SUMMARY OF INTERIM REPORT JULY-SEPTEMBER 2018
The installation of grinding mil shell starts
THIRD QUARTER 2018
- Investments were 95.8 MSEK (7.0)
- Other income was 0 KSEK (17)
- Net profit was -17.2 MSEK (-7.9)
- Earnings per share was -0.13 SEK (‑0.07)
- Well experienced Management team of the Silver Mine is complete
- The Company commences open-pit and underground mining with contractor Tapojärvi Oy
- The Company will develop the deployment of bioenergy together with VAPO Oy for the heating of the Silver mine.
- Kainuu ELY-center issued a statement on Sotkamo Silver’s Environmental Impact Assessment report.
- The construction of the dams, settling ponds and the open pit of the Silver mine project began in early July.
- Investments were 171.2 MSEK (23.0)
- Equity was 344,8 MSEK (327.9)
- Cash and cash equivalents was 192.7 MSEK (178.4), on top of the Cash the Company has 84 MSEK (0) on escrow account for the Silver Mine project (reported as other receivables)
- Other income was 54 KSEK (77)
- Net profit was -21.1 MSEK (-15.3)
- Earnings per share was –0.17 SEK (-0.14)
Comparative figures refer to the corresponding period of the previous year.
CEO TIMO LINDBORG
We have been successful in our contractor choices. The co-operation has been smooth, and the project is progressing well. The construction site had a staff of about 120 people during the equipment installation phase in September.
The device and process equipment installation continues in the concentrating plant and the mining site, and the installation of grinding mills and process automation has started. We presume that setup tests preparations and test runs can be initiated according to schedule at the beginning of 2019, after the completion of device and equipment installations which is currently underway. The plan is to start up the production at the end of the March and to establish the commercial production of Silver Mine after that.
The warm weather has had a positive impact on infrastructure and construction works. The reliable and competent main contractors as E. Hartikainen Oy and Kaitos Oy have accomplished the essential works of the dams and settling ponds. Their long-term and extensive experience of construction work, and pond constructions have been for significant benefit to the project.
The experienced companies which have specialised in construction works, the mining and metal production and circulation economy are our partners with the significant knowledge and experience in the mining industry and treatment of concentrates. The high technological expertise of Tapojärvi Oy gives a solid base to our co-operation in mining production and mining contract work with the versatile supply chain model. We worked together already in the project phase and continue now in the mining supply chain. We will deliver the concentrates of our battery metals silver, lead and zinc to the Boliden smelters in Kokkola and Rönnskär, which are the closest smelters to Silver Mine in Sotkamo. Deliveries will bring logistical and economic benefits to us and decrease the carbon footprint in transports. We are delighted that Sotkamo Silver has been selected to deliver the concentrates to the sustainable and responsible operating smelters.
We have completed our management team for Silver Mine. The management team brings strong competence in various aspects of mining production and development of mining operations. Their appointment into the Company has strengthened the ability to take Silver Mine into production phase on schedule and further develop the Company.
EVENTS AFTER THE REPORTING PERIOD
- Sotkamo Silver’s wholly-owned subsidiary, Sotkamo Silver Oy, has entered into the off-take agreement for silver concentrates and zinc concentrates from Silver Mine to Boliden’s Kokkola smelter in Finland and Rönnskär smelter in Sweden.
- The estimated value of deliveries during the four years contract period is about EUR 120 million at current metal prices. The first concentrate shipments are planned to start in end of March 2019.
|Price per share SEK||3.77||4.00||3.84|
|Quota value SEK||1.37||1.37||1.37|
|Market Cap. MSEK||493||477||458|
|Number of shares||130,783,299||119,313,694||119,313,694|
|Share capital SEK||179,414,417||163,679,896||163,679,896|
The nominating committee to the Annual General Meeting 2020 in Sotkamo Silver AB consists of:
- Leena Siirala (Chairman), General Councel, Ilmarinen Mutual Pension Insurance Company.
- Timo Kärkkäinen, Investment Director, Suomen Malmijalostus Oy
- Mauri Visuri, VD, Teknoventure Oy
The secretary of the nominating committee is Lawyer Bertil Brinck, from A1 Advokater, Stockholm. Bertil Brinck accepts bills and suggestions and answers the sherholders questions about the nominating committee
Bertil Brinck can be reached by phone; +46 8 545 811 00, or e-mail email@example.com
Sotkamo Silver will provide financial information on the following dates
- Year End Report 2018, February 22, 2019.
- Annual General Meeting, April 11, 2019.
- Interim report Q1, May 14 2019
- Interim report Q2, August 23 2019
- Interim report Q3, November 15 2019
- Year End report, February 21 2020
The full report and other financial statements are available at the Company’s home page:
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 and gold in Finland 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 respective rules of reporting for public mining & exploration companies. Sotkamo Silver has chosen to report 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 on www.silver.fi