Boliden Ab · OMXSTO:BOL
Boliden Ab — Q3 2023 Earnings Presentation
28 slides from Boliden Ab's earnings presentation, Oct 20, 2023
Slide 1: Boliden – Metals for generations to come
Boliden – Metals for generations to come Q3 Interim Report 2023 Mikael Staffas, President and CEO Håkan Gabrielsson, CFO 2023-10-20 Q3 2023 Q3 INTERIM REPORT 2023 1
Slide 2: Key investment projects on track
Key investment projects on track KEY HIGHLIGHTS PROJECTS ▪ Challenging prices and terms in Mines ▪ The projects in Odda, Kristineberg ▪ Stable milled volumes except in Aitik and Aitik are proceeding ▪ Low grades according to plan ▪ Strong nickel production in Harjavalta ▪ Production at Rönnskär ramp
Slide 3: Q3 2023 EBIT development Group
Q3 2023 EBIT* development Group EBIT excl. PIR MSEK Rolling, ▪ Group 1,940 (3,484) MSEK 5,000 MSEK 20,000 4,500 18,000 ▪ Mines 750 (1,964) MSEK 4,000 16,000 3,500 14,000 3,000 12,000 2,500 10,000 ▪ Smelters 1,303 (1,564) MSEK 2,000 8,000 1,500 6,000 1,000 4,000 500 2,000 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 4: ESG is key in our purpose, vision and values
ESG is key in our purpose, vision and values CO2 emissions Ktonnes 300 Q3 2023 250 ▪ Lost Time Injury* 3.5 (6.7) 200 150 ▪ Sick leave, 4.6 (4.6) % 100 ▪ CO2 emissions** 175 (208) Ktonnes 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2021 2022 2023 *Per million hours worked,
Slide 5: Market developments
Boliden price index* Market developments 225 200 175 150 125 ▪ Decreasing metal prices year-on-year 100 75 ‒ Especially Zn 50 25 0 ▪ Strong premiums and declining by- product prices ▪ Positive currency development 225 200 ‒ Stronger USD 175 150 125 100 75 50 25 0 *Index 100 = 1 January 2017 Q3 INTER
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 35,000 4,500 10,000 30,000 4,000 3,500 25,000 8,000 3,000 20,000 6,000 2,500 2,000 15,000 4,000 1,500 10,000 1,000 2,000 5,000 500 0 0 0 Source: Wood Mackenzie 2023 Composite C1 cash co
Slide 7: Mines – Q3 2023 production
Metal content, Ktonnes Copper Mines – Q3 2023 production 40 30 Aitik 20 ▪ Milled volume 10.1 (11.2) Mtonnes 10 ▪ Unscheduled maintenance of mill and rope shovel 0 ▪ Cu grade 0.17 (0.21) % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2021 2022 2023 Garpenberg Zinc ▪ Milled volum
Slide 8: Smelters – Q3 2023 production
Metal production, Ktonnes Copper Smelters – Q3 2023 production Harjavalta ▪ Record nickel in matte production ▪ Weak copper feed ▪ Increased utilization rate in the tank house (anodes from Rönnskär) Zinc 150 Rönnskär 100 ▪ Ramp up of production (except electrolysis) 50 Kokkola 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 9: Financial summary
Financial summary MSEK Q3 2023 Q3 2022 Q2 2023 Revenues 19,396 19,480 18,442 EBITDA 3,390 5,013 2,519 EBIT 1,912 3,550 874 EBIT excl. PIR 1,940 3,484 833 Investments 3,591 2,532 4,217 Free cash flow -1,200 97 -3,770 Earnings per share, SEK 4.96 9.90 1.90 Q3 INTERIM REPORT 2023 9
Slide 10: EBIT excl. PIR by Business Area
EBIT excl. PIR by Business Area MSEK Q3 2023 Q3 2022 Q2 2023 Mines 750 1,964 178 Smelters 1,303 1,564 700 Other/eliminations -114 -44 -44 The Group 1,940 3,484 833 Mines Smelters MSEK Rolling, MSEK Rolling, MSEK MSEK 3,500 14,000 2,000 8,000 3,000 12,000 1,600 6,400 2,500 10,000 2,000 8,000 1,200 4,
Slide 11: EBIT deviation Q3 2023 vs Q3 2022
EBIT deviation Q3 2023 vs Q3 2022 EBIT excl. PIR MSEK Q3 2022 3,484 Stronger USD and higher premiums off-setting lower metal prices Prices and terms 53 Lower grades in Mines Whereof currency 305 Tara in care and maintenance Volumes -1,867 Modified business model in Rönnskär Costs 357 Lower costs for
Slide 12: EBIT deviation Q3 2023 vs Q2 2023
EBIT deviation Q3 2023 vs Q2 2023 EBIT excl. PIR MSEK Q2 2023 833 Stronger USD Prices and terms 158 Tara in care and maintenance Whereof currency 282 Lower grades in Garpenberg Ramp-up after fire in Rönnskär Volumes -365 Tara in care and maintenance Costs 1,002 Modified business model in Rönnskär Le
Slide 13: Cash flow
Cash flow MSEK Q3 2023 Q3 2022 Q2 2023 EBITDA excl. PIR 3,417 4,946 2,478 Cash flow from working capital -412 -1,696 -1,681 Cash flow from investments -3,592 -2,516 -4,220 Financial items -245 -147 -234 Tax paid -321 -628 -367 Other -47 137 253 Free cash flow -1,200 97 -3,770 Q3 INTERIM REPORT 2023
