Sotkamo Silver reported third-quarter revenue of €15.4 million, up 55% year-on-year, while EBITDA increased to €8.2 million from €3.1 million. The EBITDA margin rose to 53%, compared with 32% a year earlier.
Underlying EBITDA reached €6.3 million, or 41% of revenue, excluding a €2 million Business Finland R&D loan converted into a grant. Capital expenditure totalled €3.1 million.
Production and Underground Development
The mine processed 144,000 tonnes of ore, up 27% year-on-year. Silver production declined to 231,098 ounces from 255,194 ounces as average silver grades fell from 85 g/t to around 60 g/t. Gold output increased to 620 ounces, zinc to 454 tonnes and lead to 180 tonnes.
Underground development advanced 927 metres, up 71%, while monthly development averaged 457 metres. Underground ore production rose 25% to 43,400 tonnes per month. Work continued on a bypass tunnel after weak rock conditions were encountered at the 560-metre level.
Cash Flow and Expansion Plans
Operating cash flow reached €3.9 million in the third quarter and €19.3 million during the first nine months. Cash and financial assets totalled €10.6 million at the end of September, while the equity ratio improved to 58%.
The company continued western exploration, drilling 15 holes covering 3,620 metres. Results from seven holes confirmed mineralisation, supporting plans for further exploration.
Sotkamo Silver is also advancing its tailings storage expansion, which is intended to support operations through 2035 or beyond. An environmental permit is expected in the fourth quarter of 2026, while agreements with contractors and for major construction works are being progressed.
2026 Guidance
The company maintained its 2026 silver production guidance of 900,000–1.2 million ounces and expects annual EBITDA to exceed €33 million. Production reached 649,784 ounces during the first nine months, with EBITDA of approximately €24.9 million. Sotkamo Silver aims to increase annual silver production to approximately 1.4 million ounces by 2028. Its silver concentrate delivery agreements with Boliden run through at least the end of 2030.
