Boliden Ab · OMXSTO:BOL
Boliden Ab — Q2 2022 Earnings Presentation
28 slides from Boliden Ab's earnings presentation, Jul 21, 2022
Slide 1: Boliden – Metals for generations to come
Boliden – Metals for generations to come Q2 Interim Report 2022 Mikael Staffas, President and CEO Håkan Gabrielsson, CFO 2022-07-21 Q2 2022
Slide 2: Q2 2022 – Strong results despite major maintenance stops
Q2 2022 – Strong results despite major maintenance stops KEY HIGHLIGHTS PROJECTS ▪ Strong prices and terms ▪ Odda expansion on track ▪ Stable production in Mines ▪ Inflation raises Capex to 850 MEUR ▪ Major planned maintenance in Smelters ▪ Kristineberg expansion on track ▪ Key environmental permits
Slide 3: Q2 2022 EBIT development Group
Q2 2022 EBIT* development Group EBIT excl. PIR MSEK Rolling, MSEK ▪ Group 4,532 (2,616) MSEK 5,000 15,000 4,500 13,500 4,000 12,000 ▪ Mines 2,727 (2,192) MSEK 3,500 10,500 3,000 9,000 2,500 7,500 ▪ Smelters 1,404 (789) 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 Q2 2022 0,8 ▪ Lost Time Injury* 3.2 (3.5) 0,6 ▪ Sick leave 4.5 (4.8) 0,4 ▪ Carbon dioxide intensity of 0.58 (0.65) 0,2 0,0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 2020 2021 2022 *Per million hours worked, includin
Slide 5: Boliden price index
Boliden price index* Boliden price index 225 200 175 150 125 ▪ Strong average prices and terms 100 75 50 25 ▪ Weaker metal prices towards the end 0 of the quarter ▪ Strong metal premiums and by- 225 product prices 200 175 150 ▪ Increased spot Cu and Zn TCs 125 100 75 50 25 0 *Index 100 = 1 January 2
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 – Q2 2022 production
Metal content, Ktonnes Copper Mines – Q2 2022 production 40 30 Aitik 20 ▪ Milled volume 11.2 (10.3) Mtonnes 10 ▪ Cu grade 0.21 (0.21) % 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Garpenberg 2018 2019 2020 2021 2022 ▪ Milled volume 804 (791) Ktonnes Zinc ▪ Zn grade 3.6 (3.8) %, Ag grade
Slide 8: Smelters – Q2 2022 production
Metal production, Ktonnes Copper Smelters – Q2 2022 production 120 100 80 60 Harjavalta 40 20 ▪ Major maintenance stop 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 ▪ Slow ramp up of new Ni line 2018 2019 2020 2021 2022 Rönnskär Zinc ▪ Major maintenance stop 150 ▪ Improved availability of
Slide 9: Financial summary
Financial summary MSEK Q2 2022 Q2 2021 Q1 2022 Revenues 21,568 17,891 21,812 EBITDA 5,624 4,197 6,416 EBIT 4,078 2,785 5,038 EBIT excl. PIR 4,532 2,616 4,466 Investments 2,242 1,393 1,537 Free cash flow 2,038 2,013 674 Earnings per share, SEK 11.54 8.00 14.51 Q2 INTERIM REPORT 2022 9
Slide 10: EBIT excl. PIR by Business Area
EBIT excl. PIR by Business Area MSEK Q2 2022 Q2 2021 Q1 2022 Mines 2,727 2,192 3,115 Smelters 1,404 789 1,378 Other/eliminations 401 -364 -27 The Group 4,532 2,616 4,466 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: Inflation
Inflation ▪ Opex Inflation (excluding personnel costs) ‒ 15% year on year in Q2 2022 ‒ Energy and Chemicals ▪ Capex inflation slightly higher than Opex inflation ▪ 2022 Capex guidance unchanged ‒ Longer lead times Q2 INTERIM REPORT 2022 11
Slide 12: EBIT deviation Q2 2022 vs Q2 2021
EBIT deviation Q2 2022 vs Q2 2021 EBIT excl. PIR MSEK Stronger USD Higher Zn and byproduct prices Q2 2021 2,616 Higher metal premium Prices and terms 2,325 Whereof currency 1,258 Higher milled volume Volumes 445 Lower grades in Kevitsa Maintenance stops in Smelters Costs -752 Depreciation -110 Other
Slide 13: EBIT deviation Q2 2022 vs Q1 2022
