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(Kitco News) – Gold and silver prices are higher in early US trade Tuesday, helped on the day by a lower US Dollar Index and higher crude oil prices. US Treasury yields are only slightly down today and that is also favorable for safe-haven metals. Gold in December was last up $8.10 to $1,747.70 and silver was up $0.403 to $21.275 in December.

Global equity markets were mixed overnight. US stock indices headed for slightly higher opens as the New York session gets underway. Risk appetite remains muted earlier this week as Covid cases surge in China. News reports call China’s largest city Beijing a “ghost town”. Some analysts say 20% of China’s economy will be negatively impacted by the Covid lockdowns.

Wednesday will be the busiest day for US economic data, including minutes from the FOMC’s final monetary policy meeting, which will be released early this afternoon. A headline from Barron’s today reads, “Don’t turn off the holidays; Fed minutes will be a must.” The minutes could contain new clues about the future path and timing of Fed monetary policy.

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Major outside markets are seeing the US Dollar Index lower today on a corrective pullback from solid earnings announced on Monday. Nymex crude prices are firmer, trading around $80.50 a barrel. The crude oil market was roiled on Monday by reports that Saudi Arabia is considering increasing its crude oil production – only for Saudi officials to deny the report. Oil prices fell to an 11-month low shortly after the news came down the lines. The benchmark 10-year Treasury yield is currently 3.793%.

US economic data, due to be released on Tuesday, includes the weekly Johnson Redbook and chain retail indexes, as well as the Richmond Fed business survey.

Technically, the gold futures bulls and bears are on an equal technical playing field in the short term. The bulls’ next upside target is to find a close above solid resistance at the November high of $1,791.80. Bears’ next short-term downside target is to push futures prices below the solid technical support at $1,700.00. Initial resistance is seen at this week’s high of $1,755.00 and then $1,770.00. Initial support is seen at the overnight low of $1,738.90 and then this week’s low of $1,733.90. Wyckoff’s market rating: 5.0

The silver bulls have the slight short-term overall technical advantage but have faded. A choppy 2.5 month old uptrend is still present on the daily bar chart. The silver bulls next upside target is a close above the solid technical resistance at the November high of $22.38. The next downside target for the bears is a close below the solid support at $19.00. Initial resistance is seen at $21.50 and then $22.00. Next support is seen at $21.00 and then this week’s low of $20.60. Wyckoff’s market rating: 5.5.

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(Kitco News) – Global silver demand is expected to reach record levels in 2022, according to the Silver Institute, driven by new highs in industrial demand, jewelry and silverware decline and physical investment.

These were some of the key findings reported by Philip Newman, Managing Director of Metals Focus, and Adam Webb, Director of Mine Supply, during the Silver Institute’s Interim Silver Market Review in New York today, which includes historical supply and demand statistics and – estimates for included 2022.

The report’s authors said that global silver demand is expected to hit a new high of 1.21 billion ounces in 2022, up 16% from 2021, adding that every key segment of demand, with the exception of photography , will record a new high.

According to the report, industrial demand for silver is expected to grow to 539 million ounces (Moz) in 2022, up 5% from 2021 (511 Moz).

“Developments such as ongoing vehicle electrification (despite sluggish vehicle sales), increasing adoption of 5G technologies and government commitment to green infrastructure will see industrial demand overcome macroeconomic headwinds and weaker consumer electronics demand,” it was said.

In addition, physical investments are on track to increase 18% to 329 million ounces in 2022, which would also be a new record. In contrast, exchange-traded products are forecast to see the largest annual decline in inventories totaling 110 million ounces, due in part to silver’s higher volatility than gold, which has made it more vulnerable to profit-taking.

Demand for silver jewelry and silverware is also expected to rise 29% and 72% this year to 235 million ounces and 73 million ounces, respectively, mainly on the back of an unprecedented recovery in Indian demand. This is partly due to strong restocking ahead of the festival and wedding season following a heavy destocking in 2021.

This year, Metals Focus expects the average silver price to fall 16% year-on-year to $21.00. Metals Focus expects the US Federal Reserve to continue raising interest rates and increasing the opportunity cost of precious metals, which combined with rising yields and continued dollar strength will continue to put downward pressure on silver prices.

