Lundin Mining Corporation · TSX:LUN
Lundin Mining — Investor Presentation (February 2008)
27 slides from Lundin Mining's investor presentation, February 2008
Slide 1: A Global Diversified Base Metals Mining Company
A Global Diversified Base Metals Mining Company
Slide 2: Raison d’Etre
Raison d’Etre To create extraordinary return on investment for shareholders… by building the best and most dynamic base metals mining company in the industry
Slide 3: We’re the New Kid on the Block
We’re the New Kid on the Block In less than two years we’ve gone from a regional single commodity player to a global diversified and the growth path continues…
Slide 4: With a Proven Team of Mine Finders and Mine Builders
With a Proven Team of Mine Finders and Mine Builders Phil Wright – new President and CEO
Slide 5: Building a Global Growth Portfolio
Building a Global Growth Portfolio Storliden Mine Mantle Resources Investment Norrliden Project Galmoy Mine Zinkgruvan Mine Aljustrel Mine Ozernoe Project Neves-Corvo Mine Union Resources Investment Aguablanca Mine Sunridge Gold Investment Chariot Resources Investment Sanu Resources Investment Tenke
Slide 6: Diversified Production
Diversified Production 2007 Revenue Distribution Zinc 26% 58% 5% 10% 1% Nickel Lead Copper Silver Assumes for illustration purposes consolidation of Aguablanca as of Q1 2007
Slide 7: 2008 Production Targets
2008 Production Targets 202,000 t zinc 92,000 t copper 47,000 t lead 6,800 t nickel Goal of Doubling Production through Organic Growth
Slide 8: Six Mines in Production in 4 Countries in Europe
Six Mines in Production in 4 Countries in Europe Portugal: Neves-Corvo Aljustrel Spain: Aguablanca Sweden: Zinkgruvan Storliden Ireland: Galmoy
Slide 9: Neves-Corvo
Neves-Corvo Copper/Zinc mine One of Europe’s largest Long life, high grade Cash cost $0.76/lb
Slide 10: Aljustrel
Aljustrel Zinc/lead mine Start-up December 2007 Close to Neves-Corvo mine Provides leverage to zinc prices
Slide 11: Aguablanca
Aguablanca Nickel mine One of the few sulphide nickel mines that are not in the hands of majors Cash cost $7.94/lb
Slide 12: Zinkgruvan
Zinkgruvan Zinc/lead mine Long life, steady producer High grade Good logistics and infrastructure Cash cost $0.22/lb
Slide 13: Galmoy
Galmoy Zinc/lead mine High grade Good logistics and infrastructure Cash cost $0.65/lb
Slide 14: Plus Two Mine Expansions and Two Major New Project Developments
Plus Two Mine Expansions and Two Major New Project Developments Neves-Corvo Lombador Zinc Expansion Zinkgruvan Copper Expansion Tenke Fungurume Mine Development Ozernoe Mine Development
Slide 15: Tenke Fungurume
Tenke Fungurume World-class copper development in DRC Extremely high grade, long life Production start-up 2009 Ramp up in stages to +400,000 tpa Cu 24.75% interest – operated by Freeport Cash cost estimated to be one of the lowest in the industry
Slide 16: Ozernoe
Ozernoe Large zinc development in Russia One of the few major zinc mines in the pipeline Geographic centre of 3 major markets 49% interest Cash cost estimated to be low to middle quartile
Slide 17: Neves-Corvo Lombador Expansion
Neves-Corvo Lombador Expansion
Slide 18: Zinkgruvan Copper Expansion
Zinkgruvan Copper Expansion Copper Deposit
Slide 19: Plus a Global Exploration Reach
Plus a Global Exploration Reach Near-mine exploration 6 African countries Canada Peru Iran 19
Slide 20: Production Growth from Existing Mines and Developments
Production Growth from Existing Mines and Developments Copper Zinc 250 900 800 200 700 600 150 500 100 400 300 50 200 100 - - 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012 Million lbs Million lbs Actual Operations Construction Feasibility Note: includes Neves-Corvo as of Octo
Slide 21: Share Capitalization
Share Capitalization Exchange TSX: LUN Listings OMX: LUMI NYSE: LMC Shares Basic: 391 million Outstanding FD: 392 million Lundin Family 15.7% Holdings
Slide 22: Strong Financials
Strong Financials $50 million operating cash flow per month $0 net debt $575 million bank facility $220 cash
Slide 23: Our approach is entrepreneurial and growth oriented
Our approach is entrepreneurial and growth oriented and we’re bullish about the base metals market
Slide 24: Increase in Copper Usage 2007 over 2006
Increase in Copper Usage 2007 over 2006 A Supply Side Story 1400 ~1 Escondida or 2.5 Grasberg 0 or -200 17 Neves-Corvo
Slide 25: Goal
Goal Shareholder Value lundi =
Slide 26: Clear Growth Targets
Clear Growth Targets Production Expansion Development Exploration Strategic Acquisition Operational Excellence
Slide 27: Cautionary Statement
Cautionary Statement Caution Regarding Forward Looking Statements This presentation contains forward-looking statements. These forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events. These forward-looking statements are su
Lundin Mining — Investor Presentation (February 2008) on 6ix