Boliden AB · OMXSTO:BOL

Boliden AB — Investor Day (November 2012)

22 slides from Boliden AB's investor day presentation, Nov 23, 2012

  1. Slide 1: Mines update

    Mines update Capital Markets Day November 23rd 2012 Jan Moström President, Boliden Mines Boliden CMD 2012 1 2012-11-23

  2. Slide 2: Mines – Summary

    Mines – Summary Msek 1 400 5 000  EBIT 842 (1,047) MSEK Quarterly EBIT ‒ 726 MSEK in Q2 2012 4 500 1 200 Rolling 4Q EBIT  Write-down in Tara, -79 MSEK 4 000  Lower average prices 1 000 3 500 ‒ End-of-period price effect positive 3 000 800  Zinc grades lower in 2 500 (Garpenberg) 600 2 000  Easi

  3. Slide 3: Boliden Mines, status

    Boliden Mines, status  Aitik ‒ Aitik 36 Mton and further expansions  Boliden Area Operations ‒ Commissioning of gold leaching and the Tellurium process  Garpenberg ‒ Garpenberg expansion project including ramp up of mine production  Tara ‒ Challenging cash cost position, comprehensive cost cutti

  4. Slide 4: Boliden Mines, looking forward

    Boliden Mines, looking forward  Exploration ‒ Near mine to develop sustainable ore expansions of operations ‒ Brownfield to deliver exploration project  Technology ‒ Develop processes addressing deposits with a challenging mineralization ‒ Mine automation  Environment ‒ Develop techniques to mini

  5. Slide 5: Boliden Mines

    Boliden Mines Aitik 36 Recap and further expansions Boliden CMD 2012 5 2012-11-23

  6. Slide 6: Aitik Summary

    Aitik 36 Summary 1. CAPEX over budget ‒ 6,2 billions 2. On time ‒ Comissioning Q1 2010 (Q1 2010) ‒ Production target (2014) 3. Capacity tested ‒ 34,8 Mt R4Q 2012 Q3 ‒ 38 Mt/year Q2 2012 4. Competitiveness ‒ CC1 50 percentile Boliden CMD 2012 6 2012-11-23

  7. Slide 7: Crushers

    Crushers Boliden CMD 2012 7 2012-11-23

  8. Slide 8: Production 2010 – 2012

    Production 2010 – 2012 Not yet fully stable – adjustments in Sep-Oct 45 000 40 000 35 000 30 000 Mton/year 25 000 20 000 15 000 10 000 5 000 0 Annual rate Boliden CMD 2012 8 2012-11-23

  9. Slide 9: Competitiveness

    Competitiveness Aitik 250 Cost to concentrate US$/tonne milled production 200 150 100 50 0 Percentile of milled production 8,00 Head grade % 6,00 4,00 Aitik 2,00 0,00 Percentile of milled production Boliden CMD 2012 9 2012-11-23

  10. Slide 10: Competitiveness

    Competitiveness 2012 Copper Mine, Normal, C1 Cash Cost Grouped By mine and Ranked By Cash Cost (C1) Aitik Source: Wood Mackenzie Ltd, Dataset 2012 Q1 Boliden CMD 2012 10 2012-11-23

  11. Slide 11: Unit cost

    Unit cost Aitik, operating cost excl. depreciation per milled ton - Quarterly Kton 80,0 10 000 9 000 70,0 8 000 60,0 7 000 50,0 6 000 SEK/ton 40,0 5 000 4 000 30,0 3 000 20,0 2 000 10,0 1 000 0,0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2010 2011 2012 Milled production Kton Op cost exkl. dep per milled to

  12. Slide 12: Cost to concentrate BH data 2012

    Cost to concentrate BH data 2012 Copper primary mines Index year 2005=1 Index 2,5 2 1,5 1 0,5 0 2005 2006 2007 2008 2009 2010 2011 2012 Source Brook Hunt Boliden CMD 2012 12 2012-11-23

  13. Slide 13: Lessons learned

    Lessons learned  Pre-projecting/strategic work  Underground work  Media, electricity and pipes  Transfer of projects to operations  Transfer of complicated contracts to operations  New technology ‒ Challenging conditions ‒ Be the best, technical risks Boliden CMD 2012 13 2012-11-23

  14. Slide 14: Aitik - Further expansions

    Aitik - Further expansions Boliden CMD 2012 14 2012-11-23

  15. Slide 15: Resource Development

    Resource Development Work Flow Model PRE- CONCEPTUAL FEASIBILITY FEASIBILITY STUDY STUDY STUDY Mineral Resource Mineral Reserve Project Plan Boliden CMD 2012 15 2012-11-23

  16. Slide 16: Aitik

    Aitik Boliden CMD 2012 16 2012-11-23

  17. Slide 17: Extended study

    Extended study Tailingspond NY BILD Boliden CMD 2012 17 2012-11-23

  18. Slide 18: Compiling a single giant size geological model

    Compiling a single giant size geological model Resource Estimates: • Aitik • Aitik East • Salmijärvi • Liikavaara Conceptual Estimates: • Aitik East pillar • Office/T5 pillar • Aitik field Aitik 45/65 Boliden CMD 2012 18 2012-11-23

  19. Slide 19: Tentative Pushback

    Tentative Pushback Schedule for Aitik 45 Boliden CMD 2012 19 2012-11-23

  20. Slide 20: Aitik head grades - 2012 mine plan

    Aitik head grades - 2012 mine plan, Aitik 36 0,45% 0,40% 0,35% 0,30% 0,25% 0,25% 0,20% 0,15% 0,10% 0,05% 0,00% Ore grade old mine plan Ore grade current mine plan Average reserve grade Boliden CMD 2012 20 2012-11-23

  21. Slide 21: To conclude

    To conclude  Expansions ‒ Aitik after 45 Mton ‒ Laver  Technology  Exploration  Environment  Health & safety Boliden CMD 2012 21 2012-11-23

  22. Slide 22: Metals for modern life

    Revisioner Under 2011 gjordes två revisioner en av dom I Indien. Metals for modern life Bilden visar en medarbetare från AVA Chemicals i Indien samtala med revisorn Camilla Ottosson. Till vänster i bilden syns den indiske tolken. Boliden CMD 2012 22 2012-11-23

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