Going forward from a strong position
Overall, our performance during 2025 has been solid. We are proud of our stable operations and remain committed to delivering production in accordance with our communicated plans. We have also consolidated two additional mining units into the company, increasing zinc and copper concentrate production. Continued investment in our existing operations has further enhanced performance. Through our delegated business model, we have successfully addressed numerous challenges while creating value both through current metal production and through the responsible development of our operations.
Stability and safety
Within the mining and metals industry, Boliden has long been recognized for its strong safety performance and high productivity across both open-pit and underground mining operations, as well as smelter production. For the 18th consecutive year we did not have a fatality in our operations and our Lost Time Injury Frequency decreased to beat our target for the year. However, in our industry, certain circumstances beyond our direct control may arise from time to time. These can be associated with deep underground mining, operations in Arctic climates or logistical challenges inherent to such environments.
During 2025, we experienced two operational setbacks. The first occurred at Aitik, where, in connection with a new pushback, diorite intrusion and oxidation impacted production negatively. This was partly due to the previous need to prioritize dam reinforcements ahead of stripping, which during 2025 limited production flexibility in the mine. Secondly, the hot commissioning in Odda is taking slightly longer than expected. This is disappointing, but as I’ve stated before, you shouldn´t be in this business if you only expect tailwinds. I am confident that Odda will be one of the highlights for Boliden in 2026, raising the bar of sustainable zinc smelting in Europe. Securing the opportunity to use tailings as backfill at the Boliden Area—thereby extending the life of mine—stands out as one of the most underappreciated achievements of the year. In summary, I am satisfied with what we have accomplished and deeply proud of the strong culture across our twelve operating units, where accountability and resourcefulness guide how we operate.
Strong development of metal prices
Having both mining and smelting operations in the Group contributes to a more stable business cycle. In 2025, metal prices strengthened overall, with particularly strong performance in precious metals. In addition, benchmark treatment and refining charges for zinc and copper smelting remained relatively low, which also supported mining operations. Toward year-end, Boliden’s weighted index of prices and commercial terms reached an all-time high. These positive factors were partly offset by the appreciation of the Swedish krona against the US dollar, the currency in which metals are traded. It is also important to note that costs have increased in recent years, amid a period of elevated inflation. While metal prices are inherently cyclical and the outlook remains uncertain, the importance of base metals to the continued development of society cannot be overstated. In summary, I am confident that the long-term demand outlook remains positive and it is up to us to be competitive in the markets we are active within.
Industrial development in Europe
During 2025, it has become increasingly clear that Europe must take active measures to improve its competitiveness. This applies both to reducing administrative burdens and to improving the availability, predictability and timelines of processes such as permits and other regulatory approvals. In my view, it is evident that Europe has significant opportunities ahead, and a strong, highly competent industrial sector is one of its key assets. I therefore welcome the recent developments we have begun to see lately such as the Clean Industrial Deal. I must, however, emphasize that this is only the beginning. Much greater efforts are still needed to simplify doing business in Europe. When it comes to raw material supply, where Boliden has a position as a leading provider of base metals, Europe has clearly recognized that access to as well as domestic mining and production of critical and strategic metals is a prioritized area which hopefully will benefit Boliden going forward. I would not call it an industrial comeback just yet, but I am very optimistic about the position that Boliden has built, mainly within zinc and copper.
Growth of mining operations
The acquisitions of Somincor in Portugal and Zinkgruvan in Sweden were, of course, major milestones for the company. Both operations are located in familiar jurisdictions and fit into the Group in terms of scale and mining methods. Perhaps more importantly, we are highly experienced in the geology of these regions, and we are excited about the opportunity to further develop the operations, with a primary focus on extending mine life through increased near-mine exploration efforts. To finance the acquisitions, we chose a combination of loan financing, new share issue and a one-time exception to our dividend policy. We are confident that these operations will create long-term value for Boliden, and I am very proud of our organization for bringing this growth opportunity to completion.
Project development
During the year we have also made significant progress in our development projects. I have already mentioned the expansion of zinc smelting in Odda but also Rönnskär will begin a ramp-up during 2026 which will add significant value. Our sand recycling project, which is crucial to the Boliden Area, has started and we are moving forward according to plan. We have also received permit for increased production at Garpenberg where the opportunities seem almost endless from a geological point of view. In the long term, we have also received positive concession decisions regarding Nautanen, which is a high-grade underground deposit near Aitik, and of course Laver where we have plans for developing a new open-pit copper operation.
All in all, I am very proud of the efforts made in the long-term development of Boliden and would like to thank our employees and partners, whose outstanding efforts are the reason for this progress. Looking ahead, we are focused on driving higher productivity, fostering an even stronger safety culture, and upholding our long-term responsibilities. I’m looking forward to a new exciting year for us at Boliden.
Mikael Staffas
President and CEO
