Slide 1: Q1 Results 2010 & Corporate Presentation
1 April 29, 2010 TSX: LUN OMX: LUMI Q1 Results 2010 & Corporate Presentation
Slide 2: Cautionary Statements
2 Cautionary Statements Caution Regarding Forward Looking Statements This presentation contains forward-looking statements. These forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events. These forward- looking statements ar
Slide 3: Q1 Highlights
3 Q1 Highlights Metal p prices around 100% higher g than same qquarter last yyear, US dollar weaker against European currencies As expected, European production for the quarter was below trend: industrial action at Neves-Corvo; Neves Corvo; abnormal weather conditions in Europe; and restri
Slide 4: Financial Position
4 Financial Position Net cash at March 31, 31 2010 of $10.2 $10 2 million million, the first net cash closing position since December 2007 Operating cashflow of $84.9 million compared to an outflow of $63.3 million a year earlier Net cash at April 26, 2010 of $22.9 million Corporate Operations
Slide 5: Change in Production: Q1 '10 and Q1 '09
5 Change in Production: Q1 ‘10 and Q1 ‘09 Tonnes Tonnes 30,000 154 2,156 24,240 6,829 2,200 151 192 1,961 4,560 2,000 Copper 20,000 12,844 Nickel 8 1,800 10,000 , N Excluding Tenke 7,120t 1,600 attributable share - 1,400 Q1-2009 Throughput Grade Recovery Q1-2010 Q1-2009 Throughput Grade Recovery Q1-
Slide 6: Financial Results
6 Financial Results Selected Financial Information: $ Millions Q1 '10 Q1 '09 Sales 141.7 123.4 15% Operating costs including ARO (72.3) (78.7) -8% SG&A and stock-based compensation (4.8) (6.5) -26% Operating Earnings 64.6 38.2 69% Add (deduct): Depreciation, Amortization (36.2) (43.5) Selected items
Slide 7: Outlook
7 Revised Guidance Prior guidance Outlook Tonnes C1 Tonnes C1 Comment Neves-Corvo Cu 77,000 $ 1.25 82,000 $ 1.20 Industrial action Zn 6 000 6,000 3 000 3,000 Zinkgruvan Zn 75,000 $ 0.30 75,000 $ 0.30 No change Pb 36,000 36,000 Cu 1 000 1,000 1 000 1,000 Aguablanca Ni 7,900 $ 6.25 7,500 $ 5.80 Increa
Slide 8: Outlook
8 O tl k Outlook 2010 revised production targets: 85,000t copper, 95,000t zinc, 40,000t lead and 7,900t 7 900t nickel. nickel Plus Tenke attributable: 28,500 28 500 tonnes of copper Zinc at Neves-Corvo to resume in 2011 at rate of 50,000 tpa. Earlier start at rate of 25,000 tpa is under evaluati
Slide 9: Key Asset Groups
9 Key Asset Groups Europe Tenke G Growth th 100% ownership 24.75% Internal 3 operating mines Tier 1 asset E t External l Copper, zinc, lead, Freeport operator nickel Copper, cobalt Corporate Operations Projects Exploration Growth
Slide 10: European Business
10 European Business LLeverage tto commoditydit cycle l Neves-Corvo Good internal growth prospects Stable jurisdiction/low political risk Cash cost competitive Zinkgruvan Aguablanca Corporate Operations Projects Exploration Growth
Slide 11: Neves-Corvo
11 Neves-Corvo Mine type End product Underground Concentrate Portugal Mine life – years 10+ Cu; 20+ Zn 2P Reserves - Contained Metal Copper 753kt Cu; 190kt Zn Zinc 3,603kt Zn; 863kt Pb; 202kt Cu M&I Resources - Inclusive of reserves Copper 753kt Cu; 190kt Zn Zinc 3,603kt Zn; 863kt Pb; 202kt Cu I f I
