Sparks - Sotkamo Silver

Sotkamo’s Q3 results showed continued operational progress, with mill feed of 144kt and silver production increasing 6% q-o-q to 231koz despite silver grades remaining below management’s expectations at 60g/t, although September grades moved closer to target. Net sales declined 14% q-o-q to SEK171m as the average silver price fell to c US$63/oz from US$73/oz in Q2, while EBITDA increased to SEK91m and a 53% margin. Strong cash generation continues to support investment in future growth, with capex rising 113% y-o-y to SEK34m and OPEX development drifting increasing 71% to 927m as underground development accelerated; cash and financial assets increased by SEK105m from year-end to SEK118m. YTD silver production of 650koz leaves c 250koz required in Q4 to reach the lower end of unchanged 0.9–1.2Moz guidance. The next potential catalyst is the West mineralisation drilling programme, where all seven holes analysed to date have intersected mineralisation; remaining assays and the next exploration steps are expected in early 2027, while exploration drifts are already planned to support evaluation of a potential parallel production area.