Slide 1: 2013 Results
TSX: LUN OMX: LUMI 2013 Results February 21, 2014
Slide 2: Cautionary Statements
Cautionary Statements Caution Regarding Forward Looking Information This presentation contains forward-looking information, including, but not limited to, guidance on estimated annual production and cash costs. This forward-looking information is not based on historical facts, but rather on current
Slide 3: Presenter and Questions
Presenter PAUL CONIBEAR PRESIDENT & CEO Questions MARIE INKSTER SR. VP & CFO PAUL MCRAE SR. VP PROJECTS STEVE GATLEY VP TECHNICAL SERVICES 3
Slide 4: 2013 Operational Highlights - A Strong Performance
2013 Operational Highlights - A Strong Performance Copper & Nickel Above High End of Guidance, While Zinc & Lead In-Line: Copper: Higher throughput at Neves lead to better than expected production Actual Cu production of 117kt (vs. guidance range of 109kt – 115kt) Zinc: Despite Zinkgruvan issues in
Slide 5: Full Year 2013 & Q4/13 Financial Highlights
Full Year 2013 & Q4/13 Financial Highlights Revenues: 2013: $728m; Q4/13: $187m Net Income: 2013: $137m ($0.23 p/s); Q4/13: $42m ($0.07 p/s) Operating CF: 2013: $154m ($0.26 p/s); Q4/13: $54m ($0.09 p/s) Cash Returns from Tenke : $142m for 2013 ($31m for Q4/13) exceeding guidance provided at the beg
Slide 6: Normalized Earnings
Normalized Earnings Fourth quarter Full Year $ Millions 2013 2012 2013 2012 Reported Net Earnings 42.1 (17.1) 136.7 123.2 Foreign exchange 6.0 3.5 13.8 5.1 Mark to market on securities 2.9 0.8 9.4 2.3 Insurance proceeds - (7.9) (15.1) (7.9) Inventory write-down - 9.1 - 9.1 Tax (on above items) 2.0 (
Slide 7: Change in Production: 2013 vs. 2012
Change in Production: 2013 vs. 2012 Tonnes Tonnes 3,065 2,020 38,464 3,982 2,558 67,000 66,246 39,000 66,000 2,659 38,000 65,000 63,878 Copper 37,000 Lead 1,369 64,000 36,000 34,370 63,000 167 35,000 62,000 Excluding Tenke 50,346 t 34,000 61,000 attributable share 60,000 33,000 59,000 32,000 Prior Y
Slide 8: Operating Earnings – 2013 vs. 2012
Operating Earnings – 2013 vs. 2012 8
Slide 9: Cash Costs – 2013 vs. 2012
Cash Costs – 2013 vs. 2012 1 By-product is after related TC/RC. 2. 2012 net costs were measured over the re-start and ramp-up of operations and were not representative of steady state operating conditions. 9
Slide 10: 2013 Results & 2014 Guidance
2013 Results & 2014 Guidance 2013 Results 2014 Guidance Tonnes C1 Cost Tonnes C1 Cost a Copper Neves-Corvo 56,544 $1.90 50,000 – 55,000 $1.90 Zinkgruvan 3,460 3,000 – 4,000 Aguablanca 6,242 5,000 – 6,000 Eagle - 2,000 – 3,000 Wholly-owned 66,246 60,000 – 68,000 Tenke (@ 24%)b 50,346 $1.21 48,400 $1.
Slide 11: Operations and Outlook
Operations and Outlook 11
Slide 12: Neves-Corvo – 2013 Results
Neves-Corvo – 2013 Results • Production of 56.5kt copper and an annual record of 53.4kt zinc • C1 costs of $1.90/lb Cu in-line with latest guidance • Average copper grades of 2.6% with recovery rate of 84.5% • Copper production exceeded guidance for the year due to higher than expected throughput, o
Slide 13: Neves-Corvo – Outlook
Neves-Corvo – Outlook • Copper production and costs consistent with 2013 • Zinc ore mining rates will continue to increase from bulk stopes in upper Lombador resulting in an increased zinc production profile • Initiatives progressing for exploiting the deeper Lombador zinc and copper ores • Potentia
Slide 14: Zinkgruvan – 2013 Results
Zinkgruvan – 2013 Results • Production of 71.4kt zinc, 32.9kt lead and 3.5kt copper; in-line with guidance • C1 costs of $0.32/lb Zn was mostly in-line with latest guidance of $0.30/lb Zn • Paste fill and local ground control issues early in the year impacted annual production • Significant improvem
Slide 15: Zinkgruvan – Outlook
Zinkgruvan – Outlook • Production and costs generally in line with 2013 • Overall production profile expected to remain steady going forward • Progressive investments continue to be made in the paste backfilling system to improve system availability and flexibility 15
Slide 16: Aguablanca – 2013 Results and Outlook
Aguablanca – 2013 Results and Outlook • Production of 7.6kt nickel and 6.2kt copper; above revised guidance • C1 costs of $3.78/lb Ni was better than guidance of $4.50/lb Ni • Consistent production throughout the year resulted in throughput, nickel and copper grades & recoveries all being higher tha
Slide 17: Tenke – 2013 Results
Tenke – 2013 Results • 2013 production (100% basis) of 210kt Cu at $1.21/lb Cu; above name-plate capacity • Achieved record mining, milling and copper production rates during the year • Cash distributions of $142 million for the year • Power availability improved during Q4 and Tenke continues to wor
Slide 18: Tenke Outlook
Tenke Outlook Significant Cash Returns Expected to Continue in 2014 • Further expansion investment timing under review by operator Freeport • Cash distributions of $130- $150 million expected in 2014 • Addition of second sulphuric acid plant expected to be complete in 2016 18
Slide 19: Eagle – Status Update
Eagle – Status Update • Overall construction continues on-time and on-budget • Construction approximately 70% completed • Mine surface facilities to be commissioned in Q2/2014 • Mill commissioning and first concentrate sales expected in Q4/2014 19
Slide 20: Eagle – Construction Progress Going Well
Eagle – Construction Progress Going Well Mill site facilities Concentrator Progress Mine Portal Concentrator Progress 20
Slide 21: Lundin Mining - Summary
Lundin Mining - Summary Portfolio of high quality, long-life mines that are performing well Optimization opportunities and exploration potential at all existing assets No high risk major capital projects Proven disciplined growth approach Geographic and base metal diversification Neves-Corvo Zinkgru
Slide 22: Questions & Answers
TSX: LUN OMX: LUMI Questions & Answers