Stable production boosts third quarter profit

Stable production boosts third quarter profit

Boliden's operating profit totalled SEK 1,180 million (SEK 1,348 m). The
revaluation of process inventory impacted the quarterly profit by SEK
-216 million. If the revaluation is excluded, the operating profit
totalled SEK 1,397 million (SEK 1,213 m). Revenues totalled SEK 10,553
million (SEK 9,373 m).

The quarter was characterised by production stability, but ended
dramatically with steep falls in metal prices and increased global
economic turbulence. From Boliden's point of view, however, a stronger
US dollar meant that metal prices in Swedish kronor were, on average,
higher than those in the previous quarter.

“All the drama in third quarter involved events outside the company and
uncertainty about developments in the short-term has continued into the
fourth quarter. A number of European metal customers have implemented
production cutbacks, but we have successfully compensated for the fall
in the volume this entailed by sales to other customers,” says Lennart
Evrell, Boliden's President & CEO.

Costs have increased in comparison with the corresponding quarter last
year due to increased volumes and cost inflation in relation to energy,
spare parts and external services.

The operating profit for Business Area Mines totalled SEK 1,047 million
(SEK 1,061 m), while the operating profit excluding revaluation of
process inventory for Business Area Smelters totalled SEK 356 million
(SEK 238 m). Smelters' profits include the approximately SEK -45 million
(SEK -100 m) effect of maintenance shutdowns.

“The strong production at the Harjavalta copper smelter and the
impressive results reported by the Garpenberg zinc-silver mine are
particularly pleasing. Fine-tuning of Aitik's increased capacity is
proceeding according to plan and Aitik's production levels during the
third quarter equated to 34 million tonnes of ore on a yearly basis,”
says Lennart Evrell.

The electronic scrap capacity expansion at Rönnskär, the investments in
the Kankberg gold mine, and the expansion of the Garpenberg zinc-silver
mine are all proceeding according to plan.

 

For further information, please contact:
Frans Benson, Director Investor Relations, Boliden AB, tel: +46 8 610
1523
Marcela Sylvander, Director Group Communications, Boliden AB, tel: +46 8
610 1559, +46 733 244 551

Boliden is a leading European metals company whose core competence is in
the fields of exploration, mining, smelting and recycling. Boliden's
main metals are zinc and copper. Other important metals extracted and
refined include lead, gold and silver. The operations are conducted in
two Business Areas: Mines and Smelters. The number of employees is
approximately 4 400 and the turnover in 2010 amounted to approximately
SEK 37 billion. Its shares are listed on NASDAQ OMX Stockholm, segment
Large Cap and on the Toronto Stock Exchange in Canada.

www.boliden.com