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Boliden's Q1'16 net profit slides to 656M kronor on low metal prices

BolidenAB booked a net profit of 656 million Swedish kronor, or 2.40kronor per share, in the first quarter, down from the 896 million kronor, or3.27 kronor per share, in the year-ago period.

Revenues for the first quarter fell to 8.85 billion kronorfrom 10.41 billionkronor, due to lower metal prices, the company said in a May 3interim report.

Operating profit slid to 888 million kronor from 1.21 billionkronor.

Boliden Mines' operating profit shrank to 242 million kronorfrom 482 million kronor. "Production of metals in concentrate increased,but was unable to compensate in full for lower metal prices," the companysaid.

On the production side, nearly all production of BolidenMines' commodities improved year over year.

Zinc output went up to 80,850 tonnes from 72,963 tonnes.Copper and lead registered upticks of 6% and 3%, respectively, to 20,884 tonnesand 15,811 tonnes. Gold production increased by 13% to 1,395 kilograms whilesilver rose 8% to 103,310 kilograms.

Tellurium posted the lone decrease, to 10,131 kilograms from10,249 kilograms.

Meanwhile, the market for Boliden Smelters worsened comparedwith the previous year. This is reflected in the operating profit, whichslipped slightly to 774 million kronor from 783 million kronor.

Production from Boliden Smelters was a mixed bag.

Zinc and lead alloys improved 2% year over year to 117,600tonnes and 12,342 tonnes, respectively. So did sulfuric acid and aluminumfluoride, going up 1% and 15%, respectively, to 431,814 tonnes and 8,969 tonnes.

Nickel in matte production was 8,793 tonnes.

Copper and lead output slipped 1% and 3%, respectively, to85,286 tonnes and 7,060 tonnes. Gold and silver production dropped 9% and 16%,respectively, to 4,500 kilograms and 158,711 kilograms.

Net debt as of the end of the quarter was 5.64 billionkronor, improving from 8.15 billion kronor the year before.

Boliden said that maintenance shutdowns at its smelters willimpact the year's operating profit by 215 million kronor, including 165 millionkronor in the second quarter and 50 million kronor in the third quarter.

As of May 2, US$1 wasequivalent to 7.98 Swedish kronor.