* Net profit was KSEK -4,582 (-2,217) and earnings per share to SEK
-0.22 (-0.16).
* The Group sale was KSEK 10 (429).
* Cash and cash equivalents was KSEK 16,287 (21,339) at March 31st 2015.
* Investments were during period KSEK 1,483 (1,807).
* Equity was 131,773 kSEK (136,561) at March 31st 2015.
* Measured and indicated mineral resources increased significantly
* High silver- and goldvalues were encountered in drilling at the deep
extension of the Silver Mine deposit.
* Excellent exploration targets in Mo i Rana in Norway.
* The Annual General Meeting was held on Monday 23 March 2015.
SUMMARY OF SIGNIFICANT EVENTS AFTER THE BALANCE
* There are no reported significant events after the balance.
The comparative numbers relates to the corresponding period of the
previous year\'s income statement and cash flow items and December 31st
2014 for Balance Sheet items.
MESSAGE FROM THE CEO
The changes in the silver-price compensates for the rising exchange rate
of the dollar.
During the first quarter 2015, the silver price has been between 15.5
and 18.2 dollars per troy ounce. If we compare that with the updated
feasibility study from last spring, which counted on a silver price of $
21.5 per troy ounce, the current level seems to be low as the silver
price at the end of first quarter 2015 was about 16.6. However, one
should take into account the strengthening of the dollar exchange rate
that has taken place. A year ago, the dollar against Euro was 1.32 while
it today is 1.08. As the costs of the Silver Mine are mostly in Euros
and invoicing will be in dollars, these changes will approximately
cancel each other out and the profitability of the project has therefore
not changed.
The payback period continues to be about two years from the start of
production. The Internal Rate of Return, the project-IRR with the
above-mentioned silver- and dollar prices are 35 % the first four years
and the operating income (EBITDA) are calculated to 46 million euros.
These figures are calculated with a silver price of 16.6 $/oz. and a
gold price of 1 179 $/oz. and show equally good results as when
feasibility study was published, spring 2014.
The increased dollar price has had a positive effect on willingness to
invest in the mining industry worldwide. One can clearly see that the
interest is waking up and that investors are now looking for projects
that have all permits approved and are close to production.
Financing negotiations that are currently under way between the Company
and investors in North America, Asia and Europe continue. The Company
has also been looking at different ways to make certain investments e.g.
based on leasing contracts. The extension of the financing agreement
with ABB at the end of last year was important, since it reflects the
form of financial packages that we want to work with.
We have been able to confirm that the deposit in Sotkamo continues
downwards, which is important in investors’ view. In particular, the
increase of gold content is a good sign. The results provide new
information concerning the deposit’s structure and its ore potential
downwards, which is a good starting point for extending the mine life
significantly. I am convinced that the measures taken and continuous
improvement-work are key factors to our success.
In addition to the Sotkamo Silver Mine, the Company has obtained good
results from surveys in the Hopeavuori gold-deposit in Tampere, Finland,
but the deposits in Mo i Rana, Norway also indicate good ore-potential.
Finally, I believe that with today\'s metal prices and a strengthened
dollar rate, Sotkamo Silver is well positioned to take advantage of the
next economic cycle with a possible recovery in metal prices. The
leverage might become significant for the Company\'s future value.
Reporting Dates
* The Annual Report will be published in March 2015.
* Annual General Meeting - March 23th 2015.
* Interim report Q1 - April 24th 2015.
* Interim report Q2 - August 12th 2015.
* Interim report Q3 - November 13th 2015.
* Year End Report 2015 - February 12th 2016.
* Annual General Meeting – March 17th 2016.
Share data
The share capital amounted to SEK 141,596,341.47. Number of shares and
votes are 20 643 198. Quota value was SEK 6.86.
A complete Year End Report in Swedish can be downloaded from:
http://www.silver.fi/sivu/se/delarsrapporter/
Sotkamo Silver AB discloses the information provided herein pursuant to
the Swedish Securities Markets Act and/or the Swedish Financial
Instruments Trading Act
The official Stock Exchange Releases are given in Swedish and there may
be slight differences in the translated versions
Stockholm, 24th April 2015
Sotkamo Silver AB
Timo Lindborg, CEO
The Company\'s press releases and financial reports are distributed via
NGM and are available on www.silver.fi For further information please
contact Timo Lindborg, CEO on +46-8-304920.
About Sotkamo Silver AB:
Sotkamo Silver AB´s business concept is to exploit mineral deposits in
the Nordic countries with regards to human society and environment.
Sotkamo Silver owns, through its subsidiary mineral deposits, which
contains silver and gold in Finland. The Company’s main development
project is the Silver Mine project in the municipality of Sotkamo.
Sotkamo Silver applies SveMin’s & FinnMin’s respective rules of
reporting for public mining & exploration companies. Sotkamo Silver
has chosen to report mineral resources and ore reserves according to the
internationally accepted JORC or NI 43-101-code. The company applies
International Financial Reporting Standards (IFRS) as approved by the
European Union.
The ticker symbol is SOSI in NGM Equity in Stockholm and SOSI1 in NASDAQ
OMX Helsinki. ISIN-code for Sotkamo Silver shares is SE0001057910.
Read more about Sotkamo Silver on www.sotkamosilver.com or www.silver.fi
For further information: Timo Lindborg, CEO, tel. +358 40 508 3 507
The official Stock Exchange Release is issued in Swedish and there may
be slight differences in the translated versions.
