Investor Presentaiton
Zinc prices & hedging strategy
Hedge book extended up to Jan'25, c.3 years; Improving earnings & cash flows visibility
Zinc LME price vs. Befesa's hedging prices (€/t)
Zinc LME 1)
Befesa's hedges²)
Average blended
€2,317
€2,239
wum
€2,275
c.€2,375
c.€2,275
c.€2,425
€2,280
€2,136,
€2,151
2019
2020
2021
Hedging price (€/t)
Zinc content hedged (kt)
€2,317
€2,239
€2,151
92.4
92.4
120.0
Jan-19
Jan-20
Jan-21
Zinc hedges & blended average prices (€/t)
FY 2020
FY 2021
Unhedged
33% or 46kt
@ €1,979/t LME
27% or 45kt
@ €2,544/t LME
•
Hedged
67% or 92kt
€2,239/t
73% or 120kt
@ €2,151/t
Blended³)
€2,136/t
9
Company Presentation - April 2022
€2,275/t
+€139/t/+7% yoy
Jan-22
2022
c.€2,275
155.8
Jan-23
2023
c.€2,375
2024
c.€2,425
151.0
Hedging strategy unchanged:
Hedge book extended up to Jan'25; c.3 years
Jan-24
.
Targeting 60% to 75% of zinc equivalent volume
Befesa providing no collateral
119.6
Jan-25
1) London Metal Exchange (LME) zinc daily cash settlement prices
2) Includes BZ US (former AZR) hedge book for the following periods: 18 Aug'21 to Jan'22: 36.8kt zinc hedged at c. $2,500 (c.€2,160 at FX 1.16); Feb'22-Jan'23: 63.4kt zinc hedged at c.$2,765 (c.€2,400 at FX
1.15); Feb'23-Jan'24: 58.6kt zinc hedged at c.$2,900 (c.€2,520 at FX 1.15); Feb'24-Jul 24: 45.0kt zinc hedged at c.$2,975 (or c.€2,565 at FX 1.16); FX $/€ forwards as of March '22, source: cmegroup.com
3) Zinc blended prices are averages computed based on the monthly effective LME zinc and hedging prices weighted with the respective hedged and non-hedged volumes
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