Boliden AB · OMXSTO:BOL
Boliden AB — Investor Day (November 2013)
34 slides from Boliden AB's investor day presentation, Nov 21, 2013
Slide 1: Boliden update & Market view
Boliden update & Market view CMD 21 November 2013 Lennart Evrell CEO, Boliden Group p
Slide 2: Market, Boliden vs peers, Strategy
Market Boliden vs peers Strategy
Slide 3: Long term demand outlook still looks solid
Long term demand outlook still looks solid Copper, kg 16 Global population Cu kg/capita S Korea Distr. GDP/Capita 14 >15 12 23% <5 44% 10 5‐15 8 Japan 33% 6 China EU27 USA Turkey 4 CIS Mexico 2 Vietnam N11 Indonesia India 0 0 5 10 15 20 25 30 35 40 45 50 55 GDP per capita PPP thousand US$ Källa: IMF
Slide 4: New supply in copper
New supply in copper Price D S Volume Boliden CMD 2013 4 2013-11-21
Slide 5: Depletions in zinc
Depletions in zinc Price D S Volume Boliden CMD 2013 5 2013-11-21
Slide 6: Trends OP-UG and grades
Trends OP-UG and grades Copper pp mining g 100% 2,65 90% 2,40 80% 2,15 70% Ave Grade ((Cu%) - Wt by Pd Cu 1,90 %) 60% Production (% 1,65 50% 1,40 40% 1,15 P 30% 0,90 20% 10% 0,65 0% 0,40 1990 1995 2000 2005 2010 2015 2020 2025 Cu from Open Pit Ore Cu from UG Ore Source: Wood Mackenzie Open Pit Grade
Slide 7: Size: Copper mines
Size Copper mines Ore treated, million tonnes – industry weighted averages 40 35 Aitik OP concentrate 30 25 20 15 10 5 0 1992 1995 1998 2001 2004 2007 2010 2013 2016 2019 2022 2025 Source: Wood Mackenzie Boliden CMD 2013 7 2013-11-21
Slide 8: Stripping ratio
Stripping ratio OP copper mines 4,5 Average Sttripping Rattio - Waste:Ore 40 4,0 Sweden World Chile 3,5 3,0 2,5 2,0 1,5 1,0 A 05 0,5 0,0 1980 1984 1988 1992 1996 2000 2004 2008 2012 2016 2020 2024 Source: Wood Mackenzie Boliden CMD 2013 8 2013-11-21
Slide 9: Capital cost for new projects (capital intensity)
Capital cost for new projects (capital intensity) US$/tonne Cu equivalent Greenfield Brownfield 30 18 Extension - mine Highly probable 16 Extension - mine + mill/Sx-Ew modification Extension - mine +new mill/Sx-Ew ("Greenfield") 25 Probable Restart Possible 14 Historic Base case 20 12 Historic 10 15
Slide 10: Exploration expenditures – non-ferrous metals
Exploration expenditures – non-ferrous metals bn US$ Di t ib ti b Distribution by metal t l 2013 Source: SNL MEG Boliden CMD 2013 10 2013-11-21
Slide 11: Cash cost years, Cu and Zn
Cash cost 5 years, Cu and Zn (composite costing) Boliden area Zinc 2013 Copper 2013 175 400 Average price oliden area Aitik Garpenberg 140 280 Tara 105 160 Average price Bo 70 40 35 -80 Boliiden area Zinc 2008 Copper 2008 175 400 400 ea Boliden are Average price Garpenberg Aitik 140 280 280 Tara 105
Slide 12: Cash cost development
Cash cost development Copper and zinc Copper industry average Zinc industry average 250 70 Realisation Realisation 60 By products 200 By products Cost to concentrate Cost to concentrate 50 Cash cost C1 150 Cash cost C1 40 30 100 20 50 10 0 0 -10 -50 -20 0 -100 -30 Boliden CMD 2013 12 2013-11-21
Slide 13: Price follows average mine site cost
Price follows average mine site cost Copper Mills 160 site Costs in c/lb (2012$) SxEw 370 pper Price c/llb (2012$) 140 All Operations 320 LME Price (RH axis) 120 270 100 220 verage Mines LME Cop 80 170 60 120 Av 40 70 1980 1984 1988 1992 1996 2000 2004 2008 2012 S Source W Wood dMMackenzie k i Bolid
