Download PDF

1. Company Snapshot

1.a. Company Description

Boliden AB (publ) engages in the exploring, extracting, and processing of base metals and precious metals in Sweden, other Nordic region, Germany, the United Kingdom, the rest of Europe, North America, and internationally.The company operates through two segments, Business Area Mines and Business Area Smelters.It explores for copper, zinc, nickel, lead, gold, silver, cobalt, tellurium, platinum, and palladium deposits.


The company operates the Aitik, the Boliden Area, and Garpenberg mines in Sweden; the Tara mine in Ireland; and the Kevitsa mines in Finland.Its products include zinc and lead ingot, copper cathode, gold bar, and silver granule, and other products, such as sulphuric acid; copper, lead, nickel, and zinc concentrates; and by-products, including copper sulphate, zinc clinker, iron sand, copper telluride, selenium, nickel matte, and crude nickel sulphate, as well as palladium, platinum, rhodium, iridium, ruthenium, and osmium concentrates.The company sells its metals primarily to industrial customers, as well as construction, electronics, and automotive industries; and paper manufacturers.


Boliden AB (publ) was founded in 1924 and is headquartered in Stockholm, Sweden.

Show Full description

1.b. Last Insights on BOL

Boliden's recent performance was driven by several positive factors. The company's Q2 2025 earnings report showed strong underlying cash flow and stable production despite challenging market conditions. New mines are successfully on board, contributing to growth. Additionally, Boliden has secured a $20 million earn-in agreement with Golden Sky Minerals for the Rayfield-Gjoll copper-gold property. The company's application for a mining concession for the Laver deposit was also granted, allowing for copper, gold, silver, and molybdenum extraction. Furthermore, Linn Andersson was appointed EVP Strategy and CTO, bringing new expertise to the Group Management.

1.c. Company Highlights

2. Boliden Delivers Resilient Q2 2025 Results Amidst Challenging Market Conditions

Boliden reported a robust financial performance in its Q2 2025 earnings, with a profit of almost SEK 1.3 billion, excluding inventory revaluation. Despite a significant negative currency effect of SEK 600 million and a SEK 400 million EBIT impact from planned maintenance, the company maintained stable production and underlying cash flow. The integration of Lundin Mines, acquired on April 16, is progressing smoothly, with Aitik achieving record production at a 40 million tonne annual pace. Free cash flow, excluding acquisition proceeds, stood at SEK 2 billion, underscoring the company's strong balance sheet and 29% gearing.

Publication Date: Jul -19

📋 Highlights
  • Profit Excluding Inventory Revaluation: Boliden reported a profit of nearly SEK 1.3 billion, excluding inventory revaluation.
  • Negative Currency Impact: The company faced a SEK 600 million negative currency effect compared to last year and Q1.
  • Stable Production Despite Maintenance: Extensive planned maintenance (SEK 400 million EBIT impact) did not disrupt stable production and underlying cash flow.
  • Free Cash Flow and Capital Expenditure: Free cash flow reached SEK 2 billion, with capital expenditure of SEK 4.2 billion in line with guidance.
  • Lundin Mines Integration: Lundin mines, acquired on April 16, are integrating well, with record production at Aitik (40 million tonne pace).

Operational Performance and Project Updates

Operationally, Aitik's production aligned with guidance, while Garpenberg's throughput was slightly lower due to maintenance. Kevitsa delivered strong production and favorable grades, and Boliden Area maintained stable output. The company also provided updates on its key projects: Odda's commissioning is ongoing with a ramp-up expected in the second half of the year; Kristineberg's expansion is nearing completion; Rönnskär's tank house remains on track; and the Aitik dam is fully permitted and completed.

ESG and Market Outlook

Boliden reported a mixed ESG performance, with greenhouse gas emissions increasing due to new unit inclusions, but improvements in lost-time incidents (LTIs) and sick leave trends. The market update highlighted recovering metal prices, though copper spot treatment charges (TCs) remain under pressure, posing challenges for the industry. Boliden's CEO, Mikael Staffas, emphasized, "Despite the current depressed treatment charges, we remain focused on optimizing our operations and advancing our project pipeline to drive long-term value."

Valuation and Financial Position

From a valuation perspective, Boliden's P/E ratio stands at 7.4, with a P/B ratio of 1.2 and an EV/EBITDA of 4.15. The company's free cash flow yield is 2.7%, supported by a robust ROIC of 9.96% and ROE of 17.39%. With a net debt-to-EBITDA ratio of 0.34, Boliden maintains a conservative balance sheet, providing flexibility for future investments and potential acquisitions.

3. NewsRoom

Card image cap

Boliden (OM:BOL): Can Stronger Precious Metals Exposure Reshape Its Long-Term Outlook?

