Boliden August 12, 2016

Transcription

1 Boliden August 12, 216

2 Benefiting from a combined mines and smelters strategy Stability through integration of mines and smelters Low political risk region Boliden Area Aitik Kevitsa Rönnskär World-class productivity in several assets Balanced metal mix Zinc, copper, nickel, lead Precious metals Tara Garpenberg Odda Kylylahti Kokkola Harjavalta Bergsöe Note: PIR Process Inventory Revaluation. Smelters Mines Boliden Group 2

3 Production volumes 215 Mines Metal in conc, t Volume % vs PY Zinc 298,661 2 Copper 84,491 8 Lead 62,373 3 Gold, troz 158, Gold, kg 4, Silver, troz 13, Silver, kg 418, Smelters Product, t Volume % vs PY Zinc 468,595 Copper 331,96-4 Lead 26,132 6 Lead alloys 45,161 3 Nickel in matte 17,115 - Gold, troz 566,115 1 Gold, kg 17,68 1 Silver, troz 21,365 7 Silver, kg 664,521 7 Sulphuric acid 1,664,932 Boliden Group 3

4 Financial performance 215 vs 214 MSEK FY 215 FY 214 Revenues 4,242 36,891 EBITDA 7,112 6,35 EBIT ex PIR* 4,1 2,65 Free cash flow 2,565 1,583 Net debt /equity 23% 35% *PIR = Process Inventory Revaluation Boliden Group 4

5 Operating cash flow Operating cash flow, SEK bn ,4 52, Boliden Group 6

6 Milestones 215 Garpenberg expansion finalised Kylylahti acquisition integrated New nickel business model implemented Odda expansion slightly ahead of time plan Action plan in Rönnskär on plan Production issues impacting Aitik Boliden Group 7

7 Focusing on value creation in a volatile market Stable & efficient operation Organic growth investments Selective acquisitions

8 Strong technology know-how Concentrator technology Mine design Water and tailings management Flash smelting Direct leaching Electronic recycling Mobile control systems Boliden Group 9

9 and in-house project management a differentiator General design Project management all disciplines No large turn-key contracts Standardized process - continuous improvements from previous projects

10 Delivering on time and on budget On time On budget Capex, BSEK Aitik 36 highest productivity in the world ~6.2 Rönnskär world s leading e-material facility ~1.3 Kankberg gold mine (no 1 tellurium mine) ~1. Garpenberg highest productivity in the world ~3.9

11 Strategy leading to world-class productivity Tonnes per man hour 4 Zinc Underground mines 216 Tonnes per man hour 4 Copper Open pit* mines with concentrator Bracemac (Canada) Pyhösalmi (Finland) Zinkgruvan (Sweden) Gordonsville (USA) Broken Hill (Australien) 777 (Canada) Tara East Tennessee (USA) Garpenberg (Sweden) (Ireland) Doe Run (USA) Aguas Tenidas (Spain) Mt Milligan (Canada) Huckleberry (Canada) Aitik (Sweden) Butte (USA) Gibraltar (Canada) Highland Valley (Canada) Morenci (USA) Sentinel (Zambia) Cerro Verde (Peru) Million tonnes ore milled per year Million tonnes ore milled per year Source: Wood Mackenzie, * Open pit and mines with mix open pit-underground Boliden Group 12 12

12 Aitik Boliden Area Aitik Kylylahti Boliden Area Boliden Area Garpenberg Tara Garpenberg Boliden Area Tara and improved positions for mines Zn 25 Zn 215 Cu 25 Cu 215 Note: C1 cast cost. Pro Rata Boliden Area and Garpenberg. Normal costing Aitik, Kylylahti and Tara Source: Wood Mackenzie Q4 215, cash cost for Kylylathi calculated by Boliden Boliden Group 13

13 Rönnskär Harjavalta Rönnskär Harjavalta Kokkola Odda Kokkola Odda as well as for our smelters Zn 25 Zn 215 Cu 25 Cu 215 Note: Cash margin, normal. Source: Wood Mackenzie Q4 215, Q Boliden Group 14

14 Increased mine lives Our largest mines have long life and competitive positions Reserve life, years Aitik Boliden Area Garpenberg Kylylahti Tara

15 M&A strategy Kevitsa acquisition meets all criteria Producing mines and projects Copper and zinc with by-products Synergies Mid size assets

16 Kevitsa consistent with strategy 1 Excellent operational and geographical fit 2 Early stage mine with expansion potential in attractive geological region 3 Establish in-house nickel feed base load and increase attractive copper feed 4 Timing

17 Exploration Precious metals Base metals Ferrous metals Special metals Energy metals Small Medium Large 4 1 Kiruna-Gällivare 2 Kevitsa-Sakatti 3 Skellefte district 4 Outokumpu area 5 Bergslagen 5 Boliden Group 19

18 The Market Boliden Group 2

19 Copper price Copper price, USD/t 12 KTonnes 2 4 USD/t 7 Q2 Q3 Q4 Q1 Q apr-15 jul-15 okt-15 jan-16 apr-16 jul LME inventory COMEX inventory Shanghai inventory Price Price Q avg 4 Average price in Q2 vs. period Q1-16 Q4-15 Q3-15 Q2-15 1% -3% -1% -22% Note: Prices until 12 July 216 Boliden Group 21

20 Zinc price Zinc price, USD/t 5 KTonnes 2 USD/t 2 6 Q2 Q3 Q4 Q1 Q apr-15 jul-15 okt-15 jan-16 apr-16 jul LME inventory Shanghai inventory Price Price Q avg 4 Average price in Q2 vs. period Q1-16 Q4-15 Q3-15 Q % 19% 4% -12% Note: Prices until 12 July 216 Boliden Group 22

21 Nickel price Nickel price, USD/t 6 KTonnes 6 USD/t 15 Q2 Q3 Q4 Q1 Q apr-15 jul-15 okt-15 jan-16 apr-16 jul Average price in Q2 vs. period LME inventory Price Price Q avg Q1-16 Q4-15 Q3-15 Q2-15 4% -7% -16% -32% Note: Prices until 12 July 216 Boliden Group 23

22 Gold, silver and lead prices Gold Gold price, USD/troy oz Silver price, USD/troy oz Silver Lead price, USD/t 5 Lead Average price in Q2 vs. period Q1-16 Q4-15 Q3-15 Q2-15 Gold 7% 14% 12% 6% Silver 13% 14% 13% 2% Lead -1% 2% % -11% Note: Prices until 12 July 216 Boliden Group 24

23 Boliden market term index M etal price/ TC index (USD) Cur rency index W eighted Index Boliden Group 25

24 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 risks and uncertainties. Nothing contained herein shall constitute any representation or warranty as to accuracy or completeness. Boliden has not made any independent verification of the information obtained from third parties. Nothing in this material shall be construed as an offer or solicitation to buy or sell any security or product, or to engage in or refrain from engaging in any transaction. Boliden does not accept any liability whatsoever arising from or in connection with the use of this information. Save as by prior approval in writing, this material may not be copied, transmitted or disclosed, whether in print, electronic or any other format. All rights to the material are reserved. Boliden Group 26

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