STOCKHOLM, Dec. 9, 2024 /PRNewswire/ — Boliden has entered right into a definitive word of honour with Lundin Mining to procure the Neves-Corvo mine in Portugal and the Zinkgruvan mine in Sweden. The prematurely money attention for the entities is USD 1,300 m plus contingent bills that may succeed in as much as USD 150 m, on a money and debt-free foundation. The transaction, that significantly strengthens Boliden’s mine manufacturing in addition to inside zinc and copper listen provide, is topic to commonplace regulatory approvals.

“The addition of two cash flow generative zinc and copper mines in Portugal and Sweden has a strong industrial logic as well as a strategic fit. Optimizing these well-invested units as well as developing the feed mix to our existing smelters will create short- and long-term value for both our Business Areas. Going forward we will also have greater development opportunities for near mine exploration in these attractive mining regions.”, commented Mikael Staffas, President and CEO, Boliden.

Abstract of the Transaction

• Boliden has entered right into a definitive word of honour to procure the mines Somincor-Sociedade Mineira de Neves-Corvo, S.A. (“Neves-Corvo”) and Zinkgruvan Mining Aktiebolag (“Zinkgruvan”) for an prematurely money attention similar to USD 1,300 m plus a contingent cost as much as USD 150 m, on a money and debt-free foundation (the “Transaction”).
• The Transaction has a robust business common sense and strategic are compatible, complementing flow Boliden operations with two well-invested mines. Following the Transaction, zinc and copper listen manufacturing will build up from 35% to 70% of zinc smelting capability and 30% to 40% of copper smelting capability.
• The Transaction will supremacy to an important build up in manufacturing of metals in listen in Industry Branch Mines, by way of 95% for zinc and 43% for copper, in keeping with 2023 manufacturing figures.
• The Transaction is anticipated to be right away accretive to Boliden’s income according to percentage from crowning glory of the Transaction and give a contribution with >10% to Money EPS¹⁾.
• The EBITDA contribution from the Neves-Corvo and Zinkgruvan mines over the upcoming 5 years is estimated to quantity to USD 300–350 m yearly, assuming consensus costs and phrases.
• The prematurely money attention might be totally financed thru a bridge mortgage, which is anticipated to be refinanced thru a percentage factor similar to roughly part of the bridge mortgage (the “Share Issue”), and the extra quantity in medium and long-term debt financing. The Proportion Factor might be in keeping with an authorization from a common assembly or topic to approbation by way of a common assembly. Boliden intends to discover choices to behavior the Proportion Factor both as a directed percentage factor or as a completely underwritten rights factor. The Proportion Factor is anticipated to be performed all over the primary part of 2025; alternatively incorrect choice has been taken at this generation and the timing of the Proportion Factor is topic to, amongst alternative, prevalent marketplace statuses on the generation of the Proportion Factor.
• Of completion of the Transaction is anticipated all over mid-2025, topic to regulatory approvals, together with merger regulate filings and approvals and alternative commonplace latter statuses.

¹⁾ Estimated as moderate have an effect on all over 2025 to 2027.

Neves-Corvo briefly

The Neves-Corvo mine is an underground zinc-copper-lead-silver mine with on-site processing amenities, positioned roughly 200 km southeast of Lisbon, Portugal, within the western a part of the Iberian Pyrite Belt. In 2023, the manufacturing of metals in listen was once as follows:

• Zinc 108,812 ton
• Copper 33,823 ton
• Top 5,600 ton
• Silver 1.9 Moz

EBITDA generated by way of the Neves-Corvo mine in 2023 amounted to roughly USD 91 m²⁾. Zinc book grade is 7.6% and copper book grade is two.0% (as according to Lundin Mining’s mineral useful resource and mineral book estimate 2023). Neves-Corvo’s money value place is roughly seventy fifth percentile of the mining value curve for each copper and zinc.

²⁾ EBITDA is calculated as Income much less Manufacturing Prices, Basic Exploration and Industry Construction bills.

