Sweden · Delayed Price · Currency is SEK Boliden AB Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 saw strong EBIT and cash flow, driven by high metal prices and solid mine and smelter performance, despite a major seismic event at Garpenberg causing a SEK 700 million write-off. Guidance for Garpenberg production is maintained, with ramp-up expected through 2032.
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Seismic activity has severely impacted the upper Lappberget ore body, reducing production to 30% of normal and causing a projected Q1 loss of SEK 400 million. Full-year output and EBITDA are expected to be less than half of initial forecasts, with recovery plans and timelines still under review.
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SEK 4 billion will be invested in a new shaft at Garpenberg to sustain and expand production, while SEK 1.5 billion goes to a patented cement replacement plant at Rönnskär. CapEx guidance for 2026 rises to SEK 15.5 billion, with strong financials and a robust growth pipeline.
Fiscal Year 2025
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Q4 2025 delivered strong results driven by high precious metal prices, robust mine and smelter performance, and a SEK 410 million one-off gain. Dividend of SEK 11 per share was proposed, and reserves/resources were significantly upgraded, supporting long-term growth.
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2026 guidance includes higher mine grades, increased throughput, and major CapEx projects, with Odda and Rönnskär ramp-ups on track despite minor delays. Strategic initiatives focus on productivity, compliance, and mine extensions, while Finnish tax changes and technical challenges present key risks.
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Q3 2025 saw strong results from higher gold and silver prices, record mine production, and successful integration of new assets. Guidance remains stable except for reduced Tara throughput, while Finnish tax changes pose future risks.
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EBIT excluding inventory valuation was just under SEK 1.3 billion, with stable production and strong cash flow despite negative currency effects and planned maintenance. Guidance for CapEx and grades largely unchanged, except for a lower zinc grade at Garpenberg.
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Operating profit rose year-over-year to SEK 2.6 billion, with negative free cash flow due to working capital build-up and integration of new acquisitions. Key projects are on track, while market volatility and operational challenges at Aitik and Garpenberg persist.
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Strong progress on sustainability, major investments in smelters and mines, and a robust financial position underpin growth plans. Key projects include Odda and Rönnskär expansions, Garpenberg ramp-up, and the innovative Cementum product, with strategic flexibility in capital allocation.
Fiscal Year 2024
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Q4 2024 saw strong profit and cash flow, aided by a one-off insurance claim and robust smelter output. Major projects were completed on time, acquisitions advanced, and the dividend was canceled to help fund expansion. Net debt to equity ended at 16%.
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The acquisition of Neves-Corvo and Zinkgruvan mines is strategically aligned, cash generative, and expected to boost zinc and copper supply for smelters. The $1.3 billion deal, with contingent payments and a planned rights issue, aims for completion by mid-2025, enhancing vertical integration and long-term growth.
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Q3 2024 saw strong operational and financial results, with record production at Garpenberg, robust EBIT, and improved metal prices. Key projects are progressing, though environmental permits and market volatility present ongoing risks.
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Odda's expansion faces a quarter delay and EUR 100 million CapEx overrun, but commissioning of key facilities is underway and 2024/2025 CapEx guidance is confirmed. Annual incremental EBITDA remains at EUR 150 million, with most project risks now limited to commissioning.
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Q2 2024 results were boosted by a SEK 2.4 billion insurance gain and higher metal prices, offsetting operational challenges at Aitik and Tara. CapEx and cash flow were in line with guidance, and key projects remain on track. Net debt rose due to dividend payments.