Slide 1: 2015 First Quarter Results
2015 First Quarter Results April 30, 2015
Slide 2: Cautionary Statements
Cautionary Statements Caution Regarding Forward-Looking Information This presentation contains forward‐looking information, including, but not limited to, guidance on estimated annual production and cash costs. This forward‐looking information is not based on historical facts, but rather on current
Slide 3: Presenters
Presenters PAUL CONIBEAR PRESIDENT & CEO MARIE INKSTER SENIOR VP & CFO Questions PAUL McRAE SENIOR VP PROJECTS STEVE GATLEY VP TECHNICAL SERVICES 3
Slide 4: Q1 - 2015 Operational Highlights
Q1 - 2015 Operational Highlights Production and Costs Outperformed Expectations Copper: Production achieved a new quarterly record and exceeded expectations Zinc: Production met expectations supported by higher zinc grades from the Lombador deposit at Neves‐Corvo Nickel: Production achieved a
Slide 5: Q1 - 2015 Operating Results
Q1 - 2015 Operating Results Record Quarterly Sales Levels for Copper and Nickel Zinc Nickel 35,000 32,058 8,000 31,087 30,882 7,117 28,825 30,000 26,813 7,000 25,000 6,000 5,000 20,000 Tonnes Tonnes 3,818 4,000 15,000 3,000 10,000 2,000 1,242 1,342 1,187 5,000 1,000 ‐ 0 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15
Slide 6: Change in Production - Q1 2015 vs. Q1 2014
Change in Production - Q1 2015 vs. Q1 2014 Significant Production Increase in Both Copper and Nickel Tonnes Tonnes 64,098 6,418 12,000 7,306 10,052 70,000 39,480 60,000 10,000 8,000 Copper 50,000 Nickel Excluding Tenke 12,648 t 40,000 attributable share 6,000 30,000 4,000 27 682 57 295 3,040 55 1,98
Slide 7: Revenue Breakdown by Mine and Metal
Revenue Breakdown by Mine and Metal For the quarter, 72% of Sales were from Candelaria and Eagle Sales Breakdown by Mine Sales Breakdown by Metal 7
Slide 8: Cash Cost Summary
Cash Cost Summary Very Competitive Q1/15 Cash Costs Across All Operations 2015 Cash Costs ‐ Copper $4.00 Candelaria Tenke Neves‐Corvo $3.00 $1.20 $1.26 $1.39 $/lb Cu $2.00 $1.00 $0.00 5% 15% 19% 24% 36% 43% 52% 56% 63% 66% 70% 74% 76% 78% 80% 84% 86% 90% 92% 93% 94% 96% 98% 99% 2015 Cash Costs ‐ Nic
Slide 9: Q1 - 2015 Financial Highlights
Q1 - 2015 Financial Highlights Record Quarterly Financial Results and Strong Balance Sheet Excellent contributions from Candelaria and Eagle acquisitions $US M or Q1/2015 Q1/2014 % Change ($/share) Revenues $532M $150M 255% Operating $274M $43M 537% Earnings Attributable $72M $13M 454% Net Income
Slide 10: Production & Cash Cost Guidance
Production & Cash Cost Guidance Improvement in Overall Production and Cost Guidance Guidance at Candelaria & Eagle remains unchanged – will be re‐visited post Q2 Revised Guidance (contained tonnes) Tonnes Cash Costsa Copper Candelaria (80%) 130,000 – 135,000 $1.55/lb Eagle 20,000 – 23,000 Neves‐Co
Slide 11: Normalized Earnings
Normalized Earnings Significant Increase in Normalized Earnings from Prior Year Period Year-to-date $ Millions 2015 2014 Net earnings attributable to shareholders 71.8 13.3 Foreign exchange (17.3) - Mark to market on securities 1.3 (0.9) Tax (on above items) 4.3 0.2 Adjusted net earnings attributabl
Slide 12: Operating Earnings – Q1 2015 vs. Q1 2014
Operating Earnings – Q1 2015 vs. Q1 2014 Significant Boost in Operating Earnings from Candelaria and Eagle 12
Slide 13: Operations & Outlook
Operations & Outlook Candelaria (80%) Eagle (100%) Neves‐Corvo (100%) Zinkgruvan (100%) Aguablanca (100%) Tenke Fungurume (24%) 13
Slide 14: Candelaria (Cu/Au/Ag), Chile
Candelaria (Cu/Au/Ag), Chile Atacama Province, Region III, approximately 650 km north of Santiago 14
Slide 15: Candelaria – Q1 2015 Results & Outlook
Candelaria – Q1 2015 Results & Outlook Location Chile • Production (49.4kt Cu) surpassed expectations Ownership 80% aided by high throughput and excellent recoveries 2015 Production 130,000-135,000 t Cu Guidance (80%) • Cash costs averaged $1.20/lb Cu due to lower 2015 Cost $1.55/lb Cu mining and mi
Slide 16: Eagle Mine (Ni/Cu), Michigan, U.S.A.
