Lundin Mining Corporation · TSX:LUN
Lundin Mining — RBC Capital Markets Global Mining & Materials Conference 2019
32 slides from Lundin Mining's conference presentation, June 2019
Slide 1: RBC Capital Markets Global Mining & Materials Conference
TSX: LUN Nasdaq Stockholm: LUMI RBC Capital Markets Global Mining & Materials Conference June 2019 Candelaria, Atacama Region, Chile
Slide 2: Cautionary Statements
Cautionary Statements Caution Regarding Forward-Looking Information and Non-GAAP Performance Measures Certain of the statements made and information contained herein, other than statements of historical fact and historical information, is “forward-looking information” within the meaning of applicabl
Slide 3: Lundin Mining
Lundin Mining Our Strategy Our Operations Operate, upgrade and grow a Freeport Cobalt1 Cobalt Refinery (Finland) base metal portfolio that provides leading returns for our Eagle Zinkgruvan shareholders throughout the cycle Nickel-Copper-PGMs (USA) Zinc-Lead-Copper (Sweden) – copper dominant Neves-Co
Slide 4: Responsible Mining
Responsible Mining Safety Total Recordable Injury Frequency per 200,000 person hours worked – overall safety performance better than target for sixth consecutive year – first-quartile performance 3.5 3.1 Social – positive stakeholder engagement 2.5 and increased social investment – achieved top ISS
Slide 5: Q1 2019 Summary Results
Q1 2019 Summary Results Production – 46,122 t of copper – 40,446 t of zinc – 4,213 t of nickel – 7,485 t of lead Sales (payable) – 41,830 t of copper – 31,423 t of zinc – 1,691 t of nickel – 5,150 t of lead $416M in Sales – 64% copper – 20% zinc – 6% nickel – 2% lead Candelaria Open Pit 5
Slide 6: Financial Highlights
Financial Highlights Realized Metal Prices1 Q1 2019 Q1 2018 Δ Copper $3.11/lb $2.93/lb 6% Nickel $8.37/lb $6.04/lb 39% Zinc $1.38/lb $1.51/lb (9%) Summarized Financial Results2 Q1 2019 Q1 2018 Δ Revenue $416M $470M (11%) Gross Profit $141M $150M (6%) Attributable Net Earnings from Continuing Operati
Slide 7: Candelaria
Candelaria On Track to Achieve Full-Year Guidance – Q1/19 mill throughput and mining rates exceeded plan Copper Production & Cash Cost Outlook – produced 32,778 t of copper at $1.62/lb cash cost (100% basis; kt & $/lb Cu, net of by-product credits) – copper head grades to increase in the H2/19 as mo
Slide 8: Neves-Corvo & ZEP
Neves-Corvo & ZEP Strong Mine and Mill Operating Performance – produced 8,868 t of copper and 18,773 t of zinc at $0.92/lb copper cash cost in Q1/19 Copper, Zinc Production & Cash Cost Outlook (kt & $/lb Cu, net of by-product credits) – ore mined and processed greater than planned – copper grade low
Slide 9: ZEP – Underground Construction
ZEP – Underground Construction Breakthrough of Ramps 6 and 7 Development of Under Ground Electrical Room 9
Slide 10: ZEP – Underground Construction
ZEP – Underground Construction Transfer Tower #3 Transfer Tower #3 10
Slide 11: ZEP – Zinc Plant & Surface Construction
ZEP – Zinc Plant & Surface Construction Flotation and Filtration Buildings Flotation Cell Installation Paste Thickener 11
Slide 12: Eagle & Eagle East
Eagle & Eagle East Strong Performance Despite Weather Impacts – produced 4,213 t of nickel and 3,897 t of copper at Nickel, Copper Production & Cash Cost Outlook $0.37/lb nickel cash cost in Q1/19 (kt & $/lb Ni, net of by-product credits) – ore transport to mill and concentrate transport impacted by
Slide 13: Zinkgruvan
Zinkgruvan Record Zinc Production in March – produced 21,673 t of zinc, 5,832 t of lead and 579 t Zinc Production & Cash Cost Outlook of copper at $0.44/lb zinc cash cost in Q1/19 (kt & $/lb Zn, net of by-product credits) – remain focused on mine planning and execution 76-81 75-80 76-81 77 Ramp-Up o
Slide 14: 2019 Capital & Exploration Expenditure Guidance
2019 Capital & Exploration Expenditure Guidance Capital Expenditures Capital Expenditures1 (US$M) – unchanged from previous guidance Capitalized Stripping2 130 Los Diques TSF 10 Exploration – $70M to be invested in 2019 in exploration programs, New Mine Fleet Investment 75 reduced from previous guid
Slide 15: Chapada Acquisition Highlights
Chapada Acquisition Highlights Furthers Strategic Goals ─ high-quality, long-life, expandable ─ complements existing assets Immediately Accretive ─ on key financial and operating metrics ─ financial strength utilized while maintaining low leverage and flexibility Increased Copper & Gold Cash Flows S
