Well positioned for
a market in change
Lennart Evrell, President & CEO
Capital Markets Day 2014
10 November 2014
2014-11-10 6 CMD 2014
A leading mining and smelting company
operating in a low risk environment
5 mine areas with 9 mines
‒ 2 most productive mines worldwide
5 smelters
Zinc
Copper
Gold, silver, lead
High environmental standards
2.3 BSEK EBIT excl. PIR 2013
4,800 employees
2014-11-10 CMD 2014 7
Aitik
Garpenberg
Tara Odda
Kokkola
Rönnskär
Bergsöe
Boliden Area
Smelters
Mines
Harjavalta
Kylylahti
Note: PIR – Process Inventory Revaluation.
Well positioned for a market in change
Stable production New Boliden Way
De-bottlenecking
Capex driven growth
Selective acquisitions
2014-11-10 CMD 2014 8
Exposure to metals and currency
2014-11-10 CMD 2014 9
Group revenues,
2013 (BSEK)
Metal production,
2013
EBIT impact,
+10%
Copper 16 325 kton 450 MSEK
Zinc 7 455 kton 600 MSEK
Lead 1 24 kton 100 MSEK
Gold 5 16 ton 200 MSEK
Silver 3 538 ton 175 MSEK
USD/SEK 1,150 MSEK
Milestones since previous CMD
Q4 2013
Aitik production 10 mton
Rönnskär action plan launched
Q1
First concentrate Garpenberg
Q2
Start first phase of Aitik 45
Garpenberg on plan despite
deviations
Refinancing 850 MEUR
Q3
Garpenberg inauguration
Kokkola leach tank accident 25 July
Tara labour contract signed
No 1 annual report worldwide
Q4
Acquisition Kylylahti, exploration
rights
Rönnskär plan – 1st phase done
Kokkola silver plant ramp-up
Aitik 45 permit
Metals for a developing world
2014-11-10 CMD 2014 11
2000 November 27: Credit: C. Mayhew & R. Simmon (NASA/GSFC), NOAA/ NGDC, DMSP Digital Archive
Brazil
China
India Indonesia
Iran
Mexico
Russia
South Africa Vietnam
Africa
Asia
Latin America
Global
0
2
4
6
8
10
12
0 5 10 15 20 25 30 35 40 45 50 55 60
2014
The developing world drives demand
2014-11-10 12 CMD 2014
Source: IMF, Wood Mackenzie, Reuters Datastream, Boliden calculations
Cu kg/capita
GDP/capita
< 5 44%
5-15 33%
>15
23%
Global population distr. GDP/Capita
Zinc and copper fundamentals
2014-11-10 13 CMD 2014
Source: Wood Mackenzie Long term outlook Q2 2014, Boliden calculations
Demand
Similar demand drivers
Supply
Zinc
Depleting mines, few projects
High capacity utilization in smelters
Copper
New mines, few projects after 2017
3.4%
1.8%
5.1%
5.4%
0%
1%
2%
3%
4%
5%
6%
Copper Zinc
Annual growth 2013-2018
Mine capacity growth Metal demand growth
Mine depletions drive zinc price
2014-11-10 CMD 2014 14
Note: Possible projects are in an early phase, pre-feasibility or scooping studies, timing uncertain
2
7
12
17
22
27
2010 2015 2020 2025 2030
Sources of future mine production, million tonnes of metal in concentrate
Base case capacity Highly probable Poss.extensions
Probable A proj Possible proj Demand for Zn in conc
Source: Wood Mackenzie
Smelters’ utilisation rate increasing –
stimulates zinc TC
2014-11-10 CMD 2014 15
60
65
70
75
80
85
90
95
100
2004 2006 2008 2010 2012 2014 2016
Zinc smelters – capacity utilisation %
China RoW World World 20-year average
Source: Wood Mackenzie
New copper mines
Short term surplus
Few projects after 2017
0
5
10
15
20
25
30
35
40
2010 2015 2020 2025 2030
Demand and future mine production, mton metal in concentrate
