August 5th 2020
I started as the CEO of the company just two days before the second quarter ended. I feel very proud and humble in the front of this opportunity and look forward to work with the owners, colleagues and other stakeholders for the success and sustainability of Sotkamo Silver.
The fall of the metal prices in March and the ensuing downturn impacted to our invoicing rates during Q2 and final invoicing prices of earlier concentrate deliveries. This double hit is seen in our top and bottom lines.
However, we successfully continued the streamlining of our operations to improve our productivity and to optimise our processes to reduce the operative costs per mill feed ton. I thank the operations team of the company for the significant progress we have made during the first half of the year. This work creates a solid foundation and will help to deliver results in the future. During the reporting period we have started the pilot testing of the ore sorter. This development project will potentially further improve our energy and material efficiency and enable lower production costs per produced metal unit in the future.
In addition to this, we completed the successful rights issue and received a strong supportive message from our shareholders and investors as the issue was oversubscribed.
Looking forward to Q3, silver and gold prices have continued to improve, and actually silver price has doubled since its lowest in March.
The last few months have shown the power of change and uncertainty but simultaneously also the opportunities which are rising. We have realized the possibilities of the new tools and ways of working which will make us more flexible and more competitive in the future. People have seen that despite of the exceptional times in the society, they have been able to do their best and contribute to the success. I believe that we’ll come out from the Covid-19 crisis more powerful, more resilient and more prepared to the challenges of the future.
Erkki Kuronen, CEO