Boliden August 12, 216
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
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 158,228 12 Gold, kg 4,922 12 Silver, troz 13,454 29 Silver, kg 418,489 29 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
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
Operating cash flow 26-215 Operating cash flow, SEK bn 48.8 52,4 52,4 48.8 Boliden Group 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
Focusing on value creation in a volatile market Stable & efficient operation Organic growth investments Selective acquisitions
Strong technology know-how Concentrator technology Mine design Water and tailings management Flash smelting Direct leaching Electronic recycling Mobile control systems Boliden Group 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
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
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 216 3 2 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) 35 3 25 2 15 Mt Milligan (Canada) Huckleberry (Canada) Aitik (Sweden) Butte (USA) Gibraltar (Canada) Highland Valley (Canada) Morenci (USA) Sentinel (Zambia) Cerro Verde (Peru) 1 1 5 1 2 3 4 5 6 2 4 6 8 1 12 14 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
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
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, Q1 216. Boliden Group 14
Increased mine lives Our largest mines have long life and competitive positions Reserve life, years 3 25 2 15 1 5 Aitik Boliden Area Garpenberg Kylylahti Tara 25 215
M&A strategy Kevitsa acquisition meets all criteria Producing mines and projects Copper and zinc with by-products Synergies Mid size assets
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
Exploration 3 1 2 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
The Market Boliden Group 2
Copper price Copper price, USD/t 12 KTonnes 2 4 USD/t 7 Q2 Q3 Q4 Q1 Q2 1 2 6 5 6 8 1 6 5 5 5 6 1 2 4 5 4 8 4 apr-15 jul-15 okt-15 jan-16 apr-16 jul-16 2 26 26272728 28 29 2921 21 211 211 212 212213 213 214 214 215 215 216 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
Zinc price Zinc price, USD/t 5 KTonnes 2 USD/t 2 6 Q2 Q3 Q4 Q1 Q2 2 4 4 1 6 2 2 2 3 1 2 1 8 1 6 2 8 1 4 apr-15 jul-15 okt-15 jan-16 apr-16 jul-16 1 26 26 27 2728 28 29 292121211211212212213 213214214215 215216 216 LME inventory Shanghai inventory Price Price Q avg 4 Average price in Q2 vs. period Q1-16 Q4-15 Q3-15 Q2-15 14% 19% 4% -12% Note: Prices until 12 July 216 Boliden Group 22
Nickel price Nickel price, USD/t 6 KTonnes 6 USD/t 15 Q2 Q3 Q4 Q1 Q2 14 5 5 13 12 4 4 11 1 9 3 3 8 7 2 2 6 apr-15 jul-15 okt-15 jan-16 apr-16 jul-16 1 1 Average price in Q2 vs. period 26 2627 2728 28292921 21211 211212 212 213 213214 214215 215216 216 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
Gold, silver and lead prices Gold Gold price, USD/troy oz. 2 1 8 1 6 1 4 1 2 1 8 6 4 2 26 2627 27 28 28 29 29 21 21 211 211 212 212 213 213 214 214 215 215 216 216 Silver price, USD/troy oz. 6 5 4 3 2 Silver Lead price, USD/t 5 Lead 4 5 4 3 5 3 2 5 2 1 5 1 5 26 26 27 27 28 28 29 29 21 21 211 211 212 212 213 213 214 214 215 215 216 216 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% 1 26 2627 2728 2829 29 21 21211 211 212 21213 213 214 214 215 215 216 216 Note: Prices until 12 July 216 Boliden Group 24
Boliden market term index 14 12 1 8 6 4 2 M etal price/ TC index (USD) Cur rency index 14 12 1 8 6 4 2 W eighted Index Boliden Group 25
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