Sotkamo Silver Ab · NGM:SOSI
Sotkamo Silver Ab — Q3 2023 Earnings Presentation
20 slides from Sotkamo Silver Ab's earnings presentation, Oct 25, 2023
Slide 1: Production and profitability at a targeted good level
SOTKAMO SILVER AB Production and profitability at a targeted good level Interim Report Q3/2023 1
Slide 2: Agenda of the day
Agenda of the day • Highlights from Q3/2023 • Financial and operational update • Strategy progress update • Long-term development • Outlook • Q&A 2
Slide 3: Key takeaways from Q3/2023
Key takeaways from Q3/2023 Due to successful implementation of efficiency improvements and the stabilization of production, operations are proceeding according to plan and Sotkamo Silver is making steady progress towards its targets. • Silver production at the highest level since 2020. Average silve
Slide 4: Successful stabilization of operations enables long-term development of the company
Successful stabilization of operations enables long-term development of the company Improved planning Cost efficiency Positive external factors e.g. planning processes, infill drilling, mine e.g. optimization, electricity hedging, forecasting e.g. price of silver & electricity modeling Improved prof
Slide 5: Financial and operational update
SOTKAMO SILVER AB Financial and operational update 5
Slide 6: Profitability on a targeted good level
Profitability on a targeted good level ✓ Net sales increased by 66 % to 110 ✓ EBITDA increased to 37 MSEK (-10) and ✓ EBIT increased to 17 MSEK (-32) MSEK (66 MSEK), driven mainly by a EBITDA margin increased to 34 % (-16) higher silver production volume and higher average silver grade and positive
Slide 7: Positive cash flow and improving financial position
Positive cash flow and improving financial position ✓ Equity ratio increased to 42.5 (38.2), ✓ Cash liquidity ratio increased to 93 ✓ Net debt-to-EBITDA declined to 2.0 driven mainly by increased equity (41). Cash liquidity ratio has driven mainly by good Q2-Q3/2023 through share issue during Q1/202
Slide 8: The silver production at highest level since 2020
The silver production at highest level since 2020 ✓ Following ramp up of new mining ✓ The silver head grade continued to ✓ In total, silver production amounted to contractor in Q1/2023 mining improve during the quarter and increased 412,000 ounces (258,000) operations have been stabilized at to 110
Slide 9: Most of 2023 strategic targets already achieved
Most of 2023 strategic targets already achieved 2022 2023 2024+ Completed Completed On-going Sotkamo Silver launched a programme that Strengthening the financial position through Continuation of the additional program for infill has enabled the Company to improve cost share issues and other financia
Slide 10: Long-term development
SOTKAMO SILVER AB Long-term development 10
Slide 11: Mine expansion process
Q3 UPDATE: The Company expects to report new infill-drilling results Mine expansion process during the last quarter of 2023. The infill-drilling also provides the data which is necessary to upgrade existing mineral resources to ore reserves. The results to be published will not have an impact on the
Slide 12: Exploration of the broader Kainuu region
Exploration of the broader Kainuu region Sotkamo Silver’s active silver mine. Current Life-of-Mine extends to 2030, but Sotkamo Silver plans to expand it to 2035 by the end of 2025. Areas with potential for further exploration. Sotkamo Silver aims to develop an attractive mineral resource portfolio
Slide 13: Focus shifting to long-term development
Focus shifting to long-term development Expanding Life-of-Mine (LOM) Exploration, broader Kainuu region Next step Next step ▪ Plans for increasing mineral resources and extending ▪ Remodeling existing data Life-of-Mine (LOM) from 2030 to 2035 ▪ Strategic review of scenarios ▪ Exploring investment &
Slide 14: Outlook
SOTKAMO SILVER AB Outlook 14
Slide 15: Guidance for 2023 (unchanged)
Guidance for 2023 (unchanged) • The Company expects to produce 1.4 -1.5 million ounces of silver in 2023. However, Company’s primary target is to maximize the revenue and operative cash flow. To achieve this, Company adjusts the mix of metals in the ore feed which might have an impact on the produce
Slide 16: How to follow us? Next
How to follow us? Next • Our investor website: By the end of Results from infill drilling to be https://www.silver.fi/en/investors 2024 published • Follow our Inderes page: 15 Feb 2024 Q4 and Full year 2023 results https://www.inderes.fi/fi/yhtiot/sotkamo-silver • Subscribe to our releases: More det
Slide 17: Questions & Answers
SOTKAMO SILVER AB Questions & Answers 17
Slide 18: Thank you!
Thank you! 18
Slide 19: Key figures
Key figures MSEK Q3/23 Q3/22 Change, % 1-9/23 1-9/22 Change, % 2022 Net sales 110 66 66 298 271 10 371 EBITDA 37 -10 96 34 183 53 EBITDA margin, % 34 16 32 13 14 EBIT 17 -32 42 -33 -34 EBIT margin, % 28 -48 14 -12 -9 Equity ratio, % 43 38 43 38 38 Cash liquidity, % 93 41 93 41 46 Net debt-to-EBITDA
Slide 20: Production of gold, lead and zinc
Production of gold, lead and zinc 20