Investing.com -- Nordic Mining ASA (Oslo: NOM) shares fell 6.3% on Tuesday following the company’s second-quarter results this morning, which highlighted a liquidity shortfall and slower-than-expected production ramp-up at its Engebø Rutile and Garnet facility.

The company reported an operating loss of NOK 154.3 million for the quarter, with operating expenses of NOK 122.1 million. Nordic Mining produced 1,262 tonnes of rutile and 10,127 tonnes of garnet during the period but recognized no revenue, pending resolution of discussions regarding product quality for shipments made during the quarter. Cash position stood at approximately NOK 150 million at quarter-end.

The stock decline came as Nordic Mining disclosed it has liquidity headroom only until September 4, 2026, following a deferred coupon payment and waivers. The company is working to secure additional liquidity of $10-15 million to fund operations through November 2026 and is engaging with bondholders, shareholders, and potential new investors to establish a sustainable capital structure.

"Operations at Engebø progressed in the quarter, increasing throughput and strengthening our operational routines. At the same time, we remain realistic about the challenges ahead and the time needed to reach full performance and reliability. This has created a need to address our liquidity situation, and we are now in constructive discussions with bondholders and shareholders to find a balanced, sustainable solution," said CEO Finn Ivar Marum.

The company has revised its production profile following a comprehensive ramp-up review, though it maintains its long-term ambition for Engebø to generate significant free cash flow once operating at capacity. Nordic Mining noted it has invested more than NOK 3 billion in the project.

Nordic Mining continues to operate following a Norwegian Supreme Court ruling that invalidated tailings disposal permits due to insufficient reasoning. The company expects a decision on its temporary permit application in September.