Boliden: Boliden’s Q1: Good Result in Smelters
03 Mai 2016 - 7:42PM
Business Wire
Regulatory News:
Boliden’s revenues totalled SEK 8,849 m (10,407) and the
operating profit, excluding the revaluation of process inventory,
was SEK 769 m (1,102). Higher production levels than in the
previous year were, however, unable to compensate in full for lower
metal prices.
“Boliden’s strategic positioning, with mines and smelters that
produce both base and precious metals, gives us an advantage in
today’s market. The market terms are currently favouring our
smelters, which are continuing to post stable results. The mines’
production levels have also been good, but have been hit hard by
the lower metal prices,” says Boliden’s President & CEO,
Lennart Evrell.
Smelters’ operating profit, excluding the revaluation of process
inventory, was continued stable. Higher production and a new
business model for nickel yielded improvements in both volumes of
free metals and TC/RC in comparison with the corresponding quarter
in 2015. Market terms for smelters continue to be favourable, but
have deteriorated year on year.
Mines’ production levels and cost control were good, but lower
metal prices resulted in a year on year halving of the operating
profit. The Garpenberg zinc-silver mine had another strong quarter
and production at the Aitik copper mine, which is normally lower in
the winter due to weather conditions, increased in comparison with
the first quarter 2015.
On 10 March, Boliden signed an agreement with First Quantum to
buy the Kevitsa nickel-copper mine in northern Finland. The total
consideration on a debt free basis is USD 712 m. Relevant
competition authorities have approved the acquisition and Boliden
plans to close the deal around 1 June 2016.
“This acquisition is in line with our strategy and constitutes
an opportunity to expand our operations with a high-quality mine
that is a good fit for Boliden, both operationally and
geographically. It also establishes a stable supply of concentrate
for our smelters,” 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 approximately
4,900 employees and a turnover of SEK 40 billion. Its share is
listed on NASDAQ OMX Stockholm, segment Large Cap.
www.boliden.com
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BolidenSophie Arnius, +46 8 610 15 23, +46 70 590
8072Director Investor Relations and Acting Press Officer
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