Boliden Ab · OMXSTO:BOL
Boliden Ab — Q1 2024 Earnings Presentation
26 slides from Boliden Ab's earnings presentation, Apr 23, 2024
Slide 1: Q1 2024 Key investment decisions in a challenging quarter
Q1 2024 Key investment decisions in a challenging quarter Mikael Staffas, President and CEO Håkan Gabrielsson, Executive Vice President and CFO April 23, 2024
Slide 2: Highlights
Highlights • Important steps to future-proof business • Rönnskär tank house and Boliden Area extension • Odda, Aitik and Kristineberg projects approaching completion • Autonomous Hauling System in Aitik • Launch of Low-Carbon Nickel • Political strikes in Finland • Extreme winter conditions • Stable
Slide 3: Financial performance
Financial performance Group Operating profit excl. PIR • Operating profit excl. PIR* SEK 1,212 m (3,020) SEK m Rolling, SEK m • Free cash flow SEK -1,508 m (-46) 5 000 20 000 4 500 18 000 • Capex SEK 3,445 m (2,918) 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 950 m Rönnskär tank house SEK 4.8 billion • Commissioning of subsystems have • Start of project in May 2024 started • Ramp-up during H2 2026 • Ramp-up during Q4 2024 Boliden Area extension SEK 2.5 billion Aitik dam reinforcement SEK 5.0 billion • Environmental
Slide 5: ESG development
ESG development CO2e emissions, ktonnes 300 250 200 150 100 • CO2e emissions 203 ktonnes (209)* 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2021 2022 2023 2024 • Lost Time Injury Frequency 5.1 (4.0)** R12 Accident frequency, rolling 12 months 10 5 • Sick leave 5.4% (5.3) R12 0 Q1 Q2
Slide 6: Market developments
Market developments • Base metals Prices and terms indices • Weaker Zinc, Nickel and Lead Metal price/ TC index (USD) Currency index Boliden weighted index • Improved Copper vs. previous quarter • Precious metals 225 200 • All time high Gold 175 • Improved Silver 150 • Weaker PGM* 125 100 • Zinc ben
Slide 7: Copper, zinc and nickel prices relative to cash cost
Copper, zinc and nickel prices relative to cash cost Copper Zinc Nickel 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 price Source: Wood Mackenzie 20
Slide 8: Mine production
Mine production Copper in concentrate, ktonnes 40 30 20 Aitik Kevitsa 10 0 • Milled volume 10.6 Mtonnes (10.0) • Milled volume 2.5 Mtonnes (2.3) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 • Extreme winter conditions • 7 days of lost production due to 2020 2021 2022 2023 2024 political strike
Slide 9: Smelter production
Smelter production Copper, ktonnes 150 100 50 Rönnskär Odda 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 • Weak production • First quarter with cell house 4 2020 2021 2022 2023 2024 • Extreme winter conditions permanently closed (part of Zinc, ktonnes expansion project) 150 Harjavalta 100 Be
Slide 10: Financial summary
Financial summary SEK m Q1 2024 Q1 2023 Q4 2023 Revenues 18,481 19,962 20,754 Operating profit before depreciation and amortization (EBITDA) 3,237 4,889 3,734 Operating profit 1,615 3,405 2,096 Operating profit ex. PIR 1,212 3,020 2,017 Investments 3,445 2,918 4,790 Free cash flow -1,508 -46 1,663 E
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 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2021 2022 2023 2024 SEK m Q1 2024 Q1 2023 Q4 2023 Quarterly EBIT 12 months rolling
Slide 12: Operating profit deviation year-on-year
Operating profit deviation Prices and terms year-on-year • Currency SEK -97 m • Lower base metal prices, mainly Zn and Ni • Lower premiums, by-product prices and treatment charges Volumes • Tara in care and maintenance (SEK -650 m) • Lower grades in Aitik • Negative impact from lack of tank house in