Regarding silver supply, mined silver production is expected to increase 1% yoy to 830 Moz in 2022. Production in Mexico will increase most significantly as several large new silver projects that have come online in recent years continue to ramp up to full production rates. Silver production from by-products from existing mines and new projects in Chile will also be an important contributor to growth. These increases are partially offset by lower production from major silver producers such as Peru, China and Russia.

Importantly, the global silver market is expected to post a second straight deficit this year. At 194 million ounces, this will be a multi-decade high and four times the level of 2021, analysts concluded.

First Majestic Silver Corp. (NYSE:AG – Get Rating) (TSE:FR) was the recipient of a sharp fall in short-term interest rates in October. As of October 31, short interest totaled 15,550,000 shares, down 10.1% from the October 15 total of 17,290,000 shares. Based on an average trading volume of 6,970,000 shares, the days-to-cover ratio is currently 2.2 days.

Price history of First Majestic Silver

AG stock fell $0.01 during Wednesday trading to hit $9.19. The company had a trading volume of 198,817 shares compared to an average volume of 7,839,651. The company has a 50-day moving average price of $8.17 and a 200-day moving average price of $7.99. The company has a gearing ratio of 0.18, a current ratio of 1.88 and a quick ratio of 1.51. First Majestic Silver has a 52-week low of $6.31 and a 52-week high of $14.59.

First Majestic Silver announces dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, December 2nd. Investors of record on Tuesday, November 22 will receive a dividend of $0.0061. The ex-dividend date is Monday November 21st. That equates to a dividend of $0.02 on an annualized basis and a dividend yield of 0.27%. First Majestic Silver’s payout ratio is -5.13%.

Wall Street analysts forecast growth

A number of analysts have recently commented on AG shares. BMO Capital Markets lowered its price target on First Majestic Silver from C$10.00 to C$9.50 in a research note on Monday, July 25. HC Wainwright raised his price target on First Majestic Silver shares to $12.50 from $11.50 and issued a research note on Wednesday, October 19, with a “buy” rating of the stock. TD Securities raised its price target for shares of First Majestic Silver to $12.00 from $11.00 in a research report on Thursday, November 10. Citigroup posted a price target of $8.00 for First Majestic Silver in a research note on Thursday, October 20th. Finally, National Bank Financial raised its target price on First Majestic Silver to $13.00 from $11.75 in a research report on Thursday, October 13. One research analyst has rated the stock with a sell rating, one with a hold rating and two with a buy rating. According to data from MarketBeat.com, First Majestic Silver has an average rating of Hold and a consensus price target of $11.00.

Institutional trading in First Majestic Silver

A number of institutional investors recently changed their holdings in the company. Steward Partners Investment Advisory LLC increased its holding in First Majestic Silver by 203.8% during the second quarter. Steward Partners Investment Advisory LLC now owns 3,950 shares of the miner’s stock, valued at $28,000, after purchasing an additional 2,650 shares last quarter. BerganKDV Wealth Management LLC increased its stake in First Majestic Silver by 94.4% during the third quarter. BerganKDV Wealth Management LLC now owns 4,000 shares of the $30,000 mining company, having acquired an additional 1,942 shares during this period. Newbridge Financial Services Group Inc. increased its ownership of First Majestic Silver shares by 450.0% during the second quarter. Newbridge Financial Services Group Inc. now owns 5,500 shares of the $39,000 miner after purchasing an additional 4,500 shares last quarter. Rational Advisors LLC increased its holding in First Majestic Silver by 68.7% during the first quarter. Rational Advisors LLC now owns 3,140 shares of the $41,000 mining company, having purchased an additional 1,279 shares during the period. Finally, Captrust Financial Advisors increased its holding in First Majestic Silver by 589.5% during the second quarter. Captrust Financial Advisors now owns 8,515 shares of the $61,000 miner, after buying an additional 7,280 shares last quarter. 30.62% of the shares are currently held by institutional investors.

Company profile of First Majestic Silver

(received rating)

First Majestic Silver Corp. is engaged in the acquisition, exploration, development and production of mineral properties focused on silver and gold production in North America. It holds 100% interest in the 71,868 hectare San Dimas silver/gold mine located in Durango and Sinaloa states; the 102,244 hectare Santa Elena silver/gold mine in Sonora; Jerritt Canyon Gold Mine, covering approximately 30,821 hectares in Elko County, Nevada; and the La Encantada Silver Mine covering 4,076 hectares in Coahuila and 1,343 hectares of surface land holdings.

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Before you consider First Majestic Silver, here’s what you should hear.

MarketBeat tracks Wall Street’s best-in-class, top-performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now, before the broader market follows through… and First Majestic Silver wasn’t on the list.

While First Majestic Silver is currently rated a “Moderate Buy” by analysts, top analysts believe these five stocks are better buys.

Check out the five stocks here

We spend a lot of time and effort each year preparing our market forecasts. In this article, we try to summarize the top 5 investment tips for investors based on our previously published forecasts for 2023. This means that we don’t look at individual markets, but think from the investor’s perspective. What investment tips can help determine the do’s and don’ts in 2023, which markets are looking good, which types of investments should and shouldn’t be considered? Note that this article is based on the forecast that will be given no Stock market crash in 2023.

The tips in this article are based on the following predictions that we recently published:

Why the markets should resume their uptrend no later than March 2023

Stagflation Investing: How and Where to Invest in 2023

Lithium Prediction: Lithium stocks will be heavily bullish in 2023

What is the biggest investment opportunity of this decade? (published 18 months ago)

How to play the Green Battery Super Cycle in 2023?

A silver price prediction for 2023

Investment tip #1. Quality stocks over momentum stocks

Investment tip: Investors should initially focus on quality stocks that generate income and continue to grow. Over time, a greater focus on momentum stocks is allowed.

2023 is likely to come with rising inflation expectations.

We have used the TIP ETF as a recurring theme, the red line, in our 2023 forecasts. It is a measure of expected inflation, which has fallen aggressively in 2022. This is due to the very aggressive stance of the US Federal Reserve and other monetary policymakers around the world. However, we believe the TIP ETF’s decline has run its course. As seen on the chart, the fall in 2022 touched a rising trend line that has been in place for 18 years.

What this really means is that monetary policy should soften in 2023. Inflation expectations can rise again, presumably moderately (at a smoother pace, closer to the desired inflation rate of 2%).

Typically, stocks tend to react cyclically to the TIP ETF’s rise: top-quality stocks rise, at the end of the TIP ETF’s uptrend (top of the long-term channel), momentum stocks react to the upside.

For this reason, momentum stocks (a) should only be considered towards the end of 2023 (b) some of them, run-down quality momentum stocks, can be bought at discounted prices in this early phase.

Investment tip #2. The EV boom continues

Investment Tip: EV sales continue to boom, downed EV stocks that are delivering on their supply and production promises can be bought.

The EV boom is real.

However, not all EV stocks are worth your portfolio.

We have repeatedly said that we should only consider EV stocks that have a long and visible (proven) production backlog with pre-orders paid and production schedules confirmed.

This seems like an obvious list of criteria, it certainly is an obvious list, but the number of EV companies that meet all criteria is limited.

In addition, lithium and graphite are the key raw materials for the EV field. The best lithium and graphite stocks are must-haves in any long-term portfolio.

Investment tip no. 3. Watchrate and USD-sensitive stocks

Investment tip: The USD will fall in 2023, and so will yields. Stocks that are interest rate and USD sensitive should be considered early in 2023.

Moving on to tip #1, which was about rotating from quality (early in the year) to momentum (end of the year), we believe USD and interest rate sensitive stocks can be considered.

It’s really easy to find the USD and interest rate sensitive sectors: just look at which sectors outperformed last week as the USD and interest rates fell sharply.

These sectors will do well in the first half of 2023 as it is now clear that both the USD and rates are at the forefront.

Investment Tip #4. Volatility readings will gradually decrease

Investment Tip: We believe better times are ahead. VIX sets lower highs on its weekly chart. It might finally drop below its 200 WMA, which would be great news. 2023 will be really different.

Volatility remained high in 2022, however we expect average volatility to be lower in 2023. This really means that investors can buy the decline by respecting the other investment tips contained in this article.

Investment tip #5. Watch for silver’s secular breakout

Investment Tip: Silver prices are moving towards our first target which is $28. Once it is able to clear the secular resistance at $28, we see a quick move to $34.70 or even $41 in 2023 or 2024.

Silver is the outlier in 2023.

It is the market with explosive potential.

However, we must be patient and see the bullish confirmation appear on the silver chart. This could take many more months, ultimately we expect an explosive move in silver somewhere in 2023.

This is what we wrote in our silver forecast:

As seen on the longest time frame, the 50 year silver price chart, a giant cup and handle are in the making. This is a strong bullish pattern that could take another two years to really explode.

