International news within the industry of mining and metal, Mar, 24 2019
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Lower profit for Swedish state-owned LKAB

Facility for water-powered and drilling scaled up iron ore production in LKAB mine. Photo: LKAB
Facility for water-powered and drilling scaled up iron ore production in LKAB mine. Photo: LKAB
Published by
Markku Björkman - 15 Feb 2019

The state-owned mining company LKAB reports a profit before tax for the fourth quarter of 2018 of Swedish crowns, SEK 1110 million. This can be compared to the profit of 1371 million in the corresponding period of 2017.

However, higher prices for highly processed iron ore products and a stronger dollar meant that the company's turnover and operating profit increased during the quarter, according to LKAB.

Operating profit increased by 44 per cent, compared with the corresponding period in 2017.

Sales rose from SEK 6,208 million to SEK 6,911 million in the fourth quarter.

The Board of Directors proposes an ordinary dividend of SEK 3,164 million.

LKAB estimates that the oversupply of fine-grained iron ore remains high, which pushes prices down. At the same time, the premium in highly processed iron ore products is expected to remain high, according to the report.

The company will intensify its exploration work to secure the supply of ore after 2030.