Interim ReportJanuary – June 2010

Lennart EvrellPresident & CEO

Johan FantCFO

IR 2010-07-192

Second quarter 2010

The Market Concerns over China – price

volatility Improving demand Metal prices down – gold, silver up Tight concentrate market

Boliden Revenues MSEK 8,908 (6,439) EBIT ex PIR* MSEK 1,130 (477)

– Operating profit MSEK 1,123 (654)

Cash Flow MSEK 201 (-97) Aitik expansion – in production 10-year maintenance at Rönnskär Long term financing in place

*: PIR=Process Inventory Revaluation

Group EBIT Development

-500

0

500

1 000

1 500

2 000

Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210

MSEK

Quarterly EBIT

Quarterly EBIT excl PIR*

*Process Inventory Revaluation

IR 2010-07-193

The Market

Industrial production

Higher industrial activity -improved base metals demandHigh growth in all regions but

manufacturing below peak

IR 2010-07-195

-40.0

-30.0

-20.0

-10.0

0.0

10.0

20.0

30.0

40.0

Year over year %

Manufacturing IP growth (%)

Japan China-gross value USA EU

2006 2007 2008 2009 2010

Source: Reuters Datastream

Automotive

Sales and production increasing from low levelsGerman market softer –

scrapping incentive in 2009

IR 2010-07-196

-100

-50

0

50

100

150

200

Year over year %

Car productionMonthly data 3m moving average

2006 2007 2008 2009 2010

Source: Reuters Datastream

China

Germany

JapanUSA*

* Light vehicle assemblies

Construction

US and EU improving but still negativeChina slightly down from high

levels

IR 2010-07-197

-20

-10

0

10

20

30

40

Year over year %

Construction market indicators

China-fixed assets investments, residential buildings (CMLV)EU-16 construction industrial productionUSA-Total construction spending value (USD)

2006 2007 2008 2009 2010

Source: Reuters Datastream

IR 2010-07-19888

Price 12% down vs Q1 and closed at USD 1 760 -23% vs Q1 average Inventory continued to increase, +95,000 tonnes in Q2

Zinc price (LME average)

USD/tQ2-10 vs period

Q2 09 1,476 + 37%

Q3 09 1,757 + 15%

Q4 09 2,211 - 9%

Q1 10 2,288 - 12%

Q2 10 2,018 -

Zinc – Prices and Inventory

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

5 000

0

100 000

200 000

300 000

400 000

500 000

600 000

700 000

800 000

900 000

1 000 000

2003 2004 2005 2006 2007 2008 2009 2010

USD/tTonnes

Shanghai inventory LME Inventory Cash Price LME Quarterly average

IR 2010-07-199

Zinc

Metal price down – realized TC down Continued pressure on spot TC Spot premiums slightly higher – metals demand increasing

0

50

100

150

200

250

300

350

400USD/t metal

Zinc metal price premium

Europe ex-works US Midwest Delivered Far East (Western)

Source: CRU

2005 2006 2007 2008 2009 20100

100

200

300

400

500

600

USD/t concentrate

Zinc treatment charge (TC)

Realised TC (including price participation) Spot TC - Asia

Source: CRU

2006 2007 2008 2009 2010

IR 2010-07-19101010

Copper price (LME average)

USD/tQ2-10 vs period

Q2 09 4,676 + 50%

Q3 09 5,840 + 20%

Q4 09 6,643 + 6%

Q1 10 7,243 - 3%

Q2 10 7,013 -

Price 3% down vs Q1, closing price down 10% vs Q1 average Global inventories down by 92,000 tonnes in Q2 Copper hedges in 2010 at 7,627 USD per tonne and USD/SEK at 8.15

Copper – Prices and Inventory

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

10 000

0

200 000

400 000

600 000

800 000

1 000 000

1 200 000

1 400 000

2003 2004 2005 2006 2007 2008 2009 2010

USD/tTonnes

COMEX Inventory Shanghai inventory LME Inventory LME Cash Price Quarterly average

IR 2010-07-1911

Copper

Concentrate shortage – spot TC/RC around zero Spot premium continued up – metals demand increasing

