Lundin Mining Corporation · TSX:LUN
Lundin Mining — BMO Capital Markets 28th Global Metals & Mining Conference 2019
32 slides from Lundin Mining's conference presentation, February 2019
Slide 1: BMO Capital Markets 28th Global Metals & Mining Conference
TSX: LUN Nasdaq Stockholm: LUMI BMO Capital Markets 28th Global Metals & Mining Conference February 25th – 27th, 2019 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: 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 4: Our Strategy and Our Operations
Lundin Mining Our Strategy Our Operations Freeport Cobalt1 Operate, upgrade and grow a Cobalt Refinery (Finland) base metal portfolio that provides leading returns for our Eagle Zinkgruvan shareholders throughout the cycle Nickel-Copper-PGMs (USA) Zinc-Lead-Copper (Sweden) – copper dominant Neves-Co
Slide 5: Capital Allocation Priorities
Capital Allocation Priorities Invest in low-risk, high-return brownfield expansion projects and exploration Maintain regular dividend Keep a flexible balance sheet to move quickly on compelling growth opportunities Consider other returns of capital to shareholders from time-to-time 5
Slide 6: Increasing Production Profile
Increasing Production Profile1 (kt) Copper Zinc Nickel Forecast 7% CAGR primarily on improved Forecast ~55% increase primarily on Eagle East planned on-line in Q4 2019 Candelaria mine plan and low-risk investments Neves-Corvo Zinc Expansion Project 251 241 246 19 18 231 16 210 15 232 16 218 227 195
Slide 7: 2019 Capital Expenditure Guidance
2019 Capital Expenditure Guidance Candelaria Capital Expenditures 1 (US$M) – continue investments in low-risk initiatives to deliver Capitalized Stripping2 130 improved production profile Los Diques TSF 10 Neves-Corvo New Mine Fleet Investment 75 – ZEP total capital cost estimated at €320M ($385M) C
Slide 8: 2019 Exploration Expenditure Guidance
2019 Exploration Expenditure Guidance Aggressive In-Mine and Near-Mine Exploration Programs – $80M to be invested in 2019 in exploration programs – nearly 206,000 meters of planned drilling – $23M at Eagle, $23M at Zinkgruvan and $7M at Neves-Corvo – $14M at Candelaria reflecting a scale back from s
Slide 9: Responsible Mining
Responsible Mining Safety Total Recordable Injury Frequency per 200,000 person hours worked – overall safety performance better than target for sixth consecutive year – first-quartile performance 3.5 3.1 Social – positive stakeholder engagement 2.5 and increased social investment – achieved top ISS
Slide 10: Candelaria
Candelaria 10 Candelaria Open Pit – Phase 10 Pushback – Early February 2019
Slide 11: Candelaria
Candelaria Increasing Copper Production Profile – copper production forecast to increase ~45 kt or Copper Production & Cash Cost Outlook (100% basis; kt & $/lb Cu, net of by-product credits) 33% by 2021 over 2018 mainly on grade change – to average ~180 kt per annum for the next ten years 175-185 16
Slide 12: 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 13: Neves-Corvo
Neves-Corvo Excellent Mine and Mill Performance – improved mine productivity and mill throughput Copper, Zinc Production & Cash Cost Outlook contributed to significant performance increase (kt & $/lb Cu, net of by-product credits) – zinc and copper plants set annual throughput 155-160 records 120-13
Slide 14: ZEP – Underground Construction
ZEP – Underground Construction Top of Crusher Chamber Transfer Point #3 Turnover Station Conveyor #3 14
Slide 15: ZEP – Zinc Plant Construction
ZEP – Zinc Plant Construction Zinc Plant Construction – Early February 2019 15
Slide 16: ZEP – Surface Construction
ZEP – Surface Construction New Zinc Plant Construction – Mid-February 2019 Flotation Cell Installation in Existing Plant 16
Slide 17: Eagle & Eagle East