Zinkgruvan briefly

The Zinkgruvan mine is an underground zinc-copper-lead-silver mine with on-site processing amenities, positioned roughly 200 km southwest of Stockholm, Sweden. In 2023, the manufacturing of metals in listen was once as follows:

• Zinc 76,349 ton
• Copper 4,434 ton
• Top 26,284 ton
• Silver 2.3 Moz

EBITDA generated by way of the Zinkgruvan mine in 2023 amounted to roughly USD 104 m³⁾. Zinc book grade is 7.2% and Copper book grade is two.2% (as according to Lundin Mining’s mineral useful resource and mineral book estimate 2023). Zinkgruvan’s money value place is in the midst of the second one quartile of the mining value curve for zinc.

³⁾ EBITDA is calculated as Income much less Manufacturing Prices, Basic Exploration and Industry Construction bills.

Boliden put up crowning glory of the Transaction

Submit crowning glory, Boliden will function seven mining boxes and 5 smelters, principally targeted at the worth chains for zinc and copper. Out of the seven mining boxes, 4 are positioned in Sweden and one each and every in Finland, Eire and Portugal. Following the Transaction, together with the growth of Odda and the restart of Tara, Boliden’s listen manufacturing will build up from 35% to 70% of zinc smelting capability and 30% to 40% of copper smelting capability over the approaching years. Manufacturing of metals in listen in Industry Branch Mines will build up, in keeping with 2023 manufacturing figures, by way of 95% for zinc and 43% for copper. The Transaction is anticipated to be accretive to income according to percentage put up crowning glory. Assuming consensus costs and phrases, the EBITDA contribution from Neves-Corvo and Zinkgruvan over the upcoming 5 years is estimated to quantity to USD 300–350 m yearly.

Description of the Transaction and financing

The prematurely money attention is composed of USD 1,300 m payable at crowning glory (on a money and debt unfastened foundation and topic to commonplace changes) for the purchase of a 100% pastime within the entities Somincor-Sociedade Mineira de Neves-Corvo, S.A. (at once preserving the mine Neves-Corvo) and Zinkgruvan Mining Aktiebolag (at once preserving the mine Zinkgruvan). Thereafter, contingency bills might succeed in as much as a complete of USD 150 m, topic to in recognize to Neves-Corvo, moderate zinc and copper costs above USD 1.30/lb and USD 4.50/lb, respectively, over the upcoming 3 years and in recognize to Zinkgruvan, moderate zinc costs above USD 1.40/lb and a minimal mining manufacturing threshold over the upcoming 2 years.

The prematurely money attention might be totally financed thru a bridge mortgage equipped by way of BNP PARIBAS, RBC Capital Markets (“RBC”) and Skandinaviska Enskilda Banken AB (“SEB”).

Assuming consensus costs and phrases, the estimated EBITDA contribution from Neves-Corvo and Zinkgruvan over the upcoming 5 years would quantity to USD 300–350 m yearly.

Proportion Factor

Boliden’s goal is to refinance the bridge mortgage by way of securing spare medium and long-term debt financing and issuing untouched fairness thru a percentage factor. The scale of the Proportion Factor might be aspiring to reach an effective capital construction and is anticipated to correspond to roughly part of the bridge mortgage quantity. The Proportion Factor is anticipated to be performed all over the primary part of 2025. The Proportion Factor might be in keeping with an authorization from a common assembly or topic to approbation by way of a common assembly. To the good thing about Boliden’s shareholders, Boliden intends to discover other choices to hold out the Proportion Factor, together with the way to perform the Proportion Factor as a directed percentage factor or as a completely assured rights factor, which can rely, among alternative issues, at the prevalent marketplace statuses on the generation of the Proportion Factor.

Additional, BNP PARIBAS and SEB have entered right into a stand-by underwriting word of honour with Boliden, wherein they’ve dedicated, topic to commonplace statuses, to go into into an underwriting word of honour, protecting the underwriting of the total quantity of the Proportion Factor proceeds, must the Proportion Factor be performed as a rights factor.

Monetary results

Previous to crowning glory of the Transaction and the Proportion Factor, Boliden’s web debt/fairness ratio (September 30, 2024), was once 24%. Assuming the envisaged Proportion Factor and the theoretical crowning glory of the Transaction on September 30, 2024, the web debt/fairness ratio could be roughly 30% aside from dividends. That is quickly upper than Boliden’s goal stage of 20% web debt/fairness ratio in an financial upturn. The online debt/fairness ratio is anticipated to revert against the objective stage inside 3 years from the crowning glory of the Transaction, topic to marketplace statuses. Boliden’s dividend coverage, prepared at one 3rd of web benefit for the past, will stay unchanged.

