SUMMARY OF YEAR END REPORT 2019
Press release Stockholm, February 14th, 2020
HIGHLIGHTS OF THE FOURTH QUARTER 2019
- Net sales were 86 MSEK (0)
- EBITDA was 5 MSEK (-10)
- EBIT -32 MSEK (-34)
- Cash and cash equivalents were 30 MSEK (123)
- Earnings per share were -0.38 SEK (-0.32)
- An impairment of -27 MSEK was done on the exploration rights in Norway and Sweden
- The production was about 418 000 ounces silver, 1 022 ounces gold, 337 tonnes lead, and 610 tonnes zinc in concentrates
- Milled tonnes were approx. 125 000 and average silver head grade 119 g/tonne
- Safety measurement LTIFR was 13
FULL YEAR 2019
- Net sales were 197 MSEK (0)
- EBITDA was 8 MSEK (-32)
- EBIT -75 MSEK (-54)
- Earnings per share were -0.75 SEK (-0.49)
- Investments were 185 MSEK (299)
- The production was about 1 000 000 ounces silver, 2 697 ounces gold, 932 tonnes lead and 1 915 tonnes zinc in concentrates
- Milled tonnes were approx. 343 000 and average silver head grade 107 g/tonne
- No dividend is proposed by the Board
Comparative figures refer to the corresponding period of the previous year.
CEO PAUL JOHNSSON
Sotkamo Silver has been an exploration company for many years, but as an operational mining company, we are at the beginning of our journey. Like expected, metal grades and mineral distribution in the ore zone vary greatly. This impacts the production and financial result of the company. Underground stope mining has succeeded well and metal recoveries into concentrates have been mostly on good level in spite of the grade fluctuation and ongoing optimisation of the process.
In the fourth quarter, the pyrite recovery line was introduced to comply with the environmental permit requirement. The pyrite flotation line worked mainly as expected but caused side effects due to reorganising of process flow and temporarily lowered silver recovery.
Despite of challenges, we produced one million ounces of silver that was our adjusted target for 2019. What makes me confident in the Company is the energy and the spirit how our employees manage unexpected challenges. Our personnel are eager to learn how to excel in the handling of the orebody, the crusher, the concentrating plant, and the general management of the Silver Mine, all with the safety in focus.
Sotkamo Silver AB owns, directly and through its subsidiary Sotkamo Silver Oy, mineral deposits containing silver, gold, zinc, and lead. The Company's main project is the Silver Mine in Sotkamo where the production ramp-up started during the first quarter of 2019 and was finalized by the end of August.
|Key figures, group||Q4 2019||Q4 2018||FY 2019||FY 2018|
|Equity ratio (%)||31||51||31||51|
|Earnings per share SEK||-0.38||-0.32||-0.75||-0.49|
|Cash liquidity (%)||35||230||35||230|
|Personnel at end of period||47||14||47||14|
|Milled tonnes approx.||125 000||0||343 000||0|
|Average Silver grade g/tonne||119||-||107||-|
In 2019, 343 000 tonnes of ore were milled, of which 125 000 tonnes during the fourth quarter.
During the fourth quarter, we produced approx. 418 000 ounces silver, 1 022 ounces gold, 337 tonnes lead, and 610 tonnes zinc. Since the start of production, we produced 2019 about 1 000 000 ounces silver, 2 697 ounces gold, 932 tonnes lead, and 1 915 tonnes zinc in concentrates.
EVENTS AFTER THE REPORTING PERIOD
No significant events after the reporting period.
ANNUAL GENERAL MEETING
Sotkamo Silver AB’s AGM is planned to be held on April 2nd, 2020. The Board will convene the meeting by a separate invitation.
No dividend is proposed by the Board.
- Annual report on March 12, 2020
- Q1 on May 29, 2020
- Q2 on August 5, 2020
- Q3 on October 28, 2020
- Q4 and year-end report 2020 on February 17, 2021
The reports are available on the Company webpage:
Stockholm, February 14th, 2019
Sotkamo Silver AB’s Board of Directors and CEO
Paul Johnsson, CEO of Sotkamo Silver AB, tel. +46 70 777 69 76
This information is information that Sotkamo Silver AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above on February 14th 2020, at 8.50 CET.
The official Stock Exchange Releases are given in Swedish and there may be differences in the translated versions.
ABOUT SOTKAMO SILVER AB
Sotkamo Silver AB's business concept is to exploit mineral deposits in the Nordic countries with positive social and environmental benefits. Sotkamo Silver owns mineral deposits, which contain silver, gold and tungsten in Finland and Sweden as well as zinc and gold in Norway. The Company's main development project is the Silver Mine project in the municipality of Sotkamo.
Sotkamo Silver applies SveMin's & FinnMin's own rules of reporting for public mining & exploration companies. Sotkamo Silver has chosen to publish mineral resources and ore reserves according to the internationally accepted JORC or NI 43-101 code. The company applies International Financial Reporting Standards (IFRS) as approved by the European Union.
Legal Entity Identifier (LEI): 213800R2TQW1OZGYDX93
The ticker symbol is SOSI in NGM Equity in Stockholm and SOSI1 in NASDAQ Helsinki.
ISIN-code for Sotkamo Silver shares is SE0001057910.
Read more about Sotkamo Silver on www.silver.fi
The Company's press releases, and financial reports are distributed via Cision Sverige and are available at www.silver.fi