[image] Press release:
HIGHLIGHTS OF THE THIRD QUARTER 2020
· Net sales was 130 MSEK (82)
· EBITDA was 58 MSEK (33)
· EBIT was 40 MSEK (3)
· Earnings per share was
· 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 -
· 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.
CEO
I am very excited to release the financial result of Q3 2020 and highlight some of our recent activities. The team at the
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
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
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
I look forward to work with our excellent team to develop the Company for the benefit of our stakeholders. Take care and stay safe!
BUSINESS
The Company operates the
During Q3, the Company divested its exploration licenses in the
Key figures, group Q3 2020 Q3 2019 FY 2019
Net sales MSEK 130 82 197
EBITDA MSEK 58 33 8
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.
PRODUCTION AND GUIDANCE
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
EVENTS AFTER THE REPORTING PERIOD
FINANCIAL CALENDER
· Q4 and year-end report 2020 on
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
The information was submitted for publication, through the agency of the contact persons set out above on
ABOUT
The ticker symbol is SOSI in NGM Equity in
ISIN-code for
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The Company's press releases and financial reports are distributed via Cision Sverige and are available on www.silver.fi
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https://news.cision.com/sotkamo-silver/i/sotkamo,c2838333
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