Lundin Mining Corporation · TSX:LUN
Lundin Mining — BMO 31st Global Metals & Mining Conference 2022
35 slides from Lundin Mining's conference presentation, Feb 28, 2022
Slide 1: BMO 31st Global Metals & Mining Conference
BMO 31 st Global Metals & Mining Conference February 28 th – March 2 nd , 2022 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: 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 Zinkgruvan • competitive cost position Eagle Zinc-Lead-Copper in Sweden Nickel-Copper-PGMs in U.S.A. • low-risk mining jurisdictions
Slide 4: Responsible Mining
Responsible Mining • sustainability performance reported in a comprehensive, standalone document since 2010 • prepared in accordance with the Global Reporting Initiative (GRI) Standards and broadly mapped against the Sustainability Accounting Standards Board (SASB) Metals & Mining Standard • continu
Slide 5: Responsible Mining in Action
Responsible Mining Responsible Mining in Action ✓ best-ever TRIF rate in 2021 of 0.54 Total Recordable Injury Frequency (TRIF) ✓ leading ISS Environment & Social Quality Scores per 200,000 person hours worked ✓ CDP score of ‘B’, above industry and North American averages ✓ trend of decreasing energy
Slide 6: 2021 Highlights
2021 Highlights High Quality Advanced Internal Remain Focused on Competitive Mines Growth Initiatives Value Creation • best-ever Total Recordable Injury Frequency • Neves-Corvo Zinc Expansion Project (ZEP) • declared C$0.39/sh in dividends in 2021; nearly (TRIF) rate of 0.54 construction substantial
Slide 7: 2021 Summary Results
2021 Summary Results Production Payable Sales 262,884 t of copper 250,282 t of copper 143,797 t of zinc 117,678 t of zinc 167,000 oz of gold 157,000 oz of gold 18,353 t of nickel 15,012 t of nickel 27,602 t of lead 24,135 t of lead Record $3.3B in Sales Sweden Other Gold 6% 7% 7% USA Nickel 14% 8% C
Slide 8: Financial Highlights
Financial Highlights Realized Metal Prices1,2 Q4/21 2021 2020 Δ Copper $4.76/lb $4.41/lb $2.88/lb 53% Zinc $1.65/lb $1.43/lb $1.03/lb 39% Gold $1,846/oz $1,774/oz $1,846/oz (4%) Nickel $9.67/lb $8.49/lb $6.22/lb 36% Summary Financial Results2 Q4/21 2021 2020 Δ Revenue $1,019M $3,329M $2,042M 63% Gro
Slide 9: Candelaria
Candelaria Strong Finish to 2021 Copper, Gold Production & Cash Cost Outlook1,2 (100% basis; kt Cu, koz Au & $/lb Cu, net of by-product credits) • copper production achieved, and gold production exceeded, most recent guidance • cash cost of $1.51/lb of copper bettered most recent guidance • particul
Slide 10: Chapada
Chapada Record Mill Throughput Copper, Gold Production & Cash Cost Outlook1 (100% basis; kt Cu, koz Au & $/lb Cu, net of by-product credits) • copper production exceeded guidance and gold production achieved the top end of annual guidance • set annual mill throughput record of 24.1 Mt processed 76 7
Slide 11: Copper-Gold Saúva Discovery at Chapada
Copper-Gold Saúva Discovery at Chapada 1 • located approximately 15 km north of Chapada mine • exploration concession was prioritized and acquired in 2021 federal auction process • first two drill holes confirmed presence of shallow high-grade copper-gold mineralization • 47 drill holes completed to
Slide 12: Copper-Gold Saúva Discovery at Chapada
Copper-Gold Saúva Discovery at Chapada 1 1. Refer to news release “Lundin Mining Announces New Copper-Gold Saúva Discovery at Chapada” dated February 10, 2022. 12
Slide 13: Eagle
