Boliden — Interim / Quarterly Report 2018

Feb 13, 2019

		Quarter		Full year
SEK m	4-2018	4-2017	3-2018	2018	2017
Revenues	12,543	13,619	12,510	52.454	49.531
Operating profit ex. revaluation of process inventory	2,001	2.912	2.020	9.074	8.913
Operating profit	2.093	3,091	1.771	9,004	9.015
Profit after financial items	2,040	3,030	1,707	8.763	8,737
Net profit	1,866	2.248	1,285	7.201	6,856
Earnings per share, SEK	6.82	8.22	4.69	26.32	25.06
Free cash flow	1.721	2.382	822	5,692	7.309
Net debt	2.034	3.752	3,753	2.034	3.752
Return on capital employed, %				20.3	21.0
Return on equity, %				19.4	21.6
Net debt/equity ratio, %	5	11	10	5	11

• The operating profit, excluding revaluation of process inventory, totalled SEK 2,001 m (2,912).
• The free cash flow totalled SEK 1,721 m (2,382).
• Stable production by Smelters.
• Stable mined production, but with lower grades.
• The Board of Directors proposes a payment to the shareholders of SEK 13.00 per share through:
• o an ordinary dividend of SEK 8.75 (8.25) per share
• o an extra payment of SEK 4.25 (5.75) per share through automatic share redemption.

Revenues decreased to SEK 12,543 m (13,619), primarily due to lower metal prices.

		Quarter
SEK m	4-2018	4-2017	3-2018
Operating profit	2,093	3,091	1,771
Revaluation of process inventory	92	179	$-249$
Operating profit ex. revaluation of process inventory	2,001	2,912	2,020
Change		-911	-20
Analysis of change
Volumes		$-518$	7
Prices and terms		$-414$	229
Metal prices		$-945$	187
By-product prices		68	40
Realized metal and currency hedge		5
TC/RC terms		$-89$	$-29$
Metal premiums		$\overline{4}$	$-16$
Exchange rate effects		542	46
Costs (local currencies)		$-62$	$-305$
Depreciation		48	-9
Items affecting comparability		37	37
Other		$-1$	21
Change		-911	-20

		Quarter		Full Year
SEK m	4-2018	4-2017	3-2018	2018	2017
Mines	1.384	2.179	1.091	6.451	6,681
Smelters	575	766	589	2.435	2.732
Other/eliminations	42	-34	340	189	-500
The Group	2,001	2,912	2,020	9,074	8,913

The operating profit, excluding revaluation of process inventory, deteriorated to SEK 2,001 m (2,912). The year on year deterioration was due to lower metal prices and lower grades at Aitik, Kevitsa and Tara. Mined production increased, particularly at Aitik, but decreased slightly at Tara and Kevitsa.

The operating profit excluding revaluation of process inventory remained essentially unchanged from the previous quarter. Higher metal prices than during the third quarter and the absence of any planned maintenance shutdowns in Smelters compensated for seasonally higher costs.

The item affecting comparability of SEK +37 m derives from the sale of the decommissioned Canadian mine, Premier Gold.

The profit after financial items was SEK 2,040 m (3,030). The tax expense for the quarter totalled SEK 174 m (782) with the year on year reduction in the tax expense due to a lower profit before tax and an over estimated tax charge earlier in the year.

The net profit totalled SEK 1,866 m (2,248), corresponding to earnings per share of SEK 6.82 (8.22). The returns on capital employed and equity for the full year were 20.3% and 19.4%, respectively.

Investments for the quarter totalled SEK 2,013 m (1,867) and are estimated to total slightly below SEK 8 billion for 2019 as a whole. Maintenance investments comprise slightly over SEK 4 billion of this total. Investments in 2019 will include a new leaching plant at Rönnskär, an expansion at Kevitsa, the expansion of the Harjavalta smelter and the Pori copper refinery, and new mine trucks at Kevitsa and Aitik.

		Quarter	Full year
SEK m	4-2018	4-2017	3-2018	2018	2017
Cash flow from operating activities before change in working capital	2.993	3.692	2.075	11.531	11.837
Change in working capital	686	565	203	237	900
Cash flow from operating activities	3.679	4.257	2.279	11.768	12.737
Cash flow from investment activities	$-1.957$	$-1.875$	$-1.456$	$-6.076$	$-5.428$
Free cash flow	1.721	2,382	822	5,692	7.309

The free cash flow totalled SEK 1,721 m (2,382). The lower cash flow was primarily due to a lower profit.

Net financial items during the quarter totalled SEK -52 m (-61). The average interest level on loans was 1.2% (1.3).

Net debt at the end of the quarter was SEK 2,034 m (3,752), and the net debt/equity ratio was 5% (11). The average term of total approved loan facilities at the period end was 3.5 years (2.4), and the fixed interest term on utilised loans was 0.9 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 one year, totalled SEK 9,964 m (8,768).

The reclamation liability has become an increasingly important component of Boliden's balance sheet in recent years, totalling SEK 1,757 m (1,657) net at the end of the year. This sum is not, however, included in the net debt concept, which only includes financial liabilities and assets. The Board has resolved, given the scale of the reclamation liability, to include this sum in the capital structure goal, and the sum of the net debt and the net reclamation liability shall, therefore, comprise approximately 20% of the equity in an economic upturn.

Boliden's policy is that the dividend shall correspond to one third of the net profit. For 2018, the Board proposes an ordinary dividend of SEK 8.75 (8.25) per share, corresponding to SEK 2,393 m (2,256), or 33.2% (32.9) of the net profit for the year.

Boliden has generated substantial cash flows over the past year and our financial position is strong. As was the case last year, the Board of Directors asks the Annual General Meeting to approve an automatic share redemption procedure. The Board of Directors' proposal will jeopardise neither Boliden's ability to handle any deterioration in market terms or to finance further growth. Under the terms of the proposal, every share will be divided into one ordinary share and one redemption share. The redemption share will then automatically be redeemed for SEK 4.25 (5.75) per share, corresponding to a total of SEK 1 162 m (1,573).

This, in combination with the proposed ordinary dividend, will, subject to the approval of the AGM, mean that the shareholders receive SEK 13.00 (14.00) per share, corresponding to a total of SEK 3,556 m (3,829). A record date of 24 May 2019 has been proposed for the share split. Boliden expects payment for the redemption shares to be disbursed on or around 25 June 2019.

Industrial production continued to be strong during the fourth quarter, but the growth rate did decline from levels earlier in the year, which had a negative effect on demand for base metals.

Copper and zinc prices were slightly higher than in the previous quarter, but were lower, year on year. Demand for precious metals increased, and the gold price rose from third quarter levels. The US dollar was stronger, year on year, moderating the downturn in prices in SEK.

		Quarter	Full Year
	4-2018	4-2017	3-2018	2018	2017
Zinc. USD/tonne	2.631	3.236	2.537	2.922	2.896
Copper, USD/tonne	6.172	6,808	6.105	6.523	6.166
Nickel, USD/tonne	11,516	11,584	13,266	13.122	10.411
Lead. USD/tonne	1.964	2.492	2.104	2.242	2.317
Gold, USD/troz	1,227	1.277	1.213	1,269	1,258
Silver, USD/troz	14.5	16.7	15.0	15.7	17.0
USD/SEK	9.04	8.32	8.95	8.69	8.54
EUR/SEK	10.32	9.79	10.41	10.26	9.63

Global demand for zinc fell by slightly below 1% in comparison with the fourth quarter of last year. A marginal decrease for the year as a whole was also noted, primarily as a result of a slight fall in demand in China.

Production by the Chinese smelting industry fell by 8%, year on year, in the fourth quarter, and global smelter production consequently also fell, year on year, but remained unchanged for the year as a whole. Global metal production fell short of metal demand in 2018, with the deficit made up from inventories. New mines increased concentrate availability, and spot market treatment charges rose during the year. Spot market treatment charges at the end of the fourth quarter were higher than in the benchmark annual contracts.

Global demand for copper increased by slightly below 3% in comparison with the fourth quarter of last year, and by the same amount for the year as a whole.

