Boliden — Interim / Quarterly Report 2013

Oct 22, 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

Interim Report, January-September 2013

Q3 2013

• Revenues totalled SEK 8,471 million (SEK 9,123 m)
• Operating profit totalled SEK 681 million (SEK 1,160 m) – Operating profit excluding the revaluation of process inventory was SEK 603 million (SEK 988 m)
• Free cash flow totalled SEK 436 million (SEK 310 m)
• Earnings per share totalled SEK 1.81 (SEK 3.02)

Nine months, 2013

• Revenues totalled SEK 25,755 million (SEK 29,807 m)
• Operating profit totalled SEK 1,317 million (SEK 3,494 m)
• Operating profit excluding the revaluation of process inventory was SEK 1,724 million (SEK 3,203 m)
• Free cash flow totalled SEK -1,261 million (SEK 1,277 m)
• Earnings per share totalled SEK 3.30 (SEK 9.05)

Summary of financial performance

	Quarter			Nine months		Full year
SEK m	3-2013	3-2012	2-2013	2013	2012	Oct-Sept	2012
Revenues	8,471	9,123	8,035	25,755	29,807	35,949	40,001
Operating profit ex. revaluation of
process inventory	603	988	370	1,724	3,203	2,563	4,042
Operating profit (EBIT)	681	1,160	-59	1,317	3,494	1,994	4,171
Profit after financial items	629	1,116	-116	1,160	3,356	1,796	3,992
Net profit	498	827	-100	905	2,477	1,769	3,341
Earnings per share, SEK	1.81	3.02	-0.37	3.30	9.05	6.45	12.21
Free cash flow	436	310	-1,477	-1,261	1,277	-1,148	1,389
Net debt	8,454	6,255	8,965	8,454	6,255	8,454	6,276
Return on capital employed, %						6	14
Return on shareholders' equity, %						8	16
Net debt/equity ratio, %	38	29	41	38	29	38	28

Amended accounting principles have necessitated the restatement of the 2012 comparison quarters.

THE GROUP

Sales and production

Revenues during the quarter totalled SEK 8,471 million (SEK 9,123 m). Revenues fell, year-on-year, primarily as a result of lower prices – an effect that was only partially counteracted by increased metal production. Sales and smelter production have, however, increased in comparison with the previous quarter, when large maintenance shutdowns were implemented at several smelters. Mined production fell, however, for the majority of metals.

Operating profit

The operating profit totalled SEK 681 million (SEK 1,160 m). If the revaluation of process inventory is excluded, the operating profit totalled SEK 603 million (SEK 988 m). The Group's operating expenses, excluding depreciation, totalled SEK 2,505 million (SEK 2,410 m). Year-on-year operating expenses rose by 3 per cent in local currencies but fell by 10 per cent in comparison with the previous quarter. The changes in relation to the second quarter are due partly to the maintenance shutdowns carried out during the previous quarter and partly to the lower personnel costs during the holiday season. Energy, spare parts and consumables costs increased, year-on-year, while transport costs fell.

The operating profits for Business Area Mines and Business Area Smelters (excluding the revaluation of the process inventory) were SEK 372 million (SEK 858 m) and SEK 262 million (SEK 281 m), respectively. Business Area Smelters' profit increased in comparison with the previous quarter due to the completion of the planned maintenance shutdowns, to increased volumes, and to lower costs. Business Area Mines' profit remained unchanged.

The operating profit was negatively affected in relation to both comparison periods by the maturation of the majority of the metal price and currency hedges, which were signed in conjunction with the decision to expand Garpenberg, at the end of the second quarter. Exchange rate trends have also had a negative effect on the operating profit in comparison with both the previous quarter and the previous year.

SEK m 3-2013 3-2012 2-2013 Operating profit 681 1,160 -59 Revaluation of process inventory 78 172 -429 Operating profit ex. revaluation of process inventory 603 988 370 Change -385 233 Analysis of change Volume effect 10 56 Prices and terms -473 -62 Metal prices and terms -245 188 By-products, prices and terms -65 -5 Realised metal price and currency hedging -87 -163 TC/RC terms 6 -42 Metal premiums -3 18 Exchange rate effects -79 -58 Of which translation effects 8 8 Costs (local currencies) -73 290 Depreciation 6 25 Internal profit elimination 107 -82 Other 39 6 Change -385 233 Result for respective quarter 3-2013 3-2012 2-2013		Quarter
	Realised metal price and currency hedging	6	93	169

Profit analysis

Net financial items totalled SEK -52 million (SEK -43 m). The average interest rate payable during the quarter was 1.8 per cent, in comparison with 2.0 per cent in the previous quarter and 3.3 per cent in comparison with the corresponding period in 2012.

The profit before tax was SEK 629 million (SEK 1,116 m) and the net profit was SEK 498 million (SEK 827 m), corresponding to earnings per share of SEK 1.81 (SEK 3.02).

Cash flow	Quarter			Nine months		12 months	Full year
SEK m	3-2013	3-2012	2-2013	2013	2012	Oct-Sept	2012
Cash flow from operating activities
before change in working capital	1,673	1,628	162	2,937	4,013	4,122	5,198
Changes in working capital	-86	-475	-132	-521	47	-248	320
From operating activities	1,587	1,153	30	2,416	4,061	3,873	5,518
Cash flow from investment activities	-1,152	-843	-1,507	-3,676	-2,785	-5,020	-4,129
Before financing (Free cash flow)	436	310	-1,477	-1,261	1,277	-1,148	1,389

The tax refund during the quarter totalled SEK 283 million (SEK -255 m). Tax paid in the previous quarter totalled SEK -354 million.

Financial position

Boliden's net debt at the end of the quarter totalled SEK 8,454 million (SEK 6,255 m) and the net debt/equity ratio was 38 per cent (29%). The average term of total loan facilities granted was 2.8 years (3.7 yrs.) at the period end. The average interest level for Boliden's debt portfolio was 1.8 per cent (3.2%) and the average fixed interest term was 0.6 years (0.8 yrs.).

The contribution to shareholders' equity of the net market valuation of financial derivatives, after fiscal effects, was SEK 168 million (SEK -351 m) on 30th September 2013. Boliden's current liquidity, in the form of liquid assets and unutilised binding credit facilities with a term of more than one year, totalled SEK 6,614 million (SEK 9,153 m) at the end of the third quarter.

THE PARENT COMPANY

The Parent Company, Boliden AB, conducts no operations and has no employees. The Income Statements and Balance Sheets for the Parent Company are shown on page 20.

ONGOING EXPANSION PROJECTS

The Garpenberg zinc/silver mine

The expansion of the Garpenberg zinc and silver mine will increase the mine's ore production capacity from its current level of 1.4 million tonnes per annum to 2.5 million tonnes per annum. The project, which is now entering the final phase before test runs, is proceeding according to plan and the new facilities are scheduled, as planned, to commence production during the first six months of 2014. The investment is Boliden's second biggest investment ever and is expected to total SEK 3.9 billion.

Silver recovery at Kokkola

A facility for the recovery of silver from zinc concentrates, which contain increasing grades of silver, is being built at the Kokkola zinc smelter. This project, too, is currently in the midst of an intensive phase and is proceeding according to plan. The investment is estimated at SEK 240 million and production is scheduled to start in the third quarter of 2014.

EVENTS AFTER THE END OF THE REPORTING PERIOD

Lawsuit arising from the export of smelter sludge

On 7 October, Boliden received a writ of summons regarding damages totalling just over SEK 90 million plus interest. The claim is in respect of the arsenic poisoning of just over 700 injured parties in the town of Arica in Chile, to which Boliden exported smelter sludge from Rönnskär between 1984 and 1985 for processing by a Chilean company,

Promel. The suit has been brought by a Swedish limited partnership, Arica Victims KB. The next stage in the process is for Boliden to enter a defence. For additional information on the background to this case, see Boliden's website at www.boliden.com.

