Lundin Mining Corporation · TSX:LUN
Lundin Mining — Investor Presentation (September 2024)
58 slides from Lundin Mining's investor presentation, September 2024
Slide 1: Disciplined Copper Growth at Scale
Disciplined Copper Growth at Scale Corporate Presentation TSX: LUN NASDAQ STOCKHOLM: LUMI September 2024
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 are “forward-looking information” within the meaning of applicable parties and consultants in foreign jurisdictions; information techn
Slide 3: Overview
Overview Company Overview 4 Joint acquisition of Filo and Partnership on the Josemaria Project 10 Operations 14 Filo del Sol & Josemaria Projects 23 Vicuña District 34 Sustainability 37 Financial Performance 41 Production & Cost Guidance 48 Exploration 52 Mineral Reserves & Mineral Resources 54 Lund
Slide 4: Company Overview
Company Overview Purpose-built team to deliver results
Slide 5: Company Overview
Company Overview 2023 Cu Production1 315kt Zn Ni Au 2023A ▪ 6 assets, 75% copper ▪ Record Cu | Zn production ▪ Annualized dividend2 of 2.8% 185kt 16kt 149koz ▪ Net debt: $894M3 2023 Financial Summary $3.4B $1.4B $345M $206M revenue adj. EBITDA4 FCF from ops4 1. For more information, please refer to
Slide 6: 2024 Production Guidance & Key Milestones
2024 Production Guidance1 & Key Milestones 2024 Cu 366 – 400 kt Cu Zn Ni Au 195 – 215 kt 7 – 9 kt 155 – 170 koz Key Milestones ▪ Completed: Copper production growth from Caserones ownership option (19%) ▪ Announced: Acquisition of Filo & partnership of the Josemaria Project (Q1 2025 close) 1. For mo
Slide 7: Delivering on our Strategy
Revenue: $3,392M Delivering on our Strategy Disciplined copper growth at scale Acquired Reserves 406% Caserones Acquired Production 183% Sold Tenke Acquired Josemaria 1600 Revenue 366% Chapada 1400 10,630 kt 1200 Acquired 8,410 kt 1000 Candelaria 800 Revenue: 6,227 kt 6,249 kt 6,018 kt $728M 600 4,5
Slide 8: Track Record of Mineral Resource Growth
Track Record of Mineral Resource Growth1,2 Exploration has been a core value driver for Lundin Mining 320 Candelaria Cu % 101 Neves Corvo Cu % Acquisition year: 2014 Acquisition year: 2006 1,390 60 % % Zinkgruvan Zn Eagle Ni Acquisition year: 2004 Acquisition year: 2013 1. Growth in M&I copper, nick
Slide 9: Capital Return to Shareholders
Capital Return to Shareholders ▪ +$1.1 billion returned to shareholders via dividends and share buybacks since 2017 ▪ Annualized dividend1 of C$0.36/sh or 2.8% $335M Shareholder Returns2 (US$M) $268M $206M $99M $88M $68M $67M 2017 2018 2019 2020 2021 2022 2023 1. For more information, please refer t
Slide 10: Joint acquisition of Filo & Partnership on the Josemaria Project
Joint acquisition of Filo & Partnership on the Josemaria Project Transaction Highlights
Slide 11: Transaction Overview
Transaction Overview: Cash consideration for 50% of Josemaria 50% 50% New Joint Venture 100% 100% Filo Del Sol Project Project Lundin Mining Corporate Presentation 2024 11
Slide 12: Transaction Rationale
Transaction Rationale Delivering on our strategy ▪ Consolidates the Vicuña district, creating a leading platform in one of the most geologically prospective regions in the world ▪ Transforms Lundin Mining’s growth story ▪ Establishes a partnership with BHP, an industry leader with project, operation
Slide 13: Balance Sheet Considerations
