Swedish metals company Boliden has reported increases in milled volume and production of copper in concentrate over the first quarter, but noted that higher energy prices and inflation had an impact on growth.
Revenue at Boliden Mines in the first quarter increased to 21.8 billion SEK (US$2.2 billion) from 17 billion SEK in the same period last year, due to improved metal prices and a stronger USD. Operating profit excluding revaluation of process inventory totaled SEK 4 billion from SEK 2.4 billion.
However, costs increased as a result of higher energy prices and strong cost inflation for mining-related input materials such as bulk, consumables and transports.
"A strong quarter, with metal prices that remained high. Production was in general good with increased milled volumes at our mines and stable production at our smelters," said Mikael Staffas, president and CEO.
The milled volume in Aitik was significantly higher than last year, at 10.4 (8.5) Mtonnes, and there was an increase in production of copper in concentrate.
The Boliden Area also recorded a higher milled volume than last year. In the Garpenberg Zn-Pb-Ag-(Cu-Au) underground mine, maintenance had a negative impact, with the milled volume being lower than last year, at 720 (817) Ktonnes.
Also Tara had a lower milled volume. Kevitsa's milled volume was higher than last year despite increased rates of sick leave. However, lower grades meant that production of copper and nickel in concentrates decreased compared to last year.
Within Boliden Smelters, operating profit, excluding revaluation of process inventory, increased to SEK 1,378 m (949). Prices and terms had a significant positive effect. However, volumes had a negative impact, and higher prices for energy and consumables resulted in increased costs also at Smelters. Rönnskär's production of base metals was higher than last year, while gold production remained largely unchanged. In Harjavalta, production of copper and nickel matte was lower than last year. Zinc production at Kokkola was in line with last year, while in Odda production increased and the expansion project is running according to plan. In Bergsöe, production was lower than last year.
