Lundin Mining Corporation · TSX:LUN
Lundin Mining — Investor Presentation (December 2020)
27 slides from Lundin Mining's investor presentation, December 2020
Slide 1: Corporate Presentation
Corporate Presentation December 2020 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 jurisdictions 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 • we demonstrate this commitment through living our core values of Safety, Respect, Integrity and Excellence in all aspects of our decision-making • 2020 community inves
Slide 5: Responsible Mining: Safety – Foremost Value
Responsible Mining Safety – Foremost Value Total Recordable Injury Frequency • we hold health and safety as our top priority in everything we do per 200,000 person hours worked • we believe that all occupational injuries and work-related illnesses are preventable. Our aim is Zero Harm • self-initiat
Slide 6: Increasing Production Profile
Increasing Production Profile1,2 (kt) Copper Zinc Gold 281 - 305 278 - 302 221 - 236 275 - 299 175 - 185 170 - 180 +15% ~60% 162 - 172 +30% 183 - 198 150 - 160 217 - 232 141 - 151 142 - 146 2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2022 1. Production profile based on certain estimates a
Slide 7: Q1-Q3 2020 Summary Results
Q1-Q3 2020 Summary Results Production Payable Sales 188,896 t of copper 184,034 t of copper 101,316 t of zinc 85,274 t of zinc 128,000 oz of gold 120,000 oz of gold 11,809 t of nickel 8,767 t of nickel 21,170 t of lead 21,482 t of lead $1,512M in Sales Lead Other Sweden 2% 3% 6% Nickel 7% Portugal Z
Slide 8: Shareholder Returns
Shareholder Returns 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 • 2.3% annualized yield2 • expected increase reflects the strong free cash flow outlook from current operations. Well
Slide 9: Candelaria
Candelaria Step-Change Increase in Production and Cash Costs Reduction Copper, Gold Production & Cash Costs1 Outlook • copper production forecast to increase nearly 45% in 2021, over the impacted-2020, (100% basis; kt Cu, koz Au & $/lb Cu, net of by-product credits) primarily on improving copper hea
Slide 10: Chapada
Chapada Strong Operational Performance Continues • plant achieved approximately 35% throughput capacity while operating only the SAG mill Copper, Gold Production & Cash Costs1 Outlook (100% basis; kt Cu, koz Au & $/lb Cu, net of by-product credits) • throughput has further improved since mid-Novembe
Slide 11: Neves-Corvo
Neves-Corvo Zinc Expansion Project to Officially Restart in January • ZEP to double current zinc production capacity and improve per unit operating costs Copper, Zinc Production & Cash Costs Outlook • Q4/20 preparation work is planned to include ventilation raises, activities on the SAG mill, (kt &
Slide 12: Zinkgruvan
Zinkgruvan Positioned for Strong Finish to 2020 & Start to 2021 • plans call for mining of high-grade stopes driving increased zinc production into Zinc Production & Cash Costs Outlook Q4/20 and 2021 (kt & $/lb Zn, net of by-product credits) • zinc production forecast to increase to 71,000-76,000 t
Slide 13: Eagle
Eagle To Continue to Generate Impressive Free Cash Flow1 • first-quartile cash costs with minimal Nickel, Copper Production & Cash Costs Outlook capex to continue through 2025 (kt & $/lb Ni, net of by-product credits) • nickel production increased nearly 45% and copper over 25% in Q3/20 compared to
Slide 14: 2021 Guidance Summary
2021 Guidance Summary1 Production C1 Cash (contained metal in conc.) Cost2 Capital Expenditures ($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 $2.203 Eagle
Slide 15: Lundin Mining
Lundin Mining High Quality Meaningful Scale Financial Strength Competitive Mines Growth Oriented • demonstrated operational excellence and • increasing copper, zinc and gold production • proven track record for rigorous investment culture of continuous improvement profiles approach, focused on value
Slide 16: www.lundinmining.com TSX: LUN Nasdaq Stockholm: LUMI
www.lundinmining.com | TSX: LUN | Nasdaq Stockholm: LUMI
Slide 17: Appendices
Appendices lundin mining
Slide 18: 2020 Guidance Summary
2020 Guidance Summary1 Production C1 Cash (contained metal in conc.) Cost2 Capital Expenditures ($M) Copper (t) Candelaria (100%) 120,000 - 125,000 $1.503 Sustaining 3 Chapada 45,000 - 50,000 $0.55 Candelaria (100% basis) 225 Eagle 17,000 - 19,000 Chapada 40 Neves-Corvo 32,000 - 34,000 $2.103 Eagle
Slide 19: Candelaria Complex – Mineral Resources and Mineral Reserves
Candelaria Complex – Mineral Resources and Mineral Reserves1 Ownership 80% Location Region III, Chile Mine life +20 years 2020 exploration budget $15M P&P Copper Mineral Reserves 3,656 kt contained (684,445 kt at 0.5%) M&I Copper Mineral Resources 7,574 kt contained (1,179,253 kt at 0.6%) Inferred C
Slide 20: Candelaria Copper Production Profile
Candelaria Copper Production Profile1 (kt) 190 190 192 194 184 182 175 171 175 167 156 160 152 151 146 146 135 136 125 114 96 84 69 45 10 4 4 4 4 2016A 2017A 2018A 2019A 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 December 2018 Technical R
Slide 21: Chapada – Mineral Resources and Mineral Reserves
Chapada – Mineral Resources and Mineral Reserves1 Ownership 100% Location Goiás State, Brazil Mine life +30 years 2020 exploration budget $7M 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 22: Chapada Production Profile
Chapada Production Profile1 120 100 Metal Production 80 60 40 20 0 2 3 3 3 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2019A Copper (kt) Gold (koz) 1. Production shown is based on the NI 43
Slide 23: 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 24: Neves-Corvo – Mineral Resources and Mineral Reserves
Neves-Corvo – Mineral Resources and Mineral Reserves1 Ownership 100% Location Alentejo region, Portugal Mine life +10 years 2020 exploration budget $2M 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 25: Zinkgruvan – Mineral Resources and Mineral Reserves
Zinkgruvan – Mineral Resources and Mineral Reserves1 Ownership 100% Location Askersund, Sweden Mine life +10 years 2020 exploration budget $7M 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 26: 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 27: www.lundinmining.com TSX: LUN Nasdaq Stockholm: LUMI
www.lundinmining.com | TSX: LUN | Nasdaq Stockholm: LUMI
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