Global smelter production fell by just under 4% in comparison with the fourth quarter of last year after having increased in the first three quarters. The reduction was due primarily to planned and unplanned shutdowns at smelters and refineries. Smelter production for 2018 as a whole increased by 2%. Production disruptions in the mining industry decreased year on year, and the concentrate market was almost balanced. Spot market treatment charges rose slightly and were in line with levels in the benchmark annual contracts.

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

Global demand for nickel increased by slightly below 1% in comparison with the fourth quarter of last year, and the growth rate was consequently lower than earlier in the year. Global production of stainless steel, which accounts for approximately 70% of nickel consumption worldwide, increased only marginally in the fourth quarter. Stainless steel production did, however, increase by 6% for the year as a whole. Global nickel demand increased by 6% for 2018 as a whole.

Production of low-grade ferronickel, known as pig iron, increased during the year. Total global production of nickel metal increased by slightly below 2% in comparison with the fourth quarter of last year. Nickel inventories decreased during the year.

Demand for precious metals increased during the fourth quarter, driven by financial investors. The fastest price increase by Boliden's precious metals was seen for palladium.

Demand for sulphuric acid was good, and spot market prices in Europe and several other markets rose still further from third quarter levels.

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

• Stable mined production but with lower grades
• Lower metal prices
• Operating profit: SEK 1,384 m (2,179)

		Full year
SEK m	4-2018	4-2017	3-2018	2018	2017
Revenues	4.478	5,291	3.941	18,404	18,195
Gross profit	4,485	5,316	4.010	18,594	18,189
Operating expenses	2,204	2,143	2.002	8,481	7,947
Depreciation	941	941	919	3,708	3,487
Operating profit	1.384	2,179	1.091	6.451	6,681
Investments	1.323	1.264	1.158	4.482	3.722
Capital employed	26,328	25,502	25,546	26,328	25,502

	Quarter
SEK m	4-2018	4-2017	3-2018
Operating profit	1,384	2,179	1,091
Change		$-795$	293
Analysis of change
Volumes		$-429$	245
Prices and terms		$-418$	217
Metal prices		$-872$	194
Realized metal and currency hedge		5
TC/RC terms		61	$-16$
Exchange rate effects		388	39
Costs (local currencies)		$-13$	-203
Depreciation		18	$-25$
Items affecting comparability		37	37
Other		10	55
Change		-795	293

The operating profit fell to SEK 1,384 m (2,179), primarily due to lower metal prices and lower grades. The volume effect was negative as increased mined production was unable to fully compensate for the lower grades at Aitik, Kevitsa and Tara. Lower milled volumes at Garpenberg also had a negative impact.

The improvement in the profit from the previous quarter was due to a combination of higher prices and better volumes. Costs increased for what were, primarily, seasonal reasons.

The item affecting comparability of SEK +37 m derives from the sale of the decommissioned Canadian mine, Premier Gold and associated exploration rights.

		Quarter					Full year
	4-2018	4-2017	%	3-2018	%	2018	2017	%
Zinc, tonnes	71.470	78.082	-8	70.612	1	290.468	305.259	-5
Copper, tonnes	33.911	41.535	$-18$	34.496	-2	139,607	143.116	-2
Nickel, tonnes	3.521	3.450	2	3.647	-3	14.467	13.777	5
Lead, tonnes	13.610	16.741	-19	14.201	$-4$	54.873	59.555	-8
Gold, kg	2.165	2.029		1.835	18	7.678	7.237	6
Silver, kg	82.704	107.850	-23	100.987	$-18$	402.349	413.238	-3

Milled volumes at Aitik fell in comparison with the previous quarter, but were on par with last year's. The slight decrease in production should be viewed in the light of the favourable weather conditions and absence of maintenance shutdowns in the third quarter. Mined production, including waste rock extraction, increased. Mining occurred in areas similar to those worked in the third quarter, and the copper grade was 0.27% (0.32). The recovery levels for copper and gold remained stable in comparison with both the preceding quarter and the previous year. The copper grade for 2019 is expected to average 0.25%, which is in line with previous assessments.

Milled volumes in the Boliden Area were lower than in the third quarter but slightly higher than in the previous year. As previously announced, the Maurliden open pit is almost mined out now, with only limited volumes in 2018 and 2019. The production of metal in concentrate for the majority of metals was, nonetheless, on par with levels in both the third quarter and the previous year. High production in the Boliden Area's remaining three mines compensated for the fall-off in Maurliden's production.

Garpenberg's milled volumes were lower than in both the preceding quarter and the previous year, primarily due to ore transport problems at the mine. Mining occurred in areas with comparable zinc grades, but with lower silver grades than in both the third quarter and the previous year. Metal production fell, particularly with regard to silver. The zinc grade is expected to average 4.0% in 2019, which is in line with previous assessments.

Tara's milled volumes increased slightly from third quarter levels, but decreased year on year. Production was hampered by certain mining engineering production problems, and lower zinc grades also had a negative effect on metal production.

Milled volumes at Kevitsa remained on par with those in the previous quarter, but fell year on year. Copper production also fell in comparison with both the previous quarter and the previous year, due, primarily, to lower grades. Higher recovery levels resulted in nickel metal volumes being in line with levels in both the third quarter and the previous year, in spite of lower grades.

Milled volumes at Kylylahti continued to be both high and stable. Changes to mining plans resulted in continued high levels of nickel and cobalt production, but lower levels of copper production.

The annual report on the development of Boliden's Mineral Reserves and Mineral Resources will be published on 13 February 2019 in a separate press release, no. 3/2019, and on www.boliden.com.

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 also includes purchases of mined concentrate and secondary raw materials, and sales of metals and by-products.

• Stable production
• Deterioration in prices and terms
• The operating profit, excluding revaluation of process inventory, totalled SEK 575 m (766)

		Quarter		Full year
SEK m	4-2018	4-2017	3-2018	2018	2017
Revenues	12,087	13,036	11.934	50,634	47,691
Gross profit ex. revaluation of process inventory	2.492	2.587	2.456	10,088	9.776
Operating expenses	1.652	1.544	1,583	6,490	6,004
Depreciation	279	300	297	1,220	1.114
Operating profit ex. revaluation of process
inventory	575	766	589	2.435	2.732
Operating profit	667	945	340	2.364	2,834
Investments	690	602	298	1,656	1.862
Capital employed	18,237	18,018	19,067	18,237	18,018

		Quarter
SEK m	4-2018	4-2017	3-2018
Operating profit	667	945	340
Revaluation of process inventory	92	179	$-249$
Operating profit ex. revaluation of process inventory	575	766	589
Change		$-191$	-14
Analysis of change
Volumes		38	-41
Prices and terms		$-193$	90
Metal prices		$-264$	38
By-product prices		68	40
TC/RC terms		$-150$	$-14$
Metal premiums		$\overline{4}$	$-16$
Exchange rate effects		150	40
Costs (local currencies)		-56	-80
Depreciation		29	16
Other		-9	1
Change		-191	$-14$

Smelters' operating profit, excluding revaluation of process inventory, decreased to SEK 575 m (766) due to deterioration in prices and terms. Higher levels of base metal production and the absence of maintenance shutdowns did, however, have a positive effect on the profit. The year on year increase in costs was primarily due to energy costs, personnel expenses, and the cost of chemicals. The increase in costs from the previous quarter was due to seasonally higher personnel expenses and increased energy costs.

			Quarter		Full year
	4-2018	4-2017	%	3-2018	%	2018	2017	%
Zinc, tonnes	120,316	111,371	8	120,841	O	485,599	457,078	6
Copper, tonnes	93,073	89,088	4	88,669	5	363,574	352,660	3
Lead, tonnes	20,645	21,057	-2	14.738	40	75,784	78.241	-3
Nickel in matte, tonnes	7.937	6.443	23	7.486	6	31,307	25.469	23
Gold, kg	3.658	4.332	$-16$	4.022	-9	16.653	17.776	-6
Silver, kg	130,744	137.482	-5	133,520	-2	544,846	551,286	$-1$
Sulphuric acid, tonnes	422,562	408,673	З	412.152	3	1,630,406	1.612.663	$\mathbf 1$

Rönnskär's feed increased in comparison with both the preceding quarter and the previous year, and its production of copper broke the previous quarterly record. Gold production fell due to lower component grades in the raw material.