Eagle Strong Performance Continues Nickel, Copper Production & Cash Cost Outlook1 • nickel and copper production achieved annual guidance (kt & $/lb Ni, net of by-product credits) • cash cost of negative $1.24/lb of copper bettering guidance 2022 Outlook 18 18 15-18 15-18 • production to be weighted
Slide 14: Neves-Corvo
Neves-Corvo Q4/21 Strongest of the Year Copper, Zinc Production & Cash Cost Outlook3 (kt & $/lb Cu, net of by-product credits) • copper production achieved the top end of annual guidance and zinc production was inline with guidance 142-152 142-152 • cash cost of $1.89/lb of copper bettered guidance
Slide 15: Neves-Corvo – ZEP
Neves-Corvo – ZEP Underground • materials handling and crushing systems commissioned with first ore in December 2021 • service water piping construction finalized, and all dewatering piping supports installed • electrical rooms commissioned Underground construction photos – Q4/21 Material handling s
Slide 16: Neves-Corvo – ZEP
Neves-Corvo – ZEP Surface • finalized all process plant circuits • completed commissioning of 3rd thickener • completed backfill cyclones commissioning and start-up • continued pastefill expansion works Surface construction photos – Q4/21 Materials handling surface works Brownfield and greenfield –
Slide 17: Zinkgruvan
Zinkgruvan Continued Excellent Performance Zinc Production & Cash Cost Outlook1 (kt & $/lb Zn, net of by-product credits) • zinc production exceeded annual guidance • cash cost of $0.53/lb of zinc bettered guidance 85-90 83-88 2022 Outlook • zinc production to increase on head grades and metal recov
Slide 18: 2022 Guidance Summary
2022 Guidance Summary1 Production (contained metal in conc.) Cash Cost2 Capital Expenditures ($M) Copper (t) Candelaria (100%) 155,000 - 165,000 $1.553 Sustaining Capital Candelaria (100% basis) 370 Chapada 53,000 - 58,000 $1.603 Eagle 15,000 - 18,000 Chapada 65 Neves-Corvo 33,000 - 38,000 $1.803 Ea
Slide 19: Josemaria Resources Acquisition
Josemaria Resources Acquisition1 • Increased Scale & Growth in Copper & Gold • Clear Path to Development • Asset & Geographic Diversification • Attractive Resource Base with District Potential Josemaria Copper-Gold Project, San Juan, Argentina 19 1. Announced acquisition remains subject to completio
Slide 20: Appendix
Appendix lundin mining
Slide 21: Josemaria Overview
Josemaria Overview1 Copper-Gold Porphyry Project ✓ top-10 Americas open-pit copper project by Mineral Reserves Josemaria Resources – November 2020 Feasibility Study ✓ multi-decade mine life potential Copper Equivalent Mineral Reserves / Grade2 4,646 kt / 0.46% ✓ in first 8 years of operation, estima
Slide 22: District Potential & First Mover Advantage
District Potential & First Mover Advantage Lundin Mining Candelaria Copper Complex, Chile Las Pailas Porphyry Copper-Gold-Silver Prospect Source: Josemaria Resources Source: Josemaria Resources • potential to further increase value over the longer-term leveraging Lundin Mining’s copper-focused explo
Slide 23: Josemaria Resources Acquisition Transaction Summary
Josemaria Resources Acquisition Transaction Summary Proposed • Lundin Mining to acquire 100% of Josemaria Resources common shares by way of Plan of Arrangement Transaction • Implied equity value of C$625M ($485M) • C$1.60 per share offer represents a 29% premium to the 10-day volume weighted average
Slide 24: Josemaria Mineral Reserves Support Long Life
Josemaria Mineral Reserves 1 Support Long Life Mineral Reserve Statement Long Section of Pit Phase Designs Contained Metal Tonnes Copper Gold Silver Copper Gold Silver Category (Mt) % g/t g/t (M lb) (M oz) (M oz) Proven 197 0.43 0.34 1.33 1,844 2.14 8.43 Probable 815 0.27 0.19 0.85 4,861 4.87 22.29
