Slide 1: Jefferies Copper & Base Metals Summit
Jefferies Copper & Base Metals Summit September 25, 2019 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 Eagle Zinkgruvan • competitive cost position Nickel-Copper-PGMs in U.S.A. Zinc-Lead-Copper in Sweden • low-risk mining jurisdictions,
Slide 4: Responsible Mining
Responsible Mining Safety Total Recordable Injury Frequency • overall safety performance better than target for sixth consecutive year per 200,000 person hours worked • first-quartile performance of Western world mines Social 3.5 • positive stakeholder engagement and increased social investment 3.1
Slide 5: H1 2019 Summary Results
H1 2019 Summary Results Production & Sales Summary Production Payable Sales 93,807t of copper 88,055t of copper 77,562t of zinc 65,355t of zinc 7,611t of nickel 5,626t of nickel 15,054t of lead 12,262t of lead $786M in Sales by Metal Diversified in Established Jurisdictions1,2 Lead Other 3% 2% Swede
Slide 6: Increasing Production Profile
Increasing Production Profile1 (kt) Copper Zinc Nickel 289 - 308 292 - 311 231 - 241 16 - 19 18 13 - 16 12 - 14 +50% +55% 224 - 245 165 - 180 147 - 157 152 200 2 3 3 2018A 2019 2020 2021 2018A 2019 2020 2021 2018A 2019 2020 2021 1. Production profile based on certain estimates and assumptions, inclu
Slide 7: Candelaria
Candelaria On Track to Achieve Annual Guidance • through H1/19 have produced 66,411t of copper at cash cost of $1.74/lb Copper Production & Cash Cost Outlook (100% basis; kt & $/lb Cu, net of by-product credits) • ore grades to increase in H2/19 as more ore sourced directly from the open pit and und
Slide 8: Candelaria Copper Production Profile
Candelaria Copper Production Profile1 (kt) 190 190 192 194 184 185 175 175 171 175 167 155 156 160 152 151 146 135 136 114 96 84 69 45 10 2016A 2017A 2018A 2019 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 Dec
Slide 9: Chapada
Chapada High-Quality, Long-Life, Expandable Operation • integration well underway • acquisition closed July 5, 2019 • $800M paid on closing financed $515M from cash on hand and $285M drawn on credit facility H2/19 Guidance • copper production of 27,000t to 30,000t at cash cost of $1.10/lb net of pre
Slide 10: Neves-Corvo
Neves-Corvo Solid Operational Performance • through H1/19 produced 18,483t of copper and 37,024t of zinc at cash cost of $1.46/lb Copper, Zinc Production & Cash Cost Outlook • higher copper grades planned for H2/19 (kt & $/lb Cu, net of by-product credits) 155-160 Zinc Expansion Project • undergroun
Slide 11: Neves-Corvo – ZEP
Neves-Corvo – ZEP Underground Construction • development of conveyor ramps completed during Q2/19 • work now focusing on completion of crusher station, ore silos and conveyor systems • concrete foundation work progressed well in the second quarter • first sublevel accesses established in lower Lomba
Slide 12: Neves-Corvo – ZEP
Neves-Corvo – ZEP Surface Construction work focusing on: • mechanical installation of materials handling system • tailings and water supply piping systems • SAG mill gear ring and motor installation • new paste thickener • flotation equipment in new and existing zinc plants Surface Construction Phot
Slide 13: Eagle
Eagle Operating to Plan, Q1/19 Sales Caught-Up • through H1/19 produced 7,611t of nickel and 7,629t of copper at cash cost of $2.30/lb nickel Nickel, Copper Production & Cash Cost Outlook (kt & $/lb Ni, net of by-product credits) • nickel production guidance range tightened to 12,000t – 14,000t 19-2
Slide 14: Zinkgruvan
Zinkgruvan Positioned to Deliver on Guidance • through H1/19 have produced 40,538t of zinc and 1,284t of copper at a cash cost of Zinc Production & Cash Cost Outlook $0.42/lb zinc (kt & $/lb Zn, net of by-product credits) • zinc ore head grade normalized in Q2/19 after elevated level in Q1/19 76-81
Slide 15: 2019 Capital & Exploration Expenditure Guidance
2019 Capital & Exploration Expenditure Guidance Capital Expenditures Candelaria (100% basis) • overall 2019 guidance reduced to $695M from $745M Capitalized Stripping1 130 • 2019 ZEP guidance reduced to $140M from $210M on deferral into 2020 Los Diques TSF 10 • introduced Chapada H2/19 sustaining ca
Slide 16: Lundin Mining
Lundin Mining High Quality Meaningful Scale Financial Strength Competitive Mines Growth Oriented • strong margins at all operations • materially increasing copper and zinc • Proven track record for rigorous production profile investment approach, focused on value • demonstrated operational excellenc
Slide 17: Appendices
Appendices lundin mint
Slide 18: Candelaria Mine Fleet Reinvestment
Candelaria Mine Fleet Reinvestment Significantly Increased Production Profile and Extended Mine Life on Exploration Success • 20-year LOM when the open pit began production in 1994; most open pit equipment dates back to when operation opened • Mineral Reserve estimate now supports mine life to 2040
Slide 19: Candelaria Mill Optimization Project
Candelaria Mill Optimization Project Low-Risk Investments to Increase Metal Production, Reduce Costs and Improve Safety • primary crusher motor upgrade – completed • ball mill re-powering; pebble circuit upgrade; cyclone and feed pump upgrades • flotation circuit upgrades • front-end desalination pl
Slide 20: Candelaria Underground Mine Expansions
Candelaria Underground Mine Expansions Significant Underground Exploration Success Under Lundin Mining Ownership • Total estimated Candelaria underground Mineral Reserves1 now 148.2Mt at 0.85% copper • Candelaria South Sector remains significantly under-drilled Increasing Underground Production Rate
Slide 21: Candelaria Complex – Mineral Resources and Mineral Reserves
Candelaria Complex – Mineral Resources and Mineral Reserves1 Ownership 80% Location Region III, Chile Mine life 22 years 2019 exploration budget ~$14M 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 Cop
Slide 22: Chapada – Mineral Resources and Mineral Reserves
Chapada – Mineral Resources and Mineral Reserves1 Ownership 100% Location Goiás State, Brazil Mine life 27 years 2019 exploration budget ~$4M P&P Copper Mineral Reserves 1,757 kt contained (738,789 kt at 0.2%) M&I Copper Mineral Resources 2,590 kt contained (1,090,829 kt at 0.23%) Inferred Copper Mi
Slide 23: Eagle Mine – Mineral Resources and Mineral Reserves
Eagle Mine – Mineral Resources and Mineral Reserves1 Ownership 100% Location Michigan, USA Mine life 5 years 2019 exploration budget ~$15M 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 k
Slide 24: Neves-Corvo – Mineral Resources and Mineral Reserves
Neves-Corvo – Mineral Resources and Mineral Reserves1 Ownership 100% Location Alentejo region, Portugal Mine life +10 years 2019 exploration budget ~$7M 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 Mi
Slide 25: Zinkgruvan – Mineral Resources and Mineral Reserves
Zinkgruvan – Mineral Resources and Mineral Reserves1 Ownership 100% Location Askersund, Sweden Mine life +10 years 2019 exploration budget ~$23M 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 Reso
Slide 26: 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 27: www.lundinmining.com
www.lundinmining.com | TSX: LUN | Nasdaq Stockholm: LUMI