Harjavalta's copper feed improved from third quarter levels which suffered from production problems in the new sulphuric acid plant. The copper feed decreased, however, in comparison with the previous year, due to a short strike and some disruptions to production. Production of nickel matte remained at stable and high levels. Gold production decreased in comparison with both the third quarter and the previous year, primarily due to lower grades in the raw material.

Kokkola's feed was on par with levels in both the third quarter and the previous year. Zinc production increased, however, in comparison with the third quarter, due to improved process stability, and also exceeded the level for the previous year.

Feed and production levels at Odda fell in comparison with the previous quarter due to process engineering issues. Production did, however, increase year on year as a result of the expansion investment made and the fact that last year's figures were impacted by a planned maintenance shutdown.

Lead production at Bergsöe was higher than in the previous quarter when maintenance shutdowns were carried out, but slightly lower than in the previous year, due to generally lower levels of production stability.

No planned maintenance shutdowns were carried out during the quarter. Maintenance shutdowns carried out last year impacted the operating profit by SEK -105 m, and the corresponding figure for the previous quarter was SEK -70 m.

Maintenance shutdowns at the smelters in 2019 are expected to impact the operating profit by SEK -480 m (-200), with SEK -270 m (-130) of this impact expected to occur in the second quarter, SEK -140 m (-70) in the third quarter, and SEK -70 m (0) in the fourth quarter.

Sales for the full year totalled SEK 52,454 m (49,531), with the increase due both to higher volumes and higher metal prices. The operating profit, excluding revaluation of process inventory, was SEK 9,074 m (8,913). The improvement in the profit was due, primarily, to higher volumes and metal prices which were, in part, countered by higher costs. Costs increased by 4% in local currencies and were primarily due to increased costs for energy and chemicals. Planned maintenance shutdowns in Smelters impacted the profit by SEK -200 m (-415). The increase in mined production entailed increased depreciation. The net SEK -13 m item affecting comparability derives from the sale of the decommissioned Canadian mine, Premier Gold, and the costs associated with a fire at Boliden Bergsöe.

	Full Year
SEK m	2018	2017
Operating profit	9,004	9,015
Revaluation of process inventory	$-70$	102
Operating profit ex. revaluation of process inventory	9,074	8,913
Change		161
Analysis of change
Volumes		747
Prices and terms		237
Metal prices		342
By-product prices		201
Realised metal price and currency hedging		22
TC/RC terms		$-348$
Metal premiums		$-25$
Exchange rate effects		46
Costs (local currencies)		$-607$
Depreciation		$-166$
Items affecting comparability		$-13$
Other		$-36$
Change		161

Net financial items totalled SEK -240 m (-278), and the net profit was SEK 7,201 m (6,856). The earnings per share were SEK 26.32 (25.06).

Investments during the year totalled SEK 6,140 m (5,588). Just over SEK 4 billion comprised maintenance investments, including mine development work and waste rock excavation. The investment in a new crusher at Aitik and the new sulphuric acid plant at Harjavalta were two large-scale investments that Boliden made during the year.

FINANCIAL PERFORMANCE PER UNIT

Boliden reports the operating profit for the Smelters and Mines segment and the production data per unit quarterly. The operating profit per unit is also reported on a full-year basis.

Operating profit per unit, ex. revaluation of process inventory

	Full year
SEK m	2018	2017
Aitik	2,494	2,073
The Boliden Area	756	868
Garpenberg	2,225	2,606
Kevitsa	974	893
Kylylahti	$-31$	34
Tara	798	942
Mines other incl. exploration and technical development	$-765$	$-735$
Mines total	6,451	6,681
Rönnskär	756	900
Harjavalta	1,043	707
Kokkola	461	688
Odda	168	225
Bergsöe	8	110
Smelters other incl. concentrate purchases and metal sales	-2	102
Smelters total	2,435	2,732
Other incl. internal profit	189	$-500$
Group total	9,074	8,913

₂

The average number of Boliden employees (full-time equivalents) was 5,819 (5,684). The accident frequency for Boliden's own employees and contractors during the fourth quarter was 8.3 (4.4). An action programme that increases the focus on working safely in winter conditions has been initiated.

Levels of carbon dioxide intensity and discharges of metals to water will reach Boliden's environmental goals for 2018 by a good margin. Emissions of sulphur dioxide and metals to air are slightly elevated. Measures have been put in place to reduce emissions during the year and both values have shown a downward trend during the quarter. However, all environmental indicators are within the allowed permits for Boliden's operations.

No serious environmental incident occurred during the quarter or during the year.

₂

________________________________

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

The Parent Company, Boliden AB, conducts limited operations and is in a tax agreement with Boliden Mineral AB. Boliden AB has one employee who is compensated by Boliden Mineral AB. The Income Statements and Balance Sheets for the Parent Company are presented on page 21.

The Finnish tax authorities have increased Boliden Kevitsa Oy's tax assessment for the financial years from 2012-2016, which would result in an increased tax expense of EUR 29 m. The increased assessment is attributable to the period before Kevitsa was acquired by Boliden. No provision has been made in the closing accounts due to, amongst other things, the intention to appeal the decision and the guarantee undertakings included in the acquisition agreement.

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, affects 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 impairment 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 characteristics of the contractual cash flows from the financial assets. The amendment has no effect on the classification of Boliden's financial instruments, except for certain naming changes. A provision for impairment loss shall be reported for all financial assets valued at amortised cost. In Boliden's case, this applies to trade and other receivables. This 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 23.

IFRS 16, Leases: The standard will come into force for financial years beginning on 1 January 2019 or thereafter and provides a comprehensive model for identification and reporting of leasing agreements, both for lessors and lessees. It replaces the existing leasing standard, IAS 17 – Leases, and related interpretations. The first applicability date for the Boliden Group will be 1 January 2019.

Under IFRS 16, a leasing agreement is an agreement that transfers the right to control the use of an identified asset for a period of time in return for compensation. Control exists if the customer has the right to obtain substantially all of the economic benefits of the use from the identified asset and has the right to decide on the way in which the identifiable asset is used.

Boliden has, for many years now, adopted a restrictive position on financing the purchase of fixed assets via leasing, and leasing agreements are consequently only signed in exceptional cases. Those leasing agreements that do exist relate primarily to production equipment. Boliden has conducted an analysis of existing leasing agreements and similar agreements prior to the introduction of IFRS 16, in order to assess the impact of the new standard. The analysis has shown that there will be no substantial effect on Boliden's reporting as a result of the new standard.

IFRS 16 primarily changes the reporting method for leasing agreements previously classified as operational in accordance with IAS 17, which were not reported in the balance sheet. The approach is based on the concept that the lessee has a right to use an asset for a fixed period of time and, at the same time, an obligation to pay for this right.

Boliden has elected to apply the simplified transition method, which eliminates any recalculation of the comparison year. Calculations of the liability for leased assets are based on the current value of the remaining leasing charges, discounted by the leasing agreement's implicit interest rate, or, where this cannot be established, by the marginal borrowing rate. The marginal borrowing rate is set centrally on the basis of the Group's financing requirements and terms. The asset's right-of use is initially valued at an amount corresponding to the liability. Boliden uses the recognition exemption rules available in conjunction with the transition to IFRS 16 when determining liability and rightof-use assets in the balance sheet. Under these exemption rules, leasing agreements with a remaining term of twelve months or less, and leasing agreements for which the underlying asset is of minor value, shall not be included when determining the liability or right-of-use assets in the balance sheet.

The effect on the Income Statement is that costs reported in the operating profit under IAS 17 shall now be divided up by depreciation, which continues to be reported in the operating profit, and interest, which is reported in the net financial items. The point in time when expenses are recognised will also entail a change from the way in which today's operational leasing agreements are reported. The depreciation will be effected linearly while that element that refers to interest will be initially higher and then decrease over time. The effect on Boliden's profit is estimated to be minimal.

