Slide 1: Corporate Update
TSX: LUN OMX: LUMI Corporate Update January 17, 2012
Slide 2: Cautionary Statements
Cautionary Statements Caution Regarding Forward Looking Statements This presentation contains forward‐looking forward looking statements. statements These forward‐looking forward looking statements are not based on historical facts, but rather on current expectations and projections about future eve
Slide 3: Key Asset Overview
Key Asset Overview • European Operations • Tenke Fungurume • Growth Projects • Neves‐Corvo, Portugal • Tier 1 Cu/Co asset • Lombador Phases I & II (Cu/Zn) • 24% interest i • Semblana • Zinkgruvan, Sweden • Freeport‐McMoRan • Exploration (Zn/Pb/Cu) operator • Aguablanca, Spain • Phase II Expansion to
Slide 4: Corporate Strategy
Corporate Strategy Near‐Term Objectives: • Enhance operations p performance p and debottleneckingg • Complete underground materials handling studies at Neves‐ Corvo focused on Lombador and Semblana projects • Aggressive exploration program on new Neves‐Corvo targets Medium‐Term Objectives: • Growth
Slide 5: Corporate Profile
Corporate Profile Stock Listings: Toronto: LUN Stockholm: LUMI Basic Shares Outstanding: 582,475,287 Recent Share Price – Jan. 13, 2012 C$4.53 52‐Week share price range: C$3.17 – C$9.31 Market Capitalization: p C$2,639M Avg. Daily Volume – Shares (TSX): 4.96M Avg. Daily Volume – Shares (OMX): 4.14M
Slide 6: Strong Financial Position
Strong Financial Position • Excellent rebuilding of Balance Sheet Cash: +465% Debt: ‐80% Net Cash: +$404M 6
Slide 7: Key Objectives - 2012
Key Objectives ‐ 2012 Focus on operational improvements and mine performance Complete drilling on all high high‐priority priority targets at Neves Neves‐Corvo Corvo Advance Underground Materials Handling Investment at Neves‐ Corvo Tenke Phase 2: 70K tonnes Cu Expansion – on budget startup prior
Slide 8: Operational Performance & Outlook
Operational Performance & Outlook 8
Slide 9: 2011 Production Results
2011 Production Results • Copper production outperforms October guidance figures • Zinc and lead production in‐line with latest guidance 2011 2011 (contained tonnes) Production Guidance Tonnes Tonnes Neves‐Corvo Cu 74,109 70,000 Zn 4,227 4,500 Zinkgruvan Zn 75,147 76,000 Pb 32,339 34,000 Cu 1,768 1,
Slide 10: 2012-2014 Production Guidance
2012‐2014 Production Guidance 10
Slide 11: Neves-Corvo - 2011 Results
Neves‐Corvo – 2011 Results • Record tonnes mined and milled • Copper production of 74,109 tonnes (vs. guidance of 70,000 t) • Q4/11 ‐ Production from high grade stopes (avg 3.4% Cu) resulted in production of 26,866 tonnes copper • Semblana Inferred Resource of 6.58Mt @ 3.0% Cu, 24 g/t Ag • Ongoing d
Slide 12: Neves-Corvo - 2012 Outlook
Neves‐Corvo – 2012 Outlook • Multiple internal projects underway to improve operations • Significantly expanded zinc production with new circuit • Capital investment: Sustaining $57M, New Projects $58M • Lombador Phase 1 underground g project p j advancingg on track • Expanded Semblana and “new targ
Slide 13: Neves-Corvo Growth - Lombador & Semblana
Neves‐Corvo Growth ‐ Lombador & Semblana Main Ramp Shaft 13
Slide 14: Neves-Corvo - Multiple New Targets Identified
Neves‐Corvo – Multiple New Targets Identified 14
Slide 15: Zinkgruvan - 2011 Results
Zinkgruvan – 2011 Results • Record tonnes mined and milled in 2011 • Zinc production of 75,147 tonnes (vs. guidance of 76,000 t) • Q4/11 production of 20,337 tonnes zinc & 7,621 tonnes lead • New rampp from surface highly g y successful. Mine continues to outpace mill capacity • New senior personnel
Slide 16: Zinkgruvan - 2012 Outlook
Zinkgruvan – 2012 Outlook • Pursuing incremental improvements • Debottlenecking of materials handling system • Increased I d investment i in i underground d d exploration l i • 2012 capital investment; Sustaining $35M, New Projects $7M 16
Slide 17: Aguablanca - Update and Outlook
Aguablanca – Update and Outlook • Re‐instatement of the ramp and pre‐stripping progressing well • Restart nickel/copper / pp p production p prior to yyear end • Underground study in progress targeting the addition of higher grade material in parallel to open pitting Location • Spain Ownership p • 10
Slide 18: Tenke - Overview
Tenke – Overview • Going into its fourth year of production • Mineral e a reserves ese es as at Decec 3 31,, 2010 0 0 • 145.1 million tonnes @ 2.8% Cu; 0.3% Co • Mineral resources as at Dec 31,, 2010 •Measured & Indicated 455.7 million tonnes @ 2.7% Cu, 0.3% Co •Inferred 218.2 million tonnes @ 2.0%
Slide 19: Tenke Expansion Plans
Tenke Expansion Plans Phase 2 (Underway) • Relatively simple oxide, agitated leach expansion from 130 to 195 ktpa Cu cathode, 15 ktpa Co Future Possible Expansions • Potential Heapp Leach of low grade ore utilizing excess Phase 2 SX‐EW capacity • Multi‐phased M lti h d mixed i d & Sulfide S lfid exp
Slide 20: Tenke - Phase 2 Expansion
Tenke – Phase 2 Expansion • US$850 million incremental expansion capex • Funding obligations split 70:30 between FCX and Lundin • Expected to be funded out of surplus cash from Tenke operations • Scheduled startup late 2012 • Project on schedule/on h l / budget b Tank House Expansion 20
Slide 21: 2012 Exploration Programs
2012 Exploration Programs Exploration budget increased to $50 m in 2012 (from ~$43 m ‐ 2011) • Portugal g ‐ Semblana drilling continues to intersect thick sections of resource‐grade Cu mineralization. Drilling ramped up on new 3D targets. • Ireland ‐ Clare (Zn‐Pb‐Ag) properties ‐ Multiple targets be
Slide 22: Lundin Mining - Summary
Lundin Mining ‐ Summary • High quality, long life reserves; exploration upside • A stake in Tenke ‐ a unique, unique world world‐class class copper mine • Strong balance sheet and ongoing cash flows • Fully‐funded Fully funded organic growth profile • High leverage to copper and zinc • Very V compel
Slide 23: Thank You
TSX: LUN OMX: LUMI THANK YOU