Sotkamo Silver (SOSI) Q4 2025 earnings summary

Executive summary

• Achieved high profitability in Q4 2025, with net sales up 25% to 135 MSEK and EBITDA up 119% to 51 MSEK, driven by strong silver and gold prices despite lower production volumes.

• Operational challenges in underground mining impacted production, but investments and a new mining contractor are expected to improve performance in 2026.

• Updated mineral resource and ore reserve estimates support mine life extension to at least 2035.

• Focused on increasing production volume and operational reliability for future years, supported by updated mineral resources and ore reserves.

• Strengthened outlook for 2026, with guidance for higher production and profitability.

Financial highlights

• Q4 2025 net sales rose 25% year-over-year to 135 MSEK, EBITDA increased 119% to 51 MSEK, and EBIT improved to 33 MSEK from 3 MSEK year-over-year.

• Full-year 2025 net sales decreased 5% to 393 MSEK due to lower silver grades and mill feed, partially offset by strong metal prices.

• Q4 CAPEX reduced to 15 MSEK from 24 MSEK; full-year CAPEX was 63 MSEK, down from 70 MSEK.

• Cash and cash equivalents at year-end were 14 MSEK, with a 2 MEUR (22 MSEK) credit facility available.

• Q4 operating cash flow was 38 MSEK; full-year operating cash flow was 27.8 MSEK.

Outlook and guidance

• 2026 guidance: silver production of 0.9–1.2 million ounces, annual EBITDA over 25 MEUR, net debt-to-EBITDA below 1.0 at year-end.

• Medium-term targets (to 2028): annual silver production of 1.4 million ounces, EBITDA margin above 30%, net debt-to-EBITDA below 2.0, and A-level in TSM standard.

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