Boliden Ab · OMXSTO:BOL
Boliden Ab — Q1 2021 Earnings Presentation
25 slides from Boliden Ab's earnings presentation, Apr 27, 2021
Slide 1: Boliden – Metals for generations to come
Boliden – Metals for generations to come Q1 Interim Report 2021 Mikael Staffas, President and CEO Håkan Gabrielsson, CFO 2021-04-27 Q1 2021 Q1 INTERIM REPORT 2021 1
Slide 2: Q1 2021 – Strong cash flow
Q1 2021 – Strong cash flow KEY HIGHLIGTHS PROJECTS Strong prices and terms Kevitsa and Garpenberg at designed Stable production in Smelters capacity, Aitik still ramping up Production disturbances and On schedule: Rönnskär Cu expansion Covid-19 related issues in Mines and Harjavalta Ni exp
Slide 3: Q1 EBIT development Group
Q1 EBIT* development Group EBIT excl. PIR MSEK Rolling, MSEK Group 2,449 (1,504) MSEK 4,000 12,000 3,500 10,500 3,000 9,000 Mines 1,631 (318) MSEK 2,500 7,500 2,000 6,000 Smelters 949 (1,117) MSEK 1,500 4,500 1,000 3,000 500 1,500 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2017 201
Slide 4: ESG is key in our purpose, vision and values
ESG is key in our purpose, vision and values CO2 Intensity 1.0 Q1 2021 0.8 Lost Time Injury* 6.5 (6.5) Sick leave 5.2 (4.7) 0.6 ‒ Covid-19 0.4 Carbon dioxide intensity of 0.7 (0.6) ‒ Lower grades 0.2 ‒ Feed mix 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2017 2018 2019 2020 2021 *Pe
Slide 5: Boliden´s weighted index remains on historic highs
Boliden price index* Boliden´s weighted index remains on historic highs 200 175 150 125 100 Increased base metal prices 75 ‒ Especially Cu 50 25 0 High precious metal prices Slightly weaker USD 200 175 150 125 100 75 50 25 0 *Index 100 = 1 January 2016 Q1 INTERIM REPORT 2021 5
Slide 6: Zinc, Copper and Nickel prices relative to cash cost
Zinc, Copper and Nickel prices relative to cash cost Zinc Copper Nickel USD/tonne USD/tonne USD/tonne 4,000 12,000 30,000 3,500 10,000 25,000 3,000 8,000 20,000 2,500 2,000 6,000 15,000 1,500 4,000 10,000 1,000 2,000 5,000 500 0 0 0 Source: Wood Mackenzie 2021 Composite C1 cash cost* data, Refinitiv
Slide 7: Mines – Q1 production
Metal content, ktonnes Copper Mines – Q1 production 50 40 30 Garpenberg 20 Record production 10 Milled volume 0.82 (0.72) Mtonnes 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Zn grade 3.8 (3.9) %, Ag grade 118 (103) g/tonne 2017 2018 2019 2020 2021 Kevitsa Milled volume 2.4 (2.1) Mto
Slide 8: Smelters – Q1 production
Metal production, ktonnes Copper Smelters – Q1 production 120 100 80 60 40 Harjavalta 20 0 Record Cu and Au production Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2017 2018 2019 2020 2021 Lower Ni in matte production due to low energy content in Ni concentrates Zinc 150 100 Rönnskär 50
Slide 9: Financial summary
Financial summary MSEK Q1 2021 Q1 2020 Q4 2020 Revenues 17,083 13,210 16,170 EBITDA 4,100 2,693 4,685 EBIT 2,779 1,435 3,077 EBIT excl. PIR 2,449 1,504 3,043 Investments 1,087 1,823 1,703 Free cash flow 2,165 -845 2,750 Earnings per share, SEK 7.96 3.90 8.60 Q1 INTERIM REPORT 2021 9
Slide 10: EBIT excl. PIR by business areas
EBIT excl. PIR by business areas MSEK Q1 2021 Q1 2020 Q4 2020 Mines 1,631 318 1,858 Smelters 949 1,117 1,109 Other/eliminations -131 69 76 The Group 2,449 1,504 3,043 Mines Smelters MSEK Rolling, MSEK Rolling, MSEK MSEK 2,500 10,000 1,500 5,000 2,000 8,000 1,200 4,000 1,500 6,000 900 3,000 1,000 4,0
Slide 11: EBIT deviation Q1 2021 vs Q1 2020
EBIT deviation Q1 2021 vs Q1 2020 EBIT excl. PIR MSEK Higher metal prices Q1 2020 1,504 Weaker USD Lower Zn TC Prices and terms 960 Smelters – stable production Whereof currency -919 Mines – higher grades and recoveries partly offset lower milled volume Volumes 108 Reduced Inventories Costs -40 Low
Slide 12: EBIT deviation Q1 2021 vs Q4 2020
