Beowulf Mining Reports Q3 2025 Loss, Urgently Seeks Funding Amid Project Progress

Q3 2025 at a glance: loss narrowed, cash tight, funding now critical

Beowulf Mining’s unaudited Q3 and nine‑month update mixes decent operational progress with a very clear message on funding. The quarter’s loss per share almost halved year on year, costs edged lower, and exploration assets grew, but the cash position is thin and the company is seeking near‑term finance to keep advancing its projects.

Q3 administrative expenses	£340,209 (Q3 2024: £408,605)
Q3 loss	£339,609 (Q3 2024: £408,018)
Q3 basic and diluted loss per share	0.57 pence (Q3 2024: 1.05 pence)
Nine‑month loss before tax	£1,427,410 (2024 comparable: £1,384,496)
Cash at 30 September 2025	£362,020 (30 September 2024: £1,763,718)
Exploration and other intangible assets	£18,355,205 (30 September 2024: £15,586,309)
Swedish Depository Receipts (SDRs)	44,396,743 representing 74% of issued share capital

Kallak iron ore: transport studies and permit groundwork gather pace

In Sweden, subsidiary Jokkmokk Iron Mines AB pushed on with the Kallak Iron Ore Project. The team prepared for the Pre‑Feasibility Study (PFS – an engineering and economics study that shapes a project before full feasibility) and the Environmental Permit application.

• Baseline work along the concentrate transport corridor was completed, including nature value inventories.
• Reindeer and wildlife management planning was initiated along the Inlandsbanan railway, plus rail configuration optimisation.
• Initial studies were carried out for concentrate handling at the port of Narvik.
• Options to reduce impacts are being assessed, such as nitrogen‑free explosives and autonomous fully electric mining trucks.

Why it matters: transport and environmental baselines often determine a project’s permitting risk and capex profile. Progress here is a practical de‑risking step ahead of the PFS and the permit submission.

Grafintec in Finland: Kotka site secured and major tax credit application

Beowulf’s wholly‑owned subsidiary Grafintec moved the Graphite Anode Materials Plant (GAMP) forward with a site reservation in the Keltakallio industrial area, City of Kotka. The location offers low‑cost renewable energy and water, skilled labour and direct access to Finland’s largest container port, Hamina‑Kotka.

• First public meeting in Keltakallio held to present the project to residents.
• Application lodged for a Business Finland clean‑transition tax credit – total potential future tax credit of €131.5 million (£114.8 million) over 11 years. This would support GAMP if awarded.
• Exploration licence at Rääpysjärvi renewed for three years.

Why it matters: downstream processing is where graphite projects can capture value. A supportive site and potential state‑backed incentives could lower long‑run costs. Note that the tax credit is an application, not yet granted.

Kosovo exploration: licences pending while applications work through backlog

In Kosovo, Vardar Minerals focused on infill soil and grab sampling at Shala East. The Shala East licence expired, and a renewal application – halving the area – was formally lodged on 17 August 2025. Additional applications covering Mitrovica, Viti East, Viti North, Zvecan and the Shala licence (separate to Shala East) remain pending with the ICMM, which is working through a backlog after being reinstated in October 2024.

Why it matters: licences are the gateway to drilling and value discovery. Progress depends on the ICMM clearing the queue.

Funding now the main event: near‑term cash plus longer‑term options

After the May 2025 capital raise of £2.2 million gross (net £1.25 million after costs and repayment of a SEK 10 million bridging loan), the company expected funding to last into early 2026. However, management now says additional financing is required in the very near term to continue advancing projects and, if necessary, to cover costs on a care‑and‑maintenance basis.

Beowulf is speaking with providers in the UK and Sweden to secure near‑term finance without running a Swedish rights issue. Term sheets have been received and discussions are described as advanced, though there is no certainty of completion or terms.

Longer‑term financing paths being pursued

• Potential sale of 100% of Vardar for €4 million – non‑binding, subject to due diligence, with Heads of Terms being negotiated. Target timing: “coming months”.
• Grafintec ring‑fenced funding – adviser appointed to raise €5 million of equity in Grafintec; application submitted for a €7 million Business Finland Research, Development and Piloting loan. The loan can fund up to 70% of eligible costs for up to 10 years at a rate three percentage points below the base rate, or at least 1%.

These longer‑term proposals may take up to six months and are non‑binding, so the company is chasing short‑term working capital in the interim. Beowulf also continues to review EU‑backed schemes and talk to potential strategic and long‑term investors at corporate and asset level.

Cost discipline helps, but the balance sheet is thin

Q3 underlying administrative expenses fell to £340,209, helped by lower professional fees, reduced share‑based payment expense and lower director and staff costs. Despite that, the nine‑month loss before tax of £1,427,410 is broadly in line with last year, and period‑end cash was only £362,020. Finance costs for the nine months were £54,434, largely reflecting the short‑term bridging loan that was repaid in May.

On the positive side, exploration and other intangible assets rose to £18,355,205, led by Kallak at £12,080,998 and continuing development spend on GAMP. Currency movements helped too: cumulative translation losses in equity reduced by £1,272,193 to £1,123,741 as the Swedish Krona strengthened against Sterling.

Operational progress by asset: what stood out

Kallak iron ore (Sweden)

• PFS and Environmental Permit preparation continued.
• Key transport and environmental studies completed or initiated along the mine‑to‑railhead corridor and at Narvik port.
• Community and stakeholder engagement ongoing.

GAMP – Graphite Anode Materials Plant (Finland)

• Kotka site reservation secures a strong industrial location with renewable power and port access.
• Public consultation underway and potential €131.5 million tax credit applied for.

Kosovo (Vardar Minerals)

• Sampling work at Shala East; multiple licence renewals and applications pending with ICMM.

Risks, outlook and what could move the share price

The RNS again flags a material uncertainty over going concern due to the near‑term funding need. That is the key risk. Permitting timelines for Kallak and the pace of decision‑making at the ICMM in Kosovo are further variables. Commodity prices, particularly iron ore, also matter, as the company notes.

Potential catalysts over the next 3–6 months

• Announcement of near‑term financing – structure and cost will be scrutinised for dilution and flexibility.
• Progress on the non‑binding €4 million Vardar sale.
• Updates on Grafintec’s €5 million equity raise and the €7 million Business Finland loan application.
• Further steps towards the Kallak PFS completion and Environmental Permit submission.
• Any confirmation on the clean‑transition tax credit application for GAMP.

My take: progress on the ground, pressure in the treasury

Beowulf is doing the unglamorous but essential work that underpins permits and project economics. Kallak’s transport and environmental baselines, plus the Narvik port studies, move the iron ore project closer to a deliverable plan. In Finland, locking in Kotka as the site for an anode materials plant and applying for a sizeable tax credit are meaningful markers.

The rub is cash. With only £362,020 at period end and a stated need for near‑term financing, the balance sheet is the immediate swing factor. The funding plan has some smarter elements – a potential Vardar sale for non‑dilutive cash, and subsidiary‑level funding for Grafintec paired with low‑cost state support – but timing remains uncertain. Until financing lands, the going‑concern flag will overshadow the operational progress.

Net‑net: constructive project momentum, but the investment case hinges on what kind of funding the company can secure, how quickly, and at what cost to existing shareholders. That is where attention should be focused in the weeks ahead.