Lundin Mining Corporation · TSX:LUN
Lundin Mining — Merger or Acquisition (July 2024)
35 slides from Lundin Mining's merger presentation, Jul 29, 2024
Slide 1: Unlocking the Vicuña District: Joint Acquisition of Filo & Partnership of the Josemaria Project
Unlocking the Vicuña District: Joint Acquisition of Filo & Partnership of the Josemaria Project Transaction Presentation July 29, 2024 TSX: LUN NASDAQ STOCKHOLM: LUMI
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 integration and diversion of management time on integration; risks
Slide 3: Participants on the Call
Participants on the Call Jack Lundin Teitur Poulsen Juan Andres Morel President & CEO CFO COO Dave Dicaire Quinn Yong Tim Walmsley EVP Josemaria Project VP Corporate VP Exploration Development & Strategy
Slide 4: Agenda
Agenda 1. Delivering 2. Transaction 3. Filo del Sol on our Highlights Project Strategy 4. Vicuña 5. Deal Terms 6. Next Steps District Lundin Mining Transaction Presentation 2024
Slide 5: Delivering on our Strategy
Acquired Caserones Delivering on our Strategy Disciplined copper growth at scale Revenue: Reserves 144% Acquired $3,392M Josemaria Production 46% 1600 Revenue 97% Acquired 1400 Chapada 10,630 kt 1200 8,410 kt Revenue: 1000 $1,726M 6,227 kt 6,249 kt 6,018 kt 800 4,355 kt 600 Cu Reserves (kt) Proven &
Slide 6: Long-term Partnership to Unlock the Vicuña District
Long-term Partnership to Unlock the Vicuña District Lundin Mining Transaction Presentation 2024 6
Slide 7: Transaction Highlights
Transaction Highlights A Unique Opportunity
Slide 8: Joint acquisition of Filo and Partnership on the Josemaria Project
Transaction overview: Joint acquisition of Filo and Partnership on the Josemaria Project Cash consideration for 50% of Josemaria 50% 50% New Joint Venture 100% 100% Filo Del Sol Project Project Lundin Mining Transaction Presentation 2024 8
Slide 9: 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 10: Balance Sheet Considerations
Balance Sheet Considerations Strong financial position Q1 2024 Recap1 ▪ Net debt: US$981 million – 0.7x leverage ratio ▪ Liquidity headroom of US$1.45 billion Deal Impact ▪ Cash receipt of US$690 million for 50% sale of Josemaria ▪ Cash payment of US$620 million2 for cash consideration to Filo Share
Slide 11: Filo del Sol Project & Vicuña District
Filo del Sol Project & Vicuña District Outstanding Drill Results 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
Slide 12: 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 Transaction Presentation 2024 12
Slide 13: 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 14: Location
Location Approximately 11 km away from the Josemaria project located in San Juan, Argentina S N 11 km Vicuna District Junction Distances and scale approximate for illustrative purposes only. Lundin Mining Transaction Presentation 2024 14
Slide 15: Vicuña District – Size, Scale & Grade
Vicuña District – Size, Scale & Grade Filo del Sol deposit Filo del Sol Deposit Lundin Mining Transaction Presentation 2024 15
Slide 16: FRY
Wi FRY | ; [ | Flamenco FSDHO80 1,226m @ 0.67: 0.99/0.29/8.9 ESOHO7E 766m @ 0.51 FSDHO34 0.4010.13/1.3 1,034m @ 0.68 FSDHO91 0.42/0.32/3.4 1,968m @ 056 0.40/0.192.5 FSDHO67 FSDHOS7 same Lit 58m @ 1.80 1,180m @ 0.61 0.62/0.53/11.9 0.86/0.70148.1 0. 0.4610.17/3.7 FspHo64 FSDHOG8A jroo ois 1,356m @ 1.0
Slide 17: 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 18: 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 19: Vicuña District: Size, Scale & Grade
Vicuña District Size, Scale & Grade
Slide 20: 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 21: 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 22: 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 23: Deal Terms
Deal Terms Joint Acquisition of Filo Partnership on Josemaria New Joint Venture
Slide 24: Joint acquisition of Filo
Joint acquisition of Filo Lundin and BHP to jointly acquire 100% of Filo’s issued and outstanding shares not already owned by Lundin Mining and Transaction BHP through a Canadian plan of arrangement Lundin Mining and BHP to jointly acquire Filo for C$33.00 per share or total consideration of approxi
Slide 25: Sale of 50% Interest in Josemaria
Sale of 50% Interest in Josemaria Upfront consideration of $690 million BHP will pay Lundin Mining cash consideration for a 50% interest in the Josemaria project Transaction • Lundin Mining and BHP will subsequently form a 50/50 joint venture to hold Filo’s Filo del Sol project and Lundin Mining’s J
Slide 26: Creation of a New Joint Venture
Creation of a New Joint Venture Vend-in of the Filo del Sol project and Josemaria Project Ownership 50% Lundin Mining / 50% BHP Assets 100% of Josemaria and 100% of Filo del Sol Included Operatorship Independent management team with joint oversight will manage the JV and JV board and subcommittees t
Slide 27: Next Steps
Next Steps Acquisition Timelines
Slide 28: 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 H1 2025 Josemaria Project Lundin Mining Transaction Presentation 2024 28
Slide 29: 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.
Slide 30: Lundin Mining Company Overview
Lundin Mining Company Overview
Slide 31: 2024 Production: 383 kt Cu | 205 kt Zn
Eagle2 2024 Production: 2 Ni Cu 11kt Cu Co PGM 12kt Ni 383 kt Cu | 205 kt Zn Copper focused base metal producer Corporate Office Zinkgruvan2 ▪ Diversified asset base in the Candelaria1,2 Zn Pb Cu 80kt Zn Americas and Europe Cu Cu 165kt Cu 105koz Au Au Au ▪ Largest zinc producer in Europe Neves-Corvo
Slide 32: Appendix
Appendix
Slide 33: 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 34: 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 35: NI 43-101 technical information
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