Slide 1: Corporate Update
TSX: LUN OMX: LUMI Corporate Update September 2016
Slide 2: Cautionary Statements
Cautionary Statements Caution Regarding Forward-Looking Information and Non-GAAP Performance Measures 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 histor
Slide 3: Globally Diversified Portfolio
Globally Diversified Portfolio Zinkgruvan Freeport Cobalt1 Zinc-Lead-Copper Cobalt Refinery (Sweden) (Finland) Eagle Nickel-Copper (USA) Neves-Corvo Copper-Zinc (Portugal) Tenke Fungurume1 Copper-Cobalt (DRC) Candelaria2 Copper-Gold-Silver (Chile) • Operations: 6 underground mines and 1 large open p
Slide 4: Operating Highlights
Operating Highlights Operations performed well in the first half 2016 Positioned to meet or exceed full-year guidance on metal production, capital spending, and cash costs • Copper production guidance increased to reflect above plan Copper production, primarily on greater throughput at Candelaria
Slide 5: 2016 First Half Revenue Breakdown
2016 First Half Revenue Breakdown • Majority of sales were from Candelaria with good contribution from each of Neves-Corvo, Eagle and Zinkgruvan • 67% of sales derived from copper; increasing contribution from zinc revenues Sales Breakdown by Mine Sales Breakdown by Metal Other Zinkgruvan Lead 3% 10
Slide 6: Balance Sheet Remains Strong
Balance Sheet Remains Strong • Net debt position improved by ~$100M during first half of 2016 to $342M • Cash position increased to $658M and working capital to $780M • $350M revolving credit facility remains undrawn Cash and Cash Equivalents Liquidity Position (Jun. 30, 2016) 35% $658M $1.0B $550M
Slide 7: 2016 Production and Cash Cost Guidance
2016 Production and Cash Cost Guidance Metal and Mines Production (Tonnes)1 C1 Cash Costs2 Candelaria (80%) 128,000 – 132,000 $1.35/lb Eagle 20,000 – 23,000 Neves-Corvo 50,000 – 55,000 $1.55/lb Copper Zinkgruvan 2,500 – 3,000 Tenke (@24%) 52,800 $1.28/lb Total attributable 253,300 – 265,800 Eagle 21
Slide 8: 2016 Capital Expenditure and Exploration Guidance
2016 Capital Expenditure and Exploration Guidance Reduction of capital expenditures from previous guidance a result of project deferrals and cost savings achieved at Candelaria and Neves-Corvo Capital Expenditures1 (US$M) 2016 • Capital expenditures for 2016 reduced by $35M (from $220M) Total Capita
Slide 9: Operational Overview and Outlook
Operational Overview and Outlook Eagle (100%) Neves-Corvo (100%) Candelaria (80%) Zinkgruvan (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 H1/16 Results and Outlook
Candelaria H1/16 Results and Outlook • H1/16 cash cost of $1.25/lb copper. H1/16 AISC Location Chile of $1.56/lb, in line with H1/15 despite lower Ownership 80% head grades 2016 Production 128,000-132,000 t Cu Guidance (80%) • Los Diques project progressing under budget 2016 Cost Guidance $1.35/lb C
Slide 12: Candelaria Complex Mineral Reserves and Resources
Candelaria Complex Mineral Reserves and Resources June 30, 2016 (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 337,631 0.5 0.1 1.8 1,822 1,400 19,000 WIP 93,772 0.3 0.1 1.4 321 300 4,000 U
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 H1/16 Results and Outlook
Eagle H1/16 Results and Outlook • H1/16 cash cost of $1.68/lb Ni and AISC of Location Michigan, USA $2.05/lb were 7% and 13% improvements, Ownership 100% respectively, over H1/15 2016 21,000–24,000 t Ni › Owing to targeted efforts on cost savings Production Guidance 20,000–23,000 t Cu and despite lo
Slide 15: Eagle East Update
Eagle East Update • Feasibility Study targeted for completion by year end 2016 • Development ramp commenced on July 12, 2016 15
Slide 16: Eagle East – Potential Meaningful Addition to Profile
