Lundin Mining Corporation · TSX:LUN
Lundin Mining — J.P. Morgan European Materials Conference 2021
31 slides from Lundin Mining's conference presentation, Jun 7, 2021
Slide 1: J.P. Morgan European Materials Conference
J.P. Morgan European Materials Conference June 7 th , 2021 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: Lundin Mining: 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 • sustainability strategy provides a framework for identifying focus areas Recent Responsible Mining in Action that will reduce risks, increase opportunities, and add long-term value • formalized Human Rights Standard to complement and enhance prior commitments • we have reported
Slide 5: Q1/21 Summary Results
Q1/21 Summary Results Production Payable Sales 57,354 t of copper 53,780 t of copper 33,365 t of zinc 27,308 t of zinc 34,000 oz of gold 33,000 oz of gold 5,354 t of nickel 4,118 t of nickel 5,782 t of lead 5,950 t of lead $681M in Sales Other Sweden 6% 6% Gold 6% Portugal Zinc 12% 8% Nickel Brazil
Slide 6: Increasing Production Profile
Increasing Production Profile1 Copper Zinc Gold2 300 kt 225 kt ~65% 175 koz 275 kt 200 kt ~30% 150 koz 250 kt 175 kt ~110,000 oz of unencumbered production in 2021 225 kt 150 kt 125 koz 200 kt 125 kt 175 kt 100 kt 100 koz 2020A 2021 2022 2023 2020A 2021 2022 2023 2020A 2021 2022 2023 1. Production p
Slide 7: Candelaria
Candelaria Ore Grades to Drive 2021 Production Increase • Q1/21 production of 34,203 t of copper and 21,000 oz of gold at a cash cost of $1.65/lb copper Copper, Gold Production & Cash Costs1 Outlook (100% basis; kt Cu, koz Au & $/lb Cu, net of by-product credits) • operation performed well in Q1/21
Slide 8: Chapada
Chapada Strong Mine & Mill Performance • Q1/21 production of 9,841 t of copper and 13,000 oz of gold at a cash cost of $1.33/lb copper Copper, Gold Production & Cash Costs1 Outlook (100% basis; kt Cu, koz Au & $/lb Cu, net of by-product credits) • operation performed well in Q1/21 with tonnes mined
Slide 9: Chapada Near-Mine Exploration Drilling
Chapada Near-Mine Exploration Drilling 6 km NM_303: 24.8 m @ 0.65% Cu; 0.21 g/t Au (60 m) Including: 8.0 m @ 0.74% Cu; 0.30 g/t Au (73 m) Suruca 3 km Baru NE PLANT SU_1085: 27.4 m @ 0.25% Cu; 0.19 g/t Au (35 m) Including: 9.6 m @ 0.32% Cu; 0.24 g/t Au (38 m) BRT_93: 17.7 m @ 0.26% Cu; 0.20 g/t Au (6
Slide 10: Chapada District Exploration
Chapada District Exploration Mineral Rights Formiga 23 New Exploration Licenses 15 km north of Chapada Plant 29 Exisitng Exploration Licenses Mineralized 4 Zones FOR_61: 27.3 m @ 1.74% Cu; 0.21 g/t Au; 5.15 g/t Ag (116 m) Including: 11.7 m @ 2.65% Cu; 0.38 g/t Au; 6.97 g/t Ag (116 m) Including: 2.9
Slide 11: Neves-Corvo
Neves-Corvo Zinc Expansion Project (ZEP) Advancing On Track • Q1/21 production of 7,441 t of copper, 14,710 t of zinc and 1,073 t of lead at a cash cost of $2.61/lb copper Copper, Zinc Production & Cash Costs Outlook1 (kt & $/lb Cu, net of by-product credits) • zinc production was impacted early in
Slide 12: Neves-Corvo – ZEP
Neves-Corvo – ZEP Underground Construction Progress Upcoming Works • restarted materials handling construction and shaft • commence reticulation system construction and service water piping installation upgrade engineering • establish shaft shutdown pre-fabrication, pre-assembly, and structural and
Slide 13: Neves-Corvo – ZEP
Neves-Corvo – ZEP Surface Construction Progress Upcoming Works • radial stacker commissioned • commence construction of ZEP paste fill expansion • SAG mill commissioned with ore and first concentrate in mid-January • finish commissioning of 3rd tailings paste thickener • SAG mill circuit improvement
Slide 14: Zinkgruvan
Zinkgruvan Record Zinc Ore Milled • Q1/21 production of 18,655 t of zinc, 478 t of copper and 4,709 t of lead at a cash cost of $0.76/lb zinc Zinc Production & Cash Costs Outlook1 (kt & $/lb Zn, net of by-product credits) • mine and mill continue to perform well in Q1/21. A new quarterly record set
Slide 15: Eagle
Eagle Impressive Cash Costs & Cash Generation • Q1/21 production of 5,354 t of nickel and 5,391 t of copper at a first-quartile cash cost Nickel, Copper Production & Cash Costs Outlook2 of negative $1.62/lb nickel (kt & $/lb Ni, net of by-product credits) • another excellent quarter operationally. B
Slide 16: 2021 Guidance Summary
