Slide 1: Fourth Quarter and 2015 Year-End Results
TSX: LUN OMX: LUMI Fourth Quarter and 2015 Year-End Results February 19, 2016
Slide 2: Cautionary Statements
Cautionary Statements Caution Regarding Forward-Looking Information and Non-GAAP Performance Measures 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 histor
Slide 3: Participants
Participants Presenters and Questions/Answers President & Paul Conibear Chief Executive Officer Senior Vice President & Marie Inkster Chief Financial Officer Peter Quinn Chief Operating Officer 3
Slide 4: 2015 Full Year Operating Highlights
2015 Full Year Operating Highlights Strong operational and financial results despite a weak metal price environment • Higher throughput at Candelaria resulted in production and Copper cash costs outperforming guidance (Cu) • Copper production at Neves-Corvo benefitted from higher grades and recoveri
Slide 5: 2015 Revenue Breakdown by Mine and Metal
2015 Revenue Breakdown by Mine and Metal • 70% of sales were from Candelaria and Eagle operations • 66% of sales were derived from copper Sales Breakdown by Mine Sales Breakdown by Metal Aguablanca Other Lead 4% 4% Zinkgruvan Gold 3% 9% 6% Zinc 9% Neves-Corvo 17% Candelaria 53% Nickel Copper 12% 66%
Slide 6: Competitive Cash Costs in 2015
Competitive Cash Costs in 2015 Copper C1 Cash Cost Curve $3.5 $3.0 Candelaria $2.5 $1.25/lb $2.0 $1.5 $/lb $1.0 $0.5 Neves-Corvo Tenke $1.63/lb $0.0 $1.21/lb ($0.5) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Nickel C1 Cash Cost Curve Zinc C1 Cash Cost Curve $15.0 $2.50 $2.00 $10.0 Eagle $2.02/lb $1
Slide 7: Financial Highlights
Financial Highlights 2015 2014 %Δ Realized Copper (US$/lb)1 $2.26 $2.86 -21% Realized Nickel (US$/lb)1 $4.79 $7.67 -38% Realized Zinc (US$/lb)1 $0.84 $0.99 -15% Revenue ($US M) $1,702M $951M 79% Operating Earnings ($US M) $712M $304M 134% Net (Loss)/Income ($US M) ($294M) $113M nmf2 (attributable) (
Slide 8: Normalized Earnings Reconciliation
Normalized Earnings Reconciliation $ Millions 2015 2014 Net (loss)/earnings attributable to shareholders ($294.1) $112.6 Foreign exchange ($18.5) ($20.3) Mark to market on securities (includes options) $3.3 $1.4 Realized loss on sale of securities - $4.9 Insurance proceeds - ($3.7) Attributable impa
Slide 9: Operating Earnings More Than Doubled in 2015
Operating Earnings More Than Doubled in 2015 • Operating earnings improved significantly when compared to 2014 due to contributions from Candelaria and Eagle, as well as foreign exchange (€ and SEK) • Partially offsetting results were lower realized metal prices and price adjustments from European o
Slide 10: Balance Sheet Remains Strong
Balance Sheet Remains Strong • Cash position has improved by $382M US$ (Millions) December 31, 2015 from $175M (2014) to $557M (2015) Cash and Cash Equivalents $557 • Net debt YTD – as of Feb. 18, 2016 was Net Debt1 $441 ~$458M Revolving Credit Facility $350 (Undrawn) Cash and Cash Equivalents $600
Slide 11: 2016 Production and Cash Cost Guidance
2016 Production and Cash Cost Guidance Metal and Mines Production (Tonnes)1 C1 Cash Costs2 Candelaria (80%) 118,000 – 123,000 $1.55/lb Eagle 20,000 – 23,000 Neves-Corvo 50,000 – 55,000 $1.65/lb Copper Zinkgruvan 3,500 – 4,000 Tenke (@24%)3 54,000 $1.32/lb Total attributable 245,500 – 259,000 Eagle 2
Slide 12: 2016 Capital Expenditure and Exploration Guidance
2016 Capital Expenditure and Exploration Guidance Capital Expenditures1 ($ millions) 2016 Total Capitalized Stripping2 35 Los Diques Tailings Capex3 70 Other Sustaining Capex 15 Total Candelaria (100% Basis) 120 Total Eagle 10 Total Neves-Corvo 55 Total Zinkgruvan 35 Total Capital Costs $ 220 • Capi
Slide 13: Operational Overview and Outlook
Operational Overview and Outlook Eagle (100%) Neves-Corvo (100%) Candelaria (80%) Zinkgruvan (100%) Tenke Fungurume (24%) 13
Slide 14: Candelaria (Cu/Au/Ag), Chile
Candelaria (Cu/Au/Ag), Chile Atacama Province, Region III, approximately 20 km south of Copiapó 14
Slide 15: Candelaria 2015 Results and Outlook
Candelaria 2015 Results and Outlook • Copper production of 145 kt (80%) exceeded Location Chile expectations due largely to higher throughput Ownership 80% 2016 Production • Copper cash costs of $1.25/lb were better than Guidance (80%) 118,000-123,000 t Cu guidance 2016 Cost Guidance $1.55/lb Cu › D
Slide 16: Eagle Mine (Ni/Cu), Michigan, U.S.A.
