Kvartalsrapport Q1 2023

===== SIDA 1 =====

• Operating profit excluding revaluation of  
process inventory totaled SEK 3,020 m (4,466). 
• Free cash flow decreased to SEK -46 m (674), mainly 
due to higher investments. 
• Negative effect from cost inflation which is now 
tapering off.  
 • The major investment projects in Odda, Aitik and the 
extension of the Kristineberg mine are 
proceeding according to plan. 
• Lower grades and production disruptions in Mines. 
• Improved terms and stable production in Smelters.

===== SIDA 2 =====

Revenues decreased to SEK 19,962 m (21,812).  
 
 
Compared to the first quarter of 2022, operating profit excluding revaluation of process inventory  
decreased to SEK 3,020 m (4,466). Lower metal prices, lower volumes and higher costs for mainly energy 
and consumables had a negative effect which was partially offset by a stronger USD. Volumes were  
affected negatively by lower grades in Mines. The first quarter of 2022 included an impact on earnings of 
SEK -50 m as a consequence of the earlier slag explosion in Harjavalta. 
Operating profit excluding revaluation of process inventory was SEK 170 m lower than the previous 
quarter mainly as a result of lower volumes in both Business Areas. Higher metal prices had a positive 
effect despite the negative impact of definitive pricing from earlier deliveries. Lower energy prices  
contributed to a reduction in costs. Electricity sales contributed only marginally in contrast to the SEK 56 
m in the previous quarter. The fourth quarter 2022 included an impairment of exploration rights to the 
amount of SEK -259 m and a SEK -60 m negative impact on earnings due to maintenance shutdowns in 
Smelters.  
Profit after financial items totaled SEK 3,201 m (4,991). Net profit was SEK 2,541 m (3,968) and  
earnings per share was SEK 9.29 (14.51). Return on capital employed and return on equity for the past 12 
months were 23.1% and 19.6% respectively.

===== SIDA 3 =====

Investments totaled SEK 2.9 billion (1.5). For 2023, total investments are estimated at just under SEK 15 
billion, which is in line with the estimate previously announced. One half of this year’s investments 
consists of expansion investments in Odda and Kristineberg, and the investment in a new dam 
construction in Aitik. However, general cost inflation has led to an estimated increase in the Kristineberg 
expansion investment of around SEK 0.2 billion more than the SEK 1.25 billion previously announced. 
 
Free cash flow decreased to SEK -46 m (674), due to higher investments and lower profit. 
 
Net financial items totaled SEK -204 m (-46). Average interest on loans was 3.4% (1.5). 
Net financial items in the fourth quarter of 2022 included a positive currency effect of SEK 72 m. 
Net debt at the end of the quarter was SEK 68 m (-1,512) and the net debt/equity ratio was 0% (-3). In 
addition, net reclamation liability was SEK 2,999 m (2,538).  
The average term of approved loan facilities was 3.4 years (2.6). The fixed-interest term on utilized loans 
was 1.4 years (2.1). At the end of the quarter, net payment capacity in the form of cash and cash  
equivalents and unutilized binding credit facilities with a term of more than one year, totaled  
SEK 26,345 m (17,702). 
 
Two new bilateral revolving loan facilities were signed during the quarter. The loans are for EUR 130 m 
and SEK 2 billion and both loans were untilized by the end of the quarter.  
During the quarter, the maturity of Boliden’s syndicated revolving loan facilities in the amount of EUR 
850 m were extended by one year, to new maturities of EUR 400 m in May 2026, and EUR 450 m in May 
2028.

===== SIDA 4 =====

The metal market began the year strongly with rising prices as a result of China’s reopening after three 
years of Covid-19 restrictions. However, the increase in prices moderated after slightly weaker demand 
than expected in China and persistently high global inflation data. The crisis in the American banking  
sector in March caused instability on the global financial market. The stock market index fell, as well as 
prices for base metals. However, the markets recovered following indications that the extent of the bank-
ing crisis was limited, and that there was less likelihood of increases in American interest rate.  
The Swedish krona strengthened against the USD but weakened against EUR. Prices for all of Boliden's 
main metals in USD were higher than during the previous quarter. 
 
Global demand for zinc was unchanged compared to the first quarter of 2022. Demand from China was 
also on a par with last year’s first quarter. However, demand in Europe and the USA fell by 2% and 1% 
respectively. 
Global smelter production decreased by 1% compared to the first quarter, 2022. Production in Europe 
fell by 14%. While metal premiums on the spot market fell compared to the previous quarter, they 
remained at historically high levels.  
Global mine production decreased by 1% compared with the first quarter, 2022.   
Benchmark annual contracts for 2023 were set at USD 274 (230) per tonne concentrate. The return of 
smelter capacity in Europe caused spot market treatment charges to fall from the previous quarter’s level. 
Global demand for copper rose by 2% compared to the first quarter 2022. Smelter production increased 
by 5% compared to last year. Inventory levels remained low and metal premiums high. 
Mine production during the quarter was hampered by logistical disruptions, primarily in Latin America. 
Despite this, global production increased by 9% compared with the first quarter, 2022.

