Boliden sets extra dividend as metal price rise buoys profits

Swedish mining and smelting group Boliden unveiled an extra payout to shareholders on Friday as higher metal prices and record milled volumes at some of its main mines lifted earnings.

The company said in a statement it was proposing an extra payment to shareholders of 15.50 Swedish crowns ($1.66) per share, in addition to an ordinary dividend of 10.50 crowns per share, a sharp rise on last year.

The payout compared to a year ago extra payment of 6.00 crowns per share and ordinary dividend of 8.25 crowns per share.

Operating profit in the fourth quarter rose to 3.214 billion Swedish crowns ($345 million) from a year-ago 3.077 billion on the back of positive revaluation of process inventories against the backdrop of stronger metal prices.

Boliden, which produces base metals such as copper, nickel and zinc, contended with increased maintenance and production disruptions at Harjavalta plant in Finland in the quarter.

“Despite certain incidents, it was a strong quarter. Naturally, the development of metal prices made a positive contribution, but we also had higher milled volumes in our mines, where both Aitik and Kevitsa reached new production records,” CEO Mikael Staffas said.

($1 = 9.3398 Swedish crowns)

(By Niklas Pollard; Editing by Simon Johnson)