Boliden (BOL) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered strong operational and financial performance, with revenues up 14% year-over-year, improved prices and terms, and record mill production at Garpenberg.

• Key projects, including Odda expansion, Aitik reinforcement, and Kristineberg, are progressing well and nearing completion, with some timeline adjustments but no major disruptions.

• Tara mine successfully restarted, with ramp-up ongoing and full production targeted for Q1 2025.

• Application for a mining concession in Laver submitted; Tankhouse 6 in Odda under commissioning.

• Free cash flow improved to SEK -495m from SEK -1,200m year-over-year.

Financial highlights

• Revenues reached SEK 22,193m, with operating profit (EBIT, excluding process inventory) at SEK 2,999m, up from SEK 1,940m year-over-year.

• Earnings per share were SEK 8.34, a nearly 70% increase from last year.

• Free cash flow was SEK -495m, mainly due to high CapEx and working capital build.

• CapEx for the quarter was SEK 3.2bn, in line with full-year guidance of SEK 15.5bn.

• Net debt to equity stood at 24%, with net debt at SEK 14.8bn and payment capacity over SEK 12bn.

Outlook and guidance

• CapEx guidance reiterated: SEK 15.5bn for 2024 and SEK 13.5bn for 2025.

• No planned maintenance in Q4; insurance income of SEK 935m to be booked in Q4.

• Tara mine expected to run at full cost but not full production in Q4, with a negative EUR 25m result anticipated.

• Kevitsa mine plan under review, which may impact 2025 grade guidance.

• Permit application for Garpenberg expansion to 4.5 million tons underway, expected to be resolved in 2025.