Lundin Mining Corporation · TSX:LUN
Lundin Mining — Investor Presentation (November 2020)
27 slides from Lundin Mining's investor presentation, November 2020
Slide 1: Corporate Presentation
Corporate Presentation November 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 This document contains “forward-looking information” within the meaning of Canadian securities laws. All statements other than statements of historical facts constitute forward-looking information,
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 Sustainability Reporting • 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-maki
Slide 5: Responsible Mining: Safety – Foremost Value
Responsible Mining Safety – Foremost Value Total Recordable Injury Frequency • we hold health and safety as our top priority in everything we do per 200,000 person hours worked • we believe that all occupational injuries and work-related illnesses are preventable. Our aim is Zero Harm • on-track for
Slide 6: Q1-Q3 2020 Summary Results
Q1-Q3 2020 Summary Results Production Payable Sales 188,896 t of copper 184,034 t of copper 101,316 t of zinc 85,274 t of zinc 128,000 oz of gold 120,000 oz of gold 11,809 t of nickel 8,767 t of nickel 21,170 t of lead 21,482 t of lead $1,512M in Sales Lead Other Sweden 2% 3% 6% Nickel 7% Portugal Z
Slide 7: Candelaria
Candelaria Throughput Improved to Achieve Production Growth • Q1-Q3/20 production of 107,193 t of copper Copper, Gold Production & Cash Cost1 Outlook (100% basis; kt Cu, koz Au & $/lb Cu, net of by-product credits) and 63,000 oz of gold at cash cost of $1.34/lb of copper 185-195 Avg. +190 • ore mill
Slide 8: 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 4 4 4 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 Rep
Slide 9: Chapada
Chapada Strong Operational Performance – Full Capacity in December Copper, Gold Production & Cash Cost1 Outlook • Q1-Q3/20 production of 38,670 t of copper (100% basis; kt Cu, koz Au & $/lb Cu, net of by-product credits) and 65,000 oz of gold at first-quartile copper cash cost of $0.44/lb 80-85 • Q3
Slide 10: Chapada Production Profile
Chapada Production Profile1,2 120 100 Metal Production 80 60 40 20 0 3 3 3 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
Slide 11: Neves-Corvo
Neves-Corvo Zinc Expansion Project (ZEP) January 2021 Official Restart • ZEP to double current zinc production capacity and improve per unit operating costs Copper, Zinc Production & Cash Cost Outlook • work continued in H2/20 on the surface and underground construction sites to (kt & $/lb Cu, net o
Slide 12: Zinkgruvan
Zinkgruvan Positioned for Strong Finish to 2020 & Start to 2021 • zinc production increased 38% in Q3/20 over Q2/20 on improved head grade and Zinc Production & Cash Cost Outlook throughput (kt & $/lb Zn, net of by-product credits) • plans call for mining of high-grade stopes driving increased zinc
Slide 13: Eagle
Eagle Generating Meaningful FCF1 • first-quartile cash costs with minimal capex to continue through 2025 Nickel, Copper Production & Cash Cost Outlook (kt & $/lb Ni, net of by-product credits) • $81M of FCF in first three quarters of 2020, including $27M of FCF in Q3/20 • 2020 sustaining capital exp
Slide 14: Capital Allocation
Capital Allocation Capital Return & Disciplined Growth • given financial strength, capital return and disciplined growth are not mutually exclusive • few actionable opportunities in current market for M&A that would maintain or improve quality of asset portfolio Peer-Leading Dividend Yield • annuali
Slide 15: Lundin Mining
Lundin Mining High Quality Meaningful Scale Financial Strength Competitive Mines Growth Oriented • demonstrated operational excellence and • materially increasing copper and zinc • proven track record for rigorous investment culture of continuous improvement production profile approach, focused on v
Slide 16: www.lundinmining.com
www.lundinmining.com | TSX: LUN | Nasdaq Stockholm: LUMI
Slide 17: Appendices
Appendices lundin mining
Slide 18: 2020 Guidance Summary
2020 Guidance Summary1 Production C1 Cash (contained metal in conc.) Cost2 Capital Expenditures ($M) Copper (t) Candelaria (100%) Under Review N/A Sustaining 3 Chapada 45,000 - 50,000 $0.55 Candelaria (100% basis) Under Review Eagle 17,000 - 19,000 Chapada 40 Neves-Corvo 32,000 - 34,000 $2.103 Eagle
Slide 19: Candelaria Complex – Mineral Resources and Mineral Reserves
Candelaria Complex – Mineral Resources and Mineral Reserves1 Ownership 80% Location Region III, Chile Mine life +20 years 2020 exploration budget $15M P&P Copper Mineral Reserves 3,656 kt contained (684,445 kt at 0.5%) M&I Copper Mineral Resources 7,574 kt contained (1,179,253 kt at 0.6%) Inferred C
Slide 20: Candelaria Reinvestments
Candelaria Reinvestments Mine Fleet Reinvestment • significantly increased production profile and extended mine life on exploration success. Mineral Reserve estimate now supports mine life to beyond 2040 • new equipment increases haulage efficiency. 38 new latest generation CAT 793F trucks which are
Slide 21: 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 22: Chapada – Mineral Resources and Mineral Reserves
Chapada – Mineral Resources and Mineral Reserves1 Ownership 100% Location Goiás State, Brazil Mine life +30 years 2020 exploration budget $7M P&P Copper Mineral Reserves 1,759 kt contained (759,652 kt at 0.23%) M&I Copper Mineral Resources 2,639 kt contained (1,132,198 kt at 0.23%) Inferred Copper M
Slide 23: 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 100 kt contained (3,909 kt at 2.6%) M&I Nickel Mineral Resources 113 kt contained (3,807 kt at 3.0%) P&P Copper Mineral Reserves 84 kt contained (3,909 kt at 2.1%)
Slide 24: 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 $2M P&P Zinc Mineral Reserves 2,200 kt contained (30,114 kt at 7.3%) M&I Zinc Mineral Resources 4,938 kt contained (71,253 kt at 6.9%) Inferred Zinc Min
Slide 25: Zinkgruvan – Mineral Resources and Mineral Reserves
Zinkgruvan – Mineral Resources and Mineral Reserves1 Ownership 100% Location Askersund, Sweden Mine life +10 years 2020 exploration budget $7M P&P Zinc Mineral Reserves 690 kt contained (8,786 kt at 7.9%) M&I Zinc Mineral Resources 1,955 kt contained (22,596 kt at 8.6%) Inferred Zinc Mineral Resourc
Slide 26: 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 27: www.lundinmining.com
www.lundinmining.com | TSX: LUN | Nasdaq Stockholm: LUMI
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