Boliden Ab · OMXSTO:BOL
Boliden Ab — Q4 2024 Earnings Presentation
44 slides from Boliden Ab's earnings presentation, February 2025
Slide 1: Metals for generations to come
Metals for generations to come General Presentation Q4 2024
Slide 2: 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 3: 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 4: Boliden’s contradictions are key to our success
Boliden’s 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 Boliden post Q4 20
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: 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 7: Q4 2024 Highlights
Autonomous Hauling System truck in operation between Liikavaara pit and Aitik crusher, November 2024. Q4 2024 Highlights • Operating profit excl. PIR SEK 3,814 m (2,017) • Insurance income of SEK 935 m (0) • Free cash flow was SEK 4,264 m (1,663) • Strong production in Smelters, especially Harjavalt
Slide 8: Boliden in numbers and key projects
Boliden in numbers and key projects Boliden post Q4 2024 General Presentation 8
Slide 9: 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 Q2Q3Q4 Q1 Q2Q3Q4 Q1 Q2Q3Q4 Q1 Q2Q3Q4 Q1 Q2Q3Q4 2020 2021 2022 2023 2024 SEK m Q4 2024 Q4 2023 Q3 2024 Quarterly EBIT 12 months rolling E
Slide 10: Cash flow
Cash flow SEK m Q4 2024 Q4 2023 Q3 2024 Operating profit before depreciation and amortization excl. PIR 5,704 3,655 4,663 Cash flow from working capital 3,733 3,075 -1,431 Cash flow from investing activities -4,597 -4,808 -3,229 Financial items -333 -4 -306 Paid tax -316 -39 -245 Other 73 -216 53 Fr
Slide 11: Capital structure
Capital structure 31 Dec 31 Dec 30 Sep SEK bn % SEK bn 2024 2023 2024 16 35 14 30 Total Assets 116.2 102.0 111.1 12 25 Capital Employed 80.1 70.8 80.3 10 20 Equity 65.0 56.4 61.6 8 15 6 Net debt 10.7 10.7 14.8 10 4 Net debt/equity, % 16 19 24 5 2 Net reclamation 0 0 liability/equity, % 6 6 6 -2 -5 Q
Slide 12: Loan structure
Loan structure Maturity of which SEK m Reported value utilized < 1 year 1-5 years > 5 years Revolving credit facility 15,201 915 114 458 343 Bilateral loans 5,653 5,653 615 3,411 1,627 Bonds 6,362 6,362 1,000 3,840 1,521 Commercial papers 3,127 3,127 3,127 - - Leases, other 449 449 151 299 - Total 1
Slide 13: Key projects update
Key projects update Odda expansion EUR 1.05 billion Rönnskär tankhouse SEK 4.8 billion • 200 ktonnes capacity Q1 2025 • Groundwork completed • Ramp-up to 350 ktonnes starting late • Building construction in progress Q1 2025 • Ramp-up during H2 2026 Aitik dam reinforcement SEK 5.0 billion The Boliden
Slide 14: New Rönnskär tankhouse
New Rönnskär tankhouse 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 • I
Slide 15: Boliden Area extension
Boliden Area extension • 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 Boliden post Q4 2024 General Presentation 15
Slide 16: Boliden Area extension: paste solution explained
Boliden Area extension: paste solution explained 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
Slide 17: Odda expansion
Odda expansion Incoming power infrastructure commissioned • New energy contract in operation Quay infrastructure upgrade commissioned Cellhouse and foundry commissioned during Q4 2024 • Production capacity at 200 ktonnes from Q1 2025 Roaster and acid plant • Final commissioning late Q1 2025 (origina
Slide 18: Odda project financials remain attractive
Odda project financials remain attractive Improved annual run-rate EBITDA of EUR ~150 m* Operating cost reduction • Economies of scale • Automation and digitalization • New hydropower agreement Odda leach product • 40 ktonnes new leach product/year • Metal content: Pb 10 ktonnes, Ag 50 tonnes, Au 40
Slide 19: Aitik dam project completed in time on budget
Aitik dam project completed in time on budget • Project finalized December 2024, in ÅV2 pump station accordance with time plan and budget • Fulfills GISTM’s higher demands on dam safety. • Dams reinforced with 44 Mt waste rock • Two new pumpstations in operation • Full production maintained througho
Slide 20: 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 • Commissioned Q1 2025 Autonomous electric loader on trial at Kristineber
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 Boliden post Q4 2024 General Presentation 21
Slide 22: Market and production
Market and production Boliden post Q3 Q4 2024 General Presentation 22
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 2019 2020 2021 2022 2023 2024 -50 -20 -100 Contract TC - annual and mid-year benchmark Standard grade spot TC Contract TC - realized
Slide 24: Market developments
