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Boliden Interim / Quarterly Report 2020
2895_10-q_2020-04-28_ca42142a-aa42-42b3-99a5-60061e4669c6.pdf
Interim / Quarterly Report
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| Quarter | 12 months | Full year | |||
|---|---|---|---|---|---|
| SEK m | 1-2020 | 1-2019 | 4-2019 | Apr-Mar | 2019 |
| Revenues | 13.210 | 13.047 | 12.972 | 50.099 | 49.936 |
| Operating profit ex. revaluation of process | |||||
| inventory | 1,504 | 2.048 | 1,721 | 6,491 | 7,035 |
| Operating profit | 1,435 | 2,441 | 1,744 | 6,590 | 7,597 |
| Profit after financial items | 1,369 | 2,391 | 1,667 | 6,314 | 7,337 |
| Net profit | 1.067 | 1.891 | 1,360 | 4,965 | 5,788 |
| Earnings per share, SEK | 3.90 | 6.91 | 4.97 | 18.14 | 21.15 |
| Free cash flow | -845 | -323 | 822 | 113 | 635 |
| Net debt. | 6,534 | 2.611 | 5,493 | 6,534 | 5,493 |
| Return on capital employed, % | 13.3 | 15.8 | |||
| Return on equity, % | 12.1 | 14.3 | |||
| Net debt/equity ratio, % | 15 | ട | 13 | 15 | 13 |
- Operating profit excluding revaluation of process inventory totalled SEK 1,504 m (2,048).
- Free cash flow totalled SEK -845 m (-323).
- High working capital due to the COVID-19 pandemic.
- Increased production and higher zinc treatment charges in Smelters.
- Production disruptions and lower grades in Mines.
Revenues increased to SEK 13,210 m (13,047).
| Quarter | |||
|---|---|---|---|
| SEK m | 1-2020 | 1-2019 | 4-2019 |
| Operating profit | 1.435 | 2.441 | 1.744 |
| Revaluation of process inventory | -69 | 392 | 23 |
| Operating profit ex. revaluation of process inventory | 1,504 | 2.048 | 1,721 |
| Change | -544 | -217 | |
| Analysis of change | |||
| Volumes | -561 | -59 | |
| Prices and terms | 30 | -188 | |
| Metal prices | -264 | -146 | |
| By-product prices | -65 | -42 | |
| TC/RC terms | 97 | -14 | |
| Metal premiums | -33 | -15 | |
| Exchange rate effects | 294 | 29 | |
| Costs (local currencies) | -73 | -36 | |
| Depreciation | 49 | 50 | |
| Other | 13 | 16 | |
| Change | -544 | -217 |
| Quarter | |||
|---|---|---|---|
| SEK m | 1-2020 | 1-2019 | 4-2019 |
| Mines | 318 | 1.353 | 890 |
| Smelters | 1,117 | 853 | 759 |
| Other / eliminations | 69 | -158 | 71 |
| The Group | 1.504 | 2.048 | 1.721 |
Operating profit excluding revaluation of process inventory decreased to SEK 1,504 m (2,048). The decrease in comparison with the first quarter of last year was mainly due to lower grades in Mines. Prices and terms had a mildly positive effect primarily thanks to a stronger USD more than fully compensating for lower metal prices.
Operating profit excluding revaluation of process inventory was slightly lower than the previous quarter despite a total of SEK 170 SEK m being charged to the fourth quarter 2019 for maintenance shutdowns and strikes. Lower prices for metals and by-products had a negative effect.
Profit after financial items was SEK 1,369 m (2,391). Net profit was SEK 1,067 m (1,891), corresponding to earnings per share of SEK 3.90 (6.91). Return on capital employed and equity for the past 12 months were 13.3% and 12.1% respectively.
Investments totalled SEK 1.8 billion (1.6). Boliden intends to complete its investment plan for 2020 as previously announced. However, the COVID-19 pandemic will entail a degree of uncertainty regarding market conditions and trends, cash flows and the implementation of planned investments. Accordingly, Boliden is constantly evaluating trends and has contingency plans for managing changed circumstances. Maintenance investments for the current year are estimated at SEK 4.5 billion.
| SEK m | 1-2020 | 1-2019 | 4-2019 |
|---|---|---|---|
| Cash flow from operating activities before change in working capital |
2.260 | 2.787 | 2.405 |
| Change in working capital | -1.284 | -1.507 | 1.685 |
| Cash flow from operating activities | 976 | 1.281 | 4.091 |
| Cash flow from investment activities | -1,821 | -1.603 | -3.269 |
| Free cash flow | -845 | -323 | 822 |
Free cash flow decreased to SEK -845 m (-323), mainly due to lower earnings. Increased stocks as a result of the COVID-19 pandemic had a negative effect. Concentrate stocks were increased to ensure raw materials supply to the smelters in a time when uncertainty was growing on the concentrate markets. The increased stocks of refined metals was due to certain delays in external transports as a result of the COVID-19 pandemic.
Net financial items for the quarter totalled SEK -65 m (-49). Average interest on loans was 1.1% (1.3).
Net debt at the end of the quarter was SEK 6,534 m (2,611) and the net debt/equity ratio was 15% (6). In addition, net reclamation liability was SEK 2,280 m (1,825).
The average term of approved loan facilities was 3.3 years (3.3), and the fixed interest term on utilized loans was 1.4 years (0.5). At the end of the quarter, Boliden's current liquidity, in the form of cash and cash equivalents and unutilized binding credit facilities with a term of more than one year, totalled SEK 6,769 m (9,735).
After the end of the quarter, a loan in the amount of EUR 100 m was signed with Nordiska Investeringsbanken with an 8 year tenor. In addition, a loan in the amount of SEK 2,500 m has been signed with the Swedish Export Credit Corporation over a 4 year tenor with an operating credit guarantee from the Swedish Export Credit Agency. At the same time, an existing loan from the Swedish Export Credit Corporation in the amount of SEK 570 m is amortized. Furthermore, the duration of revolving credit facilities of EUR 730 m has been extended by one year, to new final maturities of EUR 343 m in May 2023 and EUR 387 m in May 2025.
As previously announced, the Finnish tax authority has reassessed Boliden Kevitsa Oy for the years 2012 through 2016, and this entails an increased tax expense of EUR 29 m. The increased assessment is attributable to the period prior to Kevitsa's acquisition by Boliden. The decision, which was confirmed in March by the Finnish Board of Adjustment, has been appealed by Boliden. In accordance with the provisions of the share purchase agreement, Boliden has demanded that the seller, First Quantum Minerals (FQM), indemnify Boliden for any harm that Boliden may incur as a result of the increased tax assessment. In order to avoid the limitation or loss of Boliden's rights in the share purchase agreement, Boliden has filed a lawsuit against FQM in the Ontario Superior Court of Justice in Canada, where FQM is domiciled. In the light of these circumstances, no provision for any increased tax expense has been made in the financial statements.
Boliden is working actively to protect the health of its employees and contractors and to prevent the spread of the virus. The company is planning for normal business operations during coming quarters. However, elevated risks linked to the effects of the COVID-19 pandemic remain such as increased shortterm absence, disrupted logistics, raw materials supply and the availability of spare parts. Preventive measures have been initiated in all of these areas including planning for slightly increased concentrate stocks in Smelters to reduce the risk of production losses.
The COVID-19 pandemic has resulted in a severe reduction in production at metal consuming industries during the latter part of the first quarter. On the other hand, the demand for precious metals rose, which is often the case in times of uncertainty. Significant mine capacity has been closed in South America and South Africa by order of the civil authorities. Mine and smelter production both fell in China. At the end of the first quarter, base metal prices had fallen to levels where the mines with the highest costs no longer had positive cash flows. Historically, mines have then closed temporarily. However, many of the mines that have closed as a result of the COVID-19 pandemic remain profitable even at current price levels. They are thus expected to renew production as soon as restrictions from the authorities are relaxed.
Base metal prices fell during the quarter, but the US dollar strengthened, cushioning the reduction in price in SEK. The prices for gold and palladium strengthened further, but the price trends are volatile.
| Quarter | ||||
|---|---|---|---|---|
| 1-2020 | 1-2019 | 4-2019 | ||
| Zinc, USD/tonne | 2.128 | 2.702 | 2.388 | |
| Copper, USD/tonne | 5.637 | 6.215 | 5.881 | |
| Nickel, USD/tonne | 12,723 | 12,369 | 15,450 | |
| Lead, USD/tonne | 1.847 | 2.036 | 2.045 | |
| Gold, USD/troz | 1,584 | 1.304 | 1,483 | |
| Silver, USD/troz | 16.9 | 15.6 | 17.3 | |
| USD /SEK | 9.67 | 9.17 | 9.63 | |
| EUR/SEK | 10.66 | 10.42 | 10.66 |
Driven by weaker demand from primarily the steel industry, global zinc demand has fallen compared to the first quarter last year. However, the statistics for zinc as well as for other metals are marred by great uncertainty due to the COVID-19 pandemic. Nonetheless, demand in Asia is considered to have improved somewhat at the end of the quarter. On the other hand, metal demand in Europe and the USA suffered a significant drop in March. Production in Chinese smelters fell, but not as far as Chinese metal demand, and production in the Western world remained at normal levels for the major part of the quarter. Consequently, global smelter production exceeded metal demand, and there was a surplus of zinc metal.
