Boliden — Interim / Quarterly Report 2018

Oct 24, 2018

	Quarter		Nine months		12 months Full year
SEK m		3-2018 3-2017	2-2018	2018	2017	Oct-Sep	2017
Revenues	12,510	11,628	14,071	39,912	35.912	53,531	49,531
Operating profit ex. revaluation of process inventory	2,020	1.744	2,329	7.073	6.002	9,985	8,913
Operating profit	1.771	1.860	2,468	6.911	5.924	10,002	9,015
Profit after financial items	1.707	1.790	2,401	6.723	5,707	9.752	8.737
Net profit	1.285	1,478	2,038	5,334	4,608	7,582	6,856
Earnings per share, SEK	4.69	5.40	7.45	19.49	16.84	27.71	25.06
Free cash flow	822	1,715	1.718	3.970	4.927	6.352	7.309
Net debt	3.753	6,033	4,589	3.753	6.033	3.753	3.752
Return on capital employed, %						22.8	21.0
Return on equity, %			-		$\qquad \qquad \blacksquare$	21.1	21.6
Net debt/equity ratio, %	10	19	13	10	19	10	11

• The operating profit, excluding revaluation of process inventory, was SEK 2,020 m (1,744).
• The free cash flow totalled SEK 822 m (1,715).
• High production levels at Aitik and Garpenberg.
• Smelters' production increased, despite some process related disturbances.

Sales increased to SEK 12,510 m (11,628) due to increased volumes.

		Quarter
SEK m	3-2018	3-2017	2-2018
Operating profit	1,771	1,860	2,468
Revaluation of process inventory	$-249$	116	139
Operating profit ex. revaluation of process inventory	2,020	1,744	2,329
Change		276	-308
Analysis of change
Volumes		464	-53
Prices and terms		71	$-621$
Metal prices		$-408$	$-933$
By-product prices		57	-5
Realized metal and currency hedge		3
TC/RC terms		$-30$	$\overline{7}$
Metal premiums		4	10
Exchange rate effects		445	300
Costs (local currencies)		$-202$	371
Depreciation		-50	11
Other		-5	$-17$
Change		276	-308

		Quarter	Nine months
SEK m	3-2018	3-2017	2-2018	2018	2017
Mines	1.091	1.421	2.044	5,067	4.501
Smelters	589	568	630	1.859	1.966
Other/eliminations	340	$-245$	$-346$	147	-466
The Group	2,020	1,744	2,329	7.073	6,002

The operating profit, excluding revaluation of process inventory, improved to SEK 2,020 m (1,744). The year on year improvement was primarily due to higher volumes. Mines' production increased at Aitik and Garpenberg, and the high production rate at Aitik more than compensated for its lower grades. Higher grades at Garpenberg contributed to the increase in volume. Smelters' production of the majority of metals increased, in spite of various process engineering problems. Costs increased due both to increased volumes and to higher prices for energy and consumables.

The operating profit, excluding revaluation of process inventory, decreased by SEK 308 m from the previous quarter due to lower metal prices and lower volumes at Tara and in the Boliden Area. A deterioration in process stability negatively impacted Smelters' volumes. Payroll and maintenance costs were seasonally lower.

The profit after financial items was SEK 1,707 m (1,790), and the net profit was SEK 1,285 m (1,478), corresponding to earnings per share of SEK 4.69 (5.40). The return on capital employed and equity for the previous 12 months was 22.8 and 21.1%, respectively.

Investments for the quarter totalled SEK 1,457 m (1,240) and are expected to total slightly in excess of SEK 6 billion for 2018 as a whole. Maintenance investments, including waste rock extraction, account for slightly in excess of SEK 4 billion of the full year investments total. Investments for 2019 are expected to increase to close to SEK 8 billion due to several larger investments. Among these are the construction of a new leaching plant at Rönnskär, the expansion work at Kevitsa, the expansion of the Harjavalta smelter and the Pori copper refinery, and the acquisition of new haul trucks at Kevitsa and Aitik.

	Quarter			Nine months		12 months	Full year
SEK m	3-2018	3-2017	2-2018	2018	2017	Oct-Sep	2017
Cash flow from operating activities before change in working capital	2.075	2,550	3.101	8,538	8,144	12,230	11,837
Change in working capital	203	404	171	$-448$	336	116	900
Cash flow from operating activities	2,279	2.954	3,272	8,090	8,480	12.346	12.737
Cash flow from investment activities	$-1.456$	$-1.240$	$-1.554$	$-4.119$	-3.553	$-5.994$	$-5.428$
Free cash flow	822	1.715	1,718	3,970	4.927	6,352	7.309

The free cash flow totalled SEK 822 m (1,715). The reduction in the cash flow was primarily due to the higher amount of tax paid.

Net financial items during the quarter totalled SEK -64 m (-70). The average interest on loans was 1.1% (1.2).

Boliden's net debt at the end of the quarter was SEK 3,753 m (6,033) and the net debt/equity ratio was 10% (19). The average term of total approved loan facilities at the period end was 3.8 years (2.6) and the fixed interest term on utilised loans was 0.3 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 8,412 m (7,539).

Industrial production continued to be strong during the third quarter. Prices of both base and precious metals declined during the quarter, while the US dollar strengthened slightly. Metal prices in SEK, with the exception of nickel, were essentially unchanged in comparison with the third quarter of last year.

		Quarter	Nine months
	3-2018	3-2017	2-2018	2018	2017
Zinc. USD/tonne	2.537	2.963	3.112	3.020	2.783
Copper, USD/tonne	6,105	6,349	6,872	6.642	5.952
Nickel, USD/tonne	13,266	10,528	14.476	13,666	10,021
Lead, USD/tonne	2,104	2.334	2.388	2.337	2.259
Gold, USD/troz	1,213	1.278	1,306	1.283	1.251
Silver, USD/troz	15.0	16.8	16.5	16.1	17.2
USD/SEK	8.95	8.14	8.67	8.58	8.61
EUR/SEK	10.41	9.56	10.33	10.23	9.58

Demand for zinc increased moderately year on year. Metal demand in China increased by 1%, while demand in mature economies declined slightly.

Global metal production increased by just under 2%, year on year, due to an increase in production in the West. The increase should, however, be viewed in the light of less comprehensive maintenance shutdowns in the past year. The production in China declined slightly. The increase in global production failed, however, to match metal demand. Spot market treatment charges continued to rise but were lower than those in the yearly contracts.

Global demand for copper increased by just over 2% in comparison with levels in the third quarter last year. The growth in demand continued to be high in China but fell in mature economies from levels in the previous quarter.

Smelter production increased by just over 1%, year on year. The availability of metal increased more rapidly – by just over 2% – due to increased production by mines with direct leaching. Metal availability was, however, reduced due to disruptions in production at several smelters. Treatment charges rose and were almost on a par with those in the yearly contracts.