Slide 14: Copper cash cost and price
Copper cash cost and price Composite costing Cents/lb Cents/lb 500 500 450 450 400 400 350 350 300 300 250 250 200 200 150 150 100 100 50 50 0 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 25th 50th 75th 90th Average price Max price Min price Source: Woo
Slide 15: Volatility 10 years
Volatility 10 years Prices Zn, Cu, Pb Au Ag US$/t Copper kt US$/t Zinc & Lead kt Price and metal stocks kt Zn, Pb Price and Zn metal stocks kt 12000 1000 5000 2000 10000 4000 1600 800 8000 600 3000 1200 6000 400 2000 800 4000 200 1000 400 2000 0 0 0 0 LME Comex SHFE Price (LHS) US$/t LME SHFE Zn pri
Slide 16: CRU thermometer 2017
CRU thermometer 2017 Boliden CMD 2013 16 2013-11-21
Slide 17: Market, Boliden vs peers, Strategy
Market Boliden vs peers Strategy Boliden CMD 2013 17 2013-11-21
Slide 18: TSR 5 years (2008-2013)
TSR 5 years…(2008-2013) % 600 500 400 300 200 100 0 Source: Reuters Datastream Boliden CMD 2013 18 2013-11-21
Slide 19: TSR previous 5 years (2003-2008)
TSR previous 5 years…(2003-2008) % 350 300 250 200 150 100 50 0 -50 Source: Reuters Datastream Boliden CMD 2013 19 2013-11-21
Slide 20: TSR this year
…TSR this year % 30 20 10 0 -10 -20 -30 30 -40 -50 Source: Reuters Datastream Boliden CMD 2013 20 2013-11-21
Slide 21: Benchmark Ranking Quartile
Benchmark Ranking Quartile Year 2013 (numbers rounded) Industry OP Aitik Percentile 1st 2nd 3rd 4th REVENUE VARIABLES Head Grade % Cu 1.1 0.2 98 ● Yield % 83 86 26 ● OPERATING VARIABLES Productivity Mine t ore/hour 12 40 1 ● Mill t ore/hour 26 166 0 ● G&A t ore/hour 53 583 0 ● Overall t ore/hour 6 3
Slide 22: Market, Boliden vs peers, Strategy
Market Boliden vs peers Strategy Boliden CMD 2013 22 2013-11-21
Slide 23: Winning Strategies, 5 years
Winning Strategies, 5 years O perational Excellence A cquisitions i iti P rojects % 600 P A A P P A O - A A - - O O A A P P 500 400 300 200 100 0 Boliden CMD 2013 23 2013-11-21
Slide 24: Boliden
Boliden Operational excellence Organic Growth ‒ Project execution critical Acquisitions ‒ At the right time, right price Boliden CMD 2013 24 2013-11-21
Slide 25: Operational Excellence
Operational Excellence NBW holistic management Wh Who we are H How we d do it Spider Web 1 Leadership 28 Continuous Improvement 5 2 Customer- Customer Supplier relations 27 Process Stability 3 NBW Plan Deployment ( A 3 ) 26 Team Management 4 4 Performance Management Continuous Improvements 25 Shippi
Slide 26: Under cover boss
Under cover boss Boliden CMD 2013 26 2013-11-21
Slide 27: Another day at work…
Another day at work… 27 2013-09-26
Slide 28: Cleaning floor, no shoes inside!
Cleaning floor, no shoes inside! 28 2013-09-26
Slide 29: Organic Growth: Project Execution
Organic Growth Project Execution Boliden CMD 2013 29 2013-11-21
Slide 30: Aitik vs Garpenberg 2.5
Aitik 36 vs Garpenberg 2.5 Boliden CMD 2012 30 2012-11-23
Slide 31: Acquisitions
Acquisitions More for sale Buyers are reluctant Some will be very good… Boliden CMD 2013 31 2013-11-21
Slide 32: Awards 2013
Awards 2013 Fifth best annual report in the world ‒ ReportWatch ranking of 400 companies SveMins EHS prize 2013 ‒ Boliden Garpenberg p g Swedish Industry Equal Opportunity Prize 2013 Boliden CMD 2013 32 2013-11-21
Slide 33: 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
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