Mineral Resources 2011-12

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Business Concept, Objectives and Vision

The business concept of Sotkamo Silver AB is to develop profitable silver, gold and zinc deposits, primarily in Finland, and to move to project to the actual industrial mining production. The company will initially prioritise silver production. Read more »

Why Silver

Silver has been used for thousands of years as ornaments and utensils, for trade, and as the basis for many monetary systems. Of all the metals, pure silver has the whitest color, the highest optical reflectivity, and the highest thermal and electrical conductivity. Also, silver halides are photosensitive. Owing to the above properties, silver has many industrial applications such as in mirrors, electrical and electronic products, and photography, which is the largest single end use of silver. Silver's catalytic properties make it ideal for use as a catalyst in oxidation reactions; for example, the production of formaldehyde from methanol and air by means of silver screens or crystallites containing a minimum 99.95 weight-percent silver.

• Silver is a unique precious metal
• Silver price has high correlation with the gold price
• Produced primarily as a by-product
• Significant industrial applications
• Silver is a store of value
• Physical silver demand has risen significantly over the past years which reflects strong investorinterest
• ETF demand continues at record levels
• Silver is a versatile industrial metal
• New uses are developed at a staggering pace
• Relied upon in advancement of developed and emerging economies
• Increase in demand every year since 2001 – 2010 despite a rising silver price
• Demand is relatively inelastic to the price
• With strengthening global economy, strong recovery in industrial demand
• Global investments in silver rose by an impressive 40 percent in 2010 to 279.3 million troy ounces (Moz), resulting in a net flow into silver of $5.6 billion USD, almost doubling 2009’s figure.