Lundin Mining Corporation · TSX:LUN
Lundin Mining — TD Securities Mining Conference 2017
33 slides from Lundin Mining's conference presentation, Jan 19, 2017
Slide 1: TD Securities Mining Conference
TSX: LUN OMX: LUMI TD Securities Mining Conference January 19, 2017 Neves-Corvo, Portugal 1
Slide 2: Cautionary Statements
Cautionary Statements Caution Regarding Forward-Looking Information and Non-GAAP Performance Measures This presentation contains forward-looking information, including, but not limited to, guidance on estimated annual production and cash costs. This forward- looking information is not based on histo
Slide 3: Lundin Mining
Lundin Mining High Quality Competitive Mines Strong Margins and Meaningful Scale1 (operating margin, %) - positive operating cash flows at all operations through the low commodity 70% price environment 60% Meaningful Production Scale & Growth 50% Zinkgruvan Eagle - internal growth projects and explo
Slide 4: Geographically Diversified
Geographically Diversified Freeport Cobalt1 Cobalt Refinery Zinkgruvan (Finland) Zinc- Lead-Copper (Sweden) Eagle Nickel-Copper-PGMs (USA) Neves-Corvo Copper-Zinc (Portugal) Tenke Fungurume1 Copper-Cobalt (DRC) Candelaria2 Copper-Gold-Silver (Chile) 1. Lundin Mining holds an indirect 24% equity stak
Slide 5: Operating Highlights – 2016
Operating Highlights – 2016 Strong aggregate performance across all operations All mines generated operating cash flow through low commodity prices Candelaria copper production exceeded guidance on better than planned throughput and improving copper head grade Eagle achieved copper production guidan
Slide 6: Revenue Breakdown – Q3/16 YTD
Revenue Breakdown – Q3/16 YTD Majority of sales from Lead Other 3% 3% Candelaria Gold 7% Zinkgruvan 11% Nickel Good contribution from 9% each of Neves-Corvo, Eagle Eagle and Zinkgruvan 17% Candelaria 53% Copper Zinc 13% 65% 65% of sales derived Neves-Corvo 19% from copper Increasing contribution fro
Slide 7: Balance Sheet Strength and Flexibility
Balance Sheet Strength and Flexibility Net debt position improved by approximately $152M during 2016 to $290M $350M revolving credit facility amended at lower borrowing costs and extended to 2020 Approved quarterly dividend policy Cash and Cash Equivalents Liquidity Position (Dec. 31, 2016E) 35% $65
Slide 8: 2017 Production and Cash Cost Guidance
2017 Production and Cash Cost Guidance Attributable Production1 and C1 Cash Cost2 (kt and $/lb, net of by-products) Copper Candelaria (80%) 145,000 – 150,000 $1.20/lb Eagle 15,000 – 18,000 Neves-Corvo 41,000 – 46,000 $1.35/lb Zinkgruvan 1,900 – 2,000 Total Attributable 202,900 – 216,000 Nickel Eagle
Slide 9: 2017 Capital Expenditure and Exploration Guidance
2017 Capital Expenditure and Exploration Guidance Capital Expenditures1 (US$M) Total Capitalized Stripping2 105 2017 exploration budget of $65M Los Diques Facility 135 - near 40% increase over 2016 Other Candelaria Sustaining 15 - aggressive in-mine and near-mine programs Total Candelaria (100% basi
Slide 10: Candelaria
Candelaria Copper / Gold / Silver – Region III, Chile 10
Slide 11: Candelaria
Candelaria Copper Production & Cash Cost (100% basis; kt & $/lb Cu, net of by-product credits) 2016 copper production of 166.6 kt (100% basis) - exceed target on mill throughput performance Last Five Quarters - cash cost guidance of $1.35/lb 49.1 39.8 41.5 39.1 36.9 Increased production expected in
Slide 12: Candelaria LOM Production Profile
Candelaria LOM Production Profile Copper Production Profile1 (100% basis, kt Cu) 188 171 167 165 165 160 162 129 122 114 111 110 109 99 102 101 93 94 64 38 2016A 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 January 2017 Technical Report At Purchase (
Slide 13: Eagle
Eagle Nickel / Copper / PGMs – Michigan, U.S.A. 13
Slide 14: Eagle
Eagle Nickel, Copper Production & Cash Cost (kt & $/lb Ni, net of by-product credits) 2016 production of 23.4 kt copper and 24.1 kt nickel Last Five Quarters - met guidance on continued robust performance 7.1 6.2 6.8 6.0 6.0 6.1 5.6 5.8 5.7 5.2 - excellent margins even at low nickel prices - cash co
Slide 15: Eagle East – Potential Meaningful Addition to Profile
Eagle East – Potential Meaningful Addition to Profile Preliminary Economic Assessment on Eagle East completed in June 2016 Nickel Production Profile1 Copper Production Profile1 25 (kt) 25 (kt) 20 20 15 15 10 10 5 5 0 0 2016 2017 2018 2019 2020 2021 2022 2023 2016 2017 2018 2019 2020 2021 2022 2023 E
Slide 16: Neves-Corvo
Neves-Corvo Copper / Zinc – Portugal 16
Slide 17: Neves-Corvo
Neves-Corvo Copper, Zinc Production & Cash Cost (kt & $/lb Cu, net of by-product credits) 2016 production of 46.6 kt copper and 69.5 kt zinc - zinc plant stable with improved recoveries Last Five Quarters 17.7 18.3 17.6 - initiatives underway to improve copper recoveries in 15.9 complex ore zones 14
Slide 18: Zinkgruvan
Zinkgruvan 18 Zinc / Lead / Copper – Sweden
Slide 19: Zinkgruvan
Zinkgruvan Zinc, Lead Production & Cash Cost (kt & $/lb Zn, net of by-product credits) 2016 production of 78.5 kt zinc and 1.9 kt copper Last Five Quarters - cash cost guidance of $0.40/lb zinc 25.3 22.7 18.8 19.8 Increased zinc production targeted for 2017 of 80-85 kt 17.3 10.7 10.8 6.4 7.1 7.4 $0.
