Lundin Mining Corporation · TSX:LUN
Lundin Mining — Symterra — Merger or Acquisition (January 2011)
38 slides from Lundin Mining's merger presentation, Jan 13, 2011
Slide 1: Symterra
Symterra January 13, 2011 1
Slide 2: $9 Billion Merger of Equals to Create Symterra
$9 BILLION MERGER OF EQUALS TO CREATE Jan 12, 2011 Combining portfolio of low-cost, long-life producing mines with exceptional, long life 2 growth projects
Slide 3: Forward Looking Information
Forward Looking Information Securities regulators encourage companies to disclose forward-looking information to help investors understand a company’s future prospects. This presentation contains statements about Inmet, Lundin and Symterra’s future financial condition, results of operations and busi
Slide 4: Presenters
Presenters Chairman of Lundin Mining President & CEO of Inmet Mining Lukas H. Lundin Jochen Tilk Legend Operations / Major Growth Projects Head Office 4
Slide 5: European Operating Strength and Stability
European Operating Strength and Stability Low cost copper in Iberia….. Las Cruces - Spain Neves-Corvo - Portugal 50 kt 2011E Copper production 76 kt 2011E Copper production 5
Slide 6: European Operating Strength and Stability
European Operating Strength and Stability Low cost copper/zinc in Northern Europe….. Zinkgruvan - Sweden Pyhäsalmi - Finland 78 kt 2011E Zinc production 13 kt 2011E Copper production 38 kt 2011E Lead production 32 kt 2011E Zinc production 6
Slide 7: Operating Strength and Stability
Operating Strength and Stability And Turkey… Çayeli - Turkey 31 kt 2011E Copper production 49 kt 2011E Zinc production 7
Slide 8: Brownfield Potential at Existing Mines
European Operating Strength and Stability Brownfield Potential at Existing Mines… Neves Corvo Plan View showing deposits and underground development Lombador zinc/copper targeting start-up 2013 Semblana new high-grade copper deposit being defined Exploration potential at Çayeli and Pyhäsalmi could e
Slide 9: With Exceptional Long Term Growth
With Exceptional Long Term Growth World class copper development projects… Tenke Fungurume Cobre Panama 9
Slide 10: And a Global Exploration Portfolio
And a Global Exploration Portfolio Legend Exploration 10 Head Office 10
Slide 11: Merger of Equals Overview
Merger of Equals Overview • At market merger, zero premium merger based on 30-day VWAP Consideration • Lundin shareholders to receive 0.33 shares of Symterra • Inmet shareholders to receive 3.49 shares of Symterra Pro Forma • Inmet market cap: US$4.6 bln Lundin market cap: US$4.3 bln Contribution1 A
Slide 12: Merger Benefits
Merger Benefits • Strong cash flow from portfolio of low cost, long life producing mines • Two world class development projects • Cash resources in excess of $1.3 billion and strong ongoing cash flow • Leading copper growth profile • High leverage to copper • Diversified metal production • Shared va
Slide 13: Combined Operating Portfolio
Combined Operating Portfolio 6 Established Mines, 2 World Class Growth Projects 100% Las Cruces 100% Zinkgruvan +14 year LOM +10 year LOM 100% Neves-Corvo +10 year LOM 100% Pyhäsalmi +8 year LOM Growth Projects Legend 100% Neves-Corvo Lundin Mining Semblana Inmet Mining 100% Çayeli Lombador Head Off
Slide 14: Enhanced Size and Liquidity
Enhanced Size and Liquidity Senior Producers Intermediate Producers $40.0 $35.0 Market Cap (US$ bln) $30.0 $25.0 $20.0 $15.0 $9.5 $10.0 $4.6 $4.3 $5.0 $0.0 Teck Antofagasta KGHM Polska First Quantum Vedanta Symterra Boliden Oz Equinox Inmet Lundin Resources Symterra moves into the senior peer group
Slide 15: Leading Copper Growth Profile
Leading Copper Growth Profile Copper Production - 2011E and 2017E1 750 Copper Production 500 (kt Cu) 250 0 2011E 2017E Organic production growth to realize revenue from over 500kt of copper annually 15 1 “CAGR” = Compounded Annual Growth Rate. 2011 production estimates based on 2011 company guidance
Slide 16: Leading Position Among International Copper Producers
Leading Position Among International Copper producers Senior and Intermediate Copper Producers - 2011E Production Estimates1,2 , 4with Symterra 2017 Added Tenke Expansion 800 Cobre Panama 2011E Production 600 (Kt Cu) 400 200 0 Antofagasta KGHM Vedanta Symterra Teck First Symterra Equinox Lundin Oz I
Slide 17: Lowest Quartile Cash Costs
Lowest Quartile Cash Costs 2011E Copper Mine Cash Costs by Company (US$/lb Cu) Symterra Symterra will be in the lowest cost quartile 17 Source: AME Mineral Economics.
