Sotkamo Silver, a junior mining company operating in Sweden, has reported improved profitability in its silver mining operations compared to the previous year. Although the company experienced a loss in the first quarter of the year, it saw an increase in silver production and maintained its production guidance for the year.
During the first quarter of 2021, Sotkamo Silver reported an operating loss of SEK 1 million on a turnover of SEK 85 million. This was an improvement from the operating loss of 9.7 million kronor on a turnover of 67.2 million kronor in the same period last year. Additionally, EBITDA increased to 17 million kronor from 6 million kronor in the comparison period.
The increase in profitability can be attributed to higher silver production volumes, a higher average silver content, and favorable developments in the silver price. However, sales of zinc and lead decreased due to lower prices and concentrations. Despite challenges such as inflation and rising costs, Sotkamo Silver maintained its production targets and expects strong profitability to continue into the future.
To further improve efficiency and profitability, Sotkamo Silver is focusing on operational efficiency and closely monitoring external factors such as metal prices and exchange rates. The company is committed to achieving its production targets while maintaining a high level of profitability for years to come.
In conclusion, Sotkamo Silver’s improved profitability can be attributed to several factors including higher silver production volumes, a higher average silver content, and favorable developments in the silver price. Despite facing challenges such as inflation and rising costs, the company remains focused on operational efficiency and maintaining strong profitability for years to come.
