Sotkamo Silver (SOSI) Q1 2025 earnings summary

Executive summary

• Net sales declined 19% year-over-year to 69 MSEK, mainly due to lower metal production and ongoing mining challenges.

• EBITDA dropped to -8 MSEK from 17 MSEK, with a negative margin of -10.9%.

• Silver production fell 45% to 169,000 ounces, with lower ore grades and volumes.

• Cash position tightened to 1 MSEK after significant loan repayments and negative cash flow.

• Mining operations were temporarily halted in February due to a vehicle fire, but resumed within a week.

Financial highlights

• EBIT decreased to -24 MSEK from -1 MSEK year-over-year.

• Net loss for the quarter was -39.7 MSEK, with EPS at -0.14 SEK (non-diluted).

• Cash and cash equivalents at quarter-end were 1.2 MSEK, down from 37.6 MSEK a year earlier.

• Net debt-to-EBITDA ratio increased to 2.5 from 1.5.

• CAPEX was 16 MSEK, focused on exploration and mine development.

Outlook and guidance

• 2025 guidance unchanged: silver production expected at 1.2–1.4 million ounces, annual EBITDA margin at least 30%, and net debt-to-EBITDA below 1.5 at year-end.

• Medium-term targets to be updated in H2 2025.

• Profitability remains sensitive to metal prices, exchange rates, and ore grades.