The effect on Boliden's Balance Sheet is estimated at approximately SEK 230 m in the form of right-of-use assets and corresponding leasing liabilities. The transition to IFRS 16 is expected to have only a marginal effect on Boliden's key ratios.

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, 13 February 2019

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

The Nomination Committee, prior to the Annual General Meeting, comprises the Chairman of the Nomination Committee, Jan Andersson (Swedbank Robur fonder), Lars-Erik Forsgårdh, Ola Peter Gjessing (Norges Bank Investment Management), Anders Oscarsson (AMF), Tommi Saukkoriipi (SEB Investment Management) and Anders Ullberg (Chairman of the Board).

Financial calendar

8 March 2019	The 2018 Annual and Sustainability Report is published on www.boliden.com. The printed version will be available from Boliden's Head Office from 22 March 2019.
• $13 - 14$ March 2019	Capital Market Days
3 May 2019	The Interim Report for the first quarter of 2019 and the AGM in Boliden
3 May 2019	The 2019 AGM will be held in Boliden. Shareholders wishing to have a matter raised at the Meeting must submit a written proposal by email to arsstamma@boliden.com, or by letters in the post to Boliden AB, Box 44, 101 20 Stockholm, Sweden, headed "Matters for the AGM". Requests must be submitted to the Board of Directors no later than 15 March 2019.
• 19 July 2019	The Interim Report for the second quarter of 2019
24 October 2019	The Interim Report for the third quarter of 2019
13 February 2020	The fourth quarter and Year-End Report for 2019

Presentation of the report

The report will be presented via a webcast/conference call.

Time:	Wednesday, 13 February at 09:30 (CET)
Place:	Lundqvist och Lindqvist, Dagerman Auditorium
Venue:	Klarabergsviadukten 90, Stockholm

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: 08-5199 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

The final contract governing Boliden's purchase of 26 new mine trucks for Kevitsa and Aitik was signed on 3 December 2018. The deal, which was announced on 19 October, entails an investment of approximately SEK 900 million. The supplier is Komatsu.

Consolidated Income Statements

		Quarter	Full year
SEK m	4-2018	4-2017	3-2018	2018	2017
Revenues	12,543	13,619	12,510	52,454	49,531
Cost of goods sold	$-10,033$	$-10,059$	$-10,350$	$-41,761$	$-38,988$
Gross profit	2,509	3,560	2,159	10,693	10,543
Selling expenses	$-109$	$-105$	$-113$	$-438$	$-417$
Administrative expenses	$-165$	$-109$	$-128$	$-648$	$-452$
Research and development costs	$-199$	$-227$	$-164$	$-705$	$-659$
Other operating income and expenses	62	$-30$	16	105	$-6$
Results from participations in associated companies	-6		$\cup$	$-4$	6
Operating profit	2,093	3,091	1,771	9,004	9,015
Financial income	0	2	$\cup$	2	4
Financial expenses	$-52$	$-63$	$-64$	$-242$	$-282$
Profit after financial items	2,040	3,030	1,707	8,763	8,737
Tax	$-174$	$-782$	$-422$	$-1,562$	$-1,881$
Net profit	1,866	2,248	1,285	7,201	6,856
Net profit attributable to:
Owners of the Parent Company	1,866	2,248	1,284	7,198	6,854
Non-controlling interests	0	O	1	3	5

Earnings and equity per share

		Quarter	Full year
SEK m	4-2018	4-2017	3-2018	2018	2017
Earnings per share 1, SEK	6.82	8.22	4.69	26.32	25.06
Ordinary dividend per share 2 , SEK			Section	8.75	8.25
Redemption per share 2 . SEK			$\overline{\phantom{a}}$	4.25	5.75
Equity per share, SEK	142.59	128.13	136.25	142.59	128.13
Number of shares			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
Number of own shares held

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

2 2018's amounts represent proposed dividend and share redemption respectively.

Key ratios - the Group

		Quarter	Full year
SEK m	4-2018	4-2017	3-2018	2018	2017
Return on capital employed 1, %			. .	20.3	21.0
Return on equity 2 , %		$\sim$	. .	19.4	21.6
Equity/assets ratio, %	66	63	65	66	63
Net debt/equity ratio 3, %	5	11	10	5	11
Net reclamation liability 4, SEK m	1.757	1.657	1.720	1.757	1.657
Net debt, SEK m	2.034	3.752	3.753	2.034	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

4 Reclamation liability minus accumulated capitalised restoration costs.

Consolidated Statements of Comprehensive Income

	Quarter		Full year
SEK m	4-2018	4-2017	3-2018	2018	2017
Profit for the period	1,866	2,248	1,285	7,201	6,856
Other comprehensive income
Items that will be reclassified to the Income Statement
Change in market value of derivative instruments	3	$-7$	-2	9	$-26$
Fiscal effect on derivative instruments	-1		1	-2	5
Transfers to the Income Statement	1	6	1	4	31
Tax on transfers to the Income Statement	O	-1	O	-1	$-7$
Sum cash flow hedging	з	$-1$	-1	10	з
The period's translation difference on overseas operations	$-115$	372	$-211$	694	320
Profit on hedging of net investments in overseas operations	5	$-96$	23	$-121$	-94
Tax on the period's profit from hedging instruments	-1	21	-5	27	21
Sum translation exposure	$-113$	297	$-193$	600	247
Total items that will be reclassified	$-110$	296	$-194$	610	250
Items that will not be reclassified to the Income Statement
Revaluation of defined benefit pension plans	$-26$	$-12$		$-26$	$-12$
Tax attributable to items that will not be reversed to the Income Statement	5	2	×.	5	2
Total items that will not be reclassified	$-21$	-9		$-21$	-9
Total other comprehensive income	$-131$	287	$-194$	589	241
Total comprehensive income for the period	1,735	2,535	1,091	7,790	7,096
Total comprehensive income for the period attributable to:
Owners of the Parent Company	1,735	2.535	1,090	7,787	7,094
Non-controlling interests	O	O	1	3	2

Consolidated Balance Sheets

SEK m	31 Dec 2018	31 Dec 2017
Intangible assets	3,566	3,482
Property, plant and equipment	38,877	36,313
Participations in associated companies	25	29
Other shares and participations	18	30
Deferred tax assets	136	58
Long-term receivables	131	133
Total non-current assets	42,752	40,046
Inventories	10,358	9,500
Trade and other receivables	1,864	2,324
Tax receivables	90	71
Interest-bearing receivables		5
Derivative instruments	154	141
Other current receivables	1,235	1,288
Cash and cash equivalents	2,272	2,510
Total current assets	15,975	15,836
Total assets	58,727	55,882
Equity	39,011	35,053
Pension provisions	967	943
Other provisions	3,898	2,911
Deferred tax liabilities	2,941	3,089
Liability to credit institutions	3,145	4,004
Other interest-bearing liabilities	O	2
Total non-current liabilities	10,950	10,949
Liability to credit institutions	216	1,331
Other interest-bearing liabilities	5	5
Trade and other payables	5,106	4,426
Other provisions	134	226
Current tax liabilities	683	1,166
Derivative instruments	34	92
Other current liabilities	2,590	2,633
Total current liabilities	8,767	9,880
Total equity and liabilities	58,727	55,882

Consolidated Statements of Changes in Equity $\overline{a}$ $\overline{a}$

2018 2017 SEK m 29,394 35,053 Opening balance 7.790 7,096 Total comprehensive income for the period
$-2,256$ $-1,436$ Dividend
$-1,573$ Redemption
Closing balance 39,011 35,053
Total equity attributable to:
35,044 Owners of the Parent Company 39,000
11 9 Non-controlling interests

On 31 December 2018, the hedging reserve, after fiscal effects, totalled SEK 11 m (1).

