Year-end Report 2024: All production plants in operation again after a challenging year
LKAB is ending 2024 with high deliveries and with all plants up and running again at the end of the quarter following extensive maintenance measures. Operating profit for the full year, which amounted to SEK 9 billion, was negatively impacted by lower iron ore prices, lower production and the long stoppage on the Iron Ore Line at the beginning of the year.
Net sales for the full year amounted to MSEK 33,146 (42,923). The lower sales figure is mainly due to lower iron ore prices and lower deliveries as a result of the stoppage on the Iron Ore Line at the start of the year. Operating profit for the year amounted to MSEK 8,722 (16,230).
The Board of Directors is proposing to the Annual General Meeting that an ordinary dividend of MSEK 4,400 (7,600) is paid, which is 50 percent of profit for the year.
For the fourth quarter, net sales totalled MSEK 9,451 (10,798). The decrease is mainly due to lower iron ore prices. Operating profit for the quarter was MSEK 2,619 (3,800).
Production for the quarter amounted to 5.7 (7.0) Mt and for the full year to 22.7 (26.2) Mt. The decrease is mainly a result of lengthy production shutdowns to remedy deficiencies in several plants, but production was also deliberately cut back to deal with the challenging delivery conditions on the Iron Ore Line. Delivery volumes for the quarter increased to 6.7 (6.5) Mt and were the highest for the year. For the full year, however, deliveries decreased to 21.9 (25.3) Mt, mainly as a result of the stoppage on the Iron Ore Line at the beginning of the year.
The global spot price for iron ore products fell during the year. The average price for full-year 2024 was USD 110 (120) per tonne. For the quarter the average price was USD 103 (129) per tonne and at the end of the quarter, and thus the year, the price was USD 100 per tonne.
“After this year’s setbacks with the derailments on the Iron Ore Line, falling iron ore prices and major production problems, it feels good to end the year with the highest delivery volume for the year and with all production plants up and running again. We have now implemented extensive actions to significantly improve production stability going forward.
Through intensive efforts and good cooperation with the Swedish Transport Administration we also managed to increase our deliveries towards the end of the year. We are still not seeing freight capacity reaching the level it needs to be at to enable full-scale production, but with the commitment that exists from the Swedish Transport Administration and others in the region I am more hopeful today that we will be able to find ways forward to avoid shutting down more production”, says Jan Moström, President and CEO LKAB.
“The year has been trying in many ways, not least with the critical role that the Iron Ore Line plays in society having become clear. Now I look forward with confidence to 2025, where we are continuing to focus on our intensified efforts to strengthen the safety culture throughout the organisation and achieve stable deliveries to our customers,” concludes Jan Moström.
Construction starts on demonstration plant in Luleå
On 24 October the Board of Directors made an investment decision to establish a research and development centre and a demonstration plant for the processing of phosphorus and rare earth elements in Luleå. The decision marks an important step in LKAB’s ongoing transformation and initiative for the extraction of critical minerals. In December an application was submitted to the Land and Environment Court concerning an environmental permit to conduct large-scale industrial operations as well as port operations in Luleå.
January 2025 saw construction begin on the demonstration plant that will verify the technologies required for the extraction of critical minerals. This is an important part of the work to develop the full-scale industrial park that could significantly increase Europe’s self-sufficiency in these minerals.
Contact: Niklas Johansson, Senior Vice President Public Affairs and External Relations LKAB. Tel: +46 (0)10-144 52 19. E-mail: niklas1.johansson@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 2023, the LKAB group had sales of about SEK 43 billion. nlkab.com
