Interim management statement 1 January – 31 March 2024
CEO Dr Martin Edlund:” Minesto’s first quarter has been significant and lays the foundation for the company's path towards buildout of commercial arrays. We now have full focus on business development to secure commercial rollout”.
Significant events January – March 2024
Minesto verifies the Launch & Recovery method (LARS) for the first megawatt tidal kite Dragon 12 (1.2 MW, 25 tons). The operations developed for the Dragon 4 (100kW, 2.5 tons) were proven equally effective with the large-scale kites utilizing the same small work vessel.
The Swedish Energy Agency awards Minesto a 2.8 MSEK grant to support development and testing of next generation mooring system. The grant co-funds a project through which Minesto will advance performance of the unique tether system that moors the powerplant to the seabed.
The 9th of February, Minesto reaches an historic milestone: the utility-scale tidal powerplant Dragon 12 – rated at 1.2 MW – is commissioned and delivers its first electricity to the national grid in the Faroe Islands.
After the first two weeks of testing, the Dragon 12 functionality is verified and power production performance is satisfactory and as projected. All core operating functions such as starting, turning with the tidal flow and electricity generation have been successfully verified in its first phase of operation. Given the stable system behaviour, Minesto concludes the technology risks of scale-up have been significantly reduced.
On 26 February 2024, Minesto announced that the Board of Directors, conditional on the subsequent approval of an extraordinary general meeting, had resolved on a rights issue of units, consisting of new shares and warrants, of approximately SEK 120.5 million. The extraordinary general meeting on 14 March 2024 approved the Rights Issue. The subscription price in the Rights Issue was SEK 9.0 per Unit, corresponding to SEK 3.0 per share.
Minesto is awarded a place in the acceleration programme BAPSEA (Business Acceleration Programme Southeast Asia), strengthening Minesto’s business capabilities in the region. BAPSEA is a joint programme by the Swedish Energy Agency (SEA) and Business Sweden.
The company also strengthens the market activities in Australia and New Zealand by collaboration agreement with a local project developer, Hydrokite Project Development.
After the end of the period
The subscriptions, with the support of unit rights and the applications for subscription without the support of unit rights, corresponded to approximately 50.9 percent of the Rights Issue. Guarantee commitments corresponding to approximately 32.2 percent of the Rights Issue, were utilized. The Rights Issue hence provided the company with proceeds of approximately SEK 100.2 million before deduction of costs related to the Rights Issue. Upon full exercise of all the warrants of series TO4 the Company is expected to raise up to an additional approximately SEK 50.1 million before deduction of cost related to the exercise of the warrants
The Group in summary 1 January-31 March 2024
Total operating income amounted to SEK 6,791 thousand (12,691) and mainly included capitalised development work.
Operating loss amounted SEK –11,794 thousand (–6,045). 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 6,712 thousand (10,932) has been capitalised as development work.
At the end of the period, the intangible assets amounted to SEK 508,537 thousand (408,146), of which capitalised development costs amounted to SEK 492,016 thousand (392,763), and capitalised patent expenses of SEK 16,520 thousand (15,383).
Grants amounted to SEK 439 thousand (7,953) were accrued during the period, of which SEK 425 thousand (7,056) reduced the acquisition value of the capitalised development costs. During the period, payments of SEK 27,511 thousand (5,929) were received from public funding schemes, of which SEK 26,240 thousand (5,929) is approved claims and the remaining part is advance payments.
Cash flow amounted to SEK -1,844 thousand (78,391). At the end of the period, cash and cash equivalents amounted to SEK 13,595 thousand (114,016).
At the end of the period, equity amounted to SEK 511,171 thousand (545,120) divided into 160,732,694 shares (160,732,694), of which loss for the period was SEK –11,574 thousand (–5,637).
The Interim Management Statement is available at Minesto's web site: