boliden metals for generations to come

2021

Post Q1 2021 General Presentation

Mikael Staffas, President & CEO

Håkan Gabrielsson, CFO

Boliden – Metals for

generations to come

Agenda

Boliden: Introduction

Performance up until Q1 2021

The Metals market post Q1 2021

Boliden´s value creation strategy

- Key focus areas

Summary & QA

Mikael Staffas

President & CEO

Håkan Gabrielsson

CFO

2GENERAL PRESENTATION POST Q1 2021

Our purpose

To provide the metals essential

to improve society for generations

to come

Our vision

To be the most climate friendly

and respected metal provider in

the world

Our values

Care, Courage, Responsibility

GENERAL PRESENTATION POST Q1 2021 3

Boliden – Metals for modern life

4

Founded in 1924

~6,000 employees

Mines & Smelters

Most exposure to Zn and Cu

Industrial customer base in northern Europe

0

2,000

4,000

6,000

8,000

10,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

SEKm

EBIT* ex. PIR

* PIR=Process Inventory Revaluation

GENERAL PRESENTATION POST Q1 2021

Boliden´s contradictions are key to our success…

Small

~6,000 employees

Local

Strong link to local communities

Conservative

Preserving and valuing its culture

5

Large

Listed on OMX Large Cap

Global

Global network and smelter sourcing

Cutting edge in technology

Highly automated

Co-worker at the Boliden mine in 1936 Present Electric trolley at the Aitik mine


… along decentralized management*

6

Linn Andersson,

Boliden Rönnskär

Peter Bergman,

Boliden Area

Jenny Gotthardsson,

Boliden Garpenberg

Fredrik Kanth

Boliden BergsöeAntti Kontiainen,

Boliden Kokkola

Gunnar Nyström,

Boliden Tara

Hans Jönsson,

Boliden AitikHenrik Grind,

Boliden Kevitsa

Timo Rautalahti,

Boliden Harjavalta

Helen Seim,

Boliden Odda

* On average our 10 General managers have 27 years of work experience

from the Metals & Mining industry, whereof 16 years as Boliden employees.


World leading productivity in open pit andunderground mines

7

Source: Wood Mackenzie 2020,

(1) Copper: Open pit and mines with both open pit / underground operations, Zinc: underground and mixed underground/open pit mines

C1 Cash Cost (US¢/lb) composite costing

Boliden

Area

Garpenberg

Tara

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

0 5 10 15

Tonnes per

manhour

Million tonnes of milled ore

Zinc - underground mines*

Aitik

Kevitsa

0

5

10

15

20

25

30

35

0 20 40 60 80 100 120 140 160

Tonnes per

manhour

Million tonnes of milled ore

Copper – open pit mines*


Enhanced cost position in open pit and underground mines

8

Source: Wood Mackenzie 2020,

(1) Copper: Open pit and mines with both open pit / underground operations, Zinc: underground and mixed underground/open pit mines

C1 Cash Cost (US¢/lb) composite costing

Aitik 2020

Aitik 2010

-100

-50

0

50

100

150

200

250

300

0% 20% 40% 60% 80% 100%

Coppercomposite mining cash cost USc/lb

2020 2010

Garpenberg

Boliden Area

Tara

Garpenberg

Boliden AreaTara

-30

-10

10

30

50

70

90

110

130

150

0% 20% 40% 60% 80% 100%

Zinc –composite mining cash cost USc/lb

2020 2010


9

ESG is key in our purpose, vision and values

Q1 2021

Lost Time Injury* 6.5 (6.5)

Sick leave 5.2 (4.7) ‒ Covid-19

Carbon dioxide intensity of 0.7 (0.6)‒ Lower grades

‒ Feed mix

CO2 Intensity

*Per million hours worked, including contractors

0.0

0.2

0.4

0.6

0.8

1.0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2017 2018 2019 2020 2021


Four million car batteries per year

E-scrap equivalent to two million mobile

phones per day

Steel mill dust

Zinc ashes

Incinerated waste

We are a front runner in recycling…

10

Circular Economy

Rönnskär

– a world leading recycler of

electronic material

Bergsöe

- one of Europe’s

largest recycling

facilities for lead

batteries


Just above 30 active and

decommissioned mines

2.3 BSEK net reclamation liability

Net reclamation liability is included in our

capital structure goal*

* Boliden’s capital structure goal; the sum of net debt and net reclamation liability shall,

comprise approximately 20% of equity in an economic upturn.

