Boliden — Interim / Quarterly Report 2018

Jul 20, 2018

		Quarter			Six months		12 months Full year
SEK m		2-2018 2-2017	1-2018	2018	2017	Jul-Jun	2017
Revenues	14.071		11.554 13.331		27,402 24,284	52.648	49.531
Operating profit ex. revaluation of process inventory	2.329	2.196	2,724	5.053	4.258	9.709	8,913
Operating profit	2.468	1.916	2,672	5.139	4,065	10,090	9,015
Profit after financial items	2,401	1,843	2,614	5.015	3,917	9.835	8,737
Net profit	2.038	1.461	2,011	4.049	3,129	7.776	6.856
Earnings per share, SEK	7.45	5.34	7.35	14.80	11.44	28.42	25.06
Free cash flow	1.718	2.152	1,431	3.148	3.212	7.245	7.309
Net debt	4.589	7.773	2,451	4.589	7.773	4.589	3.752
Return on capital employed, %					$\blacksquare$	23.2	21.0
Return on equity, %					$\blacksquare$	22.4	21.6
Net debt/equity ratio, %	13	25	6	13	25	13	11

• The operating profit, excluding revaluation of process inventory, was SEK 2,329 m (2,196).
• The free cash flow totalled SEK 1,718 m (2,152).
• The net debt/equity ratio increased during the quarter from 6 to 13% due to paid dividend and share redemption.
• Prices and terms continued to be favourable.
• New crusher in Aitik is in operation.

Revenues increased to SEK 14,071 m (11,554), primarily due to higher metal prices.

		Quarter
SEK m	2-2018	2-2017	1-2018
Operating profit	2,468	1,916	2,672
Revaluation of process inventory	139	-280	-53
Operating profit ex. revaluation of process inventory	2,329	2,196	2,724
Change		132	-396
Analysis of change
Volumes		$-290$	$-371$
Prices and terms		721	149
Metal prices		1,122	$-188$
By-product prices		46	23
Realized metal and currency hedge		7
TC/RC terms		$-104$	$-47$
Metal premiums		$-20$	9
Exchange rate effects		$-330$	351
Costs (local currencies)		$-222$	$-244$
Depreciation		$-54$	14
Items affecting comparability			50
Other		$-21$	8
Change		132	-396

		Quarter		Six months
SEK m	2-2018	2-2017	1-2018	2018	2017
Mines	2.044	1.555	1.931	3.975	3,080
Smelters	630	563	640	1.270	1.398
Other/eliminations	$-346$	78	154	$-193$	$-221$
The Group	2,329	2,196	2,724	5,053	4,258

The operating profit, excluding revaluation of process inventory, increased to SEK 2,329 m (2,196). The year on year improvement was primarily due to improved prices and terms. Mines' production decreased mainly due to lower grades, while increased process stability resulted in higher production by Smelters. Costs increased, largely due to higher prices for energy and consumables, and to salary increases.

The operating profit, excluding revaluation of process inventory, decreased from the previous quarter. Grades at Aitik and Tara fell from the exceptionally high levels noted in the previous quarter. Costs increased due to maintenance in Smelters and higher milled volumes in Mines.

The profit after financial items was SEK 2,401 m (1,843), and the net profit was SEK 2,038 m (1,461), corresponding to earnings per share of SEK 7.45 (5.34). The return on capital employed and equity for the previous 12 months was 23.2 and 22.4%, respectively. The net profit was positively affected by the revaluation of deferred tax.

Investments for the quarter totalled SEK 1,561 m (1,385). The largest investments included a new crusher at Aitik and a new sulphuric acid plant at Harjavalta. Estimated investments for 2018 total slightly in excess of SEK 6 billion.

		Quarter		Six months		12 months	Full year
SEK m	2-2018	2-2017	1-2018	2018	2017	Jul-Jun	2017
Cash flow from operating activities before change in
working capital	3,101	2.994	3,362	6,463	5,595	12,705	11.837
Change in working capital	171	541	-823	$-652$	-69	317	900
Cash flow from operating activities	3.272	3.535	2,539	5.811	5.526	13,022	12.737
Cash flow from investment activities	$-1.554$	$-1.383$	$-1.108$	$-2.663$	$-2.313$	$-5.777$	$-5.428$
Free cash flow	1,718	2.152	1.431	3,148	3,212	7,245	7.309

The free cash flow totalled SEK 1,718 m (2,152). The reduction in cash flow was primarily due to increased investments and increases in tax paid.

Net financial items during the quarter totalled SEK -66 m (-74). The average interest on loans was 1.2% (1.3).

Boliden's net debt at the end of the quarter was SEK 4,589 m (7,773) and the net debt/equity ratio was 13% (25). The paid dividend and the redemption of own shares totalled SEK 3,829 m (1,436) during the quarter. The average term of total approved loan facilities at the period end was 3.8 years (2.9) and the fixed interest term on utilised loans was 0.3 years (0.5). 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 9,194 m (7,155).

The current Swedish corporation tax rate of 22% will be reduced to 21.4% as of 2019, and 20.6% as of 2021. As a consequence of this decision, Boliden has revalued its deferred tax liabilities/receivables. The revaluation resulted in a positive effect of approx. SEK 140 m and is included in the tax expense for the second quarter.

Boliden, together with 11 banks, has signed a syndicated credit agreement totalling EUR 770 m. The two facilities under the terms of the credit agreement comprise EUR 408 m over 5 years and EUR 362 m over 3 years, thereby extending existing facilities for the same amounts and which mature in 2021 and 2019. The Facilities also include two additional one-year extension options. Boliden's total credit facilities now consist of almost SEK 13.7 billion as a result of this new agreement. The facilities include a multicurrency option and are intended, in part, to function as back-up facilities.

In May 2018, the Land and Environment Court issued a ruling on the future reclamation of the Aitik mine in which the Court, amongst other things, increased the collateral requirement from SEK 1.8 billion to SEK 2.9 billion. As a result of this ruling, both the reclamation provision and the reclamation assets for Aitik have been increased by the discounted difference which totals SEK 0.8 billion. The adjustment does not affect the result for the quarter, but depreciation will be increased by SEK 30 m per year for the remainder of the mine's lifespan. The ruling has been appealed.

The quarter was characterised by financial markets' concerns about new trade barriers and the ways in which they will affect global economic growth. Industrial production continued, however, to grow strongly during the second quarter. Growth in Europe fell slightly from levels in the previous quarter, but remained high and stable in both the USA and China. Construction sector investments increased, and global automotive production grew at a higher rate than in the previous quarter.

Zinc and lead prices in USD were lower than in the previous quarter, while the price of copper remained effectively unchanged and the price of nickel rose. Precious metal prices were slightly down on the previous quarter but were higher than in the corresponding quarter of the previous year, with the exception of silver. The USD strengthened from the previous quarter's levels and metal prices in SEK, with the exception of zinc, were consequently higher.

