Lundin Mining Corporation · TSX:LUN
Lundin Mining — Investor Presentation (June 2020)
30 slides from Lundin Mining's investor presentation, June 2020
Slide 1: Corporate Presentation
Corporate Presentation June 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: 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 Social & Environmental Safety • strong stakeholder engagement and increased social investment • overall safety performance continues to trend better • robust risk and compliance management programs in place • 2019 TRIF performance includes the successful integration of the Chapada
Slide 5: Increasing Production Profile (kt)
Increasing Production Profile1 (kt) Copper Gold Nickel 294 - 318 175 - 190 180 - 190 264 - 293 15 - 18 15 - 18 +30% 13 235 142 2019A 2020 2021 2019A 2020 2021 2019A 2020 2021 1. Production profile based on certain estimates and assumptions, including but not limited to; Mineral Resource and Mineral
Slide 6: Q1/20 Summary Results
Q1/20 Summary Results Production Payable Sales 62,167 t of copper 61,923 t of copper 36,947 t of zinc 29,348 t of zinc 38,000 oz of gold 39,000 oz of gold 3,575 t of nickel 2,809 t of nickel 9,481 t of lead 7,322 t of lead $378M in Sales by Metal Lead Other 4% Nickel 3% 6% Zinc 8% Copper Gold 64% 15
Slide 7: Candelaria
Candelaria Increasing Production Profile • Q1/20 production of 36,297 t of copper and approximately 21,000 oz of gold Copper, Gold Production & Cash Cost1 Outlook • $1.31/lb cash cost of copper benefited from favourable exchange rate3; full year (100% basis; kt Cu, koz Au & $/lb Cu, net of by-produc
Slide 8: Chapada
Chapada Robust Mine and Mill Performance • Q1/20 production of 11,881 t of copper and approximately 18,000 oz of gold Copper, Gold Production & Cash Cost1 Outlook (100% basis; kt Cu, koz Au & $/lb Cu, net of by-product credits) • copper cash cost of $0.92/lb benefited from favourable exchange rate3
Slide 9: Chapada Near-Mine Exploration
Chapada Near-Mine Exploration Near Mine Deposits Jatobá + Chapada Buriti Norte Sucupira/Cava Norte Baruzinho Baru/Baru NE SW Mina Interpit Corpo Sul Santa Cruz Buriti Hidrotermalito Buriti Norte Sucupira SW Corpo Sul / Santa Cruz Chapada deposits and near-mine exploration targets 9
Slide 10: Neves-Corvo
Neves-Corvo Focused on Current Operations • Q1/20 production of 9,075 t of copper, 17,948 t of zinc and 1,468 t of lead • operating costs were better than plan, however, copper cash costs of $2.24/lb were Copper, Zinc Production & Cash Cost Outlook impacted by production levels and by-product zinc p
Slide 11: Neves-Corvo – ZEP
Neves-Corvo – ZEP Underground & Surface Construction • excellent progress prior to temporary suspension; Surface construction recorded highest monthly progress rates • underground 88% progress with civil and mechanical works largely complete. Development of lower stopes advancing as planned with fir
Slide 12: Eagle
Eagle Consistent Mine & Mill Operating Performance • Q1/20 production of 3,575 t of nickel and 4,378 t of copper • nickel headgrade impacted by mine resequencing in Eagle East ; copper production Nickel, Copper Production & Cash Cost Outlook above plan (kt & $/lb Ni, net of by-product credits) • 202
Slide 13: Zinkgruvan
Zinkgruvan Strong Mine and Mill Throughput Performance • Q1/20 production of 18,999 t of zinc, 8,013 t of lead and 536 t of copper at cash cost of $0.51/lb of zinc Zinc Production & Cash Cost Outlook (kt & $/lb Zn, net of by-product credits) • excellent mine and mill throughput performance continued
Slide 14: Production and Cash Cost Guidance
Production and Cash Cost Guidance1 Production C1 Cash (contained metal in concentrate) Cost2 Copper (t) Candelaria (100%) 160,000 - 175,000 $1.353 Chapada 51,000 - 56,000 $0.854 Eagle 15,000 - 18,000 Neves-Corvo 35,000 - 40,000 $2.103 Zinkgruvan 3,000 - 4,000 Total 264,000 - 293,000 Zinc (t) Neves-C
Slide 15: Capital & Exploration Expenditure
Capital & Exploration Expenditure 30% Reduction in Capital Expenditure Guidance 36% Reduction in Exploration Expenditure Guidance • 2020 guidance lowered by $180M from $620M to $440M • 2020 exploration guidance lowered by $20M from $55M to $35M • ZEP 2020 capital expenditure guidance reduced by $100
