Lundin Mining Corporation · TSX:LUN
Lundin Mining — Investor Presentation (November 2018)
33 slides from Lundin Mining's investor presentation, Nov 30, 2018
Slide 1: Lundin Mining Corporate Update
TSX: LUN Nasdaq Stockholm: LUMI Lundin Mining Corporate Update November 2018 1 Candelaria, Atacama Region, Chile
Slide 2: Cautionary Statements
Cautionary Statements Caution Regarding Forward-Looking Information and Non-GAAP Performance Measures All statements, other than statements of historical fact, made and information contained or incorporated by reference in or made in giving this presentation and responses to questions, is "forward-l
Slide 3: Lundin Mining – Our Strategy and Operations
Lundin Mining Our Strategy Our Operations Freeport Cobalt1 Operate, upgrade and grow a Cobalt Refinery (Finland) base metal portfolio that provides leading returns for our Eagle Zinkgruvan shareholders throughout the cycle Nickel-Copper-PGMs (USA) Zinc-Lead-Copper (Sweden) – copper dominant Neves-Co
Slide 4: High Quality Competitive Mines, Growth Oriented, Financial Strength
Lundin Mining High Quality Meaningful Scale Financial Strength Competitive Mines Growth Oriented – strong margins at all – exploration upside and – proven track record for operations high value expansion rigorous investment projects underway approach, focused on – demonstrated operational value crea
Slide 5: Capital Allocation Priorities
Capital Allocation Priorities Invest in low-risk, high-return brownfield Proforma Liquidity Position1 expansion projects and exploration (Post Redemption of Notes Nov. 21, 2018) Maintain regular dividend Prudent and accretive management of debt and cash positions 37% Cash and Equivalents Keep a flex
Slide 6: Production Outlook (kt)
Production Outlook1 (kt) Copper Zinc Nickel Forecast increase primarily on improved Forecast ~50% increase primarily on Eagle East planned on-line in Q4 2019 Candelaria mine plan and low-risk investments Neves-Corvo Zinc Expansion Project 251 241 246 19 231 17 16 210 15 232 16 227 15 218 195 13 12 2
Slide 7: 2019 Production and Cash Cost Guidance
2019 Production and Cash Cost Guidance Production1 and C1 Cash Cost2 (t and $/lb, net of by-products) Copper Candelaria (100%) 145,000 – 155,000 $1.60/lb Eagle 12,000 – 15,000 Neves-Corvo 40,000 – 45,000 $1.70/lb Zinkgruvan 2,000 – 3,000 Total 199,000 – 218,000 Zinc Neves-Corvo 71,000 – 76,000 Zinkg
Slide 8: 2019 Capital Expenditure Guidance
2019 Capital Expenditure Guidance Candelaria Capital Expenditures 1 (US$M) – continue investments in low-risk initiatives to deliver improved production profile Capitalized Stripping2 130 Los Diques TSF 10 Neves-Corvo New Mine Fleet Investment 75 – ZEP total capital cost estimated at €320M ($385M) C
Slide 9: 2019 Exploration Expenditure Guidance
2019 Exploration Expenditure Guidance Aggressive In-Mine and Near-Mine Exploration Programs – $80M to be invested in 2019 in exploration programs – nearly 206,000 meters of planned drilling – $23M at Eagle, $23M at Zinkgruvan and $7M at Neves-Corvo – $14M at Candelaria reflecting a scale back from s
Slide 10: Candelaria
Candelaria 10 Candelaria Mill – Copper / Gold / Silver – Atacama Region, Chile
Slide 11: Candelaria
Candelaria On Track to Achieve 2018 Guidance – mill throughput and copper head grade modestly exceeded plan Copper Production & Cash Cost Outlook in the third quarter (100% basis; kt & $/lb Cu, net of by-product credits) – open pit waste mining rates have increased with delivery of new equipment and
Slide 12: Candelaria Copper Production Profile (kt)
Candelaria Copper Production Profile1 (kt) 190 190 192 194 184 185 175 175 171 175 167 155 156 160 152 151 146 137 136 114 96 84 69 45 10 2016A 2017A 2018 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 Dece
Slide 13: Neves-Corvo
Neves-Corvo 13 Copper / Zinc / Lead – Portugal
Slide 14: Neves-Corvo
Neves-Corvo Continued Excellent Mine and Mill Performance – improved mine productivity and mill throughput all Copper, Zinc Production & Cash Cost Outlook contributing to significant performance increase (kt & $/lb Cu, net of by-product credits) – produced more copper Q1-Q3 2018 than all of 2017 155
Slide 15: Neves-Corvo Zinc Expansion Project Update
