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Boliden cashes in on higher metal prices as profits jump - Finance news and analysis from Global Banking & Finance Review
Finance

Boliden cashes in on higher metal prices as profits jump

Published by Global Banking & Finance Review

Posted on October 29, 2026

2 min read

· Last updated: October 29, 2026

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Boliden Sees 77% Profit Rise on Surge in Copper & Zinc Prices

Boliden's Third-Quarter Performance and Market Dynamics

By Agnieszka Olenska and Jesus Calero

Strong Profit Growth Driven by Commodity Prices

Oct 29 (Reuters) - Swedish miner Boliden reported a roughly 77% jump in third-quarter adjusted operating profit on Thursday as higher copper and zinc prices outweighed operational disruptions and rising costs.

Operating profit excluding the revaluation of process inventory rose to about 4.90 billion crowns ($494.4 million), up from 2.75 billion crowns a year earlier.

Impact of Supply Constraints

Supply constraints have helped drive copper and zinc prices higher, boosting profitability at Boliden's mines even as lower treatment charges weighed on its smelting business.

Market Outlook and CEO Commentary

"There is a growing consensus that the copper price has a new floor," CEO Mikael Staffas said in a statement.

Operational Updates and Guidance

Aitik Mine Adjustments

Boliden cut its full-year copper-grade guidance for its flagship Aitik mine after more waste rock was mixed with ore, although it raised the site's ore-processing target to 42 million tonnes.

Smelter Performance and Expansion

Problems with a new roaster slowed expansion at one of Boliden's smelters earlier this year, but performance improved toward the end of the quarter, supporting expectations for a faster ramp-up.

Smelter operating profit excluding inventory revaluation more than doubled to 1.48 billion crowns as higher metal and sulphuric-acid prices offset lower processing fees.

Capital Expenditure and Production Targets

The company maintained its 2026 capital-expenditure forecast of 15.5 billion crowns and its target for Garpenberg to process 1.5 million tonnes of ore.

Disruptions and Recovery at Garpenberg

Garpenberg's zinc and silver production was disrupted by an earthquake in March, though Staffas said recovery remained on track.

Zinc Market Trends

Zinc prices have also surged on tight supply, reaching a four-year high in September as inventories and mined-material availability remained constrained.

($1 = 9.9106 Swedish crowns)

(Reporting by Agnieszka Olenska and Jesus Calero in Gdansk, editing by Milla Nissi-Prussak and Matt Scuffham)

Key Takeaways

  • Adjusted EBIT jumped ~77.8% year‑on‑year to SEK 4,894 m, beating consensus and driven by strong copper and zinc prices. (borsvarlden.com)
  • Copper and zinc market tightness lifted metal prices sharply—copper averaged nearly USD 12,800/t in Q1‑26 (up 16% QoQ, 38% YoY), while zinc rose due to constrained supply. (investors.boliden.com)
  • Production at Garpenberg—Boliden’s key zinc/silver asset—was disrupted by seismic events in March but recovery remains on track, though analysts caution of long‑term risks. (boliden.com)

Frequently Asked Questions

What drove Boliden's profit increase in the third quarter?
Higher copper and zinc prices outweighed operational disruptions and rising costs, resulting in a 77% jump in adjusted operating profit.
How did supply constraints affect Boliden?
Supply constraints boosted copper and zinc prices, improving profitability at Boliden's mines despite lower treatment charges.
What were Boliden's operating profits in Q3?
Adjusted operating profit rose to about 4.90 billion crowns, up from 2.75 billion crowns a year earlier.
How were Boliden's zinc and silver operations impacted?
Garpenberg's zinc and silver production was disrupted by an earthquake, but recovery remained on track.

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