Boliden’s Q2: High production and strong cash flow

| Source: Boliden AB
Boliden’s revenues increased to SEK 9,438 million (SEK 8,035 m) during the
quarter, and the operating profit, excluding the revaluation of process
inventory, totalled SEK 374 million (SEK 370 m). The quarter was characterised
by stable production, higher metal prices and a strong cash flow.
“The last quarter was a good one for Boliden, with record production levels at
Aitik and production further boosted by Garpenberg’s new facility. Production by
Business Area Smelters was stable, given the maintenance shutdowns during the
quarter, and the action plan at Rönnskär is continuing to yield good results.
The high production levels did, however, generate increased costs, and rising
metal prices resulted in internal profits that have not, as yet, been realised
within the consolidated profit,” says Boliden’s President & CEO, Lennart Evrell.

The positive production trend at the Aitik mine continued during the quarter,
with a milled tonnage volume of just over 10 million tonnes – the highest ever
for a single quarter. Boliden Mines’ results were boosted by the Garpenberg
mine’s volumes, but impacted by increased depreciation. Production by Boliden
Smelters was stable and the maintenance shutdowns went better than planned. The
shutdowns did result in a fall in smelter production and higher costs in
comparison with the previous quarter, but this was compensated for by
improvements in prices, TC/RC and exchange rates.

Strong growth in China and a continued recovery in the mature economies have
contributed to a year on year growth in demand for Boliden’s main metals, copper
and zinc, of just over 4 per cent. By the end of the quarter, the price of zinc
had reached its highest level since August 2011.

“The market’s mood has gradually improved. Expectations of a copper surplus have
declined while the anticipated shortage of zinc concentrate is becoming
increasingly likely. The weaker Swedish krona is also having a positive effect
on Boliden’s figures in that our sales are all made in US dollars, while the
majority of our costs are in SEK,” explains Lennart Evrell.

On 8thJuly, Boliden entered into an agreement with Altona Mining to buy the
Kylylahti copper mine, together with exploration rights and deposits in eastern
Finland. The consideration amounts to USD 95 million.

“We see several synergies in mining, metallurgy and exploration. The acquisition
will also establish Boliden as a mining company in Finland, where we are already
a significant smelting company. We are now awaiting the approval of the Finnish
Competition and Consumer Authority and the Altona Mining Limited shareholders,”
concludes Lennart Evrell, President & CEO of Boliden.

For further information, please contact:

Marcela Sylvander, Group Communications, tel: +46 (0)733 2445512
Sophie Arnius, Investor Relations, tel: +46 (0)70 590 80 72

Boliden is a metals company with a commitment to sustainable development. Our
roots are Nordic, but our business is global. The company’s core competence is
within the fields of exploration, mining, smelting and metals recycling. Boliden
has a total of approximately 4,800 employees and an annual turnover of
approximately SEK 34 billion. Its share is listed on NASDAQ OMX Stockholm,
segment Large Cap.