Boliden's fourth quarter: Strong cash flow despite large investments

Rhea-AI Summary

Boliden reported a strong fourth quarter with SEK 23,577 million in revenues and an operating profit of SEK 3,190 million. Free cash flow increased to SEK 3,520 million, reflecting a solid operational performance despite challenges in Boliden Mines where operating profit fell to SEK 1,512 million due to lower grades and higher costs. In contrast, Boliden Smelters achieved a record operating profit of SEK 1,570 million, bolstered by favorable currency effects and higher metal volumes. Investments for 2022 totaled SEK 10,022 million, focusing on various expansion projects.

Positive

• Revenues increased to SEK 23,577 million, up from SEK 17,755 million.
• Operating profit rose to SEK 3,190 million compared to SEK 2,835 million.
• Record operating profit in Boliden Smelters at SEK 1,570 million, up from SEK 553 million.
• Strong free cash flow of SEK 3,520 million, significantly higher than SEK 2,008 million.

Negative

• Operating profit in Boliden Mines decreased to SEK 1,512 million, down from SEK 3,002 million.
• Impairment of exploration rights amounted to SEK -259 million.
• Lower grades and higher costs impacted profitability in mines.

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STOCKHOLM, Feb. 14, 2023 /PRNewswire/ -- Revenues for the fourth quarter were SEK 23,577 m (17,755) and operating profit excluding revaluation of process inventory was SEK 3,190 m (2,835). Free cash flow totaled SEK 3,520 m (2,008).

"A strong quarter brings to an end an even stronger record year. Production stability is generally good, and our investment projects are on track. The work on development projects is also proceeding well, which all bodes well for the future," says Mikael Staffas, President and CEO.

The operating profit in Boliden Mines decreased to SEK 1,512 m (3,002), with a lower grades and higher costs having a negative impact compared to the same period in 2021. However, favorable currencies more than offset lower metal prices. In Aitik, production was conducted in areas with lower grades. The milled volume in the Boliden Area was higher than in the corresponding quarter in the previous year. In addition, test mining was carried out at the Rävliden deposit during the quarter. Garpenberg's milled volume was lower compared to the fourth quarter of 2021. During the quarter, efforts were made to reach an increased milling capacity of 3.3 Mtonnes. Tara's milled volume was higher than in the corresponding period last year. There was also an impairment of exploration rights of SEK -259 m during the quarter.

In Boliden Smelters, operating profit excluding revaluation of process inventory increased to SEK 1,570 m (553), which is a new record for a single quarter. Prices and terms had a significant positive effect, mainly through a stronger USD. Volumes also had a positive effect, mainly due to higher volumes of free metals. Copper production in Rönnskär and Harjavalta was lower than in the fourth quarter of 2021, while precious metal production increased significantly. In Harjavalta, the production rate in the new nickel line also increased after process improvements were implemented. Zinc production in Kokkola and Odda increased compared to the corresponding period in 2021.

Investments for the year totaled SEK 10,022 m (5,989). The year's major projects in Mines include investments in a new dam construction in Aitik, the expansion of the Rävliden deposit, and the extension and commissioning of electric trolley lines for trucks in Kevitsa. The year's major projects in Smelters include the expansion of the smelter in Odda, harbor improvements in Pori and a new precious metal plant in Harjavalta.

For further information please contact:
Klas Nilsson, Director Group Communications, tel: +46 (0)70-453 65 88
klas.nilsson@boliden.com 

Boliden is a metals company with a focus on sustainable development. Our roots are Nordic, our market global. Our core competence lies within the fields of exploration, mining, smelting and metal recycling. Boliden has around 6,000 employees and annual sales of approximately SEK 85 billion. The share is listed in the Large Cap segment on NASDAQ OMX Stockholm.
www.boliden.com 

The following files are available for download:

https://mb.cision.com/Main/997/3714253/1846096.pdf

Press release

 

View original content:https://www.prnewswire.com/news-releases/bolidens-fourth-quarter-strong-cash-flow-despite-large-investments-301746067.html

SOURCE Boliden

FAQ

What were Boliden's revenues for the fourth quarter of 2022?

Boliden reported revenues of SEK 23,577 million for the fourth quarter of 2022.

What was the operating profit for Boliden in Q4 2022?

The operating profit for Boliden in the fourth quarter of 2022 was SEK 3,190 million.

How much free cash flow did Boliden generate in Q4 2022?

Boliden generated free cash flow of SEK 3,520 million in the fourth quarter of 2022.

What challenges did Boliden Mines face in Q4 2022?

Boliden Mines faced challenges with a decrease in operating profit to SEK 1,512 million due to lower grades and higher costs.

What significant investments did Boliden make in 2022?

Boliden made significant investments totaling SEK 10,022 million in 2022, focusing on expansion and development projects.