Eagle East – Potential Meaningful Addition to Profile • Preliminary Economic Assessment on Eagle East completed in June 2016* Nickel Production Copper Production 25 25 20 20 15 15 KT KT 10 10 5 5 0 0 2016 2017 2018 2019 2020 2021 2022 2023 2016 2017 2018 2019 2020 2021 2022 2023 Year Year Eagle Eagl
Slide 17: Neves-Corvo (Cu/Zn), Portugal
Neves-Corvo (Cu/Zn), Portugal Situated 220 km southeast of Lisbon 17
Slide 18: Neves-Corvo H1/16 Results and Outlook
Neves-Corvo H1/16 Results and Outlook Location Portugal • Zinc production in H1/16 greater than Ownership 100% comparable periods on improved 2016 Production 50,000–55,000 t Cu throughput, ore grades and recoveries Guidance 65,000–70,000 t Zn 2016 Cost Guidance $1.55/lb Cu › Sustained improvements i
Slide 19: Zinkgruvan (Zn/Pb/Cu), Sweden
Zinkgruvan (Zn/Pb/Cu), Sweden Situated 200 km southwest of Stockholm 19
Slide 20: Zinkgruvan H1/16 Results and Outlook
Zinkgruvan H1/16 Results and Outlook • H1/16 zinc production in line with H1/15; Location Sweden higher lead grades resulted in 21% higher Ownership 100% lead production 2016 Production 80,000–85,000 t Zn Guidance 2,500-3,000 t Cu • H1/16 cash cost of $0.35/lb zinc and AISC 2016 Cost Guidance $0.40/
Slide 21: Tenke Fungurume (Cu/Co), DRC
Tenke Fungurume (Cu/Co), DRC Situated 175 km northwest of Lubumbashi 21
Slide 22: Tenke H1/16 Results and Outlook
Tenke H1/16 Results and Outlook • Q2 Copper production of 55 kt (100%) Democratic Location benefited from higher mill throughput Republic of Congo and recoveries. Q2 Cobalt production of Ownership 24% 4.3 kt (100%) 2016 Production Guidance 52,800 t Cu (attributable share) 2016 Costs1 $1.28/lb Cu • C
Slide 23: Lundin Mining Well Positioned in Any Market
Lundin Mining Well Positioned in Any Market High quality, competitively positioned mines Diversified base metals and geographic asset base Meaningful production scale Strong cash flows with focus on preservation of margins Conservative balance sheet with low leverage ratios 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%) 128,000 – 132,000 120,000 – 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: Candelaria Integrated Mining Complex
Candelaria Integrated Mining Complex Alcaparrosa • Successful operating Tierra Amarilla Mine track record • Large prospective Santos Mine regional mineral property position Candelaria near mine Norte Ojos-Plant PAC • Opportunity to continue to extend Candelaria Open Pit mine life with Magnetite Plan
Slide 27: Candelaria Complex LOM Copper Production Profile
Candelaria Complex LOM Copper Production Profile1 200 180 174 161 163 165 154 156 145 146 160 144 123 140 125 115 125 120 110 112 97 KT 100 80 60 60 40 20 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Cu (kt) - New Cu (kt) - Old • Profile reflects September 2
Slide 28: Eagle Mine and Eagle East Deposit Overviews
Eagle Mine and Eagle East Deposit Overviews Grade Ni Grade Cu Contained Ni Contained Cu K Tonnes (%) (%) (kt) (kt) Eagle P&P 3,717 2.5 2.2 95 82 M&I 3,671 3.3 2.7 119 99 Inferred 44 1.1 1.1 0.5 0.5 Eagle East Inferred 1,180 5.1 4.3 61 51 28
Slide 29: Neves-Corvo Site Overview
Neves-Corvo Site Overview Grade Contained Grade Contained Copper K Tonnes (%) (k tonnes) Zinc K Tonnes (%) (k tonnes) P&P 26,139 2.7 694 P&P 23,449 7.2 1,678 M&I 69,986 2.7 1,857 M&I 106,819 6.1 6,527 Inferred 12,758 1.7 222 Inferred 11,386 4.4 499 29
Slide 30: Zinkgruvan Site Overview
Zinkgruvan Site Overview Grade Zn Grade Pb Contained Zn Contained Pb K Tonnes (%) (%) (k tonnes) (k tonnes) P&P 10,770 8.0 3.3 861 354 M&I 16,090 9.4 3.9 1,511 627 Inferred 7,862 8.3 3.6 653 283 30
Slide 31: 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 144,362 2.6 0.4 3,760 510 M&I 680,341 2.5 0.3 16,857 1,832 Inferred 531,651 2.2 0.2 11,594 1,291 31
Slide 32: 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 33: Thank You
TSX: LUN OMX: LUMI Thank You