Slide 1: Third Quarter 2022 Results
Third Quarter 2022 Results October 26, 2022 TSX: LUN Nasdaq Stockholm: LUMI Neves-Corvo, Portugal
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 Peter Rockandel President & CEO Teitur Poulsen SVP & CFO Juan Andres Morel SVP & COO Valeska Baigorri, Haul Truck Operator and mentor in Women Apprentices Program at Candelaria 3
Slide 4: Q3/22 Highlights
Q3/22 Highlights • continued on-plan operating performance at Candelaria, Eagle and Zinkgruvan Solid Operational • 35% increase in copper production and 50% increase in gold production QOQ at Chapada Performance • Zinc Expansion Project ramp up at Neves-Corvo progressing with QOQ improvements • prod
Slide 5: Q3/22 Summary Results
Q3/22 Summary Results Production 65,077 41,912 4,719 40,327 4,379 46,000 38,769 45,000 64,096 63,930 4,124 39,000 Q3/22 Q2/22 Q3/21 Q3/22 Q2/22 Q3/21 Q3/22 Q2/22 Q3/21 Q3/22 Q2/22 Q3/21 Copper Zinc Nickel Gold Nearly $650M in Sales Other Sweden 6% Gold 10% 10% USA Nickel 16% Chile 11% 40% Copper 60%
Slide 6: Realized Prices
Realized Prices1 Zinc • revenue of nearly $650M increased 10% QOQ $1.48/lb $0.07/lb $0.13/lb $1.43/lb $1.37/lb $1.36/lb • realized pricing impacted by $65M of negative prior period price adjustments Provisionally priced Effect on revenue at end of Q3/22 of 10% change 90,003 t of copper at $3.46/lb $
Slide 7: YTD Operating and Capital Cost Drivers
YTD Operating and Capital Cost Drivers YTD Candelaria Chapada Neves-Corvo Eagle Zinkgruvan Cash cost1 $1.80/lb of copper $2.13/lb of copper $2.26/lb of copper $0.32/lb of nickel $0.31/lb of zinc Production costs $490M $240M $251M $142M $86M Sustaining capex $273M $63M $49M $10M $32M 20% 10% 6% 25% 2
Slide 8: FX Hedging Strategy
FX Hedging Strategy • commenced foreign exchange hedging strategy to protect medium-term business plans • provide greater visibility on US$ funding requirements for future operating costs and capital expenditures Currency Financial Instrument Q4/22 2023 2024 CLP zero cost collars US$108M US$264M US$
Slide 9: Key Financial Metrics
Key Financial Metrics Revenue Adjusted EBITDA1 Adjusted Earnings (Loss)1 $756M $411M $649M $590M $168M $202M $149M $31M Q2/22 Q3/22 Q2/22 Q3/21 Q3/22 Q2/22 Q3/21 Q3/22 Q3/21 ($35M) Adjusted Operating Cash Flow1 Free Cash Flow Net Cash $470M $407M $294 M $391M $215M $181 M $178M Q3/22 Q2/22 Q3/21 $50
Slide 10: Strong Operating Cash Flows
Strong Operating Cash Flows Key Changes in Cash $181M $145M $200M $498M $25M $20M $53M $42M $8M $227M Q2/22 Adjusted Working Capital Chapada Net Debt Shareholder Share Other Q3/22 Cash Operating Capital Investments Contingent Proceeds Dividends Buyback Cash Cash Flow Payment 10
Slide 11: Candelaria
Candelaria Delivering Production to Plan • production of 37,192 t of copper and 21,000 oz of gold at cash cost1 of $1.97/lb of copper • tonnes milled modestly below plan, offset by better feed grades and recovery rates Copper, Gold Production & Cash Cost Outlook2 (100% basis; kt Cu, koz Au & $/lb Cu
Slide 12: Ojos del Salado Sinkhole
Ojos del Salado Sinkhole Status Update • no material change in size since detection on July 30, 2022 • mining operations at Alcaparrosa remain suspended Actions & Next Steps • communicating with all stakeholders • continue to monitor, investigate causal factors, and cooperate fully with regulatory a
Slide 13: Chapada
Chapada Strong Mine & Mill Performance • production of 13,988 t of copper and 24,000 oz of gold at a cash cost of $1.92/lb of copper • 35% QOQ increase in copper production and 50% QOQ increase in gold production as mill throughput, feed grades and metal recoveries all improved over the weather impa
Slide 14: Saúva Copper-Gold System
Saúva Copper-Gold System Highlight Assay Results Received in Q3/22 N v FOR-193: 127.14 m at 0.34% Cu and 0.09 g/t Au or 0.41% CuEq, from 179 m FOR-228: 13.70 m at 0.34% Cu and 0.14 g/t Au or 0.44% CuEq, from 73 m and: 14.00 m at 0.49% Cu and 0.11 g/t Au or 0.57% CuEq, from 153 m and: 38.00 m at 0.51
Slide 15: Eagle
Eagle Consistent Performance • production of 4,379 t of nickel and 3,994 t of copper at a cash cost of $1.05/lb nickel • slightly below plan throughput and grades offset by higher recoveries for both copper and nickel Nickel, Copper Production & Cash Cost Outlook1 (kt & $/lb Ni, net of by-product cr
Slide 16: Neves-Corvo
Neves-Corvo Zinc Expansion Project Ramp Up Progressing • production of 7,019 t of copper, 22,514 t of zinc and 743 t of lead at a cash cost of $2.69/lb of copper Copper, Zinc Production & Cash Cost Outlook1 (kt & $/lb Cu, net of by-product credits) • zinc production challenged to meet the annual gui
Slide 17: Zinkgruvan
Zinkgruvan Operations Continue to Deliver Strong Results • production of 17,813 t of zinc, 1,737 t of copper and 7,046 t of lead at a cash cost of $0.18/lb of zinc Zinc Production & Cash Cost Outlook1 • both mine and mill continue to perform well and in-line with expectations (kt & $/lb Zn, net of b
Slide 18: Josemaria Project
Josemaria Project • continue to work with the national and provincial authorities to progress project to the next stages, including discussions regarding commercial agreements and securing of additional sectoral permits • engineering estimated to be 33% complete; progressing through establishment of
Slide 19: Lundin Mining
Lundin Mining Providing the Metals Necessary for a Green Economy Our Strategy Operate, upgrade and grow a base metals Zinkgruvan portfolio that provides leading returns for our Eagle Zinc-Lead-Copper in Sweden Nickel-Copper-PGMs in U.S.A. shareholders throughout the cycle • copper dominant • long-li
Slide 20: 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 21: www.lundinmining.com
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