Sotkamo Silver (SOSI) Q3 2025 earnings summary

Executive summary

• Profitability improved sequentially in Q3 2025, driven by a strong rise in silver and gold prices, despite lower production volumes and grades compared to the previous year.

• Operational performance normalized after earlier technical challenges, with ongoing efforts to enhance mining reliability and efficiency.

• Net sales decreased 3% year-over-year to 110 MSEK, but rose 60% from Q1 2025 and 39% from Q2 2025 due to favorable metal prices.

• Refinancing completed in August reduced debt, extended repayment periods, and strengthened the capital structure.

Financial highlights

• Net sales: 110 MSEK (down 3% YoY from 114 MSEK), EBITDA: 35 MSEK (down 30% YoY), margin 32% (down from 44%), EBIT: 16 MSEK (down 46% YoY from 30 MSEK).

• Cash and cash equivalents: 1 MSEK (down from 76 MSEK YoY).

• Net debt-to-EBITDA: 3.9 (up from 1.4 YoY).

• CAPEX: 16 MSEK in Q3 (down from 18 MSEK YoY), nine-month CAPEX 48 MSEK.

• Nine-month net sales: 258 MSEK (down 15% YoY); EBITDA margin: 11% (down from 28%); EBIT: -24 MSEK.

Outlook and guidance

• 2025 guidance unchanged: silver production expected at 1.0–1.2 million ounces, annual EBITDA margin at least 22%, net debt-to-EBITDA below 2.5 at year-end.

• Profitability is highly sensitive to metal prices, exchange rates, ore volumes, and grades.

• Medium-term targets to be updated in Q4 2025.