2021 Post Q1 2021 General Presentation Mikael Staffas, President & CEO Håkan Gabrielsson, CFO Boliden – Metals for generations to come
2021
Post Q1 2021 General Presentation
Mikael Staffas, President & CEO
Håkan Gabrielsson, CFO
Boliden – Metals for
generations to come
Agenda
Boliden: Introduction
Performance up until Q1 2021
The Metals market post Q1 2021
Boliden´s value creation strategy
- Key focus areas
Summary & QA
Mikael Staffas
President & CEO
Håkan Gabrielsson
CFO
2GENERAL PRESENTATION POST Q1 2021
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
GENERAL PRESENTATION POST Q1 2021 3
Boliden – Metals for modern life
4
Founded in 1924
~6,000 employees
Mines & Smelters
Most exposure to Zn and Cu
Industrial customer base in northern Europe
0
2,000
4,000
6,000
8,000
10,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
SEKm
EBIT* ex. PIR
* PIR=Process Inventory Revaluation
GENERAL PRESENTATION POST Q1 2021
Boliden´s contradictions are key to our success…
Small
~6,000 employees
Local
Strong link to local communities
Conservative
Preserving and valuing its culture
5
Large
Listed on OMX Large Cap
Global
Global network and smelter sourcing
Cutting edge in technology
Highly automated
Co-worker at the Boliden mine in 1936 Present Electric trolley at the Aitik mine
GENERAL PRESENTATION POST Q1 2021
… along decentralized management*
6
Linn Andersson,
Boliden Rönnskär
Peter Bergman,
Boliden Area
Jenny Gotthardsson,
Boliden Garpenberg
Fredrik Kanth
Boliden BergsöeAntti Kontiainen,
Boliden Kokkola
Gunnar Nyström,
Boliden Tara
Hans Jönsson,
Boliden AitikHenrik Grind,
Boliden Kevitsa
Timo Rautalahti,
Boliden Harjavalta
Helen Seim,
Boliden Odda
* On average our 10 General managers have 27 years of work experience
from the Metals & Mining industry, whereof 16 years as Boliden employees.
GENERAL PRESENTATION POST Q1 2021
World leading productivity in open pit andunderground mines
7
Source: Wood Mackenzie 2020,
(1) Copper: Open pit and mines with both open pit / underground operations, Zinc: underground and mixed underground/open pit mines
C1 Cash Cost (US¢/lb) composite costing
Boliden
Area
Garpenberg
Tara
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
0 5 10 15
Tonnes per
manhour
Million tonnes of milled ore
Zinc - underground mines*
Aitik
Kevitsa
0
5
10
15
20
25
30
35
0 20 40 60 80 100 120 140 160
Tonnes per
manhour
Million tonnes of milled ore
Copper – open pit mines*
GENERAL PRESENTATION POST Q1 2021
Enhanced cost position in open pit and underground mines
8
Source: Wood Mackenzie 2020,
(1) Copper: Open pit and mines with both open pit / underground operations, Zinc: underground and mixed underground/open pit mines
C1 Cash Cost (US¢/lb) composite costing
Aitik 2020
Aitik 2010
-100
-50
0
50
100
150
200
250
300
0% 20% 40% 60% 80% 100%
Coppercomposite mining cash cost USc/lb
2020 2010
Garpenberg
Boliden Area
Tara
Garpenberg
Boliden AreaTara
-30
-10
10
30
50
70
90
110
130
150
0% 20% 40% 60% 80% 100%
Zinc –composite mining cash cost USc/lb
2020 2010
GENERAL PRESENTATION POST Q1 2021
9
ESG is key in our purpose, vision and values
Q1 2021
Lost Time Injury* 6.5 (6.5)
Sick leave 5.2 (4.7) ‒ Covid-19
Carbon dioxide intensity of 0.7 (0.6)‒ Lower grades
‒ Feed mix
CO2 Intensity
*Per million hours worked, including contractors
0.0
0.2
0.4
0.6
0.8
1.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2017 2018 2019 2020 2021
GENERAL PRESENTATION POST Q1 2021
Four million car batteries per year
E-scrap equivalent to two million mobile
phones per day
Steel mill dust
Zinc ashes
Incinerated waste
We are a front runner in recycling…
10
Circular Economy
Rönnskär
– a world leading recycler of
electronic material
Bergsöe
- one of Europe’s
largest recycling
facilities for lead
batteries
GENERAL PRESENTATION POST Q1 2021
Just above 30 active and
decommissioned mines
2.3 BSEK net reclamation liability
Net reclamation liability is included in our
capital structure goal*
* Boliden’s capital structure goal; the sum of net debt and net reclamation liability shall,
comprise approximately 20% of equity in an economic upturn.