0

20

40

60

80

100

120

140

160

USD/t concentrate

Copper treatment charge

Standard grade TC Cif spot mine/trader USD/t TC benchmark

Source: CRU

2006 2007 2008 2009 20100

20

40

60

80

100

120

140

160

180

USD/t metalCopper metal price premium

Spot Copper premium CIF W. Europe Benchmark CIF Europe

Source: CRU

2005 2006 2007 2008 2009 2010

IR 2010-07-1912

Lead, silver and gold - Prices

Prices – Q1 2010 vs periodQ2-09 Q1-10

Lead + 29% - 12%Silver + 33% + 8%Gold + 30% + 8%

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

0

20 000

40 000

60 000

80 000

100 000

120 000

140 000

160 000

180 000

200 000

2003 2004 2005 2006 2007 2008 2009 2010

USD/tTonnes

LME Inventory LME Cash Price Quarterly average

0

5

10

15

20

25

2003 2004 2005 2006 2007 2008 2009 2010

USD/oz

0100200300400500600700800900

1 0001 1001 2001 3001 400

2003 2004 2005 2006 2007 2008 2009 2010

USD/oz Gold

SilverLead

Business Area Mines

Mines - Production

Start-up in Aitik drives volume increase Metal content, 20,5 ktonnes copper

Milled ore slightly higher Lower grades in Tara and

Garpenberg reduce metal production

0

4 000

8 000

12 000

16 000

20 000

24 000

0

2 000

4 000

6 000

8 000

Q3 07

Q4 07

Q1 08

Q2 08

Q3 08

Q4 09

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Metal content, tonnes

Milled ore, ktonnes

Copper

Milled ore (Aitik) Metal content

0

20 000

40 000

60 000

80 000

100 000

0

300

600

900

1 200

1 500

Q3 07

Q4 07

Q1 08

Q2 08

Q3 08

Q4 09

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Metal content, tonnes

Milled ore, ktonnes Zinc

Milled ore Zinc metal content

IR 2010-07-1914

Mines - Financial Summary

2010-07-1915IR

0

200

400

600

800

1 000

1 200 MSEKQuarterly EBIT EBIT 1,034 (486) MSEK

– 800 MSEK in Q1 2010

Higher copper volumes Higher gold and silver

volumes Lower prices High costs in Aitik

IR 2010-07-1916

AITIK copper mine expansion

Status On time

– Mill section 1 and 2 in production

On capex Commissioning phase continues

– Both old and new mill in production– Low uptime in crushers– High costs

Inauguration 31 August

Fundamentals Double ore production

– High productivity– Profitable mining of lower grades– Average reserve grade 0,25%– Cu annual production approx +50%– Life of mine - 2029

Lower grades– Current production plan has lower than

average grades 2011-17

Capex– Just over 6 bSEK

Time– In production 1 July 2010– Full production – 36 mtonnes ore - 2014

Business Area Smelters

Smelters - Production

Increase despite maintenance stop at Rönnskär Rönnskär, -5% Harjavalta, +28%

Continued high production Kokkola, -1% Odda, +3%

0

20 000

40 000

60 000

80 000

100 000

0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

Q3 07

Q4 07

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Cathode production,

tonnes

Total feed, tonnes Copper

Copper feed, total Copper cathode production

0

20 000

40 000

60 000

80 000

100 000

120 000

140 000

0

50 000

100 000

150 000

200 000

250 000

Q3 07

Q4 07

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Metal production,

tonnes

Total feed, tonnes

Zinc

Zinc feed, total Zinc metal production

IR 2010-07-1918

Smelters – Financial Summary

2010-07-1919IR

-500

-300

-100

100

300

500

700

900 MSEK Quarterly EBIT

Quarterly EBIT excl PIR*

EBIT excl. PIR* 110 MSEK (28)– 256 MSEK in Q1 2010

Maintenance stop Rönnskär– 10 year stop, relining of flash

furnace– 5 weeks, record time– 130 MSEK

Good results from Finnish units

* Process Inventory Revaluation

E-scrap expansion in brief

Investment rationale Tight Cu concentrate market

continues Big increase in e-scrap supply

– Volume of electronic products increasing– Shorter product life cycles

Proprietary technology Leading position within e-scrap

recycling

Fundamentals E-scrap recycling capacity from

45,000 to 120,000 tonnes per year Investment of approx. SEK 1.3 billion Expected start up end of 2011/

beginning of 2012 Increases metal production

– Gold +2 tonnes– Silver +32 tonnes– Copper +14,500 tonnes

Synergies with existing production – Pay back less than 4 years

IR 2010-07-1920

Financials

Financial Summary

IR 2010-07-1922

MSEK Q2 2010 Q2 2009 YTD 10 YTD 09

Revenues 8 908 6 439 17 224 12 318

Operating profit (EBIT) 1 123 654 2 353 1 442

EBIT margin 13% 10% 14% 12%

EBIT excl Process Inventory Revaluation 1 130 477 2 172 746

Free cash flow 201 -97 149 -1 908

Capex 806 1 546 1 405 2 565

Earnings per share, SEK 2.76 1.58 5.97 3.64

Gearing 46% 55%

MSEK Q2 2010 Q2 2009 Q1 2010EBIT 1 123 654 1 230Process Inventory Revaluation -7 177 187EBIT excl Process Inventory Revaluation 1 130 477 1 043Deviation 653 87

