EBIT rose to SEK 52.4M from 16.4M, helped by a one-off 22 MSEK loan-to-grant gain, while silver output fell 9% on lower grade 219. 2026 guidance is unchanged: 0.9-1.2 million ounces of silver and EBITDA over 33 MEUR 3.
Sotkamo Silver AB · Q3 2026 · Reported 23 Oct 2026 · Nordic
Key figures
Million SEK | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
Revenue | 170.90 | 110.10 | +55.2 % |
Operating profit | 52.40 | 16.40 | +219.5 % |
Operating margin | 30.7 % | 14.9 % | +15.8 pp |
Figures in SEK, as reported. Margins are computed from the reported lines.
Reported EBIT tripled, but a one-off gain flatters the comparison
Net sales rose 55% to 171 MSEK (110) and EBIT rose to 52.4 MSEK from 16.4 MSEK, a 30.7% margin against 14.9% a year earlier 19. Other income of 23 MSEK (0) mainly reflects 22 MSEK from converting part of a Business Finland R&D loan into a grant, which the company calls a one-off 6. Excluding it, EBIT would be 30.4 MSEK, a margin of 17.8% and an 85.4% increase 19. This is our calculation, not a company figure.
Two charges ran the other way. A shorter useful life for the tailings pond (depreciation now ends 30 June 2027) added about 16 MSEK of depreciation, and an impairment of about 11 MSEK hit capitalised development expenditure 6. Depreciation was 38.9 MSEK against 18.5 MSEK a year earlier 19. The company-defined EBITDA excluding the grant was 70 MSEK, a 41% margin, against 35 MSEK and 32% reported a year earlier 6.
Prices and non-silver volumes carried revenue while silver output fell
Management attributes the sales increase to higher gold, zinc and lead production and higher silver, gold and zinc prices 6. The average silver price was USD 62.6 per ounce against 39.4 a year earlier 7. Silver production fell 9% to 231 koz even though mill feed rose 27% to 144 kt, because the head grade dropped to 60 g/tonne from 85 4. The company links the lower grade to mining upper-level stopes and about 10% open pit ore 9.
Sales fell from the second quarter because the silver price averaged about USD 63 per ounce against 73 5. Each USD 1 in silver moves annual revenue by roughly 9 MSEK, and hedging added about 4 MSEK to the quarter 6. The CEO says September grades came close to target and expects improvement in the coming quarters 5. The report does not quantify the recovery.
Year-to-date operating cash flow turned positive against a year earlier, but receivables absorbed part of it
Operating cash flow was 43 MSEK in the quarter against a result for the period of 55.0 MSEK, which includes a 6.6 MSEK tax credit 719. For Q1-Q3 it was 213.5 MSEK against a result of 129.2 MSEK, and a year earlier it was -10.5 MSEK against -53.1 MSEK 22. Year to date, working capital absorbed cash: receivables -61.5 MSEK and inventories -19.9 MSEK, partly offset by +35.0 MSEK in operating liabilities 22. Trade receivables stood at 130.1 MSEK against 36.4 MSEK a year earlier 20.
Net debt-to-EBITDA was 0.2 against 3.9 and the equity ratio 58% against 43% 4. Cash plus fund holdings reached 118 MSEK (1), and capex rose to 34 MSEK (16) as underground development accelerated 2. The company says it no longer pursues additional financing 11.
What to watch next
Whether the silver head grade recovers from 60 g/tonne as new underground levels start in Q4 2026, set against 2026 guidance of 0.9-1.2 million ounces (649,784 produced in Q1-Q3) 23.
Guidance calls for net debt-to-EBITDA below 0.1 at year-end, against 0.2 at the end of Q3 19.
A permit decision on the tailings pond expansion is expected in Q4 2026, and final assays from the western mineralisation are due by the end of 2026 11.
Sources
Produced by Clarifo Research with the Clarifo financial research engine from the company's public filings. AI was used in parts of the analysis and drafting. Figures are checked automatically against the filings they come from. This is not investment advice.