Lundin Mining Corporation · TSX:LUN
Lundin Mining — Shareholder Meeting (May 2018)
28 slides from Lundin Mining's shareholder meeting presentation, May 11, 2018
Slide 1: Annual General Meeting
TSX: LUN Nasdaq Stockholm: LUMI Annual General Meeting May 11, 2018 1 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: Lundin Mining
Lundin Mining Our Strategy Our Operations Freeport Cobalt1 Operate, upgrade and grow a Cobalt Refinery (Finland) base metal portfolio that provides leading returns for our Eagle Zinkgruvan shareholders throughout the cycle Nickel-Copper-PGMs (USA) Zinc-Lead-Copper (Sweden) – copper dominant Neves-Co
Slide 4: 2017 in Review
2017 in Review Strong Excellent Project Disciplined Capital Performance Execution Management – best ever safety – Los Diques tailings project – commenced regular performance constructed under budget dividend and ahead of schedule – achieved guidance for – completed sale of interest production of all
Slide 5: Responsible Mining
Responsible Mining Safety Total Recordable Injury Frequency per 200,000 person hours worked – best ever performance with records on multiple metrics 5.6 Social – positive stakeholder engagement and increased social investment – achieved top ISS Environment & Social Quality Scores 3.5 3.1 Environment
Slide 6: Strong Performance Across Portfolio
Strong Performance Across Portfolio Robust Margins1 Attributable Production (operating margin 2017, %) – 202,989 t of copper 80% – 149,319 t of zinc – 22,081 t of nickel 60% Zinkgruvan Candelaria – 33,488 t of lead Eagle 40% Neves-Corvo $2,078M in Sales – 67% copper 20% – 15% zinc – 7% nickel 0% – 7
Slide 7: Share & Metal Price Performance
Share & Metal Price Performance 5-Year Relative Performance Base metal prices increased during 2017: Copper 27%, Zinc 38% and Nickel 8% year-over-year 7 2013 Dec. 2014 Dec. 2015
Slide 8: 2018 Outlook
2018 Outlook Copper / Gold / Silver – Region III, Chile 8
Slide 9: 2018 Priorities
2018 Priorities Operate safely and responsibly, with strong community support Progress internal high value-add growth projects Zinc Expansion Project at Neves-Corvo Candelaria Projects - mine fleet reinvestment - underground mine development and production expansion - mill optimization - full operat
Slide 10: 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 11: Financial Strength
Financial Strength Liquidity Position (March 31, 2018) Capital Allocation Strategy 18% Invest in low-risk, high-return brownfield Cash and Equivalents expansion projects and exploration $2.0B Undrawn Credit Facility Maintain regular dividend 82% Prudent and accretive management of debt and cash posi
Slide 12: Internal Growth Projects
Internal Growth Projects Copper / Zinc – Portugal 12
Slide 13: 2018 Investment in Operations & Exploration
2018 Investment in Operations & Exploration $850M Planned Investment in Operations – $220M growth capital – $145M for Candelaria new mine fleet, mill optimization, and underground expansion $83M Planned Investment in Exploration – $34M at Candelaria – $18M at Eagle – $13M at Zinkgruvan – $5M at Neve
Slide 14: Candelaria
Candelaria 14 Candelaria Mill – Copper / Gold / Silver – Atacama Region, Chile
Slide 15: Los Diques Tailings Storage Facility
Los Diques Tailings Storage Facility First Phase Construction Complete – commissioning with continuous tailings placement commenced ahead of schedule, under budget 15 – operating permit applications submitted
Slide 16: Candelaria Initiatives
Candelaria Initiatives Candelaria North Sector Candelaria Candelaria New Excavators on Order Candelaria New Haul Trucks on Order Open Pit Candelaria South Sector Future Portal 16 Candelaria Mill
Slide 17: Candelaria Copper Production Profile
Candelaria Copper Production Profile1 (kt; 100% basis) 200 200 200 189 189 184 178 174 172 175 175 175 167 165 156 159 152 147 150 150 150 137 137 127 125 125 125 115 103 100 100 100 94 75 75 75 66 57 50 50 50 25 25 25 000 2016A 2016A 2017A 2017A 2018 2018 2019 2019 2020 2020 2021 2021 2022 2022 202
Slide 18: Neves-Corvo
Neves-Corvo 18 Copper / Zinc / Lead – Portugal
Slide 19: Neves-Corvo Overview
Neves-Corvo Overview Zinc Plant Expansion New Conveyor Ramp 19
Slide 20: Zinc Expansion Project Progressing at Neves-Corvo
Zinc Expansion Project Progressing at Neves-Corvo Project advancing with scheduled startup in H2 2019 – forecast to Neves-Corvo with ZEP, and Base Case (BC) without ZEP1 double zinc production Underground materials handling development 57% completed at the end of Q1/18 Surface construction started o
Slide 21: Eagle
Eagle Humboldt Mill – Nickel / Copper / PGMs – Michigan, U.S.A. 21
Slide 22: Eagle East
Eagle East Existing Access Ramp Current Advance Eagle Mine Eagle East Dual Declines Ore Body 1,000 m 22
Slide 23: Eagle East – Meaningful Addition to Production Profile
Eagle East – Meaningful Addition to Production Profile Development advancing ahead of schedule – nearly 50% of pre-production works complete at end of Q1/18 – permit amendment for additional tailings at mill facility progressing and expected mid-year Nickel Production Profile1 Copper Production Prof
Slide 24: Zinkgruvan
Zinkgruvan 24 Zinc / Lead / Copper – Sweden
Slide 25: Zinkgruvan Exploration areas
Zinkgruvan Exploration areas 25
Slide 26: 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 27: 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 28: TSX: LUN Nasdaq Stockholm: LUMI
TSX: LUN Nasdaq Stockholm: LUMI 28