Boliden Ab · OMXSTO:BOL
Boliden Ab — Q4 2023 Earnings Presentation
34 slides from Boliden Ab's earnings presentation, Feb 8, 2024
Slide 1: Boliden – Metals for generations to come
Boliden – Metals for generations to come Q4 Interim & Year-End Report 2023 Mikael Staffas, President and CEO Håkan Gabrielsson, CFO 2024-02-08 Q4 2023 Q4 INTERIM & YEAR-END REPORT 2023 1
Slide 2: Boliden 1924-2024
iBOLIDEN Ot) BOLIDEN 1924-2024
Slide 3: Q4 2023 – Good cash flow despite intensive investment period
Q4 2023 – Good cash flow despite intensive investment period KEY HIGHLIGHTS PROJECTS ▪ Weaker prices and terms ▪ Odda, Kristineberg and Aitik dam ▪ Lower volumes in Rönnskär as a projects are progressing well result of the June fire ▪ No production in Tara due to care and maintenance ▪ Stable produc
Slide 4: Q4 2023 EBIT development
Q4 2023 EBIT* development Group EBIT excl. PIR MSEK Rolling, MSEK ▪ Group 2,017 (3,190) MSEK 5,000 20,000 4,500 18,000 4,000 16,000 ▪ Mines 985 (1,512) MSEK 3,500 14,000 3,000 12,000 2,500 10,000 ▪ Smelters 985 (1,570) MSEK 2,000 8,000 1,500 6,000 1,000 4,000 500 2,000 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 5: ESG is key in our purpose, vision and values
ESG is key in our purpose, vision and values CO2e emissions Ktonnes 300 Q4 2023 250 ▪ Lost Time Injury* 5.1 (3.7) 200 ▪ Sick leave 6.6 (6.2) 150 100 ▪ CO2e emissions** 252 (241) Ktonnes 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 2023 *Per million hours worke
Slide 6: Market developments
Boliden price index* Market developments 225 200 175 ▪ Lower Ni and Zn prices relative to Q4 150 2022 125 100 75 ▪ Weakening spot metal premiums, TCs 50 25 and sulphuric acid prices 0 ▪ Slightly weaker currencies sequentially 225 200 175 150 125 100 75 50 25 0 *Index 100 = 1 January 2018 Q4 INTERIM
Slide 7: Copper, zinc and nickel prices relative to cash cost
Copper, zinc and nickel prices relative to cash cost Copper Zinc Nickel USD/tonne USD/tonne USD/tonne 12,000 5,000 35,000 4,500 10,000 30,000 4,000 3,500 25,000 8,000 3,000 20,000 6,000 2,500 2,000 15,000 4,000 1,500 10,000 1,000 2,000 5,000 500 0 0 0 Source: Wood Mackenzie 2023 Composite C1 cash co
Slide 8: Mines – Q4 2023 production
Metal content, Ktonnes Copper Mines – Q4 2023 production 40 30 Aitik 20 ▪ Milled volume 9.4 (10.5) Mtonnes 10 ▪ Unplanned maintenance in one out of two primary mills 0 ▪ Adverse weather affecting ventilation in open pit Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 ▪ Cu grade 0.17 (0.17) % 2019 2020 2021
Slide 9: Smelters – Q4 2023 production
Metal production, Ktonnes Smelters – Q4 2023 production Copper 120 Harjavalta 100 80 ▪ Strong Ni production 60 ▪ Increased utilization rate in the tank house (anodes from 40 20 Rönnskär) 0 ▪ Weak Ag production but intermediates transferred to Rönnskär Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 2019 20
Slide 10: Group – Full Year 2023
Group – Full Year 2023 EBIT excl. PIR MSEK EBIT excl. PIR 7,810 (15,672) MSEK 18,000 ▪ Lower volumes in both business areas 16,000 ‒ Lower grades ‒ Tara in care and maintenance 14,000 ‒ Fire in Rönnskär 12,000 10,000 ▪ High inflation 8,000 ▪ Weaker prices and terms 6,000 ‒ Weaker Zn and Ni prices 4,
Slide 11: Capital Expenditure
Capital Expenditure ▪ 2023 Group Capex: 15.5 (10.0) BSEK ‒ 2023 Mine sustaining: 3.5 (3.3) BSEK ▪ Odda expansion ‒ Scale, digitalization and automation ‒ Total Capex: 850 MEUR ‒ Good progress and on track for ramp-up in late 2024 ▪ Aitik dam project ‒ Change of dam construction method ‒ Total Capex:
Slide 12: Mines – Full Year 2023
