Boliden Ab · OMXSTO:BOL
Boliden Ab — Q4 2024 Earnings Presentation
35 slides from Boliden Ab's earnings presentation, Feb 6, 2025
Slide 1: Q4 Interim & Year-End Report 2024
Q4 Interim & Year-End Report 2024 Future-proofing Boliden Announced acquisition, improved performance and strong cash flow Mikael Staffas, President and CEO Håkan Gabrielsson, Executive Vice President and CFO February 6, 2025
Slide 2: Highlights
Autonomous Hauling System truck in operation between Liikavaara pit and Aitik crusher, November 2024. Highlights • Operating profit excl. PIR SEK 3,814 m (2,017) • Insurance income of SEK 935 m (0) • Free cash flow was SEK 4,264 m (1,663) • Strong production in Smelters, especially Harjavalta and Ko
Slide 3: Financial performance
Financial performance Group Operating profit excl. PIR • Operating profit excl. PIR SEK 3,814 m (2,017) SEK m Rolling, • Free cash flow SEK 4,264 m (1,663) SEK m 5,000 20,000 • Capex SEK 4,575 m (4,790) 4,500 18,000 4,000 16,000 3,500 14,000 3,000 12,000 2,500 10,000 2,000 8,000 1,500 6,000 1,000 4,
Slide 4: Key projects update
Key projects update Odda expansion EUR 1.05 billion Rönnskär tankhouse SEK 4.8 billion • 200 ktonnes capacity Q1 2025 • Groundwork completed • Ramp-up to 350 ktonnes starting late • Building construction in progress Q1 2025 • Ramp-up during H2 2026 Aitik dam reinforcement SEK 5.0 billion The Boliden
Slide 5: ESG development
ESG development Greenhouse gas emissions, rolling 12 months 1,200 1,000 800 600 400 • Greenhouse gas emissions* ktonnes 219 (252) Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 2020 2021 2022 2023 2024 Lost Time Injury Frequency**, rolling 12 months • Lost Time Injury Frequency** 2.3 (5.1) 10 5 0 • Sick leave 5.6% (
Slide 6: Market developments
Market developments • Higher zinc price versus both comparison Prices and terms indices periods Metal price/TC index (USD) Currency index Boliden weighted index • Flat copper price versus Q3 2024 • Lower nickel and lead prices versus Q3 2024 225 200 • Higher gold and silver prices versus both 175 co
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 Minimum price Average price Maximum price Spot p
Slide 8: Mine production
Mine production Copper in concentrate, ktonnes 40 30 20 Aitik Kevitsa 10 0 • Milled volume 10.1 Mtonnes (9.4) • Stable production at capacity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 2022 2023 2024 • Ramp-up of Liikavaara The Boliden Area Zinc in concentrate, ktonnes 100
Slide 9: Smelter production
Smelter production Copper cathodes, ktonnes 150 100 50 Rönnskär Kokkola 0 Q1 Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 Q2 Q3Q4 • Higher precious metal • Stable production 2020 2021 2022 2023 2024 production versus previous Zinc, ktonnes quarter Odda 150 100 Harjavalta • Higher zinc production vers
Slide 10: Financial summary
Financial summary SEK m Q4 2024 Q4 2023 Q3 2024 Revenues 25,785 20,754 22,193 Operating profit before depreciation 5,989 3,734 4,829 Operating profit 4,098 2,096 3,165 Operating profit ex. PIR 3,814 2,017 2,999 Investments 4,575 4,790 3,227 Free cash flow 4,264 1,663 -495 Earnings per share, SEK 10.
