Slide 1: Corporate Presentation
TSX: LUN OMX: LUMI Corporate Presentation March 2017 Neves-Corvo, Portugal 1
Slide 2: Cautionary Statements
Cautionary Statements Caution Regarding Forward-Looking Information and Non-GAAP Performance Measures This presentation contains forward-looking information, including, but not limited to, guidance on estimated annual production and cash costs. This forward- looking information is not based on histo
Slide 3: Strong Margins and Meaningful Scale
Lundin Mining Strong Margins and Meaningful Scale1 High Quality Competitive Mines (operating margin, %) - positive operating cash flows at all 70% operations through the low commodity price environment 60% Zinkgruvan 50% Meaningful Production Scale & Growth Eagle Candelaria - internal growth project
Slide 4: Geographically Diversified
Geographically Diversified Freeport Cobalt1 Cobalt Refinery Zinkgruvan (Finland) Zinc-Lead-Copper (Sweden) Eagle Nickel-Copper-PGMs (USA) Neves-Corvo Copper-Zinc (Portugal) Tenke Fungurume1 Copper-Cobalt (DRC) Candelaria2 Copper-Gold-Silver (Chile) 1. Lundin Mining holds an indirect 24% equity stake
Slide 5: Diversified Base Metal Miner – 2016 Revenue Breakdown
Diversified Base Metal Miner – 2016 Revenue Breakdown 2016 sales of $1.55B Lead Other 4% 3% Gold 6% Zinkgruvan Majority of sales from 11% Nickel Candelaria 8% Eagle 16% Good contribution from each of Neves-Corvo, Candelaria 55% Zinc Copper 13% Eagle and Zinkgruvan Neves-Corvo 66% 18% Increasing cont
Slide 6: 2016 Operating Highlights
2016 Operating Highlights Strong aggregate performance across all operations All mines generated operating cash flow through low commodity prices Candelaria copper production exceeded guidance on better than planned throughput and improving copper head grade Eagle achieved copper production guidance
Slide 7: Responsible Mining
Responsible Mining Safety Performance Environmental Performance TRIF per 200,000 person hours worked - excellent track record and improving performance each year 5.6 - increased reporting and disclosure practices International Green Apple Award for Environmental Best Practice for Galmoy 3.5 Wetlands
Slide 8: Balance Sheet Strength and Flexibility
Balance Sheet Strength and Flexibility Cash balance at February 20, 2017 of approximately $850M and net debt of approximately $150M Approved quarterly dividend policy and declared first dividend $350M revolving credit facility undrawn Cash and Cash Equivalents Liquidity Position (Dec. 31, 2016) 35%
Slide 9: Capital Allocation Strategy Focus on Disciplined Growth
Capital Allocation Strategy Focus on Disciplined Growth Invest in high-return brownfield expansion projects and exploration Service regular dividend Keep flexible balance sheet to move quickly on compelling growth opportunities - prudent and accretive management of debt and cash positions Consider o
Slide 10: Internal Growth Projects
Internal Growth Projects Neves-Corvo Zinc Expansion Project Zinkgruvan 1350 Expansion Project - doubling of current zinc production levels - ~10% mill capacity increase on schedule within 28 months of full project approval for mid-2017 commissioning - in permitting Zinkgruvan 1350 Expansion Project
Slide 11: 2017 Capital Expenditure and Exploration Guidance
2017 Capital Expenditure and Exploration Guidance Los Diques Tailings Project – total costs Capital Expenditures 1 (US$M) estimated at $295M. Remaining to be spent: Total Capitalized Stripping 2 105 - $135M in 2017 Los Diques Facility 135 Other Candelaria Sustaining 25 - $30M in 2018 Total Candelari
Slide 12: 2017 Production and Cash Cost Outlook
2017 Production and Cash Cost Outlook Attributable Production1 and C1 Cash Cost2 (kt and $/lb, net of by-products) Copper Candelaria (80%) 145,000 – 150,000 $1.20/lb Eagle 15,000 – 18,000 Neves-Corvo 41,000 – 46,000 $1.35/lb Zinkgruvan 1,000 – 2,000 Total Attributable 202,000 – 216,000 Nickel Eagle
Slide 13: Candelaria
Candelaria Copper / Gold / Silver – Region III, Chile 13
Slide 14: Candelaria
Candelaria Copper Production & Cash Cost (100% basis; kt & $/lb Cu, net of by-product credits) 2016 copper production of 166.6 kt (100% basis) - exceeded target on mill throughput performance Last Five Quarters - $1.31/lb copper cash cost bettered guidance of $1.35/lb 49.1 39.8 41.5 39.1 36.9 $1.40
Slide 15: Candelaria LOM Production Profile
Candelaria LOM Production Profile Copper Production Profile1 (100% basis, kt Cu) 188 171 167 165 165 160 162 129 122 114 111 110 109 99 102 101 93 94 64 38 2016A 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 January 2017 Technical Report At Purchase (
Slide 16: Eagle
Eagle Nickel / Copper / PGMs – Michigan, U.S.A. 16
Slide 17: Eagle
Eagle Nickel, Copper Production & Cash Cost (kt & $/lb Ni, net of by-product credits) 2016 production of 24.1 kt nickel and 23.4 kt copper Last Five Quarters - met guidance on continued robust performance 7.1 6.2 6.8 6.0 6.0 6.1 5.6 5.8 5.7 5.2 - excellent margins even at low nickel prices - cash co
Slide 18: Eagle and Eagle East Overview
Eagle and Eagle East Overview Eagle Decline & Development Eagle East Proposed Ramp 18
Slide 19: Eagle East – Potential Meaningful Addition to Profile
Eagle East – Potential Meaningful Addition to Profile Preliminary Economic Assessment on Eagle East completed in June 2016 Nickel Production Profile1 Copper Production Profile1 25 (kt) 25 (kt) 20 20 15 15 10 10 5 5 0 0 2016 2017 2018 2019 2020 2021 2022 2023 2016 2017 2018 2019 2020 2021 2022 2023 E
Slide 20: Neves-Corvo
Neves-Corvo Copper / Zinc – Portugal 20
Slide 21: Neves-Corvo
Neves-Corvo Copper, Zinc Production & Cash Cost (kt & $/lb Cu, net of by-product credits) 2016 production of 46.6 kt copper and 69.5 kt zinc - zinc plant stable with improved recoveries Last Five Quarters 17.7 18.3 17.6 - initiatives underway to improve copper recoveries in 15.9 complex ore zones 14
Slide 22: Neves-Corvo Overview
Neves-Corvo Overview Zambujal Lombador : anit ae 22 lundin mining
Slide 23: Zinkgruvan
Zinkgruvan 23 Zinc / Lead / Copper – Sweden
Slide 24: Zinkgruvan
Zinkgruvan Zinc, Lead Production & Cash Cost (kt & $/lb Zn, net of by-product credits) 2016 production of 78.5 kt zinc and 1.9 kt copper - cash cost of $0.37/lb zinc beat guidance of $0.40/lb zinc Last Five Quarters 25.3 22.7 Increased zinc production targeted for 2017 of 80-85 kt 17.3 18.8 19.8 10.
