Sotkamo Silver AB | Stock Exchange Release | April 30, 2024 at 09:00:00 EEST
Stronger start than previous year
HIGHLIGHTS
January – March
Comparative figures refer to the corresponding period of the previous year. In case of discrepancies, the official Swedish version of this report prevails.
OUTLOOK
Guidance for 2024 (unchanged)
The Company has given (14 February 2024) the following guidance for 2024:
The Company expects profitability to remain at a good level in 2024. Profitability is supported by improved operational efficiency but burdened by inflation and cost escalation. The Company's profitability is significantly affected by external factors, such as metal prices, exchange rates and inflation. The achievement of the guidance assumes a slight increase in metal prices and EUR/USD rate to remain approximately at the level of the time when the guidance was published (14 February 2024).
CEO REVIEW
In the first quarter, Sotkamo Silver's net sales increased by 26 percent to SEK 85 million. The amount of milled ore increased both from the previous quarter and from the comparison period. As we anticipated last quarter, the average silver head grade was lower than the exceptionally high level of the previous quarter. Howerer, silver production increased by 49 percent year-on-year to 309,000 ounces (207,000). At the beginning of the quarter, production was also affected by individual technical challenges in underground mining and the concentrator plant.
As we continue our journey towards our targets for this year, we are supported by the positive development of silver and gold prices which have risen sharply over the past month. A recent report by the Silver Institute forecasts that demand for silver will continue to clearly exceed supply for the full year as well. During April, the silver price in Euro terms was on the highest level during our mine production.
Sotkamo Silver's EBITDA increased by 167 percent year-on-year to SEK 17 million. EBITDA margin in the first quarter was 20 percent. Profitability was affected by increasing costs, which reflected general inflation, and the preparatory work for future production carried out during the quarter. The Group's cash and cash equivalents decreased as a result of loan repayments and investments carried, however operating cash flow was SEK 2.7 million positive.
We proceeded as planned to improve our sustainability performance. Nitrogen emissions have been reduced as anticipated due to the commissioning of the bioreactor, and work progressed to achieve performance level A in accordance with the Towards Sustainable Mining standard. The mine waste management and closure plan related to the environmental permit is in process.
In the second quarter, we will focus on continuing stable production in order to take full advantage of the favorable silver market.
KEY FIGURES
Q1/24 | Q1/23 | Change, % | 1-12/23 | |
Net sales, MSEK | 85 | 67 | 26 | 407 |
EBITDA, MSEK | 17 | 6 | 167 | 140 |
EBITDA margin % | 20 | 9 | 113 | 34 |
EBIT, MSEK | -1 | -10 | 67 | |
EBIT margin % | -1 | -14 | 16 | |
Equity ratio % | 44 | 40 | 9 | 43 |
Cash liquidity % | 94 | 67 | 40 | 105 |
Net debt-to-EBITDA ratio | 1,5 | 11,7 | -87 | 1,5 |
Personnel at the end of the period | 49 | 44 | 11 | 47 |
Silver production, koz | 309 | 207 | 49 | 1 411 |
Mill feed, kt | 124 | 97 | 28 | 478 |
Average silver grade, g/tonne | 91 | 82 | 12 | 105 |
EVENTS AFTER THE REPORTING PERIOD
Resolutions made at the Annual General Meeting
The AGM made the following decisions (23 April 2024):
FINANCIAL CALENDAR
WEBCAST
Sotkamo Silver will hold a webcast today (30 April 2024) at 1:00 p.m. (EEST). The presentation will be held in Finnish, and the material is in English. The webcast can be accessed through the following link:
https://link.silver.fi/2024Q1
The presentation will be available at the Company website at:
https://www.silver.fi/en/investors/presentations
CONTACT INFORMATION
Mikko Jalasto,
CEO, Sotkamo Silver
mikko.jalasto@silver.fi
+358 50 482 1689
Tommi Talasterä,
CFO, Sotkamo Silver
tommi.talastera@silver.fi
+358 40 712 6970
This is information that Sotkamo Silver AB is obliged to make public pursuant to the EU Market Abuse Regulation.
This is a summary of Sotkamo Silver's Interim Report. The complete report is attached to this release and available at the Company webpage: www.silver.fi/en/investors
Sotkamo Silver in brief
Sotkamo Silver is a mining and ore prospecting company that develops and utilises mineral deposits in the Kainuu region in Finland. Sotkamo Silver supports the global development towards green transition technologies and produces the metals needed responsibly and by taking local stakeholders into account. Sotkamo Silver’s main project is a silver mine located in Sotkamo, Finland. In addition to silver, the mine produces gold, zinc and lead. The company also has mining and ore prospecting rights for mineral deposits in the vicinity of the silver mine in Kainuu. Sotkamo Silver Group consists of the parent company Sotkamo Silver AB and its wholly owned Finnish subsidiary (Sotkamo Silver Oy). Sotkamo Silver is listed at NGM Main Regulated in Stockholm (SOSI), Nasdaq Helsinki (SOSI1), and Börse Berlin.
Read more about Sotkamo Silver on www.silver.fi/en/
Attachments
Sotkamo Silver Q1 2024 Report English
Sotkamo Silver AB
Nybrogatan 34/Box 5216
SE-102 45 Stockholm
© 2024 Sotkamo Silver AB.