Boliden (BDNNY) AI Stock Analysis

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Boliden

(OTC:BDNNY)

Rating:73Outperform

Price Target:

$70.00

▲(12.76%Upside)

Boliden's stock score is driven by strong financial performance and a healthy valuation, given its low P/E ratio. However, mixed technical signals and challenges outlined in the earnings call, such as negative free cash flow and post-quarter market risks, moderate the overall score.

Boliden (BDNNY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$8.86B

Dividend Yield1.47%

Average Volume (3M)538.00

Price to Earnings (P/E)8.2

Beta (1Y)0.87

Revenue Growth18.74%

EPS Growth136.35%

CountryUS

Employees7,500

SectorBasic Materials

Sector Strength63

IndustryIndustrial Materials

Share Statistics

EPS (TTM)0.42

Shares Outstanding136,755,500

10 Day Avg. Volume203

30 Day Avg. Volume538

Financial Highlights & Ratios

PEG Ratio0.72

Price to Book (P/B)1.21

Price to Sales (P/S)0.00

P/FCF Ratio37.41

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$72.00

Price Target Upside15.98% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Boliden Business Overview & Revenue Model

Company DescriptionBoliden AB (BDNNY) is a leading Swedish mining and smelting company that operates within the metals and mining sector. The company is primarily involved in the exploration, extraction, and processing of base metals, including zinc, copper, lead, and precious metals such as gold and silver. Boliden is known for its sustainable practices and commitment to minimizing environmental impact, operating mines and smelters across Sweden, Finland, Norway, and Ireland.

How the Company Makes MoneyBoliden generates revenue through the sale of extracted and processed metals. The company's primary revenue streams include the production and sale of zinc, copper, and lead concentrates, as well as refined metals like gold and silver. Boliden's vertically integrated operations allow it to maximize value by controlling the entire process from mining to smelting. Additionally, Boliden benefits from strategic partnerships and long-term contracts with various industrial clients who demand a consistent supply of these essential metals. The company's financial performance is influenced by global metal prices, production efficiencies, and sustainable practices that enhance operational cost-effectiveness.

Boliden Earnings Call Summary

Earnings Call Date:Jul 18, 2025

(Q2-2025)

% Change Since: 0.00%|

Next Earnings Date:Oct 22, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mix of positive developments such as strong production in Aitik, successful integration of new assets, and robust free cash flow. However, significant challenges like negative currency effects, lower treatment charges, and slower than anticipated mining progress in Garpenberg and Tara were noted.

Q2-2025 Updates

Positive Updates

Record Production in Aitik

Achieved a record production in Aitik, producing at a 40 million tonne pace, which is aligned with the company's guidance.

Strong Free Cash Flow

Reported a free cash flow of SEK 2 billion excluding acquisition proceeds, with significant contribution from insurance income.

ESG Improvements

The company made progress in reducing lost time injuries and sick leave trends are improving post-COVID.

Successful Acquisition and Integration

Integration of Lundin mines (Somincor and Zinkgruvan) is proceeding well, contributing to volume increases.

Strong Smelter Performance

The smelting division delivered close to SEK 600 million in a challenging quarter with low treatment charges.

Balance Sheet Strength

Maintained net debt to equity below 30% post-acquisition, indicating a robust balance sheet.

Negative Updates

Negative Currency Effect

Experienced a negative currency impact of SEK 600 million compared to the previous year and the first quarter.

Zinc and Nickel Challenges

Zinc prices have been lower, and nickel mines are struggling with profitability due to high costs.

Garpenberg Mining Delays

Sill pillar mining in Garpenberg is progressing slower than anticipated, affecting high-grade zinc extraction.

Lower Treatment Charges

Significantly lower treatment charges negatively impacted EBIT, challenging the profitability of smelters.

Production Issues at Tara

Tara mine ramp-up faced delays, with production falling quarter over quarter.

Company Guidance

During the Q2 2025 results presentation, Boliden provided comprehensive guidance, highlighting several key financial metrics and operational updates. The company reported a profit, excluding inventory revaluation, of nearly SEK 1.3 billion, with a notable negative currency effect of SEK 600 million. The quarter experienced planned maintenance costs at an EBIT impact of SEK 400 million, while free cash flow, excluding acquisition proceeds, stood at SEK 2 billion. The integration of two Lundin mines since April 16 contributed positively, though it came with some accounting challenges. Production at Aitik achieved a record level, aligning with the 40 million tonne pace. Boliden's 29% gearing was emphasized as a robust balance sheet position post-acquisition. Capital expenditure was reported at SEK 4.2 billion, consistent with full-year guidance. The company also addressed the impact of fluctuating metal prices and exchange rates, with specific attention to the low zinc prices and problematic copper spot treatment charges (TCs). The outlook remains stable, with reiterated guidance on throughput and grades, except for a slight downward revision of the full-year zinc grade in Garpenberg from 3.3% to 3.1%.

