Lundin Mining Corporation · TSX:LUN
Lundin Mining — Investor Presentation (December 2024)
59 slides from Lundin Mining's investor presentation, December 2024
Slide 1: Disciplined Copper Growth at Scale
Disciplined Copper Growth at Scale Corporate Presentation TSX: LUN NASDAQ STOCKHOLM: LUMI December 2024
Slide 2: Cautionary Statements
Cautionary Statements Caution Regarding Forward-Looking Information and Non-IFRS Performance Measures Certain of the statements made and information contained herein are “forward-looking information” within the meaning of applicable continuity of mineral deposits including but not limited to models
Slide 3: Overview
Overview Company Overview 4 Divestiture of Neves-Corvo & Zinkgruvan 10 Joint acquisition of Filo and Partnership on the Josemaria Project 14 Operations 18 Filo del Sol & Josemaria Projects 25 Vicuña District 36 Sustainability 39 Financial Performance 43 Production & Cost Guidance 50 Exploration 53 M
Slide 4: Company Overview
Company Overview Purpose-built team to deliver results
Slide 5: Company Overview
Company Overview 2023 Cu Production1 315kt Zn Ni Au 2023A ▪ 6 assets, 75% copper ▪ Record Cu | Zn production ▪ Annualized dividend2 of 2.8% 185kt 16kt 149koz ▪ Net debt: $1,542M3 2023 Financial Summary $3.4B $1.4B $345M $206M revenue adj. EBITDA4 FCF from ops4 1. For more information, please refer t
Slide 6: 2024 Production Guidance & Key Milestones
2024 Production Guidance1 & Key Milestones 2024 Cu 366 – 389 kt Cu Zn Ni Au 190 – 199 kt 7 – 9 kt 155 – 170 koz Key Milestones ▪ Completed: Copper production growth from Caserones ownership option (19%) ▪ Announced: Acquisition of Filo & partnership of the Josemaria Project (Q1 2025 close) ▪ Announc
Slide 7: Delivering on our Strategy
Revenue: $3,392M Delivering on our Strategy Disciplined copper growth at scale Acquired Reserves 406% Caserones Acquired Production 183% Sold Tenke Acquired Josemaria 1600 Revenue 366% Chapada 1400 10,630 kt 1200 Acquired 8,410 kt 1000 Candelaria 800 Revenue: 6,227 kt 6,249 kt 6,018 kt $728M 600 4,5
Slide 8: Track Record of Mineral Resource Growth
Track Record of Mineral Resource Growth1,2 Exploration has been a core value driver for Lundin Mining 320 Candelaria Cu % 101 Neves Corvo Cu % Acquisition year: 2014 Acquisition year: 2006 1,390 60 % % Zinkgruvan Zn Eagle Ni Acquisition year: 2004 Acquisition year: 2013 Zinkgruvan 1. Growth in M&I c
Slide 9: Capital Return to Shareholders
Capital Return to Shareholders ▪ +$1.1 billion returned to shareholders via dividends and share buybacks since 2017 ▪ Annualized dividend1 of C$0.36/sh or 2.8% $335M Shareholder Returns2 (US$M) $268M $206M $99M $88M $68M $67M 2017 2018 2019 2020 2021 2022 2023 Candelaria 1. For more information, ple
Slide 10: Divestiture of Neves-Corvo & Zinkgruvan
Divestiture of Neves-Corvo & Zinkgruvan Transaction Highlights
Slide 11: Transaction Overview
Transaction Overview: $1.52B in total consideration1 to Lundin Mining $1.37B upfront consideration for 100% of Neves-Corvo & Zinkgruvan Up to $150M in contingent value 1. Lundin Mining will receive upfront cash consideration of $1.37 billion upon closing, based on a cash-free and debt-free enterpris
Slide 12: Transaction Rationale
Transaction Rationale Delivering on our strategy ▪ Unlocks substantial Financial Strength and accelerates cashflows ▪ Re-frames Lundin Mining as a pure-play copper miner ▪ Focuses Lundin Mining’s growth story in the Vicuña District Zinkgruvan Lundin Mining Corporate Presentation 2024 12
