Boliden — Audit Report / Information 2012

Feb 11, 2013

Boliden AB (publ)

Box 44, 101 20 Stockholm, Sweden Tel +46 8 610 15 00, Fax +46 8 31 55 45 www.boliden.com Corp. ID no. 556051-4142

Year-end Report 2012

Q4 2012

• Revenues totalled SEK 10,914 million (SEK 9,716 m)
• The operating profit totalled SEK 656 million (SEK 1,075 m) – The operating profit, excluding the revaluation of process inventory, totalled SEK 818 million (SEK 991 m)
• Free cash flow totalled SEK 110 million (SEK -482 m)
• Earnings per share totalled SEK 3.11 (SEK 2.88)

Full year 2012

• Revenues totalled SEK 40,001 million (SEK 40,323 m)
• The operating profit totalled SEK 4,071 million (SEK 4,748 m)
• The operating profit, excluding the revaluation of process inventory, totalled SEK 3,941 million (SEK 5,008 m)
• Free cash flow totalled SEK 1,389 million (SEK -3 m)
• Earnings per share totalled SEK 11.96 (SEK 12.39)
• The Board of Directors proposes a dividend of SEK 4 (SEK 4.00) per share

Summary of financial performance

		Quarter		Twelve months
SEK m	4-2012	4-2011	3-2012	2012	2011
Revenues	10,194	9,716	9,123	40,001	40,323
Operating profit (EBIT)	656	1,075	1,146	4,071	4,748
Operating profit ex. revaluation of
process inventory	818	991	974	3,941	5,008
Profit after financial items	609	1,045	1,105	3,892	4,560
Net profit	851	787	818	3,274	3,389
Earnings per share, SEK	3.11	2.88	2.99	11.96	12.39
Free cash flow1)	110	-482	310	1,389	-3
Net debt	5,673	6,063	5,692	5,673	6,063
Return on capital employed2) , %	-	-	-	13	17
Return on shareholders' equity3) , %	-	-	-	15	17
Net debt/equity ratio4) , %	25	29	26	25	29

1) Refers to cash flow before financing operations.

2) Operating profit divided by average capital employed.

3) Profit after tax divided by average shareholders' equity.

4) Net of interest-bearing provisions and liabilities minus financial assets including liquid assets divided by shareholders' equity.

THE GROUP

Sales and production

Sales increased during the quarter to SEK 10,194 million (SEK 9,716 m). Sales increased, quarter on quarter, due to higher prices for all metals and increased production volumes at the Group's smelters.

Production at Boliden's mines was down on the previous quarter for all metals with the exception of gold due to lower grades and disruptions to production at Aitik and Tara. The increase in gold production for the quarter was attributable to the Kankberg gold mine in the Boliden Area.

Smelter production increased for the majority of metals and by-products in comparison with the third quarter. Zinc production levels remained unchanged, despite a breakdown suffered by one of Odda's leaching tanks. Gold production was down on the previous quarter but considerably up on the previous year. Year on year production of all metals increased but the terms have deteriorated for most of the Group's by-products.

Operating profit

The operating profit totalled SEK 656 million (SEK 1,075 m). If the revaluation of process inventory is excluded, the operating profit totalled SEK 818 million (SEK 991 m), corresponding to a quarter on quarter decrease of SEK 155 million. Operating expenses, excluding depreciation, totalled SEK 2,744 million (SEK 2,816 m).

The operating profit for Business Area Mines totalled SEK 517 million (SEK 646 m) while the operating profit excluding the revaluation of process inventory for Business Area Smelters totalled SEK 191 million (SEK 326 m). Reduced stocks of internally supplied concentrates resulted in a positive internal profit elimination of SEK 144 million (SEK 2 m) in the net profit for the Group.

Profit analysis	Quarter
SEK m	4-2012	4-2011	3-2012
Operating profit	656	1,075	1,146
Revaluation of process inventory	-163	84	172
Operating profit ex. revaluation of process
inventory	818	991	974
Change		-173	-155
Analysis of change
Volume effect		-135	-280
Prices and terms		-123	-48
Metal prices and terms		6	21
Realised metal price and currency hedging*		-120	-24
TC/RC terms		-1	-32
Metal premiums		-7	-14
Exchange rate effects		-30	-31
Of which translation effects		-16	-6
Costs		-90	-194
Depreciation		-44	104
Internal profit elimination		143	278
Other		105	15
Change		-173	-155
*Result for respective quarter	4-2012	4-2011	3-2012
Realised metal price and currency hedging	70	190	93

Lower mined volumes had a negative effect on the profit in relation to both comparison periods. Prices and terms had a negative effect due to prices falling at the beginning of the fourth quarter, resulting in lower definitive prices.

The Group's operating expenses before depreciation in local currencies increased by 3.4 per cent year on year. The quarter on quarter increase was 7.6 per cent and was primarily attributable to seasonal variations. Depreciations during the quarter were lower than in the previous quarter, primarily as a result of a correction to Tara's depreciations made during the third quarter.

Net financial items during the fourth quarter of the year totalled SEK -47 million (SEK -30 m). The average interest rate payable during the quarter was 3.2 per cent in comparison with one of 3.3 per cent during both the previous quarter and the previous year. The profit before tax totalled SEK 609 million (SEK 1,045 m).

The lowering of the corporation tax rate in Sweden from 26.3 per cent to 22 per cent was announced in December 2012. The result is a reduction in the deferred tax liability and a non-cash non-recurring effect on the cash flow in the form of a reduction in reported tax for 2012. This affected the net profit for 2012 to the tune of SEK 415 million. The new tax rate came into force as of January 2013. The net profit totalled SEK 851 million (SEK 787 m), corresponding to earnings per share of SEK 3.11 (SEK 2.88).

Cash flow		Quarter		Twelve months
SEK m	4-2012	4-2011	3-2012	2012	2011
Cash flow from operating activities
before change in working capital	1,182	1,222	1,628	5,198	5,039
Changes in working capital	271	-349	-475	320	-1,017
Cash flow from operating activities	1,453	873	1,153	5,518	4,021
Investments and other	-1,343	-1,355	-843	-4,129	-4,024
Before financing (Free cash flow)	110	-482	310	1,389	-3

The free cash flow was SEK 110 million (SEK -482 m). Tax paid of SEK 12 million (SEK -483 m) was repaid during the quarter due to excess payment of preliminary tax made earlier in 2012.

Financial position

Boliden's net debt at the end of the quarter was SEK 5,673 million (SEK 6,063 m) and the net debt/equity ratio was SEK 25 per cent (29%). The average term of total granted loan facilities approved was 3.5 years (3.3 yrs.). The average interest level for Boliden's debt portfolio was 3.1 per cent (3.3%) and the fixed interest term was 0.9 years (1 yr.).

The contribution to shareholders' equity of the net market valuation of financial instruments, after fiscal effects, totalled SEK -145 million (SEK 120 m) on 31st December 2012. Boliden's payment capacity, in the form of liquid assets and unutilised binding credit facilities with a term of more than one year, totalled SEK 9,150 million (SEK 8,734 m) at the end of the fourth quarter.

INFORMATION ON INCREASED FUTURE RECLAMATION COSTS

Future reclamation costs for the Swedish mines currently operational are expected to exceed those previously calculated and the reclamation provision and fixed assets have consequently been increased by SEK 538 million. The amount has no effect on the profit or cash flow for 2012. Annual depreciation levels are expected to increase by approximately SEK 30 million, starting in 2013, and approximately SEK 10 million will be charged to the net financial items every year.

NEW ACCOUNTING PRINCIPLES IN 2013

Boliden currently applies the so-called corridor method to the calculation of its defined pension liability. As of the first quarter of 2013, however, Boliden will apply the amended IAS 19. This will result in an increase in the pension liability carried forward of approximately SEK 550 million and the effect after tax will be booked against shareholders' equity. Adjustments will be made to the 2012 comparison year.

The accounting principles for waste removal costs will change as a result of the implementation by Boliden of IFRIC 20, as of the first quarter of 2013. The new interpretation will reduce Boliden's capitalised stripping activity asset by approximately SEK 150 million, which will reduce the Group's shareholders' equity by the corresponding amount before tax. Adjustments will be made to the 2012 comparison year. This change in accounting principles will have no non-recurring effect on the profit but will generate a limited reduction in future operating costs.

THE PARENT COMPANY

The Parent Company, Boliden AB, conducts no operations and has no employees. The Parent Company's Income Statements and Balance Sheets can be found on page 22 of this Year-end Report.

