Slide 1: Third Quarter 2017 Results
TSX: LUN OMX: LUMI Third Quarter 2017 Results October 25, 2017 Neves-Corvo, Portugal 1
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-lo
Slide 3: Participants
Participants President & Paul Conibear Chief Executive Officer Senior Vice President & Marie Inkster Chief Financial Officer Vice President Steve Gatley Technical Services 3
Slide 4: Operating Highlights – Q3/17
Operating Highlights – Q3/17 Continued Excellent Performance at Candelaria and Eagle All Projects Advancing on Schedule and on Budget Candelaria delivered strong copper production and remains on target to meet full- year production and cash cost guidance Neves-Corvo copper production less-than-plann
Slide 5: Revenue Breakdown – Q3/17
Revenue Breakdown – Q3/17 Sales of $602M Lead Other Gold 2% 3% 5% Zinkgruvan 11% Nickel 6% Eagle 12% Zinc 15% Neves-Corvo 15% Copper Candelaria 69% 62% By Operation By Metal 5
Slide 6: Operating Earnings – Q3/17
Operating Earnings – Q3/17 Operating earnings increased 146% compared to the same period last year due primarily to realized metal prices, price adjustments, lower per unit operating costs, and higher sales volumes $29.0M $350.7M $2.4M $158.2M $18.5M $142.6M Q3/16 Volume Price & Adj. Cost FX and Oth
Slide 7: Attributable Net Earnings from Continuing Operations
Attributable Net Earnings from Continuing Operations Net earnings from continuing operations attributable to Lundin Mining shareholders increased compared to the same period last year. Mainly due to comparative changes in operating earnings partially offset by a higher tax expense. $12.0M $176.5M $4
Slide 8: Financial Highlights – Q3/17
Financial Highlights – Q3/17 Q3/17 Q3/16 Δ Realized Metal Prices1 Copper $3.08/lb $2.17/lb 42% Nickel $5.06/lb $5.10/lb -1% Zinc $1.43/lb $1.07/lb 34% Revenue $602M $375M 61% Operating Earnings $351M $143M 145% Attributable Net Income / (Loss) from $157M ($15M) na Continuing Operations $0.18/sh ($0.
Slide 9: Balance Sheet Strength and Flexibility
Balance Sheet Strength and Flexibility Cash balance at October 25, 2017 of approximately $2.2B and net cash of approximately $1.2B Issued an early redemption notice for $550M principal of 7.50% Senior Secured 2020 Notes – to be redeemed at 103.75% principal plus accrued interest Cash and Cash Equiva
Slide 10: Capital Allocation Strategy
Capital Allocation Strategy Focus on Disciplined Growth Invest in high-return brownfield expansion projects and exploration Service regular dividend Prudent and accretive management of bond debt and cash positions – notice provided to redeem $550M of 7.50% Senior Secured Notes Keep flexible balance
Slide 11: 2017 Production and Cash Cost Guidance
2017 Production and Cash Cost Guidance C1 cash cost guidance improved for Eagle and Zinkgruvan. Production guidance at Neves-Corvo lowered in part allowing for impact of recent and potential for further labour action. Attributable Production1 and C1 Cash Cost2 (t and $/lb, net of by-products) Revise
Slide 12: 2017 Capital Expenditure and Exploration Guidance
2017 Capital Expenditure and Exploration Guidance Revised Prior Capital Expenditures1 (US$M) Los Diques estimated cost unchanged at $295M Guidance Guidance Total Capitalized Stripping2 120 110 – on time and on budget for use in early 2018. Los Diques Facility 135 135 $30M remaining for Q4/17 and $30
Slide 13: Candelaria
Candelaria Copper / Gold / Silver – Region III, Chile 13
Slide 14: Candelaria
Candelaria Q3/17 copper production of 49.2 kt (100% basis) – $1.17/lb copper cash cost – on target to meet full-year production guidance Copper Production & Cash Cost (100% basis; kt & $/lb Cu, net of by-product credits) Candelaria optimization work progresses – accelerated UG mining, refined open p
Slide 15: Candelaria – Los Diques Tailings Facility
Candelaria – Los Diques Tailings Facility 15 October 2017
Slide 16: Neves-Corvo
Neves-Corvo Copper / Zinc – Portugal 16
Slide 17: Neves-Corvo
Neves-Corvo Copper, Zinc Production & Cash Cost (kt & $/lb Cu, net of by-product credits) Q3/17 production of 7.9 kt copper and 19.6 kt zinc Last Five Quarters – $0.75/lb copper cash cost – mine sequencing and complex ore metallurgy impacting 17.6 17.9 18.0 19.6 ore type availability and throughput
Slide 18: Zinkgruvan
Zinkgruvan 18 Zinc / Lead / Copper – Sweden
Slide 19: Zinkgruvan
Zinkgruvan Q3/17 production of 19.0 kt zinc – zinc cash costs of $0.30/lb. Full-year cash cost Zinc, Lead Production & Cash Cost guidance improved to $0.35/lb on YTD performance (kt & $/lb Zn, net of by-product credits) – production slightly below plan on mill throughput with low ore stockpile on su
Slide 20: Exploration areas
Karlstad { 2 Zinkgruvan Hailed ib stage (3 (Soil ee Vas ae ta oct > ae’ Zinc - Lead ore ¢ gy Orebro > 1 Mined out area Vanem pixerpand * - ° a Copper ore 2 NORTH Wesy, © Peloration areas
Slide 21: Eagle
Eagle Nickel / Copper / PGMs – Michigan, U.S.A. 21
Slide 22: Eagle
Eagle Q3/17 production of 5.6 kt nickel and 5.0 kt copper – cash cost of $0.63/lb nickel Nickel, Copper Production & Cash Cost (kt & $/lb Ni, net of by-product credits) Further 2017 cash cost guidance improvement – improved to $1.10/lb nickel, from $1.35/lb, on strong Last Five Quarters metal produc
Slide 23: Eagle and Eagle East Overview
Eagle and Eagle East Overview Existing Access Ramp Eagle Mine Advancing both declines Eagle East Deposit 1,000 m 23
Slide 24: Responsible Mining
Responsible Mining TMF at Humboldt Mill, Eagle Mine Operations Health and Safety – annually improving our safety performance at all mines Environmental Performance – excellent track record and improving performance each year – increased reporting and disclosure practices Community & Social – positiv
Slide 25: Lundin Mining
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 at all operations approach, focused on - demonstrated operational v
Slide 26: TSX: LUN OMX: LUMI
TSX: LUN OMX: LUMI 26