Boliden: Price fluctuations and reduced costs affect Boliden’s Q3 result
BOLIDEN, Sweden -- October 25, 2012
Boliden’s operating profit was SEK 974 (1 397) million, excluding revaluation
of process inventory. Operating profit, including revaluation of process
inventory, totalled SEK 1 146 (1 180) million. The Group’s revenues totalled
SEK 9 123 (10 553) million and the operating expenses, excluding depreciation,
totalled SEK 2 513 (2 535) million.
The result of the third quarter was affected by external factors, such as
prices, terms and exchange rate effects as well as internal profit
eliminations due to increased inventories of internally supplied concentrates.
“We have a metals market characterized by large price fluctuations, in a
weakened global economic climate. However, the quarter has not been a dramatic
one as far as Boliden is concerned: Production levels have been stable, and
our expansion projects are proceeding according to plan. Production has begun
at the new Kankberg gold mine and has generated a small amount of gold. We
have also maintained our sales volumes to industrial customers in a weaker
European market,” says Boliden’s President, Lennart Evrell.
Boliden Mines posted a result of SEK 842 (1 047) million. The result improved
by SEK 116 million in comparison with the second quarter, primarily as a
result of better prices and terms, and lower costs. The copper production
levels were higher than in the previous quarter, but volumes fell for other
metals due to lower grades.
Boliden Smelters posted a result, excluding the revaluation of process
inventory, of SEK 292 (356) million. The result improved by SEK 52 million in
comparison with the second quarter due to better terms and lower costs. The
zinc smelters’ production levels were stable, but copper production fell
slightly, primarily as a result of maintenance stops. Electronic scrap
processing levels fell slightly during the quarter due to increased processing
of lead concentrate at the Rönnskär smelter.
“The future continues to be unclear and we can expect continued fluctuations
in metal prices. On the plus side, our production is stable and the
maintenance stops for 2012 are done” says Lennart Evrell.
Boliden is a metals company with a commitment to sustainable development. Our
roots are Nordic, but our business is global.The company’s core competence is
within the fields of exploration, mining, smelting and metals recycling.
Boliden has a total of approximately 4,400 employees and an annual turnover of
approximately SEK 40 billion. Its shares are listed on NASDAQ OMX Stockholm,
segment Large Cap, and on the Toronto Stock Exchange in Canada.
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