Boliden Financial Statement Overview

Summary

Boliden demonstrates strong financial health with consistent revenue growth and robust profitability. The low debt-to-equity ratio indicates prudent debt management. However, there are areas for improvement in EBIT growth and free cash flow conversion.

Income Statement

Very Positive

Boliden demonstrates a strong income statement with consistent revenue growth, evidenced by a 2.96% increase in the latest TTM period. The company maintains robust profitability, with a gross profit margin of 15.73% and a net profit margin of 12.06%. The EBIT margin stands at 13.82%, while the EBITDA margin is an impressive 24.28%, highlighting operational efficiency. However, a slight decline in EBIT from the previous year suggests potential areas for improvement.

Balance Sheet

Positive

The balance sheet shows a solid equity foundation with a debt-to-equity ratio of 0.24, indicating low financial leverage and prudent debt management. The return on equity is strong at 16.14%, reflecting effective use of shareholder funds. However, the equity ratio of 57.89% suggests room for enhancing asset utilization. Overall, the balance sheet remains stable with manageable liabilities.

Cash Flow

Positive

Boliden's cash flow performance is commendable, with a positive free cash flow growth rate of -14.00%, indicating resilience despite challenges. The operating cash flow to net income ratio of 1.51 underscores strong cash generation capabilities. The free cash flow to net income ratio is 0.21, suggesting room for improvement in converting earnings into cash flow. Overall, cash flow management appears robust.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	89.21B	78.55B	86.44B	68.64B	56.32B
Gross Profit	12.90B	10.74B	18.15B	12.93B	10.80B
EBITDA	20.58B	14.57B	22.07B	16.27B	14.62B
Net Income	10.02B	6.07B	12.41B	8.70B	6.80B
Balance Sheet
Total Assets	116.19B	101.96B	96.38B	80.55B	72.49B
Cash, Cash Equivalents and Short-Term Investments	7.05B	4.98B	12.16B	8.25B	5.06B
Total Debt	16.51B	14.58B	11.19B	6.16B	6.15B
Total Liabilities	51.18B	45.54B	38.05B	29.67B	26.85B
Stockholders Equity	64.99B	56.40B	58.31B	50.87B	45.63B
Cash Flow
Free Cash Flow	2.67B	-3.35B	6.37B	7.16B	4.96B
Operating Cash Flow	17.66B	12.18B	16.40B	13.14B	11.26B
Investing Cash Flow	-15.00B	-15.54B	-10.07B	-6.00B	-6.30B
Financing Cash Flow	-590.00M	-3.83B	-2.42B	-3.96B	-1.27B

Boliden Technical Analysis

Technical Analysis Sentiment

Negative

Last Price62.08

Price Trends

50DMA

63.00

Negative

100DMA

64.25

Negative

200DMA

63.14

Negative

Market Momentum

MACD

-0.04

Positive

RSI

46.61

Neutral

STOCH

0.15

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BDNNY, the sentiment is Negative. The current price of 62.08 is below the 20-day moving average (MA) of 62.38, below the 50-day MA of 63.00, and below the 200-day MA of 63.14, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 46.61 is Neutral, neither overbought nor oversold. The STOCH value of 0.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BDNNY.

Boliden Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RIO	76 Outperform	$100.82B	8.43	21.04%	7.54%	-0.28%	15.20%
BHP	76 Outperform	$129.09B	11.54	26.13%	3.81%	-3.15%	54.08%
BDNNY	73 Outperform	$8.86B	8.17	16.91%	1.47%	18.74%	136.35%
VALE	70 Neutral	$41.85B	7.22	15.98%	15.19%	-9.59%	-25.35%
MP	63 Neutral	$9.57B	―	-9.62%	―	4.63%	-3189.81%
Sector *	62 Neutral	$10.14B	9.96	0.09%	2.90%	2.26%	-33.42%
NEXA	61 Neutral	$643.65M	―	-16.64%	2.08%	12.30%	42.72%

* Basic Materials Sector Average

Performance Comparison

BDNNY

Boliden

61.88

3.34

5.71%

BHP

BHP Group

51.84

-1.24

-2.34%

RIO

Rio Tinto

60.03

0.21

0.35%

VALE

Vale SA

9.77

-0.37

-3.65%

NEXA

Nexa Resources SA

4.77

-2.52

-34.57%

MP Materials

63.22

48.93

342.41%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 16, 2025