Boliden profit misses forecasts hit by production disruptions

Boliden’s Kristineberg mine in Sweden. (Credit: Boliden)

Swedish mining and smelting group Boliden reported on Friday a third-quarter operating profit below market forecasts, pressured by higher costs and lower volumes.

Boliden said costs had increased due to major planned maintenance shutdowns, higher energy prices and wage inflation, while volumes had decreased.

It added that it expected total investments of close to 7 billion crowns ($814.8 million) this year, and slightly above 10 billion crowns in 2022.

“The global demand for base metals related to electrification is continuously strong, but there is also a general uncertainty in supply chains,” Chief Executive Mikael Staffas said in a statement.

Operating profit at the group rose to 2.31 billion crowns from 2.62 billion a year earlier, missing a mean forecast of 2.93 billion in a Refinitiv poll.

Excluding revaluation of process inventory, operating profit was 2.42 billion crowns.

($1 = 8.5907 Swedish crowns)

(By Helena Soderpalm; Editing by Simon Johnson)

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