Boliden’s first quarter characterised by stable production but lower grades

"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/