Lundin Mining Corporation · TSX:LUN
Lundin Mining — Merger or Acquisition (December 2021)
18 slides from Lundin Mining's merger presentation, Dec 20, 2021
Slide 1: Acquisition of Josemaria Resources
Acquisition of Josemaria Resources Taking Lundin Mining to the Next Level December 20, 2021 TSX: LUN Nasdaq Stockholm: LUMI Josemaria Copper-Gold Project, San Juan, Argentina
Slide 2: Cautionary Statements
Cautionary Statements Caution Regarding Forward-Looking Information and Non-GAAP Performance Measures This presentation contains statements which constitute “forward-looking information” within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs a
Slide 3: Participants
Participants Lundin Mining Peter Rockandel President & CEO Jinhee Magie SVP & CFO Quinn Yong VP Corporate Development & Strategy Josemaria Resources Adam Lundin President, CEO & Director Ian Gibbs CFO Arndt Brettschneider VP Corporate Development & Technical Services Josemaria Copper-Gold Project, S
Slide 4: Lundin Mining
Lundin Mining Our Strategy Operate, upgrade and grow a base metals portfolio that provides leading returns for our shareholders throughout the cycle • copper dominant Zinkgruvan • competitive cost position Eagle Zinc-Lead-Copper in Sweden Nickel-Copper-PGMs in U.S.A. • low-risk mining jurisdictions
Slide 5: Well Positioned for Continued Growth
Well Positioned for Continued Growth ✓ Acquired Eagle Project (2013) LTM Copper Equivalent Production2 • expanded mine life through discovery and development of Eagle East 349kt 186% Increase ✓ Acquired Candelaria Complex (2014) • expanded mine life, improved production profile, and lowered LOM cash
Slide 6: Creating Value & Scale
Creating Value & Scale • Increased Scale & Growth in Copper & Gold • Clear Path to Development • Asset & Geographic Diversification • Removes Project Financing Constraints • Continued Balance Sheet Strength & Direct Returns • Attractive Resource Base with District Potential Josemaria Copper-Gold Pro
Slide 7: Transaction Summary
Transaction Summary Proposed • Lundin Mining to acquire 100% of Josemaria Resources common shares by way of Plan of Arrangement Transaction • Implied equity value of C$625M ($485M) • C$1.60 per share offer represents a 29% premium to the 10-day volume weighted average price of Josemaria Resources sh
Slide 8: Josemaria Overview
Josemaria Overview1 World-Class Copper-Gold Porphyry Project ✓ top-10 Americas open-pit copper project by Mineral Reserves Josemaria Project ✓ multi-decade mine life potential Copper Equivalent Mineral Reserves / Grade2 4,646 kt / 0.46% ✓ in first 8 years of operation, estimated average annual produ
Slide 9: Top 10 Americas Copper Project
Top 10 Americas Copper Project Top Americas Copper Projects by Total Mineral Reserves (Open Pit Mines Only) Copper Equivalent Mineral Reserves1 (Mt) 15 10 5 0 NuevaUnion El Arco Taca Taca Quellaveco Agua Rica Casino Josemaria Rosemont Yellowhead San Nicolas Source: S&P Capital IQ Pro Metals & Mining
Slide 10: Meaningfully Increases Production Profile & Scale
Meaningfully Increases Production Profile & Scale 2020 Attribuable Copper Equivalent Production Including Copper, Zinc, Lead, Nickel and Gold; (kt)1 869 Copper Zinc Lead Nickel Gold 751 179kt 589 Copper Equivalent Increase 522 512 405 333 + LOM Average2 Source: Company Filings, Josemaria Feasibility
Slide 11: Strong Long-Term Relationship with Argentina
Strong Long-Term Relationship with Argentina Track Record in Argentina Lundin family has a successful working relationship with Argentina for more than 30 years, creating multiple direct and indirect positive impacts 1• International Musto • Alumbrera copper-gold deposit 2• Argentina Gold • Veladero
Slide 12: District Potential & First Mover Advantage
District Potential & First Mover Advantage Lundin Mining Candelaria Copper Complex, Chile Las Pailas Porphyry Copper-Gold-Silver Prospect Source: Josemaria Resources Source: Josemaria Resources • significant potential to further increase value over the longer-term leveraging Lundin Mining’s copper-f
Slide 13: TSX: LUN Nasdaq Stockholm: LUMI Josemaria Copper-Gold Project, San Juan, Argentina
TSX: LUN Nasdaq Stockholm: LUMI Josemaria Copper-Gold Project, San Juan, Argentina
Slide 14: Brief History of Josemaria
Brief History of Josemaria 1990s 2002 January 2016 July 2019 Mineral rights for Predecessor company to Preliminary economic analysis contemplating NGEx completed the spin out of the Josemaria first Josemaria Resources enters joint production of the Josemaria and Los company’s Los Helados property to
Slide 15: Mineral Reserves Support Long Life
Mineral Reserves 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 Total (P&P)
Slide 16: Mineral Resources Offer Upside Potential
Mineral Resources 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) % g/t g/t
Slide 17: 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 18: www.lundinmining.com
www.lundinmining.com | TSX: LUN | Nasdaq Stockholm: LUMI
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