Slide 13: Transaction Consideration
Transaction Consideration Delivering on our strategy ▪ Upfront total cash consideration of $1,370M for 100% of Neves-Corvo and Zinkgruvan ▪ Up to $150M in contingent payments ▪ $100M of contingent value for Neves-Corvo linked to metal prices1 ▪ $50M of contingent value for Zinkgruvan linked to zinc
Slide 14: Joint acquisition of Filo & Partnership on the Josemaria Project
Joint acquisition of Filo & Partnership on the Josemaria Project Transaction Highlights
Slide 15: Transaction Overview
Transaction Overview: Expected to close in Q1 2025 Cash consideration for 50% of Josemaria 50% 50% New Joint Venture 100% 100% Filo Del Sol Project Project Lundin Mining Corporate Presentation 2024 15
Slide 16: Transaction Rationale
Transaction Rationale Delivering on our strategy ▪ Consolidates the Vicuña district, creating a leading platform in one of the most geologically prospective regions in the world ▪ Transforms Lundin Mining’s growth story ▪ Establishes a partnership with BHP, an industry leader with project, operation
Slide 17: Balance Sheet Considerations
Balance Sheet Considerations Strong financial position Q3 2024 Recap1 ▪ Net debt: US$1.5 billion – 0.9x leverage ratio ▪ Liquidity headroom of US$1.4 billion Deal Impact ▪ Cash receipt of US$690 million for 50% sale of Josemaria ▪ Cash payment of C$859 million2 for cash consideration to Filo Shareho
Slide 18: Operations
Operations Six operating assets with over 75% of our revenue coming from copper
Slide 19: 2024 Production: 378 kt Cu | 195 kt Zn
Eagle2 2024 Production: 2 Ni Cu 7kt Cu Co PGM 8kt Ni 378 kt Cu | 195 kt Zn Copper focused base metal producer Corporate Office Zinkgruvan2 ▪ Diversified asset base in the Candelaria1,2 Zn Pb Cu 81kt Zn Americas and Europe Cu Cu 169kt Cu 97koz Au Au Au ▪ Largest zinc producer in Europe Neves-Corvo2 ▪
Slide 20: Candelaria
Atacama / Vicuña District (Chile) Candelaria ▪ Acquired in 2014 for $1.8 billion – Increased LOM by 18 years and M&I resources by 175%1 ▪ Water requirements met through desalinated sea water ▪ Mine plan optimization underway for the Candelaria Underground Expansion Project (CUGEP) Overview 2024 Guid
Slide 21: Caserones
Vicuña District / Atacama (Chile) Caserones ▪ 51% interest acquired in 2023 for $950M – Increased ownership to 70% for $350M which would add ~25 kt attributable copper/yr ▪ Large-scale, long-life copper-molybdenum operation ▪ Proximity to Candelaria and Josemaria introduces opportunities to realize
Slide 22: Caserones Near-term Copper Growth Opportunity
Vicuña District / Atacama (Chile) Caserones Near-term Copper Growth Opportunity Caserones Announced in Q2 | Closed July 2, 2024 Caserones1 ▪ Early exercise to increase ownership to 70% for $350M Increase in Attributable Total Cu Production completed Copper Production (kt) Attrib. Cu Production 139 ▪
Slide 23: Chapada (Copper/Gold)
Chapada (Copper/Gold) Location Brazil Overview Ownership 100% ▪ Acquired in 2019 for $800M Reserves (P&P) 1,395 kt Cu ▪ Processing capacity of 65,000 tpd or 24 Mtpa Grade 0.23 | 0.12 ▪ Exploration focused on Sauva and high-grade targets (Cu% | Au g/t) near mine Mine Life +25 yrs. Mine Type OP Throug
Slide 24: Eagle (Nickel)
Eagle (Nickel) Location USA Overview Ownership 100% ▪ Acquired in 2013 for $325M, production commenced in 2014 – highly profitable mine Reserves (P&P) 51 kt Cu ▪ Only primary nickel mine in the U.S. Grade (Ni%) 1.26% ▪ Efficient mine operated by high-performing workforce Mine Life ~5 yrs. ▪ Continue
