Press release: Stockholm, 5 August 2020 8.45 CET


  • Net sales was 67 MSEK (30)

  • EBITDA was 0 MSEK (-20)
  • EBIT was -22 MSEK (-32)
  • Earnings per share was -0.34 SEK (-0.26), before and after dilution
  • Cash and cash equivalents were 14 MSEK (8)
  • Investments were 12 MSEK (30)
  • The production was about 406 000 (220 000) ounces silver, 1 076 (600) ounces gold, 321 (150) tonnes lead, and 722 (290) tonnes zinc in concentrates
  • The completed share issue of 62 MSEK strengthened company’s cash position
  • Erkki Kuronen was appointed as CEO on 29 June


  • Net sales was 158 MSEK (30)

  • EBITDA was 9 MSEK (-31)
  • EBIT was -30 MSEK (-47)
  • Earnings per share was -0.32 SEK (-0.38), before and after dilution
  • Investments were 21 MSEK (118)
  • The production was about 798 000 (220 000) ounces silver, 2 073 (600) ounces gold, 783 (150) tonnes lead, and 1 680 (290) tonnes zinc in concentrates
  • The renegotiated secured bond of 13.2 MEUR and share issue strengthened company’s cash position

Comparative figures refer to the corresponding period of the previous year.


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.


Sotkamo Silver AB owns, directly and through its subsidiary Sotkamo Silver Oy, mineral deposits containing silver, gold, zinc, and lead. The Company's main project is the Silver Mine in Sotkamo where the production has been running since March 2019.

Key figures, group

Q2 2020

Q2 2019

FY 2019
Net sales MSEK 67 30 197
EBIT MSEK -22 -32 -75
Equity ratio (%) 32 38 31
Earnings per share SEK -0.34 -0.26 -0.75
Cash liquidity (%) 51 32 34
Personnel at end of period 51 43 47
Milled tonnes approx. 137 000 88 000 343 000
Average Silver grade g/tonne 106 100 107

The economic impact of the Covid-19 epidemy hit the company in mid-March while most metal prices fell simultaneously with the stock market. Silver price started to recover in May and the positive trend seems to continue, especially in July after the reporting period. On monthly basis, gold price continued on its positive trend throughout the period. Lead reached its lowest in May, later than the others, while zinc price simultaneously started already to improve. Lower and volatile metal prices had an adverse effect on the company’s cash flow during the Q2. However, we have seen positive development in the stabilization of head grades and the reduction of the operative costs.

Net sales in Q2 was 67 MSEK (30). Other income of 6 MSEK (0) consists of estimated increase in final sales revenue for the period based on the positive metal price development. The final sales price for silver and gold is based on monthly average market price two months after the delivery, deducted by the customer’s smelter charges.

Investments in the underground mine, the concentrating plant, the sorter development and environmental investments amounted to 12 MSEK (30) in Q2 and 21 MSEK (118) in H1 2020.


In the second quarter, 137 000 (88 000) tonnes of ore were milled. During the second quarter, the company produced about 406 000 (220 000) ounces silver, 1 076 (600) ounces gold, 321 (150) tonnes lead and 722 (290) tonnes zinc in concentrates.

During the first half of the year, the production was about 798 000 (220 000) ounces silver,      2 073 (600) ounces gold, 783 (150) tonnes lead and 1 680 (290) tonnes zinc in concentrates. Milled tonnes during first half were about 266 000 (88 000).

The annual production guidance of 13 March 2020 remains unchanged. Accordingly, we expect to process 480 – 540 kt of ore. Correspondingly, the silver production in 2020 is forecasted to be 1.4 - 1.7 million ounces.


No significant events after the reporting period.

FINANCIAL CALENDER                 

  • Q3 on 28 October 2020

  • Q4 and year-end report 2020 on 17 February 2021

The official Stock Exchange Releases are given in Swedish and there may be differences in the translated versions.

The reports are available on the Company webpage:

Contact person

Erkki Kuronen, CEO of Sotkamo Silver AB, tel. +358 50 599 3539

The information was submitted for publication, through the agency of the contact persons set out above on 5 August 2020, at 8:45 CET. The official Stock Exchange Releases are given in Swedish and there may be differences in the translated versions. Should there be any differences, the Swedish version takes precedence.


Sotkamo Silver´s business concept is to develop mineral deposits in the Nordic countries with regards to human society and environment. Sotkamo Silver owns through its subsidiary the Silver Mine in Sotkamo which started production in March 2019 and has reached full production capacity. In addition, the Company holds exploration rights to precious and base metal deposits in Finland, Sweden and Norway.

Sotkamo Silver applies SveMin's & FinnMin's own rules of reporting for public mining & exploration companies. Sotkamo Silver has chosen to publish 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

Get in Touch

Sotkamo Silver in Sweden
Sotkamo Silver AB
Nybrogatan 34/Box 5216
SE-102 45 Stockholm

Telephone +358 50 599 3539
Sotkamo Silver in Finland
Sotkamo Silver Oy
Hopeatie 20

Telephone +358 44 733 2355

© 2021 Sotkamo Silver AB.