Slide 18: Leading Leverage to Copper
Leading Leverage to Copper 2011 Copper Production per $100,000 invested1,2 8.0 Tenke Expansion Cobre Panama (Cu Tonne / $100,000 6.0 Invested) 4.0 2.0 0.0 Symterra Vedanta KGHM Polska Equinox First Quantum Antofagasta Symterra Oz Boliden Teck (2017) Resources Total Copper Reserves per $100,000 inves
Slide 19: Long Term Commitment to Copper
Long Term Commitment to Copper 2011E NSR Contribution1 2017E NSR Contribution1 Other Metals Other Metals 15% 10% Zinc Zinc 15% 8% Copper 75% Copper 77% Maximum copper leverage while still providing diversification 19 1 NSR Contribution shown based on analyst consensus commodity prices. Diagrams show
Slide 20: Balanced Political Risk
Balanced Political Risk 2011-2015E Average Copper Equiv. Production1 2017E Average Copper Equiv. Production1,2 Africa Europe 21% 37% Europe Panama 79% 41% Africa 22% European base provides foundation for future growth projects 20 1 Copper equivalent calculations based on analyst consensus commodity
Slide 21: Board Composition
Board Composition Chairman President & CEO Lukas H. Lundin Jochen Tilk The New Board Lukas H. Lundin, Chairman Jochen Tilk, President and CEO David R. Beatty, Vice Chairman Donald Charter Paul Conibear Paul E. Gagné Thomas E. Mara William A. Rand Douglas Whitehead Phil Wright 21
Slide 22: Transaction Timeline
Transaction Timeline Date Milestone January 12, 2011 Transaction Announcement Mid-February 2011 Circular Mailing Date March 14 2011 Shareholder Meetings 22
Slide 23: Introducing a New Canadian Senior Growth Story
Introducing a New Canadian Senior Growth Story • Strong cash flow from portfolio of low cost, long life producing mines • Two world class development projects • Cash resources in excess of $1.3 billion and strong ongoing cash flow • Leading copper growth profile • High leverage to copper • Diversifi
Slide 24: Jan 12, 2011
Jan 12, 2011 24
Slide 25: Thank you
Thank you 25
Slide 26: Appendix
Appendix = -_ ee x« * A on a)
Slide 27: Established Mines Las Cruces – Spain
Established Mines Las Cruces – Spain, Europe • Las Cruces is a high grade low cost open pit mine located in the Sevilla Province of Southern Spain • Commissioned in 2009, the deposit was originally discovered by Rio Tinto in 1994 • High grade mineral reserves of 16.5 million tonnes @ 6.3% Cu as at D
Slide 28: Established Mines Neves-Corvo – Portugal
Established Mines Neves-Corvo – Portugal, Europe • Neves-Corvo is an underground copper and zinc mine situated in the southeast of Lisbon in the Alentejo district of southern Portugal • Commissioned in 1989, the deposit was acquired through the merger with EuroZinc in October 2006 • One of the world
Slide 29: Established Mines Zinkgruvan – Sweden
Established Mines Zinkgruvan – Sweden, Europe • Zinkgruvan is an underground zinc, lead and silver mine situated in southwest Sweden with continuous production since 1857 • Mineral reserves as at June 30, 2010: ▪ Zinc-rich ores: 11.0 million tonnes @ 9.1% Zn; 4.4% Pb; 95 g/t Ag ▪ Copper-rich: 2.9 mi
