Slide 1: Second Quarter Results 2011
1 August 02, 2011 TSX: LUN TSX OMX: LUMI Second Quarter Results 2011
Slide 2: Cautionary Statements
2 Cautionary Statements Caution Regarding Forward Looking Statements This presentation contains forward-looking statements. These forward-looking statements are not based on historical facts, facts but rather on current expectations and projections about future events. events These forward- looking
Slide 3: Presenters
3 Presenter PAUL CONIBEAR PRESIDENT & CEO Q ti Questions JOAO CARRELO EXEC. VP & COO MARIE INKSTER CFO NEIL O’BRIEN Sr. VP Exploration / New Business
Slide 4: Q2 Highlights
4 Q2 Highlights Net Income: $57.7 million ($0.10 p/s) vs $42.3 $42 3 m ($0 ($0.07 07 p/s) Q1 2010 Copper pp production p below expectations: p lower ggrades and maintenance shutdown Zinc prod’n in-line: shortfall at Zinkgruvan offset by higher production at Galmoy Currencies: Euro 13%, SEK 1
Slide 5: Normalized Earnings
5 Normalized Earnings $ Millions 2011 2010 Q2 '11 Q2 '10 Reported Net Income 128.9 94.1 57.7 42.3 Foreign exchange 16.2 (18.8) 0.1 (10.2) C Corporate t development d l t (I (Inmet/Equinox) t/E i ) 57 5.7 - 09 0.9 - Mark to market on securities (0.4) (17.4) 2.0 (1.7) Gain on derivative contracts - (1
Slide 6: Financial Position
6 Financial Position Net cash at June 30, 2011 of $308 $ million, an increase of $46 $ million for the quarter and $200 million from the same quarter last year. Change in net cash during the quarter takes into account: $47.3 $47 3 million illi outflow tfl ffor capital it l expenditures dit $
Slide 7: Change in Production: Q2 '11 and Q2 '10
7 Change in Production: Q2 ‘11 and Q2 ‘10 Tonnes 2,208 8,216 25,000 21,774 20,000 503 1,432 13,831 Coppper 15,000 10,000 Excluding Tenke 7,398 5,000 attributable share - Q2 2010 Throughput Grade RecoveryAguablanca Q2 2011 Tonnes Tonnes 27,404 927 910 243 11,400 299 28 000 28,000 2 279 2,279 10 9 3 1
Slide 8: Cash Costs: Q2 2011 and Q2 2010
8 Cash Costs: Q2 2011 and Q2 2010 Cash cost per lb of primary metal (US dollars) (local currency) Q2 '11 Q2 '10 Q2 '11 Q2 '10 Neves-Corvo Gross cost 2.17 1.27 1.51 1.01 (Local in €) By product* By-product (0 04) (0.04) (0 07) (0.07) (0 03) (0.03) (0 05) (0.05) Copper Net cost 2.13 1.20 1.48 0.96 Zin
Slide 9: Financial Results
9 Financial Results Selected Financial Information: $ Millions Q2 '11 Q2 '10 Sales 184 183 1% Operating costs (96) (96) 0% p G&A and stock-based compensation (6) (5) 20% Operating Earnings 82 82 0% Add (deduct): Depreciation, amortization (38) (32) Selected items only Exploration/project p p j inves
Slide 10: Change in Operating Earnings: Q2 '11 & Q2 '10
10 Change in Operating Earnings: Q2 ‘11 & Q2 ‘10 Lundin Mining - Consolidated 180.0 160 0 160.0 140.0 59.9 22.5 120.0 14.2 100.0 25.8 6.6 3.9 82.2 $millions 82.1 80.0 60.0 40.0 20.0 - Q2 2010 Volume Price & Adj. Cost FX Closures Aguablanca Q2 2011 Actual
Slide 11: Tenke Production
11 Tenke Production 100% basis 2011 2010 Q2 '11 Q2 '10 Copper cathode (tonnes) Production 14,906 14,158 7,398 7,038 Sales , 15,123 13,556 , 8,449 , 6,187 , Average realized price/lb $ 4.11 $ 3.12 $ 4.08 $ 2.96 Cobalt (contained tonnes) Production 1,378 961 687 409 Sales 1,485 790 831 425 Average rea
Slide 12: Tenke Investment
12 Tenke Investment $ Millions 2011 2010 Q2 '11 Q2 '10 Income from investment 56.9 22.8 32.0 8.3 Excess Overrun Facility Change (76.4) (38.2) (38.6) (26.8) Closingg balance 32.0 188.9 32.0 188.9 Attributable Cash Flow Cash advances to Tenke ((15.8)) ((14.4)) ((10.5)) ( ) (6.8) Repayment on EOC 76.4
Slide 13: Outlook – Revised Guidance
13 Outlook – Revised Guidance (contained tonnes) Revised 2011 Guidance Previous 2011 Guidance Tonnes C1 Cost Tonnes C1 Cost Neves Corvo Neves‐Corvo Cu 72,000 72 000 $1 65 $1.65 76,000 76 000 $1 40 $1.40 Zn 6,000 25,000 Zinkgruvan Zn 78,000 $0.21 78,000 $0.15 Pb 36,000 , 38,000 , Cu 3,400 3,400 Galmo
Slide 14: Current Growth Initiatives
14 Current Growth Initiatives Neves Zinc Expansion – 50,000 50 000 tpa Startup on time, on budget. Circuit will run with copper ore for balance of year - better margins Materials handling g studyy for future Lombador Phase 1 (100,000 tpa Zn) Study substantially complete Undergoing peer
Slide 15: Neves Corvo – Multiple Growth Projects
15 Neves Corvo – Multiple Growth Projects Surface Zambujal j Graça Neves 1.2 km Corvo Lombador South Phase 1 Lombador North Underground Development Lombador Semblana East Phase 2
Slide 16: Current Growth Initiatives
16 Current Growth Initiatives Zinkgruvan – Optimization: Mine is outperforming mill Targeting record throughput Aguablanca Restart: New mine contractor working Underground study initiated Belmore, Clare Project: High grade silver, lead, zinc Acquisition complete Tenke Expansion:
Slide 17: Questions
17 Questions PAUL CONIBEAR PRESIDENT & CEO JOAO CARRELO EXEC. VP & COO MARIE INKSTER CFO NEIL O’BRIEN SNR. VP EXPLORATION / BD