Lundin Mining Corporation · TSX:LUN
Lundin Mining — BMO 32nd Global Metals, Mining & Critical Minerals Conference 2023
33 slides from Lundin Mining's conference presentation, Feb 27, 2023
Slide 1: BMO 32nd Global Metals, Mining & Critical Minerals Conference
BMO 32 nd Global Metals, Mining & Critical Minerals Conference February 27 th – March 1 st , 2023 TSX: LUN Nasdaq Stockholm: LUMI Zinkgruvan, Sweden
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 is “forward-looking information” within the meaning of applicable Canadian securities laws. All statements other than statements of hi
Slide 3: 2022 Highlights
2022 Highlights High Quality Meaningful Scale Financial Strength Operations & Material Growth Production Mineral Reserves3 Shareholder Returns 250 kt 17.1 Blb 5.6 Blb C$0.36/sh ~4.4% copper copper zinc regular dividend yield4 400 kt 123 Mlb 12.7 Moz $275M $60M copper-equivalent1 nickel gold dividend
Slide 4: Base Metals Focused Portfolio
Base Metals Focused Portfolio Our Strategy Operate, upgrade and grow a base metals portfolio that provides leading returns for our shareholders throughout the cycle Zinkgruvan Metal Mix Zinc-Lead-Copper Revenue by Metal Eagle Nickel-Copper-PGMs Zinc Neves-Corvo 12% Copper-Zinc-Lead Nickel 12% Over $
Slide 5: Positive Outlook for Copper
Positive Outlook for Copper • 3rd most consumed metal globally Cu • ~3/4 of usage today is for power transmission and generation, building wiring, telecommunication, and electrical and electronics Copper • positive outlook largely driven by importance in the energy transition and inelastic mine supp
Slide 6: Zinc & Nickel are Essential to Modern Life
Zinc & Nickel are Essential to Modern Life • 4th most consumed metal with uses ranging from metal products to rubber and medicines Zn • ~3/4 of usage today is to protect from corrosion in galvanizing steel, diecasting alloys, etc. ~1/4 is consumed by rubber, chemical and agricultural industries Zinc
Slide 7: Copper
Copper Cu Meaningful Scale Production Profile2 (kt) Copper & Material Growth +50% Chapada Growth CUGEP Expansion / Saúva 256 - 280 236 - 260 238 - 262 250 Long-Life and Cost-Competitive Assets Josemaria Project Candelaria • updated Technical Report extends LOM to 2046 • base case which does not cons
Slide 8: Zinc
Zinc Zn Production Growth Production Profile2 (kt) Zinc Ramping Up 225 - 240 215 - 230 Top-15 Global Producer of Zinc in Concentrate 180 - 195 Neves-Corvo 159 • updated Technical Report underpins current guidance; does not yet consider development of Semblana copper Mineral Resource1 • full ZEP mini
Slide 9: Nickel Gold
Nickel Gold Ni Low-Cost Au Significant Nickel Producer Gold By-Product Credits Eagle • significant gold production growth with development of Josemaria2, potential • only primary nickel mine in the U.S.A. expansion at Chapada and development of Saúva • produces high-quality nickel concentrate contai
Slide 10: 2022 Summary Production Results
2022 Summary Production Results Copper Nickel production of 250 kt production of 17 kt 65,081 64,096 63,930 4,719 4,281 4,379 56,552 4,096 • Chapada and Eagle met copper production guidance; Zinkgruvan exceeded • Candelaria and Neves-Corvo copper • achieved near the top end of production modestly be
Slide 11: 2022 Operating and Capital Cost Drivers
2022 Operating and Capital Cost Drivers Candelaria Chapada Eagle Neves-Corvo Zinkgruvan Production costs $697M $324M $193M $329M $116M Cash cost1 $1.96/lb of copper $2.08/lb of copper $0.79/lb of nickel $2.27/lb of copper $0.32/lb of zinc Sustaining capex $390M $105M $16M $71M $48M • successful earl
Slide 12: Key Financial Metrics
Key Financial Metrics Revenue Adjusted EBITDA1 Adjusted Earnings (Loss)1 of over $3B in 2022 of $1.3B in 2022 of over $480M in 2022 $623M $1,019M $991M $588M $811M $296M $282M $354M $649M $192M $590M $202M $149M Q2/22 $31M Q4/21 Q1/22 ($35M) Q3/22 Q4/22 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q4/21 Q1/22 Q2/2
Slide 13: Strong Cash Flows from Operations
Strong Cash Flows from Operations Key Changes in Cash $116M $993M $640M $203M $594M $181M $102M $275M $59M $191M $23M YE 2021 Adjusted Working Sustaining Expansion Josemaria Net Debt Shareholder Share Other YE 2022 Cash Operating Capital Capex Capex Acquisition Proceeds Dividends Buyback Cash Cash F
Slide 14: 2023 Guidance Summary
2023 Guidance Summary1 Production (t, oz; contained metal in conc.) Cash Cost2,3 Capital Expenditures2 ($M) Candelaria (100%) 145,000 - 155,000 $1.80 - $1.95 Sustaining Capital Chapada 43,000 - 48,000 $2.55 - $2.75 Candelaria (100% basis) 400 Cu Eagle 12,000 - 15,000 Chapada 70 Copper Neves-Corvo 33
Slide 15: Responsible Mining
Responsible Mining ✓ leading ISS Environment & Social Quality Scores ✓ CDP score of ‘B’, above industry and North American averages ✓ Candelaria’s operational water requirements met through reuse and make- up water from owned sea water desalination facility ✓ renewables increased to a minimum of 80%
Slide 16: Focused on the Future
Focused on the Future 35% Reduction in 7 Years • Scope 1 & 2 GHG absolute emissions reduction target of 35% by 2030 compared to our 2019 baseline year Embedding our Target 2022-2023 • baseline data is established and has been verified since 2014 • work is underway to ensure governance processes and