Nov -29

Source:

Card image cap

Golden Sky Minerals Corp. Receives Exchange Approval, Provides Additional Disclosure on NSR Terms in Boliden Option and Joint Venture Agreement

Nov -27

Source: newsfilecorp.com

Card image cap

Invitation to presentation of Boliden's guidance 2026

Nov -27

Source:

Card image cap

Golden Sky Minerals Corp. Shareholders Approve Option and Joint Venture Agreement with Boliden

Nov -17

Source: newsfilecorp.com

Card image cap

The great AI buildout shows no sign of slowing

Oct -31

Source:

Card image cap

Repurchase of shares in Boliden AB on October 22

Oct -23

Source:

Card image cap

Boliden (OM:BOL) Profit Margin Drops Below Prior Year, Raising Questions Over One-Off Gain

Oct -23

Source:

Card image cap

Boliden resolves to repurchase its shares

Oct -22

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.03%)

6. Segments

Smelters

Expected Growth: 4%

Boliden AB's smelters segment growth is driven by increasing demand for copper and zinc, driven by electrification and infrastructure development. Strong operational performance, cost savings initiatives, and strategic investments in modernization and expansion projects also contribute to growth. Additionally, favorable market conditions, including rising metal prices and a strong European market, support the segment's growth.

Mines

Expected Growth: 6%

Boliden AB's 6% growth in mines segment is driven by increasing zinc and copper prices, strong demand from electric vehicle and renewable energy industries, and the company's successful cost reduction initiatives. Additionally, Boliden's focus on operational efficiency, exploration and development of new mines, and strategic acquisitions have contributed to the segment's growth.

7. Detailed Products

Zinc

Boliden AB (publ) produces high-quality zinc, which is used in various applications such as galvanizing, die-casting, and as an alloying element in the production of other metals.

Copper

Boliden AB (publ) produces copper, which is used in electrical wiring, circuits, and other electrical applications due to its high electrical conductivity.

Lead

Boliden AB (publ) produces lead, which is used in batteries, radiation shielding, and other applications due to its high density and malleability.

Silver

Boliden AB (publ) produces silver, which is used in jewelry, coins, and other decorative items due to its attractive appearance and durability.

Gold

Boliden AB (publ) produces gold, which is used in jewelry, coins, and other decorative items due to its attractive appearance and durability.

Zinc alloys

Boliden AB (publ) produces zinc alloys, which are used in die-casting, galvanizing, and other applications due to their high strength, corrosion resistance, and durability.

Copper alloys

Boliden AB (publ) produces copper alloys, which are used in electrical applications, architecture, and other industries due to their high electrical conductivity, corrosion resistance, and durability.

Recycling services

Boliden AB (publ) offers recycling services for metals and other materials, providing a sustainable and environmentally friendly solution for waste management.

8. Boliden AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

Boliden AB (publ) operates in the mining industry, which has limited substitutes. However, the company's zinc and copper products can be substituted with other materials in certain applications, posing a moderate threat.

Bargaining Power Of Customers

Boliden AB (publ) has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often essential to its customers' operations, giving Boliden a degree of pricing power.

Bargaining Power Of Suppliers

Boliden AB (publ) relies on suppliers for equipment, materials, and services. While the company has some bargaining power due to its size, suppliers may still have some leverage, particularly in cases where there are limited alternative suppliers.

Threat Of New Entrants

The mining industry has significant barriers to entry, including high capital costs, regulatory hurdles, and the need for specialized expertise. This makes it difficult for new entrants to challenge Boliden AB (publ)'s position.

Intensity Of Rivalry

The mining industry is highly competitive, with several established players competing for market share. Boliden AB (publ) faces intense rivalry from other mining companies, which can lead to pricing pressure and reduced margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 20.42%
Debt Cost 6.38%
Equity Weight 79.58%
Equity Cost 8.88%
WACC 8.37%
Leverage 25.66%

11. Quality Control: Boliden AB (publ) passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Titan Cement

A-Score: 7.0/10

Value: 7.2

Growth: 8.2

Quality: 6.3

Yield: 8.1

Momentum: 5.5

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
Navigator

A-Score: 6.5/10

Value: 6.4

Growth: 4.8

Quality: 5.7

Yield: 10.0

Momentum: 2.5

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
SSAB

A-Score: 6.4/10

Value: 8.5

Growth: 5.8

Quality: 4.4

Yield: 8.8

Momentum: 7.5

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
Buzzi Unicem

A-Score: 6.1/10

Value: 6.1

Growth: 7.3

Quality: 7.2

Yield: 3.8

Momentum: 8.0

Volatility: 4.3

1-Year Total Return ->

View Full Report
Stock-Card
Boliden

A-Score: 4.8/10

Value: 5.3

Growth: 6.8

Quality: 5.2

Yield: 0.0

Momentum: 7.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
ERAMET

A-Score: 3.5/10

Value: 7.3

Growth: 1.9

Quality: 2.3

Yield: 4.4

Momentum: 2.5

Volatility: 2.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

463.6$

Current Price

463.6$

Potential

-0.00%

Expected Cash-Flows