Slide 1: Full Year Report 2002
Boliden Full Year Report 2002 February 18, 2003 1 February 18, 2003
Slide 2: LME Copper Price and Stock
LME Copper Price and Stock Boliden USc/t tonnes 90 1000000 85 900000 80 800000 75 700000 70 600000 65 500000 60 400000 2 February 18, 2003
Slide 3: LME Zinc Price and Stock
LME Zinc Price and Stock Boliden USc/t tonnes 50 800000 45 650000 40 500000 35 350000 30 200000 3 February 18, 2003
Slide 4: LME Gold Price
LME Gold Price Boliden USD/oz 390 370 350 330 310 290 270 250 4 February 18, 2003
Slide 5: Metal Prices
Metal Prices Boliden Metal prices Full year Change Fourth quarter Change (average LME/LBMA) 2002 2001 in % 2002 2001 in % Copper (USD/lb.) 0.71 0.72 -1 0.71 0.65 9 Zinc (USD/lb.) 0.35 0.40 -12 0.35 0.35 - Lead (USD/lb.) 0.21 0.22 -5 0.20 0.21 -5 Gold (USD/oz) 310 271 14 323 278 16 Silver (USD/oz) 4.
Slide 6: Sensitivity Analysis 2003
Sensitivity Analysis 2003 2003 Boliden % SEK million Copper +10 + 135 Zinc +10 + 91 Lead +10 + 22 Gold +10 + 54 Silver +10 + 39 USD/SEK +10 + 322 TC Copper +10 + 10 RC Copper +10 + 7 TC Zinc +10 - 43 TC Lead +10 - 6 TC/RC – Treatment and refining charges 6 February 18, 2003
Slide 7: Highlights 2002
Highlights 2002 Boliden • Boliden reports a profit after financial items of SEK 111 million (SEK -3,756 m) for the full year 2002 • The profit after financial items for the fourth quarter of 2002 totalled SEK 78 million (SEK -320 m) • Cash flow for the fourth quarter 2002 improved significantly to S
Slide 8: Turnover, Results and Cash Flow
Turnover, Results and Cash Flow Boliden The Boliden Group Full year Change Fourth quarter Change SEK million 2002 2001 in % 2002 2001 in % Turnover 9 556 10 250 -7 2 304 2 426 -5 Operating result 414 -949 - 154 -78 - Operating margin (%) 4.3 -9.3 - 6.7 -3.2 - Earnings after net financial items 111 -
Slide 9: Metal Production
Metal Production Boliden Full year Change Fourth quarter Change Mines total 2002 2001 in % 2002 2001 in % Copper (tonnes) 78 906 87 418 -10 23 039 19 599 18 Zinc (tonnes) 150 990 141 609 7 41 869 29 685 41 Lead (tonnes) 18 240 17 243 6 4 398 3 548 24 Gold (ounces) 163 128 165 015 -1 41 053 43 166 -5
Slide 10: Mining Operations
Mining O Operations perations Boliden Mines Full year Change Fourth quarter Change (SEK million) 2002 2001 in % 2002 2001 in % Turnover 2 266 2 197 3 582 520 12 Operating result 257 -300 - 112 -18 - Depreciation 287 477 -40 70 78 -10 Investments 313 474 -34 126 127 -1 Increased production Lower meta
Slide 11: Mining Areas
Mining Areas Boliden AITIK BOLIDEN AREA • Highest ore production ever • Increased production at all mines recorded • Improved milling efficiency • Lower grades (gradual improvement during the latter half • The Storliden Mine of the year • Exploration sucesses at the • Increased production capacity K
Slide 12: Mines – Cash Cost 1997-2002
Mines – Cash Cost 1997-2002 Boliden Boliden Area (Zn) Garpenberg (Zn) Myra Falls (Zn) Aitik (Cu) 50 75 45 70 40 65 35 60 Zn c/lb Cu c/lb 30 55 25 50 20 45 15 40 1997 1998 1999 2000 2001 2002 12 February 18, 2003
Slide 13: Metal Production
Metal Production Boliden Full year Change Fourth quarter Change Smelters total 2002 2001 in % 2002 2001 in % Copper (tonnes) 224 402 216 237 4 56 254 57 368 -2 Zinc clinker (tonnes) 34 685 35 095 -1 9 159 8 336 10 Lead (tonnes) 17 753 31 313 -43 4 816 8 922 -46 Gold (kg) 15 562 14 102 10 3 703 4 744
Slide 14: Smelter Operations
Smelter Operations Boliden Smelters Full year Change Fourth quarter Change (SEK million) 2002 2001 in % 2002 2001 in % Turnover 6 587 6 710 -2 1 527 1 724 -11 Operating result 248 111 123 52 107 -51 Depreciation 290 227 28 73 60 22 Investments 128 152 -16 59 43 37 Lower metal prices Increased produc
Slide 15: Fabrication
Fabrication Boliden Fabrication Full year Change Fourth quarter Change (SEK million) 2002 2001 in % 2002 2001 in % Turnover 2 347 2 412 -3 628 563 12 Operating result -6 14 - -10 8 - Depreciation 55 57 -4 13 14 -7 Investments 55 25 120 19 7 171 Extensive efficiency-improvement Weak and decreasing de
Slide 16: Hedging
Hedging Boliden 2002 100% to USD/SEK 10:77 Exchange rates USD/SEK 2003 80% to USD/SEK 10:68 11.1 10.7 10.3 2004 80% to USD/SEK 10:61 9.9 9.5 2005 60% to USD/SEK 10:33 9.1 Jan-Jul 8.7 Floor 8.3 2003-- 2004-Q3 25% to USD/SEK 9:00 16 February 18, 2003
Slide 17: Summary 2002
Summary 2002 Boliden • Improved earnings after financial items for both year 2002 and for the fourth quarter 2002, compared to the corresponding periods of the previous year • Cash flow for the fourth quarter 2002 improved significantly to SEK 466 million. Cash flow for full year totalled SEK -14 mi