Slide 1: Full Year Report 2003
Boliden Full Year Report 2003 February 10, 2004 1 February 10, 2004
Slide 2: New Boliden 2003
”New Boliden 2003” Boliden • Significant improvement of earnings after net financial items • The structural transaction between Boliden och Outokumpu was completed • Focus on mining and smelting operations • Increased financial strength and flexibility • New Boliden commenced operations on 1st Janua
Slide 3: LME Copper Price and Stock
LME Copper Price and Stock Boliden USc/lb tonnes 130 1000000 120 900000 110 800000 100 700000 90 600000 80 500000 70 400000 60 300000 2 3 02 03 04 02 03 2 3 2 3 2 3 4 l-0 l-0 -0 -0 -0 -0 -0 -0 -0 n- n- n- p- p- ov ov aj aj ar ar ar Ju Ju Ja Ja Ja Se Se M M M M M N N 3 February 10, 2004
Slide 4: LME Zinc Price and Stock
LME Zinc Price and Stock Boliden USc/lb tonnes 50 800000 45 700000 40 600000 35 500000 30 400000 03 2 3 04 02 02 03 2 3 2 3 2 4 3 l-0 l-0 -0 -0 -0 -0 -0 -0 -0 n- n- n- p- p- ov ov aj aj ar ar ar Ju Ju Ja Ja Ja Se Se M M M M M N N 4 February 10, 2004
Slide 5: Metal Prices
Metal Prices Boliden Metal prices Full year Change Fourth quarter Change (average LME/LBMA) 2003 2002 in % 2003 2002 in % Copper (USD/lb.) 0.81 0.71 14 0.93 0.71 31 Zinc (USD/lb.) 0.38 0.35 9 0.42 0.35 20 Lead (USD/lb.) 0.23 0.21 10 0.29 0.20 45 Gold (USD/oz) 364 310 17 392 323 21 Silver (USD/oz) 4.
Slide 6: Mines and Smelters 2003
Mines and Smelters 2003 Boliden • Increased production at the mines • Higher metal prices • Productivity increases – cost cutting at the operations Mines • Lower exchange rate for the US dollar • Lower smelting and refining charges • Planned maintenance shutdown at Rönnskär Smelters 6 February 10, 2
Slide 7: Operating Result 2003 Mines and Smelters
Operating Result 2003 Mines and Smelters Boliden 600 533 500 415 400 300 200 166 137 131 99 100 0 2002 Q1 2003 Q2 2003 Q3 2003 Q4 2003 2003 7 February 10, 2004
Slide 8: Business Area Mining Operations
Business Area Mining Operations Boliden • Increased production • Productivity improvements • Higher metal prices • Lower smelting and refining charges • Lappberget – high grades of zinc, silver and lead • Restructuring at Aitik • Lower exchange rate for the US dollar • Lower grades at Myra Falls 8 F
Slide 9: Metal Production 2003 Business Area Mining Operations
Metal Production 2003 Business Area Mining Operations Boliden Zinc Copper Lead Gold Silver 178 644 180 000 164 730 163 127 160 000 150 991 140 000 120 000 100 000 93 707 78 906 80 000 60 000 40 000 18 658 18 240 20 000 8 748 8 458 0 9 February 10, 2004 2003 2002
Slide 10: Operating Result 2003 Business Area Mining Operations
Operating Result 2003 Business Area Mining Operations Boliden 400 369 350 300 250 200 191 159 150 100 71 74 65 50 0 2002 Q1 2003 Q2 2003 Q3 2003 Q4 2003 2003 10 February 10, 2004
Slide 11: Business Area Smelting Operations
Business Area Smelting Operations Boliden • Higher metal prices • Increased sales at Bergsöe • Increased processing of internal copper concentrates and secondary raw materials • Lower smelting and refining charges • Lower exchange rate for the US dollar • Planned maintenance shutdown at Rönnskär 11
Slide 12: Production 2003 Business Area Smelting Operations
Production 2003 Business Area Smelting Operations Boliden Ktonnes Feed Cathodes 800 753.4 734.2 700 600 500 400 300 214.2 224.4 200 100 0 2003 2002 12 February 10, 2004
Slide 13: Operating Result 2003 Business Area Smelting Operations
Operating Result 2003 Business Area Smelting Operations Boliden 248 250 225 200 150 100 81 61 50 47 36 0 2002 Q1 2003 Q2 2003 Q3 2003 Q4 2003 2003 13 February 10, 2004
Slide 14: Operating Result 2003 Divested Operations
Operating Result 2003 Divested Operations Boliden 0 -6 -20 -13 -20 -40 -43 -60 -80 -100 -88 -120 -140 -160 -165 -180 2002 Q1 2003 Q2 2003 Q3 2003 Q4 2003 2003 14 February 10, 2004
Slide 15: Sensitivity Analysis USD/SEK 2004
Sensitivity Analysis USD/SEK 2004 Boliden Change in Effect on Change in Effect on Change - Effect on metal prices op. result USD +10% op.result smelting charges op. result +10% MSEK MSEK +10% MSEK Copper 153 USD/SEK 324 TC/RC Copper 30 Zinc 303 USD/CAD 49 TC Zinc 10 Lead 35 EUR/USD 218 TC Lead -6 Go
Slide 16: Hedging
Hedging Boliden Currency futures: P/L effect from currency futures, including closed-out contracts: 2004 9% to USD/SEK 10.64 2004 63% to USD/SEK 10.57 2005 4% to USD/SEK 10.29 2005 24% to USD/SEK 10.29 Options with Floor Växelkurs USD/SEK 12 2004 17% with floor 9.00 11 10 Options with Floor/Ceiling
Slide 17: New Boliden – Key Data
New Boliden – Key Data Boliden Sales Increase by 75% EUR 1.8bn 2004 Capital employed EUR 1. 4bn Increase by 80% Mining 20% Employees 4 800 Increase by 1 000 Smelting Main Mines in Sweden, Canada and Ireland 80% operations 5 smelters in Sweden, Finland and Norway Zinc 400,000 t/a Copper 100,000 t/a M
Slide 18: Boliden's Production Entities
Boliden’s Production Entities Boliden Aitik (Sweden) Rönnskär (Sweden) g Copper mine g Copper smelter Boliden Area (Sweden) Harjavalta/Pori (Finland) g Four zinc mines g Copper smelter Garpenberg (Sweden) Kokkola (Finland) g Two zinc mines g Zinc smelter Odda (Norway) g Zinc smelter Tara (Ireland) B
Slide 19: New Boliden 2004
”New Boliden 2004” Boliden • Boliden is the largest zinc-mining company in Europe and the fourth largest in the world • Boliden is the largest copper-smelting company in Europe and the eighth largest in the world • Boliden is the largest zinc-smelting company in Europe and the fifth largest in the w
Slide 20: www.boliden.com
Boliden www.boliden.com 20 February 10, 2004