Swedish miner Boliden AB reported a sharp drop in second-quarter operating profit, weighed down by costs from a major acquisition and challenging market conditions.
Operating profit for the period fell to 1.09 billion Swedish kronor from 4.81 billion kronor a year earlier, the company said Friday.
Revenues were slightly lower at 22.29 billion kronor, compared with 22.75 billion kronor in the same period last year.
The company's results were impacted by the acquisition of the Somincor and Zinkgruvan mines, which were consolidated from April 16.
Free cash flow was negative 12.35 billion kronor, which included a 14.39 billion kronor payment for the acquisitions.
Excluding the acquisition, free cash flow was a positive 2.04 billion kronor, according to the company.
Boliden also cited a weaker U.S. dollar, lower treatment charges, and extensive planned maintenance as negative factors during the quarter.
“Our underlying cash flow is strong and our production all-in-all is stable, despite challenging market conditions and extensive planned maintenance during the quarter,” President and CEO Mikael Staffas said in a statement.
Despite the significant purchase, the company said its net debt-to-equity ratio remained low at 29%.
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