Boliden Ab · OMXSTO:BOL
Boliden Ab — Q2 2024 Earnings Presentation
27 slides from Boliden Ab's earnings presentation, Jul 19, 2024
Slide 1: Q2 2024 Results affected by insurance income and decision to reopen Tara
Q2 2024 Results affected by insurance income and decision to reopen Tara Mikael Staffas, President and CEO Håkan Gabrielsson, Executive Vice President and CFO July 19, 2024
Slide 2: Highlights
Highlights Preparations before first blast at Aitik’s Liikavaara satellite pit • Insurance income of SEK 2.4 billion in Rönnskär • Improved prices but lower treatment charges and premiums • Well executed planned maintenance shutdowns in Smelters • Low milled volume in Aitik • Liikavaara satellite pi
Slide 3: Financial performance
Financial performance Group Operating profit excl. PIR • Operating profit excl. PIR SEK 4,000 m (833) SEK m Rolling, • Items affecting comparability SEK 2,042 m SEK m 5,000 20,000 • Free cash flow SEK 401 m (-3,770) 4,500 18,000 4,000 16,000 • Capex SEK 3,726 m (4,217) 3,500 14,000 3,000 12,000 2,50
Slide 4: Key projects update
Key projects update Odda expansion EUR 950 m Rönnskär tankhouse SEK 4.8 billion • Construction nearing completion, • Groundwork started in May 2024 commissioning and preparation for startup ongoing • Ramp-up during H2 2026 • Power connected and new contract Boliden Area extension SEK 2.5 billion ent
Slide 5: ESG development
ESG development CO2e emissions, ktonnes 300 250 200 150 100 50 • CO2e emissions 221 ktonnes (184)* 0 Q1 Q2Q3Q4 Q1 Q2Q3Q4 Q1 Q2Q3Q4 Q1 Q2Q3Q4 Q1 Q2 2020 2021 2022 2023 2024 • Lost Time Injury Frequency 7.3 (6.4)** Accident frequency, rolling 12 months 10 5 • Sick leave 5.1% (5.0) 0 Q1 Q2 Q3 Q4 Q1 Q2
Slide 6: Market developments
Market developments • Base metal prices Prices and terms indices • Stronger base metals vs. previous quarter Metal price/ TC index (USD) Currency index Boliden weighted index • Weaker nickel vs. second quarter 2023 • Precious metal prices 225 200 • All time high for gold during the quarter 175 • Hig
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 9.8 Mtonnes (11.2) • Milled volume 2.3 Mtonnes (2.4) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2022 2023 2024 • Low equipment availability and • Copper grade 0.32% (0.21), Zinc in concent
Slide 9: Smelter production
Smelter production Copper cathodes, ktonnes 150 100 50 Rönnskär Kokkola 0 • Improved feed and copper • Strong production Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 anode production 2020 2021 2022 2023 2024 • Maintenance stop according to Zinc, ktonnes • Maintenance stop according to plan
Slide 10: Financial summary
Financial summary SEK m Q2 2024 Q2 2023 Q1 2024 Revenues 22,748 18,442 18,481 Operating profit before depreciation 6,420 2,519 3,237 Operating profit 4,814 874 1,615 Operating profit ex. PIR 4,000 833 1,212 Investments 3,726 4,217 3,445 Free cash flow 401 -3,770 -1,508 Earnings per share, SEK 13.20
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 2020 2021 2022 2023 2024 SEK m Q2 2024 Q2 2023 Q1 2024 Quarterly EBIT 12 months rolli
Slide 12: Operating profit deviation year on year
Prices and terms • Higher metal prices Operating profit deviation • Partially offset by lower premiums and TCs year on year Volumes • Inventory reduction • Less maintenance in Smelters • Lower milled volume in Tara and Aitik • Negative impact in Rönnskär after fire Costs • Tara in care and maintenan
Slide 13: Operating profit deviation quarter-on-quarter
Prices and terms • Higher metal prices, partially offset by: Operating profit deviation • Negative impact on internal profits quarter-on-quarter • Lower benchmark TCs and premiums Volumes • Higher volumes in Smelters despite maintenance stops • Q1 impacted by strikes and severe weather conditions •
Slide 14: Cash flow
Cash flow SEK m Q2 2024 Q2 2023 Q1 2024 Operating profit before depreciation and amortization excl. PIR 5,606 2,478 2,835 Cash flow from working capital -567 -1,681 187 Cash flow from investment activities -3,727 -4,220 -3,444 Financial items -295 -234 -203 Paid tax -547 -367 -1,063 Other -69 253 18
Slide 15: Capital structure
Capital structure 30 Jun 30 Jun 31 Mar SEK bn % SEK bn 2024 2023 2024 16 35 14 30 Total Assets 112.5 97.6 104.2 12 25 Capital Employed 77.6 69.8 74.1 10 20 Equity 59.7 55.2 58.5 8 15 6 Net debt 14.4 11.2 12.4 10 4 Net debt/equity, % 24 20 21 5 2 Net reclamation 0 0 liability/equity, % 6 6 6 -2 -5 Q1
Slide 16: Save the date
Save the date Boliden Capital Markets Days 2025 March 18–19, 2025 Conference in Bergen (close to airport) Site visit to the Odda smelter Full invitation for the event will be sent in September
Slide 17: Outlook
Outlook 2024 Capex • SEK 15.5 billion 2024 Smelters planned maintenance • SEK -400 m full year • SEK -50 m in Q3, SEK 0 m in Q4 Tara operating profit H2 2024 • Estimated at EUR -25 m per quarter 2024 Zn Cu Ni* Au Ag % g/tonne Aitik 0.17 0.08 Garpenberg 3.5 100 Kevitsa 0.28 0.20 Boliden Area 3.0 2.0
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 Q2 2024 interim report presentation 19
Slide 20: Financing
Financing SEK m Q2 2024 Q2 2023 Q1 2024 Debt to credit institutions 19,768 13,696 15,361 Other interest bearing debt 524 178 157 Pension liability 1,140 946 1,140 Interest bearing assets -1 0 -1 Cash -7,059 -3,589 -4,272 Total 14,372 11,231 12,386 SEK m Q2 2024 Q2 2023 Q1 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 11,149 3,972 3,534 234 204 Bilateral loans 5,938 5,938 610 3,575 1,753 Bonds 6,390 6,390 - 4,848 1,542 Commercial papers 3,468 3,468 3,468 - - Leases, other 523 523 155
Slide 22: Preliminary priced volumes
Preliminary priced volumes 30 Jun Preliminary priced volumes in Mines* 2024 Copper, ktonnes 3.9 Zinc, ktonnes 13.8 Nickel, ktonnes 2.3 Lead, ktonnes 3.1 Silver, kg 22,141 Gold, kg 865 Palladium, kg 162 Platinum, kg 251 * Preliminary priced volumes of metal in concentrate in Mines Q2 2024 interim rep
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 40 150 20 100 0 50 2019 2020 2021 2022 2023 2024 0 -20 2019 2020 2021 2022 2023 2024 Contract TC - annual and mid-year benchmark Standard grade spot TC Contract TC - realized Spot TC i
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 2,000 800 4,000 800 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 3,000 2,500 Average price in Q2 2024 vs period 2,000 Q1 2024 Q4 2023 Q3 2023 Q2 2023 1,500 Gold 13% 18% 21% 18% 1,000 500 Silver
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 Q2 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