Preliminary results show €65million Tara losses

As preliminary results for 2023 indicate Tara Mines made a loss before tax of €65million, Boliden Group CEO Mikael Staffas has warned the future of the operation will be dependent on its ability to make a profit.

Speaking to analysts on a webcast today, he said losses at Tara would have been significantly greater had the mine not been placed into care and maintenance.

The Boliden Group has published its full year results for 2023 this morning. Preliminary results for 2023 indicate that the Tara Mines entity made a loss before tax of €65m

In the webcast, Mr Staffas addresses the ongoing negotiations around re-opening Tara, and remarks its future will be dependent on its ability to make a profit

The costs of care and maintenance continues to run at €13million per quarter. These costs are being met by the Boliden Group.

The care and maintenance costs for quarter one will now be covered by €15million of proceeds from a business interruption insurance claim. This claim has recently been settled and relates to the 2021 Tara Deep flooding.

Discussions with the Group of Unions over the rescue plan proposals, which involve redundancies and lower production targets, remain ongoing.

General Manager Gunnar Nyström said; “Preliminary results for 2023 indicate that the Tara Mines entity incurred losses of €65million in 2023. This would have been substantially higher had we not temporarily suspended operations and entered care and maintenance in July 2023. External market conditions remain extremely challenging, and the current price of zinc is of major concern. This demonstrates the importance of reaching an agreement with the Group of Unions on the rescue plan proposals to enable the operation to re-open on a sustainable basis, with better protection against external market conditions. We remain in discussions with the Group of Unions and continue to work towards achieving an agreement.”