===== SIDA 5 =====

Global demand for nickel increased by 6% compared to the first quarter, 2022. Demand in China 
increased by 17%. Demand from stainless steel market, the largest end-user, increased by 4% while  
demand from the battery sector rose by 36%. 
Nickel production in Indonesia and China increased by 25%. Global production increased by 15%. 
Global demand for lead was unchanged while supply increased by 1% compared to the first quarter, 
2022. Inventory levels were low globally and metal premiums continued to be high in Europe and the 
USA. 
The gold price developed strongly at the end of the quarter as a result of instability on the financial  
market caused by the banking crisis in the USA. The average price rose by 9% compared to the previous 
quarter. The price of silver rose by 7%. 
The price of palladium fell by 20% as a result of a worsening outlook for the automotive industry and 
internal combustion engines in particular.  
Increased supply from restarted smelters depressed the spot price for sulphuric acid during the quarter.

===== SIDA 6 =====

Boliden has five mining areas – Aitik, Boliden Area, Garpenberg, Kevitsa and Tara. Development in the 
Business Area is pursued jointly in the form of exploration, mine development, technology and the  
environment. 
• Lower metal prices and lower grades 
• Several production disruptions 
• Operating profit decreased to SEK 1,197 m (3,115) 
 
Operating profit decreased to SEK 1,197 m (3,115), mainly due to lower metal prices, lower volumes and 
increased costs. However, a stronger USD had a positive effect. Volumes decreased as a result of lower 
grades mainly in Aitik and Garpenberg combined with lower milled volumes in the open pits. Costs  
increased due to higher energy prices and strong cost inflation for mining-related input goods and  
increased exploration.  
Operating profit was SEK 315 m lower than the previous quarter, mainly as a result of lower milled 
volumes in all mines except Garpenberg. Production disruptions and lower definitive pricing from earlier 
deliveries had a negative effect. The exploration operation in Kylylahti was concluded during the previous 
quarter, which led to an impairment of exploration rights in the amount of SEK -259 m. Depreciations 
decreased as a result of lower production of metal in concentrate in the open pits.

===== SIDA 7 =====

The milled volume was lower than both the previous quarter and the first quarter of 2022 as a result of 
several disruptions in production. Produced metal in concentrate was lower than last year for all metals 
except zinc. The production of metal in concentrate was also lower than the previous quarter for all 
metals except copper. Lower milled volume in the open pits led to a decrease in the production of copper 
and nickel in concentrate on an annual basis. The production of zinc in concentrate decreased compared 
to the previous quarter but increased compared to last year. Tara experienced some production  
disruption, however not to the same extent as during the first quarter of 2022. Lower zinc grades in both 
Garpenberg and the Boliden Area had a negative effect. The production of gold and silver in concentrate 
decreased compared to both comparison periods. Compared to last year, the production of gold in 
concentrate was affected by lower grade in Aitik. The production of silver in concentrate decreased  
compared to both comparative periods due to lower grade in Garpenberg. 
Aitik’s milled volume was lower than both the previous quarter and last year as a result of several 
disruptions in production. At the end of March, a conveyor breakdown occurred between the mine’s 
primary crusher and a storage station. High short-term absence and unfavorable winter conditions with 
major temperature fluctuations also had a negative effect. However, production of copper in concentrate 
increased compared to the previous quarter as a result of higher grade. However, the grade was lower  
compared to last year. The copper grade was 0.19% (0.22), and the gold grade was 0.09 g/tonne (0.12). 
The average copper grade in 2023 is expected to reach 0.17% and gold grades 0.07 g/tonne, which is in 
line with what was previously announced. The investment in dam reinforcing measures that started 
during the second quarter of 2022 is proceeding according to plan. 
The Boliden Area’s milled volume was lower than the previous quarter and last year. Major weather-
changes caused crushed ore in silos at the concentrator to freeze, resulting in production problems. The 
ore had to be blasted free to enable processing. The investment in an extension of the Kristineberg mine 
is proceeding according to plan. Thus production from the Rävliden deposit will begin during the current 
year in parallel with the installation of new infrastructure to enable fossil-free production.   
Garpenberg’s milled volume was higher than the previous quarter and last year following the completion 
of an investment program. However, an unplanned repair shutdown to replace a hydrostatic bearing in 
the primary mill had a negative effect. The production of zinc and silver in concentrate decreased  
compared to both comparison periods as a result of lower grades. The zinc grade for the first quarter was 
3.4% (3.9), while the silver grade was 88 g/tonne (118). The average zinc grade in 2023 is expected to 
reach 3.6% and the silver grade 100 g/tonne, which is in line with what was previously announced. 
Tara’s milled volumes were lower than the previous quarter as a result of an ore conveyor breakdown 
underground. However, it increased compared to the first quarter last year. Production was hampered 
during the first quarter of 2022 as a result of the increased water inflow during the fourth quarter of 2021. 
The Tara Deep drift was accessible for exploration again during the quarter. 
Kevitsa's milled volume was lower than the previous quarter and last year. Lower primary crusher 
availability and high short-term absence in the beginning of the quarter had a negative effect. Thus the 
production of copper and nickel in concentrate decreased compared to the previous quarter and the first 
quarter last year. The copper grade was 0.25% (0.24) and the nickel grade was 0.17% (0.17).

