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Endomines Annual Report 2025
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Annual Report
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ENDOMINES
20
25
Annual report
Index
Introduction
CEO's Review
Strategy 2025-2029
Board of Directors' Report 2025
- Significant events during the financial year
- Five year outlook
- Significant events after the balance sheet date
- Comments on financials
- Board's proposal for profit distribution
- Sustainability
- Corporate governance
- Personnel
- Endomines Group
- Number of shares
- Guidance for 2026
- Alternative performance measures
Consolidated Financial Statements and Notes 2025, IFRS
- Consolidated Income Statement
- Consolidated Balance Sheet
- Consolidated Cash Flow Statement
- Consolidated Statement of Changes in Equity
- Notes to the Consolidated Financial Statements
Parent Company's Financial Statements and Notes 2025, FAS
- Parent Company's Income Statement
- Parent Company's Balance sheet
- Parent Company's Cash Flow Statement
- Notes to the Parent Company's Financial Statements
Signatures on the Board of Directors' Report and Financial Statements
Auditor's Report
Introduction
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We are a Finnish pioneer in sustainable mining
Endomines is a Finnish gold production and exploration company. Our operations are located in North Karelia, where we own the Pampalo and Hosko mining areas in Ilomantsi. We mine gold ore from our mines and process it at our production plant located in Pampalo. Our exploration activities focus on the Karelian Gold Line, which runs through the municipality of Ilomantsi. In addition, we own the rights to four gold deposits in the United States.
Our operations on the Karelian Gold Line
Alongside gold production, our business is based on utilising the known gold resources of the Karelian Gold Line and identifying new gold deposits. The gold potential and existing resources of the Karelian Gold Line form the foundation for our long-term growth.
Our goal is also to expand our operations into critical minerals that can strengthen the role of both Endomines and Finland as producers of responsibly sourced raw materials. In January 2026, we applied for EU Strategic Project status for our Southern Gold Line mining project.
We aim for significant growth
Our objective is to substantially increase gold production in the coming years. We are planning to build a new production facility in the southern part of the Karelian Gold Line, the Southern Gold Line, around 2030. The project would increase our production approximately fivefold, drive further investment into North Karelia, and multiply the employment impact in the region.
Responsibility and local presence guide our operations
Responsibility is a core part of Endomines' identity. As a pioneer in sustainable mining, we take into account the impacts of our operations on the environment, people, and local livelihoods. Local presence is important to us – we work closely with regional companies and communities and promote the development and wellbeing of our surrounding area.
The cornerstones of our operations include employee safety and wellbeing, environmental and water protection, and good and ethical governance. We can succeed only by meeting the expectations of the environment and our stakeholders and by acting as a frontrunner in responsible mining.
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Our Vision
Our vision is to develop the Karelia Gold Line into one of the world's leading regions for responsible gold production. We aim to build Endomines into a Finnish success story that our employees, partners and the people of Finland can be proud of.
Our Values
| ### Safety
The safety of every Endomines employee is our top priority. We do not compromise on it under any circumstances. | ### Humanity
Everyone is free to be themselves. We foster a warm, open and encouraging atmosphere where colleagues support one another, and where everyone has the opportunity to influence their work and how it is organized. |
| --- | --- |
| ### Openness
We value transparency—both within the company and in our communication with external stakeholders. We believe that clear communication and active feedback strengthen our business. | ### Fairness
We operate as a low-hierarchy, agile and non-bureaucratic organization. Fairness, mutual respect, collaboration and shared goals guide us. We always help a colleague in need. |
CEO's Review
The year 2025 was extraordinary and, in many ways, a turning point both for the global economy and for Endomines. Geopolitical uncertainty and heightened tensions between major powers were strongly reflected in the commodities markets, particularly in the price of gold. The gold price rose from just over USD 2,600 per ounce at the beginning of the year to above USD 4,300 per ounce by year-end. The average price for the full year was USD 3,436 per ounce (comparison period: USD 2,402).
The upward trend continued in early 2026. However, March 2026 has been an exceptionally volatile month for gold. The price started the month very strong, but movements have been sharp and rapid, driven by geopolitics, oil shocks, a stronger U.S. dollar, profit-taking, and shifting expectations for central bank policy. The general view seems to be that the fundamentals have not changed and continue to support the gold price in the long term. However, the uncertainty in the Middle East makes short-term forecasting extremely difficult.
The best year in Endomines' history
High gold price and strong operational performance were clearly reflected in our 2025 results. This was the best year in Endomines' history.
- Revenue increased by 59% to MEUR 45.5 (MEUR 28.7)
- EBITDA grew by 182% to MEUR 16.3 (MEUR 5.8), representing 36% of revenue (20%)
- Net profit was MEUR 7.3 (MEUR 0.3), or 16% of revenue (1%)
The result includes approximately MEUR 6.5 in non-recurring costs related to U.S. operations, as well as approximately MEUR 4.1 in deferred tax assets. In addition, we strengthened the structure of our balance sheet, and
our net gearing ratio reduced to 17% (32%). I am extremely satisfied with the overall outcome and the company's operational development.
Strategy execution progressed as planned
In 2025, we increased our gold production by 16.3% compared to 2024. We strengthened the foundations for future growth by acquiring the underground mining business of Power Mining Oy at Pampalo in the autumn. The acquisition is estimated to support the achievement of production growth targets well into the future.
In exploration, we achieved significant breakthroughs. The discovery of the Ukko gold deposit on the Southern Gold Line was the most significant achievement of the year, and results from Kartitsa on the Northern Gold Line were also highly encouraging.
In addition, in early 2026 we submitted an application to the European Union for Strategic Project status for the Southern Gold Line tungsten, molybdenum and gold project. Our goal is to commence production in the area around 2030. The planned expansion would increase our gold production from the current 16,630 ounces to 70,000–100,000 ounces, while also enabling the production in Finland of tungsten, a critical raw material for the defense industry, and molybdenum, an important raw material for the steel industry.
Structural streamlining in the United States
In November 2025, we agreed on the sale of three deposits in Idaho. The transaction clarifies our strategy, lightens our cost structure and frees up resources for the development of the Karelian Gold Line. The majority of the U.S. operational costs were related to the assets that were sold. Following the transaction, we retain four deposits in the United States,
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two in Idaho and two in Montana. During negotiations, we identified particularly strong potential in the Montana assets: Kearsarge offers the possibility of a large-scale gold operation, and the nearby US Grant historical resource contains, in addition to gold, approximately 4.5 million ounces of silver. The recent sharp increase in silver prices significantly enhances the attractiveness of the US Grant deposit.
We have initiated an evaluation of strategic alternatives for the remaining U.S. assets, but our strategic focus remains clear — we are focusing on Finland.
Sustainability guides all our operations
Sustainability is a core part of Endomines' identity. We focus particularly on water management, people, and stakeholder cooperation. We want to ensure that our operations do not deteriorate water quality, and that we are a safe, fair and motivating workplace. We succeed only if we meet the expectations of the environment and our stakeholders and act as a role model for responsible mining.
I want us to build mining operations that every one of our employees can be proud of — while at the same time transforming the industry toward a more sustainable future.
New records expected in 2026
We are entering the new year from a strong starting position. We expect significant growth in 2026: our gold production is estimated to increase by 10–20% compared to 2025. We believe that the mining business acquisition completed last year will both strengthen our production reliability and improve our ability to plan operations with a longer-term perspective — thereby supporting our growth.
As for gold price, we are entering the year from a historically high level, and the outlook for the year 2026 is exceptionally strong. In addition, the divestment of our U.S. assets simplified our structure and will improve our financial performance through lower costs.
Our exploration targets for 2026 are ambitious: in addition to production-related drilling, we aim for approximately 50,000 metres of drilling in total. This is more than double the amount Endomines has ever completed before. During the year, we also expect exploration results related to tungsten and molybdenum along the gold line. We look forward to seeing the full results of the 2026 drilling programme.
Thanks for our shared success – together toward the next phase
I would like to thank all our employees for their excellent work. At the same time, I thank our shareholders, partners and stakeholders for the commitment that has made our progress possible.
We have achieved our initial targets, and our golden journey continues steadily forward toward the objective defined in our strategy.
Kari Vyhtinen
CEO
Endomines Finland Plc
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Strategy 2025–2029
Our strategy aims to establish a clear pathway for transforming the company into a significantly larger-scale operation. Our ambition is to develop the Karelian Gold Line into a globally significant and responsibly operated gold production area. We are investing strongly in the future and acting as a local partner in the Ilomantsi region, working closely with our stakeholders.
- Pampalo production is the engine of our operations and future growth
Our gold production area is located in Pampalo, Ilomantsi, which sits at the heart of the Karelian Gold Line—an optimal location for our business. The Pampalo processing plant has unused production capacity, enabling year-on-year growth in output.
- Exploration enables long-term growth in production levels
Active exploration along the Karelian Gold Line and the expansion of our gold resources are essential to securing the company's long-term growth. Thanks to our extensive exploration rights, our position along the Karelian Gold Line is strong.
- Financial stability supports our growth phase
Sustainable financing solutions form a key pillar of our operations as we transition toward becoming a larger-scale company.
- Responsibility is the backbone of everything we do
We aim to be a forerunner in setting sustainability targets and implementing concrete actions to achieve them.
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Board of Directors' Report 2025
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Board of Directors' Report 2025
Endomines is a Finnish mining company focused on gold production and exploration. Endomines has gold production in an underground mine and an open pit in Pampalo and Hosko, as well as exploration on the Karelian gold line. Endomines' goal is to grow the Karelian gold line into one of the world's most significant and responsible gold production areas.
Significant events during the financial year
Production in Pampalo
During 2025, Pampalo gold production has seen significant growth compared to 2024. According to the company's guidance, production was expected to be between 16,000 and 22,000 ounces (497.7 kg - 684.3 kg). Full-year 2025 production increased by 16.3% compared to 2024 and was 517.2 kg, or 16,630 ounces of gold. In 2024, Endomines produced 444.9 kg, or 14,304 ounces of gold.
Exploration of the Karelian gold line
We achieved significant breakthroughs in exploration. The discovery of the Ukko deposit on the Southern Gold Line was the most important achievement of the year, but the results from Kartitsa on the Northern Gold Line were also very significant. In addition, in early 2026, we submitted an application to the European Union for strategic project status for the Southern Gold Line tungsten, molybdenum and gold project. The licensing process for the Southern Gold Line started in January 2024, and our goal is to start production around 2030. The expansion aims to increase gold production from the current 16,630 ounces to 70,000–100,000 ounces, while also enabling the production of tungsten, a critical defense raw material, and molybdenum, a raw material for the steel industry, in Finland.
Structural clarification in the United States
In November 2025, we agreed on the sale of three deposits in Idaho. The transaction clarifies our strategy, lightens our cost structure and frees up resources for the development of the Karelian Gold Line. The majority of the U.S. operational costs were related to the assets that were sold. Following the transaction, we retain four deposits in the United States, two in Idaho and two in Montana. During negotiations, we identified particularly strong potential in the Montana assets: Kearsarge offers the possibility of a large-scale gold operation, and the nearby US Grant historical resource contains, in addition to gold, approximately 4.5 million ounces of silver. The recent sharp increase in silver prices significantly enhances the attractiveness of the US Grant deposit.
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We have initiated an evaluation of strategic alternatives for the remaining U.S. assets, but our strategic focus remains clear — we are focusing on Finland.
Operational environment and business risks
Changes in the gold price and the exchange rate of the US dollar (USD) have a direct impact on Endomines' revenue, financial performance, and cash flow, and their development is monitored closely. Uncertainty and significant gold purchases by central banks supported the gold price positively in 2025. In 2025, the average gold price was USD 3,426 per ounce (comparison period: USD 2,402 per ounce). In January 2026, the gold price exceeded USD 5,000 per ounce for the first time. Geopolitical uncertainty had a significant impact on market developments in 2025 and increased the unpredictability of the market environment. Currently, markets widely expect geopolitical uncertainty and central bank gold purchases to continue in 2026. Consequently, the outlook for the gold market is exceptionally strong, and the average gold price in 2026 is expected to be significantly higher than in 2025.
The development of the US dollar exchange rate has a significant effect on Endomines' financial result. Gold sales are conducted in US dollars, while the costs of production operations in Finland are incurred mainly in euros. In addition, changes in exchange rates affect the valuation of expenses and balance sheet items related to deposits located in the United States. The Company uses conservative price and currency assumptions in its internal planning and, as part of the financing package signed on 30 April 2025, has agreed on preparedness to enter into currency hedging arrangements.
The weakening of the US dollar against the euro had a negative impact on Endomines' result in 2025. In 2025, EUR 2.1 million of foreign exchange losses were recorded in financial items related to foreign exchange rate changes on short-term loans between the parent company and the US subsidiary. On 19 November 2025, Endomines announced that it would sell its three gold deposits located in Idaho, which is expected to reduce the impact of exchange rate fluctuations on the Company's result in the future.
Endomines' operations in Finland are regulated by mining and environmental legislation, which sets requirements for permitting processes, environmental protection, and mine aftercare and closure. Permitting processes may be lengthy, and stringent environmental requirements related to regulation may result in cost impacts over the life cycle of operations. In addition, the continuity of operations is influenced by the attitudes of local communities toward mining activities ("social license to operate"); open dialogue and cooperation with stakeholders support the acceptability of operations and help manage
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expectations directed at the Company. However, Finland provides a politically stable and predictable operating environment, which supports long-term mining operations.
The Company's cost environment is particularly affected by energy and taxation, both of which have a direct impact on EBITDA. In 2025, Endomines paid MEUR 0.3 in mining mineral tax and MEUR 0.04 in electricity tax. As of the beginning of 2026, the value-based royalty on metal ores will be increased, as a result of which the amount of mining mineral tax is expected to increase substantially and may rise to approximately EUR 2 million in 2026.
In connection with the approval of amendments to the Mining Mineral Tax Act, Parliament has required that the Government commence preparation of the hybrid model proposed by the Finnish Mining Association (Kaivosteollisuus ry), so that the model could be implemented as early as the beginning of 2027. Under the hybrid model, only part of the tax would burden EBITDA, while part would be recorded below operating profit. As of the beginning of 2026, the excise duty on electricity will increase to the higher tax category; however, the beneficiation of mining minerals will continue to fall under the lower electricity tax category II. Electricity consumption at the Pampalo concentrator is measured separately from other operations. The change is estimated to reduce the result for the 2026 financial year by approximately MEUR 0.2.
In connection with an acquisition completed in 2006, Endomines entered into a production-volume-based royalty agreement covering claims located in the Ilomantsi area and the Pampalo production area. The royalty obligation begins to materialize once the production threshold specified in the agreement is exceeded. The production threshold is expected to be exceeded during spring 2026. The royalty amounts to 1% of sales after the production threshold has been exceeded, and the maximum royalty liability is MEUR 1.5.
The exploration permit holder shall pay annual compensation, or exploration fee, to the owners of land included in the exploration area. In 2025 Endomines paid exploration fees approximately in total of MEUR 0.4 (MEUR 0.3).
Five year outlook
| Key figures | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Production | |||||
| Ore, tonnes | 266,603 | 225,703 | 212,892 | 132,806 | 4,950 |
| Gold grade, g/t | 2.3 | 2.3 | 2.2 | 2.4 | 2.9 |
| Gold recovery, % | 85.8 | 85.2 | 83.0 | 83.0 | 84.0 |
| Utilization, % | 79.1 | 70.0 | 68.0 | 43.0 | 55.5 |
| Gold production, kg | 517.2 | 444.9 | 397.8 | 267.5 | 14.3 |
| Gold production, oz | 16,630 | 14,304 | 12,790 | 8,601 | 460 |
| Group financials | |||||
| Change in revenue, % | 59 | 46 | 46 | 100 | -100 |
| EBITDA, % | 36 | 20 | -3 | -47 | - |
| Operating result, % | 17 | 9 | -15 | -109 | - |
| Net result, % | 16 | 1 | -27 | -130 | - |
| Equity ratio, % | 61 | 54 | 55 | 66 | 55 |
| Gearing, % | 17 | 32 | 46 | 19 | 55 |
| Return on equity, % | 15 | 1 | -15 | -53 | -82 |
| Average number of employees | 69 | 55 | 45 | 42 | 53 |
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Significant events after the balance sheet date
On 5 January, 2026, Endomines announced the operational update for January–December 2025. Gold production increased by 16.3% compared to 2024
On 13 January, 2026, Endomines announced the appointment of Minna Karttunen as new Chief Financial Officer starting February 2, 2026
On 16 January, 2026, Endomines announced that it had submitted an EU strategic project status application for the Southern Gold Line tungsten, molybdenum, and gold project
On 23 January, 2026, Endomines announced the conversion of a convertible loan into shares. As a result of the conversion, 21,976 new shares of Endomines Finland Oyj will be registered and issued. The total number of Endomines shares and votes will increase from 11,971,344 shares and votes to 11,993,320 shares and votes. After registration, the new shares represent approximately 0.18 percent of the total number of shares and votes of the company
On 27 January, 2026, Endomines announced the shareholders' nomination committee's proposals for the 2026 Annual General Meeting. The shareholders' nomination committee proposes the re-election of the current board members Jukka-Pekka Joensuu, Kyösti Kakkonen, Markus Ekberg, Eeva Ruokonen, and Jukka Jokela for a new term of office
On 3 February, 2026, Endomines announced the conversion of a convertible loan into shares. As a result of the conversion, 14,650 new Endomines Finland Plc shares will be registered and issued. The total number of shares and votes in Endomines increases from 11,993,320 shares and votes to 12,007,970 shares and votes. After registration, the new shares correspond to approximately 0.12 per cent of the company's total number of shares and votes
On 25 February, 2026, Endomines announced the conversion of convertible bonds into shares. As a result of the conversions, 90,770 new Endomines Finland Oyj shares will be registered and issued. The total number of Endomines shares and votes will increase from 12,007,970 shares and votes to 12,098,740 shares and votes. After registration, the new shares will represent approximately 0.75 percent of the company's total number of shares and votes.
