Lumina Sustainable Materials A/S

Development in activities and financial and economic position




Net loss for the year was DKK 114.035k. During the financial year 2022/23, the Company obtained additional financing of US$15.0 through a long-term loan from Cordiant Capital Inc. and its affiliates (“Cordiant”) and Romeo Fund – Flexi and its affiliates (“Romeo”) (together with Cordiant, the “Lenders”). To fulfill the strategy, the management had identified capital projects on site to improve the production. With these changes and improvements, the Company will be able to enter sales contracts. The strategy has been adapted to stimulate a broader demand for Anorthosite in several industries and in vastly different applications. With new products in the corporate portfolio the Management has been in dialogue with buyers representing multiple markets, potentially securing the Company with several revenue streams. The Company is still committed to provide Greenspar products for the E-glass-, Paint filler, anocrete (CO2-free cement) and other new markets, but as a mean to diversify, the Company is in the process of developing more applications. The Company has continued providing samples for potential buyers, throughout 2022 and 2023. The Company is quite confident that new products will be introduced to new markets in 2023/24. The Company’s financial performance is dependent on several factors. Any revenues the Company may earn from its operations in the future will be from the sale of minerals. However, prices and markets for minerals are cyclical, dificult to predict, volatile, subject to government negotiation and controls and affected by changes in domestic and international, political, social and economic environments. These changes in events can seriously affect the financial performance of the Company. Lumina is looking into a very busy and interesting year.



Post COVID and War in Ukraine In the aftermath of the Covid-19 Pandemic and the ongoing war in Ukraine the world experienced an increase in energy prices and inflation. Lumina was already engaged in providing materials for tests on various markets in Europe prior to the war in Ukraine, and the Company is now producing to the European e-glass market despite the uncertainty in Europe. Further commercial negotiations are planned to take place within other markets both in Europe as well as in USA, hence the Company has already taken more steps towards the point where a positive cashflow can be reached. (i) Over the last year and a half, the global market experienced a signifficant increase in freight costs and though we have seen a drop in prices, a normalization of freight rates is not expected in the near term. As Lumina Sustainable Materials is dependent on exporting products to North America and Europe, the Company will be exposed to this continuous high level of freight costs and the Company must continue its focus on optimizing cost structure on production costs as well as logistical costs to become competitive on the world market. (ii) The Company has experienced significant increases in the prices for construction materials, process equipment and spare parts needed for the changes in the production on site as well as a significant increase in the delivery time for several machine parts and building materials which has delayed the projects, which the Company had scheduled for the year. In response to the COVID-19 pandemic, the Greenlandic Government initiated and implemented financial packages to help private companies. However, given the conditions to become eligible for such help, Lumina Sustainable Materials has not received any financial support from the Greenlandic Government. The Government allowed mining companies to take out 50% of the funds placed on the Escrow Account for Reclamation. Lumina Sustainable Materials made use of this option, and though this fund was scheduled to be paid back in 2022, this has now been postponed and the funds need to be repaid to the escrow account in late 2023. On the more positive side of consequences, the Company has had success recruiting and expanding its workforce. Positions which were previously held by foreigners have now been occupied by local employees. It is still challenging hiring employees with higher educations or special mining experiences combined with management experiences, hence the Company has still had to hire foreign employees, but in lower numbers.