Slide 25: Filo del Sol & Josemaria Projects
Filo del Sol & Josemaria Projects Vicuña District Data contained in this section was sourced from publicly available information on the Filo Corp. website (www.filocorp.com). and on SEDAR+ at www.sedarplus.com under Filo Corp.’s profile. For further information please also see Filo’s corporate prese
Slide 26: Long History in the Area
Long History in the Area Pipeline Atacama Region & Vicuña District ▪ Two operating mines NGEx ▪ Port and desalination plant in the NGEx Los Helados Lunahuasi region Filo del Sol ▪ Strategic partnership and infrastructure to leverage assets Lundin Mining Corporate Presentation 2024 26
Slide 27: Vicuña District
Vicuña CASERONES District Operating mine Vicuña District A closer look NGEx Los Helados ▪ Cluster of 4 known deposits and 1 recent discovery - Scale, geological structure and grade NGEx JOSEMARIA Lunahuasi Development Project ▪ Caserones – large open pit with conventional crush, grind, flotation cir
Slide 28: Filo del Sol Project
Filo del Sol Project High-sulphidation epithermal copper-gold-silver deposit associated with a large porphyry system Overview ▪ Located in San Juan, Argentina & Chile ▪ Existing resource estimate focusing on oxide mineralization ▪ Geological interpretation changed with drill hole FSDH041 – 858m of 1
Slide 29: Location
Location Approximately 10 km away from the Josemaria project located in San Juan, Argentina S N 10 km Vicuna District Junction Distances and scale approximate for illustrative purposes only. Lundin Mining Corporate Presentation 2024 29
Slide 30: Vicuña District – Size, Scale & Grade
Vicuña District – Size, Scale & Grade Filo del Sol deposit – mineralization over a 5 km strike length 5.0 km Filo del Sol Deposit Lundin Mining Corporate Presentation 2024 See reference point on next slide. 30 Distances and scale approximate for illustrative purposes only.
Slide 31: 5.0 km
5.0 km Lundin Mining Corporate Presentation 2024 31
Slide 32: Filo del Sol Project
Filo del Sol Project Mineralization over a 5 km strike length Drill Highlights FSDH041: FSDH054: Total intercept of Total intercept of 858m @ 1.80% CuEq 1,224m @ 1.26% CuEq FSDH055C: FSDH057: Total intercept of Total intercept of 1,338m @ 1.33% CuEq 11.1m @ 17.6% CuEq FSDH064: FSDH067: Total interce
Slide 33: Josemaria Project
Josemaria Project Advanced stage development asset ~11 km from Filo ▪ Unlocks the Vicuña District on the Argentinian ▪ RIGI passed in July 2024 – Foreign investment side incentive bill, basis for fiscal stability ▪ Feasibility Study completed in 2020, trade off agreements and investment studies unde
Slide 34: Josemaria and Filo del Sol Projects
Josemaria and Filo del Sol Projects District development opportunity ▪ Undertake trade off studies, engineering and permitting ▪ Potential for shared process plant and major infrastructure including TSF, roads, and powerlines ▪ Assess combined land package for ideal placement of major infrastructure
Slide 35: Next Steps
Next Steps Deal expected to close in early 2025 ▪ Targeting the closing of the Filo transaction and Joint Venture early next year ▪ Drilling to continue at Filo ▪ Further updates on work plans to be provided in early 2025 Josemaria Project Lundin Mining Corporate Presentation 2024 35
