Slide 1: Scotiabank Mining Conference
Scotiabank Mining Conference December 3, 2019 TSX: LUN Nasdaq Stockholm: LUMI Candelaria, Atacama Region, Chile
Slide 2: Cautionary Statements
Cautionary Statements Caution Regarding Forward-Looking Information and Non-GAAP Performance Measures Certain of the statements made and information contained herein is “forward-looking information” within the meaning of applicable Canadian securities laws. All statements other than statements of hi
Slide 3: Lundin Mining Our Strategy
Lundin Mining Our Strategy Operate, upgrade and grow a base metals portfolio that provides leading returns for our shareholders throughout the cycle • copper dominant • competitive cost position Eagle Zinkgruvan • low-risk mining jurisdictions, Nickel-Copper-PGMs in U.S.A. Zinc-Lead-Copper in Sweden
Slide 4: Responsible Mining
Responsible Mining Safety Total Recordable Injury Frequency • overall safety performance continues to trend better per 200,000 person hours worked • top-third performance of Western world mines Social 3.5 • leading ISS Environment & Social Quality Scores • strong stakeholder engagement and increased
Slide 5: Increasing Production Profile (kt)
Increasing Production Profile1 (kt) Copper Zinc Nickel 294 - 318 227 - 237 15 - 18 15 - 18 18 272 - 296 +50% +50% 12 - 14 172 - 187 227 - 245 including 180-200 koz 149 - 157 gold in 2020-212 152 200 2018A 2019 2020 2021 2018A 2019 2020 2021 2018A 2019 2020 2021 1. Production profile based on certain
Slide 6: Notable Recent Events
Notable Recent Events 1 Sale of Non-Core Interest in Kokkola Cobalt Refinery • Freeport Cobalt joint venture sold its non-core stake in Kokkola cobalt refinery and related cobalt cathode precursor business • total cash consideration of approximately $200M, 30% attributable to Lundin Mining • receive
Slide 7: Q1-Q3/19 Summary Results
Q1-Q3/19 Summary Results Production Payable Sales 168,367 t of copper 160,027 t of copper 99,000 oz of gold 90,000 oz of gold 112,590 t of zinc 92,579 t of zinc 10,843 t of nickel 7,515 t of nickel 22,451 t of lead 17,738 t of lead $1,324 M in Sales by Metal Diversified in Established Jurisdictions1
Slide 8: Candelaria
Candelaria Step-Change Increase in Production and Cash Cost Reduction • 21% copper production increase and 25% cash cost reduction in Q3/19 over Q2/19 as copper head grade increased with more ore sourced from the open pit Copper Production & Cash Cost Outlook (100% basis; kt & $/lb Cu, net of by-pro
Slide 9: Candelaria Copper Production Profile (kt)
Candelaria Copper Production Profile1 (kt) 190 190 192 194 184 185 175 175 171 175 167 155 156 160 152 151 146 135 136 114 96 84 69 45 10 2016A 2017A 2018A 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 December 2018 Technical Report Dec
Slide 10: Chapada
Chapada Strong First Operating Quarter Post-Acquisition • acquisition closed July 5, Copper, Gold Production & Cash Cost Outlook 2019. Cash consideration (100% basis; kt Cu, koz Au & $/lb Cu, net of by-product credits) paid was $757M net of cash acquired and WC adjustments • produced 17,645 t of 90-
Slide 11: Chapada Production Profile
Chapada Production Profile1 120 100 kt of copper / koz of gold 80 Metal Production 60 40 20 0 2020 2021 2022 2023 2024 2031 2032 2033 2034 2035 2036 2043 2044 2045 2046 2047 2019 2025 2026 2027 2028 2029 2030 2037 2038 2039 2040 2041 2042 2048 2049 2050 Copper Gold 1. Production shown is based on th
Slide 12: Neves-Corvo
Neves-Corvo Strong Mine and Mill Performance • 25% copper production increase and 15% cash cost reduction in Q3/19 over Q2/19 on Copper, Zinc Production & Cash Cost Outlook improved copper recoveries and copper plant throughput (kt & $/lb Cu, net of by-product credits) • on-track to deliver improved
Slide 13: Neves-Corvo – ZEP Underground Construction
Neves-Corvo – ZEP Underground Construction in Q3/19 • development of lower stopes underway with first sublevel accesses ongoing in lower Lombador orebody • materials handling civil works progressed well and are nearing completion • conveyor system mechanical and electrical equipment installations ar
Slide 14: Neves-Corvo – ZEP Surface Construction
Neves-Corvo – ZEP Surface Construction in Q3/19 work continued with focus on: • mechanical and electrical installation of materials handling system • backfill cyclone station installed • SAG mill trunnion, gear ring and drive system installation complete • tailings and water supply piping systems •
Slide 15: Eagle
Eagle Robust Operating Performance • Q1-Q3/19 production of 10,843 t of nickel and 10,671 t of copper at cash cost of $2.54/lb nickel. • Well positioned to achieve improved 2019 production guidance Nickel, Copper Production & Cash Cost Outlook (kt & $/lb Ni, net of by-product credits) • 2020 nickel
