Slides
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1 High profitability in Q4 and strengthened 2026 outlook Financial Statement Release 2025 SOTKAMO SILVER AB
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2 Agenda of the day • Sotkamo Silver in brief • Key takeaways • Financial and operational update for Q4/2025 • Silver price and market outlook • Strategic focus areas • Outlook • Questions & Answers
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3 Sotkamo Silver in brief • Primary silver mine commissioned 2019 with additional exploration areas in Finland Kainuu region. • In addition to silver, we produce gold, zinc and lead. • Around 50 of our own employees are responsible for concentration plant and managing the mining operations. Actual mining work carried out by contractors with around 110 employees. • We use the natural resources responsible. Reached A level in Towards Sustainable Mining Finland standard and focus on open and active dialogue within our local community • The global silver market remains in a state of undersupply, as demand continues to be strong — driven by silver’s exceptional thermal and electrical conductivity, the green transition, and investment demand. • A one-dollar increase in the price of silver means approximately 10 million SEK of additional annual revenue for us.
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4 Sotkamo Silver from start to today • The company was listed in 2012. • The mine and concentration plant were commissioned in 2019. • The reported mineral resources have continuously improved, from 6 million tonnes in 2014 to estimated 8.5 million tonnes in 2024 and finally, to 12.7 million tonnes at the end of 2025. • A substantial exploration potential exists in current mine area – on west side and below of the current reported mineralization. • In 2026, the focus is on increasing production volume and improve overall operational reliability for future years. • The high silver price and the resulting strong cash flow provide opportunities to accelerate investments while simultaneously strengthening the financial position.
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5 Q4 2025 key takeaways • Net sales increased by 25% to 135 MSEK (109 MSEK). Silver production was lower than in the same period last year, but the positive development of silver and gold prices supported net sales which increased by 97% compared to Q1 2025, 71% compared to Q2 2025 and 23% compared to Q3 2025. • Profitability improved significantly from the comparison period due to positive price development of silver and gold. • EBITDA rose by 119% to 51 MSEK (23) and EBITDA margin strengthened to 38% (21) compared to Q4 2024. Compared to Q1 2025 EBITDA increased 58 MSEK, 49 MSEK compared to Q2 2025 and compared to Q3 2025 16 MSEK. • EBIT increased to 33 MSEK (3). • CAPEX fell to 15 MSEK (24). • Production amounted to approximately 193,000 ounces of silver (271,000), 579 ounces of gold (604), 154 tonnes of lead (154), and 389 tonnes of zinc (438) in concentrates. • Cash and cash equivalents amounted to 14 MSEK (88). The Company has a credit facility of 2 MEUR (22 MSEK). • The Company updated Mineral Resource and Ore Reserve Estimates which supported significant extension of life of the mine. • Preparations for smooth transition of the mining contractor were made during Q4 and the new contractor started operations 1.1.2026.
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6 Operational and financial update SOTKAMO SILVER AB
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7 Production volumes were below targets Milled ore decreased by 10% to 110,000 tonnes compared to the previous year of 123,000 tonnes. Milled ore was lower than expected due to insufficient mining capacity. ✓ Silver production amounted to 193,000 ounces (271,000). Silver production was lower compared to the previous year, due to lower silver head grade and the limited underground mining capacity. ✓ The silver head grade was 65 g/tonne (84), which was mainly influenced by operational challenges during previous quarters preventing us from fully reaching planned stoping areas. During the quarter we also mined stopes where value was driven by higher gold grade. We expect the silver head grade to stay at slightly lower level in the beginning of Q1/2026, but then to consistently increase to 80-90 g/tonne. ✓ ✓ ✓ ✓ ✓
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Ensuring adequate mining capacity and timely execution remains the primary focus for 2026 • Underground mining performance has not been consistent enough. • A new mining contractor started operations at the beginning of 2026. Preparations for the start-up during the fourth quarter were according to the plans and ramping up operational performance continues during Q1. • In addition, we have invested in recruiting key personnel and launched operational development program supported by external consultants. • The measures aim to increase silver production from the 2025 level and, on the other hand, to ensure stable higher-level production for the coming years. • We are confident that the ongoing work and changes made will bring the needed long-term sustained improvements.
