Boliden (BOL) Investor Update summary

Odda project update and expansion progress

• Odda expansion faces a delay, with commissioning of the roaster and acid plant now set for late Q1 2025, pushing ramp-up to 350,000 tons during 2025 and full capacity later in the year.

• The new tank house and foundry are nearly finished, with commissioning started and production expected to return to 200,000 tons in Q1 2025.

• Most infrastructure, including power and harbor/quay upgrades, is commissioned and operational, with new energy contracts in place.

• Delay and cost overrun are mainly due to supply chain and supplier-related issues, and integration challenges between new and old facilities.

• Capital expenditure for Odda increased by EUR 100 million, from EUR 950 million to EUR 1,050 million, primarily from extended project duration and additional equipment needs.

Financial guidance and CapEx outlook

• 2024 CapEx guidance is SEK 15.5 billion, with 2025 guidance at SEK 13.5 billion, reflecting the Odda overrun.

• Expansion and strategic projects will total SEK 4-4.5 billion in 2025, with mine sustaining CapEx at SEK 5.5 billion and replacement CapEx at SEK 3.5 billion.

• Over two years, total CapEx is now SEK 29 billion, up from previous SEK 28 billion estimates.

• Major projects include Odda, Aitik, Kristineberg, and new tankhouse investments in Rönnskär and Boliden Area.

• No major new projects (e.g., Kevitsa Stage 5, Garpenberg expansion) are included in current guidance.

Project returns and operational impact

• Annual incremental EBITDA from Odda is expected to be EUR 150 million, consistent under both long-term and current market assumptions.

• Operating cost reductions are expected from economies of scale, automation, digitalization, and a new hydropower agreement.

• Odda will produce 40,000 tons of new leach product annually, including significant lead, silver, and gold content.

• The IRR will be slightly lower due to higher CapEx and a quarter delay, but the business case and expected cash flow remain unchanged.

• Ramp-up in 2025 is expected to be relatively smooth, with no significant one-off costs, but working capital will increase with higher throughput.