Interim Report January September 2011

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1 Interim Report January September 2 Lennart Evrell President & CEO Mikael Staffas CFO

2 Summary Market Financial turmoil - low visibility Price drop end of period Low growth in construction and automotive markets China develops well Stable metal demand Signs of weaker market in Europe Stronger USD vs Base metal prices down from Increase in SEK China determines length and depth of downturn Boliden Revenues MSEK,553 (9,373) EBIT ex PIR* MSEK 1,397 (1,213) Operating profit MSEK 1,18 (1,348) Free Cash Flow MSEK 82 (1,23) Limited effect of downturn Stable production in all units Expansion projects on plan * PIR=Process Inventory Revaluation Boliden Group

3 Group EBIT Development MSEK Quarterly EBIT Quarterly EBIT excl PIR* Q *Process Inventory Revaluation Boliden Group

4 The Market Boliden Group

5 Metal markets 2 Demand China high activity in construction and industry Mature economies higher vehicle production, construction markets remained weak, generally lower growth in metal demand Metal supply Zinc metal production flat vs Copper production lower than Concentrate supply Higher Zn mine production, lower Cu mine production Zn concentrate market in balance from deficit beginning of 2 Cu concentrate market in deficit Prices Stable Zn premium, Cu premium down below benchmark Boliden Group

6 Construction year on year % 4 3 Monthly data China strong Low activity in USA and Europe China - investments residential building (cum.value) EU27 - Construction IP SA USA - Construction spending, total value SA, AR Source: Reuters Datastream Boliden Group

7 Automotive Year on year % 15 3 months moving average data Higher growth in all key regions 5 USA* China Germany Japan * Light vehicle assemblies Source: Reuters, VDA Boliden Group

8 Zinc price and inventories USD/t LME Inventory Shanghai Inventory Price Price Quarter avg Tonnes Zinc price (LME average) USD/t - vs period 2,13 + % 2,315-4% 2,393-7% 2,25-1% 2, Price down by 18% in the quarter Inventories down 3% in 2 USD/tonne sep 22-sep 29-sep 6-okt 13-okt 2-okt Boliden Group

9 Zinc TC and premiums USD/t concentrate Zinc treatment charge (TC) USD/t metal Zinc metal price premium Realised TC (including price participation) Spot TC - outturn Source: CRU ( Europe ex-works US Midwest Delivered Far East (Western) Source: CRU ( Stable realized TC but lower than 2 Spot TC down more volume traded in spot market gap to realized widens Stable European premium higher than 2 Boliden Group

10 Copper price and inventories USD/t LME Inventory Shanghai Inventory COMEX Inventory Price Price Quarter avg Tonnes Copper price (LME average) USD/t - vs period 7, % 8, % 9, % 9,137-2% 8, Price decreased in the quarter by 23% Inventories up 4% in sep 22-sep 29-sep 6-okt 13-okt 2-okt Boliden Group 2--25

11 Copper TC and premiums USD/t concentrate 16 Copper treatment charge (TC) USD/t metal 18 Copper metal price premium Source: CRU ( Standard grade TC Cif spot mine/trader USD/t TC Annual contract benchmark Spot Copper premium CIF W. Europe Source: CRU ( Benchmark CIF Europe Weaker spot TC China becoming more active Lower mine production concentrate deficit Spot premium down weaker demand in Europe Below benchmark level Boliden Group 2--25

12 Gold, Silver and Lead prices USD/oz 2 Gold USD/oz 6 Silver USD/t Lead Inventory Price Price Quarter avg Tonnes Average prices 2 vs period - - Gold + 39% + 13% Silver + 5% + 2% Lead + 21% - 4% Boliden Group

13 Mines Boliden Group

14 Mines - Summary MSEK Quarterly EBIT EBIT MSEK 1,47 (1,61) in MSEK 1,64 in Lower USD prices vs Sold volumes lower vs Stable production Lower grades in Aitik Final pricing impact, Aug-Sep Sharp drop end of period Lower costs vs Garpenberg expansion on plan start up 214 Kankberg gold mine on plan start up mid 212 Boliden Group

