Slide 1: First Quarter 2017 Results
TSX: LUN OMX: LUMI First Quarter 2017 Results April 27, 2017 Neves-Corvo, Portugal 1
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
President & Paul Conibear Chief Executive Officer Senior Vice President & Marie Inkster Chief Financial Officer Peter Quinn Chief Operating Officer 8 lundin mining
Slide 4: Operating Highlights – Q1/17
Operating Highlights – Q1/17 Operations Performed in Line with Plan Expansion Studies and Projects Advancing at All Operations Candelaria copper production and cash costs on track to meet full-year guidance Throughput lower during the quarter on planned maintenance activities Eagle achieved excellen
Slide 5: Revenue Breakdown – Q1/17
Revenue Breakdown – Q1/17 Sales of $488M Lead Other 3% 3% Gold 6% Zinkgruvan Nickel 11% 6% Eagle 15% Zinc 15% Candelaria Copper Neves-Corvo 57% 17% 67% By Operation By Metal 5
Slide 6: Attributable Net Earnings from Continuing Operations
Attributable Net Earnings from Continuing Operations Net earnings from continuing operations attributable to Lundin Mining shareholders increased compared to the same period last year mainly due to comparative changes in operating earnings $100.9M $7.7M $35.9M $2.6M $57.6M ($17.7M) Q1/16 Op Earnings
Slide 7: Operating Earnings – Q1/17
Operating Earnings – Q1/17 Operating earnings increased 74% compared to the same period last year mainly due to metal prices, partially offset by costs $129.3M $11.8M $264.4M $4.4M $2.0M $151.7M $2.4M Q1/16 Volume Price & Adj. Cost FX and Other Aguablanca Q1/17 7
Slide 8: Financial Highlights – Q1/17
Financial Highlights – Q1/17 Q1/17 Q1/16 Δ Realized Metal Prices1 Copper $2.80/lb $2.20/lb 27% Nickel $4.63/lb $3.55/lb 30% Zinc $1.32/lb $0.81/lb 63% Revenue $488M $370M 32% Operating Earnings $264M $152M 74% Attributable Net Income / (Loss) from $58M ($18M) 422% Continuing Operations $0.08/sh ($0.
Slide 9: Balance Sheet Strength and Flexibility
Balance Sheet Strength and Flexibility $214M of cash generated in Q1/17 Cash balance at April 26, 2017 of approximately $2.1B and net cash of approximately $1.1B $350M revolving credit facility undrawn Cash and Cash Equivalents (End of Quarter) Liquidity Position (April 26, 2017) 14% $929M $2.4B $56
Slide 10: Capital Allocation Strategy Focus on Disciplined Growth
Capital Allocation Strategy Focus on Disciplined Growth Invest in high-return brownfield expansion projects and exploration Service regular dividend Prudent and accretive management of bond debt and cash positions Keep flexible balance sheet to move quickly on compelling growth opportunities Conside
Slide 11: 2017 Production and Cash Cost Guidance
2017 Production and Cash Cost Guidance No change to annual production guidance C1 cash cost guidance improved for Eagle and Neves-Corvo Attributable Production1 and C1 Cash Cost2 (kt and $/lb, net of by-products) Copper Candelaria (80%) 145,000 – 150,000 $1.20/lb Eagle 15,000 – 18,000 Neves-Corvo 41
Slide 12: 2017 Capital Expenditure and Exploration Guidance
2017 Capital Expenditure and Exploration Guidance Los Diques estimated cost unchanged at $295M Capital Expenditures1 (US$M) - $120M in 2017 of which $20M was spent in Q1 Total Capitalized Stripping2 105 Los Diques Facility 120 - $45M in 2018 Other Candelaria Sustaining 25 Total Candelaria (100% basi
Slide 13: Candelaria
Candelaria Copper / Gold / Silver – Region III, Chile 13
Slide 14: Candelaria
Candelaria Copper Production & Cash Cost (100% basis; kt & $/lb Cu, net of by-product credits) Q1/17 copper production of 39.1 kt (100% basis) - $1.27/lb copper cash cost Last Five Quarters - throughput impacted by planned downtime for 49.1 41.5 maintenance activities on crusher and SAG mill 36.9 39
Slide 15: Candelaria – Los Diques Construction
Candelaria – Los Diques Construction 15 As at April 13, 2017
Slide 16: Candelaria Exploration Extension Potential
Candelaria Exploration Extension Potential SW NE Candelaria Pit Candelaria Norte Alcaparrosa Surface Topography 3rd Party Property Section Location Drillhole Trace Alcaparrosa Interpreted Prospective Horizons Santos Candelaria > 0.4 % Cu Drillhole Samples 1,000 m 16 16 Property limits
Slide 17: Eagle
Eagle Nickel / Copper / PGMs – Michigan, U.S.A. 17
Slide 18: Eagle
Eagle Nickel, Copper Production & Cash Cost Q1/17 production of 6.3 kt nickel and 6.5 kt copper (kt & $/lb Ni, net of by-product credits) - above plan grades, recoveries, and mill throughput Last Five Quarters - cash cost of $0.94/lb nickel on higher by-product 6.8 6.3 6.5 6.0 6.2 6.1 5.8 5.7 5.6 cr
Slide 19: Eagle and Eagle East Overview
Eagle and Eagle East Overview Existing access ramp Eagle Mine Eagle East Deposit 1,000 m 19
Slide 20: Neves-Corvo
Neves-Corvo Copper / Zinc – Portugal 20
Slide 21: Neves-Corvo
Neves-Corvo Copper, Zinc Production & Cash Cost Q1/17 production of 10.2 kt copper and 17.9 kt zinc (kt & $/lb Cu, net of by-product credits) - copper production slightly below plan primarily on Last Five Quarters lower throughput and grade as a result of mine 17.7 18.3 17.6 17.9 15.9 sequencing 13.
Slide 22: Neves-Corvo Overview
Neves-Corvo Overview Zinc Plant Expansion Underground crusher and incline conveyors 22
Slide 23: Zinkgruvan
Zinkgruvan 23 Zinc / Lead / Copper – Sweden
Slide 24: Zinkgruvan
Zinkgruvan Zinc, Lead Production & Cash Cost Q1/17 production of 19.3 kt zinc (kt & $/lb Zn, net of by-product credits) - production and cash cost in line with expectations Last Five Quarters 22.7 - no change to annual guidance 18.8 19.8 19.3 17.3 10.8 1350 Zinc Expansion Project 7.1 6.4 7.4 7.6 $0.
Slide 25: Zinkgruvan
2 . ( ‘ Zinkgruvan Ya? Mi Range heap: ( 3, Lose Zinc - Lead ore ~' 8g Orebro * 1B Mined out area Vanem J AsKerednd’ * | ia e a Copper ore
Slide 26: Tenke Fungurume
Tenke Fungurume Closed sale of interest in TF Holdings Limited in April 2017 - received gross proceeds of $1.136B - contingent additional consideration of up to $51.4M Tenke distributions totaled $55M in Q1/17 26 Copper / Cobalt – DRC
Slide 27: 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 at all operations approach, focused on - demonstrated operational v
Slide 28: TSX: LUN OMX: LUMI
TSX: LUN OMX: LUMI 28