Q Interim Report

Transcription

1 Q3 215 Interim Report Lennart Evrell President & CEO Mikael Staffas CFO

2 Robust cash flow and strong quarter for Smelters Revenues 9,764 (9,287) MSEK EBIT ex PIR* 1,55 (711) MSEK EBIT 88 (858) MSEK Free Cash Flow 953 (728) MSEK MSEK R4Q, MSEK Sharp fall in metal prices vs Q2 Continued favorable currencies Strong result Smelters Production disturbances Aitik Strong cash flow Quarterly EBIT excl PIR* Rolling Q EBIT, RHS Rolling Q EBIT excl PIR*, RHS * PIR=Process Inventory Revaluation Boliden Group Q

3 Prices down, mine cutbacks Macro Soft global market Level of economic development in China uncertain Base metals markets Mine supply growth in copper Zinc mines closures Increase in official stocks Metal prices down Zn and Cu close to 9 th percentile cash cost Mine production cutbacks announced Boliden Group Q

4 Zinc and copper price vs cash cost USD/ton 5 Normal C1 Zinc 5 USD/ton 11 Normal C1 Copper Zn average price Zn max price Zn min price 5th perc 75th perc 9th perc Cu average price Cu max price Cu min price 5th perc 75th perc 9th perc Source: Wood Mackenzie Q3 215, Reuters Datastream Boliden Group Q

5 Boliden market term index Boliden Group Q

6 Favourable currencies vs 1 year ago Note: Graph shows period 1 January 25 until 15 October 215. Boliden Group Q

7 Zinc price Zinc price, USD/t 5, 4,5 4, 3,5 3, 2,5 2, 1,5 1, LME inventory Shanghai inventory Price Price Q avg Tonnes 1,8, 1,6, 1,4, 1,2, 1,, 8, 6, 4, 2, USD/t Q3 Q4 Q1 Q2 Q jul-14 okt-14 jan-15 apr-15 jul-15 okt-15 Average price in Q3 vs period Q2-15 Q1-15 Q4-14 Q % -11% -17% -2% Boliden Group Q

8 Copper price Copper price, USD/t 12 Tonnes 1 8 USD/t 7 5 Q3 Q4 Q1 Q2 Q LME inventory COMEX inventory Shanghai inventory Price Price Q avg jul-14 okt-14 jan-15 apr-15 jul-15 okt-15 Average price in Q3 vs period Q2-15 Q1-15 Q4-14 Q % -1% -21% -25% Boliden Group Q

9 Gold, silver and lead prices Gold price, USD/troy oz Gold Silver price, USD/troy oz Silver Lead price, USD/t 5 Lead Average price in Q3 vs period Q2-15 Q1-15 Q4-14 Q3-14 Gold -6% -8% -6% -12% Silver -9% -11% -1% -25% Lead -12% -5% -14% -21% Boliden Group Q

10 Mines Boliden Group Q

11 Mines Lower market terms & production disturbances EBIT 26 (355) MSEK 657 MSEK in Q2 215 Capex 563 (63) MSEK MSEK R4Q, MSEK Lower metal prices Production disturbances Aitik Continued strong performance in Garpenberg Quarterly EBIT Rolling Q EBIT Boliden Group Q

12 Mines Production Milled ore, mt 12 Copper Metal content, kt 24 Milled ore, mt 1,8 Zinc Metal content, kt , , , , ,3 15 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q Milled ore Metal content, Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q Milled ore Metal content Aitik production disturbances, higher grade Kylylahti lower grade Boliden Area increased slag production Garpenberg lower grade, unfavorable rock conditions Tara low milled tonnage Boliden Area increased slag production Boliden Group Q

13 Smelters Boliden Group Q

14 Smelters Strong result through high production EBIT ex PIR* 825 (464) MSEK 64 MSEK in Q2 215 Capex 315 (116) MSEK Lower metal prices High production New nickel business model Maintenance shutdowns on plan -85 (-85) MSEK MSEK R4Q, MSEK Quarterly EBIT excl PIR* Rolling Q EBIT, RHS Rolling Q EBIT excl PIR*, RHS -4 * PIR=Process Inventory Revaluation Boliden Group Q

15 Smelters Production Total feed, kt 4 Copper Metal production, kt 12 Total feed, kt 25 Zinc Metal production, kt Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q Feed, total Metal production Feed, total Metal production Rönnskär improved process stability, maintenance shutdown Harjavalta stable process Odda high and stable production, maintenance shutdown Kokkola improved process stability, lower silver grade Boliden Group Q

16 Financials Boliden Group Q

17 Robust cash flow and strong quarter for Smelters Financial development MSEK Q3 215 Q3 214 Q2 215 Revenues 9,764 9,287 1,373 EBITDA 1,746 1,79 1,97 EBIT ,9 Process inventory revaluation (PIR) EBIT ex PIR 1, ,257 Investments Free cash flow ,557 Earnings per share, SEK Net debt / equity ratio Boliden Group Q

18 Lower metal prices and lower costs vs Q2 215 EBIT excl. PIR analysis Q3 215 vs. Q2 215 MSEK EBIT excl. PIR Q ,257 Specification of deviation Volume 114 Prices and Terms (incl. hedges) -624 Whereof currency effects 54 Costs 312 Depreciation 16 Other -2 Deviation -22 Higher Smelter feed Lower metal prices Lower smelter terms Seasonally lower costs Less maintenance Smelters EBIT excl. PIR Q ,55 Boliden Group Q

