Slides
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1 Improved profitability supported by soaring silver price Interim Report Q3/2025 SOTKAMO SILVER AB
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2 Agenda of the day • Key takeaways • Financial and operational update for Q3/2025 • Silver price and market outlook • Strategic focus areas • Outlook • Questions & Answers
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3 Q3 2025 key takeaways • Net sales decreased by 3% to 110 MSEK (114 MSEK). Silver production was lower than in the same period last year due to lower silver grade and lower mill feed. The positive development of silver and gold prices supported net sales, and the increase in sales was 60% compared to Q1 2025 and 39% compared to Q2 2025. • EBITDA fell by 30% to 35 MSEK (50). EBITDA margin weakened to 32% (44) compared to Q3 2024. Compared to Q1 2025 EBITDA increased 43 MSEK and 33 MSEK compared to Q2 2025. • EBIT decreased to 16 MSEK (30), however EBIT increased by 40 MSEK compared to Q1 2025 and 33 MSEK compared to Q2 2025. • Profitability improved clearly compared to the previous quarters of the year, but weakened from the comparison period mainly due to lower mill feed volume and silver grade. • CAPEX fell to 16 MSEK (18). • Production amounted to approximately 255,000 ounces of silver (312,000), 468 ounces of gold (684), 167 tonnes of lead (211), and 404 tonnes of zinc (507) in concentrates. • Cash and cash equivalents amounted to 1 MSEK (76). The Company has a credit facility of 2 MEUR (22 MSEK). • Refinancing was successfully completed in August.
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4 Operational and financial update SOTKAMO SILVER AB
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5 Increase in production volumes Q/Q Milled ore decreased by 8% to 113,000 tonnes compared to the previous year of 123,000 tonnes. Milled ore was lower compared to the previous year, due to limited underground mining volume, but already higher than previous quarters of 2025. ✓ Silver production amounted to 255,000 ounces (312,000). Silver production was lower compared to the previous year, due to lower silver head grade and the limited underground mining volume, but already higher than previous quarters of 2025. ✓ The silver head grade was 85 g/tonne (97), which was mainly influenced by operational challenges during previous quarters preventing us from fully reaching planned stoping areas in Q3. We expect the silver head grade to consistently increase above 90 g/tonne during Q4. ✓ ✓ Target range of 90-110 g/tonne ✓ ✓
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6 Profitability improved compared to previous quarters Net sales decreased by 3% to 110 MSEK (114 MSEK). Silver production was lower than in the same period last year due to lower silver grade and lower mill feed. The positive development of silver and gold prices supported net sales which increased by 60% compared to Q1 2025 and 39% compared to Q2 2025. ✓ EBITDA fell to 35 MSEK (50) and EBITDA margin to 32% (44%). EBITDA increased by 43 MSEK compared to Q1 2025 and 33 MSEK compared to Q2 2025. ✓ Profitability improved clearly compared to the previous quarters of the year, but weakened from the comparison period mainly due to lower mill feed volume and silver grade ✓ EBIT decreased to 16 MSEK (30). EBIT increased significantly compared to the previous quarters of the year. The Company hedges most of the price of the silver delivered. Therefore, the increase in the spot price of silver will be realized in revenue and EBITDA with a slight delay, the hedging horizon being 2 months. The hedging decreased net sales for the quarter by 6 MSEK. ✓ . ✓ ✓ ✓
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7 Cash position still tight but expected to improve Equity ratio was at 43% (43%). Company carried out an exchange offer to the holders of the company’s convertible loan. 49.8% (3.2 MEUR) of the convertibles was exchanged for new shares leading to an increase in share capital by 33 MSEK. ✓ Cash liquidity ratio was 39% (87%). Net debt-to-EBITDA increased to 3.9 (1.4).✓ Group’s cash and cash equivalents decreased to 1 MSEK (76). We expect the cash position to improve, supported by higher volumes and the positive price development of silver and gold. The Company has a credit facility of 2 MEUR (22 MSEK) and the company generated cash flow from operating activities 11 MSEK during Q3/2025. ✓ ✓ ✓ ✓ ✓
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Refinancing Old 6.3 M€ convertible 3.2 M€ converted to shares New 2.6 M€ convertible Old 0.5 M€ convertible Maturity date 31 October 2029 Maturity date 30 September 2026 Maturity date 30 September 2026 Old 8.1 M€ senior loan 1.0 M€ additional funding Amended 9.1 M€ senior loan Maturity date 30 April 2026 Maturity date 30 April 2028 or 30 April 2029 Convertible loan Senior loan
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9 Silver price development and expected supply and demand -5 5 15 25 35 45 55 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 in 2025 ~58% industrial demand 0,9 0,95 1 1,05 1,1 1,15 1,2 EUR/USD since 1/1/2024 >60% increase in silver price YTD
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10 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 assay results have been received during third quarter and work for reporting the MRE is ongoing. Operational efficiency • Operational performance improved from H1/25 and mining capacity has been on more stable level. Further work ongoing for new contractor starting in the January 1 2026 as well as ensuring alternative mining areas for future production. Financing of investments • Refinancing was successfully completed in August. Increase mineral resources by continuing exploration in the current mine and the Kainuu region Exploration, broader Kainuu region • Focus on the development of the current mine and the sites in its immediate vicinity. • Drilling campaign for western side of the current mineralization has been done in 2025 • The work for planning the next campaign on west side is ongoing. Responsible use of natural resources Responsible water management • The environmental permit application for the tailings pond expansion progressed to the public hearing phase. The applied tailings pond expansion will ensure the tailings’ deposition capacity at least until the end of LOM target of 2035.
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12 Outlook SOTKAMO SILVER AB
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13 Guidance for 2025 (unchanged) 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 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). Medium-term targets Medium-term targets until the end of the year 2027 will be updated during the last quarter of the year 2025
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14 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 20 February 2026 Week commencing 30 March 20260 February 2026 29 April 2026 31 July 2026 23 October 2026 The Annual General Meeting is planned to be held on 21 April 2026 in Stockholm. Q4 Interim Report Financial Statements and the Board of Directors' Report for the Year 2025 Q1 Interim Report Q2 Interim Report Q3 Interim Report Financial calendar
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15 Q & A SOTKAMO SILVER AB
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16 Thank you!
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17 Key figures
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18 Average silver prices and EUR/USD and EUR/SEK rates
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19 Production of gold, lead and zinc