Lundin Mining Corporation · TSX:LUN
Lundin Mining — Investor Presentation (November 2013)
37 slides from Lundin Mining's investor presentation, November 2013
Slide 1: Corporate Presentation November 2013
TSX: LUN OMX: LUMI Corporate Presentation November 2013
Slide 2: Cautionary Statements
Cautionary Statements Caution Regarding Forward Looking Statements This presentation contains forward forward‐looking looking statements. statements These forward forward‐looking looking statements are not based on historical facts, but rather on current expectations and projections about future eve
Slide 3: Key Asset Overview
Key Asset Overview • European Operations • Tenke Fungurume • Growth Projects • Neves‐Corvo, Neves Corvo Portugal • Tier 1 Cu/Co asset • Eagle Mine, Mine Michigan (Cu/Zn) • 24% interest • Tenke Expansions • Zinkgruvan, Sweden • Freeport‐McMoRan (Zn/Pb/Cu) operator t • Aguablanca, Spain • Phase II exp
Slide 4: Q3/13 Operational Highlights
Q3/13 Operational Highlights Overall mine performance during the quarter achieved objectives Copper Production: d Neves‐Corvo in‐line; better than expected at Aguablanca and Zinkgruvan Aguablanca grades and recoveries were better than expected, resulting in an increase in both copper and nickel
Slide 5: Q3/13 Operational Highlights
Q3/13 Operational Highlights Cash Costs: Neves‐Corvo N C – guidance id increased i d to account for f higher hi h production d i costs and d lower by‐product metal prices (guidance $1.90/lb Cu from $1.80/lb Cu) Aguablanca – guidance lowered due to better than expected production (guidance $4.5
Slide 6: Financial Position
Financial Position Strong Balance Sheet flexibility As of Sept. 30, 2013 $US M Cash & Equivalents $137 Total Debt $208 Total Net Debt Balance $71 Available Credit Facility Outstanding ~$400 Credit Facility totalling $600M completed in October 2013, for a four year term with rates between LIBOR +2.
Slide 7: Operations and Outlook
Operations and Outlook 7
Slide 8: Production and Cost Guidance – Q3/2013
Production and Cost Guidance – Q3/2013 2013 Guidance Tonnes C1 Cost a Copper Neves‐Corvo 50,000 – 55,000 $1.90 Zinkgruvan 3,500 – 4,000 Aguablanca 5,500 – 6,000 Wholly‐owned 59,000 – 65,000 Tenke (@ 24%)b 50,000 $1.24 Total 109,000 – 115,000 Zinc inc Neves‐Corvo Neves Corvo 50,000 – 55,000 Zinkgruva
Slide 9: Capex Guidance – Cost Restraint Implemented
Capex Guidance – Cost Restraint Implemented Original Revised Guidance Guidance (Q1/13) (Q3/13) $US M $US M Sustaining Neves‐Corvo $70 $65 Zinkgruvan $40 $35 Total Sustaining $110 $100 New Investment Lombador Phase I $30 $25 Neves water dam $9 $5 Zinkgruvan Ore Dressing Plant $13 ‐ Aguablanca wall st
Slide 10: Neves-Corvo
Neves‐Corvo 10
Slide 11: Neves-Corvo – Q3/13 Results
Neves‐Corvo – Q3/13 Results • Production of 12.6kt copper & 14.7kt zinc • C1 costs t off $2 $2.23/lb 23/lb C Cu ((nett off b by‐product d t credits) dit ) hi higher h ththan expected • Average copper grades d off 2 2.4% % with i h recovery rate off 8 81% % • Zinc production achieved a new quarterly
Slide 12: Neves-Corvo – Outlook
Neves‐Corvo – Outlook • Zinc ore mining rates will increase from bulk stopes in upper Lombador o bado co contributing bu g to o aan increased c eased zincc production p oduc o p profile o e • Preliminary investigation into expansion of shaft capacity appears promising and further studies advancing •
Slide 13: Neves-Corvo Production Outlook
Neves‐Corvo Production Outlook Midpoint of guidance range assumed for 2013 ‐ 2015 13
Slide 14: Zinkgruvan
2 zi eee nkgruvan a Pape en be~ J 14
Slide 15: Zinkgruvan – Q3/13 Results
Zinkgruvan – Q3/13 Results • Production of 18.7kt zinc, 8.7kt lead & 1.0kt copper • Zinc i grades d and d production d i volumes l were back b k on trackk and d largely achieved planned levels for the quarter • Cash costs were at the lowest levels since 2007, primarily due to high lead sales for the
Slide 16: Zinkgruvan – Outlook
Zinkgruvan – Outlook • Interim measures to improve plant availability have accomplished measurable improvements • Capital investment for plant modernization deferred indefinitely 16
Slide 17: Zinkgruvan Production Profile
Zinkgruvan Production Profile Midpoint of guidance range assumed for 2013 ‐ 2015 17
Slide 18: Aguablanca
Aguablanca 18
Slide 19: Aguablanca – Q3/13 Results and Outlook