	Quarter			Six months
	2-2018	2-2017	1-2018	2018	2017
Zinc, USD/tonne	3.112	2.596	3.421	3,268	2,690
Copper, USD/tonne	6.872	5.662	6.961	6.917	5.749
Nickel, USD/tonne	14,476	9.225	13,276	13,871	9.761
Lead, USD/tonne	2,388	2.161	2.523	2.456	2.221
Gold, USD/troz	1.306	1.257	1.331	1.319	1.238
Silver, USD/troz	16.5	17.2	16.8	16.7	17.3
USD/SEK	8.67	8.80	8.11	8.38	8.86
EUR/SEK	10.33	9.69	9.96	10.14	9.59

Global metal demand saw a modest increase in growth. China's manufacturing industry has shut down or reduced production in the wake of environmental audits, which had a negative effect on demand for zinc. Demand in China increased, however, by just over 2.5%, while demand remained unchanged in mature economies from levels in the second quarter of last year.

Mined production increased by just over 4%, year on year. Production increased by 2.0% in China and by just under 5.5% in the rest of the world. Mined concentrate availability increased, as did metal production by smelters. Maintenance shutdowns at several smelters during the period meant, however, that the shortage of metal continued. Global concentrate inventory increased slightly from a low level and spot market treatment charges showed a modest rise. The European metal market remained balanced and spot market metal premiums were marginally lower than in the previous quarter.

The benchmark level for 2018 contract treatment charges was set at USD 147 (172) per tonne of mined concentrate, independent of metal price trends.

Global metal demand increased, year on year, by just under 4%. Demand continued to show substantial growth in both emerging markets and mature economies.

Smelter production fell, year on year, due to production disruptions and capacity closures in India. Production in mines that use direct leaching to produce finished metals increased, however, and global metal production consequently increased. There was, nonetheless, a shortage of metal that was covered by stockpiles. Metal and scrap raw material availability continued to be good in Europe and spot market metal premiums were stable.

The scale of disruptions in mines producing mined concentrate increased and the increase in production was, therefore, only modest in comparison with the second quarter of last year. Spot market concentrate availability increased, however, during the quarter due to disruptions of production in the smelting industry, and treatment charges rose.

24.000
20.000
16.000
12.000
8.000
4,000
	13 12 13 16 17 13 12 13 16 17

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

Global production of stainless steel continued to increase substantially as new production capacity came on line in Indonesia and production increased in China. Global demand for nickel increased year on year by 12%.

Production of low-grade ferro nickel, known as nickel pig iron, continued to increase sharply in Indonesia and also increased, year on year, in China. Global production of nickel metal continued to fall short of demand and the levels of nickel inventories fell on the metal exchanges. Inventory levels have fallen significantly since the beginning of 2016, but are still high.

Precious metal prices have remained stable during the quarter.

European spot market sulphuric acid prices rose in comparison with the previous quarter and demand in northern Europe remained high.

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.

• Grades at Aitik and Tara were lower than in the first quarter
• The new crusher at Aitik is in operation
• Operating profit: SEK 2,044 m (1,555)

		Quarter			Six months
SEK m	2-2018	2-2017	1-2018	2018	2017
Revenues	5,251	4.415	4.734	9,985	8.729
Gross profit	5.178	4.463	4.920	10,098	8,736
Operating expenses	2.215	2.033	2.059	4.274	3,961
Depreciation	912	872	936	1.848	1,692
Operating profit	2.044	1.555	1.931	3.975	3,080
Investments	1.123	889	878	2,001	1.643
Capital employed	25,686	25,375	26,065	25,686	25,375

		Quarter
SEK m	2-2018	2-2017	1-2018
Operating profit	2,044	1,555	1,931
Change		489	114
Analysis of change
Volumes		$-131$	47
Prices and terms		788	162
Metal prices		874	$-174$
Realized metal and currency hedge		7
TC/RC terms		6	39
Exchange rate effects		$-100$	297
Costs (local currencies)		$-131$	$-125$
Depreciation		-22	36
Other		-14	-6
Change		489	114

The operating profit increased to SEK 2,044 m (1.555), with the year on year rise in profits primarily due to higher metal prices. Volumes were negatively affected by lower metal production, primarily at Aitik and Garpenberg. The year on year reduction in milled volume at Aitik was due to winter conditions at the beginning of the quarter and due to the lowering of production in conjunction with preparation for bringing a new crusher on line. The improvement in the profit on treatment charges was due to the new terms that came into effect at the beginning of the year.

The increase in the profit from the previous quarter was largely due to a stronger USD, increased milled volume at Aitik, and lower treatment charges. The profit was negatively affected by lower copper grade at Aitik, lower zinc grade at Tara, and lower metal prices. Higher milled volumes resulted in costs increasing from first quarter levels.

		Quarter					Six months
	2-2018	2-2017	%	1-2018	℀	2018	2017	℀
Zinc, tonnes	70,760	80,421	$-12$	77.626	-9	148,387	157.560	-6
Copper, tonnes	34,300	38.229	$-10$	36,900	-7	71.200	67.879	5
Nickel, tonnes	3.777	3.519	7	3.523	7	7.299	6.859	6
Lead, tonnes	13,180	15.066	-13	13,882	-5	27,062	29,934	$-10$
Gold, kg	1.768	1.856	-5	1.911	-7	3.678	3.559	3
Silver, kg	97.324	111.197	$-12$	121.334	-20	218,658	215.647	1

Milled volume at Aitik decreased to 9.3 Mtonnes (10.4). Production at the beginning of the quarter was affected by winter conditions and the ongoing low crusher availability. Milled volume was higher than in the first quarter, but mining occurred in low grade areas, and the copper grade was 0.28% (0.29). Recovery levels were stable in comparison with both the previous quarter and the previous year, but the lower copper grade resulted in a decrease in metal production. The copper grade for the remainder of 2018 and 2019 is estimated at 0.25%, which is in line with previous assessments. The new crusher, known as KID 2, came on line at the end of the second quarter and ramping up is proceeding according to plan.

Milled volume in the Boliden Area was lower than in both the first quarter and the previous year. The mining out of the Maurliden open pit during the quarter, coupled with a disadvantageous ore mix and lower grades, resulted in a decrease in the production of metal in concentrate.

Garpenberg's milled volume remained stable and high. Mining occurred in areas similar to those in the first quarter, with low zinc grades and high silver grades. Production of zinc in concentrate increased in comparison with the previous quarter but decreased in comparison with the previous year. Zinc and silver grades are expected to total 4.0% and 115g/tonne, respectively, in 2018, which is in line with previous estimates.

