Slide 1: Corporate Update
TSX: LUN OMX: LUMI Corporate Update December 2015
Slide 2: Cautionary Statements
Cautionary Statements Caution Regarding Forward-Looking Information 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 historical facts, but rather on current
Slide 3: Lundin Mining Value Proposition
Lundin Mining Value Proposition Strong Margins and Free Cash Flows • Favourable financial results despite a lower commodity price environment Operations Performing Well • Production proceeding according to plan or exceeding expectations • Mines largely in first and second quartile on industry cost c
Slide 4: Lundin Mining – Globally Diversified Portfolio
Lundin Mining – Globally Diversified Portfolio Lundin Mining Head Office Lundin Mining Toronto, Canada UK Office West Sussex, UK Zinkgruvan (100%) Zinc-Lead-Copper Freeport Cobalt (24%) (Sweden) Cobalt Refinery (Finland) Eagle (100%) Nickel-Copper (USA) Neves-Corvo (100%) Aguablanca (100%) Nickel-Co
Slide 5: YTD 2015 Operating Highlights
YTD 2015 Operating Highlights Strong operating results; on-track to meet 2015 guidance • Higher plant throughput at Candelaria supported strong Copper production, cash costs tracking below full year guidance (Cu) • Copper production at Neves-Corvo benefitted from higher grades, cash costs higher due
Slide 6: YTD 2015 Revenue Breakdown by Mine and Metal
YTD 2015 Revenue Breakdown by Mine and Metal • 70% of sales from Candelaria and Eagle to date • 66% of sales from copper to date Sales Breakdown by Mine Sales Breakdown by Metal Aguablanca Other Lead 5% 4% Zinkgruvan Gold 2% 8% 6% Zinc 9% Neves-Corvo 17% Candelaria Nickel Copper 53% 13% 66% Eagle 17
Slide 7: 2015 YTD Cash Costs Remain Competitive
2015 YTD Cash Costs Remain Competitive $4.00 2015 Copper C1 Cash Cost Curve $3.00 Candelaria $1.27/lb $2.00 $/lb $1.00 Neves Corvo Tenke $1.53/lb $0.00 $1.17/lb ($1.00) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% $15.00 $1.80 2015 Nickel C1 Cash Cost Curve 2015 Zinc C1 Cash Cost Curve $1.50 $10.00 A
Slide 8: Balance Sheet Remains Strong
Balance Sheet Remains Strong US$ M September 30, 2015 Cash and Cash Equivalents $550 Net Debt1 $454 Revolving Credit Facility (Undrawn) $350 Cash and Cash Equivalents $600 550 507 355 $US M $300 175 $0 Q4/14 Q1/15 Q2/15 Q3/15 • Net debt has improved by $375M from $829M (YE 2014) to $454M (end-Q3/15)
Slide 9: Operational Overview and Outlook
Operational Overview and Outlook Candelaria (80%) Eagle (100%) Neves-Corvo (100%) Zinkgruvan (100%) Aguablanca (100%) Tenke Fungurume (24%) 9
Slide 10: Candelaria (Cu/Au/Ag), Chile
Candelaria (Cu/Au/Ag), Chile Atacama Province, Region III, approximately 20 km south of Copiapó 10
Slide 11: Candelaria YTD Performance and Outlook
Candelaria YTD Performance and Outlook • Copper production (100% basis) of 141 kt YTD Location Chile benefitted from higher plant throughput Ownership 80% • Cash costs of $1.27/lb Cu to date better than 2015 Production 138,000-141,000 t Cu full year guidance Guidance (80%) 2015 Cost Guidance $1.35/l
Slide 12: Candelaria New Mine Plan – Improved Production & Costs
Candelaria New Mine Plan – Improved Production & Costs • 25% increase in LOM copper production (2.4 Mt vs. 1.9 Mt) • Mine life extended to 2032 from 2028 • 5-year plan production profile significantly improved; underground drilling advancing targeted to improve mid-term production profile • Low cost
Slide 13: Eagle Mine (Ni/Cu), Michigan, U.S.A.