During the quarter, treatment charges for annual contracts were published at the level USD 299.75 (245) per tonne concentrate without escalators. The level on the spot market in China was significantly higher in the beginning of the first quarter, but treatment charges fell toward USD 250 per tonne at the end of the quarter. In March, the closure of zinc mines or production rate reductions were announced as countries introduce restrictions aimed at halting the COVID-19 pandemic.
Global copper demand fell. However, as with zinc, trends were different in Asia and the Western world. Underlying metal demand in Europe and North America was initially stable, but weakened in the latter part of March driven by the closure of metal consuming industries. Copper smelters in Asia produced at lower levels during the quarter as metal consuming industries reduced their production. However, in March production in the Chinese smelters is deemed to have increased gradually. The continued high smelter production outside China led to a global surplus of metal during the quarter.
Treatment charges on the spot market rose in the beginning of the quarter as smelters in Asia were unable to import normal quantities of concentrate, to the advantage of smelters in the rest of the world. Treatment charges fell toward the end of the quarter when mines began to close.
Data in the Market trends section comes from CRU Ltd and Wood Mackenzie, March 2020.
Driven by a fall in the production of stainless steel, global nickel demand fell compared to the first quarter last year. Global stainless steel production was falling even before the COVID-19 pandemic, but the rate of decline worsened. The fall in stainless steel production is estimated to be 5-10% compared to the first quarter last year. However, mines were closed in March due to restrictions related to the COVID-19 pandemic.
Prices for precious metals were strengthened by rising demand in a time of great uncertainty. The price of palladium has been rising for some time as a result of the scarcity of metal, and this rise was strengthened during the first quarter. Furthermore during the quarter, a number of major South African producers of both palladium and platinum announced that deliveries would temporarily cease as a result of restrictions related to the COVID-19 pandemic.
Contract prices for sulphuric acid in the Nordics was stable, but spot prices fell slightly. In the Nordics, sulphuric acid is mainly used within the paper, pulp, artificial fertilizer and chemical industries where demand was stable. However, in a global context demand fell slightly.
Boliden has six mining areas: Aitik, Boliden Area, Garpenberg, Kevitsa, Kylylahti and Tara. The Business Area includes production, exploration, technological development, environmental technology and sales of mined concentrates.
- Lower base metal prices and grades
- Breakdown and COVID-19 related shutdowns in Tara
- Operating profit was SEK 318 m (1,353)
| Quarter | ||||
|---|---|---|---|---|
| SEK m | 1-2020 | 1-2019 | 4-2019 | |
| Revenues | 3.416 | 4.427 | 4.293 | |
| Gross profit | 3.563 | 4.587 | 4.094 | |
| Operating expenses | 2.304 | 2.226 | 2,239 | |
| Depreciation | 939 | 996 | 970 | |
| Operating profit | 318 | 1.353 | 890 | |
| Investments | 1.442 | 1.153 | 2.583 | |
| Capital employed | 30,027 | 26,885 | 28,719 |
| Quarter | |||||
|---|---|---|---|---|---|
| SEK m | 1-2020 | 1-2019 | 4-2019 | ||
| Operating profit | 318 | 1,353 | 890 | ||
| Change | -1,034 | -572 | |||
| Analysis of change | |||||
| Volumes | -431 | -152 | |||
| Prices and terms | -617 | -382 | |||
| Metal prices | -737 | -428 | |||
| TC/RC terms | -42 | -37 | |||
| Exchange rate effects | 162 | 83 | |||
| Costs (local currencies) | -57 | -55 | |||
| Depreciation | ଚ୍ଚିତ୍ର | 31 | |||
| Other | 4 | -14 | |||
| Change | -1,034 | -572 |
Operating profit decreased to SEK 318 m (1,353). The decrease in earnings compared to both the previous year and quarter was driven by significantly lower metal prices and lower grades. The downturn in metal prices during the latter part of the quarter impacted earnings from Mines fully. However, the Group earnings are impacted as the concentrate is processed and delivered from the Group's smelters. Milled volumes in Aitik and Kevitsa increased, but a breakdown and a COVID-19 related shutdown in Tara had a negative effect. The costs increased, partly as a result of higher milled volumes, but also due to more maintenance and repairs.
| Quarter | |||||
|---|---|---|---|---|---|
| 1-2020 | 1-2019 | % | 4-2019 | 0/0 | |
| Zinc, tonnes | 63.567 | 75.236 | -16 | 72.851 | -13 |
| Copper, tonnes | 29.059 | 31.352 | -7 | 28.057 | ব |
| Nickel, tonnes | 2.635 | 3,179 | -17 | 2.282 | 15 |
| Lead. tonnes | 12.540 | 13.967 | -10 | 13.818 | -9 |
| Gold, kg | 1.654 | 1,723 | ণ | 1.671 | -1 |
| Silver, kg | 80.256 | 85,350 | -၆ | 96.495 | -17 |
The volume of metal in concentrate varied significantly compared to the previous quarter. Both nickel and copper production rose mainly due to increased milled volumes in Kevitsa, while zinc and lead production fell primarily as a result of a breakdown and a COVID-19 related shutdown in Tara. Gold production was largely unchanged compared to the fourth quarter 2019, but lower grades in Garpenberg led to lower silver production. Compared to the first quarter 2019, production of all metals in concentrate fell as a result of lower grades in Aitik, Kevitsa and Garpenberg and disruptions in Tara.
The COVID-19 pandemic resulted in increased short-term absence at the end of the first quarter. Shortterm absence is also anticipated to be at a higher level during the second quarter. As a result of this, the previously announced goals of a production rate of 45 Mtonnes/year in Aitik and 9.5 Mtonnes/year in Kevitsa are not expected to be achieved until the third quarter this year.
Aitik's milled volume was on par with the previous quarter but increased slightly compared to the first quarter last year. High short-term absence, low truck availability in the mine, combined with difficult winter conditions had a negative effect. In addition, the truck deliveries were delayed from Kevitsa to Aitik due to logistics problems related to COVID-19. Copper grades reached 0.23% (0.28) and are estimated to average of 0.25% during 2020. Gold production fell compared to the fourth quarter of 2019, mainly due to lower recovery. Gold grades were unchanged compared to the previous quarter, but lower than last year 0.1 g/tonne (0.14).
The Boliden Area's milled volume fell slightly compared to the previous quarter, but was in line with the first quarter of last year. An ore mix with longer process times had a negative effect. However, higher grades as a result of changed mining positions led to higher copper, zinc and silver production. Lower recovery had a negative effect on gold production.
Garpenberg's milled volume was in line with both the previous quarter and the first quarter of last year. Zinc production increased compared to the previous quarter as a result of higher grades. The opposite is true compared to last year. The lower silver production was due to lower grades and recovery. In 2020, the average zinc grade is estimated to 3.7% (4.1) and the silver grade to 100 g/tonne (118).
Tara's milled volume was significantly lower than both the previous quarter and the previous year. A breakdown on an ore conveyor belt caused an unplanned 16-day production stop in the middle of the quarter. Production stopped again on 28 March as a result of restrictions introduced by the Irish government as a result of the COVID-19 pandemic. Following discussions with the authorities and union representatives regarding precautionary measures to prevent the spread of the virus, production was resumed on 2 April. The measures taken are considered sufficient to protect the health of employees and contractors.
Kevitsa's milled volume noted a new record following the completion of an investment program. Last year was characterized by changes in the mine and a strike during the fourth quarter. Consequently, copper production increased compared to both the previous quarter and last year. Nickel production rose compared to the previous quarter thanks to higher milled volumes, but fell compared to the previous year due to lower grades.
Kylylahti's milled volume was significantly higher than the previous quarter but in line with last year. Production is limited by technical mining challenges as the mine proceeds towards final mining during the current year.
Boliden has five smelters: the Kokkola and Odda zinc smelters, the Rönnskär copper and lead smelter, the Harjavalta copper and nickel smelter, and the Bergsöe lead smelter. The Business Area also includes purchases of mined concentrates and secondary raw materials, and sales of metals and by-products.