Slide 25: Josemaria Mineral Resources Offer Upside Potential
Josemaria Mineral Resources 1 Offer Upside Potential Sulphide Mineral Resource Statement at 0.1% Copper Equivalent Cut-Off Oxide Mineral Resource Statement at 0.2 g/t Gold Cut-Off Contained Metal Contained Metal Tonnes Copper Gold Silver Copper Gold Silver Tonnes Gold Silver Gold Silver Category (Mt
Slide 26: Responsible Mining: Tailings Management
Responsible Mining Tailings Management • employ a comprehensive and integrated approach to tailings management. This provides confidence that potential environmental and social impacts can be reliably identified and minimized • our Responsible Mining Policy and Responsible Mining Management System (
Slide 27: Responsible Mining: Climate Change, Energy and GHG Emissions
Responsible Mining Climate Change, Energy and CHG Emissions • recognize the need for effective approaches to managing climate-related responsibilities, especially in consideration of the remote locations in which we operate, the energy-intensive nature of our industry, and the sometimes-limited avai
Slide 28: Responsible Mining: Water Stewardship
Responsible Mining Water Stewardship • continue to make water stewardship gains, achieving measurable reductions in freshwater use and increases in water re-use in 2020 • committed to improvements in water assessment and management practices, evaluating water-use efficiency, initiatives to prevent u
Slide 29: Candelaria Complex – Mineral Resources and Mineral Reserves
Candelaria Complex – Mineral Resources and Mineral Reserves1 Ownership 80% Location Region III, Chile Mine life +20 years 2022 exploration budget $15M P&P Copper Mineral Reserves 3,583 kt contained (675,574 kt at 0.53%) M&I Copper Mineral Resources 7,854 kt contained (1,244,543 kt at 0.63%) Inferred
Slide 30: Chapada – Mineral Resources and Mineral Reserves
Chapada – Mineral Resources and Mineral Reserves1 Ownership 100% Location Goiás State, Brazil Mine life +30 years 2022 exploration budget $10M P&P Copper Mineral Reserves 1,710 kt contained (754,870 kt at 0.23%) M&I Copper Mineral Resources 2,508 kt contained (1,075,009 kt at 0.23%) Inferred Copper
Slide 31: Eagle Mine – Mineral Resources and Mineral Reserves
Eagle Mine – Mineral Resources and Mineral Reserves1 Ownership 100% Location Michigan, USA Mine life 4 years 2022 exploration budget $2M P&P Nickel Mineral Reserves 77 kt contained (3,280 kt at 2.4%) M&I Nickel Mineral Resources 83 kt contained (3,055 kt at 2.7%) P&P Copper Mineral Reserves 64 kt co
Slide 32: Neves-Corvo – Mineral Resources and Mineral Reserves
Neves-Corvo – Mineral Resources and Mineral Reserves1 Ownership 100% Location Alentejo region, Portugal Mine life +10 years 2022 exploration budget $8M P&P Zinc Mineral Reserves 1,858 kt contained (24,774 kt at 7.5%) M&I Zinc Mineral Resources 4,702 kt contained (68,352 kt at 6.9%) Inferred Zinc Min
Slide 33: Zinkgruvan – Mineral Resources and Mineral Reserves
Zinkgruvan – Mineral Resources and Mineral Reserves1 Ownership 100% Location Askersund, Sweden Mine life +10 years 2022 exploration budget $5M P&P Zinc Mineral Reserves 808 kt contained (10,270 kt at 7.9%) M&I Zinc Mineral Resources 1,644 kt contained (20,338 kt at 8.1%) Inferred Zinc Mineral Resour
Slide 34: 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 35: www.lundinmining.com
www.lundinmining.com | TSX: LUN | Nasdaq Stockholm: LUMI
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