Boliden AB · OMXSTO:BOL
Boliden AB — Investor Day (November 2010)
23 slides from Boliden AB's investor day presentation, Nov 1, 2010
Slide 1: BA Smelters Update
BA Smelters Update Svante Nilsson President BA Smelters Capital Markets Days - November 1-2, 2010 1
Slide 2: Content
Content Business Area Update Earnings models Gross profit development Capital Markets Days - November 1-2, 2010 2
Slide 3: Smelters Production Units
Smelters Production Units Rönnskär (Sweden) Kokkola (Finland) Copper smelter Zinc smelter Odda (Norway) Zinc smelter Harjavalta/Pori Bergsöe (Sweden) (Finland) Lead smelter Copper smelter Capital Markets Days - November 1-2, 2010 3
Slide 4: Kokkola
Kokkola Production 2009 Zinc 295,000 t Sulphuric acid 300,000 t (from 2010) Operational focus: NBW New Acid Plant Capital Markets Days - November 1-2, 2010 4
Slide 5: Odda
Odda Production 2009 Zinc metal 139,000 t Aluminium Fluoride 33,200 t Operational focus: NBW Process Stability Capital Markets Days - November 1-2, 2010 5
Slide 6: Rönnskär
Rönnskär Production 2009 Copper 205,700 t Gold 13,300 kgs Silver 481,200 kgs Lead 13,000 t Zinc clinker 38,500 t Sulphuric acid 514,700 t Operational focus: NBW E-scrap expansion Other SRMs Impurity handling Capital Markets Days - November 1-2, 2010 6
Slide 7: Harjavalta
Harjavalta Production 2009 Cathode copper 96,600 t Gold 1,700 kg Silver 58,300 kg Sulphuric acid 500,800 t Operational focus: NBW Process Stability Nickel SRM Capital Markets Days - November 1-2, 2010 7
Slide 8: Bergsöe
Bergsöe Metal production 2009 Lead and lead alloys 38,600 t Operational focus: NBW Battery supply Capital Markets Days - November 1-2, 2010 8
Slide 9: Base case Smelting
Base case Smelting Operational excellence NBW Cost / Revenues Secure primary feed Traders take larger share – more volumes spot Impurity capacity Lever on know-how Broaden customer base Actively take market share Medium sized customers Capital Markets Days - November 1-2, 2010 9
Slide 10: Feed flexibility – margin management
Feed flexibility – margin management Max volume not always the most important Boliden has flexibility to handle many materials Equipment Know-how Environmental performance Electronic scrap expansion Increase other secondary feed EAF-dust Drosses, ashes and reverts PGM-bearing materials Capital Marke
Slide 11: Earnings models
Earnings models Capital Markets Days - November 1-2, 2010 11
Slide 12: Copper earnings model
Copper earnings model Assumptions: TC/RC = 46 / 4,6 Cu-price = 7,250 $/t Au-price = 1,200 $/tr.oz Ag-price = 19 $/tr.oz Acid-price = 30 $/t Premium = 70 $/t Penalties Capital Markets Days - November 1-2, 2010 12
Slide 13: Zinc earnings model
Zinc earnings model Assumptions: TC-base = 270 $/t Escalator = 2,500 +9 / -4 Zn-price = 2,500 $/t Acid-price = 30 $/t Premiums = 150 $/t Penalties Capital Markets Days - November 1-2, 2010 13
Slide 14: Earnings others
Earnings others Approximately 30% of total GP comes from non-transparent bilateral terms. Secondary lead Free metal business Lead price Secondary raw-materials Better margin than concentrates TC/RC’s less volatile Free metals PM- and PGM- prices Ni-smelting Fixed TC (indexed) over several years Alum
Slide 15: Gross Profit Development
Gross Profit Development Capital Markets Days - November 1-2, 2010 15
Slide 16: Gross Profit Distribution
Gross Profit Distribution Capital Markets Days - November 1-2, 2010 16
Slide 17: Treatment and Refining Charges
Treatment and Refining Charges Copper-TC/RC Secondary raw materials-TC Zinc-TC Precious metals-RC Nickel-TC (tolling) 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 Capital Markets Days - November 1-2, 2010 17
Slide 18: Free metals
USD/t Zinc Free metals 5,000 4,500 4,000 3,500 3,000 2,500 Zinc 2,000 Copper 1,500 1,000 Lead 500 0 2004 2005 2006 2007 2008 2009 2010 Daily price Quarter average price Source: Reuters Datastream USD/t USD/t Copper Lead 10,000 4,500 4,000 8,000 3,500 3,000 6,000 2,500 2,000 4,000 1,500 2,000 1,000 5
Slide 19: Free Metal
Free Metal USD/oz Silver 30.00 25.00 20.00 15.00 Silver Gold 10.00 Platinum group metals (PGM) 5.00 0.00 2004 2005 2006 2007 2008 2009 2010 Daily price Quarter average price Source: Reuters Datastream USD/oz USD/oz Gold Palladium 1,600 700 1,400 600 1,200 500 1,000 400 800 300 600 200 400 200 100 0
Slide 20: Premiums
Premiums Copper Zinc 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 !" # $% % &' ( ' ) " % # Capital Markets Days - November 1-2, 2010 20
Slide 21: By-products
By-products Sulphuric acid (H2SO4) # ! " $ %& ! ' ( ) * +, Capital Markets Days - November 1-2, 2010 21
Slide 22: Conclusion
Conclusion Copper smelters Challenging concentrate situation Significant revenue from secondary feed Electronic scrap expansion Zinc smelters Kokkola is a world class zinc smelter Odda has challenging size and cost structure Internal feed Capital Markets Days - November 1-2, 2010 22
Slide 23: Capital Markets Days - November 1-2, 2010
Capital Markets Days - November 1-2, 2010 23