Eagle & Eagle East Robust Mine and Mill Performance – head grades to increase as Eagle East orebody Nickel, Copper Production & Cash Cost Outlook (kt & $/lb Ni, net of by-product credits) comes online 19-22 Excellent Progress Advancing Eagle East 16-19 18 18 14-17 – first ore expected in Q4 2019 12-
Slide 18: Zinkgruvan
Zinkgruvan Improved Grades and Mill Throughput Zinc Production & Cash Cost Outlook – remain focused on mine planning and (kt & $/lb Zn, net of by-product credits) execution to improve dilution and ore loss 76-81 76-81 75-80 Ramp Up of Exploration Activities – 2019 $23M budget with 78,000 meters of 7
Slide 19: Appendices
TSX: LUN OMX: LUMI Appendices 19
Slide 20: 2019 Production and Cash Cost Guidance
2019 Production and Cash Cost Guidance Production1 and C1 Cash Cost2 (t and $/lb, net of by-products) Copper Candelaria (100%) 145,000 – 155,000 $1.60/lb Eagle 12,000 – 15,000 Neves-Corvo 40,000 – 45,000 $1.70/lb Zinkgruvan 2,000 – 3,000 Total 199,000 – 218,000 Zinc Neves-Corvo 71,000 – 76,000 Zinkg
Slide 21: Production Outlook
Production Outlook1 2019 2020 2021 Copper Candelaria (100% basis) 145,000 – 155,000 165,000 – 175,000 175,000 – 185,000 Eagle 12,000 – 15,000 19,000 – 22,000 14,000 – 17,000 Neves-Corvo 40,000 – 45,000 41,000 – 46,000 41,000 – 46,000 Zinkgruvan 2,000 – 3,000 2,000 – 3,000 2,000 – 3,000 Total 199,000
Slide 22: Mine Fleet Reinvestment
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 estimates now support mine life to 2040 New Equipme
Slide 23: Candelaria Mill Optimization Project
Candelaria Mill Optimization Project Low-Risk Investments to Increase Metal Production, Reduce Costs and Improve Safety – primary crusher motor upgrade – ball mill re-powering; pebble circuit upgrade; cyclone and feed pump upgrades – flotation circuit upgrades – front-end desalination plant and pipe
Slide 24: Candelaria Underground Mine Expansions
Candelaria Underground Mine Expansions South Sector Significant Underground Exploration Looking west Success Under Lundin Mining Ownership – Candelaria North and South Sectors underground Mineral Reserve estimate now 101Mt at 0.85% copper – South Sector remains significantly under-drilled Increasing
Slide 25: 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 3,413 kt contained (633,978 kt at 0.5%) M&I Copper Mineral Resources 6,146 kt contained (952,474 kt at 0.6%) Inferred Cop
Slide 26: Eagle Mine and Eagle East – Mineral Resources and Mineral Reserves
Eagle Mine and Eagle East – Mineral Resources and Mineral Reserves1 Ownership 100% Location Michigan, USA Mine life 5 years 2019 exploration budget ~$23M P&P Nickel Mineral Reserves 108 kt contained (4,088 kt at 2.6%) M&I Nickel Mineral Resources 135 kt contained (3,981 kt at 3.4%) P&P Copper Minera
Slide 27: Eagle East
Eagle East Existing Existing Access Access Ramp Ramp Eagle Mine Eagle Mine Dual DualDeclines Declines Current Advance Eagle East Infill Drill Program Eagle East Phase 1 Complete Ore Body 27
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 2019 exploration budget ~$7M P&P Zinc Mineral Reserves 2,331 kt contained (30,384 kt at 7.7%) M&I Zinc Mineral Resources 6,203 kt contained (103,516 kt at 6.0%) Inferred Zinc M
Slide 29: 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 816 kt contained (10,314 kt at 7.9%) M&I Zinc Mineral Resources 1,270 kt contained (15,151 kt at 8.4%) Inferred Zinc Mineral Reso
Slide 30: Zinkgruvan – New Dalby Mineral Resource
Zinkgruvan – New Dalby Mineral Resource1 Four rigs focused on expansion of new Dalby deposit Dalby Flaxen Known Mineralization 1 Km 1. For more information please refer to the Company’s new release dated September 6, 2018 entitled “Lundin Mining Announces 2018 Mineral Resource and Mineral Reserve Es
Slide 31: 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 32: TSX: LUN Nasdaq Stockholm: LUMI
TSX: LUN Nasdaq Stockholm: LUMI
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