Lundin Mining Corporation · TSX:LUN
Lundin Mining — BMO 30th Global Metals & Mining Conference 2021
30 slides from Lundin Mining's conference presentation, March 2021
Slide 1: BMO 30th Global Metals & Mining Conference
BMO 30 th Global Metals & Mining Conference March 1 st – 5 th 2021 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: Lundin Mining – 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 4: Responsible Mining
Responsible Mining • we recognize the important role of the metals we produce and are committed to mining these metals responsibly • sustainability strategy provides a framework for identifying focus areas that will reduce risks, increase opportunities, and add long-term value • we have reported on
Slide 5: Responsible Mining – Recognition and Safety
Responsible Mining Recognition of Responsible Mining in Action • leading ISS Environment & Social Quality Scores Total Recordable Injury Frequency • ‘Outperformer’ ESG performance assessment by Sustainalytics per 200,000 person hours worked • above average ‘B’ CDP score, significant achievement with
Slide 6: 2020 Highlights
2020 Highlights High Quality Completed Reinvestment and Remain Focused on Competitive Mines Progressed Growth Initiatives Value Creation • best-ever Total Recordable Injury Frequency • Candelaria Mill Optimization Project • announced 50% increase in regular dividend (TRIF) rate of 0.55 completed in
Slide 7: 2020 Summary Results
2020 Summary Results Production Payable Sales 230,781 t of copper 221,424 t of copper 142,744 t of zinc 120,179 t of zinc 163,000 oz of gold 154,000 oz of gold 16,718 t of nickel 12,481 t of nickel 29,236 t of lead 27,705 t of lead $2,042M in Sales Other Sweden Lead 4% 8% 2% Nickel 8% Portugal Zinc
Slide 8: Increasing Production Profile
Increasing Production Profile1,2 Copper Zinc Gold 300 kt 225 kt ~65% 175 koz 275 kt 200 kt ~30% 150 koz 250 kt 175 kt ~110,000 oz of unencumbered production in 2021 225 kt 150 kt 125 koz 200 kt 125 kt 175 kt 100 kt 100 koz 2020A 2021 2022 2023 2020A 2021 2022 2023 2020A 2021 2022 2023 1. Production
Slide 9: Candelaria
Candelaria Increasing Production and Reducing Cash Costs • 2020 production of 126,702 t of copper and 76,000 oz of gold at cash costs of $1.45/lb Copper, Gold Production & Cash Costs1 Outlook of copper exceeded most recent guidance (100% basis; kt Cu, koz Au & $/lb Cu, net of by-product credits) • s
Slide 10: Chapada
Chapada Strong Operational Performance Continues • 2020 production of 50,038 t of copper and Copper, Gold Production & Cash Costs2 Outlook 87,000 oz of gold both exceeded guidance (100% basis; kt Cu, koz Au & $/lb Cu, net of by-product credits) • achieved a first-quartile cash cost of $0.29/lb of co
Slide 11: Chapada – Near-Mine Exploration Drilling
Chapada – Near-Mine Exploration Drilling Exploration Advancing Well & Expansion Studies Continue 6 km • approximately 42,000 m of drilling completed in 2020 • 60,000 m drilling campaign and $8M exploration budget in 2021 3 km • expansion studies ongoing to optimize life of mine net asset value • +30
Slide 12: Neves-Corvo
Neves-Corvo Zinc Expansion Project Officially Restarted January 2021 • 2020 production of 32,032 t of copper and 69,143 t of zinc at cash costs of $2.09/lb of copper Copper, Zinc Production & Cash Costs Outlook1 • Zinc Expansion Project (ZEP) officially restarted in January 2021 (kt & $/lb Cu, net o
Slide 13: Zinkgruvan
Zinkgruvan Excellent Finish to 2020 & Well Positioned for 2021 • achieved record ore hoisted, total material hoisted and mill throughput in 2020 Zinc Production & Cash Costs Outlook1 • strong safety performance with lowest ever TRIF and all injury frequency (AIF) rates (kt & $/lb Zn, net of by-produ
Slide 14: Eagle
Eagle Consistent Performance Generating Impressive Free Cash Flow1 • outstanding safety performance in 2020, achieving 412 days without a recordable injury Nickel, Copper Production & Cash Costs Outlook2 • nickel production increased nearly 25% and copper over 30% YOY in 2020 on increasing (kt & $/l
Slide 15: 2021 Guidance Summary
2021 Guidance Summary1 Production C1 Cash (contained metal in conc.) Cost2 Capital Expenditures ($M) Copper (t) Candelaria (100%) 172,000 - 182,000 $1.353 Sustaining 3 Chapada 48,000 - 53,000 $1.10 Candelaria (100% basis) 345 Eagle 17,000 - 20,000 Chapada 65 Neves-Corvo 35,000 - 40,000 $2.203 Eagle