Q2 2010 vs. Q2 2009

Q2 2010 vs. Q1 2010

Volume 318 511Costs -503 -311Prices & Terms 786 -311

Metal prices and terms 756 -267

Realised Metal- & Currency hedge* 66 -37

TC/RC terms -6 -27

Premiums -10 2

Definitive pricing (MAMA)* -20 18

Currency effects 53 193w hereof translation effects -27 -27

Others -1 5

*Actuals for each period Q2 2010 Q2 2009 Q1 2010Realised Metal- & Currency hedge 159 93 196Definitive pricing (MAMA) 4 24 -14

Specification of deviation

Group EBIT Q2 2010versus Q2 2009 and Q1 2010

•Zinc USD/t -12%•Copper USD/t -3%

Higher volumes from Aitik

Lower realised TC for Zinc

USD/SEK: +5%EUR/SEK: -1%

Of which more than 50% is Aitik expansion

IR 2010-07-1923

Capital Structure

1. Shareholders’ equity includes the value of outstanding hedge contracts

2. Defined as unutilised credit lines and cash less outstanding commercial papers

55%

48%46%

43%46%

0%

10%

20%

30%

40%

50%

60%

Q209 Q309 Q409 Q110 Q210

Gearing

IR 2010-07-1924

SEK bnUnless otherwise stated

30 Jun2010

30 Jun 2009

Total Asset 34.8 32.2

Capital employed 27.5 26.4

Shareholders' equity1 16.7 15.7

Net debt 7.7 8.5

Gearing % 46 55

Equity/asset ratio, % 48 49

Duration of committed credit facilities, years 4.3 3.5

Average interest rate, % 2.45 1.97

Interest duration, years 1.7 2.2

Net payment capacity 9.6 6.0

EBIT per Business Area

MSEK Q2 10 Q2 09 YTD 10 YTD 09Mines

Sales 2 456 1 612 4 337 3 069EBIT 1 034 486 1 834 891Capex 521 1 422 1 049 2 380

SmeltersSales 8 254 6 352 16 072 12 041EBIT ex PIR* 110 28 366 -6Capex 285 109 355 185

GroupSales 8 908 6 439 17 224 12 318EBIT ex PIR* 1 130 477 2 172 746Capex 806 1 546 1 405 2 565

IR 2010-07-1925

*Process Inventory Revaluation

Operating costs

IR 2010-07-1926

Volumes drive costs – Aitik and smelters on higher production Parallel operation of old and new mill in Aitik Maintenance stops

Change in operating costs, local currencies

YTD 2010 vs 2009

Energy +14%Consumables +10%Personnel +11%Transport -14%External services +19%Depreciation & other +27%

Total operating costin local currency

+13%

Total operating costin SEK

+8%

Energy; 17%

Consumab-les; 17%

Personnel; 29%

Transport; 5%

External services;

18%

Depreciation & other;

14%

Share of total operating costs

Cash Flow

MSEK Q2 10 Q2 09 YTD 10 YTD 09Op profit before depreciation (EBITDA)* 1 589 1 056 3 221 2 225

Changes in working capital* -502 371 -1 776 -1 374

Capital expenditure -806 -1 546 -1 405 -2 565w hereof Aitik 36 -241 -1 105 -500 -1 753

Free cash flow 201 -97 149 -1 908*Includes Process Inventory Revaluation

IR 2010-07-1927

Increased inventories• Very low at year end 2009• Currently somewhat over target levels

• Focus on securing feed for smelters• Strong growth in Aitik and maintenance stop in Rönnskär• Large shipments at end-of-month

Sensitivity Analysis

Estimate of the 12-month effect on Group EBIT on 30 June 2010, based on planned production volumes. Effects of hedging, contracted TC/RC or stock exposures are not taken into account

Changein metalprices,+10%

EBITeffect, SEK m

Change inUSD, +10%

EBITeffect, SEK m

Change inTC/RC,+10%

EBITeffect,SEK m

Copper 470 USD/SEK 970 TC Zn 55

Zinc 565 EUR/USD 380 TC/RC Cu 55

Lead 100 USD/NOK 90 TC Pb -15

Gold 140

Silver 110

IR 2010-07-1928

IR 2010-07-1929

Summary

China concerns and price volatilityUnderlying demand improvingAitik expansion

– On time– On capex– Not yet stable, actions crushers– Full capacity in 2014

10-year maintenance stop RönnskärRefinancing of debt portfolio

IR 2010-07-1930

Forward-looking statements

Certain statements in this presentation are forward-looking, and the actual outcome could be materially different. Such forward-looking statements are based on Boliden’s present plans, estimates, assumptions, projections and expectations and are subject to risks and uncertainties. In addition to the factors explicitly discussed, other could have a material effect on the actual outcome. Such factors include, but are not limited to, general economic or political conditions, fluctuations in exchange rates, interest rates and in metal prices, production disruptions, technological issues, interruptions in supply, actions of courts, regulators, government agencies, competitors, customers, suppliers, employees and other third parties.

IR 31 2010-07-19

Boliden produces metals that make modern life work