Comments on financials
Group's key figures
| Key figures | Unit | 1.1.–31.12.2025 | 1.1.–31.12.2024 |
|---|---|---|---|
| Revenue | MEUR | 45.5 | 28.7 |
| Pampalo production revenue* | MEUR | 45.5 | 28.7 |
| % of revenue* | % | 100% | 100% |
| Operating expenses | MEUR | -29.3 | -22.9 |
| EBITDA * | MEUR | 16.3 | 5.8 |
| Pampalo production EBITDA* | MEUR | 21.8 | 10.3 |
| % of revenue* | % | 48% | 36% |
| Depreciation and impairment losses | MEUR | -8.7 | -3.2 |
| Operating result* | MEUR | 7.6 | 2.6 |
| Net result | MEUR | 7.3 | 0.3 |
| Net gearing ratio* | % | 17% | 32% |
| Equity ratio* | % | 61% | 54% |
| Earnings per share | EUR | 0.7 | 0.0 |
| Cash Cost in Pampalo, excl. Investments* | EUR/oz | 1,432 | 1,281 |
*alternative performance measure
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The group's revenue increased by 59% and was MEUR 45.5 (MEUR 28.7). 100% of the group's revenue consists of the revenue from the Pampalo production segment. The increase in revenue is a result of the increase of 16.3% in production volumes and the high market price of gold. The group's EBITDA increased by 182% and was MEUR 16.3 (MEUR 5.8). The EBITDA of the Pampalo production segment was MEUR 21.8 (MEUR 10.3), or 48% of the revenue (36%).
The group's operating result increased by 192% and was MEUR 7.6 (MEUR 2.6). The group's net result increased by 2,346% and was MEUR 7.3 (MEUR 0.3).
In November 2025, Endomines signed an agreement to sell three gold deposits in Idaho, USA. The assets and liabilities included in the agreement are classified as held for sale according to IFRS 5 standard, and a write-down of MEUR 3.9 has been booked in depreciations and impairment losses in profit and loss. The fair values by asset classes are presented in note 7 of the Financial Statements Release. Non-recurring advisory and legal fees and other costs relating to the sale amount to about MEUR 0.5. The result was also impacted by changes in the EUR/USD exchange rate, leading to foreign exchange losses of MEUR 2.1 (MEUR 0.3 MEUR) due to the translation of Endomines Idaho LLC's balance sheet items. In total, the non-recurring and translation related costs of USA operations and sale of the Idaho deposits amount to about MEUR 6.5.
Additionally, Endomines' result is burdened by non-recurring advisory and legal fees and transaction costs for the financing arrangement agreed on April 30, 2025, totalling approximately MEUR 0.3. In addition, non-recurring costs arose also from legal fees related to Power Mining Oy's business acquisition.
The amount of the mining mineral tax in the other operating costs in profit and loss is MEUR 0.3 (MEUR 0.3).
In 2025 Endomines paid exploration fees approximately in total of MEUR 0.4 (MEUR 0.3).
A deferred tax asset arising from previous years' losses has been recognized for the first time in the financial statements as of 31 December 2025. The effect of the change in group's net result is MEUR 4.1.
The Group's earnings per share increased to EUR 0.7 (EUR 0.0).
Pampalo production forms the basis of Endomines' business, and measures are being taken continuously to increase production levels. The acquisition of Power Mining Oy's Pampalo mining business, completed in September 2025, is expected to improve production reliability and achieve growth targets. The unit cost per ounce produced in 2025 (excluding investments) was EUR 1,432 per ounce (EUR 1,281 per ounce). The increase in unit cost was due to the extraction of lower gold grade ore in the open pit mine and the costs related to the takeover of the underground mining business. The costs related to the takeover were mainly allocated to 2025 and these costs are not expected to have a significant impact on the production costs in 2026.
The financial position of the group
At the end of December, the Group's cash and cash equivalents were MEUR 3.9 (MEUR 2.1). At the end of December, interest-bearing net liabilities were MEUR 9.9 (MEUR 13.2), net gearing was 17% (32%) and equity ratio was 61% (54%). The amount of interest-bearing net liabilities was affected by the conversion of convertible loans into shares.
Operating cash flow before investments was MEUR 13.1 (MEUR 6.1). The development was influenced by significantly higher net sales and operational efficiency compared to the comparison period.
Endomines invested a total of MEUR 18.3 in 2025, mainly in measures related to increasing production at Pampalo and Hosko and in ore exploration.
Financing arrangement
During the financial year, Endomines has agreed on a new long-term financing facility, consisting of a secured loan of up to MEUR 8.0, an overdraft facility of MEUR 3.0, and bank guarantee and financing facilities, the total amount of which is up to MEUR 1.0. The total amount of the financing facility is up to MEUR 12.0, of which the unused portion at the end of the financial year was MEUR 7.0.
On 31 December 2025, MEUR 5.0 of the secured loan related to the financing facility was drawn down. The principal of the loan is due for payment on 15 December 2028. The total interest on the loan consists of a margin and a 12-month Euribor rate. The total interest rate during the financial year has been 10%. The secured loan is subject to covenants, if the thresholds are exceeded, the lenders may demand immediate repayment of the loans. The covenants relate to the ratio of interest-bearing debt to operating cash flow and the equity ratio. Endomines has fulfilled the covenants related to financing during and at the end of the reporting period.
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Convertible loans
On 22 January, 2025, Endomines agreed on a MEUR 2.3 convertible loan with the company's largest shareholders. The maturity of the convertible loans is 24 months, with an annual interest rate of 10%. Under the agreement, the convertible loans can be converted wholly or partially into the company's shares no earlier than 12 months from the date of the loan disbursement. The conversion price is fixed at €7.51 and is based on the average share closing price in December 2024, reduced by 5.5%.
During 2025, Endomines received conversion notifications related to convertible loans, based on which a total of EUR 9,894,115.05 was converted into new Endomines Finland Oyj shares. As a result of the conversion, 1,141,315 new Endomines Finland Oyj shares were registered and issued. The total number of Endomines shares and votes increased from 10,830,029 shares and votes to 11,971,344 shares and votes. After registration, the new shares represented approximately 9.5 percent of the company's total shares and votes.
The company has not had other issuances during financial year 2025.
Board's proposal for profit distribution
The Board of Directors proposes that the result of EUR -7,796,252.33 for the financial year ending on 31 December 2025 shall be transferred to retained earnings. No dividend shall be paid.
Sustainability
Endomines conducts its business with a focus on the key areas of its sustainability program. The updated program, released at the end of 2024, includes long-term sustainability goals along with supporting metrics, which progress is reported semi-annually. Based on a double-materiality analysis in accordance with the European Union's Corporate Sustainability Reporting Directive (CSRD), the main objectives and actions of the sustainability program focus on reducing climate and water impacts, supporting biodiversity, ensuring employee safety and well-being, maintaining trust of local communities and adhering to good governance practices. In 2025, Endomines refined its sustainability roadmap for the coming years and started the implementation of the renewed program.
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Sustainability objectives, indicators, and performance
Environment
Climate
Endomines' long-term goal is fossil-free gold production on the Karelian Gold Line by 2035. Progress towards this goal is measured by the carbon dioxide emissions (Scope 1 and 2) generated per gold ounce. Key actions for achieving the objective include improving energy efficiency and shifting to renewable energy sources.
The 2025 emissions calculation was carried out in accordance with the widely used Greenhouse Gas Protocol (GHG Protocol), improving the coverage and accuracy of the calculation. Due to methodological updates, emissions data from previous years are not comparable with the 2025 calculations. The 2025 emissions calculations will serve as the baseline year for the climate transition plan to be prepared in 2026. The transition plan will define the actions needed to achieve long-term climate objectives. The company decided to switch to using 100% renewable electricity starting from early 2026.
CO2 emissions t/oz gold produced
| tCO2e/oz | Scope 1 & 2 | Q1 | Q2 | Q3 | Q4 | Weighted average |
|---|---|---|---|---|---|---|
| 2025 | Market-based | 0.74* | 0.71* | 0.65 | 0.88 | 0.74 |
| 2024 | Market-based | 0.78 ** | 0.67 ** | 0.55 ** | 0.91 ** | 0.72 ** |
The previously reported emission-intensity figures for the first and second quarters of 2025 have been recalculated using the GHG Protocol-compliant methodology. The methodological changes are described in detail in the 2025 Sustainability Report, which will be published in March 2026.
*Due to the changes made to the calculation methodology, the 2024 emission data is not comparable with the 2025 calculations.
Water
Endomines' sustainability program sets the goal to ensure that discharged water is clean and does not degrade the condition or ecosystems of the receiving water bodies. Water impacts are minimized through efficient water treatment and by maintaining a closed loop for process water. This reduces the need to take in additional water from outside the mining area, decreasing the volume of water discharged as well as the load of harmful substances released into water bodies.
In 2025, the process-water recycling rate remained at the target level of 100%. Additionally, management of seepage water at the Pampalo tailings area was improved, and preliminary design work began for a biochip reactor intended for nitrogen removal.
Process water recycling rate (%)
| Use of recycled water | Q1 | Q2 | Q3 | Q4 |
|---|---|---|---|---|
| 2025 | 100% | 100% | 100% | 100% |
| 2024 | 100% | 100% | 100% | 100% |
Biodiversity
Endomines promotes biodiversity by considering nature values at all stages of operations, from exploration to mine closure. The objective is to maintain up-to-date closure plans for active mines and to continuously restore decommissioned areas to support biodiversity. In 2025, efforts focused on updating the closure plan for the Pampalo mine. Additionally, nature surveys were conducted as part of the environmental impact assessment (EIA) for the Southern Gold Line project. In 2026, the goal is to continue nature surveys and to further refine the target-setting and roadmap for advancing biodiversity efforts.
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People
Occupational safety
Endomines aims for zero workplace accidents. Lost Time Incident (LTI) and Total Recordable Incident Frequency (TRIF) are continuously monitored, and employees are encouraged to report safety observations. All accidents and near misses are investigated, root causes are analyzed, and corrective actions are implemented.
In 2025, there were six workplace accidents across Endomines' operations, three of which led to absence. Five of the accidents involved contractor personnel and one involved a company employee. The frequency of accidents leading to absence was halved compared to the end of the previous year, reaching a level of 10.1. A total of 1,169 safety observations were recorded and observation numbers increased by 72% from the previous year. The number and coverage of safety walks by supervisors also increased significantly.
Accident frequency LTI and TRIF (rolling 12 months), group level
| Q1 | Q2 | Q3 | Q4 | |||||
|---|---|---|---|---|---|---|---|---|
| LTI | TRIF | LTI | TRIF | LTI | TRIF | LTI | TRIF | |
| 2025 | 15.6 | 19.9 | 19.1 | 23.3 | 18.3 | 30.2 | 10.1 | 20.9 |
| 2024 | 26.4 | 33.8 | 24.4 | 32.8 | 11.8 | 15.6 | 19.7 | 29.2 |
LTI (Lost Time Incident Frequency) = Lost-time incidents per 1,000,000 working hours. Includes own staff and contractors.
TRIF (Total Recordable Incident Frequency) = All recordable incidents per 1,000,000 working hours. Includes own staff and contractors.
During the year, work-risk assessments and work instructions were updated to reflect current operations and safety requirements. Safety culture improved in a positive direction, as confirmed by an external consultant assessment. The safety theme for 2025 was chemical safety. Related activities included training, instruction updates, revised risk assessments, and practical improvements to the safe handling of chemicals. Rescue drills were conducted in the Pampalo underground mine in May and November, simulating hazardous situations and practicing coordination and communication during emergencies. The company's occupational safety committee met quarterly. Additional safety-development meetings were held with key contractors working at the mine site.
Employee well-being
Endomines strives to be a desirable workplace where everyone can be themselves and develop their skills. Employee satisfaction is measured annually, with actions taken to enhance well-being and improve working conditions.
The survey conducted in early 2025 showed positive progress in employee satisfaction at Endomines. Clear improvements were noted across all measured areas compared to the previous year, especially in employer image as well as in the management and operational culture. Areas for development included enhancing inter-departmental collaboration, frontline management, and working conditions. To address these, internal communication has been intensified and diversified, leadership training has been initiated, and better tools and equipment have been procured.
Stakeholder co-operation
Endomines aims to maintain and further strengthen the trust of local communities in its operations. The company seeks to achieve this through open communication and regular engagement with key stakeholders. Local welfare is supported by hiring local personnel, using local services, supporting local entities and projects, and promoting recreational use of nature. In 2025, Endomines' purchases from companies operating in North Karelia totaled approximately EUR 7.4 million (incl. VAT). The company supported local well-being and nature-recreation projects with approximately EUR 23,000.
Information and discussion events were organized in April and September 2025 at the Lehtovaara community center, where the company shared updates on current operations and progress on the Southern Gold Line development project. In August 2025, an open-house event was held in Pampalo, giving local residents the opportunity to learn about operations on-site. The company also continued active communication online through its website and social media channels. In early 2026, a new local cooperation group will be launched, bringing together representatives from key stakeholder groups.
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Corporate governance
Endomines' goal is to ensure efficient, transparent, and responsible operations, considering the needs and rights of stakeholders. The company maintains an up-to-date risk management plan and oversees its practical implementation. Business operations comply with mining legislation and regulations, with transparency in decision-making. The focus of the sustainability program is to ensure ethical conduct and its continual integration into the business. The company's operations are guided by a Code of Conduct and related policies. To ensure ethical behavior, a Whistleblowing channel is maintained, allowing stakeholders to make confidential reports. In 2025, four reports were received through the channel and processed according to the defined procedure.
Annual General Meeting 2025
The Annual General Meeting of Endomines Finland Plc was held as a hybrid meeting on 13 May 2025 in Helsinki, Finland.
The AGM approved the financial statements for the financial period 1.1.2024–31.12.2024, granted discharge to the members of the Board of Directors and the CEO for the financial period and for the preparation of the financial statements, and approved the remuneration report of the company's bodies.
The AGM decided, as proposed by the Board of Directors, that the loss for the financial period 1.1.2024–31.12.2024 will be added to the retained earnings and that no dividend will be paid.
In accordance with the Shareholders' Nomination Committee's proposal, the AGM decided that the number of Board members shall be five. The members of the Board of Directors are Jukka-Pekka Joensuu, Chair of the Board; Kyösti Kakkonen, Vice Chair of the Board; Markus Ekberg, Member of the Board; Eeva Ruokonen, Member of the Board and Jukka Jokela, Member of the Board. The term of office of the Board of Directors runs until the end of the Annual General Meeting in 2026. The Annual General Meeting approved the proposals regarding the Board's remuneration.
The Annual General Meeting authorized the Board of Directors to decide on the acquisition of the company's own shares, the issuance of new shares, and the issuance of stock options and other special rights entitled to shares.
KPMG Oy Ab was elected as the auditing firm, which has announced that it will appoint APA Antti Kääräinen as the principal responsible auditor. It was decided to pay the auditor a fee based on an invoice approved by the company.
More information about the Annual General Meeting can be found at endomines.com/en/for-investors/governance/general-meeting.
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Personnel
Endomines employed 84 (2024: 54) employees at the end of December 2025, of which 53 (2024: 42) were white-collar and 31 (2024: 13) blue-collar. Salaries, pension costs and other personnel costs totaled MEUR 6.1 (2024: MEUR 4.6, 2023: MEUR 3.9). The average employee salary calculated without the board, CEO and management team was 64,442 euros in 2025 (2024: 68,253 euros).
On 17 December, 2025, Endomines Finland Plc's board of directors decided to extend the share-based incentive system for its key employees for 2026–2028.
Management Team
At the end of the financial year 2025, the management team of Endomines Finland Plc consisted of CEO Kari Vyhtinen and the following persons: Minni Lempinen, Chief Financial Officer; Ilkka Räty, Chief Operations Officer; Sampo Hirvonen, Chief Development Officer; Jani Rautio, Chief Technical Officer; Hanne Mäkelä, Chief Sustainability Officer; and Anni Turpeinen, Chief Communications Officer. More detailed information, including the management's shareholdings, is presented in a separate corporate governance statement.
Endomines Group
In addition to the parent company Endomines Finland Plc, the Endomines group consists of the subsidiaries Endomines Ltd, Endomines Idaho LLC and Kalvinit Ltd.
| Name of the company | Principal operations | Domicile | Holding, % |
|---|---|---|---|
| Endomines Ltd | Mining | Finland | 100 % |
| Endomines Idaho LLC | Mining | USA | 100 % |
| Kalvinit Ltd | Mining | Finland | 100 % |
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Number of shares
The shares of Endomines Finland Plc are listed on the main list of Nasdaq Helsinki with the ticker PAMPALO. On 31 December 2025, the total number of Endomines' shares was 11,971,344 and the share capital was MEUR 53.3. At the end of the financial year, Endomines held 5,430 of its own shares which corresponds approximately 0.05% of the number of shares and the total number of votes. Endomines has one share class. During the financial year, the weighted average number of shares was 11,191,251.
Share price development in Nasdaq Helsinki
| EUR | 1.1.-31.12.2025 |
|---|---|
| Opening price | 8.50 |
| Closing price | 28.05 |
| Highest price | 38.40 |
| Lowest price | 8.26 |
| Weighted average price | 21.30 |
10 largest shareholders on 31.12.2025
| Name | Shares | % of shares and votes |
|---|---|---|
| Joensuun Kauppa Ja Kone Oy | 2,534,552 | 21.17 |
| Mariatorp Oy | 1,618,387 | 13.52 |
| Wipunen Varainhallinta Oy | 1,618,387 | 13.52 |
| K22 Finance Oy | 480,615 | 4.01 |
| Kakkonen Kari Heikki Ilmari | 316,566 | 2.64 |
| Taloustieto Incrementum Oy | 296,683 | 2.48 |
| Hietamoor Oy | 265,744 | 2.22 |
| Eyemaker's Finland Oy | 259,611 | 2.17 |
| Elo Keskinäinen Työeläkevakuutusyhtiö | 240,000 | 2.00 |
| Vakuutusosakeyhtiö Henki-Fennia | 239,000 | 2.00 |
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Guidance for 2026
We estimate that the gold production will increase by 10–20% compared to the reference period. In 2025, Endomines produced 16,630 ounces, or 517.2 kg of gold.
Alternative performance measures
In addition to IFRS measures, Endomines presents alternative performance measures as referred to in the European Securities and Markets Authority's guidance. Alternative performance measures provide important information about Endomines' financial position, cash flows or financial performance to the company's internal and external stakeholders. Endomines' management believes that alternative performance measures that describe the performance of the business provide meaningful additional information about the development of the business to users of the financial statements. In addition, alternative performance measures are presented because they are statutory requirements under the laws governing the Board of Directors' report.
