Swedish miner Boliden's first-quarter earnings beat estimates, despite challenges at Garpenberg mine
By Agnieszka Olenska and Izabela Niemiec
Boliden's First-Quarter Performance and Garpenberg Mine Update
Financial Results Exceed Expectations
April 28 (Reuters) - Swedish miner Boliden on Tuesday reported a higher-than-expected increase in first-quarter adjusted earnings despite facing a production halt and damages cased in March by abnormal seismic activity at its Garpenberg zinc mine.
Impact of Seismic Activity at Garpenberg Mine
Production Outlook and Capacity Adjustments
Production at Garpenberg, one of Boliden's largest and most important mines and a key source of zinc and silver concentrates, is expected to remain below previous capacity levels, with 2027 milled volume estimated at 2.3 million tonnes, the company said.
Boliden said its production at Garpenberg will be resumed in the second quarter, but "at a quite low pace."
Revised Guidance and Future Investments
The company lowered milled volume guidance for the mine to 1.5 Mtonnes and zinc grade to 2.7%, while increasing forecast for silver grade to 100g/t from 95g/t.
Boliden added that its decision to invest in a new hoist remains, with an ambition to have it in operation and reach production of 4.5 million tonnes by 2032, though the guidance remains preliminary due to significant uncertainties.
Key Drivers of Profit Growth
Operating Profit and Analyst Expectations
The company's quarterly operating profit, excluding a revaluation of its process inventory, rose to 4.4 billion Swedish crowns ($475.7 million) from 2.6 billion crowns in the same period last year. That beat an analyst consensus of 4.06 billion crowns provided by the company.
Benefit from Record Gold Prices
Revenue from Precious Metals
Boliden continued to benefit from record high gold prices, which at times rose above $5,000 per ounce between January and March, boosting the revenue from precious metals it collects as a by-product from mining and smelting flows.
Future Outlook
Overall, the company's investment plans for 2026 were reiterated.
($1 = 9.2496 Swedish crowns)
(Reporting by Agnieszka Olenska, Izabela Niemiec, Editing by Matt Scuffham)
