Boliden Ab · OMXSTO:BOL

Boliden Ab — Q4 2022 Earnings Presentation

31 slides from Boliden Ab's earnings presentation, Feb 14, 2023

  1. Slide 1: Boliden – Metals for generations to come

    Boliden – Metals for generations to come Q4 Interim & Year-End Report 2022 Mikael Staffas, President and CEO Håkan Gabrielsson, CFO 2023-02-14 Q4 2022

  2. Slide 2: Q4 2022 – Strong cash flow despite large investments

    Q4 2022 – Strong cash flow despite large investments KEY HIGHLIGHTS PROJECTS  Favorable currencies  Good progress in Odda, Kristineberg  Lower grades and Aitik dam projects  Strong performance in Smelters  Improved productivity in Harjavalta Ni-line FINANCIAL PERFORMANCE  EBIT excl. PIR* 3,190

  3. Slide 3: Q4 2022 EBIT development Group

    Q4 2022 EBIT* development Group EBIT excl. PIR MSEK Rolling, MSEK  Group 3,190 (2,835) MSEK 5,000 16,500 4,500 15,000 4,000 13,500  Mines 1,512 (3,002) MSEK 12,000 3,500 10,500 3,000 9,000 2,500 7,500  Smelters 1,570 (553) MSEK 2,000 1,500 6,000 4,500 1,000 3,000 500 1,500 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q

  4. Slide 4: ESG is key in our purpose, vision and values

    ESG is key in our purpose, vision and values CO2 Intensity 1.0 Q4 2022 0.8  Lost Time Injury* 3.7 (6.9) 0.6  Sick leave 6.2 (5.6) 0.4  Carbon dioxide intensity of 0.61 (0.66) 0.2 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 2020 2021 2022 *Per million hours worked, in

  5. Slide 5: Boliden price index

    Boliden price index* Boliden price index 225 200 175  Favorable currencies 150 125 100  Strengthened metal prices during the 75 quarter 50 25 0  High metal premium  Improved spot TCs 225 200 175  Weaker sulphuric acid prices 150 125 100 75 50 25 0 *Index 100 = 1 January 2017 Q4 INTERIM & YEAR-E

  6. Slide 6: 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 30,000 4,500 10,000 25,000 4,000 3,500 8,000 20,000 3,000 6,000 2,500 15,000 2,000 4,000 10,000 1,500 1,000 2,000 5,000 500 0 0 0 Source: Wood Mackenzie 2022 Composite C1 cash cost* dat

  7. Slide 7: Mines – Q4 2022 production

    Metal content, Ktonnes Copper Mines – Q4 2022 production 40 30 Aitik 20  Milled volume 10.5 (11.2) Mtonnes 10  High short-term sick-leave 0  Cu grade 0.17 (0.23) % Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 2018 2019 2020 2021 2022 Garpenberg Zinc  Milled volume 746 (756) Ktonnes 100  Zn grade 3.

  8. Slide 8: Smelters – Q4 2022 production

    Metal production, Ktonnes Copper Smelters – Q4 2022 production 120 100 80 Harjavalta 60  Strong precious metal production 40 20  Improved production in Ni-line 0 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 2018 2019 2020 2021 2022 Rönnskär  Stable throughput Zinc  Strong precious metal production 1

  9. Slide 9: Group – Full Year 2022

    Group – Full Year 2022 EBIT excl. PIR MSEK  Record profit 18,000 ‒ EBIT excl. PIR 15,672 (10,318) MSEK 16,000  Improved prices & terms 14,000 ‒ Strong USD and base metal prices 12,000 ‒ Strong metal premiums and by-product prices 10,000 8,000  Improved volumes but lower grades in Mines 6,000 4,00

  10. Slide 10: Mines – Full Year 2022

    Mines – Full Year 2022 EBIT MSEK 4,000  EBIT 9,318 (8,761) MSEK 3,500 3,000  Strong development of prices & terms 2,500 2,000 1,500  Record milled volumes in Aitik and Kevitsa 1,000 500  Production disturbances in Tara in 1H 2022 0 -500 Aitik Boliden Garpenberg Kevitsa Kylylahti Tara  Lower ore

