Lundin Mining Corporation · TSX:LUN
Lundin Mining — Q2 2019 Earnings Presentation
17 slides from Lundin Mining's earnings presentation, Jul 25, 2019
Slide 1: Second Quarter 2019 Results
Second Quarter 2019 Results July 25, 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: Participants
Participants Marie Inkster President & CEO Jinhee Magie SVP & CFO Peter Richardson SVP & COO Managing Director Chapada, Daniel Daher, welcoming Chapada employees and contractors to Lundin Mining 3
Slide 4: Summary Results
Summary Results Q2/19 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 Open
Slide 5: 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 6: Candelaria
Candelaria On Track to Achieve Annual Guidance • produced 33,600t of copper at cash cost of $1.86/lb in Q2/19 Copper Production & Cash Cost Outlook • through H1/19 have produced 66,411t of copper at cash cost of $1.74/lb (100% basis; kt & $/lb Cu, net of by-product credits) • Q2/19 production and co
Slide 7: Neves-Corvo
Neves-Corvo Solid Operational Performance • produced 9,615t of copper and 18,251t of zinc at cash cost of $1.88/lb copper in Q2/19 Copper, Zinc Production & Cash Cost Outlook (kt & $/lb Cu, net of by-product credits) • through H1/19 produced 18,483t of copper and 37,024t at cash cost of $1.46/lb • c
Slide 8: 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 9: 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 10: Eagle
Eagle Operating to Plan, Q1/19 Sales Caught-Up • produced 3,398t of nickel and 3,732t of copper at cash cost of $3.14/lb nickel in Q2/19 Nickel, Copper Production & Cash Cost Outlook • through H1/19 produced 7,611t of nickel and 7,629t of copper at cash cost of $2.30/lb (kt & $/lb Ni, net of by-prod
Slide 11: Zinkgruvan
Zinkgruvan Positioned to Deliver on Guidance • produced 18,865t of zinc and 705t of copper at a cash cost of $0.41/lb zinc in Q2/19 Zinc Production & Cash Cost Outlook • through H1/19 have produced 40,538t of zinc and 1,284t of copper at a cash cost of (kt & $/lb Zn, net of by-product credits) $0.42
Slide 12: 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 13: 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 14: Increasing Production Profile
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 15: Lundin Mining – 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 16: www.lundinmining.com
www.lundinmining.com | TSX: LUN | Nasdaq Stockholm: LUMI
Slide 17: 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