Boliden — Interim / Quarterly Report 2017

Jul 20, 2017

		Quarter		12 months Full year Six months
SEK m		2-2017 2-2016 1-2017		2017	2016	Jul-Jun	2016
Revenues	11.554	9.596	12.730	24.284	18.446	46.155	40.316
Operating profit ex. revaluation of process inventory	2,196	901	2,061	4.258	1.670	7.682	5,094
Operating profit	1,916	912	2,149	4.065	1,800	7,947	5,682
Profit after financial items	1.843	817	2.075	3.917	1.653	7.639	5.375
Net profit	1.461	619	1.669	3,129	1.276	6.093	4,239
Earnings per share, SEK	5.34	2.26	6.10	11.44	4.66	22.27	15.49
Free cash flow	2.152	$-4,794$	1.060	3.212	-4.584	4.996	$-2,801$
Net debt	7.773	11,190	8.438	7.773	11.190	7.773	9.339
Return on capital employed, %						18.8	14.6
Return on equity, %					$\qquad \qquad \blacksquare$	20.9	15.7
Net debt/equity ratio, %	25	43	27	25	43	25	32

• The operating profit, excluding revaluation of process inventory, increased to SEK 2,196 m (901) due to improved metal prices and high mined production.
• Maintenance shutdowns at the smelters were charged to the profit of SEK 260 m (210) and items affecting comparability impacted the profit with SEK 0 m (209).
• The free cash flow totalled SEK 2,152 m (-4,794). The acquisition of the Kevitsa mine affected the cash flow during the second quarter 2016 with slightly below SEK 6 billion.
• The net debt/equity ratio decreased during the quarter from 27% to 25%. The dividend paid during the quarter totalled SEK 1,436 m.

Revenues increased to SEK 11,554 m (9,596), primarily due to improvements in metal prices. Market terms deteriorated in comparison with the previous quarter.

	Quarter
SEK m	2-2017	2-2016	1-2017
Operating profit	1.916	912	2.149
Revaluation of process inventory	$-280$	11	87
Operating profit ex. revaluation of process inventory	2.196	901	2,061
Operating profit ex. revaluation of process inventory - pro forma (incl. Kevitsa)	2,196	884	2,061
Change		1,312	135
Analysis of change
Volumes		603	787
Prices and terms		1,105	$-483$
Metal prices and terms		746	$-362$
By-products, prices and terms		16	12
Realized metal and currency hedge		$-4$	0
TC/RC terms		53	-9
Metal premiums		2	11
Exchange rate effects		291	$-135$
Costs (local currencies)		$-104$	$-145$
Depreciation		-99	-43
Items affecting comparability		$-209$
Other		17	19
Change		1,312	135

Improved metal prices and high mined production, particularly at Aitik and Kevitsa, resulted in the operating profit, excluding revaluation of process inventory, more than doubling year on year. Smelters' production levels were generally good, despite comprehensive maintenance shutdowns that resulted in SEK 260 m (210) being charged to the profit. Costs increased because of additional maintenance shutdowns, but also due to higher mined production that also increased depreciation. The profit was impacted last year by items affecting comparability, collectively totalling SEK 209 m. 1

The operating profit, excluding revaluation of process inventory, increased from the previous quarter's levels due to higher mined production, primarily at Aitik and in the Boliden Area. Lower metal prices and planned maintenance shutdowns at the smelters had a negative effect on the profit.

The operating profit in the second quarter for the Kevitsa copper and nickel mine, which was acquired on 1 June 2016, totalled SEK 118 m, in comparison with SEK -28 m last year and SEK 208 m in the previous quarter. The price of nickel continued to be very low relative to the mining industry's cost level.

		Quarter		Six months
SEK m	2-2017	2-2016	1-2017	2017	2016
Mines	1,555	621	1,525	3,080	864
Smelters	563	397	835	1,398	1.052
Other/eliminations	78	$-117$	-299	-221	$-246$
The Group	2,196	901	2,061	4,258	1,670

¹ For further information, see page 6. The profit after financial items was SEK 1,843 m (817), and the net profit was SEK 1,461 m (619), corresponding to earnings per share of SEK 5.34 (2.26). The return on capital employed and equity for the last 12 months were 18.8% and 20.9%, respectively.

Investments for the quarter totalled SEK 1,385 m (956), and SEK 2,481 m (1,755) for the first six months of the year. The investment plan for 2017 is just under SEK 6 billion.

		Quarter		Six months		12 months	Full year
SEK m	2-2017	2-2016	1-2017	2017	2016	Jul-Jun	2016
Cash flow from operating activities before change in
working capital	2,994	1.256	2.601	5,595	2.714	10,798	7.918
Change in working capital	541	837	$-610$	$-69$	388	$-1.379$	-923
Cash flow from operating
activities	3,535	2.093	1,991	5,526	3,102	9,419	6,995
Cash flow from investment activities	$-1.383$	$-6.887$	$-931$	$-2.313$	$-7.686$	$-4.423$	$-9.795$
Free cash flow	2,152	$-4.794$	1,060	3,212	-4,584	4,996	$-2,801$

The free cash flow was strong in the second quarter. The quarter on quarter increase was due to increased profits and lower levels of working capital tied up, primarily in the form of lower stock levels and trade and other receivables. The acquisition of the Kevitsa mine affected the cash flow during the second quarter 2016 with slightly below SEK 6 billion.

Net financial items during the quarter totalled SEK -74 m (-95). The average interest level on loans was 1.3% (1.2).

Boliden's net debt at the end of the quarter was SEK 7,773 m (11,190), and the net debt/equity ratio was 25% (43). The dividend paid during the quarter totalled SEK 1,436 m (889). The average term of total approved loan facilities at the period end was 2.9 years (3.6) and the fixed interest term of utilised loans was 0.5 years (0.4). At the end of the quarter, Boliden's current liquidity, in the form of cash and cash equivalents and unutilised binding credit facilities with a term of more than 1 year, totalled SEK 7,155 m (5,118).

The global industrial production growth rate was on a par with levels in the first quarter. Lower growth in China and in mature economies was compensated for by higher growth in several emerging economies. Activity levels in the European construction market, which is an important market for Boliden, increased, albeit with substantial variations from one country to another.

The prices for zinc, nickel and lead fell by just over 10% between the beginning of the quarter and mid-June. The price of copper did, however, outperform the prices of other base metals. Subsequently, prices increased anew and by the end of the quarter, they had reached levels close to those seen at the beginning of the quarter, with the exception of nickel. The nickel price was negatively affected by political decisions in Indonesia and the Philippines that will probably result in an increase in supplies over previously anticipated levels. The price of gold remained stable, but surpluses resulted in the silver price coming under pressure.

		Quarter	Six months
	2-2017	2-2016	1-2017	2017	2016
Zinc. USD/tonnes	2.596	1.918	2.780	2.690	1.799
Copper, USD/tonnes	5,662	4.729	5,831	5.749	4.701
Nickel, USD/tonnes	9,225	8,823	10.271	9.761	8.662
Lead, USD/tonnes	2.161	1.719	2.278	2.221	1.731
Gold, USD/troz	1,257	1.258	1.219	1.238	1,220
Silver, USD/troz	17.2	16.8	17.4	17.3	15.8
USD/SEK	8.80	8.21	8.92	8.86	8.33
EUR/SEK	9.69	9.28	9.51	9.59	9.30

Metal demand increased compared with levels in the second quarter of last year, but grew more slowly than in the previous quarter. Demand increased in China and remained unchanged elsewhere in the world.