  11. Slide 11: Smelters – Full Year 2022

    Smelters – Full Year 2022 EBIT excl. PIR MSEK  EBIT excl. PIR 5,916 (2,903) MSEK 2,500 2,000  Strong development of prices & terms 1,500  Stable production across most units 1,000  Record high Au production 500 0  Improved Ni production Rönnskär Harjavalta Kokkola Odda Bergsöe 2021 2022  Lower

  12. Slide 12: Exploration 2022

    Exploration 2022 Kevitsa-Finnish Lapland – Cu, Ni, Au, PGM, Co  Exploration cost 770 (629) MSEK Aitik/Swedish Lapland– Cu, Au  Successful exploration in the Kristineberg expansion in the Boliden Area Skellefteå district – Zn, Cu, Au, Pb, Ag, Te  Accelerated exploration in Garpenberg to unlock pot

  13. Slide 13: Mineral Reserves end of 2022

    Mineral Reserves end of 2022  Aitik ‒ Reserves covering full production until 2047 (2050) Reserve life (years)** ‒ Cu reserve grade 0.23 (0.22) % 35 30  Boliden Area 25 20 ‒ Reserves covering full production until 2029 (2028) 15 10  Garpenberg 5 0 ‒ Reserves covering full production until 2055 (2

  14. Slide 14: Mineral Resources end of 2022

    Mineral Resources end of 2022  Aitik ‒ 1,147 (917) Mtonnes Arial view of Tara including Tara Deep  Boliden Area ‒ Strömfors 2.6 (2.6) Mtonnes ‒ Mineral Resources 27.2 (26.6) Mtonnes  Garpenberg ‒ New inferred resource “Stationen” discovered 5.5 Mtonnes ‒ Mineral Resources 89 (79) Mtonnes  Tara ‒

  15. Slide 15: Financial summary

    Financial summary MSEK Q4 2022 Q4 2021 Q3 2022 Revenues 23,577 17,755 19,480 EBITDA 5,004 4,722 5,013 EBIT 3,229 3,214 3,550 EBIT excl. PIR 3,190 2,835 3,484 Investments 3,712 1,971 2,532 Free cash flow 3,520 2,008 97 Earnings per share, SEK 9.42 9.27 9.90 Q4 INTERIM & YEAR-END REPORT 2022 15

  16. Slide 16: EBIT excl. PIR by Business Area

    EBIT excl. PIR by Business Area MSEK Q4 2022 Q4 2021 Q3 2022 Mines 1,512 3,002 1,964 Smelters 1,570 553 1,564 Other/eliminations 108 -721 -44 The Group 3,190 2,835 3,484 Mines Smelters MSEK Rolling, MSEK Rolling, MSEK MSEK 4,500 12,000 1,800 7,000 4,000 6,000 10,000 1,500 3,500 5,000 3,000 8,000 1,2

  17. Slide 17: EBIT deviation Q4 2022 vs Q4 2021

    EBIT deviation Q4 2022 vs Q4 2021 EBIT excl. PIR MSEK Stronger USD Higher metal premium and by-product prices Q4 2021 2,835 Partially offset by lower metal prices Prices and terms 1,404 Higher production in Smelters Whereof currency 1,288 Reduced inventories Offset by lower grades in Mines Volumes 1

  18. Slide 18: EBIT deviation Q4 2022 vs Q3 2022

    EBIT deviation Q4 2022 vs Q3 2022 EBIT excl. PIR MSEK Q3 2022 3,484 Higher metal prices, mainly Cu, Ni and Ag Prices and terms 297 Whereof currency 90 Volumes 429 Lower inventories and higher production in Smelters Costs -587 Depreciation -43 Inflation Seasonal cost increase Items affecting comparab

  19. Slide 19: Cash flow

    Cash flow MSEK Q4 2022 Q4 2021 Q3 2022 EBITDA excl. PIR 4,965 4,343 4,946 Cash flow from working capital 3,174 351 -1,696 Cash flow from investments -3,775 -1,986 -2,516 Financial items -7 -64 -147 Tax paid -1,028 -634 -628 Other 191 -1 137 Free cash flow 3,520 2,008 97 Q4 INTERIM & YEAR-END REPORT

