SUMMARY OF YEAR END REPORT 2018
View of the mine site including office building, water treatment plant, ore storage facility and plant building
FOURTH QUARTER 2018
- Investments were 114 MSEK (5)
- Other income was 0.1 MSEK (0)
- Net profit was -42 MSEK (0)
- Earnings per share was -0.32 SEK (‑0.00)
- Sales agreement with Boliden for both concentrates finalised
- First blast conducted on October 16th and open pit mining commenced
- The construction of the tailings ponds and ore storage areas have been completed
- The Company filed an application for amendments to the current environmental permit. The existing and planned mining operations are based on the current permit which is valid until further notice.
THE FINANCIAL YEAR 2018
- Investments were 285 MSEK (26)
- Equity was 303 MSEK (328)
- Cash and cash equivalents were 123 MSEK (164)
- Cash flow was -44 MSEK (5), of which investments were -299 MSEK and financing 258 MSEK
- Other income was 0.1 MSEK (0.1)
- Net profit was -61 MSEK (-15)
- Earnings per share was –0.48 SEK (-0.14)
- Dividend is not proposed
Comparative figures refer to the corresponding period of the previous year.
CEO TIMO LINDBORG
The Silver Mine project proceeded according to the schedule in 2018. The fourth quarter has been fascinating and rewarding for the Company. Sotkamo Silver has intensively built the Silver Mine to get it completed aiming for a production start in March 2019. We have been successful in our subcontractor choices. We have employed for more than 160 persons during the construction and installation phase.
One of Sotkamo Silver's important goals was reached with the first open pit blast in October. The underground mine development was started simultaneously. The Silver Mine will produce silver-gold-lead and zinc-silver concentrates for sales. These will be supplied to Boliden smelters, Kokkola in Finland and Rönnskär in Sweden.
The existing operations and the future mining operations are based on the current environmental permit that applies until further notice. The mining volume, settling ponds, and tailings storage facility comply with the valid environmental permit. The ponds have been commissioned in December and filled with water. In addition to the tailings pond, a total of five settling ponds have been constructed.
Due to concerns on water quality we have invested in water treatment by introducing mechanical water treatment already at this stage. With this initiative, we are already preparing ourselves for capacity increase and taking environmental aspects into account and increasing the efficient control of production.
I warmly welcome our new employees to the Company's personnel. Together with our other staff, they have a strong competence, focus, and passion in various areas of mining production and development of mining. The personnel's broad knowledge and composition increase the possibility of further developing the Company after the production start.
The company has an open house day on June 5, 2019, when residents of the area, shareholders, all stakeholders, and other interested parties are welcome to visit the Silver Mine.
EVENTS AFTER THE REPORTING PERIOD
- It has been decided to introduce a mechanical water treatment plant at the Silver Mine as part of a four-stage water treatment process. This is part of the mine's investment in the BAT technology (BAT = Best Available Technology).
|Price per share SEK||3,90||3,84|
|Quota value SEK||1,37||1,37|
|Market Cap. MSEK||510||458|
|Trades 2018 NGM, pcs||5 269 006||8 223 067|
|Trades 2018 Nasdaq HEL, pcs||50 829 559||94 562 258|
|Number of shares||130 783 299||119 313 694|
|Share capital SEK||179 414 417||163 679 896|
Sotkamo Silver will provide financial information on the following dates
- Annual report 2018, March 21, 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