Global mined production increased year on year. Production was lower than normal in India and Peru in the second quarter of last year, but this year has seen substantial increases in production in both countries. Smelter production in China has been cut back during the first six month of the year due to poor profitability, environmental concerns, and meteorological conditions. There was a shortage of concentrate during the first quarter, but lower levels of smelter production and increases in mined production during the second quarter resulted in a balance between supply and demand, and China's spot market treatment charges saw a further slight rise from a low starting level. Global smelter production fell short of demand, and metal stocks decreased.

The availability of zinc metal for rapid delivery continued to be good in Europe and spot market metal premiums remained largely unchanged.

Disruptions at several large mines resulted in metal production not increasing at the same rate as metal demand, and the market's metal stock levels declined.

Levels of growth in metal demand were high in China, while demand declined slightly elsewhere in the world. The concentrate market was viewed to be in balance during the second quarter and spot market treatment charges rose slightly but are still below those in the yearly contracts.

European spot market premiums remained unchanged at low levels. Spot market metal volumes are small, in that metal consumers have agreed contracts for a substantial percentage of their metal requirement. The availability of scrap increased and is able, in part, to make up for the shortage in concentrate and primary production.

24,000
20.000
16.000
12.000
8.000
4.000
Π
	\$\$\$\$\$\$\$<br>\$\$\$\$\$\$\$

² Data in the Market performance section was supplied by CRU Ltd and Wood Mackenzie in June and July 2017.

Nickel supply levels are expected to increase as a result of political decisions in the Philippines and Indonesia. The Philippine government's decision to close substantial amounts of mine capacity for environmental reasons has been appealed and it remains unclear whether production levels will be maintained during the appeal process. The Indonesian government has decided to ease the export restrictions on nickel-bearing ore that were introduced in 2014, but there is uncertainty regarding the sale of future exports. Ore from both countries is used in the production of nickel pig iron that is refined to produce low grade stainless steel in China.

Global demand for nickel fell slightly compared with levels in the second quarter of last year. After an extended period of strong production growth for stainless steel in both China and other countries, stainless steel stock levels in China had increased to higher levels than normal, and China's steel companies consequently cut back production during the second quarter by 7% from levels in the second quarter of last year. Globally, production declined by 2%.

Global production of nickel was exceeded by demand and the market's stock levels declined. Stock levels are, however, still high.

Mined silver production depends, to some extent, on production by zinc and lead mines, where silver is a common by-product metal. Gold is produced by both gold mines and as a by-product metal in copper and nickel mines. Mines produce palladium and platinum as both primary metals and by-product metals. Much of the aggregate precious metals supply comes from recycling and flows from financial operators and central banks. Demand is determined, primarily, by banks' investments, industrial demand, and the jewellery industry.

Precious metals are often bought and sold by financial operators in order to alter risk levels in financial portfolios, and are normally regarded as safer investments in times of geopolitical turmoil and uncertainty with regard to the business cycle.

Interest in gold amongst financial operators increased at the beginning of the quarter, but weakened towards the end of the quarter. The supply of silver has exceeded demand for several years now, but the surplus has been bought up by financial operators. The price of silver came under pressure during the second quarter due to declining interest in buying the metal on the part of financial operators.

Boliden comprises six mining areas: Aitik, the Boliden Area, Garpenberg, Kevitsa, Kylylahti and Tara. The Business Area includes production, exploration, technological development, environmental technology, and mined concentrate sales. The majority of Mines' sales are made to the Group's smelters on market terms.

• High production due to high grades
• Continued high operating profit
• Higher costs, primarily volume-related

		Quarter		Six months
SEK m	2-2017	2-2016	1-2017	2017	2016
Revenues	4,415	2.678	4.315	8.729	5.013
Gross profit	4.463	2,893	4.273	8.736	5,281
Operating expenses	2.033	1.497	1.928	3,961	2,984
Depreciation	872	775	820	1,692	1,433
Operating profit	1,555	621	1.525	3,080	864
Investments	889	572	755	1,643	1,084
Acquisitions	$\sim$	5,979	۰		5,979
Capital employed	25,375	24,700	25,208	25,375	24,700

	Quarter
SEK m	2-2017	2-2016	1-2017
Operating profit	1,555	621	1,525
Operating profit - pro forma (incl. Kevitsa)	1,555	604	1,525
Change		951	30
Analysis of change
Volumes		544	616
Prices and terms		754	$-449$
Metal prices and terms		550	$-405$
Realized metal and currency hedge		$-4$	$\Omega$
TC/RC terms		70	93
Exchange rate effects		138	$-137$
Costs (local currencies)		-54	-92
Depreciation		-88	$-47$
Items affecting comparability		$-209$
Other		4	3
Change		951	30

The operating profit improved significantly to SEK 1,555 m (604), in what was a record for a single quarter. Kevitsa, which was acquired on 1 June 2016, was included for the entire comparison period. Record-high production levels at Aitik had a positive effect on the profit. The improvement in the profit was further boosted by higher production levels at Kevitsa and improvements in market terms, primarily in the form of higher metal prices, but also in the form of new treatment charge terms from the turn of the year. The higher level of mined production resulted in increases in both costs and depreciation. Depreciation also increased due to Kevitsa's depreciation in the second quarter of 2016 being lower than normal. The profit was impacted last year by items affecting comparability comprising the conversion of Tara's defined benefit pension plan into a defined contribution plan (SEK 248 m) and acquisition costs in connection with Kevitsa (SEK -39 m).

The operating profit was on a par with the profit for the previous quarter. Increased production, primarily at Aitik and in the Boliden Area, compensated for lower metal prices in SEK. Treatment charges improved due to changes in the sales mix and adjustments for final lead treatment charge terms

for 2017. The increase in production also resulted in higher costs. Depreciation increased primarily as a result of the substantially higher level of production at Aitik.

The operating profit for Kevitsa in the second quarter totalled SEK 118 m in comparison with SEK -28 m last year and SEK 208 m in the previous quarter. Kevitsa's depreciation in the second quarter totalled SEK 138 m in comparison with SEK 52 m last year and SEK 139 m in the previous quarter.

			Quarter		Six months
	2-2017	2-2016	℅	1-2017	%	2017	2016	%
Zinc, tonnes	80.421	84.719	-5	77.139	4	157,560	165.569	-5
Copper, tonnes	38,229	24,028	59	29,650	29	67,879	44,912	51
Nickel, tonnes	3.519	960	٠	3,340	5	6,859	960	$\bar{a}$
Lead, tonnes	15,066	15,748	$-4$	14,868	1	29,934	31,559	$-5$
Gold, kg	1.856	1.303	43	1.702	9	3.559	2.698	32
Silver, kg	111,197	116,873	-5	104,450	6	215,647	220,184	-2
Tellurium, kg	7,186	10,219	-30	11,251	$-36$	18,437	20,350	-9

Aitik's copper grade of 0.29% (0.22) was high and the milled volume was at record high of 10.4 (8.8) Mtonnes. Increased maintenance activities have resulted in improved availability, although availability can be expected to continue to vary significantly until a new crusher station comes in operation in a year's time. One of the three crusher stations has been down for repairs during the majority of July. Crusher availability impacts decisions on areas to mine. The mine plan for the latter half of 2017 entails mining in areas that are similar to the ones in the second quarter. The mine plan for 2017-2019 entails mining in areas with an average copper grade of 0.25%.

