Sotkamo Silver AB | Stock Exchange Release | January 15, 2025 at 12:10:00 EET
Sotkamo Silver AB | Stock Exchange Release, Insider Information, Profit Warning | January 15, 2025 at 12:10 EET
Sotkamo Silver's silver production for 2024 has fallen slightly below the lower end of the previously estimated production range (1.2-1.4 million ounces of silver) due to local rock mechanical challenges. As a result, the EBITDA margin has also been somewhat lower than expected (expectation of at least 28%). The net debt relative to EBITDA aligns with expectations (expectation below 2.0).
Local rock mechanical challenges occurred in December and the company had to repair damage caused by the collapse of rock structures, which has slowed the progress of mining operations. The situation did not cause any accidents or damage to equipment. Production in October and November was in line with expectations.
The company will provide more details about its plans to stabilize production and its 2025 plans in conjunction with the publication of the Q4 2024 interim report on February 14, 2025.
Earlier guidance for 2024 given on August 28, 2024:
- The Company expects to produce 1.2 -1.4 million ounces of silver in 2024
- Annual EBITDA margin to be at least 28%
- Net debt-to-EBITDA to be below 2.0 at year-end
The Company's profitability is significantly affected by external factors, such as metal prices, exchange rates and inflation. The achievement of the guidance assumes that metal prices and EUR/USD rate stay approximately at the current level.
Mikko Jalasto
CEO of Sotkamo Silver AB
Sotkamo Silver in brief
Sotkamo Silver is a mining and ore prospecting company that develops and utilises mineral deposits in the Kainuu region in Finland. Sotkamo Silver supports the global development towards green transition technologies and produces the metals needed responsibly and by taking local stakeholders into account. Sotkamo Silver's main project is a silver mine located in Sotkamo, Finland. In addition to silver, the mine produces gold, zinc and lead. The company also has mining and ore prospecting rights for mineral deposits in the vicinity of the silver mine in Kainuu. Sotkamo Silver Group consists of the parent company Sotkamo Silver AB and its wholly-owned Finnish subsidiary (Sotkamo Silver Oy). Sotkamo Silver AB is listed at NGM Main Regulated in Stockholm (SOSI), Nasdaq Helsinki (SOSI1), and Börse Berlin.
Read more about Sotkamo Silver on www.silver.fi/en/
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, at 2025-01-15 12:10 EET.