Slide 36: Vicuña District
Vicuña District Size, Scale & Grade
Slide 37: Vicuña District – Size, Scale & Grade
Vicuña District – Size, Scale & Grade Giant footprints make for giant mining districts BOLIVIA El Abra Spence Gaby Collahuasi Alteration Mantos Blancos Operating mine footprint of Chuquicamata large mines CHILE Operating mine El Salvador Escondida compared to Inca de Oro Operating mine Vicuña Manto
Slide 38: Vicuña District – Size, Scale & Grade
Vicuña District – Size, Scale & Grade The Vicuña district has the potential to compete with the world’s largest mining complexes 2024E Top Ten Copper Mines By Production (100% basis) 1,200 900 Copper (kt/yr) 600 300 0 Morenci Los Polar Antamina Cerro Verde Buenavista Kamoa Collahuasi Grasberg Escond
Slide 39: Sustainability
Sustainability Focused on the Future
Slide 40: Responsible Mining
Responsible Mining ▪ Ambitious but achievable goal to reduce Scope 1 & 2 GHG absolute emissions by 35% by 20301 Zinkgruvan, Wind Farm, Sweden Scope 2 emissions benefit from Zinkgruvan’s investment in renewable electricity since 2017 Lundin Mining Corporate Presentation 2024 1. Compared to 2019 basel
Slide 41: Responsible Mining
Candelaria, Punta Padrones Port & Desalination Plant, Chile Responsible Mining ▪ Leading ISS Environment & Social Quality Scores ▪ Carbon Disclosure Project (“CDP”) score of ‘B’, above industry and North American averages ▪ Candelaria’s freshwater demands met through sea water desalination facility
Slide 42: Alignment with Best Practices
Alignment with Best Practices ▪ Under the Responsible Mining Framework, we commit to develop and implement management systems and operating practices that take into consideration applicable international guidelines, including: Strong CDP performance, earning a score of ‘B’ • We report annually to th
Slide 43: Financial Performance
Financial Performance Strong financial position to fund growth initiatives Lundin Mining Corporate Presentation 2024
Slide 44: Delivering on Results – 2023 Full Year
Delivering on Results – 2023 Full Year 315ktCu 185ktZn 16ktNi PRODUCTION Record consolidated annual Cu Record Zn production from Above original 2023 guidance2 production in 20231,2 expansion initiatives in 20232 15%Cu 10%Zn $1.0B OUTLOOK Estimated YoY increase in Cu Estimated YoY increase in Zn 2024
Slide 45: Q3 2024 Balance Sheet YTD Summary
Q3 2024 Balance Sheet YTD Summary $3.1B Revenue (2024 YTD) $1.3B $407M Adjusted EBITDA1 (2024 YTD) FCF from Operations1 (2024 YTD) $1.5B Net debt1,2 0.9X Net Debt/Adjusted EBITDA1,2 (LTM) $1.4B Existing liquidity1 (including undrawn credit facility) 1. For the nine months ended September 30, 2024. A
Slide 46: Q3 2024 Highlights
Q3 2024 Highlights 100ktCu Quarterly Cu production in 20241 47ktZn Quarterly Zn production in 20241 $458M Adjusted EBITDA in Q3 20242 $305M Adjusted Operating Cash Flow in C$0.09/sh Quarterly dividend yield (annualized dividend of C$0.36/sh)3 Q3 20242 1. Q3 2024 consolidated copper and gold producti
Slide 47: Q3/24 Production Results
Q3/24 Production Results Copper Q3 production of 100 kt Revised Q1 Q2 Q3 Guidance Range 103 100 88 88 kt 80 kt 100 kt 366 kt 389 kt 80 268 kt YTD Q4/23 Q1/24 Q2/24 Q3/24 Gold Q3 production of 47 koz Annual 47 Q1 Q2 Q3 Guidance Range 44 33 32 33 koz 32 koz 47 koz 155 koz 170 koz 112 koz YTD Candelari
Slide 48: Q3/24 Production Results
