Swedish mining and metals group Boliden recorded a 67% increase in third-quarter operating profit to approximately €490 million, supported by stronger metal prices, improving production at several European mines and progress on major smelting investments. However, lower ore grades, rising operating costs and the gradual recovery of its Garpenberg mine continue to influence the group’s production outlook.
Revenue increased 39% to €2.75 billion, compared with approximately €1.99 billion in the corresponding period a year earlier. Operating profit excluding process inventory revaluation climbed 78% to approximately €443 million.
Free cash flow reached around €101 million, down from €207 million in the same period of 2025, reflecting substantial investment requirements across the company’s mining and processing operations.
The results highlight the benefits of higher international metal prices, while also exposing differences in operational performance across Boliden’s European asset portfolio. Production volumes, ore grades and capital requirements remain important factors determining the group’s long-term profitability. Boliden operates mines and smelting facilities across Sweden, Finland, Norway, Ireland and Portugal, producing copper, zinc, nickel, lead and precious metals for industrial customers.
Higher metal prices drive earnings growth despite production challenges
The improvement in Boliden’s quarterly profitability was primarily price-driven rather than the result of stronger production across all operations. Higher metal prices and commercial terms contributed approximately €294 million to the year-on-year improvement in operating profit excluding inventory revaluation. Lower production volumes reduced earnings by around €59 million, while increased costs had an additional negative impact of approximately €58 million.
The mining division generated approximately €356 million in operating profit, compared with €220 million a year earlier, benefiting from stronger copper, zinc, gold and silver prices.
Smelting operations also improved considerably, with operating profit excluding inventory revaluation reaching approximately €134 million, more than double the €62 million recorded in the previous year’s third quarter.
Production trends were mixed. Copper in concentrate increased 15% year on year to 31,979 tonnes, while zinc production declined 22% to 84,744 tonnes and nickel output fell 12% to 2,854 tonnes. Silver and gold production in concentrate also decreased compared with the corresponding period of 2025.
Nevertheless, all major metals recorded quarter-on-quarter production increases, indicating improving operating conditions across the portfolio, particularly following earlier disruptions at Garpenberg.
Garpenberg recovery remains critical for zinc and silver production
Boliden’s Garpenberg mine in Sweden continued its recovery following abnormal seismic activity that damaged underground infrastructure and significantly disrupted production.
The company reported that the production ramp-up was progressing according to plan, with ore throughput improving compared with the second quarter. Zinc and silver output in concentrate remained at approximately one-third of the levels recorded a year earlier.
The disruption has had a substantial impact on Boliden’s European production, underlining the vulnerability of deep underground mining operations to geological disturbances and damage to essential infrastructure.
The company expects Garpenberg to process approximately 1.5 million tonnes of ore in 2026, before increasing throughput to 2.3 million tonnes in 2027. Restoring production will be important for the group’s supply of zinc, silver and lead. Achieving the planned recovery will depend on rehabilitating mining infrastructure, securing access to unaffected ore zones and maintaining effective management of underground geological risks. For Boliden, the priority is not simply restarting individual mining areas but restoring consistent throughput and recoverable metal production while controlling costs and maintaining operational safety.
Aitik lowers copper-grade forecast as processing volumes increase
At Aitik, Boliden’s major open-pit copper operation in northern Sweden, the company revised its expected average copper grade for 2026 down to 0.16%, from the previous forecast of 0.18%. At the same time, its expected annual ore-processing volume increased to 42 million tonnes, compared with 41 million tonnes previously.
The adjustment reflects greater waste-rock dilution in mined material, reducing the average copper content entering the processing plant.
Higher processing volumes can partly offset declining ore grades, but treating larger quantities of lower-grade material can increase energy consumption, grinding requirements, equipment wear and operating costs. Aitik therefore faces the challenge of maintaining commercially attractive copper production through efficient ore selection, blending and processing. Despite the lower-grade outlook, total mine production remained substantial during the quarter, while copper output in concentrate exceeded the level recorded a year earlier.
Kevitsa and Somincor support European copper and nickel supply
Boliden’s Kevitsa mine in Finland achieved a new quarterly milling-volume record, reflecting improved operational performance. Copper and nickel production in concentrate increased compared with the previous quarter, although year-on-year output remained lower.
The operation is an important European source of metals used in electrification, industrial manufacturing and energy infrastructure. Its future development will also depend on investment economics and the impact of Finnish mining taxation.
In Portugal, Somincor, acquired by Boliden in 2025, delivered stronger copper production than in both the previous quarter and the corresponding period of the previous year.
The company reported a successful integration of the operation into its portfolio. Somincor’s performance reinforces Boliden’s position in the Iberian Pyrite Belt, an established European mining region with significant copper and polymetallic production.
Meanwhile, Tara mine in Ireland continued to face difficult ground conditions and more extensive refurbishment requirements than initially anticipated. These challenges contributed to production delays and lower zinc grades.
The contrasting performances across Kevitsa, Somincor and Tara demonstrate the importance of operational diversification in managing geological and production risks across a multinational mining portfolio.
Rönnskär and Odda smelter investments approach operational ramp-up
Boliden also reported progress on two major investments aimed at strengthening European metal-processing capacity.
At the Rönnskär copper smelter in Sweden, construction and commissioning of a new electrolytic tankhouse were approaching completion. The investment is intended to restore copper cathode production following the destruction of the previous tankhouse in a fire.
Once fully operational, the facility will support the production of high-purity copper for industrial customers and strengthen Sweden’s domestic refining capacity.
In Norway, the expanded Odda zinc smelter recorded significantly better availability of its new roaster towards the end of the quarter. Although commissioning had progressed more slowly than originally planned, improving equipment performance is supporting a gradual increase in utilisation.
Boliden’s Harjavalta operation in Finland also achieved a quarterly record for nickel-feed volumes, indicating stronger performance at another important European processing facility.
These projects demonstrate that expanding installed capacity is only one part of strengthening Europe’s metals industry. New equipment must achieve stable operation, consistent recoveries and manageable maintenance requirements before delivering the expected production and financial benefits.
Capital expenditure increases as Boliden prepares further expansion
Boliden maintained its 2026 capital expenditure forecast at approximately €1.40 billion, while increasing planned mine-sustaining investments to approximately €633 million, compared with €588 million previously.
The additional expenditure will support waste-rock mining, processing infrastructure and continued tailings-dam development. The company also increased its expected full-year earnings impact from planned smelter maintenance to approximately €45 million, reflecting higher shutdown-related costs.
The investment programme highlights the capital intensity of maintaining large mining and refining operations, particularly where production depends on complex underground infrastructure, processing facilities and environmental management systems.
Beyond its European operations, Boliden is preparing for a potential expansion in Latin America through an agreement to acquire 64.68% of Nexa Resources, which operates zinc and other base-metal assets in the region.
The transaction is expected to close in the first quarter of 2027, subject to shareholder and regulatory approvals, potentially increasing Boliden’s international exposure to zinc production. For its European operations, the immediate priorities remain restoring Garpenberg’s production, managing lower copper grades at Aitik and completing the operational ramp-up of investments at Rönnskär and Odda.
Boliden’s latest financial performance demonstrates the contribution of higher metal prices to mining profitability. Sustaining that improvement will depend on operational recovery, higher processing efficiency and the ability of its major smelter investments to deliver planned production without disproportionately increasing costs.
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