Swedish miner Boliden reported a weaker-than-expected quarterly adjusted operating profit, sending its shares 3% lower on Tuesday, hit by higher costs, disruption at its Garpenberg mine (Sweden) and a delay in ramp-up of the Odda smelter (Norway).

Operating profit excluding the revaluation of process inventory more than doubled to 2.87-billion Swedish crowns ($296.8-million) in the second quarter, but fell short of the 3.26-billion crowns expected by analysts in a company-provided consensus. It was also down from 4.43-billion crowns in the first quarter.

The earnings were supported by higher metal prices and strong performances from the Somincor (Portugal) and Zinkgruvan (Sweden) mines, Boliden said. Average copper and zinc prices rose 4% and 7%, respectively, from the previous quarter.

However, those gains were offset by sharply lower production at Garpenberg following abnormal seismic activity and a rockfall in March, which halted operations until the end of April.

Production has since restarted in unaffected areas and the damaged ore hoist has been fully repaired, Boliden said.

Meanwhile, the Middle East crisis lifted energy prices, reinforcing higher-for-longer rate expectations and clouding the macroeconomic outlook, it added.

Boliden maintained its guidance for Garpenberg, expecting 1.5-million tons of milled ore in 2026 and 2.3-million tons in 2027. JPMorgan analysts noted there was no material new info on the situation.

Boliden also said the ramp-up of its Odda zinc smelter expansion was progressing more slowly than expected because of problems with a new roaster.

Planned maintenance at its smelters reduced quarterly operating profit by 350-million crowns, and the company cut its full-year milled-volume forecast for the Tara mine by 200 000 tons to 1.6-million tons, citing weaker-than-expected development work.

It recorded a free cash outflow of 2.11-billion crowns in the quarter, mainly because inventories built up during maintenance shutdowns and the slow Odda ramp-up. Net debt rose to 19.15-billion crowns, compared with 14.34-billion crowns at the end of March.

Despite this, Boliden reiterated its 2026 capital spending forecast of 15.5-billion crowns.