Slide 1: Third Quarter 2020 Results
Third Quarter 2020 Results October 29, 2020 TSX: LUN Nasdaq Stockholm: LUMI Candelaria, Atacama Region, Chile
Slide 2: Cautionary Statements
Cautionary Statements Caution Regarding Forward-Looking Information and Non-GAAP Performance Measures This document contains “forward-looking information” within the meaning of Canadian securities laws. All statements other than statements of historical facts constitute forward-looking information,
Slide 3: Participants
Participants Marie Inkster President & CEO Jinhee Magie SVP & CFO Peter Richardson SVP & COO October safety stand downs to pay tribute to a lost colleague and reflect on our shared commitment to our goal of Zero Harm 3
Slide 4: Responsible Mining
Responsible Mining Safety – Foremost Value Total Recordable Injury Frequency • we hold health and safety as our top priority in everything we do per 200,000 person hours worked • we believe that all occupational injuries and work-related illnesses are preventable. Our aim is Zero Harm • self-initiat
Slide 5: Q3/20 Summary Results
Q3/20 Summary Results Production Payable Sales 61,444 t of copper 58,486 t of copper 32,787 t of zinc 29,565 t of zinc 45,000 oz of gold 39,000 oz of gold 4,854 t of nickel 3,539 t of nickel 6,331 t of lead 7,146 t of lead $601M in Sales Other Lead Sweden 3% 2% 7% Nickel 9% Portugal 12% Zinc 9% USA
Slide 6: Financial Highlights
Financial Highlights Realized Metal Prices1 Q3/20 Q3/19 Δ Copper $3.24/lb $2.52/lb 29% Gold $1,980/oz $1,239/oz 60% Nickel $7.03/lb $10.73/lb (34%) Zinc $1.12/lb $1.02/lb 10% Summary Financial Results2 Q3/20 Q3/19 Δ Revenue $601M $539M 12% Gross Profit $199M $129M 54% $122M $26M 369% Attributable Ne
Slide 7: Candelaria
Candelaria Improved Quarterly Throughput Copper, Gold Production & Cash Cost1 Outlook 2.4 (100% basis; kt Cu, koz Au & $/lb Cu, net of by-product credits) • production of 35,836 t of copper and 2.3 2.3 2.3 21,000 oz of gold at cash cost of $1.37/lb 185-195 Avg. +190 of copper • ore milled increased
Slide 8: Chapada
Chapada Excellent Quarter Prior to Late Interruption • production of 12,990 t of copper and 24,000 oz Copper, Gold Production & Cash Cost1 Outlook of gold in Q3/20 in line with expectations (100% basis; kt Cu, koz Au & $/lb Cu, net of by-product credits) • Q3/20 copper cash cost of $0.21/lb benefits
Slide 9: Neves-Corvo
Neves-Corvo Ore Availability Impacted Quarter • Q3/20 production of 6,518 t of copper, 15,459 t of zinc and 760 t of lead at cash cost of $1.97/lb of copper Copper, Zinc Production & Cash Cost Outlook • copper production impacted by ore availability and below planned grade. Copper and (kt & $/lb Cu,
Slide 10: Zinkgruvan
Zinkgruvan Positioned for Strong Q4/20 & Start to 2021 • zinc production increased 38% in Q3/20 over Q2/20 to 17,328 t on improved head grade and throughput Zinc Production & Cash Cost Outlook (kt & $/lb Zn, net of by-product credits) • cash costs remain stable and favorable at $0.55/lb zinc in Q3/2
Slide 11: Eagle
Eagle Increasing Eagle East Ore Grades • nickel production increased nearly 45% Nickel, Copper Production & Cash Cost Outlook and copper over 25% in Q3/20 (kt & $/lb Ni, net of by-product credits) compared to Q2/20 on increasing Eagle East ore grades and metal recovery • Q3/20 production of 4,584 t
Slide 12: 2020 Guidance Summary
2020 Guidance Summary1 Production C1 Cash (contained metal in conc.) Cost2 Capital Expenditures ($M) Copper (t) Candelaria (100%) Under Review N/A Sustaining 3 Chapada 45,000 - 50,000 $0.55 Candelaria (100% basis) Under Review Eagle 17,000 - 19,000 Chapada 40 Neves-Corvo 32,000 - 34,000 $2.103 Eagle
Slide 13: Capital Allocation
Capital Allocation Capital Return & Disciplined Growth • given financial strength, capital return and disciplined growth are not mutually exclusive • few actionable opportunities in current market for M&A that would maintain or improve quality of asset portfolio Peer-Leading Dividend Yield • annuali
Slide 14: Our Strategy
Lundin Mining Our Strategy Operate, upgrade and grow a base metals portfolio that provides leading returns for our shareholders throughout the cycle • copper dominant • competitive cost position Eagle Zinkgruvan • low-risk mining jurisdictions Nickel-Copper-PGMs in U.S.A. Zinc-Lead-Copper in Sweden
Slide 15: www.lundinmining.com
www.lundinmining.com | TSX: LUN | Nasdaq Stockholm: LUMI
Slide 16: 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