Slide 1: Boliden – Metals for generations to come
Boliden – Metals for generations to come Q2 Interim Report 2023 Mikael Staffas, President and CEO Håkan Gabrielsson, CFO 2023-07-20 Q2 2023 Q2 INTERIM REPORT 2023 1
Slide 2: Q2 2023 – Fire in Rönnskär and low grades in Mines
Q2 2023 – Fire in Rönnskär and low grades in Mines KEY HIGHLIGHTS PROJECTS ▪ Fire at Rönnskär, production ▪ The projects in Odda, partly restarted Kristineberg and Aitik ▪ Weaker prices and terms are proceeding according to plan ▪ Tara put on care and maintenance ▪ Lower grades in Mines ▪ Major plan
Slide 3: Q2 2023 EBIT development Group
Q2 2023 EBIT* development Group EBIT excl. PIR MSEK Rolling, ▪ Group 833 (4,532) MSEK 5,000 MSEK 20,000 4,500 18,000 ▪ Mines 178 (2,727) MSEK 4,000 16,000 3,500 14,000 3,000 12,000 2,500 10,000 ▪ Smelters 700 (1,404) MSEK 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 Q
Slide 4: ESG is key in our purpose, vision and values
ESG is key in our purpose, vision and values CO2 emissions Ktonnes 300 Q2 2023 250 ▪ Lost Time Injury* 6.4 (3.2) 200 150 ▪ Sick leave, 5.0 (4.5) % 100 ▪ CO2 emissions** 190 (206) Ktonnes 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2019 2020 2021 2022 2023 *Per million hours worked, in
Slide 5: Declining prices and terms during Q2 2023
Boliden price index* Declining prices and terms during Q2 2023 225 200 175 150 125 ▪ Declining metal prices 100 75 ‒ Especially Zn 50 25 0 ▪ Declining sulfuric acid prices ▪ Declining premiums 225 200 175 ▪ Negative currency development 150 125 ‒ Stronger EUR 100 75 50 25 0 *Index 100 = 1 January 20
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 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 Source: Wood Mackenzie 2023 Composite C1 cash co
Slide 7: Mines – Q2 2023 production
Metal content, Ktonnes Copper Mines – Q2 2023 production 40 30 Aitik 20 ▪ Milled volume 11.2 (11.2) Mtonnes 10 ▪ Stable production 0 ▪ Cu grade 0.17 (0.21) % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2019 2020 2021 2022 2023 Garpenberg Zinc ▪ Milled volume 772 (804) Ktonnes 100 ▪ Zn grad
Slide 8: Smelters – Q2 2023 production
Metal production, Ktonnes Copper Smelters – Q2 2023 production 120 100 80 60 Harjavalta 40 20 ▪ Major maintenance stop 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Rönnskär 2019 2020 2021 2022 2023 ▪ Cell house fire Zinc 150 Kokkola 100 ▪ Stable production 50 Odda 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 9: Financial summary
Financial summary MSEK Q2 2023 Q2 2022 Q1 2023 Revenues 18,442 21,568 19,962 EBITDA 2,519 5,624 4,889 EBIT 874 4,078 3,405 EBIT excl. PIR 833 4,532 3,020 Investments 4,217 2,242 2,918 Free cash flow -3,770 2,038 -46 Earnings per share, SEK 1.90 11.54 9.29 Q2 INTERIM REPORT 2023 9
Slide 10: EBIT excl. PIR by Business Area
EBIT excl. PIR by Business Area MSEK Q2 2023 Q2 2022 Q1 2023 Mines 178 2,727 1,197 Smelters 700 1,404 1,497 Other/eliminations -44 401 326 The Group 833 4,532 3,020 Mines Smelters MSEK Rolling, MSEK Rolling, MSEK MSEK 3,500 14,000 2,000 8,000 3,000 12,000 1,600 6,400 2,500 10,000 2,000 8,000 1,200 4
Slide 11: EBIT deviation Q2 2023 vs Q2 2022
EBIT deviation Q2 2023 vs Q2 2022 EBIT excl. PIR MSEK Lower Zn and Cu prices Lower by-product prices Q2 2022 4,532 Prices and terms -841 Lower grades in Mines Fire in Rönnskär Whereof currency 278 Higher internal concentrate inventory Volumes -2,127 Costs -579 Inflation and planned maintenance in Sm
Slide 12: EBIT deviation Q2 2023 vs Q1 2023
EBIT deviation Q2 2023 vs Q1 2023 EBIT excl. PIR MSEK Q1 2023 3,020 Lower metal prices, in particular Zn Prices and terms -774 Whereof currency -120 Lower grades in Mines Volumes -1,044 Fire in Rönnskär Planned maintenance in Smelters Costs -89 Higher internal concentrate inventory Depreciation -59
Slide 13: Cash flow
Cash flow MSEK Q2 2023 Q2 2022 Q1 2023 EBITDA excl. PIR 2,478 6,079 4,504 Cash flow from working capital -1,681 -1,204 -260 Cash flow from investments -4,220 -2,242 -2,917 Financial items -234 -94 -204 Tax paid -367 -539 -1,036 Other 253 38 -133 Free cash flow -3,770 2,038 -46 Q2 INTERIM REPORT 2023
