Boliden to Acquire Kevitsa Mine in Finland
10 March 2016 - 5:41PM
Business Wire
Regulatory News:
Boliden today announces that it has entered into an agreement
with First Quantum to acquire the Kevitsa nickel-copper-gold-PGM
mine in Northern Finland. The total consideration on a debt free
basis is USD 712 million in cash. The agreement is subject to
approval by competition authorities.
“This is an attractive opportunity to acquire a high-quality
mine with excellent operational and geographical fit with Boliden.
The acquisition of Kevitsa is consistent with Boliden’s growth
strategy. Kevitsa started production in the end of 2012 and is an
early stage mine, which we believe can provide good synergies with
our existing business in mining, concentrating, smelting and
regional exploration. It also establishes a nickel feed base load
for our Harjavalta smelter”, says Lennart Evrell, President and
CEO, Boliden.
“The timing of the acquisition fits us well. Boliden has
executed substantial expansion projects in recent years and is
ready to take on a new major project. Together with the Kokkola and
Harjavalta smelters and the Kylylahti mine, the acquisition of
Kevitsa will expand Boliden’s platform in Finland, an attractive
geological region”, Lennart Evrell concludes.
The Kevitsa mine is a nickel-copper-gold-Platinum Group Metals
(PGM) mine located in northern Finland. In 2015, nickel and copper
accounted for roughly 40% each of net revenue, with gold, PGM and
cobalt accounting for the remainder. The mine processed 6.7 Mtonnes
of ore in 2015. The mine has 380 employees and around 200
contractors.
In 2015, production was 8,805 tonnes of nickel, 17,204 tonnes of
copper, 12,847 ounces of gold, 31,899 ounces of platinum and 25,196
ounces of palladium. EBITDA during 2015 amounted to USD 42 million
and EBIT was USD -6 million.
The total consideration for the transaction is USD 712 million
on a debt free basis, paid in cash, together with adjustments for
working capital and net debt at closing. The transaction will be
financed with a committed 24 month bank facility provided by
Nordea. Boliden will evaluate a range of refinancing options for
this bank facility. The transaction is subject to customary
approval by competition authorities in Finland, Sweden and
Germany.
Goldman Sachs International is acting as sole financial adviser
to Boliden in connection with the acquisition.
Conference call today, 10 March at 08.45 (CET)
Boliden will hold a conference call today, 10 March at 08.45
(CET) with President and CEO Lennart Evrell, and President Boliden
Mines, Mikael Staffas. The call will also be available as an
audiocast on www.boliden.com.
Telephone no: Sweden: +46 8 5199 9355, UK: +44 2031 940 550, US:
+1 8552 692 605
The information provided comprises information that Boliden is
obliged to present pursuant to the Swedish Securities Market Act
and/or the Swedish Financial Instruments Trading Act. The
information was released for publication on 10 March 2016, at 07:30
CET.
Boliden is a metals company with a commitment to sustainable
development. Our roots are Nordic, but our business is global. The
company’s core competence is within the fields of exploration,
mining, smelting and metals recycling. Boliden has a total of
approximately 4,900 employees and a turnover of SEK 40 billion. Its
shares is listed on NASDAQ OMX Stockholm, segment Large Cap.
www.boliden.com
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BolidenSophie Arnius, +46 8 610 15 23, +46 70 590
8072Director Investor Relations and Acting Press Officer
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