Helsinki, Feb 2, 2026, 12:08 EET — Regular session
- Sotkamo Silver AB (SOSI1) dropped roughly 12.5% by midday, hitting an intraday low close to 0.41 euro.
- Silver plunged further after CME Group boosted margins on precious-metal futures, putting extra pressure on leveraged traders.
- Traders await a rebound in bullion prices alongside Sotkamo Silver’s quarterly report, set for Feb. 20.
Sotkamo Silver AB (SOSI1) dropped 12.5% to 0.4995 euro by 12:08 p.m. local time, with intraday trades ranging from 0.4050 to 0.5000. The stock’s 52-week span from 0.0720 to 0.7350 highlights its volatility tied to metal price shifts. (Investing)
This shift is significant because the drop in precious metals isn’t just price discovery anymore — it’s driven by position liquidations. For thinly traded, high-beta miners, that often means their stocks swing sharply, even if there’s no new company-specific news.
Spot silver dropped 12% to $74.48 an ounce, following a sharp 27% dive on Friday, after the exchange hiked margin requirements for precious-metal futures. Tim Waterer at KCM Trade pointed to “forced liquidations and margin increases” triggering a “cascading effect.” (Reuters)
The market is adjusting to Kevin Warsh as the likely next Federal Reserve chair, a move traders interpret as bullish for the dollar and bearish for metals that don’t carry yield. “We see it as a correction and a buying opportunity,” said Vivek Dhar of Commonwealth Bank of Australia, highlighting how quickly commodities have been sold off. (Reuters)
Margins represent the cash traders need to lock in futures positions. If an exchange hikes these requirements, leveraged traders often scramble to reduce exposure quickly—or offload other assets to cover margin calls—which can trigger selling in related equities.
Sotkamo Silver operates a silver mine in Sotkamo, Finland, and also produces gold, zinc, and lead. The company processes ore into concentrates, which it sells under supply agreements, according to its website. (Silver)
The selling has been brutal, and if silver drops further, it could slam sentiment in small-cap miners hard, where liquidity dries up fast. On the flip side, a sudden rally in bullion—or some relief once margin adjustments kick in—could snap the tape back just as quickly.
Traders now turn to see if metals’ recent slide holds steady once margin changes take effect, and whether the volatility spreads to other risk assets. Sotkamo Silver’s next key event is its October–December report, set for Feb. 20. (Silver)