Slide 30: Established Mines Pyhäsalmi – Finland
Established Mines Pyhäsalmi – Finland, Europe • Pyhäsalmi is a low cost underground copper, zinc and pyrite mine located in central Finland • Originally commissioned in 1962, the new shaft and infrastructure was developed in 2001 • Mineral reserves of 11.8 million tonnes @ 1.1% Cu; 2.2% Zn as at Dec
Slide 31: Established Mines Çayeli – Turkey
Established Mines Çayeli – Turkey • Çayeli is an underground copper and zinc mine located on the Black Sea coast of northeastern Turkey • Commissioned in 1994 • Mineral reserves of 9.0 million tonnes @ 3.5% Cu; 4.9% Zn as at December 31, 2009 • Target annual throughput rate of 1.2 million tonnes for
Slide 32: World-Class Growth Projects: Tenke Fungurume
World-Class Growth Projects Tenke Fungurume – DRC, Africa • Tenke Fungurume is an open-pit copper and cobalt mine located on the Copperbelt in the Democratic Republic of Congo (DRC) • Copper cathode production commenced in 2009 • Multiple deposits - One of the world’s largest high grade copper and c
Slide 33: World-Class Growth Projects: Cobre Panama
World-Class Growth Projects Cobre Panama – Panama, Central America • Cobre Panama is a large open-pit copper development project located in Panama • One of the world’s largest undeveloped copper porphyry deposits • Positive feasibility study results released in March 2010 • EP+CM awarded to SNC-Lava
Slide 34: Inmet – Reserves
Inmet – Reserves Contained Metal (x 1000) Category Tonnes Cu Zn Au Ag S Mo Cu Zn Au Ag Mo Inmet’s (x 1000) % % g/t g/t % ppm tonnes tonnes ounces ounces tonnes Interest Reserves Çayeli1 Proven 5,063 3.5 5.2 0.5 42 - - 179 261 86 6,837 - 100% Probable 3,928 3.5 4.5 0.4 40 - - 135 175 55 5,051 - 100%
Slide 35: Inmet – Resources
Inmet – Resources Contained Metal (x 1000) Category Tonnes Cu Zn Au Ag S Mo Cu Zn Au Ag Mo Inmet’s (x 1000) % % g/t g/t % ppm tonnes tonnes ounces ounces tonnes Interest Resources Çayeli1 Measured 1,752 3 2.6 0.5 19 - - 53 46 26 1,070 - 100% Indicated 2,353 2.9 2.4 0.5 18 - - 68 57 37 1,362 - 100% I
Slide 36: Lundin – Reserves
Lundin – Reserves Contained Metal (x 1000) Category Tonnes Cu Zn Pb Ag Ni Co Cu Zn Pb Ag Ni Co Lundin (X 1000) % % % g/t % % tonnes tonnes tonnes ounces tonnes tonnes Interest Reserves Copper Neves-Corvo1 Proven 21,176 3.6 1 0.3 43 - - 770 210 65 29 - - 100% Probable 2,071 2.7 0.6 0.5 48 - - 57 13 1
Slide 37: Lundin – Resources
Lundin – Resources Contained Metal (x 1000) Category Tonnes Cu Zn Pb Ag Ni Co Cu Zn Pb Ag Ni Co Lundin (X 1000) % % % g/t % % tonnes tonnes tonnes ounces tonnes tonnes Interest Resources Copper Neves-Corvo1 Measured 36,995 3.4 1.2 0.4 50 - - 1239 440 141 59 - - 100% Indicated 3,895 2.4 1 0.6 53 - -
Slide 38: Notes on Mineral Reserves and Resources Tables
Notes on Mineral Reserves and Resources Tables Inmet Mineral Reserves and Resources Lundin Mineral Reserves and Resources Mineral reserves and resources are shown on a 100 percent basis for each property. Except as stated, mineral resources are Mineral reserves and resources are shown on a 100 perce