Boliden Ab · OMXSTO:BOL
Boliden Ab — Q3 2024 Earnings Presentation
27 slides from Boliden Ab's earnings presentation, Oct 22, 2024
Slide 1: Q3 2024 High production, stronger results
Q3 2024 High production, stronger results Mikael Staffas, President and CEO Håkan Gabrielsson, Executive Vice President and CFO October 22, 2024
Slide 2: Highlights
Tankhouse 6 in Odda under commissioning in October 2024 Highlights • Improved prices and terms versus Q3 2023 • Improved production in both Mines and Smelters • Record milled volume in Garpenberg • Good progress for key projects • Aitik, Kristineberg (the Boliden Area) and Odda nearing completion •
Slide 3: Financial performance
Financial performance Group Operating profit excl. PIR • Operating profit excl. PIR SEK 2,999 m (1,940) SEK m Rolling, • Free cash flow SEK -495 m (-1,200) SEK m 5,000 20,000 • Capex SEK 3,227 m (3,591) 4,500 18,000 4,000 16,000 3,500 14,000 3,000 12,000 2,500 10,000 2,000 8,000 1,500 6,000 1,000 4,
Slide 4: Key projects update
Key projects update Rönnskär site for new tankhouse in September 2024 Odda expansion EUR 1.05 billion Boliden Area extension SEK 2.5 billion • 200 ktonnes capacity Q1 2025 • Groundwork started in May 2024 • Ramp-up to 350 ktonnes starting late Tara reopening Q1 2025 • Onboarding and retraining progr
Slide 5: ESG development
ESG development CO2e emissions*, ktonnes 300 250 200 150 100 50 • CO2e emissions ktonnes 212 (180) 0 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 2020 2021 2022 2023 2024 * Combined Scopes 1 and 2 emissions Accident frequency**, rolling 12 months • Lost Time Injury Frequency 5.8 (3.5) 10 5 • Sick leave 4.7% (4.6)
Slide 6: Market developments
Market developments • Base metal prices Prices and terms indices • Improved copper and zinc prices versus Q3 2023 Metal price/ TC index (USD) Currency index Boliden weighted index • Precious metal prices • All-time highs for gold during the quarter 225 200 • Higher prices versus both comparison peri
Slide 7: 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 Minimum price Average price Maximum price Spot p
Slide 8: Mine production
Mine production Copper in concentrate, ktonnes 40 30 20 Aitik Kevitsa 10 0 • Milled volume 10.3 Mtonnes (10.1) • Milled volume 2.5 Mtonnes (2.7) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 2021 2022 2023 2024 • Ramp-up of Liikavaara • Stable production at capacity Zinc in concentra
Slide 9: Smelter production
Smelter production Copper cathodes, ktonnes 150 100 50 Rönnskär Odda 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 • Process disturbances in the lead • Lower zinc production 2020 2021 2022 2023 2024 line Zinc, ktonnes • Tankhouse 4 permanently closed Harjavalta (part of expansion projec
Slide 10: Financial summary
Financial summary SEK m Q3 2024 Q3 2023 Q2 2024 Revenues 22,193 19,396 22,748 Operating profit before depreciation 4,829 3,390 6,420 Operating profit 3,165 1,912 4,814 Operating profit ex. PIR 2,999 1,940 4,000 Investments 3,227 3,591 3,726 Free cash flow -495 -1,200 401 Earnings per share, SEK 8.34
Slide 11: Operating profit excl. PIR per Business Area
Operating profit excl. PIR Mines SEK m Rolling, SEK m per Business Area 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 Q2 Q3 2020 2021 2022 2023 2024 SEK m Q3 2024 Q3 2023 Q2 2024 Quarterly EBIT 12 months ro
Slide 12: Operating profit deviation year-on-year
Operating profit deviation Prices and terms year-on-year • Higher metal prices partly offset by lower premiums, TCs and exchange rates Volumes • Higher production of metals in all producing mines • Strong production in Finnish smelters Costs • Higher volumes, and some general increases in Aitik, Rön
Slide 13: Operating profit deviation quarter-on-quarter
