Financial development
Fourth quarter, 1 October – 31 December 2025
Full-year, 1 January – 31 December 2025
Significant events during the fourth quarter 2025
Significant events after the period
CEO Comments
Continued Investment in Exploration Strengthen Blötberget’s Development Potential
During Q4 2025, work focused on the pre-feasibility study as well as continued investment in exploration at Blötberget. The first indicative results were analyzed and communicated to the market in January, together with new opportunities to enhance the project’s potential, primarily by now including the Southern Väsman field in the study and project. The exploration program continues into 2026 with the aim to increase total mineral resources by 35 million tonnes, with the indicative results pointing to an increase in the upper half of the target once the study’s mineral resources estimate is completed. In parallel, the technical study indicates that a by-product, primarily an apatite concentrate containing phosphorus and rare earth elements, could create additional business value and strengthen the project’s strategic importance. The pre-feasibility study is ongoing, and the final results are expected in Q3 2026.
The exploration results to date indicate a potential increase in mineral resources in the upper half of the target to raise the total mineral resources by 35 million tonnes, once all exploration results have been incorporated into the pre-feasibility study and the updated mineral resources estimate. The drilling program was completed after the end of the period, including what has preliminarily been assessed as a very strong drill intercept at Blötberget, with approximately 45 meters of massive, high-grade magnetite mineralization.
The revised mining method and the improved understanding of the mineralization at Blötberget indicate in the ongoing study that an increase in the production of ultra-high-grade iron ore concentrate of approximately 8 million tonnes, from 16 to 24 million tonnes, may be possible. This 50% increase is expected to further strengthen the project’s long-term revenue potential once the final pre-feasibility results are available.
Geotechnical analyses have provided a more nuanced understanding of the mineralization. Mining will need to be conducted more selectively than previously assumed, which limits the potential to increase the annual production rate. To maintain the Company’s objectives and ensure a more robust project, alternative approaches to increase annual production of ultra-high-grade iron ore concentrate, including parallel supply of ore from nearby deposits, have been evaluated. Accordingly, the Board has decided after the period’s end to include the Southern Väsman field in the ongoing study to strengthen the project’s revenue potential.
The technical study regarding a by-product containing phosphorus and rare earth elements has also shown that such a by-product, primarily an apatite concentrate, could become a valuable complement to iron ore production. This would not only improve the project’s profitability but also contribute to Europe’s need for strategic raw materials — an aspect that has become increasingly important in today’s geopolitical and industrial context. Following the period’s end, the Board has therefore decided to include a by-product, primarily an apatite concentrate, in the ongoing pre-feasibility study to further strengthen the project’s revenue potential and strategic importance.
The further development of the project, including Blötberget, the Southern Väsman field, and a by-product, will increase the energy demand. Dialogues are therefore ongoing with local and regional grid operators to secure long-term energy supply. Alternative solutions are also being evaluated to temporarily meet energy needs until additional capacity can be allocated and delivered. The work with the Swedish Transport Administration is progressing well, and the Company has been granted conditional support of SEK 40 million for the planned railway connection.
The Company continues to advance environmental and permitting matters in close collaboration with legal advisors, experts, and authorities. The planned operational changes, including the by-product and expanded activities at the Southern Väsman field, are now being integrated into the permitting work, with the aim of presenting a clear plan in conjunction with the completion of the pre-feasibility study in Q3 2026.
The European steel industry remains in a challenging position, affecting certain planned transition projects in the region. However, only marginal slowdowns are observed in the transition and in developments in North Africa and the Middle East, where several projects continue with unchanged momentum. Demand for high-quality iron ore products is therefore expected to remain over the long term in the Company’s target markets. Iron ore prices were largely stable during Q4, while the US dollar weakened, particularly toward the end of the quarter. Short-term market fluctuations affect sentiment and the financing environment but do not alter the project’s fundamental industrial logic.
Work in 2026 is fully focused on delivering a strengthened and broadened outcome from the expanded pre-feasibility study in Q3. Our objective is to thereby provide a clear path forward for the next phase of the project and continue developing the Company toward a position as a supplier of ultra-high-grade iron ore and apatite concentrates, creating long-term value for shareholders.
Ronne Hamerslag
Chief Executive Officer
Nordic Iron Ore AB (publ)