Kevitsa's milled volume was on par with both the first quarter and the previous year, in spite of the low ore grindability. Stable recovery, coupled with high grades, resulted in an increase in metal production in comparison with both the previous quarter and the previous year. The nickel grade of 0.28% noted during the quarter was the highest ever reported in a single quarter.

Tara's milled volume increased in comparison with both the first quarter and the previous year. The decline in the zinc grade from the high levels noted in the first quarter resulted, however, in a decrease in the production of zinc in concentrate from first quarter levels.

Milled volume at Kylylahti was higher than in both the previous quarter and the previous year. Metal production was higher than in the previous quarter but lower than in the previous year due, in part, to changes in mining plans for the future production of cobalt.

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 include the recycling of electronic scrap, purchases of mined concentrate, and sales of metals and byproducts.

• Stable production
• Profits improved despite lower treatment charges
• Operating profit, excluding revaluation of process inventory: SEK 630 m (563)

		Quarter		Six months
SEK m	2-2018	2-2017	1-2018	2018	2017
Revenues	13,656	10,893	12,956	26,613	23,254
Gross profit ex. revaluation of process inventory	2.622	2.389	2.518	5.140	4.966
Operating expenses	1.701	1,583	1.553	3,254	3.061
Depreciation	311	269	333	644	542
Operating profit ex. revaluation of process
inventory	630	563	640	1.270	1.398
Operating profit	769	283	587	1.356	1.205
Investments	437	495	231	668	836
Capital employed	19.761	17.673	18.613	19.761	17.673

	Quarter
SEK m	2-2018	2-2017	1-2018
Operating profit	769	283	587
Revaluation of process inventory	139	$-280$	-53
Operating profit ex. revaluation of process inventory	630	563	640
Change		67	-9
Analysis of change
Volumes		133	30
Prices and terms		33	33
Metal prices		133	$-76$
By-product prices		46	23
TC/RC terms		$-110$	$-86$
Metal premiums		$-20$	9
Exchange rate effects		$-15$	162
Costs (local currencies)		-60	$-114$
Depreciation		-32	$-21$
Items affecting comparability		٠	50
Other		$-7$	13
Change		67	-9

Smelters' operating profit, excluding revaluation of process inventory, increased to SEK 630 m (563), primarily due to higher volumes. Increased production volumes by the zinc smelters and a higher volume of free metals made a positive contribution. Prices and terms improved slightly, but higher metal prices were countered by lower treatment charges. Maintenance shutdowns were less comprehensive than last year. The year on year increase in costs was primarily attributable to energy costs.

The decrease in the profit in comparison with the previous quarter was mainly due to higher costs caused by the maintenance shutdowns. Lower metal prices and treatment charges were balanced out by a positive exchange rate effect. Improvements in process stability had a positive effect on volumes, despite maintenance shutdowns.

		Quarter					Six months
	2-2018	2-2017	%	1-2018	%	2018	2017	%
Zinc, tonnes	124,732	115,468	8	119.710	5	244,442	230,716	6
Copper, tonnes	89,621	87,430	З	92,212	-2	181,833	176.138	3
Lead, tonnes	19,488	20,514	-5	20,913	$-7$	40.401	40,624	$-1$
Nickel in matte. tonnes	7.528	4.038	86	8,356	$-10$	15,884	11,618	37
Gold, kg	4.520	4.150	9	4.452	2	8,972	9.052	$-1$
Silver, kg	145,242	133,960	8	135,340	7	280,582	277.724	1
Sulphuric acid, tonnes	390,429	369,168	6	405,262	$-4$	795,692	792,703	O

Rönnskär's feed continued at a stable, high level, although some production disruptions resulted in a decline in copper production from first quarter levels. Copper production did, however, increase in comparison with the second quarter of last year, when a maintenance shutdown was carried out. Production of both precious metals and sulphuric acid increased in comparison with the previous quarter and the previous year, due to increases in the raw material grades.

Harjavalta's copper feed decreased slightly from first quarter levels due to maintenance shutdowns, but was higher than the previous year. This coupled with the improvements in process stability, resulted in almost matching the copper production record achieved in the first quarter. Nickel in matte production increased substantially, year on year, but maintenance shutdowns prevented production levels from matching the high level achieved in the first quarter. Gold production declined in comparison with both the first quarter and the previous year due to lower raw material grades. The opposite was true for silver.

Kokkola's feed was on par with that in the first quarter and improved, year on year. Zinc production increased in comparison with the first quarter, which was negatively affected by an unfavourable concentrate mix. It also increased in comparison with the second quarter last year, when the smelter suffered from process disruptions.

Production at Odda increased, both year on year and in comparison with the first quarter, due to the completion of the expansion investment.

Lead production at Bergsöe was lower than in the first quarter, due to some production disruptions, but was on par with levels last year.

Maintenance shutdowns were carried out at Harjavalta and Kokkola during the quarter. Collectively, these shutdowns affected the profit to the tune of SEK -130 m (-260). Maintenance shutdowns are planned at Bergsöe during the third quarter and are expected to impact the profit of SEK -70 m (-50). No maintenance shutdowns are planned for the fourth quarter, as was also the case last year.

Sales during the first six months of the year totalled SEK 27,402 m (24,284), with the increase primarily attributable to higher metal prices.

The operating profit, excluding revaluation of process inventory, increased to SEK 5,053 m (4,258). Higher metal prices and increased volumes compensated, more than fully, for a negative exchange rate effect and 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 130 m (260).

	Six months 2018 2017 5,139 4,065 86 $-193$ 5,053 4,258 796 728 655 1,894 73 14
SEK m
Operating profit
Revaluation of process inventory
Operating profit ex. revaluation of process inventory
Change
Analysis of change
Volumes
Prices and terms
Metal prices
By-product prices
Realised metal price and currency hedging
TC/RC terms	$-216$
Metal premiums	-32
Exchange rate effects	$-1,080$
Costs (local currencies)	$-346$
Depreciation	$-162$
Items affecting comparability	-50
Other	-29
Change	796

Net financial items totalled SEK -124 m (-148) and the net profit was SEK 4,049 m (3,129). The earnings per share were SEK 14.80 (11.44). Investments during the first six months of the year totalled SEK 2,670 m (2,481).

₂

The average number of Boliden employees (full-time equivalents) was 5,953 (5,765). The accident frequency for Boliden's own employees and contractors was 7.2 (4.9) during the second quarter. An action programme called Group Safety Standards, which was introduced last year to reinforce health and safety work, continued.

No serious environmental incident occurred during the quarter, which means that no serious environmental incidents have occurred for over a year.

Levels of carbon dioxide intensity and discharges of metals to water are on course to achieve our environmental goals by the end of 2018. Sulphur dioxide emissions to air have remained elevated at all smelters during the quarter and Boliden risks exceeding its goal for 2018. Remedial measures have now been introduced at some of the smelters and emissions declined during the last month of the quarter. Emissions of metals to air increased slightly from the previous quarter's levels at Boliden's copper smelters. The filter installations have been repaired, and emissions consequently declined year on year.