Balance Sheet Considerations Strong financial position Q2 2024 Recap1 ▪ Net debt: US$894 million – 0.5x leverage ratio ▪ Liquidity headroom of US$1.47 billion Deal Impact ▪ Cash receipt of US$690 million for 50% sale of Josemaria ▪ Cash payment of C$859 million2 for cash consideration to Filo Shareh
Slide 14: Operations
Operations Six operating assets with over 75% of our revenue coming from copper
Slide 15: 2024 Production: 383 kt Cu | 205 kt Zn
Eagle2 2024 Production: 2 Ni Cu 6kt Cu Co PGM 8kt Ni 383 kt Cu | 205 kt Zn Copper focused base metal producer Corporate Office Zinkgruvan2 ▪ Diversified asset base in the Candelaria1,2 Zn Pb Cu 80kt Zn Americas and Europe Cu Cu 165kt Cu 105koz Au Au Au ▪ Largest zinc producer in Europe Neves-Corvo2
Slide 16: Candelaria
Atacama / Vicuña District (Chile) Candelaria ▪ Acquired in 2014 for $1.8 billion – Increased LOM by 18 years and M&I resources by 175%1 ▪ Water requirements met through desalinated sea water ▪ Mine plan optimization underway for the Candelaria Underground Expansion Project (CUGEP) Overview 2024 Guid
Slide 17: Caserones
Vicuña District / Atacama (Chile) Caserones ▪ 51% interest acquired in 2023 for $950M – Increased ownership to 70% for $350M which would add ~25 kt attributable copper/yr ▪ Large-scale, long-life copper-molybdenum operation ▪ Proximity to Candelaria and Josemaria introduces opportunities to realize
Slide 18: Caserones Near-term Copper Growth Opportunity
Vicuña District / Atacama (Chile) Caserones Near-term Copper Growth Opportunity Announced in Q2 | Closed July 2, 2024 Caserones1 ▪ Early exercise to increase ownership to 70% for $350M Increase in Attributable Total Cu Production completed Copper Production (kt) Attrib. Cu Production 139 ▪ Adds appr
Slide 19: Chapada (Copper/Gold)
Chapada (Copper/Gold) Location Brazil Overview Ownership 100% ▪ Acquired in 2019 for $800M Reserves (P&P) 1,395 kt Cu ▪ Processing capacity of 65,000 tpd or 24 Mtpa Grade 0.23 | 0.12 ▪ Exploration focused on Sauva and high-grade targets (Cu% | Au g/t) near mine Mine Life +25 yrs. Mine Type OP Throug
Slide 20: Zinc Assets
Zinc Assets Neves-Corvo (Portugal) Zinkgruvan (Sweden) ▪ Zinc expansion project completed (ZEP) ▪ Sequential flotation project completed ▪ Increased throughput from 1.5 Mtpa to +2.0 Mpta ▪ Capable to process higher zinc grades that are expected ▪ Record quarterly zinc production in Q4 2023 to drive
Slide 21: Eagle (Nickel)
Eagle (Nickel) Location USA Overview Ownership 100% ▪ Acquired in 2013 for $325M, production commenced in 2014 – highly profitable mine Reserves (P&P) 51 kt Cu ▪ Only primary nickel mine in the U.S. Grade (Ni%) 1.26% ▪ Efficient mine operated by high-performing workforce Mine Life ~5 yrs. ▪ Continue
Slide 22: Asset Optimization
Asset Optimization Full Potential Initiative ▪ Initiated comprehensive value optimization efforts across our Latin American sites ▪ Focus on productivity, process improvements Caserones and efficiencies to drive down costs, undertaking asset improvement studies at Chapada, Candelaria and Caserones C
Slide 23: Filo del Sol & Josemaria Projects
Filo del Sol & Josemaria Projects Vicuña District Data contained in this section was sourced from publicly available information on the Filo Corp. website (www.filocorp.com). and on SEDAR+ at www.sedarplus.com under Filo Corp.’s profile. For further information please also see Filo’s corporate prese