Slide 11: Operating profit excl. PIR per Business Area
Operating profit excl. PIR Mines SEK m Rolling, SEK m per Business Area 3,500 14,000 3,000 12,000 2,500 10,000 2,000 8,000 1,500 6,000 1,000 4,000 500 2,000 0 0 Q1 Q2Q3Q4 Q1 Q2Q3Q4 Q1 Q2Q3Q4 Q1 Q2Q3Q4 Q1 Q2Q3Q4 2020 2021 2022 2023 2024 SEK m Q4 2024 Q4 2023 Q3 2024 Quarterly EBIT 12 months rolling E
Slide 12: Operating profit deviation year-on-year
Prices and terms Operating profit deviation • Higher metal prices and USD, partly offset by year-on-year lower premiums and TCs Volumes 4,500 • Restart of Tara 741 4,000 814 -37 3,814 • Strong production in Finnish smelters 3,500 1,326 -766 3,000 -282 2,500 Costs 2,000 2,017 • Restart of Tara 1,500
Slide 13: Operating profit deviation quarter-on-quarter
Prices and terms Operating profit deviation • Stronger USD • Higher zinc, precious metal and by-product quarter-on-quarter prices • Positive impact from provisional pricing and internal profit eliminations 4,500 54 Volumes 4,000 888 43 3,814 935 3,500 • Lower milled volumes offset by strong 2,999 pr
Slide 14: Cash flow
Cash flow SEK m Q4 2024 Q4 2023 Q3 2024 Operating profit before depreciation and amortization excl. PIR 5,704 3,655 4,663 Cash flow from working capital 3,733 3,075 -1,431 Cash flow from investing activities -4,597 -4,808 -3,229 Financial items -333 -4 -306 Paid tax -316 -39 -245 Other 73 -216 53 Fr
Slide 15: Capital structure
Capital structure 31 Dec 31 Dec 30 Sep SEK bn % SEK bn 2024 2023 2024 16 35 14 30 Total Assets 116.2 102.0 111.1 12 25 Capital Employed 80.1 70.8 80.3 10 20 Equity 65.0 56.4 61.6 8 15 6 Net debt 10.7 10.7 14.8 10 4 Net debt/equity, % 16 19 24 5 2 Net reclamation 0 0 liability/equity, % 6 6 6 -2 -5 Q
Slide 16: Group – Full-year 2024
Group – Full-year 2024 Operating profit excl. PIR Operating profit excl. PIR SEK 12,025 m (7,810) SEK m • Improved prices and terms 18,000 • Stronger metal prices 16,000 • Weaker metal premiums and TCs 14,000 • Flat exchange rate effects 12,000 • Increased volumes 10,000 • Higher grades 8,000 • Incr
Slide 17: Mines – Full-year 2024
Mines – Full-year 2024 Operating profit Operating profit SEK 5,241 m (3,111) SEK m 4,000 • Higher grades 3,000 • Improved prices and terms 2,000 1,000 • Stable milled volumes 0 • Tara in care and maintenance -1,000 -2,000 Aitik Boliden Area Garpenberg Kevitsa Tara 2023 2024 Q4 Interim & Year-end Rep
Slide 18: Smelters – Full-year 2024
Smelters – Full-year 2024 Operating profit excl. PIR Operating profit excl. PIR SEK 7,147 m (4,485) SEK m 4,000 • Weaker prices and terms despite stronger metal prices 3,500 3,000 • Lower treatment charges 2,500 • Lower premiums 2,000 1,500 • Less planned maintenance in 2024 1,000 • Operating profit
Slide 19: Exploration 2024
Exploration 2024 Exploration cost SEK 929 m (858) • Sweden • Internal and collaborative projects progressing well • Aitik: Continued positive exploration results in Nautanen • The Boliden Area: Promising results from Central and Western Skellefte district • Garpenberg: Large increase in Mineral Reso
Slide 20: Mineral Reserves end of 2024
Mineral Reserves end of 2024 Aitik • Reserves covering full production until 2048 (2048) Reserve life (years)** • Cu reserve grade 0.23 (0.23) % The Boliden Area Mineral Reserve Life of Mine (years) • Reserves covering full production until 2033 (2031) 35 • Extension project 30 Garpenberg • Reserves
Slide 21: Mineral Resources end of 2024
Mineral Resources end of 2024 • Aitik • 905 (940) Mtonnes • The Boliden Area • Mineral Resources 27.7 (25.3) Mtonnes • Garpenberg • Mineral Resources 124 (90) Mtonnes • Successful exploration drilling • Tara • No new estimations due to care and maintenance • Tara Mine 13.3 (13.3) Mtonnes • Tara Deep
Slide 22: Key terms for the acquisition of Neves-Corvo and Zinkgruvan