Base case capacity Highly prob.proj. Probable proj. Poss.proj. Primary metals demand
Source: Wood Mackenzie
2014-11-10 CMD 2014 16
Improving smelter terms
2014-11-10 CMD 2014 17
0
20
40
60
80
100
120
140
160
180
Jan
-00
Se
p-0
0
Ma
y-0
1
Jan
-02
Se
p-0
2
Ma
y-0
3
Jan
-04
Se
p-0
4
Ma
y-0
5
Jan
-06
Se
p-0
6
Ma
y-0
7
Jan
-08
Se
p-0
8
Ma
y-0
9
Jan
-10
Se
p-1
0
Ma
y-1
1
Jan
-12
Se
p-1
2
Ma
y-1
3
Jan
-14
Se
p-1
4
Copper TC $/t conc
Standard Grade Spot Standard Grade Annual
0
100
200
300
400
500
600
Ja
n-0
0
Aug
-00
Mar-
01
Oct-
01
May-0
2
De
c-0
2
Ju
l-03
Feb
-04
Sep
-04
Apr-
05
No
v-0
5
Ju
n-0
6
Ja
n-0
7
Aug
-07
Mar-
08
Oct-
08
May-0
9
De
c-0
9
Ju
l-10
Feb
-11
Sep
-11
Apr-
12
No
v-1
2
Ju
n-1
3
Ja
n-1
4
Aug
-14
Zinc TC $/t conc
Spot TC China, imports Realized TC, European contract
Source: CRU Ltd
Zinc and copper price, SEK/USD Index 3 years
2014-11-10 CMD 2014 18
0
20
40
60
80
100
120
140
28
/10
/20
11
28
/04
/20
12
28/1
0/2
012
28
/04
/20
13
28
/10
/20
13
28
/04
/20
14
28
/10
/20
14
Ind
ex
USDSEK Cu Zn
Strategy
Stable production New Boliden Way
De-bottlenecking
Capex driven growth
Selective acquisitions
2014-11-10 CMD 2014 19
Stable production – New Boliden Way…
2014-11-10 20
How we do it Who we are
CMD 2014
10 Help Chains &
Support Functions
9 Standards for Work
8 Skill Development
7 Learning & Competence Dev.
6 Problem Solving
5 Elimination of Waste
4 Performance Management
3 NBW Plan Deployment (A3)
2 Customer/Supplier Relations 1 Leadership
11 Production System
12 5S
13 Operation Availability
14 Maintenance 15 Flow
20 Conveyance
21 Inventory
22 Visual Control
23 Autonomation
24 Quality
25 Shipping
26 Team Management
27 Process Stability
28 Continuous Improvement
19 Changeover
18 Pace/Takt Time
17 Levelling
16 Balancing Operations
Continuous
improvements
Low cost No waste Right quality
Standardise
Performance
management
Right from start
Leadership
Common culture
Passion for improvements
Personal commitment
Value chain responsibility
Stability Sustainability
…contributing to performance
Higher availability at
excavators Aitik
73% 84%
Higher availability at
Fuming Rönnskär
87% 93%
Decreased lead
time for Exploration
97 <50 work days
2014-11-10 CMD 2014 21
Debottlenecking Odda tank house, P100
22 2014-11-10 CMD 2014
Delivering on time and on budget…
On time On budget
Aitik 36 – highest productivity in the world
Rönnskär – world’s leading e-material facility
Kankberg – gold mine (no 1 tellurium mine)
Garpenberg – highest productivity in the world
2014-11-10 CMD 2014 23
…through continuous improvements in project
management and technology
CMD 2014 2014-11-10 24
Standardised
procedures
In-house
technology
Project
management
Selective M&A policy
2014-11-10 CMD 2014 25
Copper and zinc
with by products
Producing mines
and projects
Mid size assets Synergies
Well positioned for a market in change
Stable production New Boliden Way
De-bottlenecking
Capex driven growth
Selective acquisitions
2014-11-10 CMD 2014 26
Odda
Garpenberg
Kylylahti
Kokkola
Disclaimer
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2014-11-10 CMD 2014
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