- Higher zinc treatment charges
- Stable production
- Operating profit excluding revaluation of process inventory increased to SEK 1,117 m (853)
| Quarter | |||
|---|---|---|---|
| SEK m | 1-2020 | 1-2019 | 4-2019 |
| Revenues | 13.128 | 12.731 | 12.612 |
| Gross profit ex. revaluation of process inventory | 3.113 | 2.811 | 2,812 |
| Operating expenses | 1,709 | 1.679 | 1,716 |
| Depreciation | 315 | 297 | ട്ടാട |
| Operating profit ex. revaluation of process inventory | 1,117 | 853 | 759 |
| Operating profit | 1.048 | 1.246 | 782 |
| Investments | 371 | 436 | 670 |
| Capital employed | 22.560 | 20.482 | 21.175 |
| Quarter | |||||
|---|---|---|---|---|---|
| SEK m | 1-2020 | 1-2019 | 4-2019 | ||
| Operating profit | 1.048 | 1,246 | 782 | ||
| Revaluation of process inventory | -69 | 392 | 23 | ||
| Operating profit ex. revaluation of process inventory | 1,117 | 853 | 759 | ||
| Change | 264 | 357 | |||
| Analysis of change | |||||
| Volumes | 22 | 181 | |||
| Prices and terms | 270 | 129 | |||
| Metal prices | 64 | 75 | |||
| By-product prices | -65 | -42 | |||
| TC/RC terms | 139 | 23 | |||
| Metal premiums | -33 | -15 | |||
| Exchange rate effects | 165 | 88 | |||
| Costs (local currencies) | -23 | -2 | |||
| Depreciation | -17 | 19 | |||
| Other | 10 | 30 | |||
| Change | 264 | 357 |
Operating profit excluding revaluation of process inventory increased to SEK 1,117 m (853), mainly due to improved zinc treatment charges and a stronger US dollar. Lower sulphuric acid prices and metal premiums had a negative effect.
Operating profit excluding revaluation of process inventory improved compared to the previous quarter, which was burdened by maintenance shutdowns and strikes. The positive trend is explained by increased volumes at improved prices and terms.
| Quarter | |||||
|---|---|---|---|---|---|
| 1-2020 | 1-2019 | 0/0 | 4-2019 | % | |
| Zinc, tonnes | 127.296 | 121.842 | বা | 122.322 | 4 |
| Copper, tonnes | 95.243 | 87.241 | பு | 86.590 | 10 |
| Lead, tonnes | 21,131 | 19.286 | 10 | 21.437 | -1 |
| Nickel in matte, tonnes | 7.124 | 8.539 | -17 | 7.089 | O |
| Gold, kg | 4.051 | 4.035 | O | 3.526 | 15 |
| Silver, kg | 154.440 | 121,082 | 28 | 104.860 | 47 |
| Sulphuric acid, tonnes | 428.017 | 419.586 | ു | 393.167 | 9 |
In general, production was high and several production records were noted. With the exception of lead and nickel in matte, the volumes of all metals produced increased compared to both the previous quarter and the first quarter last year. Sulphuric acid production also increased compared with both the previous quarter and year. However, the higher production compared to the previous quarter should be seen in the light of the maintenance shutdown and Finnish strikes that affected fourth quarter production in 2019. Improved process stability and higher grades in the input raw materials led to increased production of precious metals.
Rönnskär's production of all metals and sulphuric acid was higher compared to the previous quarter, which was affected by a maintenance shutdown. Improved process efficiency in the electrolysis plant had a positive effect. The production of most metals also increased compared to last year. The exception was gold as a result of lower grades in input materials.
Harjavalta's production increased compared to the previous quarter, which was hampered by a strike. It also increased compared to the first quarter last year. A new copper cathode production record was noted despite certain technical process problems. High copper concentrate feed had a positive effect and also resulted in higher sulphuric acid production. However, the production of nickel in matte fell due to a stop in the nickel line. This also affected production negatively in the beginning of the second quarter. The production of gold rose as a result of higher grades in the raw material.
Kokkola's production of all metals and sulphuric acid was higher than during the previous quarter. Compared to last year, production increased somewhat due to improved recovery and a more stable production process. Thanks to higher grades in input material, silver production increased.
Odda delivered yet another strong production quarter and noted a record in respect of feed.
Bergsöe's production continued to be stable but somewhat lower compared to the previous quarter. However, it was higher compared to last year, as first quarter 2019 was affected by an unplanned production shutdown.
As was the case last year, no scheduled maintenance shutdowns were carried out during the first quarter. Maintenance shutdowns in Smelters during 2020 are estimated to have affected operating profit by SEK -300 m (-745), which is in line with what was previously announced. However, the COVID-19 pandemic has caused the maintenance shutdown schedule to change. The schedule is now estimated to impact operating profit by SEK 0 m (0) in the first quarter, SEK -25 m (-315) in the second quarter, SEK -250 m (-360) in the third quarter, and SEK -25 m (-70) in the fourth quarter.
Sustainable development
| Quarter | 12 months | Full year | |||||||
|---|---|---|---|---|---|---|---|---|---|
| 1-2020 | 1-2019 | 4-2019 | Apr-Mar | 2013 | Goal 2020 | ||||
| Accidents (LTI) per million hours worked |
6.5 | 5.2 | 6.6 | 4.8 | 4.4 | 0.0 | |||
| Sick leave, % | 4.7 | 5.1 | 4.4 | 4.2 | 4.3 | < 4,0 | |||
| Metal discharges to water impact, intensity 1 |
24.7 | 19.6 | 33.1 | 37.2 | 35.9 | < 35.9 | |||
| Metal emissions to air impact, intensity 1 |
53.6 | 34.8 | 54.0 | 53.3 | 48.5 | < 48,5 | |||
| Sulphur dioxide to air, Ktonnes | 1.5 | 1.8 | 1.5 | 5.9 | 6.2 | ≤ 6,2 | |||
| Carbon dioxide intensity, tonnes CO2/tonne metal |
0.60 | 0.67 | 0.62 | 0.62 | 0.64 | < 0.63 | |||
| Serious environmental incidents per month 2 |
0.0 | 0.0 | 0.0 | 0.1 | 0.1 | 0.0 |
1 The intensity is based on the emission, in tonnes, of metal equivalents per million tonnes of metals produced Metal equivalents weigh the impact on society and the environment of emissions of metals to air and water
2 A serious incident that causes or has the potential to cause significant environmental impact.
EMPLOYEES
The average number of employees (full-time equivalents) was 6,078 (5,917). The accident frequency was in line with the previous quarter, but higher than in the first quarter 2019. The accident frequency for employees and contractors in 2019 was at a record low, mainly thanks to fewer accidents among contractors. The long-term strategy of including contractors in occupational health & safety work has resulted in employees and contractors being on the same level in terms of accidents. Boliden is constantly engaged in the development of proactive risk management and increased involvement in occupational health & safety issues among both employees and contractors.
The COVID-19 pandemic has entailed a certain increase in sick leave, mainly at the end of the quarter. We are following government guidelines from the countries concerned during the current virus outbreak, and are actively engaged in protecting the health and reducing the spread of the virus and concern among our employees. Among other things, this takes place as part of our established systematic occupational health & safety efforts in all units. Furthermore, there is constant collaboration between all occupational health and personnel departments in the Group in order to jointly provide the best possible support for physical and psychosocial health during the prevailing circumstances.
EXTERNAL ENVIRONMENT
Emissions of metals to air were lower than the previous quarter, while emissions to water were on par with it, but higher than in the first quarter 2019. Carbon dioxide intensity was lower compared to both the previous quarter and the first quarter 2019, inter alia due to a lower inflow of electronics waste and coal at smelters. As a result of stable production in smelters, sulphur dioxide emissions are in line with the previous quarter and lower than the first quarter 2019. The investments made and measures taken earlier, especially in the new sulphuric acid plant in Harjavalta, continue to show good results.
No serious environmental incidents occurred during the quarter.
Accident frequency, rolling 12 months
Number of accidents per one million hours worked
=Own personnel and contractors
Serious environmental incidents2, rollina 12 months
Number of incidents, average per month
Carbon dioxide intensity, rolling 12 months
The Parent Company Boliden AB conducts limited operations and is in a tax arrangement with Boliden Mineral AB; Boliden AB has one employee who is compensated by Boliden Mineral AB. The Income Statement and Balance Sheet for the Parent Company are presented on page 17.
On 17 April, Boliden has concluded an agreement with Agder Energi for the supply of fossil-free electricity in Sweden and Finland. The agreement covers a total electricity supply of 1000 GWh per year and runs for 15 years from 2022. The agreement allows for the commissioning of further fossil-free electricity generation in both Sweden and Finland. The goal is to reduce carbon dioxide intensity, i.e. CO2 emissions per unit of metal produced, by 40% by 2030 compared to 2012.
Significant risks and uncertainty factors for the Group and the Parent Company 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 demand for zinc, copper, and other base metals. For further information about risks and risk management, we refer to Boliden's Annual and Sustainability Report for 2019: Risk Management, on pages 56 to 59. In cases where COVID-19 has affected risk assessment, this is made clear in the respective sections of the interim 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 2019 Annual and Sustainability Report.
