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Investing.com -- Boliden AB stock rose 3% after the Swedish mining and smelting company reported third-quarter earnings that significantly exceeded analyst expectations, driven by strong performance in its mining division.
The company posted an adjusted EBIT of SEK2,752 million for the third quarter, surpassing the Infront consensus estimate of SEK2,481 million by 11%. This translated to earnings per share of SEK8.07, beating consensus expectations of SEK6.10 by 32%.
The earnings beat was primarily attributed to Boliden’s Mines division, which delivered an adjusted EBIT of SEK2,429 million, well above the consensus estimate of SEK1,753 million. This strong performance more than compensated for weaker-than-expected results in the company’s smelting operations, which fell short of the SEK858 million consensus.
Boliden maintained most of its outlook unchanged, with the exception of its Tara mine, where production forecasts were revised down to 1.6 million tonnes from the previous 1.8 million tonnes, a change that analysts note was already anticipated by the market.
"We expect a positive reaction, although the prospects of increased taxation in Finnish mines could partly overshadow the outlook," analysts at Kepler commented on the results.
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