Slide 1: Corporate Presentation
TSX: LUN OMX: LUMI Corporate Presentation September 2014
Slide 2: Cautionary Statements
Cautionary Statements Caution Regarding Forward Looking Information This presentation contains forward-looking information, including, but not limited to, guidance on estimated annual production and cash costs. This forward-looking information is not based on historical facts, but rather on current
Slide 3: Lundin Mining - Global Operations
Lundin Mining- Global Operations European Assets Tenke Fungurume Growth Projects • Neves-Corvo, Portugal • Tier 1 Cu/Co asset • Eagle Mine, Michigan • Zinkgruvan, Sweden • 24% interest • Tenke Expansions • Aguablanca, Spain • Freeport-McMoRan • Exploration projects • Kokkola Cobalt Refinery, operato
Slide 4: Good Growth Profile in all Metals
Good Growth Profile in all Metals Nickel Production (kt) Copper Production (kt) 30 140 25 20 120 15 10 100 5 - 80 2013 2014E 2015E 2016E 60 200 Zinc Production (kt) 40 150 20 100 - 50 2013 2014E 2015E 2016E - 2013 2014E 2015E 2016E Wholly owned Tenke *LUN production profile based on 3-yr guidance pr
Slide 5: Cost Competitive Across All Commodities
Cost Competitive Across All Commodities 2014 C1 Copper Cost Curve Neves-Corvo a ($US/lb) Weighted Tenke Fungurume a Average $1.85 $1.54 $1.21 Cumulative Percentile Production 2014 C1 Zinc Cost Curve 2015 C1 Nickel Cost Curve Aguablanca a ($US/lb) ($US/lb) Zinkgruvan a Eagle b $4.25 $0.35 $2.00 Cumul
Slide 6: 2014 Production Guidance
2014 Production Guidance Mine Tonnes Copper Neves-Corvo 50,000-55,000 Zinkgruvan 3,000-4,000 Aguablanca 6,000-7,000 Eagle 2,000-3,000 Wholly Owned 61,000-69,000 Tenke (24%)a 47,900 Total Attributable 108,900-116,900 Zinc Neves-Corvo 60,000-65,000 Zinkgruvan 75,000-80,000 Total 135,000-145,000 Lead N
Slide 7: Sustaining & Growth Investment - 2014
Sustaining & Growth Investment- 2014 $US M Total New Sustaining Neves-Corvo $60 Investment Total Tenke Zinkgruvan $35 61% 9% Exploration Other $5 Budget Total Sustaining $100 6% New Investment Neves $30 Aguablanca $10 Eagle $300 Total Sustaining Total New Investment $340 24% Total Tenke a $50 Explor
Slide 8: Financial Outlook
Financial Outlook • Strong balance sheet with excellent flexibility • Net cash balance expected to grow rapidly as Eagle enters production $1,200 Consensus Estimates - Net Cash / (Debt) a As of June 30, 2014 $US M $942 $900 Cash & Equivalents $142 $604 $600 Total Debt $316 US$M Total Net Debt Balanc
Slide 9: Operations & Projects
Operations & Projects Neves-Corvo Zinkgruvan Aguablanca Tenke Fungurume Eagle 9
Slide 10: Neves-Corvo Snapshot
Neves-Corvo Snapshot • Underground copper and zinc mine Location Portugal located in Portugal 2014 Production 50,000–55,000 t Cu Guidance 60,000–65,000 t Zn • Active mining in five major ore 2014 C1 Costs $1.85/lb Cu bodies underground Mine Life +10 years Cu + Zn • Significant copper exploration and
Slide 11: Neves-Corvo Outlook
Neves-Corvo Outlook • Zinc expansion feasibility study progressing to plan with completion expected in Q1 2015 • Study basis ~150,000 tpa zinc in 2017. Brownfields with low capex intensity 11
Slide 12: Zinkgruvan Snapshot
Zinkgruvan Snapshot • Underground zinc/lead/copper Location Sweden mine located 200 km southwest of 2014 75,000–80,000 t Zn Stockholm Production 29,000–32,000 t Pb Guidance 3,000–4,000 t Cu • High quality zinc concentrate 2014 C1 Costs $0.35/lb Zn sought after by European smelters Mine Life +10 year
Slide 13: Zinkgruvan Outlook
Zinkgruvan Outlook • Overall production profile expected to remain steady going forward • Progressive investments continue in the paste backfilling system to improve system availability/expand capacity 13
Slide 14: Aguablanca Snapshot
Aguablanca Snapshot • Open-pit nickel/copper mine Location Spain located 100 km north of Seville, Ownership 100% Spain 2014 7,500–8,500 t Ni Production 6,000–7,000 t Cu • Underground mining extends Guidance mine life to 2018 for total capex 2014 C1 Costs $4.25/lb Ni of $30M spread over 2014-2017 Min
Slide 15: Tenke Snapshot
Tenke Snapshot • Operated by Freeport- Location Democratic Republic of Congo McMoRan Ownership 24% 2014 Sales • 6th year of operation Production 47,900 t Cu Guidance (24%) • 2014 YTD production (100% 2014 C1 Costs $1.21/lb Cu basis) of 101kt Cu and 6kt Co Mine Life +40 years at cost of $1.06/lb Cu 1
Slide 16: Tenke Outlook
Tenke Outlook • For the year, cash distributions are expected to be in range of $80 - $100m • Expected distributions slightly lower than previous guidance due to copper price uncertainty and higher working capital on hand • New acid plant scheduled to be completed in 2016 and is sized to support fut
Slide 17: Eagle Mine - Update
Eagle Mine - Update • Overall construction continues on- Location Michigan, USA time and on-budget 2015-17 ~23,000t Ni Production • Mill construction approximately Guidance ~20,000t Cu 90% completed as of June 30, 2014 2015-17 C1 Costs ~$2.00/lb Ni • Capital costs remain on budget with Mine Life 8 y
Slide 18: Eagle - Construction Well Advanced
Eagle – Construction Well Advanced Eagle Mine Site Humboldt Mill Mill Water Treatment Plant Ball Mills 18 18
Slide 19: Eagle Operational Readiness
Eagle Operational Readiness • Mine and mill site operations fully staffed • Low grade ore for startup stockpiled at mine and mill site • Commissioning with material commenced in late August • Project substantial completion expected in September • First concentrate sales expected in early Q4 2014 • R
Slide 20: Eagle Reserves in Perspective
Eagle Reserves in Perspective Ni Deposits and Districts - Total resources 10 Eagle Raglan Thompson Voisey's Bay Noril'sk Grade (% Ni) Punta Gorda Pechenga Sudbury 1 Jinchuan Murrin-Murrin Serovskoe Mt Keith Platreef Duluth 0.1 1 10 100 1000 10000 Million tonnes Laterite Deposits Sulphide Deposits Su
Slide 21: Lundin Mining Summary
Lundin Mining Summary Geographic and base metal diversification Portfolio of high quality, long-life mines Optimization opportunities and exploration potential at all existing assets No high risk major capital projects Proven disciplined growth approach 21
Slide 22: TSX: LUN OMX: LUMI
lundin mining on LUM