Eagle Mine (Ni/Cu), Michigan, U.S.A. 50 km northwest of Marquette in the Upper Peninsula of Michigan 16
Slide 17: Eagle Mine – Q1 2015 Results & Outlook
Eagle Mine – Q1 2015 Results & Outlook Location Michigan, USA • Nickel and copper production (7.3kt Ni, Ownership 100% 6.4kt Cu) exceeded expectations due to high throughput, grades and recoveries 2015 25,000–28,000 t Ni Production 20,000–23,000 t Cu • Performing consistently at design rates Guidanc
Slide 18: Neves-Corvo (Cu/Zn), Portugal
Neves-Corvo (Cu/Zn), Portugal Situated 220 km southeast of Lisbon 18
Slide 19: Neves-Corvo – Q1 2015 Results & Outlook
Neves-Corvo – Q1 2015 Results & Outlook • Strong copper production (15.5kt) reflects high Location Portugal Ownership 100% grades and recoveries achieved from bulk 50,000–55,000 t Cu stopes 2015 Production 68,000–73,000 t Zn Guidance 4,000-5,000 t Pb • Zinc production (17.3kt) increased as +50% of 2
Slide 20: Zinkgruvan (Zn/Pb/Cu), Sweden
Zinkgruvan (Zn/Pb/Cu), Sweden Situated 200 km southwest of Stockholm 20
Slide 21: Zinkgruvan – Q1 2015 Results & Outlook
Zinkgruvan – Q1 2015 Results & Outlook Location Sweden • Zinc production (18.4kt) met expectations as Ownership 100% higher throughput and recoveries were offset by lower grades 2015 78,000–82,000 t Zn Production 27,000–30,000 t Pb • Lead and copper production (7.4kt Pb, 0.6kt Guidance 2,000–3,000 t
Slide 22: Aguablanca (Ni/Cu), Spain
Aguablanca (Ni/Cu), Spain Situated 80 km north of Seville 22
Slide 23: Aguablanca – Q1 2015 Results & Outlook
Aguablanca – Q1 2015 Results & Outlook Location Spain • Nickel and copper production (2.7kt Ni, Ownership 100% 2.1kt Cu) achieved a historical quarterly 2015 7,000–7,500 t Ni record Production 5,500–6,000 t Cu Guidance • Production from the open pit was 2015 Cost $3.75/lb Ni completed in April Guida
Slide 24: Tenke Fungurume (Cu/Co), DRC
Tenke Fungurume (Cu/Co), DRC Situated 175 km northwest of Lubumbashi 24
Slide 25: Tenke – Q1 2015 Results & Outlook
Tenke – Q1 2015 Results & Outlook Democratic Republic of Location • Production (100% basis) of 52.7kt copper Congo was positively impacted by high grades Ownership 24% and milling exceeding design capacity 2015 Production Guidance 49,500 t Cu (attributable share) • Cash costs averaged $1.26/lb Cu 20
Slide 26: Lundin Mining Summary
Lundin Mining Summary Geographic and base metal diversification Portfolio of high quality, long-life mines Exploration potential at all existing assets No high risk capital projects Priorities for 2015 – optimize current operations 26
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