Boliden's Q2 copper output dropped 12% as Aitik ore grades fell to 0.18% copper. Revenue slipped 3% to SEK 17.6 billion on lower metal prices. The CEO expects a more normal grade profile in H2.
Alpha Score of 40 reflects weak overall profile with moderate momentum, poor value, moderate quality, moderate sentiment.
Boliden reported lower second-quarter output on Tuesday after ore grades declined at its Aitik copper mine, the company's largest operation, while weaker copper prices and higher costs squeezed margins.
Milled volume at Aitik fell to 9.3 million tonnes from 9.8 million a year earlier, and copper grade dropped to 0.18% from 0.21%. That pushed copper-in-concentrate production down 12% to 20,573 tonnes. Zinc output slipped 5% to 10,064 tonnes, with lead down 17% at 3,498 tonnes and nickel down 14% at 686 tonnes.
Revenue fell 3% to SEK 17.6 billion, reflecting the lower metal prices. Copper averaged $8,350 a tonne in the quarter, down 8% from a year ago and 5% below the prior quarter. Operating profit dropped 15% to SEK 2.8 billion from SEK 3.3 billion. The gross margin narrowed to 24% from 29%.
CEO Mikael Staffas said the company sees a "more normal" grade profile at Aitik for the second half, with mill throughput expected to stay near current levels. The Garpenberg mine, which supplies most of the zinc, posted steady grades.
Full-year production guidance remains unchanged at 83,000 tonnes of copper, 48,000 tonnes of zinc, and 12,000 tonnes of lead. Capital expenditure is on track to hit SEK 12.5 billion, with the bulk going toward the Aitik life-of-mine extension and a new tailings dam.
Boliden shares have fallen 11% this year, in line with the broader European mining sector, as copper prices slid on demand concerns from China. The company's all-in sustaining cost rose to $2.10 per pound of copper, up from $1.85 a year ago.
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