Boliden. Interim Report January - March Mines Smelters Zinc Copper. Boliden AB 1 May 4, 2006

Transcription

1 Boliden AB 1 Boliden Interim Report January - March 2006 Mines Smelters Zinc Copper

2 Boliden AB 2 Continued strong growth in China lower growth rate in the rest of the world Global 2006 Q1* - Cu-consumption 5.5 % - Cu-production 7.3 % - Zn-consumption 3.4 % - Zn-production 1.1 % Industrial Production USA - Cu-consumption 9.9 % - Zn-consumption 0.0 % Europe - Cu-consumption 2.6 % - Zn-consumption 0.0 % Growth % China - Cu-consumption 10.6 % - Zn-consumption 9.5 % Continued good forecast for 2006 Q v.s. Q USA W Europe Japan China

3 Boliden AB 3 LME Copper Price and Stocks USD/tonne Tonnes Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 0

4 LME Zinc Price and Stocks USD/tonne Tonnes Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Boliden AB 4

5 Boliden AB 5 Increased demand for zinc import in Europe Production and consumption in '000 tonnes Balance in '000 tonnes Balance Europe Production total Europe Consumption total Europe Data: CRU Zinc Quarterly, 4th quarter 2005; comparison of forecasted Zn metal production capacity and Zn metal consumption

6 Boliden AB 6 Zinc metal premiums USD/tonne Jan -05 Feb Mar Apr Maj Jun Jul Aug Sep Oct Nov Dec Jan Feb Current US Midwest Delivered Europe ex-works Far East (Western) Data: CRU Monitor Zinc, March 2006

7 Boliden AB 7 Shortage of copper concentrate? Copper: Present production + probable expansions + possible expansions '000 tonnes of copper p.a Possible expansions Probable expansions Base Case New Projects and planned expansions 1% growth rate 3 % growth rate % growth rate Data: CSFB, Brook Hunt

8 Boliden AB 8 Shortage of zinc concentrate? Zinc: Present production + probable expansions + possible expansions '000 tonnes of zinc p.a Possible Expansions Probable Expansions Base Case + Highly Probable 1% Demand Growth 3% Demand Growth 5% Demand Growth Data: CSFB, Brook Hunt

9 Boliden AB 9 Historically strong result SEK m First quarter Change in % Net sales Operating result (EBIT) Result after financial items Earnings per share Cash flow from operating activities Return on capital employed, % Net debt/shareholders equity, % Improved metal prices, increase in TC/RC and higher US dollar exchange rate. Higher levels of production. Reduced debt levels have positive effect on net financial items. Actual tax payments continued to be low. Return on capital employed well above financial goal.

10 Operating result - quarterly SEK m Q Q Q Q Q Q Q Q Boliden AB 10

11 Boliden AB 11 Production Copper Tonnes Mining production, metal content Tonnes Smelter production, cathodes Q Q Q Q Q Q Q Q Q Q Aitik continued high production during Q1 due to good grades. Boliden Area increase in copper production. Copper Smelters high, stable production.

12 Boliden AB 12 Production Zinc Tonnes Mining production, metal content Tonnes Smelter production, casted zinc Q Q Q Q Q Q Q Q Q Q Tara good production levels during Q1. Boliden Area lower zinc production due to change in concentrate mix. Garpenberg healthy production with higher grades. Boliden Kokkola stable production of zinc. Boliden Odda improved production due to new direct leach process.

13 Boliden AB 13 Garpenberg Area Long section Garpenberg Garpenberg N 0Z 400Z Dammsjön Kvarnberget Lappberget 870 Z 800Z Strand Ore Kanal Ore Finnhyttan & Tyskgården & Kyrkmalmen Dammsjön 910 Z Kaspersbo N Production Levels Potential Areas

14 Boliden AB 14 Operating result per segment SEK m First quarter Copper Zinc Other Total Copper higher metal prices, US dollar exchange rate, TC/RC, increased production and stock profit were counteracted mainly by higher costs. Zinc higher metal prices, US dollar exchange rate and increased production were counteracted mainly by stock loss and higher costs.

15 Boliden AB 15 Cash flow Cash flow from operating activities SEK 999 million (SEK 249 m) Operating result before depreciation (EBITDA), SEK m Cash flow from investment activities SEK -441 million (SEK -76 m). Free cash flow SEK 558 million (SEK 173 m) Net loan amortisation SEK million (SEK 314 m) Kv Kv Kv Kv Kv1 2006

16 Boliden AB 16 Capital structure 31 Mar 31 Mar Net debt / Equity Balance Sheet total, SEK bn % 70% 71% 69% 64% Capital employed, SEK bn % 50% 40% 54% 45% Shareholders equity, SEK bn % 20% Net debt, SEK bn Gearing, % % 0% Q Q Q Q Q Equity/assets ratio,%

17 Boliden AB 17 Summary Q1 and forecast 2006 Continued strong and stable growth in the global economy. Higher metal prices and US dollar exchange rate. Good production levels from all units during Q1. Result after financial items SEK million (SEK 353 m) Production on planned levels in early Q Continued good market forecasts for Boliden s metals.

18 Boliden AB 18 Mines Smelters Zinc Copper