Boliden’s Q2: robust production and strong cash flow

Boliden’s second quarter was characterised by high production levels and
favourable market conditions. Revenues totalled SEK 10,373 m (9,438), while the
operating profit, excluding revaluation of process inventory, was SEK 1,257 m
(374) and the free cash flow, SEK 1,557 m (920).
“Boliden posted strong profits thanks to favourable market conditions and robust
production levels, given the production disruptions at Aitik and planned
maintenance shutdowns at several smelters. The improvement in the operating
profit and a reduction in capital tied up also contributed towards a strong cash
flow,” says Boliden’s President & CEO, Lennart Evrell.

High production levels, a strong US dollar, and good cost control saw Boliden
Mines double its year on year operating profit. The increase in production at
Garpenberg continued as planned, and production levels at the recently-acquired
Kylylahti mine in Finland and in the Boliden Area were high. The previously
announced process disruptions at Aitik, by contrast, had a negative effect on
volumes.

Boliden Smelters’ operating profit excluding revaluation of process inventory
more than trebled, year on year. The improvement was primarily due to favourable
market conditions, but also to the fact that production levels were good, in
spite of the maintenance shutdowns. The growth in silver production at Kokkola
and the high zinc production at Odda also made positive contributions.

Independent nickel smelting operations began at Harjavalta at the end of the
second quarter. The operations buy in nickel concentrate from external suppliers
and the intermediate product, nickel matte, is sold to customers for processing.
The nickel operations were previously conducted on a tolling basis.

“Global demand for Boliden’s main metals, copper and zinc, continues to be high,
although growth levels in recent quarters have been weak. We are continuing to
build on Boliden’s strong position – mines and smelters with high production
levels of both base and precious metals. Take the Garpenberg mine, for example,
where we have just completed a comprehensive investment programme and now have
the highest productivity in the world; and the Odda smelter, which has
substantially improved its cost position thanks to earlier efficiency
enhancement programmes and the ongoing expansion project,” explains Lennart
Evrell.



For further information, please contact:
Marcela Sylvander, Group Communications, tel: +46 (0)733 244 551
Sophie Arnius, Investor Relations, tel: +46 (0)70 590 8072

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 4,900 employees and a turnover of SEK 37 billion.
Its share is listed on NASDAQ OMX Stockholm, segment Large Cap.

www.boliden.com (http://www.boliden.com)