We continued:

1. The leading indicators euro and inflation expectations turned bearish in Q2/2022 and pushed silver down.
2. The silver CoT turned extreme, historically bullish as we headed into 2023.
3. Once the euro and inflation expectations start to move higher, we will see silver take off.

Because of this, we see silver modestly up to $28 in 2023 and our first and longstanding bullish target of $34.70. Our 2023 silver price prediction is $34.70. Whatever happens at this price point will inform us of silver’s intention to attack ATH, probably towards the end of 2023 or 2024.

Silver is the outlier, the bonus, the wild card in the game. When silver takes off, it will be Halleluj time. Investors shouldn’t wait for this to happen, but rather start accumulating silver investments over time in order to be well-positioned once the silver market starts to boom. It’s a matter of time, but don’t wait. Better let it happen

Our must-read predictions for 2023. We encourage you to read the following predictions as they are very informative and very well researched:

Gold Prices Today: Gold prices edged up to 51,670 rupees on Thursday as US Treasury yields showed a decline. On Thursday 10th November the price for 10 grams of 24k gold is Rs 51,670. The average price of 10 grams of 22k gold is 47,360 rupees. A kilogram of silver can be bought for 61,400 rupees, almost 300 rupees below Wednesday’s price.

In the international market, gold prices saw some demand around $1,702.00 on the muted performance of the US dollar index. Investors are eagerly awaiting the US CPI report, which is due later today (Nov. 10) to assess the Fed’s next steps ahead of another round of interest rate hikes, experts said. If the CPI is higher than expected, rates could continue to rise, meaning gold prices could fall further.

domestic prices

Gold prices change daily due to exchange rates, excise duties, state taxes and jeweler’s fees, which vary from state to state. As of Wednesday, 10 grams of 24-karat gold can be bought and sold in Mumbai and Kolkata for Rs 51,670. In Delhi, the same amount of gold can be bought for Rs 51,770 in New Delhi, while in Chennai it can be bought for Rs 52,530, which is the highest value among all metropolitan cities.

Also Read: Gold and Silver Prices Today: Gold price falls to 46,790 rupees, Silver price rises to 61,700 rupees on strengthening US dollar

Prices for 22k gold in Mumbai, Kolkata, Delhi and Chennai are Rs 47,360, Rs 47,360, Rs 47,460 and Rs 48,150 respectively.

cities	Prices for 22 carat gold	24k gold prices
Chennai	Rs 48,150	Rs 52,530
Bombay	Rs 47,360	Rs 51,670
Delhi	Rs 47,460	Rs 51,770
Calcutta	Rs 47,360	Rs 51,670
Bangalore	Rs 46,410	Rs 51,720
Hyderabad	Rs 47,360	Rs 51,670

Gold prices during the recession

Many experts say that when inflation lowers the value of the currency, the price of gold tends higher. The yellow metal thus moves inversely to market conditions. But situations and factors may be different. Gold can be just as vulnerable as the stock market if investors choose not to. The price and value of the yellow metal is directly proportional to social perception and popularity.

In short, the yellow metal cannot be called a recession-proof asset. One should diversify one’s portfolio and reserve only part of it for gold.

Precious metals remained weak in October, ending lower for the seventh straight month. Sentiment was weighed down by a stronger dollar and higher US bond yields.

Comex Gold closed 1.9% lower to end October at $1,640.7. However, Comex silver closed almost unchanged at $19.12.

On the domestic market, MCX Gold closed marginally higher at £50,322 per 10g while MCX Silver was up 1.4% at 57,678kg.

As expected for the last month, Comex Gold rose and hit the upper end of the target range of $1,695-$1,715. After hitting a high of $1,738.7, Comex Gold turned lower to close on a weak note. towards the end of October.

The near-term outlook for Comex Gold is positive and the price could surge into the $1,725-$1,730 range. A move above $1,688 would strengthen the case for a rise to the target zone. A close below $1,620 would push gold prices lower and invalidate the positive short-term outlook.

In the domestic market, MCX-Gold also hit the target of ₹51,500-52,000. In the short term, the price of MCX gold is likely to rally higher into the ₹52,200-53,000 target zone. A move above £51,300 would confirm this upside outlook, while a drop below £49,800 would invalidate it.

In summary, the short-term outlook for precious metals is positive in the near-term. The medium-term outlook remains weak and the downtrend is likely to continue once the expected near-term rise is complete.