  20. Slide 20: Capital structure

    Capital structure Net debt & Gearing SEK bn % SEK bn 31 Dec 2022 31 Dec 2021 30 Sep 2022 8 20 Total Assets 96.4 80.5 91.5 7 6 15 Capital Employed 62.2 53.4 63.1 5 Equity 58.3 50.9 55.1 4 10 Net debt 0.0 -0.9 3.7 3 Net debt/equity, % 0 -2 7 2 5 1 Net reclamation 0 0 liability/equity, % 5 5 5 -1 Avera

  21. Slide 21: Impairment of exploration rights in the Kylylahti area

    Impairment of exploration  Exploration rights in the Outokumpu rights in the Kylylahti area field were acquired together with the Kylylahti mine in 2014  Exploration activities in the area has been concluded  The asset was impaired in Q4 2022  Effect on Q4 2022 result ‒ EBIT -259 MSEK Inspection

  22. Slide 22: Outlook

    Outlook  Aitik ‒ 2023: Cu 0.17 %, Au 0.07 g/tonne  Garpenberg ‒ 2023: Zn 3.6 %, Ag 100 g/tonne ‒ 2023: 3.3 Mtonnes milled production  Kevitsa ‒ 2023: Grades slightly below average ‒ 2023: 10 Mtonnes milled production  Maintenance shutdowns ‒ 2023: -620 (-500) MSEK  Inflation pressure remaining

  23. Slide 23: 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 Q4 INTERIM & YEAR-END REPORT 2022 23

  24. Slide 24: APPENDIX

    APPENDIX Q4 INTERIM & YEAR-END REPORT 2022 24

  25. Slide 25: Financing

    Financing Net Debt MSEK Q4 2022 Q4 2021 Q3 2022 Debt to credit institutions 10,988 5,993 9,229 Other interest bearing debt 203 169 217 Pensions 953 1,180 1,195 Interest bearing assets -1 -9 -1 Cash -12,159 -8,251 -6,953 Total -15 -918 3,688 Net Payment Capacity MSEK Q4 2022 Q4 2021 Q3 2022 Not utili

  26. Slide 26: Loan structure

    Loan structure Maturity of which MSEK Reported value utilized < 1 year 1-5 years > 5 years Revolving credit facility 11,259 - - - - Bilateral loans 6,538 6,538 350 5,446 742 Bonds 4,450 4,450 - 3,700 750 Commercial papers - - - - - Leases, other 203 203 64 139 - Total 11,191 414 9,286 1,492 Q4 INTER

  27. Slide 27: Preliminary priced volumes

    Preliminary priced volumes Preliminary priced volumes in Mines* 31 Dec 2022 Copper, ktonnes 9.2 Zinc, ktonnes 20.4 Nickel, ktonnes 2.4 Lead, ktonnes 10.2 Silver, kg 71,230 Gold, kg 772 Palladium, kg 228 Platinum, kg 318 * Preliminary priced volumes of metal in concentrate in Mines Q4 INTERIM & YEAR-

  28. Slide 28: Copper and zinc treatment charges

    Copper and zinc treatment charges Copper TC Zinc TC USD/tonne USD/tonne concentrate concentrate 120 350 300 100 250 80 200 60 150 40 100 20 50 0 0 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 Contract TC - annual and mid-year benchmark Standard grade spot TC Contract TC - realized Spo

  29. Slide 29: Base metal prices

    Base metal prices USD/tonne ktonnes USD/tonne ktonnes Copper Nickel 15,000 2,400 50,000 2,500 2,000 40,000 2,000 10,000 1,600 30,000 1,500 1,200 5,000 800 20,000 1,000 400 10,000 500 0 0 0 0 LME inventory Shanghai inventory Comex inventory LME inventory Price Price Q avg Price Price Q avg USD/tonne

  30. Slide 30: Gold, silver and lead prices

    Gold, silver and lead prices USD/tonne USD/tr.oz. Lead 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/tr.oz. Gold 2,500 Average price in Q4 2022 vs period 2,000 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Gold 0% -8% -8% -4% 1,500 Silver 10% -6% -12% -9%

  31. Slide 31: This presentation has been prepared by Boliden for information purposes only

    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

Boliden — Q4 2022 Earnings Presentation on 6ix