Boliden Ab · OMXSTO:BOL
Boliden Ab — Investor Presentation (October 2024)
43 slides from Boliden Ab's investor presentation, October 2024
Slide 1: Metals for generations to come – General Presentation Q3 2024
Metals for generations to come General Presentation Q3 2024
Slide 2: 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 and responsibility. These describe how we work together in our daily operations as well
Slide 3: A century of exploration and innovation
A century of On a cold December day in 1924, gold fever struck near the village of Boliden exploration in northern Sweden. This marked the start of 100 years of challenging conventions while and innovation providing some of the most important building blocks for modern society. Boliden post Q3 2024
Slide 4: Boliden – Metals for generations to come
Boliden – Metals for generations to come • Production of base and precious metals since 1924 Kevitsa • Mining and smelting operations in Finland, Ireland Norway and Sweden Aitik • Around 6,000 employees The Boliden Area Rönnskär • Most exposure to zinc and copper Mines Boliden Smelters Kokkola • Ind
Slide 5: Boliden's contradictions are key to our success
Boliden’s contradictions are key to our success Small Large ~6,000 employees Listed on Nasdaq Stockholm Large Cap Local Global Strong link to communities Global network and smelter sourcing Conservative Cutting edge in technology Preserving and valuing its culture Highly automated Boliden post Q3 20
Slide 6: Boliden's strategy in brief
Boliden’s strategy in brief The value chain • From exploration and mining to metal production and recycling Focus on zinc, copper and nickel • Metals that are essential to improve society for generations to come Strategic focus areas • Care for people, the environment and society • Reduced climate f
Slide 7: Industry leading skills
Industry leading skills • Mining and smelting productivity • Mill efficiency • Project execution • Complex raw material feed • Climate and environmental standards • The variation in smelter terms stabilizes Boliden’s revenues over at business cycle Return on Capital Employed (ROCE) per Business Area
Slide 8: Q3 2024 Highlights
Tankhouse 6 in Odda under commissioning in October 2024 Q3 2024 Highlights • Improved prices and terms versus Q3 2023 • Improved production in both Mines and Smelters • Record milled volume in Garpenberg • Good progress for key projects • Aitik, Kristineberg (the Boliden Area) and Odda nearing compl
Slide 9: Boliden in numbers and key projects
Boliden in numbers and key projects Boliden post Q3 2024 General Presentation 9
Slide 10: 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 Q2 Q3 2020 2021 2022 2023 2024 SEK m Q3 2024 Q3 2023 Q2 2024 Quarterly EBIT 12 months ro
Slide 11: Cash flow
Cash flow SEK m Q3 2024 Q3 2023 Q2 2024 Operating profit before depreciation and amortization excl. PIR 4,663 3,417 5,606 Cash flow from working capital -1,431 -412 -567 Cash flow from investment activities -3,229 -3,592 -3,727 Financial items -306 -245 -295 Paid tax -245 -321 -547 Other 53 -47 -69
Slide 12: Capital structure
Capital structure 30 Sep 30 Sep 30 Jun SEK bn % SEK bn 2024 2023 2024 16 35 14 30 Total Assets 111.1 98.0 112.5 12 25 Capital Employed 80.3 71.7 77.6 10 20 Equity 61.6 56.0 59.7 8 15 6 Net debt 14.8 12.3 14.4 10 4 Net debt/equity, % 24 22 24 5 2 Net reclamation 0 0 liability/equity, % 6 6 6 -2 -5 Q1
Slide 13: Loan structure
Loan structure Maturity of which SEK m Reported value utilized < 1 year 1-5 years > 5 years Revolving credit facility, not utilized 15,033 962 113 453 396 Bilateral loans 5,746 5,746 606 3,515 1,626 Bonds 6,348 6,348 1,000 3,837 1,510 Commercial papers 3,601 3,601 3,601 - - Leases, other 486 486 153
Slide 14: Key projects update
Key projects update Rönnskär site for new tankhouse in September 2024 Odda expansion EUR 1.05 billion Boliden Area extension SEK 2.5 billion • 200 ktonnes capacity Q1 2025 • Groundwork started in May 2024 • Ramp-up to 350 ktonnes starting late Tara reopening Q1 2025 • Onboarding and retraining progr
Slide 15: New Rönnskär tankhouse
New Rönnskär tankhouse State-of-the-art production facility • Annual cathode production capacity of 230 ktonnes • Scalability • The design and construction of the facility enables efficient expansion of production capacity in the future • Capex SEK 4.8 billion • Main capex spend in 2025 and 2026 • I
