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• Operating Profit: SEK2.6 billion for Q1 2025.

• Free Cash Flow: Negative SEK1.8 billion to SEK1.9 billion.

• CapEx: SEK2.9 billion.

• Earnings Per Share: Just shy of SEK8.

• Mining Business Area Result: SEK1.3 billion.

• Smelters Result: Just above SEK1 billion.

• Net Debt: Just shy of SEK9 billion.

• Net Debt-to-Equity Ratio: 13%.

• Payment Capacity: 18%.

• Metal Prices Impact: SEK1.3 billion positive year-on-year.

• Volume Increase: SEK637 million year-on-year, with Tara contributing about SEK500 million.

• Working Capital Impact: Negative SEK2.4 billion.

• Warning! GuruFocus has detected 6 Warning Signs with BLIDF.

Release Date: April 23, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Boliden AB (BLIDF) reported an operating profit of SEK2.6 billion for Q1 2025, which is a substantial increase compared to the same quarter last year.

• The ramp-up of the Tara mine has been successful and is proceeding according to plan, contributing positively to production volumes.

• The company successfully closed the acquisition of Somincor and Zinkgruvan, which is expected to enhance its asset portfolio.

• Boliden AB (BLIDF) has maintained a strong balance sheet with a net debt-to-equity ratio of 13% following an equity raise.

• The company is on track with key projects such as the Kristineberg expansion and the Ronnskar cell house, which are expected to support future growth.

Negative Points

• Free cash flow was negative at SEK1.9 billion, primarily due to a build-up in working capital.

• The Finnish strikes had a negative impact of approximately SEK100 million on the company's financial performance.

• Lower recoveries and mill volumes in Aitik were noted, although slightly better than previous guidance.

• Greenhouse gas emissions have increased year-on-year, although they are moving according to plan.

• The company faces challenges with lower zinc grades in Garpenberg and issues with diorite intrusion in Aitik, affecting production.

Q & A Highlights

Q: Can you provide any updates on potential operational improvements in Zinkgruvan and Neves-Corvo now that the acquisition is closed? A: Mikael Staffas, President and CEO, stated that they will look into this and provide guidance in the next quarter. The focus will be on increasing the life length of these mines through exploration and productivity improvements. However, these changes take time to implement in mining operations.

Q: How much of the EBIT hit from lower benchmark terms is left to take in Q2? A: Hakan Gabrielsson, CFO, mentioned that an additional SEK300 million impact is expected in Q2. In Q1, roughly half of the quarter's smelters fed material with last year's prices, so the full impact will be seen in Q2.