Slides
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1 Strong cash flow enabled investing in future growth Interim Report Q3/2026 SOTKAMO SILVER AB
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2 Agenda • Q3 highlights • Financial and operational update • Strategic focus areas • Key takeaways • Outlook • Questions & Answers
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3 Q3 2026 highlights • Net sales increased by 55% to 171 MSEK (110) driven by higher production and prices. Sales were down Q/Q mainly due to decline in silver price. • EBITDA rose to 91 MSEK (35) and EBITDA margin strengthened to 53% (32). During the quarter, approximately 22 MSEK of the Business Finland research and development loan was converted into a grant. • EBIT increased to 52 MSEK (16). EBIT included accelerated depreciation of 16 MSEK and an impairment loss of SEK 11 million. • Accelerated underground mine development increased CAPEX to 34 MSEK (16). • Production amounted to 231,098 ounces of silver (255,194) and 620 ounces of gold (468). Production of silver was higher than in previous three quarters. • Silver grade remained low at 60 g/tonne during the quarter. We expect the silver grade increase during the following quarters. • Positive exploration results at “West”. • Cash and cash equivalents including financial assets at fair value through P&L rose to 118 MSEK (1).
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4 Operational and financial update SOTKAMO SILVER AB
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5 Silver production up vs last three quarters We were able to keep mining volumes at a good level. ✓ Silver production increased vs previous three quarters and amounted to 231,000 ounces (255,000). Production was down Y/Y due to lower silver head grade ✓ Silver head grade in Q3 2026 was lower than our models predicted, especially at the first half of the quarter We expect the silver head grade to increase in the following quarters ✓ ✓ ✓
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6 0 20 40 60 80 100 120 Price of silver, USD, since 2023 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 1 1.05 1.1 1.15 1.2 1.25 EUR/USD since 1/1/2024 Silver prices have eased from their peak but remain well above 2023– 2024 levels ~60% of demand is industrial
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7 Strong Y/Y performance, but lower sales and EBIT Q/Q Net sales increased Y/Y but decreased compared to previous quarter mainly due to lower silver price ✓ EBITDA increased significantly Y/Y and also compared to the previous quarter. 22 MSEK of the Business Finland research and development loan was converted into a grant improving EBITDA EBITDA margin was 53% EBIT increased significantly Y/Y, but decreased Q/Q EBIT was positively impacted by a loan conversion grant (22 MSEK), but negatively impacted by 16 MSEK accelerated depreciation and 11 MSEK impairment loss ✓✓ ✓✓
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8 Financial position has continued to improve Equity ratio was at 58% (43%). This was due to • Increased share capital (convertible loan conversions) • Decreased debt • Increased result ✓ Cash liquidity ratio was 145% (39%) Net debt-to-EBITDA was substantially down Y/Y to 0.2 (3.9)✓ Cash and cash equivalents including financial assets at fair value through P&L rose to 118 MSEK (1) Cash flow from operating activities was 43 MSEK during the quarter and 214 MSEK during Q1-Q3 2026 Improved cash flow and financial position enable the acceleration of investments ✓ ✓ ✓ ✓
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9 Strategic focus areas SOTKAMO SILVER AB
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10 Strategy Strategic cornerstones and 2026 priorities STRATEGIC GOAL 2026 PRIORITIES Mine development Develop the existing mine to support expansion. Improve underground performance Accelerate mine development Mineral resources Explore the current mine and the Kainuu region. West potential in current mining concession Tipasjärvi greenstone belt exploration plan Responsible operations Use natural resources responsibly. Safety Responsible resource use Shared 2026 priority: financing of investments
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11 Investments for future growth Growth strategy execution Underground mine development in Q3 2026 Exploration in “West” +60% Monthly drifting¹ 34 MSEK CAPEX (16 MSEK) 612 m Decline depth 7 / 15 Assay results analysed Alternative mining areas enable higher volumes and better cost efficiency. Lower-level operations start in Q4 2026. Silver head grade is expected to rise in the coming quarters. Mineralised intersections in every hole analysed. “West” could significantly extend mine life and create a new parallel production area. ¹ Q3 2026 monthly average versus the 2025 average. Decline reached the forecast depth.
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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 18 February 2027 Week 13 (week commencing 29 March 2027) 22 April 2027 30 April 2027 30 July 2027 27 October 2027 Q4 2026 Financial Statements and the Board of Directors' Report for the Year 2026 AGM Q1 2027 Q2 2027 Q3 2027 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