Swedish mining and smelting group Boliden posted an operating profit of 3.21 billion Swedish crowns (USD 342 million) in the December quarter 2021 despite production disruptions.
"Despite certain incidents, it was a strong quarter," Boliden chief executive Mikael Staffas said. He credited high metal prices and higher milled volumes in Boliden's mines for the good quarter.
However, lower volumes and higher costs for energy and consumables, as well as maintenance, limited the positive impacts of the high metal prices.
Operating profit excluding revaluation of Boliden's process inventory totaled 2.84 Swedish crowns, which included an impact of 47 million Swedish crowns for insurance compensation.
It marks a slight increase from December quarter 2020, which posted 3.07 billion Swedish crowns.
Revenues amounted to 17.76 billion Swedish crowns, up from 16.17 billion Swedish crowns the year before.
Boliden Mines' operating profit increased to 3.00 billion Swedish crowns, an increase of 1.86 billion Swedish crowns. Higher prices and terms accounted for the increase in profit, as well as new records of milled volumes in the Aitik copper mine in Sweden and in the Kevitsa nickel mine in Finland.
Boliden Smelters' operating profit decreased to 553 million Swedish crowns, a decrease of 1.11 billion Swedish crowns.
The Harjavalta smelter in Finland, which handles copper, nickel, gold, and silver, saw increased maintenance, as well as production disruptions due to a slag explosion in late December. The smelter reopened at the end of January. The smelter had a significant decrease in nickel production in 2021.
The Tara smelter in Ireland also had trouble, experiencing a sharp increase in water inflow in late November. The smelter partially resumed on Dec. 10.
Global demand for zinc grew 2% this quarter compared to the December quarter of 2020 due to rising demand in Europe. Chinese demand declined 2%, while global smelter production increased 2%.
Copper demand also increased 2% this quarter year-on-year, though demand from China declined by 3%. Global smelter production declined by 2%.
Nickel saw a jump in global demand of 6% year-on-year despite lower production of stainless steel in China and Indonesia. Nickel demand for batteries is increasing, with the battery sector now accounting for 10% of global nickel demand.
Annual operating profit for Boliden in 2021 grew to 11.08 billion Swedish crowns, an increase from 2020's operating profit of 8.94 billion Swedish crowns.
Revenues for 2021 grew to 68.64 billion Swedish crowns, up from 56.32 billion Swedish crowns in 2020.
The company holds 7.15 billion Swedish crowns in free cash flow, an increase from 2020 year-end when the company held 4.96 billion Swedish crowns.
