Sotkamo Silver Reveals Improved Profitability in Silver Mining Operations Despite First Quarter Operating Loss

Sotkamo Silver, a junior mining company operating out of Sweden, announced improved profitability in its silver mining operations compared to the previous year. Despite experiencing an operating loss of SEK 1 million in the first quarter, the company’s silver production increased, leading to a higher turnover. The production guidance for the year remained unchanged.

The company’s EBITDA increased to 17 million kroner in the quarter from 6 million kroner in the comparison period. This increase was attributed to higher silver production volumes, a higher average silver content, and the favorable development of the silver price. However, sales of zinc and lead decreased due to lower prices and concentrations.

Sotkamo Silver’s profitability improved due to several factors, including a higher average silver grade, increased silver prices, and improved mining efficiency. The company produced approximately 309,000 ounces of silver, 717 ounces of gold, 197 tons of lead, and 338 tons of zinc in concentrates during the quarter.

Despite challenges such as inflation and rising costs, Sotkamo Silver expects profitability to remain strong in 2024. The company is committed to achieving its production targets by focusing on improving operational efficiency while also being impacted by external factors like metal prices and exchange rates.

In summary, Sotkamo Silver reported improved profitability in its silver mining operations despite experiencing an operating loss in the first quarter. Higher silver production volumes and a favorable development of the silver price contributed to this improvement. While sales of zinc and lead decreased due to lower prices and concentrations, sales revenue increased due to higher average grades and increased production volumes.

Moving forward into next year’s operations, Sotkamo Silver aims to achieve its production targets with a focus on operational efficiency while also being impacted by external factors like metal prices and exchange rates. With continued attention on these factors and ongoing dedication towards improving operational efficiency within their control