Boliden hedges copper production up to 2010

In order to secure parts of the payments regarding the investment in Aitik, Boliden has extended its hedging of metal prices by about two years up to 2010. This implies that 70 percent of the planned price exposure of copper is now hedged at an average price of USD 6,394 per tonne for 2008 and USD 5,920 per tonne for 2009. Furthermore, the hedging of metal prices for gold, silver and lead has been extended up to 2010.

"The hedging creates a better balance in our operations from a long-term perspective when we can secure significant parts of the investment in Aitik. At the same time, we have chosen to keep zinc production completely unhedged and be totally exposed to future price trends of zinc," says Jan Johansson, President and CEO of Boliden.

The table below summarises Boliden's metal-price hedging for the period 2007-2009 for copper, lead, gold and silver as at 1 January 2007.


2007 2008 2009
Hedged Hedged Hedged

Metal Price Portion 1) Price Portion 2) Price Portion 2)

Copper, USD/t 3 966 71% 6 394 70% 5 920 70%
Lead, USD/t 1 191 49% 1 315 50% 1 252 50%
Gold, USD/tr. 578 72% 665 70% 702 70%
oz
Silver, USD/ 9,26 51% 13,15 70% 14,59 70%
tr. oz



1) Price exposure for 2007 includes purchase contracts with price-escalator clause pending negotiations (estimated). The result of the final negotiations can influence the hedged portion for 2007.

2) For 2008-2009 the price-escalator clause is not included in the exposure nor the hedged portion. The level of escalators in the

purchase contracts during 2008-2009 may affect the hedged portion.



In conjunction with the implemented price-hedging of metals, Boliden has as previously also chosen to hedge its currency exposure in US dollars through put options. Boliden is subsequently hedged against a weakening of the US dollar vis-à-vis the Swedish krona, while holding an advantage should there be a strengthening. The floors of the currency options portfolio are spread between USD/SEK 6.0 – 7.4.