Boliden. Interim Report January - June Mines Smelters Zinc Copper. Boliden AB

Transcription

1 Boliden Interim Report January - June 2005 Mines Smelters Zinc Copper Boliden AB 1

2 Boliden AB 2 Continued strong growth in China lower growth rate in the rest of the world Global Q2 2005* - Cu-consumption -0,7 % - Cu-production 10,7 % - Zn-consumption 3,2 % - Zn-production 2,0 % USA - Cu-consumption -12,2 % - Zn-consumption 1,7 % Europe - Cu-consumption -1,0 % - Zn-consumption -2,2 % China - Cu-consumption 4,5 % - Zn-consumption 14.7 % Forecast for 2005 continued good Q2-05 v.s. Q Industrial production USA W Europe Japan China

3 Zinc: Price and LME stocks USc/lb tonnes jan-03 apr-03 jul-03 okt-03 jan-04 apr-04 jul-04 okt-04 jan-05 apr-05 jul-05 Boliden AB 3

4 Boliden AB 4 Copper: Price and LME stocks USc/lb tonnes jan-03 apr-03 jul-03 okt-03 jan-04 apr-04 jul-04 okt-04 jan-05 apr-05 jul-05

5 Boliden AB 5 Continued Zn imbalance - Cu approaches balance Thousand tonnes Zinc balance supply demand Thousand tonnes Copper balance supply demand

6 Boliden AB 6 Recovery of the US dollar USD/SEK EUR/USD 9,00 1,40 8,75 1,35 8,50 8,25 1,30 8,00 1,25 7,75 1,20 7,50 1,15 7,25 7,00 1,10 6,75 1,05 6,50 Apr Jul Oct 04 Apr Jul Oct 05 Apr Jul 1,00 Apr Jul Oct 04 Apr Jul Oct 05 Apr Jul USD/SEK EUR/USD

7 Boliden AB 7 Earnings trend SEK m First six months Q 2 Q Net sales Operating result (EBIT) Result after financial items Earnings per share 1,46 2,72 0,57 1,28 Cash flow from operating activities Return on capital employed, % 10,1 12,0 9,4 11,5 Net debt/shareholders equity, % Continued strong metal prices. Lower US dollar exchange rate. Lower metal production within product segments Copper and Zinc. Reduced debt levels have positive effect on net financial income. Actual tax payments continue to be low. Return on capital employed and the debt / equity ratio on a par with financial goals.

8 Boliden AB 8 SEK m 600 Operating result - quarterly Q Q Q Q Q Q2 2005

9 To nnes Production Copper* Mining production, metal content To nnes Smelter production, cathodes 100,000 80, ,000 80,000 89,113 89,898 91,363 89,196 80,939 60,000 60,000 40,000 40,000 20,000 20,354 22,678 20,560 19,027 19,258 20,000 0 Q Q Q Q Q Q Q Q Q Q Aitik lower production due to lower grades and breakdown of grinding mill. Boliden Area slight increase in copper production. Lower cathode production at copper smelters mainly due to planned maintenance shutdowns. Full production at copper smelters during early Q3. *2004 pro-forma, excl Myra Falls Q1 2004, t. Q t. Boliden AB 9

10 Boliden AB 10 Production Zinc* Mining production, metal content Smelter production, casted zinc Tonnes Tonnes Q Q Q Q Q Q Q Q Q Q Tara lower production due to lower grades and breakdown of grinding mill. Boliden Area and Garpenberg healthy production results. Boliden Kokkola stable production of zinc. Boliden Odda the running in of the new plant successful and production at planned level. *2004 pro-forma, excl Myra Falls Q1 2004, t. Q2 2004, t.

11 Boliden AB 11 Operating result per segment SEK m First six months Q 2 Q Copper Zinc Other Total Copper higher metal prices and stock profit counteracted by lower US dollar exchange rate and decline in production. Zinc the positive effect of higher zinc prices was partly counteracted by lower US dollar exchange rate.

12 Boliden AB 12 Cash flow Cash flow from operating activities SEK 961 million (SEK 910 m). Cash flow from investment activities SEK -549 million (SEK -751 m). Free cash flow SEK 624 million (SEK 35 m). Net loan amortisation SEK 466 million (SEK m). 3,000 2,500 2,000 SEK m 1,500 1, Operating result before depreciation (EBITDA), SEK m , Q Q Q FY 2004 Q Q2 2005

13 Boliden AB 13 Capital structure 30 Jun 30 Jun Net debt / Shareholders equity, % Balance Sheet total, SEK bn 21,2 19,9 Capital employed, SEK bn 15,4 15,3 (%) 100% 90% 80% 70% 60% 50% 97% 94% 71% 71% 69% Shareholders equity, SEK bn 9,3 7,9 40% 30% 20% Net debt, SEK bn 6,4 7,6 Gearing, % % 0% Q Q Q Q Q Equity/assets ratio,% 43,8 39,4

14 Boliden AB 14 Summary first six months and forecast 2005 Continued strong growth in China, but lower growth rate in the rest of the world. Higher metal prices but lower US dollar exchange rate. Temporary lower production during first six months. Result after financial items first six months SEK 621 million (SEK 698 m), Q2 SEK 269 million (SEK 350 m). Production has returned to planned levels within Copper and Zinc. New Business Areas increases focus on our main products. Good market forecasts throughout Result after financial items higher in 2005 than in 2004 and significant improvement of free cash flow in 2005.

15 Boliden Interim Report January - June 2005 Mines Smelters Zinc Copper Boliden AB 15

16 Boliden AB 16 Operating result per segment * ) Q Q Q FY 2004 Q Q Copper Zinc *) Excl OH & other Zinc 2004 incl sale of land in Tara during Q3 och Q4 net SEK 175 million.

17 Boliden AB 17 Sensitivity analysis June 2005 Change Effect on Change Effect on Change in Effect on in metal prices op.result in USD op. result TC/RC op. result +10% SEK m +10% SEK m +10% SEK m Copper 233 USD/SEK 516 TC/RC Copper 74 Zinc 353 EUR/USD 265 TC Zinc 44 Lead 52 USD/NOK 60 TC Lead -3 Gold 52 Silver 48 Nickel 37

18 Boliden AB 18 Investments Investments for the first six months SEK 549 million (SEK 751 m). Increased budget for exploration in Copper mines 25% Zinc mines 49% Total investments in 2005 lower than in Investments lower than depreciations in % Copper smelters 8% Zinc smelters

19 Boliden AB 19 Business cycle of metals Availability of raw materials + low metal prices high TC/RC high metal prices high TC/RC + - Availability of metal low metal prices low TC/RC - high metal prices low TC/RC