SOTKAMO SILVER AB PUBLISHES NEW FINANCIAL INFORMATION INCLUDED IN THE PROSPECTUS PREPARED IN CONNECTION WITH THE RIGHTS ISSUE AND THE DIRECTED ISSUE OF WARRANTS
Press release: Stockholm, 15 April, 2020 08.45 CET
Sotkamo Silver AB has in connection with the new issue of shares with preferential rights for existing shareholders, announced on 27 February 2020, (the “Rights Issue”) and the directed issue of warrants free of charge, announced on 31 March 2020, (the ”Warrant Issue”) prepared a prospectus (the ”Prospectus”) that will be published on 15 April 2020. The Prospectus contains new financial information.
The following new financial information is included in the Prospectus prepared in connection with the Rights Issue and the Warrant Issue.
Consolidated statement of income for 1 January 2020 - 29 February 2020
| MSEK | 1 January 2020 – 29 February 2020 |
| Net sales and other income | 58.7 |
| Change of finished goods | 0.2 |
| Supplies and services | -37.5 |
| Employee expenses | -6.0 |
| Other expences | -8.2 |
| EBITDA | 7.2 |
| Depreciation and amortization | -11.4 |
| EBIT | -4.2 |
| Financial income (Foreign exchange rate impact) | 11.2 |
| Financial expenses | -5.7 |
| RESULT AFTER FINANCIAL ITEMS | 1.4 |
| Taxes | 0.0 |
| RESULT FOR THE PERIOD | 1.4 |
Capitalization
|
MSEK |
As of 29 February 2020 |
| Current liabilities | |
| Guaranteed | 0.0 |
| Secured | 0.1 |
| Unsecured | 23.5 |
| Total current liabilities | 23.6 |
| Non-current liabilities | |
| Guaranteed* | 193.9 |
| Secured | 1.0 |
| Unsecured | 128.0 |
| Total non-current liabilities | 321.9 |
| Equity | |
| Share capital | 185.2 |
| Profit and loss reserve | 34.8 |
| Total equity | 220.0 |
*Includes debt of MSEK 137.7 which is both guaranteed and secured.
Net indebtedness
|
MSEK |
As of 29 February 2020 |
| (A) Cash | 20.2 |
| (B) Cash equivalents | 0.0 |
| (C) Trading securities | 0.0 |
| (D) Liquidity (A) + (B) + (C) | 20.2 |
| (E) Current financial receivables | 0.0 |
| (F) Current bank debt | 0,0 |
| (G) Current portion of non-current debt | 0,1 |
| (H) Other current financial debt | 23.5 |
| (I) Current financial debt (F) + (G) + (H) | 23.6 |
| (J) Net current financial indebtedness (I) – (E) – (D) | 3.4 |
| (K) Non-current bank loans | 65.5 |
| (L) Bond issue | 208.9 |
| (M) Other non-current interest-bearing loans | 47.4 |
| (N) Non-current financial debt (K) + (L) + (M) | 321.8 |
| (O) Financial net debt (J) + (N) | 325.2 |
Investments
Sotkamo Silver has invested MSEK 4.7 during January and February 2020. MSEK 2.7 of the investments has been invested in maintenance and extension work in order to extend the mine life of the silver mine. Sotkamo Silver has also initiated a development project aimed at streamlining production. In the first phase, Sotkamo Silver has rented a sorter during a test period. At the end of the test period, Sotkamo Silver can acquire the sorter.
Working capital
One of the Company’s largest customers, which has previously made payments to the Company on a bi-weekly basis, has returned to applying the originally agreed payment terms implying monthly payments. This will have a timing effect on the Company’s cash flow going forward, and has, together with the recent fall in the silver price due to the Corona crisis, created a working capital need for the Company in the short term. Sotkamo Silver is currently in negotiations with the customer to shorten the payment terms. Further, Sotkamo Silver has entered into a financing agreement with Formue Nord Markedsneutral A/S through which Sotkamo Silver obtains temporary financing of MSEK 20 MSEK and which the Company has used to bridge the short term working capital need.
Financial calendar
-
Q1 is published on 29 May 2020
- Q2 is published on 5 August 2020
- Q3 is published on 28 October 2020
- Q4 and year-end report 2020 is published on 17 February 2021
Financial reporting
The reports are available on the Company webpage: http://www.silver.fi/sivu/en/finansiella_rapporter/
The official Stock Exchange Releases are given in Swedish and there may be differences in the translated versions.
The financial information in this press release has not been reviewed by Sotkamo Silver's auditors.
Contact person
Paul Johnsson, CEO of Sotkamo Silver AB, tel. +46 70 777 6976
This press release contains such information that Sotkamo Silver AB must publish in accordance with the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above on 15 April 2020, at 08.45 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´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.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
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