Boliden expects earnings hit from seismic activity at key zinc mine
Boliden said on Wednesday it expects earnings before interest, taxes, depreciation, and amortization for the first quarter of 2026 to be hit by about 400 million Swedish crowns ($42.77 million) after production was impacted at its Garpenberg mine due to abnormally high seismic activity earlier this month.
The Swedish miner said its first-quarter throughput was just under 0.8 million tons, down from an earlier expectation of slightly over 0.9 million tons. Production in the most affected part of the mine is not expected to resume in 2026, the company added.
Until further notice, Garpenberg’s production is estimated to be around 30% of the earlier guided capacity of 3.7 million tons per year, the company said.
The copper and zinc miner said a large part of the mine infrastructure, including crushers, hoist systems, and workshops were largely unaffected by the seismic activity.
However, a significant amount of ventilation, pressure air systems, and electrical infrastructure have been damaged and need to be renovated, which is estimated to take a few more weeks, the company said.
The company, which operates seven mines and five smelters in the Nordic region, Ireland and Portugal said seismic activity in Garpenberg has now decreased and mining production at low levels will begin in the second quarter.
Boliden, last month, reported fourth quarter adjusted earnings below analysts’ expectations, but proposed a higher than expected dividend for 2025.
The company’s recent performance has been boosted by firmer gold prices, which have lifted realized revenue from precious metals collected as a by-product from its mining and smelting flows. It also benefits from higher zinc prices.
($1 = 9.3518 Swedish crowns)
(By Akanksha Khushi; Editing by Shailesh Kuber)
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