Sotkamo Silver’s Q1/2026 Interim Report: Record sales and profitability

HIGHLIGHTS

January – March

• Net sales increased by 170% to 186 MSEK (69 MSEK*) driven by higher silver and gold production and higher silver and gold prices. Net sales were at a record high
• EBITDA rose to 99 MSEK (-8) and EBITDA margin strengthened to 53% (-11)
• EBIT increased to 89 MSEK (-24)
• Profitability improved from the comparison period mainly due to increased silver and gold production and positive price development of silver and gold. Profitability was at a record level
• CAPEX stayed at 16 MSEK (16)
• The production amounted to 200,964 ounces of silver (169,000), 783 ounces of gold (365), 145 tonnes of lead (137), and 307 tonnes of zinc (309) in concentrates
• The new mining contractor commenced operations at the beginning of January, and activities have been ramped up as expected
• Cash and cash equivalents rose from year-end by 61 MSEK and increased to 74 MSEK (1)
• Due to conversions of convertible loans, the total principal of convertibles decreased by 1.8 MEUR (19 MSEK). The total principal of the convertibles was EUR 1.4 million (SEK 15 million) at the end of the quarter

*Comparative figures refer to the corresponding period of the previous year.

In case of discrepancies, the official Swedish version of this report prevails.

OUTLOOK

Guidance for 2026 (unchanged)

The Company has given (20 February 2026) the following guidance for 2026:

• The Company expects to produce 0.9 -1.2 million ounces of silver
• Annual EBITDA is expected to be over 25 MEUR
• Net debt-to-EBITDA is expected to be below 1.0 at year-end

The Company's profitability is significantly affected by external factors, such as metal prices and exchange rates and internal factors like uncertainties related to ore volumes and metal grades. The prices used in the guidance for silver and gold are slightly lower than at the time of publication of the guidance (20 February 2026).

CEO REVIEW

A strong start to the year

The year has started according to plan. The new mining contractor commenced operations at the beginning of January, and activities have been ramped up as expected. Despite all the measures related to the change of contractor, we were able to slightly increase silver production compared with the fourth quarter of 2025, which can be considered a success.

Although silver prices fluctuated significantly at the beginning of the year, they have mainly remained above USD 70 per ounce, substantially higher than the average price of approximately USD 40 in 2025. Supported by the higher silver price, our net sales increased by 170% year‑on‑year and by 37% compared with the previous quarter. Our EBITDA margin amounted to 53%.

Positive earnings growth and strong cash flow enable accelerated investments to achieve more stable production and future expansion. The Company’s cash position increased by SEK 61 million during the quarter. Deepening of the mine, construction of the required underground infrastructure, and infill drilling form the core of the ongoing investment programme.

As communicated in the report for the fourth quarter, during the first quarter, we also mined ore with a slightly lower silver grade but a higher than usual gold grade. As a result, we were able to increase gold production by 50% compared with the previous quarter, and operations were highly profitable even though the silver grade remained at the level of the fourth quarter. We now expect the silver grade to gradually increase to 80–90 g per tonne over the coming quarters, alongside higher mining volumes. To support these targets, the mining plans for the remainder of the year will be finalised during the second quarter.

Overall, the year has started positively and without major surprises. Our financial position is strengthening rapidly, enabling investments in growth and alternative mining areas. Increased mining and electricity taxes are expected to reduce our result by approximately EUR 2 million in 2026, but overall, the outlook remains positive.

I would like to extend my sincere thanks to our employees, who have remained committed to change and the development of the Company even when we have faced challenges. We have a solid foundation to build on going forward. Tomorrow is made of silver!

KEY FIGURES

Alternative key performance measures are marked with asterisk. For more detailed definitions, please see the full report.

EVENTS AFTER THE REPORTING PERIOD

The AGM made the following decisions on 21 April 2026:

• The Income Statement and the balance sheet for both the parent company and the group regarding the financial year 2025 were adopted by the AGM. The AGM decided that no dividend would be paid out for the financial year 2025. The members of the Board and the CEO were granted discharge from liability for the financial year 2025.
• The AGM decided that the Board would comprise of seven ordinary members. Jukka Jokela, Joni Lukkaroinen, Kimmo Luukkonen and Eeva-Liisa Virkkunen were re-elected as directors. Eeva-Liisa Virkkunen was re-elected chairperson of the Board, and Vesa Heikkilä, Miika Heiskanen and Mikko Keränen were elected as directors.
• The AGM resolved to elect the auditing company KPMG until the end of the AGM 2027.
• The guidelines for remuneration for the management and the procedure for appointing the members of the nomination committee were approved in accordance with the proposals from the Board.
• The AGM approved the Board’s remuneration report for 2025.
• The AGM approved the nomination committee’s proposal for annual fees to the Board.

The Board's proposal to authorise the Board to resolve new issues of shares and other financial instruments was not supported by the necessary majority of the cast votes and the shares represented at the AGM. The AGM resolved not to authorise the Board to issue new shares or other financial instruments.

FINANCIAL CALENDAR

• Q2/2026: 31 July 2026
• Q3/2026: 23 October 2026
• Q4/2026: To be determined

WEBINAR

The result webinar will be held today on 29 April at 1:00 p.m. Finnish time (EET). You can participate in the event through the link: https://events.inderes.com/fi/sotkamosilver/2026-q1

The webinar will be conducted in Finnish, with the material presented in English. During the event, you can ask questions using the chat function. The presentation from the webinar will be made available on the company's website at: https://www.silver.fi/en/investors/presentations

Stockholm, 29 April 2026

Sotkamo Silver AB’s Board of Directors and CEO

CONTACT INFORMATION

Mikko Jalasto,
CEO of Sotkamo Silver AB
mikko.jalasto@silver.fi
+358 50 482 1689

Tommi Talasterä,
CFO of Sotkamo Silver AB
tommi.talastera@silver.fi
+358 40 712 6970

Sotkamo Silver in brief

Sotkamo Silver is a mining and ore prospecting company that develops and utilises mineral deposits in the Kainuu region in Finland. Sotkamo Silver supports the global development towards green transition technologies and produces the metals needed responsibly and by taking local stakeholders into account. Sotkamo Silver’s main project is a silver mine located in Sotkamo, Finland. In addition to silver, the mine produces gold, zinc and lead. The company also has mining and ore prospecting rights for mineral deposits in the vicinity of the silver mine in Kainuu. Sotkamo Silver Group consists of the parent company Sotkamo Silver AB and its wholly-owned Finnish subsidiary (Sotkamo Silver Oy). Sotkamo Silver AB is listed at NGM Main Regulated in Stockholm (SOSI), Nasdaq Helsinki (SOSI1), and Börse Berlin.

Read more about Sotkamo Silver at www.silver.fi/en/