Boliden (BOL) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition of Neves-Corvo (Portugal) and Zinkgruvan (Sweden) mines strengthens base metals portfolio, leveraging mining expertise and equipment familiarity, and aligns with strategy to optimize feed mix for smelters.

• Enhances concentrate production, increasing zinc supply from 35% to 70% and copper from 30% to 40% of smelter capacity, supporting feed mix optimization.

• Both mines are in stable, familiar jurisdictions with strong community relations, necessary permits, and close to GISTM compliance.

• Assets are cash generative from day one, with limited immediate investment needs and development potential.

• Expands high-quality, long-life mining portfolio with proven exploration track record and future development opportunities.

Financial terms and conditions

• Upfront cash consideration of USD 1.3 billion, payable at closing on a cash- and debt-free basis.

• Contingent payments up to USD 150 million based on profit-sharing, linked to commodity prices and production thresholds over the next 2–3 years.

• Bridge loan in place for upfront payment, to be refinanced with about half medium/long-term debt and half share issue.

• Share issue expected in H1 2025, subject to general meeting approval and market conditions, with stand-by underwriting agreement.

• Net debt/equity ratio projected to rise to 30% post-deal, reverting to target within three years; dividend policy unchanged.

Synergies and expected cost savings

• Combined EBITDA from acquired mines estimated at USD 300–350 million annually over the next five years, assuming consensus prices.

• Immediate accretion to earnings per share and >10% contribution to cash EPS from completion.

• Expected synergies from overhead cost sharing, value chain optimization, and operational improvements, though most concentrate flows are already contracted.