Swedish mining giant Boliden doubles net profit despite production disruptions
(Kitco News) - Sweden-based mining company Boliden (Nasdaq Stockholm: BOL) announced Tuesday that its Q1 2021 free cash flow increased by more than 355%, from -845 million Swedish kronor (-$101 million) in Q1 2020 to 2,165 million kronor ($258 million) in Q1 2021.
The company said that operating profit excluding revaluation of process inventory totaled SEK 2,449 million ($292 million). The improvement in earnings is mainly due to higher metal prices, partly offset by a weaker USD. Lower milled volumes in the Mines segment resulting from production disruptions had a negative effect compared to the previous quarter.
Operating profit excluding revaluation of process inventory was SEK 594 million ($71 million) lower than the previous quarter. Volumes were affected negatively by lower milled volumes and grades in the Mines segment. Production disruptions and breakdowns in Tara and Aitik affected operating profit by SEK -300 million ($36 million). However, higher metal prices and lower costs had a positive effect on profit.
Profit after financial items totaled SEK 2,719 million (1,369 million in Q1 2020). Net profit was SEK 2,178 million (1,067 million in Q1 2020), corresponding to earnings per share of SEK 7.96 (3.90). Return on capital employed and equity for the past 12 months were 19.8 and 17.9% respectively.
According to Wikipedia, Boliden is a Swedish mining and smelting company focusing on production of copper, zinc, lead, gold and silver. The name comes from the Boliden mine, some 30 km northwest of the Swedish town of Skellefteå, where gold was found in 1924.