Extraordinary general meeting of LKAB – decision on new financial targets

October 27, 2021

LKAB’s owner, the Swedish state, adopted new financial targets for the company at an extraordinary general meeting held on 27 October 2021.

LKAB’s financial targets relate to profitability, capital structure and dividend policy. Previous targets, which were adopted at the company’s Annual General Meeting in 2017, have been revised in the light of LKAB’s new strategy. 

LKAB is facing the greatest transformation in the company’s 130-year history and one of Sweden’s biggest industrial investments ever. The new Group strategy sets out three main trails for the transformation: 

•    New global standard for mining operations. We will set a new world standard for mining through digitisation, automation, electrification, new working methods and carbon-free production.
•    Carbon-free sponge iron from hydrogen technology. In switching from iron ore pellets to carbon-free sponge iron we are taking an important step forward in the value chain, increasing the value of our products and at the same time giving our customers direct access to carbon-free iron for steelmaking.
•    Extraction of critical minerals from mining waste. With the aid of fossil free technology, we will extract strategically important earth elements and phosphorus for mineral fertiliser from today’s mining waste.

To support the strategy and increase flexibility in the upcoming transformation, LKAB’s owner has today adopted updated financial targets at an extraordinary general meeting. LKAB’s new financial targets are (previous targets in brackets):

•    Capital structure: Net debt/equity ratio <0.6 times, defined as financial net indebtedness/equity (previously 0.0–0.3).

•    Profitability: Return on equity shall exceed 9 percent, defined as profit for the year/average equity (previously 12 percent).

•    Dividend: Ordinary dividend shall amount to 40–60 percent of profit for the year (unchanged).

Contact: Niklas Johansson, Senior Vice President Communication and Climate LKAB. Tel: +46 (0)10-144 52 19. E-mail: niklas1.johansson@lkab.com

LKAB is an international mining and minerals group that offers sustainable iron ore, minerals and special products. We are committed to developing carbon-free processes and products by 2045, leading the transformation of the iron and steel industry. Since 1890 we have developed through unique innovations and technological solutions and are driven forward by more than 4,500 employees in 12 countries. In 2020, the LKAB group had sales of about SEK 34 billion. www.lkab.com