Operating profit fell to 1.91 billion crowns from 3.55 billion, the Swedish copper and zinc producer said, missing the 2.03 billion expected by analysts in an LSEG poll.

“The price for all Boliden’s main metals fell, except for lead. Weak economic activity, notably in Europe and China, impacted demand for metals,” Boliden said in a statement.

Shares in the group, which also produces nickel, lead, gold and silver, were down 7% in mid-morning trade, taking a year-to-date fall to 29%.

“The company has been facing a series of operational issues in their mining division, had a fire at its Ronnskar smelter which destroyed the tank house and has faced substantial cost inflation,” RBC analyst Tyler Broda said.

A fire in June forced Boliden to halt production at the Ronnskar copper smelter in Sweden, its biggest production unit. Production has partly resumed but with lower profitability.

Boliden repeated that it expects to make investments of just under 15 billion crowns in 2023 and said it sees capital expenditure next year at around 14 billion.

Costs for building a new tank house at Ronnskar are not included in the 2023 guidance, chief financial officer Hakan Gabrielsson told analysts and media in a call. The bulk of that cost would come in 2025, he said.

http://www.miningnewspro.com/en/News/627555/Boliden’s profit falls as lower prices