Financial Reports

23. Aug 2018 09:45


Targets in the mine construction are according to schedule and budget

The processing plant in August 2018


  • Net profit was -7.9 MSEK (-2.4) and earnings per share were -0.06 SEK (-0.04).
  • The Group sales was 31 KSEK (60).
  • Investments were 50.4 MSEK (6.5).
  • Arto Suokas was appointed CEO of the subsidiary Sotkamo Silver Oy, Arttu Ohtonen was appointed executive vice president of Sotkamo Silver AB.
  • Topping-out ceremony was on June 28th and the constructions of the Silver Mine project commenced according to the planned production start in the beginning of 2019.


  • Net profit was -4.0 MSEK (-7.5) and earnings per share were -0.03 SEK (-0.12).
  • The Group sales was 54 KSEK (60).
  • Cash and cash equivalents was 326.3 MSEK (164.2) at June 30th, 2018.
  • Investments were 75.5 MSEK (12.3).
  • Equity was 362.0 MSEK (328.5) at June 30th, 2018.
  • In January the mill circuit to the concentrating plant was ordered from Outotec (Finland) Oy at a total price of 20 MSEK (2.0 MEUR).
  • The construction decision was made by the Board. The Silver mine project was fully financed with a financing package of totally 474 MSEK (46 MEUR).

Comparative figures refer to the corresponding period of the previous year for income and cash flow items and December 31st, 2017 for balance sheet items.


The construction of the Silver Mine continues according to the set timetable and cost framework and is constantly moving towards production. We focus on putting up the buildings and equipment and getting the production infrastructure ready. During the autumn, the equipment will be installed in the processing plant. The construction of the water treatment plant, ore mining and recruitment of employees will begin.

Sotkamo Silver has agreed with VAPO to develop a bioenergy-based solution for ventilation air heating as part of energy efficient and responsible underground mining. The solution is part of the continued development of sustainable mining, in which the company is committed to.

The silver price development correlates well with other raw material prices. The low-price level affects the valuations of silver mining companies. From a historical perspective, silver and other mining companies' shares are currently low-valued. This view is also supported by the gold-silver price ratio, which has recently been between 1/75 and 1/83 when it has been around 1/56 observed in the last 50 years.

Minerals are a prerequisite for sustainable development. Mining is needed in a circular economy together with recycling. Alternative sources of energy increase demand for metals; lithium, cobalt and nickel are significant battery metals that are remarkably noted today. However, it should be noted that silver is another battery metal, that is also used in high- and environmental technology. The reason for the increasing industrial demand for silver has been the use in high-tech automotive industry as part of the transition to electrification based on, for example, the solar energy. Silver demand in the automotive industry increased 5%, and 19% in the solar industry in 2017 compared with the previous year. Silver has a critical role in the transition to electric cars while the demand for solar energy is increasing at an accelerating rate. The industrial and technological demand of the silver is more than half of the total demand. The silver still has a big importance as an investment metal aside from gold. In the current global economy, the silver (industrial / batteries / electrification / automation / environment) demand is growing when the mine production is limited and has been less than the demand during the last 10 years.

Since mining production is lower than demand, silver production and demand-driven prospects support potential strong price development in silver. One might imagine that the silver and the silver mining companies could be an attractive investment for investors considering the global silver market situation. However, this affects the amount of investment silver stored in the vaults and its possible return through recycling to the industrial market. Price fluctuations can be rapid and significant in today's unstable world political situation.

Timo Lindborg


  • 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.
  • Change of the date of the General Annual Meeting to April 11th, 2019.


The share capital amounted to 163,679,896.48 SEK. The number of shares and votes are 130,783,299. Quota value was 1.37 SEK. On the last trading date, June 29, 2018, the market capitalisation was 504 MSEK (50 MEUR) at closing-date at a price per share of 3.85 SEK.


Sotkamo Silver will provide economic information on the following dates:

  • Interim report Q3 - November 15, 2018.
  • Year End Report 2018 - February 22, 2019.
  • Annual General Meeting – April 11, 2019. 


Timo Lindborg, CEO of Sotkamo Silver AB, tel. +358 40 508 3507

This information is information that Sotkamo Silver AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, on August 23rd, 2018, at 8.45 CET.

The official Stock Exchange Releases are given in Swedish, and there may be differences in the translated versions. In case of differences the Swedish version applies.


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 The Company's press releases and financial reports are distributed via Cision Sverige and are available on