Boliden's first quarter: Lower metal prices and lower mine production

Rhea-AI Summary

Boliden announced its first-quarter results for 2023, reporting revenues of SEK 19,962 million, down from SEK 21,812 million. The operating profit, excluding inventory revaluation, was SEK 3,020 million, a decrease from SEK 4,466 million. Free cash flow saw a negative shift, totaling SEK -46 million compared to SEK 674 million in the prior year.

Production challenges impacted profits, particularly in Boliden Mines, where operating profit fell to SEK 1,197 million, primarily due to lower metal prices and volumes. Several mines experienced disruptions, including Aitik, where milled volume fell due to adverse conditions. Despite these issues, Boliden Smelters recorded an improvement in operating profit, reaching SEK 1,497 million, aided by higher production volumes and improved treatment charges.

Positive

• Operating profit in Boliden Smelters increased to SEK 1,497 million (1,378) driven by improved premiums and higher produced volumes.
• Ongoing investment programs in key areas are proceeding according to plan.

Negative

• Revenues decreased to SEK 19,962 million from SEK 21,812 million.
• Operating profit in Boliden Mines dropped to SEK 1,197 million from SEK 3,115 million due to lower metal prices and production disruptions.
• Free cash flow turned negative at SEK -46 million compared to SEK 674 million last year.
• Production challenges, particularly in Aitik and other mines, led to lower milled volumes.

STOCKHOLM, April 25, 2023 /PRNewswire/ -- Revenues for the first quarter totaled SEK 19,962 m (21,812) and operating profit excluding revaluation of process inventory was SEK 3,020 m (4,466). Free cash flow totaled SEK -46 m (674).

"We have fundamentally high stability in all of our units. However, during the quarter several factors affected us, leading to production challenges, especially in our mines. At the same time, it's pleasing that our major investment projects are proceeding according to plan," says Mikael Staffas, President and CEO.

Operating profit in Boliden Mines decreased to SEK 1,197 m (3,115) mainly due to lower metal prices, lower volumes and increased costs. Aitik's milled volume was lower than both the previous quarter and last year due to several production disruptions. Unfavorable winter conditions affected the Boliden Area, where frozen crushed ore in the mill required blasting. The milled volume was therefore lower than both the previous quarter and last year. Following the completion of an investment program, Garpenberg's milled volume was higher than in both corresponding periods. However, unplanned repair shutdowns had a negative effect. Milled volume in Tara was lower than in the previous quarter, while the exploration drift toward Tara Deep became accessible once again. Milled volume was also lower in Kevitsa than both the previous quarter and last year, as a result of lower availability of the crusher.

In Boliden Smelters, operating profit excluding revaluation of process inventory increased to SEK 1,497 m (1,378). Improved premiums, USD and treatment charges, combined with higher produced volumes, had a positive effect. However, copper production was lower in Rönnskär and Harjavalta than in both the previous quarter and last year. In Kokkola and Odda production processes were stable, and the production of casted zinc rose compared to the previous quarter. Bergsöe's production was higher than both the previous quarter and last year.

 The ongoing investment program, which includes the dam reinforcement measures in Aitik, extending the Kristineberg mine in the Boliden Area and the expansion of Odda, is proceeding according to plan.

For further information, please contact:
Klas Nilsson, Director Group Communications, phone: +46 70-453 65 88
klas.nilsson@boliden.com

Boliden is a metals company with a focus on sustainable development. Our roots are Nordic, our market global. Our core competence lies within the fields of exploration, mining, smelting and metal recycling. Boliden has around 6,000 employees and annual sales of approximately SEK 85 billion. The share is listed in the Large Cap segment on NASDAQ OMX Stockholm.

www.boliden.com

The following files are available for download:

https://mb.cision.com/Main/997/3757207/2007848.pdf

Press release (PDF)

 

View original content:https://www.prnewswire.com/news-releases/bolidens-first-quarter-lower-metal-prices-and-lower-mine-production-301806393.html

SOURCE Boliden

FAQ

What are the first-quarter 2023 revenue figures for Boliden (BDNNY)?

Boliden reported first-quarter revenues of SEK 19,962 million for 2023, down from SEK 21,812 million in 2022.

What was the operating profit for Boliden in Q1 2023?

Boliden's operating profit for the first quarter of 2023 was SEK 3,020 million, a decrease from SEK 4,466 million in the prior year.

How did the production challenges affect Boliden's Q1 2023 results?

Production challenges led to a significant drop in operating profit in Boliden Mines to SEK 1,197 million, primarily impacted by lower metal prices and lower volumes.

What is the free cash flow for Boliden in Q1 2023?

Boliden's free cash flow for the first quarter of 2023 was SEK -46 million, compared to SEK 674 million in the same period last year.

What investments are currently ongoing for Boliden (BDNNY)?

Boliden's ongoing investment programs include dam reinforcement in Aitik and the expansion of the Kristineberg mine, progressing as planned.