(The author is a Chennai-based analyst/trader. This is not intended as trading or investment advice.)

• Silver price recovery stalls in the $19.50 area.
• A weaker USD supports the precious metals recovery.
• XAG/USD has to clear a key resistance hurdle at $19.65/75.

Silver prices traded higher on Wednesday for the second straight day, with the white metal extending its recovery from Tuesday’s low of $18.80 to a two-week high of $1975 where it appears to have found a significant barrier of resistance.

USD weakness underpins precious metals recovery

XAG/USD was higher earlier on Wednesday, buoyed by broad-based US dollar weakness as investors begin to price in a slowdown in the Federal Reserve’s monetary tightening path.

However, the positive price action has stalled just below the $19.65/$75 area where the 100-day SMA crossed the 50% Fibonacci retracement level of the October 4-14 decline and the October 23 high .Reached September.

A successful break above this area would see the pair targeting the psychological $20.00 level (and the Fib level of 61.8% of the aforementioned decline) before reclaiming the highs of $20.85 on the 6th. and October 7 aims.

On the downside, the 50-day SMA at $19.00 is protecting the pair from further decline so far, with the next potential support area at $18.80 (low from Oct 25) ahead of the Oct 14 low on Oct 14. October lies.

XAG/USD daily chart

Technical levels to watch

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(Kitco News) – Gold and silver prices are solidly higher, hitting a two-week high in early US trade Wednesday. The major outside markets are working in favor of the precious metals bulls midweek as the US Dollar Index is lower, US Treasury yields are lower and Crude Oil prices are higher. Gold in December was last up $15.50 to $1,673.50 and silver was last up $0.231 to $19.58 in December.

Importantly, there are some recent short-term technical developments that now suggest that the US Dollar Index has made significant tops and US equity indices have made significant lows. Extrapolated, this could also mean inflation is peaking and the Federal Reserve is closer to the finish line on its aggressive monetary tightening stance. All of this could also mean that the US and/or the global economy could be able to avoid a serious recession. While these are just projections for now, precious metals traders seem to be picking up on these early chart clues and anticipating not only that the greenback may have peaked, but also that it could mean better consumer and trade demand for the metals markets going forward Months.

Global equity markets were mixed overnight. US stock indices headed for weaker opens as the New York session gets underway. US stock indexes hit a five-week high on Tuesday. Price uptrends on the daily bar charts have been negated and young price uptrends are now in place. Technical evidence is mounting that US stock indices have hit market bottoms. Stock traders’ focus this week is on company earnings reports.

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There was no major market news overnight.

Major outside markets are seeing the US Dollar Index lower today. Nymex crude oil prices are higher and are trading around $86.25 a barrel. The 10-year US Treasury yields 4.067%.

US economic data due for release on Wednesday includes the weekly mortgage applications survey, economic indicators ahead, new home sales and the weekly DOE liquid energy stocks report.

Technically, the gold futures bears have the firm short-term overall technical advantage. However, in the short term, further upward price action would form a bullish double bottom reversal pattern, which would suggest that a major market bottom is in place. The bulls’ next upside target is to find a close above the solid resistance at $1,700.00. Bears’ next short-term downside target is to push futures prices below the solid technical support at $1,600.00. Initial resistance is seen at today’s high of $1,679.40 and then $1,700.00. Initial support is seen at today’s low of $1,653.80 and then this week’s low of $1,641.20. Wyckoff’s market rating: 2.5

The silver bears have the short-term overall technical advantage. However, recent price action suggests that a market bottom has been reached. The silver bulls next upside target is a close above solid technical resistance at the October high of $21.31. The next downside target for the bears is a close below the solid support at the September low of $17.40. Initial resistance is seen at the overnight high of $19.765 and then $20.00. Next support is seen at the overnight low of $19.18 and then $19.00. Wyckoff’s market rating: 3.0.