Slide 14: Capital structure
Capital structure Net debt & Gearing SEK bn % SEK bn 30 Sep 2023 30 Sep 2022 31 Dec 2022 14 25 Total Assets 98.0 91.5 96.4 12 20 Capital Employed 71.7 63.1 62.2 10 Equity 56.0 55.1 58.3 8 15 Net debt 12.3 3.7 0.0 6 10 Net debt/equity, % 22 7 0 4 2 5 Net reclamation liability/equity, % 6 5 5 0 0 -2 A
Slide 15: Investments update
Investments update ▪ Capital expenditure 3.6 BSEK (2.5) New dam structure in Aitik ▪ Odda expansion on track ‒ Commissioning second half 2024 ▪ Aitik dam project on track ▪ Rävliden on track ‒ Initial production Q4 2023 ‒ Fossil-free production Q1 2025 ▪ Full-year 2023 capital expenditure guidance u
Slide 16: Rönnskär update
Rönnskär update ▪ Transformation of business model ‒ from cathode to anode sales ‒ redundancy consultation ongoing ‒ Loss of refining charges, free metals and premiums, partly offset by lower variable costs ▪ Financial impact ‒ 1 BSEK negative impact on EBIT compared to 2022, all things equal ‒ Incr
Slide 17: 2024 Capital Markets Update
2024 Capital Markets Update Boliden’s Capital Markets Update 2024 will be held virtually on March 18, 14.00 – 16.00 (CET) For more information please contact: investorrelations@boliden.com Q3 INTERIM REPORT 2023 17
Slide 18: Outlook
▪ Aitik Outlook ‒ 2023: Cu 0.17%, Au 0.08 g/tonne ‒ 2024: Cu 0.17%, Au 0.08 g/tonne ▪ Garpenberg ‒ 2023: Zn 3.3%, Ag 90 g/tonne ‒ 2024: Zn 3.5%, Ag 100 g/tonne ▪ Kevitsa ‒ 2023: Cu 0.25%, Ni* 0.18% ‒ 2024: Cu 0.28%, Ni* 0.20% ▪ Tara ‒ Care and maintenance cost: EBIT -13 MEUR/quarter ▪ Maintenance sh
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 2023 19
Slide 20: APPENDIX
APPENDIX Q3 INTERIM REPORT 2023 20
Slide 21: Financing
Financing Net Debt MSEK Q3 2023 Q3 2022 Q2 2023 Debt to credit institutions 15,441 9,229 13,696 Other interest bearing debt 159 217 178 Pensions 952 1,195 946 Interest bearing assets 0 -1 0 Cash -4,219 -6,953 -3,589 Total 12,333 3,688 11,231 Net Payment Capacity MSEK Q3 2023 Q3 2022 Q2 2023 Not util
Slide 22: Loan structure
Loan structure Maturity of which MSEK Reported value utilized < 1 year 1-5 years > 5 years Revolving credit facility, not utilized 11,769 - - - - Bilateral loans 7,778 7,778 1,983 3,912 1,883 Bonds 6,678 6,678 750 4,857 1,071 Commercial papers 985 985 985 - - Leases, other 159 159 58 101 - Total 15,
Slide 23: Preliminary priced volumes
Preliminary priced volumes Preliminary priced volumes in Mines* 30 Sep 2023 Copper, ktonnes 6.5 Zinc, ktonnes 13.0 Nickel, ktonnes 2.3 Lead, ktonnes 4.8 Silver, kg 51,547 Gold, kg 761 Palladium, kg 173 Platinum, kg 227 * Preliminary priced volumes of metal in concentrate in Mines Q3 INTERIM REPORT 2
Slide 24: 30 September 2023, Process Inventory
30 September 2023, Process Inventory External Process Inventory Copper, tonnes 29,500 Zinc, tonnes 13,000 Lead, tonnes 0 Gold, kg 2,000 Silver, kg 45,000 Palladium, kg 500 Q3 INTERIM REPORT 2023 24
Slide 25: Copper and zinc treatment charges
Copper and zinc treatment charges Copper TC Zinc TC USD/tonne USD/tonne concentrate concentrate 100 350 300 80 250 60 200 150 40 100 20 50 0 0 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 Contract TC - annual and mid-year benchmark Standard grade spot TC Contract TC - realized Spot TC
Slide 26: Base metal prices
Base metal prices USD/tonne ktonnes USD/tonne ktonnes Copper Zinc 15 000 2 400 5 000 2 000 2 000 4 000 1 600 10 000 1 600 3 000 1 200 1 200 5 000 800 2 000 800 400 1 000 400 0 0 0 0 LME inventory Shanghai inventory Comex inventory LME inventory Shanghai inventory Price Price Q avg Price Price Q avg
Slide 27: Gold, silver and lead prices
Gold, silver and lead prices USD/tr.oz. USD/tr.oz. Gold Silver 2 500 35 30 2 000 25 1 500 20 1 000 15 10 500 5 0 0 Price Price Q avg Price Price Q avg USD/tonne Lead 3 000 2 500 Average price in Q3 2023 vs period 2 000 Q2 2023 Q1 2023 Q4 2022 Q3 2022 1 500 Gold -2% 2% 12% 12% 1 000 Silver -2% 5% 11%
Slide 28: This presentation has been prepared by Boliden for information purposes only and as per
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