Finland's Sotkamo Silver Q3 sales jump on higher metal output, prices 

Overview

• Finland mining and ore exploration firm's Q3 net sales rose 55% yr/yr, driven by higher metal production and prices

• EBITDA more than doubled yr/yr, with margin rising to 53%

• Company announced further exploration west of current mine after quarter end

Outlook

• Company expects 2026 silver production of 0.9-1.2 mln ounces

• Annual EBITDA for 2026 expected to exceed EUR 33 mln

• Net debt-to-EBITDA for 2026 expected below 0.1 at year-end

Result Drivers

• HIGHER METAL OUTPUT AND PRICES - Co said increased gold, zinc and lead production and higher silver, gold and zinc prices drove revenue growth

• GOLD PRODUCTION - Co attributed improved profitability mainly to increased gold production and positive price development

• MINING VOLUMES - CEO said increased mining volumes contributed to higher silver production and supported growth

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "sell"

• The average consensus recommendation for the non-gold precious metals & minerals peer group is "buy."

• Wall Street's median 12-month price target for Sotkamo Silver AB is SEK3.90, about 1.5% below its October 22 closing price of SEK3.96

• The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 4 three months ago

Reuters Recommended Reads

• Oct 22 - Finland's Metso Q3 orders jump as mining demand lifts minerals segment

• Oct 20 - Canada's Altius Minerals sees record Q3 royalty revenue

• Oct 22 - India permits large silver imports despite weak domestic demand

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)