Lundin Mining Corporation · TSX:LUN
Lundin Mining — TD Securities Mining Conference 2020
33 slides from Lundin Mining's conference presentation, Jan 23, 2020
Slide 1: TD Securities Mining Conference
TD Securities Mining Conference January 23, 2020 TSX: LUN Nasdaq Stockholm: LUMI 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 is “forward-looking information” within the meaning of applicable Canadian securities laws. All statements other than statements of hi
Slide 3: Lundin Mining – Our Strategy
Lundin Mining Our Strategy Operate, upgrade and grow a base metals portfolio that provides leading returns for our shareholders throughout the cycle • copper dominant • competitive cost position Eagle Zinkgruvan • low-risk mining jurisdictions, Nickel-Copper-PGMs in U.S.A. Zinc-Lead-Copper in Sweden
Slide 4: Responsible Mining
Responsible Mining Safety Total Recordable Injury Frequency • 2020 safety objective remains Zero Harm per 200,000 person hours worked • top-third performance of Western world mines Social • leading ISS Environment & Social Quality Scores 3.5 • strong stakeholder engagement and increased social inves
Slide 5: Increasing Production Profile
Increasing Production Profile1 (kt) Copper Zinc Nickel 294 - 318 227 - 237 272 - 296 15 - 18 15 - 18 18 +30% 13 172 - 187 +50% including 180-200 koz 235 gold in 2020-212 152 152 200 2018A 2019A 2020 2021 2018A 2019A 2020 2021 2018A 2019A 2020 2021 1. Production profile based on certain estimates and
Slide 6: Notable Recent Events
Notable Recent Events 1 Sale of Non-Core Interest in Kokkola Cobalt Refinery • Freeport Cobalt joint venture sold its non-core stake in Kokkola cobalt refinery and related cobalt cathode precursor business • total cash consideration of approximately $200M; 30% attributable to Lundin Mining • receive
Slide 7: Candelaria
Candelaria Increasing Production Profile • 2019 copper production increased 9% year-on-year to 146,330 t Copper Production & Cash Cost Outlook (100% basis; kt & $/lb Cu, net of by-product credits) • positioned to deliver a further 16% copper production increase in 2020, at reduced cash costs, as ben
Slide 8: Chapada
Chapada Strong First Quarters Under Lundin Mining Ownership • copper production exceeded and gold production achieved 2019 guidance Copper, Gold Production & Cash Cost Outlook (100% basis; kt Cu, koz Au & $/lb Cu, net of by-product credits) • forecast annual copper production to be between 51,000 t
Slide 9: Chapada Production Profile
Chapada Production Profile1,2 120 100 Metal Production 80 60 40 20 0 2019A 2020 2023 2026 2027 2030 2033 2036 2037 2040 2043 2044 2046 2047 2050 2021 2022 2024 2025 2028 2029 2031 2032 2034 2035 2038 2039 2041 2042 2045 2048 2049 Copper (kt) Gold (koz) 1. Production shown is based on the NI 43-101 T
Slide 10: Chapada Near-Mine Exploration
Chapada Near-Mine Exploration Near Mine Deposits Jatobá + Chapada Buriti Norte Sucupira/Cava Norte Baruzinho Baru/Baru NE SW Mina Interpit Corpo Sul Santa Cruz Buriti Hidrotermalito Buriti Norte Sucupira SW Corpo Sul / Santa Cruz Chapada deposits and near-mine exploration targets 10
Slide 11: Neves-Corvo
Neves-Corvo Increasing Zinc Production Profile • achieved 2019 copper and zinc production guidance • 2020 zinc production is forecast to increase 37% over 2019 production as the ZEP is Copper, Zinc Production & Cash Cost Outlook commissioned and ramped-up during the year (kt & $/lb Cu, net of by-pro
Slide 12: Neves-Corvo – ZEP
Neves-Corvo – ZEP Underground Construction Progress • development of lower stopes well underway with first two sublevel accesses continuing • installation of 3.5 km of underground conveyor systems well advanced • underground jaw crusher installation nearing completion • first phase of the hoisting s
Slide 13: Neves-Corvo – ZEP
Neves-Corvo – ZEP Surface Construction Progress work continued with focus on: • mechanical, electrical and instrumentation installation of materials handling system • backfill cyclone station piping installation • SAG mill motor and hopper installation • tailings and water supply piping systems • fl
Slide 14: Eagle
Eagle Consistent Operating Performance • achieved 2019 production guidance for both nickel and copper • 2020 nickel production to increase more than 3,000 t (22%) over 2019, at reduced cash Nickel, Copper Production & Cash Cost Outlook costs, as higher-grade Eagle East ore contributes to the mill fe
Slide 15: Zinkgruvan
Zinkgruvan Improved Mine & Mill Performance • 2019 production of 78,313 t zinc and 2,906 t of copper achieved guidance for both metals Zinc Production & Cash Cost Outlook • zinc, lead and copper production were greater year-on-year in 2019 as a result of (kt & $/lb Zn, net of by-product credits) sus
Slide 16: 2020 Capital & Exploration Expenditure Guidance
2020 Capital & Exploration Expenditure Guidance Capital Expenditures1 Aggressive In and Near-Mine Exploration • Candelaria capital expenditures to decrease compared to • $65M to be invested in 2020 in exploration programs 2018 & 2019 reinvestment years as low-risk initiatives to increase value of op