===== SIDA 8 =====

Boliden has five smelters: the Kokkola and Odda zinc smelters, the Rönnskär copper and lead smelter, 
the Harjavalta copper and nickel smelter, and the Bergsöe lead smelter.  
• Improved prices and terms despite lower metal prices 
• Lower copper production compared to last year 
• Operating profit excluding revaluation of process inventory increased to SEK 1,497 m (1,378) 
 
 
Operating profit excluding revaluation of process inventory increased to SEK 1,497 m (1,378). Higher 
metal premiums, a stronger USD and higher treatment charges more than fully compensated for lower 
metal prices. Volumes had a positive effect, mainly due to a higher proportion of free metals from 
Harjavalta. However, higher prices for energy and consumables led to higher costs. A slag explosion in 
Harjavalta had a SEK -50 m impact on operating profit in the first quarter of 2022.  
Operating profit excluding revaluation of process inventory was SEK 72 m lower than the previous 
quarter. The decrease was mainly the result of lower volumes. The previous quarter was affected 
positively by a reduction in the gold inventory. Prices and terms had a positive effect, mainly due to 
higher metal premiums. No scheduled maintenance shutdowns were carried out during the quarter. This 
is in contrast to the previous quarter, which included an SEK -60 m impact on earnings resulted from 
planned maintenance shutdowns. However, electricity sales contributed only marginally in contrast to the  
SEK 56 m in the previous quarter.

===== SIDA 9 =====

Copper production was lower compared to the previous quarter and the first quarter last year due to 
lower production in both copper smelters. Certain process and logistics disruptions had a negative  
impact. However, zinc production was higher than both comparison periods. The production of nickel in 
matte was lower than the previous quarter but higher than last year. Lead production increased compared 
to both comparison periods. Precious metal production was substantially lower than the previous quarter 
as a result of lower process inventory feed and lower grades in input materials. A strike in the transport 
sector had a slightly negative effect on the Finnish units.  
Rönnskär’s copper production was lower than the previous quarter and last year. Copper concentrate 
and electronic secondary raw material feed fell in relation to both comparison periods. Technical process 
problems and low current efficiency had a negative effect. Gold production was lower than the previous 
quarter but higher than last year. Lower process inventory feed and lower grades in input materials  
compared to the previous quarter had a negative effect. 
Harjavalta’s production of most metals was lower than the previous quarter and the first quarter 2022. 
Certain process disruptions and an unfavorable concentrate mix as a result of logistics disruptions had a 
negative effect. The production of nickel in matte was lower than the previous quarter but higher than 
last year. Completed bottleneck investments will gradually enable a 20% increase in the production of 
nickel in matte compared to the 2020 level.  
Kokkola’s production process was stable and the production of casted zinc increased compared to both 
the previous quarter and last year. Production increased as a result of lower electricity prices. Production 
was deliberately decreased during the previous quarter and last year as it was more profitable during  
certain periods to sell the electricity rather than use it for zinc production. Silver production decreased 
compared to both comparative periods due to lower grade in concentrates and lower recovery in the 
silver process.  
Odda’s zinc production was higher than the previous quarter but lower than last year. Certain  
production limitations in the electrolysis plant in the beginning of the quarter had a negative effect. The 
expansion of annual zinc production to 350 ktonnes and an increase in the extraction of bi-metals is 
proceeding according to plan. The investment will be completed at the end of 2024.  
Bergsöe’s production was higher than both the previous quarter and last year. The production process 
was stable, in contrast to the first quarter of 2022 which was affected negatively by a disruption in the gas 
system. 
No planned maintenance shutdowns were carried out during the quarter, which was also the case during 
the first quarter of 2022. The maintenance shutdowns in the smelters during 2023 are estimated to affect 
operating profit by SEK -620 m (-500), of which SEK -480 m (-390) in the second quarter, SEK -140 m 
(-50) in the third quarter and SEK 0 m (-60) in the fourth quarter.