Slide 16: Appendices
Appendices lundin mining 16
Slide 17: Responsible Mining
Responsible Mining We recognize the important role of the metals we produce and are committed to mining these metals responsibly We demonstrate this commitment through living our core values of Safety, Respect, Integrity and Excellence in all aspects of our decision-making Lundin Mining has been rep
Slide 18: Candelaria Complex – Mineral Resources and Mineral Reserves
Candelaria Complex – Mineral Resources and Mineral Reserves1 Ownership 80% Location Region III, Chile Mine life 20 years 2020 exploration budget $15M P&P Copper Mineral Reserves 3,604 kt contained (663,696 kt at 0.5%) M&I Copper Mineral Resources 6,495 kt contained (998,635 kt at 0.7%) Inferred Copp
Slide 19: Candelaria Copper Production Profile (kt)
Candelaria Copper Production Profile1 (kt) 190 190 192 194 184 185 175 175 171 175 167 156 160 152 151 146 146 135 136 114 96 84 69 45 10 2016A 2017A 2018A 2019A 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 December 2018 Technical Report De
Slide 20: Candelaria Reinvestments
Candelaria Reinvestments Mine Fleet Reinvestment • significantly increased production profile and extended mine life on exploration success. Mineral Reserve estimate now supports mine life to beyond 2040 • new equipment increases haulage efficiency. 38 new latest generation CAT 793F trucks which are
Slide 21: Chapada – Mineral Resources and Mineral Reserves
Chapada – Mineral Resources and Mineral Reserves1 Ownership 100% Location Goiás State, Brazil Mine life 30 years 2020 exploration budget $7M P&P Copper Mineral Reserves 1,757 kt contained (738,789 kt at 0.24%) M&I Copper Mineral Resources 2,590 kt contained (1,090,829 kt at 0.23%) Inferred Copper Mi
Slide 22: Chapada – General Overview
Chapada – General Overview Alto • located in northern Goiás State Horizonte • 270 km northwest of national capital of Brasilia and 320 km north of state capital of Goiânia • supported by road access with good connections to the local and national road network • average elevation of approximately 300
Slide 23: Chapada Processing Facilities Overview
Chapada Processing Facilities Overview Conventional Crush, Grind, Float Processing Plant • single-line plant to treat sulphide ores Plant Facilities • current capacity of 65,000 tpd or 24.0 Mtpa • produces a high-quality gold-rich copper Mine concentrate Power Facilities • Under LUN ownership1 in H2
Slide 24: Chapada Tailings Storage Facility (TSF)
Chapada Tailings Storage Facility (TSF) • TSF is located northwest of Chapada open pit • all dams raised by centerline methods Main • Main Dam and Dyke III comprise compacted earth Dam fill starter dams raised with cyclone tailings • Dyke II is a compacted earth fill dam for water retention • curren
Slide 25: Chapada Production Profile – Metal Production
Chapada Production Profile1,2 120 100 Metal Production 80 60 40 20 0 2019A 2020 2023 2026 2027 2030 2033 2036 2037 2040 2043 2044 2046 2047 2050 2021 2022 2024 2025 2028 2029 2031 2032 2034 2035 2038 2039 2041 2042 2045 2048 2049 Copper (kt) Gold (koz) 1. Production shown is based on the NI 43-101 T
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 108 kt contained (4,119 kt at 2.6%) M&I Nickel Mineral Resources 132 kt contained (4,022 kt at 3.3%) P&P Copper Mineral Reserves 91 kt contained (4,119 kt at 2.2%)
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 2020 exploration budget $2M P&P Zinc Mineral Reserves 2,214 kt contained (29,669 kt at 7.5%) M&I Zinc Mineral Resources 4,958 kt contained (71,444 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 2020 exploration budget $7M P&P Zinc Mineral Reserves 803 kt contained (10,816 kt at 7.4%) M&I Zinc Mineral Resources 1,633 kt contained (20,275 kt at 8.1%) Inferred Zinc Mineral Resour
Slide 29: www.lundinmining.com
www.lundinmining.com | TSX: LUN | Nasdaq Stockholm: LUMI
Slide 30: 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