EN 2026 Q2 Report
Sotkamo Silver’s Q2/2026 Interim Report: Record net sales and strong cash flow
Sotkamo Silver AB | Stock Exchange Release | July 31, 2026 at 09:00:00 EEST
Sotkamo Silver’s Q2/2026 Interim Report: Record net sales and strong cash flow
HIGHLIGHTS
April – June
- Net sales increased by 151% to 198 MSEK (79 MSEK*) driven by higher silver, gold and lead production and higher silver and gold prices. Net sales were at a record high
- EBITDA rose to 86 MSEK (1) and EBITDA margin strengthened to 43% (2)
- EBIT increased to 73 MSEK (-16)
- Profitability improved from the comparison period mainly due to increased silver and gold production and positive price development of silver and gold. The growth achieved in mining volumes and a slight rise in unit costs increased the underground mining cost from the comparison period and quarter-on-quarter. Part of the costs relate to drift development and stope preparation carried out to support future ore mining
- CAPEX increased to 22 MSEK (16) to accelerate the underground mine development
- The production amounted to 217,722 ounces of silver (186,877), 996 ounces of gold (417), 172 tonnes of lead (144), and 345 tonnes of zinc (370) in concentrates
- Cash and cash equivalents rose from Q1 2026 by 66 MSEK and increased to 141 MSEK (1)
- Due to conversions of convertible loans, the total principal of convertibles decreased by 0.3 MEUR (3 MSEK). The total principal of the convertibles was 1.1 MEUR (12 MSEK) at the end of the quarter
January – June
- Net sales increased by 160% to 384 MSEK (148 MSEK) driven mainly by higher silver and gold production and higher silver and gold prices
- EBITDA rose to 185 MSEK (-6), EBITDA margin strengthened to 48% (-4)
- EBIT increased to 162 MSEK (-40)
- The new mining contractor commenced operations at the beginning of January, and full operational capability and performance is in place
- Cash and cash equivalents rose from year-end by 127 MSEK and increased to 141 MSEK (1)
- CAPEX increased to 37 MSEK (28)
- The production amounted to 418,687 ounces of silver (355,102), 1,779 ounces of gold (782), 316 tonnes of lead (280), and 652 tonnes of zinc (680) in concentrates
- Due to conversions of convertible loans, the total principal of convertibles decreased by 2.1 MEUR (22 MSEK
*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 Board of Directors concluded 28 May on new guidance for year 2026:
- The Company expects to produce 0.9 -1.2 million ounces of silver
- Annual EBITDA is expected to be over 33 MEUR
- Net debt-to-EBITDA is expected to be below 0.1 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.
CEO REVIEW
Strong growth in mining volumes
Our net sales continued to grow. In line with our targets, we have successfully increased mining volumes and, consequently, silver production, compared with both in the first quarter of the year and the previous year. We expect the positive production trend to continue as silver grades increase.
In May, we issued a positive profit warning and raised our 2026 EBITDA guidance. The increase was primarily driven by the silver price level. During the second quarter, the average silver price was USD 73 per ounce. Since then, the price has declined at times below USD 60 per ounce. A year ago, the silver price was below USD 40 per ounce.
Our strong cash flow has enabled us to accelerate investments. We are able to finance our investments through operating cash flow while continuing to strengthen our balance sheet. In line with the guidance issued in May, we expect to be almost debt-free by the end of the year.
We continue infill drilling in the current mine to convert mineral resources into ore reserves. In addition, we are carrying out more detailed investigations of the West mineralisation this year. The accelerated deepening of the mine enables us to open new mining areas at greater depths, further improving operational reliability.
As the focus of mining shifts to the lower levels of the mine, we expect silver grades to increase towards the end of the year. During the second quarter, the silver grade remained relatively low because significant volumes of lower-grade ore from the open pit were fed into the concentrator. On the other hand, the gold production continued to increase.
In June, we signed concentrate offtake agreements with Boliden extending until the end of 2030. The agreements are on market terms, reflect the strong demand for concentrates in the market and has a positive impact on the Company’s profitability.
Overall, our financial and operational position looks very strong. This provides a strong basis for the remainder of the year!
KEY FIGURES
| Q2/26 | Q2/25 | Change, % | H1/26 | H1/25 | Change, % | 2025 | |
| Net sales, MSEK | 198 | 79 | 151 | 384 | 148 | 160 | 393 |
| EBITDA, MSEK* | 86 | 1 | 185 | -6 | 80 | ||
| EBITDA margin % | 43 | 2 | 48 | -4 | 20 | ||
| EBIT, MSEK* | 73 | -16 | 162 | -40 | 9 | ||
| EBIT margin % | 37 | -20 | 42 | -27 | 2.2 | ||
| Equity ratio %* | 53 | 38 | 39 | 53 | 38 | 39 | 40 |
| Cash liquidity %* | 122 | 18 | 586 | 122 | 18 | 586 | 49 |
| Net debt-to-EBITDA ratio* | 0.2 | 3.4 | -94 | 0.2 | 3.4 | -94 | 2.5 |
| Personnel at the end of the period | 55 | 52 | 6 | 55 | 52 | 6 | 48 |
| Silver production, koz* | 218 | 187 | 16 | 419 | 356 | 18 | 804 |
| Mill feed, kt* | 148 | 109 | 36 | 259 | 201 | 29 | 425 |
| Average silver grade, g/tonne* | 56 | 65 | -15 | 62 | 67 | -8 | 71 |
Alternative key performance measures are marked with asterisk. For more detailed definitions, please see the full report.
EVENTS AFTER THE REPORTING PERIOD
On 16 July 2026, Business Finland decided to convert 2.0 MEUR (21.7 MSEK) of the outstanding research and development loan principal into a grant. The remaining 3.3 MEUR (36.7 MSEK) will be repaid in five annual instalments starting from July 2027.
FINANCIAL CALENDAR
- Q3/2026: 23 October 2026
- Q4/2026: To be determined
WEBINAR
The result webinar will be held today on 31 July at 1:00 p.m. Finnish time (EET). You can participate in the event through the link: https://events.inderes.com/fi/sotkamosilver/2026-q2
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, 31 July 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/