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 20.

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 22.

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 declare 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, 20 July 2018

Anders Ullberg Chairman of the Board

Marie Berglund Member of the Board

Tom Erixon Member of the Board

Michael G:son Löw Member of the Board

Elisabeth Nilsson Member of the Board

Pia Rudengren Member of the Board

Pekka Vauramo Member of the Board

Marie Holmberg Member of the Board, Employee Representative

Kenneth Ståhl Member of the Board, Employee Representative

Cathrin Öderyd Member of the Board, Employee Representative

Mikael Staffas President & CEO

We have reviewed the interim report for Boliden AB (publ) for the period January 1 - June 30, 2018. 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, 2018

Deloitte AB

Jan Berntsson

Authorized Public Accountant

Financial calendar

24 October 2018

The Interim Report for the third quarter of 2018

• 13 February 2019 The fourth quarter and Year-End Report for 2018
• 13-14 March 2019

Capital Market Days

Presentation of the report

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

Friday, 20 July 10.00 (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:

O8-5199 9355 (include the area code) +44 20 319 40550 +1 855 269 2605

Contact persons:

Mikael Staffas President & CEO Tel: +46 8 610 15 00

Håkan Gabrielsson CFO Tel: +46 8 610 15 00

Olof Grenmark Director Investor Relations Tel: +46 8 610 15 23 / +46 70-291 5780

Interest was high and over 1,300 people visited Garpenberg when the mine opened its gates and welcomed people inside in the same week in April as Boliden's Annual General Meeting was held for the company's shareholders. Garpenberg's visitors included secondary and upper secondary school students, along with SFI (Swedish for Immigrants) students, local companies, and delegates who had travelled to Garpenberg from an international zinc conference being held in Stockholm that week. Among the 120 students in the 8^th grade, a massive 72% said that they could see themselves working in the mining industry.

Consolidated Income Statements

		Quarter			Six months	12 months	Full year
SEK m	2-2018	2-2017	1-2018	2018	2017	Jul-Jun	2017
Revenues	14,071	11,554	13,331	27,402	24,284	52,648	49,531
Cost of goods sold	$-11.123$	$-9.259$	$-10.254$	$-21.378$	$-19.467$	$-40.898$	$-38,988$
Gross profit	2,948	2,295	3.077	6,024	4,817	11,750	10,543
Selling expenses	$-110$	$-108$	$-105$	$-215$	$-207$	$-425$	$-417$
Administrative expenses	$-198$	$-137$	$-157$	$-355$	$-281$	$-526$	$-452$
Research and development costs	$-187$	$-158$	$-156$	$-343$	$-297$	$-704$	$-659$
Other operating income and expenses	14	21	13	27	30	-8	-6
associated companies		3	O		4	3	6
Operating profit	2,468	1,916	2,672	5,139	4,065	10,090	9,015
Financial income			O		1	5	4
Financial expenses	$-68$	$-75$	$-58$	$-125$	$-148$	$-259$	$-282$
Profit after financial items	2,401	1,843	2.614	5,015	3,917	9,835	8,737
Tax	$-363$	$-382$	$-603$	$-966$	$-788$	$-2,060$	$-1,881$
Net profit	2,038	1,461	2,011	4,049	3,129	7,776	6,856
Net profit attributable to:
Owners of the Parent Company	2,037	1,460	2,011	4,048	3,129	7,773	6,854
Non-controlling interests			$\cup$		1	З	2

Earnings and equity per share

		Quarter			Six months	12 months	Full year
SEK m	2-2018	2-2017	1-2018	2018	2017	Jul-Jun	2017
Earnings per share 1, SEK	7.45	5.34	7.35	14.80	11.44	28.42	25.06
Ordinary dividend per share, SEK		$\sim$	$\sim$				8.25
Redemption per share, SEK			٠				5.75
Equity per share, SEK	132.27	113.78	137.93	132.27	113.78	132.27	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			Six months	12 months	Full year
SEK m	2-2018	2-2017	1-2018	2018	2017	Jul-Jun	2017
Return on capital employed 1, %						23.2	21.0
Return on equity 2 , %		$\overline{\phantom{a}}$	$\overline{\phantom{a}}$			22.4	21.6
Equity/assets ratio, %	63	58	63	63	58	63	63
Net debt/equity ratio 3 , %	13	25	6	13	25	13	11
Net debt. SEK m	4,589	7.773	2.451	4,589	7.773	4.589	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 di

Consolidated Statements of Comprehensive Income

		Quarter		Six months		12 months	Full year
SEK m	2-2018	2-2017	1-2018	2018	2017	Jul-Jun	2017
Profit for the period	2,038	1,461	2.011	4,049	3,129	7.776	6,856
Other comprehensive income
Items that will be reclassified to the Income Statement
Change in market value of derivative instruments	6	-3	2	8	$-24$	6	$-26$
Fiscal effect on derivative instruments	-1	O	O	-2	5	-2	5
Transfers to the Income Statement	1	10	1	5	21	12	31
Tax on transfers to the Income Statement	O	-2	O	$\bigcap$	-5	-3	$-7$
Sum cash flow hedging	5	6	2	8	-3	14	з
The period's translation difference on overseas operations	253	119	767	1,020	75	1,265	320
Profit on hedging of net investments in overseas operations	$-19$	$-50$	$-127$	$-146$	$-40$	$-200$	-94
Tax on the period's profit from hedging instruments	$\overline{4}$	11	28	33	9	44	21
Sum translation exposure	238	79	668	906	44	1,109	247
Total items that will be reclassified	243	85	671	914	41	1,123	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	243	85	671	914	41	1,113	241
Total comprehensive income for the period	2,281	1,546	2,682	4,963	3,171	8,889	7,096
Total comprehensive income for the period attributable to:
Owners of the Parent Company	2,280	1.545	2.682	4.962	3.170	8,886	7.094
Non-controlling interests	1	1	O			3	2

