Smelters updateCMD 21 November 2013

Kerstin KonradssonPresidentBoliden Smelters

Smelters Financial development

EBIT ex PIR YTD Q3 530 (892) MSEK

R4Q, MSEKMSEK Quarterly EBIT excl PIR*

R lli Q EBIT l PIR* RHSMSEK Major maintenance stops in 2013 Otherwise stable quarterly

earnings since 20111 400

1 800

700

900

Rolling Q EBIT excl PIR*, RHS

Maintenanceg

Lower metal prices Positive TC development Sulphuric acid market weaker 1 000

1 400

500

700

Capex YTD Q3 946 (716) MSEK Capex higher than maintenance

level in coming years

600300

level in coming years‒ De-bottle necking‒ Environmental

200

200

100

100

2013-11-212Boliden CMD 2013

-200-1002010 2011 2012 2013

Gross profit development

8 000

6 000

7 000

11% 11% 11% 12%

8%9% 11%

9%7%

2%4%

9%9% 6%

4 000

5 000

MSE

K 30% 32% 33% 35% 36%

11% 11%11%

11%

2 000

3 000

M

0

1 000

2009 2010 2011 2012 2013

49% 44% 36% 36% 39%

Q3-4Q

2013-11-213Boliden CMD 2013

TC/RC Free Metal Premium Sulphuric acid Other by‐products

Strategic priorities

Improve safety, environmental & CSR fperformance

Secure optimal raw material supply

Broaden customer & product portfolio

Increase and diversify metals output

Improve operational efficiency & cost position

Reduce Capital Employed

2013-11-214Boliden CMD 2013

Copper Production – Q3

Rönnskär – production stability issues Cathode production

Total feed, kt

Copper Harjavalta – ok

Maintenance stops in Q2‒ Rönnskär at plan; Production problems 80

100

350

400

production, kt

kt

‒ Rönnskär at plan; Production problems at start-up

‒ Harjavalta 1 week delayed 60

80

200

250

300

20

40

50

100

150

00Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2011 2012 2013

2013-11-215Boliden CMD 2013

Copper feed, total Cathode production

Rönnskär - ChallengeCopper, lead and secondary smelterpp , y

Production instability Background:‒ Lower grade in concentrates‒ Quality e-materials‒ Changed raw material mix

Consequences:‒ Lower recovery

‒ High intermediate stocks‒ Low free metals

‒ High costs

Low EBIT from by-products

Environmental permitting process appealed

2013-11-216Boliden CMD 2013

Rönnskär - ActionsCopper, lead and secondary smelterpp , y

Focus areas‒ Production stability‒ Reduce intermediate stocks‒ Reduce costs

Actions‒ Raw material selection‒ Process control – steering and models‒ Adapt processes towards moreAdapt processes towards more

complex material mixes and low-grade concentrates

Time perspectiveTime perspective‒ Short term – stabilize‒ Long term – recovery

2013-11-217Boliden CMD 2013

HarjavaltaCopper and nickel smelterpp

Current situation‒ Costs under control‒ Copper - intermediate stocks back on

target‒ High free metals

Ni k l t bl‒ Nickel - stable

Focus areas‒ OEE (Overall Equipment Effectiveness)( q p )‒ Costs

Q4Cable fire EBIT impact 4MEUR‒ Cable fire, EBIT impact ~4MEUR

2013-11-218Boliden CMD 2013

Bergsöe

Current situation‒ Tight supply of batteries‒ Significant raw material price increases ‒ Improved productivity

‒ 3-4% volume increase ‒ Stable cost level

Focus areas ‒ New sourcing marketsg‒ Continue operational improvements‒ Environmental permitting process

appealed

2013-11-219Boliden CMD 2013

Zinc Production – Q3

Kokkola – stable production Metal productionTotal feed, Zinc

Odda - only 3 Direct Leach-reactors

Maintenance stops in Q2‒ On plan

120

140

200

250

production, ktkt

‒ On plan

80

100

150

200

20

40

60

50

100

00Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2011 2012 2013

2013-11-2110Boliden CMD 2013

Zinc feed, total Zinc metal production

Odda

Current situation‒ Respacing of tankhouse no 5, closure

of tankhouse no 4‒ 17% cost reduction/ton zinc since 2010‒ Reduced production due to DL-reactor

