Sotkamo Silver AB | Stock Exchange Release | June 12, 2025 at 17:30:00 EEST
Stock Exchange Release, Insider Information, Profit Warning: Stockholm, June 12, 2025, at 17:30 EEST
Sotkamo Silver AB's silver production for 2025 is expected to fall slightly below the lower end of the previously estimated production range (1.2-1.4 million ounces of silver). This is due to lower-than-expected mining volumes in the early part of the year. As a result, the EBITDA margin (expectation of at least 30%) and the net debt relative to EBITDA (expectation below 1.5) are also expected to fall slightly short of the targets.
As a result, the ratio of EBITDA margin and net debt to EBITDA is also expected to remain slightly below the targets.
Due to early-year mining challenges and the lack of alternative mining areas, the company's production volumes have been weaker than anticipated. Toward the end of the second quarter, volumes have been clearly better, and this positive trend is expected to continue.
The US dollar price of silver has increased by approximately 27% since the beginning of the year, which positively impacts revenue from silver sales. If production volumes develop as expected and the silver price and USD exchange rate remain at current levels through year-end, the full-year 2025 production and EBITDA margin are expected to fall only slightly short of earlier estimates.
The Company will provide more detailed full-year estimates in its Q2 interim report, to be published on July 31, 2025.
Guidance for 2025 given on February 14, 2025:
? The Company expects to produce 1.2-1.4 million ounces of silver
? Annual EBITDA margin to be at least 30%
? Net debt-to-EBITDA to be below 1.5 at year-end
The Company's profitability is significantly affected by external factors, such as metal prices and exchange rates and internal factors like uncertainties related to ore volumes and metal grades. The achievement of the guidance assumes that metal prices and EUR/USD rate stay approximately at the current level of the time when the guidance was published (14 February 2025).
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 2025-06-12 17:30 EEST.
