Slide 1: Third Quarter Results 2012
TSX: LUN OMX: LUMI Third Quarter Results 2012 October 25, 2012
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: Presenters and Questions
Presenter PAUL CONIBEAR PRESIDENT & CEO Questions MARIE INKSTER SR. VP & CFO STEVE GATLEY VP TECHNICAL SERVICES 3
Slide 4: Q3/12 Operational Highlights
Q3/12 Operational Highlights Production & Costs at All Key Mines In-line or Better Than Expected: Copper: Annual copper production at Neves-Corvo expected to be near the high-end of the 2012 guidance range. Zinc: Production remained strong due to high grades. Annual zinc production at Zinkgruvan exp
Slide 5: Q3/12 Financial Highlights
Q3/12 Financial Highlights Revenues: $160m vs. $146m in Q3/11 Reported Net Income: $38m ($0.07 p/s) vs. $16m ($0.03 p/s) in Q3/11 Adjusted Net Income: $46m ($0.08 p/s) vs. $25m ($0.04 p/s) in Q3/11 Operating CF (b/f non-cash WC) : $36m ($0.06 p/s) vs. $29m ($0.05 p/s) in Q3/11. Excludes: Attributabl
Slide 6: Change in Production: Q3/12 vs. Q3/11
Change in Production: Q3/12 vs. Q3/11 Tonnes Copper Tonnes Excluding Tenke 9,947 t attributable share Lead Tonnes Zinc 6
Slide 7: Cash Costs – Q3/12 & YTD
Cash Costs – Q3/12 & YTD Cash Cost/lb (US dollars) Cash Cost/lb (US dollars) Three months ended Nine months ended September 30 September 30 Current 2012 2012 2011 2012 2011 Guidance Neves-Corvo Gross cost $2.15 $2.50 $1.95 $2.06 By-product* -$0.28 -$0.15 -$0.27 -$0.09 Net Cost $/lb - Cu $1.87 $2.35
Slide 8: Normalized Earnings
Normalized Earnings Three months ended Nine months ended September 30, September 30, $ Millions 2012 2011 2012 2011 Reported Net Income 37.9 16.4 140.3 147.6 Foreign exchange 7.5 (19.5) 1.6 (3.3) Project and corporate development 7.4 1.1 11.9 6.8 Mark to market on securities (2.5) 6.1 1.5 5.7 Tax (o
Slide 9: Operations and Outlook
Operations and Outlook 9
Slide 10: 2012 Guidance – Moderately Improved From Last Quarter
2012 Guidance – Moderately Improved From Last Quarter Prior Guidance Revised Guidance Tonnes C1 Cost a Tonnes C1 Cost a Neves-Corvo Cu 55,000 – 60,000 $ 1.70 55,000 – 60,000 $ 1.70 Zn 25,000 – 30,000 25,000 – 30,000 Zinkgruvan Zn 77,000 – 83,000 $ 0.20 77,000 – 83,000 $ 0.15 Pb 34,000 – 39,000 34,00
Slide 11: Neves-Corvo – Q3/12 Results
Neves-Corvo – Q3/12 Results • Production of 14,012 tonnes copper at C1 costs of $1.87/lb Cu • Copper grades at 2.7% and recovery rate of 86% • Zinc production of 5,834 tonnes – recoveries approaching 80% • As Cu prices remain strong – continue to mine significant “out of reserve” material helping fi
Slide 12: Neves-Corvo – Outlook
Neves-Corvo – Outlook • Mine planning being optimized focusing on earlier copper production from Lombador in 2013, in preference to zinc • Minimum capital case to access Semblana by ramp from Zambujal continues to advance with high priority • Underground materials handling studies advancing to suppo
Slide 13: Zinkgruvan – Q3/12
Zinkgruvan – Q3/12 • Production of 20,053 tonnes zinc at C1 costs of $0.08/lb Zn • Excellent zinc and lead grades, averaging 10.1% Zn and 4.7% Pb for the quarter • YTD zinc, lead and copper production were at all-time highs and significantly exceed first 9 months 2011 production for all metals • YTD
Slide 14: Zinkgruvan – Outlook
Zinkgruvan – Outlook • Prefeasibility level studies completed assessing merits of replacing front end crushing and grinding circuits • Preliminary results indicate capital investment in the range of $50m over 24 months, could enable increased throughput towards 1.5Mtpa for combined zinc and copper 1
Slide 15: Aguablanca – Q3/12 Update and Outlook
Aguablanca – Q3/12 Update and Outlook • Production resumed in August for a total investment of €44M • Produced 693 tonnes of Ni and 697 tonnes of Cu during quarter • Cash cost guidance to be provided in December once plant restart ramp-up is completed • Slope stability monitoring – south pit wall is
Slide 16: Tenke – Q3/12 Results
Tenke – Q3/12 Results • Milling facilities continue to perform well - averaging 13.6ktpd in Q3/12 • Record quarterly copper production of 41,446 tonnes @ $1.23/lb • Equity income of $25m for the quarter • Attributable operating CF of $26m for the quarter ($107m YTD) was retained by the operation to
Slide 17: Tenke Expansion Plans
Tenke Expansion Plans Phase II - On Schedule & On Budget • Expansion remains on budget and on schedule for substantial completion by end ’12 • 2012 attributable capital investment revised downward to $180m (from $210m) for internal planning purposes • Cash call of $15m during quarter Future Possible
Slide 18: Tenke Copper Production Outlook
Tenke Copper Production Outlook ?? Phase 4 Expansion >270 Phase 3 200 Expansion Phase 2 120 127 140 Expansion 70 Note: Production guidance for 2013 is a LUN estimate and does not represent official guidance by operator Freeport McMoran Copper and Gold Inc. (“Freeport”) 18
Slide 19: Fully-Funded Organic Growth Profile
Fully-Funded Organic Growth Profile • Internal Asset Growth Profile Based on Current Guidance (Mid-point of guidance range graphed below, not including any expansions at Tenke past Phase II) 19
Slide 20: Lundin Mining - Summary
Lundin Mining - Summary • Portfolio of high quality, long-life mines that are performing well • A stake in Tenke - a unique, world-class producing copper mine with excellent growth potential • Strong balance sheet and operating cash flows • Fully-funded organic growth profile • Exploration upside on
Slide 21: Questions & Answers
TSX: LUN OMX: LUMI Questions & Answers