Slide 1: Second Quarter 2018 Results
TSX: LUN Nasdaq Stockholm: LUMI Second Quarter 2018 Results July 26, 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: Participants
Participants President & Paul Conibear Chief Executive Officer Senior Vice President & Marie Inkster Chief Financial Officer Vice President Peter Richardson Chief Operating Officer 3
Slide 4: Q2 2018 Highlights
Q2 2018 Highlights Operational Excellent Project Disciplined Capital Performance On Track Execution Management – all operations well – Los Diques tailings facility – actively pursuing strategic positioned to achieve fully operational growth opportunities guidance – ZEP on track to commence – remain
Slide 5: Q2 2018 Summary Results
Q2 2018 Summary Results First New Caterpillar 793F Haul Truck Delivered to Candelaria Attributable Production – 44,219 t of copper – 37,075 t of zinc – 4,234 t of nickel $468M in Sales – 66% copper – 16% zinc – 8% nickel – 7% gold and silver 5
Slide 6: Financial Highlights
Financial Highlights Realized Metal Prices1 Q2 2018 Q2 2017 Δ Copper $3.03/lb $2.59/lb 17% Nickel $7.66/lb $3.78/lb 103% Zinc $1.31/lb $1.20/lb 9% Summarized Financial Results2 Q2 2018 Q2 2017 Δ Revenue $468M $455M 3% Gross Profit $155M $143M 8% Attributable Net Earnings from Continuing Operations $
Slide 7: Candelaria
Candelaria 7 Candelaria Mill – Copper / Gold / Silver – Atacama Region, Chile
Slide 8: Candelaria
Candelaria On Track to Achieve Full-Year Guidance – copper production of 34.4 kt (100% basis) at $1.71/lb cash cost – mill throughput modestly exceeded plan for the quarter, offset by Copper Production & Cash Cost Outlook copper head grade below expectations (100% basis; kt & $/lb Cu, net of by-prod
Slide 9: Los Diques Tailings Storage Facility
Los Diques Tailings Storage Facility Los Diques transitioned 9 ahead of schedule to operations team – continue to advance future phases to take advantage of cost synergies
Slide 10: Neves-Corvo
Neves-Corvo 10 Copper / Zinc / Lead – Portugal
Slide 11: Neves-Corvo
Neves-Corvo Continued Excellent Mine and Mill Performance – production of 11.9 kt copper, 20.2 kt zinc and 1.9 kt lead – $0.96/lb copper cash cost Copper, Zinc Production & Cash Cost Outlook – higher head grades, improved mine productivity and mill (kt & $/lb Cu, net of by-product credits) throughpu
Slide 12: Zinc Expansion Project (ZEP)
Zinc Expansion Project (ZEP) Comprehensive Project Review Complete – no change to schedule; ramp up production by end of 2019 – total capital costs expected to be €270M, approximately 5% higher than original estimate, accounting for earlier delays – 2018 capital guidance reduced to $130M (from $190M
Slide 13: Eagle
Eagle Humboldt Mill – Nickel / Copper / PGMs – Michigan, U.S.A. 13
Slide 14: Eagle
Eagle Performance on Plan – production of 4.2 kt nickel and 4.1 kt copper – $1.09/lb nickel cash cost Nickel, Copper Production & Cash Cost Outlook – consistent with plan and on track to meet full year guidance (kt & $/lb Ni, net of by-product credits) Excellent Progress on Eagle East 14-17 15-18 13
Slide 15: Eagle East
Eagle East Existing Access Ramp Eagle Mine Current Advance Dual Declines Eagle East Ore Body 15
Slide 16: Zinkgruvan
Zinkgruvan 16 Zinc / Lead / Copper – Sweden
Slide 17: Zinkgruvan
Zinkgruvan On Track to Achieve Full Year Guidance – production of 16.8 kt zinc, and 3.9 kt lead – $0.41/lb zinc cash cost Zinc Production & Cash Cost Outlook (kt & $/lb Zn, net of by-product credits) – strong throughput offset by lower than planned head grades as a result of mine sequencing and grea
Slide 18: 2018 Capital Expenditure & Exploration Guidance
2018 Capital Expenditure & Exploration Guidance Capital Expenditures1 (US$M) Total Capitalized Stripping2 215 2018 Capital Guidance Reduced by $55M Los Diques Facility 60 – mainly on timing of expenditures New Mine Fleet Investment 120 Mill Optimization Investment 30 Candelaria Candelaria UG South D
Slide 19: Three-Year Production Outlook
Three-Year Production Outlook1 (kt attributable) Copper Zinc Nickel Forecast increase primarily on improved Forecast ~60% increase primarily on Eagle East planned on-line in 2020 Candelaria mine plan Neves-Corvo Zinc Expansion Project 244 17 201 16 234 183 187 13 174 14 13 169 176 162 10 154 166 148
Slide 20: Offer to Acquire Nevsun Resources Ltd.
Offer to Acquire Nevsun Resources Ltd. 1 Terms of the Offer C$4.75 per share in cash – values Nevsun at a fully-diluted equity value of approximately C$1.5 billion Open until 5:00 p.m. (Toronto time) on November 9, 2018 Customary Conditions – Minimum Tender Conditions – At least 66 2/3% of Nevsun’s
Slide 21: Offer to Acquire Nevsun Resources Ltd.
Offer to Acquire Nevsun Resources Ltd. 1 Reasons to Accept Offer Compelling Premium – 82% to the closing price of February 6, 2018, date of first offer to Nevsun related to Lundin Mining’s interest – 42% premium to the 20-day VWAP on April 30, 2018, the date of Lundin Mining’s previously announced p
Slide 22: Offer to Acquire Nevsun Resources Ltd.
Offer to Acquire Nevsun Resources Ltd. 1 Risks of Not Accepting Offer Potential for Downward Impact to Nevsun Share Price – likelihood of negative impact on Nevsun share price if Offer not accepted Risk of Substantial Nevsun Shareholder Dilution – Nevsun needs significant financing in near term in t
Slide 23: Offer to Acquire Nevsun Resources Ltd.
Offer to Acquire Nevsun Resources Ltd. 1 How to Accept the Offer For assistance in depositing Nevsun Shares to the Offer, Nevsun shareholders should contact the Information Agent and Depositary: Kingsdale Advisors North American Toll Free: 1-866-851-3214 Outside North America: 1-416-867-2272 Email:
Slide 24: 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 25: 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 26: Cautionary Statement Respecting the Offer
Cautionary Statement Respecting the Offer THE TAKE-OVER BID CIRCULAR CONTAINS IMPORTANT INFORMATION ABOUT THE OFFER AND SHOULD BE READ IN ITS ENTIRETY BY NEVSUN’S SHAREHOLDERS. NEVSUN’S SHAREHOLDERS MAY OBTAIN, AT NO CHARGE, A COPY OF THE TAKE-OVER BID CIRCULAR AND VARIOUS ASSOCIATED DOCUMENTS UNDER
Slide 27: TSX: LUN Nasdaq Stockholm: LUMI
TSX: LUN Nasdaq Stockholm: LUMI 27