EBIT deviation Q2 2022 vs Q1 2022 EBIT excl. PIR MSEK Q1 2022 4,466 Stronger USD offsets lower metal prices Higher byproduct prices, TC´s and metal premium Prices and terms 299 Whereof currency 613 Volumes 498 Higher milled volume Costs -546 Depreciation -169 Planned maintenance in Smelters Other -1
Slide 14: Cash flow
Cash flow MSEK Q2 2022 Q2 2021 Q1 2022 EBITDA excl. PIR 6,079 4,029 5,844 Cash flow from working capital -1,204 -109 -3,024 Cash flow from investments -2,242 -1,393 -1,536 Financial items -94 -58 -46 Tax paid -539 -466 -620 Other 38 11 57 Free cash flow 2,038 2,013 674 Q2 INTERIM REPORT 2022 14
Slide 15: Capital structure
Capital structure Net debt & Gearing SEK bn % SEK bn 30 Jun 2022 30 Jun 2021 31 Dec 2021 8 20 Total Assets 84.4 73.6 80.5 7 6 15 Capital Employed 59.7 51.7 53.4 5 Equity 51.8 46.3 50.9 4 10 Net debt 3.7 2.0 -0.9 3 Net debt/equity, % 7 4 -2 2 5 1 Net reclamation 0 0 liability/equity, % 5 5 5 -1 Avera
Slide 16: Green Zinc Odda 4.0 – Project update
Green Zinc Odda 4.0 – Project ▪ Planned commissioning Q4 2024 update on time ‒ Ramp up during 2025 ▪ Revised investment estimate due to high inflation ‒ 850 MEUR ▪ Project financials remain highly attractive ‒ Long term power agreement ‒ Strengthened outlook on long-term market fundamentals ‒ Improv
Slide 17: Permits Q2 2022
▪ Rävliden Permits Q2 2022 ‒ On June 30, the necessary permit to mine the Rävliden deposit within the Boliden Area was granted ‒ Planned production start: 2023 ▪ Laver ‒ On June 20, Boliden's request for a judicial review was denied by the Supreme Administrative Court ‒ Boliden plans to submit a new
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 to Harjavalta on November 16. For more information please contact: investorrelations@boliden.com Q2 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: Grades slightly below average ▪ Maintenance shutdowns ‒ Q3 2022: -90 (-310) MSEK ‒ Q4 2022: -50 (-200) MSEK ▪ Inflation pressure ‒ 15% year on year in H2 2022 (excluding personnel costs
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 Q2 INTERIM REPORT 2022 20
Slide 21: APPENDIX
APPENDIX Q2 INTERIM REPORT 2022 21
Slide 22: Financing
Financing Net Debt MSEK Q2 2022 Q2 2021 Q1 2022 Debt to credit institutions 7,957 5,970 7,851 Other interest bearing debt 225 178 238 Pensions 1,184 1,172 1,176 Interest bearing assets -9 -8 -9 Cash -5,677 -5,312 -10,769 Total 3,681 1,999 -1,512 Net Payment Capacity MSEK Q2 2022 Q2 2021 Q1 2022 Not
Slide 23: Loan structure
Loan structure Maturity of which MSEK Reported value utilized < 1 year 1-5 years > 5 years Revolving credit facility 9,078 - - - - Bilateral loans 6,404 6,404 167 5,288 949 Bonds 750 750 - 750 - Commercial papers 803 803 803 - - Leases, other 225 225 62 163 - Total 8,182 1,032 6,201 949 Q2 INTERIM R
Slide 24: Preliminary priced volumes
Preliminary priced volumes Preliminary priced volumes in Mines* 30 Jun 2022 Copper, ktonnes 10.3 Zinc, ktonnes 24.2 Nickel, ktonnes 3.1 Lead, ktonnes 4.7 Silver, kg 62,353 Gold, kg 945 Palladium, kg 243 Platinum, kg 343 * Preliminary priced volumes of metal in concentrate in Mines Q2 INTERIM REPORT
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 Standard grade spot TC Contract TC - realized 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 Q2 2022 vs period 1,500 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Gold 0% 4% 5% 3% 1,000 Silver -6% -3% -7% -
Slide 28: This presentation has been prepared by Boliden for information purposes only
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