Calculation formulas for alternative performance measures
Interest-bearing net liabilities = interest-bearing liabilities – liquid cash assets
EBITDA = operating result + depreciation and impairment losses
EBITDA, % = 100 * EBITDA / revenue
Operating result = revenue + other operating income + change in the inventory of finished goods and work in progress – materials, supplies, and external services – expenses arising from employee benefits – other operating expenses – depreciation and impairment losses
Operating result, % = 100 * operating result / revenue
Net gearing ratio, % = 100 * (interest-bearing liabilities – liquid cash assets) / equity
Equity ratio, % = 100 * equity / (adjusted balance sheet total – advance payments based on work performed)
Pampalo cash cost without investments = (Pampalo production segment materials, goods and external services + Pampalo production segment employee benefit expenses + Pampalo production segment other operating expenses) / gold production in ounces for the reporting period
More information of Endomines in the separate Corporate Governance Statement 2025 and Remuneration Report 2025.
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Consolidated Financial Statements and Notes 2025, IFRS
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Consolidated Financial Statements and Notes
Consolidated Income Statement
| MEUR | Note | 2025 | 2024 |
|---|---|---|---|
| Revenue | 3 | 45.5 | 28.7 |
| Other operating income | 4 | 0.1 | 0.0 |
| Change in the inventory of finished goods and work in progress | 5 | 0.0 | -0.1 |
| Materials, supplies, and external services | 6 | -18.7 | -15.1 |
| Expenses arising from employee benefits | 7,8 | -6.1 | -4.6 |
| Other operating expenses | 9 | -4.5 | -3.1 |
| EBITDA | 16.3 | 5.8 | |
| Depreciation and impairment losses | 10 | -8.7 | -3.2 |
| Operating result | 7.6 | 2.6 | |
| Financial income | 12 | 0.7 | 1.4 |
| Financial expenses | 12 | -5.1 | -3.7 |
| Earnings before taxes | 3.2 | 0.4 | |
| Taxes | 13 | 4.1 | -0.0 |
| Profit for the period | 7.3 | 0.3 | |
| Profit for the period attributable to: | |||
| Shareholders of the parent company | 7.3 | 0.3 | |
| Basic earnings per share, EUR | 14 | 0.7 | 0.0 |
| Diluted earnings per share, EUR | 14 | 0.6 | 0.0 |
Consolidated Statement of Comprehensive Income
| MEUR | 2025 | 2024 |
|---|---|---|
| Profit for the period | 7.3 | 0.3 |
| Other comprehensive income items after taxes: | ||
| Items that may be reclassified to profit or loss in the future: | ||
| Translation differences related to a foreign unit | -2.2 | 1.2 |
| Other comprehensive income for the period, after taxes | -2.2 | 1.2 |
| Total comprehensive income for the period | 5.2 | 1.6 |
| Total comprehensive income attributable to: | ||
| Shareholders of the parent company | 5.2 | 1.6 |
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Consolidated Balance Sheet
| MEUR | Note | 2025 | 2024 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | 16 | ||
| Mineral resource exploration and evaluation expenses | 30.6 | 38.6 | |
| Other intangible assets | 1.3 | 1.6 | |
| Property, plant, and equipment | 15 | ||
| Pampalo mine | 19.2 | 13.6 | |
| Hosko mine | 3.3 | 1.8 | |
| Land and water areas | 0.3 | 0.5 | |
| Buildings and structures | 2.5 | 6.4 | |
| Machinery and equipment | 5.4 | 6.6 | |
| Other tangible assets | 0.6 | 0.1 | |
| Other non-current assets | 0.9 | 0.9 | |
| Deferred tax assets | 13 | 4.3 | – |
| Total non-current assets | 68.4 | 70.1 | |
| Current assets | |||
| Inventories | 22 | 1.1 | 0.4 |
| Accounts receivable | 23 | 7.7 | 3.1 |
| Other receivables | 23 | 0.0 | 0.0 |
| Accrued receivables | 23 | 0.2 | 0.1 |
| Cash in hand and at banks | 24 | 3.9 | 2.1 |
| Total current assets | 13.0 | 5.7 | |
| Assets held for sale | 19 | 10.9 | – |
| Total assets | 92.3 | 75.8 | |
| MEUR | Note | 2025 | 2024 |
| --- | --- | --- | --- |
| EQUITY AND LIABILITIES | |||
| Equity attributable to shareholders of the parent company | |||
| Share capital | 53.3 | 53.3 | |
| Other invested capital | 131.5 | 121.6 | |
| Translation differences | 0.9 | 3.1 | |
| Retained earnings | -136.4 | -137.1 | |
| Profit for the period | 7.3 | 0.3 | |
| Total equity attributable to shareholders of the parent company | 56.7 | 41.2 | |
| Total equity | 25 | 56.7 | 41.2 |
| Non-current liabilities | |||
| Deferred tax liabilities | 13 | – | 0.1 |
| Financial liabilities | 20 | 12.0 | 8.4 |
| Provisions | 26 | 6.8 | 7.5 |
| Total non-current liabilities | 18.9 | 16.0 | |
| Current liabilities | |||
| Financial liabilities | 20 | 1.7 | 6.9 |
| Accounts payable | 27 | 6.2 | 6.9 |
| Other liabilities | 27 | 4.1 | 1.1 |
| Accrued liabilities | 27 | 3.8 | 3.6 |
| Total current liabilities | 15.8 | 18.6 | |
| Liabilities related to assets held for sale | 19 | 0.9 | – |
| Total liabilities | 35.5 | 34.6 | |
| Total equity and liabilities | 92.3 | 75.8 |
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Consolidated Cash Flow Statement
| MEUR | Note | 2025 | 2024 |
|---|---|---|---|
| Cash flow from operating activities | |||
| Result for the period | 7.3 | 0.3 | |
| Adjustments to profit for the period: | |||
| Financial income and expenses | 12 | 6.1 | 1.5 |
| Depreciation and impairment losses | 10 | 8.7 | 3.2 |
| Unrealized exchange rate differences on intra-group items | -2.1 | 0.5 | |
| Taxes and other adjustments | 13 | -4.1 | 0.1 |
| Cash flow from operating activities before change in working capital | 15.9 | 5.5 | |
| Change in current non-interest-bearing receivables | 23 | -4.9 | -1.4 |
| Change in inventories | 22 | -0.8 | 0.1 |
| Change in current non-interest-bearing receivables | 27 | 3.4 | 2.1 |
| Change in working capital | -2.2 | 0.7 | |
| Cash flow from operating activities | 13.8 | 6.2 | |
| Interest income | 12 | 0.0 | 0.0 |
| Interest expenses | 12 | -0.7 | -0.1 |
| Financial items | -0.7 | -0.1 | |
| Paid taxes | 0.0 | 0.0 | |
| NET CASH FLOW FROM OPERATING ACTIVITIES | 13.1 | 6.2 | |
| Cash flow from investing activities | |||
| --- | --- | --- | --- |
| Investments in intangible assets | 16 | -4.3 | -3.8 |
| Investments in property, plant, and equipment | 15 | -13.2 | -6.5 |
| Business acquisitions | 18 | -0.9 | - |
| Disposals of tangible and intangible assets | 15,16 | - | 0.1 |
| NET CASH FLOW FROM INVESTING ACTIVITIES | -18.3 | -10.2 | |
| Cash flow before financing activities | -5.2 | -4.0 | |
| Cash flow from financing activities | |||
| Loan drawdowns | 20 | 7.4 | 5.0 |
| Loan repayments | 20 | -0.3 | -0.1 |
| Repayment of lease liabilities | 20 | -0.0 | -0.0 |
| NET CASH FLOW FROM FINANCING ACTIVITIES | 7.0 | 4.9 | |
| Translation differences in financial assets | -0.0 | -0.0 | |
| CHANGE IN FINANCIAL ASSETS | 1.8 | 0.9 | |
| Financial assets at the beginning of the period | 2.1 | 1.2 | |
| Financial assets at the end of the period | 24 | 3.9 | 2.1 |
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Consolidated Statement of Changes in Equity
| MEUR | Share capital | Other invested capital | Treasury shares | Translation differences | Retained earnings | Total equity |
|---|---|---|---|---|---|---|
| Equity 1 Jan 2025 | 53.3 | 121.6 | 0.0 | 3.1 | -136.8 | 41.2 |
| Comprehensive income for the period | ||||||
| Profit for the period | – | – | – | – | 7.3 | 7.3 |
| Other comprehensive income for the period | – | – | – | -2.2 | – | -2.2 |
| Total comprehensive income for the period | – | – | – | -2.2 | 7.3 | 5.2 |
| Transactions with shareholders | ||||||
| Convertible loans conversion into shares | – | 9.9 | – | – | – | 9.9 |
| Equity component separated from the convertible loan | – | – | – | – | 0.3 | 0.3 |
| Share-based payments | – | – | – | – | 0.2 | 0.2 |
| Total transactions with shareholders | – | 9.9 | – | – | 0.4 | 10.3 |
| Equity 31 Dec 2025 | 53.3 | 131.5 | 0.0 | 0.9 | -129.0 | 56.7 |
| MEUR | Share capital | Other invested capital | Treasury shares | Translation differences | Retained earnings | Total equity |
| --- | --- | --- | --- | --- | --- | --- |
| Equity 1 Jan 2024 | 53.3 | 114.3 | -0.1 | 1.8 | -137.1 | 32.3 |
| Comprehensive income for the period | ||||||
| Profit for the period | – | – | – | – | 0.3 | 0.3 |
| Other comprehensive income for the period | – | – | – | 1.2 | – | 1.2 |
| Total comprehensive income for the period | – | – | – | 1.2 | 0.3 | 1.6 |
| Transactions with shareholders | ||||||
| Convertible loans conversion into shares | – | 7.4 | – | – | – | 7.4 |
| Disposal of treasury shares | – | – | 0.0 | – | 0.0 | 0.0 |
| Total transactions with shareholders | – | 7.4 | 0.0 | – | 0.0 | 7.4 |
| Equity 31 Dec 2024 | 53.3 | 121.6 | 0.0 | 3.1 | -136.8 | 41.2 |
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Notes to the Consolidated Financial Statements
1. Accounting principles for the financial statements
Information about the company
Endomines Finland Plc (3215519-7) is a Finnish public limited company domiciled in Finland with its head office registered at Revontulenpuisto 2 C, 02100 Espoo, Finland. The shares of the company have been listed on the Nasdaq Helsinki stock exchange since 20 December 2022. Endomines Finland Plc and its subsidiaries form the Endomines Group ("Endomines" or "Group").
Endomines is a mining and exploration company. Its mining operations in Pampalo, Ilomantsi, focus on gold production and enrichment, as well as exploration along the Karelian Gold Line in Eastern Finland. Endomines produces responsible gold for the jewellery and electronics industries, creates value by turning natural resources into wealth that withstands global political fluctuations as an investment, and brings prosperity and well-being to Finland. The growth of Endomines is based on utilizing its known gold reserves along the Karelian Gold Line and confirming new gold deposits.
The consolidated financial statements of Endomines Finland Plc were approved for publication at the Board of Directors' meeting on 26 March 2026. Under the Finnish Limited Liability Companies Act, shareholders have the opportunity to approve or reject the financial statements at the General Meeting held after their publication. The General Meeting also has the right to decide to amend the financial statements. The Annual General Meeting of Endomines Finland Plc will be held on 23 April 2026. Copies of the consolidated financial statements are available at www.endomines.com.
Accounting principles
The consolidated financial statements have been prepared in accordance with the IFRS Accounting Standards, based on the standards and interpretations that were valid on 31 December 2025. The IFRS Accounting Standards refer to the standards and interpretations adopted to be applied in the Finnish Accounting Act and the regulations issued based on the Accounting Act in accordance with the procedure laid down in Regulation (EC) No 1606/2002. The notes to the consolidated financial statements also comply with the requirements of the Finnish accounting legislation and corporate legislation supplementing the IFRS Accounting Standards.
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The consolidated financial statements are presented in millions of euros (MEUR), rounded to the nearest hundred thousand euros, unless otherwise stated. Rounding differences may occur. The financial statements are based on the historical cost, except for financial assets and liabilities, which are measured at fair value. The financial statements are presented using the nature of expense method.
Endomines publishes the Board of Directors' report and the financial statements as an XHTML file complying with the European Single Electronic Format (ESEF) reporting requirements. In accordance with the ESEF requirements, the main calculations in the consolidated financial statements and the notes are marked with XBLR.
Adoption of new and revised standards
The amendments and annual improvements to IFRS standards effective from 1 January, 2025:
- Amendments to IAS 21 Effects of changes in foreign exchange rates – Lack of exchangeability (applicable for annual periods beginning on or after 1 January 2025)
The changes are not considered to have a significant impact on Endomines' consolidated financial statements.
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New and Amended Standards Applicable in Future Financial Years
Endomines has not applied the following new and amended IFRS standards at the balance sheet date, which have been issued but are not yet effective:
- Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures – Classification and Measurement of Financial Instruments (effective for financial periods beginning on or after 1 January 2026)
-
Annual Improvements to IFRS Accounting Standards—Volume 11 (effective for financial years beginning on or after 1 January 2026). Through the Annual Improvements procedure, minor and non-urgent changes to IFRS accounting standards are collected into a single entity and implemented once a year. The amendments that will enter into force on 1 January 2026 clarify the following standards:
-
IFRS 1 First Adoption of IFRS: First-Time Originator Hedge Accounting
-
IFRS 7 Financial Instruments: Disclosures – Profit or loss arising from derecognition from the balance sheet; Information on the amortizable difference between fair value and transaction price to be presented in the financial statements; Information on credit risk presented in the financial statements
- IFRS 9 Financial Instruments – Recognition of Lease Liabilities; Transaction Price
- oFRS 10 Consolidated Financial Statements – Determination of the De Facto Agent
-
IAS 7 Cash Flow Statements – Cost Consolidation
-
Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures – Contracts Referring to Electricity Dependent on Natural Conditions (effective for financial periods beginning on or after 1 January 2026)
-
Amendments to IAS 21 Effects of Changes in Foreign Exchanges: Translation to a Hyperinflationary Presentation Currency* (effective for financial years beginning on or after 1 January 2027)
-
IFRS 18 Presentation and Disclosure in Financial Statements* (effective for financial periods beginning on or after 1 January 2027)
- IFRS 19 Subsidiaries without Public Accountability: Disclosures* (effective for financial years beginning on or after 1 January 2027)
- Amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture* (voluntary application allowed, effective date deferred)
The adoption of the standards listed above is not expected to materially affect the Group's consolidated financial statements in future financial years except for the changes caused by IFRS 18, which will change the presentation of the income statement.
- Not yet endorsed for use by the European Union as of 31 December 2025
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Accounting principles for Consolidated Financial Statements
The consolidated financial statements include the parent company Endomines Finland Oyj and its subsidiaries. Subsidiaries are entities controlled by the Group. Control exists when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are consolidated from the date on which control is obtained by the Group and are deconsolidated from the date that control ceases. The consolidated financial statements as of 31 December 2025, include the parent company and the subsidiaries Endomines Oy, Endomines Idaho LLC, and Kalvinit Oy.
Intra-group shareholdings are eliminated using the acquisition method. All intra-group transactions, receivables, liabilities, and unrealized profits, as well as internal profit distribution, are eliminated in the preparation of the consolidated financial statements. Unrealized losses are not eliminated if the loss is due to impairment.
Going Concern
Endomines' consolidated financial statements have been prepared on a going concern basis.
Key Accounting Estimates and Judgments
The preparation of financial statements in accordance with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Areas of the consolidated financial statements that require significant judgment, that are complex, or that involve assumptions and estimates that are significant to the consolidated financial statements are described below.
Determination of Functional Currency
Management has exercised judgment in determining the functional currencies of the parent company and the Finnish subsidiary. The Finnish subsidiary's sales are conducted in US dollars because the price of gold is quoted in US dollars. However, the price of gold is influenced by global regulations. The parent company has euro-denominated financing and subsidiary investments. All expenses of the parent company and the Finnish subsidiaries are also denominated in euros.
Indicators point to different currencies, but currently, the euro is more relevant for the companies. The Group's management has determined that the functional currency of the parent company and the Finnish subsidiaries is the euro.
Determination of Depreciation Methods for Mines
Depreciation plans for mines are based on management's estimates of the economic life of the mines. Endomines prepares long-term production plans based on estimates of ore reserves and measured, indicated, and inferred mineral resources. Ore reserves refer to tonnes of gold ore for which a mining and extraction plan has been made. Ore reserves and mineral resources, as well as long-term production plans, are updated annually. In June 2025, the board of Endomines updated the long-term production plan for its existing mines. Due to the updated estimates in the long-term production plan, the economic life of the Pampalo mine changed. According to the updated management estimate, the economic life of the Pampalo mine is now expected to extend until the end of 2034, instead of end of 2032, as previously estimated. Endomines updated the
depreciation plan for the Pampalo mine starting from 1 January 2025, non-retroactively, in accordance with IAS 8. The updates to the lengths of the depreciation plans reduced the amount of depreciation recorded for the period 1 January 1 – 31 December 2025 by MEUR 0.2.
Sources of Uncertainty in Estimates
Environmental Restoration (Provisions)
Endomines recognizes a provision in the balance sheet when the Group has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation, and the amount can be reliably estimated. The environmental restoration provision represents management's best estimate of the costs required to restore sites where mining activities, such as excavation or extraction, have taken place and where the company has a statutory obligation to restore the site after the cessation of operations. Estimates related to the restoration provision involve the economic life of the operations, surface areas, and costs. The amount recognized as a provision is the present value of the expenses expected to be required to settle the obligation at the end of the reporting period.
Exploration and Evaluation Expenses for Mineral Resources
No depreciation is recorded for exploration and evaluation expenditures for mineral resources capitalized in the balance sheet; instead, they are tested annually for impairment. Exploration and evaluation expenditures for minerals are measured at their original acquisition cost less any impairment. The Group conducts an annual impairment test for exploration and evaluation expenditures for mineral resources. Impairment is assessed by comparing the carrying amount to the recoverable amount, which is based on management's estimate of the recoverable amount of the asset. The impairment testing of exploration
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and evaluation expenditures for mineral resources involves judgment based on management's estimates.
Deferred Taxes
The Group and its subsidiaries have incurred losses in several previous financial years, so the conditions for recognizing deferred tax assets have not been considered to be met for tax losses. The 2025 financial statements show profit for Endomines group and according to management estimate, the losses can be utilized during the following financial years. Thus, a deferred tax asset of MEUR 4.1 has been recognized for tax losses in 2025.