EBIT deviation Q1 2021 vs Q4 2020 EBIT excl. PIR MSEK Q4 2020 3,043 Higher base metal prices Weaker USD Prices and terms 478 Lower Zn TC Whereof currency -77 Mines – lower milled volume and grades Volumes -1,464 Smelters – lower free metals Costs 167 Less maintenance in Smelters Depreciation 275 Clo
Slide 13: Cash flow
Cash flow MSEK Q1 2021 Q1 2020 Q4 2020 EBITDA excl. PIR 3,769 2,762 4,651 Cash flow from working capital -122 -1,284 397 Cash flow from investments -1,076 -1,821 -1,698 Financial items -60 -65 -63 Tax paid -359 -409 -558 Other 13 -28 21 Free cash flow 2,165 -845 2,750 Q1 INTERIM REPORT 2021 13
Slide 14: Capital structure
Capital structure Net debt & Gearing SEK bn % SEK bn 31 Mar 2021 31 Mar 2020 31 Dec 2020 9 60 Total Assets 74.8 68.4 72.5 8 50 Capital Employed 51.7 52.6 51.0 7 Equity 48.2 43.3 45.6 6 40 5 Net debt 0.1 6.5 2.2 30 4 Net debt/equity, % 0 15 5 3 20 Net reclamation 2 liability/equity, % 5 5 5 10 1 Aver
Slide 15: Rävliden – Extension of Kristineberg mine and the Boliden Area
Rävliden – Extension of Kristineberg mine and the Boliden Area Kristineberg/Rävliden, possible mine layout Future proof Boliden Area SEK 1.25 bn Capex partially pending environmental permits Planned production start 2023 Rävliden*: Mineral resource of 8.4 (5.7)* Mtonnes @ 1.0% Cu, 4.2% Zn, 80
Slide 16: Outlook
Outlook Aitik ‒ 2021: Cu 0.21 %, Au 0.11 g/tonne Garpenberg ‒ 2021: Zn 3.8 %, Ag 110 g/tonne Maintenance stops ‒ 2021: -500 (-345) MSEK Capex ‒ 2021: Slightly above 7 BSEK Q1 INTERIM REPORT 2021 16
Slide 17: 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, Responsibility Q1 INTERIM REPORT 2021 17
Slide 18: APPENDIX
APPENDIX Q1 INTERIM REPORT 2021 18
Slide 19: Financing
Financing Net Debt MSEK Q1 2021 Q1 2020 Q4 2020 Debt to credit institutions 5,994 5,963 5,951 Other interest bearing debt 193 323 203 Pensions 1,165 1,119 1,159 Interest bearing assets -8 -20 -18 Cash -7,211 -852 -5,060 Total 132 6,534 2,236 Net Payment Capacity MSEK Q1 2021 Q1 2020 Q4 2020 Not util
Slide 20: Loan structure
Loan structure Maturity of which MSEK Reported value utilized < 1 year 1-5 years > 5 years Revolving credit facility 7,883 - - - - Bilateral loans 5,244 5,244 - 4,675 569 Bonds 750 750 - 750 - Commercial papers - - - - - Leases, other 193 193 52 141 - Total 6,187 52 5,566 569 Q1 INTERIM REPORT 2021
Slide 21: Preliminary priced volumes
Preliminary priced volumes Preliminary priced volumes in Mines* 31 Mar 2021 Copper, ktonnes 7.9 Zinc, ktonnes 24.2 Nickel, ktonnes 3.0 Lead, ktonnes 6.2 Silver, kg 63,344 Gold, kg 934 Palladium, kg 234 Platinum, kg 366 * Preliminary priced volumes of metal in concentrate in Mines Q1 INTERIM REPORT 2
Slide 22: Copper and Zinc Treatment Charges
Copper and Zinc Treatment Charges Copper TC Zinc TC USD/tonne USD/tonne concentrate concentrate 120 350 100 300 250 80 200 60 150 40 100 20 50 0 0 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Contract TC - annual and mid-year benchmark Standard grade spot TC Contract TC - realized Spot TC impor
Slide 23: Base metal prices
Base metal prices USD/tonne ktonnes USD/tonne ktonnes Copper Nickel 12,000 2,400 30,000 1,200 10,000 2,000 25,000 1,000 8,000 1,600 20,000 800 6,000 1,200 15,000 600 4,000 800 10,000 400 2,000 400 5,000 200 0 0 0 0 LME inventory Shanghai inventory Comex inventory LME inventory Price Price Q avg Pric
Slide 24: Gold, silver and lead prices
Gold, silver and lead prices USD/tonne USD/tr.oz. Lead Silver 3,000 40 2,500 30 2,000 1,500 20 1,000 10 500 0 0 Price Price Q avg Price Price Q avg USD/tr.oz. Gold 2,500 2,000 Average price in Q1 2021 vs period 1,500 Q4 2020 Q3 2020 Q2 2020 Q1 2020 1,000 Gold -4% -6% 5% 14% 500 Silver 8% 8% 60% 55%
Slide 25: 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 subject to ri