Lundin Mining Corporation · TSX:LUN
Lundin Mining — Investor Presentation (July 2019)
30 slides from Lundin Mining's investor presentation, July 2019
Slide 1: Corporate Presentation
Corporate Presentation July 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: 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 Eagle Zinkgruvan • competitive cost position Nickel-Copper-PGMs in U.S.A. Zinc-Lead-Copper in Sweden • low-risk mining jurisdictions,
Slide 4: Diversified in Established Jurisdictions
Diversified in Established Jurisdictions Pre-Chapada Pro Forma Chapada Sweden 9% Sweden USA 12% 11% USA Chile 13% 40% Chile 51% Portugal Portugal 19% 24% Brazil 21% Notes: (1) Based on midpoint of 2019E production guidance provided by Lundin Mining and pro forma full-year production from Chapada. On
Slide 5: Increasing Production Profile (kt)
Increasing Production Profile1 (kt) Copper Zinc Nickel 289 - 308 292 - 311 231 - 241 16 - 19 18 13 - 16 12 - 14 +50% +55% 224 - 245 165 - 180 147 - 157 152 200 3 3 2018A 2019 2 2020 2021 2018A 2019 2020 2021 2018A 2019 2020 2021 1. Production profile based on certain estimates and assumptions, inclu
Slide 6: Responsible Mining
Responsible Mining Safety Total Recordable Injury Frequency • overall safety performance better than target for sixth consecutive year per 200,000 person hours worked • first-quartile performance of Western world mines Social 3.5 • positive stakeholder engagement and increased social investment 3.1
Slide 7: Q2 2019 Summary Results
Q2 2019 Summary Results Production & Sales Summary Production Payable Sales 47,685t of copper 46,225t of copper 37,116t of zinc 33,932t of zinc 3,398t of nickel 3,935t of nickel 7,569t of lead 7,112t of lead Lead Other Gold 3% 4% 6% $369M in Sales by Metal Nickel 9% Copper 62% Zinc 16% Candelaria Op
Slide 8: Financial Highlights
Financial Highlights Realized Metal Prices 1 Q2/19 Q2/18 Δ Copper $2.45/lb $3.03/lb (19%) Nickel $5.66/lb $7.66/lb (26%) Zinc $1.07/lb $1.31/lb (18%) Summarized Financial Results 2 Q2/19 Q2/18 Δ Revenue $369M $468M (21%) Gross Profit $25M $155M (84%) Attributable Net (Loss) Earnings ($8M) $79M (110%
Slide 9: Candelaria
Candelaria On Track to Achieve Annual Guidance • through H1/19 have produced 66,411t of copper at cash cost of $1.74/lb Copper Production & Cash Cost Outlook (100% basis; kt & $/lb Cu, net of by-product credits) • Q2/19 production and costs impacted by planned maintenance and head grade • ore grades
Slide 10: Neves-Corvo
Neves-Corvo Solid Operational Performance • through H1/19 produced 18,483t of copper and 37,024t at cash cost of $1.46/lb Copper, Zinc Production & Cash Cost Outlook • copper head grade lower than plan in Q2/19 on greater portion of stockwork ores (kt & $/lb Cu, net of by-product credits) processed.
Slide 11: Neves-Corvo – ZEP
Neves-Corvo – ZEP Underground Construction • development of conveyor ramps completed during the quarter • work now focusing on completion of crusher station, ore silos and conveyor systems • concrete foundation work progressed well in Q2/19 • first sublevel accesses established in lower Lombador ore
Slide 12: Neves-Corvo – ZEP
Neves-Corvo – ZEP Surface Construction work focusing on: • mechanical installation of materials handling system • tailings and water supply piping systems • SAG mill gear ring and motor installation • new paste thickener • flotation equipment in new and existing zinc plants Surface Construction Phot
Slide 13: Eagle
Eagle Operating to Plan, Q1/19 Sales Caught-Up • through H1/19 produced 7,611t of nickel and 7,629t of copper at cash cost of $2.30/lb nickel Nickel, Copper Production & Cash Cost Outlook (kt & $/lb Ni, net of by-product credits) • nickel production guidance range tightened to 12,000t – 14,000t • ca
Slide 14: Zinkgruvan
Zinkgruvan Positioned to Deliver on Guidance • through H1/19 have produced 40,538t of zinc and 1,284t of copper at a cash cost of Zinc Production & Cash Cost Outlook $0.42/lb zinc (kt & $/lb Zn, net of by-product credits) • zinc ore head grade normalized in Q2/19 after elevated level in Q1/19 Rejuve
Slide 15: Chapada
Chapada High-Quality, Long-Life, Expandable Operation • acquisition closed July 5, 2019 • $800M paid on closing financed $515M from cash on hand and $285M drawn on credit facility • integration well underway H2/19 Guidance • copper production of 27,000t to 30,000t at cash cost of $1.10/lb net of pre
Slide 16: 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 17: 2019 Capital & Exploration Expenditure Guidance
2019 Capital & Exploration Expenditure Guidance Capital Expenditures Candelaria (100% basis) • overall 2019 guidance reduced to $695M from $745M Capitalized Stripping1 130 • 2019 ZEP guidance reduced to $140M from $210M on deferral into 2020 Los Diques TSF 10 • introduced Chapada H2/19 sustaining ca
Slide 18: Lundin Mining
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 production profile investment approach, focused on value • demonstrated operational excellenc
Slide 19: Appendices
Appendices lundin mining
Slide 20: Chapada Transaction Summary
Chapada Transaction Summary Transaction Lundin Mining acquired 100% interest in Chapada copper-gold mine US$800M in cash at closing Contingent gold price payments – annual payment if the gold price averages at least the threshold in any sequential annual period over the five years commencing on clos
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 dates 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 – completed • ball mill re-powering; pebble circuit upgrade; cyclone and feed pump upgrades • flotation circuit upgrades • front-end desalination pl
Slide 23: Candelaria Underground Mine Expansions
Candelaria Underground Mine Expansions Significant Underground Exploration Success Under Lundin Mining Ownership • Candelaria North and South Sectors underground Mineral Reserve estimate now 101Mt at 0.85% copper • Candelaria South Sector remains significantly under-drilled Increasing Underground Pr
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 3,413 kt contained (633,978 kt at 0.5%) M&I Copper Mineral Resources 6,146 kt contained (952,474 kt at 0.6%) Inferred Cop
Slide 25: Chapada – Mineral Resources and Mineral Reserves
Chapada – Mineral Resources and Mineral Reserves1 Ownership 100% Location Goiás State, Brazil Mine life 27 years 2019 exploration budget ~$4M P&P Copper Mineral Reserves 1,681 kt contained (664,629 kt at 0.25%) M&I Copper Mineral Resources 919 kt contained (422,814 kt at 0.22%) Inferred Copper Miner
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 ~$15M P&P Nickel Mineral Reserves 108 kt contained (4,088 kt at 2.6%) M&I Nickel Mineral Resources 135 kt contained (3,981 kt at 3.4%) P&P Copper Mineral Reserves 93 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 2,331 kt contained (30,384 kt at 7.7%) M&I Zinc Mineral Resources 6,203 kt contained (103,516 kt at 6.0%) Inferred Zinc M
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 ~$23M P&P Zinc Mineral Reserves 816 kt contained (10,314 kt at 7.9%) M&I Zinc Mineral Resources 1,270 kt contained (15,151 kt at 8.4%) 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