Lundin Mining Corporation · TSX:LUN
Lundin Mining — TD Securities Mining Conference 2021
28 slides from Lundin Mining's conference presentation, Jan 27, 2021
Slide 1: TD Securities Mining Conference
TD Securities Mining Conference January 27 th – 29 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 This document contains “forward-looking information” within the meaning of Canadian securities laws. All statements other than statements of historical facts constitute forward-looking information,
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 jurisdictions1 Nickel-Copper-PGMs in U.S.A. Zinc-Lead-Copper in Sweden
Slide 4: Responsible Mining
Responsible Mining • we recognize the important role of the metals we produce and are committed to mining these metals responsibly • sustainability strategy provides a framework for identifying focus areas that will reduce risks, increase opportunities, add long-term value • we reported on our susta
Slide 5: Recognition of Responsible Mining in Action
Responsible Mining Recognition of Responsible Mining in Action • leading ISS Environment & Social Quality Scores Total Recordable Injury Frequency • ‘Outperformer’ ESG performance assessment by Sustainalytics per 200,000 person hours worked • above average ‘B’ CDP score, significant achievement with
Slide 6: Notable Recent Events
Notable Recent Events Anticipated 50% Dividend Increase1 • increase in the quarterly dividend to C$0.06 per common share, C$0.24 annualized, anticipated to be declared in February 2021 • expected increase reflects the strong free cash flow outlook from current operations. Well positioned to enhance
Slide 7: Increasing Production Profile
Increasing Production Profile1,2 Copper Zinc Gold 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 2022 1. Production
Slide 8: Candelaria
Candelaria Increase in Production and Reduction in Cash Costs Copper, Gold Production & Cash Costs1 Outlook • copper production forecast to increase approximately 40% in 2021, over the impacted-2020, (100% basis; kt Cu, koz Au & $/lb Cu, net of by-product credits) primarily on improving copper head
Slide 9: Chapada
Chapada Strong Operational Performance Continues • returned to full processing capacity following the installation of the remaining repaired Copper, Gold Production & Cash Costs1 Outlook motor on the ball mill on December 20, 2020 (100% basis; kt Cu, koz Au & $/lb Cu, net of by-product credits) • pr
Slide 10: Neves-Corvo
Neves-Corvo Zinc Expansion Project Officially Restarted January 2021 • ZEP to double current zinc production capacity and improve per unit operating costs • mobilizing a smaller number of contractors with an extended schedule given the Copper, Zinc Production & Cash Costs Outlook1 current safety req
Slide 11: Zinkgruvan
Zinkgruvan Positioned for Strong Start to 2021 • plans call for mining of high-grade stopes driving elevated zinc production into 2021 Zinc Production & Cash Costs Outlook1 • zinc production forecast to increase to 71,000-76,000 t in 2021 at cash costs of (kt & $/lb Zn, net of by-product credits) $0
Slide 12: Eagle
Eagle To Continue to Generate Impressive Free Cash Flow1 • first-quartile cash costs with minimal Nickel, Copper Production & Cash Costs Outlook1 capex to continue through 2025 (kt & $/lb Ni, net of by-product credits) • nickel production increased 24% and copper over 30% YOY in 2020 on increasing E
Slide 13: 2021 Guidance Summary
2021 Guidance Summary1 Production C1 Cash (contained metal in conc.) Cost2 Capital Expenditures ($M) Copper (t) Candelaria (100%) 172,000 - 182,000 $1.353 Sustaining 3 Chapada 48,000 - 53,000 $1.10 Candelaria (100% basis) 345 Eagle 17,000 - 20,000 Chapada 65 Neves-Corvo 35,000 - 40,000 $2.203 Eagle
Slide 14: 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 15: www.lundinmining.com
www.lundinmining.com | TSX: LUN | Nasdaq Stockholm: LUMI
Slide 16: Appendices
Appendices lundin mining
Slide 17: 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 18: 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 19: 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 20: 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 21: 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 22: 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 23: 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 24: 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 25: 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 26: 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 27: 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 28: www.lundinmining.com
www.lundinmining.com | TSX: LUN | Nasdaq Stockholm: LUMI