Sotkamo Silver (SOSI) Q4 2024 earnings summary

Executive summary

• Net sales for 2024 increased 1% to 412 MSEK, supported by higher silver prices despite lower production and mining challenges.

• EBITDA declined 22% to 109 MSEK, with margin dropping to 26% due to lower silver grades and increased costs.

• Q4 2024 net sales were 109 MSEK, nearly flat year-over-year, with EBITDA down 47% to 23 MSEK and EBIT down 87% to 3 MSEK.

• Operational setbacks in Q4, including a stope collapse, led to a 34% drop in quarterly silver production and a profit warning in January 2025.

• Sustainability milestones achieved, including Level A in TSM Finland and CSRD preparations.

Financial highlights

• Q4 net sales down 4% year-over-year to 109 MSEK; full-year net sales up 1% to 412 MSEK.

• Q4 EBITDA margin dropped to 21.4% from 38.5% year-over-year; EBIT margin fell to 3.1% from 22.4%.

• Q4 net result was a loss of 3.1 MSEK; full-year net loss of 16.4 MSEK compared to a profit of 27.2 MSEK in 2023.

• CAPEX increased to 70 MSEK in 2024, mainly for exploration and infill drilling.

• Cash and cash equivalents increased to 88 MSEK; cash liquidity ratio at 75%.

Outlook and guidance

• 2025 silver production guidance: 1.2–1.4 million ounces, up from 1.17 million in 2024.

• Targeting annual EBITDA margin of at least 30% and net debt-to-EBITDA below 1.5 at year-end 2025.

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

• Medium-term targets to be updated in H2 2025; profitability sensitive to metal prices and exchange rates.