Boliden AB

Ladies and gentlemen, I'd like to welcome you to Boliden's Q3 2026 results presentation. My name is Olof Grenmark, and I'm head of investor relations. Today, we will have a presentation led by our president and CEO, Mikael Staffas, and our CFO, Håkan Gabrielsson. We will also have a Q&A session, which I will moderate, and we will start here in Stockholm. Mikael, welcome.

Thank you, Olof, and welcome to all of you here in Stockholm and everybody who's listening to this online. It is, of course, an especially pleasant day to come and visit you all. We have presented our quarter results, and it's the best quarter result ever, which always feels good to say. Of course, helped by the fact that we have very good prices and terms, but also from a very good production quarter in general. So let's jump into the material. MORE EASILY SAID THAN DONE. HERE IT GOES. SO THE HIGHLIGHTS, AS I ALREADY POINTED OUT, WE HAVE STRONG EARNINGS OF ABOUT 4.9 BILLION SWEDISH KRONE. WE HAVE A SOLID PERFORMANCE IN GENERAL ACROSS THE MINES. I'M PICKING HERE SPECIFICALLY SOMENKOR, WHICH IS DOING VERY WELL, AND ALSO KEVITSA, WHICH IS DOING WELL, AND THE RAMP-UP PLAN And Garpenberg is also going very much according to what we have said we're going to do, even though we are, of course, still much below where we were last year. We also have in our smelters, especially at Harjavalta, a very strong quarter. I would say almost exceptional availability of the equipment in Harjavalta. We also have a new record in Harjavalta in terms of nickel feed. THE ODA SMELTER IS MOVING ON IN A MUCH BETTER PACE THAN IT HAS IN PREVIOUS QUARTERS. WE HAVE COME UP TO AN AVAILABILITY IN THE QUARTER OF ABOUT 50%, WAY UP FROM THE 17% IN Q2. AND IN THE LAST MONTH OF THE OF THE QUARTER IN SEPTEMBER, WE HAD 70% AVAILABILITY, SO THE CURVE IS CLEARLY GOING IN THE RIGHT DIRECTION AS OF RIGHT NOW. AND THEN DURING THE QUARTER, AS YOU ALL KNOW, WE ALSO ANNOUNCED THAT WE ARE GOING TO GO AHEAD AND ACQUIRE FIRST OF ALL THE VOTERLAND TIM STAKE IN NEXA AND THEN AFTER THAT ALSO CONTINUE WITH A BROADER OFFER FOR THE MINORITY SHARES. Looking at the financial performance, you can see here very clearly a big uptake around these ones. We have the operating profit of 4.9 billion Swedish krona. There is a little bit of planned maintenance in this quarter as well, although much less than in Q2. We have a positive cash flow. Håkan will come back in a little while and talk a little bit more about the details. We have the net debt to equity. The gearing is now down to 21% again. And CapEx, that 3.4 billion Swedish krona, right exactly how we guided and what we also had planned for. THE KEY PROJECTS, I'LL START WITH THE TANK HOUSE BECAUSE AS WE HAVE ALWAYS SAID WE INTENDED TO START IT UP IN Q4 OF THIS YEAR AND EARLY TODAY WE ACTUALLY HAD POWER ON IN THE FIRST OF THREE SECTIONS IN THE TANK HOUSE AS I'M SPEAKING RIGHT NOW ALREADY PRODUCING ON THAT FIRST SECTION. THE OTHER TWO SECTIONS ARE INTENDED TO HAVE THE POWER ON LATER DURING THE QUARTER AND AS WE GO INTO Q1 WE SHOULD HAVE A FULL PACE OF PRODUCTION. AND THE SAND RECYCLING IS WORKING The Gartenberg project, those who read Swedish news will know that we had the official start of the project with the ceremony for the first excavation for the new shaft the other day. That one is on track as well, although it's very early days, but that looks good. And then the other expansion, the ramp-up is ongoing. The availability of the roaster is increasing, as I said before. We saw 50% on average for the full quarter, 70% in June. September, and this is clearly moving in the right direction. The mechanical issues that we had in the beginning linked not so much to the actual critical equipment, but linked to things like transport and other things have now been cleared out to a large extent. On the ESG side, we did not have the best of quarters in terms of lost time injuries. There's also been a fatality during the quarter, or actually right after the quarter in early October, a very unfortunate event. It's still a little bit unclear to us what really happened, also a little bit unclear whether it is a workplace-related fatality or whether it is a sickness fatality. It doesn't really matter. We've had a fatality. We're working around it, trying to figure out what really happened and how we can get better from that. The other long-term injuries also in the quarter was not brilliant. We had a higher level than what we had last year, and we continue to work with these issues relentlessly. The sick leave, however, is going towards the right direction. We now had 4.0% in the quarter. That's around the level of what we were before the pandemic. We have been on much higher levels, and you can say this is the first time we're back to pre-pandemic levels. And then the greenhouse gas emissions is going according to our plan. market development. I think that you all know that we have good prices and terms. And you can see here that when the Bulliden index, which is the red line here, has plateaued, but on a very high level compared to before. And just from 2021, we're at index 175, so 75% up for the mix of metals that we have. And also the currencies are helping, although a bit on less scale, but the currencies have also been helpful in this I also must point out the sulfuric acid prices, which are also helping quite a lot in this situation. The prices for copper and zinc, I'm not going to do any detailed market analysis, but you can both see here that compared to the cost levels in the industry, we have high price levels. Most everybody in the industry makes money. You can see that in the copper side, actually costs are going up, which could be an indication that the margins might get a little bit smaller going forward. This cost increase on the copper side has to do with diesel prices going up. It also has to do with the sulfuric acid prices going up, which for many copper mines is a cost. On the zinc side, also a good margin on this one and more of a flattish cost level development across the industry. If we then go to Booli, then look at our production. As I said earlier, we've had a good production. I think it has a mid-volume of 10.3 million tons, which is clearly better than last year. Also strong mine production when you add on the waste stock production, the stripping going on is very strong. The copper grade is in line with previous quarter, higher than last year, but it is lower than we had indicated in the guidance, and we will reduce guidance for the copper grade for the whole year in ITIC based on this, but we will increase the guidance for throughput for the year. Bulletin area, very stable operation, looks very good. The Garpemberg YES, IT IS NOT A GOOD THING THAT WE DON'T HAVE THE LAPPA AVAILABLE, BUT GIVEN THAT SITUATION, VERY GOOD PRODUCTION IN THE QUARTER PRODUCING ACCORDING TO THE PLAN THAT WE HAD INTERNALLY AND THAT WE HAVE GIVEN TO THE MARKET, SLIGHTLY BETTER GRADE THAN WE HAD GUIDED FOR. KVSA record volume, very good. I mean, it's a mixed gray, but it's still a relatively good level. Somincor, very strong, particularly copper. We're very positively surprised by Somincor coming into the family. Tara, a little bit lower than what we would like to, but still within reason. And Zinc Ruben has stable operations. So mixing those together, very good mine production. On the smelter side, let me take Hariavalta first, which is outstanding in terms of equipment availability.

It has had a very strong quarter in general, and it's a quarterly record in terms of feed on the nickel line. Coca-Cola, also very strong production. which is clear that it will also get better production around that and also lower silver production due to lack of availability of one of the silver furnaces that is now fixed and SOQ44 were full speed also on the silver line. And then ODA, as I said, caused somewhat of a difficulty on the old ODA roaster and the associated acid plant, which means that we have more plant maintenance going into the old roaster and the old acid plant. in Q4 and we're also therefore guiding for total effect from from maintenance stops for small