Endomines has recognized a deferred tax asset from temporary differences up to the amount of deferred tax liabilities arising from future events. According to management's assessment, Endomines has available tax losses and tax planning strategies to offset the deferred tax liabilities arising from temporary differences.
Climate-Related Issues in the Consolidated Financial Statements
Endomines' management assesses that climate-related issues are not yet material to the consolidated financial statements. Endomines evaluates the significance of climate-related impacts on the economic lives of tangible and intangible assets, potential additional investments, and impairment tests in future financial years. Endomines has begun preparations for reporting sustainability information in accordance with the EU Corporate Sustainability Reporting Directive (CSRD) and will assess the significance of climate-related issues on the items in the consolidated financial statements more closely in the
coming years as sustainability work progresses. Mining and exploration activities are subject to environmental risks and requirements, which Endomines duly takes into account. Endomines has an up-to-date environmental restoration plan and complies with the environmental permits granted for its operations. The requirements of the environmental permits are taken into account in Endomines' operational planning and financial forecasts.
Conversion of items denominated in foreign currency
The figures concerning the results and financial position of the Group's entities are determined in the currency of the primary economic environment in which each entity operates. The consolidated financial statements are presented in euros, which is the functional and presentation currency of the Group's parent company. The functional currency of the Finnish subsidiaries is the euro (EUR) and the functional currency of the US subsidiary is the US dollar (USD).
Foreign currency transactions are recorded in the functional currency using the exchange rate prevailing at the date of the transaction. Monetary items denominated in foreign currencies are translated into the functional currency using the exchange rates at the reporting period end date. Non-monetary items denominated in foreign currencies are measured at the exchange rate on the date of the transaction. Gains and losses arising from foreign currency transactions and the translation of monetary items are recognized in profit or loss. Exchange gains and losses on operating activities and on foreign currency receivables and liabilities are included in finance income and expenses.
The intra-group foreign currency loan between Endomines Finland Oyj and Endomines Idaho LLC is considered a net investment in a foreign operation, and thus, exchange gains and losses arising from the translation of the item are recognized in the translation differences through other comprehensive income. The accumulated exchange differences are presented as a separate item in equity until the foreign operation is fully or partially disposed of.
Property, Plant, and Equipment
Property, plant, and equipment are measured at cost less accumulated depreciation and any impairment losses. The cost includes expenses directly attributable to the acquisition of the tangible asset. If an asset consists of multiple parts with different useful lives, each part is treated as a separate asset. In such cases, the costs associated with replacing a part are capitalized, and the remaining carrying amount of the replaced part is derecognized. Otherwise, subsequent expenditures are included in the carrying amount of the tangible asset only if it is probable that future economic benefits associated with the asset will flow to the group and the cost of the asset can be reliably measured. Other repair and maintenance costs are expensed as incurred.
The values of the Pampalo and Hosko mines consist of the construction of mining infrastructure and the development costs of the mines. The balance sheet values of the Pampalo and Hosko mines also include costs recorded for environmental restoration measures, renewal costs, and legal requirements, which have been recorded as a restoration provision. The capitalized amount was initially
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recorded at the present value of the estimated amount required to fulfil the obligation. The costs capitalized in the balance sheet are depreciated on a straight-line basis over their economic useful life until the restoration measures are expected to begin. The cost estimates underlying the restoration provision are updated annually, and the resulting increase in the restoration provision is recorded as an addition to the asset.
The value of the Friday underground mine consists of land and water areas, machinery and equipment, and an environmental restoration provision. The Friday mine has been classified as held for sale in the financial statements as of 31 December 2025 and valued at fair value less costs to sell in accordance with IFRS 5. More information is provided in note 19.
Assets are depreciated on a straight-line basis over their estimated useful lives. Land and water areas are not depreciated.
The estimated useful lives are as follows:
Buildings and structures: 5–10 years
Machinery and equipment: 3–10 years
The residual value and useful life of an asset are reviewed at the end of each financial year. If expectations differ from previous estimates, the change is accounted for as a change in an accounting estimate.
Gains and losses arising from the derecognition and disposal of property, plant, and equipment are recognized in profit or loss and presented under other income and expenses from operations. The gain on sale is determined as the difference between the sales price and the remaining carrying amount.
Intangible assets
Exploration and Evaluation Expenses for Mineral Resources
Expenditures incurred for the exploration and evaluation of mineral resources are capitalizable expenses. Capitalized expenditures are measured at cost. Capitalizable expenses include costs related to the acquisition of exploration rights, geological studies, test drilling, trenching, sampling and analysis, as well as costs related to activities that assess the technical feasibility and commercial viability of separating the mineral resource. No depreciation is recognized on assets arising from the exploration and evaluation of mineral resources.
The company assesses each reporting period whether there are any indications of impairment for exploration and evaluation expenditures capitalized as other intangible assets, based on the provisions of IFRS 6. Impairment is assessed at each reporting period. If facts and circumstances suggest that the carrying amount exceeds the recoverable amount, the resulting impairment loss is determined and recognized, and related disclosures are provided. The recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs of disposal or its value in use. Fair value is the price that would be received to sell an asset in an orderly transaction between market participants. Value in use is the estimated future net cash flows expected to be derived from the asset or cash-generating unit, discounted to their present value. The discount rate used is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the asset.
The fair value is compared to the carrying amount of the asset in the impairment test. An asset is considered impaired when its carrying amount exceeds its fair value. The impairment loss is recognized in profit or loss.
When the technical feasibility and commercial viability of extracting a mineral resource can be demonstrated, the capitalized exploration and evaluation expenditures are transferred to other intangible assets as part of the development costs of the future production area.
Assets held for sale
Non-current assets held for sale or disposal groups are measured at lower of their carrying value and fair value less costs to sell if their recoverable amount is obtained through the sale of assets and not through their continued use, and a sale is considered highly likely. For this to be the case, the asset must be immediately available for sale in its current condition on terms that are common and customary for the sale of such assets.
Assets are not depreciated after they are classified as held for sale.
Inventories
The Group’s inventories consist of gold concentrate, ore stockpiles, and materials and supplies. Inventories are measured at the lower cost or net realizable value. The Group’s materials and supplies consist of production materials and are valued at the average cost of the supplies in stock. The cost of ore stockpiles and gold concentrate inventories is determined based on purchase, production, and other costs incurred in bringing the inventories to their present location and condition.
Lease agreements
The company applies IFRS 16 in the treatment of leases. Leases that involve an asset being used by the company for a specified period in exchange for consideration are
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classified as leases. Endomines has chosen to expense payments related to short-term (up to 12 months) or low-value leases over the lease term. Endomines determines the lease term as the enforceable period of the contract. Contracts where the lease term is not binding, and Endomines has the right to terminate the contract without the other party's consent and without significant penalty are classified as short-term.
At the end of the financial year 2025, Endomines' lease liabilities capitalized in the balance sheet under IFRS 16 include office leases and leased cars. The right-of-use asset is recognized in the balance sheet at the commencement date of the lease, which is the date when the lessor makes the underlying asset available for use by Endomines. The right-of-use asset is measured at the present value of future lease payments, using the incremental borrowing rate as the discount rate, and is depreciated over the lease term or the useful life, whichever is shorter. The incremental borrowing rate is used to calculate the present value of future lease payments. Value-added tax is not included in the amount of the lease liability.
The lease liability is remeasured when changes in the index or rate used result in changes to future lease payments, or when the group changes its assessment of whether it will exercise a purchase, extension, or termination option. The value of the right-of-use asset is adjusted accordingly in conjunction with the remeasurement of the lease liability and depreciation.
Employee Benefits
Pension Obligations
The Group has only defined contribution pension plans. The Group pays a fixed contribution to a separate service provider for the pension arrangements. The Group makes pension contributions to publicly or privately administered pension insurance schemes on a mandatory, contractual, or voluntary basis. The Group has no legal or constructive obligation to make additional payments. Contributions are recognized as employee expenses when paid. Prepaid contributions are reported as assets if a cash refund or reduction in future payments is beneficial to the Group.
Share-based payments
Endomines has incentive plans where the benefits granted are settled in equity instruments. The fair value of the benefits granted is determined at the grant date and is recognized as an expense in the income statement over the vesting period, with a corresponding entry to equity. Generally accepted valuation models, such as the Black-Scholes model or Monte Carlo simulation, are used to determine the fair value. The company assesses the appropriate valuation model on a case-by-case basis; currently, Endomines has applied the Black-Scholes-Merton valuation model for valuing its incentive plans.
Provisions and Contingent liabilities
Provisions
A provision is recognized in the balance sheet when the group has a legal or constructive obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made. The amount recognized as a provision represents the best estimate of the expenses required to settle the present obligation at the end of the reporting period. Provisions for environmental restoration, restructuring costs, and legal claims are recognized when the group has a legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount can be reliably estimated. No provisions are recognized for possible future operating losses.
Provisions are measured at the present value of the expenses expected to be required to settle the obligation, considering the cost level at the time of settlement and the effect of market risk. The estimated cost is then discounted to its present value using a risk-free interest rate based on long-term government bond yields. The unwinding of the discount effect during the period is recognized in profit or loss as a finance cost. Other changes in the provision are recognized as additions to or deductions from the related asset.
Estimated environmental restoration costs arising from the exploration and evaluation of mineral resources are reported as provisions. Endomines has developed an operational plan for environmental restoration. Provisions are assessed separately for each financial year.
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Contingent liabilities
Contingent liability is a potential obligation arising as a result of previous events, the existence of which is only confirmed when an uncertain event outside the Group is realised. An existing obligation that is unlikely to require the fulfilment of the payment obligation or the amount of which cannot be reliably determined is also considered a contingent liability. The contingent liability is presented as a note to the financial statements.
Income Taxes
The tax expense comprises the total amount of current tax based on taxable income for the period and deferred tax. Taxes are recognized in the income statement, except when they relate to items recognized in other comprehensive income or directly in equity, in which case the tax is also recognized in those items.
Income tax is calculated at the balance sheet date based on the tax laws of the country in which the parent company and its subsidiaries operate and generate taxable income, i.e., in accordance with Finnish and U.S. regulations. Management regularly evaluates the claims made in tax returns in situations where the applicable tax rules need to be interpreted. Provisions are made for taxes that are likely to be paid, if necessary.
Deferred tax is recognized in the consolidated financial statements using the balance sheet method for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts. However, deferred tax is not recognized if it arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction,
affects neither accounting profit nor taxable profit. However, the exception does not apply to the initial recognition of lease liabilities or decommissioning obligations. Endomines recognizes deferred taxes on the assets and liabilities related to leases and environmental restoration provisions. Deferred tax is recognized in the balance sheet at the tax rates and laws that are enacted or substantively enacted by the balance sheet date and are expected to apply when the deferred tax asset is realized, or the deferred tax liability is settled.
Deferred tax assets are recognized to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. The conditions for recognizing deferred tax assets are assessed at each reporting period's end.
Deferred tax is recognized on temporary differences arising from investments in subsidiaries, except when the group is able to control the timing of the reversal of the temporary difference or it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities that intend to settle current tax assets and liabilities on a net basis.
Revenue Recognition Principles
Revenue from customer contracts is recognized at fair value, adjusted for indirect taxes and discounts. The group
recognizes sales revenue on an accrual basis at a point in time when control of the goods is transferred to the customer.
Income from activities outside the normal business is recognized in other operating income.
Financial Assets and Financial Liabilities
Classification, Accounting, and Valuation
The Group's financial assets are recognized at amortized cost if they meet the following conditions:
- the financial asset is part of a business model whose objective is to hold financial assets to collect contractual cash flows and
- the contractual terms give rise to cash flows at specified times that are solely payments of principal and interest on the principal amount outstanding.
Trade Receivables and Other Receivables
Trade and other receivables are financial assets that are non-derivative, have fixed or determinable payments, and are not quoted in active markets. All trade and other receivables are included in current financial assets if their maturity is less than 12 months after the reporting period. The Group's assets in this category consist solely of cash and cash equivalents, trade receivables, and other receivables.
Trade and other receivables are recognized at amortized cost after initial recognition using the effective interest method.
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Convertible Loans
The fair value of the debt component of a convertible loan is calculated using a discount rate that consists of the market interest rate for similar debt without the conversion option. The amount is reported as a liability at amortized cost until the debt is either converted or matures. The conversion option is calculated as the difference between the fair value of the combined financial instrument and the fair value of the debt component. This is reported in equity.
Treatment of Financial Arrangements Containing Derivatives
Derivatives are recognized on the balance sheet on the trade date and are measured at fair value both initially and at subsequent revaluations at the end of each financial year. Derivative contracts are presented in other financial assets when the fair value is positive and in other financial liabilities when the fair value is negative.
Impairment of Financial Assets
Assets Recognized at Amortized Cost
The Group applies a simplified approach to calculating expected credit losses. This method calculates expected losses over the entire receivable period and uses these as a basis for trade receivables and contract-based assets.
Trade receivables and contract-based assets are written off if repayment cannot reasonably be expected. Indicators that repayment cannot reasonably be expected include, among others, the debtor's inability to comply with the repayment plan or payments being overdue by more than 120 days.
Credit losses on trade receivables and contract-based assets are reported as net credit losses in operating profit. Amounts previously written off and subsequently recovered are reported on the same line in the income statement.
No impairments of financial assets have been recorded since the establishment of the Group.
Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, bank deposits, and other short-term investments with maturities of three months or less from the date of acquisition.
Share Capital
Ordinary shares are recorded in equity. Transaction costs that can be directly attributed to the issuance of new shares or options are reported net of equity, after deducting share issuance costs from the proceeds of the issuance.
Loans
Loans are initially recognized at fair value net of transaction costs. Subsequently, loans are measured at amortized cost, and any differences between the amount received (net of transaction costs) and the repayment amount are reported in the income statement over the loan period using the effective interest method. Loans are classified as current liabilities if the Group does not have an unconditional right to defer payment of the debt for at least 12 months from the balance sheet date.
Trade Payables
Trade payables are obligations to pay for goods or services acquired from suppliers in the ordinary course of business. Trade payables are classified as current liabilities if they are due within one year or earlier (or within the normal operating cycle if this is longer). Otherwise, they are classified as non-current liabilities. All trade payables in this annual report are current. Trade payables are recognized at amortized cost.
Fair Value Calculation
The nominal value of trade payables and trade receivables, after deducting expected credit losses, approximates their fair value. The fair value of financial liabilities is consistent with their carrying amount.
Equity
Expenses related to the issuance or acquisition of the company's own equity instruments are presented as a deduction from equity. Instruments that meet the equity criteria under IFRS are recorded in equity, as described above in the section "Financial Liabilities."
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2. Operating Segments
The Endomines Group is operationally divided into three business segments: Pampalo Production, Karelian Gold Line, and USA Operations. The segment division is based on Endomines' current business strategy and geographical areas.
The Pampalo Production segment includes the operations of underground mines and open-pit mines, the production of gold concentrate, and the sale of gold concentrate. The Karelian Gold Line segment covers exploration activities in Finland. The USA Operations segment consists of the operations of Endomines Idaho LLC, which include the rights acquired during the financial years 2018–2022 to seven gold deposits in United States. The Group has not combined operating segments to form reportable segments.
All other operations of the Group are allocated to unallocated items. Unallocated items consist of Group administration and costs managed at the Group level, taxes, provisions, and other items that cannot be directly allocated to segments. The accounting principles applied in segment reporting are consistent with the Group's financial statement principles.
The results of the business segments are reported regularly to the Group's chief operating decision maker, who allocates resources to the segments based on their operational results. The chief operating decision maker of Endomines Group is the Board of Directors of Endomines Finland Plc.
The performance of the segments is evaluated based on EBITDA, operating profit, and additions to long-term assets. Performance is measured consistently and in a timely manner with the consolidated financial statements and internal reporting provided to the Board of Directors.
Information about key customers
During the financial year 1.1.–31.12.2025, the most significant customer of Endomines Group is Boliden Commercial AB. 100% of the revenue is generated from the sale of gold concentrate to Boliden Commercial AB.
Pampalo production
| Gold production | 1.1.–31.12.2025 | 1.1.–31.12.2024 |
|---|---|---|
| Gold production, kg | 517.2 | 444.9 |
| Gold production, oz | 16,630 | 14,304 |
Group total
| Gold production | 1.1.–31.12.2025 | 1.1.–31.12.2024 |
|---|---|---|
| Gold production, kg | 517.2 | 444.9 |
| Gold production, oz | 16,630 | 14,304 |
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| 1.1.–31.12.2025 | Pampalo production | Karelian gold line | USA operations | Unallocated items | Group total |
|---|---|---|---|---|---|
| Sales outside the group | 45.5 | – | – | 0.0 | 45.5 |
| Sales to other segments | 0.0 | – | – | – | – |
| Total revenue | 45.5 | – | – | 0.0 | 45.5 |
| Change in the inventory of finished goods and work in progress | 0.0 | – | – | – | 0.0 |
| Materials, supplies, and external services | -18.4 | -0.1 | -0.1 | -0.1 | -18.7 |
| Expenses of employee benefits | -3.4 | -0.9 | -0.4 | -1.4 | -6.1 |
| Other operating expenses | -1.9 | -0.2 | -0.8 | -1.6 | -4.4 |
| EBITDA | 21.8 | -1.2 | -1.2 | -3.0 | 16.3 |
| EBITDA % | 48% | – | – | – | 36% |
| Depreciation | -3.2 | 0.0 | -4.5 | -1.0 | -8.7 |
| Operating result | 18.6 | -1.2 | -5.7 | -4.0 | 7.6 |
| Operating result % | 41% | – | – | – | 17% |
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| 1.1.–31.12.2024 | Pampalo production | Karelian gold line | USA operations | Unallocated items | Group total |
|---|---|---|---|---|---|
| Sales outside the group | 28.7 | – | – | 0.0 | 28.7 |
| Sales to other segments | 0.0 | – | – | – | – |
| Total revenue | 28.7 | – | – | 0.0 | 28.7 |
| Change in the inventory of finished goods and work in progress | -0.1 | – | – | – | -0.1 |
| Materials, supplies, and external services | -14.9 | -0.1 | -0.1 | 0.0 | -15.1 |
| Expenses of employee benefits | -2.4 | -0.7 | -0.4 | -1.2 | -4.6 |
| Other operating expenses | -1.0 | -0.1 | -0.3 | -1.6 | -3.0 |
| EBITDA | 10.3 | -0.9 | -0.7 | -2.8 | 5.8 |
| EBITDA % | 36% | – | – | – | 20% |
| Depreciation before the change | -1.8 | – | -0.8 | -0.6 | -3.2 |
| Reallocation of depreciation to segments* | -0.2 | 0.0 | – | 0.3 | – |
| Depreciation after the change | -2.1 | 0.0 | -0.8 | -0.3 | -3.2 |
| Operating result before the change | 8.5 | -0.9 | -1.6 | -3.4 | 2.6 |
| Operating result % before the change | 30% | – | – | – | 9% |
| Impact of the reallocation of depreciation | -0.2 | 0.0 | – | 0.3 | – |
| Operating result after the change | 8.3 | -1.0 | -1.6 | -3.1 | 2.6 |
| Operating result % after the change | 29% | – | – | – | 9% |
- During the financial year 2025, the allocation of depreciation to segments was refined, and part of the depreciation previously presented under unallocated items was reallocated to the Pampalo production and Karelian gold line segments. Comparative period figures have been adjusted accordingly.
