Slide 1: Second Quarter 2021 Results
Second Quarter 2021 Results July 29, 2021 TSX: LUN Nasdaq Stockholm: LUMI Candelaria, Atacama Region, Chile
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 is “forward-looking information” within the meaning of applicable Canadian securities laws. All statements other than statements of hi
Slide 3: Participants
Participants Marie Inkster President & CEO Jinhee Magie SVP & CFO Peter Richardson SVP & COO Eagle Mine Planning Engineer inspecting high grade face underground at Eagle East 3
Slide 4: Responsible Mining
Responsible Mining 2020 Sustainability Report • have been reporting our sustainability performance in a comprehensive, standalone document since 2010 • prepared in accordance with the Global Reporting Initiative (GRI) Standards and broadly mapped against the Sustainability Accounting Standards Board
Slide 5: Q2/21 Summary Results
Q2/21 Summary Results Production Payable Sales 63,457 t of copper 64,281 t of copper 34,833 t of zinc 28,748 t of zinc 41,000 oz of gold 39,000 oz of gold 4,774 t of nickel 4,258 t of nickel 6,438 t of lead 5,982 t of lead $872M in Sales Other Sweden 4% 7% Gold 7% Zinc Portugal 8% 15% Nickel Chile 9
Slide 6: Financial Highlights
Financial Highlights Realized Metal Prices1 Q2/21 Q2/20 Δ Copper $4.58/lb $2.85/lb 61% Gold $1,833/oz $1,865/oz (2%) Nickel $8.04/lb $5.58/lb 44% Zinc $1.38/lb $0.91/lb 52% Summary Financial Results2 Q2/21 Q2/20 Δ Revenue $872M $533M 64% Gross Profit $380M $142M 168% $243M $39M 523% Attributable Net
Slide 7: Dividend Framework
Dividend Framework1 Peer-Leading Regular Dividend Dividend Payout (C$/share) • regular dividend increased 50% to C$0.09/share per quarter or C$0.36/share annualized Base Dividend Performance Dividend • 125% increase over the December 2020 dividend payment • sustainable throughout the cycle; declared
Slide 8: Candelaria
Candelaria Q2/21 Operational Performance on Plan • production of 36,014 t of copper and 24,000 oz of gold at a cash cost of $1.52/lb copper Copper, Gold Production & Cash Cost1 Outlook (100% basis; kt Cu, koz Au & $/lb Cu, net of by-product credits) • tonnes milled, ore grades and recovery rates in
Slide 9: Current Mining in Phase 10N
Current Mining in Phase 10N Actions Taken in Phase 10N • new blasting procedure, including smaller blasts TDR Cables • design changes to increase step outs (bench widths) • pinned two step outs (224 & 192 benches) Pinning • increased equipment in area to improve productivity • further enhancement of
Slide 10: 2022 & 2023 Candelaria Production Outlook
2022 & 2023 Candelaria Production Outlook • currently preparing and optimizing life-of-mine as part of the annual planning process • preliminary plans for Candelaria consider: • forecast annual processing of approximately 28 Mtpa for the complex (Candelaria & PAC plants) utilizing existing infrastru
Slide 11: Chapada
Chapada Strong Mine & Mill Q2/21 Performance • production of 11,258 t of copper and 17,000 oz of gold at a cash cost of $1.32/lb of copper Copper, Gold Production & Cash Cost1 Outlook (100% basis; kt Cu, koz Au & $/lb Cu, net of by-product credits) • monthly mill throughput record of 2.2 Mt set in M
Slide 12: Chapada Exploration Drilling
Chapada Exploration Drilling Formiga 15 km north of Chapada plant 6 km NM_438: 22.7 m @ 0.89% Cu; 0.24 g/t Au (75 m) Including: 6.9 m @ 1.35% Cu; 0.27 g/t Au (79 m) Suruca 3 km Baru NE NM_427: 97.4 m @ 0.41% Cu; 0.32 g/t Au (287 m) Including 7.6 m @ 0.64% Cu; 0.50 g/t Au (314 m) Including 25.5 m @ 0
Slide 13: Neves-Corvo
Neves-Corvo Improved Q2/21 Copper Mine & Mill Performance • production of 10,317 t of copper, 16,662 t of zinc and 1,343 t of lead at a cash cost of $1.65/lb of copper Copper, Zinc Production & Cash Cost Outlook1 (kt & $/lb Cu, net of by-product credits) • copper production increased nearly 40% QoQ,
Slide 14: Neves-Corvo – ZEP
Neves-Corvo – ZEP Underground Construction Progress Upcoming Works • commenced construction of reticulation system • commence service water piping installation • shaft upgrade shutdown defined with pre-fabrication, pre-assembly, • handover electrical rooms to commissioning team structural and electr
Slide 15: Neves-Corvo – ZEP
Neves-Corvo – ZEP Surface Construction Progress Upcoming Works • paste fill expansion construction underway • complete ventilation and electrical works of main substation • initiated construction of remaining cyclone work • finish commissioning of 3rd tailings paste thickener • all remaining flotati
Slide 16: Zinkgruvan
Zinkgruvan Strong Q2/21 Mine and Mill Performance • production of 18,171 t of zinc, 641 t of copper and 5,095 t of lead at a cash cost of $0.42/lb of zinc Zinc Production & Cash Cost Outlook1 (kt & $/lb Zn, net of by-product credits) • mine and mill continue to perform well; zinc feed grades above p
Slide 17: Eagle
Eagle Impressive Cash Cost & Cash Generation Continues • production of 4,774 t of nickel and 5,227 t of copper at a first-quartile cash cost of Nickel, Copper Production & Cash Cost Outlook2 negative $2.01/lb nickel in Q2/21 (kt & $/lb Ni, net of by-product credits) • generated nearly $95M of operat
Slide 18: 2021 Guidance Summary
2021 Guidance Summary1 Production C1 Cash (contained metal in conc.) Cost2 Capital Expenditures ($M) Copper (t) Candelaria (100%) 150,000 - 155,000 $1.553 Sustaining Chapada 48,000 - 50,000 $1.103 Candelaria (100% basis) 345 Eagle 18,000 - 20,000 Chapada 65 Neves-Corvo 36,000 - 38,000 $2.103 Eagle 2
Slide 19: Our Strategy
Lundin Mining Our Strategy Operate, upgrade and grow a base metals portfolio that provides leading returns for our shareholders throughout the cycle • copper dominant • competitive cost position Eagle Zinkgruvan • low-risk mining jurisdictions Nickel-Copper-PGMs in U.S.A. Zinc-Lead-Copper in Sweden
Slide 20: www.lundinmining.com
www.lundinmining.com | TSX: LUN | Nasdaq Stockholm: LUMI
Slide 21: 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