Neves-Corvo Zinc Expansion Project Update Surface Activities – mill and flotation buildings concrete and steel work advancing – construction complete and commissioning expected early 2020 Underground Development – conveyor erection and crusher chamber progressing – first ore from this newly develope
Slide 16: Eagle
Eagle Humboldt Mill – Nickel / Copper / PGMs – Michigan, U.S.A. 16
Slide 17: Eagle
Eagle Robust Mine and Mill Performance – slightly above plan throughput and grade in third quarter Nickel, Copper Production & Cash Cost Outlook (kt & $/lb Ni, net of by-product credits) Excellent Progress on Eagle East – ramp development continues above planned rates 19-22 – ahead of schedule and u
Slide 18: Eagle East
Eagle East Existing Access Ramp Eagle Mine Dual Declines Current Advance Eagle East Eagle East Infill Drill Program Ore Body Phase 1 Complete 18
Slide 19: Zinkgruvan
Zinkgruvan 19 Zinc / Lead / Copper – Sweden
Slide 20: Zinkgruvan
Zinkgruvan Focus on Improving Head Grade – zinc ore head grade hampered as a result of mine sequencing and greater than planned dilution in Q1-Q3 2018 Zinc Production & Cash Cost Outlook (kt & $/lb Zn, net of by-product credits) – site teams focusing on head grade improvements; grades returned to fo
Slide 21: Zinkgruvan – New Dalby Mineral Resource
Zinkgruvan – New Dalby Mineral Resource1 Four rigs focused on expansion of new Dalby deposit Two rigs in H1 2019 drilling Flaxen Dalby Flaxen Known Mineralization 1 Km 1. For more information please refer to the Company’s new release dated September 6, 2018 entitled “Lundin Mining Announces 2018 Min
Slide 22: High Quality Competitive Mines, Growth Oriented, Financial Strength
Lundin Mining High Quality Meaningful Scale Financial Strength Competitive Mines Growth Oriented – strong margins at all – exploration upside and – proven track record for operations high value expansion rigorous investment projects underway approach, focused on – demonstrated operational value crea
Slide 23: Appendices
TSX: LUN OMX: LUMI Appendices 23
Slide 24: Production Outlook
Production Outlook1 2018 2019 2020 2021 Copper Candelaria (100% basis) 133,750 – 136,250 145,000 – 155,000 165,000 – 175,000 175,000 – 185,000 Eagle 16,000 – 18,000 12,000 – 15,000 19,000 – 22,000 14,000 – 17,000 Neves-Corvo 43,000 – 45,000 40,000 – 45,000 41,000 – 46,000 41,000 – 46,000 Zinkgruvan
Slide 25: Mine Fleet Reinvestment
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 estimates now support mine life to 2040 New Equipme
Slide 26: 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 27: Candelaria Underground Mine Expansions
Candelaria Underground Mine Expansions South Sector Significant Underground Exploration Looking west Success Under Lundin Mining Ownership – Candelaria North and South Sectors underground Mineral Reserve estimate now 101Mt at 0.85% copper – South Sector remains significantly under-drilled Increasing
Slide 28: Candelaria Complex – Mineral Resources and Mineral Reserves
Candelaria Complex – Mineral Resources and Mineral Reserves1 Ownership 80% Location Region III, Chile Mine life +20 years 2018 exploration budget ~$34M 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 Co
Slide 29: Eagle Mine and Eagle East – Mineral Resources and Mineral Reserves
Eagle Mine and Eagle East – Mineral Resources and Mineral Reserves1 Ownership 100% Location Michigan, USA Mine life 7 years 2018 exploration budget ~$18M 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 Minera
Slide 30: Neves-Corvo – Mineral Resources and Mineral Reserves
Neves-Corvo – Mineral Resources and Mineral Reserves1 Ownership 100% Location Alentejo region, Portugal Mine life +10 years 2018 exploration budget ~$5M 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 31: Zinkgruvan – Mineral Resources and Mineral Reserves
Zinkgruvan – Mineral Resources and Mineral Reserves1 Ownership 100% Location Askersund, Sweden Mine life +10 years 2018 exploration budget ~$13M 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 32: 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 33: TSX: LUN Nasdaq Stockholm: LUMI
TSX: LUN Nasdaq Stockholm: LUMI 33
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