SUMMARY OF INTERIM REPORT JANUARY - SEPTEMBER 2015


CURRENT REPORTING PERIOD (3 months, July - September)

* Net result was -294 KSEK (-2,474) and earnings per share -0.01 SEK
  (-0.12).
* Group sale was 4 KSEK (68).
* Investments during the period July - September was 11,162 KSEK
  (3,384).


THE 9 MONTHS PERIOD JANUARY TO SEPTEMBER 2015

* Net result was -6,500 KSEK (-5,046) and earnings per share SEK -0.31
  (‑0.27).
* The Group sale was 446 KSEK (597).
* Cash and cash equivalents was 6,361 KSEK (21,339) as of September 30th
  2015.
* Investments during the period was 14,626 KSEK (7,046) of which
  10 000 KSEK refers to the Blaiken plant.
* Equity was 129,913 KSEK (136,561) as of September 30th 2015.
* Tests confirmed the efficiency of the ore sorter at the Silver Mine.
* A 85 MSEK financing was offered from TEKES as a development loan.
* Sotkamo Silver purchased the Blaiken plant.
* Excellent exploration targets in Mo i Rana in Norway.
* High silver- and gold-grades were encountered in drilling at the deep
  extension of the Silver Mine deposit. 

 

SUMMARY OF SIGNIFICANT EVENTS AFTER THE BALANCE

* Improved conditions related to the loan from TEKES.
* Taaleritehdas subscribed for convertibles in Sotkamo Silver at an
  amount of 14.1 MSEK and in addition to that they granted a guarantee.
* Arttu Ohtonen was appointed Managing Director for the Finnish
  subsidiary. 

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

During the last 12 months the Management of Sotkamo Silver have
developed the technical and geological conditions by new drillings,
analysis and tests. I believe that this has significantly improved the
profitability of the project, as the result of these efforts are
included in the production line. Measures taken and the result of the
development project has improved the profitability at present silver
price levels.

The work to carry out a financing solution is priority number one for
the Board and Management. Possibilities evaluated are increased equity,
bond loan or other complex financing solutions. The goal is to have a
financing package that is composed of several parts in order to a have a
good solution as possible for our owners. The last years have been
difficult for investments in industry, in particular within the mining
industry, but now we feel that there is an increased interest to invest.

We have negotiated a financing- and delivery agreement with ABB Oy
Finland. The amount of the agreement is dependent of the value of the
delivery, but maximized to 5 MEUR, or approx. 47MSEK.

TEKES - the Finnish Funding Agency for Innovation, has granted Sotkamo
Silver a possibility to additional financing with a development loan of
9,4 MEUR, which correspond to approximately 85 MSEK.

Earlier this year the Company acquired the plant at Blaiken. The plant
is well fitted for Sotkamo Silver´s needs and as a result of this, the
total cash needed for the Silver Mine project has decreased by 7 MEUR,
which is equivalent to 65 MSEK, compared to an acquisition of a new
plant from elsewhere.

Taaleritehdas signed a convertible loan in the Company at an amount of
14.1 MSEK with the quota value SEK 6.86 as per October 31st. In addition
they granted an issue guarantee of totally 3 MEUR, being equivalent to
28 MSEK. The signing of the convertibles and the guarantee are a part of
the final financing package for construction of the Silver Mine.

The above mentioned parts of the financing are very important steps for
the final financing of the Silver Mine project. We still have a bit to
go, but with the cash available today we can work at least another 12
months.

I would warmly like to thank Ilkka Tuokko, who has now retired, for the
great efforts he has made for the Company. His enthusiasm and commitment
has been and essential for the Silver Mine’s development. The Board and
Management are happy that Illka Tuokko has decided to continue to work
for us in the position as Chairman in the Finnish subsidiary.

I also take the opportunity to welcome Arttu Ohtonen to his new position
as Managing Director for the Finnish subsidiary.

 

Timo Lindborg

 

Reporting Dates:

* 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, November 13th 2015

Sotkamo Silver AB

Timo Lindborg, CEO

 

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.

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.

www.silver.fi

 

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

Attachments

151113_PM_Q3_2015_ENG_e8456.pdf 151113_SOSI_Q3_2015_3a0b7.pdf