Interim report January December 2012

Transcription

1 Interim report January December 212 Lennart Evrell President & CEO Mikael Staffas CFO

2 Summary Full year Revenues 4 1 (4 323) MSEK EBIT ex PIR* (5 8) MSEK Msek 2 5 Quarterly EBIT Quarterly EBIT excl PIR* Rolling Q EBIT excl PIR* 6 EBIT 4 71 (4 748) MSEK Free Cash Flow (-3) MSEK One-off tax effect 415 MSEK, non-cash 2 5 Proposed dividend 4 (4) SEK per share 4 Positive mineral resource development Q4 Revenues (9 716) MSEK EBIT ex PIR* 818 (991) MSEK EBIT 656 (1 75) MSEK Free Cash Flow 11 (-482) MSEK Weak mine production Lower margins in smelters Projects on plan Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q * PIR=Process Inventory Revaluation Boliden Group Q

3 The Market Boliden Group Q

4 Industrial production Year on year % World estimated by Boliden China BRIC World USA Euro Area Boliden calculation world IP and BRIC IP Boliden Group Q

5 Construction Year on year % China 1 USA -1 EU USA: construction spending value EU27: Index construction production China: fixed asset investments - cumulative value Boliden Group Q

6 Car production Year on year % China Germany US auto IP light vehicles China Germany US auto IP light vehicles Q1 212 Q2 212 Q3 212 Q Boliden Group Q

7 Zinc price and inventories USD/t LME Inventory Shanghai Inventory Price Price Q avg 1,8 1,6 1,4 1,2 1,,8,6 Millions Zinc price (LME average) USD/t Q4-12 vs period Q4 11 1,897 +3% Q1 12 2,25-4% Q2 12 1,928 +1% Q3 12 1,885 +3% Q4 12 1,947-1,4 5,2, USD/t Q3 Q4 1 8 Global zinc demand YoY up % End Q3 to end Q4: Price down 3% Inventories up 19% Boliden Group Q

8 Zinc TC and premiums USD/t concentrate Zinc treatment charge (TC) USD/t metal Zinc metal price premium Realised TC (including price participation) Spot TC - outturn Europe ex-works Far East (Western) US Midwest Delivered Source: CRU ( Spot TC improved Low smelter production, high mine production in China Source: CRU ( Zinc premium stable in Europe Boliden Group Q

9 Copper price and inventories USD/t LME Inventory Shanghai Inventory COMEX Inventory Price Price Q avg ,6 1,4 1,2 1,,8,6 Millions Copper price (LME average) USD/t Q4-12 vs period Q4 11 7,489 +6% Q1 11 8,31-5% Q2 12 7,869 +1% Q3 12 7,76 +3% Q4 12 7,99-3,4 2,2 1, USD/t Q3 Q4 Global copper demand YoY up % End Q3 to end Q4: Price down by 4% Inventories up 37% Boliden Group Q

10 Copper TC and premiums USD/t concentrate Copper treatment charge (TC) USD/t metal Copper metal price premium TC annual and mid-year benchmark contract Standard grade spot TC US$/dmt Spot Copper premium CIF W. Europe Benchmark CIF Europe Source: CRU ( Spot TC improved Low volumes, single trades influenced in Q4 Source: CRU Sep 212 ( Copper premium stable in Q4 Boliden Group Q

11 Gold, Silver and Lead prices USD/oz USD/oz Gold Silver USD/t Lead Inventory Price Price Q avg Average prices Q4 212 vs period Q4-11 Q3-12 Gold +2% +4% Silver +3% +1% Lead +11% +11% Thousands Boliden Group Q

12 Market situation summary Q4 Metal demand European demand weaker Zinc demand in China up Metal supply Copper concentrate output up Zinc concentrate output stable Zinc metal production down YoY % Q1-12 Q2-12 Q3-12 Q4-12 Zinc Concentrate supply Metal production Metals demand Copper Concentrate supply Metal production Metals demand Lead Concentrate supply Metal production Metals demand Source: CRU January 213 ( Boliden Group Q

13 Mines Boliden Group Q

14 Mines Summary EBIT 517 (646) MSEK 842 MSEK in Q3 212 Garpenberg in lower grade areas Low production in Tara High unit costs Msek Quarterly EBIT Rolling 4Q EBIT Negotiations ongoing Aitik production disturbances Boliden area ore mix change Less copper, more zinc Projects on plan Capex 1,87 (82) MSEK Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Boliden Group Q

