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Investing for growthStefan Romedahl, President Boliden Mines
2019-03-132Boliden CMD 2019
Key highlights since CMD 2017
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50
100
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350
2014 2015 2016 2017 2018
Ktonnes
Copper Zinc
0
5
10
15
20
25
30
Aitik Boliden Area Garpenberg Kylylahti Tara Kevitsa
years
2008 2018
Production of metal in concentrate
Long mine life for largest and most profitable mines
New surface crusher in Aitik
Increased cobalt production in 2018
Exploration drifts in Tara and Rävliden
‒ Tara Deep Resource estimate upgraded to 18 Mtonnes (13)
0
10 000
20 000
30 000
40 000
50 000
60 000
1602 1605 1608 1611 1702 1705 1708 1711 1802 1805 1808 1811
Ktonnes
Milled production
Stable output in from all mines, R12
Diversified portfolio and revenues
2019-03-13
By Commodity
By Mine
Mines 2018 Revenues: 18,404 MSEKMines 2018 EBIT: 6,451 MSEK
Zinc(1)
(ktonnes)
Gold(1)
(koz)
Copper(1)
(ktonnes)
2018 Mine Revenue breakdown Copper and gold among key commodities
(1) Refers to production of metal in concentrate
Boliden CMD 2019 3
33%
20%15%
16%
13%4% Aitik
GarpenbergTaraKevitsaBoliden areaKylylahti
37%
29%
12%
8%5%
5%4% CopperZincGoldSilverLeadNickelOther
78 85103
143 140
2014 2015 2016 2017 2018
294 299329
305 290
2014 2015 2016 2017 2018
141 158185
233 247
2014 2015 2016 2017 2018
0
50
100
150
200
0% 20% 40% 60% 80% 100%
2018 cost curve 2008 cost curve
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100
200
300
400
500
0% 20% 40% 60% 80% 100%
2018 cost curve 2008 cost curve
Successfully enhanced productivity and cost position in open pit and underground mines
2019-03-134
Copper Cost Curve(2)Copper – Open Pit Mines(1)
Zinc Cost Curve(2)
Source: Wood Mackenzie(1) Open pit and mines with both open pit / underground operations, (2) C1 Cash Cost (US¢/lb) composite costing
Zinc – Underground Mines
Boliden CMD 2019
We transformed Aitik into the world’s most productive open pit copper mine
We transformed Garpenberg into the world’s most efficient underground mine
TaraGarpenberg
AitikKevitsa
Aitik
0,05,0
10,015,020,025,030,035,0
0 20 40 60 80 100 120 140
Tonn
es m
illed
per
man
hour
Million tonnes ore milled per year
Kevitsa
Garpenberg
Tara
Boliden Area
0,00,51,01,52,02,53,03,54,0
0 5 10 15Tonn
es m
illed
per m
anho
ur
Million tonnes ore milled per year
Improved productivity
0
10
20
30
40
50
60
Min
e Act
ivitie
s
24 hours
Boliden Group 5
Increase through autonomous machines Increase through production control Current mining activities
Boliden CMD 2019 2019-03-135
A successful cocktail of electrification…
…and automation
Electrification, ventilation on demand
5G underground positioning system, driverless vehicles
Mining Operating Control, tablets controlling all digital systems
In-house technical department
Mine design and technical know-how – critical for future competitiveness
Example: Mine activities in underground mine
Exploration and Mineral Resources & Mineral Reserves
2019-03-13
Exploration cost 520 MSEK (2018)‒ Drifts in Tara and Boliden Area‒ Increased exploration budget 2019 +10%
Long life-of-mine in Aitik, Kevitsa and Garpenberg‒ Limited new additions‒ Aitik remaining life-of-mine reserve grade 0.22%
(0.23)
Increased inferred mineral resources in Tara Deep‒ Increase from 13.0 to 18.2 Mtonnes‒ Surface drilling
Short life-of-mine in Kylylahti in existing ore body
Tara Deep – geological map
6Boliden CMD 2019
8
SE Zone
NW Zone
Conglomerate Hosted Zone
Tara Deep Access
Return Air Raise
Aitik – status updatePlus 45 Mtonnes throughput 2020 New surface crusher Automation
‒ Production drilling New satellite pits 26 years reserve life
26 years reserve life
Minus Mining 2018 at higher grades than mineral
reserve average (Cu reserve grade: 0.22%) Diesel - tax?
