Slide 1: Corporate Update
TSX: LUN OMX: LUMI Corporate Update October 2015
Slide 2: Cautionary Statements
Cautionary Statements Caution Regarding Forward-Looking Information 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 historical facts, but rather on current
Slide 3: Lundin Mining – Globally Diversified Portfolio
Lundin Mining – Globally Diversified Portfolio Lundin Mining Head Office Lundin Mining Toronto, Canada UK Office West Sussex, UK Zinkgruvan (100%) Zinc-Lead-Copper Freeport Cobalt (24%) (Sweden) Cobalt Refinery (Finland) Eagle (100%) Nickel-Copper (USA) Neves-Corvo (100%) Aguablanca (100%) Nickel-Co
Slide 4: Operating Highlights
Operating Highlights Operations performing well – meeting or exceeding expectations Copper Zinc Nickel (Cu) (Zn) (Ni) • Strong performance in • Solid results at • Production at Eagle and first half of 2015 Zinkgruvan. Increased Aguablanca largely production guidance meeting or exceeding • Improved p
Slide 5: Sales Mix First Half 2015
Sales Mix First Half 2015 • 70% of sales were from Candelaria (Chile – Cu) and Eagle (U.S.A. – Ni/Cu) • 66% of sales were from copper Sales Breakdown by Mine Sales Breakdown by Metal Aguablanca Other 5% Gold 6% Zinkgruvan 6% 8% Zinc 8% Neves- Corvo 17% Candelaria Nickel 53% 14% Copper 66% Eagle 17%
Slide 6: YTD Cash Costs – Very Competitive
YTD Cash Costs – Very Competitive Source: Cost curves from Wood Mackenzie as of Q2 2015 6 * Cash cost curves are based on the expected annual costs for 2015, whereas YTD costs have been highlighted for LUN assets for illustrative purposes
Slide 7: Strong Financial Position
Strong Financial Position US$ M June 30, 2015 Cash and Cash Equivalents $507 Net Debt1 $497 Available Credit Facilities $360 Cash and Cash Equivalents 600 $507 400 $355 $US M 200 $175 - Q4/14 Q1/15 Q2/15 • Cash balance grew by over $300M in the first six months of the year • Net debt has improved fr
Slide 8: 2015 Production and Cost Outlook
2015 Production and Cost Outlook Guidance • Raised copper and lead (contained tonnes) Tonnes Cash Costsa production guidance and Candelaria (80%) 135,000 – 140,000 $1.35/lb lowered copper cost outlook Eagle 20,000 – 23,000 Neves-Corvo 50,000 – 55,000 $1.55/lb Copper • Zinkgruvan outperforming, Zinkg
Slide 9: Operational Overview and Outlook
Operational Overview and Outlook Candelaria (80%) Neves-Corvo (100%) Eagle (100%) Zinkgruvan (100%) Tenke Fungurume Aguablanca (100%) (24%) 9
Slide 10: Candelaria (Cu/Au/Ag), Chile
Candelaria (Cu/Au/Ag), Chile Atacama Province, Region III, approximately 20 km south of Copiapó 10
Slide 11: Candelaria H1/15 Performance and Outlook
Candelaria H1/15 Performance and Outlook • Production (100% basis) of 96.0 kt in H1/15 Location Chile exceeded expectations as a result of higher Ownership 80% throughput and recoveries 2015 Production 135,000-140,000 t Cu • Cash costs of $1.20/lb YTD, below annual Guidance (80%) guidance due to ope
Slide 12: Candelaria New Mine Plan – Improved Production & Costs
Candelaria New Mine Plan – Improved Production & Costs • 25% increase in LOM copper production (2.4 Mt vs. 1.9 Mt) • Mine life extended to 2032 from 2028 • 5 year plan production profile significantly improved • Low cost operation with average LOM cash costs of $1.54/lb 200 174 COPPER PRODUCTION (00
Slide 13: 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 13
Slide 14: Eagle H1/15 Performance and Outlook
Eagle H1/15 Performance and Outlook • Nickel production of 13.7 kt and copper Location Michigan, USA production of 11.8 kt in H1/15 Ownership 100% › Meeting expectations in its first full 2015 25,000–28,000 t Ni year of production Production Guidance 20,000–23,000 t Cu 2015 Cost Guidance $2.00/lb Ni
Slide 15: Neves-Corvo (Cu/Zn), Portugal
Neves-Corvo (Cu/Zn), Portugal Situated 220 km southeast of Lisbon 15
Slide 16: Neves-Corvo H1/15 Performance and Outlook
Neves-Corvo H1/15 Performance and Outlook • Strong copper production of 30.8 kt in Location Portugal H1/15 Ownership 100% › higher throughput and better grades 50,000–55,000 t Cu 2015 Production 60,000–65,000 t Zn Guidance • Zinc production of 33.4 kt in H1/15 4,000-5,000 t Pb 2015 Cost Guidance $1.
