Slide 1: First Quarter Results 2011
1 May 11, 2011 TSX: LUN OMX: LUMI First Quarter Results 2011
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: Presenter and Questions
3 Presenter PHIL WRIGHT PRESIDENT & CEO Questions JOAO CARRELO EXEC. VP & COO MARIE INKSTER CFO Corporate Operations Projects Exploration Growth
Slide 4: Q1 Highlights
4 Q1 Highlights Net Income $71.2 million ($0.12 p/share), ahead of last year’s $51.9 million ($0.09 per share). Average copper price 33% higher than last year, lead up 17% and zinc up 5%. Euro similar levels, SEK 10% stronger (quarter averages) against US$. Sales tonnes less than production, consequ
Slide 5: Normalized Earnings
5 Normalized Earnings $ Millions Q1 '11 Q1 '10 Reported Net Income 71.2 51.9 Exchange loss/(gain) 16.1 (8.6) Corporate development 4.8 - Mark to market on securities (2.2) (15.7) Loss on deriviative contracts - 0.5 Tax (on above items) (5.7) 4.6 Adjusted Net Income 84.2 32.7 Earnings per share $ 0.1
Slide 6: Financial Position
6 Financial Position Net cash at March 31, 2011 of $262 million, an increase of $100 million for the quarter and $250 million from the same quarter last year. The change in net cash during the quarter takes into account: $18.6 million cash outflow at Aguablanca for the quarter $40.5 million of capit
Slide 7: Change in Production: Q1 '11 and Q1 '10
7 Change in Production: Q1 ‘11 and Q1 ‘10 Tonnes 25,000 1,030 43 1,633 19,139 6,941 20,000 Copper 12,844 15,000 Excluding Tenke 7,508t 10,000 attributable share 5,000 Q1'10 Throughput Grade Recovery Aguablanca Q1'11 Tonnes Tonnes 11,413 8,800 259 480 28,197 107 3 30,000 12,000 3,066 25,000 19,618 10
Slide 8: Cash Costs: Q1 2011 and Q1 2010
8 Cash Costs: Q1 2011 and Q1 2010 Cash cost per lb of primary metal (US dollars) (local currency) Q1 '11 Q1 '10 Q1 '11 Q1 '10 Neves-Corvo Gross cost 1.62 1.87 1.18 1.36 (Local in €) By-product* (0.07) (0.09) (0.05) (0.07) Copper Net cost 1.55 1.78 1.13 1.29 Zinkgruvan Gross cost 0.86 0.88 5.57 6.26
Slide 9: Change in Prices: Q1 '11 & Q1 '10
9 Change in Prices: Q1 ‘11 & Q1 ‘10 Qtr ended Mar 31 Average LME 2011 2010 Copper $/lb 4.38 3.29 33% Zinc $/lb 1.09 1.04 5% Lead $/lb 1.18 1.01 17% Nickel $/lb 12.20 9.11 34% EUR/USD (Avg) 1.37 1.38 -1% SEK/USD . (Avg) 0.15 0.14 11% Corporate Operations Projects Exploration Growth
Slide 10: Financial Results
10 Financial Results Selected Financial Information: $ Millions Q1 '11 Q1 '10 Sales 212 142 49% Operating costs (88) (71) 24% G&A and stock-based compensation (10) (5) 100% Operating Earnings 114 66 73% Add (deduct): Depreciation, amortization (35) (35) Selected items only Exploration/project invest
Slide 11: Change in Operating Earnings: Q1 '11 & Q1 '10
11 Change in Operating Earnings: Q1 ‘11 & Q1 ‘10 54.4 7.2 7.9 32.4 2.2 145.0 125.0 113.6 105.0 27.3 $millions 85.0 65.8 65.0 45.0 25.0 Q1 2010 Volume Price & Adj. Cost FX Closures Aguablanca Q1 2011 Corporate Operations Projects Exploration Growth
Slide 12: Tenke Production
12 Tenke Production Lundin attributable 24.75% Q1 '11 Q1 '10 Copper cathode (tonnes) Production 7,508 7,120 Sales 6,674 7,369 Average realized price/lb $ 4.19 $ 3.26 Cobalt (contained tonnes) Production 691 552 Sales 654 365 Average realized price/lb $ 10.99 $ 10.94 Net cash costs/lb of copper: Gros
Slide 13: Tenke Investment
13 Tenke Investment $ Millions Q1 '11 Q1 '10 Income from investment 24.9 14.5 Excess Overrun Facility Change (37.8) (11.4) Closing balance 70.6 215.7 Attributable Cash Flow Cash advances to Tenke (5.4) (7.6) Repayment on EOC 37.8 11.4 Cash flow net of EOC 32.4 3.8 Production consistently above desig
Slide 14: Outlook
14 Outlook Production targets remain unchanged: 79,400t copper, 120,000t zinc and 44,000t lead. Plus Tenke attributable: 31,200 tonnes of copper Cost guidance maintained except Neves-Corvo increases from $1.30/lb to $1.40/lb of copper Aguablanca restart likely: investment of €40 million (€25 million
Slide 15: Questions
15 Questions PHIL WRIGHT PRESIDENT & CEO JOAO CARRELO EXEC. VP & COO MARIE INKSTER CFO Corporate Operations Projects Exploration Growth