Slide 1: Corporate Update September 2011
TSX: LUN OMX: LUMI CORPORATE UPDATE September 2011
Slide 2: Cautionary Statements
Cautionary Statements Caution Regarding Forward Looking Statements This presentation contains forward-looking statements. These forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events. These forward- looking statements are
Slide 3: Multi-Operation Copper & Zinc Producer
Multi-Operation Copper & Zinc Producer • Trades on TSX (LUN) and OMX (LUMI) • 582 million shares outstanding • Market Cap - approx US$ 3.2 Billion (Aug. 31, 2011) • Significant leverage to copper and zinc markets • 4 wholly owned base metals mines in Europe: • Neves-Corvo, Zinkgruvan, Aguablanca and
Slide 4: Corporate Strategy
Corporate Strategy • Near term focus • improving operations • expansion studies • Adding value through exploration • Medium term objectives – growth through transactions • Maintaining and continuing to build a strong balance sheet 4
Slide 5: Solid Financial Position
Solid Financial Position • Net Cash at June 30, 2011 of $308 million, • + $149 million since 31 December 2010 • Operating cash flow for Q2/11 of $231.9 million • Undrawn debt facility of $300 million • Cash returns from Tenke expected in Q3 2011 • Strong balance sheet and cash flow provides great fl
Slide 6: 2011 Production Outlook
2011 Production Outlook (contained tonnes) 2011 Guidance Tonnes C1 Cost Neves-Corvo Cu 72,000 $1.65 Zn 6,000 Zinkgruvan Zn 78,000 $0.21 Pb 36,000 Cu 3,400 Galmoy Zn 28,000 (in ore) Pb 8,000 Total: Ex. Tenke Cu 75,400 Zn 112,000 Pb 44,000 Tenke: 24.0% attributable share Cu 30,400 $0.97 Neves-Corvo Zi
Slide 7: Neves-Corvo
Neves-Corvo • Located in southern Portugal. Underground copper /zinc mine • Mineral reserves as at June 30, 2011: Copper-rich ores: 27.7 million tonnes @ 3.0% Cu; 0.9% Zn Zinc-rich ores: 23.1 million tonnes @ 0.4% Cu; 7.3% Zn • M&I resources (inclusive of reserves) as at June 30, 2011: Copper-rich o
Slide 8: Neves-Corvo – Current Growth Initiatives
Neves-Corvo – Current Growth Initiatives Zinc Expansion – 50,000 tpa Zn • Startup on time, on budget • Processing copper ore for balance of year - better margins Lombador and Semblana Development • Semblana and Lombador development must be coordinated. Underground materials handling study just initi
Slide 9: Neves-Corvo Concession - Multiple Growth Projects
Neves-Corvo Concession - Multiple Growth Projects Santa Barbara Shaft Surface Zambujal Graça Neves 1.2 km Lombador Corvo South Lombador North Underground Development Semblana Lombador East 9
Slide 10: Zinkgruvan
Zinkgruvan • Located west of Stockholm, Sweden. Underground zinc/lead/copper mine • Mineral reserves as at June 30, 2011: Zinc-rich ores: 10.7 million tonnes @ 9.2% Zn; 4.4% Pb Copper-rich: 2.8 million tonnes @ 2.6% Cu; 0.4% Zn • Lowest quartile zinc producer – 2011 guidance $0.21/lb Location • Swed
Slide 11: Zinkgruvan
Zinkgruvan • Copper plant being converted to treat zinc ore for additional flexibility, lifting zinc capacity to 100,000 tpa • New ramp from surface highly successful. Mine now out pacing mill capacity • Debottlenecking to add mill capacity. Target 1.3 Mtpa to 1.5 Mtpa • Resource drilling being expa
Slide 12: Aguablanca
Aguablanca • Located in southern Spain. Open pit nickel-copper mine • Mineral reserves as at June 30, 2010: 7.4 million tonnes @ 0.6% Ni; 0.5% Cu • Restart in Q3/12 with ~€40M investment (operating expenditure) plus €4M in capital for new ramp • High grade underground study in progress Location • Sp
Slide 13: Tenke Fungurume
Tenke Fungurume • Located in Katanga Province, DRC: open-pit copper/cobalt mine operated by Freeport • Exceptional in quality, size, life, growth potential • Multiple deposits - One world’s largest high grade copper assets • Mineral reserves as at Dec 31, ’10 145.1 million tonnes @ 2.8% Cu; 0.3% Co
Slide 14: Tenke Fungurume: Fully-Funded Growth on Horizon
Tenke Fungurume : Fully-Funded Growth on Horizon • Now in third year of production (commenced March 2009) • FCX production forecast of 126,500 tonnes in 2011 • Phase 2 Study nearing completion. Early works advancing to enable 200 k copper production in 2013 • Cash returns attributable to Lundin in 1
Slide 15: Tenke Fungurume: An Exceptional World-Class Mine
Tenke Fungurume: An Exceptional World-Class Mine Potential to be Among Top 5 Copper Mines in the World Highest Grade Large Scale Open Pit in Production A Rare Asset 1 Prod’n estimates based on 2010 results (source: Wood Mackenzie). Tenke expansion potential assumes 500ktpa Cu per LUN internal
Slide 16: 2011 Exploration Program – Lundin Assets
2011 Exploration Program – Lundin Assets Exploration spend increased to $46 m in 2011 (from $25 m -2010) • Portugal - Semblana drilling continues to intersect thick sections of high-grade Cu mineralization • 3D seismic survey completed at Neves-Corvo. Preliminary results identified 18 new high poten
Slide 17: Future Growth & Priorities
Future Growth & Priorities • Tenke expansion - Phase II: 200k tpa production in 2013 • Neves-Corvo: Optimize Lombador development in conjunction with Semblana exploitation plan Existing operations optimization • Zinkgruvan - Mine life extension and zinc plant capacity increase • Aguablanca – Pit
Slide 18: Lundin Mining
Lundin Mining • High quality, long life of mine reserves • Exposure to a unique, world-class copper mine – Tenke • Fully funded growth • Robust balance sheet and strong ongoing cash flows • High leverage to copper and zinc • Compelling valuation 18
Slide 19: Thank You
TSX: LUN OMX: LUMI THANK YOU