The Boliden Area's milled volume continued to be high and this, coupled with a very favourable ore mix that yielded high grades, resulted in strong levels of metal production. The rock stability problems at the Kristineberg mine continue, but improved slightly during the quarter. An eight-day production shutdown will be carried out in the concentrator during the third quarter.

Garpenberg posted a strong quarter partly due to less maintenance work than usual. Both milled volume and zinc production were high and on a par with last year. High stability in the concentrator resulted in high zinc recovery level. The mine plan for 2017 will entail mining in areas with a zinc grade of 4.5% and a silver grade of 120 g/tonne.

Kevitsa's milled volume continued to be high. Production increased in comparison with the previous quarter for the majority of metals due to higher grades and improved recovery levels, as a result of improved process stability in the concentrator.

Milled volume at Kylylahti remained stable. Higher grades resulted in an increase in metal production in comparison with the previous quarter, as did improved recovery levels for zinc and gold.

Tara's production was negatively affected both by a five-day sit-in and problems with rock stability that required additional reinforcements limiting both ore production and development work.

Boliden has five smelters: the Kokkola and Odda zinc smelters, the Rönnskär copper and lead smelter, the Harjavalta copper and nickel smelter, and the Bergsöe lead smelter. In addition to metal production, the Business Area includes the recycling of electronic scrap, purchases of mined concentrate, and sales of metals and by-products.

• Comprehensive maintenance shutdowns according to plan
• Market terms deteriorated in comparison with the previous quarter

	Quarter				Six months
SEK m	2-2017	2-2016	1-2017	2017	2016
Revenues	10.893	9.147	12.361	23.254	17.829
Gross profit ex. revaluation of process inventory	2.389	2.098	2.577	4.966	4.339
Operating expenses	1,583	1.465	1.478	3,061	2,822
Depreciation	269	252	272	542	495
Operating profit ex. revaluation of process
					1,052
Operating profit	283	408	922	1.205	1.182
Investments	495	384	341	836	671
Capital employed	17,673	16,249	18,568	17,673	16,249
inventory	563	397	835	1,398

	Quarter
SEK m	2-2017	2-2016	1-2017
Operating profit	283	408	922
Revaluation of process inventory	$-280$	11	87
Operating profit ex. revaluation of process inventory	563	397	835
Change		166	$-272$
Analysis of change
Volumes		60	-9
Prices and terms		188	$-185$
Metal prices and terms		153	$-48$
By-products, prices and terms		16	12
TC/RC terms		$-18$	$-102$
Metal premiums		2	11
Exchange rate effects		35	$-58$
Costs (local currencies)		-80	-99
Depreciation		$-11$	4
Items affecting comparability
Other		9	17
Change		166	-272

Smelters' operating profit, excluding revaluation of process inventory, increased to SEK 563 m (397) due to improvements in market terms, primarily in the form of higher metal prices. Planned maintenance shutdowns were carried out during the quarter, resulting in SEK 260 m (210) being charged to the profit. The shutdowns resulted in an increase in costs. The throughput of raw materials was however good and made a positive contribution to the profit. The positive volume effect was also attributable to reductions in the volume of finished metal stocks.

The major maintenance shutdowns notwithstanding, the fall in volume from last quarter's levels was moderate, due to higher volumes at the zinc smelters and reductions in finished metal stock levels. 2017's poorer treatment charge terms, particularly for zinc, achieved their full impact during the quarter and this, coupled with lower metal prices in SEK, also contributed to the fall in profits from the previous quarter.

			Quarter				Six months
	2-2017	2-2016	%	1-2017	℅	2017	2016	℅
Zinc, tonnes	115,468	112.815	2	115,248	1	230,716	230,415	O
Copper, tonnes	87,430	78,988	11	88,708	$-1$	176,138	164,274	7
Lead, tonnes	7.561	6,663	13	6,049	25	13,610	13,723	$-1$
Lead alloys, tonnes (Bergsöe)	12,953	11.895	9	14,061	-8	27.014	24,237	11
Nickel in matte, tonnes	4.038	6.671	-39	7.579	$-47$	11,618	15,464	$-25$
Gold, kg	4.150	5.066	$-18$	4.902	$-15$	9.052	9.565	-5
Silver, kg	133,960	151.740	$-12$	143,764	$-7$	277.724	310.451	$-11$
Sulphuric acid, tonnes	369,168	359,791	З	423,535	-13	792,703	791,605	O
Aluminium fluoride, tonnes		10.188	$-100$				19,157	$-100$

Rönnskär's processes were generally stable. The reduction in the feed and metal production from the previous quarter were attributable to a planned maintenance shutdown. Changes in the raw material mix also resulted in a fall in precious metal production.

Harjavalta's processes were stable. The year's planned maintenance shutdown, which was more comprehensive than last year's, resulted in a reduction in feed as well as production of nickel matte. Copper production increased, however, as a planned stockpiling of anode levels enabled cathode production to continue during the shutdown. Precious metal production was lower due to changes in the raw material mix.

Kokkola's production continues to be limited by process disruptions in the form of impurities in the cell house, resulting in deteriorations in both quality and recovery levels. Measures to improve the zinc recovery level are ongoing and are not expected to be completed until the latter part of the year. The disruptions also affect the silver process, and production of silver in concentrate has consequently fallen. Zinc production was, however, stable, due the build-up of intermediate stocks ahead of the planned maintenance shutdown carried out during the quarter.

Odda's process of ramping up to 200 ktonnes/year continued and this production level was achieved from May. The unplanned stoppage that occurred towards the end of the first quarter did, however, result in reduced zinc production in April.

Bergsöe's feed and production of lead alloys continued at high levels, albeit lower than the record highs achieved during the previous quarter.

Maintenance shutdowns were carried out at Rönnskär, Harjavalta and Kokkola during the quarter, and were, collectively, charged to the profit to the tune of SEK 260 m (210), which was according to plan.

Maintenance shutdowns are planned at Rönnskär, Odda and Bergsöe during the third quarter and are expected to be charged to the operating profit in the sum of SEK 50 m (50). The impact on the profit of maintenance shutdowns in the fourth quarter is estimated at SEK 135 m (0).

Sales during the first six months of the year totalled SEK 24,284 m (18,446), with the increase primarily attributable to higher metal prices.

The operating profit, excluding revaluation of process inventory and adjusted for the acquisition of Kevitsa, increased sharply to SEK 4,258 m (1,520). The increase is attributable to higher production levels and improved metal prices. The higher levels of mined production means increased costs and depreciation. A provision of SEK 87 m was also made last year for the reclamation of decommissioned mines. Planned maintenance shutdowns in Smelters were charged to the profit in the sum of SEK 260 m (210). Process disruptions at the zinc smelters, primarily at the beginning of the period, also resulted in increased costs. The previous year included items affecting comparability totalling SEK 209 m.

	Six months
SEK m	2017	2016
Operating profit	4,065	1,800
Revaluation of process inventory	$-193$	130
Operating profit ex. revaluation of process inventory	4,258	1,670
Operating profit ex. revaluation of process inventory - pro forma	4,258	1,520
Change		2,738
Analysis of change
Volumes		732
Prices and terms		2,767
Metal prices and terms		2,005
By-products, prices and terms		13
Realised metal price and currency hedging		$-10$
TC/RC terms		114
Metal premiums		$-20$
Exchange rate effects		666
Costs (local currencies)		$-338$
Depreciation		$-224$
Items affecting comparability		$-209$
Other		8
Change		2.738

Net financial items totalled SEK -148 m (-147) and the net profit was SEK 3,129 m (1,276). The earnings per share were SEK 11.44 (4.66).

