REG - Beowulf Mining PLC - Tax Credit Application to support GAMP development

Beowulf MiningAnnouncement

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RNS Number : 3065Z  Beowulf Mining PLC  15 September 2025

 

 

15 September 2025

 

Beowulf Mining Plc

 

("Beowulf" or the "Company")

 

Business Finland Tax Credit Application to support GAMP development

 

Beowulf (AIM: BEM; Spotlight: BEO) is pleased to announce that its wholly
owned Finnish subsidiary, Grafintec Oy ("Grafintec"), has applied for a tax
credit under the Business Finland managed scheme aimed at promoting large
clean-transition investments (the "Tax Credit").  The total potential future
Tax Credit amounts to €131.5 million over 11 years and will support the
development of Grafintec's Graphite Anode Materials Plant ("GAMP") in the
Keltakallio industrial area for battery value chain companies in Kotka,
Finland. The decision on the Tax Credit application is expected before the end
of 2025.

 

The Tax Credit is a government support mechanism that allows eligible
companies to offset part of their capital investment costs for large-scale
clean energy transition projects against future taxes payable, thereby
enhancing the project's cash flow, reducing the overall financial burden and
making the projects more attractive to investors. It is designed to support
large investments focused on decarbonising industrial production processes,
improving energy efficiency, and advancing climate-neutral industries, and
includes energy storage and production of related equipment and raw materials.
By lowering effective operating costs, improving cash flow, and reducing
financial risk, the tax credit enhances the competitiveness of Finnish
producers against non-European competitors.

 

Grafintec is evaluating further EU and Business Finland support mechanisms and
intends to apply for recognition as a Strategic Project under the EU's
Critical Raw Materials Act ("CRMA") when the second application window opens
which is anticipated during 2025.

 

Further, Beowulf continues to review all funding opportunities across the
portfolio with a focus on sources of capital that are non-dilutive to existing
shareholders. Any potential funding that the Company would receive would be
utilised to further its current primary objectives, which are to fund the
pilot testing phase at the GAMP and complete the pre-feasibility study ("PFS")
and environmental permit application for the Kallak iron ore project in
Sweden.

 

The Company is also engaged in discussions with potential strategic partners
at corporate and asset levels.

 

Ed Bowie, Chief Executive Officer of Beowulf, commented:

 

"Business Finland has been an advocate of Grafintec for a number of years
through the significant support that we have received from their various
initiatives. The tax credit is another excellent initiative to support
investments in the green transition. These initiatives are essential if Europe
is to get close to the targets set by the Critical Raw Materials Act in terms
of secure domestic raw material supply chains. The application for these tax
credits is just one of the potential funding routes we are considering across
the portfolio as we look to progress the Company's key GAMP and Kallak
projects."

 

Rasmus Blomqvist, Managing Director of Grafintec, commented:

 

"The tax credit has the potential to be a game-changer for Grafintec. It would
strengthen our competitive position and enhance our attractiveness for
investors and off-takers. With a focus on establishing a secure and
sustainable European supply chain for battery materials, the GAMP is
well-aligned with the objectives of the scheme."

 

 

Grafintec and GAMP Project Overview

 

Grafintec is positioning itself as a future leading independent producer of
high-performance anode materials, supporting the rapid expansion of Europe's
lithium-ion battery industry. The company is developing a cost-efficient and
environmentally sustainable processing technology, underpinned by Finland's
abundant and low-cost renewable energy. Unlike conventional methods,
Grafintec's GAMP process avoids the use of highly toxic reagents and
energy-intensive operations. Instead, it utilises readily available chemicals,
primarily sodium hydroxide ("NaOH") and sulphuric acid, under low to moderate
temperature conditions. Optimisation work has also demonstrated the potential
to recycle a significant proportion of reagents, contributing to both reduced
costs and lower environmental impact.

 

The GAMP is planned to be located at the Keltakallio industrial area in Kotka,
Finland, a strategic site with established infrastructure, strong logistics
connections, and access to clean energy. Grafintec's phased development
strategy will establish a scalable, modular plant, initially producing 25,000
tonnes of Coated Spherical Purified Graphite ("CSPG") annually, enough to
supply approximately 350,000 electric vehicles (EVs) per year. Phase 2 aims to
scale production to 75,000 tonnes of CSPG per year, enabling the powering of
over 1 million EVs annually.

 

GAMP Financial Highlights

 

Based on the PFS completed in March 2025, the economics from Phase 1 are
highly attractive, with a post-tax Net Present Value using a discount rate of
8% ("NPV(8)") of €924 million and a post-tax internal rate of return ("IRR")
of 37% over 25 years. The initial capital cost of €225 million has a payback
period of just 3 years from first production, generating €120 million in
free cash flow ("FCF") and €150 million in EBITDA annually at full
production. Expansion to 75,000 tonnes per year in Phase 2 is projected to
deliver a post-tax NPV(8) of €2.2 billion and annual FCF of €361 million.
The impact of the tax credit, if granted, will further enhance the project's
economics and attractiveness.

 

 

Enquiries:

 

 Beowulf Mining plc
 Ed Bowie, Chief Executive Officer          ed.bowie@beowulfmining.com

 SP Angel
 (Nominated Adviser & Joint Broker)
 Ewan Leggat / Stuart Gledhill / Adam Cowl  Tel: +44 (0) 20 3470 0470

 Alternative Resource Capital
 (Joint Broker)
 Alex Wood                                  Tel: +44 (0) 20 4530 9160

 BlytheRay
 Tim Blythe / Megan Ray/Alastair Roberts    Tel: +44 (0) 20 7138 3204

                                            beowulf@blytheray.com (mailto:beowulf@blytheray.com)

 

 

About Beowulf Mining plc

 

Beowulf Mining is a mining company with main activities in exploration and
development in Sweden, Finland, and Kosovo. Beowulf's portfolio is diversified
by commodity, geography, and stage of development of the projects, and
consists primarily of iron ore, graphite, gold, and base metals. Beowulf
Mining is headquartered in London, England.

 

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