Boliden Ab · OMXSTO:BOL
Boliden Ab — Q3 2021 Earnings Presentation
25 slides from Boliden Ab's earnings presentation, Oct 22, 2021
Slide 1: Boliden – Metals for generations to come
Boliden – Metals for generations to come Q3 Interim Report 2021 Mikael Staffas, President and CEO Håkan Gabrielsson, CFO 2021-10-22 Q3 2021 Q3 INTERIM REPORT 2021 1
Slide 2: Q3 2021 – Stable result despite disruptions in production
Q3 2021 – Stable result despite disruptions in production KEY HIGHLIGHTS PROJECTS ▪ Strong prices and terms, ▪ Odda 4.0 has started well however weaker relative to Q2 2021 ▪ Rönnskär projects commissioned ▪ Production disturbances ▪ Cu expansion ▪ Major maintenance stops ▪ Leach plant ▪ Underground
Slide 3: Q3 EBIT development Group
Q3 EBIT* development Group EBIT excl. PIR MSEK Rolling, MSEK ▪ Group 2,419 (2,258) MSEK 4,000 12,000 3,500 10,500 3,000 9,000 ▪ Mines 1,936 (1,638) MSEK 2,500 7,500 2,000 6,000 ▪ Smelters 611 (835) MSEK 1,500 4,500 1,000 3,000 500 1,500 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 20
Slide 4: ESG is key in our purpose, vision and values
ESG is key in our purpose, vision and values CO2 Intensity 1,0 Q3 2021 0,8 ▪ Lost Time Injury* 6.8 (7.3) 0,6 ▪ Sick leave 3.9 (4.1) 0,4 ▪ Carbon dioxide intensity of 0.64 (0.65) 0,2 0,0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2018 2019 2020 2021 *Per million hours worked, inclu
Slide 5: Boliden weighted index close to historic highs
Boliden price index* Boliden weighted index close to historic highs 225 200 175 150 125 ▪ High metal prices 100 75 ‒ Slightly lower relative to Q2 2021 50 25 ‒ Lower end of period prices vs. quarter average 0 ▪ Stable exchange rates 225 200 175 150 125 100 75 50 25 0 *Index 100 = 1 January 2016 Q3 I
Slide 6: 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 4,000 25,000 3,500 10,000 20,000 3,000 8,000 2,500 15,000 6,000 2,000 1,500 10,000 4,000 1,000 5,000 2,000 500 0 0 0 Source: Wood Mackenzie 2021 Composite C1 cash cost* data, Refinitiv Datast
Slide 7: Mines – Q3 production
Metal content, ktonnes Copper Mines – Q3 production 50 40 Aitik 30 ▪ Negative impact from Covid-19 20 10 ▪ Milled volume 10.1 (10.2) Mtonnes 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 ▪ Cu grade 0.22 (0.24) % 2017 2018 2019 2020 2021 Zinc Garpenberg 100 ▪ Crusher failure 80 ▪ Stable
Slide 8: Smelters – Q3 production
Metal production, ktonnes Copper Smelters – Q3 production 120 100 80 60 Harjavalta 40 20 ▪ Fire in July 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 ▪ Major planned maintenance stop 2017 2018 2019 2020 2021 Zinc Rönnskär 150 ▪ Stable base metal production 100 ▪ Cu line expansion commis
Slide 9: Financial summary
Financial summary MSEK Q3 2021 Q3 2020 Q2 2021 Revenues 15,906 13,550 17,891 EBITDA 3,684 4,034 4,197 EBIT 2,305 2,622 2,785 EBIT excl. PIR 2,419 2,258 2,616 Investments 1,538 1,275 1,393 Free cash flow 962 1,878 2,013 Earnings per share, SEK 6.57 7.44 8.00 Q3 INTERIM REPORT 2021 9
Slide 10: EBIT excl. PIR by business areas
EBIT excl. PIR by business areas MSEK Q3 2021 Q3 2020 Q2 2021 Mines 1,936 1,638 2,192 Smelters 611 835 789 Other/eliminations -129 -215 -364 The Group 2,419 2,258 2,616 Mines Smelters MSEK Rolling, MSEK Rolling, MSEK MSEK 2,500 10,000 1,500 5,000 2,000 8,000 1,200 4,000 1,500 6,000 900 3,000 1,000 4
Slide 11: EBIT deviation Q3 2021 vs Q3 2020
EBIT deviation Q3 2021 vs Q3 2020 EBIT excl. PIR MSEK Higher base metal prices Q3 2020 2,258 Lower treatment charges Prices and terms 744 Whereof currency -138 Lower grades in Aitik Volumes -451 Lower milled volume in Garpenberg, Tara and Kevitsa Extensive maintenance stops in Smelters Costs -196 Ky
Slide 12: EBIT deviation Q3 2021 vs Q2 2021
