Boliden's third quarter: Key investment projects on track

Rhea-AI Summary

Boliden reports Q3 revenues of SEK 19,396 m and operating profit of SEK 1,940 m. The company's investment projects are on track.

Positive

• Boliden's Q3 revenues reached SEK 19,396 m, maintaining a solid production in many units.
• The ongoing investment program, including new dam structure in Aitik and expansion projects, is proceeding according to plan.
• Total capital expenditure for 2024 is estimated at about SEK 14 billion.

Negative

• Operating profit in Boliden Mines decreased to SEK 750 m due to lower grades and less milled volume.
• Boliden Smelters' operating profit decreased to SEK 1,303 m, mainly due to lower volumes caused by a fire in Rönnskär.

STOCKHOLM, Oct. 20, 2023 /PRNewswire/ -- Revenues for the third quarter totaled SEK 19,396 m (19,480) and operating profit excluding revaluation of process inventory was SEK 1,940 m (3,484). Free cash flow totaled SEK -1,200 m (97).

 "I am deeply impressed by how our organization has adapted to new conditions. We have a structured approach to our various challenges and deliver solid production in many of our units during the quarter. On top of that, we continue to develop our projects according to plan and budget," says Mikael Staffas, President and CEO.

Operating profit in Boliden Mines decreased to SEK 750 m (1,964) due to lower grades and less milled volume. The costs also decreased mainly due to Tara being placed in care and maintenance. Milled volume in Aitik was affected by unplanned maintenance which, in combination with lower grades, led to a lower production of copper and gold in concentrate than both the previous quarter and last year. The Boliden Area's milled volume was in line with the previous quarter but higher than last year thanks to stable production. Garpenberg's milled volume was higher than both the previous quarter and last year. Rock mechanical challenges affected grades negatively. Production after the third quarter is back at previously communicated grade levels. The production in Kevitsa was stable and milled volume was higher than in both the previous quarter and last year.

In Boliden Smelters, operating profit excluding revaluation of process inventory decreased to SEK 1,303 m (1,564). Lower volumes, mainly due to the fire in Rönnskär, had a negative impact while prices and terms contributed positively. Rönnskär's customer base has now been converted from cathode to anode customers and production has been ramped up during the quarter. The annual negative impact on operating profit in Rönnskär is estimated to be about one billion SEK, compared to 2022 years result, all things equal. Harjavalta's copper cathode production was higher than the previous quarter and last year, as was the production of nickel in matte. In Kokkola, production of casted zinc was lower than both the previous quarter and last year. Odda's zinc production was lower than the previous quarter but in line with last year. Both zinc smelters were affected by challenges in zinc concentrate availability.

The ongoing investment program, which includes the new dam structure in Aitik, expanding the Kristineberg mine in the Boliden Area and the expansion of Odda, is proceeding according to plan. For 2024, total capital expenditure is estimated at about SEK 14 billion.

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

The following files are available for download:

https://mb.cision.com/Main/997/3857475/2372833.pdf

Press release

 

 

View original content:https://www.prnewswire.com/news-releases/bolidens-third-quarter-key-investment-projects-on-track-301962922.html

SOURCE Boliden

FAQ

What were Boliden's Q3 revenues?

Boliden's Q3 revenues totaled SEK 19,396 m.

How did Boliden's operating profit perform in Q3?

Boliden's operating profit in Q3 was SEK 1,940 m.

Are Boliden's investment projects on track?

Yes, Boliden's investment projects are on track.

What is the estimated total capital expenditure for 2024?

The estimated total capital expenditure for 2024 is about SEK 14 billion.

Why did Boliden's operating profit decrease in Boliden Mines?

Boliden Mines' operating profit decreased due to lower grades and less milled volume.

What caused the decrease in operating profit for Boliden Smelters?

Boliden Smelters' operating profit decreased mainly due to lower volumes caused by a fire in Rönnskär.