Slide 1: Third Quarter Results 2009
October 29, 2009 TSX: LUN OMX: LUMI Third Quarter Results 2009
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 s
Slide 3: Presenter and Questions
Presenter PHIL WRIGHT PRESIDENT & CEO Questions JOAO CARRELO EXEC. VP & COO MARIE INKSTER CFO PAUL CONIBEAR SVP CORP DEVELOPMENT NEIL O’BRIEN SVP EXPLORATION/BUS DEV. Corporate Operations Projects Exploration Growth
Slide 4: Significant Q3 Highlights
Significant Q3 Highlights European operations remain on-track to achieve full year production guidance and our costs remain well controlled. Q3 result below our own expectations Construction activities on Tenke Phase 1 substantially complete. During the quarter, Tenke produced approximately 24,000 t
Slide 5: Financial Position
Financial Position Net debt as at September 30, 2009 is $132.2 million, compared to $110.7 million at the end of the previous quarter. The increase in net debt is related to the cash payments of $24.3 million to fund ongoing work programs at Tenke. Net debt to equity at September 30, 2009 is 4.5%. C
Slide 6: Production & Metal Prices: Q3'09 and Q3'08
Production & Metal Prices: Q3’09 and Q3’08 Production Average LME Prices (tonnes) (US$/lb, US$/t) Q3 2009 Q3 2008 Q3 2009 Q3 2008 Copper 21,351 24,433 2.65 3.49 5,840 7,693 Zinc 16,651 37,067 0.80 0.80 1,757 1,773 Lead 8,961 9,908 0.87 0.87 1,925 1,912 Nickel 1,784 2,155 7.99 8.61 17,614 18,980 . Co
Slide 7: Change in Production: Q2'09 and Q3'09
Change in Production: Q2’09 and Q3’09 Copper Nickel 25,000 671 3,469 2,000 23,992 1,960 34 91 24,000 1,950 1,900 23,000 51 tonnes (dmt) tonnes (dmt) 1,850 22,000 1,784 157 21,351 1,800 21,000 1,750 20,000 1,700 19,000 1,650 Q2 '09 Throughput Grade Recovery Q3 '09 Q2 '09 Throughput Grade Recovery Q3
Slide 8: Cash Costs: Q3'09 and Q3'08
Cash Costs: Q3’09 and Q3’08 Cash cost per lb of primary metal (US cents) (local currency) Q3 '09 Q3 '08 Q3 '09 Q3 '08 Neves-Corvo Gross cost 123 120 83 81 (Local in € cents) Byproduct* (2) (14) (2) (9) Net cost 121 106 81 72 Zinkgruvan Gross cost 79 81 566 519 (Local in SEK) Byproduct* (59) (46) (43
Slide 9: Third Quarter: Financial Results
Third Quarter: Financial Results Selected Quarterly Financial Information: $ Millions Q3 2009 Q3 2008 Sales 171.1 191.9 Operating Earnings 91.8 68.9 Add (deduct): General Exploration (6.5) (7.9) Selected items only Depreciation, Amortization (46.5) (54.3) Forex 2.7 8.2 Interest & bank charges (3.0)
Slide 10: Change in Operating Earnings
Change in Operating Earnings Effect of lower metal price Corporate Operations Projects Exploration Growth
Slide 11: Change in Operating Earnings
Change in Operating Earnings Corporate Operations Projects Exploration Growth
Slide 12: Tenke Project – 24.75% equity interest
Tenke Project – 24.75% equity interest Q3 production: 24,000 tonnes copper and 640 tonnes of cobalt – approx. 18,000 tonnes of copper cathode were sold (full year sales to approximate 55,000 tonnes) Cobalt plant currently being commissioned with ramp-up expected in Q4 Full annual capacity of 115,000
Slide 13: Exploration: Neves-Corvo
Exploration: Neves-Corvo Drillhole From (m) To (m) Length (m) Cu % Zn % NK26 1,230.0 1,252.0 22.0 5.89 0.22 NK26-2 1,143.9 1,155.5 11.6 3.13 0.10 NJ26 1,258.5 1,264.0 5.5 4.20 0.10 NJ26-2 1,122.0 1,154.0 32.0 3.81 1.37 plus 1,173.0 1,196.0 23.0 0.40 7.28 plus 1,214.0 1,250.0 36.0 0.41 5.95 plus 1,26
Slide 14: Outlook
Outlook 2009 production guidance on track: 91,000 tonnes copper (excluding Tenke), 100,000 tonnes zinc, 40,000 tonnes lead and 7,200 tonnes nickel Base metal prices strengthened further during the quarter - the Company remains cautious in the short term and will continue to focus on tight expenditur
Slide 15: Questions
Questions PHIL WRIGHT PRESIDENT & CEO JOAO CARRELO EXEC. VP & COO MARIE INKSTER CFO PAULCONIBEAR SVP CORP DEVELOPMENT NEIL O’BRIEN SVP EXPLORATION/BUS DEV Corporate Operations Projects Exploration Growth