Prices and terms Operating profit deviation • Slightly lower metal prices and quarter-on-quarter exchange rates • Slightly higher by-product prices Volumes • Higher milled volume • Improved grades • Higher volumes in Smelters • Large maintenance stops in Q2 Costs • Positive seasonal effects • Less m
Slide 14: Cash flow
Cash flow SEK m Q3 2024 Q3 2023 Q2 2024 Operating profit before depreciation and amortization excl. PIR 4,663 3,417 5,606 Cash flow from working capital -1,431 -412 -567 Cash flow from investment activities -3,229 -3,592 -3,727 Financial items -306 -245 -295 Paid tax -245 -321 -547 Other 53 -47 -69
Slide 15: Capital structure
Capital structure 30 Sep 30 Sep 30 Jun SEK bn % SEK bn 2024 2023 2024 16 35 14 30 Total Assets 111.1 98.0 112.5 12 25 Capital Employed 80.3 71.7 77.6 10 20 Equity 61.6 56.0 59.7 8 15 6 Net debt 14.8 12.3 14.4 10 4 Net debt/equity, % 24 22 24 5 2 Net reclamation 0 0 liability/equity, % 6 6 6 -2 -5 Q1
Slide 16: Boliden Capital Markets Days 2025
Boliden Capital Markets Days 2025 March 18–19, 2025 Conference in Bergen (close to airport) Site visit to the Odda smelter For more information please contact: investorrelations@boliden.com
Slide 17: Outlook
Outlook Capex • SEK 15.5 billion in 2024 and SEK 13.5 billion in 2025 2024 Smelters planned maintenance • SEK 0 m in Q4 Insurance income • SEK 935 m will be recognized in Q4 Tara operating profit • Estimated at EUR -25 m in Q4 2024 2025 Zn Cu Ni* Au Ag Zn Cu Ni* Au Ag % g/tonne % g/tonne Aitik 0.17
Slide 18: Our purpose, vision and values
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 as combine diff
Slide 19: Appendices
Appendices • Financing • Loan structure • Preliminary priced volumes • Treatment charges • Metal prices Q3 2024 Interim report presentation 19
Slide 20: Financing
Financing SEK m Q3 2024 Q3 2023 Q2 2024 Debt to credit institutions 16,657 15,441 19,768 Other interest bearing debt 486 159 524 Pension liability 1,142 952 1,140 Interest bearing assets -1 0 -1 Cash -3,482 -4,219 -7,059 Total 14,801 12,333 14,372 SEK m Q3 2024 Q3 2023 Q2 2024 Not utilized credit fa
Slide 21: Loan structure
Loan structure Maturity of which SEK m Reported value utilized < 1 year 1-5 years > 5 years Revolving credit facility, not utilized 15,033 962 113 453 396 Bilateral loans 5,746 5,746 606 3,515 1,626 Bonds 6,348 6,348 1,000 3,837 1,510 Commercial papers 3,601 3,601 3,601 - - Leases, other 486 486 153
Slide 22: Preliminary priced volumes
Preliminary priced volumes 30 Sep Preliminary priced volumes in Mines* 2024 Copper, ktonnes 8.2 Zinc, ktonnes 15.6 Nickel, ktonnes 2.8 Lead, ktonnes 5.1 Silver, kg 59,701 Gold, kg 1,102 Palladium, kg 160 Platinum, kg 242 * Preliminary priced volumes of metal in concentrate in Mines Q3 2024 Interim r
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 60 200 150 40 100 20 50 0 0 2019 2020 2021 2022 2023 2024 -50 2019 2020 2021 2022 2023 2024 -100 -20 Contract TC - annual and mid-year benchmark Standard grade spot TC Contract TC - realized
Slide 24: Copper, zinc and nickel prices
Copper, zinc and nickel prices USD/tonne ktonnes USD/tonne ktonnes Copper Zinc 12 000 2 400 5 000 2 000 10 000 2 000 4 000 1 600 8 000 1 600 3 000 1 200 6 000 1 200 4 000 800 2 000 800 2 000 400 1 000 400 0 0 0 0 LME inventory Shanghai inventory Comex inventory LME inventory Shanghai inventory Price
Slide 25: Gold, silver and lead prices
Gold, silver and lead prices USD/tr.oz. USD/tr.oz. Gold 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/tonne Lead Average price in Q3 2024 vs period 3 000 Q2 2024 Q1 2024 Q4 2023 Q3 2023 2 500 2 000 Gold 6% 19% 25% 28% 1 500 Silver 2% 26% 27%
Slide 26: External process inventory
External process inventory Metal Volume Copper, tonnes 28,500 Zinc, tonnes 19,500 Lead, tonnes 250 Gold, kg 3,900 Silver, kg 68,000 Palladium, kg 500 Q3 2024 Interim report presentation 26
Slide 27: 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 su