…and taking long term responsibility for our metal supply
11
Rackejaur (decommissioned mine in the Boliden Area)
GENERAL PRESENTATION POST Q1 2021
Competitively low carbon footprint compared to global averages (nickel)
12
Nickel integrated Kevitsa - Harjavalta CO2 emissions scope 1+2
Source: Wood Mackenzie
GENERAL PRESENTATION POST Q1 2021
Competitively low carbon footprint compared to global averages (zinc)
13
Source: Wood Mackenzie Zinc Emissions
benchmarking tool
Weighted AverageWeighted Average
GENERAL PRESENTATION POST Q1 2021
Boliden’s climate target is to reduce CO2
intensity by 40% 2012-2030
‒ 2012: 0.77
‒ 2020: 0.61
‒ Target 2030: 0.46
We will achieve this by
‒ Increased electrification
‒ Optimized ventilation
‒ Energy efficiency
‒ Alternative reduction agents
‒ Improved energy mix
Further reduction of CO2 from an already strong position
14
Aitik
GENERAL PRESENTATION POST Q1 2021
Boliden is a new member in the International
Council on Mining and Metals (ICMM)
‒ Adherence to ICMM's principles to ensure a safe, fair,
sustainable and transparent mining and metals industry
We are committed to implement the Global
Industry Standard on Tailings Management
according to the set timelines
Responsible tailings management of highest priority
15
Kevitsa
GENERAL PRESENTATION POST Q1 2021
16
Q1 2021 – Strong cash flow
KEY HIGHLIGTHS
Strong prices and terms
Stable production in Smelters
Production disturbances and
Covid-19 related issues in Mines
FINANCIAL PERFORMANCE
EBIT excl. PIR* 2,449 (1,504) MSEK
Free cash flow 2,165 (-845) MSEK
Capex 1.1 (1.8) BSEK
PROJECTS
Kevitsa and Garpenberg at designed
capacity, Aitik still ramping up
On schedule: Rönnskär Cu expansion
and Harjavalta Ni expansion
Decision to expand Kristineberg within
the Boliden area (Rävliden
mineralization)
Leach plant in Rönnskär under
commission
*PIR (Process Inventory Revaluation)
GENERAL PRESENTATION POST Q1 2021
17
EBIT excl. PIR by business areas
Mines Smelters
MSEK Q1 2021 Q1 2020 Q4 2020
1,631 318 1,858
949 1,117 1,109
-131 69 76
2,449 1,504 3,043
Mines
Smelters
Other/eliminations
The Group
0
2,000
4,000
6,000
8,000
10,000
0
500
1,000
1,500
2,000
2,500
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2017 2018 2019 2020 2021
Rolling,MSEK
MSEK
Quarterly EBIT 12 months rolling EBIT
0
1,000
2,000
3,000
4,000
5,000
0
300
600
900
1,200
1,500
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2017 2018 2019 2020 2021
Rolling,MSEK
MSEK
Quarterly EBIT excl.PIR 12 months rolling EBIT excl.PIR
GENERAL PRESENTATION POST Q1 2021
18
Cash flow
MSEK Q1 2021 Q1 2020 Q4 2020
3,769 2,762 4,651
-122 -1,284 397
-1,076 -1,821 -1,698
-60 -65 -63
-359 -409 -558
13 -28 21
2,165 -845 2,750Free cash flow
Cash flow from investments
EBITDA excl. PIR
Cash flow from working capital
Financial items
Tax paid
Other
GENERAL PRESENTATION POST Q1 2021
19
Capital structure
Net debt & Gearing
SEK bn 31 Mar 2021 31 Mar 2020 31 Dec 2020
Total Assets 74.8 68.4 72.5
Capital Employed 51.7 52.6 51.0
Equity 48.2 43.3 45.6
Net debt 0.1 6.5 2.2
Net debt/equity, % 0 15 5
Net reclamation
liability/equity, % 5 5 5
Average interest rate, % 1.6 1.1 1.6
Net payment capacity 15.0 6.8 12.70
10
20
30
40
50
60
0
1
2
3
4
5
6
7
8
9
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2017 2018 2019 2020 2021
%SEK bn
Net debt Net debt/equity ratio
GENERAL PRESENTATION POST Q1 2021
20
Zinc, Copper and Nickel prices relative to cash cost
Source: Wood Mackenzie 2021 Composite C1 cash cost* data, Refinitiv Datastream April 23, 2021 price data
* Composite costing, C1 cash cost: normal C1 mines for mines with net revenue from one metal > 65% total net revenue, pro-rata for other mines
Zinc Copper Nickel
USD/tonne USD/tonne USD/tonne
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
0
5,000
10,000
15,000
20,000
25,000
30,000
0
2,000
4,000
6,000
8,000
10,000
12,000
GENERAL PRESENTATION POST Q1 2021
21
Copper and Zinc Treatment Charges
