Boliden AB · OMXSTO:BOL

Boliden AB — Investor Day (November 2013)

20 slides from Boliden AB's investor day presentation, Nov 21, 2013

  1. Slide 1: Smelters update

    Smelters update CMD 21 November 2013 Kerstin Konradsson President Boliden Smelters

  2. Slide 2: Smelters Financial development

    Smelters Financial development R4Q, MSEK  EBIT ex PIR YTD Q3 530 (892) Quarterly EBIT excl PIR* MSEK MSEK R lli Q EBIT excll PIR*, Rolling PIR* RHS 900 1 800  Major maintenance stops in 2013  Otherwise stable quarterly Maintenance earnings g since 2011 700 1 400  Lower metal prices  Positive TC

  3. Slide 3: Gross profit development

    Gross profit development 8 000 7 000 9% 9% 11% 7% 8% 4% 6% 9% 6 000 2% 9% 11% 11% 12% 11% 11% 5 000 4 000 MSEK 30% 32% 33% 35% 36% M 3 000 2 000 1 000 49% 44% 36% 36% 39% 0 2009 2010 2011 2012 2013 Q3-4Q TC/RC Free Metal Premium Sulphuric acid Other by‐products Boliden CMD 2013 3 2013-11-21

  4. Slide 4: Strategic priorities

    Strategic priorities  Improve safety, environmental & CSR performance f  Secure optimal raw material supply  Broaden customer & product portfolio  Increase and diversify metals output  Improve operational efficiency & cost position  Reduce Capital Employed Boliden CMD 2013 4 2013-11-21

  5. Slide 5: Copper Production – Q3

    Copper Production – Q3  Rönnskär – production stability issues Total feed, Copper Cathode kt production production,  Harjavalta – ok kt 400 100  Maintenance stops in Q2 350 ‒ Rönnskär at plan; Production problems 80 300 at start-up ‒ Harjavalta 1 week delayed 250 60 200 150 40 100 20 50 0 0 Q3 Q4

  6. Slide 6: Rönnskär - Challenge

    Rönnskär - Challenge Copper, pp , lead and secondary y smelter  Production instability Background: ‒ Lower grade in concentrates ‒ Quality e-materials ‒ Changed raw material mix Consequences: ‒ Lower recovery ‒ High intermediate stocks ‒ Low free metals ‒ High costs  Low EBIT from by-products  En

  7. Slide 7: Rönnskär - Actions

    Rönnskär - Actions Copper, pp , lead and secondary y smelter  Focus areas ‒ Production stability ‒ Reduce intermediate stocks ‒ Reduce costs  Actions ‒ Raw material selection ‒ Process control – steering and models ‒ Adapt processes towards more complex material mixes and low-grade concentrates 

  8. Slide 8: Harjavalta

    Harjavalta Copper pp and nickel smelter  Current situation ‒ Costs under control ‒ Copper - intermediate stocks back on target ‒ High free metals ‒ Ni k l - stable Nickel t bl  Focus areas ‒ OEE ((Overall Equipment q p Effectiveness)) ‒ Costs  Q4 ‒ Cable fire fire, EBIT impact ~4MEUR 4MEUR Bolide

  9. Slide 9: Bergsöe

    Bergsöe  Current situation ‒ Tight supply of batteries ‒ Significant raw material price increases ‒ Improved productivity ‒ 3-4% volume increase ‒ Stable cost level  Focus areas ‒ New sourcing g markets ‒ Continue operational improvements ‒ Environmental permitting process appealed Boliden CMD 201

  10. Slide 10: Zinc Production – Q3

    Zinc Production – Q3  Kokkola – stable production Total feed, Zinc Metal production, production  Odda - only 3 Direct Leach-reactors kt kt 250 140  Maintenance stops in Q2 120 ‒ On plan 200 100 150 80 60 100 40 50 20 0 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2011 2012 2013 Zinc feed, total Zinc

  11. Slide 11: Odda

    Odda  Current situation ‒ Respacing of tankhouse no 5, closure of tankhouse no 4 ‒ 17% cost reduction/ton zinc since 2010 ‒ Reduced production due to DL-reactor ‒ DL-reactor replaced begin 2014 Boliden CMD 2013 11 2013-11-21

  12. Slide 12: Increased productivity in cell house

    Increased productivity in cell house Respacing New transformer Boliden CMD 2013 12 2013-11-21

  13. Slide 13: P100 Odda improvement programme continues

    P100 Odda improvement programme continues  Focus areas ‒ Cost reductions ‒ De-bottlenecking 2009 2013 3rd 4th Boliden CMD 2013 13 2013-11-21

  14. Slide 14: Kokkola

    Kokkola  Current situation ‒ Continued stable production ‒ Managing calcine stock ‒ High costs due to oxygen  Focus areas ‒ Silver recovery ‒ Quality of sulphuric acid Boliden CMD 2013 14 2013-11-21

  15. Slide 15: Silver recovery

    Silver recovery  Background ‒ Increasing silver content in zinc concentrates ‒ High silver prices  Investment ‒ Investment 27 MEUR ‒ Production Q3 2014 ‒ Production of 25 t silver ‒ Silver concentrate, <10 000 g/ton, with small amounts of gold and lead ‒ Further refinement to silver elsewhere ‒ Hi

  16. Slide 16: Silver recovery November 2013

    Silver recovery November 2013 Boliden CMD 2013 16 2013-11-21

  17. Slide 17: Pricing model

    Pricing model  Income streams - pricing of zinc concentrate t t ‒ Metal value from recovery of silver*, gold and lead from zinc concentrate  Deductions - pricing of silver concentrate ‒ Silver (5%), Gold (5%) and lead (3units) ‒ Treatment Charge and Silver & Gold Refining Charges • Minimum deducti

  18. Slide 18: Maintenance 2014

    Maintenance 2014  Maintenance stops ‒ Maintenance stops in all units Q2 or Q3 ‒ Ni-line in Harjavalta  EBIT effect -220 MSEK ‒ -140 MSEK in Q2 ‒ -80 MSEK in Q3 Boliden CMD 2013 18 2013-11-21

  19. Slide 19: Disclaimer

    Disclaimer  This presentation has been prepared by Boliden for information purposes only. Nothing in this material shall be construed as an offer or solicitation to buy y or sell any y securityy or p product,, or to engage in or refrain from engaging in any transaction.  This presentation has been

  20. Slide 20: Boliden CMD 2013

    Boliden CMD 2013 20 2013-11-21

Boliden — Investor Day (November 2013) on 6ix