Lundin Mining Corporation · TSX:LUN
Lundin Mining — Bank of America Merrill Lynch Global Metals, Mining & Steel Conference 2018
40 slides from Lundin Mining's conference presentation, May 2018
Slide 1: Bank of America Merrill Lynch Global Metals, Mining & Steel Conference
TSX: LUN Nasdaq Stockholm: LUMI Bank of America Merrill Lynch Global Metals, Mining & Steel Conference May 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: Q1 2018 Highlights
Q1 2018 Highlights Strong Operational Excellent Project Disciplined Capital Performance Execution Management – continued excellent safety – Los Diques commissioning – continued focus on low- performance ahead of schedule risk, high-return brownfield projects – on target to achieve – Candelaria under
Slide 5: Q1 2018 Summary Results
Q1 2018 Summary Results Candelaria Attributable Production – 41,187 t of copper – 36,880 t of zinc – 5,141 t of nickel – 8,780 t of lead $470M in Sales – 59% copper – 18% zinc – 12% nickel – 6% gold and silver $173M cash flow from operations $81M attributable continuing net earnings C$0.03/sh quarte
Slide 6: Financial Strength
Financial Strength Liquidity Position (March 31, 2018) Capital Allocation Priorities 18% – invest in low-risk, high-return brownfield Cash and Equivalents expansion projects and exploration Undrawn Credit Facility $2.0B – maintain regular dividend 82% – prudent and accretive management of debt and c
Slide 7: 2018 Capital Expenditure & Exploration Guidance
2018 Capital Expenditure & Exploration Guidance Capital Expenditures1 (US$M) Total Capitalized Stripping2 200 Overall Capex Guidance Unchanged Los Diques Facility 60 – minor offsetting changes to forecast sustaining New Mine Fleet Investment 75 capex at Eagle and Neves-Corvo Mill Optimization Invest
Slide 8: 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 9: 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 10: 2018 Exploration Expenditure Guidance
2018 Exploration Expenditure Guidance Results-Driven Exploration Programs – $83M budgeted for investment in 2018 in exploration programs company-wide – over 227,500 meters of planned drilling – $34M at Candelaria and $18M at Eagle reflect aggressive in-mine and near-mine exploration programs – $13M
Slide 11: 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 12: Candelaria
Candelaria 12 Candelaria Mill – Copper / Gold / Silver – Atacama Region, Chile
Slide 13: Candelaria
Candelaria On Track to Achieve Full Year Guidance – increased copper production and decreasing operating costs Copper Production & Cash Cost Outlook each year for five years (100% basis; kt & $/lb Cu, net of by-product credits) – increased operational flexibility and life-of-mine cash flow – waste s
Slide 14: 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 14 – operating permit applications submitted
Slide 15: 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 15 Candelaria Mill
Slide 16: Neves-Corvo
Neves-Corvo 16 Copper / Zinc / Lead – Portugal
Slide 17: Neves-Corvo
Neves-Corvo Excellent Mine and Mill Performance – multiple initiatives to increase overall business performance – noticeable improvement in mining execution in Q1 2018 resulting in improved mine productivity and mill throughput Copper, Zinc Production & Cash Cost Outlook (kt & $/lb Cu, net of by-pro
Slide 18: Neves-Corvo Overview
Neves-Corvo Overview Zinc Plant Expansion New Conveyor Ramp 18
Slide 19: Eagle
Eagle Humboldt Mill – Nickel / Copper / PGMs – Michigan, U.S.A. 19
Slide 20: Eagle
Eagle Continued Excellent Performance – on track to meet production guidance – excellent low cash costs and high margins Nickel, Copper Production & Cash Cost Outlook – on target throughput, high metal recoveries (kt & $/lb Ni, net of by-product credits) Eagle East Advancing Ahead of Schedule 14-17
Slide 21: Eagle East
Eagle East Existing Access Ramp Current Advance Eagle Mine Eagle East Dual Declines Ore Body 1,000 m 21
Slide 22: Zinkgruvan
Zinkgruvan On Track to Achieve Full Year Guidance – good zinc recoveries on lower than planned zinc Zinc Production & Cash Cost Outlook headgrade; forecast to improve (kt & $/lb Zn, net of by-product credits) – increasing three-year production profile on grade expectations 79-84 78-83 Rejuvenated Ex
Slide 23: Zinkgruvan – Exploration Focus
Zinkgruvan – Exploration Focus Exploration areas 23
Slide 24: Appendices
TSX: LUN OMX: LUMI Appendices 24
Slide 25: Three-Year Production Outlook