Slide 24: Long History in the Area
Long History in the Area Pipeline Atacama Region & Vicuña District ▪ Two operating mines NGEx ▪ Port and desalination plant in the NGEx Los Helados Lunahuasi region Filo del Sol ▪ Strategic partnership and infrastructure to leverage assets Lundin Mining Corporate Presentation 2024 24
Slide 25: Vicuña District
Vicuña CASERONES District Operating mine Vicuña District A closer look NGEx Los Helados ▪ Cluster of 4 known deposits and 1 recent discovery - Scale, geological structure and grade NGEx JOSEMARIA Lunahuasi Development Project ▪ Caserones – large open pit with conventional crush, grind, flotation cir
Slide 26: Filo del Sol Project
Filo del Sol Project High-sulphidation epithermal copper-gold-silver deposit associated with a large porphyry system Overview ▪ Located in San Juan, Argentina & Chile ▪ Existing resource estimate focusing on oxide mineralization ▪ Geological interpretation changed with drill hole FSDH041 – 858m of 1
Slide 27: Location
Location Approximately 10 km away from the Josemaria project located in San Juan, Argentina S N 10 km Vicuna District Junction Distances and scale approximate for illustrative purposes only. Lundin Mining Corporate Presentation 2024 27
Slide 28: Vicuña District – Size, Scale & Grade
Vicuña District – Size, Scale & Grade Filo del Sol deposit – mineralization over a 5 km strike length 5.0 km Filo del Sol Deposit Lundin Mining Corporate Presentation 2024 See reference point on next slide. 28 Distances and scale approximate for illustrative purposes only.
Slide 29: 5.0 km
5.0 km Lundin Mining Corporate Presentation 2024 29
Slide 30: Filo del Sol Project
Filo del Sol Project Mineralization over a 5 km strike length Drill Highlights FSDH041: FSDH054: Total intercept of Total intercept of 858m @ 1.80% CuEq 1,224m @ 1.26% CuEq FSDH055C: FSDH057: Total intercept of Total intercept of 1,338m @ 1.33% CuEq 11.1m @ 17.6% CuEq FSDH064: FSDH067: Total interce
Slide 31: Josemaria Project
Josemaria Project Advanced stage development asset ~11 km from Filo ▪ Unlocks the Vicuña District on the Argentinian ▪ RIGI passed in July 2024 – Foreign investment side incentive bill, basis for fiscal stability ▪ Feasibility Study completed in 2020, trade off agreements and investment studies unde
Slide 32: Josemaria and Filo del Sol Projects
Josemaria and Filo del Sol Projects District development opportunity ▪ Undertake trade off studies, engineering and permitting ▪ Potential for shared process plant and major infrastructure including TSF, roads, and powerlines ▪ Assess combined land package for ideal placement of major infrastructure
Slide 33: Next Steps
Next Steps Deal expected to close in early 2025 ▪ Targeting the closing of the Filo transaction and Joint Venture early next year ▪ Drilling to continue at Filo ▪ Further updates on work plans to be provided in H1 2025 Josemaria Project Lundin Mining Corporate Presentation 2024 33
Slide 34: Vicuña District
Vicuña District Size, Scale & Grade
Slide 35: Vicuña District – Size, Scale & Grade
Vicuña District – Size, Scale & Grade Giant footprints make for giant mining districts BOLIVIA El Abra Spence Gaby Collahuasi Alteration Mantos Blancos Operating mine footprint of Chuquicamata large mines CHILE Operating mine El Salvador Escondida compared to Inca de Oro Operating mine Vicuña Manto
Slide 36: Vicuña District – Size, Scale & Grade
