Swedish mining group Boliden has reported first-quarter adjusted earnings well above analyst expectations despite a production halt and significant damage at its Garpenberg zinc mine caused by abnormal seismic activity in March — though the incident has left a lasting mark on the mine’s output capacity that will extend into 2027.
The company’s quarterly operating profit, excluding a revaluation of process inventory, rose to 4.4 billion Swedish crowns ($475.7 million) from 2.6 billion crowns in the same period last year, beating an analyst consensus of 4.06 billion crowns. The strong result was supported in part by record high gold prices, which at times exceeded $5,000 per ounce during the January to March period, boosting by-product precious metals revenue from Boliden’s mining and smelting operations.
Garpenberg, one of Boliden’s largest and most strategically important mines and a key source of zinc and silver concentrates, suffered a production halt following the seismic event. The company confirmed that production will resume in the second quarter but at a low pace, with milled volume guidance for the mine reduced to 1.5 million tonnes and zinc grade revised down to 2.7%. Silver grade guidance was nudged up to 100 grams per tonne from 95 grams per tonne. Looking further ahead, 2027 milled volume is now estimated at 2.3 million tonnes — below previous capacity levels.
Despite the setback, Boliden said its plan to invest in a new hoist at Garpenberg remains in place, with an ambition to reach production of 4.5 million tonnes by 2032, though the company cautioned that this guidance remains preliminary given significant uncertainties. Overall investment plans for 2026 were reiterated without change.