Three-Year Production Outlook1 2018 2019 2020 Copper Candelaria (80%) 104,000 – 109,000 116,000 – 121,000 132,000 – 137,000 Eagle 15,000 – 18,000 12,000 – 15,000 12,000 – 15,000 Neves-Corvo 39,000 – 44,000 40,000 – 45,000 41,000 – 46,000 Zinkgruvan 1,000 – 2,000 1,000 – 2,000 2,000 – 3,000 Total Att
Slide 26: Candelaria Copper Production Profile
Candelaria Copper Production Profile1 (kt; 100% basis) 189 189 184 178 174 172 167 165 156 159 152 147 137 137 127 115 103 94 66 57 2016A 2017A 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 December 2017 Technical Report January 2017 Technical Report At Pu
Slide 27: Candelaria – Mine Fleet Investment
Candelaria – Mine Fleet Investment Significantly Increased Production Profile and Extended Mine Life on Exploration Success – 20-year LOM when the open pit began production in 1994; most open pit equipment dates back to when operation opened – Mineral Reserve estimates now support mine life to 2035
Slide 28: Candelaria – Plant Optimization
Candelaria – Plant Optimization Low-Risk Investments to Increase Metal Production, Reduce Costs and Improve Safety – primary crusher motor upgrade – ball mill re-powering – cyclone and feed pump upgrades – flotation circuit upgrades – pebble circuit upgrade – front-end desalination plant and pipelin
Slide 29: Candelaria – Underground Mine Expansion
Candelaria – Underground Mine Expansion South Sector Significant Underground Exploration Looking west Success Under Lundin Mining Ownership – Candelaria North and South sectors underground Mineral Reserve estimate now 65.7Mt at 0.89% copper – South sector significantly under-drilled Increasing Under
Slide 30: Candelaria Complex – Mineral Resources and Mineral Reserves
Candelaria Complex – Mineral Resources and Mineral Reserves1 Ownership 80% Location Region III, Chile Mine life +15 years 2018 exploration budget ~$34M P&P Copper Mineral Reserves 2,785 kt contained (497,484 kt at 0.6%) M&I Copper Mineral Resources 5,153 kt contained (740,895 kt at 0.7%) Inferred Co
Slide 31: Candelaria Exploration Extension Potential
Candelaria Exploration Extension Potential1 SW NE Alcaparrosa Candelaria Pit Surface Topography Candelaria Norte 3rd Party Property Section Location Drillhole Trace Alcaparrosa Interpreted Prospective Horizons Santos > 0.4 % Cu Drillhole Samples $34M 2018 exploration program Candelaria 1. For more i
Slide 32: Eagle Mine and Eagle East – Mineral Resources and Mineral Reserves
Eagle Mine and Eagle East – Mineral Resources and Mineral Reserves1 Ownership 100% Location Michigan, USA Mine life 7 years 2018 exploration budget ~$18M P&P Nickel Mineral Reserves 130 kt contained (4,734 kt at 2.7%) M&I Nickel Mineral Resources 158 kt contained (4,449 kt at 3.6%) P&P Copper Minera
Slide 33: Eagle East – Meaningful Addition to Production Profile
Eagle East – Meaningful Addition to Production Profile Nickel Production Profile1 Copper Production Profile1 (kt) (kt) 25 25 20 20 15 15 10 10 5 5 0 0 2016A 2017A 2018 2019 2020 2021 2022 2023 2016A 2017A 2018 2019 2020 2021 2022 2023 Eagle Eagle East Eagle Eagle East 1. Refer to the April 10, 2017
Slide 34: Neves-Corvo – Mineral Resources and Mineral Reserves
Neves-Corvo – Mineral Resources and Mineral Reserves1 Ownership 100% Location Alentejo region, Portugal Mine life +10 years 2018 exploration budget ~$5M P&P Zinc Mineral Reserves 2,337 kt contained (30,409 kt at 7.7%) M&I Zinc Mineral Resources 6,458 kt contained (106,511 kt at 6.1%) Inferred Zinc M
Slide 35: Zinc Expansion Project Neves-Corvo
Zinc Expansion Project Neves-Corvo1 Zinc Production Profile1 – average annual zinc production of (metal in concentrate, kt Zn) approximately 150,000 tpa post expansion 186 175 176 166 150 153 – estimated life-of-mine C1 cash cost 142 131 129 of $0.28/lb copper net of by-product credits, or alternati
Slide 36: Zinkgruvan – Mineral Resources and Mineral Reserves
Zinkgruvan – Mineral Resources and Mineral Reserves1 Ownership 100% Location Askersund, Sweden Mine life +10 years 2018 exploration budget ~$13M P&P Zinc Mineral Reserves 855 kt contained (11,901 kt at 7.2%) M&I Zinc Mineral Resources 1,458 kt contained (15,668 kt at 9.3%) Inferred Zinc Mineral Reso
Slide 37: 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 38: Notes
Notes 38 lundin mining
Slide 39: Notes
Notes 39 lundin mining
Slide 40: TSX: LUN Nasdaq Stockholm: LUMI
TSX: LUN Nasdaq Stockholm: LUMI 40
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