</tonnes<>

<tonnes< th="">
15.000
12.000
9.000
6.000
3,000
	��������������������������������������

24.000
20,000
16.000
12.000
8,000
4.000
∩
	\$\$\$\$\$\$\$ \$\$\$\$\$

Data in the Market performance section was supplied by CRU Ltd and Wood Mackenzie in September 2018.

Global production of stainless steel increased by 3% from levels in the third quarter of last year, while demand for nickel increased by just over 4%, year on year.

Production of low-grade ferro nickel, known as nickel pig iron, continued to increase in Indonesia, where new capacity is being built. Production in China also increased in comparison with the third quarter of last year. Total global production of nickel metal continued to fall short of demand, and levels of nickel inventories fell. Inventory levels on the metal exchanges have fallen substantially in 2018, but are still at historically high levels.

Precious metal prices were, on average, lower both year on year and in comparison with the previous quarter.

Demand for sulphuric acid was good in northern Europe, and prices rose from second quarter levels.

Boliden has six mining areas: Aitik, the Boliden Area, Garpenberg, Kevitsa, Kylylahti and Tara. The Business Area operations comprise production, exploration, technological development, environmental technology, and mined concentrate sales.

• High production at Aitik and Garpenberg
• Operating profit: SEK 1,091 m (1,421)

	Quarter
SEK m	3-2018	3-2017	2-2018	2018	2017
Revenues	3.941	4.175	5.251	13.926	12,904
Gross profit	4.010	4.138	5.178	14.108	12,874
Operating expenses	2,002	1.842	2,215	6,277	5,803
Depreciation	919	854	912	2.767	2.546
Operating profit	1,091	1.421	2.044	5,067	4.501
Investments	1.158	815	1.123	3,159	2.458
Capital employed	25,546	24,975	25,686	25,546	24,975

		Quarter
SEK m	3-2018	3-2017	2-2018
Operating profit	1,091	1,421	2,044
Change		-329	-953
Analysis of change
Volumes		84	-465
Prices and terms		$-275$	-689
Metal prices		$-679$	$-826$
Realized metal and currency hedge		3
TC/RC terms		57	13
Exchange rate effects		344	124
Costs (local currencies)		$-97$	213
Depreciation		-38	-4
Other		-2	-9
Change		-329	-953

The operating profit declined to SEK 1,091 m (1,421). Volumes were positively affected by higher production at both Aitik and Garpenberg. The improvement in the profit from treatment charges was due to new terms coming into effect from the turn of the year. Higher volumes and rising energy prices contributed to the increase in costs.

The deterioration in the operating profit from the previous quarter's levels was due to lower metal prices and lower volumes at Tara and in the Boliden Area. The lower prices had both a direct negative effect on the profit, and a negative effect on the profit as a result of the definitive pricing of previous deliveries. Increases in production stability, coupled with less maintenance work and the vacation period, resulted in a decrease in costs from the previous quarter's levels.

	Quarter					Nine months
	3-2018	3-2017	%	2-2018	%	2018	2017	$\frac{0}{2}$
Zinc, tonnes	70,612	69,616	1	70.760	O	218,999	227.176	-4
Copper, tonnes	34,496	33,702	2	34,300	1	105,696	101.581	$\overline{4}$
Nickel, tonnes	3.647	3.468	5	3.777	-3	10.946	10.327	6
Lead, tonnes	14.201	12,880	10	13.180	8	41.263	42.814	-4
Gold, kg	1.835	1.650	11	1.768	4	5.513	5.208	6
Silver, kg	100,987	89,741	13	97.324	4	319,645	305,388	5

−

Milled volume at Aitik increased in comparison with both the previous quarter and the previous year, thanks to high and stable levels of production in the new crusher. The high production levels during the quarter should, however, also be viewed in the light of favourable weather conditions and the lack of maintenance shutdowns. The copper grade was 0.25% (0.27), and the recovery levels for both copper and gold were stable, both quarter on quarter and year on year. The average copper grade for the next five quarters is estimated at 0.25%, which is in line with previous assessments.

The Boliden Area's milled volume was higher than in the second quarter and on a par with levels last year. Ore production, however, decreased substantially in comparison with both the previous quarter and the previous year. As previously announced, the Maurliden open pit was mined out during the second quarter and this, in combination with a disadvantageous ore mix and lower zinc and gold grades, resulted in lower production levels of metal in concentrate compared to last year.

Garpenberg's milled volume remained stable and high. Mining occurred in areas with higher zinc and silver grades than those mined in both the second quarter and last year, and metal production increased. The average zinc grade for the next five quarters is estimated at 4.0%, which is in line with previous assessments.

Tara's milled volume fell in comparison with both the previous quarter and the previous year. Production was negatively affected by planned maintenance, and by lower zinc and lead grades.

Kevitsa's milled volume was on a par with levels in the second quarter, but lower than last year, when grindability was unusually high. The nickel grade continued to be high and in line with the record high levels reported in the second quarter. The slight reduction in recovery levels meant, however, that the volume of nickel metal was only on a par with last year and slightly lower than the second quarter.

The milled volume at Kylylahti remained at a high and stable level. Changes to mining plans resulted in increases in nickel and cobalt production and to a reduction in copper production in comparison with the second quarter and last year.

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. The Business Area operations also include purchases of mined concentrate and secondary raw materials, and sales of metals and byproducts.

• Production increased in spite of some process disturbances
• The operating profit, excluding revaluation of process inventory, was SEK 589 m (568)

		Quarter		Nine months
SEK m	3-2018	3-2017	2-2018	2018	2017
Revenues	11,934	11,401	13,656	38,547	34,655
Gross profit ex. revaluation of process inventory	2.456	2.224	2.622	7.596	7.189
Operating expenses	1.583	1,399	1.701	4.837	4.460
Depreciation	297	272	311	941	814
Operating profit ex. revaluation of process inventory	589	568	630	1.859	1.966
Operating profit	340	684	769	1.697	1.889
Investments	298	425	437	967	1.261
Capital employed	19,067	17,957	19,761	19.067	17.957

		Quarter
SEK m	3-2018	3-2017	2-2018
Operating profit	340	684	769
Revaluation of process inventory	$-249$	116	139
Operating profit ex. revaluation of process inventory	589	568	630
Change		21	$-41$
Analysis of change
Volumes		101	$-24$
Prices and terms		47	$-155$
Metal prices		$-91$	$-193$
By-product prices		57	-5
TC/RC terms		$-87$	-6
Metal premiums		$\overline{4}$	10
Exchange rate effects		164	40
Costs (local currencies)		$-111$	130
Depreciation		$-12$	15
Other		-3	-8
Change		21	-41

The operating profit, excluding revaluation of process inventory, increased to SEK 589 m (568). Higher production by the zinc smelters, and higher copper production levels at both Harjavalta and Rönnskär, had a positive effect on the profit. The year on year increase in costs was, first and foremost, attributable to price increases for consumables and external services in connection with planned maintenance shutdowns. The decrease in costs from the previous quarter was due to seasonally lower payroll expenses and to less comprehensive maintenance shutdowns.

