Boliden AB · OMXSTO:BOL
Boliden AB — Investor Day (November 2013)
27 slides from Boliden AB's investor day presentation, Nov 21, 2013
Slide 1: Mines update
Mines update CMD 21 November 2013 Jan Moström President Boliden Mines
Slide 2: Mines – Financial development
Mines – Financial development EBIT 372 (858) MSEK MSEK R4Q, ‒ 376 MSEK in Q2 2013 Quarterly EBIT MSEK 1 600 4 800 EBIT decline in past quarters Rolling Q EBIT 4 400 driven by: 4 000 ‒ Metal price decline 1 200 3 600 ‒ Strong Swedish krona 3 200 ‒ Lower grades 2 800 Costs 800 2 400 ‒ Much lower
Slide 3: Boliden Mines 2013
Boliden Mines 2013 Operational excellence ‒ EHS ‒ NBW Exploration ‒ Near mine Aitik ‒ Aitik 36 Mton and further expansions Boliden area ‒ Consolidation of expansions Garpenberg ‒ Finalizing expansion project Tara ‒ Challenging cash cost position ‒ Cost reduction program Boliden CMD 2013
Slide 4: Boliden Mines, looking forward
Boliden Mines, looking forward Operational excellence ‒ EHS ‒ NBW Exploration ‒ Increased brownfield focus Technology ‒ Develop processes for challenging mineralizations ‒ Mine automation Environment ‒ Develop techniques to minimize environmental impact Boliden CMD 2013 4 2013-11-21
Slide 5: Aitik – as is
Aitik – as is Boliden CMD 2013 5 2013-11-21
Slide 6: Aitik 36
Aitik 36 Time ‒ On plan ‒ 36 Mton latest 2014 Capacity ‒ Tested above 36 Mton Cost ‒ Higher than planned ‒ Competitive position maintained Boliden CMD 2013 6 2013-11-21
Slide 7: Production 2011 – 2013
Production 2011 – 2013 (through September) 40 000 35 000 30 000 25 000 KTONNES 20 000 15 000 10 000 5 000 0 2011 2012 2013 Mill d volume Milled l R12 T Target t Boliden CMD 2013 7 2013-11-21
Slide 8: Aitik – decreased sensitivity for winter conditions
Aitik – decreased sensitivity for winter conditions Crushers: ‒ Re-design – re-building Conveyors: ‒ Re-design – re-building ‒ Improved p q qualities, belts Intermediate storage ‒ Re-design – re-building ‒ Chutes ‒ Boilers – heaters Ore storage ‒ Re-design – re-building ‒ Chutes ‒ Boilers –
Slide 9: Aitik – operating cost/milled ton
Aitik – operating cost/milled ton 12 000 100 90 10 000 80 70 8 000 60 6 000 50 40 4 000 30 20 2 000 10 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2010 2011 2012 2013 Mill d production Milled d ti C t per tonne Cost t excl.l Depr. D C t per tonne Cost t Boliden CMD 2013 9 2013-11-21
Slide 10: Copper
Copper Boliden CMD 2013 10 2013-11-21
Slide 11: Copper
Copper Normal C1 Normal C1+Underhållsinvesteringar cents/lb metall cents/lb metall 500 500 500 500 450 450 450 450 400 400 400 400 350 350 350 350 300 300 300 300 250 250 250 250 200 200 200 200 150 150 150 150 100 100 100 100 50 50 50 50 0 0 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 201
Slide 12: Aitik – Going forward
Aitik – Going forward Boliden CMD 2013 12 2013-11-21
Slide 13: Extended study, Tailings pond
Extended study, Tailings pond Boliden CMD 2013 13 2013-11-21
Slide 14: Aitik Going Forward
Aitik Going Forward Infrastructure ‒ In pit crushing, performance and cost ‒ TMF (Tailing Management Facilities) ‒ Reclamation, sequences and techniques ‒ Increased enenvironmental ironmental cost (Cape (Capex & opex) ope ) Production ‒ Mining sequences and design of mine ‒ Reclamation of presen
Slide 15: Aitik 45 - characteristics
Aitik 45 - characteristics Increased volume to 45 mt/year ‒ Lower grades ‒ Increased ore reserves ‒ Low strip ratio ‒ Lower cost/ton milled ore ‒ Longer life of mine Capex for expansion 2014-2016 ‒ Infrastructure ‒ Environment Capex after 2020 ‒ New tailings dam, substantial Decision 2014 Bo
Slide 16: Boliden area
Boliden area Boliden CMD 2013 16 2013-11-21
Slide 17: Boliden area going forward
Boliden area going forward Boliden Concentrator ‒ Multi metal – multi process concentrator ‒ Continuous improvement on metallurgical performance Kankberg Mine ‒ Increased reserve and resource ‒ Mi i method Mining th d ‒ Productivity Renström mine ‒ Production volume K i ti b Kristineberg Mi
Slide 18: Garpenberg Summary
Garpenberg Summary Expansion project on time and cost Commissioning Expansion project ‒ First half year 2014 Commissioning: mine ‒ Production target 2,0 Mtonnes ‒ Ore on stock ‒ Crushers – ore passes Full production ‒ Shaft – hoisting critical ‒ 2,5 Mtonnes 2015 ‒ Capital development on trac
Slide 19: Garpenberg – Ore production and grade mix
Garpenberg – Ore production and grade mix 3000 2500 2000 3.8 % 1500 Resource Reserve 1000 5.1 % 500 0 Boliden CMD 2013 19 2013-11-21
Slide 20: Tara
Tara Boliden CMD 2013 20 2013-11-21
Slide 21: Action plan
Action plan Increased productivity and Stefan Romedahl new General Manager in efficiency T Tara since i 1S September t b 2013 ‒ Continuous mining ‒ Continuous mucking ‒ Waste mucking ‒ Reduce, reuse and recycle ‒ More flexible use of contractors in craft areas Cost savings from personnel cost ‒
Slide 22: Zinc
Zinc Boliden CMD 2013 22 2013-11-21
Slide 23: Zinc
Zinc Normal C1 Normal C1+Underhållsinvesteringar cents/lb metall cents/lb metall 250 250 250 250 200 200 200 200 150 150 150 150 100 100 100 100 50 50 50 50 0 0 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2012 2013 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Slide 24: Laver
Laver Extended conceptual study Technology base line ‒ Aitik 36 Environment impact assessment ‒ Decrease impact on landscape and environment ‒ Develop BAT for reclamation Progress 2013 ‒ Continued drilling ‒ T t mining, Test i i 3 500 ttonnes off mineralization i li ti ‒ Focus on general des
Slide 25: Laver
Laver Laver MÖTE Ö MED STYRGRUPP BUDGET Next step: Application for mining concession Boliden CMD 2013 25 2013-11-21
Slide 26: Disclaimer
Disclaimer This presentation has been prepared by Boliden for information purposes only. Nothing in this material shall be construed as an offer or solicitation to buy y or sell any y securityy or p product,, or to engage in or refrain from engaging in any transaction. This presentation has been
Slide 27: Boliden CMD 2013
Boliden CMD 2013 27 2013-11-21