Slide 1: Fourth Quarter and 2017 Year-End Results
TSX: LUN OMX: LUMI Fourth Quarter and 2017 Year-End Results February 15, 2018 1 Candelaria, Region III, 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 & Paul Conibear Chief Executive Officer Senior Vice President & Marie Inkster Chief Financial Officer Vice President Peter Richardson Chief Operating Officer Vice President Steve Gatley Technical Services 3
Slide 4: 2017 Highlights
2017 Highlights Strong Excellent Project Disciplined Capital Performance Execution Management – best ever safety – Los Diques tailings project – commenced regular performance under budget and ahead dividend of schedule – completed sale of interest – achieved guidance for production of all metals – E
Slide 5: Strong Performance Across Portfolio
Strong Performance Across Portfolio Robust Margins and Meaningful Scale1 (operating margin 2017, %) 2017 Full-Year Results 90% 80% Attributable Production – 202,989 t of copper 70% – 149,319 t of zinc Zinkgruvan 60% Candelaria – 22,081 t of nickel 50% Eagle – 33,488 t of lead 40% Neves-Corvo $2,078M
Slide 6: Financial Highlights
Financial Highlights 2017 2016 Δ Realized Metal Prices1 Copper $2.98/lb $2.31/lb 29% Nickel $4.84/lb $4.44/lb 9% Zinc $1.37/lb $0.99/lb 38% Summarized Financial Results2 Revenue $2,078M $1,546M 34% Operating Earnings $1,163M $654M 78% Attributable Net Earnings from Continuing Operations $371M $92M 3
Slide 7: Responsible Mining
Responsible Mining Safety Total Recordable Injury Frequency per 200,000 person hours worked – best ever performance with records on multiple parameters 5.6 Social – positive stakeholder engagement and increased social investment – achieved top ISS Environment & Social Quality Scores 3.5 3.1 Environm
Slide 8: Candelaria
Candelaria 8 Candelaria Mill – Copper / Gold / Silver – Region III, Chile
Slide 9: Candelaria
Candelaria Excellent Operating Performance – 2017 copper production of 183,858 tonnes (100% basis) met guidance – full-year cash cost of $1.22/lb copper modestly above guidance Copper Production & Cash Cost Outlook (100% basis; kt & $/lb Cu, net of by-product credits) 182-189 Delivered Improved Life
Slide 10: Candelaria – Los Diques Tailings Facility
Candelaria – Los Diques Tailings Facility Commissioning Underway – first tailings deposited on January 8, 2017 – total forecast capital cost unchanged at $295M with $45M to be spent in 2018 Advancing Future Phases – pulled forward to benefit from operational synergies – $15M to be spent in 2018 adva
Slide 11: Neves-Corvo
Neves-Corvo 11 Copper / Zinc / Lead – Portugal
Slide 12: Neves-Corvo
Neves-Corvo Achieved Guidance & Record Zinc Production – 2017 copper and zinc production met latest guidance – production impacted by labour action and complex copper ores – full-year cash cost of $0.88/lb copper, better than guidance Copper, Zinc Production & Cash Cost Outlook (kt & $/lb Cu, net of
Slide 13: Eagle
Eagle Humboldt Mill – Nickel / Copper / PGMs – Michigan, U.S.A. 13
Slide 14: Eagle
Eagle Excellent Performance and New Records Set – 2017 copper and nickel production met guidance – full-year cash cost of $0.93/lb nickel better than guidance – records achieved on metal recoveries and concentrate quality Nickel, Copper Production & Cash Cost Outlook (kt & $/lb Ni, net of by-product
Slide 15: Zinkgruvan
Zinkgruvan 15 Zinc / Lead / Copper – Sweden
Slide 16: Zinkgruvan
Zinkgruvan Record Throughput Post Mill Expansion – zinc production met latest guidance – record quarterly throughput in Q4/17 and record annual Zinc Production & Cash Cost Outlook (kt & $/lb Zn, net of by-product credits) throughput of 1.26M tonnes achieved – full-year cash cost of $0.31/lb zinc bet
Slide 17: 2018 Capital Expenditure & Exploration Guidance
2018 Capital Expenditure & Exploration Guidance Capital Expenditures1 (US$M) Candelaria Total Capitalized Stripping2 200 – investment in low-risk, high-return initiatives maximizing Los Diques Facility 60 benefits from improved life-of-mine production profile New Mine Fleet Investment 75 – re-phasin
Slide 18: 2018 Production and Cash Cost Guidance
2018 Production and Cash Cost Guidance Attributable Production1 and C1 Cash Cost2 (t and $/lb, net of by-products) Copper Candelaria (80%) 104,000 – 109,000 $1.70/lb Eagle 15,000 – 18,000 Neves-Corvo 39,000 – 44,000 $1.30/lb Zinkgruvan 1,000 – 2,000 Total Attributable 159,000 – 173,000 Nickel Eagle
Slide 19: Three-Year Production Outlook
Three-Year Production Outlook1 (kt attributable) Copper Zinc Nickel Increasing primarily on improved ~60% increase primarily on Neves-Corvo Eagle East on-line in 2020 Candelaria mine plan Zinc Expansion Project 244 17 201 16 234 183 187 13 173 14 13 169 176 159 10 154 166 144 2018 2019 2020 2018 201
Slide 20: Focus on Disciplined Growth
Focus on Disciplined Growth Liquidity Position (December 31, 2017) Invest in low-risk, high-return brownfield expansion projects and exploration 18% Cash and Equivalents Maintain regular dividend $1.9B Undrawn Credit Facility Prudent and accretive management of debt and 82% cash positions Keep flexi
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 OMX: LUMI
TSX: LUN OMX: LUMI 23