	Quarter						Nine months
	3-2018	3-2017	%	2-2018	%	2018	2017	%
Zinc, tonnes	120,841	114,991	5	124.732	-3	365,283	345,707	6
Copper, tonnes	88,669	87,434	1	89,621	$-1$	270,502	263,572	З
Lead, tonnes	14.738	16,560	$-11$	19,488	$-24$	55,139	57.184	$-4$
Nickel in matte. tonnes	7,486	7.409	1	7.528	$-1$	23,370	19,027	23
Gold, kg	4.022	4.391	-8	4.520	$-11$	12,995	13,444	-3
Silver, kg	133,520	136,080	-2	145,242	-8	414,102	413,804	$\circ$
Sulphuric acid, tonnes	412,152	411.287	O	390,429	6	1,207,843	1.203.990	O

Rönnskär's feed increased both quarter on quarter and year on year. Copper production was on a par with levels in both the second quarter and the previous year in spite of maintenance shutdowns and some technical process issues in the electrolysis. Gold production decreased, due to lower raw material grades.

Harjavalta's copper feed increased slightly in comparison with the second quarter, which was affected by maintenance shutdowns. The copper feed did, however, fall year on year due to problems while bringing the new sulphuric acid plant on line. Production of nickel in matte was both stable and high. Gold production decreased, both quarter on quarter and year on year, due to lower raw material grades and problems in the manufacturing process.

Kokkola's feed increased both quarter on quarter and year on year. Zinc production fell, however, in comparison with the second quarter due to low recovery levels, and was only slightly higher than levels of last year.

Feed and production at Odda increased, year on year, as a result of the expansion investment. Maintenance work on the roasting furnace did, however, mean that the feed was lower than in the previous quarter.

Lead production at Bergsöe was lower than in the previous quarter as maintenance shutdowns were carried out in the third quarter. Production also fell slightly from last year's levels due to start-up problems after the maintenance shutdown.

Planned maintenance shutdowns were carried out at Rönnskär and Bergsöe during the quarter. Collectively, the shutdowns impacted the profit by SEK -70 m (-50). No maintenance shutdowns are planned for the fourth quarter.

Sales during the first nine months of the year totalled SEK 39,912 m (35,912), with the increase primarily due to higher metal prices.

The operating profit, excluding revaluation of process inventory, increased to SEK 7,073 m (6,002). The improvement in the profit was due to higher metal prices and higher volumes, which were countered to some extent by higher costs. The item affecting comparability derives from the fire that occurred at Bergsöe in the first quarter. Planned maintenance shutdowns by Smelters were charged to the profit in the sum of SEK -200 m (-310).

	Nine months
SEK m	2018	2017
Operating profit	6,911	5,924
Revaluation of process inventory	$-163$	$-77$
Operating profit ex. revaluation of process inventory	7,073	6,002
Change		1,072
Analysis of change
Volumes		1,248
Prices and terms		667
Metal prices		1,347
By-product prices		128
Realised metal price and currency hedging		17
TC/RC terms		$-230$
Metal premiums		$-29$
Exchange rate effects		$-567$
Costs (local currencies)		$-545$
Depreciation		$-213$
Items affecting comparability		$-50$
Other		$-34$
Change		1,072

Net financial items totalled SEK -188 m (-217) and the net profit was SEK 5,334 m (4,608). The earnings per share were SEK 19.49 (16.84). Investments during the first nine months totalled SEK 4,127 m (3,721).

₂

The average number of Boliden employees (full-time equivalents) was 5,789 (5,605). The accident frequency for Boliden's own employees and contractors was 3.3 (6.2) during the third quarter. Proactive risk management, and an increased involvement in health and safety issues on the part of Boliden's employees, have helped bring about this positive trend.

Levels of carbon dioxide intensity and discharges of metals to water are on course to achieve the environmental goals by the end of 2018. Sulphur dioxide emissions are at an elevated level and measures have been taken. Measures have also been taken to reduce emissions of metals to air.

No serious environmental incident occurred during the quarter.

₂

¹ A serious occurrence that causes, or could potentially cause, significant environmental harm.

The Parent Company, Boliden AB, conducts limited operations and operates, for tax purposes, on commission from Boliden Mineral AB. Boliden AB has one employee who is remunerated by Boliden Mineral AB. The Income Statements and Balance Sheets for the Parent Company are presented on page 19.

On 16 October, Boliden completed the earlier announced sale to Ascot Resources of the mineral rights and other assets belonging to the Premier Gold mine in western Canada and has consequently received the previously announced sum in payment. The positive effect on the results for Q4 2018 is estimated at approximately SEK 35 m.

On 19 October, Boliden reached agreement with Komatsu regarding the purchase of 17 haul trucks for Kevitsa and 9 mine trucks for Aitik in an investment totalling approximately SEK 900 m. The investment is being made against the background of the ongoing expansion, insourcing of transports and as a replacement for part of the existing fleet of trucks. All of the trucks are equipped for future electrification and delivery will commence in mid-2019.

The Group's and the 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 56-59 of Boliden's 2017 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 the Swedish Annual Accounts Act, and for the Parent Company in accordance with the Swedish Annual Accounts Act. The accounting principles and calculation methods have remained unchanged from those applied in the 2017 Annual Report, other than with regard to the implementation of IFRS 9 Financial Instruments and IFRS 15 Revenues from Contracts with Customers, which came into force on 1 January 2018.

IFRS 9 Financial Instruments replaces IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 includes a model for the classification and valuation of financial instruments, a forward-looking depreciation model for financial assets, and a revised approach to hedge accounting. Classification and valuation under IFRS 9 are based on the business model that a company applies for the management of its financial assets and on the properties of the contractual cash flows from the financial assets. The amendment has, over and above certain naming changes, no effect on the classification of Boliden's financial instruments. A loss reserve shall be reported for all financial assets valued at the accrued historical cost. In Boliden's case, this applies to trade and other receivables. This loss reserve is not material for the Group.

IFRS 15 Revenues from Contracts with Customers, replaces existing standards and interpretations regarding revenues. The standard introduces a new model of income recognition and applies to all customer contracts. The new standard entails new starting points for the date from which revenue is recognised and requires evaluations by the company management that differ from those currently conducted. Boliden has conducted analyses of customer contracts in order to determine the effects on revenue recognition. Boliden's principal revenues derive from the sale of metals and the analyses have revealed that the freight in conjunction with certain freight terms and conditions may be regarded as a separate performance undertaking. Agreements of this type are limited in number and the sums involved are insignificant, and as such the freight will not be recognised separately from the sale. The conclusion of the analysis work is that the transition to IFRS 15 has no material effect on the Group's net sales in terms either of amount or of difference in periodicity. The accounting principles used for revenues and disclosures of the breakdown of external revenues is presented on page 21.