…and taking long term responsibility for our metal supply

11

Rackejaur (decommissioned mine in the Boliden Area)


Competitively low carbon footprint compared to global averages (nickel)

12

Nickel integrated Kevitsa - Harjavalta CO2 emissions scope 1+2

Source: Wood Mackenzie


Competitively low carbon footprint compared to global averages (zinc)

13

Source: Wood Mackenzie Zinc Emissions

benchmarking tool

Weighted AverageWeighted Average


Boliden’s climate target is to reduce CO2

intensity by 40% 2012-2030

‒ 2012: 0.77

‒ 2020: 0.61

‒ Target 2030: 0.46

We will achieve this by

‒ Increased electrification

‒ Optimized ventilation

‒ Energy efficiency

‒ Alternative reduction agents

‒ Improved energy mix

Further reduction of CO2 from an already strong position

14

Aitik


Boliden is a new member in the International

Council on Mining and Metals (ICMM)

‒ Adherence to ICMM's principles to ensure a safe, fair,

sustainable and transparent mining and metals industry

We are committed to implement the Global

Industry Standard on Tailings Management

according to the set timelines

Responsible tailings management of highest priority

15

Kevitsa


16

Q1 2021 – Strong cash flow

KEY HIGHLIGTHS

Strong prices and terms

Stable production in Smelters

Production disturbances and

Covid-19 related issues in Mines

FINANCIAL PERFORMANCE

EBIT excl. PIR* 2,449 (1,504) MSEK

Free cash flow 2,165 (-845) MSEK

Capex 1.1 (1.8) BSEK

PROJECTS

Kevitsa and Garpenberg at designed

capacity, Aitik still ramping up

On schedule: Rönnskär Cu expansion

and Harjavalta Ni expansion

Decision to expand Kristineberg within

the Boliden area (Rävliden

mineralization)

Leach plant in Rönnskär under

commission

*PIR (Process Inventory Revaluation)


17

EBIT excl. PIR by business areas

Mines Smelters

MSEK Q1 2021 Q1 2020 Q4 2020

1,631 318 1,858

949 1,117 1,109

-131 69 76

2,449 1,504 3,043

Mines

Smelters

Other/eliminations

The Group

0

2,000

4,000

6,000

8,000

10,000

0

500

1,000

1,500

2,000

2,500


2017 2018 2019 2020 2021

Rolling,MSEK

MSEK

Quarterly EBIT 12 months rolling EBIT

0

1,000

2,000

3,000

4,000

5,000

0

300

600

900

1,200

1,500


2017 2018 2019 2020 2021

Rolling,MSEK

MSEK

Quarterly EBIT excl.PIR 12 months rolling EBIT excl.PIR


18

Cash flow

MSEK Q1 2021 Q1 2020 Q4 2020

3,769 2,762 4,651

-122 -1,284 397

-1,076 -1,821 -1,698

-60 -65 -63

-359 -409 -558

13 -28 21

2,165 -845 2,750Free cash flow

Cash flow from investments

EBITDA excl. PIR

Cash flow from working capital

Financial items

Tax paid

Other


19

Capital structure

Net debt & Gearing

SEK bn 31 Mar 2021 31 Mar 2020 31 Dec 2020

Total Assets 74.8 68.4 72.5

Capital Employed 51.7 52.6 51.0

Equity 48.2 43.3 45.6

Net debt 0.1 6.5 2.2

Net debt/equity, % 0 15 5

Net reclamation

liability/equity, % 5 5 5

Average interest rate, % 1.6 1.1 1.6

Net payment capacity 15.0 6.8 12.70

10

20

30

40

50

60

0

1

2

3

4

5

6

7

8

9


2017 2018 2019 2020 2021

%SEK bn

Net debt Net debt/equity ratio


20

Zinc, Copper and Nickel prices relative to cash cost

Source: Wood Mackenzie 2021 Composite C1 cash cost* data, Refinitiv Datastream April 23, 2021 price data

* Composite costing, C1 cash cost: normal C1 mines for mines with net revenue from one metal > 65% total net revenue, pro-rata for other mines