===== SIDA 10 =====

The average number of employees (full-time equivalents) was 6,153 (6,219). The accident frequency for 
Boliden’s own employees and contractors was lower than the previous quarter and the first quarter of 
2022. Ongoing proactive occupational health and safety work had a positive effect.  
For a long while, sick leave has been at elevated levels as a result of the current social situation with  
seasonal viruses and new variants of the Covid-19 virus. This was also the case during this quarter despite 
lower total sick leave than in the previous quarter and the corresponding quarter last year. 
Boliden‘s climate target is for actual CO2 emissions to be 40% lower in Scope 1 and 2 by 2030 compared 
to 2021. Absolute carbon dioxide emissions for the Group were lower compared to the previous quarter 
and last year. A correction of last year’s carbon dioxide emissions from electricity, heating and steam in 
Finland contributed to lower reported emissions.  
 
The targets for copper and zinc production and the Scope 3 target are described in the Annual and Sus-
tainability Report for 2022 on pages 32 and 33. These targets will be reported in detail in the Annual and 
Sustainability Report for 2023. 
 
Sulphur dioxide emissions were slightly higher than the previous quarter but lower than last year. They 
were within emission limits. 
 
No significant environmental incidents occurred during the quarter. 
  
 
 
 
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===== SIDA 11 =====

The Parent Company Boliden AB, which has three employees, conducts limited operations and is in a tax arrangement with Bo-
liden Mineral AB. The Income Statement and Balance Sheet for the Parent Company are presented on page 17. 
No significant changes or transactions with related parties have occurred during the quarter. 
The Finnish tax authority increased Boliden Kevitsa Oy’s tax assessment for the years 2012 to 2016, which has entailed an increase in tax expenses 
of approximately EUR 34 m (including interest and charges). The higher assessment is attributable to the restructuring during the period prior to 
Kevitsa’s acquisition by Boliden. The ruling was appealed but has now come into force as the Finnish Supreme Administrative Court has not 
granted leave to appeal. Boliden Kevitsa Oy has earlier paid the amount to the Finnish tax authority. Boliden has demanded that the seller, First 
Quantum Minerals (FQM), holds Boliden harmless for the damages Boliden has suffered due to the increased tax assessment. FQM’s liability was 
established by the Ontario Superior Court of Justice (Commercial List) in Canada in November 2021. FQM appealed the ruling to the Court of 
Appeal of Ontario, which denied the appeal in February 2023. The verdict has become final and FQM’s payment obligation is thus legally binding. 
Significant risks and uncertainty factors for the Group and the Parent Company include market and external risks, financial risks, operational and 
commercial risks, and non-compliance risks. The global economic climate in general and global industrial production in particular, affects demand 
for zinc, copper, and other base metals. For further information about risks and risk management, we refer to Boliden’s Annual and Sustainability 
report for 2022: Risk Management, on pages 54 to 57.  
The Consolidated Statements have been compiled in accordance with the EU-approved International Financial Reporting Standards (IFRS), and 
the Swedish Financial Reporting Board recommendation, RFR1, complementary accounting rules for Groups, which specifies the supplementary 
information required in addition to IFRS standards, pursuant to the provisions of the Swedish Annual Accounts Act. This Interim Report for the 
Group has been prepared in accordance with IAS 34, Interim Financial Reporting, and the Swedish Annual Accounts Act, and for the Parent 
Company in accordance with the Swedish Annual Accounts Act. The accounting principles and calculation methods have remained unchanged 
compared with those applied in the 2022 Annual and Sustainability Report.  
For a number of years, Boliden has presented certain financial metrics in interim reports that are not defined under IFRS, and it considers these 
metrics to provide valuable supplementary information as they more clearly evaluate the company’s performance. Not all companies calculate 
financial metrics in the same way, so the metrics used by Boliden are not always comparable with those used by other companies, and these met-
rics should, therefore, not be regarded as a replacement for metrics defined in accordance with IFRS. The financial metrics that Boliden uses and 
which are not defined in accordance with IFRS regulations are: Operating profit (EBIT) excluding revaluation of process inventory, Operating 
profit (EBIT), Free cash flow, Net debt, Return on capital employed, Return on Equity, Net debt/Equity ratio, Equity/Assets ratio, Net payment 
capacity and Net reclamation liability. For definitions, explanations and calculations of the financial metrics used by Boliden, see www.bo-
liden.com.  
Stockholm, April 25, 2023 
 
 
Mikael Staffas 
President and CEO 
 
 
The Interim Report has not been subject to review by the Company’s auditors.