Consolidated Balance Sheets

	30 Jun	30 Jun	31 Dec
SEK m	2018	2017	2017
Intangible assets	3,656	3,471	3,482
Property, plant and equipment	38,046	35,226	36,313
Participations in associated companies	30	27	29
Other shares and participations	21	31	30
Deferred tax assets	57	149	58
Long-term receivables	133	127	133
Total non-current assets	41,943	39,032	40,046
Inventories	10,340	9,159	9,500
Trade and other receivables	2,713	2,142	2,324
Tax receivables	31	55	71
Interest-bearing receivables	2	5	2
Derivative instruments	121	192	141
Other current receivables	1,235	1,215	1,288
Cash and cash equivalents	1,398	1,706	2,510
Total current assets	15,840	14,437	15,836
Total assets	57,783	53,469	55,882
Equity	36,186	31,128	35,053
Pension provisions	951	925	943
Other provisions	3,732	2,699	2,911
Deferred tax liabilities	2,972	3,052	3,089
Liability to credit institutions	4,824	6,563	4,004
Other interest-bearing liabilities	2	7	2
Total non-current liabilities	12,481	13,246	10,949
Liability to credit institutions	233	2,002	1,331
Other interest-bearing liabilities	$\Omega$	2	5
Trade and other payables	4,850	3,622	4,426
Other provisions	227	256	226
Current tax liabilities	1,159	848	1,166
Derivative instruments	103	89	92
Other current liabilities	2,543	2,276	2,633
Total current liabilities	9,117	9,095	9,880
Total equity and liabilities	57,783	53,470	55,882

Consolidated Statements of Changes in Equity

	30 Jun	30 Jun	31 Dec
SEK m	2018	2017	2017
Opening balance	35,053	29,394	29,394
Total comprehensive income for the period	4,963	3.171	7,096
Dividend	$-2,256$	$-1,436$	$-1.436$
Redemption	$-1,573$
Closing balance	36,186	31,128	35,053
Total equity attributable to:
Owners of the Parent Company	36,177	31.120	35.044
Non-controlling interests	9	8	9

On 30 June 2018, the hedging reserve, after fiscal effects, totalled SEK 8 m (-5).

Consolidated Statements of Cash Flow

		Quarter		Six months		12 months	Full year
SEK m	2-2018	2-2017	1-2018	2018	2017	Jul-Jun	2017
Operating activities
Profit after financial items	2,401	1.843	2.614	5,015	3,917	9,835	8,737
Adjustments for items not included in the cash flow:
- Depreciation, amortisation and write-down of assets	1,233	1.141	1.275	2,508	2,237	4,877	4,601
- Provisions	$\mathbf 1$	$-1$	4	5	$-1$	11	5
- Revaluation of process inventory	$-139$	280	53	-86	193	$-381$	$-102$
- Other	41	15	36	77	25	100	52
Tax paid/received	$-436$	$-284$	$-620$	$-1,056$	$-776$	$-1.736$	$-1.457$
Cash flow from operating activities before
changes in working capital	3.101	2.994	3,362	6,463	5,595	12,705	11,837
Cash flow from changes in working capital	171	541	$-823$	$-652$	-69	317	900
Cash flow from operating activities	3,272	3,535	2,539	5,811	5,526	13,022	12,737
Investment activities
- Acquisition of intangible assets	$-12$	-2	$-4$	$-16$	-3	-33	-20
- Acquisition of property, plant and equipment	$-1,544$	$-1,384$	$-1,105$	$-2,649$	$-2,478$	$-5,741$	$-5,575$
- Disposal of property, plant and equipment	О	O	O	O	O	O	6
- Acquisition/disposal of financial assets	5	4	1	5	167	$-4$	160
Cash flow from investment activities	$-1,554$	$-1,383$	$-1,108$	$-2,663$	-2.313	$-5,777$	-5,428
Cash flow before financing activities (free cash flow)	1.718	2.152	1.431	3,148	3,212	7.245	7,309
Dividend	$-3,829$	$-1,436$	ä,	$-3,829$	$-1,436$	$-3,829$	$-1,436$
Loans raised		1.018	1,675	1,675	1.139	1,679	1.143
Amortisation of loans	$-1.499$	$-959$	$-611$	$-2,110$	$-2.713$	$-5,408$	$-6,011$
Cash flow from financing activities	$-5,328$	$-1,377$	1,064	-4,264	-3,010	$-7,558$	$-6,304$
Cash flow for the period Cash and cash equivalents at the beginning of	$-3,611$	775	2,495	-1,116	202	-313	1,005
the period	5,008	930	2.510	2,510	1,503	1,706	1,503
Exchange rate difference on cash and cash equivalents	$\mathbf 1$	1	3	З	1	5	1
Cash and cash equivalents at period-end	1,398	1,706	5,008	1,398	1,706	1,398	2.510

2018

Income Statements - the Parent Company

		Quarter		6 months		12 months	Full year
SEK m	2-2018	2-2017	1-2018	2018	2017	Jul-Jun	2017
Dividends from subsidiaries	6,000		$\overline{\phantom{a}}$	6,000		9.000	3,000
Write-downs of participations in Group companies			$\overline{\phantom{a}}$
Profit after financial items	6,000	$\blacksquare$	$\blacksquare$	6,000		9.000	3,000
Tax			$\overline{\phantom{a}}$
Profit for the period	6,000			6,000	$\sim$	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 second quarter of 2018.

Balance Sheets - the Parent Company

	30 Jun	30 Jun	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		1.787	519
Total assets	14,985	11,602	13,333
Equity	14.485	9.315	12.314
Long-term liabilities to credit institutions	500	500	500
Current liabilities to credit institutions		1.787	519
Total liabilities and equity	14.985	11,602	13,333

30 Jun 2018, SEK m	Reported value	Fair value
Other shares and participations	21	21
Trade and other receivables	2,713	2.713
Interest-bearing receivables	2	2
Derivative instruments	121	121
Cash and cash equivalents	1,398	1,398
Total assets	4,254	4,254
Liabilities to credit institutions	5,058	5,067
Other interest-bearing liabilities	3	З
Trade and other payables	4.850	4,850
Derivative instruments	103	103
Total liabilities	10,014	10,024

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 June 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	2-2018	2-2017	2-2018	2-2017	2-2018	2-2017	2-2018	2-2017
Finished metals		$\sim$	11,895	10,039		۰.	11,895	10,039
Metal in concentrate	411	658	O	O		$\sim$	412	658
Intermediates		$\overline{\phantom{a}}$	1,442	643		$\overline{\phantom{a}}$	1,442	643
By-products	О	$\overline{\phantom{a}}$	274	216		$\overline{\phantom{a}}$	274	216
Strategic hedges		$-7$		$\overline{\phantom{a}}$		$\sim$		$-7$
Other sales	О	O	49	5	O	$\cup$	49	5
Total external revenues	411	651	13,660	10,903	0	0	14,071	11.554

	Six months
	Mines		Smelters		Other		The Group
SEK m	2018	2017	2018	2017	2018	2017	2018	2017
Finished metals		۰	23,301	20,813		٠	23,301	20,813
Metal in concentrate	774	1.020	O	O		۰	775	1,020
Intermediates		۰	2,700	2,058		-	2,700	2,058
By-products	О		556	384	$\bigcirc$	$\overline{\phantom{0}}$	556	384
Strategic hedges		$-14$		$\overline{\phantom{a}}$		۰		$-14$
Other sales	О	O	71	23	$\cup$	O	71	23
Total external revenues	774	1.006	26,628	23,278	O	о	27,402	24,284

