Boliden Ab · OMXSTO:BOL
Boliden Ab — Q1 2003 Earnings Presentation
14 slides from Boliden Ab's earnings presentation, May 6, 2003
Slide 1: Interim Report January – March 2003
Boliden Interim Report January – March 2003 Jan Johansson – President & CEO May 6, 2003 1 May 6, 2003
Slide 2: LME Copper Price and Stock
LME Copper Price and Stock Boliden USc/t Tonne 95 1000000 90 900000 85 800000 80 700000 75 600000 70 500000 65 400000 60 300000 2 May 6, 2003
Slide 3: LME Zinc Price and Stock
LME Zinc Price and Stock Boliden USc/t Tonne 50 800000 45 650000 40 500000 35 350000 30 200000 1 2 01 02 03 1 2 01 02 1 2 1 2 3 -0 -0 l-0 l-0 -0 -0 -0 -0 -0 n- n- n- p- p- ov ov ay ay ar ar ar Ju Ju Ja Ja Ja Se Se M M M N N M M 3 May 6, 2003
Slide 4: LBMA Gold Price
LBMA Gold Price Boliden USD/oz 390 370 350 330 310 290 270 250 4 May 6, 2003
Slide 5: Copper and Zinc Consumption Development
Copper and Zinc Consumption Development Boliden The demand of Copper and Zinc has shown a stable historical growth. The forecast suggests that the development will continue. kt World Refined Copper Consumption Development kt World Slab Zinc Consumption Development 10000 35000 Trend Growth 2000 - 201
Slide 6: Metal Prices
Metal Prices Boliden Metal prices First quarter Change in (average LME/LBMA) 2003 2002 % Copper (USD/lb) 0,75 0,71 6 Zinc (USD/lb) 0,36 0,36 – Lead (USD/lb) 0,21 0,22 -5 Gold (USD/oz) 353 290 22 Silver (USD/oz) 4,67 4,49 4 • Lower production at mines world-wide • Low economic growth • Lower producti
Slide 7: Highlights first quarter 2003
Highlights first quarter 2003 Boliden • Boliden reports an improved profit after financial items. The profit totalled SEK 54 million for the first quarter of 2003, compared to SEK 17 million for the first quarter of 2002 • The cash flow for the reporting period was SEK 31 million (SEK -328m) • Some
Slide 8: Sensitivity Analysis 2003
Sensitivity Analysis 2003 Boliden Price Effect on Price Effect on changes +/- result +/- changes result (MSEK) (MSEK) Copper 0.10 USD per lb. 175 TC Copper +10 USD per ton +19 Zinc 0.10 USD per lb. 245 RC Copper +1 cent per lb. +13 Lead 0.10 USD per lb. 87 TC Zinc +10 USD per ton -30 Gold 10.00 USD
Slide 9: The Boliden Group Q1 2003
The Boliden Group Q1 2003 Boliden • Increased production at the mines • Higher metal prices • Productivity increases. Cost cutting at the operations • Early terminations of the dollar futures • Lower exchange rate for the US dollar Mining Smelting Fabrication Operations Operations • Lower smelting a
Slide 10: Mining Operations
Mining Operations Boliden • Increased production • Productivity improvements • Increased metal prices • Lower smelting and refining charges • Positive effects of action plan at Myra Falls • Lappberget • Lower exchange rate for the US dollar • Lower gold grades at Aitik and the Boliden Area 10 May 6,
Slide 11: Smelter Operations
Smelter Operations Boliden • Higher metal prices • Increased sales at Bergsöe • Increased processing of internal mine concentrates and secondary raw materials • Lower smelting and refining charges • Lower production due to a shortfall of the external mine concentrates • Valuation of process stock at
Slide 12: Fabrication
Fabrication Boliden • Extensive efficiency- improvement programmes – costs and capital • Weak demand for copper and brass products • Pressure on prices, especially for copper products 12 May 6, 2003
Slide 13: Hedging
Hedging Boliden Currency futures: Exchange rates USD/SEK 2003 55% to USD/SEK 10.74 2004 50% to USD/SEK 10.64 11.1 2005 20% to USD/SEK 10.25 10.7 10.3 9.9 Options with Floor 9.5 2003 25% to strike 9.00 9.1 2004 17% to strike 9.00 8.7 8.3 Options with Floor/Ceiling 2003 17% to strike 8.30 9.17-9.50 re
Slide 14: Summary
Summary Boliden • Improved earnings after financial items. • Improved cash flow. • Some of Boliden’s hedged dollar revenues have been closed out, thereby strengthening both the cash flow and the Group’s shareholders’ equity. • Cost cutting and productivity increases at the operations • Mines – Posit