Consolidated Statements of Cash Flow

Income Statements - the Parent Company

	Quarter	Full year
SEK m	4-2018	4-2017	2018	2017
Dividends from subsidiaries		3,000	6,000	3,000
Results from participations in associated companies	-6	$\overline{\phantom{0}}$	-6	$\overline{\phantom{0}}$
Profit after financial items	-6	3,000	5,994	3,000
Tax
Profit for the period	-6	3,000	5,994	3,000

The Parent Company, Boliden AB, conducts limited operations, is in a tax agreement with Boliden Mineral AB, and has one employee who is compensated by Boliden Mineral AB. Boliden AB had no sums to report under Other Comprehensive Income for the fourth quarter of 2018.

Balance Sheets - the Parent Company

	31 Dec	31 Dec
SEK m	2018	2017
Participations in Group companies	3,911	3,911
Participations in associated companies		5
Long-term financial receivables, subsidiaries	11,068	8,897
Current financial receivables, subsidiaries		519
Total assets	14,980	13,333
Equity	14,480	12.314
Long-term liabilities to credit institutions	500	500
Current liabilities to credit institutions		519
Total liabilities and equity	14.980	13,333

31 Dec 2018, SEK m	Reported value	Fair value
Other shares and participations	18	18
Trade and other receivables	1,864	1,864
Derivative instruments	154	154
Cash and cash equivalents	2.272	2.272
Total assets	4,308	4,308
Liabilities to credit institutions	3.361	3,365
Other interest-bearing liabilities	2	P
Trade and other payables	5,106	5,106
Derivative instruments	34	34
Total liabilities	8,504	8,508

The fair value of derivatives is based on listed bid and asks 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 31 December 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 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	4-2018	4-2017	4-2018	4-2017	4-2018	4-2017	4-2018	4-2017
Finished metals		$\overline{\phantom{0}}$	10.542	11,273		$\overline{\phantom{a}}$	10.542	11,273
Metal in concentrate	435	581	O	$\Omega$		$\overline{\phantom{a}}$	435	581
Intermediates			1,198	1,498		$\sim$	1.198	1,498
By-products		О	340	249		$\overline{\phantom{a}}$	340	249
Strategic hedges		-5		$\sim$		٠		-5
Other sales	О	O	27	55			28	22
Total external revenues	435	576	12,107	13,042		о	12,543	13,619

	Full Year
	Mines		Smelters		Other		The Group
SEK m	2018	2017	2018	2017	2018	2017	2018	2017
Finished metals		۰	44,301	42,093		$\overline{\phantom{a}}$	44,301	42,093
Metal in concentrate	1,788	1,826	O	O		۰	1.788	1,826
Intermediates		$\overline{\phantom{a}}$	5,053	4,718		$\overline{\phantom{a}}$	5,053	4,718
By-products	0	$\circ$	1,167	847	$\bigcirc$	$\overline{\phantom{a}}$	1.167	847
Strategic hedges		-22		۰		۰		-22
Other sales	O	O	145	68	$\cup$	1	145	68
Total external revenues	1,788	1.804	50,666	47,727	0	1	52,454	49,531

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 31 December 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	740	TC/RC Copper	75	USD/SEK	1.490
Copper	730	TC Zinc	55	EUR/USD	970
Gold	300	TC Lead	$-10$	USD/NOK	130
Silver	165
Lead	110
Nickel	100

A weighted index of the prices, terms, and currencies with the greatest impact on Boliden's profits is shown below, together with a weighted metal price and treatment charge index. The Boliden-weighted index fell by 8% during the year, but is at a historically high level. Currencies and metal prices have often displayed a negative correlation that has had an equalising effect on the Boliden-weighted index and Boliden's profits.

Full-year data per segment

	Full year
SEK m	2018	2017
THE GROUP
Revenues	52,454	49,531
Operating expenses	15,125	14,107
Depreciation	4,930	4,601
Operating profit ex. revaluation of process inventory	9,074	8,913
Operating profit	9,004	9,015
Investments	6,140	5,588
Capital employed	44,441	42,931
MINES
Revenues	18,404	18,195
Operating expenses	8,481	7,947
Depreciation	3,708	3,487
Operating profit	6,451	6,681
Investments	4,482	3,722
Capital employed	26,328	25,502
SMELTERS
Revenues	50,634	47,691
Gross profit, ex. revaluation of process inventory	10,088	9,776
Operating expenses	6,490	6,004
Depreciation	1,220	1,114
Operating profit, ex. revaluation of process inventory	2,435	2,732
Operating profit	2,364	2,834
Investments	1,656	1,862
Capital employed	18,237	18,018
OTHER/ELIMINATIONS
Revenues	$-16,584$	$-16,355$
Operating expenses	154	157
Depreciation	1	1
Operating profit, internal profit	347	$-343$
Operating profit, other	$-158$	$-156$
Investments	2	$\overline{4}$
Capital employed	$-125$	-589

Quarterly data per segment

SEK m	1-2017	2-2017	3-2017	4-2017	1-2018	2-2018	3-2018	4-2018
THE GROUP
Revenues	12.730	11,554	11,628	13,619	13,331	14,071	12,510	12,543
Operating expenses	3,469	3,634	3,267	3,737	3,655	3,965	3,606	3,898
Depreciation	1,092	1,142	1,127	1,241	1,269	1,223	1,217	1,221
Operating profit ex. revaluation of process inventory	2.061	2.196	1.744	2,912	2,724	2,329	2,020	2,001
Operating profit	2.149	1,916	1,860	3,091	2,672	2,468	1,771	2,093
Investments	1,096	1,385	1,240	1,867	1,109	1,561	1,457	2,013
Capital employed	43,093	42,630	42,335	42,931	44,292	44,817	44,406	44,441
MINES
Revenues	4,315	4,415	4,175	5,291	4,734	5,251	3,941	4,478
Gross profit	4,273	4,463	4,138	5,316	4,920	5,178	4,010	4,485
Operating expenses	1,928	2,033	1,842	2,143	2,059	2,215	2,002	2,204
Depreciation	820	872	854	941	936	912	919	941
Operating profit	1,525	1,555	1,421	2,179	1,931	2,044	1,091	1,384
Investments	755	889	815	1,264	878	1,123	1,158	1,323
Capital employed	25,208	25.375	24.975	25,502	26,065	25,686	25,546	26,328
SMELTERS
Revenues	12,361	10,893	11,401	13,036	12,956	13,656	11,934	12,087
Gross profit ex. revaluation of process inventory	2,577	2,389	2,224	2,587	2,518	2,622	2,456	2,492
Operating expenses	1,478	1,583	1,399	1,544	1,553	1,701	1,583	1,652
Depreciation	272	269	272	300	333	311	297	279
Operating profit ex. revaluation of process inventory	835	563	568	766	640	630	589	575
Operating profit	922	283	684	945	587	769	340	667
Investments	341	495	425	602	231	437	298	690
Capital employed	18,568	17,673	17,957	18,018	18,613	19,761	19,067	18,237
OTHER/ELIMINATIONS
Revenues	$-3,946$	$-3,753$	$-3,948$	$-4,708$	-4,359	$-4,837$	$-3,366$	$-4,022$
Operating expenses	63	17	27	50	44	49	20	42
Operating profit, internal profit	$-260$	118	$-218$	16	198	$-297$	361	86
Operating profit, other	-39	$-40$	$-28$	$-50$	$-44$	$-49$	$-21$	$-44$
Investments		2	O	2	1	O	1	$\cup$
Capital employed	-683	$-418$	$-597$	$-589$	$-386$	$-630$	$-208$	$-125$

