Slides
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1 Progress in refinancing Interim Report Q2/2025 SOTKAMO SILVER AB
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2 Agenda of the day • Key takeaways • Outlook • Financial and operational update for Q2/2025 • Silver price and market outlook • Strategic focus areas • Questions & Answers
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3 Q2 2025 key takeaways • Net sales decreased by 25% to 79 MSEK (105 MSEK*). Lower average silver grade and lower mill feed, led to lower silver production. Net sales increased by 15% compared to Q1 2025 • EBITDA fell by 92% to 2 MSEK (19), EBITDA margin weakened to 2% (18), but EBITDA increased by 9 MSEK compared to Q1 2025 • EBIT decreased to -16 MSEK (0), however EBIT increased by 8 MSEK compared to Q1 2025 • The profitability decreased mainly due to continued mining challenges, which led to lower mill feed volume and reduced ore quality. As a result, silver production declined, reducing net sales and profitability. • Cash and cash equivalents amounted to 1 MSEK (30). The Company has a credit facility of 2 MEUR (22 MSEK) and is negotiating the refinancing of its Senior and Convertible Loans and additional financing of 1 MEUR (11 MSEK) • CAPEX went up to 16 MSEK (12) • The production amounted to approximately 187,000 ounces of silver (274,000), 417 ounces of gold (590), 144 tonnes of lead (167), and 370 tonnes of zinc (359) in concentrates
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4 Outlook SOTKAMO SILVER AB
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5 Guidance for 2025 The Company announced 12 June 2025 that its silver production is expected to fall slightly below the lower end of the previously estimated production range. As a result, the EBITDA margin and the net debt relative to EBITDA are also expected to fall slightly short of the targets. In addition, the Company stated, that it will provide more detailed full-year estimates in its Q2 interim report. The new, updated guidance (given 31.7.2025) for 2025: • The Company expects to produce 1.0 – 1.2 million ounces of silver • Annual EBITDA margin of at least 22% • Net debt-to-EBITDA to be below 2.5 at year-end Previous guidance for 2025 (given on February 14, 2025): • The Company expects to produce 1.2–1.4 million ounces of silver • Annual EBITDA margin to be at least 30% • Net debt-to-EBITDA to be below 1.5 at year-end Medium-term targets Medium-term targets until the end of the year 2027 will be updated during the second half of the year 2025 The Company's profitability is significantly affected by external factors, such as metal prices and exchange rates and internal factors like uncertainties related to ore volumes and metal grades. The achievement of the guidance assumes that metal prices and EUR/USD rate stay approximately at the current level of the time when the guidance was published (31 July 2025).
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6 Operational and financial update SOTKAMO SILVER AB
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7 Continued mining challenges cut volumes Milled ore decreased by 14% to 109,000 tonnes compared to the previous year of 127,000 tonnes. Mining volume was below the Company's production plans due to mining challenges at the beginning of the quarter and additionally operational delays due to inadequate mining resources in June. ✓ Silver production amounted to 187,000 ounces (274,000). Silver production was lower compared to the previous year due to continued mining challenges, which led to lower mill feed volume and reduced ore quality ✓The silver head grade was 65 g/tonne (83), which was result of mining challenges in the beginning of the quarter and operational delays in getting into new stoping areas at the end of quarter We expect the silver head grade to increase above 90 g/tonne during Q3, which we have seen realizing in July. ✓ ✓ Target range of 90-110 g/tonne
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8 Net sales and profitability down due to lower mining volumes Net sales decreased by 25% to 79 MSEK (85). Lower average silver grade and lower mill feed led to lower silver production. Net sales increased by 15% compared to Q1 2025 ✓ EBITDA fell to 1 MSEK (19) and EBITDA margin to 2% (18). EBITDA increased by 9 MSEK compared to Q1 2025 ✓ The profitability decreased mainly due to continued mining challenges, which led to lower mill feed volume and reduced ore quality. As a result, silver production declined, reducing net sales and profitability. ✓ EBIT decreased to -16 MSEK (0), however EBIT increased by 8 MSEK compared to Q1 2025 ✓ .
