Boliden: Lower Mined Production Impacts Boliden’s First Quarter
BOLIDEN, Sweden -- May 3, 2013
Boliden’s (STO:BOL) (TSX:BLS) revenues for the first quarter of the year
amounted to SEK 9,249 million (SEK 10,321 m) and the operating profit,
excluding process inventory revaluations, totalled SEK 751 million (SEK 1,258
m). The profit includes positive non-recurrent effects of SEK 171 million.
“The year-on-year decrease in the profit is due to poorer market terms and
lower production, while the decrease in comparison with the previous quarter
is caused by weaker production in the mines due to low grades,” says Boliden’s
President and CEO, Lennart Evrell.
Mined production of copper and gold fell in comparison with the previous
quarter due to low grades at the Aitik mine, while zinc production increased.
The smelters’ gold production increased, but their production of zinc and
copper fell. Operating expenses remained unchanged.
“On the plus side, cost increases have continued to be low and the Smelters’
earnings are stable. We are also very pleased to currently be in the midst of
a very intensive phase of the Garpenberg mine expansion and this past quarter
saw work start on installing equipment in the new concentrator and
underground. The challenges during the first quarter were posed by the Aitik
and Boliden Area mines: production at Aitik suffered a number of minor
disruptions due, in part, to a severe winter, while in the Boliden Area we
have been mining in low grade areas and the quality of the ore mix
consequently fell,” explains Lennart Evrell.
Global industrial production growth levels during the first quarter were
slightly down on levels in the fourth quarter of 2012. Industrial production
and GNP continued to grow strongly in China, but the growth rate during the
first quarter was lower than in the same quarter of 2012. The global metals
and mined concentrate markets were balanced and Boliden’s sales to industrial
customers remained strong. Metal prices have fallen sharply since the end of
the quarter and official copper stock levels have increased, and metal market
trends are difficult to predict at present.
Boliden's Annual General Meeting (AGM) will be held on 3 May at 3 p.m. CET at
the Stockholm Waterfront Congress Centre.
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