Interim Report January–March 2025: Stable production and increased earnings in the first quarter
LKAB begins 2025 with operating profit for the first quarter of SEK 3.6 billion, an increase of around SEK 2.3 billion compared with the same period last year. This despite global turbulence and lower iron ore prices. The improved result is mainly explained by a significantly higher delivery volume combined with stable production. The deliveries during the first quarter last year were affected by the derailments on the Iron Ore Line.
Net sales for the first quarter 2025 amounted to MSEK 9,622 (5,471). The increase compared with the same period last year is mainly explained by the derailments on the Iron Ore Line in the beginning of 2024, which had an extensive impact on the delivery volumes. During the first quarter of the year production was stable and deliveries functioned well, contributing to increased sales and profit. Operating profit amounted to MSEK 3,638 (1,370).
The average global spot price for iron ore products in the quarter was USD 104 (124) per tonne, which was flat compared with the fourth quarter of 2024. Quoted pellet premiums for the quarter were around USD 5 per tonne lower than in the same period last year.
The extensive efforts implemented to create stability in the production – focusing on flow optimisation and extensive maintenance work to achieve plant stability – have generated clear results. Production is now stable, and deliveries are proceeding according to plan, even though transportation capacity of crushed ore remains a limiting factor.
“We are affected by a world that is difficult to assess, marked by significant uncertainty in trade flows and security policy tensions, which have temporarily overshadowed the focus on the climate. However, the things that we can actually impact – our production, costs and plant stability – are managed well and with quality. This is continuous work without shortcuts, and now we can clearly see our efforts having an effect,” says Jan Moström, President and CEO of LKAB.
In this turbulent time, where focus is shifting from the climate onto trade and geopolitics, it is more important than ever to stand firm and maintain our direction. A positive factor is that during the quarter the European Commission designated three of our projects as having Strategic Project status, through the Critical Raw Materials Act (CRMA). LKAB has a clear strategy to continue our investments, under the right conditions – with the aim of securing competitiveness for the next five, 10 and 20 years through carbon-free processes and products, as well as increased production volumes.
“It’s about adapting and modernising our production. This is crucial for our future competitiveness – and for our contribution to a sustainable value chain. During the quarter we also reported increased mineral reserves and mineral resources, especially in Kiruna, which is a display of strength for our operations and for the long-term development of the area,” concludes Jan Moström.
For further information, please contact:
Mikko Viitala, Acting Group Media Relations Manager LKAB,
tel: +46 70 309 8163, email: mikko.viitala@lkab.com
Media hotline: +46 771 76 00 10, press@lkab.com
LKAB is an international mining and minerals group that offers sustainable iron ore, minerals and special products. We are committed to developing carbon-free processes and products by 2045, leading the transformation of the iron and steel industry. Since 1890 we have developed through unique innovations and technological solutions and are driven forward by almost 5,200 employees in 12 countries. In 2024, the LKAB group had sales of about SEK 33 billion. lkab.com
We are affected by a world that is difficult to assess, marked by significant uncertainty in trade flows and security policy tensions, which have temporarily overshadowed the focus on the climate. However, the things that we can actually impact – our production, costs and plant stability – are managed well and with quality. This is continuous work without shortcuts, and now we can clearly see our efforts having an effect.