Slide 20: Tenke Fungurume
Tenke Fungurume 20 Copper / Cobalt – DRC
Slide 21: Tenke Fungurume
Tenke Fungurume Q3/16 YTD production of 161.7 kt copper and 12.7 kt cobalt (100% basis) Copper, Cobalt Production & Cash Cost (100% basis; kt & $/lb Cu, net of by-product credits) - record copper production in Q3/16 Last Five Quarters - cash cost of $1.27/lb copper in line with full year 56.3 guidan
Slide 22: Appendices
TSX: LUN OMX: LUMI Appendices 22
Slide 23: Production Outlook
Production Outlook1 2017 2018 2019 Copper Candelaria (80%) 145,000 – 150,000 131,000 – 136,000 126,000 – 131,000 Eagle 15,000 – 18,000 14,000 – 17,000 14,000 – 17,000 Neves-Corvo 41,000 – 46,000 42,000 – 47,000 45,000 – 50,000 Zinkgruvan 1,000 – 2,000 2,000 – 3,000 3,000 – 4,000 Total Attributable2
Slide 24: 2016 Guidance
2016 Guidance Attributable Production1 and C1 Cash Cost2 (kt and $/lb, net of by-products) Capital Expenditures3 (US$M) Copper Candelaria (80%) 130,000 – 132,000 $1.35/lb Capitalized Stripping4 35 Eagle 22,000 – 24,000 Los Diques Faciltiy 60 Neves-Corvo 48,000 – 51,000 $1.55/lb Other Sustaining 15 Z
Slide 25: Candelaria Complex
Candelaria Complex Ownership 80% Location Region III, Chile Mine life +15 years 2017 exploration budget ~$32M P&P copper reserves 2,604 kt contained (482,533 kt @ 0.5%) M&I copper resources 4,428 kt contained (688,987 kt @ 0.6%) Inferred copper resources 541 kt contained (61,589 kt @ 0.9%) P&P gold
Slide 26: Candelaria – Los Diques Construction
Candelaria – Los Diques Construction As at October 5, 2016 26
Slide 27: Eagle Mine and Eagle East Overview
Eagle Mine and Eagle East Overview Ownership 100% Location Michigan, USA Mine life 7 years 2017 exploration budget ~$16M P&P nickel reserves 95 kt contained (3,717 kt @ 2.5%) M&I nickel resources 119 kt contained (3,671 kt @ 3.3%) P&P copper reserves 82 kt contained (3,717 kt @ 2.2%) M&I copper reso
Slide 28: Eagle and Eagle East Overview
Eagle and Eagle East Overview 28
Slide 29: Neves-Corvo Overview
Neves-Corvo Overview Ownership 100% Location Alentejo region, Portugal Mine life +10 years 2017 exploration budget ~$3M P&P zinc reserves 1,678 kt contained (23,449 kt @ 7.2%) M&I zinc resources 6,527 kt contained (106,819 kt @ 6.1%) Inferred zinc resources 499 kt contained (11,386 kt @ 4.4%) P&P co
Slide 30: Zinkgruvan Overview
Zinkgruvan Overview Ownership 100% Location Askersund, Sweden Mine life +10 years 2017 exploration budget ~$5M P&P zinc reserves 861 kt contained (10,770 kt @ 8.0%) M&I zinc resources 1,511 kt contained (16,090 kt @ 9.4%) Inferred zinc resources 653 kt contained (7,862 kt @ 8.3%) P&P lead reserves 3
Slide 31: Tenke Fungurume Overview
Tenke Fungurume Overview Ownership 24% indirect equity interest Location Southeast region, DRC Mine life +40 years P&P copper reserves 3,760 kt contained (144,362 kt @ 2.6%) M&I copper resources 16,857 kt contained (680,341 kt @ 2.5%) Inferred copper resources 11,594 kt contained (531,651 kt @ 2.2%)
Slide 32: NI 43-101 Compliance
NI 43-101 Compliance Unless otherwise indicated, Lundin Mining Corporation has prepared the technical information in this presentation (“Technical Information”) based on information contained in the technical reports and news releases (collectively the “Disclosure Documents”) available under Lundin
Slide 33: TSX: LUN OMX: LUMI
TSX: LUN OMX: LUMI 33