Press release: Stockholm, July 29, 2022, 08.45 CET


  • Net sales was 90 MSEK compared to the previous year 109 MSEK. Decrease was due to declined silver price and lower production
  • EBITDA was 6 MSEK (36)
  • EBIT was -16 MSEK (16)
  • Cash and cash equivalents were 43 MSEK (52)
  • Investments were 24 MSEK (5)
  • The production was about 281 000 (382 000) ounces of silver, 796 (988) ounces of gold, 365 (396) tonnes of lead, and 824 (919) tonnes of zinc in concentrates
  • New mining contract was signed with Veljekset Toivanen Oy. Contract will be effective from the beginning of 2023
  • Updated Mineral Resource and Ore Reserve estimates were published, and the management view indicates the mine life of 7-8 years
  • LTIFR was 8 (27), which is the best since the start of the production



  • Net sales was 205 MSEK (204)
  • EBITDA was 44 MSEK (51)
  • EBIT was -1 MSEK (10)
  • Investments were 34 MSEK (13)
  • The production was about 617 000 (726 000) ounces silver, 1 666 (1 695) ounces gold, 830 (705) tonnes lead, and 1 814 (1 582) tonnes zinc in concentrates
  • The Refinancing Project was successfully completed
  • Operative cash flow was 29 MSEK (4)


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


The new mining contract, the updates of the Mineral Resource and Ore Reserve Estimates, and Refinancing will positively contribute to our future for a long. Projects have required a lot of work and dedication from several people who can be proud of the work and the results.

The tendering process and negotiations of the mining contract were a long journey. I believe that the journey we made and the discussion we had with the Toivanen team have prepared us both for the future. We know each other and we know what each other expects from the co-operation. I am delighted about the attitude and dedication of the team and look forward for the partnership to develop the mining activities at the Silver Mine in the spirit of the partnership and mutual benefit.

The outcome of the Mineral Resource and Ore Reserve estimates was crystallised to a few pages in the press release. The work behind the numbers is enormous and many team members have run several extra miles to make it. For the Mineral Resource estimate, we basically rebuilt and reviewed the databases to assure the data, remodelled ore zones, defined the geological continuations and parameters for the estimation algorithms, and brought our tools and processes to the latest state-of-the-art level.

The processes and tools form the foundations for the next update which will be done once the results of the ongoing drilling are available.

Mine designs behind the Ore Reserve estimate define the road map to future production. Huge work and achievement open the insights to the future potential of the Silver Mine.  By investing in drilling, we can create opportunities for future mining and returns.

I also want to share with you the geochemical sampling program we have planned for the field season. Hundreds of soil samples will be collected from our exploration target areas to define targets for the more detailed exploration works. I believe that I can share some interesting results with you in the future.

As we all know, everyday life is usually cleaning and fixing, solving obstacles. But we should every now and then stop and celebrate the success which undoubtedly exists. Similarly, we should be patient, which is often difficult, as success is usually made step by step, following the plan and tirelessly completing the tasks and finally achieving the target. The Silver Mine team is working like this, silently, without gestures, but making things happen. I am proud of it.

Metal prices have declined recently, and EUR-USD rate is close to parity. We are confident that we are prepared for these times by the development we have done in our operations and capability.

Let’s enjoy the late summer days, remaining holidays, the companion of friends and families!



The Company operates the silver mine in Sotkamo, Finland. The production was started in March 2019 and the mine produces silver, gold, zinc, and lead in concentrates which are sold to a smelter. In addition, the Company holds mining and exploration rights to mineral deposits nearby current operations in the Sotkamo region in Finland.

Net sales was 90 MSEK compared to the previous year 109 MSEK. Decrease was due to declined silver price and lower production, while the production of the other metals was closer to the comparison period. Milled ore totalled to 169 000 (143 000) tonnes including the marginal ore.

Other income of -2 MSEK (2) included 1 MSEK (0) grant from Business Finland, 1 MSEK (0) sales of fixed assets, -4 MSEK (2) estimated unrealized final sales price adjustment due to the price difference between provisional and final invoices for the period. Net sales included 0,3 MSEK (-1) estimated final metal content adjustment due to metal content difference between provisional and final invoices for the period. The final sales price for silver and gold is based on the monthly average market price two months after the delivery, deducted by the customer’s smelter charges.

