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 15% (10). The average per annum return during the period from 2012 to 2016 has been 10%. Any investments made shall demonstrate a high return and shall be made in line with both Boliden’s strategy and available returns. The projects’ internal interest rates shall be higher than Boliden’s weighted capital cost (WACC), adjusted for a risk premium.
The WACC before tax is currently nominally set at 12%, which corresponds to 10% in real terms. Calculations for major and long-term projects are normally conducted in real terms. They are based on forecast interest rates, metal prices, exchange rates, inflation and other relevant assumptions drawn from internal analyses and external assessments.
Net debt/equity ratio
The net debt/equity ratio in an economic upturn shall be no higher than 20%
The net debt/equity ratio at the end of 2016 was 32% (23). The increase since 2015 was due to the acquisition of Kevitsa.
The dividend shall correspond to one third of the net profit.
The proposed dividend is SEK 5.25 (3.25) per share, corresponding to 33.9% (33.7) of the net profit for the year. The dividend share during the period from 2012 to 2016 was 33.8% of the aggregate net profit for the period.