This is Boliden. We Produce Metals For Modern Life

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1 This is Boliden We Produce Metals For Modern Life Nordic Mining Day 7th March 2016 Metro Toronto Convention Centre - PDAC by Manager International Exploration Henrik Grind Boliden Mines Exploration 1

2 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 Mines Exploration 2

3 This is Boliden - We Produce Metals For Modern Life Boliden extracts minerals and produces high quality metals, which are mainly sold to industrial customers in Europe. Care and consideration for people, society and the environment is evident in all our activities from exploration to customer deliveries. Boliden has been conducting exploration and mining operations and producing metal since the 1920s. Boliden has attained and sustained a competitive position within the fields of exploration, mining, concentration, smelting and recovery.

4 Boliden s mission, vision & strategy Mission Boliden produces metals that make modern life work. Vision Boliden shall be a world class metals company. Strategy 1. Stable and resource-efficient operations. 2. Elimination of production bottlenecks. 3. Expansion investments in in-house projects. 4. Acquisition of producing mines and mine projects Financial goals Return on capital employed Net debt/equity ratio Dividend Sustainability goals Zero accidents per month at all units Sick leave rate <3.0% At least 20% of the workforce female Reduce emissions and discharges to air and water Boliden Mines Exploration 4

5 This is Boliden A Nordic metals company with focus on sustainable development Core competencies: exploration, mining, smelting and metals recycling Mines, produces and sells copper, zinc, lead, silver and gold Five mining areas and five smelters Boliden Mines Exploration 5

6 Boliden s values Passion for improvements Value chain responsibility Personal commitment Boliden Mines Exploration 6

7 Strategy Stable and resource-efficient operations Elimination of production bottlenecks Expansion investments in in-house projects Acquisition of producing mines and mine projects Boliden Mines Exploration 7

8 Growth philosophy Acquisitions Investment-driven growth Bottleneck elimination Stable production New Boliden Way Boliden Mines Exploration 8

9 Financial goals Weighted Average Cost of Capital (WACC): 12% nominal in 2014 Return on capital employed: 8 % An average per annum return between 2010 and 2014 of around 12 per cent Net debt/equity ratio: a maximum of 20% in an economic upturn Result for 2014: 35 % Dividend: 1/3 of the net profit Proposal for 2014: SEK 2.25 Boliden Mines Exploration 9

10 Exploration Focus on zinc-, copper-, and precious metals-bearing deposits in Sweden, Finland and Ireland Target: a minimum of 10 years production lifespan in each mining area The amount of active projects make Boliden a European leader in exploration Boliden also acquired copper/nickel deposits in the Outokumpu field in conjunction with the purchase in 2014 of the Kylylahti copper mine in Finland Finding it Mining it Smelting it Selling it Boliden Mines Exploration 10

11 From exploration to mine Geological potential: 1 15 yrs. Mineral resources: 2 10 yrs. Mineral reserves: 1 5 yrs. Generating project ideas Evaluation of target areas Testing of target areas Delimitation of mineral resources Concept study Preliminary study Preproject Decision on starting a mine 10,000 1, Number of areas to test Finding it Mining it Smelting it Selling it Mineral resources are those parts of an indicated deposit that may be commercially extractable but which do not qualify for classification as a mineral reserve due to insufficient knowledge. Mineral reserves are those parts of a indicated deposit that can be reliably mined and processed in accordance with the company s profitability requirements. Boliden Mines Exploration 11

12 Boliden Mines Expertise in mine design, mining technology and metallurgy Extraction and concentration of zinc, copper, lead, gold, silver, and tellurium Focus on operational reliability, productivity and environmental performance Nine mines in five mining areas in Sweden, Ireland and Finland* * Boliden Kylylahti was acquired on 1 October 2014 Finding it Mining it Smelting it Selling it Boliden Mines Exploration 12

13 Boliden Smelters Expertise in process technology and metallurgy Production of high-quality metals from complex raw materials Focus on process stability and environmental performance Production of zinc, copper, gold, silver, lead and a number of alloys and byproducts Five smelters in Sweden, Finland, and Norway Finding it Mining it Smelting it Selling it Boliden Mines Exploration 13

14 Metals for European industry Mined concentrates for the Group s own and external smelters Zinc metal to steelworks for rustproofing (galvanisation) Copper metal to wire rod and copper rod manufacturers Lead to automotive battery manufacturers Gold and silver for industrial production and as an investment object Finding it Mining it Smelting it Selling it Boliden Mines Exploration 14

15 Boliden Mines 15 Exploration