Lundin Mining Corporation · TSX:LUN
Lundin Mining — Q1 2020 Earnings Presentation
17 slides from Lundin Mining's earnings presentation, Apr 30, 2020
Slide 1: First Quarter 2020 Results
First Quarter 2020 Results April 30, 2020 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 This document contains “forward-looking information” within the meaning of Canadian securities laws. All statements other than statements of historical facts constitute forward-looking information,
Slide 3: Participants
Participants Marie Inkster President & CEO Jinhee Magie SVP & CFO Peter Richardson SVP & COO Across Lundin Mining we continue to identify and implement measures to protect and ensure the needs of our workforce and communities are being addressed. 3
Slide 4: Q1/20 Summary Results
Q1/20 Summary Results Production Payable Sales 62,167 t of copper 61,923 t of copper 36,947 t of zinc 29,348 t of zinc 38,000 oz of gold 39,000 oz of gold 3,575 t of nickel 2,809 t of nickel 9,481 t of lead 7,322 t of lead $378M in Sales by Metal Lead Other 4% Nickel 3% 6% Zinc 8% Copper Gold 64% 15
Slide 5: Financial Highlights
Financial Highlights Realized Metal Prices1 Q1/20 Q1/19 Δ Copper $1.95/lb $3.11/lb (37%) Gold $1,644/oz $1,133/oz 45% Nickel $3.83/lb $8.37/lb (54%) Zinc $0.78/lb $1.38/lb (43%) Summary Financial Results2 Q1/20 Q1/19 Δ Revenue $378M $416M (9%) Gross (Loss) Profit ($23M) $141M (116%) ($112M) $52M (31
Slide 6: Candelaria
Candelaria Increasing Production Profile • Q1/20 production of 36,297 t of copper and approximately 21,000 oz of gold Copper, Gold Production & Cash Cost1 Outlook • production impacted by ore hardness and available operational hours of SAG mills (100% basis; kt Cu, koz Au & $/lb Cu, net of by-produc
Slide 7: Chapada
Chapada Robust Mine and Mill Performance • Q1/20 production of 11,881 t of copper and approximately 18,000 oz of gold Copper, Gold Production & Cash Cost1 Outlook (100% basis; kt Cu, koz Au & $/lb Cu, net of by-product credits) • above plan mill throughput offset modestly below plan copper grade and
Slide 8: Neves-Corvo
Neves-Corvo Focused on Current Operations • Q1/20 production of 9,075 t of copper, 17,948 t of zinc and 1,468 t of lead • copper production impacted primarily by headgrade; zinc production in-line with plan Copper, Zinc Production & Cash Cost Outlook (kt & $/lb Cu, net of by-product credits) • opera
Slide 9: Neves-Corvo – ZEP
Neves-Corvo – ZEP Underground & Surface Construction • excellent progress prior to temporary suspension; Surface construction recorded highest monthly progress rates • underground 88% progress with civil and mechanical works largely complete. Development of lower stopes advancing as planned with fir
Slide 10: Eagle
Eagle Consistent Mine & Mill Operating Performance • Q1/20 production of 3,575 t of nickel and 4,378 t of copper • nickel headgrade impacted by mine resequencing in Eagle East ; copper production Nickel, Copper Production & Cash Cost Outlook above plan (kt & $/lb Ni, net of by-product credits) • nic
Slide 11: Zinkgruvan
Zinkgruvan Strong Mine and Mill Throughput Performance • Q1/20 production of 18,999 t of zinc, 8,013 t of lead and 536 t of copper at cash cost of $0.51/lb of zinc Zinc Production & Cash Cost Outlook (kt & $/lb Zn, net of by-product credits) • excellent mine and mill throughput performance continued
Slide 12: Production and Cash Cost Guidance
Production and Cash Cost Guidance1 Production C1 Cash (contained metal in concentrate) Cost2 Copper (t) Candelaria (100%) 160,000 - 175,000 $1.353 • Candelaria copper production guidance range widened and cash cost guidance improved Chapada 51,000 - 56,000 $0.854 Eagle 15,000 - 18,000 • Chapada cash
Slide 13: Capital & Exploration Expenditure
Capital & Exploration Expenditure 30% Reduction in Capital Expenditure Guidance 36% Reduction in Exploration Expenditure Guidance • 2020 guidance lowered by $180M from $620M to $440M • 2020 exploration guidance lowered by $20M from $55M to $35M • ZEP 2020 capital expenditure guidance reduced by $100
Slide 14: Increasing Production Profile
Increasing Production Profile1 (kt) Copper Gold Nickel 294 - 318 175 - 190 180 - 190 264 - 293 15 - 18 15 - 18 +30% 13 235 142 2019A 2020 2021 2019A 2020 2021 2019A 2020 2021 1. Production profile based on certain estimates and assumptions, including but not limited to; Mineral Resource and Mineral
Slide 15: 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 16: www.lundinmining.com
www.lundinmining.com | TSX: LUN | Nasdaq Stockholm: LUMI
Slide 17: 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