This is Boliden
We Produce Metals For Modern Life
Nordic Mining Day 7th March 2016
Metro Toronto Convention Centre - PDAC by
Manager International Exploration Henrik Grind
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Disclaimer
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This is Boliden - We Produce Metals For Modern Life
Boliden extracts minerals and produces high quality metals, which are mainly sold to
industrial customers in Europe. Care and consideration for people, society and the environment is evident in all our activities – from exploration to customer deliveries.
Boliden has been conducting exploration and mining operations and producing metal since the 1920s. Boliden has attained and sustained a competitive position within the fields of
exploration, mining, concentration, smelting and recovery.
Boliden’s mission, vision & strategy
Mission
Boliden produces metals that make modern life work.
Vision
Boliden shall be a world class metals company.
Strategy
1. Stable and resource-efficient operations.
2. Elimination of production bottlenecks.
3. Expansion investments in in-house projects.
4. Acquisition of producing mines and mine projects
Financial goals
Return on capital employed Net debt/equity ratio
Dividend
Sustainability goals
Zero accidents per month at all units Sick leave rate <3.0%
At least 20% of the workforce female
Reduce emissions and discharges to air and water
This is Boliden
A Nordic metals company with focus on sustainable development
Core competencies: exploration,
mining, smelting and metals recycling
Mines, produces and sells copper, zinc, lead, silver and gold
Five mining areas and five smelters
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Boliden’s values
Passion for improvements
Value chain responsibility
Personal commitment
Strategy
Stable and resource-efficient operations
Elimination of production bottlenecks
Expansion investments in in-house projects
Acquisition of producing mines and mine projects
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Growth philosophy
Stable production New Boliden Way
Bottleneck elimination
Investment-driven growth
Acquisitions
Financial goals
Weighted Average Cost of Capital (WACC): 12% nominal in 2014
‒ Return on capital employed: 8 %
‒ An average per annum return between 2010 and 2014 of around 12 per cent
Net debt/equity ratio: a maximum of 20% in an economic upturn
‒ Result for 2014: 35 %
Dividend: 1/3 of the net profit
‒ Proposal for 2014: SEK 2.25
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Exploration
Focus on zinc-, copper-, and precious metals-bearing deposits in Sweden, Finland and Ireland
Target: a minimum of 10 years’
production lifespan in each mining area
The amount of active projects make Boliden a European leader in
exploration
Boliden also acquired copper/nickel deposits in the Outokumpu field in conjunction with the purchase in 2014 of the Kylylahti copper mine in Finland
From exploration to mine
Finding it Mining it Smelting it Selling it
Geological potential: 1–15 yrs. Mineral resources: 2–10 yrs. Mineral reserves: 1–5 yrs.
Generating project ideas
Evaluation of target areas
Testing of target areas
Delimitation of mineral resources
Concept study
Preliminary study
Pre- project
Decision on starting a mine
10,000 1,000 50 5 1
Number of areas to test
• Mineral resources are those parts of an indicated deposit that may be commercially extractable but which do not qualify for classification as a mineral reserve due to insufficient knowledge.
• Mineral reserves are those parts of a indicated deposit that can be reliably mined and processed in accordance with the company’s profitability requirements.
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Boliden Mines
Expertise in mine design, mining technology and metallurgy
Extraction and concentration of zinc, copper, lead, gold, silver, and tellurium
Focus on operational reliability, productivity and environmental performance
Nine mines in five mining areas in Sweden, Ireland and Finland*
* Boliden Kylylahti was acquired on 1 October 2014
Boliden Smelters
Expertise in process technology and metallurgy
Production of high-quality metals from complex raw materials
Focus on process stability and environmental performance
Production of zinc, copper, gold, silver, lead and a number of alloys and by- products
Five smelters in Sweden, Finland, and Norway
Finding it Mining it Smelting it Selling it
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Metals for European industry
Mined concentrates for the Group’s own and external smelters
Zinc metal to steelworks for rust- proofing (galvanisation)
Copper metal to wire rod and copper rod manufacturers
Lead to automotive battery manufacturers
Gold and silver for industrial production and as an investment object
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