MARKET DEVELOPMENT

Global economic growth has remained weak during the third quarter. Economic growth in China has been good and on a par with levels during the second quarter.

European industrial activity levels have fallen, year-on-year, with the construction market continuing to be weak and automotive production remaining more or less on a par with levels last year. Industrial activity levels increased slightly in the USA, the partially restrictive effect of austerity measures notwithstanding.

Industrial production and infrastructural investments in China continued to show high year-on-year growth levels, while investment in housing in the major cities showed weaker growth. The growth in China's automotive production continued to be high.

Zinc

Global demand for zinc was higher than in the previous quarter and increased by almost 4 per cent, year-on-year. Growth in demand continued to be strong in China and was on a par with levels during the second quarter.

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

Source: © CRU (www.crugroup.com)

Global production by smelters was on a par with levels in the previous quarter and increased, year-on-year, by just over 6 per cent, with the growth in production particularly pronounced in China. Global production fell slightly short of demand for the metal in the third quarter and official stock levels fell during the quarter.

Global production of mined concentrate was lower than in the second quarter and also fell, year-on-year. The year-onyear fall was due to lower production levels in both China and North America. The global market for mined concentrate noted a surplus during the quarter due to increased mine production and the maintenance shutdowns carried out at many smelters.

Spot treatment charges rose in comparison with the second quarter and were also higher, year-on-year, but continue to be lower than those in the benchmark contracts for 2013. The realised treatment charges in benchmark contracts remained unchanged in comparison with the second quarter but were higher, year-on-year. European spot premiums rose slightly during the quarter.

Copper

Global demand for copper was lower than in the second quarter but increased by approximately 2 per cent in comparison with the third quarter of 2012. The growth in demand was lower than in the second quarter in both China and the rest of the world.

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

Source: © CRU (www.crugroup.com)

Global production by smelters was slightly lower than in the second quarter and on a par with levels in the third quarter of 2012. Production increased in China but fell elsewhere in the world due, in part, to the maintenance shutdowns carried out by many smelters. Global copper production is adjudged to have matched demand, but stock levels on the metals exchanges fell and were transferred to other unofficial stocks.

Global production of mined copper concentrate increased, year-on-year, production disruptions notwithstanding. The global market for mined concentrate is deemed to have achieved an approximate balance between supply and demand.

Spot TC/RC rose during the quarter, primarily as a result of the anticipated increase in availability of concentrate. A rise in spot TC/RC at the end of the third and fourth quarter is also a familiar seasonal pattern. The current levels are higher than those in the benchmark contracts for 2013 and substantially higher than in the third quarter last year. European spot premiums continued to rise and were significantly higher than in the third quarter of 2012. Spot premiums also continued to rise in Asia and the USA.

Precious metals

The precious metals market is largely driven by demand from financial operators, the jewellery industry and, from time to time, by the actions of central banks. Industrial demand is an additional driving factor in overall demand for silver.

Gold and silver prices have been rising for some time now due to the increasing tendency to mandate financial operators to include precious metals as an asset class in their portfolios. The number of listed funds holding precious metal stocks has increased dramatically in recent years, but interest in investment in these funds has waned in 2013 and gold and silver prices have fallen.

Gold and silver prices have fallen between the end of 2012 and the end of the third quarter of 2013 by 20 and 28 per cent, respectively. Gold and silver prices during the third quarter were 6 per cent and 8 per cent lower, respectively, than during the second quarter, and 20 and 28 per cent lower, respectively, than during the third quarter of last year. Prices have, however, thus far stabilised during the early part of the fourth quarter.

Lead

Global demand for lead was slightly higher than in the second quarter and just over 2 per cent higher, year-on-year. The year-on-year growth was driven by a continued increase in automotive production in China and North America and increased battery production. Competition for lead from recycled batteries in Europe has continued to be severe and prices for this raw material were on a par with those during the second quarter of this year, but the margin between the price of lead and that of the raw material has increased slightly in comparison with the second quarter.

The price of lead has outperformed the other base metals for some time now. Increased demand from the automotive industry, coupled with increasingly strict environmental requirements for mines and smelters, has put pressure on the supply of lead. Global production by smelters increased by just under 3 per cent, year-on-year, and was on a par with levels during the second quarter of this year. Global supplies of lead metal matched global demand, while the global mined concentrate market is adjudged to have shown a surplus.

Sulphuric acid

Demand for sulphuric acid in northern Europe was stable but fell in the Nordic region, and prices were slightly lower, year-on-year.

Metal prices

Average base metal prices remained on a par with those in the previous quarter, while precious metal prices fell. Prices for all metals, with the exception of lead, were lower than in 2012. The price trend in Swedish kronor is even more negative, year-on-year, due to the strengthening of the krona against the US dollar.

Metal prices (USD) Quarter							Nine months
(average LME/LBMA)	3-2013	3-2012	%	2-2013	%	2013	2012	%
Zinc (USD/tonne)	1,859	1,885	-1	1,840	1	1,910	1,946	-2
Copper (USD/tonne)	7,073	7,706	-8	7,148	-1	7,379	7,964	-7
Lead (USD/tonne)	2,102	1,975	6	2,053	2	2,151	2,015	7
Gold (USD/troy oz.)	1,325	1,651	-20	1,416	-6	1,456	1,651	-12
Silver (USD/troy oz.)	21.32	29.80	-28	23.14	-8	24.80	30.63	-19
Metal prices (SEK)			Quarter				Nine months
(average LME/LBMA)	3-2013	3-2012	%	2-2013	%	2013	2012	%
Zinc (SEK /tonne)	12,183	12,737	-4	12,074	1	12,445	13,262	-6
Copper (SEK /tonne)	46,357	52,053	-11	46,892	-1	48,084	54,263	-11
Lead (SEK /tonne)	13,774	13,338	3	13,470	2	14,018	13,728	2
Gold (SEK /troy oz.)	8,682	11,151	-22	9,290	-7	9,485	11,250	-16
Silver (SEK /troy oz.)					-8	161.61	208.69	-23

Exchange rates

The changes in exchange rates are small in comparison with the previous quarter, but the Swedish krona and the euro have strengthened, year-on-year, against the US dollar. The euro has also strengthened against the Swedish krona during the quarter.

Exchange rates		Quarter					Nine months
(average)	3-2013	3-2012	%	2-2013	%	2013	2012	%
USD/SEK	6.55	6.76	-3	6.56	0	6.52	6.81	-4
EUR/USD	1.32	1.25	6	1.31	1	1.32	1.28	3
EUR/SEK	8.68	8.44	3	8.56	1	8.58	8.73	-2
USD/NOK	5.99	5.91	1	5.83	3	5.81	5.86	-1

SENSITIVITY ANALYSIS

The following table contains an estimate of how changes in market terms affect the Group's operating profit (EBIT) over the next twelve-month period. The calculation is based on listings on 30th September 2013 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 the revaluation of process inventory in the smelters.

Change in metal	Effect on	Change in USD,	Effect on	Change in	Effect on
prices	operating	+10%	operating	TC/RC, +10%	operating
+10%	profit, SEK m		profit, SEK m		profit, SEK m
Copper	390	USD/SEK	930	TC/RC Copper	80
Zinc	445	EUR/USD	350	TC Zinc	40
Lead	85	USD/NOK	80	TC Lead	-10
Gold	150
Silver	130

METAL PRICE AND CURRENCY HEDGING

The following table shows Boliden's outstanding price and hedging contracts on 30th September 2013. The hedging programmes instituted in conjunction with the Garpenberg expansion project matured in June 2013.

