Boliden: Price fluctuations and reduced costs affect Boliden's Q3 result
Boliden's operating profit was SEK 974 (1 397) million, excluding revaluation of process inventory. Operating profit, including revaluation of process inventory, totalled SEK 1 146 (1 180) million. The Group's revenues totalled SEK 9 123 (10 553) million and the operating expenses, excluding depreciation, totalled SEK 2 513 (2 535) million.
The result of the third quarter was affected by external factors, such as prices, terms and exchange rate effects as well as internal profit eliminations due to increased inventories of internally supplied concentrates.
“We have a metals market characterized by large price fluctuations, in a weakened global economic climate. However, the quarter has not been a dramatic one as far as Boliden is concerned: Production levels have been stable, and our expansion projects are proceeding according to plan. Production has begun at the new Kankberg gold mine and has generated a small amount of gold. We have also maintained our sales volumes to industrial customers in a weaker European market,” says Boliden's President, Lennart Evrell.
Boliden Mines posted a result of SEK 842 (1 047) million. The result improved by SEK 116 million in comparison with the second quarter, primarily as a result of better prices and terms, and lower costs. The copper production levels were higher than in the previous quarter, but volumes fell for other metals due to lower grades.
Boliden Smelters posted a result, excluding the revaluation of process inventory, of SEK 292 (356) million. The result improved by SEK 52 million in comparison with the second quarter due to better terms and lower costs. The zinc smelters' production levels were stable, but copper production fell slightly, primarily as a result of maintenance stops. Electronic scrap processing levels fell slightly during the quarter due to increased processing of lead concentrate at the Rönnskär smelter.
“The future continues to be unclear and we can expect continued fluctuations in metal prices. On the plus side, our production is stable and the maintenance stops for 2012 are done” says 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 4,400 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. www.boliden.com
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