Lundin Mining Corporation · TSX:LUN
Lundin Mining — Investor Presentation (July 2023)
25 slides from Lundin Mining's investor presentation, July 2023
Slide 1: Copper growth to supply our world's transition
Copper growth to supply our world’s transition Corporate Presentation – July 2023 TSX: LUN NASDAQ STOCKHOLM: LUMI
Slide 2: Cautionary Statements
Cautionary Statements Caution Regarding Forward-Looking Information and Non-IFRS Performance Measures Certain of the statements made and information contained herein is “forward-looking information” within the meaning of applicable Canadian securities laws. All statements other than statements of hi
Slide 3: Copper growth to supply our world's transition
Copper growth to supply our world’s transition We mine metals We produce at a We have the essential today and meaningful global financial strength for the world’s shift scale and are and operational to a lower carbon positioned for expertise to deliver future material growth on our goals
Slide 4: Our focus is base metals
Our focus is base metals The world now classifies them as critical Our Strategy – operate, upgrade and grow a base metals portfolio that provides leading returns for our shareholders throughout the cycle ▪ copper dominant portfolio ▪ long-life and cost-competitive assets Caserones, Chile in establis
Slide 5: Mining the metals essential today and for the world's shift to a lower carbon future
Eagle Zinkgruvan Mining the Cu 2022A u/g Zn Cu 2022A 48 kt CuEq3 u/g 10+ years metals essential Ni Ag Co PGM 67 kt CuEq3 4+ years today and for the world’s shift to a lower carbon future Chapada 2022A Neves-Corvo Cu Au o/p Cu Zn 2022A u/g Ag 60 kt CuEq3 30+ years Pb Ag 68 kt CuEq3 10+ years Caserone
Slide 6: Meaningful Scale & Material Growth
Cu Meaningful Scale Copper & Material Growth Copper Production Profile3,4 (kt) Caserones Acquisition Chapada/ • large-scale, long-life copper-molybdenum operation CUGEP Sauva • proximity to Candelaria and Josemaria introduces opportunities to realize supply, logistical and management synergies 366 -
Slide 7: Caserones
Caserones Large-scale production that provides copper growth and mutual synergies, infrastructure and efficiencies • initial 51% interest and operatorship with an attractive call option to increase ownership up to 70% • ~50% pro forma increase in 2022 copper output • immediately accretive on key fin
Slide 8: Highly Complementary Acquisition
Highly Complementary Acquisition Totoralillo Pro Forma FY 2022 Metal Mix Revenue by Metal1, 2 Caldera CHILE Moly Other ~75 km Copiapó Other Gold Gold Candelaria Zinc Zinc Over Over $4.1B Punta Padrones Port and Desalination Plant, Caldera $3.0B in Revenue in Revenue Nickel Nickel ~105 km Copper 63%
Slide 9: FY2022 Key Financial Metrics
FY2022 Key Financial Metrics Revenue1,2 Adjusted EBITDA1,2 Adjusted Earnings1,2 of over $4.1B of nearly $1.8B of over $550M $4,104 $1,769 $551 $483 $68 $1,063 $477 $3,041 $1,293 $483 $483 $3,041 $3,041 $1,293 $1,293 LUN Pro Forma LUN Pro Forma LUN Pro Forma Adjusted Operating Cash Flow1,2 Free Cash
Slide 10: Ideal Operator of Caserones
Ideal Operator of Caserones We know the region and its true potential very well Since Lundin Mining’s 2014 Acquisition of Candelaria: Mine life Nearly Over extended 160% 175% and production profile improved1 in forecast copper production in M&I Mineral Resource1,2 over the life-of-mine (2016-2046)1
Slide 11: Strategic Copper Asset in Chile
Strategic Copper Asset in Chile Caserones Overview Historical 5-Yr Average1 2023 H2 Guidance1,2 ▪ large-scale, open-pit mine located in the highly 129 kt Cu 60 - 65 kt Cu Cash cost $2.30 - $2.453 prospective Atacama region in Chile - ~100 km southeast from Candelaria and 20 km from Caserones Copper
Slide 12: Highly Prospective Land Package