THE BOARD'S DIVIDEND PROPOSAL

Boliden's policy is that the dividend shall correspond to approximately one third of the net profit for the year. The Board of Director proposes a dividend payment of SEK 4 (SEK 4.00) per share, or a total of SEK 1, 094 million (SEK 1,094 m) for 2012, corresponding to 33,4 per cent of the net profit for the year.

INFORMATION ON DIESEL TAX AT AITIK

During the period from April 2009 to October 2012, dyed diesel was incorrectly used at Aitik instead of un-dyed diesel. The two versions carry a different tax rate. When the mistake was discovered in October 2012, Boliden immediately contacted both the supplier in order to switch to un-dyed diesel and the Swedish Tax Agency in order to inform them what had happened. Boliden has also, throughout the period in question, paid the tax that would have been applicable if the correct diesel had been used and has not benefitted financially from the mistake.

On 28th January 2013, the Swedish Tax Agency ruled, after a review of the matter, that it intends to impose an energy tax liability on Boliden of SEK 212 million plus interest. The ruling by the Swedish Tax Agency does not take into account Boliden's request for a discharge from this tax liability. Boliden believes that the error is administrative in nature and intends to appeal the Swedish Tax Agency final ruling if it is negative. No provision for the amount has consequently been made in the 2012 accounts.

INFORMATION ON THE LEGAL DISPUTE IN CONNECTION WITH THE COPPER TUBING CARTEL

As previously announced, Boliden has been served with claims in the UK courts by a number of companies in the Travis-Perkins corporate group. Boliden will contest the claims made and has, in order to ensure that all relevant parties are involved, also subpoenaed the other cartel members. One of these cartel members has now also submitted a claim against Boliden's former subsidiary company, Boliden Fabrication AB, which was also found to have participated in the cartel. This company was transferred to Outokumpu in 2004 in conjunction with which Boliden undertook to indemnify Outokumpu in respect of claims that may arise and which relate to the period prior to the transfer of the company. The indemnity undertaking is not expected to increase Boliden's total potential exposure in that the EU-commission found Boliden to be jointly and severally liable with this then subsidiary.

It is currently not possible to evaluate the financial effect that the cases may have on Boliden with any degree of certainty and no provision for any obligations that may arise has hence been made.

ONGOING EXPANSION PROJECTS

The Kankberg gold mine in the Boliden Area

Boliden has invested SEK 475 million in the Kankberg gold mine. Gold production at the Kankberg mine has begun.

The Garpenberg zinc/silver mine

The expansion of the Garpenberg zinc and silver mine entails an investment of SEK 3.9 billion and will increase ore production from the current level of 1.4 million tonnes per annum to 2.5 million tonnes of ore per annum. The new facilities are scheduled to commence production during the first six months in 2014.

Silver extraction at Kokkola

A facility for the extraction of silver from zinc concentrates, which tend to contain increasing grades of silver, is being built at the Kokkola zinc smelter. The investment is estimated at SEK 240 million and the facility is expected to extract approximately 25 tonnes of silver per year. Construction work has begun and production is scheduled to start in the third quarter of 2014.

MARKET PERFORMANCE

Automotive production increased in both China and the USA but fell, year on year, in Europe. Construction sector investments in China continued to grow at a rapid rate, also in the USA, the positive construction trend continued – albeit from a low starting level – and in Europe, investments fell in comparison with the previous year.

Zinc

The zinc market has remained stable. Global demand remained on a par with levels during the third quarter and increased in comparison with the fourth quarter of 2011. Growth in China returned to high levels during the fourth quarter after low levels earlier during the year.

Global production by zinc smelters was lower, year on year, in the fourth quarter. Production rose slightly in comparison with the third quarter. Official zinc stock levels increased.

Global production of mined zinc concentrate remained unchanged, year on year. Mined production in China remained on a par with levels both in the previous quarter and the previous year. Mined production has increased sharply in China in 2012 as a whole.

Spot treatment charges rose from low levels during the fourth quarter but continued to fall short of the realised level in benchmark contracts for 2012. European spot premiums were stable throughout 2012.

Copper

The copper market was also stable. Demand for copper was slightly up on the previous quarter but slightly down on the corresponding period in 2011.

Quarterly development in global demand for copper (million tonnes of metal)

Global production by copper smelters was on a par with levels during the previous year. Production increased sharply in China. Global production of copper metal increased in comparison with the third quarter and the combined official copper stock levels on the metal exchanges increased. Stock levels remained, however, at relatively low levels.

Production of mined copper concentrate increased in several important producing countries during the fourth quarter in comparison with the previous year. Production of copper concentrate was on a par with levels of demand from smelters.

Average spot market TC/RC were higher than during the third quarter and by the end of the quarter, were on a par with levels in the benchmark contracts for 2012. European spot premiums were on a par with those during the third quarter but slightly lower than during the corresponding period last year.

Lead

Demand for lead was higher than during both the third quarter of the year and the corresponding period in 2011. In Europe, the availability of lead from recycled batteries has been low in 2012 and recycled lead prices have risen. Prices increased during the fourth quarter. Global smelter production is estimated to have increased and been on a par with demand. Official lead stock levels were higher at the end of the fourth quarter than at its beginning.

Sulphuric acid

Demand for sulphuric acid in northern Europe, which is Boliden's principal market, remained stable but demand for spot volumes declined towards the end of the quarter.

Source: © CRU (www.crugroup.com)

Metal prices

Average prices in USD increased between the third and fourth quarters, particularly for lead and silver, and also increased in comparison with the previous year. For the full year, with the exception of gold, prices fell for all metals. The price fall in Swedish kronor was slightly smaller due to a stronger US dollar, while the rise in the price of gold was strengthened in kronor.

Metal prices (USD)	Quarter				Twelve months
(average LME/LBMA)	4-2012	4-2011	%	3-2012	%	2012	2011	%
Zinc (USD/tonne)	1,947	1,897	3	1,885	3	1,946	2,191	-11
Copper (USD/tonne)	7,909	7,489	6	7,706	3	7,950	8,811	-10
Lead (USD/tonne)	2,199	1,983	11	1,975	11	2,061	2,398	-14
Gold (USD/troy oz.)	1,721	1,687	2	1,651	4	1,669	1,573	6
Silver (USD/troy oz.)	32.68	31.87	3	29.80	10	31.15	35.12	-11

Metal prices (SEK)		Quarter					Twelve months
(average LME/LBMA)	4-2012	4-2011	%	3-2012	%	2012	2011	%
Zinc (SEK/tonne)	12,962	12,804	1	12,737	2	13,188	14,232	-7
Copper (SEK/tonne)	52,666	50,540	4	52,053	1	53,862	57,244	-6
Lead (SEK/tonne)	14,641	13,381	9	13,338	10	13,967	15,578	-10
Gold (SEK/troy oz.)	11,462	11,384	1	11,151	3	11,307	10,221	11
Silver (SEK/troy oz.)	217.63	215.05	1	201.28	8	211.05	228.17	-8

Exchange rates

The US dollar has weakened slightly against the Swedish krona. The euro has strengthened against the US dollar and the Swedish krona in comparison with the third quarter, but weakened year on year.

Exchange rates	Quarter					Twelve months
(average)	4-2012	4-2011	%	3-2012	%	2012	2011	%
USD/SEK	6.66	6.75	-1	6.76	-1	6.78	6.50	4
EUR/USD	1.30	1.35	-4	1.25	4	1.28	1.39	-8
EUR/SEK	8.63	9.09	-5	8.44	2	8.71	9.03	-4
USD/NOK	5.69	5.76	-1	5.91	-4	5.82	5.61	4

SENSITIVITY ANALYSIS

The following table contains an estimate of how changes in market terms affect the Group's operating profit (EBIT ex. PIR) over the next twelve-month period. The calculation is based on listings on 31st December 2012 and on Boliden's planned production volumes. The sensitivity analysis does not take into account the effects of metal price hedging, currency hedging, contracted TC/RC, or revaluations of process inventory in the smelters.

Change in metal prices +10%	Effect on operating profit, SEK m	Change in USD +10 %	Effect on operating profit, SEK m	Change in TC/RC +10%	Effect on operating profit, SEK m
Copper	390	USD/SEK	980	TC/RC Copper	80
Zinc	450	EUR/USD	375	TC Zinc	45
Lead	85	USD/NOK	75	TC Lead	-5
Gold	170
Silver	140

METAL PRICE AND CURRENCY HEDGING

The following table shows Boliden's outstanding price and currency hedging contracts on 31st December 2012. The Boliden Group's production is otherwise, in every significant respect, exposed to changes in market prices. The hedging reduces the effect on the Group's profit of fluctuations in metal prices and exchange rates and essentially covers the most intensive period of the Garpenberg expansion project. In addition to hedging relating to this project, approximately 80 per cent of the planned gold production at Kankberg has been hedged up to and including 2017.