0
500
1 000
1 500
2 000
2 500
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Proven/Probable Reserve Measured/Indicated ResourceInferred Resource Production*10
Aitik reserve & resources vs. production
Mtonnes
Next key step Electrification Increased automation Planning, new industrial area
2019-03-13Boliden CMD 2019 7
Garpenberg – status updatePlus 3.0 Mtonnes throughput 2020 Automation
‒ Drill rigs, trucks 25 years reserve life
Minus Mining 2018 at higher grades than mineral
reserve average (Zn reserve grade: 3.1%)
Boliden CMD 2019
0102030405060708090
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Proven/Probable Reserve Measured/Indicated ResourceInferred Resource Production*10
Garpenberg reserve & resources vs. production
Mtonnes
Next key step Increased automation
2019-03-138
Kevitsa – status updatePlus 9.5 Mtonnes milled volume pace in 2020 Automation Increased in-house production
‒ Larger and more suitable machines 13 years reserve life
Minus 2019 – year of transformation
‒ Mining below reserve average‒ High capex
020406080
100120140160180
2016 2017 2018Proven/Probable Reserve Measured/Indicated ResourceInferred Resource Production*10
Kevitsa reserve & resources vs. productionMtonnes
Next key step Electrification Increased automation
2019-03-13Boliden CMD 2019 9
Tara – status updatePlus New tailings facility Automation
‒ Drill rigs, trucks and chute Increase in inferred mineral resources
‒ Drilling from Tara Deep´s exploration drift expected to start in 2020
Minus Decreasing stope size 7 years reserve life
Boliden CMD 2019
0
5 000
10 000
15 000
20 000
25 000
30 000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Proven/Probable Reserve Measured/Indicated ResourceInferred Resource Production*10
Ktonnes
Tara reserve & resources vs. production Next key step Tara Deep Increased automation
2019-03-1310
Boliden Area – status updatePlus Rävliden project in Kristineberg Highly flexible mill Increased tailing capacity
Minus Maurliden depleting ~80% utilization of mill 7 years reserve life
0
5 000
10 000
15 000
20 000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Proven/Probable Reserve Measured/Indicated ResourceInferred Resource Production*10
Ktonnes
Boliden Area reserve & resources vs. production Next key steps Rävliden Renström expansion Increased automation
2019-03-13Boliden CMD 2019 11
Kylylahti – status update
Plus Extended operation to 2020 Cobalt production Test of cobalt from tailings in good
progress Exploration potential in Outokumpu field
Minus Disappointing exploration results
near mine <2 years reserve life
Boliden CMD 2019
01 0002 0003 0004 0005 0006 0007 0008 0009 000
2012 2013 2014 2015 2016 2017 2018Proven/Probable Reserve Measured/Indicated ResourceInferred Resource Production*10
Ktonnes
Kylylahti reserve & resources vs. production Next possible key step Extraction of cobalt from tailings
2019-03-1312
Investing for growth
2019-03-1313
2010
2012
2013
2014
2016
2020
2020
2020
Completed expansions On-going Expansion
Aitik (36Mtpa) Capex: ~SEK6.2bn
Boliden Area(1)
Capex: ~SEK1.0bn
Garpenberg (2.5Mtpa) Capex: ~SEK3.9bn
Kylylahti acquisitionCapex: ~SEK0.5bn
Kevitsa acquisitionCapex: ~SEK6.0bn
Aitik (45Mtpa)Capex: ~SEK1.0bn
Kevitsa (9.5Mtpa)Capex: ~ SEK0.8bn
Garpenberg (3.0Mtpa)Capex limited
Boliden CMD 2019
1) Kankberg mine; Gold/Tellurium expansion
Key success factors growth:
1. Exploration2. Economies of scale3. Acquisitions
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