BOLIDEN AB UNSP/ADR - BDNNY STOCK NEWS

Boliden has entered into a definitive agreement to acquire Neves-Corvo mine in Portugal and Zinkgruvan mine in Sweden from Lundin Mining for USD 1,300 million, plus potential contingent payments up to USD 150 million. The transaction will significantly boost Boliden's mine production, increasing zinc concentrate production by 95% and copper by 43% based on 2023 figures.

The acquisition will be financed through a bridge loan, with approximately half to be refinanced through a share issue in the first half of 2025. The EBITDA contribution from both mines is estimated at USD 300-350 million annually over the next five years. The transaction is expected to close by mid-2025, subject to regulatory approvals.

Boliden reported strong Q3 2024 results, with high production and improved financial performance. Revenues increased to SEK 22,193 million from SEK 19,396 million in the previous year. Operating profit rose to SEK 3,165 million from SEK 1,912 million, while operating profit excluding process inventory revaluation reached SEK 2,999 million, up from SEK 1,940 million. Free cash flow improved to SEK -495 million from SEK -1,200 million.

Key highlights include improved prices and terms, enhanced production in both Mines and Smelters, and a record milled volume in Garpenberg. Several expansion projects are nearing completion, including those in the Boliden Area, Odda, and Aitik. The company is also progressing with the construction of a new tankhouse in Rönnskär and paste and dewatering facilities in the Boliden Area. Additionally, preparations are underway to restart mine production in Tara.

Boliden, a mining and smelting company, has announced the upcoming release of its Q3 2024 Interim Report on Tuesday, October 22, 2024, at 07:45 (CEST). Following the report's release, a press and analyst conference will be held at 09:30 (CEST) on the same day. The event will feature presentations by Mikael Staffas, Boliden's President and CEO, and Håkan Gabrielsson, the company's CFO.

The conference will take place at Klara, Room Dagerman in Stockholm and will also be accessible via webcast and telephone. Interested parties can join the webcast through a provided link or register for the telephone conference. After the event, presentation materials and a recording of the webcast will be available on Boliden's website.

Boliden and Komatsu have deepened their collaboration on fossil-free mining, presenting a world premiere of a mining truck that can be converted to battery technology. This development follows their previous work on electrification and automation of mining trucks in Boliden's Aitik open pit copper mine. The new truck, called the Power Agnostic 930E, will be introduced in Aitik as the first operation globally to test it in a production environment.

The collaboration aims to further develop technology and implementation possibilities for fossil-free mining operations. This initiative builds on Boliden's existing efforts in Aitik, which include electrified trolley systems to reduce diesel consumption and the conversion of 17 mining trucks to self-driving in an autonomous haulage system (AHS).

Boliden's expansion project at the Odda zinc smelter, aimed at increasing annual production from 200 to 350 ktonnes, faces delays primarily in the roasting facility. The ramp-up towards the new production level will now start at the end of Q1 2025, instead of Q4 2024. This delay results in a EUR 100 million cost increase for the project. Despite this setback, Boliden's total capital expenditures for 2024 remain at SEK 15.5 billion, with 2025 expenditures estimated at SEK 13.5 billion.

The investment is still expected to generate EUR 150 million in annual EBITDA. Odda's production capacity will return to 200 ktonnes from Q1 2025, with full production of 350 ktonnes to be achieved progressively during 2025.

Boliden's Q2 2024 results show significant improvement, with revenues rising to SEK 22,748 m from SEK 18,442 m in the previous year. The operating profit surged to SEK 4,814 m, largely due to SEK 2,400 m in insurance income related to the Rönnskär fire. Excluding process inventory revaluation, operating profit was SEK 4,000 m. Earnings per share increased to SEK 13.20 from SEK 1.90. The company saw improved metal prices but lower treatment charges and premiums. Notable events include the decision to reopen Tara mine, incurring a restructuring cost of SEK -358 m, and the start of production at Aitik's satellite pit, Liikavaara. Garpenberg achieved record milled volume, while overall milled volumes decreased, primarily due to Tara's care and maintenance status.

Boliden will release its Q2 2024 Interim Report on July 19 at 07:45 CEST. The report will be presented in a press and analyst conference later the same day at 09:30, hosted by President and CEO Mikael Staffas and CFO Håkan Gabrielsson. The event will be accessible via webcast and telephone. Participants are required to register in advance to receive the access details. The recorded webcast and presentation materials will be made available on Boliden’s website post-conference.

Boliden has published its 2023 report on payments to government agencies in accordance with Swedish Law (2015:812). The report includes payments made to government agencies in Sweden, Finland, and Ireland related to Boliden's extractive industry operations. The release was made public as required by the Securities Markets Act, with information submitted at 11.00 CEST on June 20, 2024. For more details, contact Klas Nilsson, Director of Group Communications.

An agreement has been reached to reopen the Tara mine in a more financially sustainable manner after being put in care and maintenance in July 2023. The agreement includes an optimized mining plan, organizational redesign, and reduction in employees to improve productivity and reduce costs. Despite one-off restructuring costs negatively impacting the second quarter of 2024, the mine is expected to resume full production by January 2025.