Investments during the first six months of the year totalled SEK 2,481 m (1,755). In addition to previous year's investments, the consideration for Kevitsa totalled SEK 5,979 m.

₂

The average number of Boliden employees (full-time equivalents) during the first half of the year was 5,765 (5,792). The accident frequency for Boliden's own employees and contractors during the second quarter was 4.9 (6.1).

Discharges of metals to water fell, year on year, largely due to new treatment techniques for granulation water at Rönnskär. The year on year increase in emissions of metals to air was due to problems with filters at Harjavalta and Rönnskär. The filters at Harjavalta were repaired, resulting in a reduction in emissions at the end of the quarter. The filters at Rönnskär will be repaired during the autumn.

A serious environmental incident occurred at Aitik when an archaeological site protected by the Cultural Environment Act, was damaged. The locations of archaeological sites have subsequently been more clearly marked in the field.

₂

¹ An incident that causes, or could potentially cause, a significant environmental impact and/or result in licensed limit values being exceeded. The key ratio was previously referred to as "environmental accidents", but is now known as "environmental incidents".

The Parent Company, Boliden AB, conducts no operations and has no employees. The Income Statements and Balance Sheets for the Parent Company are presented on page 19.

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 54-57 of Boliden's 2016 Annual Report.

The Consolidated Accounts have 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 IFRS standards, pursuant to the provisions of the Swedish Annual Accounts Act. This Interim Report for the Group has been prepared 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. The accounting principles and calculation methods have remained unchanged from those applied in the 2016 Annual Report.

Boliden presents certain financial metrics in the Interim Report that are not defined in accordance with IFRS, and is of the opinion that these metrics provide valuable complementary information in that they enable a clearer evaluation of the company's performance. Not all companies calculate financial metrics in the same way, so the metrics used by Boliden are not always comparable with those used by other companies, and these metrics should, therefore, not be regarded as a replacement for metrics defined in accordance with IFRS.

The following metrics are not defined in IFRS and are, instead, calculated in accordance with the definitions presented on page 117 of the 2016 Annual Report: Operating profit (EBIT) excluding revaluation of process inventory, Operating profit (EBIT), Free cash flow, Net debt, Return on capital employed, Return on Equity, Net debt/Equity ratio, and Equity/Assets ratio.

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

Stockholm, 20 July 2017

Anders Ullberg Chairman of the Board

Marie Berglund Member of the Board

Michael G:son Löw Member of the Board Member of the Board

Tom Erixon

Elisabeth Nilsson Member of the Board

Pekka Vauramo Member of the Board

Peter Baltzari Member of the Board, Employee representative

Marie Holmberg Member of the Board, Employee representative

Pia Rudengren Member of the Board

Lennart Evrell Member of the Board President & CEO

Kenneth Ståhl Member of the Board, Employee representative

We have reviewed the interim report for Boliden AB (publ) for the period January 1 - June 30, 2017. The Board of Directors and the President are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is substantially less in scope than an audit conducted in accordance with ISA and other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit.

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not, in all material respects, prepared for the Group in accordance with IAS 34 and the Annual Accounts Act, and for the Parent Company in accordance with the Annual Accounts Act.

Stockholm, July 20, 2017

Deloitte AB

Jan Berntsson

Authorized Public Accountant

Financial calendar

24 October 2017

The Interim Report for the third quarter of 2017

21-22 November 2017 14 February 2018

The fourth quarter and Year-End Report for 2017

Presentation of the report

Capital Markets Day

The Interim Report will be presented via a webcast/conference call

Thursday, 20 July at 09:00 (CET) Time:

The webcast will be broadcast online via www.boliden.com

To participate in the conference call, please call one of the following numbers 3-5 minutes before the conference starts.

Tel. no. from Sweden: Tel. no. from the UK: Tel. no. from the USA:

+46 8 5199 9355 +44 20 319 40550 +1 855 269 2605

Contact persons:

Lennart Evrell President & CEO Tel: +46 (0)8 610 15 00

Håkan Gabrielsson CFO Tel: + 46 (0)8 610 15 00

Sophie Arnius Director, Investor Relations Tel: +46 (0)8 610 15 23 +46 (0)70 590 80 72

Boliden has initiated one of Sweden's most comprehensive ecological compensation programmes to date as part of Aitik's environmental permit, with the aim of compensating for biological diversity losses when the capacity of the tailings pond is increased. The project is being carried out in collaboration with the landowner, Sveaskog, and the Swedish University of Agricultural Sciences, in order to conduct a scientific evaluation of the ecological effects of the compensation measures, including relocation of dead wood and the use of controlled burns.

Consolidated Income Statements

	Quarter Six months			12 months	Full year
SEK m	2-2017	2-2016	1-2017	2017	2016	Jul-Jun	2016
Revenues	11,554	9,596	12,730	24,284	18,446	46,155	40,316
Cost of goods sold	$-9,259$	$-8,306$	$-10,209$	$-19,467$	$-15,933$	$-36,739$	$-33,204$
Gross profit	2,295	1,291	2,522	4,817	2,513	9,416	7,111
Selling expenses	$-108$	$-95$	-99	$-207$	$-188$	$-410$	$-390$
Administrative expenses	$-137$	$-163$	$-144$	$-281$	$-307$	$-580$	$-607$
Research and development costs	$-158$	$-133$	$-139$	$-297$	$-247$	$-580$	-530
Other operating income and expenses	21	13	9	30	28	96	95
Results from participations in associated companies	З	$\bigcirc$	$\Omega$	4	1	6	З
Operating profit	1,916	912	2,149	4,065	1,800	7,947	5,682
Financial income		3	$\bigcirc$		6	O	4
Financial expenses	$-75$	-98	$-74$	$-148$	$-152$	$-308$	$-311$
Profit after financial items	1,843	817	2.075	3,917	1,653	7,639	5,375
Tax	$-382$	$-198$	$-406$	$-788$	$-378$	$-1,546$	$-1,135$
Net profit	1,461	619	1,669	3,129	1,276	6,093	4,239
Net profit attributable to
Owners of the Parent Company	1,460	619	1,669	3,129	1,275	6,091	4,237
Non-controlling interests		O	O		1	3	3

Earnings and equity per share

	Quarter				Six months	12 months	Full year
SEK m	2-2017	2-2016	1-2017	2017	2016	Jul-Jun	2016
Earnings per share 1, SEK	5.34	2.26	6.10	11.44	4.66	22.27	15.49
Dividend per share, SEK			$\overline{\phantom{0}}$				5.25
Equity per share, SEK	113.78	95.70	113.38	113.78	95.70	113.78	107.44
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

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

Key ratios - the Group

		Quarter			Six months	12 months	Full year
SEK m	2-2017	2-2016	1-2017	2017	2016	Jul-Jun	2016
Return on capital employed 1, %		۰	$\overline{\phantom{a}}$		۰.	18.8	14.6
Return on equity 2 , %		۰				20.9	15.7
Equity/assets ratio, %	58	52	58	58	52	58	55
Net debt/equity ratio 3, %	25	43	27	25	43	25	32
Net debt, SEK m	7,773	11.190	8,438	7,773	11.190	7,773	9,339