15 Mines Full Year EBIT by Unit MSEK 4 5 Aitik Boliden area Garpenberg Tara Mines total Boliden Group Q

16 Mines Production 1 Milled ore, mtonnes Copper Metal content, ktonnes 24 Milled ore, mtonnes 1,5 Zinc Metal content, ktonnes , , , ,3 2 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Milled ore (Aitik) Metal content, Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Milled ore Zinc metal content Milled ore lower, disturbances in Aitik Copper production in Boliden Area down, ore mix change Garpenberg mining in low zinc grade areas Lower grade, production disturbances in Tara Higher zink production in Boliden Area Boliden Group Q

17 Mineral Reserves & Resources Boliden Group Q

18 Mineral Reserves & Mineral Resources Resources increased in all mines Continued reserve increase in Garpenberg and Boliden Area Resources increase Aitik, low grades New additions to mineral resources Laver, 69 Mt low grade Cu, Au, Mo Rockliden, 4,5 Mt Cu, Zn, Ag, Pb Exploration in (282) MSEK 228 m drilled (19 ) Boliden Group Q

19 Aitik and Boliden Area Aitik Boliden Area Thousands Inferred Measured/Indicated Inferred Measured/Indicated Proven/Probable Production*1 Proven/Probable Production*1 Mineral reserves unchanged Mineral resources large increase but low grades Both reserves & resources increased Boliden Group Q

20 Garpenberg and Tara Garpenberg Tara Inferred Measured/Indicated Inferred Measured/Indicated Proven/Probable Production*1 Proven/Probable Production*1 Both reserves & resources increased Mineral reserves down, slight increase in resources Boliden Group Q

21 Smelters Boliden Group Q

22 Smelters Summary EBIT ex PIR* 191 (326) MSEK 292 MSEK in Q3 212 Rönnskär production instability Odda direct leaching disruption EBIT -4 MSEK Costs Seasonally higher vs Q3 In line with Q4 211 Capex 277 (514) MSEK Msek Quarterly EBIT Quarterly EBIT excl PIR* Rolling 4Q EBIT excl PIR* Kokkola silver recovery project on plan 4 2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Boliden Group Q

23 Smelters Full Year EBIT excl PIR by Unit MSEK 1 2 Bergsöe Odda Kokkola Harjavalta Rönnskär Smelters total Boliden Group Q

24 Smelters Production Total feed, ktonnes 4 Copper Cathode production, ktonnes 1 Total feed, ktonnes 25 Zinc Metal production, ktonnes Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Copper feed, total Cathode production Zinc feed, total Zinc metal production Feed and production up Improved production in Harjavalta Stable production in Kokkola Production disturbances in Odda Boliden Group Q

25 Financials Boliden Group Q

26 Financial development Summary MSEK Q4 212 Q4 211 Q3 212 Revenues 1,194 9,716 9,123 EBITDA 1,171 1,552 1,76 EBIT 656 1,75 1,146 EBIT ex PIR Investments 1,366 1, Free cashflow Earnings per share, SEK Net debt / equity ratio, % Includes non-cash one-off tax effect of 1.52 per share (415 MSEK) Boliden Group Q

27 EBIT analysis Q4 vs Q3 MSEK Q4 212 Q3 212 EBIT 656 1,146 Process inventory revaluation (PIR) EBIT excl. PIR Deviation -155 Specification of deviation Volume -28 Prices and Terms (incl. hedges) -48 Currency effects -31 Costs -194 Depreciation 14 Internal profit elimination 278 Others 15 Deviation -155 Result for respective period Realized Metal- and Currency hedge 7 93 Lower production in Mines Lower prices and terms for by-products and lower metal prices in beginning of quarter Production disturbances and season variation More underground mining Correction in Tara, -79 MSEK in Q3 Boliden Group Q