Press release: Stockholm, October 21, 202208.45 CET

HIGHLIGHTS OF THE THIRD QUARTER 2022

• Net sales were SEK 66 million compared to SEK 83 million last year. The decline was due to lower silver prices and lower production
• EBITDA was SEK -10 million (13)
• EBIT was -32m SEK (-9)
• Cash and cash equivalents were SEK 7 million (48). The company has a credit limit of 1.5 million euros. The company initiated the process to explore options to raise additional funds
• Investments were SEK 17 million (10)
• Production was approximately 258,000 (308,000) ounces of silver, 790 (839) ounces of gold, 304 (323) tonnes of lead and 647 (742) tonnes of zinc in concentrates
• Decline and associated horizontal development, ready to start mining in 360-420 levels from Q4
• LTIFR was 4 (26), which is the best since production began

HIGHLIGHTS Q1-Q3 2022

• Net sales were SEK 271 million (287)
• EBITDA was SEK 34 million (64). EBITDA was at a good level in the first quarter of 2022, but declined in the second and third quarters due to lower metal prices and very high energy costs
• EBIT was SEK -33 million (1)
• EBIT was at a good level in the first quarter of 2022, but declined in the second and third quarters due to lower metal prices, very high energy costs and increased consumable prices. Electricity costs more than doubled in Q1-Q3 compared to the same period last year
• Investments were SEK 52 million (23)
• Production was approximately 875,000 (1,034,000) ounces of silver, 2,456 (2,534) ounces of gold, 1,134 (1,028) tonnes of lead and 2,461 (2,324) tonnes of zinc in concentrates
• Operating cash flow was SEK 15 million (18)

Comparative figures refer to the corresponding period of the previous year.

CEO WORD

The general economic and market situation changed drastically in the third quarter of this year. Declining metal prices and rising energy and consumable prices have put pressure on the company’s profitability.

in the September company began negotiating changes to address the uncertainty and volatility associated with the cost base. The negotiations for change were conducted in good cooperation. I would like to express my gratitude to all employees for supporting this process under these challenging circumstances.

The agreed measures in the change negotiations give us the flexibility to react to fluctuations in electricity prices and to operate the concentration plant in periodic production if this appears feasible. In practice, this means that the system is switched off on days when electricity costs exceed the economic threshold. In addition, a separate program to improve profitability was initiated. This program includes direct cost savings in operating expenses as well as investment deferrals.

Drilling work and the expansion of the sink completed this year will provide us with further opportunities to increase ore grades and further increase the Company’s profitability. Additional drill results following the Mineral Resource and Ore Reserve estimate have increased our confidence that mining levels below 360m will gradually improve main grades beginning in Q4 2022 and mining will focus to these new levels beginning in Q2 2023. The winter period will be challenging, but at the same time we make sure that we are also prepared for the future.

There are some things the team can be proud of. Our safety indicators have improved month-on-month and LTIFR was at an all-time low (3.8) at the end of September. Extension of the tailings pond has been completed as well as lowering to the 420 level and associated horizontal development. The reliability and uptime of the concentrator plant were at a very good level.

The ongoing war in Ukraine, economic uncertainty and inflation affect us all not only at work but also on a personal level. Let’s support each other in these times, family, friends and colleagues alike.

SHOP

The company operates the silver mine in Sotkamo, Finland. Production started in March 2019 and the mine produces silver, gold, zinc and lead in concentrates that are sold to a smelter. In addition, the Company holds mining and exploration rights to mineral deposits in the vicinity of current operations in the Sotkamo area Finland.

Net sales were SEK 66 million compared to SEK 83 million in the previous year. The decline was due to lower silver prices and lower silver and zinc production, while gold and lead production were closer to the comparable period. The milled ore amounted to 138 000 (160 000) tons including the rim ore.

EBIT was at a good level in the first quarter of 2022, but declined in the second and third quarters due to lower metal prices, very high energy costs and increased consumable prices. Electricity costs more than doubled in Q1-Q3 compared to the same period last year.

Other income of SEK 0.3m (-1.5) included sales of fixed assets SEK 0.1m and estimated unrealized retail price adjustment SEK 0.2m due to the price difference between preliminary and final invoices for the period. Net sales included an estimated final metal grade adjustment of SEK -1.1m due to the metal grade difference between preliminary and final invoices for the period. The final selling price for silver and gold is based on the monthly average market price two months after delivery, less the customer’s smelting fees.

Investments in underground mines and environmental investments amounted to SEK 17 million (10) in the third quarter. Environmental investments included the SEK 4 million increase in the Tailings Pond dam. Exploration at the P700 project continued in the third quarter and costs have been included in the capital expenditures for the period.

