Boliden acquired Neves-Corvo and Zinkgruvan operation

Lundin Mining has signed a definitive agreement to sell its Neves-Corvo operation in Portugal and Zinkgruvan operation in Sweden to Boliden AB for a total consideration of up to $1.52 billion USD.

Transaction Details

1. Upfront Cash: $1.37 billion based on a cash-free, debt-free enterprise value of $1.3 billion (as of Aug 31, 2024).
2. Contingent Payments: Up to $150 million tied to copper and zinc prices (2025–2027).
3. Closing is anticipated in mid-2025, pending regulatory approvals.

Key information

1. Strengthens Boliden’s zinc and copper production, nearly doubling the concentrate production for both metals over time.
2. Zinc concentrate production to rise by 95%, and copper by 43% (based on 2023 figures).
3. The transaction is expected to immediately enhance Boliden’s earnings and contribute $300–350 million annually to EBITDA over the next five years.

Win-win

The sale can be considered as both sides win-win situation. It strengthens Lundin Mining’s balance sheet, allowing increased focus on its growing South American portfolio, as well as strengths Boliden portfolio. President & CEO Jack Lundin stated: „This marks a strategic step in our journey to become a top-tier, copper-focused mining company.” On the other hand, Boliden’s CEO Mikael Staffas adds: „This acquisition adds two highly cash-generative assets to our portfolio, enabling optimization of our feed mix and unlocking both short- and long-term value. We see significant opportunities for further growth, particularly through near-mine exploration in these attractive mining regions.”

These assets, known for their long-life operations, are expected to thrive under Boliden’s experienced management, benefiting employees and local stakeholders alike.