Interim Management Statement 1 January–30 September 2021

CEO Dr Martin Edlund: “The development of Dragon Class demonstrates both the technology’s inherent competitiveness and our employees’ ability to efficiently refine the product with customer value in focus. There are further technical advances to be made in the future, but we are confident that the performance, robustness, and functionality of the Dragon Class sets the right platform for commercial scale-up.”

Significant events July–September 2021

In July, Minesto announced that the company had achieved further improved power production performance through upgrades and modifications to the DG100 power plant. Furthermore, key aspects of test operations and electricity production with the DG100 system have received third-party verification by DNV in accordance with international standards.
Minesto strengthened the company’s executive team to gear up the work for commercial roll-out of Minesto’s technology by appointing Elke Rosiers, with extensive experience from the energy industry and from turning new technology to business, as new Chief Marketing Officer.
In September, Minesto signed a two-year extension of its power purchase agreement with the electric utility company SEV for Minesto’s tidal energy site in Vestmannasund, Faroe Islands. In addition, Minesto announced that a new analysis concludes that Vestmannasund site has merits for expansion to a 4 MW commercial array.
Minesto introduced a new range of power plants – the Dragon Class – an upgraded design of the company’s Deep Green technology. With increased performance and decreased manufacturing costs, Dragon Class will be delivered and installed in all of Minesto’s ongoing projects as well as in the build-out of the company’s first array project.
The Swedish Energy Agency awarded Minesto a SEK 5.8 million grant. The grant co-funds a project through which Minesto will develop and verify a next generation tether system to facilitate the commercial scale-up of the company’s marine energy technology.

The Group in summary 1 January–30 September 2021

Total operating income amounted to SEK 31,202 thousand (33,078 thousand) and mainly included capitalised development work.
Operating loss was SEK –13,183 thousand (–9,470 thousand). The negative result is largely attributable to business development and administration related to technology development and includes costs such as personnel and consultants. Of the personnel costs, SEK 29,105 thousand (30,069 thousand) has been capitalised as development work.
At the end of the period, capitalised development costs amounted to SEK 275,919 thousand (204,486 thousand), in addition to capitalised patent expenses of SEK 14,077 thousand (13,091 thousand).
Grants of up to SEK 15,865 thousand (46,512 thousand) were accrued during the period, of which SEK 13,856 thousand (43,697 thousand) reduced the acquisition value of the capitalised development costs. During the period, payments of SEK 14,809 thousand (53,682 thousand) were received from public funding schemes, of which SEK 14,809 thousand (50,097 thousand) relates to approved claims and the remainder relates to advances.
Cash flow amounted to SEK 76,257 thousand (65,743 thousand). At the end of the period, cash and cash equivalents amounted to SEK 181,540 thousand (115,398 thousand).
At the end of the period, equity amounted to SEK 543,018 thousand (412,231 thousand) divided into 137,655,143 shares (128,281,555 shares), of which loss for the period was SEK –9,566 thousand (–9,404 thousand). During the period, SEK 140,144 thousand (108,750 thousand) was added to the company’s equity through the exercise of warrants (employee stock options and warrants).

The Interim Management Statement is available on Minesto’s website: www.minesto.com/investor/investor-information.

This disclosure contains information that Minesto AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 21-10-2021 07:00 CET.