The Company has completed a targeted issuance of convertible bonds with a total principal amount of up to MEUR 6.4. The convertible bond contains two components: a conversion option component, which is measured at fair value through profit or loss using the Black-Scholes model, and a liability component, which is measured at amortized cost using the effective interest method. At the inception date, the fair value of the conversion option liability was SEK 34 million and the fair value of the liability component was SEK 32 million. On 09/30/2022the fair value of the convertible option component was SEK 3 million and the fair value of the liability component was SEK 37 million. The fair value changes recognized in the income statement: conversion option liability SEK 13 million and liability component SEK 3 million.

Metrics, group	Q3 2022	Q3 2021	Fiscal year 2021
Net sales MSEK	66	83	387
EBITDA in SEK million	-10	13	92
EBIT in SEK million	-32	-9	7
Equity ratio (%)	38	39	38
Cash Liquidity (%)	41	38	27
staff at the end of the period	52	52	49
mill feed (kt)	138	160	624
Average silver grade in g/t	69	68	79

PRODUCTION AND INSTRUCTION

In the third quarter we milled 138,000 (160,000) tonnes of ore and produced approximately 258,000 (308,000) ounces of silver, 790 (839) ounces of gold, 304 (323) tonnes of lead and 647 (742) tonnes of zinc in concentrates.

Silver grade improved slightly from Q2 but was still below our expectations. Milled volume was lower due to the two week planned maintenance break in July and the use of less marginal ore. Silver production was affected by these factors. Despite a lower milled volume, gold production was at the same level as the second quarter due to higher gold grades.

During the quarter we mainly mined between 260 and 200 levels in the underground mine. Open pit mining was not mined in Q3 and will remain on hold through Q2 2023 as the Company has focused on development and the gradual transition to mining below the 360 ​​degree level. The open pit mine will be finally connected to the underground mine at level 60 and this planning process is ongoing.

The decline to the 420 level and the horizontal development are progressing according to plan. Stope mining at these new levels will begin in the fourth quarter and will gradually increase over the next two quarters.

As previously reported, previous underground drill sampling and an updated resource model support the view that mining between these 360 ​​to 420 levels will significantly increase metal grades.

This view is supported by the latest Q3 drill results. Mining plans for 2023 are being finalized and we expect adit mining to be primarily focused on these new levels from the second quarter of 2023 onwards.

Production forecast for 2022:

In early July, it was communicated that we remain focused on the production mix and optimizing sales and operating cash flow. Consequently, we have previously estimated that our annual silver production in 2022 will be 1.25 to 1.35 million ounces.

Sotkamo Silver AB revises 2022 silver production estimate due to uncertainty and volatility in electricity prices. The company is prepared to adjust production during periods of higher electricity prices to optimize cash flow. Due to the high electricity price and the associated adjusted periodic production, the company estimates around 15-45% monthly plant downtimes.

We estimate that silver production in 2022 will be 1.0 to 1.2 million ounces. Decisions about adjusted production are made to optimize cash flow.

SUBSEQUENT EVENTS

There were no events after the reporting period.

FINANCIAL CALENDAR

CONVERSATION PARTNERS

Mikko Jalasto, CEO of Sotkamo Silver AB, phone +358 50 482 1689

This information that Sotkamo Silver AB is obliged to publish according to the EU Market Abuse Regulation. The information for publication was transmitted via the contact person named above October 21, 2022at 08:45 CET.

The official stock exchange announcements are issued in Swedish and there may be differences in the translated versions. In case of discrepancies, the Swedish version applies.

Around Sotkamo Silver AB

Sotkamo Silver’s business concept is to develop mineral deposits in the Nordic countries with respect for human society and the environment. Sotkamo silver owns through its subsidiary the silver mine in Sotkamo, which started production March 2019 and has reached full production capacity. In addition, the Company holds exploration rights to precious and base metal deposits in Finland, Sweden and Norway.

The company applies International Financial Reporting Standards (IFRS) as approved by the European Union.

The ticker symbol is SOSI in NGM Equity in Stockholm and SOSI1 on NASDAQ Helsinki.

ISIN code for Sotkamo silver Shares is SE0001057910.

Legal Entity Identifier (LEI): 213800R2TQW1OZGYDX93

Read more about Sotkamo silver at www.silver.fi

The company’s press releases and financial reports are distributed through Cision Sverige and are available at www.silver.fI

https://news.cision.com/sotkamo-silver/r/quarterly-report–third-quarter-2022,c3652118

https://mb.cision.com/Main/15292/3652118/1641514.pdf

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