Boliden's production, with the exception of gold, is now fully exposed to market prices. The hedging reduces the effects of fluctuations in the price of gold and US dollar exchange rates on the Group's profits.

Metals	2013	2014	2015	2016	2017
Gold
Hedged volume (troy oz.)	7,050	38,400	48,600	47,000	29,000
Forward price, USD/troy oz.	1,412	1,455	1,491	1,487	1,490
Market value, SEK m	3	29	46	44	28
Currencies	2013	2014	2015	2016	2017
USD/SEK
Hedged volume (USD m)	10	56	72	70	43
Forward rate, USD/SEK	6.83	6.83	6.78	6.77	6.77
Market value, SEK m	4	19	16	15	10

BUSINESS AREA MINES

Production levels fell in comparison with the previous quarter. The profit remained largely unchanged, however, due to a positive pricing effect and lower costs. Business Area Mines' revenues totalled SEK 2,139 million (SEK 2,543 m) and its operating profit was SEK 372 million (SEK 858 m). The negative price trend in particular impacted the yearon-year profit.

Financial performance

		Quarter	Nine months
SEK m	3-2013	3-2012	2-2013	2013	2012
Revenues	2,139	2,543	2,163	6,344	7,406
Operating expenses	1,224	1,163	1,342	3,698	3,740
Depreciation	473	489	498	1,429	1,304
Operating profit	372	858	376	1,175	2,429
Investments	947	798	977	2,726	2,374
Capital employed	17,475	15,177	16,968	17,475	15,177

Amended accounting principles have necessitated a restatement of the results for the comparison quarters in 2012. See page 27-28 and interim report January-March 2013.

Production

	Quarter						Nine months
	3-2013	3-2012	%	2-2013	%	2013	2012	%
Zinc, tonnes	63,045	66,735	-6	71,558	-12	200,079	216,485	-8
Copper, tonnes	20,963	21,093	-1	20,417	3	57,969	60,111	-4
Lead, tonnes	12,173	13,137	-7	12,136	0	35,833	39,697	-10
Gold, kg	986	861	14	1,025	-4	2,731	2,704	1
Gold, troy oz.	31,688	27,695	14	32,953	-4	87,799	86,921	1
Silver, kg1	67,162	60,127	12	75,533	-11	201,702	177,822	13
Silver, '000 troy oz.	2,159	1,933	12	2,428	-11	6,485	5,717	13

Metal content in concentrates. Information about production and metal grades at the respective units can be found on pages 22-23.

Production levels at Aitik continued stable and high and the milled tonnage over the past four quarters totals just under 35 Mtonnes. Milled tonnage and metal production both fell slightly during the third quarter in comparison with the previous quarter. Copper grades rose slightly during the quarter but production will continue in areas with low copper and gold grades until the end of 2014.

Milled tonnage in the Boliden Area fell due to the temporary use of a milling section for processing smelter slag from Rönnskär, which led to reduced metal production in comparison with the previous quarter, primarily with regard to zinc, lead and silver. The effect on the profit was, however, limited. Copper production increased due to higher grades, while gold production fell slightly.

Milled tonnage at Garpenberg increased in comparison with the second quarter and this, coupled with slightly higher grades, resulted in increased zinc production. Silver production fell slightly due to lower grades, while improved yields resulted in higher levels of lead production. Production of all metals increased, year-on-year, but towards the end of the year, production will take place in areas with substantially lower grades.

A slight reduction in milled tonnage, coupled with lower grades, resulted in lower production levels at Tara during the quarter. Lower grades and yields resulted in lower levels of lead production and also explain the year-on-year change.

¹Includes silver production at Tara that is not payable - see page 23 for details of Tara's production.

Profit analysis

	Quarter
SEK m	3-2013	3-2012	2-2013
Operating profit	372	858	376
Change		-486	-4
Analysis of change
Volume effect		-51	-161
Prices and terms		-421	6
Metal prices and terms		-285	163
Realised metal price and currency hedging*		-68	-129
TC/RC terms		-22	8
Exchange rate effects		-47	-36
Of which translation effects		2	2
Costs (local currencies)		-51	120
Depreciation		17	26
Other		21	5
Change		-486	-4
*Result for respective quarter	3-2013	3-2012	2-2013
Realised metal price and currency hedging	6	74	135

Operating expenses in local currencies increased by 4 per cent, year-on-year. Energy, consumables and spare parts costs have increased, while transport and external services costs have fallen. Costs fell by 9 per cent in comparison with the previous quarter due to the effect of the holiday season and to a slightly reduced rate of exploration.

BUSINESS AREA SMELTERS

Production volumes have normalised after the extensive maintenance shutdowns during the second quarter, and this has had a positive volume and cost effect in comparison with the previous quarter. Business Area Smelters' operating profit, excluding the revaluation of process inventory, totalled SEK 262 million (SEK 281 m).

Financial performance

		Quarter	Nine months
SEK m	3-2013	3-2012	2-2013	2013	2012
Revenues	8,320	8,847	7,577	24,970	28,878
Gross profit ex. revaluation
of process inventory	1,795	1,751	1,618	5,245	5,520
Operating expenses	1,313	1,252	1,434	4,068	4,001
Depreciation	226	214	225	674	655
Operating profit ex.
revaluation of process
inventory	262	281	-30	530	892
Operating profit	340	452	-459	123	1,184
Investments	203	172	530	946	716
Capital employed	15,781	15,940	15,957	15,781	15,940

Amended accounting principles have necessitated a restatement of the results for the comparison quarters in 2012. See page 27-28 and interim report January-March 2013.

	Quarter					Nine months
	3-2013	3-2012	%	2-2013	%	2013	2012	%
Zinc, tonnes	115,170	116,772	-1	105,896	9	335,222	351,292	-5
Copper, tonnes	87,558	81,941	7	63,909	37	233,758	248,248	-6
Lead, tonnes	4,747	3,431	38	5,836	-19	16,844	12,390	36
Lead alloys, tonnes
(Bergsöe)	8,156	7,831	4	11,329	-28	31,894	30,180	6
Gold, kg	4,155	4,017	3	3,463	20	11,811	12,425	-5
Gold, troy oz.	133,568	129,135	3	111,340	20	379,734	399,474	-5
Silver, kg	160,423	124,173	29	112,122	43	395,061	423,584	-7
Silver, '000 troy oz.	5,158	3,992	29	3,605	43	12,701	13,618	-7
Sulphuric acid, tonnes	427,573	407,009	5	317,046	35	1,141,934	1,214,474	-6
Aluminium fluoride, tonnes	6,375	6,155	4	8,305	-23	23,546	26,678	-12

Information about production at the respective units can be found on pages 24-25.

Material processing and metal production both increased at Rönnskär in comparison with both of the comparison periods. Continued disruptions to production did, however, result in lower yields and higher costs and hence had a negative effect on the profit. Measures are being implemented in order to rectify these problems.

Harjavalta increased its processing of copper and nickel raw materials in relation to both comparison periods and the production of copper cathodes increased. Gold and silver production fell, however.

Kokkola's production was stable during the quarter, showing only small variations from both comparison periods.

Odda's production increased in comparison with the previous quarter when extensive maintenance shutdowns and renovation work were carried out. Production and processing levels were slightly down, year-on-year. Odda is also still suffering the effects of the breakdown in one of the leaching tanks that occurred in October 2012 and a replacement tank will be installed in early 2014.

Bergsöe's production of lead alloys fell in comparison with the previous quarter due to a maintenance shutdown but increased, year-on-year.

