Boliden Ab · OMXSTO:BOL
Boliden Ab — Merger or Acquisition (December 2024)
14 slides from Boliden Ab's merger presentation, Dec 9, 2024
Slide 1: Welcoming Neves-Corvo and Zinkgruvan to Boliden
Welcoming Neves- Corvo and Zinkgruvan to Boliden Mikael Staffas, President and CEO Håkan Gabrielsson, Executive Vice President and CFO December 9, 2024
Slide 2: Legal disclaimer
Legal disclaimer BY ATTENDING THE MEETING WHERE THE PRESENTATION IS MADE OR BY RECEIVING AND USING THE PRESENTATION, YOU AGREE TO BE BOUND BY THE FOLLOWING LIMITATIONS AND CONDITIONS AND, IN PARTICULAR, WILL BE TAKEN TO HAVE REPRESENTED, WARRANTED AND UNDERTAKEN THAT YOU HAVE READ AND AGREE TO COMPL
Slide 3: Strengthening Boliden by welcoming Neves-Corvo and Zinkgruvan
Strengthening Boliden by welcoming Neves-Corvo and Zinkgruvan Metals in concentrate production, ktonnes* 400 • Strong industrial logic and strategic fit 350 300 250 • Attractive financials 200 150 100 • Good development potential 50 0 Zinc Copper Boliden Neves-Corvo and Zinkgruvan *Based on figures
Slide 4: Strong industrial logic and strategic fit
Strong industrial logic and strategic fit Leverage mining Strengthening Limited risk expertise concentrate production • Mining methods in line with Boliden • Zinc 35% → 70% of smelter capacity • Well-invested units expertise • Copper 30% → 40% of smelter • Strong community relations • Size of units
Slide 5: Zinc: attractive scale of acquired units
Zinc: attractive scale of acquired units Tier 1 jurisdiction zinc underground mines1) Zn production 20232), ktonnes Cost profile 2024E Zinc C1 Cash Cost, co-product basis3) $1.80 152 146 Spot zinc price: USD 1.41/lb4) $1.40 109 Tara Neves-Corvo 103 C1 Cash Cost (US$/lb Zn) Boliden Area 96 Zinkgruvan
Slide 6: Copper: welcoming a key European unit
Copper: welcoming a key European unit Selection of European copper mines1) Cu production 2023, ktonnes Cost profile 2024E Copper C1 Cash Cost, co-product basis2) $5.00 445 Spot copper price: USD 4.16/lb3) $4.00 Neves-Corvo 139 Boliden Area C1 Cash Cost (US$/lb Cu) $3.00 4) Kevitsa 64 $2.00 Aitik 56
Slide 7: Attractive financials
Attractive financials Estimated EBITDA contribution • USD 300-350 m annually over the next five years, assuming consensus prices and terms Cash flow generative • 2025-27E Average Cash EPS >10% Operational optimization and synergies Welcoming Neves-Corvo and Zinkgruvan to Boliden 7
Slide 8: Timeline
Timeline Timeline Completion expected in mid 2025 Regulatory approvals Completion of the Transaction is subject to obtaining customary regulatory approvals, including: • Merger control filings and approvals by the EU Commission and the Swedish Inspectorate of Strategic Products under the Swedish FDI
Slide 9: Key terms
Key terms Upfront cash consideration USD 1,300 m payable in cash at closing for the acquisition of the Neves- Corvo and Zinkgruvan mines on a cash- and debt-free basis Contingent payments Maximum USD 150 m based on profit-sharing • Neves-Corvo: USD 100 m over the next 3 years, subject to average zin
Slide 10: Transaction financing
Transaction financing • Upfront cash consideration funded by a bridge loan • The bridge loan will be refinanced in due course via: • Approximately 50% medium and long-term debt • Approximately 50% share issue • To the benefit of shareholders, Boliden will explore the conditions to do the share issue
Slide 11: Net debt/equity ratio
Net debt/equity ratio • Boliden’s net debt/equity ratio was 24% on September 30, 2024 • On September 30, 2024, assuming completion and a 50% Share Issue, the net debt/equity ratio would be around 30% • Excluding dividends • The net debt/equity ratio is expected to revert to the target level within t
Slide 12: Boliden going forward
Boliden going forward Aitik Kevitsa The Boliden Area Rönnskär • Strong base metals and sustainability focus Kokkola • Portfolio of 7 mining units and 5 smelters Mines Harjavalta Garpenberg • High quality, vertically integrated operations in Europe Smelters Odda Zinkgruvan • Long life of mines with p
Slide 13: Appendix
Appendix
Slide 14: Mineral Resources and Mineral Reserves
Mineral Resources and Mineral Reserves* Ag Cu Zn Pb Ag Cu Zn Pb Resources ktonnes g/t % % % Reserves ktonnes g/t % % % Neves-Corvo, zinc and lead Measured 12,082 65 0.4 7.7 1.8 Proven 3,981 68 0.3 8.3 2.2 Indicated 51,520 60 0.3 6.6 1.3 Probable 17,588 62 0.3 7.4 1.8 Inferred 4,094 63 0.3 5.7 1.6 To