1 Operating profit, divided by average capital employed.
2 Profit after tax, divided by average equity.
3 Net of interest-bearing provisions and liabilities minus financial assets including cash and cash equivalents divide

Consolidated Statements of Comprehensive Income

	Quarter			Six months		12 months	Full year
SEK m	2-2017	2-2016	1-2017	2017	2016	Jul-Jun	2016
Profit for the period	1,461	619	1,669	3,129	1,276	6,093	4,239
Other comprehensive income
Items that will be reclassified to the Income Statement
Change in market value of derivative instruments	-3	$-48$	$-21$	$-24$	$-149$	$-15$	$-140$
Fiscal effect on derivative instruments	O	11	4	5	33	З	31
Transfers to the Income Statement	10	-5	11	21	$\overline{a}$	70	49
Tax on transfers to the Income Statement	-2	1	-2	-5	$\overline{a}$	$-15$	$-11$
Sum cash flow hedging	6	$-41$	-9	-3	$-116$	42	$-71$
The period's translation difference on overseas operations	119	299	$-43$	75	399	334	658
Profit on hedging of net investments in overseas operations	$-50$	$-81$	10	$-40$	$-104$	$-122$	$-186$
Tax on the period's profit from hedging instruments	11	18	-2	9	23	27	41
Sum translation exposure	79	236	$-35$	44	317	240	513
Total items that will be reclassified	85	195	$-44$	41	201	282	442
Items that will not be reclassified to the Income Statement
Revaluation of defined benefit pension plans		$-284$			$-284$	10	$-274$
Tax attributable to items that will not be reversed to the Income Statement		70			70	-2	68
Total items that will not be reclassified		$-214$			$-214$	8	$-206$
Total other comprehensive income	85	$-19$	$-44$	41	$-13$	290	236
Total comprehensive income for the period	1,546	600	1,625	3,171	1,263	6,383	4,476
Total comprehensive income for the period attributable to:
Owners of the Parent Company	1.545	600	1.625	3,170	1,262	6,381	4.473
Non-controlling interests	1	O	O	$\mathbf{1}$	1	З	З

Consolidated Balance Sheets

	30 Jun	30 Jun	31 Dec
SEK m	2017	2016	2016
Intangible assets	3,471	3,441	3,508
Property, plant and equipment	35,226	34,415	34,850
Participations in associated companies	27	55	25
Other shares and participations	31	28	31
Deferred tax assets	149	269	152
Long-term receivables	127	288	296
Total non-current assets	39,032	38,463	38,861
Inventories	9,159	8,131	10,077
Trade and other receivables	2,142	1,923	2,017
Tax receivables	55	74	55
Interest-bearing receivables	5	2	2
Derivative instruments	192	199	298
Other current receivables	1,215	663	1,097
Cash and cash equivalents	1,706	972	1,503
Total current assets	14,437	11,964	15,016
Total assets	53,469	50,427	53,877
Equity	31,128	26,181	29,394
Pension provisions	925	946	925
Other provisions	2,699	2,256	2,655
Deferred tax liabilities	3,052	2,967	3,062
Liability to credit institutions	6,563	8,280	8,187
Other interest-bearing liabilities	7	11	7
Derivative instruments		27
Total non-current liabilities	13,246	14,486	14,837
Liability to credit institutions	2,002	3,104	1,903
Other interest-bearing liabilities	5	2	4
Trade and other payables	3,622	3,708	4,239
Other provisions	256	294	236
Current tax liabilities	848	534	835
Derivative instruments	89	125	46
Other current liabilities	2,276	1,993	2,382
Total current liabilities	9,095	9,760	9,646
Total equity and liabilities	53,469	50,427	53,877

$\sim$ $^{-1}$

Consolidated Statements of changes in Equity

	30 Jun	30 Jun	31 Dec
SEK m	2017	2016	2016
Opening balance	29,394	25,807	25,807
Total comprehensive income for the period	3.171	1.263	4.476
Dividend	$-1,436$	$-889$	-889
Closing balance	31,128	26,181	29,394
Total equity attributable to:
Owners of the Parent Company	31,120	26.175	29,386
Non-controlling interests	8	6	8

On 30 June 2017, the hedging reserve, after fiscal effects, totalled SEK -5 m (-48).

Consolidated Statements of Cash Flow

	Quarter			Six months		12 months	Full year
SEK m	2-2017	2-2016	1-2017	2017	2016	Jul-Jun	2016
Operating activities
Profit after financial items	1,843	817	2,075	3,917	1.653	7,639	5,375
Adjustments for items not included in the cash flow:
- Depreciation, amortisation and write-down of assets	1,141	1.026	1.095	2.237	1.928	4,580	4.199
- Provisions	$-1$	$-422$	O	$-1$	$-419$	$-16$	-434
- Revaluation of process inventory	280	$-11$	$-87$	193	$-130$	$-265$	$-588$
- Other	15	154	10	25	143	$-116$	74
Tax paid/received	$-284$	$-308$	-492	$-776$	$-461$	$-1,024$	$-709$
Cash flow from operating activities before changes in working capital	2,994	1,256	2,601	5,595	2,714	10,798	7,918
Cash flow from changes in working capital	541	837	$-610$	-69	388	$-1,379$	$-923$
Cash flow from operating activities	3,535	2.093	1.991	5,526	3.102	9,419	6,995
Investment activities
- Acquisition		$-5,943$	$\overline{a}$		$-5,943$	18	$-5.925$
- Disposal						121	121
- Acquisition of intangible assets	$-2$	-2	O	-3	$-4$	$-13$	$-14$
- Acquisition of property, plant and equipment	$-1.384$	-942	$-1,093$	$-2,478$	$-1.739$	$-4,713$	$-3.975$
- Disposal of property, plant and equipment						6	6
- Acquisition/disposal of financial assets	$\overline{4}$	$-1$	163	167	O	157	-9
Cash flow from investment activities	$-1,383$	-6,887	-931	$-2.313$	-7.686	$-4,423$	-9,795
Cash flow before financing activities (free cash flow)	2,152	$-4,794$	1,060	3,212	$-4,584$	4,996	$-2,801$
Dividend	$-1,436$	-889		$-1,436$	-889	$-1,436$	$-889$
Net borrowing/net amortisation	59	5,796	$-1,633$	$-1,574$	5,518	$-2,828$	4,264
Cash flow from financing activities	$-1,377$	4,907	$-1,633$	$-3,010$	4,629	$-4,264$	3,376
Cash flow for the period Cash and cash equivalents at the beginning of the period	775 930	113 856	$-573$ 1,503	202 1,503	45 923	732 972	575 923
Exchange rate difference on cash and cash equivalents	1	З	$\bigcirc$		4	2	5
Cash and cash equivalents at period-end	1,706	972	930	1,706	972	1,706	1.503

Boliden AB conducts limited operations, on commission from Boliden Mineral AB, and the profits from the operations are, therefore, reported by Boliden Mineral AB. Boliden AB has no sums to report in the Income Statement or under Other comprehensive income for the second quarter of 2017.