Vicuña District – Size, Scale & Grade The Vicuña district has the potential to compete with the world’s largest mining complexes 2024E Top Ten Copper Mines By Production (100% basis) 1,200 900 Copper (kt/yr) 600 300 0 Morenci Los Polar Antamina Cerro Verde Buenavista Kamoa Collahuasi Grasberg Escond
Slide 37: Sustainability
Sustainability Focused on the Future
Slide 38: Responsible Mining
Responsible Mining ▪ Ambitious but achievable goal to reduce Scope 1 & 2 GHG absolute emissions by 35% by 20301 Zinkgruvan, Wind Farm, Sweden Scope 2 emissions benefit from Zinkgruvan’s investment in renewable electricity since 2017 Lundin Mining Corporate Presentation 2024 1. Compared to 2019 basel
Slide 39: Responsible Mining
Candelaria, Punta Padrones Port & Desalination Plant, Chile Responsible Mining ▪ Leading ISS Environment & Social Quality Scores ▪ Carbon Disclosure Project (“CDP”) score of ‘B’, above industry and North American averages ▪ Candelaria’s freshwater demands met through sea water desalination facility
Slide 40: Alignment with Best Practices
Alignment with Best Practices ▪ Under the Responsible Mining Framework, we commit to develop and implement management systems and operating practices that take into consideration applicable international guidelines, including: Strong CDP performance, earning a score of ‘B’ • We report annually to th
Slide 41: Financial Performance
Financial Performance Strong financial position to fund growth initiatives Lundin Mining Corporate Presentation 2024
Slide 42: Delivering on Results – 2023 Full Year
Delivering on Results – 2023 Full Year 315ktCu 185ktZn 16ktNi PRODUCTION Record consolidated annual Cu Record Zn production from Above original 2023 guidance2 production in 20231,2 expansion initiatives in 20232 15%Cu 10%Zn $1.0B OUTLOOK Estimated YoY increase in Cu Estimated YoY increase in Zn 2024
Slide 43: 2023 Balance Sheet Summary
2023 Balance Sheet Summary $3.4B $1.4B $345M Revenue (2023) Adjusted EBITDA1 (2023) FCF from Operations1 (2023) $946M 0.7X Net debt1,2 Net Debt/Adjusted EBITDA1,2 (LTM) $1.5B Existing liquidity1 (including undrawn credit facility) 1. For the year ended December 31, 2023. Adjusted EBITDA, FCF from op
Slide 44: Q2 2024 Highlights
Q2 2024 Highlights 80ktCu Quarterly Cu production in 20241 47ktZn Quarterly Zn production in 20241 32kozAu Quarterly Au production in 20241 $461M $338M FCF from Operations in Q2 20242 $894M Net debt2,3 Adjusted EBITDA in Q2 20242 0.5X Net Debt/Adjusted EBITDA2,3 (LTM) 1. Q2 2024 consolidated copper
Slide 45: Q2/24 Production Results
Q2/24 Production Results Copper Q2 production of 80 kt Annual Q1 Q2 Guidance Range 103 90 88 80 88 kt 80 kt 366 kt 400 kt 168 kt YTD Q3/23 Q4/23 Q1/24 Q2/24 Gold Q2 production of 32 koz Annual 44 Q1 Q2 Guidance Range 35 33 32 33 koz 32 koz 155 koz 170 koz 65 koz YTD Copper Cathode Q3/23 Q4/23 Q1/24
Slide 46: Q2/24 Production Results
Q2/24 Production Results Zinc Q2 production of 47 kt Annual Q1 Q2 Guidance Range 51 50 46 47 46 kt 47 kt 195 kt 215 kt 22 93 kt YTD 26 Zinkgruvan Neves-Corvo Q3/23 Q4/23 Q1/24 Q2/24 Nickel Q2 production of 1.7 kt Previous Q1 Q2 Guidance Range 4.3 3.7 3.3 3.3 kt 1.7 kt 10 kt 13 kt 1.7 5.0 kt YTD 7 kt
Slide 47: Q2/24 Production Costs