Slide 13: Operating profit deviation quarter-on-quarter
Operating profit deviation quarter-on-quarter Prices and terms • Currency SEK -109 m • Lower Premiums and TCs Volumes • Lower grades in Aitik • Strikes in Finland • Impact from extreme winter conditions in January Costs • Lower cost for energy and consumables • Less maintenance costs Q1 2024 interim
Slide 14: Cash flow
Cash flow SEK m Q1 2024 Q1 2023 Q4 2023 Operating profit before depreciation and amortization excl. PIR 2,835 4,504 3,655 Cash flow from working capital 187 -260 3,075 Cash flow from investment activities -3,444 -2,917 -4,808 Financial items -203 -204 -4 Paid tax -1,063 -1,036 -39 Other 180 -133 -21
Slide 15: Capital structure
Capital structure 31 Mar 31 Mar 31 Dec SEK bn % SEK bn 2024 2023 2023 14 35 12 30 Total Assets 104.2 102.3 102.0 10 25 Capital Employed 74.1 64.4 70.8 8 20 Equity 58.5 60.8 56.4 6 15 Net debt 12.4 0.1 10.7 4 10 Net debt/equity, % 21 0 19 2 5 Net reclamation 0 0 liability/equity, % 6 5 6 -2 -5 Q1 Q2
Slide 16: Outlook
Outlook 2024 Capex • SEK 15.5 billion 2024 Smelters planned maintenance • SEK -400 m 2024 Zn Cu Ni* Au Ag % g/tonne Aitik 0.17 0.08 Garpenberg 3.5 100 Kevitsa 0.28 0.20 Boliden Area 3.0 2.0 * Nickel in Sulphides, Ni(S) Q1 2024 interim report presentation 16
Slide 17: 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 18: Appendices
Appendices • Financing • Loan structure • Preliminary priced volumes • Treatment charges • Metal prices Q1 2024 interim report presentation 18
Slide 19: Financing
Financing Net debt SEK m Q1 2024 Q1 2023 Q4 2023 Debt to credit institutions 15,361 12,655 14,424 Other interest bearing debt 157 189 158 Pension liability 1,140 946 1,128 Interest bearing assets 1 0 -4 Cash -4,272 -13,722 -4,978 Total 12,386 68 10,728 Net payment capacity SEK m Q1 2024 Q1 2023 Q4 2
Slide 20: Loan structure
Loan structure Maturity of which SEK m Reported value utilized < 1 year 1-5 years > 5 years Revolving credit facility, not utilized 14,317 - - - - Bilateral loans 6,119 6,119 620 3,743 1,757 Bonds 6,630 6,630 750 4,845 1,035 Commercial papers 2,612 2,612 2,612 - - Leases, other 156 156 48 109 - Tota
Slide 21: Preliminary priced volumes
Preliminary priced volumes 31 mar Preliminary priced volumes in Mines* 2024 Copper, ktonnes 9.7 Zinc, ktonnes 18.5 Nickel, ktonnes 3.0 Lead, ktonnes 5.6 Silver, kg 32,588 Gold, kg 591 Palladium, kg 154 Platinum, kg 230 * Preliminary priced volumes of metal in concentrate in Mines Q1 2024 interim rep
Slide 22: 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 40 150 20 100 0 50 2019 2020 2021 2022 2023 2024 -20 0 2019 2020 2021 2022 2023 2024 Contract TC - annual and mid-year benchmark Standard grade spot TC Contract TC - realized Spot TC i
Slide 23: 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 2 000 800 4 000 800 2 000 400 1 000 400 0 0 0 0 LME inventory Shanghai inventory Comex inventory LME inventory Shanghai inventory Price
Slide 24: Gold, silver and lead prices
Gold, silver and lead prices USD/tr.oz. USD/tr.oz. Gold 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/tonne Lead 3 000 2 500 Average price in Q1 2024 vs period 2 000 Q4 2023 Q3 2023 Q2 2023 Q1 2023 1 500 1 000 Gold 5% 7% 5% 10% 500 Silver 1%
Slide 25: External process inventory
External process inventory Metal Volume Copper, tonnes 28,500 Zinc, tonnes 19,500 Lead, tonnes 250 Gold, kg 3,900 Silver, kg 68,000 Palladium, kg 500 Q1 2024 interim report presentation 25
Slide 26: 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