Boliden Ab · OMXSTO:BOL
Boliden Ab — Investor Presentation (April 2024)
41 slides from Boliden Ab's investor presentation, April 2024
Slide 1: Metals for generations to come
Metals for generations to come General Presentation Q1 2024
Slide 2: A century of exploration and innovation
A century of On a cold December day in 1924, gold fever struck exploration near the village of Boliden in northern Sweden. This marked the start of 100 years of challenging and innovation conventions while providing some of the most important building blocks for modern society.
Slide 3: 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 and responsibility. These describe how we work together in our daily operations as well
Slide 4: Boliden – Metals for generations to come
Boliden – Metals for generations to come • Production of base and precious metals since 1924 Kevitsa • Mining and smelting operations in Finland, Ireland Norway and Sweden Aitik • Around 6,000 employees The Boliden Area Rönnskär • Most exposure to zinc and copper Mines Boliden Smelters Kokkola • Ind
Slide 5: Boliden's strategy in brief
Boliden’s strategy in brief The value chain • From exploration and mining to metal production and recycling Focus on zinc, copper and nickel • Metals that are essential to improve society for generations to come Strategic focus areas • Care for people, the environment and society • Reduced climate f
Slide 6: Bolidens contradictions are key to our success
Bolidens contradictions are key to our success Small Large ~6,000 employees Listed on Nasdaq Stockholm Large Cap Local Global Strong link to communities Global network and smelter sourcing Conservative Cutting edge in technology Preserving and valuing its culture Highly automated 6
Slide 7: Industry leading skills
Industry leading skills • Mining and smelting productivity • Mill efficiency • Project execution • Complex raw material feed • Climate and environmental standards • The variation in smelter terms stabilizes Boliden’s revenues over at business cycle Return on Capital Employed (ROCE) per Business Area
Slide 8: Boliden in numbers
In BOLIDEN den numbers I) ca
Slide 9: Highlights
Highlights • Important steps to future-proof business • Rönnskär tank house and Boliden Area extension • Odda, Aitik and Kristineberg projects approaching completion • Autonomous Hauling System in Aitik • Launch of Low-Carbon Nickel • Political strikes in Finland • Extreme winter conditions • Stable
Slide 10: Operating profit excl. PIR per Business Area
Operating profit excl. PIR Mines SEK m Rolling, per Business Area SEK m 3,500 14,000 3,000 12,000 2,500 10,000 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 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2021 2022 2023 2024 SEK m Q1 2024 Q1 2023 Q4 2023 Quarterly EBIT 12 months rolling
Slide 11: Strategic capex projects peaking in 2024
Strategic capex projects peaking in 2024 Capex (SEKm) Key elements 2024 Stay in business capex Mine sustaining • SEK 0.5 billion in 2024 20 000 • SEK 4.5 billion in 2024 • Foundation to extend and develop business 15 000 • Excluding dam project in Aitik • Efficiency investments 10 000 • Stripping, d
Slide 12: New tank house in Rönnskär
New tank house in Rönnskär State-of-the-art production facility • Annual cathode production capacity of 230 ktonnes • Scalability • The design and construction of the facility enables efficient expansion of production capacity in the future • Capex SEK 4.8 billion • Main capex spend in 2025 and 2026
Slide 13: Prolonged lifespan in the Boliden Area
Prolonged lifespan in the Boliden Area • Existing tailings capacity only until late 2020s • Project extends capacity until late 2030s Boliden Area • Paste used as backfill • Improved environmental performance • Capex SEK 2.5 billion from 2024 to 2026 13
Slide 14: Boliden Area Paste project
Boliden Area Paste project Closed mine • Filtration plant next to the concentrator Existing mines • Paste mixing stations in Maurliden, Renström and Kankberg Maurliden Boliden Area • Transport dewatered sand out to the Kankberg concentrator mines and use binder to create paste • Application for envi