Boliden chose early application of the changes in IFRS 9 interest rate benchmark reform amendments to IFRS 9, IAS 39 and IFRS 7, which are applicable as of 1 January 2020. This change has not had any effect on the financial statements.
For a number of years, Boliden has presented certain financial metrics in interim reports that are not defined under IFRS, and it considers these metrics to provide valuable supplementary information as they more clearly evaluate 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, Equity/Assets ratio and Net reclamation liability. For definitions, explanations and calculations of the financial metrics used by Boliden, see www.boliden.com.
The undersigned declares that the Interim Report gives a true and fair overview of the Parent Company's and Group's operations, positions, and results, and describes the material risks and uncertainty factors faced by the Parent Company and the companies that make up the Group.
Stockholm, 28 April 2020
- 22 July 2020 Interim Report for the second quarter of 2020
- 28 October 2020 Interim Report for the third quarter of 2020
12 February 2021 Interim Report fort the fourth quarter and Year-End Report 2020
SveMin's work environment prize goes to Aitik for the second year in a row, and in the picture we see Jennifer Andersson, Section Manager Boliden Aitik, accepting the prize from Gunnar Rådberg, chairman of the mining industry's work environment committee, Gramko. Preventive work with machinery and plant plays an important part in creating safe workplaces in the mining and mineral industry. In its contribution to efforts to constantly improve safety in the work environment, Aitik has shown great commitment.
Consolidated Income Statements
| Quarter | 12 months | Full year | |||
|---|---|---|---|---|---|
| SEK m | 1-2020 | 1-2019 | 4-2019 | Apr-Mar | 2019 |
| Revenues | 13,210 | 13,047 | 12,972 | 50,099 | 49,936 |
| Cost of goods sold | -11,304 | -10,171 | -10,750 | -41,655 | -40,522 |
| Gross profit | 1,906 | 2,875 | 2,222 | 8,444 | 9,414 |
| Selling expenses | -131 | -122 | -129 | -495 | -486 |
| Administrative expenses | -184 | -169 | -192 | -703 | -688 |
| Research and development costs | -182 | -151 | -161 | -771 | -740 |
| Other operating income and expenses | 27 | 9 | 3 | 121 | 102 |
| Results from participations in associated companies | 0 | -1 | 1 | -5 | -6 |
| Operating profit | 1,435 | 2,441 | 1,744 | 6,590 | 7,597 |
| Financial income | 0 | 0 | 7 | 12 | 12 |
| Financial expenses | -66 | -50 | -84 | -288 | -272 |
| Profit after financial items | 1,369 | 2,391 | 1,667 | 6,314 | 7,337 |
| Tax | -302 | -501 | -307 | -1,349 | -1,548 |
| Net profit | 1,067 | 1,891 | 1,360 | 4,965 | 5,788 |
| Net profit attributable to: | |||||
| Owners of the Parent Company | 1,067 | 1,891 | 1,360 | 4,962 | 5,786 |
| Non-controlling interests | 0 | 0 | 0 | e | 2 |
Earnings and Equity per share
| Quarter | 12 months | Full year | |||
|---|---|---|---|---|---|
| SEK m | 1-2020 | 1-2019 | 4-2019 | Apr-Mar | 2019 |
| Earnings per share 1, SEK | 3.90 | 6.91 | 4.97 | 18.14 | 21.15 |
| Ordinary dividend per share 2, SEK | 7.00 | ||||
| Equity per share 3, SEK | 158.28 | 150.53 | 151.47 | 158.28 | 151.47 |
| 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 As no potential shares exist, there is no dilution effect.
2 The amount for 2019 refers to the proposed dividend.
3 Equity divided by the number of shares.
Key ratios – The Group
| Quarter | 12 months | Full year | |||
|---|---|---|---|---|---|
| SEK m | 1-2020 | 1-2019 | 4-2019 | Apr-Mar | 2019 |
| Return on capital employed 1, % | 13.3 | 15.8 | |||
| Return on equity 2, % | 12.1 | 14.3 | |||
| Equity/assets ratio, % | 63 | 67 | 62 | 63 | 62 |
| Net debt/equity ratio 3, % | 15 | ട | 13 | 15 | 13 |
| Net reclamation liability 4, SEK m | 2.280 | 1,825 | 2,134 | 2.280 | 2,134 |
| Net debt, SEK m | 6,534 | 2,611 | 5,493 | 6.534 | 5,493 |
1 Operating profit divided by average capital employed.
2 Profit after tax divided by average equity.
2 Promother of Group of Groups and liabilities less financial assets including cash and cash equivalents divided by equity.
4 Reclamation liability less capitalized reclamat
Consolidated Statements of Comprehensive Income
| Quarter | 12 months | Full year | |||
|---|---|---|---|---|---|
| SEK m | 1-2020 | 1-2019 | 4-2019 | Apr-Mar | 2019 |
| Profit for the period | 1,067 | 1,891 | 1,360 | 4,965 | 5,788 |
| Other comprehensive income | |||||
| Items that will be reclassified to the Income Statement | |||||
| Change in market value of derivative instruments | 20 | 4 | -12 | 63 | 47 |
| Fiscal effect on derivative instruments | -4 | -1 | 3 | -14 | -10 |
| Transfers to the Income Statement | 0 | -1 | 0 | -1 | -2 |
| I ax on transfers to the Income Statement | 0 | 0 | 0 | 0 | 0 |
| Sum cash flow hedging | 16 | 3 | -10 | 49 | 36 |
| The period's translation difference on overseas operations | 854 | 297 | -490 | 845 | 289 |
| Profit on hedging of net investments in overseas operations | -94 | -24 | 45 | -97 | -28 |
| Tax on the period's profit from hedging instruments | 20 | 5 | -10 | 21 | ട് |
| Sum translation exposure | 7:30 | 278 | -454 | 769 | 267 |
| Total items that will be reclassified | 796 | 2:31 | -464 | 818 | 303 |
| Items that will not be reclassified to the Income Statement | |||||
| Revaluation of defined benefit pension plans | -62 | -130 | -130 | ||
| Tax attributable to items that will not be reversed to the Income Statement |
13 | 27 | 27 | ||
| Total items that will not be reclassified | -49 | -103 | -103 | ||
| Total other comprehensive income | 796 | 281 | -513 | 715 | 200 |
| Total comprehensive income for the period | 1,864 | 2,172 | 846 | 5,680 | 5,988 |
| Total comprehensive income for the period attributable to: | |||||
| Owners of the Parent Company | 1,864 | 2,172 | 846 | 5,677 | 5,986 |
| Non-controlling interests | 0 | O | 0 | 2 | 2 |
Consolidated Balance sheets
| SEK m | 31 Mar 2020 |
31 Mar 2019 |
31 Dec 2019 |
|---|---|---|---|
| Intangible assets | 3,656 | 3,627 | 3,621 |
| Property, plant and equipment | 45,569 | 39,685 | 43,989 |
| Participations in associated companies | 10 | 24 | 9 |
| Other shares and participations | 5 | 18 | റ |
| Deferred tax assets | 122 | 138 | 127 |
| Derivative instruments | 12 | O | 18 |
| Long-term receivables | 139 | 130 | 139 |
| Total non-current assets | 49,513 | 43,621 | 47,909 |
| Inventories | 13,758 | 12,014 | 13,262 |
| Trade and other receivables | 2,303 | 2,608 | 2,119 |
| Tax receivables | 446 | 25 | 232 |
| Derivative instruments | 53 | 134 | 75 |
| Other current receivables | 1,550 | 1,362 | 1,453 |
| Cash and cash equivalents | 852 | 1,930 | 1,373 |
| Total current assets | 18,962 | 18,073 | 18,514 |
| Total assets | 68,475 | 61,694 | 66,424 |
| Equity | 43,303 | 41,182 | 41,440 |
| Pension provisions | 1,119 | 973 | 1,113 |
| Other provisions | 5,010 | 3,952 | 4,930 |
| Deferred tax liabilities | 3,219 | 3,017 | 3,128 |
| Liability to credit institutions | 3,346 | 3,168 | 3,261 |
| Other interest-bearing liabilities | 238 | 145 | 185 |
| Total non-current liabilities | 12,931 | 11,256 | 12,615 |
| Liability to credit institutions | 2,617 | 219 | 2,242 |
| Other interest-bearing liabilities | 86 | 59 | 86 |
| Trade and other payables | 5,898 | 5,435 | 6,391 |
| Other provisions | 185 | 129 | 170 |
| Current tax liabilities | 115 | 255 | 109 |
| Derivative instruments | 409 | 44 | 129 |
| Other current liabilities | 2,937 | 2,818 | 3,242 |
| Total current liabilities | 12,242 | 9,256 | 12,369 |
| Total equity and liabilities | 68,475 | 61,694 | 66,424 |
Cons. Statements of Changes in Equity
| 31 Mar | 31 Mar | 31 Dec | |
|---|---|---|---|
| SEK m | 2020 | 2019 | 2019 |
| Opening balance | 41,440 | 39,011 | 39,011 |
| Total comprehensive income for the period | 1,864 | 2,172 | 5,988 |
| Dividend | -2.393 | ||
| Redemption | - | -1,162 | |
| Dividend to non-controlling interests | -2 | ||
| Closing balance | 43,303 | 41.182 | 41,440 |
| Total equity attributable to: | |||
| Owners of the Parent Company | 43,290 | 41,171 | 41,429 |
| Non-controlling interests | 12 | 11 | 12 |
As of 31 March 2020, the hedge reserve after tax effect totalled SEK 63 m (14).
