Boliden AB · OMXSTO:BOL
Boliden AB — Investor Day (November 2010)
24 slides from Boliden AB's investor day presentation, Nov 1, 2010
Slide 1: Group update
Group update Lennart Evrell President & CEO Capital Markets Days - November 1-2, 2010 1
Slide 2: A few topics to cover…
A few topics to cover… Expansion Aitik Boliden area E-scrap recycling Issues Aitik ramp-up Copper smelters Education Smelter revenue model Sensitivities CSR in Metal & Mining Capital Markets Days - November 1-2, 2010 2
Slide 3: Third Quarter 2010
Third Quarter 2010 The market Boliden Improving market demand Revenues MSEK 9,373 (6,960) Increasing metal prices EBIT ex PIR* MSEK 1,348 (949) Weak USD Operating profit MSEK 1,213 (733) Better concentrate availability end Cash-flow MSEK 1,203 (610) of quarter Boliden area ramp-up Spot TCs for coppe
Slide 4: Group EBIT Development
Group EBIT Development MSEK Quarterly EBIT 2 000 Quarterly EBIT excl PIR* 1 500 1 000 500 0 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 -500 *Process Inventory Revaluation Capital Markets Days - November 1-2, 2010 4
Slide 5: Production and metal value January-September
Production and metal value January-September Main metals production values calculated at average LME prices Capital Markets Days - November 1-2, 2010 5
Slide 6: Expansion projects
Expansion projects Aitik Boliden area E-scrap recycling Capital Markets Days - November 1-2, 2010 6
Slide 7: Aitik Mine
Aitik Mine Capital Markets Days - November 1-2, 2010 7
Slide 8: Aitik copper mine expansion
Aitik copper mine expansion Status Fundamentals On time Double ore production – Mill section 1 and 2 in production – High productivity – Inaugurated 31 August – Profitable mining of lower grades On capex – Average reserve grade 0,25% Not yet stable, actions crushers – Cu annual production approx +50
Slide 9: Maurliden Mine
Maurliden Mine Quantity, ktonnes, Au Ag Cu Zn 2009 (g/t) (g/t) (%) (%) Maurliden Östra Proven Probable 1,200 0.7 16 1.3 0.7 Maurliden Proven 1,340 1.3 51 0.2 3.6 Probable Capital Markets Days - November 1-2, 2010 9
Slide 10: Boliden area ramp-up
Boliden area ramp-up On time – Tailing capacity – Maurliden push-back ongoing – Maurliden Östra started – Two lines in production On capex Capital Markets Days - November 1-2, 2010 10
Slide 11: Electronics recycling plant, Rönnskär
Electronics recycling plant, Rönnskär Capital Markets Days - November 1-2, 2010 11
Slide 12: E-scrap expansion
E-scrap expansion Investment rationale Brief description of investment Strong increase in e-scrap supply Increases capacity from 45 to 120 kt/y Increases profitability and reduces Investment of approx. SEK 1.3 billion volatility Expected start up 2011/12 Tight copper concentrate market Increases met
Slide 13: Corporate social responsibility
Corporate social responsibility Capital Markets Days - November 1-2, 2010 13
Slide 14: Sustainability is priority one
If stability is of fundamental importance for Boliden, it is evident that sustainability is priority one Capital Markets Days - November 1-2, 2010 14
Slide 15: Boliden's safety work is on a good trend
Boliden’s safety work is on a good trend 18,0 LTI in Boliden 2002-2010ytd 15,7 16,0 14,0 13,0 11,9 12,0 11,1 11,2 9,9 10,0 9,1 8,0 6,5 6,0 5,5 4,0 Trend 2,0 0,0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Capital Markets Days - November 1-2, 2010 15
Slide 16: Environmental emissions below budget levels and concession values
Our environmental emissions are below budget levels and concession values SO2 to to Metals airair t kg kg Metals to water kgkg Metals Metals to air to water kg Metals to air 7000 20 000 800 16 000 30 000 Odda Kokkola 1 600 Bergsöe Actual Harjavalta Rönnskär Budget Actual Budget Actual Budget 18 000
Slide 17: Revised approach when working with our business partners
Revised approach when working with our business partners CSR Criteria Group Instructions Risk assessments Audit Follow up Questionnaire Evaluation Follow up Capital Markets Days - November 1-2, 2010 17
Slide 18: Survey sent to business partners
Survey sent to 112 business partners Capital Markets Days - November 1-2, 2010 18
Slide 19: Capital Markets Days - November 1-2, 2010
Capital Markets Days - November 1-2, 2010 19
Slide 20: Customer audit September 2010
Customer audit September 2010 Capital Markets Days - November 1-2, 2010 20
Slide 21: Lost Time Injuries (LTI) reduced 95%
Lost Time Injuries (LTI) reduced 95% Rönnskär – 1982-2010 per million hours Capital Markets Days - November 1-2, 2010 21
Slide 22: Emissions to air reduced 90-99%
Emissions to air reduced 90-99% Rönnskär – 1970-2009 Capital Markets Days - November 1-2, 2010 22
Slide 23: Emissions to water reduced 99,9%
Emissions to water reduced 99,9% Rönnskär - metal discharge* 1970 - 2009 * Copper, lead, zinc, arsenic Capital Markets Days - November 1-2, 2010 23
Slide 24: Boliden produces metals that make modern life work
Boliden produces metals that make modern life work Capital Markets Days - November 1-2, 2010 24