Mines – Full Year 2023 EBIT EBIT 3,111 (9,318) MSEK MSEK 4,000 ▪ Lower grades 3,500 3,000 2,500 ▪ Lower prices and terms 2,000 1,500 1,000 ▪ Lower milled volumes in open pits 500 0 -500 ▪ Tara in care and maintenance since July -1,000 Aitik Boliden Garpenberg Kevitsa Kylylahti Tara Area ▪ New annual
Slide 13: Smelters – Full Year 2023
Smelters – Full Year 2023 EBIT excl. PIR EBIT excl. PIR 4,485 (5,916) MSEK MSEK 2,500 ▪ Fire in Rönnskär 2,000 ▪ Cost inflation 1,500 1,000 ▪ Higher planned maintenance in 2023 ‒ EBIT effect of -670 (-500) MSEK 500 0 ▪ New annual record for Harjavalta’s production of Ni Rönnskär Harjavalta Kokkola O
Slide 14: Exploration 2023
Exploration 2023 ▪ Aitik and Norrbotten ▪ Boliden Area ▪ Garpenberg and Bergslagen ▪ Successful exploration in the Aitik area ▪ Kevitsa ‒ Nautanen ▪ Continued positive exploration results in the Boliden Area and ▪ Central Finland Garpenberg ▪ Tara and Ireland ▪ Ireland ‒ Exploration halted due to Ta
Slide 15: Mineral Reserves end of 2023
Mineral Reserves end of 2023 ▪ Aitik ‒ Reserves covering full production until 2048 (2047) ‒ Cu reserve grade 0.23 (0.23) % Reserve life (years)** 35 ▪ Boliden Area 30 ‒ Reserves covering full production until 2031 (2029) 25 ▪ Garpenberg 20 ‒ Reserves covering full production until 2054 (2055) 15 ‒
Slide 16: Mineral Resources end of 2023
Mineral Resources end of 2023 ▪ Aitik ‒ 940 (1,147) Mtonnes Garpenberg: Longitudinal section for resources and reserves ▪ Boliden Area ‒ Mineral Resources 25.2 (27.2) Mtonnes ▪ Garpenberg ‒ Mineral Resources 90 (89) Mtonnes ▪ Tara ‒ No new calculation due to care and maintenance ‒ Tara Mine 13.3 (13
Slide 17: Financial summary
Financial summary MSEK Q4 2023 Q4 2022 Q3 2023 Revenues 20,754 23,577 19,396 EBITDA 3,734 5,004 3,390 EBIT 2,096 3,229 1,912 EBIT excl. PIR 2,017 3,190 1,940 Investments 4,790 3,712 3,591 Free cash flow 1,663 3,520 -1,200 Earnings per share, SEK 6.06 9.42 4.96 Q4 INTERIM & YEAR-END REPORT 2023 17
Slide 18: EBIT excl. PIR by Business Area
EBIT excl. PIR by Business Area MSEK Q4 2023 Q4 2022 Q3 2023 Mines 985 1,512 750 Smelters 985 1,570 1,303 Other/eliminations 47 108 -114 The Group 2,017 3,190 1,940 Mines Smelters MSEK Rolling, MSEK Rolling, MSEK MSEK 3,500 14,000 2,000 8,000 3,000 12,000 1,600 6,400 2,500 10,000 1,200 4,800 2,000 8
Slide 19: EBIT deviation Q4 2023 vs Q4 2022
EBIT deviation Q4 2023 vs Q4 2022 EBIT excl. PIR MSEK Lower prices for Ni, Zn and sulphuric acid Q4 2022 3,190 Higher premiums and treatment charges Prices and terms -502 Tara in care and maintenance Whereof currency 32 Rönnskär operating without the tank house Volumes -1,521 Unplanned maintenance i
Slide 20: EBIT deviation Q4 2023 vs Q3 2023
EBIT deviation Q4 2023 vs Q3 2023 EBIT excl. PIR MSEK Q3 2023 1,940 Negative currency developments Prices and terms -157 Whereof currency -208 Volumes 653 Reduced inventories, mainly gold Higher grades in Mines Costs -402 Higher feed in Smelters, mainly Rönnskär Depreciation -150 Seasonal cost incre
Slide 21: Cash flow
Cash flow MSEK Q4 2023 Q4 2022 Q3 2023 EBITDA excl. PIR 3,655 4,965 3,417 Cash flow from working capital 3,075 3,174 -412 Cash flow from investments -4,808 -3,775 -3,592 Financial items -4 -7 -245 Tax paid -39 -1,028 -321 Other -216 191 -47 Free cash flow 1,663 3,520 -1,200 Q4 INTERIM & YEAR-END REP
Slide 22: Capital structure
Capital structure Net debt and Gearing SEK bn 31 Dec 2023 31 Dec 2022 30 Sep 2023 SEK bn % Total Assets 102.0 96.4 98.0 14 35 Capital Employed 70.8 62.2 71.7 12 30 Equity 56.4 58.3 56.0 10 25 Net debt 10.7 0.0 12.3 8 20 Net debt/equity, % 19 0 22 6 15 Net reclamation 4 10 liability/equity, % 6 5 5 2