Profit analysis

	Quarter
SEK m	3-2013	3-2012	2-2013
Operating profit	340	452	-459
Revaluation of process inventory	78	172	-429
Operating profit ex. revaluation of process
inventory	262	281	-30
Change		-19	292
Analysis of change
Volume effect		61	217
Prices and terms*		-29	-42
Metal prices and terms		64	51
By-products, prices and terms		-65	-5
Realised metal price and currency hedging*		-19	-33
TC/RC terms		28	-51
Metal premiums		-3	18
Exchange rate effects		-34	-22
Of which translation effects		3	5
Costs (local currencies)		-51	123
Depreciation		-11	-2
Other		11	-3
Change		-19	292
*Result for respective quarter	3-2013	3-2012	2-2013
Realised metal price and currency hedging	0	19	34

The comparisons with the previous quarter are dominated by the extensive maintenance shutdowns that impacted the second quarter profit to the tune of SEK -305 million. Prices and terms, and exchange rates also had a simultaneous but weak negative impact. Increased volumes, lower sulphuric acid prices and a certain increase in costs are the most important changes year-on year.

Operating expenses in local currencies increased by 4 per cent in comparison with the previous year but fell by 9 per cent in comparison with the previous quarter due to the maintenance shutdowns in that quarter and the effect of the holiday season. Energy and external services costs have increased, year-on-year.

Maintenance shutdowns

A maintenance shutdown has been carried out at Bergsöe during the quarter, which has negatively impacted the operating profit to the tune of SEK 25 million. No maintenance shutdowns are planned during the fourth quarter.

SUMMARY OF BOLIDEN'S PERFORMANCE DURING THE FIRST NINE MONTHS OF THE YEAR

Revenues for the first nine months of the year totalled SEK 25,755 million (SEK 29,807 m). The decline is primarily due to lower metal prices and lower volumes from the smelters, which carried out extensive maintenance shutdowns during the year.

The operating profit, excluding the revaluation of process inventory, fell by SEK 1,479 million to SEK 1,724 million (SEK 3,203 m). Lower prices and negative exchange rate effects account for the majority of the deterioration in the profit. Consumables, spare parts and energy costs have also increased. The maintenance shutdowns thus far this year negatively affected the profit to the tune of SEK 330 million (SEK 170 m).

Net financial items totalled SEK -157 million (SEK -138 m) and the net profit was SEK 905 million (SEK 2,477 m). Earnings per share totalled SEK 3.30 (SEK 9.05).

Investments during the first nine months of the year totalled SEK 3,680 million (SEK 3,094 m).

Profit analysis

	Nine months
SEK m	2013	2012
Operating profit	1 317	3 494
Revaluation of process inventory	-407	292
Operating profit ex. revaluation of process
inventory	1 724	3 203
Change		-1 479
Analysis of change
Volume effect		-117
Prices and terms		-1 262
Metal prices and terms		-838
By-products, prices and terms		-192
Realised metal price and currency hedging*		45
TC/RC terms		86
Metal premiums		5
Exchange rate effects		-368
Of which translation effects		-2
Costs		-239
Depreciation		-158
Internal profit elimination		115
Items affecting comparability**		171
Other		11
Change		-1 479
*Result for respective quarter	2013	2012
Realised metal price and currency hedging	217	172

** The item comprises a positive effect of SEK 217 million resulting from the raising of the pensionable age at Tara, and a negative effect of SEK -46 million resulting from restructuring costs in connection with workforce reductions at Tara.

SUSTAINABLE DEVELOPMENT

Employees

The average number of Boliden employees² during the first nine months of the year was 4,786 (4,772). Of these, 2,853 (2,786) work in Sweden, 932 (956) in Finland, 684 (719) in Ireland, 300 (296) in Norway and 18 (16) in other counties. The average number of employees for 2012 as a whole was 4,795. The increase in personnel in Sweden is due to the expansion projects and to the fact that maintenance work at Aitik is increasingly carried out by Boliden's own personnel.

The sick leave rate during the second quarter was 3.2 per cent (3.1%), corresponding to a reduction in comparison with the previous quarter, when the sick leave rate was 3.8 per cent. The Group's long-term goal is for its sick leave rate not to exceed 4.0 per cent.

The accident frequency (LTI, number of accidents per one million hours worked) was 8.0 (9.2) during the third quarter, corresponding to an increase in comparison with the previous quarter when the accident frequency was 5.6. The accident frequency including contractors was 10.6 (10.0), corresponding to an increase in comparison with the second quarter, when the frequency was 9.3.

A serious accident occurred at the Kankberg mine in August, when a driver employed by a contractor reversed a truck over an edge, falling ca. 12-15m down on to an ore stockpile. The driver suffered abrasions and fractured ribs.

A fire broke out in an underground diesel compressor in the Kristineberg mine in August. One mineworker was trapped by the fire and sought shelter in a drilling unit cabin. Two other mineworkers who searched for the trapped mineworker were forced to take shelter in the refuge chamber. All of those affected were taken to hospital but escaped without any serious physical injuries.

A serious accident occurred in a vehicle workshop at Rönnskär in September when a lifting arm fell, hitting an employee who suffered head injuries and fractures.

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.

In July, the Kokkola smelter exceeded the threshold limit of 50,000 mg/kg for dissolved sulphate in landfill waste when the waste contained 59,000 mg/kg. The effect on the external environment was minimal as the threshold limit refers to internal landfill waste.

Internal 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. Compliance with these goals is followed up on a monthly basis, with the exception of the carbon dioxide emission/energy consumption goals, which are followed up quarterly and reported in the Annual Report.

Boliden's internal goals for the maximum emission of metals and sulphur dioxide to air and discharges of metals and nutrient salts to water have been met in 2013.

2 Full time equivalents

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 Risks and risk management on pages 30-31 and Note 20 Financial risk management on pages 102-103 of Boliden's Annual Report for 2012.

PREPARATION PRINCIPLES FOR THE INTERIM REPORT

The Consolidated Interim 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 new standard and a number of new addenda to IFRS standards and interpretations by IFRIC have come into force for financial years beginning on or after 1st July 2012 (IAS 1) and 1st January 2013 (IAS 19, IFRS 7, IFRS 13 and IFRIC 20) and affect Boliden. See also Boliden's Interim Report for the first quarter of 2013.

For more detailed information on revised and new standards and interpretations, see the section on accounting principles in Boliden's 2012 Annual Report.

Stockholm, 22nd October 2013

Lennart Evrell President & CEO

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 22nd October 2013 at 12 noon (CET).

INTERIM REPORTS

The Year-end Report for 2013 will be published on 12 th February 2014. The 2014 Annual General Meeting will be held on 6th May in Boliden.

PRESENTATION OF THE REPORT

The Interim Report will be presented in Stockholm and via a webcast/conference call Time: Tuesday, 22nd October, 15.00 (CET) Place: Lundqvist och Lindqvist, S:t Clara auditorium Address: Klarabergsviadukten 90, Stockholm, Sweden

The webcast 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: 08-505 56 474 (include the area code) Telephone number from other countries: +44 (0)203 364 53 74

Contact persons for information:

Lennart Evrell, President & CEO	Tel:	+46 8 610 15 00
Mikael Staffas, CFO	Tel:	+46 8 610 15 00
Frans Benson, Director Group Investor Relations	Tel:	+46 8 610 15 23

CONSOLIDATED INCOME STATEMENTS

The result for the comparison year of 2012 has been restated in all tables and in other information contained in this report in response to the amendments to Boliden's accounting principles. See also pages 29-30 and Interim report January-March 2013.