Consolidated Statements of Cash Flow
| Quarter | 12 months | Full year | |||
|---|---|---|---|---|---|
| SEK m | 1-2020 | 1-2019 | 4-2019 | Apr-Mar | 2019 |
| Operating activities | |||||
| Profit after financial items | 1,369 | 2,391 | 1,667 | 6,314 | 7,337 |
| Adjustments for items not included in the cash flow: | |||||
| - Depreciation, amortisation and write-down of assets | 1,258 | 1,297 | 1,293 | 5,053 | 5,092 |
| - Provisions | 8 | 5 | 11 | 18 | 15 |
| - Revaluation of process inventory | 69 | -392 | -23 | -100 | -561 |
| - Other | -35 | -13 | 60 | 159 | 182 |
| Tax paid/received | -409 | -501 | -603 | -1,967 | -2,060 |
| Cash flow from operating activities before changes in working | |||||
| capital | 2,260 | 2,787 | 2,405 | 9,477 | 10,005 |
| Cash flow from changes in working capital | -1,284 | -1,507 | 1,685 | -340 | -565 |
| Cash flow from operating activities | 976 | 1,281 | 4,091 | 9,138 | 9,442 |
| Investment activities | |||||
| - Acquisition of intangible assets | -6 | -7 | -10 | -36 | -37 |
| - Acquisition of property, plant and equipment | -1,818 | -1,598 | -3,246 | -9,009 | -8,790 |
| - Disposal of property, plant and equipment | 0 | O | 0 | 0 | |
| - Acquisition/disposal of financial assets | 3 | 2 | -13 | 20 | 20 |
| Cash flow from investment activities | -1,821 | -1,603 | -3,269 | -9,025 | -8,807 |
| Cash flow before financing activities (free cash flow) | -845 | -323 | 822 | 113 | 635 |
| Dividend | -3,556 | -3,556 | |||
| Loans raised | 800 | 185 | 4,234 | 3,434 | |
| Amortisation of loans | -459 | -23 | -184 | -1,853 | -1,417 |
| Cash flow from financing activities | 321 | -23 | 1 | -1,195 | -1,538 |
| Cash flow for the period | -524 | -345 | 823 | -1,082 | -903 |
| Cash and cash equivalents at the beginning of the period | 1,373 | 2,272 | 553 | 1,930 | 2,272 |
| Exchange rate difference on cash and cash equivalents | 3 | 3 | -3 | 3 | 3 |
| Cash and cash equivalents at period-end | 852 | 1,930 | 1,373 | 852 | 1,373 |
| Quarter | 12 months | Full year | |||
|---|---|---|---|---|---|
| SEK m | 1-2020 | 1-2019 | Apr-Mar | 2019 | |
| Dividends from subsidiaries | I | I | 7.036 | 7.036 | |
| Profit after financial items | t | I | 7.036 | 7.036 | |
| Tax | 1 | ||||
| Profit for the period | I | 7,036 | 7,036 |
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 first quarter of 2020.
| 31 Mar | 31 Mar | 31 Dec | |
|---|---|---|---|
| SEK m | 2020 | 2019 | 2019 |
| Participations in subsidiaries | 3.911 | 3.911 | 3.911 |
| Long-term financial receivables, subsidiaries | 14,799 | 11,068 | 14,763 |
| Current financial receivables, subsidiaries | 1.648 | 2.120 | |
| Total assets | 20,358 | 14.980 | 20.794 |
| Equity | 17.960 | 14.480 | 17,960 |
| Long-term liabilities to credit institutions | 750 | 500 | 750 |
| Current liabilities to credit institutions | 1.648 | 2.084 | |
| Total liabilities and equity | 20,358 | 14.980 | 20.794 |
| 31 Mar 2020, SEK m | Reported value | Fair value |
|---|---|---|
| Other shares and participations | 5 | 5 |
| Trade and other receivables | 2,303 | 2,303 |
| Derivative instruments | 65 | 65 |
| Cash and cash equivalents | 852 | 852 |
| Total assets | 3.225 | 3.225 |
| Liabilities to credit institutions | 5.963 | 5.967 |
| Trade and other payables | 5,898 | 5,898 |
| Derivative instruments | 409 | 409 |
| Total liabilities | 12,270 | 12.274 |
The fair value of derivatives is based on bid and ask prices listed on the closing date and by discounting estimated cash flows. Market prices for metals are taken from locations where metal derivatives are traded, i.e. the London Metal Exchange (LME) and the London Bullion Market Association (LBMA). Discount rates are based on current market rates per currency and time to maturity for the financial instrument. Exchange rates are obtained from the Riksbank (Swedish Central Bank). When presenting the fair value of liabilities to credit institutions, the fair value is calculated as discounted agreed amortizations and interest payments at estimated market interest rate levels. As of 31 March 2020, interest terms on current loan agreements were considered to be on a parwith market rates in the credit market. Thus in essence, fair value corresponds to the carrying amount.
The carrying amounts of trade receivables and payables is considered to be the same as their fair value due to their short time to maturity, the fact that provisions are made for doubtful trade receivables, and that any penalty interest will be invoiced. 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 and Sustainability Report.
The sale of metal concentrates, metals, intermediate products and by-products is recognized upon delivery to the customer in accordance with the terms and conditions of sale, i.e. revenue is recognized when control passes to the purchaser.
The Group's metal concentrates are invoiced provisionally upon delivery. Definitive invoicing takes place when all relevant parameters have been determined (concentrate, quantity, metal content, impurity content and metal price for the agreed price setting period, which is usually the average price on the LME in the month following delivery).
Customers are invoiced for the Group's metals and metal products upon delivery. The Group eliminates price risks associated with sales and purchases by hedging the difference between purchased and sold quantities on a daily basis.
Customers are invoiced for by-products when control is transferred, which takes place upon delivery.
| Kvarta | ||||||||
|---|---|---|---|---|---|---|---|---|
| Mines | Smelters | Other | The Group | |||||
| SEK m | 1-2020 | 1-2019 | 1-2020 | 1-2019 | 1-2020 | 1-2019 | 1-2020 | 1-2019 |
| Finished metals | 11,068 | 10,850 | - | 11,068 | 10,850 | |||
| Metal in concentrate | 65 | 298 | O | O | I | - | 65 | 298 |
| Intermediates | 1,758 | 1,583 | - | 1,758 | 1,583 | |||
| By-products | 273 | 282 | - | 273 | 282 | |||
| Other sales | O | O | 49 | 33 | -2 | O | 47 | 33 |
| Total external revenues | 65 | 298 | 13,147 | 12,748 | -2 | O | 13,210 | 13.047 |
The table below presents an estimate of how changes in market terms will affect the Group's operating profit over the next 12 months. The calculation is based on listings on 31 March 2020 and on Boliden's planned production volumes. The sensitivity analysis does not take into account the effects of metal price hedging, currency hedging, contracted treatment charges, 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 |
|---|---|---|---|---|---|
| Copper | 680 | TC Zinc | 120 | USD /SEK | 1.550 |
| Zinc | 645 | TC/RC Copper | 55 | EUR/USD | 1,070 |
| Gold | 465 | TC Lead | -10 | USD /NOK | 175 |
| Silver | 160 | ||||
| Nickel | 150 | ||||
| Palladium | 135 | ||||
| ead | 120 | ||||
| Platinum | 25 |
The table below shows a weighted index of the prices, terms and currencies that have the greatest impact on Boliden's profits, together with a weighted currency index and a weighted metal price and treatment charge index. Currencies and metal prices have often displayed a negative correlation that has had an equalising effect on the Boliden-weighted index and on Boliden's earnings.