Zinc Copper Nickel

USD/tonne USD/tonne USD/tonne

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

0

5,000

10,000

15,000

20,000

25,000

30,000

0

2,000

4,000

6,000

8,000

10,000

12,000


21

Copper and Zinc Treatment Charges

Contract benchmark according to market sources including CRU

Copper TC Zinc TC

0

20

40

60

80

100

120

2017 2018 2019 2020 2021

USD/tonne

concentrate

Contract TC - annual and mid-year benchmark

Standard grade spot TC

0

50

100

150

200

250

300

350

2017 2018 2019 2020 2021

USD/tonne

concentrate

Contract TC - realized Spot TC imported concentrate to China


22

Boliden´s weighted index remains on historic highs

Increased base metal prices‒ Especially Cu

High precious metal prices

Slightly weaker USD

Boliden price index*

*Index 100 = 1 January 2016

0

25

50

75

100

125

150

175

200

0

25

50

75

100

125

150

175

200


Long-term commitment to financial targets and dividend policy

23

Net Debt/Equity

at about 20%

at economic

peaks*

Return on

investments

≥ 10%

Dividend policy:

1/3 of

net profit

*The target also includes net reclamation liability


0

5

10

15

20

25

30

35

Aitik Boliden Area Garpenberg Tara Kevitsa

2010 2020

Exploration

Exploration cost 504 (570) MSEK‒ Reduced activities due to Covid-19

‒ Drift to Tara Deep 76% completed

‒ 2021: >700 MSEK

New partnerships ‒ Norden Crown Metals Corp. (Norway)

‒ Buchans Resources Limited (Canada)

24

Kevitsa-Finnish Lapland – Cu, Ni, Au, PGM, Co

Aitik/Gällivare – Cu, Au, Ag

Skellefteå district – Zn, Cu, Au, Pb, Ag, Te

Outokumpu area – Cu, Ni, Au, Co, Zn

Garpenberg/Bergslagen – Zn, Ag, Pb, Cu, Au

Tara – Zn, Pb

Reserve life*

*2010 and 2020 year end reserves divided by designed full production


Aitik – Ramping up

Designed capacity: 45 Mtonnes

Lower grade than reserve average for

several years

Efficiency projects‒ Electrification

‒ AHS (Autonomous Haulage System)

Liikavaara satellite pit‒ Included in total Mineral Reserves and

Resources statement

‒ 3 km to Aitik main crusher

‒ Limited Capex

Major permit renewal 2024

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

2012 2013 2014 2015 2016 2017 2018 2019 2020

Aitik Milled volume (Ktonnes)

GENERAL PRESENTATION POST Q1 2021 25

Designed capacity 3.0 Mtonnes‒ Stable production achieved

3.3 Mtonnes, conceptual study‒ Limited Capex

Efficiency projects‒ Grade optimization – two pass mining

‒ Automation and digitalization

‒ De-bottlenecking

Garpenberg – Improving efficiency from a high level

26

Garpenberg, automation in drilling

7% 8%

15%

30%

37%

25%29% 28%

23%

15%

0%

10%

20%

30%

40%

50%

60%

0

50 000

100 000

150 000

200 000

250 000

2016 2017 2018 2019 2020

Drillmeters Drilled using automation Re-work (cleaning of holes)


Designed capacity 9.5 Mtonnes

Efficiency activities

‒ Stabilizing production

‒ Electrification

Potential stage 5 under evaluation

Kevitsa – At a new production level

27

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

2012 2013 2014 2015 2016 2017 2018 2019 2020

Kevitsa Milled volume (Ktonnes)

Pre-Boliden Boliden production


Inferred 26.2 Mtonnes

@ 8.4% Zn, 1.6% Pb‒ Higher grades relative to Tara

Ongoing extensive project

development program ‒ Exploration

‒ Exploration drift & mine infrastructure

‒ Conceptual study

Bridging and extending Tara

Tara – Extending by Tara Deep

28

10.2

13.0

18.2

22.4

26.2

2016 2017 2018 2019 2020

Tara Deep Resource Growth*2016 - 2020

*Mtonnes, Based on surface drilling


Future proof Boliden Area

SEK 1.25 bn Capex partially pending

environmental permits

Planned production start 2023‒ 200 Ktonnes increased annual milled volume from

the Boliden Area‒ Higher ore value

‒ Highly automated production‒ Potentially fossil free transports

Financial return above Boliden's target

Rävliden – Extension of Kristineberg mine and the Boliden Area

29

Kristineberg/Rävliden, possible mine layout

*Combination of Inferred and Indicated resources. For further details please see www.boliden.com.