		Three months		Nine months		12 mos.	Full year
SEK m	3-2013	3-2012	2-2013	2013	2012	Oct-Sept	2012
Revenues	8,471	9,123	8,035	25,755	29,807	35,949	40,001
Cost of goods sold	-7,503	-7,660	-7,779	-23,486	-25,381	-32,664	-34,559
Gross profit	968	1,463	257	2,269	4,426	3,285	5,442
Selling expenses	-83	-89	-75	-250	-284	-351	-385
Administrative expenses	-153	-118	-144	-466	-397	-604	-535
Research and development costs	-84	-91	-123	-315	-318	-426	-429
Other operating income and
expenses Results from participations in	32	-6	27	77	68	86	77
associated companies	1	-	-	2	-	3	1
Operating profit	681	1,160	-59	1,317	3,494	1,994	4,171
Financial income	6	25	7	23	68	42	87
Financial expenses	-58	-68	-64	-180	-206	-239	-265
Profit after financial items	629	1,116	-116	1,160	3,356	1,796	3,992
Taxes	-131	-290	16	-255	-879	-27	-651
Net profit	498	827	-100	905	2,477	1,769	3,341
Net profit attributable to:
The Parent Company's
shareholders	496	826	-101	903	2,476	1,766	3,339
Holdings with non-controlling
interests	2	1	1	2	1	3	2

Earnings and shareholders'

equity per share

		Three months		Nine months		12 mos.	Full year
	3-2013	3-2012	2-2013	2013	2012	Oct-Sept	2012
Earnings per share*, SEK	1.81	3.02	-0.37	3.30	9.06	6.45	12.21
Shareholders' equity per share,
SEK	82.04	77.91	80.47	82.04	77.91	82.04	81.68
Number of shares	273,511,169	273,511,169	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	273,511,169	273,511,169
Number of own shares held	–	–	–	–	–	–	–

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

KEY RATIOS – THE GROUP

	Three months				Nine months	12 mos.	Full year
	3-2013	3-2012	2-2013	2013	2012	Oct-Sept	2012
Return on capital employed1), %						6	14
Return on shareholders' equity2), %						8	16
Equity/assets ratio, %	55	56	55	55	56	55	56
Net debt/equity ratio3), %	38	29	41	38	29	38	28
Net debt, SEK m	8,454	6,255	8,965	8,454	6,255	8,454	6,276

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

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

		Three months			Nine months		Full year
SEK m	3-2013	3-2012	2-2013	2013	2012	12 mos. Oct-Sept	2012
Profit for the period	498	827	-100	905	2,477	1,769	3,341
Other comprehensive income
Items that will be reclassified to the Income Statement
Cash flow hedging
Change in market value of derivative instruments Fiscal effect on derivative instruments Transfers to the Income Statement Tax on transfers to the Income Statement	-90 20 -4 1	-380 100 -83 22	508 -112 -161 35	594 -131 -193 42	-493 130 -146 38	940 -222 -248 57	-147 39 -201 53
Effect of change in tax rate, market
value of derivative instruments	- -73	- -342	- 270	- 312	- -471	-8 519	-8 -265
The period's translation difference on overseas operations Profit on hedging of net investments in	-36	-157	211	30	-244	114	-159
overseas operations	49	228	-279	-35	353	-169	219
Tax on the profit for the period from hedging instruments	-11	-60	61	8	-93	53	-48
	2	11	-7	3	16	-2	12
Total items that will be reclassified	-71	-331	263	315	-455	516	-254
Items that will not be reclassified in the Income Statement
Revaluation of defined benefit pension plans Tax attributable to items not reclassified	6	27	-21	-35	-84	-77	-126
to the Income Statement	-1	-9	5	10	20	19	29
Total items that will not be reclassified	5	18	-16	-25	-64	-58	-97
Total other comprehensive income	-66	-313	247	290	-519	458	-351
Comprehensive income for the period	432	514	147	1,195	1,958	2,227	2,990
Comprehensive income for the period attributable to:
The Parent Company's shareholders Holdings with non-controlling interests	430 2	513 1	146 1	1,193 2	1,957 1	2,224 3	2,988 2

CONSOLIDATED BALANCE SHEET

	30th Sept	30th Sept	31st Dec
SEK m	2013	2012	2012
Intangible fixed assets	3,098	3,119	3,160
Tangible fixed assets	26,647	23,625	25,138
Participations in associated companies	9	7	8
Other shares and participations	25	45	24
Deferred tax	56	252	247
Interest-bearing assets	97	105	104
Inventories	8,170	8,274	8,244
Interest-bearing current receivables	3	3	3
Tax receivables	21	23	12
Other receivables	2,304	2,243	2,129
Liquid assets	223	361	1,011
Total assets	40,653	38,057	40,080
Shareholders' equity	22,454	21,323	22,354
Pension provisions	1,182	1,284	1,382
Deferred tax provisions	2,617	2,821	2,760
Other provisions	1,651	1,116	1,650
Interest-bearing long-term liabilities	4,138	3,498	4,315
Interest-bearing current liabilities	3,422	1,907	1,666
Tax liabilities	134	221	105
Other current liabilities	5,055	5,886	5,848
Total shareholders' equity and liabilities	40,653	38,057	40,080

CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY

	30th Sept	30th Sept	31st Dec
SEK m	2013	2012	2012
Opening balance	22,354	20,458	20,458
Comprehensive income for the period	1,195	1,958	2,990
Dividend	-1,095	-1,094	-1,094
Closing balance	22,454	21,323	22,354
Total shareholders' equity attributable to:
The Parent Company's shareholders	22,439	21,309	22,340
Holdings with non-controlling interests	15	14	14

On 30th September 2013, the hedging reserve, after fiscal effects, totalled SEK 168 million. The corresponding amount on 31st December 2012 was SEK -145 million.

FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE

30th September 2013, SEK m	Fair value	Reported value
Other shares and participations	25	25
Accounts receivable	1,117	1,117
Interest-bearing receivables	3	3
Derivative instruments	365	365
Liquid assets	223	223
Total assets	1,733	1,733
Liabilities to credit institutions	7,568	7,556
Other interest-bearing liabilities	4	4
Accounts payable	3,839	3,839
Derivative instruments	64	64
Total liabilities	11,475	11,463

The fair value of derivatives is based on listed bid and ask prices on the closing day and on a discounting of estimated cash flows. Market prices for metals are taken from the trading location of metal derivatives, i.e. the London Metal Exchange (LME) and the London Bullion Market Association (LBMA). Discount rates are based on current market rates per currency and time to maturity for the financial instrument. Exchange rates are obtained from the Riksbank. When presenting the fair value of liabilities to credit institutions, the fair value is calculated as discounted agreed amortisations and interest payments at estimated market interest margins.

The reported values of accounts receivable and accounts payable is deemed to be the same as their fair value due to the short time to maturity, the fact that provisions are made for doubtful accounts receivable and that any penalty interest will be debited.

Boliden's financial instruments holdings, which are reported at fair value in the Balance Sheet, are all classified as level 2 items in the fair value hierarchy. See also under the Accounting Principles section of the Annual Report.

NETTING OF FINANCIAL ASSETS AND LIABILITIES

30th Sept 2013	Gross asset	Netting for ordinary course of business	Net asset reported in the Balance Sheet	Netting in conjunction with early termination	Net asset in conjunction with early termination
Derivative	398	-33	365	-56	308
30th Sept 2013	Gross liability	Netting for ordinary course of business	Net liability reported in the Balance Sheet	Netting in conjunction with early termination	Net liability in conjunction with early termination
Derivative	98	-33	64	-56	8

Netting of financial assets and liabilities is regulated under the provisions of ISDA (International Swaps and Derivatives Association) agreements that address both netting between contracted counterparties during ordinary course of business and in conjunction with circumstances that involve breach of contract or early termination.

