Boliden's first quarter was characterised by stable production in both mines and smelters. Revenues for the period totalled SEK 13 047 million and the operating profit, excluding revaluation of process inventory, was SEK 2048 million. The free cash flow totalled SEK 323 million due to, amongst other things, lower result and increased investments.
"The period can be summarised as a combination of high production stability and investments in growth at a number of units. The year-on-year decrease in volumes caused by lower grades was counterbalanced by a strong US dollar," said Boliden's President & CEO, Mikael Staffas.
The operating profit for Boliden Mines decreased to SEK 1353 million, primarily due to lower grades at Aitik, Tara and Kevitsa. Mined production and milled volumes did, however, improve year-on-year, and Garpenberg reported its highest-ever milled volumes. Milled volumes in the Boliden area fell slightly from last year due to the Maurliden pit being almost mined out, but production levels in the Boliden Area's three remaining mines were high. Kylylahti continued to report high levels of nickel and cobalt production, but copper production decreased.
Boliden smelters' operating profit, excluding revaluation of process inventory, increased to SEK 853 million due to improvements in prices and terms. Improvements in zinc smelting charges in this year's benchmark contracts did not impact the profit in full, however, due to the processing of a large share of concentrates under last year's terms. Copper production fell slightly at Rönnskär, year-on-year, but gold production increased. Nickel matte production levels at Harjavalta remained both high and stable. Kokkola's process stability has improved, and the feed levels consequently rose, while production levels at Odda remained on a par with last year. Production levels at Bergsöe fell, year-on-year, due to an unplanned production stoppage.
Read the article online at: https://www.globalminingreview.com/exploration-development/03052019/bolidens-first-quarter-characterised-by-stable-production-but-lower-grades/