Boliden’s third-quarter core earnings fell less than expected, benefiting from stronger precious metal prices, the Swedish miner said on Wednesday while reiterating its investment plans for 2025.
Boliden’s quarterly operating profit, excluding the revaluation of its process inventory, fell 8% to 2.75 billion Swedish crowns ($292.07 million) in part due to maintenance work and integration of two mines it bought this April.
But the figure beat an average forecast of 2.48 billion crowns forecast in a company-provided consensus.
Gold rush helps
“Although there is still a large uncertainty in the world, my view is that the situation is now more stable,” Chief Executive Mikael Staffas said in the statement.
The quarter was helped by higher metal prices, especially gold and silver, coupled with higher milled volume in its mines and less extensive planned maintenance in smelters, Boliden said.
The price of gold reached $4,000 an ounce for the first time ever earlier in October, with investors seeking cover amid geopolitical uncertainty.
The company, which mainly produces copper and zinc, said in the statement that gold and silver are now clearly its third and fourth most important metals affecting its earnings.
Reviewing investments in Finland
Boliden estimated that a proposed tax increase in Finland would result in an annual cost of 20 million to 30 million euros for its Kevitsa copper and nickel mine.
Staffas said in an analyst call that the company would need to reassess future investments in the country as they would become “less attractive” if the hikes were approved and told Reuters that Kevitsa’s expansion was potentially at stake.
The miner has two out of its five smelters in Finland.
The group maintained its capital expenditure forecast for 2025 of 15.5 billion crowns.
(By Agnieszka Olenska and Izabela Niemiec; Editing by Anna Pruchnicka and Matt Scuffham)
