Boliden: 2Q26: More operational challenges...

Research evidence excerpt

Boliden: 2Q26: More operational challenges...

Sulphuric: Higher sulphuric prices added SEK98m q/q to smelter EBIT in 2Q and if prices

remain at current levels BOL expects sequential improvement of >SEK100m in 3Q. In our

view higher sulphuric is a positive near-term tailwind for BOL, part offsetting challenges

associated with the Odda ramp-up; but assuming flows through the Strait of Hormuz

normalise the positive earnings impact is likely to moderate over the next 6-12m.

Odda: Ramp-up challenges at the roaster continued in 2Q due to: (1) issues with safety

sensors triggering stoppages; (2) conveyer issues. BOL believes they are making progress

in resolving these issues and should achieve full production in 3Q; this implies positive q/

q EBIT contribution; but after a series of challenges in our view confidence is low and

predicting the near-term financial contribution from Odda is challenging.

M&A & potential Nexa deal

Following a statement that BOL is in discussions with Nexa Resources & Votorantim

(News & UBS view), management noted that they typically have discussions ongoing

with a number of different parties and only disclosed discussion with NEXA because

details were leaked. BOL has not disclosed any details of a potential transaction and

reiterated that there is no certainty that any transaction will take place. BOL highlighted

that there potential interest is due to (1) comparable characteristics at number of Nexa

mines and smelters; (2) Brazil is a jurisdiction that could be of interest. UBS view: If

Boliden acquired/consolidated Nexa, it would become a dominant player in the global

zinc market. Adding scale and diversification in both mining and smelting could

generate blending/marketing synergies, but we see limited potential operational