Sotkamo Silver Ab · NGM:SOSI
Sotkamo Silver Ab — Q4 2021 Earnings Presentation
21 slides from Sotkamo Silver Ab's earnings presentation, Feb 17, 2022
Slide 1: Sotkamo Silver AB Q4/2021 Release Info
Sotkamo Silver AB Q4/2021 Release Info Tilaisuus alkaa kello 10:00 1
Slide 2: Sotkamo Silver AB Q4/2021 Release Info
Sotkamo Silver AB Q4/2021 Release Info CEO Erkki Kuronen CFO Tommi Talasterä February 17, 2022 2
Slide 3: Agenda of today
Agenda of today • Q4/2021 and Operational Update – CEO Erkki Kuronen • Financial Result of Q4/2021 and Year-End – CFO Tommi Talasterä • Questions and Answers 3
Slide 4: Agenda of today
Agenda of today • Q4/2021 and Operational Update – CEO Erkki Kuronen • Financial Result of Q4/2021 and Year-End – CFO Tommi Talasterä • Questions and Answers 4
Slide 5: Highlights of the Q4 2021
Highlights of the Q4 2021 All time high Zero • We produced 1 049 tonnes of zinc and 466 tonnes of lead Zinc and Lead Lost Time • We have continued a safety production Incidents development program during 2021 which goal is to reinforce and encourage safety culture in our own organization and with ou
Slide 6: Responsibility
RESPONSIBILITY • Sustainable Business and Risk Management • Committed to Towards Sustainable Mining, “Kaivosvastuujärjestelmä” • Focusing on Safety and Engagement • Zero LTI • Employee engagement • Taking Care of the Environment • Impact Management • Circular Economy • Climate Impacts 6
Slide 7: Ore production and Silver grade
Ore production and Silver grade Milled ore (t) 200 000 175 000 150 000 125 000 tons 100 000 75 000 Head grade Silver (g/ton) 50 000 120 25 000 0 100 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 80 g/ton 60 40 20 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2019 2020 2020 2
Slide 8: Metal production
8 Q4 2021 Q4 2021 Q3 2021 Q3 2021 Q2 2021 Q2 2021 Produced Lead (tons) Produced Zinc (tons) Q1 2021 Q1 2021 Q4 2020 Q4 2020 Q3 2020 Q3 2020 Q2 2020 Q2 2020 Q1 2020 Metal production Q1 2020 Q4 2019 Q4 2019 Q3 2019 Q3 2019 0 1 200 1 000 800 600 400 200 0 300 500 400 200 100 tons tons Q4 2021 Q4 2021 Q
Slide 9: Project 700 – Drilling
Project 700 – Drilling 2021 Surface Drilling 9
Slide 10: Ore Sorting – not just Ore Sorting
Ore Sorting – not just Ore Sorting Primary Crushing and Sieving Ore Sorting • Feeding to conveyor • Analysis by XRT • Pneumatic separation to • Preconcentrated ore • Rejected gangue Stockpiling of Ore and Gangue Silver 10 10
Slide 11: Regional Exploration - REX Cross Section from Hietaharju
Regional Exploration - REX Cross Section from Hietaharju Suomussalmi Kuhmo West Silver Mine Tipasjärvi ©Altona Mining Base map © National Land Survey and GTK 11
Slide 12: Agenda of today
Agenda of today • Q4/2021 and Operational Update – CEO Erkki Kuronen • Financial Result of Q4/2021 and Year-End – CFO Tommi Talasterä • Questions and Answers 12
Slide 13: Highlights of the Q4 2021
Highlights of the Q4 2021 Net sales was 99 MSEK compared to the previous Net sales increased by 21 MSEK. The main driver year 78 MSEK. The EBITDA was 28 MSEK (7) was the favourable development of zinc price positive contributor was favourable development of zinc price Profitability margins improved
Slide 14: The Second Best Quarter of the Year 2021
The Second Best Quarter of the Year 2021 REVENUE AND EBITDA 140 120 100 Net sales 83 -109 MSEK in the year 2021 80 60 MSEK 40 EBITDA 13 – 36 MSEK in the 20 year 2021 0 Q2/2019 Q3/2019 Q4/2019 Q1/2020 Q2/2020 Q3/2020 Q4/2020 Q1/2021 Q2/2021 Q3/2021 Q4/2021 -20 -40 REVENUE EBITDA 14
Slide 15: Highlights of the Full-Year 2021
Highlights of the Full-Year 2021 Net sales increased by 21 MSEK. The main drivers was the favourable development of silver and zinc price Net sales was 387 EBITDA was 92 MSEK MSEK (366) (73) Profitability margins improved even if the capitalization of tailings pond dam raise is considered Investment
Slide 16: Income statement 2021
Income statement 2021 2021 2020 2021 2020 Amount in MSEK Q4-21 Q4-20 FY21 FY20 Net sales 99 78 387 365 Change of finished goods 1 1 1 -2 Other income 1 5 1 12 Supplies -48 -53 -204 -212 Other expenses -16 -15 -54 -52 Employee expenses -10 -10 -39 -39 EBITDA 28 6 92 73 Depreciation and amortization -
Slide 17: Balance sheet 31.12.2021
Balance sheet 31.12.2021 Amount in MSEK 31.12.2021 31.12.2020 Assets Fixed assets Intangible fixed assets 0 0 Tangible fixed assets 516 521 Right of use assets 30 49 Financial fixed assets 35 11 Total fixed assets 581 581 Current assets Inventories 5 4 Trade receivables 29 28 Other assets 12 10 Cash
Slide 18: Cash flow statement 2021
Cash flow statement 2021 1.1.2021- 1.1.2020- Amount in MSEK 31.12.2021 31.12.2020 Operating activities Result for the period -17 -47 Adjustments for items not effecting cash* 105 108 Interests paid -21 -25 Cash flow from operating activities before changes in 67 36 working capital Cash flow from cha
Slide 19: Production Guidance and Refinancing
Production Guidance and Refinancing “We expect to produce ca. 1.5 million ounces of silver in 2022. However, our primary target is to maximise the revenue and operative cash flow. To achieve this, we adjust the mix of metals in our ore feed which might have an impact to the produced silver ounces”.
Slide 20: Agenda of today
Agenda of today • Q4/2021 and Operational Update – CEO Erkki Kuronen • Financial Result of Q4/2021 and Year-End – CFO Tommi Talasterä • Questions and Answers 20
Slide 21: Sotkamo Silver in Sweden and Finland
Sotkamo Silver in Sweden Sotkamo Silver AB Nybrogatan 34/Box 5216 SE-102 45 Stockholm Sotkamo Silver in Finland Sotkamo Silver Oy Hopeatie 20 FI-88600 SOTKAMO Telephone +358 44 733 2355 21