Slide 17: Zinkgruvan (Zn/Pb/Cu), Sweden
Zinkgruvan (Zn/Pb/Cu), Sweden Situated 200 km southwest of Stockholm 17
Slide 18: Zinkgruvan H1/15 Performance and Outlook
Zinkgruvan H1/15 Performance and Outlook • Zinc production of 39.7 kt in H1/15 Location Sweden Ownership 100% › Higher throughput and recoveries 80,000–85,000 t Zn 2015 Production 30,000–33,000 t Pb Guidance • Lead production of 14.8 kt in H1/15 2,000–3,000 t Cu impacted by lower grades 2015 Cost Gu
Slide 19: Aguablanca (Ni/Cu), Spain
Aguablanca (Ni/Cu), Spain Situated 80 km north of Seville 19
Slide 20: Aguablanca H1/15 Performance and Outlook
Aguablanca H1/15 Performance and Outlook • Nickel production of 5.0 kt and copper Location Spain production of 4.1 kt Ownership 100% 2015 Production 7,000–7,500 t Ni › Consistent higher grades YTD with Guidance 5,500–6,000 t Cu lower throughput impacting Q2 only 2015 Cost Guidance $3.75/lb Ni • Nick
Slide 21: Tenke Fungurume (Cu/Co), DRC
Tenke Fungurume (Cu/Co), DRC Situated 175 km northwest of Lubumbashi 21
Slide 22: Tenke H1/15 Performance and Outlook
Tenke H1/15 Performance and Outlook • Copper production (100% basis) of Location Democratic Republic 105.0 kt in H1/15 of Congo Ownership 24% • Cobalt production (100% basis) of 7.5 kt 2015 Production Guidance 50,000 t Cu (attributable share) in H1/15 2015 Costs $1.12/lb Cu • Copper cash costs of $1
Slide 23: Well Positioned in Any Market
Well Positioned in Any Market High quality, diversified asset base Diversified metals exposure Meaningful production scale Strong free cash flow and good margins Conservative balance sheet 23
Slide 24: Appendices
TSX: LUN OMX: LUMI Appendices
Slide 25: Candelaria Integrated Mining Complex
Candelaria Integrated Mining Complex Alcaparrosa • Successful Tierra Amarilla Mine operating track record Santos Mine • Large prospective regional mineral Candelaria property position Norte Ojos-Plant PAC near mine • Opportunity to Candelaria Open Pit continue to extend Magnetite Plant Damiana mine
Slide 26: Candelaria Complex Mineral Reserves and Resources
Candelaria Complex Mineral Reserves and Resources June 30, 2015 (100% Basis) Grade Contained Metal Classification Quantity Copper (%) Gold (g/t) Silver (g/t) Copper (kt) Gold (koz) Silver (koz) Proven and Probable Open Pit 314,582 0.57 0.13 1.99 1,784 1,317 20,160 WIP 93,849 0.36 0.09 1.49 335 263 4
Slide 27: Candelaria Complex Cost Profile
Candelaria Complex Cost Profile Candelaria Unit 2016E 2017E 2018E 2019E Mining Cost – OP* Mining Cost – UG $/t mined $/t mined 2.50 21.10 2.80 21.40 3.10 20.80 2.70 20.20 • 2016-2019 average Candelaria Processing Cost $/t milled 7.70 7.50 8.70 8.10 unit cost of ~$21.50/t milled G&A Cost $/t milled 1
Slide 28: Candelaria Complex Capital Investment Plan
Candelaria Complex Capital Investment Plan For the period 2016 to 2024 (Candelaria Copper Mining Complex) Capital Costs (US$M) 2016 2017 2018 2019 Mine 26.4 19.8 10.6 12.1 Mill 4.0 2.2 2.8 2.6 Tailings 70.9 180.0 75.0 50.0 G&A 1.5 - 3.6 0.3 Total (Pre-Stripping) 103.1 202.0 92.0 65.0 Capitalized Str
Slide 29: Los Diques Tailings Storage Facility
Los Diques Tailings Storage Facility • Located SW of the open pit and plant site • Key part of Candelaria 2030 EIA - approved July 2015 • Replace Candelaria TSF which will receive tailings until the end of 2017 • Requires relocating four power lines and one segment of the C-397 public road • Designe
Slide 30: Eagle Mine and Eagle East Deposit Overviews
Eagle Mine and Eagle East Deposit Overviews Grade Ni Grade Cu Contained Ni Contained Cu K Tonnes (%) (%) (k tonnes) (k tonnes) P&P 4,488 2.9 2.4 129 109 M&I 4,261 3.5 2.9 149 123 Inferred 51 1.1 1.1 1 1 30
Slide 31: Neves-Corvo Site Overview
Neves-Corvo Site Overview Grade Contained Grade Contained Copper K Tonnes (%) (k tonnes) Zinc K Tonnes (%) (k tonnes) P&P 25,948 2.7 711 P&P 25,333 7.1 1,798 M&I 69,352 2.7 1,864 M&I 106,785 6.1 6,519 Inferred 13,375 1.7 233 Inferred 12,626 4.5 569 31
Slide 32: Zinkgruvan Site Overview
Zinkgruvan Site Overview Grade Zn Grade Pb Contained Zn Contained Pb K Tonnes (%) (%) (k tonnes) (k tonnes) P&P 11,719 8.2 3.3 962 385 M&I 16,947 9.6 3.9 1,620 661 Inferred 7,270 8.4 3.5 611 254 32
Slide 33: Tenke Fungurume Site Overview
Tenke Fungurume Site Overview Grade Cu Grade Co Contained Cu Contained Co (100% Basis) K Tonnes (%) (%) (k tonnes) (k tonnes) P&P 136,120 2.7 0.4 3,681 494 M&I 636,554 2.5 0.3 15,747 1,758 Inferred 392,750 2.0 0.2 8,004 916 33
Slide 34: 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 35: Thank You
TSX: LUN OMX: LUMI Thank You