Boliden Ab · OMXSTO:BOL
Boliden Ab — Q3 2022 Earnings Presentation
27 slides from Boliden Ab's earnings presentation, Oct 20, 2022
Slide 1: Boliden – Metals for generations to come
Boliden – Metals for generations to come Q3 Interim Report 2022 Mikael Staffas, President and CEO Håkan Gabrielsson, CFO 2022-10-20 Q3 2022 Q3 INTERIM REPORT 2022 1
Slide 2: Q3 2022 – Strong results despite high inflation
Q3 2022 – Strong results despite high inflation KEY HIGHLIGHTS PROJECTS ▪ Favorable currencies ▪ Good progress in Odda, Kristineberg ▪ Strong production in Mines but lower and Aitik dam projects grades ▪ Improved ramp-up of ▪ Lower zinc production, but positive Harjavalta Ni-line contribution from s
Slide 3: Q3 2022 EBIT development Group
Q3 2022 EBIT* development Group EBIT excl. PIR MSEK Rolling, MSEK ▪ Group 3,484 (2,419) MSEK 5,000 15,000 4,500 13,500 4,000 12,000 ▪ Mines 1,964 (1,936) MSEK 3,500 10,500 3,000 9,000 2,500 7,500 ▪ Smelters 1,564 (611) MSEK 2,000 1,500 6,000 4,500 1,000 3,000 500 1,500 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
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 2022 0.8 ▪ Lost Time Injury* 6.7 (6.8) 0.6 ▪ Sick leave 4.6 (3.9) 0.4 ▪ Carbon dioxide intensity of 0.59 (0.64) 0.2 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2019 2020 2021 2022 *Per million hours worked, inclu
Slide 5: Boliden price index
Boliden price index* Boliden price index 225 200 175 150 ▪ Strong, but deteriorating, average prices 125 and terms 100 75 ‒ Strong USD 50 ‒ Weaker metal and by-product prices vs. Q2 2022 25 0 ▪ Increasing spot TCs towards end of Q3 2022 225 ‒ Average spot TCs lower Q3 vs Q2 200 175 ‒ Large announced
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 30,000 4,500 10,000 25,000 4,000 3,500 8,000 20,000 3,000 6,000 2,500 15,000 2,000 4,000 10,000 1,500 1,000 2,000 5,000 500 0 0 0 Source: Wood Mackenzie 2022 Composite C1 cash cost* dat
Slide 7: Mines – Q3 2022 production
Metal content, Ktonnes Copper Mines – Q3 2022 production 40 30 Aitik 20 ▪ Milled volume 11.2 (10.1) Mtonnes 10 ▪ Cu grade 0.21 (0.22) % 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Garpenberg 2018 2019 2020 2021 2022 ▪ Milled volume 720 (692) Ktonnes Zinc ▪ Zn grade 3.2 (3.8) %, Ag gra
Slide 8: Smelters – Q3 2022 production
Metal production, Ktonnes Copper Smelters – Q3 2022 production 120 100 80 Harjavalta 60 ▪ Strong production 40 20 ▪ Improved ramp-up of Ni-line 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2019 2020 2021 2022 Rönnskär ▪ Improved feed of electronic secondary raw materials Zinc ▪ St
Slide 9: Financial summary
Financial summary MSEK Q3 2022 Q3 2021 Q2 2022 Revenues 19,480 15,906 21,568 EBITDA 5,013 3,684 5,624 EBIT 3,550 2,305 4,078 EBIT excl. PIR 3,484 2,419 4,532 Investments 2,532 1,538 2,242 Free cash flow 97 962 2,038 Earnings per share, SEK 9.90 6.57 11.54 Q3 INTERIM REPORT 2022 9
Slide 10: EBIT excl. PIR by Business Area
EBIT excl. PIR by Business Area MSEK Q3 2022 Q3 2021 Q2 2022 Mines 1,964 1,936 2,727 Smelters 1,564 611 1,404 Other/eliminations -44 -129 401 The Group 3,484 2,419 4,532 Mines Smelters MSEK Rolling, MSEK Rolling, MSEK MSEK 4,500 12,000 1,800 6,000 4,000 10,000 1,500 5,000 3,500 3,000 8,000 1,200 4,0
Slide 11: Inflation
Inflation ▪ Opex inflation (excluding personnel costs and electricity) ‒ Close to 20% year on year in Q3 2022 ‒ Energy (excluding electricity) and chemicals Q3 INTERIM REPORT 2022 11
Slide 12: EBIT deviation Q3 2022 vs Q3 2021
EBIT deviation Q3 2022 vs Q3 2021 EBIT excl. PIR MSEK Stronger USD Q3 2021 2,419 Higher by-product prices Higher metal premium Prices and terms 1,917 Whereof currency 1,366 Higher milled volume offset by lower grades Volumes -40 Costs -904 -55 Inflation Depreciation Higher milled volume Other 148 Wa
