Sotkamo Silver, a junior mining company based in Sweden, has reported improved profitability in its silver mining operations compared to the previous year. Despite experiencing an operating loss of SEK 1 million in the first quarter of the year, the company’s silver production increased, leading to a higher turnover. The production guidance for the year remained unchanged.
The company’s EBITDA increased to 17 million kroner in the quarter from 6 million kroner in the comparison period. This increase was attributed to higher silver production volumes, a higher average silver content, and the favorable development of the silver price. However, sales of zinc and lead decreased due to lower prices and concentrations.
Sotkamo Silver maintained its production guidelines for the year, with a focus on achieving a production target of 1.45–1.55 million silver ounces. The company expects profitability to remain strong in 2024, supported by improved operational efficiency despite challenges such as inflation and rising costs.
Profitability improved due to several factors including a higher average silver grade, increased silver prices, and improved mining efficiency. The company’s production in the quarter included approximately 309,000 ounces of silver, 717 ounces of gold, 197 tons of lead, and 338 tons of zinc in concentrates.
Achieving these targets depends on factors such as metal prices and exchange rates. Sotkamo Silver highlighted that a rise in metal prices and stability in exchange rates are crucial for meeting its targets. The company remains committed to maintaining profitability through operational efficiency and external factors that impact its operations.
In conclusion, Sotkamo Silver has shown signs of improvement in their profitability due to several factors including higher average silver grade
