Boliden's third quarter: Stable result despite production disturbances
Boliden reported stable results for Q3, 2021, with an operating profit increase to SEK 1,936 million, boosted by high metal prices. However, milled volumes in Aitik and Tara fell compared to previous periods, with a significant production shutdown in Garpenberg. Boliden Smelters' profit excluding inventory revaluation was SEK 611 million, down from SEK 835 million, impacted by higher energy prices and a fire in Harjavalta, which resulted in an SEK -80 million loss. Global demand for base metals remains strong, but supply chain uncertainties persist.
- Operating profit increased to SEK 1,936 million from SEK 1,638 million due to high metal prices.
- Strong global demand for base metals related to electrification.
- Milled volume in Aitik and Tara lower than previous periods.
- Production shutdown in Garpenberg cut output significantly.
- Boliden Smelters' operating profit dropped to SEK 611 million from SEK 835 million.
- Fire in Harjavalta led to an SEK -80 million impact on operating profit.
BOLIDEN, Sweden, Oct. 22, 2021 /PRNewswire/ -- "A stable quarter characterized by high metal prices. In addition, we have had full focus on our projects where several investments in Rönnskär were completed, the nickel expansion in Harjavalta is at its final stage while the work in Odda has started according to plan. The global demand for base metals related to electrification is continuously strong, but there is also a general uncertainty in supply chains," says Mikael Staffas, President and CEO.
The operating profit at Boliden Mines increased to 1,936 (1,638) due to improved prices and terms. The milled volume in Aitik was lower compared to both the previous quarter and last year. The Boliden Area's milled volume was on par with both the previous quarter and last year. In Garpenberg, an unplanned shutdown affecting one of the mine's crushers led to a ten-day long production shutdown, which resulted in the milled volume being lower than both last year and the previous quarter. The milled volume in Tara was lower than both comparison periods. Kevitsa's milled volume was affected by a shutdown in the concentrator due to COVID-19 restrictions but was on par with the previous quarter but lower than the previous year.
Within Boliden Smelters, operating profit, excluding revaluation of process inventory, was SEK 611 m (835). More extensive maintenance, lower volumes of free metals and higher energy prices had a negative effect on the result. A fire in Harjavalta affected the operating profit by SEK -80 m. The fire, together with an extensive planned maintenance shutdown, had a negative effect on production in Harjavalta. Rönnskär's, production of base metals was on par with both the previous quarter and last year. Kokkola's production was also on par with both previous quarters. In Odda and Bergsöe annual maintenance was carried out.
For further information, please contact:
Klas Nilsson, Director Group Communications
E-mail: Klas.Nilsson@boliden.com
Tel.: +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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