Lundin Mining Corporation · TSX:LUN
Lundin Mining — Merger or Acquisition (April 2019)
20 slides from Lundin Mining's merger presentation, Apr 15, 2019
Slide 1: Chapada Mine Acquisition
TSX: LUN Nasdaq Stockholm: LUMI Chapada Mine Acquisition April 15, 2019 Chapada Mine, Goiás, Brazil
Slide 2: Cautionary Statements
Cautionary Statements Caution Regarding Forward-Looking Information and Non-GAAP Performance Measures Certain of the statements made and information contained herein, other than statements of historical fact and historical information, is “forward-looking information” within the meaning of applicabl
Slide 3: Participants
Participants Marie Inkster President & CEO Peter Richardson SVP & COO Jinhee Magie SVP & CFO Steve Gatley VP, Technical Services 3 Chapada Processing Plant
Slide 4: Lundin Mining – copper dominant – competitive cost position
Lundin Mining Our Strategy Our Operations Freeport Cobalt1 Operate, upgrade and grow a Cobalt Refinery (Finland) base metal portfolio that provides leading returns for our Eagle Zinkgruvan shareholders throughout the cycle Nickel-Copper-PGMs (USA) Zinc-Lead-Copper (Sweden) – copper dominant Neves-Co
Slide 5: Acquisition Highlights
Acquisition Highlights Furthers Strategic Goals ─ high-quality, long-life, expandable ─ complements existing assets Immediately Accretive ─ on key financial and operating metrics ─ financial strength utilized while maintaining low leverage and flexibility Increased Copper & Gold Cash Flows Significa
Slide 6: Enhances Quality Copper Exposure
Enhances Quality Copper Exposure Increase in Mineral Reserve3 Increase in Copper Production (kt) Copper Contained Copper Metal (kt) 302 298 5,353 +25% +46% 263 +26% 3,672 242 237 +26% 209 209 1,681 200 1 2 2 2018A 2019E 2019E 2020E 2021E Chapada Lundin Pro Forma Guidance Pro Forma Pro Forma Pro Form
Slide 7: Diversified in Established Jurisdictions
Diversified in Established Jurisdictions 2019E Copper Equivalent Production by Country 1, 2 Current Pro Forma Sweden Sweden 9% 11% USA USA 12% 14% Chile Chile 40% 51% Portugal Portugal 19% 24% Brazil 20% Notes: (1) Based on midpoint of 2019E production guidance provided by Lundin Mining and 2019E Ch
Slide 8: Transaction Summary
Transaction Summary Transaction Lundin Mining to acquire 100% interest in Chapada copper-gold mine US$800M in cash at closing, subject to customary adjustments Contingent gold price payments – annual payment if the gold price averages at least the threshold in any sequential annual period over the f
Slide 9: Chapada Overview
Chapada Overview Potential to sustain production in the range of 68.0 to 72.5 ktpa High-Quality Producer in copper and 100 to 110 koz gold under expansion scenario Excellent Jurisdiction through at least 2034 Competitive cash cost profile over life of mine Established Mine Current copper Mineral Res
Slide 10: Long-Life, Expandable Operation
Long-Life, Expandable Operation Copper Production (kt) & Co-Product Cash Cost ($/lb) 68 - 72.5 Attractive co-product cash costs. 62 Guided to $1.60-$1.80/lb copper 58 59 60 and $430/oz gold equivalent in 54 52 2019E $1.74 $1.60 - $1.80 $1.58 $1.54 28 year life on copper Mineral Reserves at current t
Slide 11: Mine Overview
Mine Overview Tailings Plant North Facility Pit Central Pit South Pit Large copper-gold mineralized system Conventional drill and blast, load and haul open pits Owner-operated and contractor mining Chapada open pits: LOM strip ratio 1.3:1 Avg. remaining LOM copper grade 0.25% 11 Avg. remaining LOM g
Slide 12: Processing Facilities
Processing Facilities Processing Plant Plant Facilities Mine ROM Ore Facilities Stockpile Power Substation 230/13.8kV Crushed Ore Stockpile MMD Crusher In Pit Crusher Conveyor 12 Jaw Crusher
Slide 13: Processing Facilities
Processing Facilities Conventional Crush, Grind, Float Throughput 65 ktpd or 23.4 Mtpa Copper recovery 82% in 2018 Gold recovery 63% in 2018 Copper concentrate ~25% copper Gold in concentrate ~10-15 g/t Grid Power Connected to national grid via 84 km In Pit Crusher Crushed Stockpile SAG Mill – 34 ft
Slide 14: Current Mineral Reserves Support Long Life
Current Mineral Reserves Support Long Life (1)(2)(3) Over 1.68 Mt of contained copper Mineral Reserve Statement, effective December 31, 2018 (4) Contained Metal and 4.5 Moz of contained gold in 000's Cu Au Cu Au Mineral Reserves Category Tonnes % g/t kt koz Copper Chapada Zone Mineral Reserves estim
Slide 15: Mineral Resources Offer Upside Potential
Mineral Resources Offer Upside Potential (1)(2)(3) Approximately 920 kt of Mineral Resource Statement, effective December 31, 2018 (4) Contained Metal contained copper and 1.9 Moz of 000's Cu Au Cu Au contained gold estimated in Category Tonnes % g/t kt koz copper M&I Mineral Resources in Copper Cha
Slide 16: Tailings Storage Facility
Tailings Storage Facility 16
Slide 17: Tailings Storage Facility
Tailings Storage Facility Tailings storage facility (TSF) is located northwest of Chapada open pit Main Dam All dams raised by centerline methods Main Dam and Dyke III comprise compacted earth fill starter dams raised with cyclone tailings Dyke II is a compacted earth fill dam for water retention Sp
Slide 18: Lundin Mining
Lundin Mining High Quality Meaningful Scale Financial Strength Competitive Mines Growth Oriented – strong margins at all – exploration upside and – proven track record for operations high value expansion rigorous investment projects underway approach, focused on – demonstrated operational value crea
Slide 19: NI 43-101 Compliance
NI 43-101 Compliance Unless otherwise indicated, Lundin Mining Corporation (the “Company”) has prepared the technical information in this presentation including Mineral Reserve and Mineral Resource estimates (“Technical Information”) based on information contained in the technical reports and news r
Slide 20: TSX: LUN Nasdaq Stockholm: LUMI
TSX: LUN Nasdaq Stockholm: LUMI