Boliden Q2 2024: Results affected by insurance income and decision to reopen Tara

Rhea-AI Summary

Boliden's Q2 2024 results show significant improvement, with revenues rising to SEK 22,748 m from SEK 18,442 m in the previous year. The operating profit surged to SEK 4,814 m, largely due to SEK 2,400 m in insurance income related to the Rönnskär fire. Excluding process inventory revaluation, operating profit was SEK 4,000 m. Earnings per share increased to SEK 13.20 from SEK 1.90. The company saw improved metal prices but lower treatment charges and premiums. Notable events include the decision to reopen Tara mine, incurring a restructuring cost of SEK -358 m, and the start of production at Aitik's satellite pit, Liikavaara. Garpenberg achieved record milled volume, while overall milled volumes decreased, primarily due to Tara's care and maintenance status.

Positive

• Revenues increased by 23.3% year-over-year to SEK 22,748 m
• Operating profit surged to SEK 4,814 m from SEK 874 m in the previous year
• Earnings per share rose significantly to SEK 13.20 from SEK 1.90
• Insurance income of SEK 2,400 m received related to the Rönnskär fire
• Free cash flow improved to SEK 401 m from -SEK 3,770 m
• Record milled volume achieved in Garpenberg
• Production started at Aitik's satellite pit, Liikavaara

Negative

• Restructuring cost of SEK -358 m related to the decision to reopen Tara
• Lower milled volumes, primarily due to Tara in care and maintenance and Aitik, had a negative year-on-year effect of SEK -472 m
• Lower treatment charges and premiums reported
• Some ramp-up issues experienced with the new Liikavaara pit

STOCKHOLM, July 19, 2024 /PRNewswire/ -- "I would like to reemphasize our full focus on delivering all our investments in a good way. The future-proofing of operations we carry out in Aitik, the Boliden Area, Odda and Rönnskär will serve us well for many years to come" - Mikael Staffas, President and CEO.

Financials

•    Revenues: SEK 22,748 m (18,442)
•    Operating profit: SEK 4,814 m (874)
•    Operating profit excl. PIR*: SEK 4,000 m (833)
•    Free cash flow: SEK 401 m (-3,770)
•    Earnings per share: SEK 13.20 (1.90)

*Process Inventory Revaluation

Highlights

•    Operating profit excluding revaluation of process inventory totaled SEK 4,000 m (833)
•    Insurance income related to the Rönnskär fire in June 2023 of SEK 2,400 m (0)
•    Restructuring cost related to the decision to reopen Tara of SEK -358 m (0)
•    Free cash flow was SEK 401 m (-3,770), including insurance proceeds of SEK 600 m (0) 
•    Improved metal prices but lower treatment charges and premiums
•    Lower milled volumes, primarily due to Tara in care and maintenance and Aitik, had a negative year on year effect of SEK -472 m
•    Well executed planned maintenance shutdowns in Smelters
•    Record milled volume in Garpenberg
•    Production from Aitik's satellite pit, Liikavaara, started in the quarter with some ramp-up issues

The Interim Report will be presented via webcast/conference call on Friday, July 19 at 09:30 (CEST). Information is available at www.boliden.com.

For further information, please contact:
Olof Grenmark
Director Investor Relations
+46 70 291 57 80
olof.grenmark@boliden.com

This information is information that Boliden AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of Director Investor Relations, at 07:45 CEST on July 19, 2024.

This information was brought to you by Cision http://news.cision.com.

https://news.cision.com/boliden/r/boliden-q2-2024--results-affected-by-insurance-income-and-decision-to-reopen-tara,c4016693

The following files are available for download:

https://mb.cision.com/Main/997/4016693/2921134.pdf	Report
https://mb.cision.com/Public/997/4016693/840ea66a4957cb6d.pdf	Press release

 

View original content:https://www.prnewswire.com/news-releases/boliden-q2-2024-results-affected-by-insurance-income-and-decision-to-reopen-tara-302201415.html

SOURCE Boliden

FAQ

What was Boliden's (BDNNY) revenue in Q2 2024?

Boliden's revenue in Q2 2024 was SEK 22,748 million, up from SEK 18,442 million in the same quarter of the previous year.

How much was Boliden's (BDNNY) operating profit in Q2 2024?

Boliden's operating profit in Q2 2024 was SEK 4,814 million, a significant increase from SEK 874 million in the previous year.

What was the impact of the insurance income on Boliden's (BDNNY) Q2 2024 results?

Boliden received SEK 2,400 million in insurance income related to the Rönnskär fire in June 2023, which significantly boosted its Q2 2024 operating profit.

What was Boliden's (BDNNY) earnings per share in Q2 2024?

Boliden's earnings per share in Q2 2024 were SEK 13.20, up from SEK 1.90 in the same quarter of the previous year.

What major operational changes did Boliden (BDNNY) announce in Q2 2024?

Boliden announced the decision to reopen the Tara mine and started production from Aitik's satellite pit, Liikavaara, during Q2 2024.