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Geographical distribution of long-term assets
| 31.12.2025 | Finland | USA | Total |
|---|---|---|---|
| Intangible assets | |||
| Mineral resource exploration and evaluation expenses | 15.2 | 15.4 | 30.6 |
| Other intangible assets | 1.3 | – | 1.3 |
| Property, plant and equipment | |||
| Pampalo mine | 19.2 | – | 19.2 |
| Hosko mine | 3.3 | – | 3.3 |
| Land and water areas | 0.3 | – | 0.3 |
| Buildings and structures | 2.5 | – | 2.5 |
| Machinery and equipment | 5.4 | – | 5.4 |
| Other tangible assets | 0.6 | – | 0.6 |
| Total | 47.9 | 15.4 | 63.2 |
The table does not include the assets classified as held for sale in the financial statements as at 31 December 2025.
| 31.12.2024 | Finland | USA | Total |
|---|---|---|---|
| Intangible Assets | |||
| Mineral resource exploration and evaluation expenses | 10.9 | 27.6 | 38.6 |
| Other intangible assets | 1.6 | – | 1.6 |
| Property, plant and equipment | |||
| Pampalo Mine | 13.6 | – | 13.6 |
| Hosko Mine | 1.8 | – | 1.8 |
| Land and water areas | 0.2 | 0.3 | 0.5 |
| Buildings and structures | 2.7 | 3.7 | 6.4 |
| Machinery and equipment | 3.7 | 2.9 | 6.6 |
| Other tangible assets | 0.1 | – | 0.1 |
| Total | 34.6 | 34.6 | 69.2 |
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Allocation of additions to long-term assets by segments
| 31.12.2025 | Pampalo Production | Karelian gold line | USA operations | Unallocated items | Total |
|---|---|---|---|---|---|
| Intangible Assets | |||||
| Mineral resource exploration and evaluation expenses | – | 4.3 | – | – | 4.3 |
| Other intangible assets | 0.0 | 0.0 | – | – | 0.0 |
| Property, plant and equipment | – | – | |||
| Pampalo Mine | 7.4 | – | – | – | 7.4 |
| Hosko Mine | 2.3 | – | – | – | 2.3 |
| Land and water areas | 0.1 | – | – | – | 0.1 |
| Buildings and structures | 0.2 | – | – | 0.1 | 0.3 |
| Machinery and equipment | 2.3 | 0.1 | 0.0 | 0.1 | 2.6 |
| Other tangible assets | 0.5 | 0.0 | – | – | 0.5 |
| Total | 12.9 | 4.4 | 0.0 | 0.2 | 17.5 |
| 31.12.2024 | Pampalo Production | Karelian gold line | USA operations | Unallocated items | Total |
| --- | --- | --- | --- | --- | --- |
| Intangible Assets | |||||
| Mineral resource exploration and evaluation expenses | – | 3.2 | – | – | 3.2 |
| Other intangible assets | 0.5 | – | – | – | 0.5 |
| Property, plant and equipment | |||||
| Pampalo Mine | 5.8 | – | – | – | 5.8 |
| Hosko Mine | 1.4 | – | – | – | 1.4 |
| Land and water areas | – | – | 0.0 | – | 0.0 |
| Buildings and structures | 0.0 | – | 0.0 | 2.3 | 2.3 |
| Machinery and equipment | 0.5 | – | 0.0 | 2.1 | 2.7 |
| Other tangible assets | 0.0 | – | – | – | 0.0 |
| Total | 8.3 | 3.2 | 0.0 | 4.4 | 15.9 |
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3. Revenue from Customer Contracts
Endomines' sales revenue is generated from the sale of gold concentrate delivered to the customer. The majority of the gold concentrate produced by Endomines is flotation concentrate. In Finland, Boliden Commercial AB purchases all of the flotation concentrate produced by Endomines Oy based on a sales agreement that lasts over a year.
In 2024, Endomines produced gravimetric gold in addition to foam concentrate. Endomines' full-year production of gravimetric gold was 2.0 kg in 2024, compared to full-year gold production of 444.9 kg. In 2025, Endomines did not produce or sell gravimetric gold.
Sales revenues from flotation concentrate are based on a provisional invoice, which is calculated based on the quantity of concentrate delivered, the gold content, the moisture content, and the market price of gold. Sales revenues are reduced by certain agreed costs. The information is based on preliminary samples obtained from Endomines' own laboratory and the average gold price in an agreed time period. Endomines treats the concentrates delivered in one month as a single performance obligation. The risks and rights to handle the concentrate are transferred from the seller to the buyer when the sampling and weighing procedures of the concentrate are completed at the delivery location. The delivery is invoiced in the month following the delivery month. Ownership of the concentrate load is transferred to the buyer upon payment of the invoice. All invoices and payments are in US dollars.
Final invoicing takes place when the final results of the samples from both Endomines' and the customer's laboratories are completed and all parameters for the agreed pricing period are confirmed. In some instances, the laboratory samples are sent to an external and independent laboratory for analysis. The difference between the preliminary invoice and the final invoice is not deemed to be material, and once the final invoice is confirmed, Endomines adjusts the sales revenue by the difference between the preliminary and final invoice in the month when the final results are completed.
Sales revenues also from gravimetric gold concentrate are based on a preliminary invoice, which is calculated based on the gold content of the delivered concentrate and the market price of gold. Sales revenues are reduced by processing costs. The preliminary invoice information is based on samples from both Endomines' and the customer's laboratories, and the gold price is determined according to the market price of gold. In some instances, the laboratory samples are sent to an external and independent laboratory for analysis. The difference between the preliminary invoice and the final invoice is not deemed to be material, and once the final invoice is confirmed, Endomines adjusts the sales revenue by the difference between the preliminary and final invoices in the month when the results are completed.
Revenue from Customer Contracts
| The Group's revenue by market area | 2025 | 2024 |
|---|---|---|
| Finland | 45.5 | 28.7 |
| United States | – | 0.0 |
| Total | 45.5 | 28.7 |
| Accounts receivable and assets and liabilities based on customer agreements | 2025 | 2024 |
| Accounts receivable | 7.7 | 3.1 |
| Short-term accrued receivables | 0.0 | 0.0 |
| Short-term financial liabilities | – | 0.3 |
At the end of the financial year 2024, the Group had sold EUR 0.3 million of its trade receivables to a factoring company in exchange for cash. At the end of the financial year 2025, there was no similar arrangement.
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4. Other operating income
| 2025 | 2024 | |
|---|---|---|
| Grants and compensations received | 0.0 | – |
| Metal scrap and waste | 0.0 | 0.0 |
| Gain on sale of property, plant and equipment | – | 0.0 |
| Other income items | 0.0 | 0.0 |
| Total | 0.1 | 0.0 |
5. Change in inventories of finished goods and work in progress
| Change in the inventory of finished goods | 2025 | 2024 |
|---|---|---|
| Increase (-) or decrease (+) in stocks | 0.0 | -0.1 |
| Total | 0.0 | -0.1 |
6. Materials, supplies and external services
| 2025 | 2024 | |
|---|---|---|
| Purchases of materials, supplies and goods | 3.1 | 1.7 |
| Increase (-) or decrease (+) in stocks | 0.2 | -0.0 |
| External services | 15.4 | 13.5 |
| Total | 18.7 | 15.1 |
7. Expenses arising from employee benefits
| Expenses arising from employee benefits | 2025 | 2024 |
|---|---|---|
| Salaries, wages and remunerations | 4.9 | 3.8 |
| Pension expenses | 0.8 | 0.6 |
| Other employee expenses | 0.3 | 0.2 |
| Total | 6.1 | 4.6 |
| The Group’s average number of personnel by group during the financial year | 2025 | 2024 |
| --- | --- | --- |
| White-collar employees | 45 | 42 |
| Blue-collar employees | 24 | 13 |
| Total | 69 | 55 |
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8. Share-based payments
In January 2025, the Board of Directors decided on a share bonus program for its key employees for the years 2025–2027. The program is based on the company's stock price development. The share bonus program consists of a one-year earning period and a two-year commitment period. The bonus is granted in Endomines' shares including taxes and tax-related payments. The criteria for earning the bonus are employment condition and the total return on the share. The starting level of the share price is 10.50 euros, and the maximum level is 21.00 euros. The fair value of the share bonus program has been determined by using the Black-Scholes-Merton valuation model. The earning period ended on 31 December 2025, and the share bonus will be paid in April 2026. A total of 22 employees were included in the program at the grant date, and 19 at the year-end 2025.
Performance-based share bonus plan
| Grant date | 21 January 2025 |
|---|---|
| Maximum reward shares, pcs | 32,500 |
| Fair value of the share at the grant date, EUR | 8.90 |
| Expected volatility, EUR | 41.37 |
| Risk-free interest rate, % | 2.42 |
| Expected dividend yield, EUR | 0.0 |
| Performance criteria | Total return of the share, employment |
| Fair value at Grant date, EUR | 0.91 |
| Number of personnel as of 31.12.2025 | 19 |
The impact of the share-based incentive plan on the result for the financial year has been KEUR 22, and the total cost during the effective period is estimated to be KEUR 451.
9. Other operating expenses
| Other operating expenses | 2025 | 2024 |
|---|---|---|
| Production operation and maintenance costs | 0.3 | 0.2 |
| Voluntary employee expenses | 0.4 | 0.2 |
| Facility expenses | 0.5 | 0.3 |
| Vehicle expenses | 0.3 | 0.2 |
| Travel expenses | 0.2 | 0.2 |
| Loss on sale of property, plant and equipment | – | 0.0 |
| Administrative Services | 1.4 | 0.8 |
| Other fixed costs | 1.3 | 1.2 |
| Total | 4.5 | 3.1 |
| Auditor's fees | 2025 | 2024 |
| Auditing | 0.1 | 0.1 |
| Auditor's other assignments and statements | 0.0 | 0.0 |
| Total | 0.1 | 0.1 |
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10. Depreciation and impairment
| Depreciation and impairment | 2025 | 2024 |
|---|---|---|
| Depreciation by asset group | ||
| Property, plant and equipment: | ||
| Pampalo mine | 1.8 | 1.3 |
| Hosko mine | 0.8 | 0.3 |
| Land and water areas | – | – |
| Buildings and structures | 0.5 | 0.2 |
| Machinery and equipment | 1.4 | 1.2 |
| Other tangible assets | 0.0 | 0.0 |
| Property, plant and equipment held for sale | 1.4 | – |
| Intangible assets: | ||
| Mineral resource exploration and evaluation expenses | – | – |
| Other intangible assets | 0.4 | 0.2 |
| Intangible assets held for sale | 2.4 | – |
| Total | 8.7 | 3.2 |
Depreciations of right-of-use assets are presented in note 17.
11. Impairment testing
The Group performed impairment tests as per the accounting principles on 31 December 2025 for the balance sheet value of exploration and evaluation expenditures for mineral resources. The recoverable amount exceeds the carrying amount in all tests.
| Mineral resource exploration and evaluation expenses | 2025 | 2024 |
|---|---|---|
| Finland | 15.2 | 10.9 |
| USA | 15.4 | 27.6 |
| Total | 30.6 | 38.6 |
Impairment testing for exploration and evaluation expenditures for mineral resources in Finland and the United States has been performed by comparing the carrying amount of the asset to its fair value less costs to sell.
Key variables in impairment testing for exploration and evaluation expenditures for mineral resources:
- Estimate of ore tonnes and gold grade
- Estimate of the in-ground gold price
Estimates of ore tonnes and gold grade are prepared based on management's best judgment and are derived from values verified through studies of gold ore reserves and mineral resources. The in-ground gold price is based on comparative analysis and the market values of gold deposits.
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Sensitivity analysis
The group has assessed the sensitivity of the impairment testing to key variables. The table below shows the required change in a single assumption for the recoverable amount to fall below the carrying amount.
| Variable | 2025 | 2024 |
|---|---|---|
| Ore tonnage, United States | -91 % | -49 % |
| Concentration, United States | -91 % | -49 % |
| Price of gold in the ground, United States | -91 % | -49 % |
| Ore tonnage, Finland | -73 % | -38 % |
| Concentration, Finland | -73 % | -38 % |
| Price of gold in the ground, Finland | -73 % | -38 % |
When assessing the recoverable amount of cash by the cash-generating units, and considering the above, the management estimates that no reasonably possible change in any key variable would result in the recoverable amounts of cash by the cash-generating units falling below their carrying amounts.
12. Financial Income and Expenses
| Financial income and expenses | 2025 | 2024 |
|---|---|---|
| Exchange rate gains | 0.7 | 1.4 |
| Other financial income | 0.0 | 0.0 |
| Total financial income | 0.7 | 1.4 |
| Exchange rate losses | -2.4 | -1.0 |
| Interest expenses on interest-bearing liabilities | -2.1 | -2.1 |
| Interest expenses on leases | 0.0 | 0.0 |
| Interest expenses on restoration costs | -0.2 | -0.5 |
| Other financial expenses | -0.4 | -0.1 |
| Total financial expenses | -5.1 | -3.7 |
| Net financial expenses | -4.4 | -2.2 |
The exchange rate difference of MEUR -2.2 (MEUR 1.2) on the intra-group loan of Endomines Idaho LLC, is treated as a net investment in a foreign unit. It has been recorded in other comprehensive income. The amount of the said intra-group loan at the year-end 2025 was MEUR 12.6 (MEUR 13.5).
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13. Income Taxes
| Income Taxes on the Income Statement | 2025 | 2024 |
|---|---|---|
| Tax based on the taxable income for the financial year | – | – |
| Adjustments for previous financial years | – | 0.0 |
| Deferred taxes | 4.1 | -0.1 |
| Total | 4.1 | -0.1 |
| Reconciliation of the Group's Tax Rate to the Finnish Tax Rate | 2025 | 2024 |
| --- | --- | --- |
| Profit before tax | 3.2 | 0.4 |
| Taxes calculated at the parent company's tax rate | -0.6 | -0.1 |
| Differing tax rates of foreign subsidiaries | 0.0 | 0.0 |
| Tax-exempt income | 0.0 | 0.0 |
| Non-deductible expenses for tax purposes | -0.8 | -0.4 |
| Taxes on other taxable income | -0.1 | – |
| Use of unrecognized tax losses from previous financial periods | 2.9 | 1.0 |
| Permanent differences and tax losses that have been lost | 0.0 | -0.1 |
| Tax losses for which deferred tax assets have not been recognised | -1.4 | -0.6 |
| Taxes from previous years | – | 0.0 |
| Changes in deferred taxes | 4.1 | 0.0 |
| Taxes on the income statement | 4.1 | -0.1 |
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Changes in deferred taxes
| Deferred tax assets 2025 | 1 Jan | Through income statement | Translation differences | Through equity | Assets held for sale | 31 Dec |
|---|---|---|---|---|---|---|
| Environmental restoration provisions | 1.1 | -0.2 | – | – | – | 0.9 |
| Lease agreements | 0.0 | 0.0 | – | – | – | 0.0 |
| Confirmed losses | – | 4.1 | – | – | – | 4.1 |
| Other temporary differences | 0.0 | -0.0 | – | 0.1 | – | 0.2 |
| Netted against deferred tax liabilities | -1.1 | 0.1 | – | – | – | -1.0 |
| Deferred tax assets total | – | 4.1 | – | 0.1 | – | 4.3 |
| Deferred tax liabilities 2025 | 1 Jan | Through income statement | Translation differences | Through equity | Assets held for sale | 31 Dec |
| --- | --- | --- | --- | --- | --- | --- |
| Environmental restoration provisions | 1.1 | -0.2 | -0.0 | – | -0.1 | 0.9 |
| Lease agreements | 0.0 | 0.0 | – | – | – | 0.0 |
| Other temporary differences | 0.0 | -0.0 | – | – | – | 0.2 |
| Netted against deferred tax assets | -1.1 | 0.1 | – | – | – | -1.0 |
| Deferred tax liabilities total | 0.1 | -0.0 | -0.0 | – | -0.1 | – |
Deferred taxes have been recorded in the balance sheet on a net basis by offsetting deferred tax assets against deferred tax liabilities to the extent that there is likely to be available taxable income against which the deductible temporary difference can be utilized.
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| Deferred tax assets 2024 | 1 Jan | Through income statement | Translation differences | Through equity | Assets held for sale | 31 Dec |
|---|---|---|---|---|---|---|
| Environmental restoration provisions | 0.3 | 0.8 | – | – | – | 1.1 |
| Lease agreements | 0.0 | 0.0 | – | – | – | 0.0 |
| Other temporary differences | 0.1 | -0.0 | – | – | – | 0.0 |
| Netted against deferred tax liabilities | -0.4 | -0.8 | – | – | – | -1.1 |
| Deferred tax assets total | – | – | – | – | – | – |
| Deferred tax liabilities 2024 | 1 Jan | Through income statement | Translation differences | Through equity | Assets held for sale | 31 Dec |
| --- | --- | --- | --- | --- | --- | --- |
| Environmental restoration provisions | 0.3 | 0.8 | 0.0 | – | – | 1.1 |
| Lease agreements | 0.0 | 0.0 | – | – | – | 0.0 |
| Other temporary differences | 0.1 | -0.0 | – | – | – | 0.0 |
| Netted against deferred tax assets | -0.4 | -0.8 | – | – | – | -1.1 |
| Deferred tax liabilities total | 0.0 | -0.0 | 0.0 | – | – | 0.1 |
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Endomines has not recognised deferred tax assets for temporary differences as shown in the table below.
| 31.12.2025 | 31.12.2024 | |||||
|---|---|---|---|---|---|---|
| Expiration year | Gross amount | Tax effect | Expiration year | Gross amount | Tax effect | |
| Tax losses | – | – | – | 2025–2033 | 34.1 | 6.8 |
| Environmental restoration | Does not expire | 3.1 | 0.6 | Does not expire | 2.2 | 0.5 |
| Lease agreements | Does not expire | 0.0 | 0.0 | Does not expire | 0.0 | 0.0 |
| Other temporary differences | Does not expire | 1.2 | 0.2 | Does not expire | 2.4 | 0.5 |
| Total | 4.3 | 0.9 | 38.7 | 7.8 |
At the end of the financial year, the Group's confirmed losses totalled MEUR 34.1 in Finland. The loss confirmed in Finland is deducted from the profit over the next 10 tax years as income is generated. In the financial year 2025, the Group's Finnish companies have recognised a deferred tax asset of MEUR 4.1 from confirmed losses. The deferred tax asset will be utilised in the coming years against the expected tax expense.
