LKAB’s results for the first quarter of 2024 are gloomy reading. Operating profit decreased by as much as SEK 3.8 billion and the company is now forced to report a negative operating cash flow of SEK 1.5 billion.
The background is the two derailments on the Malmbanan in December and February respectively, which caused a total of 76 days of stoppage in all traffic towards the port of Narvik. LKAB has previously stated that the stop means lost revenue of SEK 100 million a day.
The problems are now considered be so serious that it may mean a temporary closure of the business, LKAB writes in the report:
“Due to the limited capacity on the Malmbanan, LKAB has announced that production will be reduced by approximately one million tonnes on an annual basis. If sufficient delivery capacity cannot be ensured in the future, however, there is a risk that the business may be further affected in the form of pellet plants with associated enrichment plants and mining production being forced to close,” writes the company.
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Tags: Strongly deteriorated result LKAB
