Slide 1: Corporate Presentation August 2013
TSX: LUN OMX: LUMI Corporate Presentation August 2013
Slide 2: Cautionary Statements
Cautionary Statements Caution Regarding Forward Looking Statements This presentation contains forward forward‐looking looking statements. statements These forward forward‐looking looking statements are not based on historical facts, but rather on current expectations and projections about future eve
Slide 3: Key Asset Overview
Key Asset Overview • European Operations • Tenke Fungurume • Growth Projects • Neves‐Corvo, Neves Corvo Portugal • Tier 1 Cu/Co asset • Eagle Mine (Cu/Zn) • 24% interest • Lombador Phase I • Zinkgruvan, Sweden • Freeport‐McMoRan • Tenke Expansions (Zn/Pb/Cu) operator t • Aguablanca, Spain • Phase II
Slide 4: Lundin Highlights
Lundin Highlights Significant copper producer – majority of revenues from copper Leverage to zinc, lead, nickel and cobalt Wholly‐owned Wh ll d hi high h quality li assets – portfolio f li off llong lif life, relatively l i l low cost mines in stable jurisdictions Stake in Tenke – a world‐cl
Slide 5: Operations and Outlook
Operations and Outlook 5
Slide 6: Production and Cost Guidance - 2013
Production and Cost Guidance ‐ 2013 2013 Guidance Tonnes C1 Cost a Copper Neves‐Corvo 50,000 – 55,000 $1.80 Zinkgruvan 2,500 – 3,500 Aguablanca 5,000 – 5,500 Wholly‐owned 57,500 – 64,000 Tenke (@ 24%)b 49,000 $1.24 Total 106,500 – 113,000 Zinc inc Neves‐Corvo Neves Corvo 45,000 – 50,000 Zinkgruvan 7
Slide 7: Cost Restraint Initiatives
Cost Restraint Initiatives • Capital expenditures for 2013*, have been reduced by $55 million to $230 million • The $55 million reduction is comprised as follows: • $40 $ 0 million illi Tenke k • $10 million new investment • $5 million in sustaining capex • Exploration expenditures have also been re
Slide 8: Neves-Corvo
Neves‐Corvo 8
Slide 9: Neves-Corvo – Snapshot
Neves‐Corvo – Snapshot • Underground copper and zinc mine located in Portugal • Active A ti mining i i in i fi five major j ore b bodies di underground d d • Potential for future growth from Lombador zinc/copper deposit and d the h Semblana S bl copper deposit d i • Zinc production achieved a new qu
Slide 10: Neves-Corvo – Outlook
Neves‐Corvo – Outlook • Stope blasting in Lombador zinc ore commenced in June 2013. Zinc ggrades increasingg in the second half of 2013 • Favourable preliminary results on expanding shaft hoist capacity could enable p production increases with relativelyy low capex p • Reviewing shaft feed infrastru
Slide 11: Neves-Corvo Production Outlook
Neves‐Corvo Production Outlook Midpoint of guidance range assumed for 2013 ‐ 2015 11
Slide 12: Zinkgruvan
2 zi eee nkgruvan a Pape en be~ J 12
Slide 13: Zinkgruvan – Snapshot
Zinkgruvan – Snapshot • Underground zinc/lead/copper mine located 200km southwest of Stockholm • High quality zinc concentrate sought after by European smelters • Lowest quartile cost producer due to high zinc grades and strong by‐product credits • Lead production achieved record levels in Q2 Locati
Slide 14: Zinkgruvan – Outlook
Zinkgruvan – Outlook • Interim measures to improve plant availability and reduce dust and noise emissions have accomplished measurable improvements • Plant modernization contemplated but deferred pending zinc market improvement 14
Slide 15: Zinkgruvan Production Profile
Zinkgruvan Production Profile Midpoint of guidance range assumed for 2013 ‐ 2015 15
Slide 16: Aguablanca
Aguablanca 16
Slide 17: Aguablanca – Snapshot
Aguablanca – Snapshot • Open‐pit nickel/copper mine located 100km north of Seville, Spain • Operations going very well, annual production guidance increased in Q2 • Pit life extended until Q1/2015. Further pushbacks to the south wall in progress Location • Spain Ownership • 100% 2013 Production • 6,
Slide 18: Tenke Fungurume
Tenke Fungurume 18
Slide 19: Tenke – Snapshot
Tenke – Snapshot • One of the world’s largest known copper‐cobalt resources located in Katanga Province, DRC • Operated by Freeport‐McMoRan – Lundin 24% equity interest • Ph Phase 2 Expansion E i completed, l d increasing i i capacity i to at least l 195,000 tpa of copper cathode and 15,000 tpa of c
Slide 20: Tenke Outlook
Tenke Outlook Significant Cash returns Expected to Continue in 2013/2014 • Capital reduction initiatives are expected to result in capex being reduced in 2013 & 2014 • Further expansion investment timing under review by operator Freeport • LUN expects significant cash flows from Tenke to continue, a
Slide 21: Eagle Mine
Eagle Mine 21
Slide 22: Eagle Mine - Acquisition Summary
Eagle Mine ‐ Acquisition Summary • Acquired the high grade Eagle nickel/copper mine from Rio Tinto for approximately $315 million • Advanced stage of construction (over 50% completed), scheduled for startup in Q4/2014 • Acquisition to be funded from cash on hand & credit facilities • Transaction clo
Slide 23: Eagle – Construction Progress
Eagle – Construction Progress Mill site facilities Underground mine ramp Mine site facilities 23
Slide 24: Exploration Upside – Eagle East and Deep Targets
Exploration Upside – Eagle East and Deep Targets • Eagle East: 900 m deep. Initial drilling indicates lower grade, sizeable deposit • Eagle Deep: Target located 400 m beneath the lowest mine development p level. Target g is high‐ g grade massive Ni‐Cu mineralization concentrated within Eagle root fe
Slide 25: Eagle Property Exploration Targets
Eagle Property Exploration Targets Mag 1‐20 E l West Eagle W t Eagle Eagle East Eagle Cody Melt Deep 1 km Magnetics Analytic Signal High priority drill targets Generative targets
Slide 26: Eagle – Low-Cost Nickel Project
Eagle – Low‐Cost Nickel Project • We estimate Eagle LOM C1 cash cost at $2.55/lb, which is in the lowest o est cost quartile qua t e Eagle (est.) 26
Slide 27: Lundin Mining - Low-Cost Operations Cu & Zn
Lundin Mining ‐ Low‐Cost Operations Cu & Zn 2013 C1 Copper Cost Curve, Grouped by Mine ($/lb) $3 00 $3.00 $2.50 Neves‐Corvo $2.00 Weighted Average Tenke Fungurume $1.50 As Tenke $1.00 production increases, Lundin $0.50 will move down the cost curve $0.00 ‐‐ 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% C
Slide 28: Lundin Mining - Summary
Lundin Mining ‐ Summary Portfolio of high quality, long‐life mines that are performing well Optimization opportunities and exploration potential at all existing assets No high risk major capital projects Proven disciplined growth approach Geographic and base metal diversification Neves‐Corvo Zinkgru
Slide 29: TSX: LUN OMX: LUMI
TSX: LUN OMX: LUMI