Boliden Ab · OMXSTO:BOL
Boliden Ab — Q1 2022 Earnings Presentation
28 slides from Boliden Ab's earnings presentation, Apr 28, 2022
Slide 1: Boliden – Metals for generations to come
Boliden – Metals for generations to come Q1 Interim Report 2022 Mikael Staffas, President and CEO Håkan Gabrielsson, CFO 2022-04-28 Q1 2022 Q1 INTERIM REPORT 2022 1
Slide 2: Q1 2022 – High metal prices but substantial cost inflation
Q1 2022 – High metal prices but substantial cost inflation KEY HIGHLIGHTS PROJECTS ▪ Strong prices & terms ▪ Aitik dam project announced ▪ Inflation pressure ▪ Odda and Kristineberg ▪ Higher milled volume expansions on plan but lower grades in Mines ▪ Slow ramp up of Harjavalta ▪ Stable production i
Slide 3: Q1 2022 EBIT development Group
Q1 2022 EBIT* development Group EBIT excl. PIR MSEK Rolling, MSEK ▪ Group 4,466 (2,449) MSEK 5,000 13,500 4,500 12,000 4,000 10,500 ▪ Mines 3,115 (1,631) MSEK 3,500 9,000 3,000 7,500 2,500 6,000 ▪ Smelters 1,378 (949) MSEK 2,000 1,500 4,500 1,000 3,000 500 1,500 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 4: ESG is key in our purpose, vision and values
ESG is key in our purpose, vision and values CO2 Intensity 1.0 Q1 2022 0.8 ▪ Lost Time Injury* 5.2 (6.5) 0.6 ▪ Sick leave 7.4 (5.2) 0.4 ▪ Carbon dioxide intensity of 0.64 (0.70) 0.2 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2019 2020 2021 2022 *Per million hours worked, including c
Slide 5: Boliden price index at a historic high
Boliden price index* Boliden price index at a historic high 225 200 175 150 125 ▪ Strong increase in metal prices 100 75 50 25 ▪ Improved currencies 0 ▪ Increased benchmark Zn TC 225 200 175 150 125 100 75 50 25 0 *Index 100 = 1 January 2017 Q1 INTERIM REPORT 2022 5
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 5,000 40,000 4,500 35,000 10,000 4,000 30,000 3,500 8,000 3,000 25,000 6,000 2,500 20,000 2,000 15,000 4,000 1,500 10,000 1,000 2,000 500 5,000 0 0 0 Source: Wood Mackenzie 2022 Composite C1
Slide 7: Mines – Q1 2022 production
Metal content, Ktonnes Copper Mines – Q1 2022 production 40 30 Aitik 20 ▪ Milled volume 10.4 (8.5) Mtonnes 10 ▪ High sick leave at the start of the quarter 0 ▪ Cu grade 0.22 (0.22) % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2019 2020 2021 2022 Garpenberg Zinc ▪ Milled volume 720 (817)
Slide 8: Smelters – Q1 2022 production
Metal production, Ktonnes Copper Smelters – Q1 2022 production 120 100 80 60 Harjavalta 40 20 ▪ Slow ramp up of new Ni line 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 ▪ 4-day strike 2018 2019 2020 2021 2022 Rönnskär Zinc ▪ Increased feed 150 ▪ Improved availability of electronic secondary
Slide 9: Financial summary
Financial summary MSEK Q1 2022 Q1 2021 Q4 2021 Revenues 21,812 17,083 17,755 EBITDA 6,416 4,100 4,722 EBIT 5,038 2,779 3,214 EBIT excl. PIR 4,466 2,449 2,835 Investments 1,537 1,087 1,971 Free cash flow 674 2,165 2,008 Earnings per share, SEK 14.51 7.96 9.27 Q1 INTERIM REPORT 2022 9
Slide 10: EBIT excl. PIR by Business Area
EBIT excl. PIR by Business Area MSEK Q1 2022 Q1 2021 Q4 2021 Mines 3,115 1,631 3,002 Smelters 1,378 949 553 Other/eliminations -27 -131 -721 The Group 4,466 2,449 2,835 Mines Smelters MSEK Rolling, MSEK Rolling, MSEK MSEK 4,500 12,000 1,500 5,000 4,000 10,000 3,500 1,200 4,000 3,000 8,000 900 3,000
Slide 11: EBIT deviation Q1 2022 vs Q1 2021
EBIT deviation Q1 2022 vs Q1 2021 EBIT excl. PIR MSEK Higher base metal prices Q1 2021 2,449 Stronger USD Prices and terms 2,256 Whereof currency 779 Higher milled volume Volumes 176 Lower grades in Kevitsa Lower volumes in Harjavalta Costs -393 Positive internal profit elimination Depreciation -35
Slide 12: EBIT deviation Q1 2022 vs Q4 2021
EBIT deviation Q1 2022 vs Q4 2021 EBIT excl. PIR MSEK Q4 2021 2,835 Higher metal prices Stronger USD Prices and terms 1,294 Whereof currency 341 Higher production in Smelters Lower milled volume and grades Volumes 51 Positive internal profit elimination Costs 147 Depreciation 153 Other -15 Less main
Slide 13: Cash flow