	30 Jun	30 Jun	31 Dec
SEK m	2017	2016	2016
Participations in Group companies	3.911	3.911	3.911
Other shares and participations	5	5	5
Long-term financial receivables, Group companies	5.898	7.334	7.334
Current financial receivables, Group companies	1,787	2.444	1.687
Total assets	11,602	13,694	12,938
Equity	9.315	10.751	10.751
Long-term liabilities to credit institutions	500	500	500
Current liabilities to credit institutions	1.787	2.444	1.687
Total liabilities and equity	11.602	13.694	12,938

30 Jun 2017, SEK m	Reported value	Fair value
Other shares and participations	31	31
Trade and other receivables	2.142	2.142
Interest-bearing receivables	2	2
Derivative instruments	192	192
Cash and cash equivalents	1,706	1.706
Total assets	4,073	4,073
Liabilities to credit institutions	8.565	8.588
Other interest-bearing liabilities	9	9
Trade and other payables	3,622	3,622
Derivative instruments	89	89
Total liabilities	12,285	12,309

The fair value of derivatives is based on listed bid and ask prices on the closing day and on 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. On 30 June 2017, the interest terms of current loan agreements were adjudged to be on a par with market rates in the credit market. The fair value consequently corresponds, in every significant respect, to the reported value.

The reported value of trade and other receivables and trade and other payables is deemed to be the same as their fair value due to their short time to maturity, the fact that provisions are made for doubtful trade and other receivables, 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, with the exception of a small amount of level 3 holdings in other shares and participations. See also under Accounting Principles in the Annual Report.

The following table contains an estimate of how changes in market terms affect the Group's operating profit over the next twelve-month period. The calculation is based on listings on 30 June 2017 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 prices, +10%	Effect on operating profit, SEK m	Change in TC/RC. +10%	Effect on operating profit, SEK m	Change in USD, +10%	Effect on operating profit, SEK m
Zinc	850	TC/RC Copper	95	USD/SEK	1.530
Copper	710	TC Zinc	50	EUR/USD	955
Gold	295	TC Lead	$-15$	USD/NOK	135
Silver	190
Lead	125
Nickel	90

Boliden has historically had a natural hedge as a result of the negative correlation that has existed between currency on the one hand and prices and treatment charge terms on the other. This is illustrated in the following graphs, which show Boliden's total weighted price index, a weighted currency index, and a weighted metal price and TC index.

Outstanding metal price and
currency hedging

The following tables show Boliden's outstanding price and currency hedging contracts on 30 June 2017. The Boliden Group's production is otherwise fully exposed to market prices.

Metals

	2017	Total
Gold
Hedged volume, troy oz.	14.498
Forward price, USD/troy oz.	1,507
Market value, SEK m 1	31	31

1 Of which SEK 79 m for 2017 was settled against cash in June 2015 and will be recognised as revenue in 2017. SEK 39 m has been recognised as of 30 June 2017.

Currencies

2017	Total
USD/SEK
Hedged volume, USD m 55
6.59 Forward rate, USD/SEK
-39 Market value, SEK m 1	-39

1 Of which SEK -75 m for 2017 was settled against cash in June 2015 and will be recognised as revenue in 2017. SEK-37 m has been recognised as of 30 June 2017.

Quarterly data per segment

SEK m	3-2015	4-2015	1-2016	2-2016	3-2016	4-2016	1-2017	2-2017
THE GROUP
Revenues	9.764	9,699	8,849	9,596	9,733	12,137	12,730	11,554
Operating expenses	2,704	3,011	2,894	3,009	3,188	3,667	3,469	3,634
Depreciation	866	923	900	1,027	1,124	1,147	1,092	1,142
Operating profit ex. revaluation of process inventory	1,055	596	769	901	1,318	2,106	2,061	2,196
Operating profit	880	416	888	912	1,529	2,353	2,149	1,916
Investments	880	1,187	799	956	1,028	1,343	1,096	1,385
Acquisitions			$\blacksquare$	5,979		$-18$
Capital employed	35,080	35,131	35,644	40,555	42,069	42,457	43,093	42,630
MINES
Revenues	2,385	2,193	2,336	2,678	3,435	4,211	4,315	4,415
Gross profit	2.230	2,189	2,389	2.893	3,427	4,112	4,273	4,463
Operating expenses	1,350	1,533	1,487	1,497	1,739	2,111	1,928	2,033
Depreciation	619	677	658	775	865	874	820	872
Operating profit	260	31	242	621	804	1,136	1,525	1,555
Investments	563	688	512	572	748	923	755	889
Acquisitions		$\overline{\phantom{a}}$	$\blacksquare$	5.979	÷,	$-18$
Capital employed	19,210	19,209	19,189	24,700	24,918	24,972	25,208	25,375
SMELTERS
Revenues	9,486	9,388	8,681	9,147	9,462	11,225	12,361	10,893
Gross profit ex. revaluation of process inventory	2,373	2,216	2,241	2,098	2,273	2,764	2,577	2,389
Operating expenses	1,317	1,396	1,356	1,465	1,406	1,468	1,478	1,583
Depreciation	247	246	243	252	259	272	272	269
Operating profit ex. revaluation of process inventory	825	583	655	397	613	1,094	835	563
Operating profit	650	402	774	408	825	1,341	922	283
Investments	315	496	288	384	280	420	341	495
Capital employed	16,009	15,944	16,546	16,249	17,516	17,838	18,568	17,673
OTHER/ELIMINATIONS
Revenues	$-2,107$	$-1,882$	$-2,168$	$-2,229$	$-3,164$	$-3,299$	$-3,946$	$-3,753$
Operating expenses	37	81	50	47	43	89	63	17
Operating profit, internal profit	-3	50	$-100$	-84	$-76$	-56	$-260$	118
Operating profit, other	$-26$	$-68$	-29	-33	$-24$	$-68$	$-39$	$-40$
Investments	2	2		O		O		2
Capital employed	$-140$	-22	$-91$	$-393$	-365	$-354$	-683	$-418$

