The Financial Supervisory Authority of Norway published the findings from its review of Nordic Mining ASA’s financial reporting, covering selected accounting matters in the 2024 annual financial statements and disclosures in the third-quarter 2025 interim report. The supervisor identified shortcomings around the accounting for borrowing costs linked to the company’s Orion royalty financing, provisions and disclosures for mine closure and rehabilitation obligations, and disclosure of going concern risks and covenants, but decided not to pursue the corrective orders it had previously notified. On the 2024 annual report, the review focused on the treatment of a NOK 47.9 million gain recognised after the company updated estimates of future payments under a royalty agreement in which Nordic Mining received USD 50 million and is obliged to pay Orion Resource Partners 11% of future operating revenues from the Engebø mine for up to 90 years. Nordic Mining capitalised NOK 111.1 million of borrowing costs related to the royalty obligation in 2024 and recognised the NOK 47.9 million catch-up effect as financial income, while Finanstilsynet assessed that the catch-up effect should have been treated as part of net borrowing costs under IFRS 9 and therefore reduce the amount eligible for capitalisation under IAS 23. Finanstilsynet also flagged missing liquidity risk maturity disclosures for the royalty obligation under IFRS 7, and a lack of provisions and disclosures under IAS 37 for closure and rehabilitation obligations, including environmental monitoring costs that it assessed arose when marine deposition started in 2024; Nordic Mining has confirmed it will address these matters in its 2025 annual report. On the third-quarter 2025 interim report, Finanstilsynet concluded there was a material uncertainty about going concern at the time of reporting due to the risk of breaching a royalty-agreement covenant requiring “stable commercial production” by 31 March 2026, which could trigger an immediate termination sum, and it considered that covenant and going concern disclosures should have been updated under IAS 1 and IAS 34. Finanstilsynet requested Nordic Mining to provide written, concrete information on where and how the identified matters are corrected in the first statutory financial report that implements the changes compared with the 2025 annual report, within two weeks after that report is published.
Norwegian Finanstilsynet 2026-04-21
Financial Supervisory Authority of Norway ends Nordic Mining reporting review without issuing the proposed correction orders
The Financial Supervisory Authority of Norway reported findings from its review of Nordic Mining ASA’s 2024 annual financial statements and third-quarter 2025 interim report, identifying deficiencies in accounting for borrowing costs under the Orion royalty financing, mine closure and rehabilitation provisions, and going concern and covenant disclosures. The authority will not pursue previously notified corrective orders; Nordic Mining has committed to address the issues in its 2025 annual report and must later provide written detail on the corrections.