Slide 25: Tenke Fungurume
Tenke Fungurume 25 Copper / Cobalt – DRC
Slide 26: Tenke Fungurume
Tenke Fungurume 2016 production of 215.9 kt copper and 16.1 kt cobalt (100% basis) Copper, Cobalt Production & Cash Cost - record copper production in 2016 (100% basis; kt & $/lb Cu, net of by-product credits) - cash cost of $1.23/lb copper slightly bettered full year Last Five Quarters guidance 56.
Slide 27: Lundin Mining
Lundin Mining High Quality Competitive Mines - strong margins at all operations Meaningful Production Scale & Growth - internal growth projects and exploration upside at all operations Financial Strength - from profitable assets run with disciplined capital allocation 27
Slide 28: Appendices
TSX: LUN OMX: LUMI Appendices 28
Slide 29: Production Outlook
Production Outlook1 2017 2018 2019 Copper Candelaria (80%) 145,000 – 150,000 131,000 – 136,000 126,000 – 131,000 Eagle 15,000 – 18,000 14,000 – 17,000 14,000 – 17,000 Neves-Corvo 41,000 – 46,000 42,000 – 47,000 45,000 – 50,000 Zinkgruvan 1,000 – 2,000 2,000 – 3,000 3,000 – 4,000 Total Attributable 2
Slide 30: Candelaria Complex
Candelaria Complex Ownership 80% Location Region III, Chile Mine life +15 years 2017 exploration budget ~$32M P&P copper reserves 2,604 kt contained (482,533 kt @ 0.5%) M&I copper resources 4,428 kt contained (688,987 kt @ 0.6%) Inferred copper resources 541 kt contained (61,589 kt @ 0.9%) P&P gold
Slide 31: Candelaria – Los Diques Construction
Candelaria – Los Diques Construction As at January 28, 2017 31
Slide 32: Eagle Mine and Eagle East Overview
Eagle Mine and Eagle East Overview Ownership 100% Location Michigan, USA Mine life 7 years 2017 exploration budget ~$16M P&P nickel reserves 95 kt contained (3,717 kt @ 2.5%) M&I nickel resources 119 kt contained (3,671 kt @ 3.3%) P&P copper reserves 82 kt contained (3,717 kt @ 2.2%) M&I copper reso
Slide 33: Neves-Corvo Overview
Neves-Corvo Overview Ownership 100% Location Alentejo region, Portugal Mine life +10 years 2017 exploration budget ~$3M P&P zinc reserves 1,678 kt contained (23,449 kt @ 7.2%) M&I zinc resources 6,527 kt contained (106,819 kt @ 6.1%) Inferred zinc resources 499 kt contained (11,386 kt @ 4.4%) P&P co
Slide 34: Zinkgruvan Overview
Zinkgruvan Overview Ownership 100% Location Askersund, Sweden Mine life +10 years 2017 exploration budget ~$5M P&P zinc reserves 861 kt contained (10,770 kt @ 8.0%) M&I zinc resources 1,511 kt contained (16,090 kt @ 9.4%) Inferred zinc resources 653 kt contained (7,862 kt @ 8.3%) P&P lead reserves 3
Slide 35: Tenke Fungurume Overview
Tenke Fungurume Overview Ownership 24% indirect equity interest Location Southeast region, DRC Mine life +40 years P&P copper reserves 3,760 kt contained (144,362 kt @ 2.6%) M&I copper resources 16,857 kt contained (680,341 kt @ 2.5%) Inferred copper resources 11,594 kt contained (531,651 kt @ 2.2%)
Slide 36: NI 43-101 Compliance
NI 43-101 Compliance Unless otherwise indicated, Lundin Mining Corporation has prepared the technical information in this presentation (“Technical Information”) based on information contained in the technical reports and news releases (collectively the “Disclosure Documents”) available under Lundin
Slide 37: Notes
Notes 37 lundin mining
Slide 38: Notes
Notes 38 lundin mining
Slide 39: TSX: LUN OMX: LUMI
TSX: LUN OMX: LUMI 39