15 Mines - Production Milled ore, ktonnes Copper Metal content, tonnes 24 Milled ore, ktonnes 1 5 Zinc Metal content, tonnes Milled ore (Aitik) Metal content Milled ore Zinc metal content Aitik Production 34 mtonnes annulized rate Grades:,22% in vs,24% in Boliden area, higher metal production Garpenberg Higher grades 6,5% vs 5,4% in Increased silver production Boliden area, lower metal production Boliden Group

16 Aitik development Ore, Head Grade & Metal Milled production, ktonnes Metal content, tonnes Head grade,55%,5%,45%,4%,35%,3%,25%,2%,15%,%,5%,% Boliden Group

17 Smelters Boliden Group

18 Smelters Summary MSEK Quarterly EBIT Quarterly EBIT excl PIR* R12 EBIT excl PIR* EBIT excl. PIR* MSEK 356 (238) in MSEK 143 in Positive volume effect Higher copper TC/RCs Lower zinc TCs Maintenance stops in and 45 vs 18 MSEK EBIT impact, E-scrap expansion on plan from 212 * Process Inventory Revaluation Boliden Group

19 Smelters - Production Total feed, tonnes Copper Cathode production, tonnes Total feed, tonnes Zinc Metal production, tonnes Copper feed, total Copper cathode production Zinc feed, total Zinc metal production Cathode production +9% vs 2 Major maintenance stops in Lead alloys -4% compared to Maintenance stop in Bergsöe Kokkola +6% vs 2 Odda +% vs 2 Boliden Group

20 E-scrap expansion 212 Largest electronics recycling capacity in the world 45, to 12, tonnes/year Capex MSEK 1,3 Start early 212 Boliden Group

21 Financials Boliden Group

22 Financial Summary MSEK 2 2 YTD YTD Revenues Operating profit (EBIT) EBIT excl Process Inventory Revaluation EBIT excl PIR margin, % Free cash flow Capex Earnings per share, SEK 3,6 3,33 9,51 9,3 Gearing 27% 37% 27% 37% ROCE, % Boliden Group

23 Group EBIT 2 versus 2 MSEK EBIT Process Inventory revaluation EBIT excl Process Inventory Revaluation Deviation Specification of deviation Volume 2-19 Costs Prices & Terms Metal prices and terms Realised Metal- & Currency hedge* TC/RC terms Premiums 27-9 Currency effects w hereof translation effects -4-3 Internal profit elimination Others 12 - Deviation *Result for respective period Realised Metal- & Currency hedge Higher production Lower grades Higher production Cost inflation Zinc +% Copper +24% Silver +5% USD/SEK - % Boliden Group

24 Cost development 2 vs 2 MSEK MSEK 2 vs Volume + 14 Depreciation + 2 Other + 8 Total cost increase Total operating costs in equals 3,27 MSEK Boliden Group

25 Group EBIT 2 versus 2 MSEK EBIT Process Inventory revaluation EBIT excl Process Inventory Revaluation Deviation Specification of deviation Volume 2-19 Costs Prices & Terms Metal prices and terms Realised Metal- & Currency hedge* TC/RC terms Premiums 27-9 Currency effects w hereof translation effects -4-3 Internal profit elimination Others 12 - Deviation Aitik Higher production Lower grades Reduced cost, maintenance stops in Smelters in Zinc -1 % Copper -2 % Precious metals positive USD/SEK +3 % *Result for respective period Realised Metal- & Currency hedge Boliden Group

26 Cash Flow MSEK YTD YTD Op profit before depreciation (EBITDA)* Change in inventories Change in receivables Change in liabilities Other change in working capital Changes in working capital* Investment activities Financial net Paid tax Other Free cash flow *Includes Process Inventory Revaluation Boliden Group

27 Balance sheet MSEK Net debt & Gearing % 5% 45% 46% Gearing 8 6 Net debt Gearing 8% 6% 4% 35% 37% 33% 4 4% 3% 25% 2% 24% 21% 27% 2 2% 15% % % 5% % % Boliden Group

