Sotkamo Silver, a junior mining company based in Sweden, has reported an improvement in 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.
In 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. The company’s EBITDA also increased to 17 million kronor from 6 million kronor in the comparison period.
The increase in profitability was attributed to higher silver production volumes, a higher average silver content, and the favorable development of 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 guidelines and expects profitability to remain strong in the coming years.
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 and maintaining a high level of profitability in the years to come.
Sotkamo Silver’s improved profitability can be attributed to several factors including higher silver production volumes, a higher average silver content, and favorable market conditions such as rising demand for precious metals like silver.
Additionally, Sotkamo Silver has been able to maintain control over its costs through efficient operations while also closely monitoring external factors such as metal prices and exchange rates.
As a result of these efforts, Sotkamo Silver expects continued strong profitability in future years despite challenges such as inflation and rising costs.
Overall, Sotkamo Silver’s focus on operational efficiency and careful management has resulted in improved profitability in its silver mining operations compared to previous years.