Boliden: Boliden’s Q2: High Production and Strong Cash Flow
July 18 2014 - 6:25AM
Business Wire
Regulatory News:
Boliden (STO:BOL) (TSX:BLS)
Boliden’s revenues increased to SEK 9,438 million (SEK 8,035 m)
during the quarter, and the operating profit, excluding the
revaluation of process inventory, totalled SEK 374 million (SEK 370
m). The quarter was characterised by stable production, higher
metal prices and a strong cash flow.
“The last quarter was a good one for Boliden, with record
production levels at Aitik and production further boosted by
Garpenberg’s new facility. Production by Business Area Smelters was
stable, given the maintenance shutdowns during the quarter, and the
action plan at R�nnskär is continuing to yield good results. The
high production levels did, however, generate increased costs, and
rising metal prices resulted in internal profits that have not, as
yet, been realised within the consolidated profit,” says Boliden’s
President & CEO, Lennart Evrell.
The positive production trend at the Aitik mine continued during
the quarter, with a milled tonnage volume of just over 10 million
tonnes – the highest ever for a single quarter. Boliden Mines’
results were boosted by the Garpenberg mine’s volumes, but impacted
by increased depreciation. Production by Boliden Smelters was
stable and the maintenance shutdowns went better than planned. The
shutdowns did result in a fall in smelter production and higher
costs in comparison with the previous quarter, but this was
compensated for by improvements in prices, TC/RC and exchange
rates.
Strong growth in China and a continued recovery in the mature
economies have contributed to a year on year growth in demand for
Boliden’s main metals, copper and zinc, of just over 4 per cent. By
the end of the quarter, the price of zinc had reached its highest
level since August 2011.
“The market’s mood has gradually improved. Expectations of a
copper surplus have declined while the anticipated shortage of zinc
concentrate is becoming increasingly likely. The weaker Swedish
krona is also having a positive effect on Boliden’s figures in that
our sales are all made in US dollars, while the majority of our
costs are in SEK,” explains Lennart Evrell.
On 8th July, Boliden entered into an agreement with Altona
Mining to buy the Kylylahti copper mine, together with exploration
rights and deposits in eastern Finland. The consideration amounts
to USD 95 million.
“We see several synergies in mining, metallurgy and exploration.
The acquisition will also establish Boliden as a mining company in
Finland, where we are already a significant smelting company. We
are now awaiting the approval of the Finnish Competition and
Consumer Authority and the Altona Mining Limited shareholders,”
concludes Lennart Evrell, President & CEO of Boliden.
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 4,800 employees and an annual turnover of
approximately SEK 34 billion. Its share is listed on NASDAQ OMX
Stockholm, segment Large Cap. www.boliden.com
This information was brought to you by Cision
http://news.cision.com
BolidenMarcela SylvanderGroup Communicationstel: +46 (0)733
2445512orSophie ArniusInvestor Relationstel: +46 (0)70 590 80
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