Boliden — Earnings Release 2023

Oct 20, 2023

Boliden's third quarter: Key investment projects on track

Boliden's third quarter: Key investment projects on track

Revenues for the third quarter totaled SEK 19,396 m (19,480) and operating

profit excluding revaluation of process inventory was SEK 1,940 m (3,484). Free

cash flow totaled SEK -1,200 m (97).

"I am deeply impressed by how our organization has adapted to new conditions. We

have a structured approach to our various challenges and deliver solid

production in many of our units during the quarter. On top of that, we continue

to develop our projects according to plan and budget," says Mikael Staffas,

President and CEO.

Operating profit in Boliden Mines decreased to SEK 750 m (1,964) due to lower

grades and less milled volume. The costs also decreased mainly due to Tara being

placed in care and maintenance. Milled volume in Aitik was affected by unplanned

maintenance which, in combination with lower grades, led to a lower production

of copper and gold in concentrate than both the previous quarter and last year.

The Boliden Area's milled volume was in line with the previous quarter but

higher than last year thanks to stable production. Garpenberg's milled volume

was higher than both the previous quarter and last year. Rock mechanical

challenges affected grades negatively. Production after the third quarter is

back at previously communicated grade levels. The production in Kevitsa was

stable and milled volume was higher than in both the previous quarter and last

year.

In Boliden Smelters, operating profit excluding revaluation of process inventory

decreased to SEK 1,303 m (1,564). Lower volumes, mainly due to the fire in

Rönnskär, had a negative impact while prices and terms contributed positively.

Rönnskär's customer base has now been converted from cathode to anode customers

and production has been ramped up during the quarter. The annual negative impact

on operating profit in Rönnskär is estimated to be about one billion SEK,

compared to 2022 years result, all things equal. Harjavalta's copper cathode

production was higher than the previous quarter and last year, as was the

production of nickel in matte. In Kokkola, production of casted zinc was lower

than both the previous quarter and last year. Odda's zinc production was lower

than the previous quarter but in line with last year. Both zinc smelters were

affected by challenges in zinc concentrate availability.

The ongoing investment program, which includes the new dam structure in Aitik,

expanding the Kristineberg mine in the Boliden Area and the expansion of Odda,

is proceeding according to plan. For 2024, total capital expenditure is

estimated at about SEK 14 billion.

For further information, please contact:

Klas Nilsson, Director Group Communications, phone: +46 70-453 65 88

klas.nilsson@boliden.com

Boliden's vision is to be the most climate-friendly and respected metal provider

in the world. We are Europe's producer of sustainable metals and, guided by our

values care, courage and responsibility, we operate within exploration, mines,

smelters and recycling. We are more than 6,000 employees and have annual

revenues of approximately SEK 85 billion. The share is listed in the Large Cap

segment of NASDAQ OMX Stockholm.

www.boliden.com