Aguablanca – Q3/13 Results and Outlook • Produced 1.8kt nickel and 1.5kt copper at cash cost of $3.67/lb Ni; exceedingg expectations p for the quarter q • Significant stockpile of ore is now available ahead of the processing plant as the rainy season approaches • Open pit mining is planned to contin
Slide 20: Tenke Fungurume
Tenke Fungurume 20
Slide 21: Tenke – Q3/13 Results
Tenke – Q3/13 Results • Another excellent quarter in mining, milling and copper production • Total production (100%) of 49.5kt Cu and 3.7kt Co @ $1.23/lb Cu • Cash distributions of $38.4 million for the quarter and $110.7 million year‐to‐date • Copper production guidance increased slightly by Freepo
Slide 22: Tenke Outlook
Tenke Outlook Significant Cash returns Expected to Continue in 2013/2014 • Further expansion investment timing under review by operator Freeport • Addition of second sulphuric acid plant expected p p to be completed p in 2016 • Lundin expects significant cash flows from Tenke to continue, assisting
Slide 23: Eagle Mine
Eagle Mine 23
Slide 24: Eagle – Status Update
Eagle – Status Update • Project ramp‐up proceeding well and on schedule • Capital cost forecast to complete maintained at $400M $ (from July 2013) • Mine surface facilities to be commissioned in Q2/2014 • Mill commissioning and first saleable concentrates expected in Q4/2014 24
Slide 25: Eagle – Construction Progress
Eagle – Construction Progress Mill site facilities Underground mine ramp Mill site facilities Mine site facilities 25
Slide 26: Annual Production Profile
Annual Production Profile • Average Life of Mine revenue percentage breakdown is as follows1: • 71% Nickel; 23% Copper; pp 3% Platinum, 2% Cobalt, 1% Palladium, 1% Gold 1 Based on price assumptions used in the July 2013 43‐101 Tech Report., which assume long‐term prices of: $9.25/lb Ni, $3.00/lb Cu,
Slide 27: Eagle Reserves & Exploration Upside
Eagle Reserves & Exploration Upside Eagle Historical Reserves Growth 6 5 onnes Millions of To 4 3 2 2007 2009 2011 2013 27
Slide 28: Key Exploration Targets
Key Exploration Targets • Eagle East massive sulfide extensions: Possible resource • Feeder Dikes Eagle and Eagle East: Tracing the sources E‐W Long Section N‐S Section A High grade on keel A Looking North Looking West 28
Slide 29: Corporate Overview
Corporate Overview 29
Slide 30: Good Growth Profile in Copper, Zinc and Nickel
Good Growth Profile in Copper, Zinc and Nickel Pro Forma Production Profile ‐ Copper Pro Forma Production d Profile f l ‐ Nickel k l Pro Forma Production Profile ‐ Zinc 30 Notes: LUN production profile based on 3‐yr guidance provided in Dec‐2012. Copper profile does not include any future expansions
Slide 31: Lundin Mining - Low-Cost Operations Cu, Zn & Ni
Lundin Mining ‐ Low‐Cost Operations Cu, Zn & Ni 2013 C1 Copper Cost Curve, Grouped by Mine ($/lb) $3 00 $3.00 $2.50 Neves‐Corvo $2.00 Weighted Average Tenke Fungurume $1.50 As Tenke $1.00 production increases, Lundin $0.50 will move down the cost curve $0.00 ‐‐ 10% 20% 30% 40% 50% 60% 70% 80% 90% 10
Slide 32: Lundin Mining - Summary
Lundin Mining ‐ Summary Portfolio of high quality, long‐life mines that are performing well Optimization opportunities and exploration potential at all existing assets No high risk major capital projects Proven disciplined growth approach Geographic and base metal diversification Neves‐Corvo Zinkgru
Slide 33: Appendices
TSX: LUN OMX: LUMI Appendices
Slide 34: Neves-Corvo – Ore Deposits
Neves‐Corvo – Ore Deposits 34
Slide 35: Zinkgruvan – Ore Deposits
Zinkgruvan — Ore Deposits Zinkgruvan | Reserves Kariskoga’ @ Orebro CO Resources : Vane BB copper 4 Askersund, C] Mined out ss oS —~1 400 _ 400m — se ee m —_— SVE Sia m. 600m "SA GRAF 35
Slide 36: Eagle - Mine Plan & Design
_ Eagle -¢Mine Plan & Wine Site Rxtents A ite Sforage Building station Hoot) r lopment Muck Bay #3 oe 024 rieea Passing Bay #2 ust Stack Approx, p Ventilation Fan Muck Bay #4 Approx. Bedrocle Passing Bay #3 ntake/Epress (ism 4) —— Muck Bay #5 Pump Station #2 (310L) 14200 381 1 Muck Bay #6 31800 Pass
Slide 37: Tenke Concession Map
_ Tenke Eoncession Map Tenke Fungurume Concessions mt Airstrip OS Construction Village Plan Area Waste Dump a. \. Kwatebala Plant Tailings Pond Ve , i ; Kwatebala Pit AS, Mwadinkomba patibanderre arr, H — . - Power Substation YS < |_| Copper Deposits National Road \, 220 KV Power Line Pumpi Deposits
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