Boliden Limited reports second quarter 2000 results

BOLIDEN LIMITED REPORTS SECOND QUARTER 2000 RESULTS (All dollar amounts are in United States dollars) Overview * Executive management committee established following resignation of President and Chief Executive Officer. * Capital management program and strategic review of operations initiated. Growth initiatives placed on hold. * Rönnskär +200 expansion project nears completion and remains on budget. TORONTO, CANADA (July 26, 2000) - Boliden Limited today reported its operating results for the second quarter and the first half of 2000. The Company reported an operating loss of $34.7 million for the quarter and $41.1 million for the half, compared with an operating loss of $28.8 million for the second quarter and $50.2 million for the first half of 1999. The principal reason for the change is lower smelter production offset by higher metal prices and mining production. The operating loss for the quarter compares with an operating loss of $6.4 million for the first quarter of 2000. After accounting for interest expense and income taxes, the Company reported a net loss of $34.4 million or $0.17 per common share for the quarter and $52.7 million or $0.34 per common share for the half, compared with a net loss of $31.9 million or $0.31 per common share for the second quarter and $54.8 million or $0.52 per common share for the first half of 1999. The net loss for the quarter compares with a net loss of $18.3 million or $0.18 per common share for the first quarter of 2000. The net loss for the quarter does not include $9.6 million in adjustments to reflect reductions in the Company's obligations under its defined benefit plans for its Swedish salaried employees. These adjustments will be taken when the reductions are realized in accordance with Canadian GAAP. Cash used by operations before non-cash working capital changes was $15.6 million or $0.07 per common share for the quarter and $4.5 million or $0.03 per common share for the half, compared with cash used by operations of $10.7 million or $0.10 per common share for the second quarter and $16.6 million or $0.15 per common share for the first half of 1999. The cash used by operations before non-cash working capital changes for the quarter compares with cash provided by operations of $11.2 million or $0.10 per common share for the first quarter of 2000. CORPORATE DEVELOPMENTS On June 19, 2000, the Company announced that its President and Chief Executive Officer, Anders Bülow, had resigned effective September 30, 2000 after having completed his three-year commitment to the Company. The Company also announced that Thomas Cederborg (then Senior Vice-President, Smelting Operations) had been appointed Executive Vice-President and Chief Operating Officer and Petter Traaholt (then Senior Vice-President and Chief Financial Officer) had been appointed Executive Vice-President and Chief Financial Officer. Mr. Cederborg is responsible for the Company's mining, smelting, fabrication, technology and exploration activities and Mr. Traaholt is responsible for the Company's corporate financial, tax, internal control, treasury and administration activities. An executive management committee has also been formed composed of two members of the Company's board of directors, Chairman, Fred Telmer, and Deputy Chairman, Robert McDermott, and Messrs. Cederborg and Traaholt. The executive management committee initiated a capital management program aimed at restoring the Company's financial strength and operating flexibility. The capital management program includes reducing costs, increasing productivity, postponing discretionary expenditures, securing partners for those operations that require non-discretionary expenditures and selling non- strategic assets. All growth initiatives have been stopped for the foreseeable future. The executive management committee also initiated a strategic review of all the Company's operations. The strategic review will result in the development of a revised long-term plan for the Company scheduled for later in the year. The capital management program and the strategic review may affect the carrying value of certain of the Company's assets. The Company has retained financial advisors to assist it in implementing the capital management program and carrying out the strategic review. In early July 2000, the Company announced a number of cost cutting measures related to the capital management program. The Company will transfer many of the activities currently being carried out in its Toronto office to Sweden and many of the activities currently being carried out at its Stockholm office to its operating units. As a result of these transfers, both offices will be downsized The Company's registered office will continue to be in Toronto and the Company's shares will continue to be listed on the Toronto Stock Exchange and the OM Stockholm Exchange. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/07/27/20000727BIT00010/bit0001.doc http://www.bit.se/bitonline/2000/07/27/20000727BIT00010/bit0002.pdf