Boliden has for several years presented 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 financial metrics that Boliden uses and which are not defined in accordance with IFRS regulations are: 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. For definitions, explanations and calculations of the financial metrics used by Boliden, see www.boliden.com.

The undersigned declares that the Interim Report gives a true and fair overview of the Parent Company's and 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, 24 October 2018

Mikael Staffas President & CEO

• 13 February 2019 The fourth quarter and Year-End Report for 2018
• ¹³ 14 March 2019 Capital Market Days
• 3 May 2019 The Interim Report for the first quarter of 2019 and the Annual General Meeting, held in Boliden

19 July 2019 The Interim Report for the second quarter of 2019

Consolidated Income Statements

		Quarter			Nine months	12 months	Full year
SEK m	3-2018	3-2017	2-2018	2018	2017	Oct-Sep	2017
Revenues	12,510	11,628	14,071	39,912	35,912	53,531	49,531
Cost of goods sold	$-10,350$	$-9,461$	$-11.123$	$-31.728$	$-28.928$	$-41.787$	$-38,988$
Gross profit	2,159	2.167	2,948	8,184	6,984	11,743	10,543
Selling expenses	$-113$	$-105$	$-110$	$-328$	$-312$	$-433$	$-417$
Administrative expenses	$-128$	$-63$	$-198$	$-482$	$-343$	$-591$	$-452$
Research and development costs	$-164$	$-135$	$-187$	$-507$	$-432$	$-733$	$-659$
Other operating income and expenses	16	-6	14	43	24	14	$-6$
Results from participations in associated companies	$\bigcirc$		1	$\mathbf 1$	5	5	6
Operating profit	1,771	1,860	2,468	6,911	5,924	10,002	9,015
Financial income	O			2	2	4	4
Financial expenses	$-64$	$-71$	$-68$	$-190$	$-219$	$-253$	$-282$
Profit after financial items	1,707	1,790	2,401	6,723	5,707	9,752	8,737
Tax	$-422$	$-312$	$-363$	$-1,388$	$-1,099$	$-2,170$	$-1,881$
Net profit	1,285	1,478	2,038	5,334	4,608	7,582	6,856
Net profit attributable to:
Owners of the Parent Company	1,284	1,477	2,037	5,332	4,606	7,579	6,854
Non-controlling interests		1	1	3	5	З	5

Earnings and equity per share

		Quarter		Nine months		12 months	Full year
SEK m	3-2018	3-2017	2-2018	2018	2017	Oct-Sep	2017
Earnings per share 1, SEK	4.69	5.40	7.45	19.49	16.84	27.71	25.06
Ordinary dividend per share, SEK							8.25
Redemption per share, SEK			Section				5.75
Equity per share, SEK	136.25	118.86	132.27	136.25	118.86	136.25	128.13
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		Nine months		12 months	Full year
SEK m	3-2018	3-2017	2-2018	2018	2017	Oct-Sep	2017
Return on capital employed 1, %			$\sim$			22.8	21.0
Return on equity 2 , %			$\sim$		-	21.1	21.6
Equity/assets ratio, %	65	61	63	65	61	65	63
Net debt/equity ratio 3 , %	10	19	13	10	19	10	11
Net debt, SEK m	3.753	6.033	4.589	3.753	6.033	3,753	3.752

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		Nine months		12 months	Full year
SEK m	3-2018	3-2017	2-2018	2018	2017	Oct-Sep	2017
Profit for the period	1,285	1,478	2,038	5,334	4,608	7,582	6,856
Other comprehensive income
Items that will be reclassified to the Income Statement
Change in market value of derivative instruments	-2	6	6	6	$-18$	-2	$-26$
Fiscal effect on derivative instruments	O	$-1$	$-1$	$-1$	З	$\cup$	5
Transfers to the Income Statement		4	1	З	25	9	31
Tax on transfers to the Income Statement	O	$-1$	$\Omega$	-1	-5	-2	$-7$
Sum cash flow hedging	-1	7	5	6	4	5	з
The period's translation difference on overseas operations	$-211$	$-127$	253	810	$-52$	1.182	320
Profit on hedging of net investments in overseas operations	23	42	$-19$	$-123$	2	$-219$	$-94$
Tax on the period's profit from hedging instruments	-5	-9	4	27	$\cup$	48	21
Sum translation exposure	$-193$	-95	238	714	$-50$	1.011	247
Total items that will be reclassified	$-194$	-87	243	720	$-46$	1,016	250
Items that will not be reclassified to the Income Statement
Revaluation of defined benefit pension plans						$-12$	$-12$
Tax attributable to items that will not be reversed to the Income Statement						2	2
Total items that will not be reclassified						-9	-9
Total other comprehensive income	$-194$	-87	243	720	-46	1,007	241
Total comprehensive income for the period	1,091	1,391	2,281	6,055	4,562	8,589	7.096
Total comprehensive income for the period attributable to:
Owners of the Parent Company	1,090	1,390	2,280	6,052	4,560	8,586	7,094
Non-controlling interests	$\mathbf{1}$	1	1	З	2	З	2

Consolidated Balance Sheets

	30 Sep	30 Sep	31 Dec
SEK m	2018	2017	2017
Intangible assets	3,611	3,453	3,482
Property, plant and equipment	38,132	35,186	36,313
Participations in associated companies	30	28	29
Other shares and participations	19	30	30
Deferred tax assets	69	148	58
Long-term receivables	132	126	133
Total non-current assets	41,994	38,971	40,046
Inventories	10,405	9,021	9,500
Trade and other receivables	2,313	2,333	2,324
Tax receivables	14	24	71
Interest-bearing receivables	2	5	5
Derivative instruments	108	167	141
Other current receivables	983	1,080	1,288
Cash and cash equivalents	1,203	1,475	2,510
Total current assets	15,028	14,102	15,836
Total assets	57,022	53,073	55,882
Equity	37,276	32,519	35,053
Pension provisions	955	925	943
Other provisions	3,733	2,701	2,911
Deferred tax liabilities	3,001	3,014	3,089
Liability to credit institutions	3,290	5,286	4,004
Other interest-bearing liabilities	5	7	5
Total non-current liabilities	10,981	11,934	10,949
Liability to credit institutions	732	1,307	1,331
Other interest-bearing liabilities	O	1	5
Trade and other payables	4,847	3,695	4,426
Other provisions	226	245	226
Current tax liabilities	460	941	1,166
Derivative instruments	82	61	92
Other current liabilities	2,417	2,370	2,633
Total current liabilities	8,766	8,620	9,880
Total equity and liabilities	57,022	53,073	55,882

Consolidated Statement of Changes in Equity

	30 Sep	30 Sep	31 Dec
SEK m	2018	2017	2017
Opening balance	35,053	29,394	29,394
Total comprehensive income for the period	6.055	4.562	7.096
Dividend	$-2.256$	$-1.436$	$-1.436$
Redemption	$-1,573$
Closing balance	37.276	32,519	35,053
Total equity attributable to:
Owners of the Parent Company	37,265	32.510	35,044
Non-controlling interests	10	10	9

On 30 September 2018, the hedging reserve, after fiscal effects, was SEK 7 m (2).

