Boliden’s third quarter: Extensive maintenance in Mines and production disturbances
Boliden’s third quarter was characterised by extensive maintenance in Mines and production disturbances. Revenues totalled SEK 11,628 m (9,733), and operating profit, excluding revaluation of process inventory, was SEK 1,744 m (1,318). Free cash flow totalled SEK 1,715 m.
“Maintenance work in all of the mines, coupled with production disturbances, resulted in production levels falling from the very high levels seen in the previous quarter. Garpenberg had problems with rock stability in one production area, necessitating the extraction of ore from areas with lower grades. On the plus side, Kevitsa is continuing to perform strongly, and cash flow was good,” is how Lennart Evrell, President & CEO of Boliden, summarises the quarter.
Extensive maintenance work in Boliden’s mines, coupled with production disturbances, saw production fall from the levels achieved in a very strong second quarter. Aitik’s production was limited by low crusher availability. Garpenberg’s milled volume was high in spite of the maintenance work carried out on the mills. The re-planning of production areas, however, resulted in lower grades during the quarter. Production disturbances continued in the Boliden Area, and metal production consequently fell from the previous quarter’s levels. Kevitsa’s milled volume and copper production achieved record highs.
Process disturbances at the Kokkola and Odda zinc smelters had a negative effect on production, while Rönnskär’s copper and lead production remained on par with the previous quarter, and Harjavalta’s processes were stable.
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Boliden is a metals company with a focus on sustainable development. Scandinavian roots, global market. Our core competence lies within the fields of exploration, mining, smelting and metal recycling. Boliden has more than 5,500 employees and an annual turnover of SEK 40 billion. The stock is listed in the Large Cap segment on NASDAQ OMX Stockholm.