In conjunction with ordinary course of business, Boliden applies netting of payments on obligations that mature on the same date, in the same currency, and for the same kind of instrument. Only surplus amounts per instrument and currency are paid by the party with the largest liability.

In conjunction with breaches of contract or early termination that may be caused by circumstances not directly associated with neglect by an individual counterparty, all terminated obligations comprised by ISDA agreements per counterparty are netted in a sum paid by the counterparty with the largest liability.

CONSOLIDATED STATEMENTS OF CASH FLOW

SEK m	3-2013	Three months 3-2012	2-2013	Nine months 2013	2012	12 mos. Oct-Sept	Full year 2012
Operating activities
Profit after financial items	629	1,116	-116	1,160	3,356	1,796	3,992
Adjustments for items not included in the cash flow:
- Depreciation, amortisation and write
down of assets	699	704	724	2,105	1,960	2,706	2,561
- Provisions	-19	-17	20	-191	49	-108	132
- Translation differences etc.	81	80	-111	124	-195	-23	-342
Tax paid/received	283	-255	-354	-261	-1,157	-249	-1,145
Cash flow from operating activities
before changes in working capital	1,673	1,628	162	2,937	4,013	4,122	5,198
Cash flow from changes in working capital	-86	-475	-132	-521	47	-248	320
Cash flow from operating activities	1,587	1,153	30	2,416	4,061	3,873	5,518
Investment activities - Acquisition/sale of intangible fixed
assets	-4	-4	-4	-9	-11	-22	-24
- Acquisition/sale of tangible fixed assets	-1,146	-869	-1,504	-3,667	-2,798	-5,020	-4,151
- Acquisition/sale of financial fixed
assets	-1	18	-	-3	12	14	29
- Other	-1	12	1	3	11	9	17
Cash flow from investment activities	-1,152	-843	-1,507	-3,676	-2,785	-5,020	-4,129
Cash flow before financing activities	436	310	-1,477	-1,261	1,277	-1,148	1,389
Dividend	-1	-	-1,094	-1,095	-1,094	-1,095	-1,094
Net borrowing/net amortisation	-290	-304	1,800	1,567	-176	2,107	364
Cash flow from financing activities	-291	-304	706	473	-1,270	1,013	-730
Cash flow for the period	145	6	-771	-788	5	-134	659
Liquid assets at the beginning of the
period	79	355	846	1,011	355	361	355
Exchange rate difference on liquid
assets Liquid assets at period-end	-1 223	0 361	4 79	- 223	1 361	-4 223	-3 1,011

INCOME STATEMENT – THE PARENT COMPANY

		Three months	Nine months
SEK m	3-2013	3-2012	2013	2012
Dividends from subsidiaries	-	-	2,442	2,607
Write-downs of participations in Group	-
companies		-17	-	-17
Profit after financial items	-	-17	2,442	2,590
Taxes	-	-	-	-
Profit for the period	-	-17	2,442	2,590

Boliden AB has no amounts to report under Other comprehensive income.

BALANCE SHEET – THE PARENT COMPANY

	30th Sept	30th Sept	31st Dec
SEK m	2013	2012	2012
Participations in Group companies	3,911	3,911	3,911
Other shares and participations	5	5	5
Long-term financial receivables, Group companies	8,365	7,017	7,017
Current financial receivables, Group companies	2,797	1,471	1,266
Total assets	15,079	12,405	12,200
Shareholders' equity	12,282	10,934	10,934
Current liabilities to credit institutions	2,797	1,471	1,266
Total liabilities and shareholders' equity	15,079	12,405	12,200

The Parent Company, Boliden AB, conducts no operations and has no employees.

QUARTERLY INFORMATION PER SEGMENT

The result for the comparison year of 2012 has been restated in all tables and in other information contained in this report in response to the amendments to Boliden's accounting principles explained on page 12. See also pages 26-27.

SEK m	4-2011	1-2012	2-2012	3-2012	4-2012	1-2013	2-2013	3-2013
THE GROUP
Revenues	9,716	10,321	10,363	9,123	10,194	9,249	8,035	8,471
Depreciation	481	617	638	703	602	682	723	699
Operating profit ex.
revaluation of process inventory	991	1,258	956	988	839	751	370	603
Operating profit	1,075	1,540	795	1,160	676	695	-59	681
Investments	1,321	1,005	1,118	971	1,474	1,019	1,510	1,151
Capital employed	30,473	29,851	30,324	30,344	31,236	31,769	33,328	33,644
MINES
Revenues	2,426	2,498	2,366	2,543	2,103	2,043	2,163	2,139
Operating expenses	1,485	1,267	1,310	1,163	1,268	1,131	1,342	1,224
Depreciation	267	398	417	489	366	459	498	473
Operating profit	646	842	730	858	545	427	376	372
Investments	802	734	842	798	1 195	802	977	947
Capital employed	14,272	14,694	14,874	15,177	16,125	16,249	16,968	17,475
SMELTERS
Revenues	9,130	10,011	10,020	8,847	9,875	9,073	7,577	8,320
Gross profit ex. revaluation of
process inventory	1,885	1,899	1,869	1,751	1,769	1,832	1,618	1,795
Operating expenses	1,362	1,338	1,411	1,252	1,329	1,321	1,434	1,313
Depreciation Operating profit ex.	214	220	221	214	237	223	225	226
revaluation of process
inventory	326	360	251	281	202	298	-30	262
Operating profit	410	642	89	452	40	242	-459	340
Investments	514	270	274	172	277	213	530	203
Capital employed	16,213	15,524	15,598	15,940	15,569	15,698	15,957	15,781
OTHER/ELIMINATIONS
Revenues	-1,840	-2,188	-2,022	-2,267	-1,784	-1,867	-1,705	-1,988
Depreciation	0	0	0	0	0	0	0	0
Operating profit, internal
profit elimination	2	82	18	-134	144	54	55	-27
Operating profit, other	17	-26	-43	-284	-52	-29	-30	-4
Investments	5	1	2	0	2	4	3	1
Capital employed1)	-12	-366	-149	-773	-458	-178	403	387

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

QUARTERLY PRODUCTION PER UNIT − MINES

	4-2011	1-2012	2-2012	3-2012	4-2012	1-2013	2-2013	3-2013
AITIK
Milled ore, ktonnes	8,334	7,961	9,465	9,022	7,874	8,126	9,628	9,252
Head grades
Copper (%)	0.22	0.22	0.20	0.21	0.23	0.19	0.21	0.22
Gold (g/tonne)	0.13	0.12	0.10	0.11	0.12	0.09	0.11	0.11
Silver (g/tonne)	2.36	2.63	2.36	2.41	2.67	2.41	2.23	2.24
Metal production
Copper, tonnes	15,868	15,787	17,027	17,681	16,613	14,027	18,733	18,537
Gold, kg	542	441	493	515	511	349	499	469
Gold, troy oz.	17,434	14,178	15,838	16,552	16,429	11,233	16,036	15,067
Silver, kg	12,636	12,424	13,742	13,713	11,819	11,109	13,506	14,820
Silver, '000 troy oz.	406	399	442	441	380	357	434	476
THE BOLIDEN AREA
Milled ore, ktonnes	465	465	459	484	455	460	447	461
Of which, smelter slag	51	59	59	65	58	60	62	121
Head grades
Zinc (%)	2.5	2.5	2.3	1.4	2.5	2.4	3.2	2.0
Copper (%)	1.1	0.8	0.9	0.9	0.7	0.7	0.5	0.8
Lead (%)	0.3	0.2	0.3	0.2	0.2	0.2	0.4	0.7
Gold (g/tonne)	0.9	1.4	1.4	1.0	1.3	1.4	1.4	1.6
Silver (g/tonne)	43	39	39	29	34	33	54	32
Metal production
Zinc, tonnes	8,920	8,978	7,949	4,671	8,791	8,436	11,575	5,218
Copper, tonnes	4,159	3,009	2,971	3,331	2,558	2,429	1,537	2,314
Lead, tonnes	392	361	425	264	358	158	534	191
Gold, kg	221	393	387	291	363	320	450	429
Gold, troy oz.	7,105	12,635	12,436	9,359	11,676	10,297	14,467	13,788
Silver, kg	12,985	11,392	11,584	8,868	9,562	8,814	15,845	7,079
Silver, '000 troy oz.	417	366	372	285	307	283	509	228
Tellurium, kg						3,227	6,569	4,366

