Boliden Ab · OMXSTO:BOL
Boliden Ab — H1 2002 Earnings Presentation
14 slides from Boliden Ab's earnings presentation, Aug 14, 2002
Slide 1: Interim Report January - June 2002
Boliden Interim Report January - June 2002 August 14, 2002 1 2002-08-14
Slide 2: Highlights First Six Months 2002
Highlights First Six Months 2002 Boliden • Boliden reports a profit of SEK 21 million (-624 million) after financial items for the first half of 2002. This indicates an improvement of SEK 1 195 million, excluding operations that have been sold or shut down, as well as items affecting comparability (
Slide 3: Metal Prices
Metal Prices Boliden Metal Prices First 6 months Change Second Quarter Change (average LME/LBM) 2002 2001 in % 2002 2001 in % Copper (USD/lb) 0.72 0.77 -6 0.73 0.75 -3 Zinc (USD/lb) 0.36 0.44 -18 0.36 0.42 -14 Lead (USD/lb) 0.21 0.22 -5 0.21 0.21 - Gold (USD/oz) 301 266 13 313 267 17 Silver (USD/oz)
Slide 4: LME Copper Price and Stock
LME Copper Price and Stock Boliden USc/lb USc/lb tonnes tonnes 155 155 1000000 1000000 145 145 900000 900000 135 135 800000 800000 125 125 700000 700000 115 115 600000 600000 105 105 500000 500000 95 95 400000 400000 85 85 300000 300000 75 75 200000 200000 65 65 100000 100000 55 55 00 4 2002-08-14
Slide 5: LME Zinc Price and Stock
LME Zinc Price and Stock Boliden USc/lb USc/lb tonnes tonnes 85 85 1300000 1300000 75 75 1100000 1100000 65 65 900000 900000 55 55 700000 700000 45 45 500000 500000 35 35 300000 300000 25 25 100000 100000 5 2002-08-14
Slide 6: Turnover, Results and Cash Flow
Turnover, Results and Cash Flow Boliden The Boliden Group First six months Change Second quarter Change SEK million 2002 2001 in % 2002 2001 in % Turnover 5 056 5 444 -7 2 651 2 548 4 Operating result 173 154 12 76 242 -69 Operating margin (%) 3.4 2.8 21 2.9 9.5 -69 Earnings after financial items 21
Slide 7: Mining Operations
Mining Operations Boliden Mines First six months Change Second quarter Change (SEK million) 2002 2001 in % 2002 2001 in % Turnover 1 084 961 13 604 482 25 Operating result 55 -356 - 45 -188 - Depreciation 144 255 -44 74 147 -50 Investments 122 186 -34 62 74 -16 Improved realized USD exchange rate Lo
Slide 8: Mining Areas
Mining Areas Boliden AITIK BOLIDEN AREA • Breakdown of ore conveyor belt Q1 • Improved milling efficiency • Lower grades • Increased production of precious • Costs - related to volume metals • New production equipment Q3 • Storliden Mine Q2 GARPENBERG MYRA FALLS • Increased production • Efficiency p
Slide 9: Metal Production
Metal Production Boliden First 6 months Change Second quarter Change Mines total 2002 2001 in % 2002 2001 in % Copper (tonnes) 34 289 45 202 -24 18 836 24 402 -23 Zinc (tonnes) 65 213 73 969 -12 41 174 37 796 9 Lead (tonnes) 8 950 9 252 -3 4 037 4 293 -6 Gold (ounces) 80 169 80 736 -1 43 037 44 382
Slide 10: Smelter Operations
Smelter Operations Boliden Smelters First 6 months Change Second quarter Change (SEK million) 2002 2001 in % 2002 2001 in % Turnover 3 639 3 538 3 1 853 1 708 8 Operating result 174 -19 - 80 -8 - Depreciation 145 105 38 73 53 38 Investments 30 70 -57 21 35 -40 Increased production – Lower smelting-
Slide 11: Metal Production
Metal Production Boliden First 6 months Change Second quarter Change Smelters total 2002 2001 in % 2002 2001 in % Copper(tonnes) 112 382 105 452 7 58 069 55 145 5 Zinc clinker (tonnes) 19 079 17 570 9 9 856 8 912 11 Lead (tonnes) 10 307 18 649 -45 3 978 9 239 -57 Gold (kg) 8 598 6 267 37 4 055 3 548
Slide 12: Fabrication
Fabrication Fabrication Boliden Fabrication First 6 months Change Second quarter Change (SEK million) 2002 2001 in % 2002 2001 in % Turnover 1 204 1 319 -9 617 613 1 Operating result 2 11 -82 -3 1 - Depreciation 28 30 -7 13 15 -13 Investments 21 12 75 12 6 100 Improved market shares for both Continu
Slide 13: Hedging
Hedging Boliden 2002 100% to USD/SEK 10:76 Exchange rates USD/SEK 2003 80% to USD/SEK 10:68 11 10.8 10.6 2004 80% to USD/SEK 10:61 10.4 10.2 10 2005-Q2 60% to USD/SEK 10:42 9.8 9.6 9.4 Floor 9.2 9 2003-- 2004-Q3 25% to USD/SEK 9:00 13 2002-08-14
Slide 14: Summary
Summary Boliden • Improved earnings after financial items for both the first 6 months and for the second quarter 2002, compared to the corresponding period of the previous year. • Considerable improvement of cash flow from the operations • Mines - Increased revenues and good results at Myra Falls. L