Slide 1: Fourth Quarter and 2018 Year-End Results
TSX: LUN Nasdaq Stockholm: LUMI Fourth Quarter and 2018 Year-End Results February 15, 2019 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 Marie Inkster President & CEO Jinhee Magie SVP & CFO Peter Richardson SVP & COO 3 Zinkgruvan Underground
Slide 4: 2018 Highlights
2018 Highlights Excellent Advancing Disciplined Capital Performance Projects Management – overall safety performance – Candelaria low-risk high- – early redemption of better than target for sixth return investments on remaining high yield notes consecutive year schedule and budget – actively assessi
Slide 5: Summary Results
Summary Results 2018 Full-Year Results Production – 199,630 t of copper – 152,041 t of zinc – 17,573 t of nickel – 31,184 t of lead $1,726M in Revenue – 64% copper – 17% zinc – 9% nickel – 3% lead 55 New Candelaria Haul Trucks
Slide 6: Financial Highlights
Financial Highlights Realized Metal Prices 1 2018 2017 Δ Copper $2.79/lb $2.98/lb (6%) Nickel $5.64/lb $4.84/lb 17% Zinc $1.25/lb $1.37/lb (9%) Summarized Financial Results 2 2018 2017 Δ Revenue $1,726M $2,077M (17%) Gross Profit $437M $820M (47%) Attributable Net Earnings from Continuing Operations
Slide 7: Candelaria
Candelaria Met Annual Guidance Copper Production & Cash Cost Outlook (100% basis; kt & $/lb Cu, net of by-product credits) – produced 134,578 t of copper at $1.68/lb cash cost – moved 72.3 Mt of waste from open pit 175-185 – North Sector UG production at ~10,200 tpd, an 11% 165-175 increase over the
Slide 8: Candelaria Open Pit – Phase Pushback
Candelaria 8 Candelaria Open Pit – Phase 10 Pushback – Early February 2019
Slide 9: Candelaria
Candelaria Fleet Reinvestment, Mill Optimization and South Sector Development Progressing Well – ~60% of new open pit mine fleet received and in service. Remaining equipment to be delivered mainly in 2019 – >95% of Mill Optimization Project equipment orders placed and construction >40% completed at
Slide 10: Neves-Corvo
Neves-Corvo Excellent Mine and Mill Performance – produced 45,692 t of copper and 75,435 t of zinc at $1.28/lb copper cash cost Copper, Zinc Production & Cash Cost Outlook (kt & $/lb Cu, net of by-product credits) – improved mine productivity and mill throughput both contributed to significant perfo
Slide 11: ZEP – Underground Construction
ZEP – Underground Construction Top of Crusher Chamber Transfer Point #3 Turnover Station Conveyor #3 11
Slide 12: ZEP – Zinc Plant Construction
ZEP – Zinc Plant Construction Zinc Plant Construction – Early February 2019 12
Slide 13: ZEP – Surface Construction
ZEP – Surface Construction New Zinc Plant Construction – Early February 2019 Flotation Cell Installation in Existing Plant 13
Slide 14: Eagle & Eagle East
Eagle & Eagle East Robust Performance – produced 17,573 t of nickel and 17,974 t of Nickel, Copper Production & Cash Cost Outlook copper at $1.01/lb nickel cash cost (kt & $/lb Ni, net of by-product credits) – lower head grades as per mine sequencing ahead of Eagle East coming online 19-22 16-19 18
Slide 15: Zinkgruvan
Zinkgruvan Improved Grades and Mill Throughput – produced 76,606 t of zinc,1,386 t of copper Zinc Production & Cash Cost Outlook and 24,613t of lead at $0.34/lb zinc cash cost (kt & $/lb Zn, net of by-product credits) – Q4 2018 zinc production was the best quarter of the year on improved zinc ore he
Slide 16: 2019 Capital & Exploration Expenditure Guidance
2019 Capital & Exploration Expenditure Guidance Capital Expenditures Capital Expenditures 1 (US$M) – unchanged from previous guidance Capitalized Stripping2 130 Los Diques TSF 10 Exploration – aggressive in-mine and near-mine programs New Mine Fleet Investment 75 – $80M to be invested in 2019 in exp
Slide 17: Increasing Production Profile
Increasing Production Profile1 (kt) Copper Zinc Nickel Forecast 7% CAGR primarily on improved Forecast ~55% increase primarily on Eagle East planned on-line in Q4 2019 Candelaria mine plan and low-risk investments Neves-Corvo Zinc Expansion Project 251 241 246 19 18 231 16 210 15 232 16 218 227 195
Slide 18: Capital Allocation Priorities
Capital Allocation Priorities Invest in low-risk, high-return brownfield expansion projects and exploration Maintain regular dividend Keep a flexible balance sheet to move quickly on compelling growth opportunities Consider other returns of capital to shareholders from time-to-time – announced Norma
Slide 19: TSX: LUN Nasdaq Stockholm: LUMI
TSX: LUN Nasdaq Stockholm: LUMI
Slide 20: 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