QUARTERLY PRODUCTION PER UNIT − MINES

	4-2011	1-2012	2-2012	3-2012	4-2012	1-2013	2-2013	3-2013
GARPENBERG
Milled ore, ktonnes	340	358	397	392	336	373	362	383
Head grades
Zinc (%)	5.8	6.0	6.6	5.3	4.4	4.9	5.4	5.6
Copper (%)	0.1	0.1	0.1	0.1	0.1	0.1	0.1	0.1
Lead (%)	2.2	2.2	2.3	2.0	1.6	1.9	2.3	2.3
Gold (g/tonne)	0.3	0.3	0.3	0.2	0.3	0.2	0.3	0.4
Silver (g/tonne)	119	122	129	137	128	153	174	163
Metal production
Zinc, tonnes	17,740	19,148	23,654	18,825	13,166	16,580	17,596	19,233
Copper, tonnes	113	92	132	81	81	133	148	111
Lead, tonnes	6,127	6,469	7,681	6,414	4,320	5,950	6,303	7,124
Gold, kg	65	64	65	55	66	51	76	88
Gold, troy oz.	2,090	2,058	2,084	1,784	2,124	1,628	2,450	2,833
Silver, kg	30,032	31,151	36,479	37,083	30,302	38,793	45,906	44,992
Silver, '000 troy oz.	966	1,002	1,173	1,192	974	1,247	1,476	1,446
TARA
Milled ore, ktonnes	585	677	648	611	565	587	624	617
Head grades
Zinc (%)	6.8	7.2	7.2	7.5	6.1	7.3	7.2	6.6
Lead (%)	1.3	1.4	1.5	1.6	1.2	1.5	1.5	1.4
Metal production
Zinc, tonnes	37,574	45,664	44,358	43,239	32,760	40,460	42,387	38,594
Lead, tonnes	4,550	5,799	5,825	6,459	4,434	5,416	5,299	4,858
Silver, kg*	180	421	503	463	286	292	276	270
Silver, '000 troy oz.*	6	14	16	15	9	9	9	9

*Silver production at Tara is not payable.

QUARTERLY PRODUCTION PER UNIT − SMELTERS

	4-2011	1-2012	2-2012	3-2012	4-2012	1-2013	2-2013	3-2013
RÖNNSKÄR
Smelted material, tonnes
Copper
Copper concentrate	166,719	161,356	156,632	145,889	159,799	156,152	129,013	158,724
Secondary raw materials	47,938	47,081	60,517	54,030	59,061	54,743	42,901	58,722
Of which, electronics	19,697	18,864	32,381	26,479	30,499	26,359	27,139	29,603
Copper, total	214,657	208,437	217,149	199,919	218,860	210,895	171,914	217,446
Lead
Lead concentrate	0	11,380	2,347	9,734	3,616	11,479	8,084	9,332
Secondary raw materials	890	898	1,186	42	199	479	57	48
Lead, total	890	12,278	3,533	9,776	3,815	11,958	8,141	9,380
Production
Cathode copper, tonnes	57,655	53,963	53,982	49,085	57,020	53,217	41,752	54,272
Lead, tonnes	2,182	5,498	3,461	3,431	6,580	6,261	5,836	4,747
Zinc clinker, tonnes	9,895	9,904	8,553	8,995	8,830	9,560	6,673	9,324
Gold, kg	2,600	2,975	3,751	3,014	2,793	3,217	2,481	3,434
Gold, troy oz.	83,590	95,646	120,595	96,901	89,779	103,416	79,765	110,406
Silver, kg	97,536	119,879	117,052	88,733	122,095	99,086	85,742	138,423
Silver, '000 troy oz.	3,136	3,854	3,763	2,853	3,925	3,186	2,757	4,450
Sulphuric acid, tonnes	149,618	156,210	137,918	119,844	139,033	136,105	115,563	135,344
BERGSÖE
Smelted material, tonnes
Battery raw materials	16,914	16,183	16,806	11,214	17,885	17,265	15,848	11,456
Production, tonnes
Lead alloys	11,738	10,939	11,410	7,831	12,378	12,409	11,329	8,156

QUARTERLY PRODUCTION PER UNIT − SMELTERS

	4-2011	1-2012	2-2012	3-2012	4-2012	1-2013	2-2013	3-2013
HARJAVALTA
Smelted material, tonnes
Copper
Copper concentrate	114,008	124,877	113,228	134,617	143,305	124,083	72,224	139,126
Secondary raw materials	3,262	3,284	3,217	5,490	4,388	3,330	6,672	9,179
Copper, total	117,270	128,161	116,445	140,107	147,693	127,413	78,896	148,305
Nickel concentrate	68,509	69,140	48,139	67,398	63,032	56,729	59,553	71,135
Production
Cathode copper, tonnes	29,956	30,553	27,808	32,856	33,309	29,075	22,157	33,286
Gold, kg	570	894	789	1,003	957	977	983	721
Gold, troy oz.	18,326	28,740	25,366	32,247	30,768	31,416	31,604	23,166
Silver, kg	22,063	30,980	31,500	35,440	30,280	23,430	26,380	22,000
Silver, '000 troy oz.	709	996	1,013	1,139	974	753	848	707
Sulphuric acid, tonnes	153,128	165,913	136,133	167,915	169,318	152,827	104,119	176,042
KOKKOLA
Smelted material, tonnes
Zinc concentrate	145,210	150,280	135,466	155,975	147,540	146,437	148,936	158,394
Production, tonnes
Zinc	75,072	80,169	76,526	76,799	81,268	77,151	76,458	77,535
Sulphuric acid	75,170	80,417	67,628	86,242	78,934	76,721	74,494	84,289
ODDA
Smelted material, tonnes
Zinc concentrate, incl.
zinc clinker	72,219	71,514	74,519	74,629	58,827	71,297	53,789	69,144
Production, tonnes
Zinc	39,165	38,176	39,649	39,993	34,829	37,005	29,438	37,635
Aluminium fluoride	10,704	10,016	10,507	6,155	9,030	8,866	8,305	6,375
Sulphuric acid	33,475	30,572	32,674	33,008	31,917	31,662	22,870	31,898

