Boliden AB Q3 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Johannes Grunselius - SB1 Markets - Analyst : Thank you all of you. So it's Johannes Grunselius here at SB1 Markets. I'd like to -- I have two questions, but I'd like to start with a question here that you end up with, Mikael. Mathematically, grades will move up in fourth quarter. But you guide for sort of the full year -- could you perhaps be a little bit more precise because the sort of outcomes are very broad really for the fourth quarter?

Question: Johannes Grunselius - SB1 Markets - Analyst : And then you obviously had a very favorable stripping, which is, I guess, the background for very good ore volumes. Any sort of unusual stuff that happened or extra favorable conditions or something? Or can you sort of elaborate on by?

Question: Johannes Grunselius - SB1 Markets - Analyst : That's helpful. And my second question is more broad on CapEx because you obviously reported in Swedish krona, you report your CapEx in Swedish krona. Now we have a much, much stronger SEK versus Euro, particularly dollar. Will this have any impact on your CapEx budgets in SEK for the coming years? Or is it more not visible?

Question: Liam Fitzpatrick - Deutsche Bank AG - Analyst : Good morning, Mikael and Hakan. First question is on Garpenberg. Can you just outline, given your comment there, what the typical length of an appeals process could be? And do you need that permit fully secured before you would actually start spending on that longer-term expansion project that you outlined back in March?

Question: Liam Fitzpatrick - Deutsche Bank AG - Analyst : And would you start the project during the appeals process? Or would you just have to remain cautious until you got through that?

Question: Liam Fitzpatrick - Deutsche Bank AG - Analyst : Okay. And then perhaps one for Hakan just on CapEx back in March. I think you outlined that if there were no projects approved that a baseline for would be in the region of SEK15 billion, including the new assets. Does that still hold as a reasonable baseline for next year?

Question: Liam Fitzpatrick - Deutsche Bank AG - Analyst : Well, I believe that's what you told us in March. So I'm just -- yes, does that figure still hold?

Question: Liam Fitzpatrick - Deutsche Bank AG - Analyst : Okay. My very last question, just on Hakan your comments on the gold and silver. Could you just repeat how much of the gold and silver output in the quarter is booked at the quarter end price and do you have any rough number for us in terms of what the positive delta was versus sort of average pricing for the quarter? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 22, 2025 / 7:00AM, BOL.ST - Q3 2025 Boliden AB Earnings Call

Question: Liam Fitzpatrick - Deutsche Bank AG - Analyst : Do you have a figure or Hakan just because I think there's quite a lot of interest in what that delta is, but if you don't, I'll try and work it out, but I was just curious if you have a figure?

Question: Liam Fitzpatrick - Deutsche Bank AG - Analyst : Okay. Understand. Thank you.

Question: Daniel Major - UBS AG - Analyst : Hi, guys, thanks for the questions. So the first one, just on Oddo, sounds from your commentary that effectively you'll be an exit rate of this year not quite at full normalized production but getting reasonably close to it. Is it therefore sensible for next year to assume the majority of your previously guided SEK150 million delta on EBIT would be accrued in 2026?

Question: Daniel Major - UBS AG - Analyst : Okay. That's clear. Then yeah, the second question on the Swedish -- sorry, Finnish tax ruling and that debate. So two parts of the question. If the ruling progresses in the way that it appears it might be when would you start incurring the SEK20 million to SEK30 million negative tax delta at Kevitsa? And then the second part of the question. If the taxes ruled in that way? Would it -- we should just assume that pushback is shelved and the mine closes in 2034, but you don't incur the roughly SEK10 billion CapEx associated with pushback five.

Question: Daniel Major - UBS AG - Analyst : Got it. And then the last one, just maybe a follow-up on Liam's question just hitting on a few bridge items to the fourth quarter. The provisional pricing impacts somewhat confusing. But can you just tell us what the positive impact over the whole group was in Q3? I believe was it somewhere close to SEK90 million, SEK100 million relative to a net positive this quarter relative to a negative roughly SEK300 million last quarter. If you could just let us know, overall group, what was the positive provisional pricing delta on Q3?

Question: Daniel Major - UBS AG - Analyst : Right. Okay. So if we took a scenario that the provisional pricing was zero next quarter, it would be a negative delta of around SEK300 million. Is that correct. Okay. That's perfect. Thank you. That's my questions.

Question: Amos Fletcher - Barclays Services Corp - Analyst : Yeah, good morning, gentlemen. A couple of questions. First one, just going back to Kevitsa pushback. I just wanted to clarify, are you intimating that the Finnish government were to give you guarantees over tax stability that you would consider going ahead with the project. Is that something that's being discussed to the government at the moment?

Question: Amos Fletcher - Barclays Services Corp - Analyst : Okay, yeah. Understood. And then second question was just on the order expansion. When do you expect to get commercial volumes from the project, i.e., positive P&L contribution from the project ramping up?

Question: Amos Fletcher - Barclays Services Corp - Analyst : Okay. And then the final question was just on for Hakan really was just on working capital. Can you give us a bit more detail on expectations for Q4 versus, let's say, kind of normal seasonal for Q4. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 22, 2025 / 7:00AM, BOL.ST - Q3 2025 Boliden AB Earnings Call

Question: Amos Fletcher - Barclays Services Corp - Analyst : Okay, makes sense. All right, thank you very much.

Question: Alain Gabriel - Morgan Stanley - Analyst : Hi, good morning. I just have one question left is on the Somincor and Zinkgruvan, Mikael you mentioned that you sounded quite positive and constructive on the way and the pace at which the integration is going ahead. Do you now have a clearer idea on the -- what is the opportunity for cost savings and/or productivity gains that you can quantify from the two assets as we head into 2026.

Question: Alain Gabriel - Morgan Stanley - Analyst : Excellent. Thank you.

Question: Paul Kirjanovs - Bank of America - Analyst : Hi, good morning, gentlemen. I had a bit of a different question for you today. Can you talk perhaps of any plans or ambitions you have around rare earths? Is that something that Boliden's long to get involved in? It seems like an area that's increasingly gaining importance? Thank you.

Question: Paul Kirjanovs - Bank of America - Analyst : Okay, understood. Thank you.

Question: Daniel Major - UBS AG - Analyst : Hi, yeah. Sorry for a follow-up, just had a bit of thing coming on the provisional pricing and the delta quarter-on-quarter. Just to be clear, so SEK100 million positive from open positions. And then was it SEK200 million or SEK350 million impact from the gold and silver pricing? So is the total delta

Question: Daniel Major - UBS AG - Analyst : Sorry, which one?

Question: Daniel Major - UBS AG - Analyst : Around SEK300 million. Okay. That's a -- and then -- yeah, thanks. That's super clear. And then the next one you mentioned SEK200 million positive delta on precious metal deliveries in the mining business that was offset by internal elimination. Yeah, I'm assuming that would -- the base case should be that would reverse in 4Q. So SEK200 million less on mining, but a reversal of the SEK200 million negative on internal eliminations as we stand today? Is that a reasonable set?

Question: Daniel Major - UBS AG - Analyst : Cool. That's clear. Thanks.