Boliden (BOL) Q4 2024 earnings summary

Executive summary

• Reported strong Q4 2024 with SEK 3.8 billion profit, including SEK 935 million insurance income, and robust free cash flow over SEK 4.2 billion.

• Completed major projects such as the SEK 5 billion Aitik dam on time and budget, advanced Odda expansion, and ramped up Tara mine.

• Announced acquisition of Neves-Corvo and Zinkgruvan mines for USD 1.3 billion upfront plus up to USD 150 million contingent, to be funded by bridge loan, share issue, and canceled dividend.

• Board proposes to cancel the 2024 dividend to support acquisition financing, reducing the size of the planned share issue.

• Strong operational and financial performance across mining and smelting segments, with robust cash flow generation.

Financial highlights

• Q4 2024 revenues were SEK 25,785 million, up from SEK 20,754 million year-over-year; full-year revenues reached SEK 89,207 million.

• Q4 EBITDA was SEK 3.8 billion, operating profit excluding inventory revaluation was SEK 3,814 million, and free cash flow reached SEK 4,264 million.

• Earnings per share for Q4 were SEK 10.95; full-year EPS was SEK 36.65.

• Full-year profit improved to SEK 12 billion, driven by higher prices and volumes; total insurance income for 2024 was SEK 3,335 million.

• CapEx for Q4 was SEK 4.5 billion, with full-year CapEx at SEK 15 billion; 2025 guidance is SEK 14 billion.

Outlook and guidance

• 2025 CapEx guidance is SEK 14 billion, with combined 2024-2025 spend unchanged.

• Planned maintenance shutdowns in smelters in 2025 expected to impact operating profit by SEK -500 million.

• Strikes in Finland in early 2025 have caused over SEK 100 million in negative impact; new labor agreement pending.

• No changes to production grade guidance for 2025.

• Acquisition of Neves-Corvo and Zinkgruvan expected to close mid-2025, subject to regulatory approvals.