Boliden's profit falls as lower prices, grades weigh
STOCKHOLM - Boliden on Friday reported a slightly bigger-than-expected dive in third-quarter profit hurt by high costs, lower mining grades and falling metal prices, sending shares in the mining and smelting group down 7%.
Operating profit fell to 1.91-billion crowns from 3.55-billion, the Swedish copper and zinc producer said, missing the 2.03-billion expected by analysts in an LSEG poll.
"The price for all Boliden’s main metals fell, except for lead. Weak economic activity, notably in Europe and China, impacted demand for metals," Boliden said in a statement.
Shares in the group, which also produces nickel, lead, gold and silver, were down 7% in mid-morning trade, taking a year-to-date fall to 29%.
"The company has been facing a series of operational issues in their mining division, had a fire at its Ronnskar smelter which destroyed the tank house and has faced substantial cost inflation," RBC analyst Tyler Broda said.
A fire in June forced Boliden to halt production at the Ronnskar copper smelter in Sweden, its biggest production unit. Production has partly resumed but with lower profitability.
Boliden repeated that it expects to make investments of just under 15-billion crowns in 2023 and said it sees capital expenditure next year at around 14-billion.
Costs for building a new tank house at Ronnskar are not included in the 2023 guidance, CFO Hakan Gabrielsson told analysts and media in a call. The bulk of that cost would come in 2025, he said.
Comments
Latest Multimedia
Showroom
Rooted in the hearts of South Africans, combining technology and a quest for perfection to bring you a battery of peerless standing. Willard...
VISIT SHOWROOM
From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