Eagle Mine (Ni/Cu), Michigan, U.S.A. 50 km northwest of Marquette in the Upper Peninsula of Michigan 16
Slide 17: Eagle 2015 Results and Outlook
Eagle 2015 Results and Outlook • Ni (27 kt) & Cu (24 kt) production targets Location Michigan, USA exceeded due to mill outperformance Ownership 100% • Nickel cash costs of $2.02/lb in first quartile 2016 21,000–24,000 t Ni Production Guidance 20,000–23,000 t Cu • Outlook consistent with original pl
Slide 18: Neves-Corvo (Cu/Zn), Portugal
Neves-Corvo (Cu/Zn), Portugal Situated 220 km southeast of Lisbon 18
Slide 19: Neves-Corvo 2015 Results and Outlook
Neves-Corvo 2015 Results and Outlook • Copper (56 kt) and zinc (62 kt) production Location Portugal targets achieved Ownership 100% › Higher copper grades and recoveries 2016 Production 50,000–55,000 t Cu Guidance 65,000–70,000 t Zn › Zinc plant performance improved 2016 Cost Guidance $1.65/lb Cu •
Slide 20: Zinkgruvan (Zn/Pb/Cu), Sweden
Zinkgruvan (Zn/Pb/Cu), Sweden Situated 200 km southwest of Stockholm 20
Slide 21: Zinkgruvan 2015 Results and Outlook
Zinkgruvan 2015 Results and Outlook • Zinc production of 83 kt a new record Location Sweden Ownership 100% › Mine ore production and plant throughput at record highs 2016 Production 80,000–85,000 t Zn Guidance 3,500-4,000 t Cu • Zinc cash costs of $0.37/lb below 2016 Cost Guidance $0.45/lb Zn guidan
Slide 22: Tenke Fungurume (Cu/Co), DRC
Tenke Fungurume (Cu/Co), DRC Situated 175 km northwest of Lubumbashi 22
Slide 23: Tenke 2015 Results and Outlook
Tenke 2015 Results and Outlook • Copper production of 49 kt (attributable) Democratic Location mostly in-line with guidance Republic of Congo Ownership 24% 2016 Production Guidance 54,000 t Cu • Cash costs of $1.21/lb affected by lower (attributable share) cobalt by-product credits 2016 Costs1 $1.32
Slide 24: Lundin Mining Well Positioned in Any Market
Lundin Mining Well Positioned in Any Market High quality, competitively positioned mines Diversified base metals and geographic asset base Meaningful production scale Strong cash flows with focus on preservation of margins Conservative balance sheet with low leverage ratios 24
Slide 25: NI 43-101 Compliance
NI 43-101 Compliance Unless otherwise indicated, Lundin Mining Corporation has prepared the technical information in this presentation (“Technical Information”) based on information contained in the technical reports and news releases (collectively the “Disclosure Documents”) available under Lundin
Slide 26: TSX: LUN OMX: LUMI
TSX: LUN OMX: LUMI