Slide 17: Copper growth to supply our world's transition
Copper growth to supply our world’s transition Zinkgruvan Zinc-Lead-Copper We mine metals essential for today and tomorrow as Eagle the world shifts to a lower carbon future Nickel-Copper-PGMs Neves-Corvo Copper-Zinc-Lead We produce at a meaningful global scale and are positioned for material growth
Slide 18: Appendices
Appendices Candelaria, Chile 18
Slide 19: Candelaria
Candelaria 2023 Production & Cash Cost Copper, Gold Production & Cash Cost Outlook1 (100% basis; kt Cu, koz Au & $/lb Cu, net of by-product credits) • ore mining from the open pit is to be primarily from the upper benches of Phase 11 • cash cost to benefit from lower YOY electricity rate and consuma
Slide 20: Chapada
Chapada 2023 Production & Cash Cost Copper, Gold Production & Cash Cost Outlook1 • copper and gold production to be weighted to H2, due to the forecast grade (100% basis; kt Cu, koz Au & $/lb Cu, net of by-product credits) profiles and seasonal operating considerations • ore mining is planned from t
Slide 21: Copper-Gold Saúva Deposit
Copper-Gold Saúva Deposit Highlight Assay Results Received in Q4/22 N FOR-231: 25.9 m at 0.60% Cu, 0.65 g/t Au or 0.98% CuEq, from 9.1 m v including: 6.0 m at 0.99% Cu, 1.21 g/t Au or 1.70% CuEq, from 9.1 m and: 64.0 m at 0.82% Cu, 1.40 g/t Au or 1.63% CuEq, from 86.0 m including: 20.0 m at 1.20% Cu
Slide 22: Eagle
Eagle 2023 Production & Cash Cost Nickel, Copper Production & Cash Cost Outlook1 • nickel and copper production is to be modestly weighted to H1 (kt & $/lb Ni, net of by-product credits) • ore mining to continue from the Eagle and Eagle East orebodies with priority on increasing ore sourced from Eag
Slide 23: Neves-Corvo
Neves-Corvo 2023 Production & Cash Cost Copper, Zinc Production & Cash Cost Outlook2 (kt & $/lb Cu, net of by-product credits) • copper production is forecast to be equally weighted throughout the year • zinc production is forecast to increase over the course of 2023 as initiatives to enable ZEP to
Slide 24: Zinkgruvan
Zinkgruvan 2023 Production & Cash Cost Zinc Production & Cash Cost Outlook1 • zinc and copper production are forecast to be modestly H2 weighted (kt & $/lb Zn, net of by-product credits) • metal recovery rates and concentrate grades are anticipated to improve with completion of the sequential flotat
Slide 25: Josemaria Project
Josemaria Project Advancing Towards Development • progressing through establishment of an updated capital cost estimate and project execution schedule • updated Technical Report remains on-track for completion in H2/23 • 2023 expansionary capex1 guidance of $400M in support of advancing the project
Slide 26: Josemaria Project
Josemaria Project District Potential & First Mover Advantage Lundin Mining Candelaria Copper Complex, Chile Las Pailas Porphyry Copper-Gold-Silver Prospect • potential to further increase value over the longer-term leveraging Lundin Mining’s copper-focused exploration expertise • Josemaria is positi
Slide 27: Josemaria Mineral Reserves Support Long Life
Josemaria Mineral Reserves 1 Support Long Life Mineral Reserve Statement Long Section of Pit Phase Designs Contained Metal Tonnes Copper Gold Silver Copper Gold Silver Category (Mt) % g/t g/t (M lb) (M oz) (M oz) Proven 197 0.43 0.34 1.33 1,844 2.14 8.43 Probable 815 0.27 0.19 0.85 4,861 4.87 22.29
Slide 28: Josemaria Mineral Resources Offer Upside Potential
Josemaria Mineral Resources 1 Offer Upside Potential Sulphide Mineral Resource Statement at 0.1% Copper Equivalent Cut-Off Oxide Mineral Resource Statement at 0.2 g/t Gold Cut-Off Contained Metal Contained Metal Tonnes Copper Gold Silver Copper Gold Silver Tonnes Gold Silver Gold Silver Category (Mt
Slide 29: Responsible Mining – Tailings Management
Responsible Mining – Tailings Management • employ a comprehensive and integrated approach to tailings management. This provides confidence that potential environmental and social impacts can be reliably identified and minimized • our Responsible Mining Policy and Responsible Mining Management System
Slide 30: Responsible Mining – Climate Change
Responsible Mining – Climate Change Climate Change, Energy and CHG Emissions • recognize the need for effective approaches to managing climate-related responsibilities, especially in consideration of the remote locations in which we operate, the energy-intensive nature of our industry, and the somet
Slide 31: Responsible Mining – Water Stewardship
Responsible Mining – Water Stewardship • continue to make water stewardship gains, achieving measurable reductions in freshwater use and increases in water re-use • committed to improvements in water assessment and management practices, evaluating water-use efficiency, initiatives to prevent unneces
Slide 32: NI 43-101 Technical Information
NI 43-101 Unless otherwise indicated, Lundin Mining Corporation (the “Company”) has prepared the technical information in this presentation including Mineral Reserve and Mineral Resource estimates (“Technical Information”) based on information contained in the technical reports and news releases (co
Slide 33: www.lundinmining.com
www.lundinmining.com | TSX: LUN | Nasdaq Stockholm: LUMI
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