Slide 15: Odda expansion
Odda expansion • Ramp-up during Q4 2024 • Increased total Capex from EUR 850 m to EUR 950 m • Underestimation of complexity of the integration between new and existing facilities • Increased costs related to delayed deliveries of certain key components • Improved annual run-rate EBITDA of EUR ~150 m
Slide 16: Aitik dam project
Aitik dam project 1. Production within existing infrastructure prolonged from Q2 2024 to Q2 2025 2. New infrastructure well underway • Commissioning of new pump station for water recycling completed • Dismantling of old pump station started • Salmijärvi pump station under construction, to be commiss
Slide 17: Kristineberg expansion
Kristineberg expansion • Project on time and on budget • Ore production started Q4 2023 • Ventilation including heat exchanger in operation • Water treatment plant commissioned • State-of-the-art electrification infrastructure • Planned commissioning Q1 2025 Autonomous electric loader on trial at Kr
Slide 18: Cash flow
Cash flow SEK m Q1 2024 Q1 2023 Q4 2023 Operating profit before depreciation and amortization excl. PIR 2,835 4,504 3,655 Cash flow from working capital 187 -260 3,075 Cash flow from investment activities -3,444 -2,917 -4,808 Financial items -203 -204 -4 Paid tax -1,063 -1,036 -39 Other 180 -133 -21
Slide 19: Capital structure
Capital structure 31 Mar 31 Mar 31 Dec SEK bn % SEK bn 2024 2023 2023 14 35 12 30 Total Assets 104.2 102.3 102.0 10 25 Capital Employed 74.1 64.4 70.8 8 20 Equity 58.5 60.8 56.4 6 15 Net debt 12.4 0.1 10.7 4 10 Net debt/equity, % 21 0 19 2 5 Net reclamation 0 0 liability/equity, % 6 5 6 -2 -5 Q1 Q2
Slide 20: Loan structure
Loan structure Maturity of which SEK m Reported value utilized < 1 year 1-5 years > 5 years Revolving credit facility, not utilized 14,317 - - - - Bilateral loans 6,119 6,119 620 3,743 1,757 Bonds 6,630 6,630 750 4,845 1,035 Commercial papers 2,612 2,612 2,612 - - Leases, other 156 156 48 109 - Tota
Slide 21: Long-term commitment to financial targets and dividend policy
Long-term commitment to financial targets and dividend policy Return on investments Dividend policy Net Debt/Equity ≥ 10% 1/3 ~20% of net profit at economic peaks* *The target also includes net reclamation liability 21
Slide 22: Market and production
Market and production ‘BOLIDEN
Slide 23: Copper and zinc treatment charges
Copper and zinc treatment charges Copper Zinc USD/tonne USD/tonne concentrate concentrate 100 350 300 80 250 60 200 40 150 20 100 0 50 2019 2020 2021 2022 2023 2024 -20 0 2019 2020 2021 2022 2023 2024 Contract TC - annual and mid-year benchmark Standard grade spot TC Contract TC - realized Spot TC i
Slide 24: Market developments
Market developments • Base metals Prices and terms indices • Weaker Zinc, Nickel and Lead Metal price/ TC index (USD) Currency index Boliden weighted index • Improved Copper vs. previous quarter • Precious metals 225 • All time high Gold 200 175 • Improved Silver 150 • Weaker PGM* 125 100 • Zinc ben
Slide 25: Green Transition Metals
Green Transition Metals Low-carbon products • Our portfolio of low-carbon and recycled metals • Industry-leading development of metals with low climate footprints • Product offering with a climate impact per kg produced metal significantly below industry averages • Low-Carbon Copper: <1.5 kg CO2e* (
Slide 26: Major permits
Major permits Aitik Boliden Area • 2022 - 2023: Liikavaara environmental permit, • 2022: Rävliden environmental permit granted mining concession and designation of land granted • 2023: Main permit renewal for Kankberg. New permit granted, allowing increased production and extended • 2023 - 2024: Per
Slide 27: Mineral Reserves as per December 31, 2023
Mineral Reserves as per December 31, 2023 Quantity, ktonnes 2023 Au Ag Cu Zn Pb Ni* Co* Pt Pd Te 2023 2022 g/t g/t % % % % % g/t g/t g/t Aitik Proven 110,000 126,000 0.08 1.1 0.18 Probable 1,033,000 1,005,000 0.17 1.3 0.24 Boliden Area Sulfide mineralizations Kristineberg Proven 560 360 0.3 67 0.8 3
Slide 28: Exploration 2023