Regulatory approvals and latter

Of completion of the Transaction is topic to acquiring commonplace regulatory approvals, together with merger regulate filings and approvals by way of the EU Fee and the Swedish Inspectorate of Strategic Merchandise underneath the Swedish FDI Employment, and the exchange of regulate approbation underneath the Neves-Corvo Portuguese Concession Agreement and Elementary Lets in Kindness. The Transaction isn’t topic to shareholder approbation and is topic to commonplace statuses to latter. The Transaction is anticipated to similar by way of mid-2025.

The Proportion Factor is anticipated to be performed all over the primary part of 2025; alternatively incorrect choice has been taken at this generation and the timing of the Proportion Factor is topic to, amongst alternative, prevalent marketplace statuses.

Alternative knowledge

RBC Capital Markets is performing as supremacy monetary guide and Evercore Staff L.L.C. is performing as isolated monetary guide to Boliden. BNP PARIBAS and SEB are performing as Joint International Coordinators, and RBC as Joint Bookrunner, in reference to the Proportion Factor.

Convention name lately,
December 9, 2024, at 09:00 (CET)

In sunny of the above, a press and analyst convention might be held lately, December 9, at 09:00 CET, and may also be adopted by means of webcast and phone. The convention might be led by way of Boliden’s President and CEO Mikael Staffas, and Government Vice President and CFO Håkan Gabrielsson.

To take part within the webcast, please virtue the hyperlink beneath:
https://boliden.videosync.fi/2024-12-09

To take part within the phone convention, please check in 5 mins ahead of the hole of the convention by means of the hyperlink beneath. Upcoming the registration you’re going to be supplied with telephone quantity and a convention ID to get admission to the convention. If you want to ask a query, please dial *5 in your phone keypad to go into the queue.

https://service.flikmedia.se/teleconference/?id=100439

Upcoming the decision, presentation subject material and the recorded webcast might be to be had on our web site: https://www.boliden.com

For additional knowledge, please touch:
Klas Nilsson
Director Staff Communications
+46 70 453 65 88
[email protected]

This data is knowledge that Boliden AB is obliged to manufacture population pursuant to the EU Marketplace Abuse Legislation. The guidelines was once submitted for e-newsletter, in the course of the company of touch particular person above, at 07:00 CET on December 9, 2024.

Ahead-looking knowledge

Statements on this press shed when it comes to age situation and cases, together with statements relating to age efficiency, expansion and alternative projections in addition to advantages of the word of honour, are forward-looking statements. Those statements might normally, however now not at all times, be known by way of the virtue of phrases corresponding to “will”, “expects”, “believes”, “intended” or indistinguishable expressions. By way of their nature, forward-looking statements contain chance and indecision as a result of they relate to occasions and rely on cases that can happen going forward. Original effects might fluctuate materially from the ones expressed or implied by way of those forward-looking statements because of many components, a lot of that are out of doors the regulate of Boliden AB. Such a forward-looking statements discuss most effective as of the while on which they have been made and Boliden AB, has incorrect legal responsibility (and undertakes incorrect such legal responsibility) to replace or revise any of them, whether or not because of untouched knowledge, age occasions or differently, aside from for in keeping with appropriate regulations and laws.

This press shed does now not represent an do business in to promote, or a solicitation of do business in to buy, stocks described on this press shed in the US. The stocks of Boliden AB referred to on this press shed have now not been and may not be registered underneath the U.S. Securities Employment of 1933 (the “Securities Act”) or with any securities regulatory authority of any shape of the US for do business in or sale as a part of their distribution and will not be presented or offered inside the US aside from pursuant to an exemption from, or in a transaction now not topic to, the registration necessities of the Securities Employment and in compliance with any appropriate securities regulations of any shape or alternative jurisdiction of the US. There might be incorrect population providing of stocks in the US.

This data was once delivered to you by way of Cision http://news.cision.com.

https://news.cision.com/boliden/r/boliden-to-acquire-the-neves-corvo-and-zinkgruvan-mines,c4079301

Refer to information are to be had for obtain:

SOURCE Boliden

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