Slide 1: Results 2010
1 February 24, 2011 TSX: LUN TSX OMX: LUMI Results 2010
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 PHIL WRIGHT PRESIDENT & CEO Q ti Questions JOAO CARRELO EXEC. VP & COO MARIE INKSTER CFO PAUL CONIBEAR SVP CORP DEVELOPMENT Corporate Operations Projects Exploration Growth
Slide 4: Highlights
4 Highlights Net Income $ $317.1 million ($ ($0.55 p p/share), ), well ahead of last yyear’s $73.7 million ($0.13 per share) Average metal prices 24% to 48% higher than last year. Euro 4% weaker, S 6% SEK % stronger (annual ( averages)) against US S dollar. Production below prior year owing t
Slide 5: Normalized Earnings
5 Normalized Earnings $ Millions 2010 2009 Q4 '10 10 Q4 '09 09 Reported Net Income 317.1 73.7 144.6 35.1 Derivative (gains) losses (10.2) 61.5 - 27.4 (G i ) lloss on sale (Gain) l off assets t (48.4) 6.7 (10.4) (12.0) Royalty charge related to 2008 8.1 - - - Long-lived asset impairment - 53.0 - 53.0
Slide 6: Financial Position
6 Financial Position Net cash at December 31, 2010 of $159.2 $ million, an increase of $33.5 $ million for the quarter and $208.5 million for the year. The Th change h in i nett cashh during d i theth year ttakes k iinto t account:t $83.8 million proceeds from the sale of AFS securities and in
Slide 7: 2010 Production Vs. Guidance
7 2010 Production Vs. Guidance Actuals Guidance Tonnes C1 Tonnes C1 Neves-Corvo Cu 74,011 $ 1.33 75,000 $ 1.30 Zn 6 422 6,422 6 000 6,000 Zinkgruvan Zn 72,206 $ 0.22 75,000 $ 0.30 Pb 36,636 36,000 Aguablanca Ni 6,296 6,150 Cu 5,484 5,200 Galmoy Zn 11 501 11,501 12,000 (in ore) Pb 2,932 4,000 Total C
Slide 8: Change in Production: 2010 and 2009
8 Change in Production: 2010 and 2009 Tonnes Tonnes 100 000 100,000 93,451 3,562 9 000 9,000 8,029 2,004 10,556 90,000 80,035 8,000 pper Nicckel 702 Cop 80 000 80,000 7 000 7,000 377 6 296 6,296 106 70,000 Excluding Tenke 29,767 6,000 (2009 – 17,325) 60 000 60,000 5 000 5,000 2009 Throughput Grade R
Slide 9: Cash Costs: 2010 and 2009
9 Cash Costs: 2010 and 2009 Cash cost per lb of primar primary metal US dollars (local currency) 2010 2009 2010 2009 Neves-Corvo Gross cost 1.40 1.16 1.06 0.83 (Local in €) By-product* (0.07) (0.02) (0.05) (0.02) Copper Net cost 1 33 1.33 1 14 1.14 1 01 1.01 0 81 0.81 Zinkgruvan Gross cost 0.79 0.69
Slide 10: 2010 Net Sales Contribution By Metal
10 2010 Net Sales Contribution By Metal Lead 8% Other 2% Copper 66% Nickel 11% Zinc 13% Note: Inclusion of attributable Tenke share in the above would substantially increase the contribution of copper. copper Corporate Operations Projects Exploration Growth
Slide 11: Change in Metal Prices: 2010 and 2009
11 Change in Metal Prices: 2010 and 2009 Year ended Dec 31 Qtr ended Dec 31 Average LME 2010 2009 2010 2009 Copper $/lb 3.42 2.34 46% 3.92 3.01 30% Lead $/lb 0.97 0.78 24% 1.08 1.04 4% Zinc $/lb 0.98 0.75 30% 1.05 1.00 5% Nickel $/lb 9.89 6.67 48% 10.70 7.96 35% EUR/USD (Avg) 1.33 1.39 -4% 1.36 1.48
Slide 12: Financial Results
12 Financial Results Selected Financial Information: $ Millions 2010 2009 Q4 '10 Q4 '09 Sales 849 746 14% 309 257 Operating costs including ARO (371) (347) 7% (113) (101) p G&A and stock-based compensation ((21)) ((26)) -19% ((5)) ( ) (4) Operating Earnings 457 373 23% 191 152 Add (deduct): Deprecia
Slide 13: Change in Operating Earnings: 2009 to 2010
13 Change in Operating Earnings:2009 to 2010 211.8 91.8 550.0 500.0 15.0 4.7 456.6 450.0 $millions 400.0 373.2 46.9 350.0 300.0 YTD Dec Volume Price & Cost FX Closures YTD Dec 2009 Adj. 2010 Corporate Operations Projects Exploration Growth
Slide 14: Tenke Production
14 Tenke Production Lundin attributable 24.75% 2010 2009 Q4 '10 Q4 '09 Copper cathode (tonnes) Production 29,767 17,325 7,907 7,227 Sales 29 435 29,435 14 655 14,655 7 701 7,701 7 223 7,223 Average realized price/lb $ 3.45 $ 2.85 $ 4.05 $ 3.12 Cobalt (contained tonnes) Production 2,283 n/a 723 n/a S
Slide 15: Tenke Investment
15 Tenke Investment $ Millions 2010 2009 Q4 '10 Q4 '09 Income from investment 78.6 0.3 35.6 5.6 Excess Overrun Facility (Repa ments) Draws (Repayments) Dra s (118.7) (118 7) 164.22 164 (40 4) (40.4) 69 6.9 Closing balance 108.4 227.1 Attributable Att ib t bl Cash C h Flow Fl Cash advances to Tenke (
Slide 16: Outlook
16 Outlook 2011 Guidance 2010 Actuals Same mine comparison i.e. excludes Aguablanca T Tonnes C1 Tonnes C1 Neves-Corvo Cu 76,000 $ 1.30 74,011 $ 1.33 Zn 25 000 25,000 6 422 6,422 Zinkgruvan Zn 78,000 $ 0.15 72,206 $ 0.22 Pb 38,000 , 36,636 , Cu 3,400 540 Galmoy Zn 17,000 11,501 (in ore) Pb 6,000 2,93
Slide 17: Outlook
17 Outlook Production g guidance for 2011 unchanged g ((lower C1 at Zinkgruvan) g ) Plans for 2011 indicate: copper production of 110,000 tonnes, including our attributable share of Tenke; zinc production of 120,000 tonnes; and lead production of 44,000 tonnes. Capex guidance for 2011 around $
Slide 18: Symterra: Established Mines, World Class Growth Projects
18 Symterra: Established Mines, 2 World Class Growth Projects 100% Las Cruces 100% Zinkgruvan +14 year LOM +10 year LOM 100% Neves‐Corvo +10 year LOM 100% Pyhäsalmi P hä l i +8 year LOM Growth Projects Legend 100% Neves‐Corvo Lundin Mining Semblana Inmet Mining 100% Çayeli Lombador Head Office +7 ye
Slide 19: Symterra: New Canadian Senior Growth Story
19 Symterra: New Canadian Senior Growth Story • Strong cash flow from portfolio of low cost, cost long life producing mines • Two world class development projects • Cash C h resources in i excess off $1 $1.33 billion billi andd strong t ongoing i cashh flflow • Leading copper growth profile • High l
Slide 20: Questions
20 Questions PHIL WRIGHT PRESIDENT & CEO JOAO CARRELO EXEC. VP & COO MARIE INKSTER CFO PAUL CONIBEAR SVP CORP DEVELOPMENT Corporate Operations Projects Exploration Growth