Eagle Mine (Ni/Cu), Michigan, U.S.A. 50 km northwest of Marquette in the Upper Peninsula of Michigan 13
Slide 14: Eagle YTD Performance and Outlook
Eagle YTD Performance and Outlook • Production of 20 kt Ni and 18 kt Cu YTD Location Michigan, USA met expectations Ownership 100% › Higher recoveries and throughput 2015 26,000–27,000 t Ni Production Guidance 23,000–24,000 t Cu • Cash costs of $2.01/lb Ni tracking in-line 2015 Cost Guidance $2.00/l
Slide 15: Neves-Corvo (Cu/Zn), Portugal
Neves-Corvo (Cu/Zn), Portugal Situated 220 km southeast of Lisbon 15
Slide 16: Neves-Corvo YTD Performance and Outlook
Neves-Corvo YTD Performance and Outlook • Copper production of 45 kt YTD benefitted Location Portugal from higher grades Ownership 100% 54,000–56,000 t Cu 2015 Production • Zinc production of 48 kt impacted by lower Guidance 59,000–62,000 t Zn 3,000-3,500 t Pb recovery rates 2015 Cost Guidance $1.60
Slide 17: Zinkgruvan (Zn/Pb/Cu), Sweden
Zinkgruvan (Zn/Pb/Cu), Sweden Situated 200 km southwest of Stockholm 17
Slide 18: Zinkgruvan YTD Performance and Outlook
Zinkgruvan YTD Performance and Outlook • Zinc production of 58 kt YTD in-line with Location Sweden 2014 levels Ownership 100% 82,000–85,000 t Zn 2015 Production • Lead production of 23 kt YTD impacted by Guidance 31,000–33,000 t Pb lower grades 2,000 t Cu 2015 Cost Guidance $0.40/lb Zn • Copper prod
Slide 19: Aguablanca (Ni/Cu), Spain
Aguablanca (Ni/Cu), Spain Situated 80 km north of Seville 19
Slide 20: Aguablanca YTD Performance and Outlook
Aguablanca YTD Performance and Outlook • Production of 7 kt Ni and 6 kt Cu YTD Location Spain exceeded expectations Ownership 100% 2015 Production 7,100 t Ni • Cash costs of $2.23/lb Ni YTD better than Guidance 6,100 t Cu full year guidance 2015 Cost Guidance $2.60/lb Ni • Process plant completed mi
Slide 21: Tenke Fungurume (Cu/Co), DRC
Tenke Fungurume (Cu/Co), DRC Situated 175 km northwest of Lubumbashi 21
Slide 22: Tenke YTD Performance and Outlook
Tenke YTD Performance and Outlook • Production (100% basis) of 154 kt Cu YTD Democratic Republic Location of Congo • Cobalt production of 11 kt YTD Ownership 24% • Cash costs of $1.17/lb Cu YTD affected 2015 Production Guidance (attributable share) 50,600 t Cu by lower cobalt by-product credits 2015
Slide 23: Well Positioned in Any Market
Well Positioned in Any Market High quality, competitively positioned mines Diversified base metals and geographic asset base Meaningful production scale Strong free cash flow and good margins Conservative balance sheet 23
Slide 24: Appendices
TSX: LUN OMX: LUMI Appendices
Slide 25: Production Outlook 2016-2018
Production Outlook 2016-2018 Attributable Production Outlook 2016 – 20181 (contained tonnes) 2016 2017 2018 Candelaria (80%) 118,000 – 123,000 120,000 – 125,000 113,000 – 120,000 Eagle 20,000 – 23,000 17,000 – 20,000 14,000 – 17,000 Copper Neves-Corvo 50,000 – 55,000 50,000 – 55,000 50,000 – 55,000
