Drillcon Group's quarterly and annual reports.

DRILLCON Q2 REPORT

The second quarter was characterized by continued favorable price levels for metals and minerals, along with sustained investment appetite in the market despite a turbulent global environment. Our order book remains strong at approximately SEK 1 200 million, and the intensified market efforts initiated at the end of last year are now making a clear impact across several segments, resulting in new contracts and an expanded customer portfolio. The quarter confirms the value of standing on multiple legs: when one segment faces setbacks, the group as a whole provides support, something we will continue to develop. As our third segment grows in volume, it will progressively reduce the company's sensitivity to the disruptions that are a natural part of operating in the mining and minerals industry, thereby strengthening our resilience going forward.

Effects of the production stoppage
During the second quarter, we continued working to limit the financial consequences and ensure a controlled, safety-first restart, in close collaboration with the customer, trade unions, and our own staff. During the second quarter, we continued working to limit the financial consequences and ensure a controlled, safety-first restart, in close collaboration with the customer, trade unions, and our own staff.

Developments in other segments

Our market efforts continue to generate results and inquiries from new customers. In the Nordics segment, we have signed several new raiseboring contracts since the end of last year, some of which will commence in the third quarter. During the quarter, we also signed a contract with Skanska Sverige related to SKB's SFR facility,  further confirmation of our technical leadership in advanced drilling solutions. These new contracts are expected to contribute to higher volumes and improved capacity utilization going forward. In the Central Europe segment, our deep-drilling project in Belgium has started up as planned, with production developing very well and marking an important milestone in our continued expansion in the region. In the Iberia and Spain segment, production is now cautiously increasing in line with rising demand for exploration activities. In addition, our Spanish operations have signed an agreement to drill a ventilation shaft valued at approximately SEK 16 million.

Events after the end of the period & market outlook

After the end of the period, we further strengthened our contracted production volume, including an agreement with the gold mine Dragon Mining and the copper mine Nussir, both starting up in the third quarter. We continue to see strong investment appetite within the mining industry, with much indicating that both expansion and replacement investments will continue.

Patrik Rylander - CEO