The merger of the parent company with its subsidiary in 2022 did not result in a change of ownership in the subsidiary of the merging parent company as referred to in Section 122, Subsection 1 of the Income Tax Act. Therefore, the confirmed losses in Finland are also deductible for tax purposes for the comparison period and previous periods. The impact of the merger, that took place in 2022, on the deductibility of confirmed losses in the United States and Sweden, has not been clarified.
14. Earnings per share
| 2025 | 2024 | |
|---|---|---|
| Profit for the financial year attributable to the owners of the parent company, MEUR | 7.3 | 0.3 |
| Weighted average number of shares | 11,191,252 | 9,851,879 |
| Basic earnings per share, EUR / share | 0.7 | 0.0 |
| Diluted number of shares 31 Dec | 12,251,265 | 10,707,841 |
| Diluted earnings per share, EUR / share* | 0.6 | 0.0 |
- Basic earnings per share is calculated by dividing the profit attributable to equity holders of the parent by the weighted average number of shares outstanding during the period, adjusted for share issues. When calculating diluted earnings per share, the weighted average number of shares is adjusted for the dilutive effect of all potential dilutive shares. The diluted earnings per share must not increase the earnings per share for the period presented, in accordance with IAS 33 Earnings per Share.
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- Property, plant and equipment
| 2025 | Pampalo mine | Hosko mine | Land and water areas | Buildings and structures | Machinery and equipment | Other tangible assets |
|---|---|---|---|---|---|---|
| Acquisition cost | ||||||
| At the beginning of the period | 38.2 | 2.1 | 0.5 | 16.4 | 30.0 | 0.1 |
| Additions | 7.4 | 2.3 | 0.1 | 0.3 | 2.6 | 0.5 |
| Classified as held for sale | – | – | -0.3 | -3.6 | -13.1 | – |
| Exchange rate differences | – | – | -0.0 | -0.5 | -1.7 | – |
| At the end of the period | 45.7 | 4.5 | 0.3 | 12.6 | 17.8 | 0.6 |
| Accumulated depreciation and impairment losses: | ||||||
| At the beginning of the period | -24.7 | -0.3 | – | -10.0 | -23.4 | -0.0 |
| Depreciation for the period | -1.8 | -0.8 | – | -0.5 | -1.4 | -0.0 |
| Impairment losses | – | – | -0.1 | -0.8 | -0.5 | – |
| Classified as held for sale | – | – | 0.1 | 1.2 | 11.6 | – |
| Exchange rate differences | – | – | – | 0.0 | 1.4 | – |
| At the end of the period | -26.4 | -1.1 | – | -10.1 | -12.4 | -0.0 |
| Carrying value | 19.2 | 3.3 | 0.3 | 2.5 | 5.4 | 0.6 |
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| 2024 | Pampalo mine | Hosko mine | Land and water areas | Buildings and structures | Machinery and equipment | Other tangible assets |
|---|---|---|---|---|---|---|
| Acquisition cost | ||||||
| At the beginning of the period | 32.6 | 0.7 | 0.5 | 13.9 | 26.5 | 0.1 |
| Additions | 5.8 | 1.4 | - | 0.0 | 0.6 | 0.0 |
| Environmental restoration provision, additions | - | - | - | 2.3 | 2.0 | - |
| Disposals | - | - | - | - | -0.1 | - |
| Exchange rate differences | - | - | 0.0 | 0.2 | 0.9 | - |
| At the end of the period | 38.2 | 2.1 | 0.5 | 16.4 | 30.0 | 0.1 |
| Accumulated depreciation and impairment losses: | ||||||
| At the beginning of the period | -23.4 | - | - | -9.8 | -21.5 | -0.0 |
| Depreciation for the period | -1.3 | -0.3 | - | -0.2 | -1.2 | -0.0 |
| Exchange rate differences | - | - | - | -0.0 | -0.7 | - |
| At the end of the period | -24.7 | -0.3 | - | -10.0 | -23.4 | -0.0 |
| Carrying value | 13.6 | 1.8 | 0.5 | 6.4 | 6.6 | 0.1 |
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16. Intangible assets
| 2025 | Mineral resource exploration and evaluation expenses | Other intangible assets |
|---|---|---|
| Acquisition cost | ||
| At the beginning of the period | 57.0 | 1.8 |
| Increase | 4.3 | 0.0 |
| Classified as held for sale | -21.8 | – |
| Exchange rate differences | -4.9 | – |
| At the end of the period | 34.7 | 1.9 |
| Accumulated depreciation and impairment losses | ||
| At the beginning of the period | -18.5 | -0.2 |
| Depreciation for the period | – | -0.4 |
| Impairment losses | -2.4 | – |
| Classified as held for sale | 15.1 | – |
| Exchange rate differences | 1.7 | – |
| At the end of the period | -4.1 | -0.6 |
| Carrying value | 30.6 | 1.3 |
| 2024 | Mineral resource exploration and evaluation expenses | Other intangible assets |
| --- | --- | --- |
| Acquisition cost | ||
| At the beginning of the period | 51.3 | 1.3 |
| Increase | 3.2 | 0.5 |
| Exchange rate differences | 2.5 | – |
| At the end of the period | 57.0 | 1.8 |
| Accumulated depreciation and impairment losses | ||
| At the beginning of the period | -17.6 | – |
| Depreciation for the period | – | -0.2 |
| Exchange rate differences | -0.9 | – |
| At the end of the period | -18.5 | -0.2 |
| Carrying value | 38.6 | 1.6 |
| Assets and liabilities related to the exploration and evaluation of mineral resources, which are not included in the items mentioned above | 2025 | 2024 |
| Accounts payable to subcontractors | 1.0 | 1.1 |
| Income and expenses arising from the exploration and evaluation of minerals | 2025 | 2024 |
| Materials, supplies and external services | -0.1 | -0.1 |
| Expenses arising from employee benefits | -0.9 | -0.7 |
| Other fixed costs | -0.2 | -0.1 |
| Items with a cash flow effect arising from the exploration and evaluation of mineral resources | 2025 | 2024 |
| Cash flow from investments | -4.3 | -3.2 |
| Cash flow from operating activities | -1.2 | -0.9 |
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17. Leases
| KEUR | 2025 | 2024 | ||||
|---|---|---|---|---|---|---|
| Buildings and structures | Machinery and equipment | Total | Buildings and structures | Machinery and equipment | Total | |
| Right-of-use assets | ||||||
| At the beginning of the period | 14.1 | 25.0 | 39.1 | 35.2 | 0.0 | 35.2 |
| Increase | 82.5 | 81.1 | 163.6 | 0.0 | 34.7 | 34.7 |
| Depreciation | -22.3 | -30.6 | -53.0 | -21.1 | -9.6 | -30.8 |
| At the end of the period | 74.3 | 75.5 | 149.8 | 14.1 | 25.0 | 39.1 |
The right-of-use assets are included in the balance sheet items Buildings and structures and Machinery and equipment.
| KEUR | 2025 | 2024 |
|---|---|---|
| Lease liabilities | ||
| Non-current lease liabilities | 85.8 | 14.1 |
| Current lease liabilities | 75.4 | 26.5 |
The lease liabilities are included in the balance sheet items Non-current financial liabilities and Current financial liabilities.
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18. Business acquisitions
On 1 September 2025, Endomines Oy acquired the Pampalo business of Power Mining Oy, an underground mining service provider. Power Mining Oy acts as a service provider for rock construction work at mining and infrastructure sites. The company has been operating as a mine construction partner at Endomines' Pampalo underground mine since 2021. The acquired operations employed approximately 30 people, all of whom worked at the Pampalo mine.
With the transfer of the business, the majority of the employees working at Power Mining's Pampalo mine were transferred to Endomines. The deal included machinery and equipment needed for underground mining operations as well as a spare part inventory. The purchase price will be paid in three approximately equal instalments: the first instalment, MEUR 0.9 on the completion date, the second instalment by 31 March 2026 and the third instalment by 30 September 2026.
| Values of acquired assets and liabilities at the time of acquisition | Fair values |
|---|---|
| Property, plant and equipment | 2.0 |
| Inventories | 0.9 |
| Total assets | 2.9 |
| Other liabilities | 0.1 |
| Total liabilities | 0.1 |
| Fair value of acquired net assets | 2.8 |
| Consideration transferred | 0.9 |
| Fair value of the contingent consideration | 2.0 |
| Fair value of acquired net assets | -2.8 |
| Goodwill | 0.0 |
| Cash flow impact of the acquisition | |
| Cash consideration | -0.9 |
| Net cash flow on acquisition | -0.9 |
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19. Assets held for sale
Endomines Idaho, LLC, a subsidiary of Endomines Finland Plc, has on 19 November 2025 signed a sales agreement for three gold deposits in the US state of Idaho to the Australian company Yellowstone Mining Pty Ltd. The total debt-free price of the deal is AUD 20 million. The purchase price will be paid in five instalments, the first of which, MAUD 3.5, will be paid on the closing date and the remaining four instalments within five years of the closing date. For the third and fourth instalments, Endomines also has the option to choose payment in buyer's shares after its planned listing on the stock exchange instead of cash.
The instances for sale are called Friday, Buffalo Gulch, and Deadwood. The transaction also includes the machinery and equipment of the deposits. Endomines has classified the assets to be sold and related liabilities as held for sale in accordance with the requirements of IFRS 5 and recognised them at fair value less costs arising from the sale. An impairment loss of MEUR 3.9 from valuation has been recognised in the US Operations segment's result.
The majority of Endomines' personnel in Idaho will be transferred to the buyer on the closing date. Closing of the transaction took place after the reporting period in February 2026.
| Assets classified as held for sale | Book values |
|---|---|
| Other non-current receivables | 0.1 |
| Other intangible assets | 6.7 |
| Land and water areas | 0.2 |
| Buildings and structures | 2.5 |
| Machinery and equipment | 1.5 |
| Total | 10.9 |
| Liabilities related to assets held for sale | Book values |
| --- | --- |
| Deferred tax liabilities | 0.1 |
| Provisions | 0.8 |
| Total | 0.9 |
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20. Financial assets and liabilities
| Book value and fair value | ||
|---|---|---|
| 2025 | 2024 | |
| Current financial assets | ||
| Accounts receivable and other receivables | 7.9 | 3.2 |
| Cash in hand and at banks | 3.9 | 2.1 |
| Total financial assets recognized at amortized cost | 11.8 | 5.3 |
| Total financial assets | 11.8 | 5.3 |
| Financial liabilities | ||
| Non-current financial liabilities | ||
| Convertible loans | 7.0 | 8.3 |
| Loans from financial institutions | 4.9 | 0.0 |
| Lease liabilities | 0.1 | 0.0 |
| Total non-current financial liabilities recognized at amortized cost | 12.0 | 8.4 |
| Current financial liabilities | ||
| Convertible loans | 1.6 | 6.6 |
| Loans from financial institutions | 0.0 | 0.3 |
| Lease liabilities | 0.1 | 0.0 |
| Accounts payable and other liabilities | 10.2 | 6.9 |
| Total current financial liabilities recognized at amortized cost | 11.9 | 13.9 |
| Total financial liabilities | 24.0 | 22.2 |
The carrying amounts of financial assets and liabilities measured at amortized cost materially correspond their fair value, as the effect of discounting is not significant considering the maturity and the interest rate level at the reporting date.
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Breakdown of financial liabilities into changes with cash flow effects and changes without cash flow effects
| 2025 | Non-current interest-bearing liabilities | Non-current lease liabilities | Current interest-bearing liabilities | Current lease liabilities |
|---|---|---|---|---|
| Financial liabilities 1 Jan | 8.4 | 0.0 | 6.9 | 0.0 |
| Loan withdrawals | 7.4 | – | – | – |
| Additions | – | 0.2 | – | – |
| Repayments | – | – | -0.3 | – |
| Transfers to current liabilities | -1.6 | -0.1 | 1.6 | 0.1 |
| Convertible loan conversions into shares | -2.0 | – | -6.6 | – |
| Other changes that do not involve payment | -0.2 | -0.0 | – | -0.0 |
| Financial liabilities 31 Dec | 12.0 | 0.1 | 1.6 | 0.1 |
| 2024 | Non-current interest-bearing liabilities | Non-current lease liabilities | Current interest-bearing liabilities | Current lease liabilities |
| --- | --- | --- | --- | --- |
| Financial liabilities 1 Jan. | 13.9 | 0.0 | 2.1 | 0.0 |
| Loan withdrawals | 4.7 | – | 2.3 | – |
| Additions | – | 0.0 | – | – |
| Repayments | 0.0 | 0.0 | -0.3 | – |
| Transfers | -0.1 | – | – | – |
| Transfer to current liabilities | -4.6 | 0.0 | 4.6 | 0.0 |
| Convertible loans conversion into shares | -5.8 | – | -1.9 | – |
| Other changes that do not involve payment | 0.2 | – | 0.0 | – |
| Financial liabilities 31 Dec | 8.4 | 0.0 | 6.9 | 0.0 |
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Convertible loans
On 22 January 2025, Endomines agreed on a MEUR 2.3 convertible loan with the company's largest shareholders. The convertible loans have a maturity of 24 months and an annual interest rate of 10%. According to the agreement, the convertible loans can be converted into shares in the company in full or in part no earlier than 12 months after the drawdown date of the loan. The conversion price is fixed at EUR 7.51 and it is based on the average closing price of the share in December 2024 minus 5.5 per cent.
During 2025, Endomines received conversion notices related to convertible loans, based on which a total of EUR 9,894,115.05 was converted into new shares in Endomines Finland Plc. As a result, 1,141,315 new shares in Endomines Finland Plc were registered and issued. The total number of shares and votes in Endomines increased from 10,830,029 shares and votes to 11,971,344 shares and votes. After registration, the new shares represented approximately 9.5 per cent of the total number of shares and votes in the company.
21. Financial risk management
The group is exposed to various financial risks through its operations, including market risk (comprising currency risk and price risk), credit and counterparty risk, liquidity risk, and cash flow risk.
The notes present a sensitivity analysis of the most significant risks related to financial assets and liabilities. The sensitivity analysis is based on the financial instruments available at the balance sheet date. The basic principle of the sensitivity analysis is to report the potential individual impacts of changes in exchange rates, interest rates, or prices on post-tax profit, post-tax other comprehensive income, or equity, assuming all other variables remain constant.
Market Risk
The demand for the produced gold in the international market affects the Group's profitability. Endomines has a valid multi-year sales agreement with Boliden Commercial AB. The agreement covers the sale of Endomines' entire production in Pampalo.
Exchange rate risk
The Group operates internationally and is exposed to exchange rate risks related to the EUR/USD exchange rate. All invoicing for the gold concentrate is in USD, while production costs and intra-group financing are denominated in both EUR and USD. Based on the sensitivity analysis of sales, the EUR/USD exchange rate should weaken by more than 30% from its current level before it would have a significant impact on the company's cash flow. The exchange rate risk consists of transaction risk for contractual items and translation risk for the conversion of the foreign subsidiary's financial statements into euros. There were no currency hedging agreements in force at the end of December 2025, but as part of the financing package signed on 30 April 2025, Endomines has agreed on readiness to implement currency hedging. An intra-group loan denominated in foreign currency between Endomines Finland Plc and Endomines Idaho LLC is considered a net investment in a foreign entity.
Interest Rate Risk
Interest rate risk describes the uncertainty in earnings, balance sheet, and cash flow caused by changes in interest rates. During 2025, Endomines entered into a floating-rate financing agreement, which exposes the company to cash flow risk due to changes in loan interest rates. The reference rate for the financial institution loan is the 12-month Euribor.
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Price risk
The group is exposed to price risk mainly through fluctuations in gold price. The price of gold is determined daily by the LBMA (London Bullion Market Association). The company's exposure to price fluctuations can be somewhat limited by entering into gold price hedging agreements. At the balance sheet date, there were no hedging agreements in place. The selection of counterparties for financial instruments is based on management's assessment of their reliability.
Credit Risk
Credit and counterparty risk refers to the risk that a counterparty to a transaction is unable to fulfil its obligations, thereby causing a loss to Endomines. In Endomines' case, credit and counterparty risk is primarily influenced by cash assets and credit exposures related to customers, including outstanding receivables and contractual transactions. To mitigate this risk, Endomines only engages with counterparties that have a high credit rating. The Group's counterparties for cash assets are Pohjois-Karjalan Osuuspankki and Nordea bank in Finland, as well as PlainsCapital Bank in the United States.
Over the past two years, the group has had only two customers: Boliden Commercial AB for flotation concentrate and K.A. Rasmussen AS for gravimetric concentrate. Management has no reason to expect credit losses due to counterparty insolvency. Based on management's judgment, Endomines has not recognized any expected credit loss allowances.
Liquidity risk
The company regularly assesses and monitors the adequacy of its liquidity. The evaluation of financing needs is based on an annual budget, a monthly updated financial forecast, a production forecast, and up-to-date cash flow forecast.
In January 2025, Endomines entered into a financing arrangement with its current owners for a total amount of up to MEUR 2.3 to cover preparatory work related to its strategy and other business needs. In April 2025, Endomines also entered into an agreement for a broader long-term financing arrangement of up to MEUR 12.0, that enables growth-oriented activities during the period of 2025 - 2026. According to company management's estimate, the anticipated financing need for the financial year 2026 will be covered by the financing agreements in place at the end of the reporting year, and by generated operating cash flows.
