Slide 1: Third Quarter 2018 Results
TSX: LUN Nasdaq Stockholm: LUMI Third Quarter 2018 Results October 25, 2018 1 Candelaria, Atacama Region, Chile
Slide 2: Cautionary Statements
Cautionary Statements Caution Regarding Forward-Looking Information and Non-GAAP Performance Measures All statements, other than statements of historical fact, made and information contained or incorporated by reference in or made in giving this presentation and responses to questions is "forward-lo
Slide 3: Participants
Participants President & Marie Inkster Chief Executive Officer Senior Vice President & Jinhee Magie Chief Financial Officer Senior Vice President & Peter Richardson Chief Operating Officer 3
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: Q3 2018 Summary Results
Q3 2018 Summary Results Production – 52,770 t of copper – 36,062 t of zinc – 4,697 t of nickel – 7,039 t of lead Sales (payable) – 51,530 t of copper – 28,722 t of zinc – 3,400 t of nickel – 6,964 t of lead $380M in Sales – 70% copper – 15% zinc – 8% nickel – 3% lead 5 Candelaria Open Pit – Phase 10
Slide 6: Financial Highlights
Financial Highlights Realized Metal Prices 1 Q3 2018 Q3 2017 Δ Copper $2.57/lb $3.08/lb -17% Nickel $5.26/lb $5.06/lb 4% Zinc $1.06/lb $1.43/lb -26% Summarized Financial Results 2 Q3 2018 Q3 2017 Δ Revenue $380M $602M -37% Gross Profit $60M $261M -77% Attributable Net Earnings from Continuing Operat
Slide 7: Financial Strength
Financial Strength Liquidity Position (September 30, 2018) Capital Allocation Priorities 19% – invest in low-risk, high-return brownfield Cash and Equivalents expansion projects and exploration Undrawn Credit Facility $1.8B – maintain regular dividend 81% – prudent and accretive management of debt a
Slide 8: Candelaria
Candelaria 8 Candelaria Mill – Copper / Gold / Silver – Atacama Region, Chile
Slide 9: Candelaria
Candelaria On Track to Achieve Full-Year Guidance – mill throughput and copper head grade modestly exceeded plan for the quarter Copper Production & Cash Cost Outlook – open pit waste mining rates have increased with delivery of new (100% basis; kt & $/lb Cu, net of by-product credits) equipment and
Slide 10: Candelaria Mineral Reserves Growth
Candelaria Mineral Reserves Growth1 (contained copper 000 tonnes) Candelaria UG, Open Pit & La Española Growth Open Pit, Candelaria Candelaria UG UG & Alcaparrosa Growth Open Pit Growth Growth At Purchase > 60% Growth >100% Growth Including Mine Depletion 1. For more information please refer to the
Slide 11: Neves-Corvo
Neves-Corvo 11 Copper / Zinc / Lead – Portugal
Slide 12: Neves-Corvo
Neves-Corvo Continued Excellent Mine and Mill Performance – improved mine productivity and mill throughput all Copper, Zinc Production & Cash Cost Outlook contributing to significant performance increase (kt & $/lb Cu, net of by-product credits) 155-160 Zinc Expansion Project Advancing – all major s
Slide 13: Zinc Expansion Project (ZEP)
Zinc Expansion Project (ZEP) Surface Activities – mill and flotation buildings concrete work advancing – building structural steel to commence this quarter – mechanical and piping contracts awarded Underground Development – conveyor erection and crushed ore silo development commenced – crusher chamb
Slide 14: Eagle
Eagle Humboldt Mill – Nickel / Copper / PGMs – Michigan, U.S.A. 14
Slide 15: Eagle
Eagle Robust Mine and Mill Performance – slightly above plan throughput and grade Nickel, Copper Production & Cash Cost Outlook (kt & $/lb Ni, net of by-product credits) Excellent Progress on Eagle East – ramp development continues above planned rates 15-17 16-18 13-16 – received amendment permit fo
Slide 16: Eagle East
Eagle East Existing Access Ramp Eagle Mine Dual Declines Current Advance Eagle East Eagle East Infill Drill Program Ore Body Phase 1 Complete 16
Slide 17: Zinkgruvan
Zinkgruvan 17 Zinc / Lead / Copper – Sweden
Slide 18: Zinkgruvan
Zinkgruvan Focus on Improving Head Grade – zinc ore head grade hampered as a result of mine sequencing and greater than planned dilution Zinc Production & Cash Cost Outlook (kt & $/lb Zn, net of by-product credits) – site teams focusing on head grade improvements; grades returned to forecast in Sept
Slide 19: 2018 Capital Expenditure & Exploration Guidance
2018 Capital Expenditure & Exploration Guidance Capital Expenditures 1 (US$M) Total Capitalized Stripping 2 215 2018 Capital Guidance Reduced by $45M Los Diques Facility 60 – mainly on deferral and timing of expenditures New Mine Fleet Investment 120 Mill Optimization Investment 20 Candelaria Candel
Slide 20: Three-Year Production Outlook
Three-Year Production Outlook1 (kt attributable) Copper Zinc Nickel Forecast increase primarily on improved Forecast ~60% increase primarily on Eagle East planned on-line in 2020 Candelaria mine plan Neves-Corvo Zinc Expansion Project 244 17 201 16 234 183 15 187 13 174 13 167 169 176 10 151 166 147
Slide 21: 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 22: 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 23: TSX: LUN Nasdaq Stockholm: LUMI
TSX: LUN Nasdaq Stockholm: LUMI 23