2021 Guidance Summary1 Production C1 Cash (contained metal in conc.) Cost2 Capital Expenditures ($M) Copper (t) Candelaria (100%) 172,000 - 182,000 $1.353 Sustaining Chapada 48,000 - 53,000 $1.103 Candelaria (100% basis) 345 Eagle 17,000 - 20,000 Chapada 65 Neves-Corvo 35,000 - 40,000 $2.203 Eagle 2
Slide 17: Lundin Mining
Lundin Mining High Quality Meaningful Scale Financial Strength Competitive Mines Growth Oriented • demonstrated operational excellence and • increasing copper, zinc and gold production • proven track record for rigorous investment culture of continuous improvement profiles approach, focused on value
Slide 18: www.lundinmining.com
www.lundinmining.com | TSX: LUN | Nasdaq Stockholm: LUMI
Slide 19: Appendices
Appendices lundin mining
Slide 20: Responsible Mining: Tailings Management
Responsible Mining Tailings Management • employ a comprehensive and integrated approach to tailings management. This provides confidence that potential environmental and social impacts can be reliably identified and minimized • our Responsible Mining Management System includes a specific Tailings Ma
Slide 21: Responsible Mining: Climate Change, Energy and GHG Emissions
Responsible Mining Climate Change, Energy and CHG Emissions • recognize the need for effective approaches to managing climate-related responsibilities, especially in consideration of the remote locations in which we operate, the energy-intensive nature of our industry, and the sometimes-limited avai
Slide 22: Responsible Mining: Water Stewardship
Responsible Mining Water Stewardship • continue to make water stewardship gains, achieving measurable reductions in fresh water use and increases in water re-use in 2019. Total fresh surface water withdrawal decreased 7% in 2019 compared to 2018 • committed to improvements in water assessment and ma
Slide 23: Candelaria Complex – Mineral Resources and Mineral Reserves
Candelaria Complex – Mineral Resources and Mineral Reserves1 Ownership 80% Location Region III, Chile Mine life +20 years 2021 exploration budget $14M P&P Copper Mineral Reserves 3,656 kt contained (684,445 kt at 0.57%) M&I Copper Mineral Resources 7,574 kt contained (1,179,253 kt at 0.64%) Inferred
Slide 24: Candelaria Copper Production Profile
Candelaria Copper Production Profile1 (kt) 190 190 192 194 184 182 175 171 175 167 156 160 152 151 146 146 135 136 127 114 96 84 69 45 10 4 4 4 2016A 2017A 2018A 2019A 2020A 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 December 2018 Technical Re
Slide 25: Chapada – Mineral Resources and Mineral Reserves
Chapada – Mineral Resources and Mineral Reserves1 Ownership 100% Location Goiás State, Brazil Mine life +30 years 2021 exploration budget $8M P&P Copper Mineral Reserves 1,759 kt contained (759,652 kt at 0.23%) M&I Copper Mineral Resources 2,639 kt contained (1,132,198 kt at 0.23%) Inferred Copper M
Slide 26: Chapada Production Profile
Chapada Production Profile1 120 100 Metal Production 80 60 40 20 0 2 3 3 3 2019A 2020A 2021 2026 2027 2028 2033 2034 2035 2040 2041 2042 2047 2048 2049 2022 2023 2024 2025 2029 2030 2031 2032 2036 2037 2038 2039 2043 2044 2045 2046 2050 Copper (kt) Gold (koz) 1. Production shown is based on the NI 4
Slide 27: 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 100 kt contained (3,909 kt at 2.6%) M&I Nickel Mineral Resources 113 kt contained (3,807 kt at 3.0%) P&P Copper Mineral Reserves 84 kt contained (3,909 kt at 2.1%)
Slide 28: Neves-Corvo – Mineral Resources and Mineral Reserves
Neves-Corvo – Mineral Resources and Mineral Reserves1 Ownership 100% Location Alentejo region, Portugal Mine life +10 years 2021 exploration budget $4M P&P Zinc Mineral Reserves 2,200 kt contained (30,114 kt at 7.3%) M&I Zinc Mineral Resources 4,938 kt contained (71,253 kt at 6.9%) Inferred Zinc Min
Slide 29: Zinkgruvan – Mineral Resources and Mineral Reserves
Zinkgruvan – Mineral Resources and Mineral Reserves1 Ownership 100% Location Askersund, Sweden Mine life +10 years 2021 exploration budget $6M P&P Zinc Mineral Reserves 690 kt contained (8,786 kt at 7.9%) M&I Zinc Mineral Resources 1,955 kt contained (22,596 kt at 8.6%) Inferred Zinc Mineral Resourc
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
Slide 31: www.lundinmining.com
www.lundinmining.com | TSX: LUN | Nasdaq Stockholm: LUMI
Lundin Mining — J.P. Morgan European Materials Conference 2021 on 6ix