Slide 23: Process inventory volumes updated from 2024
Process inventory volumes updated from 2024 External Process Inventory New Former Copper, tonnes 28,500 29,500 Zinc, tonnes 19,500 13,000 Lead, tonnes 250 0 Gold, kg 3,900 2,000 Silver, kg 68,000 45,000 Palladium, kg 500 500 Q4 INTERIM & YEAR-END REPORT 2023 23
Slide 24: 2024 Capital Markets Update
2024 Capital Markets Update Boliden’s Capital Markets Update 2024 will be held virtually on March 18, 14:00 – 16:00 (CET) For more information please contact: investorrelations@boliden.com Q3 INTERIM REPORT 2023 24
Slide 25: Outlook
▪ Aitik Outlook ‒ 2024: Cu 0.17%, Au 0.08 g/tonne ▪ Garpenberg ‒ 2024: Zn 3.5%, Ag 100 g/tonne ▪ Kevitsa ‒ 2024: Cu 0.28%, Ni 0.20% ▪ Tara ‒ Care and maintenance cost: EBIT -13 MEUR/quarter ▪ Maintenance shutdowns ‒ 2024: -400 (-670) MSEK ▪ Capex ‒ 2024: 14 BSEK ‒ Excluding potential Rönnskär tank h
Slide 26: This is Boliden
This is Boliden Our purpose To provide the metals essential to improve society for generations to come Our vision To be the most climate friendly and respected metal provider in the world Our values Care, Courage, Responsibility Q4 INTERIM & YEAR-END REPORT 2023 26
Slide 27: Appendix
APPENDIX Q4 INTERIM & YEAR-END REPORT 2023 27
Slide 28: Financing
Financing Net Debt MSEK Q4 2023 Q4 2022 Q3 2023 Debt to credit institutions 14,424 10,988 15,441 Other interest bearing debt 158 203 159 Pensions 1,128 953 952 Interest bearing assets -4 -1 0 Cash -4,978 -12,159 -4,219 Total 10,728 -15 12,333 Net Payment Capacity MSEK Q4 2023 Q4 2022 Q3 2023 Not uti
Slide 29: Loan structure
Loan structure Maturity of which MSEK Reported value utilized < 1 year 1-5 years > 5 years Revolving credit facility, not utilized 12,877 - - - - Bilateral loans 6,176 6,176 595 3,711 1,870 Bonds 6,632 6,632 750 4,845 1,036 Commercial papers 1,617 1,617 1,617 - - Leases, other 158 158 50 108 - Total
Slide 30: Preliminary priced volumes
Preliminary priced volumes Preliminary priced volumes in Mines* 31 Dec 2023 Copper, ktonnes 7.0 Zinc, ktonnes 14.4 Nickel, ktonnes 2.5 Lead, ktonnes 4.0 Silver, kg 53,644 Gold, kg 1,255 Palladium, kg 165 Platinum, kg 233 * Preliminary priced volumes of metal in concentrate in Mines Q4 INTERIM & YEAR
Slide 31: Copper and zinc treatment charges
Copper and zinc treatment charges Copper TC Zinc TC USD/tonne USD/tonne concentrate concentrate 100 350 300 80 250 60 200 150 40 100 20 50 0 0 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 Contract TC - annual and mid-year benchmark Standard grade spot TC Contract TC - realized Spot TC
Slide 32: Base metal prices
Base metal prices USD/tonne ktonnes USD/tonne ktonnes Copper Nickel 15,000 2,400 50,000 2,500 2,000 40,000 2,000 10,000 1,600 30,000 1,500 1,200 5,000 800 20,000 1,000 400 10,000 500 0 0 0 0 LME inventory Shanghai inventory Comex inventory LME inventory Price Price Q avg Price Price Q avg USD/tonne
Slide 33: Gold, silver and lead prices
Gold, silver and lead prices USD/tonne USD/tr.oz. Lead Silver 3,000 35 2,500 30 2,000 25 20 1,500 15 1,000 10 500 5 0 0 Price Price Q avg Price Price Q avg USD/tr.oz. Gold 2,500 2,000 Average price in Q4 2023 vs period Q3 2023 Q2 2023 Q1 2023 Q4 2022 1,500 Gold 2% 0% 4% 14% 1,000 Silver -2% -4% 3% 1
Slide 34: Disclaimer
This presentation has been prepared by Boliden for information purposes only and as per the indicated date. Boliden does not undertake any obligation to correct or update the information or any statements made therein. Certain statements in this presentation are forward-looking and are subject to ri