Metals	Matured 2012	Matures 2013*	Matures 2014	Matures 2015	Matures 2016	Matures 2017
Zinc Hedged volume (tonnes) Forward price, USD/tonne Market value, SEK m	125,400 2,230	62,250 2,125 18
Copper
Hedged volume (tonnes) Forward price, USD/tonne Market value, SEK m	27,600 9,080	14,100 8,746 75
Lead
Hedged volume (tonnes) Forward price, USD/tonne Market value, SEK m	23,100 2,324	11,400 2,219 -8
Silver
Hedged volume ('000 troy oz.) Forward price, USD/troy oz. Market value, SEK m	2,940 28.45	1,524 27.12 -29
Gold
Hedged volume (troy oz.) Forward price, USD/troy oz. Market value, SEK m	72,420 1,376	58,200 1,387 -106	38,400 1,455 -55	48,600 1,491 -61	47,000 1,487 -60	29,000 1,490 -36
Total market value, SEK m Profit realised for 2012	298	-50	-55	-61	-60	-36
Currencies	2012	2013*	2014	2015	2016	2017
USD/SEK
Hedged volume (USD m)	531	293	56	72	70	43
Forward rate, USD/SEK Market value, SEK m	6.79	6.76 66	6.83 13	6.78 10	6.77 9	6.77 6
EUR/USD
Hedged volume (USD m) Forward rate, EUR/USD Market value, SEK m	197 1.35	91 1.35 -13
USD/NOK
Hedged volume (USD m) Forward rate, USD/NOK Market value, SEK m	39 5.95	18 6.03 9
Total market value, SEK m Profit realised for 2012	-56	62	13	10	9	6

*Hedging contracts for 2013, other than those for gold, mature during the first six months of the year.

BUSINESS AREA MINES

Business Area Mines' revenues totalled SEK 2,103 million (SEK 2,426 m) during the quarter. The operating profit totalled SEK 517 million (SEK 646 m), corresponding to a quarter on quarter deterioration in the operating profit of SEK 326 million. The quarter's investments totalled SEK 1,087 million (SEK 802 m).

Financial performance

		Quarter		Twelve months
SEK m	4-2012	4-2011	3-2012	2012	2011
Revenues	2,103	2,426	2,543	9,509	10,279
Operating expenses	1,383	1,485	1,267	5,417	5,189
Depreciation	279	267	400	1,326	1,110
Operating profit	517	646	842	2,908	3,913
Investments	1,087	802	701	3,186	2,338
Capital employed	16,267	14,272	15,341	16,267	14,272

Profit analysis

	Quarter
SEK m	4-2012	4-2011	3-2012
Operating profit	517	646	842
Change		-129	-326
Analysis of change
Volume effect		-174	-302
Prices and terms		14	-39
Metal prices and terms		81	-6
Realised metal price and currency hedging*		-87	-20
TC/RC terms		20	-13
Exchange rate effects		-41	-12
Of which translation effects		-5	-4
Costs		-34	-105
Depreciation		-17	123
Other		123	9
Change		-129	-326
*Result for respective quarter	4-2012	4-2011	3-2012
Realised metal price and currency hedging	54	141	74

Production volumes were, with the exception of gold, lower for all metals relative to both comparison periods due to low grades and various disruptions to production. Average prices were higher than in the previous quarter but prices and terms still had a limited negative effect as a result of prices falling in the early part of the fourth quarter and definitive prices consequently being lower.

Operating expenses before depreciation in local currencies increased by 2.5 per cent in comparison with the corresponding period in 2011. Costs increased by 8 per cent in comparison with the previous quarter, but this was, in every significant respect, a seasonal effect. Energy costs have increased relative to both comparison periods. Depreciation was lower than in the previous quarter due to an adjustment made to Tara's depreciation.

Disruptions to production at Aitik resulted in a lower volume of milled tonnage but copper grades showed a temporary increase. Copper production increased in comparison with the previous year due to higher grades and an improved recovery. The copper grade at Aitik is expected to remain low for the next two years.

The milled tonnage volume in the Boliden Area fell due to a change in the ore mix that resulted in higher levels of zinc production but lower levels of copper production. The increase in gold production is attributable to the increase in the volume of ore produced by Kankberg.

Extraction work at Garpenberg is taking place in areas with ore with low levels of grindability and low zinc grades, and zinc production levels at Garpenberg consequently fell in comparison with both the previous quarter and the previous

year. Zinc grades at Garpenberg have exceeded the mineral reserve's average grade for many years but production now and during the first six months of 2013 takes place in areas with lower grades. Silver production was down on the previous quarter but on a par with levels in the previous year.

Tara's zinc and lead production fell as a result of disruptions to production during the quarter and of lower grades. An improvement programme aimed at cutting costs has been running at Tara for some time now.

Production* Mines

	Quarter				Twelve months
	4-2012	4-2011	%	3-2012	%	2012	2011	%
Zinc, tonnes	54,717	64,234	-15	66,735	-18	271,203	283,217	-4
Copper, tonnes	19,252	20,140	-4	21,093	-9	79,363	81,205	-2
Lead, tonnes	9,112	11,070	-18	13,137	-31	48,809	49,477	-1
Gold, kg	940	828	14	861	9	3,644	3,681	-1
Gold, troy oz.	30,229	26,625	14	27,695	9	117,150	118,332	-1
Silver, kg1	51,969	55,833	-7	60,127	-14	229,791	231,388	-1
Silver, '000 troy oz.	1,671	1,795	-7	1,933	-14	7,388	7,439	-1

*Refers to metal content of concentrates. Information about production and profit at individual units can be found on pages 24-27.

The Laver copper mineralisation

Extensive drilling was carried out in 2012, and Boliden announced in November that the Laver mineralisation had been classified as an inferred mineral resource. The mineralisation is estimated at 690 million tonnes with a 0.2 per cent copper grade and 0.12g/tonne of gold. The mineralisation also contains silver and molybdenum and is located some 100 km north of Boliden.

MINERAL RESERVES AND MINERAL RESOURCES

Exploration work yielded positive results during the year with increases in mineral resources in all existing mining areas and the classification of mineral resources in Laver and Rockliden as new additions. The annual report detailing the development of Boliden's mineral reserves and mineral resources is published today in a separate press release (Boliden Press Release 03/2013) and on Boliden's website. See www.boliden.com for further information.

¹Includes silver production at Tara that is not payable. See pages 26 and 27 for details of Tara's production.

BUSINESS AREA SMELTERS

Smelters' operating profit excluding the revaluation of process inventory totalled SEK 191 million (SEK 326 m). The operating profit fell by SEK 101 million in comparison with the third quarter. The quarterly result includes a negative effect of SEK 40 million resulting from a breakdown at a leaching reactor at Odda. Boliden's sales of metals to industrial customers in Europe remain stable but the sulphuric acid market has weakened.

Financial performance

		Quarter		Twelve months
SEK m	4-2012	4-2011	3-2012	2012	2011
Revenues	9,875	9,130	8,847	38,753	38,471
Gross profit ex. revaluation
of process inventory	1,769	1,885	1,751	7,288	7,160
Operating expenses	1,340	1,362	1,240	5,353	5,358
Depreciation	237	214	214	891	823
Operating profit ex.
revaluation of process
inventory	191	326	292	1,072	1,051
Operating profit	28	410	464	1,201	790
Investments	277	514	172	993	1,627
Capital employed	15,569	16,213	15,940	15,569	16,213

Profit analysis SMELTERS

		Quarter
SEK m	4-2012	4-2011	3-2012
Operating profit	28	410	464
Revaluation of process inventory	-163	84	172
Operating profit ex. revaluation of process
inventory	191	326	292
Change		-135	-101
Analysis of change
Volume effect		40	21
Prices and terms*		-135	-11
Metal prices and terms		-73	25
Realised metal price and currency hedging*		-33	-3
TC/RC terms		-21	-19
Metal premiums		-7	-14
Exchange rate effects		11	-20
Of which translation effects		-11	-2
Costs		-7	-76
Depreciation		-27	-19
Other		-18	4
Change		-135	-101
*Result for respective quarter	4-2012	4-2011	3-2012
Realised metal price and currency hedging	16	49	19

The volume effect was positive relative to both comparison periods. Poorer prices and terms for the majority of byproducts were the main reason for the decline in operating profit in relation to the previous year.

