Boliden Warns of USD 47.5 Million Hit to Q1 Profits if Finnish Strike Persists

Boliden, the mining company, has released a statement indicating a significant financial impact if the ongoing strike in Finland extends through March 31. The anticipated negative effect on the company's operating profit for the first quarter is estimated at SEK 500 million (USD 47.5 million).

This estimated impact comprises SEK 200 million (USD 19 million) from reduced production and SEK 300 million (USD 28.5 million) from delayed deliveries to customers. Boliden notes that the impact from delayed deliveries is expected to be temporary, with recovery projected for the second quarter.

Initially, on March 11, Boliden had forecasted a negative impact on its first-quarter operating profit of about SEK 300 million (USD 28.5 million) due to the strike, attributing SEK 100 million (USD 9.5 million) to decreased production and SEK 200 million (USD 19 million) to customer delivery delays.

Furthermore, the strike is now expected to affect the company's cash flow for the first quarter negatively, with an estimated impact of around SEK 1 billion (USD 95 million), up from the previously projected SEK 500 million (USD 47.5 million) due to the strike's extension.

Boliden also anticipates a certain level of production impact extending into the second quarter, based on current assessments of the situation.