Danske predicts improved copper grades at Boliden's Aitik after six years of declining grades
Danske Bank believes that the guidance may indicate that the six-year headwind regarding copper grades at the Aitik open pit mine is coming to an end.
Aitik's grades have fallen from 0.29 percent copper per ton in 2018 to 0.17 percent in the last quarter. This corresponds to around 45,000 tons of copper, which at today's metal prices corresponds to a negative impact on earnings of SEK 4.5 billion. Danskes' assessment is that the grade for 2018
"We expect a grade of 0.18% in 2025 compared to the reserve grade of 0.23%, which should be the start of at least six years of an improved grade cycle," Danske writes in a preview.
Danske predicts that Boliden will make an adjusted operating profit of SEK 2,811 million in Q3, which is about 10 percent higher than market consensus.
The target price is raised to SEK 450, from SEK 440. The Buy recommendation is reiterated.
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