Quarterly data per segment
| SEK m | 2-2018 | 3-2018 | 4-2018 | 1-2019 | 2-2019 | 3-2019 | 4-2019 | 1-2020 |
|---|---|---|---|---|---|---|---|---|
| THE GROUP | ||||||||
| Revenues | 14,071 | 12,510 | 12,543 | 13,047 | 12,747 | 11,170 | 12,972 | 13,210 |
| Operating expenses | 3,965 | 3,606 | 3,898 | 3,934 | 4,226 | 3,895 | 3,998 | 4,035 |
| Depreciation | 1,223 | 1,217 | 1,221 | 1,296 | 1,210 | 1,276 | 1,309 | 1,258 |
| Operating profit ex. revaluation of process | ||||||||
| inventory | 2,329 | 2,020 | 2,001 | 2,048 | 1,631 | 1,635 | 1,721 | 1,504 |
| Operating profit | 2,468 | 1,111 | 5,083 | 2,441 | ി ,ഉദ്ദേ | 1,873 | 1,744 | 1,435 |
| Investments | 1,561 | 1,457 | 2,013 | 1,606 | 2,132 | 1,834 | 3,255 | 1,823 |
| Capital employed | 44,817 | 44,406 | 44,441 | 47,200 | 47,699 | 50,048 | 44,809 | 52,600 |
| MINES | ||||||||
| Revenues | 5,251 | 3,941 | 4,478 | 4,427 | 4,177 | 4,163 | 4,293 | 3,416 |
| Gross profit | 5,178 | 4,010 | 4,485 | 4,587 | 4,244 | 4,206 | 4,094 | 3,563 |
| Operating expenses | 2,215 | 2,002 | 2,204 | 2,226 | 2,218 | 2,165 | 2,239 | 2,304 |
| Depreciation | 912 | 919 | 941 | 996 | 903 | ക്കട | 970 | аза |
| Operating profit | 2,044 | 1,091 | 1,384 | 1,353 | 1,149 | 1,091 | 890 | 318 |
| Investments | 1,123 | 1,158 | 1,323 | 1,153 | 1,388 | 1,285 | 2,583 | 1,442 |
| Capital employed | 25,686 | 25,546 | 26,328 | 26,885 | 27,279 | 28,144 | 28,719 | 30,027 |
| SMELTERS | ||||||||
| Revenues | 13,656 | 11,934 | 12,087 | 12,731 | 12,452 | 10,761 | 12,612 | 13,128 |
| Gross profit ex. revaluation of process | ||||||||
| inventory | 2,622 | 2,456 | 2,492 | 2,811 | 2,636 | 2,710 | 2,812 | 3,113 |
| Operating expenses | 1,701 | 1,583 | 1,652 | 1,679 | 1,960 | 1,716 | 1,716 | 1,709 |
| Depreciation | 311 | 297 | 279 | 297 | 304 | 316 | 336 | 315 |
| Operating profit ex. revaluation of process inventory |
630 | 589 | 575 | 853 | 387 | 716 | 759 | 1,117 |
| Operating profit | 769 | 340 | 667 | 1,246 | 295 | 954 | 782 | 1,048 |
| Investments | 437 | 298 | ead | 436 | 743 | 548 | 670 | 371 |
| Capital employed | 19,761 | 19,067 | 18,237 | 20,482 | 20,415 | 22,073 | 21,175 | 22,560 |
| OTHER/ELIMINATIONS | ||||||||
| Revenues | -4.837 | -3,366 | -4,022 | -4,111 | -3,881 | -3,755 | -3,933 | -3,335 |
| Operating expenses | 49 | 20 | 42 | ട്ടി | 49 | 14 | 43 | 22 |
| Operating profit, internal profit | -297 | 361 | 86 | -128 | 147 | -155 | 118 | 96 |
| Operating profit, other | -49 | -21 | -44 | -30 | -52 | -17 | -47 | -28 |
| Investments | 0 | 1 | 0 | 16 | O | O | 3 | 9 |
| Capital employed | -630 | -208 | -125 | -167 | 5 | -169 | -85 | 13 |
് BOLIDEN – Interim Report for the first quarter of 2020
Consolidated quarterly data
| 2-2018 | 3-2018 | 4-2018 | 1-2019 | 2-2019 | 3-2019 | 4-2019 | 1-2020 | |
|---|---|---|---|---|---|---|---|---|
| Financial performance 1, the Group | ||||||||
| Revenues, SEK m | 14,071 | 12,510 | 12,543 | 13,047 | 12,747 | 11,170 | 12,972 | 13,210 |
| Operating profit before depreciation, SEK m | 3,691 | 2,988 | 3,314 | 3,737 | 2,749 | 3,149 | 3,053 | 2,693 |
| Operating profit ex. revaluation of process | ||||||||
| inventory, SEK m | 2,329 | 2,020 | 2,001 | 2,048 | 1,631 | 1,635 | 1,721 | 1,504 |
| Operating profit, SEK m | 2,468 | 1,771 | 2,093 | 2,441 | 1,539 | 1,873 | 1,744 | 1,435 |
| Profit after financial items, SEK m | 2,401 | 1,707 | 2,040 | 2,391 | 1,478 | 1,801 | 1,667 | 1,369 |
| Net profit, SEK m | 2,0388 | 1,285 | 1,866 | 1,891 | 1,132 | 1,406 | 1,360 | 1,067 |
| Earnings per share, SEK | 7.45 | 4.69 | 6.82 | 6.91 | 4.13 | 5.14 | 4.97 | 3.90 |
| Free cash flow, SEK m | 1,718 | 855 | 1,721 | -323 | 789 | -653 | 822 | -845 |
| Net debt/equity ratio, % | 13 | 10 | ട് | ട് | 14 | 15 | ન ક | 15 |
| Production of metal in concentrate 2 | ||||||||
| Zinc, tonnes | 70,760 | 70,612 | 71,470 | 75,236 | 66,123 | 75,494 | 72,851 | 63,567 |
| Copper, tonnes | 34,300 | 34,496 | 33,911 | 31,352 | 32,062 | 29,605 | 28,057 | 29,059 |
| Nickel, tonnes | 3,777 | 3,647 | 3,521 | 3,179 | 2,241 | 2,050 | 2,282 | 2,635 |
| Lead, tonnes | 13,180 | 14,201 | 13,610 | 13,967 | 12,292 | 15,206 | 13,818 | 12,540 |
| Cobalt, tonnes | 190 | 555 | 237 | 287 | 181 | 210 | 191 | 260 |
| Gold, kg | 1,768 | 1,835 | 2,165 | 1,723 | 1,847 | 2,016 | 1,671 | 1,654 |
| Gold, troy oz. | 56,834 | 58,992 | 69,599 | 55,401 | 59,391 | 64,815 | 53,709 | 53,164 |
| Silver 3, kg | 97,324 | 100,987 | 82,704 | 85,350 | 98,977 | 91,376 | 96,495 | 80,256 |
| Silver 3, '000 troy oz. | 3,129 | 3,247 | 2,659 | 2,744 | 3,182 | 2,938 | 3,102 | 2,580 |
| Palladium, kg | 322 | 304 | 255 | 241 | 146 | 137 | 175 | 167 |
| Platinum, kg | 443 | 415 | 338 | 312 | 201 | 206 | 235 | 239 |
| l ellurium, kg | 11,382 | 8,053 | 13,185 | 9,382 | 7,803 | 12,056 | 11,713 | 5,101 |
| Metal production, Smelters | ||||||||
| Zinc, tonnes | 124,732 | 120,841 | 120,316 | 121,842 | 120,134 | 121,920 | 122,322 | 127,296 |
| Copper, tonnes | 89,621 | 88,669 | 93,073 | 87,241 | 72,490 | 75,394 | 86,590 | 95,243 |
| Lead, tonnes | 6,745 | 7,300 | 7,290 | 7,019 | 6,934 | 4,917 | 6,973 | 7,113 |
| Lead alloys, tonnes (Bergsöe) | 12,743 | 7,438 | 13,355 | 12,267 | 13,664 | 9,089 | 14,464 | 14,018 |
| Nickel in matte, tonnes | 7,528 | 7,486 | 7,937 | 8,539 | 6,851 | 3,808 | 7,089 | 7,124 |
| Gold, kg | 4,520 | 4,022 | 3,658 | 4,035 | 4,360 | 3,055 | 3,526 | 4,051 |
| Gold, troy oz. | 145,315 | 129,323 | 117,598 | 129,729 | 140,184 | 98,203 | 113,360 | 130,548 |
| Silver, kg | 145,242 | 133,520 | 130,744 | 121,082 | 123,669 | 96,980 | 104,860 | 154,440 |
| Silver, '000 troy oz. | 4,670 | 4,293 | 4,203 | 3,893 | 3,976 | 3,118 | 3,371 | 4,965 |
| Sulphuric acid, tonnes | 390,429 | 412,152 | 422,562 | 419,586 | 345,989 | 375,338 | 393,167 | 428,017 |
| Metal prices in USD, average per quarter | ||||||||
| Zinc, USD/tonne | 3,112 | 2,537 | 2,631 | 2,702 | 2,763 | 2,348 | 2,388 | 2,128 |
| Copper, USD/tonne | 6.872 | 6.105 | 6.172 | 6.215 | 6.113 | 5.802 | 5.881 | 5.637 |
| Lead, USD/tonne | 2,388 | 2,104 | 1,964 | 2,036 | 1,885 | 2,028 | 2,045 | 1,847 |
| Nickel, USD/tonne | 14,476 | 13,266 | 11,516 | 12,369 | 12,258 | 15,540 | 15,450 | 12,723 |
| Gold, USD/troy oz. | 1,306 | 1,213 | 1,227 | 1,304 | 1,309 | 1,472 | 1,483 | 1,584 |
| Silver, USD/troy oz. | 16.53 | 15.02 | 14.54 | 15.57 | 14.88 | 16.98 | 17.32 | 16.90 |
| Metal prices in SEK, average per quarter | ||||||||
| Zinc, SEK/tonne | 56,985 | 22,706 | 23,788 | 24,781 | 26,103 | 22,510 | 23,000 | 20,576 |
| Copper, SEK/tonne | 59,579 | 54,634 | 55,803 | 56,995 | 57,756 | 55,615 | 56,648 | 54,501 |
| Lead, SEK/tonne | 20,701 | 18,831 | 17,756 | 18,670 | 17,808 | 19,436 | 19,700 | 17,855 |
| Nickel, SEK/tonne | 125,499 | 118,719 | 104,119 | 113,436 | 115,823 | 148,955 | 148,821 | 123,017 |
| Gold, SEK/troy oz. | 11,325 | 10,859 | 11,098 | 11,960 | 15,371 | 14,111 | 14,281 | 15,316 |
| Silver, SEK/troy oz. | 143.33 | 134.37 | 131.48 | 142.78 | 140.63 | 162.74 | 166.82 | 163.45 |
