Boliden operates in a cyclic and capital-intensive industry in which long-term value creation is achieved through high productivity, cost control, technical innovation, and profitable investments. Boliden’s goal is to create value for its shareholders and, at the same time, to take responsibility for people and the environment.
Return on investments
The return on investments shall be a minimum of 10% (NPV)
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 premium.
Net debt/equity ratio
The net debt/equity ratio in an economic upturn shall be approximately 20%
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.
The dividend shall correspond to one third of the net profit.
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.