Capital management
The group's capital management objective is to ensure the normal operating conditions for the business, maintain an optimal capital structure, and minimize the cost of capital. The capital structure is primarily influenced by directing investments and the amount of working capital tied up in the business. The group's capital structure is monitored, among other things, through the net gearing ratio, which is calculated by dividing net interest-bearing debt by equity.
Environment and permits
The company's operations are dependent on exploration, mining and environmental permits as well as other permits and rights. Delays in permits or possible negative permit decisions may affect the achievement of production plans and long-term goals. In addition, the permit decisions include financial collateral, which may affect the company's financial position and available financial resources.
The operations are subject to environmental risks and environmental requirements, which are appropriately taken into account. Endomines has an up-to-date environmental restoration plan and the best experts in the field are used to prepare permits.
Mineral exploration
In line with its strategy, Endomines is investing significantly in exploration to increase its gold reserves. Exploration is uncertain by nature and involves financial risk-taking. Mineral exploration is dependent on permits and rights. Endomines' experienced experts, together with the exploration steering group and management team, plan exploration-related measures to achieve the goals.
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ENDOMINES
The effect of changes in exchange rate to intra-group loans
| Sensitivity analysis, EUR | 2025 | 2024 | ||
|---|---|---|---|---|
| Profit after tax | Equity | Profit after tax | Equity | |
| +1% change in exchange rate EUR-USD | 127,049 | 127,049 | 135,003 | 135,003 |
| -1% change in exchange rate EUR-USD | -124,533 | -124,533 | -135,003 | -135,003 |
Maturity profile based on financial liability agreements
| 2025 | Book value | Cash flow | 2026 | 2027 | 2028– |
|---|---|---|---|---|---|
| Non-current liabilities | |||||
| Loans from financial institutions | 4.9 | 4.9 | – | – | 4.9 |
| Lease liabilities | 0.1 | 0.1 | – | 0.1 | – |
| Convertible loans | 7.0 | 7.3 | – | 7.0 | – |
| Total non-current liabilities | 12.0 | 12.3 | – | 7.1 | 4.9 |
| Current liabilities | |||||
| Loans from financial institutions | 0.0 | 0.0 | 0.0 | – | – |
| Lease liabilities | 0.1 | 0.1 | 0.1 | – | – |
| Convertible loans | 1.6 | 1.6 | 1.6 | – | – |
| Accounts payable and other liabilities | 10.2 | 10.2 | 10.2 | – | – |
| Contract-based interest liabilities | 2.3 | 2.3 | 0.5 | 1.8 | – |
| Total current liabilities | 14.2 | 14.2 | 12.4 | 1.8 | – |
All of the Group's financial liabilities as at 31 December 2025 mature during the next three years.
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22. Inventory
| 2025 | 2024 | |
|---|---|---|
| Materials and supplies | 0.9 | 0.1 |
| Gold concentrate | 0.2 | 0.1 |
| Ore | 0.1 | 0.1 |
| Total | 1.1 | 0.4 |
23. Accounts receivable and other receivables
| 2025 | 2024 | |
|---|---|---|
| Accounts receivable | 7.7 | 3.1 |
| Other receivables | 0.0 | 0.0 |
| Accruals | 0.2 | 0.1 |
| Total | 7.9 | 3.2 |
Trade receivables are non-interest-bearing. The group has not recorded any impairment losses on trade receivables during the financial year. It is not part of the group's practices to obtain collateral for trade and other receivables.
The age distribution of accounts receivable
| 2025 | 2024 | |
|---|---|---|
| Not fallen due | 7.7 | 3.1 |
| Total | 7.7 | 3.1 |
24. Liquid assets
| 2025 | 2024 | |
|---|---|---|
| Cash in hand and at bank | 3.9 | 2.1 |
Cash and cash equivalents in the balance sheet include cash on hand and short-term bank deposits with a maturity of less than three months. Foreign currency items have been converted into euros at the exchange rate on the balance sheet date.
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ENDOMINES
25. Notes on Equity
The share capital of the parent company registered in the Finnish Trade Register as at 31 December, 2025, was MEUR 53.3, divided into 11,191,252 shares of equal value. Endomines Finland Oyj has one share class, and each share entitles the shareholder to one vote at the General Meeting. The nominal value of the share has not been defined.
| 2025 | 2024 | |
|---|---|---|
| Number of outstanding shares at the beginning of the period | 10,824,599 | 9,787,339 |
| Conversion of convertible loans | 1,141,315 | 1,034,690 |
| Disposal of Treasury Shares | – | 2,570 |
| Number of outstanding shares at the end of the period | 11,965,914 | 10,824,599 |
| Shares held by the parent company, at the beginning of the period | 5,430 | 8,000 |
| Disposal of Treasury Shares | – | -2,570 |
| Shares held by the parent company, at the end of the period | 5,430 | 5,430 |
| Total number of shares at the end of the period | 11,971,344 | 10,830,029 |
| Share capital, MEUR | 53.3 | 53.3 |
Treasury shares
As at 31 December 2025, the company held 5,430 of its own shares. There were no changes in treasury shares during the year.
Other Invested Equity
The reserve for invested unrestricted equity and the share premium reserve include other equity like investments and the subscription price of shares to the extent that it is not recorded in the share capital by a separate decision. Translation differences include the translation differences arising from the conversion of the subsidiary's equity in the consolidated financial statements, exchange differences on loans treated as net investments in foreign subsidiaries, and exchange differences arising from the translation of the income statement of foreign subsidiaries at the average exchange rate and the balance sheet at the exchange rate on the balance sheet date.
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ENDOMINES
26. Provisions
The provisions consist of the environmental restoration costs of the Pampalo and Friday mining areas. Endomines has developed an action plan for environmental restoration. An external engineering company has carried out a study on the environmental restoration costs of the mining sites in 2024, and a new study will be completed during financial year 2026. The restoration costs are calculated based on the best estimates of the service life of the mine, the size of surface areas to be restored and other costs related to the restoration of the environment.
In accordance with the long-term production plan, the economic service life of the Pampalo mine extends at least until the end of 2034 and that of the Hosko mining area until the end of 2028. The restoration of the Pampalo mining area is expected to begin in 2035 at the earliest, and the restoration of the Hosko mine area in 2029. For the Friday mining area in the United States, the restoration is expected to begin in 2032 at the earliest. Estimated future cash flows of restoration are discounted to present value. The amount to be recognised as a provision is in line with company management's best estimate.
| 2025 | 2024 | |||
|---|---|---|---|---|
| Restoration costs | Total | Restoration costs | Total | |
| Provisions 1 Jan | 7.5 | 7.5 | 2.9 | 2.9 |
| Additions | 0.0 | 0.0 | 4.3 | 4.3 |
| Discounting effect | 0.2 | 0.2 | 0.3 | 0.3 |
| Translation differences | -0.1 | -0.1 | 0.0 | 0.0 |
| Assets classified as held for sale | -0.8 | -0.8 | – | – |
| Provisions 31 Dec | 6.8 | 6.8 | 7.5 | 7.5 |
The restoration cost provision refers to the estimated costs of restoring the environment at the Pampalo, Ramepuro, Hosko and Friday mines. Discounting is reported as interest expenses. The assets, liabilities and provisions related to Friday mine have been classified as held for sale in the financial statements on 31 December 2025.
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ENDOMINES
27. Accounts payable and other liabilities
| 2025 | 2024 | |
|---|---|---|
| Accounts payable | 6.2 | 6.9 |
| Other liabilities | 4.1 | 1.1 |
| Accrued liabilities | 3.8 | 3.6 |
| Total | 14.1 | 11.7 |
Accounts payable are non-interest-bearing and are usually paid within 14–30 days. The carrying value corresponds to the fair value because the impact of discounting is not material, considering the short maturity of the liabilities. Group's credit risk is described in Note 21.
28. Contingent liabilities
Endomines has two active royalty agreements related to claims in the Ilomantsi area. Endomines entered into a royalty agreement in 1996, which becomes effective once the mining operations start. The royalty agreement, signed in 1996, concerns the claims located in the municipality of Ilomantsi and covers Hosko production area. The maximum royalty liability under the agreement is MEUR 2.5. During the financial year 2025, the realized royalty payment amounted to MEUR 0.0. The remaining maximum royalty liability is MEUR 2.5.
As a result of a business acquisition, Endomines entered into a royalty agreement in 2006 and it is tied to production volumes. This agreement covers claims located in the Ilomantsi area, as well as the Pampalo production area. The royalty liability will begin to materialize once the production threshold specified in the agreement is exceeded. The production threshold was not exceeded during the fiscal year 2025. The maximum royalty liability under the agreement is MEUR 1.5.
29. Related party events
The Group's related parties include the members of the Board and the members of the Management Team, including the CEO, and their close family members and the companies controlled by them. Transactions with related parties that are not eliminated in the consolidated financial statements are presented as related party transactions. With respect to shareholders, related parties include entities and persons who exercise control, joint control, or significant influence on the parent company.
Subsidiaries
| Name of the company | Principal operations | Domicile | Holding, % |
|---|---|---|---|
| Endomines Ltd | Mining operations | Finland | 100% |
| Kalvinit Ltd | Mining operations | Finland | 100% |
| Endomines Idaho LLC | Mining operations | United States | 100% |
Related party transactions
| Financial expenses | 2025 | 2024 |
|---|---|---|
| CEO | 0.0 | 0.0 |
| Long-term financial liabilities | 2025 | 2024 |
| CEO | 0.1 | 0.1 |
| Short- term accruals | 2025 | 2024 |
| CEO | 0.0 | 0.0 |
Long-term financial liabilities consist of convertible loans agreed with the CEO in 2023. The convertible loan with the CEO was executed under the same terms as the convertible loans agreed with other financing parties. The financial expenses for the CEO are the accrued interest on the convertible loan. One of the two convertible loans held by the CEO was converted into shares during the financial year 2025.
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ENDOMINES
Employee Benefits for the CEO and Executive Management
| CEO Compensation, EUR | 2025 | 2024 |
|---|---|---|
| Salaries and Fees | 357,959 | 361,863 |
| Pension Expenses | 103,721 | 64,016 |
| Total | 461,680 | 425,879 |
| Executive Management Compensation, EUR | 2025 | 2024 |
| --- | --- | --- |
| Salaries and Fees | 783,304 | 495,675 |
| Pension Expenses | 141,391 | 90,064 |
| Total | 924,695 | 585,739 |
Salaries and fees are presented on an accrual basis, except for pension expenses, which are presented on a cash basis. Management salaries and fees consist of short-term employee benefits and do not include share-based payments. Management compensation does not include post-employment or other long-term benefits. Pension benefits for key management personnel consist of pensions granted under the statutory pension scheme in Finland. The CEO has a voluntary pension benefit to supplement the statutory pension scheme which is arranged through a defined contribution plan. The group does not have any other voluntary supplementary pension arrangements.
| Salaries and fees paid to the Board, EUR | 2025 | 2024 |
|---|---|---|
| Jeremy Read | 7,600 | 27,155 |
| Markus Ekberg | 31,532 | 28,650 |
| Eeva Ruokonen | 27,779 | 28,355 |
| Jukka-Pekka Joensuu | 44,792 | 43,395 |
| Jukka Jokela | 24,966 | 25,250 |
| Kyösti Kakkonen | 20,154 | – |
| Total | 156,824 | 152,806 |
In financial year 2025, a total of EUR 36,000 of board fees was paid in shares. In financial year 2024, a total of EUR 34,500 of board fees was paid in shares.
Employee benefits paid to the CEO, Executive Management and the Board of Directors in total:
| EUR | 2025 | 2024 |
|---|---|---|
| Salaries and fees | 1,298,087 | 1,010,344 |
| Pension Expenses | 245,112 | 154,080 |
| Total | 1,543,198 | 1,164,424 |
ENDOMINES • ANNUAL REPORT
ENDOMINES
30. Events After the Balance Sheet Date
- On 13 January 2026, Endomines announced the appointment of Minna Karttunen as new CFO as of 2 February 2026
- On 23 January 2026, Endomines announced the conversion of the convertible loan into shares. As a result of the exchange, 21,976 new shares in Endomines Finland Plc will be registered and issued. The total number of shares and votes in Endomines will increase from 11,971,344 shares and votes to 11,993,320 shares and votes. After registration, the new shares correspond to approximately 0.18 per cent of the total number of shares and votes in the company
-
On 3 February 2026, Endomines announced the conversion of the convertible loan into shares. As a result of the exchange, 14,650 new shares in Endomines Finland Plc will be registered and issued. The total number of shares and votes in Endomines will increase from 11,993,320 shares and votes to 12,007,970 shares and votes. After registration, the new shares correspond to approximately 0.12 per cent of the total number of shares and votes in the company
-
On 25 February 2026, Endomines announced the completion of the divestment of its gold deposits in Idaho, USA. There have been no changes to the terms of the transaction compared to those previously disclosed. The deposits have been classified as held for sale according to IFRS 5 standard in the financial statements as at 31 December 2025.
- On 25 February 2026, Endomines announced the conversion of convertible loans into shares. As a result of the exchanges, 90,770 new shares in Endomines Finland Plc will be registered and issued. The total number of shares and votes in Endomines will increase from 12,007,970 shares and votes to 12,098,740 shares and votes. After registration, the new shares correspond to approximately 0.75 per cent of the total number of shares and votes in the company
ENDOMINES • ANNUAL REPORT
ENDOMINES
Parent Company's Financial Statements and Notes 2025, FAS
ENDOMINES
Parent company's financial statements and notes
Parent Company's income statement
| EUR | Note | 2025 | 2024 |
|---|---|---|---|
| Revenue | 2 | 2,236,911 | 1,707,516 |
| Other operating income | 3 | 31,808 | 3,450 |
| Employee expenses | 4 | -1,340,173 | -1,138,799 |
| Depreciation and impairment losses | 5 | -16,582 | -2,409 |
| Other operating expenses | 6 | -1,729,244 | -1,186,712 |
| Operating result | -817,281 | -616,953 | |
| Financial income | 7 | 2,814,390 | 4,619,167 |
| Impairment of fixed assets investments | 7 | -3,266,000 | -2,408,000 |
| Financial expenses | 7 | -6,527,361 | -3,617,141 |
| Total financial income and expenses | -6,978,971 | -1,405,974 | |
| Result before appropriations and taxes | -7,796,252 | -2,022,927 | |
| Income taxes | - | 644 | |
| Result for the period | -7,796,252 | -2,022,284 |
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ENDOMINES
Parent Company's Balance sheet
| EUR | Note | 2025 | 2024 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Tangible assets | |||
| Machinery and equipment | 8 | 81,283 | 45,768 |
| Investments | |||
| Holdings in Group companies | 9 | 8,997,774 | 12,263,774 |
| Receivables from Group companies | 10 | 24,597,205 | 24,026,389 |
| Total non-current assets | 33,676,262 | 36,335,931 | |
| Current assets | |||
| Non-current receivable | |||
| Other receivables | 10 | 9,200 | – |
| Accruals | 10 | 135,848 | – |
| Current receivables | |||
| Receivables from Group companies | 11 | 22,633,444 | 19,639,865 |
| Other receivables | 11 | 9 | – |
| Accruals | 11 | 120,006 | 81,179 |
| Cash in hand and at banks | 12 | 3,793,906 | 106,653 |
| Total current assets | 23,289,533 | 19,827,696 | |
| TOTAL ASSETS | 60,368,676 | 56,163,627 | |
| EUR | Note | 2025 | 2024 |
| --- | --- | --- | --- |
| EQUITY AND LIABILITIES | |||
| Equity | 13 | ||
| Shares, holdings or similar capital | 80,000 | 80,000 | |
| Other reserves | |||
| Invested unrestricted equity reserve | 32,362,101 | 22,489,831 | |
| Retained earnings (losses) | 14,569,185 | 16,591,468 | |
| Profit (loss) for the period | -7,796,252 | -2,022,284 | |
| Total unrestricted equity | 39,135,033 | 37,059,016 | |
| Total equity | 39,215,033 | 37,139,016 | |
| Liabilities | |||
| Non-current liabilities | 14 | ||
| Loans from financial institutes | 5,059,532 | 35,223 | |
| Liabilities to Group companies | 662,789 | 664,000 | |
| Convertible loans | 8,850,000 | 15,100,000 | |
| Total non-current liabilities | 14,572,321 | 15,799,223 | |
| Current liabilities | 15 | ||
| Loans from financial institutes | 17,297 | 11,160 | |
| Liabilities to Group companies | 3,540,630 | 96,157 | |
| Accounts payable | 146,651 | 264,125 | |
| Other liabilities | 169,968 | 258,243 | |
| Accrued expenses | 2,706,776 | 2,595,703 | |
| Total current liabilities | 6,581,321 | 3,225,388 | |
| Total liabilities | 21,153,643 | 19,024,611 | |
| TOTAL EQUITY AND LIABILITIES | 60,368,676 | 56,163,627 |
ENDOMINES·ANNUAL REPORT
ENDOMINES
Parent Company's Cash Flow Statement
| EUR | 31.12.2025 | 31.12.2024 |
|---|---|---|
| Cash flow from operating activities | ||
| Profit before tax | -7,796,252 | -2,022,284 |
| Adjusted for the following: | ||
| Depreciation and impairment | 3,282,582 | 2,410,409 |
| Unrealized exchange rate differences from intragroup items | 3,100,247 | -1,426,811 |
| Financial income and expenses | -18,659 | 408,601 |
| Other adjustments | -6,208 | 21,448 |
| Cash flow before the change in working capital | -1,438,291 | -608,637 |
| Change in working capital | ||
| Increase (+) / decrease (–) in debt to group companies | 3,402,880 | – |
| Increase (–) / decrease (+) in accounts payable and other receivables | -3,023,305 | -2,006,651 |
| Increase (+) / decrease (–) in accounts payable and other liabilities | -73,263 | 181,013 |
| Cash flow from operating activities before financial items and taxes | -1,131,979 | -2,434,274 |
| Interest paid | -195,583 | – |
| Interest received | 663 | – |
| Net cash flow from operating activities | -1,326,899 | -2,434,274 |
| Cash flow from investing activities | ||
| --- | --- | --- |
| Investments in machinery and equipment | -52,097 | -48,177 |
| Loans granted to Group companies | -2,242,786 | -2,210,000 |
| Net cash flow from investing activities | -2,294,882 | -2,258,177 |
| Cash flow before financial items | -3,621,782 | -4,692,451 |
| Cash flow from financing activities | ||
| Loan drawdowns | 7,322,496 | 4,648,536 |
| Repayments of loans | -13,461 | -2,152 |
| Net cash flow from financing activities | 7,309,035 | 4,646,384 |
| CHANGE IN FINANCIAL ASSETS | 3,687,253 | -46,067 |
| Financial assets at the beginning of the period | 106,653 | 152,720 |
| Financial assets at the end of the period | 3 793 906 | 106 653 |
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ENDOMINES
Notes to the Parent Company's Financial Statements
1. Accounting principles
General
The financial statements of Endomines Finland Oyj have been prepared in compliance with the accounting principles and regulations regarding the preparation of financial statements according to the Finnish Accounting Act and the Accounting Regulation.
