By Izabela Niemiec and Agnieszka Olenska Feb 3 (Reuters) - Boliden proposed a higher than expected dividend for 2025, pushing its shares 4% higher on Tuesday, even as the Swedish copper and zinc
Boliden's Dividend Proposal Boosts Shares Despite Earnings Miss
Boliden's Financial Performance and Future Outlook
By Izabela Niemiec and Agnieszka Olenska
Earnings Overview
Feb 3 (Reuters) - Boliden proposed a higher than expected dividend for 2025, pushing its shares 4% higher on Tuesday, even as the Swedish copper and zinc miner's fourth-quarter earnings rose less than analysts were expecting.
Dividend Announcement
The company, which operates seven mines and five smelters in the Nordic region, Ireland and Portugal, proposed an annual dividend of 11 Swedish crowns per share, beating an LSEG estimate of 9.6 crowns.
Challenges Faced
Last year, it had cancelled the ordinary dividend to strengthen its financing capacity, and instead reduced the value of the share issue it carried out later in the year to pay for a purchase of two mines.
CEO's Insights
Boliden's recent performance has been boosted by firmer gold prices, which have lifted realised revenue from precious metals collected as a by-product from its mining and smelting flows. It also benefits from higher zinc prices.
Its quarterly operating profit excluding revaluation of process inventory rose 6.5% to 4.06 billion crowns ($454.4 million), driven by strong metal prices, but missed analysts' consensus of 4.13 billion crowns provided by the company.
Boliden said intensive rains in Portugal in January had caused water management issues in its Somincor mine, which was part of last year's acquisition. While it kept 2026 guidance unchanged for the mine, the total effect on first-quarter results would depend on the weather going forward, it said.
Talking to Reuters after the results, CEO Mikael Staffas ruled out additional cash distributions this year, given Boliden's leverage ratio, including net reclamation debt, was well above the target of 20% stated in its dividend policy.
"We have a very clear policy that in order for us to think about an extra dividend, the balance should be strong," he said.
Boliden reiterated its investment plans for 2026.
($1 = 8.9357 Swedish crowns)
(Reporting by Agnieszka Olenska and Izabela Niemiec in Gdansk, editing by Milla Nissi-Prussak)
