Boliden — Earnings Release 2016

Jul 19, 2016

Press release 14/2016

Stockholm 19 July 2016

Boliden's Q2: Good production levels and strong cash flow

Boliden's second quarter was characterised by good production levels, in spite of variations between the individual mines and comprehensive maintenance shutdowns at the smelters. Revenues totalled SEK 9,596 m (10,373) and the operating profit, excluding revaluation of process inventory, was SEK 901 m (1,257). The free cash flow, adjusted for the acquisition of the Kevitsa mine, totalled SEK 1,148 m.

"Production and profits during the quarter were generally good in both Mines and Smelters. The cash flow was satisfying, given the extensive maintenance work carried out at several smelters and the production instability at our biggest copper mine Aitik. We benefited from the improvement in metal prices, although they are still substantially lower than last year. Boliden's acquisition of Finland's biggest mine, Kevitsa, was completed during the quarter and the integration process is proceeding according to plan," says Lennart Evrell, President and CEO of Boliden.

Production by Boliden's mines showed considerable variation between the individual mining areas. Garpenberg and Kylylahti reported very strong production, and production levels were also high in the Boliden Area and at Tara. Crusher availability continued to be low at Aitik, resulting in low volumes.

Boliden's smelters generally reported good production levels in spite of the comprehensive, planned maintenance shutdowns at the biggest smelters, namely Rönnskär, Harjavalta and Kokkola. The new and lower treatment charges applicable for 2016 achieved their full impact during the quarter.

For further information, please contact:

Sophie Arnius, Director Investor Relations and Acting Press Officer tel: +46 8 610 15 23, +46 70 590 8072