Exploration 2023 Exploration cost SEK 853 m (770) • Successful exploration in the Aitik area • Nautanen • Continued positive exploration results in the Boliden Area and Garpenberg • Ireland • Exploration halted due to Tara in care and Aitik and Kevitsa maintenance Norrbotten • The collaborative proj
Slide 29: Europe's provider of sustainable metals
Europe’s provider of sustainable metals For societies with low carbon footprints, the importance of base metals is greater than ever. Boliden Corporate Presentation 29
Slide 30: Sustainability as a success factor
Sustainability as a success factor • Focus on health and safety improves wellbeing and production stability • Stringent emission standards lower environmental risk • Strong know-how in waste management from exploration to closure and reclamation • Responsible operations through supply chain control
Slide 31: ESG initiatives – highlights 2024
ESG initiatives – highlights 2024 • Actions to reach full GISTM-conformance in Aitik and Kevitsa according to plan • Aitik, Q4 2024 • Kevitsa, Q2 2024 • Nitrogen-free explosives introduced in Kankberg mine • 400 tonnes CO2 reduction yearly • Next step, tests in Aitik and Garpenberg • CSRD/ESRS compl
Slide 32: Prioritized areas for our environment work
Prioritized areas for our environment work • Climate and energy • Emissions to air and water • Tailings and water management • Biodiversity • Reclamation • Waste and resource utilization 32
Slide 33: Climate targets and progress
Climate targets and progress Scope 1, 2 and 3, progress CO2e emissions 2023 2021 Scope 1, ktonnes 628 625 • 42 percent reduction of Scope 1 and 2* CO2e emissions by Scope 2, ktonnes 215 375 Total, ktonnes 842 1,000 2030, base year 2021 Scopes 1+2 change on 2021, % -15.8 0 • Validated by the Science
Slide 34: Climate emissions share per Scope and category
Climate emissions share per Scope and category Upstream activities Boliden Downstream activities Scope 3 Scope 2 Scope 1 Scope 3 Indirect emissions Indirect emissions Direct emissions Indirect emissions 56% 5% 8% 12% 2% Purchased goods and Capital goods Purchased electricity for Own facilities Trans
Slide 35: Climate action
Climate action Main activities to achieve our 2030 targets • Grid decarbonization by reducing emissions from local energy production where we operate • Electrification of vehicles, machines and other processes • Energy efficiency improvements through for example optimized mine layouts and heat utili
Slide 36: Biodiversity
Biodiversity • Our biodiversity target is to have a net- positive contribution to biodiversity in all regions where we operate by 2030 • Work according to mitigation hierarchy • First, avoid impact • Second, minimize the impact that cannot be avoided through mitigation measures • Third, restore any
Slide 37: Tailings management
Tailings management • The implementation of the Global Industry Standard Waste from extractive industries, ktonnes of Tailings Management framework drives overall 2023 2022 change in processes with an increased focus and Tailings reuse for backfilling of mine 1,870 2,128 continuous improvement of ta
Slide 38: Reclamation
Reclamation • Management and supplementary reclamation of approximately 30 sites Långdal mine in 1999 after closure • Resources for reclamation are set aside throughout the mine’s lifespan, and continuously for risk-based supplementary reclamation of closed sites • Net reclamation liability 2023 tot
Slide 39: Investment case
Investment case Stable and sustainable value chain Right expertise and financial position Competitive portfolio • Technical know-how • High productivity • Metals for generations to come • Mines and Smelters • Solid financials • Cu, Zn, Ni and Pb • Base metals and precious metals • Long cultural heri
Slide 40: Post Q1 2024 Outlook
Post Q1 2024 Outlook 2024 Capex • SEK 15.5 billion 2024 Smelters planned maintenance • SEK -400 m 2024 Zn Cu Ni* Au Ag % g/tonne Aitik 0.17 0.08 Garpenberg 3.5 100 Kevitsa 0.28 0.20 Boliden Area 3.0 2.0 * Nickel in Sulphides, Ni(S) 40
Slide 41: Disclaimer
Disclaimer • 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