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Press release: Stockholm, 14 October 2020 13.00 CET


  • Net sales was 130 MSEK (82)
  • EBITDA was 58 MSEK (33)
  • EBIT was 40 MSEK (3)
  • Earnings per share was 0.19 SEK (0.01) non-diluted, 0.18 SEK (0.01) diluted
  • Cash and cash equivalents were 30 MSEK (7)
  • Investments were 4 MSEK (28)
  • The production was about 433 000 (358 000) ounces silver, 923 (1 081) ounces gold, 419 (445) tonnes lead, and 818 (1 010) tonnes zinc in concentrates
  • Due to the pricing mechanism in use, the final metal sales prices of Q2 2020 increased both the net sales and profitability of Q3 2020

Q1 – Q3 2020

  • Net sales was 287 MSEK (111)
  • EBITDA was 67 MSEK (3)
  • EBIT was 7 MSEK (-43)
  • Earnings per share was -0.13 SEK (-0.37) non-diluted, -0.12 SEK (-0.37) diluted
  • Investments were 18 MSEK (145)
  • The production was about 1 231 000 (582 000) ounces silver, 2 996 (1675) ounces gold, 1 202 (595) tonnes lead, and 2 497 (1305) tonnes zinc in concentrates

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


I am very excited to release the financial result of Q3 2020 and highlight some of our recent activities. The team at the Silver Mine has worked tirelessly to achieve the set goals but also had a chance to get some rest during the summer vacation period. The extraordinary times in the society and economy seem to continue and we must make our best efforts to adapt going forward.

Silver price achieved the seven year high in August after a quick rise from mid-July. Even the current price is two times higher than the lowest in March 2020.  We got the double boost from this price rally and achieved the record revenue of 130 MSEK. The toplines of Q2 and Q3 illustrate how the changes of the metal prices impact the sales. The final sales price determination of silver and gold two months after the delivery increases the positive or negative impact of metal price changes both on net sales and profitability.

The Board of Directors and the Management have had fruitful discussions while revising the Company’s strategy. You have already seen some signs of the revised strategy as we have divested exploration assets in the Tampere and Bergslagen areas, and after Q3 period acquired new assets in the Kainuu region from Boliden. The revised strategy will be communicated in Q4. As a part of the strategy work, we are starting the evaluation of the refinancing alternatives to enable the next steps for Sotkamo Silver.

During Q3 we have been mining and producing from the underground mine between the levels 180 to 80 (meters below surface) and simultaneously we have been working with the development of the mine around 300 level where production will commence in the late 2020. At the concentrating plant we have maintained good operational reliability and recovery of the metals to our concentrates. This is demonstrated by the record through-put and silver production.

Piloting of the ore sorting has faced some delays due to the travel restrictions from abroad. However, achieved results of the piloting have been in line with the expectations. Preparations for the underground core drilling have been ongoing and drilling will commence in October. The focus of the core drilling program is to extend the life of the Silver Mine.

I look forward to work with our excellent team to develop the Company for the benefit of our stakeholders. Take care and stay safe!


The Company operates the Silver Mine in Sotkamo, Finland. The production was started in March 2019 and mine produces silver, gold, zinc and lead in the concentrates which are sold to a smelter. In addition, company holds, directly and through its subsidiary Sotkamo Silver Oy, exploration rights to mineral deposits in Finland and Norway.

During Q3, the Company divested its exploration licenses in the Tampere region in Finland and Bergslagen in Sweden to New Peak Finland Oy and New Peak Sweden Oy, correspondingly. 

Key figures, group Q3 2020 Q3 2019 FY 2019
Net sales MSEK 130 82 197
EBIT MSEK 40 3 -75
Equity ratio (%) 36 37 31
Cash liquidity (%) 105 37 34
Personnel at end of period 46 42 47
Milled tonnes approx. 142 000 127 000 343 000
Average Silver grade g/tonne 111 102 107

Net sales in Q3 was 130 MSEK (82). Other income of 1 MSEK (0) does not include any estimated unrealised final sales price adjustment for 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.

Investments in the underground mine and in the concentrating plant together with the sorter development and environmental investments amounted to 4 MSEK (28) in Q3 and 18 MSEK (145) in Q1-Q3 2020.


In the third quarter, 142 000 (127 000) tonnes of ore were milled. In Q3 the company produced about 433 000 (358 000) ounces silver, 923 (1081) ounces gold, 419 (445) tonnes lead and 818 (1010) tonnes zinc in concentrates.

Year to date, the production was about 1 231 000 (582 000) ounces silver, 2 996 (1675) ounces gold, 1 202 (595) tonnes lead and 2 497 (1305) tonnes zinc in concentrates. Milled tonnes until the end of Q3 were about 407 000 (218 000).

The annual production guidance of 13 March 2020 remains unchanged. Accordingly, we expect to process 480 000 - 540 000 tonnes of ore. Correspondingly, the silver production is forecasted to be 1.4 - 1.7 million ounces in 2020.


Sotkamo Silver Oy has entered into an agreement with Boliden to purchase the mining and exploration rights of the Hietaharju and Peura-aho mining concessions and the Hietaharju North exploration area in Suomussalmi. Press release of acquisition was published on 6 October 2020.

FINANCIAL CALENDER                 

  • Q4 and year-end report 2020 on 17 February 2021

This report has not been subject to a financial review by the company's auditors.

The official Stock Exchange Releases are given in Swedish and there may be differences in the translated versions.

The reports are available at the Company webpage: www.silver.fi/en/investors

Contact person

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 14 October 2020, at 13:00 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.


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,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.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