# QUARTERLY REPORT Q4 2022 Source Brief: https://evesgoldminers.com/research/source-briefs/sotkamo-silver-ab-quarterly-report-q4-2022-38f8a0b6 Original source: https://www.silver.fi/images/prospectus-2023/Sotkamo_Silver_Q4_22.pdf EGM generated: 2026-09-27 Company: Sotkamo Silver AB (SOSI1) ## Use Note This is the Eve's Gold Miners normalized Markdown copy of an official or regulatory public source. It is provided for readability, search discovery, and research resilience. The original source remains authoritative for legal, regulatory, and investment decisions. ## Extracted Document Text # QUARTERLY REPORT Q4 2022 Source: https://www.silver.fi/images/prospectus-2023/Sotkamo_Silver_Q4_22.pdf Fetched: 2026-09-12T07:09:39.695+00:00 Source artifact: 38f8a0b6-54ab-468e-b30c-72d7e5e07575 Normalizer input: text ## Content # QUARTERLY REPORT Q4 2022 SOTKAMO SILVER AB YEAR-END REPORT 2022 HIGHLIGHTS OF THE HIGHLIGHTS OF THE FULL- FOURTH QUARTER 2022 YEAR 2022 Net Sales MSEK  Net sales was 100 MSEK compared to 150  Net sales was 371 MSEK (387) the previous year 99 MSEK. The rapid  EBITDA was 53 MSEK (92). EBITDA 100 rise in metal prices in Q4 had a positive developed in Q4 positively compared to impact on net sales the previous two quarters, driven by 50  EBITDA was 19 MSEK (28) increased production volumes, good  EBIT was -1 MSEK (6) metal price development and increased 0  Cash and cash equivalents were 1 MSEK Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 cost efficiency (37). The Company has a credit limit of  EBIT was -34 MSEK (7) EUR 1.5 million. The Company initiated  EBIT was on a good level during Q1 2022 EBITDA MSEK the process and negotiations to obtain but decreased during the following 60 additional funding quarters due to declined metal prices, the  Investments were 11 MSEK (25) 40 very high cost of energy, and the  The production was about 294 000 (341 increased price of consumables. The cost 20 000) ounces of silver, 829 (869) ounces of electricity almost doubled year 2022 of gold, 401 (466) tonnes of lead, and 0 compared to the previous year Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 874 (1 049) tonnes of zinc in  Investments were 61 MSEK (48) -20 concentrates  The production was about 1 169 000 (1  LTIFR was 4 (23), which remained on the 374 000) ounces of silver, 3 285 (3 403) best level since the start of the ounces of gold, 1 535 (1 494) tonnes of EBIT MSEK production 20 lead, and 3 335 (3 373) tonnes of zinc in concentrates  Operative cash flow was 13 MSEK (36) 0 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Comparative figures refer to the -20 corresponding period of the previous year. -40 CEO WORD possible other financing arrangements are expected to be finalized by the end of Q1 Net sales and profitability improved during Q4 2023. Improved metal prices, lowering as metal prices and production volumes electricity prices and improving metal grades increased. The Company was able to cope are expected to improve profitability as the with fluctuating electricity prices without year progress. significant production disturbances. The drilling results published in December The cost control measures that were initiated give us confidence for increasing the silver during the autumn had a positive impact on production in 2023 and potentially extending the Company’s operative costs. Among the Life of Mine in coming years. The drilling several other measures, we implemented new results are further used to plan the next infill practices to optimize electricity consumption drilling campaigns. Infill drilling will ensure and cost. These new practices will bring us proper planning and cost-efficient execution benefits not only in the current situation but of mining activities as well target to upgrading in long term as well. existing mineral resources to ore reserves. Moving the mining operations to new levels The past months have been challenging for below 360m level has been progressing as the Company and I want to thank the whole planned and we saw improvement in average organization for their dedication to the issues silver grade since November. The silver grade at hand. Focus on cost control and efficiency is expected gradually to improve as we move has been shared on all levels of the the mining operations to new levels. During organization and work for 2023 preparations Q2 this year the mining will be primarily has been progressing well. Among other shifted to the new levels and silver grade is things, preparing for mining contractor expected to rise to the 90-110 g/t range change, starting a new infill drilling campaign, which will increase production volumes and implementing new ways to optimize improve profitability. electricity costs, and finalizing the tailings pond raise have been the results of hard work The situation with cash and cash equivalents from the whole team. remains challenging. Improving the working capital situation is our primary short-term focus. The announced share issues and 1 BUSINESS Other income of 7 MSEK (1) included sales of rate method. At the inception date, the fair fixed assets 1 MSEK and 6 MSEK estimated value of the convertible option liability was 34 The Company operates the silver mine in unrealized final sales price adjustment due to MSEK and the fair value of the liability Sotkamo, Finland. The production was started the price difference between provisional and component was 32 MSEK. On December 31, in March 2019 and the mine produces silver, final invoices for the period. Net sales 2022, the fair value of the convertible option gold, zinc, and lead in concentrates which are included -0,5 MSEK estimated final metal component was 2 MSEK and the fair value of sold to a smelter. In addition, the Company content adjustment due to the metal content the liability component was 39 MSEK. The fair holds mining and exploration rights to mineral difference between provisional and final value changes recognised through Profit and deposits nearby current operations in the invoices for the period. The final sales price Loss account: conversion option liability 1 Sotkamo region in Finland. for silver and gold is based on the monthly MSEK, and liability component 3 MSEK. In the last quarter Net sales was 100 MSEK average market price two months after the The Company received waivers from senior compared to the previous year’s 99 MSEK. delivery, deducted by the customer’s