Contract benchmark according to market sources including CRU
Copper TC Zinc TC
0
20
40
60
80
100
120
2017 2018 2019 2020 2021
USD/tonne
concentrate
Contract TC - annual and mid-year benchmark
Standard grade spot TC
0
50
100
150
200
250
300
350
2017 2018 2019 2020 2021
USD/tonne
concentrate
Contract TC - realized Spot TC imported concentrate to China
GENERAL PRESENTATION POST Q1 2021
22
Boliden´s weighted index remains on historic highs
Increased base metal prices‒ Especially Cu
High precious metal prices
Slightly weaker USD
Boliden price index*
*Index 100 = 1 January 2016
0
25
50
75
100
125
150
175
200
0
25
50
75
100
125
150
175
200
GENERAL PRESENTATION POST Q1 2021
Long-term commitment to financial targets and dividend policy
23
Net Debt/Equity
at about 20%
at economic
peaks*
Return on
investments
≥ 10%
Dividend policy:
1/3 of
net profit
*The target also includes net reclamation liability
GENERAL PRESENTATION POST Q1 2021
0
5
10
15
20
25
30
35
Aitik Boliden Area Garpenberg Tara Kevitsa
2010 2020
Exploration
Exploration cost 504 (570) MSEK‒ Reduced activities due to Covid-19
‒ Drift to Tara Deep 76% completed
‒ 2021: >700 MSEK
New partnerships ‒ Norden Crown Metals Corp. (Norway)
‒ Buchans Resources Limited (Canada)
24
Kevitsa-Finnish Lapland – Cu, Ni, Au, PGM, Co
Aitik/Gällivare – Cu, Au, Ag
Skellefteå district – Zn, Cu, Au, Pb, Ag, Te
Outokumpu area – Cu, Ni, Au, Co, Zn
Garpenberg/Bergslagen – Zn, Ag, Pb, Cu, Au
Tara – Zn, Pb
Reserve life*
*2010 and 2020 year end reserves divided by designed full production
GENERAL PRESENTATION POST Q1 2021
Aitik – Ramping up
Designed capacity: 45 Mtonnes
Lower grade than reserve average for
several years
Efficiency projects‒ Electrification
‒ AHS (Autonomous Haulage System)
Liikavaara satellite pit‒ Included in total Mineral Reserves and
Resources statement
‒ 3 km to Aitik main crusher
‒ Limited Capex
Major permit renewal 2024
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
45 000
2012 2013 2014 2015 2016 2017 2018 2019 2020
Aitik Milled volume (Ktonnes)
GENERAL PRESENTATION POST Q1 2021 25
Designed capacity 3.0 Mtonnes‒ Stable production achieved
3.3 Mtonnes, conceptual study‒ Limited Capex
Efficiency projects‒ Grade optimization – two pass mining
‒ Automation and digitalization
‒ De-bottlenecking
Garpenberg – Improving efficiency from a high level
26
Garpenberg, automation in drilling
7% 8%
15%
30%
37%
25%29% 28%
23%
15%
0%
10%
20%
30%
40%
50%
60%
0
50 000
100 000
150 000
200 000
250 000
2016 2017 2018 2019 2020
Drillmeters Drilled using automation Re-work (cleaning of holes)
GENERAL PRESENTATION POST Q1 2021
Designed capacity 9.5 Mtonnes
Efficiency activities
‒ Stabilizing production
‒ Electrification
Potential stage 5 under evaluation
Kevitsa – At a new production level
27
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
2012 2013 2014 2015 2016 2017 2018 2019 2020
Kevitsa Milled volume (Ktonnes)
Pre-Boliden Boliden production
GENERAL PRESENTATION POST Q1 2021
Inferred 26.2 Mtonnes
@ 8.4% Zn, 1.6% Pb‒ Higher grades relative to Tara
Ongoing extensive project
development program ‒ Exploration
‒ Exploration drift & mine infrastructure
‒ Conceptual study
Bridging and extending Tara
Tara – Extending by Tara Deep
28
10.2
13.0
18.2
22.4
26.2
2016 2017 2018 2019 2020
Tara Deep Resource Growth*2016 - 2020
*Mtonnes, Based on surface drilling
GENERAL PRESENTATION POST Q1 2021
Future proof Boliden Area
SEK 1.25 bn Capex partially pending
environmental permits
Planned production start 2023‒ 200 Ktonnes increased annual milled volume from
the Boliden Area‒ Higher ore value
‒ Highly automated production‒ Potentially fossil free transports
Financial return above Boliden's target
Rävliden – Extension of Kristineberg mine and the Boliden Area
29
Kristineberg/Rävliden, possible mine layout
*Combination of Inferred and Indicated resources. For further details please see www.boliden.com.
