Finland’s only silver mine reports record first quarter with 170% revenue growth

Finland’s Sotkamo Silver mine achieved a record start to the year, with first-quarter revenue surging 170% compared to the same period in 2023, public broadcaster Yle reports. The growth was driven by increased production and high silver and gold prices.

Revenue for January–March reached 186 million Swedish krona (approximately €17 million), up from 69 million krona in the previous year. Operating profit turned positive at 89 million krona (around €8.2 million), compared to a loss in the first quarter of 2023.

The company, listed on the Stockholm Stock Exchange, attributes the strong performance to expanded production volumes and elevated precious metal prices. While the mine also extracts lead and zinc, silver remains its primary product.

A new mining operator began work in January, contributing to what CEO Mikko Jalasto described as an “extremely successful” start to the year. Despite challenges related to the contractor change, silver production slightly exceeded levels from late 2023. The company expects mining volumes and ore silver content to rise further in the second half of 2024.

Sotkamo Silver also reported strong results for 2023, with profitability improving each quarter. Operating profit swung from a loss of 8 million krona in early 2023 to a gain of 51 million krona by year-end. However, full-year 2023 figures remained below 2024 levels due to lower silver output, constrained by insufficient mining resources and poor rock composition.

In late 2023, the mine’s operational lifespan was extended after new drilling results revealed nearly 50% more mineral resources than previously estimated. The discovery is expected to sustain production at least until 2035.