Consolidated Statements of Cash Flow

		Quarter		Nine months		12 months	Full year
SEK m	3-2018	3-2017	2-2018	2018	2017	Oct-Sep	2017
Operating activities
Profit after financial items	1,707	1.790	2,401	6,723	5.707	9,752	8.737
Adjustments for items not included in the cash flow:
- Depreciation, amortisation and write-down of assets	1,203	1,128	1,233	3,711	3,364	4,952	4,601
- Provisions	4	1	1	9	0	14	5
- Revaluation of process inventory	249	$-116$	$-139$	163	77	$-17$	$-102$
- Other	-5	10	41	72	35	84	52
Tax paid/received	$-1.083$	$-264$	$-436$	$-2,139$	$-1,040$	$-2,556$	$-1.457$
Cash flow from operating activities before changes in working capital	2.075	2,550	3,101	8,538	8.144	12,230	11,837
Cash flow from changes in working capital	203	404	171	$-448$	336	116	900
Cash flow from operating activities	2,279	2.954	3,272	8,090	8,480	12,346	12,737
Investment activities
- Acquisition of intangible assets	-4	-6	$-12$	-20	-9	-30	-20
- Acquisition of property, plant and equipment	$-1.454$	$-1.235$	$-1.544$	$-4.104$	$-3.712$	$-5,960$	$-5.575$
- Disposal of property, plant and equipment			0			O	6
- Acquisition/disposal of financial assets	2	1	5	4	168	$-4$	160
Cash flow from investment activities	$-1.456$	-1.240	$-1,554$	$-4,119$	$-3.553$	$-5,994$	-5,428
Cash flow before financing activities (free cash flow)	822	1,715	1,718	3,970	4,927	6,352	7,309
Dividend			$-3,829$	$-3,829$	$-1,436$	$-3,829$	$-1,436$
Loans raised	595			2,270	1.139	2.274	1.143
Amortisation of loans	$-1,611$	$-1.945$	$-1.499$	$-3,721$	$-4,658$	$-5,074$	$-6,011$
Cash flow from financing activities	$-1,016$	$-1.945$	$-5,328$	$-5,280$	$-4,955$	$-6,629$	$-6,304$
Cash flow for the period Cash and cash equivalents at the beginning of	-194	-230	$-3,611$	$-1,310$	-28	$-277$	1,005
the period	1,398	1,706	5,008	2,510	1,503	1,475	1,503
Exchange rate difference on cash and cash equivalents	$-1$	$-1$	1	3	$\circ$	5	1
Cash and cash equivalents at period-end	1,203	1.475	1,398	1,203	1.475	1,203	2.510

Income Statements - the Parent Company

	Quarter			9 months		12 months	Full year
SEK m	3-2018	3-2017	2-2018	2018	2017	Oct-Sep	2017
Dividends from subsidiaries			6,000	6,000		9.000	3,000
Write-downs of participations in Group companies
Profit after financial items			6.000	6,000	$\blacksquare$	9.000	3,000
Tax			$\overline{\phantom{a}}$		۰
Profit for the period			6.000	6,000		9.000	3,000

The Parent Company, Boliden AB, conducts limited operations and operates, for tax purposes, on commission from Boliden Mineral AB. Boliden AB has one employee who is remunerated by Boliden Mineral AB. Boliden AB had no sums to report under Other Comprehensive Income for the third quarter of 2018.

Balance Sheets - the Parent Company

	30 Sep	30 Sep	31 Dec
SEK m	2018	2017	2017
Participations in Group companies	3.911	3.911	3.911
Other shares and participations	5	5	5
Long-term financial receivables, Group companies	11,068	5,898	8,897
Current financial receivables, Group companies	495	518	519
Total assets	15,480	10,333	13,333
Equity	14.485	9.315	12,314
Long-term liabilities to credit institutions	500	500	500
Current liabilities to credit institutions	495	518	519
Total liabilities and equity	15,480	10,333	13,333

30 Sep 2018, SEK m	Reported value	Fair value
Other shares and participations	19	19
Trade and other receivables	2,313	2.313
Interest-bearing receivables	2	2
Derivative instruments	108	108
Cash and cash equivalents	1,203	1,203
Total assets	3,645	3,645
Liabilities to credit institutions	4,023	4,027
Other interest-bearing liabilities	3	З
Trade and other payables	4,847	4,847
Derivative instruments	82	82
Total liabilities	8,955	8,959

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 locations of metal derivatives, i.e. the London Metal Exchange (LME) and the London Bullion Market Association (LBMA). Discount rates are based on current market prices 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 September 2018, 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 instrument 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.

Sales of metal concentrates, metals, intermediate products and by-products are reported upon delivery to the customer in accordance with the terms of the sale, i.e. the revenue is recognised in conjunction with control passing to the purchaser.

Preliminary invoices for the Group's metal concentrates are raised in conjunction with delivery. Definitive invoicing occurs when all component parameters (concentrate, quantity, metal content, impurity content, and metal price for the agreed pricing period, which is normally the average price in the month after the delivery month on the LME) have been established.

Customer invoices for the Group's metals and intermediate products are raised in conjunction with delivery. The Group eliminates the price risk in conjunction with sales and purchases of metals by means of the daily hedging of the difference between quantities purchased and sold.

Customer invoices for the Group's by-products are raised in conjunction with the transfer of control, which occurs in conjunction with delivery.

	Kvartal
	Mines		Smelters		Other		The Group
SEK m	3-2018	3-2017	3-2018	3-2017	$3-2018$	3-2017	3-2018	3-2017
Finished metals		$\sim$	10,458	10,007		$\overline{\phantom{a}}$	10.458	10,007
Metal in concentrate	579	224		$\sim$		٠	579	224
Intermediates			1,155	1,162		$\overline{\phantom{a}}$	1,155	1,162
By-products			271	214		$\overline{\phantom{a}}$	271	214
Strategic hedges		-3		٠				-3
Other sales		O	47	23	$-1$	$\overline{\phantom{a}}$	46	23
Total external revenues	579	221	11,931	11,406	$-1$	о	12,510	11,628

	Nine months
	Mines			Smelters		Other		The Group
SEK m	2018	2017	2018	2017	2018	2017	2018	2017
Finished metals		۰	33,759	30,820		-	33,759	30,820
Metal in concentrate	1.353	1.244		$\sim$		۰	1.353	1,244
Intermediates		$\overline{\phantom{0}}$	3,855	3,220		$\overline{\phantom{a}}$	3.855	3,220
By-products	О	$\overline{\phantom{a}}$	827	598	$\bigcirc$	$\overline{\phantom{a}}$	827	598
Strategic hedges		$-17$		$\sim$	$\sim$	۰		$-17$
Other sales		O	118	46	$-1$	O	117	46
Total external revenues	1,353	1,227	38,559	34,685	$-1$	о	39,912	35,912

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 September 2018 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	780	TC/RC Copper	65	USD/SEK	1.550
Copper	805	TC Zinc	55	EUR/USD	1,005
Gold	295	TC Lead	$-10$	USD/NOK	130
Silver	150
Lead	110
Nickel	130

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.

