Press release Stockholm, November 15th, 2019
HIGHLIGHTS OF THE THIRD QUARTER 2019
HIGHLIGHTS OF THE JANUARY-SEPTEMBER 2019
Comparative figures refer to the corresponding period of the previous year.
CEO TIMO LINDBORG
Our team has worked hard these past few months after the production started, navigating in the challenges of mine commissioning. I am very excited that during September the Silver Mine moved into a phase where mining and processing rates are now fully utilized, generating positive EBIT for the quarter. This is a significant milestone for any mining project.
I appreciate the work done by our entire team during the production start. We reached the full production capacity in the concentrating plant and the mine already during the Q3 period, which is in line with the production target. Positive EBIT soon after the outset of production is an excellent achievement. At the same time, our direct deliveries to smelters enable us to secure fast and agile deliveries and cash-flow from sales.
Sotkamo Silver AB owns, directly and through its subsidiary Sotkamo Silver Oy, mineral deposits containing silver, gold, zinc, lead and tungsten. The company's main project is the Silver Mine in Sotkamo municipality, where production ramp up started during the first quarter 2019 and the ramp-up period was finalized by end of August.
|Key figures||Q1-Q3 2019||Q1-Q3 2018||FY 2018|
|Equity ratio (%)||38||54||51|
|Earnings per share SEK||-0,26||-0,14||-0,48|
|Cash liquidity (%)||30||424||227|
|Personnel at end of period||42||12||31|
|Average grade Ag (Silver)||101||0||0|
The production ramp up was successfully completed by the end of August as planned. Reliability and usability of the concentrating plant has been at a very good level and metal recoveries have fulfilled the expectations. The goal is to mill 330,000 -350,000 tonnes of ore in 2019.
During Quarter 3 we produced ca. 358,000 Oz. silver, 1,081 Oz. gold, 445 tonnes lead and 1,010 tonnes zinc. Since the production start until end of September we produced about 582,000 Oz silver, 1,675 Oz gold, 600 tonnes lead and 1,305 tonnes zinc in the concentrates.
Underground mining and mine development have progressed as planned. Long hole drilling and underground stoping has been started but the share of stockpiled lower grade open pit ore was high in July effecting the head grades of the month. Since August, head grades have improved as the share of high-grade underground ore has increased.
By the end of June, designed milling capacity was achieved and since that the flotation process has been further optimized and stabilized. During the third Quarter 127,000 tonnes of ore was processed bringing the feed tonnes to 218,000 since the production start. The concentrating plant is operated at the designed capacity and with good reliability. Head grades have improved during the third quarter. Lead and zinc production exceed the forecast while silver and gold production were at the planned level at the end of the period.
The production guidance for 2019 is 330,000 – 350,000 milled tonnes as earlier published.
The latest silver production guidance for full year 2019 is 1,000,000 – 1,100,000 Oz Ag (1,150,000 – 1,250,000). Silver is estimated to account for 60-63% of the sales value.
EVENTS AFTER THE REPORTING PERIOD
No significant events after the reporting period.
The largest shareholder together with the three next largest shareholders at August 31st have appointed the nominating committee consisting of three members.
The Nominating Committee for the Annual General Meeting (AGM) 2020 in Sotkamo Silver AB consists of:
The secretary of the nominating committee is lawyer Bertil Brinck, of A1 Advokater, Stockholm. Bertil Brinck receives motions, suggestions for the AGM and answers the shareholders questions regarding the nominating committee.
Bertil Brinck could be reached by phone; +46 8 545 811 00, or e-mail email@example.com
The reports are available at the Company webpage:
Stockholm, November 15th, 2019
Sotkamo Silver AB’s Board of Directors an CEO
Timo Lindborg, CEO of Sotkamo Silver AB, tel. +358 40 508 3 507
This information is information that Sotkamo Silver AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above on November 15, 2019, at 8.45 CET.
The official Stock Exchange Releases are given in Swedish and there may be differences in the translated versions.
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, gold and tungsten in Finland and Sweden 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 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 at www.silver.fi