===== SIDA 12 =====

• July 20, 2023  Interim Report for the second quarter 2023 
• October 20, 2023 Interim Report for the third quarter 2023 
• February 9, 2024 Interim Report for the fourth quarter and year-end 2023 
• April 26, 2024  Interim Report for the first quarter 2024 and Annual General Meeting  
 
   
   
 
 
 
 
 
 
 
 
 
Fish release supports biodiversity at sea 
Biodiversity is one of Boliden’s priority sustainability topics with the goal of contributing to greater biodiversity by 2030 in every region where we 
operate. An example of many of such activities, Boliden Kokkola has released fish in the maritime area outside of Kokkola for decades. The 
hatchlings, comprising the species whitefish, sea trout and burbot, are always released in the spring to compensate for any harm caused and to 
support biodiversity. Fish release is ecological compensation for the harm caused to fish stocks by industrial activities and shipping. In addition to 
the obligation to release fish included in environmental permits, Boliden makes voluntary releases to extend the ecological compensation to a 
broader level, i.e. not just to redress any harm, but also to improve conditions in the environment. The best way to benefit maritime diversity is of 
course to avoid environmental harm to the greatest possible extent through preventive measures. In Kokkola, this involves such things as stable 
process operation, thorough wastewater treatment and minimizing discharges into the sea. Supporting diversity and vitality in the fish population 
not only benefits the environment, but also conditions for professional and recreational fishing in the area.

===== SIDA 13 =====

⁴

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===== SIDA 17 =====

Boliden AB had no sums to report under Other Comprehensive Income for the first quarter of 2023.

===== SIDA 18 =====

The fair value of derivatives is based on bid and ask prices listed on the closing date and by discounting estimated cash flows. Market prices for 
metals are taken from locations where metal derivatives are traded, i.e. the London Metal Exchange (LME) and the London Bullion Market Asso-
ciation (LBMA). Discount rates are based on current market rates per currency and time to maturity for the financial instrument. Exchange rates 
are obtained from the Riksbank (Swedish Central Bank). When presenting the fair value of liabilities to credit institutions, the fair value is calcu-
lated as discounted agreed amortizations and interest payments at estimated market interest margins. As of March 31, 2023, the interest terms of 
current loan agreements were adjudged to be level with market rates in the credit market. Thus in essence, fair value corresponds to the carrying 
amount.  
The carrying amounts of trade receivables and payables is considered to be the same as their fair value due to their short time to maturity, the fact 
that provisions are made for expected credit losses, and that any penalty interest will be invoiced. Boliden’s financial instrument holdings, which 
are reported at fair value in the balance sheet, are all classified as level 2 items in the fair-value hierarchy, with the exception of a small amount of 
level 3 holdings in other shares and participations. See also under Accounting Principles in the Annual and Sustainability Report.

===== SIDA 19 =====

The sale of metal concentrates, metals, intermediate products and by-products is recognized upon delivery to the customer in 
accordance with the terms and conditions of sale, i.e. revenue is recognized when control passes to the purchaser.
The Group’s metal concentrates are invoiced provisionally upon delivery. Definitive invoicing takes place once all relevant parameters (concen-
trate, quantity, metal content, impurity content and metal price) for the price setting period have been determined. 
Customers are invoiced for the Group’s metals and intermediate products upon delivery. The Group eliminates price risks associated with sales 
and purchases by hedging the difference between purchased and sold quantities on a daily basis.  
Customers are invoiced for by-products when control is transferred, which takes place upon delivery.

===== SIDA 20 =====

The table below presents an estimate of how changes in market terms will affect the Group’s operating profit, excluding the 
revaluation of process inventory, over the next 12 months. The calculation is based on listings on March 31, 2023 and on Boliden’s planned pro-
duction volumes. The sensitivity analysis does not take into account the effects of metal price hedging, currency hedging, contracted treatment 
charges, or the revaluation of process inventory in Smelters. 
 
The table below shows a weighted index of the prices, terms and currencies that have the greatest impact on Boliden’s profits, together with a 
weighted currency index and a weighted metal price and treatment charge index. Currencies and metal prices have often displayed a negative cor-
relation that has had an equalizing effect on the Boliden-weighted index and on Boliden’s earnings.

===== SIDA 21 =====



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===== SIDA 27 =====