Lundin Mining Corporation · TSX:LUN
Lundin Mining — Q4 2019 Earnings Presentation
18 slides from Lundin Mining's earnings presentation, Feb 21, 2020
Slide 1: Fourth Quarter and 2019 Year-End Results
Fourth Quarter and 2019 Year-End Results February 21, 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 Certain of the statements made and information contained herein is “forward-looking information” within the meaning of applicable Canadian securities laws. All statements other than statements of hi
Slide 3: Participants
Participants Marie Inkster President & CEO Jinhee Magie SVP & CFO Peter Richardson SVP & COO Peter Richardson, SVP & COO (center) at Neves-Corvo Zinc Expansion Project in February 2020 with Alexandre Felicio, Head of the Operation’s Advisors Team (left) and Ricardo Afonso, Projects Director (right)
Slide 4: 2019 Highlights
2019 Highlights High Quality Meaningful Progress on Growth Remain Focused on Competitive Mines and Reinvestment Initiatives Value Creation • Total Recordable Injury Frequency (TRIF) • Candelaria mine fleet reinvestment • successful acquisition and integration of rate improved YOY complete and first
Slide 5: 2019 Summary Results
2019 Summary Results Production Payable Sales 235,498 t of copper 225,627 t of copper 151,515 t of zinc 126,606 t of zinc 142,000 oz of gold 138,000 oz of gold 13,494 t of nickel 10,682 t of nickel 33,177 t of lead 28,466 t of lead $1,893M in Sales by Metal Diversified in Established Jurisdictions1
Slide 6: Financial Highlights
Financial Highlights Realized Metal Prices1 Q4/19 2019 2018 Δ Copper $2.84/lb $2.71/lb $2.79/lb (3%) Gold $1,508/oz $1,466/oz $1,229/oz 19% Nickel $6.35/lb $7.19/lb $5.64/lb 27% Zinc $1.02/lb $1.12/lb $1.25/lb (10%) Summary Financial Results2 Q4/19 2019 2018 Δ Revenue $568M $1,893M $1,726M 10% Gross
Slide 7: Candelaria
Candelaria Increasing Production Profile • copper production increased 9% year-on-year in 2019 to 146,330 t Copper, Gold Production & Cash Cost1 Outlook • 2019 cash costs improved by 8% to $1.54/lb of copper, better than guidance (100% basis; kt Cu, koz Au & $/lb Cu, net of by-product credits) • pos
Slide 8: Chapada
Chapada Strong First Quarters Under Lundin Mining Ownership • copper production exceeded and gold production achieved 2019 guidance Copper, Gold Production & Cash Cost1 Outlook (100% basis; kt Cu, koz Au & $/lb Cu, net of by-product credits) • cash costs were better than guidance on lower operating
Slide 9: Neves-Corvo
Neves-Corvo Increasing Zinc Production Profile • achieved 2019 copper and zinc production guidance at improved $1.59/lb copper cash cost guidance Copper, Zinc Production & Cash Cost Outlook • 2020 zinc production is forecast to increase 37% over 2019 production as the ZEP is (kt & $/lb Cu, net of by
Slide 10: Neves-Corvo – ZEP: Underground Construction Progress
Neves-Corvo – ZEP Underground Construction Progress • development of lower stopes well underway with first two sublevel accesses continuing • installation of 3.5 km of underground conveyor systems well advanced • underground jaw crusher installation nearing completion • first phase of the hoisting s
Slide 11: Neves-Corvo – ZEP: Surface Construction Progress
Neves-Corvo – ZEP Surface Construction Progress • mechanical, electrical and instrumentation installation of materials handling system • new zinc concentrate filtration building • SAG mill motor installation • backfill cyclone station piping installation • flotation and SAG mill building piping inst
Slide 12: Eagle
Eagle Consistent Operating Performance • achieved both nickel and copper production guidance for the year • 2019 cash costs were modestly higher than guidance primarily on lower sales volumes Nickel, Copper Production & Cash Cost Outlook (kt & $/lb Ni, net of by-product credits) • 2020 nickel produc
Slide 13: Zinkgruvan
Zinkgruvan Improved Mine & Mill Performance • 2019 production of zinc and copper achieved guidance for both metals at cash costs of $0.39/lb zinc in line with guidance Zinc Production & Cash Cost Outlook (kt & $/lb Zn, net of by-product credits) • zinc, lead and copper production were greater year-o
Slide 14: Capital & Exploration Expenditure
Capital & Exploration Expenditure Capital Expenditures1 Aggressive 2020 In and Near-Mine Exploration • 2019 annual capex of $665M was modestly below most • $55M to be invested in 2020 in exploration programs recent guidance on slightly less spending at European operations • over 192,000 m of planned
Slide 15: Increasing Production Profile
Increasing Production Profile1 (kt) Copper Zinc Nickel 294 - 318 227 - 237 272 - 296 15 - 18 15 - 18 18 +30% 13 172 - 187 +50% including 180-200 koz 235 gold in 2020-212 152 152 200 2018A 2019A 2020 2021 2018A 2019A 2020 2021 2018A 2019A 2020 2021 1. Production profile based on certain estimates and
Slide 16: 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 17: www.lundinmining.com
www.lundinmining.com | TSX: LUN | Nasdaq Stockholm: LUMI
Slide 18: 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