Press release: Stockholm, April 26, 2023, 08.45 CET


  • Net sales was 67 MSEK compared to the previous year 114 MSEK. The main reason was a lower mining volume. The average silver grade developed positively  
  • EBITDA was 6 MSEK (38)
  • EBIT was -10 MSEK (15)
  • Cash and cash equivalents were 34 MSEK (44)
  • Investments were 8 MSEK (13)
  • The production was about 207 000 (336 000) ounces of silver, 516 (870) ounces of gold, 232 (465) tonnes of lead, and 515 (990) tonnes of zinc in concentrates
  • Company received gross proceeds of approx. 3.4 MEUR or 38.4 MSEK from the rights Issue before the deduction of transaction costs
  • The Company and the senior lenders agreed on February 13, 2023, upon an amendment to the terms of the senior loan agreement, postponing the first instalment (1.5 MEUR due on March 31, 2023) to be paid on the termination date of the senior loan agreement (March 31, 2026)
  • Company has provided a guarantee in accordance with the environmental permit as security for the obligations following the closure of the mine. According to the concluded contract, the guarantor released one million euros from the escrow account at the end of March 2023



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



The year 2023 started with a challenging working capital situation for us.  Actions for improving the financing situation were initiated already at the end of 2022 and during the first quarter of 2023 these steps were finalized. The share issue, postponing the senior loan amortization and releasing part of the escrow account funds were finalized. These actions ensure an adequate working capital situation for the short term.

Our mining and production plans and the current forecasts for the metal and electricity prices support the positive cash flow for the rest of 2023 and furthermore enable us to finance necessary investments like infill drilling.

Production volumes remained below the plans due to a delay in ramp-up with the new mining contractor. At the end of the quarter, the progress with the ramp-up has been developing in the required direction and we expect to stabilize the production during April.

The impact of the ramp-up delay is seen as temporary, and we estimate that there is no significant effect on the whole year’s production volumes. The new mining contractor is fully committed to improving their performance to a level that enables stable mining volumes and meeting the mining plans.

In the first quarter cash flow management was essential due to the tight working capital situation. This included tight control of all operative costs and investments. While postponing some of the planned costs, the company ensured that the mandatory investments are carried out to continue the operations normally after the winter period. For example, an infill drilling campaign was started, which will provide us with the needed data to plan and execute the mining in an accurate and cost-efficient manner.

The positive development in silver grade is encouraging and gives us confidence in returning to the estimated 90-110 g/tonne level.

I want to thank all the employees for their excellent work in the challenging past months. The uncertainty has undoubtedly affected everyone. The whole Silver team has together ensured that the operational capability is maintained and now when the winter turns to spring, we are ready to accelerate production to the levels where we need to be. Our expectation for the increasing silver grade and positive development in electricity and metal prices is setting the base for clear positive development in the rest of the year.



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 two smelters. In addition, the Pyrite is sold to smelters to minimize the environmental footprint at the tailings pond. The Company holds also mining and exploration rights to mineral deposits nearby current operations in the Sotkamo region in Finland.

Net sales was 67 MSEK compared to the previous year 114 MSEK. The main reason was a lower mining volume. The average silver grade developed positively. Milled ore tons were 97 000 tonnes and was on lower level due to the ramp-up period with new mining contractor. The silver head grade was improved from the previous quarter 72 to 82 g/t.

Other income of -2,6 MSEK (6) included mainly estimated unrealized final sales price adjustment due to the price difference between provisional and final invoices for the period. Net sales included -2 MSEK 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 8 MSEK (13) in Q1. P700 project’s infill-drilling continued in Q1 which costs were included in the investments of the period.

In the first quarter, silver price traded in a range between $20.1 and $24.4 per ounce. At the end of the quarter, the price of silver was $23.9 per ounce.

The euro strengthened against the US dollar in the first quarter of the year from 1.0683 at the beginning of the year to 1.0875.



Key figures, group

Q1 2023

Q1 2022

FY 2022

Net sales MSEK












Equity ratio (%)




Cash liquidity (%)




Personnel at end of the period   




Mill feed (kt)




Average silver grade g/tonne








In the first quarter, we milled 97 000 (173 000) tonnes of ore, and produced about 207 000 (336 000) ounces silver, 516 (870) ounces gold, 232 (465) tonnes lead, and 515 (990) tonnes zinc in concentrates.

The production volume was lower due to the new mining contractor ramp-up period, where delays in some of the mining equipment was extending the original ramp-up plan. In total, the volume remained roughly one-third under the planned silver production in Q1. The effect of the delayed ramp-up period is temporary and mining contractor capability is expected to be stabilized during April.

The silver head grades improved further in the first quarter and was 82 (71) g/tonne. The development with silver head grade has been according to the expectation and a further increase is expected during Q2 2023 as the mining will primarily focus on the new levels between 360- and 420-meters. The silver grade is expected to return to the longer-term average of 90-110 g/tonne. 


Guidance for 2023

The Company repeats its guidance for 2023 given in February 2023: The Company expects to produce 1.4 -1.5 million ounces of silver in 2023. However, Company’s primary target is to maximize the revenue and operative cash flow. To achieve this, Company adjusts the mix of metals in the ore feed which might have an impact on the produced silver ounces.

Further Company expects annual EBITDA to be at least 28 % and net debt-to-EBITDA to be below 2.5 at year-end.




The following main decisions were made at the Annual General Meeting (AGM) held on April 18, 2023:

  • The income statement and the balance sheet for both the parent company and the group regarding the financial year 2022 were adopted by the AGM. The AGM decided that no dividend would be paid out for the financial year 2022. The members of the Board and the CEO were granted discharge from liability for the financial year 2022.​
  • The AGM decided that the Board would comprise of six ordinary members without deputy directors. Jarmo Vesanto, Kimmo Luukkonen, Eeva-Liisa Virkkunen, Sixten Sunabacka and Jukka Jokela were re-elected as directors and Mauri Visuri was elected as director. Eeva-Liisa Virkkunen was re-elected chairman of the Board.
  • The AGM resolved to re-elect the auditing company PWC until the end of the AGM 2024.
  • The guidelines for remuneration for the management and the procedure for appointing the members of the nomination committee were approved in accordance with the proposals from the Board.
  • The AGM approved the nomination committee’s proposal for annual fees to the Board.
  • The AGM resolved, for the period until the next AGM, to authorize the Board, at one or several occasions, to issue new shares or other financial instruments. The authorization is limited to a maximum dilution of ten (10) percent of the total number of shares outstanding at the time of the first Board resolution in accordance with the authorization.




  • Q2   July 28, 2023
  • Q3   October 25, 2023
  • Q4  February 15, 2024




Mikko Jalasto, CEO of Sotkamo Silver AB, tel. +358 50 482 1689

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 April 26, 2023, 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.