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 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	880	TC/RC Copper	70	USD/SEK	1,700
Copper	860	TC Zinc	50	EUR/USD	1,100
Gold	315	TC Lead	$-10$	USD/NOK	135
Silver	180
Lead	145
Nickel	155

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	3-2016	4-2016	1-2017	2-2017	3-2017	4-2017	1-2018	2-2018
THE GROUP
Revenues	9,733	12,137	12,730	11,554	11,628	13,619	13,331	14,071
Operating expenses	3,188	3,667	3,469	3,634	3,267	3,737	3,655	3,965
Depreciation	1,124	1,147	1,092	1,142	1,127	1,241	1,269	1,223
Operating profit ex. revaluation of process inventory	1,318	2,106	2,061	2,196	1.744	2,912	2,724	2,329
Operating profit	1,529	2,353	2,149	1,916	1,860	3,091	2,672	2,468
Investments	1,028	1,343	1,096	1,385	1,240	1,867	1,109	1,561
Acquisitions	$\overline{\phantom{a}}$	$-18$	$\overline{\phantom{m}}$	$\overline{\phantom{a}}$	$\Box$	$\sim$	$\sim$
Capital employed	42,069	42,457	43,093	42,630	42,335	42,931	44,292	44,817
MINES
Revenues	3,435	4,211	4,315	4,415	4,175	5,291	4,734	5,251
Gross profit	3,427	4,112	4,273	4,463	4,138	5,316	4,920	5,178
Operating expenses	1,739	2,111	1,928	2,033	1,842	2,143	2,059	2,215
Depreciation	865	874	820	872	854	941	936	912
Operating profit	804	1,136	1,525	1,555	1,421	2,179	1,931	2,044
Investments	748	923	755	889	815	1,264	878	1,123
Acquisitions		$-18$			$\overline{a}$	$\overline{\phantom{a}}$
Capital employed	24,918	24,972	25,208	25,375	24,975	25,502	26,065	25,686
SMELTERS
Revenues	9,462	11,225	12,361	10,893	11,401	13,036	12,956	13,656
Gross profit ex. revaluation of process inventory	2,273	2,764	2,577	2,389	2,224	2,587	2,518	2,622
Operating expenses	1,406	1,468	1,478	1,583	1,399	1,544	1,553	1,701
Depreciation	259	272	272	269	272	300	333	311
Operating profit ex. revaluation of process inventory	613	1,094	835	563	568	766	640	630
Operating profit	825	1,341	922	283	684	945	587	769
Investments	280	420	341	495	425	602	231	437
Capital employed	17,516	17,838	18,568	17,673	17,957	18,018	18,613	19,761
OTHER/ELIMINATIONS
Revenues	$-3,164$	$-3,299$	$-3,946$	$-3,753$	$-3,948$	$-4,708$	$-4,359$	$-4,837$
Operating expenses	43	89	63	17	27	50	44	49
Operating profit, internal profit	$-76$	-56	$-260$	118	$-218$	16	198	$-297$
Operating profit, other	$-24$	$-68$	-39	$-40$	$-28$	-50	-44	$-49$
Investments		O		2	O	2	1	$\bigcirc$
Capital employed	-365	$-354$	$-683$	$-418$	$-597$	$-589$	-386	$-630$

Consolidated quarterly data

	3-2016	4-2016	1-2017	2-2017	3-2017	4-2017	1-2018	2-2018
Financial performance $1$ , the Group
Revenues, SEK m	9,733	12,137	12.730	11,554	11,628	13,619	13,331	14,071
Operating profit before depreciation, SEK m	2,653	3,500	3,241	3,058	2,987	4,332	3,941	3,691
Operating profit ex. revaluation of process
inventory, SEK m	1,318	2,106	2,061	2.196	1,744	2,912	2,724	2,329
Operating profit, SEK m	1,529	2,353	2,149	1,916	1,860	3,091	2,672	2,468
Profit after financial items, SEK m	1,454	2,267	2,075	1,843	1,790	3,030	2,614	2,401
Net profit, SEK m	1,137	1,827	1,669	1,461	1,478	2,248	2,011	2,038
Earnings per share, SEK	4.15	6.68	6.10	5.34	5.40	8.22	7.35	7.45
Free cash flow, SEK m	91	1,692	1,060	2,152	1,715	2,382	1,431	1,718
Net debt/equity ratio, %	40	32	27	25	19	11	6	13
Production of metal in concentrate 2
Zinc, tonnes	84,417	79,100	77,139	80,421	69,616	78,082	77,626	70,760
Copper, tonnes	28,092	30,423	29,650	38,229	33,702	41,535	36,900	34,300
Nickel, tonnes	3,142	3,341	3,340	3,519	3,468	3,450	3,523	3,777
Lead, tonnes	15,559	15,721	14,868	15,066	12,880	16,741	13,882	13,180
Cobalt, tonnes	136	143	141	144	150	152	190	190
Gold, kg	1,332	1,737	1,702	1,856	1,650	2,029	1,911	1,768
Gold, troy oz.	42,828	55,832	54,732	59,683	53,033	65,217	61,430	56,834
Silver 3 , kg	105,941	120,702	104,450	111,197	89,741	107,850	121,334	97,324
Silver 3 , '000 troy oz.	3,406	3,881	3,358	3,575	2,885	3,467	3,901	3,129
Palladium, kg	505	285	234	276	260	251	276	322
Platinum, kg	265	392	326	371	365	355	380	443
Tellurium, kg	5,243	13,088	11.251	7,186	8,824	7,718	12,021	11,382
Metal production, Smelters
Zinc, tonnes	115,145	115,580	115,248	115,468	114,991	111,371	119,710	124,732
Copper, tonnes	83,022	88,980	88,708	87,430	87,434	89,088	92,212	89,621
Lead, tonnes	7,231	7,408	6,049	7,561	7,524	7,131	7,317	6,745
Lead alloys, tonnes (Bergsöe)	8,303	13,465	14,061	12,953	9,036	13,926	13,596	12,743
Nickel in matte, tonnes	8,207	7,793	7,579	4,038	7,409	6,443	8,356	7,528
Gold, kg	4,186	3,888	4,902	4,150	4,391	4,332	4,452	4,520
Gold, troy oz.	134,565	124,992	157,609	133,417	141,186	139,290	143,145	145,315
Silver, kg	133,900	164,800	143.764	133,960	136,080	137,482	135,340	145,242
Silver, 'OOO troy oz.	4,305	5,298	4,622	4,307	4,375	4.420	4,351	4,670
Sulphuric acid, tonnes	416,348	434,490	423,535	369,168	411,287	408,673	405,262	390,429
Aluminium fluoride, tonnes	5,819	6,600
Metal prices in USD, average per quarter
Zinc, USD/tonne	2,255	2,517	2,780	2,596	2,963	3,236	3,421	3,112
Copper, USD/tonne	4,772	5,277	5,831	5,662	6,349	6,808	6,961	6,872
Lead, USD/tonne	1,873	2,149	2,278	2,161	2,334	2,492	2,523	2,388
Nickel, USD/tonne	10,265	10,810	10,271	9,225	10,528	11,584	13,276	14,476
Gold, USD/troy oz.	1,335	1,222	1,219	1,257	1,278	1,277	1,331	1,306
Silver, USD/troy oz.	19.61	17.19	17.42	17.21	16.84	16.73	16.77	16.53
Metal prices in SEK, average per quarter
Zinc, SEK/tonne	19,209	22,755	24,806	22,842	24,106	26,910	27,733	26,982
Copper, SEK/tonne	40,663	47,715	52,033	49,812	51,659	56,615	56,427	59,579
Lead, SEK/tonne	15,954	19,432	20,325	19,012	18,992	20,726	20,451	20,701
Nickel, SEK/tonne	87,461	97,740	91,649	81,165	85,665	96,323	107,623	125,499
Gold, SEK/troy oz.	11,374	11,048	10,879	11,063	10,399	10,619	10,788	11,325
Silver, SEK/troy oz.	167.11	155.46	155.45	151.43	136.99	139.09	135.98	143.33
Exchange rates, average per quarter
USD/SEK	8.52	9.04	8.92	8.80	8.14	8.32	8.11	8.67
EUR/USD	1.12	1.08	1.07	1.10	1.17	1.18	1.23	1.19
EUR/SEK	9.51	9.76	9.51	9.69	9.56	9.79	9.96	10.33
USD/NOK	8.33	8.37	8.44	8.52	7.96	8.16	7.84	8.02

