October 14th 2020
I am very excited to release the financial result of Q3 2020 and highlight some of our recent activities. The team at the Silver Mine has worked tirelessly to achieve the set goals but also had a chance to get some rest during the summer vacation period. The extraordinary times in the society and economy seem to continue and we must make our best efforts to adapt going forward.
Silver price achieved the seven year high in August after a quick rise from mid-July. Even the current price is two times higher than the lowest in March 2020. We got the double boost from this price rally and achieved the record revenue of 130 MSEK. The toplines of Q2 and Q3 illustrate how the changes of the metal prices impact the sales. The final sales price determination of silver and gold two months after the delivery increases the positive or negative impact of metal price changes both on net sales and profitability.
The Board of Directors and the Management have had fruitful discussions while revising the Company’s strategy. You have already seen some signs of the revised strategy as we have divested exploration assets in the Tampere and Bergslagen areas, and after Q3 period acquired new assets in the Kainuu region from Boliden. The revised strategy will be communicated in Q4. As a part of the strategy work, we are starting the evaluation of the refinancing alternatives to enable the next steps for Sotkamo Silver.
During Q3 we have been mining and producing from the underground mine between the levels 180 to 80 (meters below surface) and simultaneously we have been working with the development of the mine around 300 level where production will commence in the late 2020. At the concentrating plant we have maintained good operational reliability and recovery of the metals to our concentrates. This is demonstrated by the record through-put and silver production.
Piloting of the ore sorting has faced some delays due to the travel restrictions from abroad. However, achieved results of the piloting have been in line with the expectations. Preparations for the underground core drilling have been ongoing and drilling will commence in October. The focus of the core drilling program is to extend the life of the Silver Mine.
I look forward to work with our excellent team to develop the Company for the benefit of our stakeholders. Take care and stay safe!
Erkki Kuronen, CEO