Consolidated quarterly data

	3-2015	4-2015	1-2016	2-2016	3-2016	4-2016	1-2017	2-2017
Financial performance 1 , the Group
Revenues, SEK m	9,764	9,699	8,849	9,596	9,733	12,137	12,730	11,554
Operating profit before depreciation, SEK m	1,746	1,339	1,788	1,940	2,653	3,500	3,241	3,058
Operating profit ex. revaluation of process
inventory, SEK m	1,055	596	769	901	1,318	2,106	2,061	2,196
Operating profit, SEK m	880	416	888	912	1,529	2,353	2,149	1,916
Profit after financial items, SEK m	829	354	836	817	1,454	2,267	2,075	1,843
Net profit, SEK m	647	288	656	619	1,137	1,827	1,669	1,461
Earnings per share, SEK	2.36	1.05	2.40	2.26	4.15	6.68	6.10	5.34
Free cash flow, SEK m	953	36	210	$-4,794$	91	1,692	1,060	2,152
Net debt/equity ratio, %	24	23	21	43	40	32	27	25
Production of metal in concentrate 2
Zinc, tonnes	71,641	77,700	80,850	84,719	84,417	79,100	77,139	80,421
Copper, tonnes	21,713	21,411	20,884	24,028	28,092	30,423	29,650	38,229
Nickel, tonnes			$\overline{\phantom{a}}$	960	3,142	3,341	3,340	3,519
Lead, tonnes	14,845	17,050	15,811	15,748	15,559	15,721	14,868	15,066
Gold, kg	1,115	1,399	1,395	1,303	1,332	1,737	1,702	1,856
Gold, troy oz.	35,853	44,987	44,847	41,879	42,828	55,832	54,732	59,683
Silver 3 , kg	106,114	102,713	103,310	116,873	105,941	120,702	104,450	111,197
Silver 3 , 'OOO troy oz.	3,412	3,302	3,321	3,757	3,406	3,881	3,358	3,575
Tellurium, kg	4,399	9,254	10,131	10,219	5,243	13,088	11,251	7,186
Metal production, Smelters
Zinc, tonnes	121,203	114,614	117,600	112,815	115,145	115,580	115,248	115,468
Copper, tonnes	84,159	84,437	85,286	78,988	83,022	88,980	88,708	87,430
Lead, tonnes	4,468	7,513	7,060	6,663	7,231	7,408	6,049	7,561
Lead alloys, tonnes (Bergsöe)	8,117	12,342	12,342	11,895	8,303	13,465	14,061	12,953
Nickel in matte, tonnes	8,061	9,054	8,793	6,671	8,207	7,793	7,579	4,038
Gold, kg	4,292	4,588	4,500	5,066	4,186	3,888	4,902	4,150
Gold, troy oz.	138,002	147,502	144,662	162,858	134,565	124,992	157,609	133,417
Silver, kg	149,880	170,858	158,711	151,740	133,900	164,800	143,764	133,960
Silver, 'OOO troy oz.	4,819	5,493	5,103	4,878	4,305	5,298	4,622	4,307
Sulphuric acid, tonnes	418,051	429,121	431,814	359,791	416,348	434,490	423,535	369,168
Aluminium fluoride, tonnes	6,063	10,070	8,969	10,188	5,819	6,600
Metal prices in USD, average per quarter
Zinc, USD/tonne	1,847	1,613	1,679	1,918	2,255	2,517	2,780	2,596
Copper, USD/tonne	5,259	4,892	4,672	4,729	4,772	5,277	5,831	5,662
Lead, USD/tonne	1,714	1,681	1,744	1,719	1,873	2,149	2,278	2,161
Nickel, USD/tonne	10,561	9,437	8,499	8,823	10,265	10,810	10,271	9,225
Gold, USD/troy oz.	1,125	1,105	1,180	1,258	1,335	1,222	1,219	1,257
Silver, USD/troy oz.	14.91	14.77	14.85	16.78	19.61	17.19	17.42	17.21
Metal prices in SEK, average per quarter
Zinc, SEK/tonne	15,661	13,706	14,195	15,752	19,209	22,755	24,806	22,842
Copper, SEK/tonne	44,595	41,576	39,509	38,843	40,663	47,715	52,033	49,812
Lead, SEK/tonne	14,531	14,290	14,746	14,120	15,954	19,432	20,325	19,012
Nickel, SEK/tonne	89,548	80,208	71,874	72,471	87,461	97,740	91,649	81,165
Gold, SEK/troy oz.	9,539	9,395	9,981	10,337	11,374	11,048	10,879	11,063
Silver, SEK/troy oz.	126.43	125.54	125.57	137.84	167.11	155.46	155.45	151.43
Exchange rates, average per quarter
USD/SEK	8.48	8.50	8.46	8.21	8.52	9.04	8.92	8.80
EUR/USD	1.11	1.10	1.10	1.13	1.12	1.08	1.07	1.10
EUR/SEK	9.43	9.31	9.32	9.28	9.51	9.76	9.51	9.69
USD/NOK	8.21	8.52	8.64	8.26	8.33	8.37	8.44	8.52

1 For definitions, see page 117 of the 2016 Annual Report.
2 Refers to metal content in concentrates.

3 Includes silver production at Tara that is not payable. See page 24 for details of Tara's production.

Quarterly data per unit - Mines

	3-2015	4-2015	1-2016	2-2016	3-2016	4-2016	1-2017	2-2017
AITIK
Milled ore, Ktonnes	8,986	9,359	8,755	8,750	8,963	9,584	9,251	10,389
Head grades
Copper, %	0.22	0.21	0.21	0.22	0.22	0.23	0.23	0.29
Gold, g/tonne	0.11	0.13	0.12	0.10	0.12	0.11	0.13	0.14
Silver, g/tonne	2.63	2.03	2.60	2.09	1.91	1.87	1.98	2.33
Production of metal in concentrate
Copper, tonnes	17,528	17,646	16,569	17,150	17,510	19,453	18,820	26,792
Gold, kg	518	594	516	443	577	584	652	788
Gold, troy oz.	16,648	19,083	16,574	14,251	18,541	18,761	20,948	25,320
Silver, kg	16,652	13,254	13,324	14,103	14,633	14,542	12,640	19,843
Silver, 'OOO troy oz.	535	426	428	453	470	468	406	638
THE BOLIDEN AREA
Milled ore, Ktonnes	512	399	529	507	599	503	552	555
Of which, smelter slag	115	59	78	65	83	75	77	72
Head grades
Zinc, %	3.6	4.1	4.2	4.2	4.1	4.1	3.7	4.7
Copper, %	O.4	O.4	O.4	0.4	0.3	O.4	O.3	O.4
Lead, %	O.4	0.6	0.5	0.4	0.4	0.4	O.4	0.5
Gold, g/tonne	1.5	2.0	1.7	1.9	1.5	1.8	1.8	2.0
Silver, g/tonne	49	74	74	55	55	54	59	62
Tellurium, g/tonne	25	45	39	47	19	46	42	26
Production of metal in concentrate
Zinc, tonnes	13,100	12,890	17,517	17,151	19,075	16,427	16,017	20,611
Copper, tonnes	1,252	916	1,548	1,378	1,302	1,440	1,157	1,590
Lead, tonnes	466	1,064	1,140	921	968	764	806	1,095
Gold, kg	305	586	629	566	377	689	610	624
Gold, troy oz.	9,806	18,826	20,238	18,196	12,118	22,141	19,609	20,046
Silver, kg	11,672	18,634	25,123	16,578	18,494	24,716	22,014	23,526
Silver, 'OOO troy oz.	375	599	808	533	595	795	708	756
Tellurium, kg	4,399	9,254	10,131	10,219	5,243	13,088	11,251	7,186
TARA
Milled ore, Ktonnes	508	610	646	644	638	675	615	532
Head grades
Zinc, %	6.7	6.3	6.0	6.2	6.0	5.6	6.0	6.1
Lead, %	1.2	1.3	1.2	1.2	1.1	1.1	1.2	1.2
Production of metal in concentrate
Zinc, tonnes	32,477	36,506	36,973	38,047	36,984	35,793	35,376	30,894
Lead, tonnes	3,917	4,970	5,192	5,035	5,004	4,351	5,119	3,807
Silver, kg 1	182	304	384	192	243	257	531	302
Silver, 'OOO troy oz. 1	5,851	9,774	12,346	6,173	7,812	8,263	17,072	9,703

