CEO comments Q1/2021

April 29th 2021

Late last year we stated P700-project as one of the cornerstones of our development. P700 core drilling program of almost 5 000 meters was completed during the reporting period. The results will be used to update the geology and grade model for mine planning and mineral resource and ore reserve estimation. We have also strengthened our geology team.

Everyday life at the Silver Mine is about production. Our new Chief Operating Officer Mikko Jalasto started at the beginning of the year. He has taken a swift start and has initiated several workstreams to improve procedures to ensure seamless co-operation between the different functions of the company and ensure the efficient use of existing data to manage and steer daily production. I look forward to the outcome of the projects which will bring the performance of the Company to the next level.

Another key project has been preconcentrating, or in other words, ore sorting, project which we have advanced. Pilot testing of the ore sorting has progressed, and we are moving to the phase where engineering and design for full scale production can be started. We have now tested ore sorter both in summer and harsh winter weather conditions and gained valuable experience. Tests have included also longer runs where material has been processed for days to stock and we have been able to run sorted material through the mill. We have achieved targeted tons per hour through-put. Several tests have been performed to determine right parameters for sorting and to optimise metal recovery and capacity of the machine.

Our revenue reached 95 MSEK which was better than comparison period Q1/2020 and significantly better than Q4/2020. We faced high variance of metal grades which effected negatively to produced metal ounces and tons. Silver production during the Q1 was on the low end of the long-term range. High variance is part of the nature, but I am confident that the team has also taken it as an opportunity to learn and improve, the final target being better predictability and consequently, better profitability. I wish for all sunny spring and summer.

Erkki Kuronen, CEO

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