Aapeli has indeed published a new company report on Sotkamo Silver ![]()
Sotkamo Silver’s outlook has improved due to favorable exploration results and a sharp rise in the price of silver. The latter also supports the company’s profitability, as reflecting the nature of mining operations, the price change flows practically directly to the bottom line. The market situation offers the company an opportunity to strengthen its financial position even with a moderate performance, reflecting which we have also clearly lowered our required rate of return. As a result, the value of our sum-of-the-parts model multiplied. Despite the significant positive forecast changes, our model still remains below the current share price. We therefore reiterate our reduce recommendation for the share, but raise our target price to SEK 3.0 (prev. SEK 1.0).