Sotkamo Silver (SOSI) Q2 2025 earnings summary

Executive summary

• Net sales in Q2 2025 decreased by 25% year-over-year to 79 MSEK, mainly due to lower silver grades and mill feed, but rose 15% sequentially from Q1 2025.

• EBITDA dropped 92% year-over-year to 1–2 MSEK, with margin at 2%, though EBITDA improved by 9 MSEK from Q1 2025.

• EBIT declined to -16 MSEK from 0 MSEK year-over-year, but improved by 8 MSEK compared to Q1 2025.

• Mining challenges persisted, impacting production and profitability, but transition to new mining areas and exploration drilling showed promising results.

• Cash and cash equivalents fell to 1 MSEK from 30 MSEK year-over-year; refinancing and additional financing negotiations are ongoing.

Financial highlights

• Net sales: 79 MSEK (down 25% year-over-year); EBITDA: 1 MSEK (down 92%); EBIT: -16 MSEK.

• EBITDA margin fell to 1.9% from 18.1% year-over-year.

• Equity ratio at 38% (down from 40%), cash liquidity at 18% (down from 48%).

• Net debt-to-EBITDA increased to 3.4 from 2.1 year-over-year.

• CAPEX increased to 16 MSEK in Q2, focused on mine life extension and efficiency.

Outlook and guidance

• 2025 silver production expected at 1.0–1.2 million ounces, below previous guidance of 1.2–1.4 million.

• Annual EBITDA margin now expected at least 22% (previously 30%).

• Net debt-to-EBITDA target revised to below 2.5 (was below 1.5).

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

• Guidance assumes stable metal prices and EUR/USD rates.