Quarterly data per segment

SEK m	4-2016	1-2017	2-2017	3-2017	4-2017	1-2018	2-2018	3-2018
THE GROUP
Revenues	12,137	12,730	11,554	11,628	13,619	13,331	14,071	12,510
Operating expenses	3,667	3,469	3,634	3,267	3,737	3,655	3,965	3,606
Depreciation	1,147	1,092	1,142	1,127	1,241	1,269	1,223	1,217
Operating profit ex. revaluation of process inventory	2,106	2,061	2,196	1.744	2,912	2,724	2,329	2,020
Operating profit	2,353	2,149	1,916	1,860	3,091	2,672	2,468	1,771
Investments	1,343	1,096	1,385	1,240	1,867	1,109	1,561	1,457
Acquisitions	$-18$	$\overline{\phantom{a}}$	$\sim$		$\blacksquare$	$\blacksquare$
Capital employed	42,457	43,093	42,630	42,335	42,931	44,292	44,817	44,406
MINES
Revenues	4,211	4,315	4,415	4,175	5,291	4,734	5,251	3,941
Gross profit	4,112	4,273	4,463	4.138	5,316	4,920	5,178	4,010
Operating expenses	2,111	1,928	2,033	1,842	2,143	2,059	2,215	2,002
Depreciation	874	820	872	854	941	936	912	919
Operating profit	1,136	1,525	1,555	1,421	2,179	1,931	2,044	1,091
Investments	923	755	889	815	1,264	878	1,123	1,158
Acquisitions	$-18$	$\ddot{\phantom{1}}$	$\overline{\phantom{a}}$			$\Box$
Capital employed	24,972	25,208	25,375	24,975	25,502	26,065	25,686	25,546
SMELTERS
Revenues	11,225	12,361	10,893	11.401	13,036	12,956	13,656	11,934
Gross profit ex. revaluation of process inventory	2,764	2,577	2,389	2,224	2,587	2,518	2,622	2,456
Operating expenses	1,468	1,478	1,583	1,399	1,544	1,553	1,701	1,583
Depreciation	272	272	269	272	300	333	311	297
Operating profit ex. revaluation of process inventory	1,094	835	563	568	766	640	630	589
Operating profit	1,341	922	283	684	945	587	769	340
Investments	420	341	495	425	602	231	437	298
Capital employed	17,838	18,568	17.673	17,957	18,018	18,613	19,761	19,067
OTHER/ELIMINATIONS
Revenues	$-3,299$	$-3,946$	$-3,753$	$-3,948$	$-4,708$	$-4,359$	$-4,837$	$-3,366$
Operating expenses	89	63	17	27	50	44	49	20
Operating profit, internal profit	-56	$-260$	118	$-218$	16	198	$-297$	361
Operating profit, other	-68	$-39$	$-40$	$-28$	$-50$	$-44$	-49	$-21$
Investments	O		5	O	2	1	O	1
Capital employed	$-354$	-683	$-418$	$-597$	$-589$	-386	-630	$-208$

Consolidated quarterly data

2018

	4-2016	1-2017	2-2017	3-2017	4-2017	1-2018	2-2018	3-2018
Financial performance 1 , the Group
Revenues, SEK m	12,137	12,730	11,554	11,628	13,619	13,331	14.071	12,510
Operating profit before depreciation, SEK m	3,500	3,241	3,058	2,987	4,332	3,941	3,691	2,988
Operating profit ex. revaluation of process
inventory, SEK m	2,106	2,061	2,196	1,744	2,912	2,724	2,329	2,020
Operating profit, SEK m	2,353	2,149	1,916	1,860	3,091	2,672	2,468	1,771
Profit after financial items, SEK m	2,267	2,075	1,843	1,790	3,030	2,614	2,401	1,707
Net profit, SEK m	1,827	1,669	1,461	1,478	2,248	2,011	2,038	1,285
Earnings per share, SEK	6.68	6.10	5.34	5.40	8.22	7.35	7.45	4.69
Free cash flow, SEK m	1,692	1,060	2,152	1.715	2,382	1,431	1,718	822
Net debt/equity ratio, %	35	27	25	19	11	6	13	10
Production of metal in concentrate 2
Zinc, tonnes	79,100	77,139	80,421	69,616	78,082	77,626	70,760	70,612
Copper, tonnes	30,423	29,650	38,229	33,702	41,535	36,900	34,300	34,496
Nickel, tonnes	3,341	3,340	3,519	3,468	3,450	3,523	3,777	3,647
Lead, tonnes	15,721	14,868	15,066	12,880	16,741	13,882	13,180	14,201
Cobalt, tonnes	143	141	144	150	152	190	190	252
Gold, kg	1,737	1,702	1,856	1,650	2,029	1,911	1,768	1,835
Gold, troy oz.	55,832	54,732	59,683	53,033	65,217	61,430	56,834	58,992
Silver 3 , kg	120,702	104,450	111,197	89,741	107,850	121,334	97,324	100,987
Silver 3 , 'OOO troy oz.	3,881	3,358	3,575	2,885	3,467	3,901	3,129	3,247
Palladium, kg	285	234	276	260	251	276	322	304
Platinum, kg	392	326	371	365	355	380	443	415
Tellurium, kg	13,088	11,251	7,186	8,824	7,718	12,021	11,382	8,053
Metal production, Smelters
Zinc, tonnes	115,580	115,248	115,468	114,991	111,371	119,710	124,732	120,841
Copper, tonnes	88,980	88,708	87,430	87,434	89,088	92,212	89,621	88,669
Lead, tonnes	7,408	6,049	7,561	7,524	7,131	7,317	6,745	7,300
Lead alloys, tonnes (Bergsöe)	13,465	14,061	12,953	9,036	13,926	13,596	12,743	7,438
Nickel in matte, tonnes	7,793	7,579	4,038	7,409	6,443	8,356	7,528	7,486
Gold, kg	3,888	4,902	4,150	4,391	4,332	4,452	4,520	4,022
Gold, troy oz.	124,992	157,609	133,417	141,186	139,290	143,145	145,315	129,323
Silver, kg	164,800	143,764	133,960	136,080	137,482	135,340	145,242	133,520
Silver, 'OOO troy oz.	5,298	4,622	4,307	4,375	4,420	4,351	4,670	4,293
Sulphuric acid, tonnes	434,490	423,535	369,168	411,287	408,673	405,262	390,429	412,152
Aluminium fluoride, tonnes	6,600
Metal prices in USD, average per quarter
Zinc, USD/tonne	2,517	2,780	2,596	2,963	3,236	3,421	3,112	2,537
Copper, USD/tonne	5,277	5,831	5,662	6,349	6,808	6,961	6,872	6,105
Lead, USD/tonne	2,149	2,278	2,161	2,334	2,492	2,523	2,388	2,104
Nickel, USD/tonne	10,810	10,271	9,225	10,528	11,584	13,276	14,476	13,266
Gold, USD/troy oz.	1,222	1,219	1,257	1,278	1,277	1,331	1,306	1,213
Silver, USD/troy oz.	17.19	17.42	17.21	16.84	16.73	16.77	16.53	15.02
Metal prices in SEK, average per quarter
Zinc, SEK/tonne	22,755	24,806	22,842	24,106	26,910	27,733	26,982	22,706
Copper, SEK/tonne	47,715	52,033	49,812	51,659	56,615	56,427	59,579	54,634
Lead, SEK/tonne	19,432	20,325	19,012	18,992	20,726	20,451	20,701	18,831
Nickel, SEK/tonne	97,740	91,649	81,165	85,665	96,323	107,623	125,499	118,719
Gold, SEK/troy oz.	11,048	10,879	11,063	10,399	10,619	10,788	11,325	10,859
Silver, SEK/troy oz.	155.46	155.45	151.43	136.99	139.09	135.98	143.33	134.37
Exchange rates, average per quarter
USD/SEK	9.04	8.92	8.80	8.14	8.32	8.11	8.67	8.95
EUR/USD	1.08	1.07	1.10	1.17	1.18	1.23	1.19	1.16
EUR/SEK	9.76	9.51	9.69	9.56	9.79	9.96	10.33	10.41
USD/NOK	8.37	8.44	8.52	7.96	8.16	7.84	8.02	8.24