Market developments • Higher zinc price versus both comparison Prices and terms indices periods Metal price/TC index (USD) Currency index Boliden weighted index • Flat copper price versus Q3 2024 • Lower nickel and lead prices versus Q3 2024 225 200 • Higher gold and silver prices versus both 175 co
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 Rönnskär • 2023 - 2024: Permitting of implemented and • Notification regarding rebuilding of the tank ongoing dam safety measures and infrastructure house accepted by supervisory authority 2024 changes (approved July 2024 but appealed) • 2023 - 2025: Permitting of increased waste
Slide 27: Exploration 2024
Exploration 2024 Exploration cost SEK 929 m (858) • Sweden • Internal and collaborative projects progressing well • Aitik: Continued positive exploration results in Nautanen • The Boliden Area: Promising results from Central and Western Skellefte district • Garpenberg: Large increase in Mineral Reso
Slide 28: Mineral Reserves end of 2024
Mineral Reserves end of 2024 Aitik • Reserves covering full production until 2048 (2048) Reserve life (years)** • Cu reserve grade 0.23 (0.23) % The Boliden Area Mineral Reserve Life of Mine (years) • Reserves covering full production until 2033 (2031) 35 • Extension project 30 Garpenberg • Reserves
Slide 29: Mineral Resources end of 2024
Mineral Resources end of 2024 • Aitik • 905 (940) Mtonnes • The Boliden Area • Mineral Resources 27.7 (25.3) Mtonnes • Garpenberg • Mineral Resources 124 (90) Mtonnes • Successful exploration drilling • Tara • No new estimations due to care and maintenance • Tara Mine 13.3 (13.3) Mtonnes • Tara Deep
Slide 30: Mineral Reserves as per December 31, 2024
Mineral Reserves as per December 31, 2024 Quantity, ktonnes 2024 Au Ag Cu Zn Pb Ni* Co* Pt Pd Te 2024 2023 g/t g/t % % % % % g/t g/t g/t Aitik Proven 175,000 110,000 0.09 1.4 0.20 Probable 916,000 1,033,000 0.17 1.3 0.24 The Boliden Area Sulfide mineralizations Kristineberg Proven 740 560 0.25 65 0.
Slide 31: 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 post Q3 Q4 2024 General Presentation 31
Slide 32: 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 33: Strategic ESG targets
Strategic ESG targets Environmental targets Greenhouse gas emissions (GHG) Environmental incidents Biodiversity impact Absolute GHG emissions for Scope 1-2 reduced No significant environmental incidents should Contribute to increased biodiversity in all by 42% and Scope 3 by 30% from 2021- 2030. occ
Slide 34: 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 Boliden post Q4 2024 General Presentation 34
Slide 35: ESG initiatives – highlights 2024
ESG initiatives – highlights 2024 • Full GISTM-conformance in Aitik and Kevitsa according to plan • Nitrogen-free explosives introduced in Kankberg mine • 400 tonnes CO2e reduction yearly • Next step, tests in Aitik and Garpenberg • Boliden and Komatsu deepened cooperation around fossil free mining
Slide 36: Climate targets and progress
Climate targets and progress Scope 1, 2 and 3, progress CO2e emissions 2024 2021 Scope 1, ktonnes 658 625 • 42 percent reduction of Scope 1 and 2* CO2e emissions by Scope 2, ktonnes 207 375 2030, base year 2021 Total, ktonnes 865 1,000 Scopes 1+2 change on 2021, % -16 0 • Validated by the Science Ba
Slide 37: 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 52% 5% 8% 16% 2% 3.1. Purchased goods and 3.2. Capital goods 2. Purchased electricity 1. Own fac
Slide 38: 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 39: Biodiversity
Biodiversity • Our biodiversity target is to contribute to increased biodiversity in all regions where we operate by 2030 (from 2020 baseline) • Work according to mitigation hierarchy • First, avoid impact • Second, minimize the impact that cannot be avoided through mitigation measures • Third, rest
Slide 40: Tailings management
Tailings management • The implementation of the Global Industry Standard of Tailings Management framework drives overall change in processes with an increased focus and continuous improvement of tailings management • Safety management system for tailings dams • Key roles with clear responsibility an
Slide 41: 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 Dec 31st
Slide 42: 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 43: 2025 Outlook
2025 Outlook Capex • SEK 14 billion in 2025 • Combined spend for 2024 and 2025 is unchanged Smelters planned maintenance • SEK -500 m operating profit effect for the full year 2025 Strikes in Finland • So far just over SEK -100 m operating profit effect in Q1 2025 • New collective bargaining agreeme
Slide 44: 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