Operating expenses in local currencies, excluding depreciation, increased by 1 per cent in comparison with the previous year and by 6 per cent in comparison with the third quarter. The cost trend in relation to the previous quarter was primarily due to seasonal variations in personnel costs and to increased transportation and consumables costs, some of which were incurred in connection with the breakdown at Odda.

Production increased for all metals and by-products in comparison with the previous quarter, with the exception of gold and zinc. Production did, however, increase for all metals in comparison with the previous year.

Raw materials feed and copper cathode production increased at Rönnskär in comparison with the third quarter, when a maintenance shutdown was implemented. Electronic scrap feed increased in comparison with the third quarter when lead production, which uses some of the same facilities, was prioritised. Electronic scrap recycling has increased substantially in comparison with 2011 as a result of the new facility at Rönnskär coming on line. Production of precious metals varied in line with the raw material grades, resulting in a slight fall in gold production but an increase in the volume of silver produced.

Copper production at Harjavalta increased due to improved production stability. Gold production remained on a par with levels during the previous quarter but was substantially higher than last year. Nickel raw material feed fell in relation to both comparison periods due to disruptions to production during the quarter.

Production at Kokkola was stable throughout the quarter and zinc production there increased relative to both comparison periods.

Odda's production during the quarter was affected by the breakdown of a leaching tank. The breakdown reduced production levels up until the end of December.

Bergsöe's production of lead alloys increased sharply from the low production levels during the third quarter that resulted from a maintenance shutdown. Production increased relative to the previous year due to the improved availability of battery raw materials.

Production Smelters

	Quarter					Twelve months
	4-2012	4-2011	%	3-2012	%	2012	2011	%
Zinc, tonnes	116,097	114,237	2	116,772	-1	467,389	460,552	1
Copper, tonnes	90,329	87,611	3	81,941	10	338,577	335,771	1
Lead, tonnes	6,580	2,182	202	3,431	92	18,970	11,429	66
Lead alloys, tonnes (Bergsöe)	12,378	11,738	5	7,831	58	42,558	41,009	4
Gold, kg	3,749	3,170	18	4,017	-7	16,175	12,848	26
Gold, troy oz.	120,540	101,907	18	129,135	-7	520,011	413,055	26
Silver, kg	152,375	119,599	27	124,173	23	575,959	488,147	18
Silver, '000 troy oz.	4,899	3,845	27	3,992	23	18,517	15,694	18
Sulphuric acid, tonnes	419,202	411,391	2	407,009	3	1,633,676	1,597,072	2
Aluminium fluoride, tonnes	9,030	10,704	-16	6,155	47	35,708	34,812	3

Information about production and profit at individual units can be found on pages 28-31.

Maintenance shutdowns during the next quarter

No maintenance shutdowns will be done during the first quarter of 2013. Extensive maintenance shutdowns will, however, take place during the second quarter of 2013 and are expected to negatively affect the operating profit to the tune of approximately SEK 300 million.

SUMMARY OF BOLIDEN'S PERFORMANCE IN 2012

Revenues fell slightly year on year in 2012 and totalled SEK 40,001 million (SEK 40,323 m). Volumes from the smelters were higher, but all metal prices – with the exception of gold – were lower than in 2011.

The operating profit totalled SEK 4,071 million (SEK 4,748 m), while the operating profit excluding the revaluation of smelters' process inventory totalled SEK 3,941 million (SEK 5,008 m). Business Area Mines' operating profit fell to SEK 2,908 million (SEK 3,913 m) while that of Business Area Smelters, excluding the revaluation of process inventory, rose slightly to SEK 1,072 million (SEK 1,051 m).

Profit analysis

	Twelve months
SEK m	2012	2011
Operating profit	4,071	4,748
Revaluation of process inventory	129	-261
Operating profit ex. revaluation of process
inventory	3,941	5,008
Change
Analysis of change
Volume effect		204
Prices and terms		-1,154
Metal prices and terms		-1,028
Realised metal price and currency hedging*		-84
TC/RC terms		-45
Metal premiums		3
Exchange rate effects		625
Of which translation effects		-22
Costs		-516
Depreciation		-311
Internal profit elimination		-8
Other		95
Change		-1,067
*Result for respective period
Realised metal price and currency hedging	242	326

The operating profit was positively affected by increased volumes and a stronger US dollar, while lower prices and higher costs collectively resulted in an overall reduction in the operating profit.

The volume effect includes a negative effect on the profit of SEK 236 million from Business Area Mines due to lower volumes of payable metals at Garpenberg and Aitik. The volume effect for Business Area Smelters was positive at SEK 440 million, primarily as a result of the increased volume of free metals and increased feed of secondary raw materials by the copper smelters.

The increase in costs before depreciation and after adjustment for the provision made for future reclamation costs totalling SEK 125 million in 2011 totalled approximately 5 per cent in local currencies. The increase was primarily related to staff for the new production units and to higher salaries. The cost of consumables, energy and external services increased. The cost increase includes an increased investment in exploration – SEK 350 million (SEK 282 m) – connected, in part, with the extensive exploration work conducted in relation to the new Laver deposit. Operating expenses before depreciation totalled SEK 10,841 million (SEK 10,575 m).

The period includes a realised result of metal price and currency hedging totalling SEK 242 million (SEK 326 m).

The operating profit fell at all of Boliden's mines. The milled tonnage volume did however increase in all units, compensating in part for lower grades. The mines' costs have increased during the year.

All of Boliden's smelters, with the exception of Bergsöe, posted improved operating profits (excluding the revaluation of process inventory) in comparison with 2011. The increase in feed of electronic scrap at Rönnskär had a positive effect on the profit during the year. Improved production stability at Harjavalta and Odda resulted in improved operating profits at both smelters. Kokkola's operating profit was on a par with that of last year, poorer TC/RC notwithstanding. Higher raw material prices resulted in a fall in the operating profit at Bergsöe.

Net financial items totalled SEK -179 million (SEK -188 m). The net profit for the year was SEK 3,274 million (SEK 3,389 m) and the earnings per share totalled SEK 11.96 (SEK 12.39). The net profit was positively affected by a noncash non-recurring effect generated by the decision to lower the corporation tax rate in Sweden. This yielded a total effect on reported tax of SEK 415 million and boosted earnings per share by SEK 1.54.

Investments totalled SEK 4,185 million (SEK 3,998 m). The investment sum does not include the increased provision made for future reclamation costs totalling SEK 538 million (SEK 47 m) (see page 3 of this report). The free cash flow totalled SEK 1,389 million (SEK -3 m), with the improvement primarily due to the reduction in working capital and a lower level of tax paid.

SUSTAINABLE DEVELOPMENT

Employees

The average number of Boliden employees1 in 2012 was 4,795 (4,597). Of these, 2,814 (2,844) work in Sweden, 949 (917) in Finland, 718 (706) in Ireland, 297 (315) in Norway and 17 (15) in other countries. The number of employees has increased due to the completion of various expansion projects.

The sick leave rate during the fourth quarter was 4.2 per cent (3.8%), corresponding to an increase in comparison with the third quarter when the sick leave rate was 3.0 per cent. The Group's long-term goal is for its sick leave rate not to exceed 4.0 per cent. The sick leave rate for 2012 as a whole was 3.6 per cent (3.7%).

The accident frequency during the fourth quarter was 6.4 (4.5) accidents per one million hours worked for Boliden's own employees, corresponding to a reduction from the third quarter when the frequency was 9.2. The accident frequency for 2012 as a whole was 6.6 (4.9).

The accident frequency trend has been positive for a number of years but the trend in 2012 was unsatisfactory. To this end, additional measures have been initiated in order to tighten up routines and improve attitudes to safety work and preventative measures.

Environment

Boliden's operations at all of its facilities are subject to licensing requirements and are conducted in accordance with the legislation in the various countries in which they operate.

A direct leaching tank at Odda suffered a leak during the fourth quarter. The majority of the leak was collected by internal systems but an estimated 15 m³ of zinc solution2, diluted with water, is thought to have leaked out into the fjord. The incident did not result in any breach of the environmental terms and conditions of Odda's operations.

A diesel spill of between 50 and 100 litres occurred outside the Garpenberg industrial park area as a result of a fire in an excavator and was cleaned up immediately.

Group-wide environmental goals have been defined for the period from 2009 to 2013. These goals cover metal emissions and discharges to air and water, nutrient salt discharges to water, energy consumption, and emissions of sulphur dioxide and carbon dioxide to air. Aggregate emissions and discharges of metals to air and water were all below the target figures. Discharges of nutrient salts to water and emissions of sulphur dioxide to air exceeded the Group's internal discharge and emission goals. Considerably fewer environmental incidents were reported during the year than in the previous year.