CONSOLIDATED QUARTERLY DATA

	4-2011	1-2012	2-2012	3-2012	4-2012	1-2013	2-2013	3-2013
Financial performance, the Group
Revenues, SEK m	9,716	10,321	10,363	9,123	10,194	9,249	8,035	8,471
Operating profit before
depreciation (EBITDA), SEK m	1,552	2,157	1,433	1,862	1,279	1,377	664	1,380
Operating profit ex. revaluation
of process inventory, SEK m	991	1,258	956	988	839	751	370	603
Operating profit (EBIT)	1,075	1,540	795	1,160	676	695	-59	681
Profit after financial items, SEK m	1,045	1,502	738	1,116	636	648	-116	629
Net profit, SEK m	787	1,117	533	827	863	508	-100	498
Earnings per share, SEK	2.88	4.08	1.95	3.02	3.15	1.86	-0.37	1.81
Free cash flow1), SEK m	-482	888	79	310	110	-220	-1,477	436
Net debt/equity ratio2), %	32	27	32	29	28	27	41	38
Metal production, Mines3)
Zinc, tonnes	64,234	73,790	75,960	66,735	54,717	65,476	71,558	63,045
Copper, tonnes	20,140	18,888	20,130	21,093	19,252	16,590	20,417	20,963
Lead, tonnes	11,070	12,629	13,931	13,137	9,112	11,524	12,136	12,173
Gold, kg	828	898	944	861	940	720	1,025	986
Gold, troy oz.	26,625	28,868	30,358	27,695	30,229	23,158	32,953	31,688
Silver, kg4)	55,833	55,388	62,307	60,127	51,969	59,008	75,533	67,162
Silver, '000 troy oz.4)	1,795	1,781	2,003	1,933	1,671	1,897	2,428	2,159
Metal production, Smelters
Zinc, tonnes	114,237	118,345	116,175	116,772	116,097	114,156	105,896	115,170
Copper, tonnes	87,611	84,516	81,790	81,941	90,329	82,292	63,909	87,558
Lead, tonnes	2,182	5,498	3,461	3,431	6,580	6,261	5,836	4,747
Lead alloys, tonnes (Bergsöe)	11,738	10,939	11,410	7,831	12,378	12,409	11,329	8,156
Gold, kg	3,170	3,869	4,540	4,017	3,749	4,194	3,463	4,155
Gold, troy oz.	101,907	124,391	145,945	129,135	120,540	134,826	111,340	133,568
Silver, kg	119,599	150,859	148,552	124,173	152,375	122,516	112,122	160,423
Silver, '000 troy oz.	3,845	4,850	4,776	3,992	4,899	3,939	3,605	5,158
Sulphuric acid, tonnes	411,391	433,112	374,353	407,009	419,202	397,315	317,046	427,573
Aluminium fluoride, tonnes	10,704	10,016	10,507	6,155	9,030	8,866	8,305	6,375
Metal prices, average per quarter
Zinc, USD/tonne	1,897	2,025	1,928	1,885	1,947	2,033	1,840	1,859
Copper, USD/tonne	7,489	8,310	7,869	7,706	7,909	7,931	7,148	7,073
Lead, USD/tonne	1,983	2,093	1,974	1,975	2,199	2,301	2,053	2,102
Gold, USD/troy oz.	1,687	1,691	1,609	1,651	1,721	1,633	1,416	1,325
Silver, USD/troy oz.	31.87	32.63	29.38	29.80	32.68	30.11	23.14	21.32
Exchange rates, average per quarter
USD/SEK	6.75	6.75	6.95	6.76	6.66	6.43	6.56	6.55
EUR/USD	1.35	1.31	1.28	1.25	1.30	1.32	1.31	1.32
EUR/SEK	9.09	8.85	8.91	8.44	8.63	8.50	8.56	8.68
USD/NOK	5.76	5.78	5.89	5.91	5.69	5.62	5.83	5.99

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 page 23 for details of Tara's production.

RESTATEMENT OF 2012 COMPARISON YEAR

		Jan-Dec 2012	Change/quarter
	Previously
Income Statement, SEK m	reported	Change	Restated	1-2012	2-2012	3-2012	4-2012
Operating expenses	-36,008	100	-35,908
of which Personnel costs	-3,482	60	-3,422	28	28	5	-1
of which Other operating expenses	-30,308	383	-29,926	88	89	97	108
of which Depreciation	-2,218	-343	-2,560	-75	-92	-89	-87
Operating profit	4,071	100	4,171	41	25	13	21
Financial items	-179	-	-179	-2	-2	-2	6
Tax	-618	-34	-652	-10	-6	-3	-15
Net profit	3,274	66	3,341	29	17	9	12
Earnings per share	11.96	0.24	12.21	0.11	0.06	0.03	0.04

		Jan-Dec 2012		Change/quarter
Other comprehensive income, SEK	Previously
m	reported	Change	Restated	1-2012	2-2012	3-2012	4-2012
Profit for the period	3,274	66	3,341	29	17	9	12
Revaluation of defined benefit
pension plans	-	-126	-126	-55	-56	27	-42
Tax attributable to items not
reclassified to the Income Statement	-	29	29	14	14	-9	9
Items reclassified to the Income
Statement	-	10		2	3	11	-6
Comprehensive income for the
period	3,011	-21	2,990	-10	-22	38	-27

		Jan-Dec 2012		Change/quarter
	Previously
Consolidated key ratios	reported	Change	Restated	1-2012	2-2012	3-2012	4-2012
Return on capital employed, %	13	0	14	-	-	-	-
Return on shareholders' equity, %	15	1	16	-	-	-	-
Equity/assets ratio, %, CB	57	-0	56	-0	-0	-0	-0
Net debt/equity ratio, %, CB	25	3	28	3	4	3	3
Net debt, SEK m, CB	5,673	603	6,276	571	597	563	603
Investments	4,185	383	4,568	88	89	97	108

		31-12-2012		Change at period-end
	Previously
Balance Sheet, SEK m	reported	Change	Restated	1-2012	2-2012	3-2012	4-2012
Total deferred mining costs	4,770	-141	4,627	-169	-171	-163	-141
Deferred tax	61	187	247	181	188	193	187
Total assets	40,035	45	40,080	2	6	29	45
Shareholders' equity	22,949	-595	22,354	-584	-606	-568	-595
Pension provisions	707	603	1,310	571	597	563	603
Other provisions, special payroll tax	28	44	72	37	38	39	44
Deferred tax provisions	2,766	-6	2,760	-23	-23	-4	-6
Total liabilities and shareholders'
equity	40,035	45	40,080	2	6	29	45

	31-12-2012			Change at period-end
	Previously
Shareholders' equity, SEK m	reported	Change	Restated	1-2012	2-2012	3-2012	4-2012
Change in accounting principles -
IFRIC 20	-	-103	-103	-124	-126	-120	-103
Change in accounting principles -
IAS 19	-	-492	-492	-460	-480	-448	-492
Total shareholders' equity	22,949	-595	22,354	-584	-606	-568	-595

RESTATEMENT OF 2012 COMPARISON YEAR

Mines

		Restated quarter			Previously reported quarter
SEK m	1-2012	2-2012	3-2012	4-2012	1-2012	2-2012	3-2012	4-2012
Revenues	2,498	2,366	2,543	2,103	2,498	2,366	2,543	2,103
Operating expenses	1,267	1,310	1,163	1,268	1,362	1,405	1,267	1,383
Depreciation	398	417	489	366	322	325	400	279
Operating profit	842	730	858	545	822	726	842	517
Investments	734	842	798	1,195	645	753	701	1,087
Capital employed	14,694	14,874	15,177	16,125	14,863	15,046	15,341	16,267

Smelters

		Restated quarter			Previously reported quarter
SEK m	1-2012	2-2012	3-2012	4-2012	1-2012	2-2012	3-2012	4-2012
Revenues Gross profit ex. revaluation	10,011	10,020	8,847	9,875	10,011	10,020	8,847	9,875
of process inventory	1,899	1,869	1,751	1,769	1,899	1,869	1,751	1,769
Operating expenses	1,338	1,411	1,252	1,329	1,349	1,423	1,240	1,340
Depreciation Operating profit ex. revaluation of process	220	221	214	237	220	221	214	237
inventory	360	251	281	202	349	240	292	191
Operating profit	642	89	452	40	631	78	464	28
Investments	270	274	172	277	270	274	172	277
Capital employed	15,524	15,598	15,940	15,569	15,534	15,609	15,940	15,569