Financial Performance 2017

Return on investments

The return on investments shall be a minimum of 10% (NPV)

Return on investments graph

Results 2017

The return on capital employed totalled 21% (15). The average per annum during the period from 2013 to 2017 has been 12%. Any investments made shall demonstrate a high return and shall be made in line with both  Boliden’s strategy and available resources. The projects’ internal interest rates shall be higher than Boliden’s weighted capital cost (WACC), adjusted for a risk premium1.

Comments

The WACC before tax is currently nominally set at 12%, which corresponds to 10% in real terms. Calculations for major and long-term projects are normally conducted in real terms. They are based on forecast interest rates, metal prices, exchange rates, inflation and other relevant assumptions drawn from internal analyses and external assessments.

1) The WACC before tax is nominally set at 12%, which corresponds to 10% in real terms. Calculations for major and long-term projects are normally conducted in real terms. They are based on forecast interest rates, metal prices, exchange rates, inflation and other relevant assumptions drawn from internal analyses and external assessments. 

 

Net debt/equity ratio

The net debt/equity ratio in an economic upturn shall be approximately 20%

Return on investments graph

Results 2017

The net debt/equity ratio at the end of 2017 was 11% (32). The decrease since 2016 was due to loan amortisation during the period that was enabled by the profit and cash flow for the year. 

Comments

The net debt/equity ratio in an economic upturn shall be approximately 20 per cent. The aim is to maintain a reasonable financial ability to act in a recession.

Dividend

The dividend shall correspond to one third of the net profit

Return on investments graph

Results 2017

The proposed ordinary dividend is SEK 8.25 (5.25) per share, corresponding to 32.9% (33.9) of the net profit for the year. In addition, an extra payment of SEK 5.75 per share, in the form of an automatic share redemption procedure, has been proposed. The ordinary dividend share during the period from 2013 to 2017 was 33.4% of the aggregate net profit for the period.

Comments

Boliden’s dividend policy states that the dividend shall correspond to approximately one third of the net profit.