Lundin Mining Corporation · TSX:LUN
Lundin Mining — Investor Presentation (May 2024)
46 slides from Lundin Mining's investor presentation, May 2024
Slide 1: Disciplined Copper Growth at Scale
Disciplined Copper Growth at Scale Corporate Presentation May 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 is “forward-looking information” within the meaning of applicable cybersecurity risks; risks associated with the estimation of Mineral
Slide 3: Company Overview
Company Overview Purpose-built team to deliver results
Slide 4: Company Overview
Company Overview 2023 Cu Production1 315kt Zn Ni Au 2023A ▪ 6 assets, 75% copper ▪ Record Cu | Zn production ▪ Annualized dividend2 of 2.3% 185kt 16kt 149koz ▪ Net debt: $946M3 2023 Financial Summary $3.4B $1.4B $345M $206M revenue adj. EBITDA4 FCF from ops4 1. For more information, please refer to
Slide 5: 2024 Company Production Guidance
2024 Company Production Guidance1 2024 Cu 366,000 – 400,000 Cu Zn Ni Au 195,000–215,000t 10,000–13,000t 155,000–170,000oz Outlook ▪ Copper production growth from Caserones ownership option (19%) ▪ Candelaria underground expansion opportunity ▪ Shovel ready, Josemaria development opportunity ▪ 15% Yo
Slide 6: Disciplined Copper Growth at Scale
Disciplined Copper Growth at Scale Current Asset Base Growth Profile Cu & CuEq Production (kt) 485 CuEq Production Cu Production 414 404 374 376 332 Caserones Option CUGEP Josemaria 315 235 231 263 250 200 2018 2019 2020 2021 2022 2023 Current asset base growth profile: Candelaria was acquired in 20
Slide 7: Proven Exploration Success
Proven Exploration Success ▪ Consistent Mineral Reserve growth through exploration, discovery and acquisitions Copper Reserves (kt)1 10,630 Proven & Probable 8,410 6,227 6,249 6,018 4,355 2018 2019 2020 2021 2022 2023 Current asset base Mineral Reserve growth profile: Candelaria was acquired in 2015
Slide 8: Track Record of Mineral Resource Growth
Track Record of Mineral Resource Growth1,2 Exploration has been a core value driver for Lundin Mining 320 Candelaria Cu % 101 Neves Corvo Cu % Acquisition year: 2014 Acquisition year: 2006 1,390 60 % % Zinkgruvan Zn Eagle Ni Acquisition year: 2004 Acquisition year: 2013 1. Growth in M&I copper, nick
Slide 9: Capital Return to Shareholders
Capital Return to Shareholders ▪ +$1.1 billion returned to shareholders via dividends and share buybacks since 2017 ▪ Annualized dividend1 of C$0.36/sh or 2.3% $335M Shareholder Returns2 (US$M) $268M $206M $99M $88M $68M $67M 2017 2018 2019 2020 2021 2022 2023 1. For more information, please refer t
Slide 10: Built to Drive Value
Built to Drive Value ▪ Well-positioned to create meaningful growth Conviction Growth at scale Legacy ▪ Purpose-built team to ▪ Significant value to unlock ▪ Disciplined growth deliver results at Caserones ▪ Shareholder ▪ Steadfast in ▪ Advance Josemaria returns maintaining strong ▪ Full leverage to
Slide 11: Sustainability
Sustainability Focused on the Future
Slide 12: Responsible Mining
Responsible Mining ▪ Ambitious but achievable goal to reduce Scope 1 & 2 GHG absolute emissions by 35% by 20301 Zinkgruvan, Wind Farm, Sweden Scope 2 emissions benefit from Zinkgruvan’s investment in renewable electricity since 2017 Lundin Mining Corporate Presentation 2024 1. Compared to 2019 basel
Slide 13: Responsible Mining
Candelaria, Punta Padrones Port & Desalination Plant, Chile Responsible Mining ▪ Leading ISS Environment & Social Quality Scores ▪ Carbon Disclosure Project (“CDP”) score of ‘B’, above industry and North American averages ▪ Candelaria’s freshwater demands met through sea water desalination facility
Slide 14: Alignment with Best Practices
Alignment with Best Practices ▪ Under the Responsible Mining Framework, we commit to develop and implement management systems and operating practices that take into consideration applicable international guidelines, including: Strong CDP performance, earning a score of ‘B’ • We report annually to th
Slide 15: Assets
Assets Six operating assets with over 75% of our revenue coming from copper
Slide 16: 2023 Production: 485kt CuEq
