Group update. Lennart Evrell President & CEO

Transcription

1 Group update Lennart Evrell President & CEO 1

2 A few topics to cover Expansion Aitik Boliden area E-scrap recycling Issues Aitik ramp-up Copper smelters Education Smelter revenue model Sensitivities CSR in Metal & Mining 2

3 Third Quarter 2010 The market Improving market demand Increasing metal prices Weak USD Better concentrate availability end of quarter Spot TCs for copper improving Boliden Revenues MSEK 9,373 (6,960) EBIT ex PIR* MSEK 1,348 (949) Operating profit MSEK 1,213 (733) Cash-flow MSEK 1,203 (610) Boliden area ramp-up Aitik commissioning continues *PIR=Process Inventory Revaluation 3

4 Group EBIT Development MSEK Quarterly EBIT Quarterly EBIT excl PIR* Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q *Process Inventory Revaluation 4

5 Production and metal value January-September Main metals production values calculated at average LME prices 5

6 Expansion projects Aitik Boliden area E-scrap recycling 6

7 Aitik Mine 7

8 Aitik copper mine expansion Status On time Mill section 1 and 2 in production Inaugurated 31 August On capex Not yet stable, actions crushers Full capacity in 2014 Fundamentals Double ore production High productivity Profitable mining of lower grades Average reserve grade 0,25% Cu annual production approx +50% Life of mine Lower grades Current production plan has lower than average grades Capex Just over 6 bsek Time In production 1 July 2010 Full production 36 mtonnes ore

9 Maurliden Mine Quantity, ktonnes, Au 2009 (g/t) Maurliden Östra Maurliden Proven Probable Proven Probable 1,200 1, Ag (g/t) Cu (%) Zn (%)

10 Boliden area ramp-up On time Tailing capacity Maurliden push-back ongoing Maurliden Östra started Two lines in production On capex 10

11 Electronics recycling plant, Rönnskär 11

12 E-scrap expansion Investment rationale Strong increase in e-scrap supply Increases profitability and reduces volatility Tight copper concentrate market expected to continue Well known proprietary technology Leading position within e-scrap recycling strengthens Increased contribution to sustainable development Brief description of investment Increases capacity from 45 to 120 kt/y Investment of approx. SEK 1.3 billion Expected start up 2011/12 Increases metal production Synergies with existing production increases profitability Pay back less than 4 years Capital BolidenMarkets Days - November 1-2,

13 Corporate social responsibility 13

14 If stability is of fundamental importance for Boliden, it is evident that sustainability is priority one 14

15 Boliden s safety work is on a good trend 18,0 LTI in Boliden ytd 16,0 15,7 14,0 13,0 12,0 11,1 11,9 11,2 10,0 9,9 9,1 8,0 6,0 4,0 5,5 6,5 2,0 Trend 0,

16 Our environmental emissions are below budget levels and concession values kg kg Metals Metals to to air water Odda1 600 Kokkola Actual BergsöeBudget Harjavalta Rönnskär Actual Budget t SO2 to air kg kg Metals Metals to water to air Actual Budget Hg Cd Ni Cu Pb Zn kg Metals to air Cd As Ni Cu Pb Zn Pb Actual Cu Ni ytd ZnCd Budget ytd PbHg 0 0 Ni Actual ytd Cd Budget ytd As 0 Actual ytd Budget ytd 16

17 Revised approach when working with our business partners CSR Criteria Group Instructions Risk assessments Audit Follow up Questionnaire Evaluation Follow up 17

18 Survey sent to 112 business partners 18

19 19

20 Customer audit September

21 Lost Time Injuries (LTI) reduced 95% Rönnskär per million hours 21

22 Emissions to air reduced 90-99% Rönnskär

23 Emissions to water reduced 99,9% Rönnskär - metal discharge* * Copper, lead, zinc, arsenic 23

24 Boliden produces metals that make modern life work 24