Boliden Ab · OMXSTO:BOL
Boliden Ab — Q3 2002 Earnings Presentation
14 slides from Boliden Ab's earnings presentation, Oct 23, 2002
Slide 1: Interim Report January - September 2002
Boliden Interim Report January - September 2002 October 23, 2002 1 October 23, 2002
Slide 2: Highlights First Nine Months 2002
Highlights First Nine Months 2002 Boliden • Boliden reports a profit after financial items of SEK 33 million (SEK -3,436 m) for the first nine months of 2002 despite a fall in metal prices. This corresponds to an improvement of SEK 2,847 million excluding operations that have been sold or shut down
Slide 3: Metal Prices
Metal Prices Boliden Metal prices Nine months Change Third quarter Change (average LME/LBM) 2002 2001 in % 2002 2001 in % Copper (USD/lb.) 0.71 0.74 -4 0.69 0.67 3 Zinc (USD/lb.) 0.35 0.42 -17 0.35 0.37 -5 Lead (USD/lb.) 0.21 0.22 -5 0.20 0.21 -5 Gold (USD/oz) 306 269 14 314 275 14 Silver (USD/oz) 4
Slide 4: LME Copper Price and Stock
LME Copper Price and Stock Boliden USc/lb tonnes 90 1000000 85 900000 80 800000 75 700000 70 600000 65 500000 60 400000 55 300000 4 October 23, 2002
Slide 5: LME Zinc Price and Stock
LME Zinc Price and Stock Boliden USc/lb tonnes 50 800000 47 700000 44 600000 41 500000 38 400000 35 300000 32 200000 5 October 23, 2002
Slide 6: Turnover, Results and Cash Flow
Turnover, Results and Cash Flow Boliden The Boliden Group Nine months Change Third quarter Change SEK million 2002 2001 in % 2002 2001 in % Turnover 7 252 7 825 -7 2 196 2 380 -8 Operating result 260 -870 - 87 -1 025 - Operating margin (%) 3,6 -11.1 - 4.0 -43.1 - Earnings after net financial items 3
Slide 7: Mining Operations
Mining Operations Boliden Nine months Third quarter Mines Change Change (SEK million) 2002 2001 in % 2002 2001 in % Turnover 1 684 1 677 - 600 716 -16 Operating result 145 -282 - 90 74 22 Depreciation 217 399 -46 73 144 -49 Investments 187 347 -46 65 162 -60 Productivity improvements Improved realiz
Slide 8: Mining Areas
Mining Areas Boliden AITIK BOLIDEN AREA • Lower grades (gradual • Improved milling efficiency improvement during the third quarter) • Increased production of copper, zinc and precious metals • Costs - related to volume • Increased capacity due to • The Storliden Mine production equipment from Spain
Slide 9: Metal Production
Metal Production Boliden Nine months Change Third quarter Change Mines total 2002 2001 in % 2002 2001 in % Copper (tonnes) 55 867 67 819 -18 21 578 22 617 -5 Zinc (tonnes) 109 121 111 924 -3 43 908 37 955 16 Lead (tonnes) 13 842 13 695 1 4 892 4 443 10 Gold (ounces) 122 075 121 849 0 41 906 41 113 2
Slide 10: Smelter Operations
Smelter Operations Boliden Smelters Nine months Change Third quarter Change (SEK million) 2002 2001 in % 2002 2001 in % Turnover 5 060 4 985 2 1 405 1 447 -3 Operating result 195 4 - 21 22 -5 Depreciation 217 168 29 72 63 14 Investments 69 109 -37 38 39 -3 Increased production – expansion Lower meta
Slide 11: Metal Production
Metal Production Boliden Nine months Change Third quarter Change Smelters total 2002 2001 in % 2002 2001 in % Copper (tonnes) 168 148 158 869 6 55 766 53 417 4 Zinc clinker (tonnes) 25 526 26 759 -5 6 447 9 189 -30 Lead (tonnes) 12 937 22 391 -42 2 630 3 742 -30 Gold (kg) 11 859 9 358 27 3 261 3 091
Slide 12: Fabrication
Fabrication Fabrication Boliden Fabrication Nine months Change Third quarter Change (SEK million) 2002 2001 in % 2002 2001 in % Turnover 1 719 1 849 -7 515 530 -3 Operating result 5 6 -17 4 -5 - Depreciation 41 44 -7 13 13 0 Investments 36 18 100 14 5 180 Improved market shares for both Continued we
Slide 13: Hedging
Hedging Boliden 2002 100% to USD/SEK 10:77 Exchange rates USD/SEK USD/SEK 2003 80% to USD/SEK 10:68 11.2 11 10.8 10.6 2004 80% to USD/SEK 10:61 10.4 10.2 10 2005 60% to USD/SEK 10:33 9.8 9.6 Jan-Jul 9.4 9.2 Floor 9 2003-- 2004-Q3 25% to USD/SEK 9:00 13 October 23, 2002
Slide 14: Summary
Summary Boliden • Improved earnings after financial items for both the first nine months and for the third quarter 2002, compared to the corresponding periods of the previous year • Cash flow during the period was negative, mainly due to debt repayment (MSEK 195) and lower operating liabilities (MSE