* Q2 operating profit 654 million crowns vs forecast 684 million
* Cash flow sharply higher in Q2 vs Q1
* Shares rise 9.8 percent
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STOCKHOLM, July 20 (Reuters) - Swedish copper and zinc miner and smelter Boliden on Monday posted a lower-than-expected operating profit for the second quarter but its shares rose on the back of improving cash flow at the group.
Boliden shares were up 9.4 percent by 1055 GMT, outperforming a 0.6 percent rise in the broader Swedish market. The stock has risen more than 290 percent since the beginning of the year.
"The fact that there were no nasty surprises could explain that the stock is up 10 percent. I would think that the cash flow is one reason. And if you look at the underlying result, it is in fact not that far from expectations," said an analyst who declined to be named.
Boliden said its free cash flow in the period was negative to the tune of 97 million crowns compared with a positive 290 million a year earlier. In the first quarter, cash flow was negative 1.81 billion crowns.
Operating profit rose to 654 million Swedish crowns ($83.95 million) compared with 406 million crowns in the same period a year ago and 684 million profit mean estimate in a Reuters poll of 10 analysts.
The firm said its operating profit got a 177 million crown boost by a revaluation of smelter process stocks.
The company, which also produces lead, gold and silver, said sales in the quarter fell to 6.44 billion crowns from a year-ago 7.89 billion, topping the mean forecast of sales of 5.46 billion crowns from the Reuters poll. ($1=7.790 Swedish Crown) (Reporting by Veronica Ek and Karen Foster)