28 EBIT analysis Q4 vs Q4 MSEK Q4 212 Q4 211 EBIT 656 1,75 Process inventory revaluation (PIR) EBIT excl. PIR Deviation -173 Specification of deviation Volume -135 Prices and Terms (incl. hedges) -123 Currency effects -3 Costs -9 Depreciation -44 Internal profit elimination 143 Others 15 Deviation -173 Result for respective period Realized Metal- and Currency hedge 7 19 Lower production Mines Modest increase from BoRe Lower prices and terms Smelters 125 MSEK in reclamation provisions 211 Boliden Group Q

29 Financial development 212 vs 211 MSEK Revenues 4,1 9,716 EBITDA 6,287 6,674 EBIT 4,71 4,748 EBIT ex PIR 3,941 5,8 Investments 4,185 3,998 Free cashflow 1,389-3 Earnings per share, SEK Net debt / equity ratio, % Boliden Group Q

30 Cash flow MSEK EBITDA* (Operating profit before depr.) 6,288 6,674 PIR Change inventories Change payables Change receivables Other 5 Change in working capital 32-1,17 Cash flow from investments -4,129-4,24 Financial items Tax paid ,54 Other Free cash flow 1,389-3 * Includes PIR=Process Inventory Revaluation Boliden Group Q

31 Capital structure SEK billion 31 Dec Dec 211 MSEK 1 Net debt & Gearing % 5 Total assets 4, Capital employed 31,4 3.5 Shareholders equity 22, Net debt 5, Net debt /equity ratio, % Equity/assets ratio, % Loan duration, years 3,5 3,3 Average loan interest, % 3,1 3,29 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Interest duration, years,9 1, Net payment capacity 9,2 8,7 Net debt Gearing Boliden Group Q

32 Accounting specifics in Q4 and after Q4 (212) Lower corporate tax rate in Sweden From 26,3 to 22 % Non-cash effect 212: 415 MSEK Positive impact on net profit and EPS Future reclamation costs Reclamation provision increased by 538 MSEK No effect on profits and C/F 212 Annual effect from 213: Depreciations +3 MESEK Financial costs +1 MSEK Post Q4 (January 213) Diesel with wrong tax-rate used in Aitik Mistake with no financial benefit Taxes paid as if correct diesel was used Authorities intend to impose tax liability of 212 MSEK plus interest If final ruling is negative, Boliden will appeal No provision Boliden Group Q

33 Project update Aitik on plan to 36 Mt 214 Rönnskär E-recycling at full capacity Kankberg Mine production started early Gold leaching started Tellurium leaching trimming-in phase Silver recovery Kokkola on plan Garpenberg on plan Underground infrastructure, shafts, concentrator Start-up first half 214, full production end 215 Aitik45 feasibility under way Laver conceptual study started Boliden Group Q

34 Summary General Macro somewhat better but uncertainty remains Metal prices stable By-products lower Operations Aitik on low grades for two years Garpenberg in low grade areas Mix change in Boliden area Kankberg start Depletion of Maurliden Östra (Cu) and gold in Kristineberg Shift from open pit to underground Cost programs in Tara and Odda Projects on plan Improved mineral reserves and resources Maintenance stops 213 EBIT -325 MSEK Whereof approx. -3 in Q2 Boliden Group Q

35 Disclaimer This presentation has been prepared by Boliden for information purposes only. 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. This presentation has been prepared as per the indicated date and Boliden does not undertake any obligation to correct or update the information or any statements made therein. Views that may have been expressed may be subject to change without notice. Certain statements in this presentation are forward-looking and are based on plans, estimates, assumptions, projections and expectations and are subject to risks and uncertainties. In addition to the factors explicitly discussed, other circumstances may also have a material effect on the actual outcome. Such factors include, but are not limited to, general economic or political conditions, fluctuations in exchange or interest rates or metal prices, technological factors, interruptions in supply or production, actions of courts, regulators, governmental agencies, competitors, customers, suppliers, employees or other third parties. Nothing contained herein shall constitute any representation or warranty as to the accuracy or completeness and Boliden accepts no responsibility or liability as to the accuracy or completeness of the information contained herein. The material may include information from third party sources believed to be reliable. However, Boliden has not made an independent verification of the information provided. 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 does not accept any liability whatsoever for any direct, indirect, consequential or other loss arising from or in connection with any use of this information. This material has not been reviewed, registered or approved by any authority under any applicable laws. Boliden Group Q

36 Metals for modern life Boliden Group Q