| Exchange rates, average per quarter | ||||||||
| USD/SEK | 8.67 | 8.95 | 9.04 | 9.17 | 9.45 | 9.59 | 9.63 | 9.67 |
| EUR/USD | 1.19 | 1.16 | 1.14 | 1.14 | 1.12 | 1.11 | 1.11 | 1.10 |
| EUR/SEK | 10.33 | 10.41 | 10.32 | 10.42 | 10.62 | 10.66 | 10.66 | 10.66 |
| USD/NOK | 8.02 | 8.24 | 8.42 | 8.58 | 8.65 | 8.86 | 9.12 | 9.47 |
1 For definitions, visit www.boliden.com
2 Refers to the metal content of the concentrate.
3 Includes silver production in Tara, which is not payable.
Quarterly data per unit - Mines
| 2-2018 | 3-2018 | 4-2018 | 1-2019 | 2-2019 | 3-2019 | 4-2019 | 1-2020 | |
|---|---|---|---|---|---|---|---|---|
| AITIK | ||||||||
| Milled ore, Ktonnes | 9,305 | 10,784 | 10,023 | 9,748 | 10,320 | 10,070 | 10,523 | 10,453 |
| Head grades | ||||||||
| Copper, % | 0.28 | 0.25 | 0.27 | 0.28 | 0.27 | 0.24 | 0.22 | 0.23 |
| Gold, g/tonne | 0.13 | 0.14 | 0.14 | 0.14 | 0.14 | 0.15 | 0.10 | 0.10 |
| Silver, g/tonne | 1.68 | 1.54 | 1.54 | 1.29 | 1.36 | 1.04 | 0.97 | 0.87 |
| Production of metal in concentrate | ||||||||
| Copper, tonnes | 23,462 | 24,691 | 24,139 | 23,836 | 24,498 | 22,240 | 20,789 | 20,973 |
| Gold, kg | 720 | 866 | 816 | /26 | 841 | 828 | eeg | 591 |
| Gold, troy oz. | 23,152 | 27,838 | 26,247 | 23,331 | 27,024 | 26,621 | 21,494 | 18,990 |
| Silver, kg | 12,838 | 12,554 | 12,232 | 9,375 | 11,486 | 8,913 | 8,217 | 6,838 |
| Silver, '000 troy oz. | 413 | 404 | 393 | 301 | зва | 287 | 264 | 220 |
| THE BOLIDEN AREA | ||||||||
| Milled ore, Ktonnes | 447 | 521 | 469 | 485 | 504 | 528 | 512 | 501 |
| Of which, smelter slag | 53 | 47 | 44 | 65 | 74 | 67 | 67 | 80 |
| Head grades | ||||||||
| Zinc, % | 3.3 | 3.2 | 3.4 | 3.9 | 3.9 | 3.1 | 3.4 | 4.4 |
| Copper, % | 0.3 | 0.4 | 0.4 | 0.4 | 0.3 | 0.3 | 0.3 | 0.4 |
| Lead, % | 0.3 | 0.3 | 0.3 | 0.4 | 0.5 | 0.3 | 0.4 | 0.5 |
| Gold, g/tonne | 1.8 | 1.4 | 2.3 | 1.8 | 2.0 | 2.2 | 1.9 | 1.9 |
| Silver, g/tonne | 46 | 48 | 46 | 50 | 68 | 46 | 52 | ез |
| Tellurium, g/tonne | 41 | 40 | 55 | 41 | 37 | 54 | ਪਰ | 25 |
| Production of metal in concentrate | ||||||||
| Zinc, tonnes | 12,122 | 13,512 | 13,381 | 14,888 | 15,695 | 12,992 | 14,187 | 16,251 |
| Copper, tonnes | 1,017 | 1,302 | 1,218 | 1,172 | 1,072 | 1,0388 | 1,167 | 1,253 |
| Lead, tonnes | 455 | 749 | 572 | 710 | 1,108 | 664 | ələ | 668 |
| Gold, kg | 600 | 511 | 874 | 614 | ലേട | 814 | 671 | 604 |
| Gold, troy oz. | 19,286 | 16,438 | 28,085 | 19,732 | 22,343 | 26,178 | 21,557 | 19,429 |
| Silver, kg | 13,968 | 17,104 | 15,450 | 16,455 | 23,885 | 16,300 | 18,483 | 18,997 |
| Silver, '000 troy oz. | 449 | 550 | 497 | 259 | 768 | 524 | 594 | 611 |
| Tellurium, kg | 11,382 | 8,053 | 13,185 | 9,382 | 7,803 | 12,056 | 11,713 | 5,101 |
| TARA | ||||||||
| Milled ore, Ktonnes | 585 | 520 | 558 | 602 | 595 | 611 | 654 | 395 |
| Head grades | ||||||||
| Zinc, % | 6.6 | 5.5 | 5.3 | 5.7 | 4.4 | 5.4 | 5.4 | 5.5 |
| Lead. % | 1.3 | 1.0 | 1.1 | 1.1 | 0.8 | 1.1 | 1.1 | 0.9 |
| Production of metal in concentrate | ||||||||
| Zinc, tonnes | 36,514 | 27,175 | 28,443 | 32,893 | 24,814 | 31,101 | 33,655 | 20,923 |
| Lead, tonnes | 4,867 | 2,947 | 3,821 | 4,200 | 3,036 | 4,471 | 4,346 | 2.170 |
| Silver 1, kg | 345 | 240 | 330 | 403 | 350 | 604 | 221 | 238 |
| Silver 1, '000 troy oz. | 11,092 | 7,716 | 10,610 | 12,956 | 11,253 | 19,419 | 7,105 | 7,652 |