28 Sensitivity Analysis Change in metal prices, +% EBIT effect, SEK m Change in USD, +% EBIT effect, SEK m Change in TC/RC, +% Copper 4 USD/SEK 98 TC/RC Cu 5 EBIT effect, SEK m Zinc 425 EUR/USD 35 TC Zn 45 Lead 9 USD/NOK 7 TC Pb - Gold 15 Silver 16 Boliden Group

29 Boliden summary Comparing 2 and 27 Profit trend Committed capex Cost/capex reduction potential Similar 2-27 Debt and debt structure 27% 43% Hedge portfolio, MUSD -mid 213 1,36 9 Hedge prices, until mid 213 Copper, USD/tonne 9,72 6,145 Improved Zinc, USD/tonne 2,223 - Gold, USD/troz 1,38 69 USD/SEK Boliden Group

30 Summary Decline in global economy Good demand, low growth Continued high activity in China Boliden Good production compensated for lower grades Underlying cost increase Lower costs vs due to maintenance stops in Prices and USD combined on similar level as 2 and 2 Aitik ramp-up: Higher ore production, lower grades Crusher availability still low Boliden Group

31 Going forward Expansion projects: E-scrap expansion 212 Kankberg gold mine 2H 212 Garpenberg expansion 214 Aitik below reserve grade (,25%) Capex Approx SEK 4 billion 2 and 212 Boliden Group

32 Disclaimer This presentation has been prepared by Boliden for information purposes only. Nothing in this material shall be construed as an offer or solicitation to buy or sell any security or product, or to engage in or refrain from engaging in any transaction. This presentation has been prepared as per the indicated date and Boliden does not undertake any obligation to correct or update the information or any statements made therein. Views that may have been expressed may be subject to change without notice. Certain statements in this presentation are forward-looking and are based on plans, estimates, assumptions, projections and expectations and are subject to risks and uncertainties. In addition to the factors explicitly discussed, other circumstances may also have a material effect on the actual outcome. Such factors include, but are not limited to, general economic or political conditions, fluctuations in exchange or interest rates or metal prices, technological factors, interruptions in supply or production, actions of courts, regulators, governmental agencies, competitors, customers, suppliers, employees or other third parties. Nothing contained herein shall constitute any representation or warranty as to the accuracy or completeness and Boliden accepts no responsibility or liability as to the accuracy or completeness of the information contained herein. The material may include information from third party sources believed to be reliable. However, Boliden has not made an independent verification of the information provided. Save as by prior approval in writing, this material may not be copied, transmitted or disclosed, whether in print, electronic or any other format. All rights to the material are reserved. Boliden does not accept any liability whatsoever for any direct, indirect, consequential or other loss arising from or in connection with any use of this information. This material has not been reviewed, registered or approved by any authority under any applicable laws. Boliden Group

33 Boliden - metals for modern society Boliden Group

34 Appendix Boliden Group

35 Mines - Production Gold metal content, kg Gold & silver Silver metal content, kg Metal content, tonnes Lead Gold metal content Silver metal content Lead metal content Gold Higher production in Aitik vs - Higher grades in Boliden area vs - Silver Higher production in Garpenberg Higher metal content in vs - and - Higher volume and grades in Garpenberg Improved recovery in Tara vs - Boliden Group

36 Smelters - Production Gold production, kg 5 Gold & silver Silver production, kg 16 Production, tonnes 16 Lead Gold production Silver production Lead alloys production Gold Higher production vs - due to higher grades in raw material Production varies due to production cycle of lead in Rönnskär Boliden Group

37 Capital Structure SEK bn 3 Sep 31 Dec Unless otherwise stated 2 2 Total Asset 37, 35,1 Capital employed 29,7 27,2 Shareholders' equity 1 2,4 18,8 Net debt 5,6 4,6 Gearing % Equity/asset ratio, % Duration of committed credit facilities, years 3,4 4,2 Average interest rate, % 3,5 3,29 Interest duration, years 1,1 2, Net payment capacity 9,6,7 1. Shareholders equity includes the value of outstanding hedge contracts Boliden Group