Slide 26: 2015 Capital Expenditure and Exploration Guidance
2015 Capital Expenditure and Exploration Guidance Revised Capital Expenditure Guidance ($ millions) Prior Guidancea Revisions Revised Guidance Candelaria $ 205 $ (20) $ 185 Eagle 15 5 20 Neves-Corvo 75 (20) 55 Zinkgruvan 40 (5) 35 Aguablanca 15 - 15 Total $ 350 $ (40) $ 310 a. Guidance as outlined i
Slide 27: Candelaria Integrated Mining Complex
Candelaria Integrated Mining Complex Alcaparrosa • Successful Tierra Amarilla Mine operating track record Santos Mine • Large prospective regional mineral Candelaria property position Norte Ojos-Plant PAC near mine • Opportunity to Candelaria Open Pit continue to extend Magnetite Plant Damiana mine
Slide 28: Candelaria Complex Mineral Reserves and Resources
Candelaria Complex Mineral Reserves and Resources June 30, 2015 (100% Basis) Grade Contained Metal Classification Quantity Copper (%) Gold (g/t) Silver (g/t) Copper (kt) Gold (koz) Silver (koz) Proven and Probable Open Pit 314,582 0.57 0.13 1.99 1,784 1,317 20,160 WIP 93,849 0.36 0.09 1.49 335 263 4
Slide 29: Candelaria Complex Cost Profile
Candelaria Complex Cost Profile Candelaria Unit 2016E 2017E 2018E 2019E Mining Cost – OP* Mining Cost – UG $/t mined $/t mined 2.50 21.10 2.80 21.40 3.10 20.80 2.70 20.20 • 2016-2019 average Candelaria Processing Cost $/t milled 7.70 7.50 8.70 8.10 unit cost of ~$21.50/t milled G&A Cost $/t milled 1
Slide 30: Candelaria Complex Capital Investment Plan
Candelaria Complex Capital Investment Plan For the period 2016 to 2024 (Candelaria Copper Mining Complex) Capital Costs (US$M) 2016 2017 2018 2019 Mine 26.4 19.8 10.6 12.1 Mill 4.0 2.2 2.8 2.6 Tailings 70.9 180.0 75.0 50.0 G&A 1.5 - 3.6 0.3 Total (Pre-Stripping) 103.1 202.0 92.0 65.0 Capitalized Str
Slide 31: Eagle Mine and Eagle East Deposit Overviews
Eagle Mine and Eagle East Deposit Overviews Grade Ni Grade Cu Contained Ni Contained Cu K Tonnes (%) (%) (k tonnes) (k tonnes) P&P 4,488 2.9 2.4 129 109 M&I 4,261 3.5 2.9 149 123 Inferred 51 1.1 1.1 1 1 31
Slide 32: Neves-Corvo Site Overview
Neves-Corvo Site Overview Grade Contained Grade Contained Copper K Tonnes (%) (k tonnes) Zinc K Tonnes (%) (k tonnes) P&P 25,948 2.7 711 P&P 25,333 7.1 1,798 M&I 69,352 2.7 1,864 M&I 106,785 6.1 6,519 Inferred 13,375 1.7 233 Inferred 12,626 4.5 569 32
Slide 33: Zinkgruvan Site Overview
Zinkgruvan Site Overview Grade Zn Grade Pb Contained Zn Contained Pb K Tonnes (%) (%) (k tonnes) (k tonnes) P&P 11,719 8.2 3.3 962 385 M&I 16,947 9.6 3.9 1,620 661 Inferred 7,270 8.4 3.5 611 254 33
Slide 34: Tenke Fungurume Site Overview
Tenke Fungurume Site Overview Grade Cu Grade Co Contained Cu Contained Co (100% Basis) K Tonnes (%) (%) (k tonnes) (k tonnes) P&P 136,120 2.7 0.4 3,681 494 M&I 636,554 2.5 0.3 15,747 1,758 Inferred 392,750 2.0 0.2 8,004 916 34
Slide 35: 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 36: Thank You
TSX: LUN OMX: LUMI Thank You