Record and billion profit for LKAB during the third quarter

The state-owned mining company LKAB reports a strong third quarter with a new record in terms of deliveries.

At the same time, net sales increased by 20 percent to just over SEK 9.3 billion and profit before tax was written to SEK 3.5 billion, compared with just over SEK 3.2 billion in the same period last year.

- The effect on operating profit is, however, offset by a lower dollar exchange rate and a lower price for highly processed iron ore products as well as higher costs, the company writes in the interim report published this morning.

Raw material affected

Development seismic event Kiruna mine

In May, a seismic event occurred in the Kiruna mine, which caused the production of raw material to be 70–80 percent of capacity.

The forecast for when production is up at full speed again is difficult to assess as parts of the inspection work and repair work remain.

To compensate for the loss of volume, LKAB has redirected raw material from other mines and minimized the impact on delivery volumes.

It is these measures that have led to increased costs.