Sotkamo Silver AB
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This nordic silver miner stock has underperformed bad vs silverSOTKAMO SILVER HIGHLIGHTS OF THE FIRST QUARTER 2020
Press release: Stockholm, 29 May 2020 9.45 CET
Net sales was 91 MSEK (0)
EBITDA was 8 MSEK (-11)
EBIT was -11 MSEK (-14)
Earnings per share was 0.03 SEK (-0.12)
Cash and cash equivalents were 10 MSEK (33)
Investments were 9 MSEK (88)
The production was about 391 000 ounces silver, 998 ounces gold, 462 tonnes lead, and 958 tonnes zinc in concentrates
Milled tonnes were about 129 000 and average silver head grade 110 g/tonne
Safety measurement LTIFR was 10
The renegotiated secured bond of 13.2 MEUR strengthened company’s short-term cash position
Comparative figures refer to the corresponding period of the previous year.
CEO PAUL JOHNSSON
At the end of the quarter Sotkamo Silver celebrates a year in production, but it has also been a quarter that has changed the world with the effects of COVID-19. Operationally Sotkamo Silver has not been influenced in the same way as many other industries. Our staff has so far stayed healthy and production and deliveries have been going on as planned. We processed 129,000 tonnes of ore and produced about 391,000 Oz of silver.
The silver price has however dropped from levels above 17 USD/ Oz to as low as 12 USD/Oz and at the end of the reporting period stabilizing around 15 USD /Oz, which directly effects our revenues. The market environment has been unstable, and it has become clear that the future is hard to predict.
Sotkamo Silver will continue the work that begun at the end of 2019; to optimize the production flows and seeking cost savings in order to be profitable in a world with volatile prices. We are on a positive EBITDA level but need to work harder to obtain a positive EBIT as well.
The rights issue initiated during the first quarter was a success and was oversubscribed once completed in May. The funds raised from the issue will be welcome as cash reserve in these unstable times and will give a foundation for prolonging the life of mine.
