Boliden AB Q2 2019 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Krishan M. Agarwal - Citigroup Inc, Research Division - Analyst : My question is on basically on the smelting cost. The number you have given in the report is implying a close to 15% year-on-year increase in the second quarter '19. And if I were to look at the first half '19 number, the year-on-year increase is running from somewhere between 10%. So can you comment -- as you noted, it's driving this significant increase versus the last year and then if second quarter run rate is a better reflection for the third quarter and the fourth quarter and should we assume that kind of increase to sustain for the rest of the year. Second question on -- I mean the -- Mikael has touched upon a little bit on that, on copper TCs, that you have 12 months benchmark contract settlement. But then there has been a recent talk about one of the competitors settling a lower TC settlement with a Chinese smelter, so I mean that's sort of a 20% decline versus the -- versus 2019 benchmark. Is that something we should factor in for the next year estimates? Or what's your thoughts around that?

Question: Gustaf Schwerin - Pareto Securities, Research Division - Analyst : Three quick questions from my side. Firstly, on the throughput in Garpenberg for Q2. Now with the first 2 quarters of the year, I think the run rate is just over 2.8. I mean is this a reasonable number for the year? Is the throughput actually according to plan? Or are we ahead of schedule in the ramp-up? Secondly, if you can give any more guidance on the sort of average grade levels in Tara for Q3. And then lastly, how you see cost inflation for consumables now in the coming quarters.