Slide 17: Lundin Mining
Lundin Mining High Quality Meaningful Scale Financial Strength Competitive Mines Growth Oriented • strong margins at all operations • materially increasing copper and zinc • proven track record for rigorous investment production profile approach, focused on value creation • demonstrated operational
Slide 18: Appendices
Appendices lundin mining 18
Slide 19: Responsible Mining
Responsible Mining We recognize the important role of the metals we produce and are committed to mining these metals responsibly We demonstrate this commitment through living our core values of Safety, Respect, Integrity and Excellence in all aspects of our decision-making Lundin Mining has been rep
Slide 20: Candelaria Complex – Mineral Resources and Mineral Reserves
Candelaria Complex – Mineral Resources and Mineral Reserves1 Ownership 80% Location Region III, Chile Mine life 22 years 2020 exploration budget $20M P&P Copper Mineral Reserves 3,604 kt contained (663,696 kt at 0.5%) M&I Copper Mineral Resources 6,495 kt contained (998,635 kt at 0.7%) Inferred Copp
Slide 21: Candelaria Copper Production Profile
Candelaria Copper Production Profile1 (kt) 190 190 192 194 184 185 175 175 171 175 167 156 160 152 151 146 146 135 136 114 96 84 69 45 10 2016A 2017A 2018A 2019A 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 December 2018 Technical Report De
Slide 22: Candelaria Mine Fleet Reinvestment
Candelaria Mine Fleet Reinvestment Significantly Increased Production Profile and Extended Mine Life on Exploration Success • 20-year LOM when the open pit began production in 1994; most open pit equipment dated back to when operation opened • Mineral Reserve estimate now supports mine life to beyon
Slide 23: Candelaria Mill Optimization Project
Candelaria Mill Optimization Project Low-Risk Investments to Increase Metal Production, Reduce Costs and Improve Safety • primary crusher motor upgrade • ball mill re-powering; pebble circuit upgrade; cyclone and feed pump upgrades • flotation circuit upgrades • front-end desalination plant and pipe
Slide 24: Candelaria Underground Mine Expansions
Candelaria Underground Mine Expansions Significant Underground Exploration Success Under Lundin Mining Ownership • total estimated Candelaria underground Mineral Reserves1 now 148.2Mt at 0.85% copper • Candelaria North and South Sectors continues to show significant exploration potential Increasing
Slide 25: Chapada – Mineral Resources and Mineral Reserves
Chapada – Mineral Resources and Mineral Reserves1 Ownership 100% Location Goiás State, Brazil Mine life 31 years 2020 exploration budget $10M P&P Copper Mineral Reserves 1,757 kt contained (738,789 kt at 0.24%) M&I Copper Mineral Resources 2,590 kt contained (1,090,829 kt at 0.23%) Inferred Copper M
Slide 26: Chapada – General Overview
Chapada – General Overview Alto • located in northern Goiás State Horizonte • 270 km northwest of national capital of Brasilia and 320 km north of state capital of Goiânia • supported by road access with good connections to the local and national road network • average elevation of approximately 300
Slide 27: Chapada Processing Facilities Overview
Chapada Processing Facilities Overview Conventional Crush, Grind, Float Processing Plant • single-line plant to treat sulphide ores Plant Facilities • current capacity of 65,000 tpd or 24.0 Mtpa • produces a high-quality gold-rich copper Mine concentrate Power Facilities • in 2018 the mill: Substati
Slide 28: Chapada Tailings Storage Facility (TSF)
Chapada Tailings Storage Facility (TSF) • TSF is located northwest of Chapada open pit • all dams raised by centerline methods Main • Main Dam and Dyke III comprise compacted earth Dam fill starter dams raised with cyclone tailings • Dyke II is a compacted earth fill dam for water retention • Main D
Slide 29: Eagle Mine – Mineral Resources and Mineral Reserves
Eagle Mine – Mineral Resources and Mineral Reserves1 Ownership 100% Location Michigan, USA Mine life 5 years P&P Nickel Mineral Reserves 108 kt contained (4,119 kt at 2.6%) M&I Nickel Mineral Resources 132 kt contained (4,022 kt at 3.3%) P&P Copper Mineral Reserves 91 kt contained (4,119 kt at 2.2%)
Slide 30: Neves-Corvo – Mineral Resources and Mineral Reserves
Neves-Corvo – Mineral Resources and Mineral Reserves1 Ownership 100% Location Alentejo region, Portugal Mine life +10 years 2020 exploration budget $10M P&P Zinc Mineral Reserves 2,214 kt contained (29,669 kt at 7.5%) M&I Zinc Mineral Resources 4,958 kt contained (71,444 kt at 6.9%) Inferred Zinc Mi
Slide 31: Zinkgruvan – Mineral Resources and Mineral Reserves
Zinkgruvan – Mineral Resources and Mineral Reserves1 Ownership 100% Location Askersund, Sweden Mine life +10 years 2020 exploration budget $15M P&P Zinc Mineral Reserves 803 kt contained (10,816 kt at 7.4%) M&I Zinc Mineral Resources 1,633 kt contained (20,275 kt at 8.1%) Inferred Zinc Mineral Resou
Slide 32: 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 33: www.lundinmining.com
www.lundinmining.com | TSX: LUN | Nasdaq Stockholm: LUMI