Global Compact

Boliden has signed up to the UN Global Compact initiative that aims to establish international principles in relation to human rights, labour rights, the environment and anti-corruption. Boliden has, by signing up, undertaken to respect and promote the principles of the UN's Global Compact. This undertaking applies both to Boliden's own operations and to Boliden's relationships with the Group's stakeholders.

¹ Full-time equivalents

² The metal content has been estimated at 600 kg zinc, 8 kg copper and 4 kg cadmium.

RISKS AND UNCERTAINTY FACTORS

The Group's and Parent Company's significant risks and uncertainty factors include market and external risks, financial risks, operational and commercial risks, and legal risks. The global economic climate in general, and global industrial production in particular, affect the demand for zinc, copper and other base metals. For further information on risks and risk management, please see Risk management on pages 46-47 and Note 19 Financial risk management, on pages 77-78 of Boliden's Annual Report for 2011.

PREPARATION PRINCIPLES FOR THE YEAR-END REPORT

The Year-end Report has been prepared in accordance with the International Financial Reporting Standards (IFRS) approved by the EU, and with the Swedish Financial Reporting Board recommendation RFR1, complementary accounting rules for Groups, which specifies the supplementary information required in addition to that required under IFRS standards, pursuant to the provisions of the Swedish Annual Accounts Act. This Interim Report has been prepared for the Group in accordance with IAS 34, Interim Financial Reporting, and in accordance with the Swedish Annual Accounts Act, while the Parent Company accounts have been prepared in accordance with the Swedish Annual Accounts Act.

A number of new addenda to IFRS standards and interpretations by IFRIC came into force on 1st January 2012. None of the changes that have come into force have had any significant effect on Boliden's financial reporting.

The accounting principles and calculation methods used in this Year-end Report are the same as those used in the 2011 Annual Accounts.

The undersigned declare that the Interim Report gives a true and fair overview of the Parent Company's and the Group's operations, position and results and describes the material risks and uncertainties faced by the Parent Company and the companies that make up the Group.

Stockholm, 11th February 2013

Anders Ullberg Chairman

Marie Berglund Member of the Board

Staffan Bohman Member of the Board

Michael G:son Löw Member of the Board

Ulla Litzén Member of the Board

Marie Holmberg Member of the Board Employee Representative

Leif Rönnbäck Member of the Board

Hans-Göran Ölvebo Member of the Board Employee Representative

Lennart Evrell Member of the Board President and CEO

Roland Antonsson Member of the Board Employee Representative

Matti Sundberg Member of the Board

The information provided comprises information that Boliden is obliged to present pursuant to the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. The information was released for publication on 11th February 2013 at 12 noon (CET).

The Year-end Report has not been subject to special review by the company's auditors.

FINANCIAL CALENDAR

The Interim Report for the first quarter will be published on 3rd May 2013 The Interim Report for the second quarter will be published on 17th July 2013 The Interim Report for the third quarter will be published on 22nd October 2013 The Year-end Report for 2012 will be published on 12th February 2014

ANNUAL GENERAL MEETING

Boliden's 2013 Annual General Meeting will be held on 3rd May 2013 in Stockholm. Shareholders wishing to have a matter raised at the Meeting must submit a proposal to that effect no later than 15th March 2013. For further information, see www.boliden.com.

NOMINATION COMMITTEE

Boliden's Nomination Committee was appointed by the Annual General Meeting held on 3rd May 2012. It comprises Jan Andersson (Swedbank Robur Fonder), Lars-Erik Forsgårdh, Frank Larsson (Handelsbanken Fonder), Anders Oscarsson (AMF) and Anders Ullberg (Boliden's Chairman of the Board). Thomas Ehlin (Nordea Fonder) has subsequently also joined the Nomination Committee. Jan Andersson has been appointed to chair the Nomination Committee.

ANNUAL REPORT

Boliden's 2012 Annual Report will be published on 7th March 2013 at www.boliden.com and will be available in printed format at Boliden's Head Office in Stockholm from Friday, 22nd March 2013.

PRESENTATION OF THE REPORT

	The Year-end Report will be presented in Stockholm and via a webcast/conference call
Time:	Monday, 11th February at 15:00 (CET)
Location:	Lundqvist och Lindqvist, Viktor Arendorff auditorium
Address:	Klarabergsviadukten 90, Stockholm.

The web cast will be broadcast online at www.boliden.com. To participate in the conference call, please call one of the following telephone numbers 3-5 minutes before the conference starts:

Telephone number from Sweden: 08-506 307 79 (include the area code) Telephone number from other countries: +44 844 571 8957

Contact persons for information:

Lennart Evrell, President & CEO Tel (exchange): +46 8 610 15 00 Mikael Staffas, CFO Tel (exchange): +46 8 610 15 00 Frans Benson, Head of Investor Relations Tel: +46 8 610 15 23

CONSOLIDATED INCOME STATEMENTS – THE GROUP

		Three months		Twelve months
SEK m	4-2012	4-2011	3-2012	2012	2011
Revenues	10,194	9,716	9,123	40,001	40,323
Cost of goods sold	-9,187	-8,348	-7,685	-34,636	-34,404
Gross profit	1,007	1,368	1,438	5,365	5,919
Selling expenses	-101	-95	-89	-385	-384
Administrative expenses	-150	-119	-106	-558	-540
Research and development costs	-110	-109	-91	-429	-358
Other operating income and expenses	9	30	-6	77	111
Results from participations in associated
companies	1	0	–	1	0
Operating profit	656	1,075	1,146	4,071	4,748
Financial income	19	29	25	87	71
Financial expenses	-66	-59	-66	-266	-259
Profit after financial items	609	1,045	1,105	3,892	4,560
Taxes	242	-258	-287	-618	-1,171
Net profit	851	787	818	3,274	3,389
Net profit attributable to:
The Parent Company's shareholders	850	787	817	3,272	3,387
Holding with non-controlling interest	1	–	1	2	2

Earnings and shareholders' equity

per share
		Three months	Twelve months
	4-2012	4-2011	2012	2011
Earnings per share1), SEK	3.11	2.88	2.99	11.96	12.39
Shareholders' equity per share, SEK	83.85	76.90	79.99	83.85	76.90
Number of shares	273,511,169	273,511,169	273,511,169	273,511,169	273,511,169
Average number of shares	273,511,169	273,511,169	273,511,169	273,511,169	273,511,169
Number of own shares held	–	–	–	–	–

1) There are no potential shares and, as a result, no dilution effect.

CONSOLIDATED REPORT OF COMPREHENSIVE INCOME

	Three months			Twelve months
SEK m	4-2012	4-2011	3-2012	2012	2011
Profit for the period	851	787	818	3274	3,389
Other comprehensive income
Cash flow hedging
Change in market value of derivative instruments	347	-79	-380	-147	523
Fiscal effect on derivative instruments	-91	21	100	39	-138
Transfers to the Income Statement	-56	-185	-83	-201	-297
Tax on transfers to the Income Statement	15	49	22	53	78
Effect of change in tax rate, market value of derivative instruments	-8	–	–	-8	–
	207	-194	-341	-265	167
The period's translation difference on overseas operations Profit on hedging of net investments in overseas operations	91	-171	-168	-169	-32
	-134	233	228	219	42
Tax on the profit from hedging instruments	45	-61	-60	-48	-11
	2	1	0	2	-1
Other items included in comprehensive income	-	1	–	-	–
Total other comprehensive income	209	-192	-341	-263	166
Comprehensive income for the period	1,060	595	477	3,011	3,555
Total comprehensive income for the period attributable to:
The Parent Company's shareholders	1,059	595	476	3,009	3,553
Holding with non-controlling interest	1	–	1	2	2

KEY RATIOS – THE GROUP

	Three months			Twelve months
	4-2012	4-2011	3-2012	2012	2011
Return on capital employed 1), %	–	–	–	13	17
Return on shareholders' equity2), %	–	–	–	15	17
Equity/assets ratio, %	57	56	58	57	56
Net debt/equity ratio3), %	25	29	26	25	29
Net debt, SEK m	5,673	6,063	5,692	5,673	6,063

1) Operating profit divided by average capital employed.

2) Profit after tax divided by average shareholder's equity.

3) Net of interest-bearing provisions and liabilities minus financial assets including liquid assets divided by shareholders' equity.