Eagle3 2023 Production: Ni Co Cu PGM 55kt CuEq 485kt CuEq 3 Meaningful scale Corporate Office Zinkgruvan3 41kt CuEq Zn Cu ▪ Diversified asset base in the Candelaria1,3 Pb Americas and Europe 177kt CuEq Cu Cu Au Au ▪ Only primary nickel mine in the Neves-Corvo3 United States 74kt CuEq Cu Zn Pb Casero
Slide 17: Atacama Region: Production to Port
Atacama Region: Production to Port Strategic footprint to leverage assets ▪ Established infrastructure ▪ Synergies and economies of scale ▪ 19 Blbs (8.7 Mt) copper reserves1 1. Includes Candelaria, Caserones and Josemaria on a 100% basis. Refer to the Mineral Reserve and Mineral Resource section for
Slide 18: Candelaria
Atacama / Vicuña District (Chile) Candelaria ▪ Acquired in 2014 for $1.8 billion – Increased LOM by 18 years and M&I resources by 175%1 ▪ Water requirements met through desalinate sea water ▪ Mine plan optimization underway for the Candelaria Underground Expansion Project (CUGEP) Overview 2024 Guida
Slide 19: Vicuña District
CASERONES Vicuña Operating mine District Vicuña District LOS HELADOS Resource + Exploration A closer look ▪ Five mega deposits: Caserones, JOSEMARIA Los Helados, Josemaria, Filo del LUNAHUASI Development Project Sol and Lunahuasi New Discovery ▪ Centralized infrastructure ▪ Josemaria is the most adv
Slide 20: Vicuña District – Size & Scale
Vicuña District – Size & Scale Caserones Los Helados Lunahuasi / Cumbre Verde Josemaria Filo Scale and distance approximate. Lundin Mining Corporate Presentation 2024 20
Slide 21: Caserones
Vicuña District / Atacama (Chile) Caserones ▪ 51% interest acquired in 2023 for $950M – option to increase to 70% for $350M which would add ~25 kt copper/yr ▪ Large-scale, long-life copper-molybdenum operation ▪ Proximity to Candelaria and Josemaria introduces opportunities to realize supply chain,
Slide 22: Near-term Copper Growth Opportunity at Caserones
Vicuña District / Atacama (Chile) Caserones Near-term Copper Growth Opportunity ▪ Option to increase ownership to 70% Caserones1 Increase in Attributable Total Cu Production ▪ Additional 19% ownership of Caserones for $350M Copper Production (kt) Attrib. Cu Production 139 125 125 130 130 Cu 25kt att
Slide 23: Josemaria Project
Vicuña District (Argentina) Josemaria Project ▪ One of the next Mega Cu Projects expected to ▪ Derisking – Trade off studies underway be developed globally ▪ Fiscal stability agreements in progress (RIGI) ▪ Unlocks the Vicuña District on the Argentinian side CuEq Production Profile2 3 yr. Avg. = 250
Slide 24: Vicuña District Exploration
Vicuña District Exploration Caserones ▪ Largest exploration program since the mine began operations in 2013 Caserones Angélica Deposit Target ▪ Vicuña District’s largest land package – ~60,000 ha (+40%) Deep ▪ Drilling focused on near-mine resource Sulphides expansion and discovery Cu Oxides Josemar
Slide 25: Chapada (Copper/Gold)
Chapada (Copper/Gold) Location Brazil Overview Ownership 100% ▪ Acquired in 2019 for $800M Reserves (P&P) 1,395 kt Cu ▪ Processing capacity of 65,000 tpd or 24 Mtpa Grade 0.23 | 0.12 ▪ Exploration focused on Sauva and high-grade targets (Cu% | Au g/t) near mine Mine Life +25 yrs. Mine Type OP Throug
Slide 26: Zinc Assets
Zinc Assets Neves-Corvo (Portugal) Zinkgruvan (Sweden) ▪ Zinc expansion project completed (ZEP) ▪ Sequential flotation project completed ▪ Increased throughput from 1.5 Mtpa to +2.0 Mpta ▪ Capable to process higher zinc grades that are expected ▪ Record quarterly zinc production in Q4 2023 to drive
Slide 27: Eagle (Nickel)
Eagle (Nickel) Location USA Overview Ownership 100% ▪ Acquired in 2013 for $325M, production commenced in 2014 – highly profitable mine Reserves (P&P) 51 kt Cu ▪ Only primary nickel mine in the U.S. Grade (Ni%) 1.26% ▪ Efficient mine operated by high-performing workforce Mine Life ~5 yrs. ▪ Continue
Slide 28: Asset Optimization
Asset Optimization Full Potential Initiative ▪ Initiated comprehensive value optimization efforts across our Latin American sites ▪ Focus on productivity, process improvements Caserones and efficiencies to drive down costs, undertaking asset improvement studies at Chapada, Candelaria and Caserones C
Slide 29: Financial Performance
Financial Performance Strong financial position to fund growth initiatives Lundin Mining Corporate Presentation 2024
