INTERIM REPORT JANUARY - MARCH 2018
The Silver mine project fully financed and the ramp up picks up pace
Construction of the concentration plant
- Result for the period was 3,889 KSEK (-5,068) and the result per share 0.03 SEK (-0.05).
- Other income was 23 KSEK (0).
- Cash and cash equivalents per March 31, amounted to 308,258 KSEK (164,171).
- Investments were 25,128KSEK (5,790).
- Equity as of March 31, 2018 amounted to 372,716 KSEK (328,518)
- In January the mill circuit to the concentrating plant was ordered from Outotec (Finland) Oy at a total prive of 20 MSEK (2.0 MEUR).
- On February 1st the works for foundation of the concentrating plant was ordered with an immediate initiation at a value of 21 MSEK (2.1 MEUR).
- The construction decision was made by the Board. The Silver mine project was fully financed with a financing package of totally 474 MSEK (46 MEUR) including ;
- 134 MSEK (13 MEUR) 4-year secured bond was issued by Sotkamo Silver Oy
- 41 MSEK (4 MEUR) direct share issue was issued by Sotkamo Silver AB
- 51 MSEK (5 MEUR) 4.5-year convertible bond was issued by Sotkamo Silver AB
- 21 MSEK (2 MEUR) of Finnish state funding from the NTM-central to Sotkamo Silver Oy.
- 62 MSEK (6 MEUR) innovation- and development loan from Tekes to Sotkamo Silver Oy
- 165 MSEK (16 MEUR) of Group cash at year end 2017.
The most significant event of the first quarter was the completion of the Group’s funding for the Silver Mine project. After having secured the funding package (worth € 46 million), the construction will continue with a strong cash position according to the schedule.
We will continue the earthworks, started already last year, for the concentrator plant and its surroundings and the tailings storage area. Topping off ceremonies will take place at the end of June, and the production building will be completed in August. After that, the installation of processing equipment and machinery will be commenced.
The removal and relocation of the Blaiken plant's equipment and machinery are under way. At the beginning of this year, we reached an agreement with Outotec (Finland) Oy on the delivery of the mill circuit for the Silver Mine in Sotkamo. According to the agreement, the two mills of the mill circuit will be delivered in autumn 2018. The nominal capacity of the mills is 450,000 tonnes of ore per year.
Sotkamo Silver has updated the organization in the Silver Mine project and in the Group. I am convinced that our construction and mining team with their broad experience will lead the project towards a successful production phase. We have conducted an environmental impact assessment procedure for increased production capacity in cooperation with the residents and stakeholders of the impacted area. The process is in its final phase and we expect to receive the authority's final comments by July this year. In this autumn, we will submit an environmental permit application for increased production capacity.
CEO of Sotkamo Silver AB
EVENTS AFTER THE REPORTING PERIOD
- The management team of Sotkamo Silver Oy was reorganized and Arttu Ohtonen was appointed to deputy CEO of Sotkamo Silver AB
The income statement items in this report as well as their comparatives, cover the period January – March, unless stated otherwise. The balance sheet items refer to the respective period end both for the current year and last year.
Sotkamo Silver will provide economic information on the following dates:
- Interim report Q2 - August 23, 2018.
- Interim report Q3 - November 15, 2018.
- Year End Report 2015 - February 22, 2019.
- Annual General Meeting – April 19, 2019.
The share capital amounted to SEK 163,679,896.48. The number of shares and votes are 119 313 694. Quota value was SEK 1.37. On the last trading date, March 29, 2018, the market capitalisation was 516 MSEK (51 MEUR) at closing-date at a price per share of 4.325 SEK.
Timo Lindborg, CEO of Sotkamo Silver AB, tel. +358 40 508 3507
This information is 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 persons set out above, on 10thMay 2018, at 8.45 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 AB´s business concept is to exploit mineral deposits in the Nordic countries with positive social and environmental benefits. Sotkamo Silver owns mineral deposits, which contain silver and gold in Finland as well as zinc and gold in Norway. The Company’s main development project is the Silver Mine project in the municipality of Sotkamo.
Sotkamo Silver applies SveMin’s & FinnMin’s respective rules of reporting for public mining & exploration companies. Sotkamo Silver has chosen to report mineral resources and ore reserves according to the internationally accepted JORC or NI 43-101 code. The company applies International Financial Reporting Standards (IFRS) as approved by the European Union.
Legal Entity Identifier (LEI): 213800R2TQW1OZGYDX93
The ticker symbol is SOSI in NGM Equity in Stockholm and SOSI1 in NASDAQ Helsinki.
ISIN-code for Sotkamo Silver shares is SE0001057910.
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