CONSOLIDATED BALANCE SHEET – THE GROUP

	31st Dec.	31st Dec.
SEK m	2012	2011
Intangible fixed assets	3,160	3,184
Tangible fixed assets	25,279	22,927
Deferred tax	61	46
Interest-bearing assets	24	55
Other financial fixed assets	112	127
Inventories	8,244	7,737
Interest-bearing current receivables	3	3
Tax receivables	12	30
Other receivables	2,129	3,151
Liquid assets	1,011	355
Total assets	40,035	37,615
Shareholders' equity	22,949	21,032
Pension provisions	707	653
Deferred tax provisions	2,766	3,004
Other provisions	1,678	1,164
Interest-bearing long-term liabilities	4,315	4,967
Interest-bearing current liabilities	1,666	801
Tax liabilities	105	450
Other current liabilities	5,849	5,544
Total liabilities and shareholders' equity	40,035	37,615

CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY – THE GROUP

SEK m	31st Dec. 2012	31st Dec. 2011
Opening balance	21,032	18,846
Total comprehensive income for the period	3,011	3,555
Dividend	-1,094	-1,369
Closing balance	22,949	21,032
Total shareholders' equity attributable to:
The Parent Company's shareholders	22,935	21,020
Holding with non-controlling interest	14	12

On 31st December 2012, the hedging reserve, after fiscal effects, totalled SEK -145 million. The corresponding amount on 31st December 2011 was SEK 120 million.

CONSOLIDATED STATEMENTS OF CASH FLOW – THE GROUP

		Three months	Twelve months
SEK m	4-2012	4-2011	3-2012	2012	2011
Operating activities
Profit after financial items	609	1,045	1,105	3,892	4,560
Adjustments for items not included in the cash flow:
- Depreciation, amortisation and write-down of assets	515	481	614	2,219	1,937
- Provisions	51	22	3	62	32
- Translation differences etc.	-4	156	161	170	50
Tax paid	12	-483	-255	-1,145	-1,540
Cash flow from working activities before
changes in operating capital	1,182	1,222	1,628	5,198	5,039
Cash flow from changes in working capital	271	-349	-475	320	-1,017
Cash flow from operating activities	1,453	873	1,153	5,518	4,021
Investment activities
- Acquisition/disposal of tangible fixed assets	-1,353	-1,359	-869	-4,151	-3,992
- Acquisition/disposal of intangible fixed assets	-13	-7	-4	-24	-23
- Acquisition/disposal of financial fixed assets	6	-3	30	29	-29
- Other fixed assets	17	14	0	17	20
Cash flow from investment activities	-1,343	-1,355	-843	-4,129	-4,024
Cash flow before financing activities	110	-482	310	1,389	-3
Dividend	-	–	–	-1,094	-1,369
Net borrowing/net amortisation	540	215	-304	364	905
Cash flow from financing activities	540	215	-304	-730	-464
Cash flow for the period	650	-267	6	659	-467
Liquid assets at the beginning of the period	361	623	355	355	821
Exchange rate difference on liquid assets	-1	-1	0	-3	1
Liquid assets at period end	1,011	355	361	1,011	355

INCOME STATEMENT – THE PARENT COMPANY

	Three months		Twelve months
SEK m	4-2012	4-2011	2012	2011
Dividends from subsidiaries	–	–	2,607	3,218
Write downs of participations in Group companies	–	–	-17	–
Profit after financial items	–	–	2,590	3,218
Taxes	–	–	–	–
Profit for the period	–	–	2,590	3,218

The Parent Company, Boliden AB, conducts no operations and has no employees. Boliden AB has no sums to report under Other comprehensive income.

BALANCE SHEET – THE PARENT COMPANY

	31st Dec.	31st Dec.
SEK m	2012	2011
Participations in Group companies	3,911	3,911
Other shares and participations	5	5
Long-term financial receivables, Group companies	7,017	5,521
Current financial receivables, Group companies	1,266	166
Total assets	12,200	9,605
Shareholders' equity	10,934	9,438
Current liabilities to credit institutions	1,266	166
Total liabilities and shareholders' equity	12,200	9,605

INFORMATION PER SEGMENT – FULL YEAR

	Twelve months
SEK m	2012	2011
MINES
Revenues	9,509	10,279
Operating expenses	5,417	5,189
Depreciation	1,326	1,110
Operating profit	2,908	3,913
Investments	3,186	2,338
Capital employed	16,267	14,272
SMELTERS
Revenues	38,753	38,471
Gross profit ex. revaluation of process
inventory	7,288	7,160
Operating expenses	5,353	5,358
Depreciation	891	823
Operating profit ex. revaluation of process inventory	1,072	1,051
Operating profit	1,201	790
Investments	993	1,627
Capital employed	15,569	16,213
OTHER/ELIMINATIONS
Revenues	-8,261	-8,427
Operating profit, other	-38	45
Of which, internal profit elimination	111	119
Depreciation	0	3
Investments	6	33
Capital employed	-415	-12
THE GROUP
Revenues	40,001	40,323
Operating profit Operating profit ex. revaluation of	4,071	4,748
process inventory	3,941	5,008
Depreciation	2,218	1,937
Investments1)	4,185	3,998
Capital employed	31,421	30,473

Capital employed reported under Other refers, mainly, to market valuations of hedges and internal profit elimination.

INFORMATION PER SEGMENT – QUARTERLY

SEK m	1-2011	2-2011	3-2011	4-2011	1-2012	2-2012	3-2012	4-2012
MINES
Revenues	2,647	2,649	2,557	2,426	2,498	2,366	2,543	2,103
Operating expenses	1,237	1,261	1,206	1,485	1,362	1,405	1,267	1,383
Depreciation	274	281	288	267	322	325	400	279
Operating profit	1,156	1,064	1,047	646	822	726	842	517
Investments	431	599	505	802	645	753	701	1,087
Capital employed	13,808	13,923	13,933	14,272	14,863	15,046	15,341	16,267
SMELTERS
Revenues Gross profit ex. revaluation of	9,667	9,408	10,266	9,130	10,011	10,020	8,847	9,875
process inventory	1,691	1,740	1,844	1,885	1,899	1,869	1,751	1,769
Operating expenses	1,282	1,412	1,311	1,362	1,349	1,423	1,240	1,340
Depreciation	199	202	199	214	220	221	214	237
Operating profit ex. revaluation of process
inventory	226	143	356	326	349	240	292	191
Operating profit	84	156	140	410	631	78	464	28
Investments	232	412	458	514	270	274	172	277
Capital employed	13,747	15,425	15,776	16,213	15,534	15,609	15,940	15,569
OTHER/ELIMINATIONS
Revenues	-2,156	-2,161	-2,270	-1,840	-2,188	-2,022	-2,267	-1,784
Operating profit, other	119	-86	-7	19	46	-35	-160	111
Of which, internal profit elimination	133	-39	24	2	82	18	-134	144
Depreciation	2	–	4	–	0	0	0	0
Investments	1	9	2	5	1	2	1	2
Capital employed	-805	-744	-10	-12	-329	-111	-734	-415
THE GROUP
Revenues	10,158	9,896	10,553	9,716	10,321	10,363	9,123	10,194
Operating profit Operating profit ex. revaluation of process	1,359	1,134	1,180	1,075	1,499	769	1,146	656
inventory	1,500	1,120	1,397	991	1,217	931	974	818
Depreciation	475	483	491	481	542	547	614	516
Investments	664	1,020	965	1,321	917	1,029	874	1,366
Capital employed	26,750	28,604	29,699	30,473	30,068	30,543	30,546	31,421

Capital employed reported under Other refers primarily to the market valuation of hedges and internal profit elimination.