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9 Cash position Equity ratio was at 38% (40)✓ Cash liquidity ratio was 18% (48) Net debt-to-EBITDA increased to 3.4 (2.1)✓ Group’s cash and cash equivalents decreased to 1 MSEK (30) The Company has a credit facility of 2 MEUR (22 MSEK) and is negotiating the refinancing of its Senior and Convertible Loans and additional financing of 1 MEUR (11 MSEK) The Company generated cash flow from operating activities 10 MSEK during Q2/2025 ✓ ✓ ✓ ✓
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Progress in financing negotiations Our cash position has been weak, and therefore we have conducted negotiations to strengthen our financial position EGM decisions • On 23 July, EGM authorized the board to issue new shares, warrants and/or convertibles. • The purpose of the authorization is to enable implementation of the previously announced planned offer to the holders of the Company's outstanding 6.3 MEUR (71 MSEK) convertible loans to exchange their existing convertibles for either new shares or new convertibles in the Company. Senior loan negotiations • Also on July 23, we announced that the holders of the senior loan gave a conditional commitment to amend the loan terms, including the following changes: •The loan maturity will be extended by at least two years (previously maturing in 2026) •The loan amount will be increased by one million euros The decision is conditional upon the success of the Company's planned convertible loan arrangement By refinancing, the Company also enables the continuation of the environmental and restoration guarantee.
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11 Silver price development and expected supply and demand 0 5 10 15 20 25 30 35 40 Price of silver, USD, since 2019 Silver price has continued an upward trend Silver demand exceeds supply 0 200 400 600 800 1000 1200 2019 2020 2021 2022 2023 2024 2025e Supply Demand Source: Silver Institute’s World Silver Survey 2025 Moz USD has weakened significantly in 2025 ~58% industrial demand 0,9 0,95 1 1,05 1,1 1,15 1,2 EUR/USD since 1/1/2024
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12 Strategic focus areas SOTKAMO SILVER AB
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Development of strategic focus areas Strategic focus area Key activities Progress Development of the existing silver mine and ensuring a solid foundation for expansion Extending Life-of-Mine (LOM) • Campaign for LOM-related exploration drilling finalized in April. Sample analysis is ongoing, but preliminary results are promising. Operational efficiency • Our key focus has been in stabilizing the production. We announced in June, that we have chosen a new mining contractor to begin work on January 1, 2026. Financing of investments • We are negotiating to extend the maturity date of the remaining 8.1 MEUR (90.3 MSEK) Senior Loan agreement. In addition, we intend to offer to the holders of the Company's outstanding convertible loans to exchange their existing convertibles for either new shares or new convertibles. Increase mineral resources by continuing exploration in the current mine and the Kainuu region Exploration, broader Kainuu region • Focused on the development of the current mine and the sites in its immediate vicinity. • On the exploration campaign on western side of the current mineralization, five out of seven drill holes intersected promising silver zones. Responsible use of natural resources Towards Sustainable Mining -system • We have been granted an expansion permit for the mining concession by the authorities, enabling us to expand the underground section of the mine to a wider area than previously permitted.
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Exploratory drilling and preliminary results • The company has conducted exploratory drilling at the existing mine to extend its life until 2035. • Drilling began at the end of 2024 and was completed in April 2025. • A total of 12 holes were drilled, amounting to 7,429 meters. The focus was particularly on depths between 700–800 meters. • Sample analysis is ongoing, but preliminary results are promising and confirm the company’s earlier expectations that the mineralization continues similarly at greater depths. • Final results will be ready in the autumn and will be published by the end of the year. Extending Life-of-Mine (LOM), current mine • We focus on the development of the current mine and the sites in its immediate vicinity. • On the exploration campaign, on western side of the current mineralization, five out of seven drill holes intersected promising silver zones that exceeded or were at the upper end of the company's current silver grade target of 90– 110 g/t. • Gold grades were also a positive surprise. Exploration, broader Kainuu region
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15 How to follow us? • Our investor website: https://www.silver.fi/en/investors • Follow our Inderes page: https://www.inderes.fi/fi/yhtiot/sotkamo-silver • Subscribe to our releases: https://www.silver.fi/en/investors/press/subscribe 23 October 2025 20 February 2026 Q3 Interim Report Q4 Interim Report Financial calendar
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16 Q & A SOTKAMO SILVER AB
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17 Thank you!
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18 Key figures
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19 Average silver prices and EUR/USD and EUR/SEK rates
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20 Production of gold, lead and zinc