Consolidated quarterly data

	1-2017	2-2017	3-2017	4-2017	1-2018	2-2018	3-2018	4-2018
Financial performance $1$ , the Group
Revenues, SEK m	12,730	11,554	11,628	13,619	13,331	14,071	12,510	12,543
Operating profit before depreciation, SEK m	3,241	3,058	2,987	4,332	3,941	3,691	2,988	3,314
Operating profit ex. revaluation of process
inventory, SEK m	2,061	2,196	1,744	2,912	2,724	2,329	2,020	2,001
Operating profit, SEK m	2,149	1,916	1,860	3,091	2,672	2,468	1,771	2,093
Profit after financial items, SEK m	2,075	1,843	1,790	3,030	2,614	2,401	1,707	2,040
Net profit, SEK m	1,669	1,461	1,478	2,248	2,011	2,038	1,285	1,866
Earnings per share, SEK	6.10	5.34	5.40	8.22	7.35	7.45	4.69	6.82
Free cash flow, SEK m	1,060	2,152	1,715	2,382	1,431	1,718	822	1,721
Net debt/equity ratio, %	27	25	19	11	6	13	10	5
Production of metal in concentrate 2
Zinc, tonnes	77,139	80,421	69,616	78,082	77,626	70,760	70,612	71,470
Copper, tonnes	29,650	38,229	33,702	41,535	36,900	34,300	34,496	33,911
Nickel, tonnes	3,340	3,519	3,468	3,450	3,523	3,777	3,647	3,521
Lead, tonnes	14,868	15,066	12,880	16,741	13,882	13,180	14,201	13,610
Cobalt, tonnes	141	144	150	152	190	190	252	237
Gold, kg	1,702	1,856	1,650	2,029	1,911	1,768	1,835	2,165
Gold, troy oz.	54,732	59,683	53,033	65,217	61,430	56,834	58,992	69,599
Silver 3 , kg	104,450	111,197	89,741	107,850	121,334	97,324	100,987	82,704
Silver 3 , 'OOO troy oz.	3,358	3,575	2,885	3.467	3,901	3,129	3,247	2,659
Palladium, kg	234	276	260	251	276	322	304	255
Platinum, kg	326	371	365	355	380	443	415	338
Tellurium, kg	11,251	7,186	8,824	7.718	12,021	11,382	8,053	13,185
Metal production, Smelters
Zinc, tonnes	115,248	115,468	114,991	111,371	119,710	124,732	120,841	120,316
Copper, tonnes	88,708	87,430	87,434	89,088	92,212	89,621	88,669	93,073
Lead, tonnes	6,049	7,561	7,524	7,131	7,317	6,745	7,300	7,290
Lead alloys, tonnes (Bergsöe)	14,061	12,953	9,036	13,926	13,596	12,743	7,438	13,355
Nickel in matte, tonnes	7,579	4,038	7,409	6,443	8,356	7,528	7,486	7,937
Gold, kg	4,902	4,150	4,391	4,332	4,452	4,520	4,022	3,658
Gold, troy oz.	157,609	133,417	141,186	139,290	143,145	145,315	129,323	117,598
	143,764	133,960	136,080	137,482	135,340	145,242	133,520	130,744
Silver, kg
Silver, 'OOO troy oz.	4,622 423,535	4,307	4,375 411,287	4,420	4,351	4,670	4,293	4,203
Sulphuric acid, tonnes		369,168		408,673	405,262	390,429	412,152	422,562
Metal prices in USD, average per quarter
Zinc, USD/tonne	2,780	2,596	2,963	3.236	3,421	3,112	2.537	2,631
Copper, USD/tonne	5,831	5,662	6,349	6,808	6,961	6,872	6,105	6,172
Lead, USD/tonne	2,278	2,161	2,334	2,492	2,523	2,388	2,104	1,964
Nickel, USD/tonne	10,271	9,225	10,528	11,584	13,276	14,476	13,266	11,516
Gold, USD/troy oz.	1,219	1,257	1,278	1,277	1,331	1,306	1,213	1,227
Silver, USD/troy oz.	17.42	17.21	16.84	16.73	16.77	16.53	15.02	14.54
Metal prices in SEK, average per quarter
Zinc, SEK/tonne	24,806	22,842	24,106	26,910	27,733	26,982	22,706	23,788
Copper, SEK/tonne	52,033	49,812	51,659	56,615	56,427	59,579	54,634	55,803
Lead, SEK/tonne	20,325	19,012	18,992	20,726	20,451	20,701	18,831	17,756
Nickel, SEK/tonne	91,649	81,165	85,665	96,323	107,623	125,499	118,719	104,119
Gold, SEK/troy oz.	10,879	11,063	10,399	10,619	10,788	11,325	10,859	11,098
Silver, SEK/troy oz.	155.45	151.43	136.99	139.09	135.98	143.33	134.37	131.48
Exchange rates, average per quarter
USD/SEK	8.92	8.80	8.14	8.32	8.11	8.67	8.95	9.04
EUR/USD	1.07	1.10	1.17	1.18	1.23	1.19	1.16	1.14
EUR/SEK	9.51	9.69	9.56	9.79	9.96	10.33	10.41	10.32
USD/NOK	8.44	8.52	7.96	8.16	7.84	8.02	8.24	8.42

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

3 Includes silver production at Tara that is not payable.

Full-year data per unit - Mines

		Full year
	2018	2017
AITIK
Milled ore, Ktonnes	38,472	39,045
Head grades
Copper (%)	0.29	0.28
Gold (g/tonne)	0.14	0.13
Silver (g/tonne)	1.82	1.98
Metal content
Copper, tonnes	99,283	97,573
Gold, kg	3,150	2,899
Gold, troy oz.	101,285	93,197
Silver, kg	54,894	61,862
Silver, 'OOO troy oz.	1,765	1,989
Revenues, SEK m	6,017	5,487
Operating profit before depreciation, SEK m	3,974	3,513
Operating profit, SEK m	2,494	2,073
Cash Cost (Normal C1), USc/lb. copper	77	82
THE BOLIDEN AREA
Milled ore, Ktonnes	1,947	2,065
Of which, smelter slag	199	264
Head grades
Zinc (%)	3.5	4.0
Copper (%)	O.4	0.4
Lead (%)	0.4	0.4
Gold (g/tonne)	1.9	1.9
Silver (g/tonne)	52	58
Tellurium (g/tonne)	45	35
Metal content
Zinc, tonnes	56,604	65,501
Copper, tonnes	4,780	5,132
Lead, tonnes	2,907	3,397
Gold, kg	2,752	2,476
Gold, troy oz.	88,461	79,615
Silver, kg	72,154	80,781
Silver, 'OOO troy oz.	2,320	2,597
Tellurium, kg	44,641	34,979
Revenues, SEK m	2,361	2,612
Operating profit before depreciation, SEK m	1,149	1,267
Operating profit, SEK m	756	868
Cash Cost (Pro rata C1), USc/lb. zinc	78	79
Cash Cost (Pro rata C1), USc/lb. copper	153	143
Cash Cost (Pro rata C1), USD/troy oz. gold	692	687

Full-year data per unit - Mines

	Full year
	2018	2017
GARPENBERG
Milled ore, Ktonnes	2,622	2,634
Head grades
Zinc (%)	4.1	4.3
Copper (%)	O.1	0.1
Lead $(\%)$	1.6	1.8
Gold (g/tonne)	0.3	0.3
Silver (g/tonne)	135	133
Metal content
Zinc, tonnes	101,111	107,496
Copper, tonnes	693	768
Lead, tonnes	35,255	39,075
Gold, kg	542	541
Gold, troy oz.	17,413	17,406
Silver, kg	272,749	267,548
Silver, 'OOO troy oz.	8,769	8,602
Revenues, SEK m	3,700	4,019
Operating profit before depreciation, SEK m	2,685	3,049
Operating profit, SEK m	2,225	2,606
Cash Cost (Pro rata C1), USc/lb. zinc	47	46
KYLYLAHTI
Milled ore, Ktonnes	785	809
Head grades
Zinc, %	O.4	0.5
Copper, %	1.0	1.3
Nickel, %	0.2
Cobalt, g/tonne	0.2
Gold, g/tonne	1.0	1.1
Metal content
Zinc, tonnes	1,011	1,682
Copper, tonnes	7,353	9,686
Nickel, tonnes	518
Cobalt, tonnes	278
Gold, kg	605	674
Gold, troy oz.	19,435	21,657
Revenues, SEK m	674	708
Operating profit before depreciation, SEK m	241	267
Operating profit, SEK m	$-31$	34
Cash Cost (Normal C1), USc/lb. copper	198	153