Investments in the underground mine and environmental investments amounted to 24 MSEK (5) in Q2. Environmental investments included tailings pond dam raise amounting to 3 MSEK. P700 project’s exploration continued in Q2 which costs were included in the investments of the period.

The Company implemented at the beginning of April 2022 a directed issue of convertibles of an aggregate nominal amount of up to MEUR 6.4. The convertibles carry an annual interest of 8.0 %. The term of the new convertibles is 4.5 years with a maturity date on 30 September 2026, to the extent conversion has not taken place before such date. The conversion price is EUR 0.175 corresponding to SEK 1.826 per share.

The convertible contains two components: a conversion option component that will be recognised at fair value using Black-Scholes model through a profit and loss account and a liability component that will be recognised at amortised cost using the effective interest rate method. At the inception date, the fair value of the convertible option liability was 34 MSEK and the fair value of the liability component was 32 MSEK. On June 30, 2022, the fair value of the convertible option component was 16 MSEK and the fair value of the liability component was 34 MSEK. The fair value changes recognised through a profit and loss account were: conversion option liability 19 MSEK, liability component 1 MSEK.


Key figures, group

Q2 2022

Q2 2021

FY 2021


Net sales MSEK















Equity ratio (%)





Cash liquidity (%)





Personnel at end of the period





Mill feed (kt)





Average silver grade g/tonne






In the second quarter, we milled 169 000 (143 000) tonnes of ore and produced about 281 000 (382 000) ounces silver, 796 (988) ounces gold, 365 (396) tonnes lead, and 824 (919) tonnes zinc in concentrates.

The silver grade of the mill feed was lower than expected and this influenced the silver production. Another factor was the lower volume of available marginal ore which impacted occasionally to the feed rate. On the other hand, the head grades and production of gold, zinc and lead were on a good level.

During the period we have been mining primarily between 260- and 200-levels in the underground mine and in the open pit. Open pit mining has been halted until the end of August.

The decline has reached the targeted 420-level and the horizontal development has commenced as scheduled. Start of the stope mining has been scheduled to the beginning of Q4.

The stope mining must be started from the deepest and farthest part of the ore body once all the drifts have been prepared.

Mining of the stopes retreats horizontally and continues upwards after the backfilling of the open spaces.

Recent underground drilling assays and updated resource model support the view that the metal grades will improve substantially once the mining can be started from the 420-level upwards.

Until that, most of the ore will be mined from the stopes between 260- and 200-levels, as stated in the previous Q-report. This will be supported by the ore from the drifting between 420- to 360-levels.

At the beginning of the year, we stated that “we expect to produce ca. 1.5 million ounces of silver in 2022. However, our primary target is to maximise the revenue and operative cashflow. To achieve this, we adjust the mix of metals in our ore feed which might have an impact to the produced silver ounces.” Sotkamo Silver AB revises the estimate for silver production in 2022. The updated guidance is based on the silver production of 617 koz until the end of the second quarter, and the updated production schedule for the second half of the year. The production volumes of gold, zinc and lead have been at the same level or exceeded the volumes during the same period last year.

New production guidance for 2022:

We continue to focus on the production mix and optimization of the revenue and operative cash flow. Consequently, we estimate that our annual silver production in 2022 will be 1.25-1.35 million ounces.



No events after the reporting period.


  • Q3  21 October 2022
  • Q4   17 February 2023



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

This information that Sotkamo Silver AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above on July 29, 2022, at 08:45 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.


About Sotkamo Silver AB

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.

The company applies International Financial Reporting Standards (IFRS) as approved by the European Union.

The ticker symbol is SOSI in NGM Equity in Stockholm and SOSI1 in NASDAQ Helsinki.

ISIN-code for Sotkamo Silver shares is SE0001057910.

Legal Entity Identifier (LEI): 213800R2TQW1OZGYDX93

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

Sotkamo Silver in Finland
Sotkamo Silver Oy
Hopeatie 20

Telephone +358 44 733 2355

© 2021 Sotkamo Silver AB.