Regulatory News:
Boliden (STO:BOL) (TSX:BLS)
Boliden’s second quarter was characterised by high production levels and
favourable market conditions. Revenues totalled SEK 10,373 m (9,438),
while the operating profit, excluding revaluation of process inventory,
was SEK 1,257 m (374) and the free cash flow, SEK 1,557 m (920).
“Boliden posted strong profits thanks to favourable market conditions
and robust production levels, given the production disruptions at Aitik
and planned maintenance shutdowns at several smelters. The improvement
in the operating profit and a reduction in capital tied up also
contributed towards a strong cash flow,” says Boliden’s President & CEO,
Lennart Evrell.
High production levels, a strong US dollar, and good cost control saw
Boliden Mines double its year on year operating profit. The increase in
production at Garpenberg continued as planned, and production levels at
the recently-acquired Kylylahti mine in Finland and in the Boliden Area
were high. The previously announced process disruptions at Aitik, by
contrast, had a negative effect on volumes.
Boliden Smelters’ operating profit excluding revaluation of process
inventory more than trebled, year on year. The improvement was primarily
due to favourable market conditions, but also to the fact that
production levels were good, in spite of the maintenance shutdowns. The
growth in silver production at Kokkola and the high zinc production at
Odda also made positive contributions.
Independent nickel smelting operations began at Harjavalta at the end of
the second quarter. The operations buy in nickel concentrate from
external suppliers and the intermediate product, nickel matte, is sold
to customers for processing. The nickel operations were previously
conducted on a tolling basis.
“Global demand for Boliden’s main metals, copper and zinc, continues to
be high, although growth levels in recent quarters have been weak. We
are continuing to build on Boliden’s strong position – mines and
smelters with high production levels of both base and precious metals.
Take the Garpenberg mine, for example, where we have just completed a
comprehensive investment programme and now have the highest productivity
in the world; and the Odda smelter, which has substantially improved its
cost position thanks to earlier efficiency enhancement programmes and
the ongoing expansion project,” explains 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
4,900 employees and a turnover of SEK 37 billion. Its share is listed on
NASDAQ OMX Stockholm, segment Large Cap.
www.boliden.com (http://www.boliden.com)
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