Slide 30: Delivering on Results – 2023 Full Year
Delivering on Results – 2023 Full Year 315ktCu 185ktZn 16ktNi PRODUCTION Record consolidated annual Cu Record Zn production from Above original 2023 guidance2 production in 20231,2 expansion initiatives in 20232 15%Cu 10%Zn $1.1B OUTLOOK Estimated YoY increase in Cu Estimated YoY increase in Zn 2024
Slide 31: 2023 Balance Sheet Summary
2023 Balance Sheet Summary $3.4B $1.4B $345M Revenue (2023) Adjusted EBITDA1 (2023) FCF from Operations1 (2023) $946M 0.7X Net debt1,2 Net Debt/Adjusted EBITDA1,2 (LTM) $1.5B Existing liquidity1 (including undrawn credit facility) 1. For the year ended December 31, 2023. Adjusted EBITDA, FCF from op
Slide 32: Q1 2024 Highlights
Q1 2024 Highlights1 88ktCu 46ktZn 33kozAu $363M $68M FCF from Operations in Q1 20242 $981M Net debt2,3 Adjusted EBITDA in Q1 20242 0.7X Net Debt/Adjusted EBITDA2,3 (LTM) 1. Q1 2024 consolidated copper and gold production on a 100% basis, Lundin Mining holds an 80% interest in Candelaria and a 51% in
Slide 33: Q1/24 Production Results
Q1/24 Production Results Copper Q1 production of 88 kt Annual Q1 Guidance Range 103 90 88 88 kt 366 kt 400 kt 60 Q2/23 Q3/23 Q4/23 Q1/24 Gold Q1 production of 33 koz Annual Q1 44 Guidance Range 34 35 33 33 koz 155 koz 170 koz Copper Cathode Q2/23 Q3/23 Q4/23 Q1/24 Lundin Mining Corporate Presentatio
Slide 34: Q1/24 Production Results
Q1/24 Production Results Zinc Annual Q1 production of 46 kt Guidance Range Q1 50 51 46 36 46 kt 195 kt 215 kt 19 26 Zinkgruvan Neves-Corvo Q2/23 Q3/23 Q4/23 Q1/24 Nickel Q1 production of 3.3 kt Annual Q1 Guidance Range 4.7 4.3 3.7 3.3 3.3 kt 10 kt 13 kt Q2/23 Q3/23 Q4/23 Q1/24 Zinkgruvan underground
Slide 35: Q1/24 Production Costs
Q1/24 Production Costs ▪ Candelaria and Caserones benefited from a weaker Chilean Peso ▪ Improved costs at Chapada ▪ Costs tracking to full year guidance at all sites Consolidated Costs Asset Costs ($M or Cu $/lb net credits)1 Exc. Caserones $645 M $567M $615 M Candelaria $250 M 3.5 $250 M Caserones
Slide 36: Production & Cost Guidance
Production & Cost Guidance 15% year over year growth in copper guidance vs. 2023 production1 1. Based on 2023A copper production vs. 2024 copper production guidance mid-point, see press release dated January 14, 2024, entitled “Lundin Mining Provides 2024 Guidance & Announces 2023 Production Results
Slide 37: 2024 Production & Cash Cost Guidance
2024 Production & Cash Cost Guidance1 Production Cash Cost1,2,3 Production Cash Cost1,2,3 (contained metal in conc.) (contained metal in conc.) Cu Candelaria (100%) 160,000 - 170,000 $1.60 - $1.80 Zn Neves-Corvo 120,000 - 130,000 Zinc Zinkgruvan 75,000 - 85,000 $0.45 - $0.50 Copper Caserones (100%)
Slide 38: 3-year Production Guidance
3-year Production Guidance Outlook Copper Gold kt koz 366 - 400 155 - 170 358 - 392 356 - 390 145 - 160 140 - 155 2024 2025 2026 2024 2025 2026 Zinc Nickel kt kt 220 - 240 220 - 240 10 - 13 195 - 215 5-8 4-7 2024 2025 2026 2024 2025 2026 Lundin Mining Corporate Presentation 2024 38
Slide 39: 2024 Capital Expenditure Guidance Summary
2024 Capital Expenditure Guidance Summary ▪ Capital expenditures are inline with last year Capital Expenditures1,2 ($M) 2024 ▪ The majority of sustaining capital Candelaria (100%) $300 expenditures for 2024 include: Caserones (100%) $205 ▪ Open pit waste stripping Chapada $110 ▪ Underground mine dev
Slide 40: Exploration
Exploration Track record of exploration success
Slide 41: Proven Exploration Success: Candelaria case study
Proven Exploration Success Candelaria case study Since Lundin Mining’s Mine life Nearly Over Over 2014 acquisition of Candelaria: Extended 160% and production profile improved1 in forecast copper production 256% 320% in M&I Mineral Resource1,2 increase in M&I Mineral Resource over the life-of-mine (
Slide 42: Mineral Reserves & Mineral Resources
Mineral Reserves & Mineral Resources
Slide 43: 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 44: 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 45: NI 43-101
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
Slide 46: 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.