Boliden. Full Year Report Mines Smelters Zinc Copper. Boliden AB 1 February 9, 2005

Transcription

1 Boliden AB 1 Boliden Full Year Report 2004 Mines Smelters Zinc Copper

2 Boliden AB 2 Strong global financial recovery Growth 2004 Global - Cu consumption 7 % - Cu production 6 % - Zn consumption 7 % - Zn production 2 % USA - Cu consumption 8 % - Zn consumption 8 % Europe - Cu consumption 2 % - Zn consumption 3 % China - Cu consumption 14 % - Zn consumption 14 % Outlook for 2005 good Industrial Production Q1 Q2 Q3 Q4 04-Q1 Q2 Q3 Q4 USA WEuropa Japan China

3 Boliden AB 3 Major Zn and Cu imbalance in 2004 and 2005 Thousand tonnes Zinc balance supply demand Thousand tonnes Copper balance supply demand

4 Boliden AB 4 Zinc: Price and LME stocks USc/lb tonnes Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05

5 Copper: Price and LME stocks USc/lb tonnes Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Boliden AB 5

6 Boliden AB 6 Exchange rates: USD/SEK EUR/USD USD/SEK Mar May Jul Sep Nov 04 Mar May Jul Sep Nov EUR/USD Mar May Jul Sep Nov 04 Mar May Jul Sep Nov 05

7 Boliden AB 7 Sensitivity analysis 2005 Change Effect on Change Effect on Change in Effect on in metal prices op. result in USD +10% op. result TC/RC op. result +10% SEK m SEK m +10% SEK m Copper 208 USD/SEK 447 TC/RC Copper 56 Zinc 304 EUR/USD 263 TC Zinc 24 Lead 55 USD/NOK 52 TC Lead -9 Gold 49 Silver 42 Nickel 13

8 Boliden AB 8 Metal prices and exchange rates Metal prices Full year Change Fourth quarter Change in % in % Copper (USD/lb) Zinc (USD/lb) Lead (USD/lb) Gold (USD/oz) Silver (USD/oz) Exchange rates USD/SEK EUR/USD EUR/SEK USD/NOK

9 Boliden AB 9 Historically strong full-year results 2004 SEK m Full year Fourth quarter Net sales Operating result Earnings per share Return on capital employed, % Net debt/shareholders equity, % Structural transaction, higher metal prices and good production boosted the result Lower USD exchange rates and lower TC/RC negatively affected the result Improved earnings per share Return on capital employed on a par with financial goals Financial position strengthened

10 Boliden AB 10 Operating result quarterly Q1-03 Q2-03 Q3-03 Q Q1-04 Q2-04 Q3-04 Q

11 Boliden AB 11 Mines: Zinc & copper production* Zinc Copper Zinc Copper Q4-03 Q Full year 2003 Full year 2004 Aitik higher production of copper and gold Boliden Area decreased production of copper from Storliden Garpenberg high grades of zinc, silver and lead in the ore from Lappberget boost production Tara Nevinstown ore body has improved levels of both zinc and lead *2003 proforma. Production from Myra Falls in included in the first six months of 2003 och 2004.

12 Boliden AB 12 Smelters: Copper production* Tonnes Cathodes Tonnes Cathodes Q4-03 Q Full year 2003 Full year 2004 Increased production of copper cathodes, lead and gold Production record at Rönnskär Continued production optimisation Stable flows of external copper concentrate External concentrate availability good also for 2005 *2003 proforma

13 Boliden AB 13 Smelters: Zinc production* Tonnes Zinc slab Tonnes Zinc slab Q4-03 Q Full year 2003 Full year 2004 Increased production of zinc, new production record at Kokkola 2004 The start-up of the Odda modernisation project during the fourth quarter of 2004 involved small disturbances *2003 proforma

14 Boliden AB 14 Operating result per Area SEK m Full year Fourth quarter Mining Operations Copper Zinc Other Totalt

15 Boliden AB 15 Operating result per product* Q1-03 Q2-03 Q3-03 Q4-03 FY 2003 Q1-04 Q2-04 Q3-04 Q4-04 FY 2004 Copper Zinc *Excl OH & other

16 Boliden AB 16 Cash flow Cash flow from operating activities SEK million (SEK 956 m) Cash flow from investment activities SEK million (SEK m) Net loan amortisation SEK million (SEK m) Share issue generated SEK million Operating result before depreciation (EBITDA), SEK m Q1-03 Q2-03 Q3-03 Q4-03 Q1-04 Q2-04 Q3-04 Q

17 Boliden AB 17 Investments Total investments for the full year of 2004 SEK million (SEK 611 m) Full year 2004 breakdown of investments % Odda and Tara investment programmes completed in the fourth quarter of % 46% Investments below depreciations during % Mines Copper Zinc

18 Boliden AB 18 Capital structure 31 dec 31 dec Balance Sheet total, SEK bn Capital employed, SEK bn Shareholders equity, SEK bn Net debt/shareholders equity, % 778% 800% 700% 600% 500% 400% 300% Net debt, SEK bn Gearing, % Equity/assets ratio, % % 100% 0% 190% 183% 147% 109% 114% 74% 0%

19 Boliden AB 19 Goals of directed issue in December 2004 Stronger financial position with increased flexibility Wider and larger international institutional ownership Eliminating Outokumpu s overhang of Boliden shares Improved liquidity for Boliden s shares

20 Boliden AB 20 Improved liquidity and international ownership Average Average daily daily turnover turnover per per week week Number of shares ( 000) ,496 (incl. share issue) Average volume after the share issue 1, ,048 1, , ,086 1,732 1,757 1,815 Week Ownership Ownership structure structure before before and and after after the the share share issue issue Before the share issue After the share issue Swedish investors 36.1% 49.0% Outokumpu Swedish investors 38.3% 26.5% Outokumpu 14.9% 35.2% International investors International investors

21 Boliden AB 21 The project portfolio 2004 The share issue, completed in Q2, was over-subscribed and generated SEK 1,374 million for the company. A new partnership agreement will increase supplies of copper concentrate from the Portuguese mine, Neves Corvo. The Canadian Myra Falls mine was sold in Q3. Boliden received 18 million newly issued shares in Breakwater. The sale generated a capital gain of SEK 19 million. Land adjacent to the Tara mine generated a capital gain of SEK 175 million. The integration of the operations within new Boliden is proceeding better than planned. The synergies realised during 2004 correspond to approximately SEK 270 million on a full year basis. Boliden s refinancing of the company s bank loans for a total of EUR 840 million was completed in October. In December, a directed issue aimed at international and Swedish investors was implemented, generating a total of SEK 889 million for the company Boliden sold all its shares in NAN in December, making a capital gain of SEK 67 million

22 Boliden AB 22 Dividend Policy and Goals Boliden s Board of Directors has established a dividend policy, by which shareholders obtain a dividend of 1/3 of the result, after tax, to be paid over the course of an economic cycle. In the annual dividend proposal the Board of Directors will consider the company s development and investment requirements. The Board of Directors aims to propose at the Annual General Meeting that a dividend be paid according to this policy as of the 2005 financial year.

23 Boliden AB 23 Summary and outlook 2005 Strong global economic recovery Higher prices for all of Boliden s metals Full capacity in all operations within new Boliden Historically strong operating result for the full year of 2004: SEK million (SEK -19 m) Stronger financial position Improvements in the underlying operations in 2005 Good market conditions in 2005 Continued good result after financial items and significant improved free cash flow in 2005