Slide 16: Increasing Production Profile
Increasing Production Profile1 (kt) Copper Zinc Nickel Forecast +50% increase on Candelaria Forecast ~55% increase primarily on Eagle East planned on-line in Q4 2019 investments and Chapada Acquisition Neves-Corvo Zinc Expansion Project 241 302 19 298 18 231 +25% 16 210 15 16 263 +26% 195 13 242 237
Slide 17: Diversified in Established Jurisdictions
Diversified in Established Jurisdictions 2019E Copper Equivalent Production by Country 1, 2 Current Pro Forma Sweden Sweden 9% 11% USA USA 12% 14% Chile Chile 40% 51% Portugal Portugal 19% 24% Brazil 20% Notes: (1) Based on midpoint of 2019E production guidance provided by Lundin Mining and 2019E Ch
Slide 18: Transaction Summary
Transaction Summary Transaction Lundin Mining to acquire 100% interest in Chapada copper-gold mine US$800M in cash at closing, subject to customary adjustments Contingent gold price payments – annual payment if the gold price averages at least the threshold in any sequential annual period over the f
Slide 19: Chapada Overview
Chapada Overview Potential to sustain production in the range of 68.0 to 72.5 ktpa High-Quality Producer in copper and 100 to 110 koz gold under expansion scenario Excellent Jurisdiction through at least 2034 Competitive cash cost profile over life of mine Established Mine Current copper Mineral Res
Slide 20: Long-Life, Expandable Operation
Long-Life, Expandable Operation Copper Production (kt) & Co-Product Cash Cost ($/lb) 68 - 72.5 Attractive co-product cash costs. 62 Guided to $1.60-$1.80/lb copper 58 59 60 and $430/oz gold equivalent in 52 54 2019E $1.74 $1.60 - $1.80 $1.58 $1.54 28 year life on copper Mineral Reserves at current t
Slide 21: Mine Overview
Mine Overview Tailings Plant North Facility Pit Central Pit South Pit Large copper-gold mineralized system Conventional drill and blast, load and haul open pits Owner-operated and contractor mining Chapada open pits: LOM strip ratio 1.3:1 Avg. remaining LOM copper grade 0.25% 21 Avg. remaining LOM g
Slide 22: Processing Facilities
Processing Facilities Processing Plant Plant Facilities Mine ROM Ore Facilities Stockpile Power Substation 230/13.8kV Crushed Ore Stockpile MMD Crusher In Pit Crusher Conveyor 22 Jaw Crusher
Slide 23: Processing Facilities
Processing Facilities Conventional Crush, Grind, Float Throughput 65 ktpd or 23.4 Mtpa Copper recovery 82% in 2018 Gold recovery 63% in 2018 Copper concentrate ~25% copper Gold in concentrate ~10-15 g/t Grid Power Connected to national grid via 84 km In Pit Crusher Crushed Stockpile SAG Mill – 34 ft
Slide 24: Current Mineral Reserves Support Long Life
Current Mineral Reserves Support Long Life (1)(2)(3) Over 1.68 Mt of contained copper Mineral Reserve Statement, effective December 31, 2018 and 4.5 Moz of contained gold in Contained Metal (4) 000's Cu Au Cu Au Mineral Reserves Category Tonnes % g/t kt koz Copper Chapada Zone Mineral Reserves estim
Slide 25: Mineral Resources Offer Upside Potential
Mineral Resources Offer Upside Potential (1)(2)(3) Approximately 920 kt of Mineral Resource Statement, effective December 31, 2018 Contained Metal contained copper and 1.9 Moz of (4) 000's Cu Au Cu Au contained gold estimated in Category Tonnes % g/t kt koz copper M&I Mineral Resources in Copper Cha
Slide 26: Tailings Storage Facility
Tailings Storage Facility 26
Slide 27: Tailings Storage Facility
Tailings Storage Facility Tailings storage facility (TSF) is located northwest of Chapada open pit Main Dam All dams raised by centerline methods Main Dam and Dyke III comprise compacted earth fill starter dams raised with cyclone tailings Dyke II is a compacted earth fill dam for water retention Sp
Slide 28: Lundin Mining
Lundin Mining High Quality Meaningful Scale Financial Strength Competitive Mines Growth Oriented – strong margins at all – exploration upside and – proven track record for operations high value expansion rigorous investment projects underway approach, focused on – demonstrated operational value crea
Slide 29: NI 43-101 Compliance
NI 43-101 Compliance 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 r
Slide 30: Notes
Notes 80 lundin mining
Slide 31: Notes
Notes st lundin mining
Slide 32: TSX: LUN Nasdaq Stockholm: LUMI
TSX: LUN Nasdaq Stockholm: LUMI
Lundin Mining — RBC Capital Markets Global Mining & Materials Conference 2019 on 6ix