Slide 16: Zinkgruvan
Zinkgruvan On-Track to Deliver Full-Year Guidance • produced 16,796 t of zinc, 6,291 t of lead and 1,120 t of copper at a cash cost of $0.42/lb zinc in Q3/19 • copper production was higher than recent quarters on a combination of higher mill Zinc Production & Cash Cost Outlook throughput, head grade
Slide 17: 2020 Capital & Exploration Expenditure Guidance
2020 Capital & Exploration Expenditure Guidance Capital Expenditures1 Aggressive In and Near-Mine Exploration • Candelaria capital expenditures to decrease compared to • $65M to be invested in 2020 in exploration programs 2018 & 2019 reinvestment years as low-risk initiatives to increase value of op
Slide 18: Lundin Mining: High Quality, Meaningful Scale
Lundin Mining High Quality Meaningful Scale Financial Strength Competitive Mines Growth Oriented • strong margins at all operations • materially increasing copper and zinc • proven track record for rigorous investment production profile approach, focused on value creation • demonstrated operational
Slide 19: Appendices
Appendices lundin mining 19
Slide 20: Responsible Mining
Responsible Mining We recognize the important role of the metals we produce and are committed to mining these metals responsibly We demonstrate this commitment through living our core values of Safety, Respect, Integrity and Excellence in all aspects of our decision-making Lundin Mining has been rep
Slide 21: Candelaria Mine Fleet Reinvestment
Candelaria Mine Fleet Reinvestment Significantly Increased Production Profile and Extended Mine Life on Exploration Success • 20-year LOM when the open pit began production in 1994; most open pit equipment dated back to when operation opened • Mineral Reserve estimate now supports mine life to 2040
Slide 22: Candelaria Mill Optimization Project
Candelaria Mill Optimization Project Low-Risk Investments to Increase Metal Production, Reduce Costs and Improve Safety • primary crusher motor upgrade • ball mill re-powering; pebble circuit upgrade; cyclone and feed pump upgrades • flotation circuit upgrades • front-end desalination plant and pipe
Slide 23: Candelaria Underground Mine Expansions
Candelaria Underground Mine Expansions Significant Underground Exploration Success Under Lundin Mining Ownership • total estimated Candelaria underground Mineral Reserves1 now 148.2Mt at 0.85% copper • Candelaria North and South Sectors continues to show significant exploration potential Increasing
Slide 24: Candelaria Complex – Mineral Resources and Mineral Reserves
Candelaria Complex – Mineral Resources and Mineral Reserves1 Ownership 80% Location Region III, Chile Mine life 22 years 2019 exploration budget ~$14M P&P Copper Mineral Reserves 3,604 kt contained (663,696 kt at 0.5%) M&I Copper Mineral Resources 6,495 kt contained (998,635 kt at 0.7%) Inferred Cop
Slide 25: Chapada – Mineral Resources and Mineral Reserves
Chapada – Mineral Resources and Mineral Reserves1 Ownership 100% Location Goiás State, Brazil Mine life 31 years 2019 exploration budget ~$4M P&P Copper Mineral Reserves 1,757 kt contained (738,789 kt at 0.24%) M&I Copper Mineral Resources 2,590 kt contained (1,090,829 kt at 0.23%) Inferred Copper M
Slide 26: Eagle Mine – Mineral Resources and Mineral Reserves
Eagle Mine – Mineral Resources and Mineral Reserves1 Ownership 100% Location Michigan, USA Mine life 5 years 2019 exploration budget ~$10M P&P Nickel Mineral Reserves 108 kt contained (4,119 kt at 2.6%) M&I Nickel Mineral Resources 132 kt contained (4,022 kt at 3.3%) P&P Copper Mineral Reserves 91 k
Slide 27: Neves-Corvo – Mineral Resources and Mineral Reserves
Neves-Corvo – Mineral Resources and Mineral Reserves1 Ownership 100% Location Alentejo region, Portugal Mine life +10 years 2019 exploration budget ~$7M P&P Zinc Mineral Reserves 2,214 kt contained (29,669 kt at 7.5%) M&I Zinc Mineral Resources 4,958 kt contained (71,444 kt at 6.9%) Inferred Zinc Mi
Slide 28: Zinkgruvan – Mineral Resources and Mineral Reserves
Zinkgruvan – Mineral Resources and Mineral Reserves1 Ownership 100% Location Askersund, Sweden Mine life +10 years 2019 exploration budget ~$18M P&P Zinc Mineral Reserves 803 kt contained (10,816 kt at 7.4%) M&I Zinc Mineral Resources 1,633 kt contained (20,275 kt at 8.1%) Inferred Zinc Mineral Reso
Slide 29: NI 43-101 Compliance
NI 43-101 Compliance Unless otherwise indicated, Lundin Mining Corporation (the “Company”) has prepared the technical information in this presentation including Mineral Reserve and Mineral Resource estimates (“Technical Information”) based on information contained in the technical reports and news r
Slide 30: www.lundinmining.com
www.lundinmining.com | TSX: LUN | Nasdaq Stockholm: LUMI