Boliden Ab · OMXSTO:BOL
Boliden Ab — Q3 2003 Earnings Presentation
20 slides from Boliden Ab's earnings presentation, Oct 24, 2003
Slide 1: Interim Report January - September 2003
© boliden Boliden = (S) boliden Interim Report January - September 2003 Jan Johansson - President & CEO October 24, 2003
Slide 2: Copper price and stocks
!" # Boliden USc/lb Tonnes 90 1100000 85 1000000 80 900000 75 800000 70 700000 65 600000 60 500000 2 3 02 03 2 2 3 02 03 2 3 l-0 l-0 -0 -0 -0 -0 -0 n- n- p- p- ov ay ay Ju Ju ar ar Ja Ja Se Se N M M M M 2 October 24, 2003
Slide 3: Zinc price and stocks
!" $ # Boliden USc/lb Tonnes 42 800000 40 700000 38 600000 36 500000 34 400000 32 300000 2 3 02 2 03 2 3 02 03 2 3 l-0 l-0 -0 -0 -0 -0 -0 n- n- p- p- ov ay ay Ju Ju ar ar Ja Ja Se Se N M M M M 3 October 24, 2003
Slide 4: Metal Prices
" % Boliden Metal Prices First 9 months Change Third Quarter Change (average LME/LBMA) 2003 2002 in % 2003 2002 in % Copper (USD/lb) 0.77 0.71 8 0.80 0.69 16 Zinc (USD/lb) 0.36 0.35 3 0.37 0.35 6 Lead (USD/lb) 0.22 0.21 5 0.23 0.20 15 Gold (USD/oz) 354 306 16 363 314 16 Silver (USD/oz) 4.75 4.63 3 4
Slide 5: Sensitivity: +10% = 340 MSEK
& " % '" () Boliden 800 700 600 500 +10% = 340 MSEK 400 300 200 100 0 -100 -200 -300 -400 -500 -600 -700 -800 -20% -15% -10% -5% 0% 5% 10% 15% 20% 5 October 24, 2003
Slide 6: Factors affecting earnings
* + % , - . " Boliden • Increased production at the mines • Higher metal prices • Productivity increases cost cutting at the operations • Close-out of dollar futures • Lower exchange rate for the US dollar Mining Smelting Fabrication • Lower smelting and refining charges Operations Operations Explor
Slide 7: Quarterly earnings trend
. / '" () Boliden 5 300 5 200 5 100 5 000 4 900 4 800 4 700 4 600 4 500 4 400 4 300 4 200 I -02 II -02 III -02 IV - I -03 II -03 III -03 02 7 October 24, 2003
Slide 8: Quarterly results trend
% 0 1 '" () Boliden 3 500 3 000 2 500 2 000 1 500 1 000 500 0 I -02 II -02 III -02 IV - I -03 II -03 III -03 02 8 October 24, 2003
Slide 9: Quarterly trend chart
. / 2 % 0 1 Boliden 2.3 2.1 1.9 1.7 1.5 1.3 1.1 0.9 0.7 0.5 I -02 II -02 III -02 IV -02 I -03 II -03 III -03 9 October 24, 2003
Slide 10: Mines: production and earnings factors
" 3 Boliden • Increased production • Productivity improvements • Higher metal prices • Lower smelting and refining charges • Lappberget • Cost trends at Myra Falls continued to develop well • Lower exchange rate for the US dollar • Lower gold production at Aitik and the Boliden Area • Lower grades a
Slide 11: Copper production varies at Aitik, the largest producer
' ) " Boliden Boliden Area Aitik • Copper production varies at Garpenberg Myra Falls Aitik, which is the largest 30 000 producer • Copper production has increased 25 000 in the Boliden Area mainly due to the start up of Storliden and 20 000 priority given to copper ore during 2003 15 000 • However,
Slide 12: Zinc production, Boliden Area, Garpenberg, Myra Falls
$ ' ) " Boliden Boliden Area Garpenberg Myra Falls 50 000 45 000 40 000 35 000 30 000 25 000 20 000 15 000 10 000 5 000 0 I -02 II -02 III -02 IV - I -03 II -03 III -03 02 12 October 24, 2003
Slide 13: Smelters: earnings factors
% Boliden • Higher metal prices • Increased sales at Bergsöe • Increased processing of internal mine concentrates and secondary raw materials • Lower smelting and refining charges Lower exchange rate for the US dollar • Valuation of process stocks at Rönnskär 13 October 24, 2003
Slide 14: Feed copper concentrate (tonnes)
4 #5 - Boliden Feed Copper Concentrate (tonnes) 200 000 195 000 190 000 185 000 180 000 175 000 170 000 165 000 I/02 II/02 III/02 IV/02 I/03 II/03 III/03 14 October 24, 2003
Slide 15: Copper production (tonnes)
4 #5 Boliden Copper (tonnes) 60 000 58 000 56 000 54 000 52 000 50 000 48 000 I/02 II/02 III/02 IV/02 I/03 II/03 III/03 15 October 24, 2003
Slide 16: Fabrication: restructuring of Nordic and British brass markets
- Boliden • Initiative to restructure and consolidate the Nordic and British brass markets • Extensive efficiency-boosting programmes – costs and capital • Weak demand for copper and brass products • Pressure on prices, especially for copper products • Non-recurring costs for restructuring 16 Octobe
Slide 17: Brass and copper tubes transactions
3 6- Boliden Brass Brass LDM LDM JV JV Nordic Nordic Gusum Gusum Brass Sept, 2003 Brass Sept, 2003 Acquisition Acquisition MKM MKM Cerro Cerro July, July, 2003 2003 Copper Copper Tubes Tubes Acquisition Acquisition BCZ BCZ HME HME Jan, Jan, 2002 2002 17 October 24, 2003
Slide 18: USD/SEK currency futures and options
7 3 3 Boliden Currency futures: P/L effect from currency futures, including closed-out contracts: 2003 55% to USD/SEK 10.59 2004 9% to USD/SEK 10.64 2003 74% to USD/SEK 10.59 2005 4% to USD/SEK 10.29 2004 67% to USD/SEK 10.64 2005 28% to USD/SEK 10.29 Options with Floor 2003 25% with floor 9.00 12 2
Slide 19: Summary of the interim period
Boliden • Improved earnings after financial items. • Mines – Higher metal prices and increased production. A new production plan is being implemented at Aitik. Lappberget, an inferred mineral resource of 7.5 million tonnes. • Smelters – Production on a par with levels during corresponding period 200
Slide 20: www.boliden.com
Boliden www.boliden.com 20 October 24, 2003