Boliden: Low Metal Grades and Weaker Production Impacts Boliden’s Profits
BOLIDEN, Sweden -- February 11, 2013
Boliden’s (STO:BOL)(TSX:BLS) fourth quarter revenues totalled SEK 10194
million (SEK 9,716 m) and the operating profit, excluding the revaluation of
process inventory, totalled SEK 818 million (SEK 991 m). Revenues for 2012 as
a whole totalled SEK 40001 million (SEK 40,323 m) and the operating profit,
excluding the revaluation of process inventory, totalled SEK 3941 million
(SEK 5,008 m).
“We’re currently experiencing a period not only with low grades at Garpenberg
and Aitik but also with changes in the ore mix in the Boliden Area. The
quarter also saw a number of production disruptions at Tara and lower margins
in the smelters. On the plus side, our expansion projects are proceeding
according to plan and the cost trend, seasonally higher levels during the
quarter notwithstanding, looks good,” is how Boliden’s President & CEO,
Lennart Evrell, summarises the situation.
Global industrial production levels increased slightly during the final
quarter of the year, particularly those in China, but the USA’s automotive and
construction industries also showed growth. Demand for zinc and copper has
recovered from the low levels seen at the beginning of 2012, and by the end of
the year, were only slightly below 2011 levels.
“The market continues to develop in a rather stable manner. Metal demand is
relatively weak but so is supply, and the prices for our main products have
consequently held up well. Our subsidiary products have performed less well
and this is reflected in the smelters’ results. Our sales of metals to
European industries have continued to be stable,” says Boliden’s President &
CEO, Lennart Evrell.
Boliden has also published the 2012 update to the Group’s mineral resources
and mineral reserves today. The results show stable development by the
Garpenberg and Boliden Area mineral resources, among others, and include the
addition of two new inferred mineral resources for 2012, Laver and Rockliden.
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 4,800 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.
This information was brought to you by Cision http://www.cisionwire.com
Marcela Sylvander, Director Group Communications
tel. +46 8610 15 59
Frans Benson, Investor Relations
tel. +46 8610 15 23
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