Boliden falls as cost-push inflation hits profits, capex

Boliden AB

21/07/2022 08:51

** Shares in Boliden  BOL.ST  fall 3.3% as high cost
inflation hits the Swedish mine and smelter operator's Q2 profit
    ** Boliden reports Q2 operating profit of SEK 4,078 million
($399.15 million), almost 10% below Refinitiv estimates
    ** Citi says the cost inflation in the quarter came ahead of
its expectations, saying that the increase of group operating
costs to SEK 4.9 billion was 6% above its estimate
    ** The cost inflation also affected the investment cost of
expansion of the Odda smelter - capex estimate was raised to EUR
850 million ($867.43 million) from EUR 700 million
    ** While the company has maintained its FY capex guidance
(SEK 11 billion), it has also flagged that difficulty in
execution of certain investment projects might lie ahead, as
some projects are affected by longer lead times and delays
    

    
($1 = 10.2168 Swedish crowns)
($1 = 0.9799 euros)

 (Reporting by Agata Rybska)
 ((agata.rybska@thomsonreuters.com))