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

	3-2016	4-2016	1-2017	2-2017	3-2017	4-2017	1-2018	2-2018
AITIK
Milled ore, Ktonnes	8,963	9,584	9,251	10,389	9,292	10,114	8,359	9,305
Head grades
Copper, %	0.22	0.23	0.23	0.29	0.27	0.32	0.36	0.28
Gold, g/tonne	0.12	0.11	0.13	0.14	0.12	0.14	0.16	0.13
Silver, g/tonne	1.91	1.87	1.98	2.33	1.78	1.79	2.65	1.68
Production of metal in concentrate
Copper, tonnes	17,510	19,453	18,820	26,792	22,334	29,627	26,991	23,462
Gold, kg	577	584	652	788	598	862	748	720
Gold, troy oz.	18,541	18,761	20,948	25,320	19,224	27,707	24,048	23,152
Silver, kg	14,633	14,542	12,640	19,843	13,666	15,714	17,269	12,838
Silver, 'OOO troy oz.	470	468	406	638	439	505	555	413
THE BOLIDEN AREA
Milled ore, Ktonnes	599	503	552	555	524	434	509	447
Of which, smelter slag	83	75	77	72	60	54	54	53
Head grades
Zinc, %	4.1	4.1	3.7	4.7	3.7	3.8	4.2	3.3
Copper, %	0.3	O.4	0.3	0.4	0.3	0.4	0.4	O.3
Lead, %	0.4	0.4	O.4	0.5	0.4	O.4	0.5	0.3
Gold, g/tonne	1.5	1.8	1.8	2.0	1.9	2.0	2.2	1.8
Silver, g/tonne	55	54	59	62	49	60	68	46
Tellurium, g/tonne	19	46	42	26	35	37	43	41
Production of metal in concentrate
Zinc, tonnes	19,075	16,427	16,017	20,611	15,465	13,409	17,589	12,122
Copper, tonnes	1,302	1,440	1,157	1,590	1,124	1,260	1,243	1,017
Lead, tonnes	968	764	806	1,095	710	786	1,131	455
Gold, kg	377	689	610	624	625	618	767	600
Gold, troy oz.	12,118	22,141	19,609	20,046	20,078	19,882	24,652	19,286
Silver, kg	18,494	24,716	22,014	23,526	17,009	18,232	25,633	13,968
Silver, 'OOO troy oz.	595	795	708	756	547	586	824	449
Tellurium, kg	5,243	13,088	11,251	7,186	8,824	7,718	12,021	11,382
TARA
Milled ore, Ktonnes	638	675	615	532	578	587	537	585
Head grades
Zinc, %	6.0	5.6	6.0	6.1	5.8	5.7	7.7	6.6
Lead, %	1.1	1.1	1.2	1.2	1.1	1.1	1.4	1.3
Production of metal in concentrate
Zinc, tonnes	36,984	35,793	35,376	30,894	32,098	32,212	39,610	36,514
Lead, tonnes	5,004	4,351	5,119	3,807	4,023	4,134	5,077	4,867
Silver 1 , kg	243	257	531	302	292	219	245	345
Silver 1, 'OOO troy oz.	7,812	8,263	17,072	9,703	9,394	7,041	7,877	11,092