Highly Prospective Land Package Aim to Achieve Similar Exploration Success as at Candelaria The acquired land package is within a well-known and highly prospective area: 58,525 hectares of total land area covered by granted and applied for mining concessions Map of Mining and Surface Land Ownership
Slide 13: Vicuña District Exploration Potential
Vicuña District Exploration Potential Los Helados • significant potential to further increase value in the district leveraging Lundin Mining’s expertise Chile Argentina • positioned to be the potential center of future development and expansion within the highly prospective district Las Pailas Josem
Slide 14: Zinc Production Growth Ramping Up
Zn Production Growth Production Profile2 (kt) Zinc Ramping Up 215 - 230 225 - 240 Top-15 Global Producer of Zinc in Concentrate 180 - 195 Neves-Corvo Zinc Expansion Project Ramping Up 159 • full mining and processing rates expected to be achieved on a sustainable basis during 2024 • evaluating devel
Slide 15: Nickel and Gold: Low-Cost Producer, Significant By-Product Credits
Ni Low-Cost Au Significant Nickel Producer Gold By-Product Credits • Eagle is only primary nickel mine in the U.S.A. • significant gold production growth with development of Josemaria2, potential • produces high-quality nickel concentrate containing payable expansion at Chapada and development of Sa
Slide 16: 2023 Guidance
2023 Guidance1 Production (t, oz; contained metal in conc.) Cash Cost 2,3 Capital Expenditures2 ($M) Candelaria (100%) 145,000 - 155,000 $1.80 - $1.95 Sustaining Capital 4 Caserones (100%) - H2 Only 60,000 - 65,000 $2.30 - $2.45 Candelaria (100% basis) 400 Cu Chapada 43,000 - 48,000 $2.55 - $2.75 Ca
Slide 17: High Quality Operations, Meaningful Scale & Material Growth, Financial Strength
High Quality Meaningful Scale & Financial Operations Material Growth Strength TSX: LUN NASDAQ STOCKHOLM: LUMI
Slide 18: Appendix
Appendix :.... lundin mining
Slide 19: A Leader in Responsible Mining
A Leader in Responsible Mining Ambitious but achievable: our goal is to reduce Scope 1 & 2 GHG absolute emissions 35% by 20301 1. Compared to 2019 baseline year Committed assurance framework to promote the responsible production of copper Zinkgruvan Candelaria, Punta Padrones Port & Desalination Pla
Slide 20: Responsible Mining
Responsible Mining ✓ leading ISS Environment & Social Quality Scores ✓ CDP score of ‘B’, above industry and North American averages ✓ Candelaria’s operational water requirements met through reuse and make- up water from owned sea water desalination facility ✓ renewables increased to a minimum of 80%
Slide 21: Focused on the Future
Focused on the Future 35% Reduction in 7 Years • Scope 1 & 2 GHG absolute emissions reduction target of 35% by 2030 compared to our 2019 baseline year Embedding our Target 2022-2023 • baseline data is established and has been verified since 2014 • work is underway to ensure governance processes and
Slide 22: Non-GAAP and Other Performance Measures
Non-GAAP and Other Performance Measures Adjusted EBITDA, Adjusted Earnings Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”) and adjusted earnings are non-GAAP measures and are not a standardized financial measure under IFRS, the financial reporting framewor
Slide 23: Non-GAAP and Other Performance Measures cont.
Non-GAAP and Other Performance Measures cont. Adjusted Operating Cash Flow Free Cash Flow from Operations Adjusted operating cash flow per share is a performance measure used by the Company Free cash flow from operations is indicative of the Company’s ability to generate cash from to assess its abil
Slide 24: NI 43-101 technical information
NI 43-101 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 releases (co
Slide 25: www.lundinmining.com
www.lundinmining.com | TSX: LUN | Nasdaq Stockholm: LUMI