1 Silver production at Tara is not payable.

Quarterly data per unit - Mines

	3-2015	4-2015	1-2016	2-2016	3-2016	4-2016	1-2017	2-2017
GARPENBERG
Milled ore, Ktonnes	590	612	628	668	645	681	637	672
Head grades
Zinc, %	4.7	4.9	4.4	4.6	4.5	4.1	4.2	4.5
Copper, %	O.1	O.1	O.1	O.1	0.1	O.1	0.1	O.1
Lead, %	2.1	2.1	1.8	1.8	1.8	1.9	1.7	1.8
Gold, g/tonne	O.4	0.3	0.3	0.3	0.3	0.3	0.3	O.3
Silver, g/tonne	161	150	133	167	145	155	143	131
Production of metal in concentrate
Zinc, tonnes	25,489	27,712	25,852	28,780	27,589	26,421	25,326	28,409
Copper, tonnes	191	209	208	170	175	183	202	174
Lead, tonnes	10,462	11,016	9,478	9,792	9,588	10,606	8,943	10,164
Gold, kg	160	131	151	136	138	156	145	126
Gold, troy oz.	5,145	4,214	4,864	4,360	4,429	5,008	4,673	4,056
Silver, kg	77,018	69,955	63,993	85,216	72,011	80,655	68,885	67,047
Silver, 'OOO troy oz.	2,476	2,249	2,057	2,740	2,315	2,593	2,215	2,156
KEVITSA 1
Milled ore, Ktonnes				618	1,957	1.943	1,959	1,917
Head grades
Copper, %			$\overline{\phantom{a}}$	0.30	0.34	0.38	0.40	0.40
Nickel, %			$\overline{\phantom{a}}$	0.22	0.23	0.25	0.24	0.26
Cobalt, g/tonne			$\overline{\phantom{a}}$	0.01	0.01	0.01	0.02	0.01
Gold, g/tonne			$\overline{\phantom{a}}$	0.12	0.13	0.15	0.15	0.15
Palladium, g/tonne			$\overline{\phantom{a}}$	0.19	0.18	0.21	0.19	0.22
Platinum, g/tonne				0.28	0.27	0.31	0.29	0.33
Production of metal in concentrate
Copper, tonnes			$\overline{\phantom{a}}$	1,673	5,948	6,596	7,017	6,894
Nickel, tonnes			$\overline{\phantom{a}}$	960	3,142	3,341	3,340	3,519
Cobalt, tonnes			$\overline{\phantom{a}}$	43	136	143	141	144
Gold, kg			$\overline{\phantom{a}}$	35	131	162	147	153
Gold, troy oz.			$\overline{\phantom{a}}$	1,136	4,225	5,197	4,727	4,933
Palladium, kg			$\bar{a}$	71	202	285	234	276
Palladium, troy oz.	$\overline{\phantom{a}}$			2,287	6,508	9,170	7,537	8,880
Platinum, kg				93	265	392	326	371
Platinum, troy oz.			$\overline{\phantom{a}}$	2,982	8,531	12,605	10,481	11,940
KYLYLAHTI
Milled ore, Ktonnes	188	183	188	193	206	209	204	500
Head grades
Zinc, %	0.7	0.7	0.6	O.8	0.6	0.5	0.5	0.5
Copper, %	1.6	1.5	1.5	2.0	1.6	1.4	1.3	1.5
Gold, g/tonne	0.9	0.6	0.7	0.7	0.8	1.0	1.0	1.0
Production of metal in concentrate
Zinc, tonnes	576	591	508	742	769	459	421	506
Copper, tonnes	2,742	2,639	2,559	3,657	3,157	2,751	2,455	2,779
Gold, kg	132	89	99	122	109	147	149	166
Gold, troy oz.	4,254	2,864	3,170	3,936	3,516	4,725	4,776	5,328

1 Kevitsa was acquired on 1 June 2016 and production is consequently only reported for June in Q2 2016.

Quarterly data per unit - Smelters

	3-2015	4-2015	1-2016	2-2016	3-2016	4-2016	1-2017	2-2017
RÖNNSKÄR
Feed, tonnes
Copper
Copper concentrate	156,045	153,639	164,557	140,958	157,097	163,555	166,460	158,538
Secondary raw materials	46,395	46,538	46,138	38,303	43,270	43,703	48,421	40,934
Of which, electronics	23,952	20,640	21.672	20,587	20,385	19.177	20,982	18,357
Copper, total	202,440	200,177	210,695	179,261	200,367	207,258	214,881	199,472
Lead
Lead concentrate	4.887	11,573	11,144	9,781	7,151	13,057	9,368	10,099
Secondary raw materials	379	472	251	161	152	168	247	148
Lead, total	5,266	12,045	11,395	9,942	7,303	13,225	9.615	10,247
Production
Cathode copper, tonnes	52,127	51,066	53,714	46,821	50,553	56,132	56,015	54,051
Lead, tonnes	4,468	7,513	7,060	6,663	7,231	7,408	6,049	7,561
Zinc clinker, tonnes	9,501	9,392	8.913	6.490	7,820	9.398	8.994	6,474
Gold, kg	3,208	3,470	3.701	3,647	3,156	3,279	3.518	2,868
Gold, troy oz.	103,124	111,548	118,971	117,235	101,475	105,407	113,103	92,206
Silver, kg	118,100	140,098	131,251	119,000	112,700	145,200	127,204	118,600
Silver, 'OOO troy oz.	3,797	4,504	4,220	3,826	3,623	4,668	4,090	3,813
Sulphuric acid, tonnes	124,464	123,467	135,159	112,945	118,175	136,987	134,710	122,464
BERGSÖE
Feed, tonnes
Battery raw materials	11,026	16,947	17,320	16,215	11,581	19,151	20,011	17,591
Production, tonnes
Lead alloys	8,117	12,342	12,342	11,895	8,303	13,465	14,061	12,953

Quarterly data per unit - Smelters

	3-2015	4-2015	1-2016	2-2016	3-2016	4-2016	1-2017	2-2017
HARJAVALTA
Feed, tonnes
Copper
Copper concentrate	139,688	156,677	143,145	124,158	143,545	140,771	137,213	115,708
Secondary raw materials	5.240	6,446	5,175	5,064	8,404	8,624	5,811	5,900
Copper, total	144,928	163,122	148,320	129,223	151,949	149,396	143,023	121,608
Nickel concentrate	69,907	72,032	73,911	62,733	76,855	80,245	76,881	40,788
Production
Cathode copper, tonnes	32,032	33,371	31,572	32,167	32,469	32,847	32,693	33,379
Nickel in matte	8,061	9,054	8,793	6,671	8,207	7,793	7,579	4,038
Gold, kg	1,085	1,118	799	1,419	1,029	609	1,384	1,282
Gold, troy oz.	34,878	35,955	25,691	45,623	33,090	19,585	44,506	41,211
Silver, kg	31,780	30,760	27,460	32,740	21,200	19,600	16,560	15,360
Silver, '000 troy oz.	1,022	989	883	1,053	682	630	532	494
Sulphuric acid, tonnes	171,827	189,090	181,611	156,370	183,508	181,630	181,471	139,105
KOKKOLA
Feed, tonnes
Zinc concentrate	155,528	153,947	147,657	122,355	150,576	135,342	135,475	138,678
Production, tonnes
Zinc	78,094	78,238	78,594	69,365	73,922	68,718	70,556	69,321
Silver in concentrate, kg	4,079	2,819	3,499	4,529	4,600	4,552	5,503	3,916
Silver in concentrate, 'OOO troy oz.	131	91	112	146	148	146	177	126
Sulphuric acid	90,411	88,411	85,478	59,566	87,251	82,963	81,713	76,393
ODDA
Feed, tonnes
Zinc concentrate, incl. zinc clinker	76,301	71,009	78,919	80,923	83,973	95,102	84,674	96,276
Production, tonnes
Zinc	43,109	36,376	39,006	43,450	41,223	46,862	44,692	46,147
Aluminium fluoride	6,063	10,070	8,969	10,188	5,819	6,600
Sulphuric acid	31,349	28,154	29,566	30,910	27,414	32,910	25,642	31,205

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