PRODUCTION AND PROFIT PER UNIT, FULL YEAR – MINES

	Twelve months
	2012	2011
AITIK
Milled ore, ktonnes	34,321	31,541
Head grades
Copper (%)	0.22	0.24
Gold (g/tonne)	0.11	0.14
Silver (g/tonne)	2.50	2.15
Metal production
Copper, tonnes	67,108	66,876
Gold, kg	1,959	2,447
Gold, troy oz.	62,996	78,657
Silver, kg	51,698	45,040
Silver, '000 troy oz.	1,662	1,448
Revenues, SEK m	4,170	4,549
Operating profit before depreciation, SEK
m	2,268	2,583
Operating profit, SEK m	1,692	2,046
Cash Cost (Normal C1), USc/lb. copper	123	120
THE BOLIDEN AREA
Milled ore, ktonnes	1,862	1,677
Of which, smelter slag	241	134
Head grades
Zinc (%)	2.1	2.9
Copper (%)	0.8	1.0
Lead (%)	0.2	0.3
Gold (g/tonne)	1.3	1.2
Silver (g/tonne)	35	41
Metal production
Zinc, tonnes	30,389	38,214
Copper, tonnes	11,869	13,910
Lead, tonnes	1,408	1,360
Gold, kg	1,434	989
Gold, troy oz.	46,102	31,781
Silver, kg	41,405	45,318
Silver, '000 troy oz.	1,331	1,457
Revenues, SEK m	1,552	1,587
Operating profit before depreciation, SEK
m	554	659
Operating profit, SEK m	369	530
Cash Cost (Normal C1), USc/lb. zinc	-143	-58

QUARTERLY PRODUCTION PER UNIT – MINES

	1-2011	2-2011	3-2011	4-2011	1-2012	2-2012	3-2012	4-2012
AITIK
Milled ore, ktonnes	6,700	8,012	8,495	8,334	7,961	9,465	9,022	7,874
Head grades
Copper (%)	0.27	0.24	0.22	0.22	0.22	0.20	0.21	0.23
Gold (g/tonne)	0.16	0.15	0.14	0.13	0.12	0.10	0.11	0.12
Silver (g/tonne)	1.87	2.26	2.07	2.36	2.63	2.36	2.41	2.67
Metal production
Copper, tonnes	16,659	17,497	16,852	15,868	15,787	17,027	17,681	16,613
Gold, kg	564	696	644	542	441	493	515	511
Gold, troy oz.	18,143	22,385	20,694	17,434	14,178	15,838	16,552	16,429
Silver, kg	8,072	12,359	11,973	12,636	12,424	13,742	13,713	11,819
Silver, '000 troy oz.	260	397	385	406	399	442	441	380
THE BOLIDEN AREA
Milled ore, ktonnes	455	381	375	465	465	459	484	455
Of which, smelter slag	46	36	0	51	59	59	65	58
Head grades
Zinc (%)	2.7	3.7	2.6	2.5	2.5	2.3	1.4	2.5
Copper (%)	1.1	0.9	0.9	1.1	0.8	0.9	0.9	0.7
Lead (%)	0.3	0.3	0.3	0.3	0.2	0.3	0.2	0.2
Gold (g/tonne)	1.3	1.2	1.5	0.9	1.4	1.4	1.0	1.3
Silver (g/tonne)	41	39	40	43	39	39	29	34
Metal production
Zinc, tonnes	9,587	11,551	8,156	8,920	8,978	7,949	4,671	8,791
Copper, tonnes	3,861	2,883	3,007	4,159	3,009	2,971	3,331	2,558
Lead, tonnes	347	251	370	392	361	425	264	358
Gold, kg	251	233	283	221	393	387	291	363
Gold, troy oz.	8,070	7,500	9,098	7,105	12,635	12,436	9,359	11,676
Silver, kg	12,610	9,251	10,472	12,985	11,392	11,584	8,868	9,562
Silver, '000 troy oz.	405	297	337	417	366	372	285	307

PRODUCTION AND PROFIT PER UNIT, FULL YEAR – MINES

	Twelve months
	2012	2011
GARPENBERG
Milled ore, ktonnes	1,484	1,456
Head grades
Zinc (%)	5.6	6.2
Copper (%)	0.1	0.1
Lead (%)	2.1	2.4
Gold (g/tonne)	0.3	0.3
Silver (g/tonne)	129	133
Metal production
Zinc, tonnes	74,793	81,068
Copper, tonnes	386	419
Lead, tonnes	24,884	28,330
Gold, kg	250	246
Gold, troy oz.	8,051	7,895
Silver, kg	135,015	140,121
Silver, '000 troy oz.	4,341	4,505
Revenues, SEK m	1,876	2,155
Operating profit before depreciation, SEK
m	1,262	1,506
Operating profit, SEK m	1,033	1,314
Cash Cost (Normal C1), USc/lb. zinc	-44	-56
TARA
Milled ore, ktonnes	2,502	2,486
Head grades
Zinc (%)	7.0	7.0
Lead (%)	1.4	1.4
Metal production
Zinc, tonnes	166,021	163,935
Lead, tonnes	22,517	19,787
Silver, kg1)	1,673	909
Silver, '000 troy oz.1)	54	29
Revenues, SEK m	1,727	1,757
Operating profit before depreciation, SEK
m	395	503
Operating profit, SEK m	73	268
Cash Cost (Normal C1), USc/lb. zinc	69	72

1) Silver production at Tara is not payable.

QUARTERLY PRODUCTION PER UNIT – MINES

	1-2011	2-2011	3-2011	4-2011	1-2012	2-2012	3-2012	4 -2012
GARPENBERG
Milled ore, ktonnes	337	370	408	340	358	397	392	336
Head grades
Zinc (%)	6.8	5.4	6.5	5.8	6.0	6.6	5.3	4.4
Copper (%)	0.1	0.1	0.1	0.1	0.1	0.1	0.1	0.1
Lead (%)	2.6	2.1	2.6	2.2	2.2	2.3	2.0	1.6
Gold (g/tonne)	0.2	0.3	0.3	0.3	0.3	0.3	0.2	0.3
Silver (g/tonne)	154	124	135	119	122	129	137	128
Metal production
Zinc, tonnes	21,364	18,135	23,828	17,740	19,148	23,654	18,825	13,166
Copper, tonnes	86	100	120	113	92	132	81	81
Lead, tonnes	7,328	6,289	8,586	6,127	6,469	7,681	6,414	4,320
Gold, kg	42	64	74	65	64	65	55	66
Gold, troy oz.	1,350	2,057	2,380	2,090	2,058	2,084	1,784	2,124
Silver, kg	38,756	31,994	39,339	30,032	31,151	36,479	37,083	30,302
Silver, '000 troy oz.	1,246	1,029	1,265	966	1,002	1,173	1,192	974
TARA
Milled ore, ktonnes	656	614	631	585	677	648	611	565
Head grades
Zinc (%)	6.9	7.3	7.1	6.8	7.2	7.2	7.5	6.1
Lead (%)	1.3	1.4	1.4	1.3	1.4	1.5	1.6	1.2
Metal production
Zinc, tonnes	42,250	42,219	41,892	37,574	45,664	44,358	43,239	32,760
Lead, tonnes	4,938	5,116	5,183	4,550	5,799	5,825	6,459	4,434
Silver, kg1)	218	258	253	180	421	503	463	286
Silver, '000 troy oz.1)	7	8	8	6	14	16	15	9

1) Silver production at Tara is not payable.

PRODUCTION AND PROFIT PER UNIT, FULL YEAR – SMELTERS

	Twelve months
	2012	2011
RÖNNSKÄR
Smelted material, tonnes
Copper
Copper concentrate	623,676	651,052
Secondary raw materials	220,689	175,064
Of which, electronics	108,223	63,798
Copper, total	844,365	826,116
Lead
Lead concentrate	27,077	11,401
Secondary raw materials	2,325	5,131
Lead, total	29,402	16,532
Production
Cathode copper, tonnes	214,050	219,316
Lead, tonnes	18,970	11,429
Zinc clinker, tonnes	36,282	35,857
Gold, kg	12,532	10,600
Gold, troy oz.	402,907	340,790
Silver, kg	447,759	415,066
Silver, '000 troy oz.	14,396	13,344
Sulphuric acid, tonnes	553,005	570,869
Operating profit before depreciation1), SEK
m	832	715
Operating profit1), SEK m	535	470
BERGSÖE
Production, tonnes
Lead alloys	42,558	41,009
Operating profit before depreciation1), SEK
m	52	95
Operating profit1), SEK m	34	75

1) The operating result per smelter excludes the revaluation of process inventory.