Cash flow MSEK Q1 2022 Q1 2021 Q4 2021 EBITDA excl. PIR 5,844 3,769 4,343 Cash flow from working capital -3,024 -122 351 Cash flow from investments -1,536 -1,076 -1,986 Financial items -46 -60 -64 Tax paid -620 -359 -634 Other 57 13 -1 Free cash flow 674 2,165 2,008 Q1 INTERIM REPORT 2022 13
Slide 14: Capital structure
Capital structure Net debt & Gearing SEK bn % SEK bn 31 mar 2022 31 mar 2021 31 Dec 2021 8 20 Total Assets 88.0 74.8 80.5 7 6 15 Capital Employed 57.5 51.7 53.4 5 Equity 55.2 48.2 50.9 4 10 Net debt -1.5 0.1 -0.9 3 Net debt/equity, % -3 0 -2 2 5 1 Net reclamation 0 0 liability/equity, % 5 5 5 -1 Ave
Slide 15: Financing activities in 2022
Financing activities in 2022 ▪ February – entered a 100 MEUR loan with Nordic Investment Bank (NIB) ‒ Final maturity Feb 2030, 6-year average tenor, loan is fully utilized. ‒ The loan is based on the investment in the Odda smelter, Norway. ▪ April – entered an 850 MEUR Revolving Credit Facilities ag
Slide 16: Substantial cost inflation
Substantial cost inflation ▪ Inflationary pressure mainly on energy, bulk, consumables and transports ▪ More than 10 % inflation year-on-year ‒ Excluding wage costs ▪ Extended lead-times managed without impact on production ▪ Inflation and extended lead-times also visible in investment projects Q1 I
Slide 17: Aitik dams
Aitik dams ▪ Static liquefaction need to be included ‒ Global tailings standard ▪ New geotechnical information ‒ Layers prone to static liquefaction detected ▪ Dams E-F and G-H affected ‒ Raising of dam and depositing stopped ▪ Continued production with deposits in other areas ‒ 24 months ▪ Need to
Slide 18: 2022 Capital Markets Day
2022 Capital Markets Day Boliden’s Capital Markets Day 2022 will be held in Stockholm on November 15, followed by a site-visit on November 16. For more information please contact: investorrelations@boliden.com Q1 INTERIM REPORT 2022 18
Slide 19: Outlook
Outlook ▪ Aitik ‒ 2022: Cu 0.20 %, Au 0.10 g/tonne ▪ Garpenberg ‒ 2022: Zn 3.6 %, Ag 110 g/tonne ▪ Kevitsa ‒ 2022: Cu slightly below reserve grade ▪ Tara ‒ Q2 2022: Affected by the Q4 2021 water inflow ▪ Maintenance shutdowns ‒ 2022: -450 (-560) MSEK ▪ Inflation pressure ‒ More than 10 % year on yea
Slide 20: 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 Q1 INTERIM REPORT 2022 20
Slide 21: APPENDIX
APPENDIX Q1 INTERIM REPORT 2022 21
Slide 22: Financing
Financing Net Debt MSEK Q1 2022 Q1 2021 Q4 2021 Debt to credit institutions 7,851 5,994 5,993 Other interest bearing debt 238 193 169 Pensions 1,176 1,165 1,180 Interest bearing assets -9 -9 -9 Cash -10,769 -7,211 -8,251 Total -1,512 132 -918 Net Payment Capacity MSEK Q1 2022 Q1 2021 Q4 2021 Not uti
Slide 23: Loan structure
Loan structure Maturity of which MSEK Reported value utilized < 1 year 1-5 years > 5 years Revolving credit facility 7,961 - - - - Bilateral loans 6,298 6,298 162 5,102 1,034 Bonds 750 750 - 750 - Commercial papers 803 803 803 - - Leases, other 238 238 62 176 - Total 8,089 1,027 6,028 1,034 Q1 INTER
Slide 24: Preliminary priced volumes
Preliminary priced volumes Preliminary priced volumes in Mines* 31 mar 2022 Copper, ktonnes 3.4 Zinc, ktonnes 21.0 Nickel, ktonnes 2.5 Lead, ktonnes 2.5 Silver, kg 55,130 Gold, kg 6 Palladium, kg 167 Platinum, kg 243 * Preliminary priced volumes of metal in concentrate in Mines Q1 INTERIM REPORT 202
Slide 25: 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 2022 2017 2018 2019 2020 2021 2022 Contract TC - annual and mid-year benchmark Contract TC - realized Standard grade spot TC Spo
Slide 26: Base metal prices
Base metal prices USD/tonne ktonnes USD/tonne ktonnes Copper Nickel 15,000 2,400 50,000 2,500 2,000 40,000 2,000 10,000 1,600 30,000 1,500 1,200 5,000 800 20,000 1,000 400 10,000 500 0 0 0 0 LME inventory Shanghai inventory Comex inventory LME inventory Price Price Q avg Price Price Q avg USD/tonne
Slide 27: Gold, silver and lead prices
Gold, silver and lead prices USD/tonne USD/tr.oz. Lead Silver 3,000 35 2,500 30 2,000 25 20 1,500 15 1,000 10 500 5 0 0 Price Price Q avg Price Price Q avg USD/tr.oz. Gold 2,500 2,000 Average price in Q1 2022 vs period 1,500 Q4 2021 Q3 2021 Q2 2021 Q1 2021 1,000 Gold 5% 5% 3% 4% 500 Silver 3% -1% -1
Slide 28: 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