19 Higher production vs. Q3 214 EBIT excl. PIR analysis Q3 215 vs. Q3 214 MSEK EBIT excl. PIR Q Specification of deviation Volume 549 Prices and Terms (incl. hedges) -25 Whereof currency effects 76 Costs -167 Depreciation -12 Other -1 Deviation 344 Higher production Mines Higher feed Smelters Lower metal prices Stronger USD Improved smelter terms Kylylahti Higher production Smelters EBIT excl. PIR Q ,55 Boliden Group Q

20 Strong cash flow Free cash flow MSEK Q3 215 Q3 214 Q2 215 EBITDA excluding PIR 1,921 1,563 2,138 Changes in working capital Inventories Payables Receivables Other 1 3 Cash flow from investments Financial items Tax paid Other Free cash flow ,557 Boliden Group Q

21 Stronger balance sheet SEK bn (Unless otherwise stated) 3 Sept Jun 215 MSEK 1 % 45 Total Assets Capital employed Shareholders' equity Net debt Gearing, % Loan duration, years Average interest rate, % Interest duration, years.5.6 Net payment capacity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q Net debt Gearing 5 Boliden Group Q

22 Nine months performance Revenues 3,543 (27,276) MSEK EBIT ex PIR* 3,414 (1,471) MSEK EBIT 3,175 (1,61) MSEK Free Cash Flow 2,53 (1,217) MSEK MSEK R4Q, MSEK Lower metal prices, improved currencies Smelters performance Garpenberg investment Kylylahti acquisition Quarterly EBIT excl PIR* Rolling Q EBIT, RHS Rolling Q EBIT excl PIR*, RHS * PIR=Process Inventory Revaluation Boliden Group Q

23 Robust cash flow & strong quarter for Smelters Well positioned in the metal market Mines and smelters Base metals and precious metals High productivity Sharp fall in metal prices vs Q2 Continued favorable currencies Strong result Smelters Production disturbances Aitik Strong cash flow Boliden Group Q

24 Going forward Aitik Copper grade.21% in Garpenberg 2.5 Mton pace end 215 Tara improved production latter part of 215 Rönnskär action plan under implementation Nickel business on own books H2 215 Odda expansion to 2 kton/year on plan Capex 3.5 BSEK FY 215 Planned maintenance EBIT impact Q4-25 MSEK Boliden Group Q

25 Capital Markets Day on March 216 Stockholm 16 March Odda site visit 17 March More info will be posted on Boliden Group Q

26 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 Group Q

27

28 Appendix Boliden Group Q

29 Market balance Zinc global market Q413 Q114 Q214 Q314 Q414 Q115 Q215 Q315 Metals demand, kt Year on year change 4,7% 4,3% 3,1% 1,7% -,6% -1,1% -,9%,4% Smelter production, kt Year on year change 3,2% -,2% 1,7% 4,2% 5,9% 8,% 8,1% 3,1% Mine production, kt Year on year change -1,6% -2,1% -2,9% 1,7% 6,2% 3,1% 2,8% -1,3% Metal balance, kt Concentrate balance, kt Copper global market Q413 Q114 Q214 Q314 Q414 Q115 Q215 Q315 Metals demand, kt Year on year change 9,4% 2,3% 5,1% 3,9% 2,9% -,3%,8% 1,8% Smelter production, kt Year on year change 3,9% 1,5% 6,% 7,1% 6,5% 5,1% 3,9% -,9% Mine production, kt Year on year change 1,5% 6,4% 4,9% -,8% -3,4% 3,% 7,8% -,8% Metal balance, kt Concentrate balance, kt Source: CRU Sept/Oct 215, Boliden calculations Boliden Group Q

30 Economic development Industrial production, year on year % EU28 USA China World Source: Reuters Datastream, Boliden calculations for world data Boliden Group Q

31 Construction largest segment for Cu and Zn Activity, year on year % EU USA China China: year on year based on cumulative investments at each point Source: Reuters Datastream Boliden Group Q

32 Automotive Production of light vehicles, year on year, quarterly data 3% 25% 2% 15% 1% 5% % -5% -1% -15% Europe North America China World Source: LMC Automotive Boliden Group Q

33 China metals demand and economic growth Year on year growth % Zinc demand Copper demand GDP Industrial production Source: CRU Ltd, Reuters Datastream Boliden Group Q

34 Zinc TC and premia US$/t concentrate Treatment charges US$/t metal Metal premia Realized TC, European contract Spot TC, China imports Delivered Premia US Midwest Ex-Works Premia Europe Premia Far East - Western Lower realized contract TC, metal price down Somewhat lower spot TCs Concentrate stocks coming down* Somewhat lower spot premia in Europe Source: CRU Sept/Oct 215 *CRU Oct 215 Boliden Group Q

35 Copper TC and premia US$/t concentrate Treatment charges US$/t metal Metal premia Contract TC - annual and mid-year benchmark Standard grade spot TC CIF Average European premia CIF European benchmark premia Contract benchmark according to market sources including CRU Contract benchmark according to market sources including CRU Spot TC still below annual contract level Lower European spot premia Source: CRU Sept/Oct 215 Boliden Group Q

36