Slide 1: Third Quarter 2023 Results
Third Quarter 2023 Results November 1, 2023 TSX: LUN NASDAQ STOCKHOLM: LUMI
Slide 2: Cautionary Statements
Cautionary Statements Caution Regarding Forward-Looking Information and Non-IFRS 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 CEO Jack Lundin President & Incoming CEO Teitur Poulsen SVP & CFO Juan Andres Morel SVP & COO Concentrate loadout 3
Slide 4: Introduction
Introduction Eagle Zinkgruvan Zn Cu 2022A u/g Ni Cu 2022A u/g Ag 48 kt CuEq3 10+ years Co PGM 67 kt CuEq3 4+ years Corporate Office Chapada Neves-Corvo Cu Au 2022A o/p Cu Zn 2022A u/g Ag 60 kt CuEq3 30+ years Pb Ag 68 kt CuEq3 10+ years Caserones2 Cu Mo 2022A o/p 139 kt CuEq3 16+ years Candelaria1 J
Slide 5: Q3/23 Highlights
Q3/23 Highlights • Produced approximately 206,000 t of copper-equivalent metal1 during the quarter Operational • Production guidance increased at Caserones and Eagle Performance • Cash cost guidance lowered for Caserones and Eagle on higher production volumes • Tracking to the midpoint / upper end o
Slide 6: Q3/23 Summary Production Results
Q3/23 Summary Production Results Copper production of almost 90 kt 89,942 56,552 61,462 60,057 • 50% increase QOQ • Annual guidance of 305-325 kt1 • Caserones performing extremely well, guidance increased to 65-69 kt Q4/22 Q1/23 Q2/23 Q3/23 Gold production of 35 koz 36,000 36,000 35,000 34,000 • Ann
Slide 7: Q3/23 Summary Production Results
Q3/23 Summary Production Results Zinc production of over 49 kt 48,553 49,774 44,308 36,115 • 38% increase QOQ (record production) • Higher throughput and grades • Annual guidance of 181-192 kt Q4/22 Q1/23 Q2/23 Q3/23 Nickel production of 4.3 kt 4,686 4,290 4,096 3,724 • Strong second and third quart
Slide 8: Q3/23 Summary Results
Q3/23 Summary Results Metal Mix Realized Prices1 Revenue by Metal Copper Zinc Zinc $3.77/lb $0.02/lb $0.09/lb $3.71/lb 9% $1.43/lb $3.03/lb Copper $0.21/lb $1.19/lb $1.11/lb $0.12/lb 65% Gold 5% Nickel Over $990M 7% in Revenue Q3/23 Prior Period MTM at Realized Q3/22 Q3/23 Prior Period MTM at Realiz
Slide 9: Operating and Capital Costs
Operating and Capital Costs Q3/2023 Operating Costs Candelaria Caserones Chapada Eagle Neves-Corvo Zinkgruvan Previous quarter $185M - $80M $46M $76M $18M Q3 Production costs $175M $189M $79M $52M $82M $37M Q3 Cash costs1 $2.19/lb Cu $1.60/lb Cu $2.28/lb Cu $2.07/lb Ni $2.27/lb Cu $0.28/lb Zn Q3 Cap
Slide 10: Q3/23 Key Financial Metrics
Q3/23 Key Financial Metrics Revenue Adjusted EBITDA1 Adjusted Earnings1 of over $990M of $415M $415M $992M $192M $354M $337M $811M $751M $126M $649M $86M $589M $202M $192M $46M $31M Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Adjusted Operating Cash Flow
Slide 11: Q3/23 Strong Cash Flow from Operations
Q3/23 Strong Cash Flow from Operations Key Changes in Cash $852 M $14 M $51 M $316 M $13 M $357 M $649 M $25 M $190 M $44 M $180 M $53 M Q2/23 Adj. Operating Working Sustaining Expansion Net Debt Shareholder FX & Diesel Caserones Chapada Interest Paid, Q3/23 EOP Cash Cash Flow Capital changes Capex
Slide 12: Caserones – Cash and Near Cash Impact
Caserones – Cash and Near Cash Impact CASH AT CLOSING NEAR TERM CASH CONVERSION 1 1 1 $206 $101 1 Working Capital Acquisition Closing Net Cash Receivables Inventory Net Cash Lockbox Cash Payables Price Adjustments Consideration (Concentrate & Consideration Cathode) 1. $800M headline price excludes a
Slide 13: Balance Sheet Remains Solid with Low Leverage
Balance Sheet Remains Solid with Low Leverage Net Debt1 Leverage Ratio $1,160M as of September 30, 2023 Net Debt/Adjusted EBITDA1 (LTM) $2,550M 0.9x Liquidity headroom RCF ~$1.4bn $1.75bn 0.2x $1,160M Term Loan $800M 0.0x 0.0x Net Debt September 30, Credit Facilities Q4/22 Q1/23 Q2/23 Q3/23 2023 1.
Slide 14: Synergies
Synergies Totoralillo Annual saving of $20M to $30M per year Caldera CHILE ~75 km ▪ Mainly driven by supply chain and logistics that represent Copiapó the first wave of synergies between the assets Candelaria ▪ Regional unit to centralize some of the key support functions ~105 km Caserones Populated
Slide 15: Caserones
Caserones Pulido Highly Prospective Land Package Come Caballos ▪ Aim to achieve similar exploration Don Diego success as at Candelaria Caserones East & West Deep Sulphides ▪ 58,525 hectares of total land area Vega del Obispo Cerro Sur Angelica ▪ Near-term priorities include testing high grade brecci
Slide 16: Josemaria Exploration Targets
Josemaria Exploration Targets Cumbre Verde Drilling underway at Portones with 2 rigs E 3 Km W Josemaria Pit Portones Cumbre Verde Lunahuasi DPDH003 DPDH001 DPDH006 DPDH002 DPDH005 DPDH004 DPDH007 SAN JUAN LA RIOJA Josemaria Property limit 16
Slide 17: Summary
Summary • Unique opportunity with current portfolio and the Josemaria development project • Disciplined approach • The right people, assets and financial strength to successfully deliver on our goals 17
Slide 18: www.lundinmining.com
www.lundinmining.com | TSX: LUN | Nasdaq Stockholm: LUMI
Slide 19: 2023 Guidance
2023 Guidance1 Production Guidance Production Revised Guidance 1,2,3 (t, oz; contained metal in conc.) Cash Cost (t, oz; contained metal in conc.) Cash Cost1,2,3 Candelaria (100%) 145,000 - 155,000 $1.80 - $1.95 147,000 - 153,000 $2.00 - $2.20 4 60,000 - 65,000 $2.30 - $2.45 65,000 - 69,000 $2.00 -
Slide 20: 2023 Guidance
2023 Guidance1 Capital Expenditures1,2 ($M) Sustaining Capital Guidance Revisions Revised Guidance Candelaria (100% basis) 400 (25) 375 • $45M to be invested in 2023 3 exploration programs, including Caserones (100% basis) - H2 Only 110 - 110 nearly 170,000 m of drilling Chapada 70 - 70 Eagle 20 - 2
Slide 21: NI 43-101 technical information
NI 43-101 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 releases (co