Latest news with #Staffas
Irish Examiner
23-04-2025
- Business
- Irish Examiner
Tara Mines owner sees profits almost double
Tara Mines owner Boliden said it expected to reach peak production at the mine in 2028, following extensive upgrade works. Publishing its quarterly results, the Swedish company said Tara, which is Europe's only zinc mine, continued to ramp up its production in the first quarter after it reopened in October. Boliden said full-year milled volume production for 2025 was expected to be 1.8 Mtonnes. Tara's full production target is 2.2 Mtonnes per annum and it is expected to be reached by 2028, the company said. The company operates six other mines and five smelters in the Nordic region and Portugal. Its operating profit nearly doubled to 3.06 billion Swedish crowns (€281m) in the quarter. Tara Mine was closed in June 2023, with 650 workers being laid off. A deal was reached between a group of unions representing workers and Boliden to resume operations last year, which saw the number of workers reduced to 400. Boliden also mines base metals such as copper, gold and silver, does not have any direct mining or smelting operations in the United States and said the impact of the announced global tariffs had so far been limited. "But the big effect on us is the indirect effect," chief executive Mikael Staffas said in an interview with Reuters. Global metal prices and currencies have fluctuated more than usual after the end of the first quarter, resulting in deteriorating base metal prices and a weaker dollar, Staffas said in the earnings statement, adding strong precious metal prices had only partially offset those effects. Copper prices are still at a better level than a year ago, and Boliden is positioned to operate smoothly even if the conditions worsen, he said. JPMorgan analysts said in a research note given the company's higher capital expenditure plans and headwinds like weaker prices, currency effects and scheduled smelter maintenance, they saw a "significant downside" to consensus estimates for second-quarter operating earnings. Boliden raised its capital expenditure forecast to 15.5 billion crowns this year, instead of the previously targeted 14 billion, reflecting the recently closed acquisition of the Somincor mine in Portugal and the Zinkgruvan mine in Sweden. Additional reporting Reuters
Irish Times
23-04-2025
- Business
- Irish Times
Tara Mines owner Boliden tops earnings estimates in first quarter
Tara Mines owner Boliden reported first-quarter earnings above market estimates on Wednesday, helped by higher metal prices and a stronger dollar, but warned that trend had reversed since the start of April. The company, which operates seven mines and five smelters in the Nordic region, Ireland and Portugal, said its operating profit nearly doubled to 3.06 billion Swedish crowns (€280 million) in the quarter. That beat analysts' average forecast of SKr2.59 billion. Boliden, which mines base metals such as copper and zinc, as well as gold and silver, does not have any direct mining or smelting operations in the United States and said the impact of the announced global tariffs had so far been limited. 'But the big effect on us is the indirect effect,' chief executive Mikael Staffas said in an interview with Reuters. READ MORE Global metal prices and currencies have fluctuated more than usual after the end of the first quarter, resulting in deteriorating base metal prices and a weaker dollar, Mr Staffas said in the earnings statement, adding strong precious metal prices had only partially offset those effects. Copper prices are still at a better level than a year ago, and Boliden is positioned to operate smoothly even if the conditions worsen, he told Reuters. JPMorgan analysts said in a research note that, given the company's higher capital expenditure plans and headwinds like weaker prices, currency effects and scheduled smelter maintenance, they saw a 'significant downside' to consensus estimates for second-quarter operating earnings. Boliden raised its capital expenditure forecast to SKr15.5 billion this year, instead of the previously targeted SKr14 billion, reflecting the recently closed acquisition of the Somincor mine in Portugal and the Zinkgruvan mine in Sweden from Lundin Mining. (c) Copyright Thomson Reuters 2025
Reuters
06-02-2025
- Business
- Reuters
Swedish miner Boliden beats core profit view, but scraps dividend
Feb 6 (Reuters) - Swedish miner Boliden ( opens new tab reported a bigger-than-expected rise in fourth-quarter core earnings on Thursday, sending its shares more than 7% higher, even though the company scrapped its dividend for last year. Boliden cancelled its ordinary dividend for 2024 to reduce the expected new share issue associated with the acquisitions of the Neves-Corvo and Zinkgruvan mines from Lundin Mining ( opens new tab. "We got a clear majority message that this was a preferred route," CEO Mikael Staffas said in a conference call about shareholders' reactions. Ahead of the earnings report, some analysts viewed the acquisitions as a potential risk to the dividend's size, but were confident of a payout. Boliden's operating profit, excluding the revaluation of its process inventory, rose to 3.81 billion crowns ($348.8 million) from 2.02 billion crowns a year earlier, beating a company-provided consensus of 3.59 billion crowns. The result was mainly driven by acquisitions and production, the mining and smelting company said in its quarterly report. Staffas was confident of Boliden's prospects in Europe in the immediate future, saying the electrification and energy transition would be the main demand drivers for copper, zinc and nickel. "We are not really worried that Europe will not need our metal," he said in an interview with Reuters. Boliden increased its capital expenditure forecast for 2025 to 14 billion crowns from 13.5 billion crowns due to a roll-over from 2024. It expects maintenance shutdowns at smelters to drive down operating profit by 500 million crowns in 2025. In the reported quarter, Boliden resumed production from the Tara mine in Ireland, which had been placed on care and maintenance to meet financial and operational challenges since July 2023, and completed the expansion project of Aitik, the largest copper mine in the Nordic region. The company also said the expansion project in Odda zinc smelter in Norway was close to completion after a delay announced last year. ($1 = 10.9244 Swedish crowns) Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here.