Key terms for the acquistion of Neves-Corvo and Zinkgruvan Upfront cash consideration USD 1,300 m payable in cash at closing on a cash- and debt-free basis Contingent payments Maximum USD 150 m based on profit-sharing • Up to 3 years • Subject to average zinc and copper prices Closing Expected mid-2
Slide 23: Transaction financing
Transaction financing • Upfront cash consideration funded by a bridge loan • The bridge loan will be refinanced in due course via: • Approximately 50% long-term debt • Approximately 25% share issue • Approximately 25% canceled 2024 dividend (Subject to AGM approval) • Extraordinary General Meeting a
Slide 24: 2025 Outlook
2025 Outlook Capex • SEK 14 billion in 2025 • Combined spend for 2024 and 2025 is unchanged Smelters planned maintenance • SEK -500 m operating profit effect for the full year 2025 Strikes in Finland • So far just over SEK -100 m operating profit effect in Q1 2025 • New collective bargaining agreeme
Slide 25: Boliden Capital Markets Days 2025
Boliden Capital Markets Days 2025 Follow the webcast on www.boliden.com March 18–19, 2025 Conference at Scandic Flesland, Bergen Airport Site visit to the Odda smelter For more information, please contact investorrelations@boliden.com
Slide 26: Our purpose, vision and values
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 and responsibility. These describe how we work together in our daily operations as well as combine diff
Slide 27: Appendices
Appendices • Financing • Loan structure • Preliminary priced volumes • Treatment charges • Metal prices Q4 Interim & Year-end Report 2024 27
Slide 28: Financing
Financing SEK m Q4 2024 Q4 2023 Q3 2024 Debt to credit institutions 16,057 14,424 16,657 Other interest bearing debt 449 158 486 Pension liability 1,208 1,128 1,142 Interest bearing assets -1 -4 -1 Cash -7,052 -4,978 -3,482 Total 10,662 10,728 14,801 SEK m Q4 2024 Q4 2023 Q3 2024 Not utilized credit
Slide 29: Loan structure
Loan structure Maturity of which SEK m Reported value utilized < 1 year 1-5 years > 5 years Revolving credit facility 15,201 915 114 458 343 Bilateral loans 5,653 5,653 615 3,411 1,627 Bonds 6,362 6,362 1,000 3,840 1,521 Commercial papers 3,127 3,127 3,127 - - Leases, other 449 449 151 299 - Total 1
Slide 30: Preliminary priced volumes
Preliminary priced volumes 31 Dec Preliminary priced volumes in Mines* 2024 Copper, ktonnes 9.4 Zinc, ktonnes 15.6 Nickel, ktonnes 2.4 Lead, ktonnes 7.4 Silver, kg 30,533 Gold, kg 699 Palladium, kg 125 Platinum, kg 194 * Preliminary priced volumes of metal in concentrate in Mines Q4 Interim & Year-e
Slide 31: Copper and zinc treatment charges
Copper and zinc treatment charges Copper Zinc USD/tonne USD/tonne concentrate concentrate 100 350 300 80 250 60 200 150 40 100 20 50 0 0 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 -50 -20 -100 Contract TC - annual and mid-year benchmark Standard grade spot TC Contract TC - realized
Slide 32: Copper, zinc and nickel prices
Copper, zinc and nickel prices USD/tonne ktonnes USD/tonne ktonnes Copper Zinc 12,000 2,400 5,000 2,000 10,000 2,000 4,000 1,600 8,000 1,600 3,000 1,200 6,000 1,200 4,000 800 2,000 800 2,000 400 1,000 400 0 0 0 0 LME inventory Shanghai inventory Comex inventory LME inventory Shanghai inventory Price
Slide 33: Gold, silver and lead prices
Gold, silver and lead prices USD/tr.oz. USD/tr.oz. Gold Silver 3,000 40 30 2,000 20 1,000 10 0 0 Price Price Q avg Price Price Q avg USD/tonne Lead 3,000 Average price in Q4 2024 vs period Q3 2024 Q2 2024 Q1 2024 Q4 2023 2,000 Gold 8% 14% 29% 35% 1,000 Silver 7% 9% 34% 35% Lead -2% -7% -3% -5% 0 Pri
Slide 34: External process inventory
External process inventory Metal Volume Former Copper, tonnes 29,000 28,500 Zinc, tonnes 21,000 19,500 Lead, tonnes 400 250 Gold, kg 3,500 3,900 Silver, kg 87,500 68,000 Palladium, kg 500 500 Q4 Interim & Year-end Report 2024 34
Slide 35: Disclaimer
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 su