Lundin Mining Corporation · TSX:LUN
Lundin Mining — Shareholder Meeting (May 2019)
20 slides from Lundin Mining's shareholder meeting presentation, May 10, 2019
Slide 1: 2019 Annual Meeting of Shareholders
TSX: LUN Nasdaq Stockholm: LUMI 2019 Annual Meeting of Shareholders May 10, 2019 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, other than statements of historical fact and historical information, is “forward-looking information” within the meaning of applicabl
Slide 3: Lundin Mining: Our Strategy, Our Operations
Lundin Mining Our Strategy Our Operations Operate, upgrade and grow a Freeport Cobalt1 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 4: Our Leadership Team
Our Leadership Team Marie Inkster Jinhee Magie Peter Richardson President & CEO Senior Vice President & Senior Vice President & Chief Financial Officer Chief Operating Officer Andrew Hastings Jean-Claude(JC) Peter Rockandel Mikael Schauman Senior Vice President & Senior Vice President, General Couns
Slide 5: 2018 Highlights
2018 Highlights Excellent Advancing Disciplined Capital Performance Projects Management – overall safety performance – Candelaria low-risk high- – early redemption of better than target for sixth return investments on remaining high yield notes consecutive year schedule and budget – actively assesse
Slide 6: 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 7: 2018 Summary Results
2018 Summary Results 2018 Full-Year Results Production – 199,630 t of copper – 152,041 t of zinc – 17,573 t of nickel – 31,184 t of lead $1,726M in Revenue – 64% copper – 17% zinc – 9% nickel – 3% lead $487M in operating cash flow $196M in attributable net earnings from continuing operations C$0.12/
Slide 8: Candelaria
Candelaria Met 2018 Annual Guidance Copper Production & Cash Cost Outlook – commissioned Los Diques tailings storage facility (TSF) (100% basis; kt & $/lb Cu, net of by-product credits) On-Track to Achieve 2019 Guidance 175-185 165-175 – copper head grades to increase in the H2 as more mill feed is
Slide 9: Los Diques TSF
Los Diques TSF EI < o SA ee s Se
Slide 10: Neves-Corvo & ZEP
Neves-Corvo & ZEP Excellent Mine and Mill Performance in 2018 – exceeded most recent 2018 guidance Copper, Zinc Production & Cash Cost Outlook (kt & $/lb Cu, net of by-product credits) – zinc and copper plants set annual throughput records 155-160 Strong Operating Performance Continued in Q1/19 120-
Slide 11: ZEP – Underground & Surface Construction
ZEP – Underground & Surface Construction Transfer Tower #3 Flotation and Filtration Buildings Flotation Cell Installation 11
Slide 12: Eagle & Eagle East
Eagle & Eagle East Robust Performance – 2018 targets achieved and Eagle East Nickel, Copper Production & Cash Cost Outlook advanced ahead of schedule (kt & $/lb Ni, net of by-product credits) Excellent Progress Advancing Eagle East 19-22 16-19 – ramp and vertical raise development 18 18 14-17 13-16
Slide 13: Zinkgruvan
Zinkgruvan Consistent Performance, Low Cash Costs Zinc Production & Cash Cost Outlook (kt & $/lb Zn, net of by-product credits) – continuous improvement focus 76-81 76-81 Ramp-Up of Exploration Activities 77 75-80 – 78,000 m of drilling planned in 2019 from surface and underground – planned $24M exp
Slide 14: Capital & Exploration Expenditure Guidance
Capital & Exploration Expenditure Guidance Capital Expenditures Capital Expenditures1 (US$M) – reinvested approximately $750M in 2018 Capitalized Stripping2 130 – 2019 guidance unchanged at $745M Los Diques TSF 10 New Mine Fleet Investment 75 Exploration Candelaria Mill Optimization Project 50 – $75
Slide 15: Acquisition Highlights
Acquisition Highlights Furthers Lundin Mining Strategic Goals ─ high-quality, long-life, expandable ─ complements existing assets ─ copper focused Immediately Value Adding ─ on key financial and operating metrics ─ financial strength utilized while maintaining low leverage and flexibility Increased
Slide 16: Diversified in Established Jurisdictions
Diversified in Established Jurisdictions 2019E Copper Equivalent Production by Country 1, 2 Current Pro Forma Sweden Sweden 9% 11% USA USA 12% 14% Chile Chile 40% 51% Portugal Portugal 19% 24% Brazil 20% Notes: (1) Based on midpoint of 2019E production guidance provided by Lundin Mining and 2019E Ch
Slide 17: Increasing Production Profile (kt)
Increasing Production Profile1 (kt) Copper Zinc Nickel Forecast +50% increase on Candelaria Forecast ~55% increase primarily on Eagle East planned on-line in Q4 2019 investments and Chapada Acquisition Neves-Corvo Zinc Expansion Project 241 302 19 298 18 231 +25% 16 210 15 16 263 +26% 195 13 242 237
Slide 18: 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 19: 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 20: TSX: LUN Nasdaq Stockholm: LUMI
TSX: LUN Nasdaq Stockholm: LUMI