Rävliden*: Mineral resource of 8.4 (5.7)* Mtonnes @ 1.0% Cu, 4.2% Zn, 80 g/tonne Ag

.


Inferred mineral resource of 2.59 Mtonnes @

2.95 g/tonne Au, 81 g/tonne Ag, 0.16% Cu,

4.44% Zn, 0.75% Pb

Located 4 km from Boliden processing plant

Complex metallurgy with contents of As, Sb

and Hg

Extension of mineralization still open

Exploration and conceptual study ongoing

Strömfors – in the Boliden Area

30

Strömfors, mineral lenses


Extracting additional value from

intermediates‒ 25 ktonnes lead sulphate

‒ 25 ktonnes copper/zinc sulphate

Decreasing waste volume to

underground repository by 80%

Capex: 750 MSEK

Commissioning Q2 2021

Rönnskär Leach Plant reaching commissioning

Rönnskär Leach Plant


Nickel feed capacity from 310 to 370 ktonnes

Lower CO2 intensity by up to 20%

Improving safety by increasing automation

Greater raw material flexibility

Capex: 40 MEUR

Commissioning Q3 2021

Harjavalta Ni Expansion coordinated with maintenance

Harjavalta Ni Matte station


Copper with a low carbon footprint,

verified by third party

Produced from Boliden copper

concentrate and recycled copper

All significant emission categories from

cradle-to-gate included

We are well positioned compared to

global average

Committing to Green Metals with Boliden Low-Carbon Copper

33

0

500

1000

1500

2000

2500

3000

3500

4000

4500

ICA Environmental Profile 2018 Boliden Low Carbon Copper

[kg CO2eq/ton Copper Cathode]

>4kg

>4kg

1.5kg


25% of Boliden´s annual Low-Carbon

Copper capacity already contracted‒ Agreements with Schwering und Hasse, Essex

Furukawa and Elcowire Group

First volumes delivered to customers

World’s first verified Low-Carbon Copper now available!

Boliden Low-Carbon Copper

<1.5kg CO2/kg Cu

Produced from copper concentrate mined

in our own mines

Boliden Recycled Copper

<1.5kg CO2/kg Cu

100% recycled copper produced from,

for example, electronics


35

Green Zinc – Odda 4.0 Strategic Rationale

Strong industrial logic

- Economies of scale

- Efficient logistics

- Energy efficiency

- Automation and digitalization

- Recovery of lead and silver

Strong environmental credentials

- Excellent CO2 footprint

- 100% hydroelectric power

- Sustainable waste handling

Financial return above

Boliden's target

Comparable to Boliden’s largest

historical Capex projects


36

Outlook post Q1 2021 Aitik

‒ 2021: Cu 0.21 %, Au 0.11 g/tonne

Garpenberg‒ 2021: Zn 3.8 %, Ag 110 g/tonne

Maintenance stops‒ 2021: -500 (-345) MSEK

Capex‒ 2021: Slightly above 7 BSEK


Stable value chain

- Technical know-how

- Mines and Smelters

- Base metals and precious metals

- High corporate responsibility

- Stable jurisdictions

Strong capability to deliver results

- High productivity

- Solid financials

- Long cultural heritage

- Own project development

- Long life for key mines

Competitive portfolio

- Metals for generations to come

- Cu, Zn, Ni and Pb

- Biproducts like Au, Ag, Pt and Pd

Boliden, Investment Case


38

This presentation has been prepared by Boliden for information purposes only and as per the indicated date. Boliden does not undertake any obligation to correct or update the information or any statements made therein. Certain statements in this presentation are forward-looking and are subject to risks and uncertainties.

Nothing contained herein shall constitute any representation or warranty as to accuracy or completeness. Boliden has not made any independent verification of the information obtained from third parties.

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.

Boliden does not accept any liability whatsoever arising from or in connection with the use of this information.

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.


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