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Press release: Stockholm, July 15, 2021, 08.45 CET


  • Net sales was 109 MSEK compared to the previous year 67 MSEK
  • EBITDA was 36 MSEK (0)
  • EBIT was 16 MSEK (-22)
  • Cash and cash equivalents were 52 MSEK (14)
  • Earnings per share was 0.05 SEK (-0.32)
  • The production was about 382 000 (406 000) ounces silver, 988 (1 067) ounces gold, 396 (321) tonnes lead, and 919 (722) tonnes zinc in concentrates
  • A total of 10 314 104 new shares were subscribed by the warrants of series 2020/2021 in May 2021 adding 19 MSEK new equity


  • Net sales was 204 MSEK (158)
  • EBITDA was 51 MSEK (9)
  • EBIT was 10 MSEK (-30)
  • Investments were 13 MSEK (21)
  • The production was about 726 000 (798 000) ounces silver, 1 695 (2 073) ounces gold, 705 (783) tonnes lead, and 1 582 (1 680) tonnes zinc in concentrates
  • The renegotiated secured bond of 13.2 MEUR (ca. 132 MSEK) with the directed share issue of 5 533 324 new shares (equivalent to ca. 16.6 MSEK of new equity) strengthened Company’s position and ensure the progress in P700 and other development projects

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


Silver production of 382 000 ounces during Q2 was ca. 10 % higher than the production of the two previous quarters and well in line with the average production of 385 000 ounces during the 8 preceding quarters. Also, the production volumes of gold, zinc, and lead, were significantly higher than during the last two quarters. The ore at the Silver Mine has high variance in the metal content and metal ratio’s, we do our best to predict and smoothen the variation, but it has an influence on the daily, weekly, monthly, and quarterly production volumes.

Revenue of the reporting period reached 109 MSEK and revenue of the first half of the year 204 MSEK. Both are significantly better than the comparable figures of last year when we were impacted by the metal price dip due to the COVID-19. Outlook for the silver and other metals of the Silver Mine is strong.

Investments of the Q2 and the first half 2021 were 5 and 13 MSEK correspondingly and include the investments into the mine infrastructure, tailings management facility and sustaining capital at the concentrating plant. We capitalize the construction of the access tunnels and corresponding mine infrastructure which is used for longer than one year. Similarly, dam rises and expansion of tailings management facility and bigger maintaining investments to debottleneck and streamline the production process, are capitalized.

On the project side, the ore sorting project is back on the drawing board to improve cost effectiveness of the full-scale production process. P700 drilling campaign will be continued during the coming months. Mineral resource and ore reserve estimates will be updated at the year end. Project REX, regional exploration, will be advanced during the summer months by the geological field work and the team looks forward for the results.

In the middle of the vacation season, I wish all employees and stakeholders very relaxing and refreshing summer days which we deserve.


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 Sotkamo region in Finland.

Net sales was 109 MSEK compared to the previous year 67 MSEK. The lower silver grade in production was compensated by higher silver price.

Milled ore tons and online time of the mills were at the budgeted level. The average silver grade in the mill feed was lower than during the comparison period.

Other income and expenses include 2 MSEK (6) unrealised final sales price adjustment for the period due to the slightly increased metal prices after the period. The final sales price for silver and gold is based on monthly average market price two months after the delivery, deducted by the customer’s smelter charges.

Key figures, group Q2 2021 Q2 2020 FY 2020
Net sales MSEK 109 67 366
EBIT MSEK 16 -22 -10
Equity ratio (%) 39 32 32
Cash liquidity (%) 132 51 69
Personnel at end of period 56 51 50
Milled tonnes approx. 143 000 137 000 546 000
Average Silver grade g/tonne 93 106 104

The financial net expenses in Q2 2021 were -6 MSEK (-39), in previous year the expenses were significantly higher due to unrealised FX loss of intra-group capital loans. The Company has classified the intra-group capital loans as net investment loans in Q4 2020 and since then FX currency rate change impact of intra-group capital loans have been booked directly to equity and it will not impact financial income and expenses in 2021.

Investments in the underground mine and in the concentrating plant together with the sorter development and environmental investments amounted to 5 MSEK (12) in Q2.


In the second quarter, 143 000 (137 000) tonnes of ore were milled. In Q2 the Company produced about 382 000 (406 000) ounces silver, 988 (1 076) ounces gold, 396 (321) tonnes lead and 919 (722) tonnes zinc in concentrates. The silver grade of the mill feed was lower than in the reference period resulting lower silver production in the concentrates.

In the first half of the year, 282 000 (266 000) tonnes of ore were milled. The Company produced about 726 000 (798 000) ounces silver, 1 695 (2 073) ounces gold, 705 (783) tonnes lead and 1 582 (1 680) tonnes zinc in concentrates. The half year production is influenced by the weak production during Q1 due to high variation of the feed grades.

We reiterate our annual production guidance of 1.45 - 1.75 million ounces of silver for 2021.


No events after the reporting period.


  • Q3                           15 October 2021
  • Q4 2021                  17 February 2022


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

The information was submitted for publication, through the agency of the contact persons set out above on July 15, 2021, 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.

Sotkamo Silver applies SveMin's & FinnMin's own rules of reporting for public mining & exploration companies. Sotkamo Silver has chosen to publish 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.

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