Boliden Exceeds Market Expectations with Q3 Earnings

Swedish mining group Boliden reported a bigger than expected rise in its core earnings on Tuesday, saying production during the quarter had been good and metals prices were picking up.

Boliden’s third quarter operating profit, excluding the revaluation of process inventory, totalled 3.0 billion Swedish crowns ($274 mln), up 58% from 1.9 billion crowns a year earlier. 

That was above the expectation of 2.3 billion Swedish crowns seen in a company-provided consensus. 

“Our mine production during the quarter has been good,” Boliden’s chief executive Mikael Staffas said, adding that the Garpenberg mine has had a record ore output and the Kankberg mine set a new record production for gold.

Quarterly revenue for the mining group rose 14% to 22.2 billion crowns, from 19.4 billion in the same period last year.

Shares in Boliden rose 8% in early trading before giving up their gains.

In a research note, JPMorgan noted Boliden’s 2024 guidance is unchanged but said the 2025 outlook is weaker than its own estimate.

Staffas told Reuters that it is feasible the company will finish 2024 very close to the initial guidance.

The company announced in September it expected delays to start of Odda expansion project, now expected at the end of the first quarter of 2025.

The delay came after a string of hurdles over the recent quarters, with falling metal prices, lower mining grades and the suspension of production at the company’s Tara mine, on top of the fire at its smelter at Ronneskar last year.

On Tara, Europe’s largest zinc mine, the company said preparations for a restart are running according to plan.

It also added it expects to recognize an insurance income of 935 million crowns in the fourth quarter of 2024 related to the fire.

(Reporting by Tilla Sjaavaag in Gdansk; editing by Matt Scuffham)

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