#Sweden #Stockholm #mining #Boliden #Garpenberg

Boliden's Q1 2026 Performance Report

Introduction

In an unexpected turn of events, Boliden's financial performance for the first quarter of 2026 demonstrates resilience in the face of challenges posed by unusual seismic activity at their Garpenberg site. President and CEO Mikael Staffas emphasized the importance of focus and adaptability in navigating such challenges, stating: "In times like these, it is even more important to focus on what you can influence and that is what our organization does and will do relentlessly."

Financial Overview

The financial figures released for Q1 2026 showcase a notable increase in revenues and profits compared to the previous year:

• - Revenues stood at SEK 27,822 million, a substantial rise from SEK 21,121 million.
• - Operating Profit reached SEK 5,247 million, up from SEK 3,062 million.
• - Excluding Process Inventory Revaluation (PIR), the operating profit was SEK 4,432 million, improved from SEK 2,599 million.
• - Earnings Per Share also reflected growth, increasing to SEK 13.45 from 7.99.
• - Free cash flow showed a turnaround with SEK 1,673 million compared to a negative SEK 1,869 million previously.

Key Highlights

The report detail marked strengths across various sectors within the company:
1. Mining and Smelters Performance: Both the mining and smelting divisions showed solid performance, benefiting from stronger metal prices and consistent production outputs.
2. Aitik and Kevitsa Mines: Both locations continued strong production levels, contributing to the overall positive performance.
3. Smelter Production: A remarkable year-on-year increase in both gold and silver production at the smelters was observed, fortifying the company's market position.
4. Seismic Activity At Garpenberg: Despite these successes, the abnormal seismic activity at Garpenberg resulted in a substantial asset write-down amounting to SEK 700 million, alongside a negative volume effect of SEK 400 million. This has led to an updated forecast for 2026, estimating milled volumes of 1.5 million tonnes with a zinc grade of 2.7% and a silver grade of 100g/t. Previous projections had indicated higher expectations of 3.7 million tonnes, 2.9% and 95g/t respectively.
5. Expansion Initiatives: Meanwhile, the Odda site has begun ramping up its expansion project, demonstrating Boliden's commitment to future growth despite present obstacles.

Looking Ahead

As Boliden navigates through the seismic challenges at Garpenberg, they have outlined upcoming expectations for production. The company anticipates a milled production of approximately 0.1 million tonnes in the second quarter of 2026 and estimates a milled volume of 2.3 million tonnes for Garpenberg in 2027. This foresight could play a crucial role in stabilizing operations moving forward.

Conclusion

Boliden's Q1 2026 report presents a compelling narrative of a company that is not only performing well financially, but also adapting strategically to adversities. As they continue to monitor and mitigate the effects of seismic activities, their commitment to innovation and resilience remains evident. The stockholders and the market will be keenly watching their next moves, particularly with the scheduled webcast on April 28, where detailed explanations of these results will be provided. This environment reflects the dynamic and often unpredictable nature of the mining industry, where resilience and adaptability are key drivers of long-term success.

For further details, stakeholders and interested parties are encouraged to attend the imminent webcast/conference call scheduled for April 28 at 9 AM (CEST). The updated guidance and performance metrics will be critical points of discussion as Boliden continues to shape its future in the mining sector.