Full-year data per unit - Mines

		Full year
	2018	2017
KEVITSA
Milled ore, Ktonnes	7,582	7,911
Head grades
Copper, %	0.39	0.42
Nickel, %	0.26	0.25
Cobalt, g/tonne	0.01	0.01
Gold, g/tonne	0.15	0.16
Palladium, g/tonne	0.22	0.20
Platinum, g/tonne	0.36	0.32
Metal content
Copper, tonnes	27,498	29,957
Nickel, tonnes	13,948	13,777
Cobalt, tonnes	591	587
Gold, kg	630	647
Gold, troy oz.	20,261	20,790
Palladium, kg	1,157	1,021
Palladium, troy oz.	37,209	32,838
Platinum, kg	1,576	1,418
Platinum, troy oz.	50,683	45,573
Revenues, SEK m	2,922	2,680
Operating profit before depreciation, SEK m	1,686	1,502
Operating profit, SEK m	974	893
Cash Cost (Normal C1), USc/lb. nickel	$-73$	$-150$
Cash Cost (Pro rata C1), USc/lb. nickel	315	278
Cash Cost (Pro rata C1), USc/lb. copper	146	139
TARA
Milled ore, Ktonnes	2,200	2,311
Head grades
Zinc(%)	6.3	5.9
Lead $(\%)$	1.2	1.1
Metal content
Zinc, tonnes	131,742	130,580
Lead, tonnes	16,712	17,083
Silver 1 , kg	1,160	1,344
Silver 1, 'OOO troy oz.	37	43
Revenues, SEK m	2,727	2,691
Operating profit before depreciation, SEK m	1,160	1,275
Operating profit, SEK m	798	942
Cash Cost (Normal C1), USc/lb. zinc	78	70

1 Silver production at Tara is not payable.

Quarterly data per unit - Mines

	1-2017	2-2017	3-2017	4-2017	1-2018	2-2018	3-2018	4-2018
AITIK
Milled ore, Ktonnes	9,251	10,389	9,292	10.114	8,359	9,305	10,784	10,023
Head grades
Copper, %	0.23	0.29	0.27	0.32	0.36	0.28	0.25	0.27
Gold, g/tonne	0.13	0.14	0.12	0.14	0.16	0.13	0.14	0.14
Silver, g/tonne	1.98	2.33	1.78	1.79	2.65	1.68	1.54	1.54
Production of metal in concentrate
Copper, tonnes	18,820	26,792	22,334	29,627	26,991	23,462	24,691	24,139
Gold, kg	652	788	598	862	748	720	866	816
Gold, troy oz.	20,948	25,320	19,224	27,707	24,048	23,152	27,838	26,247
Silver, kg	12,640	19,843	13,666	15,714	17,269	12,838	12,554	12,232
Silver, 'OOO troy oz.	406	638	439	505	555	413	404	393
THE BOLIDEN AREA
Milled ore, Ktonnes	552	555	524	434	509	447	521	469
Of which, smelter slag	77	72	60	54	54	53	47	44
Head grades
Zinc, %	3.7	4.7	3.7	3.8	4.2	3.3	3.2	3.4
Copper, %	O.3	O.4	0.3	0.4	O.4	0.3	0.4	O.4
Lead, %	O.4	0.5	0.4	0.4	0.5	0.3	0.3	O.3
Gold, g/tonne	1.8	2.0	1.9	2.0	2.2	1.8	1.4	2.3
Silver, g/tonne	59	62	49	60	68	46	48	46
Tellurium, g/tonne	42	26	35	37	43	41	40	55
Production of metal in concentrate
Zinc, tonnes	16,017	20,611	15,465	13,409	17,589	12,122	13,512	13,381
Copper, tonnes	1,157	1,590	1,124	1,260	1,243	1,017	1,302	1,218
Lead, tonnes	806	1,095	710	786	1,131	455	749	572
Gold, kg	610	624	625	618	767	600	511	874
Gold, troy oz.	19,609	20,046	20,078	19,882	24,652	19,286	16,438	28,085
Silver, kg	22,014	23,526	17,009	18,232	25,633	13,968	17.104	15,450
Silver, 'OOO troy oz.	708	756	547	586	824	449	550	497
Tellurium, kg	11,251	7,186	8,824	7,718	12,021	11,382	8,053	13,185
TARA
Milled ore, Ktonnes	615	532	578	587	537	585	520	558
Head grades
Zinc, %	6.0	6.1	5.8	5.7	7.7	6.6	5.5	5.3
Lead, %	1.2	1.2	1.1	1.1	1.4	1.3	1.0	1.1
Production of metal in concentrate
Zinc, tonnes	35,376	30,894	32,098	32,212	39,610	36,514	27,175	28,443
Lead, tonnes	5,119	3,807	4,023	4,134	5,077	4,867	2,947	3,821
Silver 1 , kg	531	302	292	219	245	345	240	330
Silver 1, 'OOO troy oz.	17,072	9,703	9,394	7,041	7,877	11,092	7,716	10,610

1 Silver production at Tara is not payable.

Quarterly data per unit - Mines

	1-2017	2-2017	3-2017	4-2017	1-2018	2-2018	3-2018	4-2018
GARPENBERG
Milled ore, Ktonnes	637	672	631	695	646	670	676	629
Head grades
Zinc, %	4.2	4.5	3.7	4.9	3.4	3.5	4.7	5.0
Copper, %	0.1	0.1	0.0	O.1	O.1	O.O	O.1	O.1
Lead, %	1.7	1.8	1.6	2.0	1.4	1.4	1.8	1.8
Gold, g/tonne	0.3	0.3	0.2	O.3	0.3	0.3	0.2	O.3
Silver, g/tonne	143	131	121	137	153	134	135	117
Production of metal in concentrate
Zinc, tonnes	25,326	28,409	21,589	32,171	20,251	21,688	29,733	29,439
Copper, tonnes	202	174	149	243	175	163	171	183
Lead, tonnes	8,943	10,164	8,147	11,820	7,675	7,858	10,505	9,217
Gold, kg	145	126	100	169	136	153	115	137
Gold, troy oz.	4,673	4,056	3,228	5,449	4,381	4,932	3,707	4,393
Silver, kg	68,885	67,047	58,341	73,275	77,919	69,671	70,822	54,337
Silver, 'OOO troy oz.	2,215	2,156	1,876	2,356	2,505	2,240	2,277	1,747
KEVITSA
Milled ore, Ktonnes	1,959	1,917	2,026	2,010	1,886	1,881	1,900	1,915
Head grades
Copper, %	0.40	0.40	0.43	0.44	0.41	0.42	0.39	0.36
Nickel, %	0.24	0.26	0.25	0.25	0.25	0.28	0.28	0.25
Cobalt, g/tonne	0.02	0.01	0.01	0.01	0.01	0.01	0.01	0.01
Gold, g/tonne	0.15	0.15	0.16	0.17	0.15	0.16	0.15	0.14
Palladium, g/tonne	0.19	0.22	0.20	0.20	0.23	0.25	0.23	0.19
Platinum, g/tonne	0.29	0.33	0.32	0.33	0.36	0.40	0.38	0.32
Production of metal in concentrate
Copper, tonnes	7,017	6,894	7,966	8,080	7,065	7,197	6,838	6,397
Nickel, tonnes	3,340	3,519	3,468	3,450	3,432	3,697	3,478	3,342
Cobalt, tonnes	141	144	150	152	146	152	149	144
Gold, kg	147	153	172	175	155	166	167	142
Gold, troy oz.	4,727	4,933	5,519	5,611	4,990	5,340	5,379	4,552
Palladium, kg	234	276	260	251	276	322	304	255
Palladium, troy oz.	7,537	8,880	8,362	8,058	8,889	10,338	9,784	8,198
Platinum, kg	326	371	365	355	380	443	415	338
Platinum, troy oz.	10,481	11,940	11,749	11,403	12,223	14,229	13,351	10,880
KYLYLAHTI
Milled ore, Ktonnes	204	200	199	205	176	208	197	204
Head grades
Zinc, %	0.5	0.5	0.5	0.5	O.4	0.5	0.4	0.4
Copper, %	1.3	1.5	1.2	1.2	O.9	1.3	O.8	1.0
Nickel, %			÷,		0.2	0.2	0.2	0.2
Cobalt, %	$\overline{\phantom{a}}$		$\overline{\phantom{a}}$	$\sim$	0.2	0.2	0.2	0.2
Gold, g/tonne	1.0	1.0	1.0	1.2	0.8	0.8	1.1	1.2
Production of metal in concentrate
Zinc, tonnes	421	506	464	290	177	436	192	206
Copper, tonnes	2,455	2,779	2,128	2,325	1,425	2,461	1,493	1,974
Nickel, tonnes			÷,		91	79	169	179
Cobalt, tonnes	ä,	L,	$\overline{\phantom{a}}$		44	38	104	93
Gold, kg	149	166	155	204	104	128	175	197
Gold, troy oz.	4,776	5,328	4,984	6,569	3,359	4,123	5,630	6,323