‒ DL-reactor replaced begin 2014

2013-11-2111Boliden CMD 2013

Increased productivity in cell house

Respacing New transformerRespacing New transformer

2013-11-2112Boliden CMD 2013

P100 Odda improvement programme continues

Focus areas‒ Cost reductions‒ De-bottlenecking

2009 20134th 3rd

2013-11-2113Boliden CMD 2013

Kokkola

Current situation‒ Continued stable production‒ Managing calcine stock‒ High costs due to oxygen

Focus areas‒ Silver recovery‒ Quality of sulphuric acid

2013-11-2114Boliden CMD 2013

Silver recovery

Background‒ Increasing silver content in zinc

concentrates‒ High silver prices

Investment‒ Investment 27 MEUR‒ Production Q3 2014‒ Production of 25 t silverProduction of 25 t silver

‒ Silver concentrate, <10 000 g/ton, with small amounts of gold and lead

‒ Further refinement to silver elsewhere‒ High profitability

Enlarges zinc concentrate market for both zinc smelters

2013-11-2115Boliden CMD 2013

Silver recovery November 2013

2013-11-2116Boliden CMD 2013

Pricing model

Income streams - pricing of zinc t tconcentrate

‒ Metal value from recovery of silver*, gold and lead from zinc concentrate

Deductions - pricing of silver concentrate‒ Silver (5%), Gold (5%) and lead

(3units)‒ Treatment Charge and Silver & Gold

Refining Charges

• Minimum deduction zinc concentrates > 3 troy /DMT ( 93 /DMT) i 70%ounces/DMT (~93 gram/DMT) gives ~70%

payable silver. Source: Wood Mackenzie

2013-11-2117Boliden CMD 2013

Maintenance 2014

Maintenance stops‒ Maintenance stops in all units Q2 or Q3‒ Ni-line in Harjavalta

EBIT effect -220 MSEK‒ -140 MSEK in Q2‒ -80 MSEK in Q3

2013-11-2118Boliden CMD 2013

Disclaimer

This presentation has been prepared by Boliden for information purposes only. Nothing in this material shall be construed as an offer or solicitation to buy or sell any security or product, or to y y y p ,engage in or refrain from engaging in any transaction.

This presentation has been prepared as per the indicated date and Boliden does not undertake any obligation to correct or update the information or any statements made therein. Views that may have been expressed may be subject to change without notice.

Certain statements in this presentation are forward-looking and are based on plans, estimates, ti j ti d t ti d bj t t i k d t i ti I dditiassumptions, projections and expectations and are subject to risks and uncertainties. In addition

to the factors explicitly discussed, other circumstances may also have a material effect on the actual outcome. Such factors include, but are not limited to, general economic or political conditions, fluctuations in exchange or interest rates or metal prices, technological factors, interruptions in supply or production, actions of courts, regulators, governmental agencies, competitors, customers, suppliers, employees or other third parties.p , , pp , p y p

Nothing contained herein shall constitute any representation or warranty as to the accuracy or completeness and Boliden accepts no responsibility or liability as to the accuracy or completeness of the information contained herein. The material may include information from third party sources believed to be reliable. However, Boliden has not made an independent verification of the information provided.S b i l i iti thi t i l t b i d t itt d di l d 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.

Boliden does not accept any liability whatsoever for any direct, indirect, consequential or other loss arising from or in connection with any use of this information.

This material has not been reviewed, registered or approved by any authority under any applicable laws

2013-11-2119Boliden CMD 2013

applicable laws.

2013-11-2120Boliden CMD 2013