Slide 1: Second Quarter Results 2009
August 6, 2009 TSX: LUN TSX OMX: LUMI Second Quarter Results 2009
Slide 2: Cautionary Statements
Cautionary Statements Caution Regarding Forward Looking Statements This ppresentation contains forward-lookingg statements. These forward-lookingg statements are not based on historical facts, but rather on current expectations and projections about future events. These forward-looking statements ar
Slide 3: Presenter and Questions
Presenter PHIL WRIGHT PRESIDENT & CEO Questions JOAO CARRELO EXEC. VP & COO MARIE INKSTER CFO Corporate Operations Projects Exploration Growth
Slide 4: Significant Q2 Highlights
Significant Q2 Highlights Unaudited net income of $43$43.55 million ($0.08 ($0 08 per share) showing a strong rebound from last quarter (loss of $0.02 per share) Operating p g earnings g $91 $ million vs $137 million in Q2 2008 – pprice and pprice adjustments account for a reduction of $87 mill
Slide 5: Financial Position
Financial Position The Company completed the restructuring of its credit agreement Net debt at June 30, 2009 is $110.7 million, down from a net debt of $259.5 at March 3131, 2009 and a net debt position of $145.5 $145 5 million at December 31 31, 2008 2008. The decrease during the quarter was at
Slide 6: Production & Metal Prices: Q2'09 and Q2'08
Production & Metal Prices: Q2’09 and Q2’08 Production Average LME Prices (tonnes) (US$/lb, US$/t) Q2 2009 Q2 2008 Q2 2009 Q2 2008 Copper 23,992 23,478 2.12 3.83 4,676 8,448 Zinc 31,962 41,622 0.67 0.96 1 476 1,476 2 115 2,115 Lead 12,478 12,397 0.68 1.05 1,506 2,316 Nickel 1,960 1,954 5.89 11.67 12,
Slide 7: Cash Costs: Q2'09 and Q2'08
Cash Costs: Q2’09 and Q2’08 Cash costs lb Cash costs lb (US cents) (local currency) Q2 2009 Q2 2008 Q2 2009 Q2 2008 Neves-Corvo Gross cost 112 130 82 84 (Local in € cents) Byproduct* (2) (15) (2) (10) Net cost 110 115 80 74 Zinkgruvan Gross cost 63 93 498 562 (Local in SEK) Byproduct* Byproduct (37)
Slide 8: Second Quarter: Financial Results
Second Quarter: Financial Results Selected Quarterly Financial Information: $ Millions Q2 2009 Q2 2008 Sales 194.8 294.1 Operating p g Earnings g 91.0 137.2 Add (deduct): General Exploration (4.1) (8.6) Depreciation, Amortization (38.5) (55.0) Forex 13.4 (2.4) Interest & bank charges (4.4) (3.8) Der
Slide 9: Change in Operating Earnings
Change in Operating Earnings Corporate Operations Projects Exploration Growth
Slide 10: Change in Operating Earnings
Change in Operating Earnings Corporate Operations Projects Exploration Growth
Slide 11: Tenke Project – 24.75% equity interest
Tenke Project – 24.75% equity interest Construction of $1.8 $1 8 billion project substantially complete First shipment of copper cathode in April; First saleable cobalt produced in May Full annual capacity of 115,000 tonnes of copper and 9,000 tonnes of cobalt expected to be reached in second
Slide 12: Other Projects
Other Projects NEVES-CORVO: NEVES CORVO: COPPER TAILS New circuit commissioned on-time and below budget NEVES-CORVO: NEVES CORVO: ZINC EXPANSION AND LOMBADOR COPPER/ZINC Zinc expansion designed to produce minimum of 50,000 tpa is restarted: first pproduction expected p Q1 2011;; estimated cost o
Slide 13: Outlook
Outlook 2009 production guidance increased marginally: 91 91,000 000 tonnes copper (excluding ( l di T k ), Tenke) 100,000 tonnes zinc, 40,000 tonnes lead and 7,200 tonnes nickel Base metal prices rebounded strongly in quarter - the Company remains cautious in the short term with a continued foc
Slide 14: Questions
Questions PHIL WRIGHT PRESIDENT & CEO JOAO CARRELO EXEC. VP & COO MARIE INKSTER CFO Corporate Operations Projects Exploration Growth