Slide 16: Boliden Area extension
Boliden Area extension • Existing tailings capacity only until late 2020s • Project extends capacity until late 2030s Boliden Area • Paste used as backfill • Improved environmental performance • Capex SEK 2.5 billion from 2024 to 2026 Boliden post Q3 2024 General Presentation 16
Slide 17: Boliden Area extension: paste solution explained
Boliden Area extension: paste solution explained Closed mine • Filtration plant next to the concentrator Existing mines • Paste mixing stations in Maurliden, Renström and Kankberg Maurliden Boliden Area • Transport dewatered sand out to the Kankberg concentrator mines and use binder to create paste
Slide 18: Odda expansion
Odda expansion Incoming power infrastructure commissioned • New energy contract in operation Quay infrastructure upgrade commissioned Cellhouse and foundry commissioning during Q4 • Production capacity returns to 200 ktonnes from Q1 2025 Delays in roaster and acid plant • Final commissioning late Q1
Slide 19: Odda project financials remain attractive
Odda project financials remain attractive Improved annual run-rate EBITDA of EUR ~150 m* Operating cost reduction • Economies of scale • Automation and digitalization • New hydropower agreement Odda leach product • 40 ktonnes new leach product/year • Metal content: Pb 10 ktonnes, Ag 50 tonnes, Au 40
Slide 20: Aitik dam project
Aitik dam project 1. Production within existing infrastructure prolonged from Q2 2024 to Q2 2025 2. New infrastructure well underway • Commissioning of new pump station for water recycling completed 3 • Dismantling of old pump station started 2 3 • Salmijärvi pump station under construction, to be c
Slide 21: Kristineberg expansion
Kristineberg expansion • Project on time and on budget • Ore production started Q4 2023 • Ventilation including heat exchanger in operation • Water treatment plant commissioned • State-of-the-art electrification infrastructure • Planned commissioning Q1 2025 Autonomous electric loader on trial at Kr
Slide 22: Long-term commitment to financial targets and dividend policy
Long-term commitment to financial targets and dividend policy Return on investments Dividend policy Net Debt/Equity ≥ 10% 1/3 ~20% of net profit at economic peaks* *The target also includes net reclamation liability Boliden post Q3 2024 General Presentation 22
Slide 23: Market and production
Market and production Boliden post Q3 2024 General Presentation 23
Slide 24: Copper and zinc treatment charges
Copper and zinc treatment charges Copper Zinc USD/tonne USD/tonne concentrate concentrate 100 350 300 80 250 60 200 150 40 100 20 50 0 0 2019 2020 2021 2022 2023 2024 -50 2019 2020 2021 2022 2023 2024 -100 -20 Contract TC - annual and mid-year benchmark Standard grade spot TC Contract TC - realized
Slide 25: Market developments
Market developments • Base metal prices Prices and terms indices • Improved copper and zinc prices versus Q3 2023 Metal price/ TC index (USD) Currency index Boliden weighted index • Precious metal prices • All-time highs for gold during the quarter 225 200 • Higher prices versus both comparison peri
Slide 26: Green Transition Metals
Green Transition Metals Low-carbon products • Our portfolio of low-carbon and recycled metals • Industry-leading development of metals with low climate footprints • Product offering with a climate impact per kg produced metal significantly below industry averages • Low-Carbon Copper: <1.5 kg CO2e* (
Slide 27: Major permits
Major permits Aitik Rönnskär • 2023 - 2024: Permitting of implemented and • Notification regarding rebuilding of the tank ongoing dam safety measures and infrastructure house accepted by supervisory authority 2024 changes (approved July 2024 but appealed) • 2023 - 2024: Permitting of increased waste
Slide 28: Mineral Reserves as per December 31, 2023
Mineral Reserves as per December 31, 2023 Quantity, ktonnes 2023 Au Ag Cu Zn Pb Ni* Co* Pt Pd Te 2023 2022 g/t g/t % % % % % g/t g/t g/t Aitik Proven 110,000 126,000 0.08 1.1 0.18 Probable 1,033,000 1,005,000 0.17 1.3 0.24 Boliden Area Sulfide mineralizations Kristineberg Proven 560 360 0.3 67 0.8 3
Slide 29: Exploration 2023
Exploration 2023 Exploration cost SEK 853 m (770) • Successful exploration in the Aitik area • Nautanen • Continued positive exploration results in the Boliden Area and Garpenberg • Ireland • Exploration halted due to Tara in care and Aitik and Kevitsa maintenance Norrbotten • The collaborative proj
