Sotkamo Silver’s underground silver mine and processing plant are surrounded by extensive forests in Finland’s Kainuu region. AI-generated illustration: OpenAI. Copyright: Conventus.
Finland’s only active silver mine has reported the highest quarterly revenue in the company’s history. Sotkamo Silver’s net sales increased by 151 per cent in the second quarter of 2026, while the operation moved from an operating loss to a substantial profit.
Net sales for April–June reached SEK 198 million, equivalent to slightly more than EUR 18 million. This compares with SEK 79 million, approximately EUR 7 million, in the same period of 2025.
Sotkamo Silver reports its financial results in Swedish kronor because its parent company is listed in Stockholm. The company’s mine is located in Sotkamo in Finland’s Kainuu region and produces gold, lead and zinc in addition to silver.
The improvement was mainly driven by increased production of silver, gold and lead, combined with higher silver and gold prices. The figures were published in the company’s interim report and have also been reported by Finnish public broadcaster Yle.
Operating profit rose to SEK 73 million, or approximately EUR 6.6 million. A year earlier, the company recorded an operating loss of SEK 16 million. The operating margin improved from minus 20 per cent to 37 per cent.
Earnings before interest, taxes, depreciation and amortisation, EBITDA, climbed to SEK 86 million. The EBITDA margin reached 43 per cent, compared with 2 per cent in the corresponding quarter of 2025.
Higher production meets rising silver prices
The mine produced 217,722 ounces of silver during the quarter, up from 186,877 ounces a year earlier. Gold production more than doubled from 417 to 996 ounces.
Lead production increased from 144 to 172 tonnes. Zinc output moved in the opposite direction, falling from 370 to 345 tonnes.
Silver remains the mine’s principal product, but the other metals also contribute to revenue and profitability. Gold made a particularly strong contribution during the quarter as both production and market prices increased.
Chief executive Mikko Jalasto said the silver price averaged approximately USD 73 per ounce during the second quarter. It has since occasionally fallen below USD 60 per ounce but remains well above the level of less than USD 40 recorded a year earlier.
In May, Sotkamo Silver issued a positive profit warning and raised its EBITDA forecast for 2026. The revision was primarily based on the higher silver price.
The company currently expects to produce between 0.9 million and 1.2 million ounces of silver in 2026. Annual EBITDA is forecast to exceed EUR 33 million, provided production and metal prices develop in line with the company’s assumptions.
The strong performance also improved liquidity. Cash and cash equivalents increased by SEK 66 million during the quarter, reaching SEK 141 million at the end of June.
Capital expenditure rose from SEK 16 million to SEK 22 million. The investments are being used to accelerate underground mine development and prepare new areas for future ore production.
First-half revenue rises 160 per cent
For the first 6 months of 2026, Sotkamo Silver’s net sales increased by 160 per cent to SEK 384 million, equivalent to more than EUR 35 million. Revenue in the corresponding period of 2025 amounted to SEK 148 million, or slightly more than EUR 13 million.
First-half EBITDA improved to SEK 185 million from a loss of SEK 6 million a year earlier. Operating profit rose from a loss of SEK 40 million to a profit of SEK 162 million.
The results mark a clear turnaround from 2025. Although profitability improved during each quarter last year, the full-year figures remained below the 2024 results in terms of revenue, operating profit and EBITDA.
A new mining contractor began operating at the site in January 2026 and has now reached full operational capacity, according to Sotkamo Silver. Higher mining volumes have supported increased production, although underground mining costs have also risen slightly.
Part of the additional expenditure relates to tunnel development and other preparations required to access future production areas. The company is therefore prioritising expansion even though these investments increase costs in the short term.
Deeper mining expected to improve silver grades
Jalasto expects the silver grade of the mined ore to increase towards the end of the year as production moves to deeper levels.
– The accelerated deepening of the mine allows us to open new production areas in its lower sections. This improves the reliability of our operations, Jalasto said in the interim report.
In 2025, the company announced that the mine area was estimated to contain approximately 50 per cent more mineral resources than earlier calculations had indicated. According to the company’s assessment at the time, the expanded resource could extend the mine’s operating life until at least 2035.
The outlook nevertheless remains dependent on metal prices, ore grades and the speed at which new mining areas can be brought into production. Silver prices have already declined from the second-quarter average, meaning that continued profitability cannot rely exclusively on exceptionally high prices.
The record quarter still gives Sotkamo Silver a stronger financial foundation. Higher production, expanded mineral resources and a growing cash position provide greater capacity to develop the mine even if the silver market becomes more volatile.
Sources: Sotkamo Silver's interim report and Yle.
