized by both an increased workforce and the handling of thousands of meters of new drill cores for analysis.
· In the Q1 report, Nordic Iron announced the decision to pause project financing for the Blötberget mine development in order to conduct a strategic review of the project. This review has identified several significant opportunities to enhance both the design and operational approach of the planned mine. These improvements are expected to significantly improve the project’s overall profit-ability while also substantially reducing its environmental footprint. In parallel with the strategic review, ongoing exploration activities have led to several promising discoveries of magnetite and hematite mineralizations. The Company believes these findings increase the likelihood of an improved mineral resource estimate for the project. As a result, the definitive feasibility study led by WSP has been revised into a preliminary feasibility study, with the aim of integrating these enhancements into the Blötberget project. The Company believes this will establish a much stronger foundation for future project financing.
· The Annual General Meeting elected Bengt Nilsson, Tomas Olofsson, Gösta Bergman, Tobias Hansson, Anders Bengtsson, Pierre Heeroma and Leon Davies as members of the Board of Directors for the period until the end of the next Annual General Meeting. Furthermore, it was resolved to elect Bengt Nilsson as Chairman of the Board.
 
CEO comments
Continued Studies and Exploration
During the second quarter, a strategic review of the project was carried out, identifying several significant opportunities for improvement – both in the mine design and in operational practices. These improvements are expected not only to have a positive impact on the project’s profitability but also to substantially reduce the mine’s environmental footprint. As a result, it was decided that the Definitive Feasibility Study (DFS) led by WSP would be restructured into a Pre-Feasibility Study (PFS), with the aim of integrating these improvements into the studies for Blötberget. In parallel, exploration continued, and during the spring the Company made several promising discoveries of magnetite and hematite mineralisation, particularly at greater depths. This led to an expansion of the exploration programme, with the objective of increasing the likelihood of an upward revision to the mineral resource estimate for Blötberget.

A change now being planned concerns the mining method, which is expected to provide opportunities both to increase annual production and to raise the proportion of extractable ore (mineral reserve) from the mineral resource. The revised method is based on fully utilising the tailings as backfill in the mine – a solution that would also eliminate the need for a surface tailings storage facility (TSF). This would represent a significant cost saving and provide substantial environmental benefits in the vicinity of the mine. Water usage is also being reviewed. The objective is to establish an almost closed-loop water circuit, which would both reduce the Company’s water treatment costs and eliminate discharges to nearby watercourses, as well as potentially avoiding the need to dewater the old mine, at least initially.

Overall, the review highlights several opportunities to improve the project’s profitability, primarily through cost savings in the development phase, and to reduce its environmental impact. Consequently, the DFS was converted into a PFS during the second quarter in order to assess the potential benefits of the identified opportunities. WSP continues to lead the work together with the Company and the consultants and suppliers already engaged. Work on the PFS was fully established during the second quarter. According to the current schedule, the PFS will be completed before year-end, although the timeline may be affected by the results of exploration drilling and geotechnical investigations.

The aim of the exploration activities and the drilling campaigns initiated in late autumn 2024 is to increase the mineral resources by 35 million tonnes or more – a significant increase if achieved. Drilling during the spring returned good, and in some cases very good, mineralisation results, particularly a depth, while certain shallower sections merely confirmed previous models and assumptions. The programme was therefore expanded during the second quarter, with additional drilling focused on connecting previously known, shallower mineralisations with the newly identified deeper mineralisation zones.

The drilling has not yet been completed, but preliminary results from the third-quarter drilling indicate that the mineralisation at depth does not fully maintain the same width, thickness, and continuity as nearer surface. The current indication is therefore that the increase in mineral resources has not yet reached 35 million tonnes for Blötberget, but exploration continues in adjacent areas at depth.

The Company is also continuing to evaluate the potential for producing a saleable by-product with high concentrations of phosphorus and rare earth elements (REEs). Analyses and testing are ongoing, both on historical tailings and as part of the current exploration programme. It is too early to assess both how this could be technically realised and the potential impact it may have on the project’s economics. These opportunities have therefore been excluded from the Pre-Feasibility Study (PFS) and the upcoming updated mineral resource estimate. Instead, this will be addressed in a separate technical report in accordance with JORC.

An important activity initiated in the third quarter is, together with environmental experts and legal advisors, to analyse the operational changes and environmental improvements resulting from the revised mining plan. Dialogue has been initiated with the relevant authorities on how best to address these changes within the framework of existing permits. The ambition is to establish clarity on permitting matters during the year, in conjunction with the presentation of the PFS results.

Market conditions, after the turbulence at the start of the year, have stabilised somewhat. At the same time, the iron ore price has shown a slight downward trend throughout the second quarter, while the USD exchange rate has remained relatively stable. The European steel industry continues to face challenges, affecting some of the planned transition projects towards more climate-friendly production in the region. Although we expect that, when production commences, we will be facing a market characterised by a shortage of high-grade iron ore products and higher price levels than today, the current market sentiment is not favourable for potential financing discussions. The assessment remains that improved project economics through cost reductions, as well as increased mineral resources and mineral reserves, is a prerequisite for successful future project financing.

Despite the challenges, the Company remains committed to its vision of becoming a recognised supplier in the high-grade iron ore product segment and delivering strong long-term returns to you, our shareholders.

Ronne Hamerslag
Verkställande Direktör
Nordic Iron Ore AB (publ)