Slide 16: Lundin Mining
Lundin Mining High Quality Meaningful Scale Financial Strength Competitive Mines Growth Oriented • demonstrated operational excellence and • increasing copper, zinc and gold production • proven track record for rigorous investment culture of continuous improvement profiles approach, focused on value
Slide 17: www.lundinmining.com TSX: LUN Nasdaq Stockholm: LUMI
www.lundinmining.com | TSX: LUN | Nasdaq Stockholm: LUMI
Slide 18: Appendices
Appendices lundin mining
Slide 19: Responsible Mining – Tailings Management
Responsible Mining Tailings Management • employ a comprehensive and integrated approach to tailings management. This provides confidence that potential environmental and social impacts can be reliably identified and minimized • our Responsible Mining Management System includes a specific Tailings Ma
Slide 20: Responsible Mining – Climate Change, Energy and GHG Emissions
Responsible Mining Climate Change, Energy and CHG Emissions • recognize the need for effective approaches to managing climate-related responsibilities, especially in consideration of the remote locations in which we operate, the energy-intensive nature of our industry, and the sometimes-limited avai
Slide 21: Responsible Mining – Water Stewardship
Responsible Mining Water Stewardship • continue to make water stewardship gains, achieving measurable reductions in fresh water use and increases in water re-use in 2019. Total fresh surface water withdrawal decreased 7% in 2019 compared to 2018 • committed to improvements in water assessment and ma
Slide 22: Candelaria Complex – Mineral Resources and Mineral Reserves
Candelaria Complex – Mineral Resources and Mineral Reserves1 Ownership 80% Location Region III, Chile Mine life +20 years 2021 exploration budget $14M P&P Copper Mineral Reserves 3,656 kt contained (684,445 kt at 0.57%) M&I Copper Mineral Resources 7,574 kt contained (1,179,253 kt at 0.64%) Inferred
Slide 23: Candelaria Copper Production Profile
Candelaria Copper Production Profile1 (kt) 190 190 192 194 184 182 175 171 175 167 156 160 152 151 146 146 135 136 127 114 96 84 69 45 10 4 4 4 2016A 2017A 2018A 2019A 2020A 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 December 2018 Technical Re
Slide 24: Chapada – Mineral Resources and Mineral Reserves
Chapada – Mineral Resources and Mineral Reserves1 Ownership 100% Location Goiás State, Brazil Mine life +30 years 2021 exploration budget $8M P&P Copper Mineral Reserves 1,759 kt contained (759,652 kt at 0.23%) M&I Copper Mineral Resources 2,639 kt contained (1,132,198 kt at 0.23%) Inferred Copper M
Slide 25: Chapada Production Profile
Chapada Production Profile1 120 100 Metal Production 80 60 40 20 0 2 3 3 3 2019A 2020A 2021 2026 2027 2028 2033 2034 2035 2040 2041 2042 2047 2048 2049 2022 2023 2024 2025 2029 2030 2031 2032 2036 2037 2038 2039 2043 2044 2045 2046 2050 Copper (kt) Gold (koz) 1. Production shown is based on the NI 4
Slide 26: Eagle Mine – Mineral Resources and Mineral Reserves
Eagle Mine – Mineral Resources and Mineral Reserves1 Ownership 100% Location Michigan, USA Mine life 5 years P&P Nickel Mineral Reserves 100 kt contained (3,909 kt at 2.6%) M&I Nickel Mineral Resources 113 kt contained (3,807 kt at 3.0%) P&P Copper Mineral Reserves 84 kt contained (3,909 kt at 2.1%)
Slide 27: Neves-Corvo – Mineral Resources and Mineral Reserves
Neves-Corvo – Mineral Resources and Mineral Reserves1 Ownership 100% Location Alentejo region, Portugal Mine life +10 years 2021 exploration budget $4M P&P Zinc Mineral Reserves 2,200 kt contained (30,114 kt at 7.3%) M&I Zinc Mineral Resources 4,938 kt contained (71,253 kt at 6.9%) Inferred Zinc Min
Slide 28: Zinkgruvan – Mineral Resources and Mineral Reserves
Zinkgruvan – Mineral Resources and Mineral Reserves1 Ownership 100% Location Askersund, Sweden Mine life +10 years 2021 exploration budget $6M P&P Zinc Mineral Reserves 690 kt contained (8,786 kt at 7.9%) M&I Zinc Mineral Resources 1,955 kt contained (22,596 kt at 8.6%) Inferred Zinc Mineral Resourc
Slide 29: 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 30: www.lundinmining.com TSX: LUN Nasdaq Stockholm: LUMI
www.lundinmining.com | TSX: LUN | Nasdaq Stockholm: LUMI
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