1 For definitions, see www.boliden.com.
2 Refers to metal content in concentrates.

3 Includes silver production at Tara that is not payable.

Quarterly data per unit - Mines

	4-2016	1-2017	2-2017	3-2017	4-2017	1-2018	2-2018	3-2018
AITIK
Milled ore, Ktonnes	9,584	9,251	10,389	9,292	10,114	8,359	9,305	10,784
Head grades
Copper, %	0.23	0.23	0.29	0.27	0.32	0.36	0.28	0.25
Gold, g/tonne	0.11	0.13	0.14	0.12	0.14	0.16	0.13	0.14
Silver, g/tonne	1.87	1.98	2.33	1.78	1.79	2.65	1.68	1.54
Production of metal in concentrate
Copper, tonnes	19,453	18,820	26,792	22,334	29,627	26,991	23,462	24,691
Gold, kg	584	652	788	598	862	748	720	866
Gold, troy oz.	18,761	20,948	25,320	19,224	27,707	24,048	23,152	27,838
Silver, kg	14,542	12,640	19,843	13,666	15,714	17,269	12,838	12,554
Silver, 'OOO troy oz.	468	406	638	439	505	555	413	404
THE BOLIDEN AREA
Milled ore, Ktonnes	503	552	555	524	434	509	447	521
Of which, smelter slag	75	77	72	60	54	54	53	47
Head grades
Zinc, %	4.1	3.7	4.7	3.7	3.8	4.2	3.3	3.2
Copper, %	O.4	O.3	0.4	0.3	O.4	O.4	0.3	O.4
Lead, %	O.4	0.4	0.5	O.4	0.4	0.5	0.3	O.3
Gold, g/tonne	1.8	1.8	2.0	1.9	2.0	2.2	1.8	1.4
Silver, g/tonne	54	59	62	49	60	68	46	48
Tellurium, g/tonne	46	42	26	35	37	43	41	40
Production of metal in concentrate
Zinc, tonnes	16,427	16,017	20,611	15,465	13,409	17,589	12,122	13,512
Copper, tonnes	1,440	1,157	1,590	1,124	1,260	1,243	1,017	1,302
Lead, tonnes	764	806	1,095	710	786	1,131	455	749
Gold, kg	689	610	624	625	618	767	600	511
Gold, troy oz.	22,141	19,609	20,046	20,078	19,882	24,652	19,286	16,438
Silver, kg	24,716	22,014	23,526	17,009	18,232	25,633	13,968	17,104
Silver, 'OOO troy oz.	795	708	756	547	586	824	449	550
Tellurium, kg	13,088	11,251	7,186	8,824	7,718	12,021	11,382	8,053
TARA
Milled ore, Ktonnes	675	615	532	578	587	537	585	520
Head grades
Zinc, %	5.6	6.0	6.1	5.8	5.7	7.7	$6.6\,$	5.5
Lead, %	1.1	1.2	1.2	1.1	1.1	1.4	1.3	1.0
Production of metal in concentrate
Zinc, tonnes	35,793	35,376	30,894	32,098	32,212	39,610	36,514	27,175
Lead, tonnes	4,351	5,119	3,807	4,023	4,134	5,077	4,867	2,947
Silver 1 , kg	257	531	302	292	219	245	345	240
Silver 1, 'OOO troy oz.	8,263	17,072	9,703	9,394	7,041	7,877	11,092	7,716