EBIT deviation Q3 2021 vs Q2 2021 EBIT excl. PIR MSEK Q2 2021 2,616 Lower metal prices, offset by stronger currencies Prices and terms -92 Whereof currency 248 Lower milled volume, mainly Garpenberg Lower grades in Kevitsa Volumes -415 Extensive maintenance stops in Smelters Costs 228 Depreciation 3
Slide 13: Cash flow
Cash flow MSEK Q3 2021 Q3 2020 Q2 2021 EBITDA excl. PIR 3,798 3,670 4,029 Cash flow from working capital -841 -95 -109 Cash flow from investments -1,540 -1,274 -1,393 Financial items -61 -63 -58 Tax paid -404 -346 -466 Other 9 -14 11 Free cash flow 962 1,878 2,013 Q3 INTERIM REPORT 2021 13
Slide 14: Capital structure
Capital structure Net debt & Gearing SEK bn % SEK bn 30 Sep 2021 30 Sep 2020 31 Dec 2020 9 30 Total Assets 75.4 69.2 72.5 8 25 Capital Employed 52.8 52.1 51.0 7 Equity 48.3 44.0 45.6 6 20 5 Net debt 1.1 5.1 2.2 15 4 Net debt/equity, % 2 11 5 3 10 Net reclamation 2 liability/equity, % 5 5 5 5 1 Avera
Slide 15: Automation of mine trucks in Aitik
Automation of mine trucks in ▪ 11 mine trucks included in Aitik Autonomous Hauling System (AHS) ‒ Improvement in working environment ▪ Increasing transport demand ‒ Improvement in productivity ▪ Project implementation in 2024 ‒ Capex: 218 MSEK Q3 INTERIM REPORT 2021 15
Slide 16: Outlook
Outlook ▪ Aitik ‒ 2021: Cu 0.21 %, Au 0.11 g/tonne ‒ 2022: Cu 0.20 %, Au 0.10 g/tonne ▪ Garpenberg ‒ 2021: Zn 3.8 %, Ag 110 g/tonne ‒ 2022: Zn 3.6 %, Ag 110 g/tonne ▪ Kevitsa ‒ 2022: Cu sligthly below reserve grade ▪ Maintenance shutdowns ‒ 2021: -560 MSEK ‒ Q4: - 200 MSEK ▪ Increase in inflation pr
Slide 17: This is Boliden
This is Boliden 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, Responsibility Q3 INTERIM REPORT 2021 17
Slide 18: APPENDIX
APPENDIX Q3 INTERIM REPORT 2021 18
Slide 19: Financing
Financing Net Debt MSEK Q3 2021 Q3 2020 Q2 2021 Debt to credit institutions 5,987 6,355 5,970 Other interest bearing debt 183 221 178 Pensions 1,178 1,124 1,172 Interest bearing assets -9 -19 -8 Cash -6,258 -2,627 -5,312 Total 1,081 5,054 1,999 Net Payment Capacity MSEK Q3 2021 Q3 2020 Q2 2021 Not u
Slide 20: Loan structure
Loan structure Maturity of which MSEK Reported value utilized < 1 year 1-5 years > 5 years Revolving credit facility 7,855 - - - - Bilateral loans 5,237 5,237 - 4,784 453 Bonds 750 750 - 750 - Commercial papers - - - - - Leases, other 183 183 44 139 - Total 6,170 44 5,673 453 Q3 INTERIM REPORT 2021
Slide 21: Preliminary priced volumes
Preliminary priced volumes Preliminary priced volumes in Mines* 30 Sep 2021 Copper, ktonnes 9.2 Zinc, ktonnes 18.9 Nickel, ktonnes 2.7 Lead, ktonnes 6.7 Silver, kg 66,677 Gold, kg 1,180 Palladium, kg 250 Platinum, kg 371 * Preliminary priced volumes of metal in concentrate in Mines Q3 INTERIM REPORT
Slide 22: Copper and zinc treatment charges
Copper and zinc treatment charges Copper TC Zinc TC USD/tonne USD/tonne concentrate concentrate 120 350 100 300 250 80 200 60 150 40 100 20 50 0 0 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Contract TC - annual and mid-year benchmark Standard grade spot TC Contract TC - realized Spot TC impor
Slide 23: Base metal prices
Base metal prices USD/tonne ktonnes USD/tonne ktonnes Copper Nickel 12,000 2,400 30,000 1,200 10,000 2,000 25,000 1,000 8,000 1,600 20,000 800 6,000 1,200 15,000 600 4,000 800 10,000 400 2,000 400 5,000 200 0 0 0 0 LME inventory Shanghai inventory Comex inventory LME inventory Price Price Q avg Pric
Slide 24: Gold, silver and lead prices
Gold, silver and lead prices USD/tonne USD/tr.oz. Lead Silver 3,000 40 2,500 35 30 2,000 25 1,500 20 1,000 15 10 500 5 0 0 Price Price Q avg Price Price Q avg USD/tr.oz. Gold 2,500 2,000 Average price in Q3 2021 vs period 1,500 Q2 2021 Q1 2021 Q4 2020 Q3 2020 1,000 Gold -1% 0% -5% -6% 500 Silver -9%
Slide 25: 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 subject to ri