Q3/24 Production Results Zinc Q3 production of 47 kt Revised Q1 Q2 Q3 Guidance Range 51 47 47 46 46 kt 47 kt 47 kt 190 kt 199 kt 17 140 kt YTD 30 Zinkgruvan Neves-Corvo Q4/23 Q1/24 Q2/24 Q3/24 Nickel Q3 production of 0.9 kt Revised Q1 Q2 Q3 Guidance Range 3.7 3.3 3.3 kt 1.7 kt 0.9 kt 7 kt 9 kt 1.7 0
Slide 49: Q3 Production Costs
Q3 Production Costs ▪ Total production costs down ▪ Higher mining rates and throughputs at Candelaria and Chapada drove increases QoQ ▪ Caserones costs decreased from lower sales volumes as well as favourable FX impacts Consolidated Costs Asset Costs ($M or Cu $/lb net credits)1 $648 M Cash Costs ($
Slide 50: Production & Cost Guidance
Production & Cost Guidance 15% year over year growth in copper guidance vs. 2023 production1 1. Based on 2023A copper production vs. 2024 copper production guidance mid-point, see press release dated January 14, 2024, entitled “Lundin Mining Provides 2024 Guidance & Announces 2023 Production Results
Slide 51: 2024 Production & Cash Cost Guidance
2024 Production & Cash Cost Guidance1 Production Cash Cost1,2,3 Production Cash Cost1,2,3 (contained metal in conc.) (contained metal in conc.) Cu Candelaria (100%) 165,000 - 173,000 $1.60 - $1.80 Zn Neves-Corvo 111,000 - 116,000 Zinc Zinkgruvan 79,000 - 83,000 $0.40 - $0.45 Copper Caserones (100%)
Slide 52: 2024 Capital Expenditure Guidance Summary
2024 Capital Expenditure Guidance Summary ▪ Capital expenditures are inline with last year Capital Expenditures1,2 ($M) 2024 ▪ The majority of sustaining capital Candelaria (100%) $275 expenditures for 2024 include: Caserones (100%) $135 ▪ Open pit waste stripping Chapada $110 ▪ Underground mine dev
Slide 53: Exploration
Exploration Track record of exploration success
Slide 54: Proven Exploration Success
Proven Exploration Success Candelaria case study Since Lundin Mining’s Mine life Nearly Over Over 2014 acquisition of Candelaria: Extended 160% and production profile improved1 in forecast copper production 256% 320% in M&I Mineral Resource1,2 increase in M&I Mineral Resource over the life-of-mine (
Slide 55: Mineral Reserves & Mineral Resources
Mineral Reserves & Mineral Resources
Slide 56: Mineral Reserves
Mineral Reserves Grade Contained Metal Grade Contained Metal Interest Interest 000's Cu Zn Pb Au Ag Ni Mo Cu Zn Pb Au Ag Ni Mo Site Category 000's Cu Zn Pb Au Ag Ni Mo Cu Zn Pb Au Ag Ni Mo Site Category % % Tonnes % % % g/t g/t % % kt kt kt Koz Koz kt kt Tonnes % % % g/t g/t % % kt kt kt Koz Koz kt
Slide 57: Mineral Resources
Mineral Resources Grade Contained Metal Grade Contained Metal 000's Cu Zn Pb Au Ag Ni Mo Cu Zn Pb Au Ag Ni Mo Interest 000's Cu Zn Pb Au Ag Ni Mo Cu Zn Pb Au Ag Ni Mo Interest Site Category Site Category Tonnes % % % g/t g/t % % kt kt kt Koz Koz kt kt % Tonnes % % % g/t g/t % % kt kt kt Koz Koz kt k
Slide 58: NI 43-101
NI 43-101 Unless otherwise indicated, Lundin Mining Corporation (the “Company”) has prepared the technical information in www.sedarplus.ca. this presentation including Mineral Reserve and Mineral Resource estimates (“Technical Information”) based on • Caserones: Technical Report entitled NI 43-101 T
Slide 59: Disciplined Copper Growth at Scale
Disciplined Copper Growth at Scale We have the team We have multiple We are well-positioned and conviction to opportunities to create to achieve our vision of deliver. meaningful growth in becoming a top-tier both near and long- copper producer of term horizons. global scale.
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