1 Silver production at Tara is not payable.

Quarterly data per unit - Mines

	4-2016	1-2017	2-2017	3-2017	4-2017	1-2018	2-2018	3-2018
GARPENBERG
Milled ore, Ktonnes	681	637	672	631	695	646	670	676
Head grades
Zinc, %	4.1	4.2	4.5	3.7	4.9	3.4	3.5	4.7
Copper, %	O.1	0.1	0.1	0.0	O.1	O.1	0.0	O.1
Lead, %	1.9	1.7	1.8	1.6	2.0	1.4	1.4	1.8
Gold, g/tonne	0.3	0.3	O.3	0.2	0.3	0.3	0.3	0.2
Silver, g/tonne	155	143	131	121	137	153	134	135
Production of metal in concentrate
Zinc. tonnes	26,421	25,326	28,409	21,589	32,171	20,251	21,688	29,733
Copper, tonnes	183	202	174	149	243	175	163	171
Lead, tonnes	10,606	8,943	10,164	8,147	11,820	7,675	7,858	10,505
Gold, kg	156	145	126	100	169	136	153	115
Gold, troy oz.	5,008	4,673	4,056	3,228	5,449	4,381	4,932	3,707
Silver, kg	80,655	68,885	67,047	58,341	73,275	77,919	69,671	70,822
Silver, 'OOO troy oz.	2,593	2,215	2,156	1,876	2,356	2,505	2,240	2,277
KEVITSA
Milled ore, Ktonnes	1,943	1,959	1,917	2,026	2,010	1,886	1,881	1,900
Head grades
Copper, %	0.38	0.40	0.40	0.43	0.44	0.41	0.42	0.39
Nickel, %	0.25	0.24	0.26	0.25	0.25	0.25	0.28	0.28
Cobalt, g/tonne	0.01	0.02	0.01	0.01	0.01	0.01	0.01	0.01
Gold, g/tonne	0.15	0.15	0.15	0.16	0.17	0.15	0.16	0.15
Palladium, g/tonne	0.21	0.19	0.22	0.20	0.20	0.23	0.25	0.23
Platinum, g/tonne	0.31	0.29	0.33	0.32	0.33	0.36	0.40	0.38
Production of metal in concentrate
Copper, tonnes	6,596	7,017	6,894	7,966	8,080	7,065	7,197	6,838
Nickel, tonnes	3,341	3,340	3,519	3,468	3,450	3,432	3,697	3,478
Cobalt, tonnes	143	141	144	150	152	146	152	149
Gold, kg	162	147	153	172	175	155	166	167
Gold, troy oz.	5,197	4,727	4,933	5,519	5,611	4,990	5,340	5,379
Palladium, kg	285	234	276	260	251	276	322	304
Palladium, troy oz.	9.170	7,537	8,880	8,362	8,058	8,889	10,338	9,784
Platinum, kg	392	326	371	365	355	380	443	415
Platinum, troy oz.	12,605	10,481	11,940	11,749	11,403	12,223	14,229	13,351
KYLYLAHTI
Milled ore, Ktonnes	209	204	200	199	205	176	208	197
Head grades
Zinc, %	0.5	0.5	0.5	0.5	0.5	0.4	0.5	0.4
Copper, %	1.4	1.3	1.5	1.2	1.2	0.9	1.3	0.8
Copper, %			$\overline{\phantom{a}}$		$\overline{a}$	0.2	0.2	0.2
Nickel, %	$\overline{\phantom{a}}$	$\blacksquare$	$\overline{\phantom{a}}$	$\sim$	$\overline{\phantom{a}}$	0.2	0.2	0.2
Gold, g/tonne	1.0	1.0	1.0	1.0	1.2	O.8	O.8	1.1
Production of metal in concentrate
Zinc, tonnes	459	421	506	464	290	177	436	192
Copper, tonnes	2,751	2,455	2,779	2,128	2,325	1,425	2,461	1,493
Nickel, tonnes			$\overline{\phantom{a}}$			91	79	169
Cobalt, tonnes	÷,	$\overline{a}$	$\sim$	$\blacksquare$	$\blacksquare$	44	38	104
Gold, kg	147	149	166	155	204	104	128	175
Gold, troy oz.	4,725	4,776	5,328	4,984	6,569	3,359	4,123	5,630

Quarterly data per unit - Smelters

	4-2016	1-2017	2-2017	3-2017	4-2017	1-2018	2-2018	3-2018
RÖNNSKÄR
Feed, tonnes
Copper
Copper concentrate	163,555	166,460	158,538	140,103	166,007	162,283	163,418	168,100
Secondary raw materials	43,703	48,421	40,934	45,585	45,358	42,641	40,464	41,133
Of which, electronics	19,177	20,982	18,357	17,522	20,435	19,415	21,900	22,896
Copper, total	207,258	214,881	199,472	185,688	211,365	204,924	203,882	209,233
Lead
Lead concentrate	13,057	9,368	10,099	8,931	10,716	11,777	8,451	10,735
Secondary raw materials	168	247	148	447	1,216	476	426	423
Lead, total	13,225	9,615	10,247	9,378	11,932	12,253	8,877	11,158
Production
Cathode copper, tonnes	56,132	56,015	54,051	53,910	55,486	57,021	54,681	54,191
Lead, tonnes	7,408	6,049	7,561	7,524	7,131	7,317	6,745	7,300
Zinc clinker, tonnes	9,398	8,994	6,474	9,700	9,106	8,956	7.774	6,195
Gold, kg	3,279	3,518	2,868	3,401	3,323	3,375	3.575	3,316
Gold, troy oz.	105,407	113,103	92,206	109,329	106,831	108,497	114,946	106,609
Silver, kg	145,200	127,204	118,600	121,200	117,902	120,700	123,602	116,200
Silver, '000 troy oz.	4,668	4,090	3,813	3,897	3,791	3,881	3,974	3,736
Sulphuric acid, tonnes	136,987	134,710	122,464	118,289	130,000	125,433	130,301	129,212
BERGSÖE
Feed, tonnes
Battery raw materials	19,151	20,011	17,591	12,726	19,971	19,198	17,943	11,926
Production, tonnes
Lead alloys	13,465	14,061	12,953	9,036	13,926	13,596	12,743	7,438

Quarterly data per unit - Smelters

	4-2016	1-2017	2-2017	3-2017	4-2017	1-2018	2-2018	3-2018
HARJAVALTA
Feed, tonnes
Copper
Copper concentrate	140,771	137,213	115,708	147,180	142.495	136,835	123,373	130,340
Secondary raw materials	8.624	5,811	5,900	6,534	5,360	4.710	6,697	6,323
Copper, total	149,396	143,023	121,608	153,714	147.854	141,544	130,070	136,663
Nickel concentrate	80,245	76,881	40,788	73,560	67,936	74,314	68,849	72,813
Production
Cathode copper, tonnes	32,847	32,693	33,379	33,524	33,602	35,191	34,940	34,478
Nickel in matte	7,793	7,579	4,038	7,409	6,443	8,356	7,528	7,486
Gold, kg	609	1,384	1,282	991	1,010	1,078	945	706
Gold, troy oz.	19,585	44,506	41,211	31,857	32,459	34,648	30,369	22,714
Silver, kg	19,600	16,560	15,360	14,880	19,580	14,640	21,640	17,320
Silver, '000 troy oz.	630	532	494	478	630	471	696	557
Sulphuric acid, tonnes	181,630	181,471	139,105	183,566	173,355	170,454	159,339	166,873
KOKKOLA
Feed, tonnes
Zinc concentrate	135,342	135,475	138,678	142,335	149,192	141,573	141,423	146,598
Production, tonnes
Zinc	68,718	70,556	69,321	69,904	75,211	71,421	75,693	71,707
Silver in concentrate, kg	4,552	5,503	3,916	3,986	4,783	4,945	2,529	4,454
Silver in concentrate, 'OOO troy oz.	146	177	126	128	154	159	81	143
Sulphuric acid	82,963	81,713	76,393	80,964	86,598	78,256	71,516	87,433
ODDA
Feed, tonnes
Zinc concentrate, incl. zinc clinker	95,102	84,674	96,276	87,035	69,584	93,331	95,426	90,855
Production, tonnes
Zinc	46,862	44,692	46,147	45,087	36,160	48,289	49,039	49,134
Aluminium fluoride	6,600
Sulphuric acid	32,910	25,642	31,205	28,468	18,720	31,119	29,273	28,634

Johanna wants to save lives. She couldn't without metals.

Devoted people, advanced healthcare and medical research all play a vital role in the development of modern society. Much of this development is dependent on metals, which are used in medical equipment, hygiene solutions and protection against radiation. Johanna is ready to do her part, and so are our metals.

$m$

Au

$\overline{\mu}$

$A$