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9 Significant improvements in profitability Net sales increased by 25% to 135 MSEK (109 MSEK). Higher net sales were driven by positive development of silver and gold prices. ✓ EBITDA increased to 51 MSEK (23) EBITDA margin increased to 38% (21%) Profitability improved significantly due to positive price development of silver and gold. The Company's profitability improved quarter by quarter in 2025. EBIT increased to 32 MSEK (3). ✓ ✓ ✓ ✓ ✓
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10 Financial position expected to improve significantly Equity ratio was at 40% (41%).✓ Cash liquidity ratio was 51% (75%). Net debt-to-EBITDA was substantially down Q/Q, but increased Y/Y to 2.5 (1.6). ✓ Cash and cash equivalents amounted to 14 MSEK (88). The Company has a credit facility of 2 MEUR (22 MSEK) We expect the cash position to improve significantly, supported by higher volumes and significantly higher prices of silver and gold. ✓ ✓ ✓
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11 Silver price development and expected supply and demand Silver price increased very strongly in 2025 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 weakened against EUR in 2025 ~60% industrial demand 1 1,05 1,1 1,15 1,2 1,25 EUR/USD since 1/1/2024 0 20 40 60 80 100 120 Price of silver, USD, since 2019 2.5x increase in silver price 2025
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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) • The Company has conducted exploratory diamond core drilling at the existing mine to extend its life until 2035. Campaign was successful and Mineral resources and Ore reserves were updated accordingly at the end of the year. Operational efficiency • A new contractor was able to start operations as planned and ramping up operational efficiency continues during Q1. • We also have strengthened our own mining team personnel and have started mining productivity and efficiency program with support of external consultancy. Financing of investments • We estimate that we can implement the investment plan with cash flow financing. However, we maintain a contingency funding plan to ensure access to alternative sources of liquidity in the event of unexpected disruptions. 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. • Project West will remain our focus area in 2026 for development steps towards expanding the life-of-mine further. Responsible use of natural resources Tailings 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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Updated mineral resources and ore reserves • 31 December 2025, Sotkamo Silver reported that Mineral Resource Estimate (MRE) has increased to 12.7 (8.5) million tons • The most precise category, “Measured”, grew significantly from 0.9 million tonnes to 7.3 million tonnes. • Ore Reserve Estimate (ORE) totals to 1,598 million tons (Proven and Probable) at average grades of 85 g/t silver and 0,22 g/t gold. • Our tactic has been to convert Mineral Resources to Ore Reserves annually minimum the same amount that has been mined out. This is done through continuous in-fill drilling. • Current ore reserves and estimated economically mineable mineral resources give a strong base to continue mining operations for at least next 10 years, and the aim is to extend the mine lifetime by additional exploration drilling.
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15 Outlook SOTKAMO SILVER AB
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16 Guidance for 2026 Guidance (given 20 February 2026) for 2026 • The Company expects to produce 0.9 -1.2 million ounces of silver • Annual EBITDA is expected to be over 25 MEUR • Net debt-to-EBITDA is expected to be below 1.0 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 prices used in the guidance for silver and gold are slightly lower than at the time of publication of the guidance (20 February 2026). Medium-term targets Medium-term targets until the end of year 2028 • Annual silver production of 1.4 million ounces • Annual EBITDA margin > 30% • Net debt-to-EBITDA < 2.0 • Performance on A-level in Towards Sustainable Mining (TSM) standard
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17 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 Week commencing 30 March 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. 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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18 Q & A SOTKAMO SILVER AB
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19 Thank you!
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20 Key figures
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21 Average silver prices and EUR/USD and EUR/SEK rates
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22 Production of gold, lead and zinc