Slide 1: Second Quarter 2017 Results
TSX: LUN OMX: LUMI Second Quarter 2017 Results July 27, 2017 Neves-Corvo, Portugal 1
Slide 2: Cautionary Statements
Cautionary Statements Caution Regarding Forward-Looking Information and Non-GAAP Performance Measures All statements, other than statements of historical fact, made and information contained or incorporated by reference in or made in giving this presentation and responses to questions is "forward-lo
Slide 3: Participants
Participants President & Paul Conibear Chief Executive Officer Senior Vice President & Marie Inkster Chief Financial Officer Vice President Steve Gatley Technical Services 3
Slide 4: Operating Highlights – Q2/17
Operating Highlights – Q2/17 Operations Delivered Strong Aggregate Performance All Growth Projects Advancing on Schedule and on Budget Candelaria had excellent copper production on higher head grades and recoveries; we expect production to be at the high end of our guidance, offsetting below expecta
Slide 5: Revenue Breakdown – Q2/17
Revenue Breakdown – Q2/17 Sales of $455M Lead Other 4% 2% Gold 6% Zinkgruvan Nickel 11% 7% Eagle 14% Zinc 14% Neves-Corvo Candelaria Copper 16% 59% 67% By Operation By Metal 5
Slide 6: Attributable Net Earnings from Continuing Operations
Attributable Net Earnings from Continuing Operations Net earnings from continuing operations attributable to Lundin Mining shareholders increased compared to the same period last year mainly due to comparative changes in operating earnings slightly offset by a higher tax expense $8.8M $84.0M $21.6M
Slide 7: Operating Earnings – Q2/17
Operating Earnings – Q2/17 Operating earnings increased 76% compared to the same period last year mainly due to metal prices $236.2M $11.2M $7.7M $73.6M $134.5M $9.2M Q2/16 Volume Price & Adj. Cost FX and Other Q2/17 7
Slide 8: Financial Highlights – Q2/17
Financial Highlights – Q2/17 Q2/17 Q2/16 Δ Realized Metal Prices1 Copper $2.59/lb $2.11/lb 23% Nickel $3.78/lb $4.36/lb -13% Zinc $1.20/lb $0.94/lb 28% Revenue $455M $342M 33% Operating Earnings $236M $135M 76% Attributable Net Income / (Loss) from $49M ($20M) na Continuing Operations $0.07/sh ($0.0
Slide 9: Balance Sheet Strength and Flexibility
Balance Sheet Strength and Flexibility Cash balance at July 26, 2017 of approximately $2.1B and net cash of approximately $1.1B - closed sale of interest in TF Holdings Limited in April 2017 receiving net proceeds of $1.121B $350M revolving credit facility undrawn Cash and Cash Equivalents (End of Q
Slide 10: Capital Allocation Strategy Focus on Disciplined Growth
Capital Allocation Strategy Focus on Disciplined Growth Invest in high-return brownfield expansion projects and exploration Service regular dividend Prudent and accretive management of bond debt and cash positions Keep flexible balance sheet to move quickly on compelling growth opportunities Conside
Slide 11: 2017 Production and Cash Cost Guidance
2017 Production and Cash Cost Guidance Increased production guidance at Candelaria and Eagle; lowered copper guidance at Neves-Corvo; C1 cash cost guidance improved for Eagle Attributable Production1 and C1 Cash Cost2 (kt and $/lb, net of by-products) Previous Guidance Revised Guidance Copper Candel
Slide 12: 2017 Capital Expenditure and Exploration Guidance
2017 Capital Expenditure and Exploration Guidance Prior Revised Capital Expenditures1 (US$M) Los Diques estimated cost unchanged at $295M Guidance Guidance - $85M remaining in H2/17 and $30M in 2018 Total Capitalized Stripping2 105 110 Los Diques Facility 120 135 Candelaria Other Candelaria Sustaini
Slide 13: Candelaria
Candelaria Copper / Gold / Silver – Region III, Chile 13
Slide 14: Candelaria
Candelaria Q2/17 copper production of 52.8 kt (100% basis) - $1.08/lb copper cash cost - higher production due to higher grades and recoveries Copper Production & Cash Cost (100% basis; kt & $/lb Cu, net of by-product credits) Full-year production guidance increased - 184-188 kt (100% basis) Last Fi
Slide 15: Candelaria – Los Diques Tailings Storage Project
Candelaria – Los Diques Tailings Storage Project 15 As at July 4, 2017
Slide 16: Eagle
Eagle Nickel / Copper / PGMs – Michigan, U.S.A. 16
Slide 17: Eagle
Eagle Q2/17 production of 5.8 kt nickel and 5.7 kt copper - first-quartile cash cost of $1.02/lb nickel Nickel, Copper Production & Cash Cost (kt & $/lb Ni, net of by-product credits) 2017 cash cost guidance improved - lowered by 33% to $1.35/lb nickel, from $2.00/lb Last Five Quarters 6.8 - nickel
Slide 18: Eagle and Eagle East Overview
Eagle and Eagle East Overview Existing Access Ramp Eagle Mine Now Advancing Both Declines Eagle East Deposit 1,000 m 18
Slide 19: Neves-Corvo
Neves-Corvo Copper / Zinc – Portugal 19
Slide 20: Neves-Corvo
Neves-Corvo Q2/17 production of 8.1 kt copper and 18 kt zinc Copper, Zinc Production & Cash Cost (kt & $/lb Cu, net of by-product credits) - $1.00/lb copper cash cost unchanged Last Five Quarters - full-year copper production guidance lowered 18.3 17.9 18.0 17.6 15.9 - mine sequencing and complex or
Slide 21: Zinkgruvan
Zinkgruvan 21 Zinc / Lead / Copper – Sweden
Slide 22: Zinkgruvan
Zinkgruvan Q2/17 production of 18.2 kt zinc - production and cash cost in line with expectations 1350 Zinc Expansion Project Zinc, Lead Production & Cash Cost - overall ~10% mill capacity increased (kt & $/lb Zn, net of by-product credits) commissioned in late Q2/17 on schedule and on budget Last Fi
Slide 23: Exploration areas
Karlstad { 2 Zinkgruvan Hailed ib stage (3 (Soil ee Vas ae ta oct > ae’ Zinc - Lead ore ¢ gy Orebro > 1 Mined out area Vanem pixerpand * - ° a Copper ore 2 NORTH Wesy, © Peloration areas
Slide 24: 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 at all operations approach, focused on - demonstrated operational v
Slide 25: TSX: LUN OMX: LUMI
TSX: LUN OMX: LUMI 25