1 Silver production in Tara is not payable.
Quarterly data per unit - Mines
| GARPENBERG 670 676 629 714 725 721 720 Milled ore, Ktonnes 700 Head grades 3.5 3.7 4.7 5.0 4.1 3.8 3.9 Zinc, % 4.6 0.0 0.1 0.1 0.0 0.1 0.1 0.1 Copper, % 0.1 1.4 1.8 1.5 1.4 1.6 1.5 Lead, % 1.8 1.6 0.3 0.2 0.2 0.2 0.3 0.3 Gold, g/tonne 0.3 0.3 134 135 117 111 118 119 124 103 Silver, g/tonne Production of metal in concentrate Zinc, tonnes 21,688 29,733 29,439 27,295 25,286 31,313 24,733 26,300 163 171 183 139 176 184 177 256 Copper, tonnes Lead, tonnes 7,858 10,505 9,217 9,057 8,147 10,071 8,553 9,702 153 124 145 115 137 108 137 165 Gold, kg 4,395 4,932 3,707 4,393 3,471 3,981 4,675 5,318 Gold, troy oz. 54,012 69,671 70,822 54,337 58,852 63,015 65,347 69,379 Silver, kg Silver, '000 troy oz. 2,240 2,277 1,747 1,895 2,026 2,101 2,231 1,736 KEVITSA 1,881 Milled ore, Ktonnes 1,900 1,915 1,782 1,746 2,050 1,959 2,103 Head grades 0.30 Copper, % 0.42 0.39 0.36 0.30 0.29 0.28 0.30 Nickel, % 0.28 0.28 0.25 0.23 0.19 0.17 0.16 0.17 Cobalt, % 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.16 0.15 0.14 0.12 0.10 0.10 0.11 0.10 Gold, g/tonne 0.25 0.23 0.19 0.19 0.12 0.09 0.13 0.12 Palladium, g/tonne 0.32 0.40 0.38 0.32 0.21 0.19 0.24 0.22 Platinum, g/tonne Production of metal in concentrate |
|---|
| 7,197 6,838 6,397 4,882 4,830 5,282 4,769 5,504 Copper, tonnes |
| 3,697 Nickel, tonnes 3,478 3,342 2,917 2,141 1,841 2,121 2,325 |
| 152 135 110 96 Cobalt, tonnes 149 144 103 105 |
| 166 167 142 119 92 97 ag Gold, kg 106 |
| 5,340 5,379 3,817 2,971 3,127 3,180 3,393 Gold, troy oz. 4,552 |
| 322 304 255 241 146 175 Palladium, kg 137 167 |
| 4,405 4,689 10,338 9,784 7,749 5,627 5,374 Palladium, troy oz. 8,198 |
| 443 201 235 Platinum, kg 415 338 312 206 239 |
| 14,229 13,351 6,451 Platinum, troy oz. 10,880 10,017 6,612 7,570 7,693 |
| KYLYLAHTI |
| 208 185 172 153 Milled ore, Ktonnes 197 204 205 200 |
| Head grades |
| Zinc, % 0.5 0.4 0.4 0.3 0.4 0.2 0.5 0.3 |
| Copper, % 1.3 0.8 1.0 0.7 0.9 0.6 0.8 0.6 |
| 0.2 0.2 0.2 0.2 0.3 0.2 0.2 Nickel, % 0.3 |
| 0.2 0.2 0.2 0.2 0.2 0.1 0.2 Cobalt, % 0.2 |
| 0.7 Gold, g/tonne 0.8 1.1 1.2 1.0 0.7 1.0 1.2 |
| Production of metal in concentrate |
| 328 87 276 436 192 206 160 as Zinc, tonnes |
| 2,461 1,974 1,324 1,493 1,487 860 1,155 1,072 Copper, tonnes |
| 79 Nickel, tonnes 169 179 262 100 209 160 310 |
| 38 аз 152 71 88 Cobalt, tonnes 104 113 154 |
| ലട 87 158 175 197 157 140 188 Gold, kg |
| 6,035 4,123 5,630 6,323 5,050 3,072 4,494 2,803 Gold, troy oz. |
Quarterly data per unit - Smelters
| 2-2018 | 3-2018 | 4-2018 | 1-2019 | 2-2019 | 3-2019 | 4-2019 | 1-2020 | |
|---|---|---|---|---|---|---|---|---|
| RÖNNSKÄR | ||||||||
| Feed, tonnes | ||||||||
| Copper | ||||||||
| Copper concentrate | 163,418 | 168,100 | 170,771 | 170,819 | 169,420 | 114,467 | 151,087 | 166,210 |
| Secondary raw materials | 40,464 | 41,133 | 46,423 | 41,761 | 42,803 | 42,530 | 41,547 | 43,630 |
| Of which, electronics | 21,900 | 22,896 | 22,019 | 20,249 | 20,845 | 19,651 | 20,475 | 19,090 |
| Copper, total | 203,882 | 209,233 | 217,194 | 212,580 | 212,223 | 156,997 | 192,634 | 209,840 |
| Lead | ||||||||
| Lead concentrate | 8,451 | 10,735 | 11,644 | 10,093 | 11,756 | 7,140 | 12,275 | 9,885 |
| Secondary raw materials | 426 | 423 | 656 | 110 | 200 | 365 | 428 | 161 |
| Lead, total | 8,877 | 11,158 | 12,300 | 10.203 | 11,956 | 7,505 | 12,703 | 10,046 |
| Production | ||||||||
| Cathode copper, tonnes | 54,681 | 54.191 | 58,594 | 55,027 | 52,842 | 41,161 | 52,315 | 58,076 |
| Lead, tonnes | 6,745 | 7,300 | 7,290 | 7,019 | 6,934 | 4,917 | 6,973 | 7,113 |
| Zinc clinker, tonnes | 7,774 | 6,195 | 8,089 | 8,343 | 8,302 | 7,739 | 8,264 | 8,431 |
| Gold, kg | 3,575 | 3,316 | 3,086 | 3,528 | 3,368 | 2,500 | 2,990 | 3,141 |
| Gold, troy oz. | 114,946 | 106,609 | 99,215 | 113,425 | 108,281 | 80,375 | 96,129 | 100,968 |
| Silver, kg | 123,602 | 116,200 | 111,204 | 100,142 | 107,069 | 85,700 | 91,100 | 138,700 |
| Silver, '000 troy oz. | 3,974 | 3,736 | 3,575 | 3,220 | 3,442 | 2,755 | 2,929 | 4,459 |
| Sulphuric acid, tonnes | 130.301 | 129.212 | 133.374 | 133,587 | 130,822 | 90,838 | 107,594 | 128,826 |
| BERGSÖE | ||||||||
| Feed, tonnes | ||||||||
| Battery raw materials 1 | 13,301 | 8.762 | 13.184 | 12.774 | 14.429 | 9,010 | 15.522 | 15,200 |
| Production, tonnes | ||||||||
| Lead alloys | 12,743 | 7,438 | 13,355 | 12.267 | 13.664 | 9,089 | 14,464 | 14.018 |
1 From 2020, feed of battery raw materials is reported excluded previously. Adjustments to the history have been made accordingly.
Quarterly data per unit - Smelters
| 2-2018 | 3-2018 | 4-2018 | 1-2019 | 2-2019 | 3-2019 | 4-2019 | 1-2020 | |
|---|---|---|---|---|---|---|---|---|
| HARJAVALTA | ||||||||
| Feed, tonnes | ||||||||
| Copper | ||||||||
| Copper concentrate | 123,373 | 130,340 | 131,879 | 127,416 | 70,443 | 151,714 | 138,582 | 145,631 |
| Secondary raw materials | 6,697 | 6,323 | 9,021 | 5,770 | 4,447 | 6,998 | 6,935 | 6,014 |
| Copper, total | 130,070 | 136,663 | 140,900 | 133,186 | 74,890 | 158,712 | 145,517 | 151,645 |
| Nickel concentrate | 68,849 | 72,813 | 80,486 | 82,371 | 66,607 | 41,732 | 75,225 | 66,736 |
| Production | ||||||||
| Cathode copper, tonnes | 34,940 | 34,478 | 34,479 | 32,214 | 19,648 | 34,233 | 34,275 | 37,168 |
| Nickel in matte | 7,528 | 7,486 | 7,937 | 8,539 | 6,851 | 3,808 | 7,089 | 7.124 |
| Gold, kg | 945 | 706 | 572 | 507 | 992 | 555 | 536 | 911 |
| Gold, troy oz. | 30,369 | 22,714 | 18,383 | 16,304 | 31,903 | 17,828 | 17,232 | 29,280 |
| Silver, kg | 21,640 | 17,320 | 19,540 | 20,940 | 16.600 | 11,280 | 13,760 | 15,740 |
| Silver, '000 troy oz. | 696 | 557 | 628 | 673 | 534 | 363 | 442 | 506 |
| Sulphuric acid, tonnes | 159,339 | 166,873 | 173,897 | 169,358 | 109,956 | 166,611 | 173,809 | 183,806 |
| KOKKOLA | ||||||||
| Feed, tonnes | ||||||||
| Zinc concentrate incl. waelz | 141,423 | 146,598 | 148,617 | 150,121 | 135,579 | 150,418 | 137,233 | 146,612 |
| Production, tonnes | ||||||||
| Zinc | 75,693 | 71,707 | 76,208 | 75,083 | 70,497 | 73,602 | 71,662 | 79,107 |
| Silver in concentrate, kg | 2,529 | 4,454 | 6,277 | 4,513 | 4,147 | 6,363 | 5,124 | 6,094 |
| Silver in concentrate, '00 troy oz. | 81 | 143 | 202 | 145 | 133 | 205 | 165 | 196 |
| Sulphuric acid | 71,516 | 87,433 | 85,148 | 84,818 | 72,915 | 89,653 | 78,486 | 82,483 |
| ODDA | ||||||||
| Feed, tonnes | ||||||||
| Zinc concentrate, incl. zinc clinker | 95,426 | 90,855 | 86,289 | 94,347 | 98,730 | 92,435 | 98,435 | 100,086 |
| Production, tonnes | ||||||||
| Zinc | 49,039 | 49,134 | 44,108 | 46,759 | 49,637 | 48,318 | 50,660 | 48,189 |
| Sulphuric acid | 29.273 | 28.634 | 30.143 | 31.823 | 32.296 | 28,236 | 33.277 | 32.903 |
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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