1 Silver production at Tara is not payable.

Quarterly data per unit - Mines

	3-2016	4-2016	1-2017	2-2017	3-2017	4-2017	1-2018	2-2018
GARPENBERG
Milled ore, Ktonnes	645	681	637	672	631	695	646	670
Head grades
Zinc, %	4.5	4.1	4.2	4.5	3.7	4.9	3.4	3.5
Copper, %	0.1	O.1	0.1	O.1	0.0	0.1	O.1	0.0
Lead, %	1.8	1.9	1.7	1.8	1.6	2.0	1.4	1.4
Gold, g/tonne	0.3	0.3	0.3	0.3	0.2	0.3	0.3	O.3
Silver, g/tonne	145	155	143	131	121	137	153	134
Production of metal in concentrate
Zinc, tonnes	27,589	26,421	25,326	28,409	21,589	32,171	20,251	21,688
Copper, tonnes	175	183	505	174	149	243	175	163
Lead, tonnes	9,588	10,606	8,943	10,164	8,147	11,820	7,675	7,858
Gold, kg	138	156	145	126	100	169	136	153
Gold, troy oz.	4,429	5,008	4,673	4,056	3,228	5,449	4,381	4,932
Silver, kg	72,011	80,655	68,885	67,047	58,341	73,275	77,919	69,671
Silver, 'OOO troy oz.	2,315	2,593	2,215	2,156	1,876	2,356	2,505	2,240
KEVITSA
Milled ore, Ktonnes	1,957	1,943	1,959	1,917	2,026	2,010	1,886	1,881
Head grades
Copper, %	0.34	0.38	0.40	0.40	0.43	0.44	0.41	0.42
Nickel, %	0.23	0.25	0.24	0.26	0.25	0.25	0.25	0.28
Cobalt, g/tonne	0.01	0.01	0.02	0.01	0.01	0.01	0.01	0.01
Gold, g/tonne	0.13	0.15	0.15	0.15	0.16	0.17	0.15	0.16
Palladium, g/tonne	0.18	0.21	0.19	0.22	0.20	0.20	0.23	0.25
Platinum, g/tonne	0.27	0.31	0.29	0.33	0.32	0.33	0.36	0.40
Production of metal in concentrate
Copper, tonnes	5,948	6,596	7,017	6,894	7,966	8,080	7,065	7,197
Nickel, tonnes	3,142	3,341	3,340	3,519	3,468	3,450	3,432	3,697
Cobalt, tonnes	136	143	141	144	150	152	146	152
Gold, kg	131	162	147	153	172	175	155	166
Gold, troy oz.	4,225	5,197	4,727	4,933	5,519	5,611	4,990	5,340
Palladium, kg	202	285	234	276	260	251	276	355
Palladium, troy oz.	6,508	9,170	7,537	8,880	8,362	8,058	8,889	10,338
Platinum, kg	265	392	326	371	365	355	380	443
Platinum, troy oz.	8,531	12,605	10,481	11,940	11,749	11,403	12,223	14,229
KYLYLAHTI
Milled ore, Ktonnes	206	209	204	200	199	205	176	208
Head grades
Zinc, %	0.6	0.5	0.5	0.5	0.5	0.5	0.4	0.5
Copper, %	1.6	1.4	1.3	1.5	1.2	1.2	0.9	1.3
Copper, %			÷,		$\blacksquare$	$\overline{a}$	0.2	0.2
Nickel, %			$\overline{\phantom{a}}$	$\overline{\phantom{a}}$		$\overline{\phantom{a}}$	0.2	0.2
Gold, g/tonne	O.8	1.0	1.0	1.0	1.0	1.2	0.8	O.8
Production of metal in concentrate
Zinc, tonnes	769	459	421	506	464	290	177	436
Copper, tonnes	3,157	2,751	2,455	2,779	2,128	2,325	1,425	2,461
Nickel, tonnes		$\qquad \qquad \blacksquare$	÷,		$\overline{\phantom{a}}$	$\overline{a}$	91	79
Cobalt, tonnes	÷,	÷,	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$	÷,	44	38
Gold, kg	109	147	149	166	155	204	104	128
Gold, troy oz.	3,516	4,725	4,776	5,328	4,984	6,569	3,359	4,123

Quarterly data per unit - Smelters

	3-2016	4-2016	1-2017	2-2017	3-2017	4-2017	1-2018	2-2018
RÖNNSKÄR
Feed, tonnes
Copper
Copper concentrate	157,097	163,555	166,460	158,538	140,103	166,007	162,283	163,418
Secondary raw materials	43,270	43.703	48,421	40.934	45,585	45,358	42.641	40,464
Of which, electronics	20,385	19.177	20,982	18,357	17,522	20,435	19,415	21,900
Copper, total	200,367	207,258	214,881	199,472	185,688	211,365	204,924	203,882
Lead
Lead concentrate	7,151	13,057	9,368	10,099	8,931	10,716	11,777	8,451
Secondary raw materials	152	168	247	148	447	1,216	476	426
Lead, total	7,303	13,225	9,615	10,247	9,378	11,932	12,253	8,877
Production
Cathode copper, tonnes	50,553	56,132	56,015	54,051	53,910	55,486	57.021	54,681
Lead, tonnes	7.231	7,408	6,049	7.561	7,524	7,131	7.317	6,745
Zinc clinker, tonnes	7,820	9,398	8,994	6,474	9,700	9,106	8,956	7,774
Gold, kg	3,156	3,279	3.518	2,868	3,401	3,323	3.375	3,575
Gold, troy oz.	101,475	105,407	113,103	92,206	109,329	106,831	108,497	114,946
Silver, kg	112,700	145,200	127,204	118,600	121,200	117,902	120,700	123,602
Silver, '000 troy oz.	3,623	4,668	4,090	3,813	3,897	3,791	3,881	3,974
Sulphuric acid, tonnes	118,175	136,987	134,710	122,464	118,289	130,000	125,433	130,301
BERGSÖE
Feed, tonnes
Battery raw materials	11,581	19,151	20,011	17.591	12,726	19,971	19,198	17,943
Production, tonnes
Lead alloys	8,303	13,465	14,061	12,953	9,036	13,926	13,596	12,743

Quarterly data per unit - Smelters

	3-2016	4-2016	1-2017	2-2017	3-2017	4-2017	1-2018	2-2018
HARJAVALTA
Feed, tonnes
Copper
Copper concentrate	143,545	140,771	137,213	115,708	147,180	142,495	136,835	123,373
Secondary raw materials	8,404	8,624	5,811	5,900	6,534	5,360	4,710	6,697
Copper, total	151.949	149,396	143.023	121.608	153,714	147.854	141.544	130,070
Nickel concentrate	76,855	80,245	76,881	40,788	73,560	67,936	74,314	68,849
Production
Cathode copper, tonnes	32,469	32,847	32,693	33,379	33,524	33,602	35,191	34,940
Nickel in matte	8,207	7,793	7,579	4.038	7,409	6,443	8,356	7,528
Gold, kg	1,029	609	1,384	1,282	991	1.010	1,078	945
Gold, troy oz.	33,090	19,585	44,506	41,211	31,857	32,459	34,648	30,369
Silver, kg	21,200	19,600	16,560	15,360	14,880	19,580	14,640	21,640
Silver, 'OOO troy oz.	682	630	532	494	478	630	471	696
Sulphuric acid, tonnes	183,508	181,630	181,471	139,105	183,566	173,355	170,454	159,339
KOKKOLA
Feed, tonnes
Zinc concentrate	150,576	135,342	135,475	138,678	142,335	149,192	141,573	141,423
Production, tonnes
Zinc	73,922	68,718	70,556	69,321	69,904	75,211	71,421	75,693
Silver in concentrate, kg	4,600	4,552	5,503	3,916	3,986	4,783	4,945	2,529
Silver in concentrate, 'OOO troy oz.	148	146	177	126	128	154	159	81
Sulphuric acid	87,251	82,963	81,713	76,393	80,964	86,598	78,256	71,516
ODDA
Feed, tonnes
Zinc concentrate, incl. zinc clinker	83,973	95,102	84,674	96,276	87,035	69,584	93,331	95,426
Production, tonnes
Zinc	41,223	46,862	44,692	46,147	45,087	36,160	48,289	49,039
Aluminium fluoride	5,819	6,600	$\overline{\phantom{a}}$
Sulphuric acid	27,414	32,910	25,642	31,205	28,468	18,720	31,119	29,273

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