Full-year data per unit - Smelters

	Full year
	2018	2017
RÖNNSKÄR
Feed, tonnes
Copper
Copper concentrate	664,572	631,108
Secondary raw materials	170,661	180,298
Of which, electronics	86,230	77,296
Copper, total	835,233	811,406
Lead
Lead concentrate	42,607	39,114
Secondary raw materials	1,981	2,058
Lead, total	44,588	41,172
Production
Cathode copper, tonnes	224,487	219,462
Lead, tonnes	28,652	28,265
Zinc clinker, tonnes	31,015	34,274
Gold, kg	13,352	13,109
Gold, troy oz.	429,267	421,469
Silver, kg	471,706	484,906
Silver, 'OOO troy oz.	15,165	15,590
Sulphuric acid, tonnes	518,320	505,463
Operating profit before depreciation 1, SEK m	1,091	1,221
Operating profit 1 , SEK m	756	900
BERGSÖE
Feed, tonnes
Battery raw materials	67,217	70,299
Production, tonnes
Lead alloys	47,132	49,976
Operating profit before depreciation 1, SEK m	61	124
Operating profit 1, SEK m	8	110

1 Excluding revaluation of process inventory.

Full-year data per unit - Smelters

		Full year
	2018	2017
HARJAVALTA
Feed, tonnes
Copper
Copper concentrate	522,426	542,596
Secondary raw materials	26,752	23,604
Copper, total	549,178	566,200
Nickel concentrate	296,462	259,166
Production
Cathode copper, tonnes	139,087	133,197
Nickel in matte	31,307	25,469
Gold, kg	3,301	4,667
Gold, troy oz.	106,114	150,032
Silver, kg	73,140	66,380
Silver, '000 troy oz.	2,351	2,134
Sulphuric acid, tonnes	670,564	677,497
Operating profit before depreciation 1, SEK m	1,315	953
Operating profit 1, SEK m	1,043	707
KOKKOLA
Feed, tonnes
Zinc concentrate	565,835	560,309
Production, tonnes
Zinc	295,029	284,992
Silver in concentrate, kg	18,205	18,188
Silver in concentrate, 'OOO troy oz.	585	585
Sulphuric acid	322,353	325,668
Operating profit before depreciation 1, SEK m	711	921
Operating profit 1, SEK m	461	688
ODDA
Feed, tonnes
Zinc concentrate, incl. zinc clinker	365,901	337,569
Production, tonnes
Zinc	190,570	172,086
Sulphuric acid	119,169	104,035
Operating profit before depreciation 1, SEK m	338	383
Operating profit 1 , SEK m	168	225

1 Excluding revaluation of process inventory.

Quarterly data per unit - Smelters

	1-2017	2-2017	3-2017	4-2017	1-2018	2-2018	3-2018	4-2018
RÖNNSKÄR
Feed, tonnes
Copper
Copper concentrate	166,460	158,538	140,103	166,007	162,283	163,418	168,100	170,771
Secondary raw materials	48,421	40,934	45,585	45,358	42,641	40,464	41.133	46,423
Of which, electronics	20,982	18,357	17,522	20,435	19,415	21,900	22,896	22,019
Copper, total	214,881	199.472	185,688	211,365	204,924	203,882	209,233	217,194
Lead
Lead concentrate	9,368	10,099	8,931	10,716	11,777	8.451	10.735	11,644
Secondary raw materials	247	148	447	1.216	476	426	423	656
Lead, total	9.615	10,247	9,378	11,932	12,253	8,877	11.158	12,300
Production
Cathode copper, tonnes	56,015	54,051	53,910	55,486	57,021	54,681	54.191	58,594
Lead, tonnes	6,049	7,561	7,524	7,131	7,317	6,745	7,300	7,290
Zinc clinker, tonnes	8,994	6,474	9,700	9.106	8,956	7,774	6,195	8,089
Gold, kg	3,518	2,868	3,401	3,323	3,375	3,575	3,316	3,086
Gold, troy oz.	113,103	92,206	109,329	106,831	108,497	114,946	106,609	99,215
Silver, kg	127,204	118,600	121,200	117,902	120,700	123,602	116,200	111,204
Silver, 'OOO troy oz.	4,090	3,813	3,897	3.791	3,881	3,974	3.736	3,575
Sulphuric acid, tonnes	134,710	122,464	118,289	130,000	125,433	130,301	129,212	133,374
BERGSÖE
Feed, tonnes
Battery raw materials	20,011	17.591	12,726	19,971	19,198	17,943	11,926	18,150
Production, tonnes
Lead alloys	14,061	12,953	9,036	13,926	13,596	12,743	7,438	13,355

Quarterly data per unit - Smelters

	1-2017	2-2017	3-2017	4-2017	1-2018	2-2018	3-2018	4-2018
HARJAVALTA
Feed, tonnes
Copper
Copper concentrate	137,213	115,708	147,180	142,495	136,835	123,373	130,340	131,879
Secondary raw materials	5,811	5,900	6,534	5,360	4,710	6,697	6,323	9,021
Copper, total	143,023	121.608	153.714	147.854	141,544	130,070	136,663	140,900
Nickel concentrate	76,881	40.788	73,560	67,936	74,314	68,849	72,813	80,486
Production
Cathode copper, tonnes	32,693	33,379	33,524	33,602	35,191	34,940	34,478	34,479
Nickel in matte	7,579	4,038	7,409	6,443	8,356	7,528	7,486	7,937
Gold, kg	1,384	1,282	991	1,010	1,078	945	706	572
Gold, troy oz.	44,506	41,211	31,857	32,459	34,648	30,369	22,714	18,383
Silver, kg	16,560	15,360	14,880	19,580	14,640	21,640	17,320	19,540
Silver, 'OOO troy oz.	532	494	478	630	471	696	557	628
Sulphuric acid, tonnes	181,471	139,105	183,566	173,355	170,454	159,339	166,873	173,897
KOKKOLA
Feed, tonnes
Zinc concentrate	135,475	138,678	142,335	149,192	141,573	141,423	146,598	148,617
Production, tonnes
Zinc	70,556	69,321	69,904	75,211	71,421	75,693	71,707	76,208
Silver in concentrate, kg	5,503	3,916	3,986	4,783	4,945	2,529	4,454	6,277
Silver in concentrate, 'OOO troy oz.	177	126	128	154	159	81	143	202
Sulphuric acid	81,713	76,393	80,964	86,598	78,256	71,516	87,433	85,148
ODDA
Feed, tonnes
Zinc concentrate, incl. zinc clinker	84,674	96,276	87,035	69,584	93,331	95,426	90,855	86,289
Production, tonnes
Zinc	44,692	46.147	45,087	36,160	48,289	49,039	49.134	44,108
Sulphuric acid	25,642	31,205	28,468	18,720	31,119	29,273	28,634	30,143

Martin wants to get the job done. He couldn't without metals.

Means of communication are essential for growing communities. They bring people and jobs closer together and make it possible for people to move forward in life. Trains, buses and tablets all depend on copper and zinc, that are used in everything from electrical wires to steel bodies. Martin is ready to do his best, and so are our metals.

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