Press release: stockholm, April 26, 202208:45 CET


  • Net sales were 114 MSEK compared to the previous year of 95 MSEK. The main positive contributors were the favorable development of the price of zinc and the quantity produced of gold and zinc
  • EBITDA was 38 MSEK (14)
  • EBIT was 15 MSEK (-6)
  • Cash and cash equivalents were MSEK 44 (26)
  • The investments were 13 MSEK (8)
  • Production was approximately 336,000 (344,000) ounces of silver, 870 (707) ounces of gold, 465 (309) tonnes of lead and 990 (664) tonnes of zinc in concentrate.
  • The refinancing project has been successfully completed.
  • The P700 project progressed: the decline reached the 400 level and underground drilling began in February.
  • Production was approximately 1.38 million (1.58 million) ounces of silver, 3,403 (3,965) ounces of gold, 1,494 (1,532) tonnes of lead and 3,373 (3,254) tonnes of zinc in concentrates.

The comparative figures refer to the corresponding period of the previous year.


Russia invasion of Ukraine and the brutal war that followed resulted in a huge humanitarian crisis and our hearts go out to the people of Ukraine who are suffering the most. After two years of Covid-19, we faced an incomprehensible evil in the midst of Europe and the future is more than uncertain. In the midst of these difficult times, we must go on with our lives and keep the faith. By doing this, we show our strength and honor those who have to sacrifice.

The refinancing project was completed. The long term, interest cost savings and generally more favorable conditions support our objectives of improving operational efficiency and profitability and achieving strategic objectives. Simultaneously, we are evaluating options to advance the P700 project and ensure long-term return on investment and adapt in the short to medium term to the unpredictability of metal prices, supply costs and energy. .

I am very proud that we have been able to integrate sustainability criteria into our new senior loan. There is a monetary carrot potentially impacting the margin of the loan once the criteria are met. However, the message we send to our lenders, owners and other stakeholders is more important: Sotkamo Silver is committed to sustainability. The criteria, reducing the nitrogen load on the water, increasing the share of renewable electricity and increasing recycling, are such that they guide and support us in our daily work.

Another milestone was our first sustainability report, which was published as part of the annual report. The Board of Directors and Management also organized a half-day seminar on the subject in March. Our target is a culture where sustainability and responsibility are natural and part of our behavior. I am convinced that we are on the right track to achieve this.

Revenue for the quarter, MSEK 114, was the second best in our history. Profit and operating cash flow were over MSEK 10 and cash at MSEK 44 at the end of the reporting period. This is a good achievement considering the low silver production and rising energy costs.

Summer is approaching and I wish all readers a sunny and relaxing season. Take care of yourself, your loved ones and live.


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

Net sales were 114 MSEK compared to the previous year of 95 MSEK. The main positive contributors were the favorable evolution of the price of zinc and the quantity of gold and zinc produced. The main grades of silver and other metals were affected by the use of marginal ore. The tons of ore crushed were 174,000 tons, ca. 25% more than in the first quarter of 2021. Compared to the previous quarter (Q4/2021), we produced an equal volume of silver and other metals, even though the ore volume was approx. 5% less.

Other income of MSEK 6 (-2) included an estimated unrealized final sale price adjustment of MSEK 5 (-2) due to the price difference between the interim and final invoices for the period. Net sales included -1 MSEK estimated the final metal content adjustment due to the difference in metal content between the provisional and final invoices for the period. The final sale price of silver and gold is based on the monthly average market price two months after delivery, deducted from the customer’s foundry costs.

Investments in the underground mine and environmental investments amounted to MSEK 13 (8) in the first quarter. The environmental investments included the raising of the tailings pond dam in the amount of 2 MSEK. Exploration of the P700 project continued in Q1, the costs of which were included in the investments for the period.

Key figures, group

Q1 2022

Q1 2021


MSEK net sales












Equity ratio (%)




Cash liquidity (%)




Staff at the end of the period




Crusher feed (kt)




Average silver content g/ton





In the first quarter, we crushed 174,000 (139,000) tonnes of ore and produced approximately 336,000 (344,000) ounces of silver, 870 (707) ounces of gold, 465 (309) tonnes of lead and 990 (664 ) tons of zinc. in concentrates. Mill feed head grades were lower than the base period, but this was offset by the higher mill feed tonnes.

During the winter, we mined mainly between 260 and 200 levels in the underground mine and in the open pit. Open-pit mining must be stopped for the summer. Our goal will be between 260 and 200 levels until the fall.

Based on the drill results and the updated resource model, we have decided to extend development to the 420 level before commencing stope mining.

The decline will reach the 420 level at the beginning of the summer and the exploitation of horizontal tunnels, galleries, continues to access and follow the mineralized zones. Stope mining should begin from the deepest and furthest part of the ore body once all drifts have been prepared. Mining of the stopes recedes horizontally and continues upwards after backfilling the open spaces.

The adopted mine plan will delay the start of mining at the 420 level stopes compared to what was previously indicated. However, management believes this gives the best return as ore recovery can be optimized and the approach maximizes return.

The annual production guidance for 2022 is approx. 1.5 million ounces of silver in 2022. We expect silver production to remain at the current level until the fall when mining will begin from the 420 level upwards. Our primary objective is to maximize revenue and operational cash flow. To achieve this, the Company adjusts the mix of metals in the ore feed, which could impact the silver ounces produced.


The Company exercised its prepayment right and redeemed the Senior Secured Fixed Rate Notes at an amount per note equal to 100% of the principal amount plus accrued but unpaid interest on April 1, 2022.

The newly allocated convertibles were registered with the Swedish Companies Registration Office on April 4, 2022.

The proceeds from the issue of convertibles were used to fund the redemption of the Company’s outstanding convertibles of the 2018/2022 series, including the payment of accrued interest.

With the new senior loan of EUR 14.6m and the new convertibles of EUR 6.4m, the Company has successfully completed the refinancing of its financial instruments maturing in 2022.


  • GM April 27, 2022
  • Q2 July 29, 2022
  • Q3 October 21, 2022
  • Q4 February 17, 2023


Erkki KuronenCEO of Sotkamo Silver AB, Phone. +358 50 599 3539

This information which Sotkamo Silver AB is required to make public under the EU Market Abuse Regulation. The information has been submitted for publication, through the contact person indicated above on April 26, 2022to 08:45 CET.

Official Exchange announcements are given in Swedish and there may be differences in the translated versions. In case of discrepancies, the Swedish version prevails.

On Sotkamo Silver AB

The business concept of Sotkamo Silver is to develop mineral deposits in the Nordic countries with respect to human society and the environment. Sotkamo Silver holds through its subsidiary silver mine in Sotkamo, which started production in March 2019 and reached full production capacity. In addition, the Company holds exploration rights to precious and base metal deposits in Finland, Sweden and Norway.

Sotkamo Silver applies SveMin’s and FinnMin’s own reporting rules for public mining and exploration companies. Sotkamo Silver has chosen to publish mineral resources and ore reserves according to the internationally accepted code JORC or NI 43-101. The company applies International Financial Reporting Standards (IFRS) as approved by the European Union.

The stock symbol is SOSI in NGM Equity in stockholm and SOSI1 on NASDAQ Helsinki.

ISIN code for Sotkamo Silver shares is SE0001057910.

Legal Entity Identifier (LEI): 213800R2TQW1OZGYDX93

Learn more about Sotkamo Silver on www.silver.fi

Company press releases and financial reports are distributed through Cision Sverige and are available at www.silver.fi




(c) Decision 2022. All rights reserved., sources Press Releases – English


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