Press release: Stockholm, February 14, 2023 08:40 CET
Guidance for 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.
Silver Mine is the foundation of Sotkamo Silver to become ”the best in class” exploration and mining company with a commitment to be responsible and local to contribute to the benefit of the shareholders, society and community. Sotkamo Silver supports the global transition towards green technologies and delivers needed metals responsibly and with local stakeholders in mind.
The Company's Board of Directors has decided on the following medium-term targets until 2025 to support the implementation of the strategy:
Annual silver production > 1.5 Moz
Annual EBITDA > 30 %
Net Debt- to-EBITDA < 2.0
Extending Life of Mine (LOM) by five years until 2035
Performance rating A verified in all Kaivosvastuu* protocols by the external auditor in 2024
The Company's profitability is significantly affected by external factors, such as metal prices, exchange rates, as well as energy prices. The achievement of guidance and medium-term targets requires above mentioned external factors to remain at the level forecasted by the market in mid-February 2023. Further, achieving the guidance requires strengthening the working capital through share issues and other financing arrangements during Q1 2023. Achieving the objective of extending the LOM requires sufficient financial resources to implement the drilling program.
Stockholm, February 14, 2023
Sotkamo Silver AB
Mikko Jalasto, CEO
Mikko Jalasto, CEO, tel. +358 50 482 1689
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 February 14, 2023, at 08:40 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´s business concept is to develop mineral deposits with regards to human society and environment. The Company owns the Silver Mine in Sotkamo which started production in March 2019. In addition, the Company holds mining and exploration rights to precious and base metal deposits in Finland.
The company applies International Financial Reporting Standards (IFRS) as approved by the European Union.
The ticker symbol is SOSI on NGM Main Regulated Equity in Stockholm and SOSI1 on 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