Boliden — Earnings Release 2024

Mar 18, 2024

Boliden's capital market update: Investment in new tank house at Rönnskär

Boliden's capital market update: Investment in new tank house at Rönnskär

Boliden has decided to invest in a new tank house at Rönnskär. The investment,

which totals SEK 4.8 billion, means that production of copper cathodes as well

as precious metals will gradually increase to full capacity during the second

half of 2026. In parallel, further investments are being presented today,

including extended lifespan of operations within the Boliden Area, as well as an

updated investment guidance for 2024.

"All of our major investment projects are on schedule and are now approaching

commissioning, which is very pleasing. Through these, both Aitik and Odda are

future-proofed for the foreseeable future. It also gives us the opportunity to

look ahead and now we present several decisions that create a corresponding

situation for Rönnskär and the Boliden Area. In addition, we are announcing a

technical breakthrough that has the potential to become a new and significant

revenue stream for our smelters", says Mikael Staffas, President and CEO.

New tank house in Rönnskär

Boliden has decided to invest SEK 4.8 billion in a new tank house at Rönnskär.

The plant means that the production of copper cathodes and precious metals will

gradually increase to full capacity during the second half of 2026. The

investment, which will be partially financed by potential insurance payout with

a maximum amount of SEK 3.4 billion, will begin in 2024. The plant will have a

capacity of 230 ktonnes, which is in line with the previous capacity and is

granted under existing environmental permit.

Extended lifespan of the Boliden Area

In the Boliden Area, investments will be made in dewatering and paste facilities

in order to use tailings as backfill material in the Kankberg, Renström and

Maurliden mines. This enables production in the Boliden Area to be extended by

around ten years until the end of the thirties. The total investment is SEK 2.5

billion, the majority of which will be implemented between 2024 and 2026. Tests

of the new technology show significantly improved environmental performance. The

permit application will be submitted shortly.

Update ongoing projects

Boliden's ongoing investment projects in Aitik, the Boliden Area and Odda all

follows previously communicated timetables. The projects in Aitik and the

Boliden Area are also running within the previously communicated investment

level. The expansion project in Odda has suffered from increased costs, mainly

as a result of underestimated complexity of the integration between new and

existing facilities as well as costs related to delayed deliveries of certain

key components. This means an increased cost with a total of EUR 100 million, of

which approximately half was charged in 2023, and that the total investment

amount for the expansion will be EUR 950 million.

Updated investment guidance 2024

Boliden's investments in 2024 are now expected to amount to SEK 15.5 billion,

which is SEK 1.5 billion higher than previously communicated. Of the increase,

approximately SEK 1 billion is related to the new investment in Rönnskär and the

remaining SEK 500 m is attributable to Odda. Today's decided investment in the

Boliden Area will amount to approximately SEK 500 m in 2024 and was included in

previously communicated guidance.

Supplementary cementitious material with a low climate footprint

Boliden has made a significant technical breakthrough where slag from existing

metal production in smelters can be converted into supplementary cementitious

material. Compared to traditional cement production, this new technology means

that the climate impact from cement production can be reduced by around 95

percent. The technology also means that additional metal can be extracted. An

initial project has confirmed product and production performance, which has also

been verified by established corporations in the cement industry. Patent

applications have been submitted and a preliminary study regarding the

commercialization of this product has been initiated. In addition, a preliminary

study, which is expected to be completed during the first quarter of 2025, of a

production facility with a capacity of 250,000 tons per year is now initiated.

Launch of Low-Carbon Nickel

Boliden's nickel production in Finland from the Kevitsa mine in the north via

the smelter in Harjavalta has, from an international perspective, a very high

climate performance. Based on Boliden's deliveries, nickel refineries can

produce nickel with less than 5 kg CO\2\e/kg nickel. This compared to the global

average of 34 kg CO\2\e/kg nickel. With the aim of supporting a responsible

supply of nickel, among other things to the growing battery industry, Boliden is

therefore launching the Low-Carbon Nickel product today.

During today's digital capital market update, in-depth information on the news

announced above is presented as well as information on the development of the

sustainability area related to dam safety and climate performance. The

presentations are available on Boliden's website www.boliden.com.

Webcast at 14.00 CET

For further information please contact:

Klas Nilsson, Director Group Communications, tel: +46 (0)70-453 65 88

klas.nilsson@boliden.com

This information is information that Boliden AB is obliged to make public

pursuant to the EU Market Abuse Regulation. The information was submitted for

publication, through the agency of the contact person set out above, at 08.30

CET on March 18, 2024.

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 around 6,000 employees and have annual revenues

of approximately SEK 80 billion. The share is listed in the Large Cap segment of

NASDAQ OMX Stockholm.