Slide 30: Europe's provider of sustainable metals
Europe’s provider of sustainable metals For societies with low carbon footprints, the importance of base metals is greater than ever. Boliden post Q3 2024 General Presentation 30
Slide 31: Sustainability as a success factor
Sustainability as a success factor • Focus on health and safety improves wellbeing and production stability • Stringent emission standards lower environmental risk • Strong know-how in waste management from exploration to closure and reclamation • Responsible operations through supply chain control
Slide 32: ESG initiatives – highlights 2024
ESG initiatives – highlights 2024 • Actions to reach full GISTM-conformance in Aitik and Kevitsa according to plan • Aitik, Q4 2024 • Kevitsa, Q2 2024 • Nitrogen-free explosives introduced in Kankberg mine • 400 tonnes CO2e reduction yearly • Next step, tests in Aitik and Garpenberg • CSRD/ESRS comp
Slide 33: Boliden and Komatsu deepen cooperation around fossil free mining
Boliden and Komatsu deepend cooperation around fossil free mining • World premiere of a mining truck that can be converted to battery technology • Power Agnostic 930E • Can be converted to various types of fossil-free power sources • In Aitik, electrified trolley systems have, separate from this coo
Slide 34: Prioritized areas for our environment work
Prioritized areas for our environment work • Climate and energy • Emissions to air and water • Tailings and water management • Biodiversity • Reclamation • Waste and resource utilization Boliden post Q3 2024 General Presentation 34
Slide 35: Climate targets and progress
Climate targets and progress Scope 1, 2 and 3, progress CO2e emissions 2023 2021 Scope 1, ktonnes 628 625 • 42 percent reduction of Scope 1 and 2* CO2e emissions by Scope 2, ktonnes 215 375 Total, ktonnes 842 1,000 2030, base year 2021 Scopes 1+2 change on 2021, % -15.8 0 • Validated by the Science
Slide 36: Climate emissions share per Scope and category
Climate emissions share per Scope and category Upstream activities Boliden Downstream activities Scope 3 Scope 2 Scope 1 Scope 3 Indirect emissions Indirect emissions Direct emissions Indirect emissions 56% 5% 8% 12% 2% Purchased goods and Capital goods Purchased electricity for Own facilities Trans
Slide 37: Climate action
Climate action Main activities to achieve our 2030 targets • Grid decarbonization by reducing emissions from local energy production where we operate • Electrification of vehicles, machines and other processes • Energy efficiency improvements through for example optimized mine layouts and heat utili
Slide 38: Biodiversity
Biodiversity • Our biodiversity target is to have a net- positive contribution to biodiversity in all regions where we operate by 2030 • Work according to mitigation hierarchy • First, avoid impact • Second, minimize the impact that cannot be avoided through mitigation measures • Third, restore any
Slide 39: Tailings management
Tailings management • The implementation of the Global Industry Standard Waste from extractive industries, ktonnes of Tailings Management framework drives overall 2023 2022 change in processes with an increased focus and Tailings reuse for backfilling of mine 1,870 2,128 continuous improvement of ta
Slide 40: Reclamation
Reclamation • Management and supplementary reclamation of approximately 30 sites Långdal mine in 1999 after closure • Resources for reclamation are set aside throughout the mine’s lifespan, and continuously for risk-based supplementary reclamation of closed sites • Net reclamation liability 2023 tot
Slide 41: Investment case
Investment case Stable and sustainable value chain Right expertise and financial position Competitive portfolio • Technical know-how • High productivity • Metals for generations to come • Mines and Smelters • Solid financials • Cu, ZN, Ni and PB • Base metals and precious metals • Long cultural heri
Slide 42: Outlook
Outlook Capex • SEK 15.5 billion in 2024 and SEK 13.5 billion in 2025 2024 Smelters planned maintenance • SEK 0 m in Q4 Insurance income • SEK 935 m will be recognized in Q4 Tara operating profit • Estimated at EUR -25 m in Q4 2024 2025 Zn Cu Ni* Au Ag Zn Cu Ni* Au Ag % g/tonne % g/tonne Aitik 0.17
Slide 43: 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