Boliden's first quarter: Strong cash flow
Boliden reported Q1 revenues of SEK 17,083 m, up from SEK 13,210 m in the previous year, with operating profit reaching SEK 2,449 m compared to SEK 1,504 m. The company's free cash flow totaled SEK 2,165 m, a significant increase from -845 m in Q1 2020. The growth was driven by higher metal prices, particularly copper, which positively impacted the Business Area Mines operating profits, up to SEK 1,631 m. However, production disturbances affected Aitik's milled volume.
- Revenues increased by 29% year-over-year.
- Operating profit rose by 63% compared to the previous year.
- Free cash flow improved positively from negative in the previous year.
- Strong cash flow attributed to a notable rise in copper prices.
- Milled volume at Aitik decreased due to production disturbances.
- Operating profit in the Smelters business area fell to SEK 949 m from SEK 1,117 m.
BOLIDEN, Sweden, April 27, 2021 /PRNewswire/ -- Revenues for the first quarter amounted to SEK 17,083 m (13,210) and operating profit, excluding revaluation of process inventory, totaled SEK 2,449 m (1,504). Free cash flow totaled SEK 2,165 m (-845).
"The focus on several metals critical for adapting to climate change and many larger production units means a general stability in terms of both market conditions and production factors. In this quarter, the strong development of the copper price in particular has contributed to a strong cash flow," says Mikael Staffas, President and CEO.
The operating profit in Business Area Mines increased to SEK 1,631 m (318), mainly due to higher metal prices and terms. Aitik's milled volume decreased compared to the previous quarter as a result of the previously communicated production disturbances. Garpenberg's milled volume, meanwhile, reached a new record level. The milled volumes in the Boliden Area, Kevitsa and Tara were slightly lower than the previous quarter.
Within Business Area Smelters, volumes were largely unchanged. Operating profit, excluding revaluation of process inventory, decreased to SEK 949 m (1,117) due to higher metal prices not fully compensating for a weaker USD and lower treatment charges. Rönnskär's copper and precious metal production was slightly lower than both the previous quarter and last year, while copper and gold production in Harjavalta achieved new records. Production in Kokkola, Odda and Bergsöe was stable.
For further information, please contact:
Klas Nilsson, Director Group Communications, phone: +46 70-453 65 88
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 an annual turnover of SEK 50 billion. The share is listed in the Large Cap segment on NASDAQ OMX Stockholm.
www.boliden.com
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SOURCE Boliden
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