QUARTERLY PRODUCTION PER UNIT – SMELTERS

	1-2011	2-2011	3-2011	4-2011	1-2012	2-2012	3-2012	4 -2012
RÖNNSKÄR
Smelted material, tonnes
Copper
Copper concentrate	166,840	158,257	159,236	166,719	161,356	156,632	145,889	159,799
Secondary raw materials	37,180	46,792	43,154	47,938	47,081	60,517	54,030	59,061
Of which, electronics	11,948	18,180	13,973	19,697	18,864	32,381	26,479	30,499
Copper, total	204,020	205,049	202,390	214,657	208,437	217,149	199,919	218,860
Lead
Lead concentrate	6,386	0	5,015	0	11,380	2,347	9,734	3,616
Secondary raw materials	2,211	1,698	332	890	898	1,186	42	199
Lead, total	8,597	1,698	5,347	890	12,278	3,533	9,776	3,815
Production
Cathode copper, tonnes	53,306	52,987	55,368	57,655	53,963	53,982	49,085	57,020
Lead, tonnes	5,135	2,372	1,740	2,182	5,498	3,461	3,431	6,580
Zinc clinker, tonnes	7,506	8,794	9,662	9,895	9,904	8,553	8,995	8,830
Gold, kg	2,775	2,360	2,866	2,600	2,975	3,751	3,014	2,793
Gold, troy oz.	89,203	75,864	92,132	83,590	95,646	120,595	96,901	89,779
Silver, kg	109,075	105,050	103,405	97,536	119,879	117,052	88,733	122,095
Silver, '000 troy oz.	3,507	3,377	3,324	3,136	3,854	3,763	2,853	3,925
Sulphuric acid, tonnes	148,247	136,655	136,349	149,618	156,210	137,918	119,844	139,033
BERGSÖE
Production, tonnes
Lead alloys	10,671	11,615	6,985	11,738	10,939	11,410	7,831	12,378

PRODUCTION AND PROFIT PER UNIT, FULL YEAR – SMELTERS

	Twelve months
	2012	2011
HARJAVALTA
Smelted material, tonnes
Copper
Copper concentrate	516,027	456,350
Secondary raw materials	16,379	14,275
Copper, total	532,406	470,625
Nickel concentrate	247,709	259,259
Production
Cathode copper, tonnes	124,527	116,455
Gold, kg	3,642	2,248
Gold, troy oz.	117,104	72,262
Silver, kg	128,200	73,081
Silver, '000 troy oz.	4,122	2,350
Sulphuric acid, tonnes	639,279	599,596
Operating profit before depreciation1), SEK
m	479	373
Operating profit1), SEK m	324	222
KOKKOLA
Smelted material, tonnes
Zinc concentrate	589,261	600,228
Production, tonnes
Zinc	314,742	307,352
Sulphuric acid	313,221	301,945
Operating profit before depreciation1), SEK
m	432	417
Operating profit1), SEK m	261	246
ODDA
Smelted material, tonnes
Zinc concentrate, incl. zinc clinker	279,489	282,959
Production, tonnes
Zinc	152,647	153,200
Aluminium fluoride	35,708	34,812
Sulphuric acid	128,171	124,662
Operating profit before depreciation1), SEK
m	161	123
Operating profit1), SEK m	8	-25

1) The operating result per smelter excludes the revaluation of process inventory.

QUARTERLY PRODUCTION PER UNIT – SMELTERS

	1-2011	2-2011	3-2011	4-2011	1-2012	2-2012	3-2012	4 -2012
HARJAVALTA
Smelted material, tonnes
Copper
Copper concentrate	116,037	93,707	132,598	114,008	124,877	113,228	134,617	143,305
Secondary raw materials	3,298	3,582	4,133	3,262	3,284	3,217	5,490	4,388
Copper, total	119,335	97,289	136,731	117,270	128,161	116,445	140,107	147,693
Nickel concentrate	60,880	52,562	76,469	68,509	69,140	48,139	67,398	63,032
Production
Cathode copper, tonnes	28,323	23,509	34,667	29,956	30,553	27,808	32,856	33,309
Gold, kg	600	607	471	570	894	789	1,003	957
Gold, troy oz.	19,299	19,504	15,142	18,317	28,745	25,351	32,247	30,760
Silver, kg	14,580	18,068	18,370	22,063	30,980	31,500	35,440	30,280
Silver, '000 troy oz.	469	581	591	709	996	1,013	1,139	974
Sulphuric acid, tonnes	146,408	114,648	185,412	153,128	165,913	136,133	167,915	169,318
KOKKOLA
Smelted material, tonnes
Zinc concentrate	155,498	144,845	154,675	145,210	150,280	135,466	155,975	147,540
Production, tonnes
Zinc	76,460	76,708	79,112	75,072	80,169	76,526	76,799	81,268
Sulphuric acid	78,611	65,330	82,834	75,170	80,417	67,628	86,242	78,934
ODDA
Smelted material, tonnes Zinc concentrate, incl. zinc clinker	74,182	61,743	74,815	72,219	71,514	74,519	74,629	58,827
Production, tonnes
Zinc	39,989	34,742	39,304	39,165	38,176	39,649	39,993	34,829
Aluminium fluoride	8,371	9,130	6,607	10,704	10,016	10,507	6,155	9,030
Sulphuric acid	32,305	27,318	31,564	33,475	30,572	32,674	33,008	31,917

CONSOLIDATED QUARTERLY DATA

	1-2011	2-2011	3-2011	4-2011	1-2012	2-2012	3-2012	4-2012
Financial performance, the Group
Revenues, SEK m	10,158	9,896	10,553	9,716	10,321	10,363	9,123	10,194
Operating profit before
depreciation (EBITDA), SEK m	1,834	1,616	1,672	1,552	2,041	1,315	1,760	1,171
Operating profit (EBIT)	1,359	1,134	1,180	1,075	1,499	769	1,146	656
Operating profit ex. revaluation
of process inventory, SEK m	1,500	1,120	1,397	991	1,217	931	974	818
Profit after financial items, SEK m	1,301	1,082	1,131	1,045	1,463	714	1,105	609
Net profit, SEK m	961	804	837	787	1,089	516	818	851
Earnings per share, SEK	3.51	2.94	3.06	2.88	3.98	1.89	2.99	3,11
Free cash flow1), SEK m	448	-790	820	-482	888	79	310	110
Net debt/equity ratio2), %	21	33	27	29	24	29	26	25
Metal production, Mines3)
Zinc, tonnes	73,201	71,905	73,877	64,234	73,790	75,960	66,735	54,717
Copper, tonnes	20,606	20,481	19,979	20,140	18,888	20,130	21,093	19,252
Lead, tonnes	12,613	11,656	14,138	11,070	12,629	13,931	13,137	9,112
Gold, kg	858	994	1,001	828	898	944	861	940
Gold, troy oz.	27,585	31,942	32,179	26,625	28,868	30,358	27,695	30,229
Silver, kg4)	59,656	53,862	62,037	55,833	55,388	62,307	60,127	51,969
Silver, '000 troy oz.4)	1,918	1,732	1,994	1,795	1,781	2,003	1,933	1,671
Metal production, Smelters
Zinc, tonnes	116,449	111,450	118,416	114,237	118,345	116,175	116,772	116,097
Copper, tonnes	81,629	76,496	90,035	87,611	84,516	81,790	81,941	90,329
Lead, tonnes	5,135	2,372	1,740	2,182	5,498	3,461	3,431	6,580
Lead alloys, tonnes (Bergsöe)	10,671	11,615	6,985	11,738	10,939	11,410	7,831	12,378
Gold, kg	3,375	2,966	3,337	3,170	3,869	4,540	4,017	3,749
Gold, troy oz.	108,502	95,368	107,275	101,907	124,391	145,945	129,135	120,540
Silver, kg	123,655	123,118	121,775	119,599	150,859	148,552	124,173	152,375
Silver, '000 troy oz.	3,976	3,958	3,915	3,845	4,850	4,776	3,992	4,899
Sulphuric acid, tonnes	405,571	343,951	436,159	411,391	433,112	374,353	407,009	419,202
Aluminium fluoride, tonnes	8,371	9,130	6,607	10,704	10,016	10,507	6,155	9,030
Metal prices, average per quarter
Zinc, USD/tonne	2,393	2,250	2,224	1,897	2,025	1,928	1,885	1,947
Copper, USD/tonne	9,646	9,137	8,982	7,489	8,310	7,869	7,706	7,909
Lead, USD/tonne	2,605	2,550	2,459	1,983	2,093	1,974	1,975	2,199
Gold, USD/troy oz.	1,387	1,507	1,705	1,687	1,691	1,609	1,651	1,721
Silver, USD/troy oz.	31.86	37.96	38.80	31.87	32.63	29.38	29.80	32,68
Exchange rates, average per quarter
USD/SEK	6.48	6.26	6.48	6.75	6.75	6.95	6.76	6.66
EUR/USD	1.37	1.44	1.41	1.35	1.31	1.28	1.25	1.30
EUR/SEK	8.87	9.01	9.15	9.09	8.85	8.91	8.44	8.63
USD/NOK	5.72	5.44	5.50	5.76	5.78	5.89	5.91	5.69

1) Refers to cash flow before financing activities.

2) Net of interest-bearing provisions and liabilities minus financial assets including liquid assets divided by shareholders'

equity. 3) Refers to metal content of concentrates.

4) Includes silver production at Tara that is not payable. See pages 26 and 27 for details of Tara's production.