smelter loan and credit facility creditors which allows The rapid rise in metal prices in Q4 had a charges. for deviation from the loan terms regarding positive impact on net sales. Milled ore totaled Investments in the underground mine and the covenant relating to the Company's net 154 000 (182 000) tonnes including the environmental investments amounted to 11 debt in relation to EBITDA. marginal ore. MSEK (25) in Q4. Environmental investments Key figures, group Q4 Q4 FY FY In 2022 EBITDA was 53 MSEK (92). EBITDA included tailings pond dam raise amounting to 2022 2021 2022 2021 developed in Q4 positively compared to the 2 MSEK. The P700 project’s infill drilling Net sales MSEK 100 99 371 387 previous two quarters, driven by increased continued in Q4 and the costs were included EBITDA MSEK 19 28 53 92 production volumes, good metal price in the investments of the period. EBIT MSEK -1,1 6 -34 7 development, and increased cost efficiency. The Company has implemented a directed Equity ratio (%) 38 38 38 38 EBIT was on a good level during Q1 2022 but issue of convertibles of an aggregate nominal Cash liquidity (%) 46 27 46 27 decreased during the following quarters due amount of up to MEUR 6,4. The convertible Personnel at end of the 44 49 44 49 to declined metal prices, the very high cost of contains two components: a conversion period energy, and the increased price of option component that will be recognised at Mill feed (kt) 154 182 635 624 consumables. The cost of electricity almost fair value using the Black-Scholes model Average silver grade 72 71 69 79 doubled year 2022 compared to the previous through a profit and loss account and a liability g/tonne year. component that will be recognised at amortised cost using the effective interest 2 PRODUCTION AND GUIDANCE levels and silver grade is expected to return Lead tons to the longer term average of 90-110 g/t. 600 In the fourth quarter, we milled 154 000 (182 000) tonnes of ore and produced 400 Silver koz about 294 000 (341 000) ounces of silver, 400 200 829 (869) ounces gold, 401 (466) tonnes 300 0 lead, and 874 (1049) tonnes zinc in 200 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 100 concentrates. 0 The silver head grade improved from Q3, Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Silver (g/t) Head grade November and December having the 100 Gold oz 75 highest grades of 2022 with 77 g/t. Milled 50 1 000 volume was on planned level, even 25 750 concentration plant was shut down on 0 500 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 several short periods due to high electricity 250 price. This was possible through the earlier 0 increased capacity of the concentration Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Milled ore (t) plant. Other metals were in line with the 200 000 increased silver production. 150 000 Zinc tons 1 200 100 000 During the last quarter we mined in the 900 50 000 underground mine and the open pit was not 0 600 operated. Mining was progressing to lower Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 300 levels and first stopes were mined between 0 360- and 420-levels. This had the expected Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 positive impact to the ore silver grade. Company expects the silver grades to improve further as the mining of the new levels progresses. From Q2 2023 onwards the mining will primary focus on the new 3 Guidance for 2023 prices, exchange rates, as well as energy prices. The achievement of guidance and The Company expects to produce 1.4 -1.5 medium-term targets requires external million ounces of silver in 2023. However, factors to remain at the level forecasted by Company’s primary target is to maximize the market in mid-February 2023. Further, the revenue and operative cash flow. To achieving the guidance requires achieve this, Company adjusts the mix of strengthening the working capital through metals in the ore feed which might have an share issues and other financing impact on the produced silver ounces. arrangements during Q1 2023. Achieving Further Company expects annual EBITDA the objective of extending the LOM to be at least 28 % and net debt-to-EBITDA requires sufficient financial resources to to be below 2.5 at year-end. implement the drilling program. Medium-term Targets . The Company's Board of Directors has decided on the following medium-term targets until 2025:  Annual silver production > 1.5 Moz  Annual EBITDA > 30 %  Net Debt- to-EBITDA < 2.0  Extending Life of Mine by five years until 2035  Performance rating A verified in all Kaivosvastuu (https://www.kaivosvastuu.fi/) protocols by the external auditor in 2024. The Company's profitability is significantly affected by external factors, such as metal 4 PROJECTS The new infill drilling program commenced in December and will consist of 6000m Preparations for mining contractor change underground drilling to ensure the planning were taking place during autumn 2022. and cost-efficient mining operations for the Together with contractor Veljekset next year’s operations. Toivanen Oy all aspects of the operations were planned and processes agreed upon Drilling is targeted to existing mineralization between the parties. The new contractor on 400 to 600-meter levels. started on 1.1.2023. After the initial ramp- As a part of the REX, regional exploration, up period, the focus will turn to jointly all collected soil samples were analysed and identified methods to improve the results concluded for planning future efficiency of the mining. prospecting activities. Decisions and The technical nitrogen removal project the schedule of prospecting activities will be testing phase was finalized, and the final done in 2023. . verification and on-site pilot will be conducted during Q1 2023. The chosen solution will provide the needed capacity for nitrogen removal and together with other nitrogen-minimizing methods ensures the nitrogen level as per our existing environmental permit. The results from 2022 drilling program was finalized and communicated in December. The results give us confidence for increasing the silver production in 2023 and potentially extending the Life of Mine in coming years. 5 FINANCIAL POSITION SAFETY AND ENVIRONMENT PERSONNEL  The Group’s cash and cash equivalents The lost time injury frequency rate (LT [Excerpt trimmed for readability. Open the original source for the complete filing or document.]