Nordic Resources (ASX: NNL)

The Opportunity: A High-Conviction Gold Play

In early 2025, Powerhouse identified a significant market dislocation: while the gold price had surged, gold equities, particularly in the micro-small cap space, had not seen a corresponding re-rating.

Nordic Resources (ASX: NNL), with its pending acquisition of advanced Finnish gold projects, presented a compelling opportunity met our criteria (tailwinds, management, asymmetry and catalysts):

• We knew the Executive Director and rate him highly
• Mineralisation starts from surface and 90% of the resource is contained within 150m, resulting in a favourable low strip ratio using shallow open pit design
• Upside to MRE – open in most directions at its flagship project (Kopsa) and historical resource models under review at its other two projects (Kimala and Hirsikangas
• The jurisdiction was world class (later named #1 by the Fraser Institute), albeit underappreciated by ASX investors
• Trucking distance and rail transport available to two underutilised mills, providing the potential for a low capex regional gold play
• Substantial pipeline of catalyst unlocked with additional funding

The Challenge

The company had fallen short of its raising target just two months prior and had limited flexibility to issue new shares. We felt its valuation was suffering from being in a cum issue position.

The board would only consider a “top up placement” on the previous terms ($0.06 per share). Although this represented a premium, the opportunity and entry point of c.A$16.50 EV/resource ounce AuEq was compelling.

We also felt a strengthened board, a more supportive shareholder register and a sound capital market strategy would assist with unlocking shareholder value.

The Solution

To maximise the outcome for NNL, we:

• Led with conviction by committing to a cornerstone investment at $0.06 per share
• De-risked the opportunity by setting conditions, including the appointment of renowned geologist Malcolm Norris (known to Powerhouse) as Chairman and the completion of the acquisition
• Crafted the equity story that justified premium pricing and secured funding with an entirely deferred settlement (subject to shareholder approval)
• Executed a targeted ECM strategy introducing Nordic to a new base of leading Australian institutional and professional investors for the first time
• Reshaped the shareholder register with long-term, supportive investors
• Activated roadshow across Brisbane, Sydney, Melbourne and Perth – meeting with tier 1 resource focused funds, national desk briefings with mid-tier stockbroking firms

The Outcome

Our strategic approach and cornerstone support resulted in a heavily oversubscribed placement, a significantly strengthened market position, and materially enhanced register that have been supportive in the aftermarket.

Powerhouse remains engaged to provide ongoing corporate advice and capital markets support.

“We are grateful for the ongoing support received from… our new partners Powerhouse Ventures in particular, throughout this process. We look forward to progressing the gold project portfolio in Finland and unlocking the significant valuation upside for shareholders.”

Robert Wrixon, Executive Director, Nordic Resources

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Please note: Per our merchant capital model, the Powerhouse Group of Companies and its representatives may hold shares and/or a fee-paying mandate with this company.