Q2/24 Production Costs ▪ Production costs inline with last quarter, cash costs impacted by lower production volumes ▪ Costs tracking to full year guidance at all sites with the exception of Eagle Consolidated Costs Asset Costs Exc. Caserones ($M or Cu $/lb net credits)1 $648M $615M $606M $567M Cande
Slide 48: Production & Cost Guidance
Production & Cost Guidance 15% year over year growth in copper guidance vs. 2023 production1 1. Based on 2023A copper production vs. 2024 copper production guidance mid-point, see press release dated January 14, 2024, entitled “Lundin Mining Provides 2024 Guidance & Announces 2023 Production Results
Slide 49: 2024 Production & Cash Cost Guidance
2024 Production & Cash Cost Guidance1 Production Cash Cost1,2,3 Production Cash Cost1,2,3 (contained metal in conc.) (contained metal in conc.) Cu Candelaria (100%) 160,000 - 170,000 $1.60 - $1.80 Zn Neves-Corvo 120,000 - 130,000 Zinc Zinkgruvan 75,000 - 85,000 $0.45 - $0.50 Copper Caserones (100%)
Slide 50: 3-year Production Guidance
3-year Production Guidance Outlook Copper Gold kt koz 366 - 400 155 - 170 358 - 392 356 - 390 145 - 160 140 - 155 2024 2025 2026 2024 2025 2026 Zinc Nickel kt kt 220 - 240 7-9 220 - 240 5-8 4-7 195 - 215 2024 2025 2026 2024 2025 2026 Lundin Mining Corporate Presentation 2024 50
Slide 51: 2024 Capital Expenditure Guidance Summary
2024 Capital Expenditure Guidance Summary ▪ Capital expenditures are inline with last year Capital Expenditures1,2 ($M) 2024 ▪ The majority of sustaining capital Candelaria (100%) $300 expenditures for 2024 include: Caserones (100%) $175 ▪ Open pit waste stripping Chapada $110 ▪ Underground mine dev
Slide 52: Exploration
Exploration Track record of exploration success
Slide 53: Proven Exploration Success
Proven Exploration Success Candelaria case study Since Lundin Mining’s Mine life Nearly Over Over 2014 acquisition of Candelaria: Extended 160% and production profile improved1 in forecast copper production 256% 320% in M&I Mineral Resource1,2 increase in M&I Mineral Resource over the life-of-mine (
Slide 54: Mineral Reserves & Mineral Resources
Mineral Reserves & Mineral Resources
Slide 55: Mineral Reserves
Mineral Reserves Grade Contained Metal Grade Contained Metal Interest Interest 000's Cu Zn Pb Au Ag Ni Mo Cu Zn Pb Au Ag Ni Mo Site Category 000's Cu Zn Pb Au Ag Ni Mo Cu Zn Pb Au Ag Ni Mo Site Category % % Tonnes % % % g/t g/t % % kt kt kt Koz Koz kt kt Tonnes % % % g/t g/t % % kt kt kt Koz Koz kt
Slide 56: Mineral Resources
Mineral Resources Grade Contained Metal Grade Contained Metal 000's Cu Zn Pb Au Ag Ni Mo Cu Zn Pb Au Ag Ni Mo Interest 000's Cu Zn Pb Au Ag Ni Mo Cu Zn Pb Au Ag Ni Mo Interest Site Category Site Category Tonnes % % % g/t g/t % % kt kt kt Koz Koz kt kt % Tonnes % % % g/t g/t % % kt kt kt Koz Koz kt k
Slide 57: NI 43-101
NI 43-101 Unless otherwise indicated, Lundin Mining Corporation (the “Company”) has prepared the technical information in www.sedarplus.ca. this presentation including Mineral Reserve and Mineral Resource estimates (“Technical Information”) based on • Caserones: Technical Report entitled NI 43-101 T
Slide 58: Disciplined Copper Growth at Scale
Disciplined Copper Growth at Scale We have the team We have multiple We are well-positioned and conviction to opportunities to create to achieve our vision of deliver. meaningful growth in becoming a top-tier both near and long- copper producer of term horizons. global scale.
Lundin Mining — Investor Presentation (September 2024) on 6ix