Boliden's second quarter: Strong earnings and cash flow
Boliden reported strong financial results for Q2 2021, with sales reaching SEK 17,891 million, up from SEK 13,391 million a year earlier. The operating profit, excluding inventory revaluation, surged to SEK 2,616 million compared to SEK 1,634 million. Free cash flow also saw a significant increase to SEK 2,013 million from SEK 1,174 million. Operating profit from Boliden Mines hit a record SEK 2,192 million, influenced by higher metal prices, although lower grades impacted copper and precious metals production.
- Sales increased to SEK 17,891 million from SEK 13,391 million.
- Operating profit excluding inventory revaluation rose to SEK 2,616 million from SEK 1,634 million.
- Free cash flow improved to SEK 2,013 million, compared to SEK 1,174 million.
- Boliden Mines achieved a record operating profit of SEK 2,192 million, driven by higher metal prices.
- Lower grades negatively affected copper and precious metals production.
- Operating profit in Boliden Smelters decreased to SEK 789 million from SEK 914 million due to lower treatment charges.
BOLIDEN, Sweden, July 21, 2021 /PRNewswire/ -- Sales for the second quarter totaled SEK 17,891 m (13,391) and operating profit excluding revaluation of process inventory was SEK 2,616 m (1,634). Free cash flow totaled SEK 2,013 m (1,174).
"The need and demand for base metals in connection with climate transition are becoming increasingly clear. At the same time, improved prices for Boliden's metals means that earnings from mining operations in particular are developing positively, especially at the three mines we recently expanded," says Mikael Staffas, President and CEO.
Operating profit at Boliden Mines increased to SEK 2,192 m (779), a new record for a single quarter, mainly due to higher metal prices. Milled volume in Aitik recovered after production problems during the first quarter. However, lower grades had a negative effect on the production of copper and precious metals in concentrate. The Boliden Area's milled volume was higher than in the previous quarter and the second quarter last year as a result of increased production and a changed ore mix. Production in Garpenberg was stable at a high level and the milled volume in Kevitsa increased slightly compared to last year. Milled volume in Tara was affected negatively by the shutdown of a conveyor belt for a short period.
Operating profit in Boliden Smelters excluding revaluation of process inventory decreased to SEK 789 m (914) as a result of lower treatment charges and higher costs related to planned maintenance shutdowns. A short planned maintenance shutdown was carried out in Rönnskär, and copper and precious metal production was a little lower than both the previous quarter and last year. Yet another strong production quarter was noted in Harjavalta. Zinc production in Kokkola was a little lower than in the previous quarter and last year, while production in Odda was on par with the previous quarter. In Bergsöe, a more stable production led to increased volume.
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.
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SOURCE Boliden
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