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RECORD PROFIT FOR THE FIRST QUARTER LKAB delivers record high operating profit for the first quarter with consistently high production in a continued favourable market . This positive development creates good conditions for the company's transformational journey to a carbon free operation . Net sales for the quarter increased by 52 percent and amounted to MSEK 12,256 ( 8,044 ) . Operating profit increased by 124 percent to a total of MSEK 7,153 ( 3,191 ) , a historically high level for LKAB . INTERIM REPORT Q1 / 2021 OPERATIONS - FIRST QUARTER MSEK Net sales Operating profit / loss Net financial income / expense Profit / loss before tax Profit / loss for the period Costs for urban transformation provisions Operating cash flow Investments in fixed assets Depreciation Deliveries of iron ore products , Mt Proportion of pellets , % Production of iron ore products , Mt Return on equity , % Net debt / equity ratio , % ● ● ● Note 3,4 9 9 1 Platts IODEX 62 % Fe CFR North China Q1 2021 12,256 7,153 386 7,539 5,978 LKAB INTERIM REPORT Q1 / 2021 -64 3,812 542 -747 6.9 88 7.4 27.1 -10.8 Q1 2020 8,044 3,191 -780 2,411 1,879 -74 1,792 619 -737 7.3 89 7.4 22.2 -0.1 Full year 2020 33,914 11,654 797 12,452 9,757 The production volume for the first quarter continued at a high level and totalled 7.4 ( 7.4 ) Mt. • Delivery volumes were according to plan , but somewhat lower than in the same period last year and totalled 6.9 ( 7.3 ) Mt , with pellets accounting for 88 ( 89 ) percent . -1,396 6,038 2,763 -3,136 28.5 84 27.1 20.8 -3.0 At MSEK 7,153 ( 3,191 ) , operating profit for the first quarter was the highest ever for a single quarter . Higher prices for highly upgraded iron ore products were offset somewhat by a lower dollar exchange rate and higher costs . The cost increases relate mainly to higher energy prices , increased rock reinforcement , crushed ore handling associated with the seismic event in Kiruna and continued investments in exploration and development programmes . The average global spot price¹ for iron ore products in the first quarter was USD 167 ( 89 ) per tonne , which was USD 33 higher than in the fourth quarter 2020. The price at the end of the quarter was USD 167 per tonne . Iron ore prices above USD 150 per tonne have not occurred since the record years 2010-2013 . Quoted pellet premiums were also higher during the first quarter year - on - year . Operating cash flow for the first quarter was MSEK 3,812 ( 1,792 ) . The return on equity was 27.1 ( 22.2 ) percent . The net debt / equity ratio was -10.8 ( -0.1 ) percent . LKAB Consistently high - production is crucial for a competitive LKAB that is carbon - free in the long term . In a favourable market , profitability is boosted further , as are the conditions for the massive investments ahead of us . 7.4 Mt Produced during the quarter 6.9 Mt Delivered during the quarter 88 % Percentage of pellets for the quarter LKAB IN BRIEF | 1