Boliden hedges metal prices in conjunction with Garpenberg mine expansion

Boliden has hedged zinc, copper, lead, gold and silver metal prices to approximately one third of the Group's metal price risk and corresponding exchange rate risk for the period of the investment in Garpenberg.

The hedging which refers to 2011, 2012 and the first six months of 2013, has been effected using currency and metal market futures contracts to approximately one third of the price risk from the Group's mining and smelting operations.

"On 17th January, we decided to invest SEK 3.9 billion in an expansion of the Garpenberg mine, which will result in an increase in ore production from 1.4 million tonnes to 2.5 million tonnes annually. The hedging helps secure Boliden's financial stability throughout the investment period," states Boliden's President, Lennart Evrell. 

Specification of executed contracts for metals and foreign currencies:

 Metals           Hedged volume                      Forward price, USD
                  2011       2012       2013         2011   2012   2013
 Zinc (tonnes)    108 350    125 400    62 250       2 402  2 230  2 125
 Copper (tonnes)  27 225     27 600     14 100       9 664  9 080  8 746
 Lead (tonnes)    18 975     23 100     11 400       2 595  2 324  2 219
 Gold (oz)        40 700     56 400     30 000       1 372  1 369  1 364
 Silver (oz)      2 321 000  2 940 000  1 524 000    28.97  28.45  27.12

 Currencies*      Sold MUSD                          Forward rate
                  2011       2012       2013         2011   2012   2013
 USD/SEK          477        508        253          6.67   6.8    6.75
 EUR/USD          187        197        91           1.35   1.35   1.35
 USD/NOK          31         39         18           5.9    5.95   6.03

• The currency future contracts are shown nominally in MUSD and corresponds to the hedged US dollar income via the metals futures contracts shown above (sold volume x future prices in USD).

For further information, please contact:
Frans Benson, Investor Relations, Boliden AB, tel: +46 8 610 15 23
Marcela Sylvander, Director Group Communications, Boliden AB, tel: +46 8 610 15 59

Boliden is a leading European metals company whose core competence is in the fields of exploration, mining, smelting and recycling. Boliden's main metals are zinc and copper. Other important metals extracted and refined include lead, gold and silver. The operations are conducted in two Business Areas: Mines and Smelters. The number of employees is approximately 4 400 and the turnover amounts to approximately SEK 28 billion annually. Its shares are listed on NASDAQ OMX Stockholm, segment Large Cap and on the Toronto Stock Exchange in Canada.                                                                                            

                                                                                                                                                www.boliden.com