Endomines Finland Oyj

Endomines Finland Oyj is a junior gold producer headquartered in Espoo, Finland, operating primarily in Europe. The company's portfolio consists of 2 projects, comprising 1 operating mine and 1 exploration project, in addition to several early-stage exploration prospects. Key assets include Pampalo-Hosko. The business model integrates production from both underground and open-pit sources, leveraging a centralized processing plant with available capacity to treat ore from multiple sites. This operational approach enhances efficiency and supports scalable growth. The company utilizes both flotation and gravimetric methods for concentrate production, providing flexibility in its processing capabilities. A key differentiator is the strategic initiative to diversify into the production of critical minerals, which is intended to create new value streams alongside its primary product. The organization positions itself as a pioneer in sustainable and ethically produced metals, emphasizing strong local engagement and aiming to increase market awareness of responsibly sourced raw materials. This focus on sustainability is integral to its competitive strategy and long-term value creation, with an objective to secure a formal designation as a critical minerals producer.

Strategic focus centers on significantly scaling the company by developing its primary operational corridor into a globally significant production area. The core of the business strategy is the continuous enhancement of production, achieved by optimizing existing sites and systematically bringing new areas online. A key pillar of this growth is an active and targeted exploration program designed to substantially increase the resource base and secure long-term operational viability. For non-core assets located outside its main operational focus, the enterprise is pursuing a partnership model to leverage local expertise and funding, which will simplify the corporate structure and reduce costs without requiring significant capital investment. A foundational element of the strategy is a commitment to responsible production, which is used as a market differentiator to build a brand recognized for sustainability and transparency, thereby aiming to increase demand for its products.

The board of directors is composed of 5 members, whose terms extend until the 2025 Annual General Meeting, with oversight from a shareholders' nomination committee. The organization's leadership philosophy promotes a flat, agile, and non-bureaucratic culture centered on cooperation and shared objectives. Executive management includes a Chief Financial Officer, Chief Operations Officer, Chief Development Officer, and Chief Geologist, who operate under the CEO. To align leadership interests with performance, the company utilizes share-based incentive systems for key employees, with a new plan established for 2025–2027. The board has proposed that the result for the financial period be transferred to retained earnings and that no dividend be paid, reflecting a focus on reinvesting capital to support strategic growth initiatives.

Sustainability is a core component of the corporate strategy, formalized through the company's first sustainability report in 2024 and a Double Materiality Assessment. The program is built on specific, measurable goals, including achieving zero occupational accidents and maintaining a closed-loop water cycle, with 100% of process water being recycled in 2024. A key environmental target is to reduce CO2 emissions per unit produced by 5% annually, a goal that was met during the year. The updated sustainability program focuses on key areas such as carbon-free production, clean water, biodiversity preservation, and ethical governance. In 2024, the company undertook an extensive occupational safety development project in cooperation with the external firm dss+ to enhance its daily management systems, safety protocols, and key operational instructions, demonstrating a proactive approach to employee well-being.

The group's corporate structure consists of the parent company, Endomines Finland Plc, and 3 operational subsidiaries: Endomines Ltd, Endomines Idaho LLC, and Kalvinit Ltd. The ownership base is notably concentrated, with the 3 largest shareholders, Joensuun Kauppa Ja Kone Oy, Wipunen Varainhallinta Oy, and Mariatorp Oy, collectively holding over 47% of shares and votes as of December 31, 2024. The company's capital structure underwent changes during the period, with a total of EUR 7.4 million in convertible bonds being exchanged for 1,034,690 new shares in December 2024. This activity continued after the reporting period, with further conversions announced in January and February 2025, indicating an ongoing process of converting debt to equity. The company is actively seeking a partnership for its US-based operations to simplify its structure and reduce costs.