Conversion of foreign currency items
Foreign currency transactions are recognized in the functional currency at the exchange rate applicable on the transaction date. Items in a foreign currency have been converted into the functional currency at the exchange rates applicable at the end of the reporting period.
Tangible assets
The balance sheet value of tangible assets consists of acquisition cost less accumulated planned depreciation and impairments. Planned depreciation is made on tangible assets based on the estimated useful life of the assets.
Depreciation plans for tangible assets:
Machinery and equipment 5 years
Valuation of non-current assets
Subsidiary shares
Investments in non-current assets are valued at acquisition cost less impairment losses. The balance sheet value of subsidiary shares is reviewed annually by comparing the subsidiary's local accounting equity with the balance sheet value of the shares. The company records an impairment loss if the equity value falls below the balance sheet value of the shares.
Valuation of receivables and liabilities
Receivables are valued at the lower of nominal value or probable value. Liabilities are valued at their nominal value or a higher reference value. At the end of the financial year, the parent company has EUR 12.5 million in long-term and EUR 13.4 million in short-term receivables from Endomines Idaho LLC. The valuation of the receivables has been reviewed as part of the group's impairment testing, which is based on the market value of the gold reserves managed by Endomines Idaho LLC and the Friday mine under maintenance.
Sales revenue recognition
The revenues of the parent company consist of services provided by the parent company to subsidiaries. Revenue is recognized when the services are performed.
Income Taxes
The income taxes recognized in the income statement include taxes calculated on the basis of Finnish tax regulations for the profit of the period and any adjustments to previous periods' taxes. The Finnish income tax rate is 20%. Deferred taxes have not been recognized.
Pension arrangements
Employees' pension security has been arranged with an external pension insurance company. Pension expenses are recognized as an expense in the income statement.
| 2. Revenue | 2025 | 2024 |
|---|---|---|
| Business services to group companies | 2,236,911 | 1,707,516 |
| Total | 2,236,911 | 1,707,516 |
| 3. Other operating income | 2025 | 2024 |
| --- | --- | --- |
| Rental income from machinery and equipment, group | 13,800 | 3,450 |
| Other operating income | 18,008 | - |
| Total | 31,808 | 3,450 |
| 4. Employee expenses | 2025 | 2024 |
| --- | --- | --- |
| Salaries and fees | -1,091,526 | -963,251 |
| Pension expenses | -207,063 | -140,738 |
| Other employee expenses | -41,585 | -34,810 |
| Total | -1,340,173 | -1,138,799 |
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ENDOMINES
| Salaries and fees paid to the management | 2025 | 2024 |
|---|---|---|
| CEO | 357,959 | 361,863 |
| Board of Directors | 156,824 | 152,806 |
| Average number of personnel | 7 | 6 |
| 5. Depreciation | 2025 | 2024 |
| Planned depreciation on machinery and equipment | -16,582 | -2,409 |
| 6. Other operating expenses | 2025 | 2024 |
| --- | --- | --- |
| Rent paid for facilities | -33,251 | -35,092 |
| Legal and consulting services | -594,314 | -462,457 |
| Auditing | -50,703 | -48,081 |
| Other assignments of the auditor | -25,262 | -9,563 |
| Others | -1,025,715 | -631,519 |
| Total | -1,729,244 | -1,186,712 |
| 7. Financial income and expenses | 2025 | 2024 |
| --- | --- | --- |
| Financial income | ||
| Interest income from group companies | 1,583,099 | 1,697,429 |
| Exchange rate gains | 1,231,268 | 2,921,714 |
| Others | 23 | 25 |
| Total | 2,814,390 | 4,619,167 |
| Impairments | ||
| --- | --- | --- |
| Impairment of fixed assets investments, group | -3,266,000 | -2,408,000 |
| Impairments, total | -3,266,000 | -2,408,000 |
Financial expenses
| Interest expenses to group companies | -28,955 | -5,912 |
|---|---|---|
| Interest expenses on convertible loans | -1 515,485 | -2,025,118 |
| Interest expenses from financial institutes | -201,236 | – |
| Exchange rate losses | -4,332,409 | -1,502,387 |
| Others | -449,276 | -83,724 |
| Total | -6,527,361 | -3,617,141 |
| Financial income and expenses total | -6,978,971 | -1,405,974 |
| --- | --- | --- |
| 8. Tangible assets | 2025 | 2024 |
| --- | --- | --- |
| Acquisition cost 1 Jan | 48,177 | – |
| Additions | 52,097 | 48,177 |
| Acquisition cost 31 Dec | 100,273 | 48,177 |
| Accumulated depreciation and impairment losses 1 Jan | -2,409 | – |
| Planned depreciation | -16,582 | -2,409 |
| Accumulated depreciation and impairment losses 31 Dec | -18,990 | -2,409 |
| Carrying value 31 Dec | 81,283 | 45,768 |
| 9. Investments | 2025 | 2024 |
| --- | --- | --- |
| Shares in group companies | ||
| Acquisition costs 1 Jan | 12,263,774 | 14,671,774 |
| Additions | – | – |
| Impairment | -3,266,000 | -2,408,000 |
| Acquisition cost 31 Dec | 8,997,774 | 12,263,774 |
| Capital loans granted to subsidiaries | ||
| --- | --- | --- |
| Acquisition cost 1 Jan | 252,282 | 252,282 |
| Increase | – | – |
| Acquisition cost 31 Dec | 252,282 | 252,282 |
| Investments total | 9,250,056 | 12,516,056 |
ENDOMINES • ANNUAL REPORT
ENDOMINES
Impairments on non-current assets in the 2025 financial year include impairments on Endomines Idaho LLC shares of EUR 3,266,000. (2024: EUR 2,408,000).
| 10. Non-current loan receivables | 2025 | 2024 |
|---|---|---|
| From group companies | 24,597,205 | 24,026,389 |
| Non-current rental deposits | 9,200 | – |
| Non-current accruals | 135,848 | – |
| Total | 24,742,254 | 24,026,389 |
| 11. Current receivables | 2025 | 2024 |
| --- | --- | --- |
| From group companies | 22,633,444 | 19,639,865 |
| Other receivables | 120,015 | 81,179 |
| Total | 22,753,459 | 19,721,043 |
| 12. Cash in hand and at banks | 2025 | 2024 |
| --- | --- | --- |
| Assets held in the parent company’s bank accounts and bank deposits of less than three months | 391,026 | 106,653 |
| Group account | 3,402,880 | – |
| Total | 3,793,906 | 106,653 |
| 13. Equity | 2025 | 2024 |
| --- | --- | --- |
| Share capital 1 Jan | 80,000 | 80,000 |
| Additions | – | – |
| Share capital 31 Dec | 80,000 | 80,000 |
| Invested unrestricted equity reserve 1 Jan | 22,489,831 | 15,133,228 |
| Additions | 9,872,269 | 7,356,603 |
| Invested unrestricted equity reserve 31 Dec | 32,362,101 | 22,489,831 |
| Retained earnings 1 Jan | 14,569,185 | 16,570,020 |
| Transfer of treasury shares | – | 21,448 |
| Retained earnings 31 Dec | 14,569,185 | 16,591,468 |
| Result for the period | -7,796,252 | -2,022,284 |
| Total | 39,215,033 | 37,139,016 |
| Distributable funds 31 Dec | ||
| --- | --- | --- |
| Invested unrestricted equity reserve | 32,362,101 | 22,489,831 |
| Retained earnings | 14,569,185 | 16,591,468 |
| Result for the period | -7,796,252 | -2,022,284 |
| Funds available for distribution from equity | 39,135,033 | 37,059,016 |
| 14. Non-current liabilities | 2025 | 2024 |
| --- | --- | --- |
| Liabilities to Group companies | 662,789 | 664,000 |
| Convertible loans | 8,850,000 | 15,100,000 |
| Loans from financial institutions | 5,059,532 | 35,223 |
| Total | 14,572,321 | 15,799,223 |
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| 15. Current liabilities | 2025 | 2024 |
|---|---|---|
| Accounts payable | 146,651 | 264,125 |
| Loans from financial institutions | 17,297 | 11,160 |
| Cash pool debt | 3,402,881 | – |
| Liabilities to Group companies | 137,749 | 96,157 |
| Other liabilities | 169,968 | 258,243 |
| Accrued expenses | 2,706,776 | 2,595,703 |
| Total | 6,581,321 | 3,225,388 |
| 16. Related party events | 2025 | 2024 |
| --- | --- | --- |
| Long-term loans granted to subsidiaries | ||
| Endomines Ltd | 11,848,795 | 10,273,817 |
| Endomines Idaho LLC, loan 1 | 2,411,820 | 2,094,897 |
| Endomines Idaho LLC, loan 2 | 10,084,309 | 11,405,393 |
| Capital loans granted to subsidiaries | ||
| Kalvinit Ltd | 252,282 | 252,282 |
| Interest receivables related to long-term loans | ||
| --- | --- | --- |
| Endomines Ltd | 1,825,316 | 1,325,927 |
| Endomines Idaho LLC, loan 1 | 7,108,573 | 7,833,163 |
| Endomines Idaho LLC, loan 2 | 4,718,442 | 4,376,780 |
| Kalvinit Ltd | 46,941 | 35,943 |
| Loans granted by subsidiaries to the parent company | ||
| --- | --- | --- |
| Kalvinit Ltd | 662,789 | 664,000 |
| Interest liabilities related to loans | 123,900 | 94,945 |
Endomines Finland Oyj has granted loans totaling 25 million euros to its subsidiaries for their business needs.
The parties to the loans will agree on the repayment schedule separately, and no repayment period has been defined as the balance sheet date. The interest rates on loans to Finnish subsidiaries are tied to the six-month Euribor rate, plus 2%. The interest rate is reviewed semi-annually, on January 1st and July 1st. As of the balance sheet date, 31 December, 2025, the interest rate is 4.051%. The same loan terms apply to the loan granted by Kalvinit Oy to the parent company.
The interest rate on loans granted to Endomines Idaho LLC is 8.3%. For loan number 1 granted to Endomines Idaho LLC, most of the loan principal was converted into Endomines Idaho LLC's equity during the 2022 financial year. In the parent company's financial statements, the converted loan principal has been recorded as part of the acquisition cost of the subsidiary shares.
No collateral has been granted for intra-group loans.
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Confirmation of the Board of Directors and the CEO
We confirm that
- the consolidated financial statements prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union and the financial statements of the parent company prepared in accordance with the laws and regulations governing the preparation of financial statements in Finland give a true and fair view of the assets, liabilities, financial position and profit or loss of the company and the undertakings included in the consolidation taken as a whole;
- the Board of Directors' report includes a fair review of the development and performance of the business and the position of the company, and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.
Signatures on the Board of Directors' Report and Financial Statements
Espoo 26 March 2026
Kari Vyhtinen, CEO
Jukka-Pekka Joensuu, Chair of the Board
Kyösti Kakkonen, Vice Chair of the Board
Eeva Ruokonen, Member of the Board
Jukka Jokela, Member of the Board
Markus Ekberg, Member of the Board
The Auditor's Note
A report on the audit performed has been issued today.
Oulu, on date of electronic signature
KPMG Oy Ab
Audit firm
Antti Kääräinen
APA
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Auditor's Report
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To the Annual General Meeting of Endomines Finland Oyj
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Endomines Finland Oyj (business identity code 3215519-7) for the year ended 31 December 2025. The financial statements comprise the consolidated balance sheet, statement of comprehensive income, statement of changes in equity, statement of cash flows and notes, including material accounting policy information, as well as the parent company's balance sheet, income statement, statement of cash flows and notes.
In our opinion
- the consolidated financial statements give a true and fair view of the group's financial position, financial performance and cash flows in accordance with IFRS Accounting Standards as adopted by the EU
- the financial statements give a true and fair view of the parent company's financial performance and financial position in accordance with the laws and regulations governing the preparation of financial statements in Finland and comply with statutory requirements.
Our opinion is consistent with the additional report submitted to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under good auditing practice are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report.
We are independent of the parent company and of the group companies in accordance with the ethical requirements that are applicable in Finland and are relevant to our audit, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
In our best knowledge and understanding, the non-audit services that we have provided to the parent company and group companies are in compliance with laws and regulations applicable in Finland regarding these services, and we have not provided any prohibited non-audit services referred to in Article 5(1) of regulation (EU) 537/2014. The non-audit services that we have provided have been disclosed in note 9 to the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Materiality
The scope of our audit was influenced by our application of materiality. The materiality is determined based on our professional judgement and is used to determine the nature, timing and extent of our audit procedures and to evaluate the effect of identified misstatements on the
financial statements as a whole. The level of materiality we set is based on our assessment of the magnitude of misstatements that, individually or in aggregate, could reasonably be expected to have influence on the economic decisions of the users of the financial statements. We have also taken into account misstatements and/or possible misstatements that in our opinion are material for qualitative reasons for the users of the financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. The significant risks of material misstatement referred to in the EU Regulation No 537/2014 point (c) of Article 10(2) are included in the description of key audit matters below.
We have also addressed the risk of management override of internal controls. This includes consideration of whether there was evidence of management bias that represented a risk of material misstatement due to fraud.
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THE KEY AUDIT MATTER
HOW THE MATTER WAS ADDRESSED IN THE AUDIT
Valuation of capitalized mineral resource exploration and evaluation expenditure (Basis of Preparation for the consolidated financial statements Notes 11, 16 and 19 to the consolidated financial statements)
- The intangible assets stated for the Group are predominantly comprised of capitalized mineral exploration and evaluation expenditure related to the gold deposits located in Finland and the United States, the book value of whose on 31 December 2025 is EUR 30.6 million.
- No depreciation is recorded on the assets comprised of capitalized mineral exploration and evaluation expenditure, but the assets are tested for potential impairment during each financial period.
-
The valuation of mineral exploration and evaluation expenditure is perceived as a key audit matter based on elements of uncertainty present in the estimation and materiality of the balance of the book value.
-
Our audit procedures included, among others:
- We evaluated the appropriateness of the accounting treatment of capitalized mineral exploration and evaluation expenditure classified as held for sale during the financial year, in relation to the principles of the IFRS accounting standards.
- We assessed the appropriateness of the method used in the valuation.
- We tested the mathematical integrity of the valuation model and validated the material underlying input parameters used in the calculations.
- We compared the assumptions used in valuation with developments in gold market price and other variables' marketplaces.
- We assessed the appropriateness of notes to the accounts concerning mineral exploration and evaluation expenditure.
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The valuation of shareholdings in Endomines Idaho LLC and receivables from the company in the parent company financial statements (Basis of Preparation for the parent company financial statements and Notes 9-11, 16)
- Investments in and receivables from the subsidiary Endomines Idaho LLC, total EUR 29.7 million, comprise a significant proportion of the stated assets in the parent company financial statements and potential impairment would consequently be reflected on the total balance of distributable funds.
- The book value of parent company shareholdings in Endomines Idaho LLC has been impaired by EUR 3.3 million during the financial year. At the end of the financial year, the book value of the shareholdings is stated at EUR 3.8 million. At the end of the financial year, the parent company is also stating a balance of long-term receivables in the amount of EUR 12.5 million and short-term receivables in the amount of EUR 13.4 million from Endomines Idaho LLC.
-
Owing to inherent element of estimation uncertainty present in the valuation and significance of the book value of the assets, the valuation of shareholdings in Endomines Idaho LLC and receivables from the subsidiary is perceived as a key audit matter.
-
The valuation of parent company shareholdings in Endomines Idaho LLC and receivables from the subsidiary have been assessed as part of impairment testing of capitalized mineral exploration and evaluation expenditure for the Group, which is based on the market value of gold reserves administered by Endomines Idaho LLC and the valuation of the Friday mine currently placed on care and maintenance. Additionally, we have reviewed the calculations prepared by the company comparing the equity and reserves stated by Endomines Idaho LLC in accordance with the local accounting standards with the book value of the shares.
- We assessed the appropriateness of notes to the accounts concerning subsidiary shareholdings and receivables.
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Responsibilities of the Board of Directors and the Managing Director for the Financial Statements
The Board of Directors and the Managing Director are responsible for the preparation of consolidated financial statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU, and of financial statements that give a true and fair view in accordance with the laws and regulations governing the preparation of financial statements in Finland and comply with statutory requirements. The Board of Directors and the Managing Director are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors and the Managing Director are responsible for assessing the parent company's and the group's ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting. The financial statements are prepared using the going concern basis of accounting unless there is an intention to liquidate the parent company or the group or cease operations, or there is no realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with good auditing practice will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
As part of an audit in accordance with good auditing practice, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
-
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the parent company's or the group's internal control.
-
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of the Board of Directors' and the Managing Director's use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the parent company's or the group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the parent company or the group to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events so that the financial statements give a true and fair view.
- Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the group financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.
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We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Other Reporting Requirements
Information on our audit engagement
We were first appointed as auditors by the Annual General Meeting on 25 May 2023, and our appointment represents a total period of uninterrupted engagement of 3 years.
Other Information
The Board of Directors and the Managing Director are responsible for the other information. The other information comprises the report of the Board of Directors and the information included in the Annual Report but does not include the financial statements or our auditor's report thereon.
Our opinion on the financial statements does not cover the other information.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit, or otherwise appears to be materially misstated. With respect to the report of the Board of Directors, our responsibility also includes considering whether the report of the Board of Directors has been prepared in compliance with the applicable provisions.
In our opinion, the information in the report of the Board of Directors is consistent with the information in the financial statements and the report of the Board of Directors has been prepared in compliance with the applicable provisions.
If, based on the work we have performed, we conclude that there is a material misstatement of the other information, we are required to report that fact. We have nothing to report in this regard.
Oulu, Finland, 26 March 2026
KPMG OY AB
Audit Firm
ANTTI KÄÄRIÄINEN
Authorised Public Accountant, KHT
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