Rävliden*: Mineral resource of 8.4 (5.7)* Mtonnes @ 1.0% Cu, 4.2% Zn, 80 g/tonne Ag
.
GENERAL PRESENTATION POST Q1 2021
Inferred mineral resource of 2.59 Mtonnes @
2.95 g/tonne Au, 81 g/tonne Ag, 0.16% Cu,
4.44% Zn, 0.75% Pb
Located 4 km from Boliden processing plant
Complex metallurgy with contents of As, Sb
and Hg
Extension of mineralization still open
Exploration and conceptual study ongoing
Strömfors – in the Boliden Area
30
Strömfors, mineral lenses
GENERAL PRESENTATION POST Q1 2021
Extracting additional value from
intermediates‒ 25 ktonnes lead sulphate
‒ 25 ktonnes copper/zinc sulphate
Decreasing waste volume to
underground repository by 80%
Capex: 750 MSEK
Commissioning Q2 2021
Rönnskär Leach Plant reaching commissioning
Rönnskär Leach Plant
31GENERAL PRESENTATION POST Q1 2021
Nickel feed capacity from 310 to 370 ktonnes
Lower CO2 intensity by up to 20%
Improving safety by increasing automation
Greater raw material flexibility
Capex: 40 MEUR
Commissioning Q3 2021
Harjavalta Ni Expansion coordinated with maintenance
Harjavalta Ni Matte station
32GENERAL PRESENTATION POST Q1 2021
Copper with a low carbon footprint,
verified by third party
Produced from Boliden copper
concentrate and recycled copper
All significant emission categories from
cradle-to-gate included
We are well positioned compared to
global average
Committing to Green Metals with Boliden Low-Carbon Copper
33
0
500
1000
1500
2000
2500
3000
3500
4000
4500
ICA Environmental Profile 2018 Boliden Low Carbon Copper
[kg CO2eq/ton Copper Cathode]
>4kg
>4kg
1.5kg
GENERAL PRESENTATION POST Q1 2021
25% of Boliden´s annual Low-Carbon
Copper capacity already contracted‒ Agreements with Schwering und Hasse, Essex
Furukawa and Elcowire Group
First volumes delivered to customers
World’s first verified Low-Carbon Copper now available!
Boliden Low-Carbon Copper
<1.5kg CO2/kg Cu
Produced from copper concentrate mined
in our own mines
Boliden Recycled Copper
<1.5kg CO2/kg Cu
100% recycled copper produced from,
for example, electronics
34GENERAL PRESENTATION POST Q1 2021
35
Green Zinc – Odda 4.0 Strategic Rationale
Strong industrial logic
- Economies of scale
- Efficient logistics
- Energy efficiency
- Automation and digitalization
- Recovery of lead and silver
Strong environmental credentials
- Excellent CO2 footprint
- 100% hydroelectric power
- Sustainable waste handling
Financial return above
Boliden's target
Comparable to Boliden’s largest
historical Capex projects
GENERAL PRESENTATION POST Q1 2021
36
Outlook post Q1 2021 Aitik
‒ 2021: Cu 0.21 %, Au 0.11 g/tonne
Garpenberg‒ 2021: Zn 3.8 %, Ag 110 g/tonne
Maintenance stops‒ 2021: -500 (-345) MSEK
Capex‒ 2021: Slightly above 7 BSEK
GENERAL PRESENTATION POST Q1 2021
Stable value chain
- Technical know-how
- Mines and Smelters
- Base metals and precious metals
- High corporate responsibility
- Stable jurisdictions
Strong capability to deliver results
- High productivity
- Solid financials
- Long cultural heritage
- Own project development
- Long life for key mines
Competitive portfolio
- Metals for generations to come
- Cu, Zn, Ni and Pb
- Biproducts like Au, Ag, Pt and Pd
Boliden, Investment Case
37GENERAL PRESENTATION POST Q1 2021
38
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.
GENERAL PRESENTATION POST Q1 2021