Boliden (BOL) CMD 2026 summary

Strategic investments and project updates

• SEK 4 billion investment in a new hoist and shaft at Garpenberg to sustain and potentially expand production to 4.5 million tons, with commissioning in 2032 and peak spending in 2029-2030, supporting a shift to electric hauling and enabling mining of new mineralizations.

• SEK 1.5 billion allocated for an industrial demonstration plant at Rönnskär to produce a patented cement replacement (SCMentum), ramping up in 2029, with a capacity of 280 ktonnes/year and less than 5% of the CO₂ emissions of traditional cement.

• Odda zinc expansion nearing commissioning, expected to add 150 Ktpa zinc capacity and EUR 150–250 million in annual EBITDA depending on market prices, with gradual ramp-up of precious metal recovery.

• Rönnskär tank house to be commissioned in Q4, scalable from 230,000 to 280,000 tons copper cathode, with annual EBITDA of SEK 1–1.5 billion at current prices.

• Tailings sand recycling project in the Boliden area extends Renström’s capacity to the late 2030s, improves reclamation, and leverages new technology, with a SEK 2.5 billion investment.

Financial guidance and capital allocation

• CapEx guidance for 2026 increased to SEK 15.5 billion, reflecting new projects; SEK 6.5 billion for mine-sustaining, SEK 4 billion for expansions, and SEK 5 billion for stay-in-business investments.

• Mine-sustaining CapEx expected to rise by SEK 0.5 billion in 2027 due to dam-raising methods; stay-in-business CapEx to increase, mainly in Aitik for water management and truck replacement.

• Expansions and strategic project CapEx to decrease in 2027 as major projects complete; full CapEx plan to be communicated in December 2026.

• Dividend policy remains unchanged, targeting one-third of net profits, with potential for extra dividends if net debt to equity falls below 20%.

• Balance sheet remains strong, with gearing at 27% at year-end and trending downward, below hurdle rate for extraordinary dividends.

Operational performance and growth outlook

• Garpenberg remains highly profitable, with resource base increased to 250 million tons and 50% of 2025 revenues from silver; new shaft investment ensures cost efficiency and redundancy.

• Exploration success in Aitik has raised average grades, supporting higher future volumes; Kevitsa stage five expansion paused due to low nickel prices, higher taxes, and regulatory challenges.

• Growth options portfolio strengthened, with Semblana extension in Portugal added and larger Garpenberg expansion decision targeted for 2030; ongoing work on Nautanen, Älgträsk, Tara Deep, and Laver projects.

• Q1 2026 saw temporary production stops at Garpenberg and Somincor, but no change to full-year guidance.

• No material change to mining methods or resource availability at Garpenberg following recent seismic events; operations expected to resume quickly if inspections confirm no major damage.