Slide 13: EBIT deviation Q3 2022 vs Q2 2022
EBIT deviation Q3 2022 vs Q2 2022 EBIT excl. PIR MSEK Q2 2022 4,532 Lower metal prices partly offset by stronger USD Prices and terms -674 Whereof currency 439 Volumes -673 Lower grades Lower Zn production in Smelters Costs 49 Depreciation 95 155 Less planned maintenance in Smelters Other Seasonal e
Slide 14: Cash flow
Cash flow MSEK Q3 2022 Q3 2021 Q2 2022 EBITDA excl. PIR 4,946 3,798 6,079 Cash flow from working capital -1,696 -841 -1,204 Cash flow from investments -2,516 -1,540 -2,242 Financial items -147 -61 -94 Tax paid -628 -404 -539 Other 137 9 38 Free cash flow 97 962 2,038 Q3 INTERIM REPORT 2022 14
Slide 15: Capital structure
Capital structure Net debt & Gearing SEK bn % SEK bn 30 Sep 2022 30 Sep 2021 31 Dec 2021 8 20 Total Assets 91.5 75.4 80.5 7 6 15 Capital Employed 63.1 52.8 53.4 5 Equity 55.1 48.3 50.9 4 10 Net debt 3.7 1.1 -0.9 3 Net debt/equity, % 7 2 -2 2 5 1 Net reclamation 0 0 liability/equity, % 5 5 5 -1 Avera
Slide 16: Issuance of green bonds aimed at sustainable zinc production
Issuance of green bonds aimed at sustainable zinc production ▪ Green bonds for a total of SEK 2 billion ▪ Support expansion investments in Odda with the aim of increasing zinc production with a low climate footprint ▪ The bonds were issued under Boliden's MTN program and have maturities of three yea
Slide 17: 2022 Capital Markets Day
2022 Capital Markets Day Boliden is pleased to invite investors, analysts Tuesday 15 November 2022 11.30 CET Registration, refreshments and exhibition and financial media to our Capital Markets 12.30 CET Presentations by Group Management: Day on Tuesday 15 November 2022 at IVAs Mikael Staffas, Presi
Slide 18: Outlook
▪ Aitik Outlook ‒ 2022: Cu 0.20 %, Au 0.10 g/tonne ‒ 2023: Cu 0.17 %, Au 0.07 g/tonne ▪ Garpenberg ‒ 2022: Zn 3.6 %, Ag 115 g/tonne ‒ 2023: Zn 3.6 %, Ag 100 g/tonne ‒ 2023: 3.3 Mtonnes milled production ▪ Kevitsa ‒ 2023: Grades slightly below average ‒ 2023: 10 Mtonnes milled production ▪ Maintenanc
Slide 19: 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 2022 19
Slide 20: APPENDIX
APPENDIX Q3 INTERIM REPORT 2022 20
Slide 21: Financing
Financing Net Debt MSEK Q3 2022 Q3 2021 Q2 2022 Debt to credit institutions 9,229 5,987 7,957 Other interest bearing debt 217 183 225 Pensions 1,195 1,178 1,184 Interest bearing assets -1 -9 -9 Cash -6,953 -6,258 -5,677 Total 3,688 1,081 3,681 Net Payment Capacity MSEK Q3 2022 Q3 2021 Q2 2022 Not ut
Slide 22: Loan structure
Loan structure Maturity of which MSEK Reported value utilized < 1 year 1-5 years > 5 years Revolving credit facility 9,280 - - - - Bilateral loans 6,479 6,479 343 5,287 849 Bonds 2,750 2,750 - 2,750 - Commercial papers - - - - - Leases, other 217 217 63 154 - Total 9,446 406 8,191 849 Q3 INTERIM REP
Slide 23: Preliminary priced volumes
Preliminary priced volumes Preliminary priced volumes in Mines* 30 Sep 2022 Copper, ktonnes 9.2 Zinc, ktonnes 18.2 Nickel, ktonnes 2.7 Lead, ktonnes 8.3 Silver, kg 61,567 Gold, kg 977 Palladium, kg 268 Platinum, kg 378 * Preliminary priced volumes of metal in concentrate in Mines Q3 INTERIM REPORT 2
Slide 24: Copper and zinc treatment charges
Copper and zinc treatment charges Copper TC Zinc TC USD/tonne USD/tonne concentrate concentrate 120 350 300 100 250 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 Standard grade spot TC Contract TC - realized Spo
Slide 25: 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 26: 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 Q3 2022 vs period 1,500 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Gold -8% -8% -4% -3% 1,000 Silver -15% -20%
Slide 27: 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