Slides
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1 Record net sales and strong cash flow Interim Report Q2/2026 SOTKAMO SILVER AB
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2 Agenda • Q2 highlights • Financial and operational update • Strategic focus areas • Key takeaways • Outlook • Questions & Answers
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3 Q2 2026 highlights • Net sales were at a record high and increased by 151% to 198 MSEK (79 MSEK) driven by higher silver and gold production and prices • EBITDA rose to 86 MSEK (1) and EBITDA margin strengthened to 43% • The measures implemented to improve operational performance have been successful and are reflected in the results achieved • Production of silver increased to 217,222 ounces (186,877) • Gold production increased to 996 ounces (417), as we mined and processed also stopes with high gold content, but somewhat lower silver content • We expect the silver grade to consistently increase to 80–90 g per tonne in H2 2026 • Cash rose from Q1 2026 by 66 MSEK and increased to 141 MSEK (1). Stronger financial position enables us the acceleration of investments • Positive profit warning in May
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4 Operational and financial update SOTKAMO SILVER AB
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5 Production up Q/Q and Y/Y We were able to increase volumes substantially in Q2. Good progress in drifting continued and decline reached targeted 595 m depth by the end of Q2 2026. ✓ Silver production amounted to 218,000 ounces (187,000). Gold production increased to 996 ounces (417). ✓ During Q2/2026, we continued mining stopes with higher gold grades, but lower silver content. We expect the silver head grade to consistently increase to 80-90 g/tonne in H2 2026. ✓ ✓✓ ✓
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6 Silver price development and expected supply and demand Silver price has decreased to around 60 dollar Silver demand exceeds supply 0 200 400 600 800 1000 1200 2020 2021 2022 2023 2024 2025 2026e Supply Demand Source: Silver Institute’s World Silver Survey 2026 Moz USD relatively stable in 2026 ~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 2023 2.5x increase in silver price 2025
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7 Record sales but higher costs due to accelerated mine development Net sales increased by 151% to 198 MSEK (79 MSEK). Net sales were at a record high Higher net sales were driven by higher volumes and positive price development Y/Y ✓ EBITDA increased to 86 MSEK (1) EBITDA margin increased to 43% Mining costs increased Y/Y and Q/Q primarily because of the achieved increase in mining volumes. Part of the costs relates to preparatory drifting and stope preparation carried out to support future ore mining. EBIT increased to 73 MSEK (-16). ✓ ✓ ✓ ✓ ✓
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8 Financial position has continued to improve Equity ratio was at 53% (38%). This was due to • Increased share capital (convertible loan conversions) • Decreased debt • Increased result ✓ Cash liquidity ratio was 122% (18%). Net debt-to-EBITDA was substantially down Y/Y to 0.2 (3.4). We expect Net debt-to-EBITDA to be below 0.1 at year-end ✓ Cash rose from Q1 2026 by 66 MSEK and increased to 141 MSEK (1). Improved cash flow and financial position enables the acceleration of investments. ✓ ✓ ✓ ✓
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9 Strategic focus areas SOTKAMO SILVER AB
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10 Strategy 2026 key focus areas Underground operational performance Acceleration of underground mine development Exploration activities for future growth Financing of investments Safety Responsible use of natural resources
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11 Key takeaways Longer-term potential Good silver priceContinued actions to improve operational performance ▪ The life-of-mine is at least next ten years. ▪ Additional potential to increase the LOM in depth ▪ Promising potential in “West”. ▪ Silver price increased significantly in 2025 and has stayed at a good level despite the recent decline. ▪ High prices have significant positive effect on our profitability and investment capability. ▪ The measures implemented have been successful and are reflected in the results achieved ▪ The Company’s key focus remains on increasing production and improving underground operational performance. ▪ Mine development activities have increased both OPEX and CAPEX Strengthened financial position ▪ Our improved financial position enables us the acceleration of investments.
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12 Outlook SOTKAMO SILVER AB
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13 Guidance for 2026 Guidance (given 28 May) for 2026 • The Company expects to produce 0.9 -1.2 million ounces of silver • Annual EBITDA is expected to be over 33 MEUR • Net debt-to-EBITDA is expected to be below 0.1 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. 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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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 23 October 2026 Q3 Interim Report Financial calendar
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15 Q&A
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16 Key figures
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17 Average silver prices and EUR/USD and EUR/SEK rates
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18 Production of gold, lead and zinc