Slide 14: Capital structure
Capital structure Net debt & Gearing SEK bn % SEK bn 30 Jun 2023 30 Jun 2022 31 Dec 2022 12 25 Total Assets 97.6 84.4 96.4 10 Capital Employed 69.8 59.7 62.2 20 8 Equity 55.2 51.8 58.3 15 6 Net debt 11.2 3.7 0.0 4 10 Net debt/equity, % 20 7 0 2 Net reclamation 5 liability/equity, % 6 5 5 0 0 Average
Slide 15: Rönnskär fire update
▪ Rönnskär fire update Fire June 13th ‒ Cell house destroyed ‒ Production partially resumed ▪ Q2 2023 write down: - 163 MSEK ‒ -88 MSEK write down of property ‒ -75 MSEK reservation for clean up ▪ Additional estimated Q2 EBIT impact ‒ -200 MSEK business interruption ‒ -200 MSEK increased internal co
Slide 16: Tara put in care and maintenance
Tara put in care and ▪ Decision to put Tara in care and maintenance maintenance ‒ Low Zn prices ‒ High energy costs ‒ High Zn treatment charges ‒ General cost inflation ▪ Early retirement cost ‒ Q2 2023: Provision -53 MSEK ▪ Care and maintenance cost ‒ Q3 2023: EBIT -18 MEUR ‒ Q4 2023: EBIT -12 MEUR
Slide 17: Kevitsa update
Kevitsa update ▪ Reserves and Resources statement unchanged ‒ Cu reserve grade 0.34 % ‒ Ni* reserve grade 0.23 % ▪ 2023 grades lower due to revised mining plan ‒ Rock stability issues ‒ Q2 2023: Cu grade 0.21 %, Ni* grade 0.15 % ‒ 2023: Cu 0.25%, Ni* 0.18% *Nickel in Sulphides, Ni(S), Q2 INTERIM REP
Slide 18: Outlook
Outlook ▪ Aitik ‒ 2023: Cu 0.17%, Au 0.07 g/tonne ▪ Garpenberg ‒ 2023: Zn 3.6%, Ag 100 g/tonne ▪ Kevitsa ‒ 2023: Cu 0.25%, Ni* 0.18% ▪ Tara ‒ Q3 2023: EBIT -18 MEUR ‒ Q4 2023: EBIT -12 MEUR ▪ Maintenance shutdowns ‒ Q3 2023: -140 (-50) MSEK ‒ Q4 2023: 0 (-60) MSEK ▪ Rönnskär ‒ Lower EBIT due to fire
Slide 19: 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 Q2 INTERIM REPORT 2023 19
Slide 20: Appendix
APPENDIX Q2 INTERIM REPORT 2023 20
Slide 21: Financing
Financing Net Debt MSEK Q2 2023 Q2 2022 Q1 2023 Debt to credit institutions 13,696 7,957 12,655 Other interest bearing debt 178 225 189 Pensions 946 1,184 946 Interest bearing assets 0 -9 0 Cash -3,589 -5,677 -13,722 Total 11,231 3,681 68 Net Payment Capacity MSEK Q2 2023 Q2 2022 Q1 2023 Not utilize
Slide 22: Loan structure
Loan structure Maturity of which MSEK Reported value utilized < 1 year 1-5 years > 5 years Revolving credit facility 13,556 - - - - Bilateral loans 6,552 6,552 501 4,026 2,024 Bonds 5,864 5,864 750 4,053 1,060 Commercial papers 1,280 1,280 1,280 - - Leases, other 178 178 67 111 - Total 13,874 2,598
Slide 23: Preliminary priced volumes
Preliminary priced volumes Preliminary priced volumes in Mines* 30 Jun 2023 Copper, ktonnes 7.9 Zinc, ktonnes 12.4 Nickel, ktonnes 2.2 Lead, ktonnes 6.6 Silver, kg 44,929 Gold, kg 656 Palladium, kg 156 Platinum, kg 213 * Preliminary priced volumes of metal in concentrate in Mines Q2 INTERIM REPORT 2
Slide 24: Copper and zinc treatment charges
Copper and zinc treatment charges Copper TC Zinc TC USD/tonne USD/tonne concentrate concentrate 100 350 300 80 250 60 200 150 40 100 20 50 0 0 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 Contract TC - annual and mid-year benchmark Standard grade spot TC Contract TC - realized Spot TC
Slide 25: Base metal prices
Base metal prices USD/tonne ktonnes USD/tonne ktonnes Copper Zinc 15 000 2 400 5 000 2 000 2 000 4 000 1 600 10 000 1 600 3 000 1 200 1 200 5 000 800 2 000 800 400 1 000 400 0 0 0 0 LME inventory Shanghai inventory Comex inventory LME inventory Shanghai inventory Price Price Q avg Price Price Q avg
Slide 26: Gold, silver and lead prices
Gold, silver and lead prices USD/tr.oz. USD/tr.oz. Gold Silver 2 500 35 30 2 000 25 1 500 20 1 000 15 10 500 5 0 0 Price Price Q avg Price Price Q avg USD/tonne Lead 3 000 2 500 Average price in Q2 2023 vs period 2 000 1 500 Q1 2023 Q4 2022 Q3 2022 Q2 2022 1 000 Gold 5% 14% 14% 6% 500 Silver 7% 14%
Slide 27: 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