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Boliden AB (publ)

Basic Materials
BOL.ST: 

Research by MICKE

Author: micke
  • 383.60 +19.13% (21/02/2025)
  • 375.00 +16.46% (06/02/2025)
  • MONITOR 

Boliden is a well managed company, but generally the profits are very dependent on the metal prices. Zinc, copper, nickel are the most important metals in that order. There is a balancing effects with some gold and silver. Boliden also have smelters which also can balance results. Boliden is a part of the recycling of metals. I see Boliden as a long term investment and would benefit from increased investments in the green sector and if/when global building sector gains pace. The purchase of a mine in Portugal from Lundin Mining will increase production but needs financing, the plan is a share issue and bank loans.

02/02/2025｜ Analyses:4
2
  • Business (3)

    • Boliden has bought a mine in Portugal from Lundin Mining, the transaction will be finalized august 2025. The price is USD1.3billion, plus contingent payments, depending on the metal prices, that can reach up to USD 150 m, on a cash and debt-free basis. Boliden's plan is to take about half as loan and half by emitting new shares, probably to current shareholders. Production of metals in concentrate in Business Area Mines will increase, based on 2023 production figures, by 95% for zinc and 43% for copper. Assuming consensus prices and terms, the estimated EBITDA contribution from Neves-Corvo and Zinkgruvan over the next five years would amount to USD 300-350 m annually.
      https://investors.boliden.com/en/press/boliden-acquire-neves-corvo-and-zinkgruvan-mines-2286267
      On the conference call an analyst asked why future cashflow isn’t used, as was done for Kevitsa. CEO responded that At that time the metal grades in Aitik for the future years where very high, which they aren’t now.

      02/02/2025 by MICKE｜
      1

    • Lower global production could make increase copper prices

      PANAMA CITY, Nov 28 (Reuters) - Panama's president said on Tuesday that Canadian miner First Quantum's lucrative copper mine Cobre Panama would be shut down.

      https://www.reuters.com/markets/commodities/top-panama-court-rules-first-quantum-mining-contract-unconstitutional-2023-11-28/

      Prices have gone up the past days https://www.nordnet.se/marknaden/indikator/copper


      03/12/2023 by MICKE｜
      1

    • On current high metal prices Boliden will make very good profits.

      24/10/2021 by MICKE｜
      1
  • Risks (1)

    • The Boliden share is volatile.

      26/10/2021 by MICKE｜
      1