Slide 12: Zinkgruvan
12 Zinkgruvan Mine type Mi End product U d Underground Concentrate d Sweden Mine life – years 10+ 2P Reserves Zinc 11.1 MT @ 9.1% Zn; 4.3% Pb Copper 2.9 MT @ 2.6% Cu M&I Resources - Inclusive of reserves Zinc 14.5 MT @ 10.3% Zn; 5.0% Pb Copper 4.3 MT @ 2.6% Cu Inferred Resources Zinc 4.3 MT @ 9.6% Z
Slide 13: Aguablanca
13 Aguablanca Spain Mine type Open pit End product Concentrate Mine life – years 5 2P Reserves R Nickel/Copper 7.5 MT @ 0.64% Ni; 0.48% Cu M&I Resources - Inclusive of reserves Ni k l/C Nickel/Copper 14 4 MT @ 00.52% 14.4 52% NiNi; 00.45% 45% C Cu Inferred Resources Nickel/Copper 0.5 MT @ 0.27% Ni;
Slide 14: Tenke Fungurume Investment
14 Tenke Fungurume Investment 24.75% equity interest Large, long-life, low-cost, high- growth asset Tenke Potential to be one of the Fungurume world’s largest producers of copper and cobalt Phase 1 nameplate reached by end of 2009 Freeport is operator Higher political risk Corporate Oper
Slide 15: Tenke
15 Tenke Mine type Open pit End product Cu cathode, Co(OH)2 Democratic Rep Congo Lundin 24.75% 24 75% Mine life – yyears 40+ 2P Reserves + WIP Copper/Cobalt 138 MT @ 3.07% Cu; 0.34% Co M&I Resources - Inclusive of reserves Copper/Cobalt 351 MT @ 2.6% Cu; 0.27% Co Inferred Resources Copper/Cobalt 200
Slide 16: Internal Growth and External Funding
16 Growth Zinc at Neves-Corvo to resume in 2011 Lombador Zn/Cu targeting start-up early Internal 2013 Zinkgruvan Cu to commence Q2 2010 Tenke expansion study under way targeting additional 60ktpa copper Evaluation capabilities strengthened External Lundin actively assessing new base meta
Slide 17: Lombador Zinc/Copper Deposits
17 Lombador Zinc/Copper Deposits Surface Underground U d d SHAFT 2009 Drill Development Intersections 32m @ 3.8% Cu 22m @ 5.9% Cu 12m @ 3.1% Cu Lombador South 17m @ 3.2% Cu Zn/Cu Deposit LLombador b d E Eastt New Zn/Cu Deposit Zinc Area New Open Copper Area Open 27m @ 8.1% Zn 21m @ 8.9% 8 9% Zn 23m
Slide 18: Lombador South: Advancing to Feasibility
Lombador South: Advancing to Feasibility Pre-feasibility study on TP12 Conveyor L b d zinc/copper Lombador i / ddepositit 550 Haulage at an advanced stage Neves-Corvo Zn resources M&I 77MT 6.3% Zn; 1.5% Pb Copper Inferred 20MT 5.0% Zn; 1.2% Pb Zinc • PFS complete Q2 ’10 10 • Feasibility study target
Slide 19: Lundin Mining Summary
19 Lundin Mining Summary Significant g leverage g to copper pp and zinc markets: M&I Resources (Lundin’s share contained metal): 3.9Mt Cu; 6.9Mt Zn; 2.0Mt Pb; Stable operations and cashflow in Europe with excellent internal growth options: Zinc resumption at Neves-Corvo: 2011, or sooner A ne
Slide 20: Asset Overview
20 Asset Overview Neves-Corvo Zinkgruvan Aguablanca Galmoy Tenke Location Portugal Sweden Spain Ireland DRC Ownership 100% 100% 100% 100% 24.75% Status Producing Producing Producing Mine only Producing Growth potential World-class Zn deposit 10%+ throughput, Cu Very high Start-up year 1989 1857 2005