National Bank of Canada to release its third quarter 2025 results on August 27, 2025 at 6:30 a.m. EDT Français
Presentation materials referenced during the call will be posted on the Bank's website at approximately 6:30 a.m. EDT. The conference call will be accessible via live Internet broadcast or by telephone in listen-only mode at 1-800-806-5484 or 416-340-2217 with access code 9962511#.
A recording will be available until November 27, 2025 at 1-800-408-3053 or 905-694-9451 with access code 5161030#.
About National Bank of Canada
With $536 billion in assets as at April 30, 2025, National Bank of Canada is one of Canada's six systemically important banks. The Bank has approximately 34,000 employees in knowledge-intensive positions and operates through three business segments in Canada: Personal and Commercial Banking, Wealth Management and Financial Markets. A fourth segment, U.S. Specialty Finance and International, complements the growth of its domestic operations. Its securities are listed on the Toronto Stock Exchange (TSX: NA). Follow the Bank's activities at nbc.ca or via social media.
SOURCE National Bank of Canada
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MCAN FINANCIAL GROUP RELEASES Q2 2025 RESULTS AND DECLARES 41 CENTS CASH DIVIDEND
Core business performing in current environment TORONTO, Aug. 6, 2025 /CNW/ - MCAN Mortgage Corporation d/b/a MCAN Financial Group ("MCAN", the "Company" or "we") (TSX: MKP) reported net income of $20.2 million ($0.51 earnings per share) for the second quarter of 2025, an increase from net income of $19.7 million ($0.52 earnings per share) in the second quarter of 2024. Second quarter 2025 return on average shareholders' equity 1 was 13.19% compared to 13.63% for the same period in the prior year. Our Q2 results were mainly impacted by higher mortgage spread income and higher income from MCAP partially offset by higher provisions for credit losses compared to the same prior year period. For YTD 2025, we reported net income of $36.8 million ($0.94 earnings per share), a decrease from net income of $43.0 million ($1.17 earnings per share) for the same prior year period. Return on average shareholders' equity 1 was 12.10% for YTD 2025 compared to 15.31% for the same prior year period. We reported lower total net income for YTD mainly as a result of higher provisions for credit losses due to the forecasted economic and geopolitical environment. We are committed to a strategy of managing controllable factors to protect our bottom line and capital. We expect to take advantage of opportunities that arise in the current market environment. We believe that we have a quality loan portfolio with conservative loan to value ratios supporting our loans. The Board of Directors declared a third quarter regular cash dividend of $0.41 per share to be paid on September 29, 2025 to shareholders of record as of September 15, 2025. As a mortgage investment corporation, we pay out all of our taxable income to shareholders through dividends. "We recorded quality results for the second quarter of 2025 up 22% from Q1 2025 and 2% from Q2 2024. We continue to leverage our brand and exceptional customer service to take advantage in the marketplace, with record originations in our insured residential lending business while maintaining our spreads. Although we recorded higher provisions for credit losses than the prior year, our credit quality remains resilient as it has since our founding," said Derek Sutherland, CEO of MCAN. "In July 2025, we launched a new uninsured residential mortgage third-party securitization program with one of the major Canadian banks which will add to our securitization income and allow us to grow our uninsured originations. Looking ahead, we are focused on tapping new growth opportunities to drive value for all our stakeholders." HIGHLIGHTS Total assets reached $5.7 billion at June 30, 2025, a net increase of $391 million (7.3%) from December 31, 2024. Non-securitized mortgage portfolio totalled $2.7 billion at June 30, 2025, a net increase of $277 million (11%) from December 31, 2024. Uninsured residential mortgages totalled $1.2 billion at June 30, 2025, a net increase of $53 million (5%) from December 31, 2024. Uninsured residential mortgage originations totalled $231 million for YTD 2025, an increase of $34 million (17%) from YTD 2024. The economic and interest rate environment and its impact on the housing market and borrowers had improved somewhat due to expectations about further interest rate cuts. We had steady uninsured residential mortgage renewal rates with renewals of $245 million for YTD 2025 compared to $259 million for YTD 2024. This business is supported by outstanding service to our brokers, originators and customers. Construction and commercial mortgages totalled $1.2 billion at June 30, 2025, a net increase of $77 million (7%) from December 31, 2024. In 2025, the movement in the construction and commercial portfolios is attributed to new loan advances of $323 million in construction and commercial mortgages, slightly offset by repayments from completing projects. Originations have been steady this year and some extensions of projects due to normal construction delays or normal delays relating to the permitting and zoning process meant that we have not experienced as much run-off in the portfolio as expected. To date, projects continue to progress toward completion. Securitized mortgages totalled $2.4 billion at June 30, 2025, a net increase of $9 million (0.4%) from December 31, 2024. Our insured residential mortgage securitization volumes were $211 million in Q2 2025, an increase of $54 million (34%) from Q2 2024 and $264 million YTD 2025, a decrease of $107 million (29%) from YTD 2024. We use various channels in funding the insured residential mortgage portfolio, in the context of market conditions and net contributions over the life of the mortgages, in order to support our overall business. We have seen better securitization spreads compared to prior year. Beginning in July 2025, we have an agreement with a Canadian Schedule I Chartered bank to participate in an uninsured residential mortgage third-party securitization program sponsored by the bank. Under this agreement, we can sell our uninsured residential mortgages into the program and they remain in the program until maturity. In July 2025, we sold $80.2 million into this program. This is an integral part of our diversification and capital optimization strategy. FINANCIAL UPDATE Net non-securitized mortgage spread income 1 increased by $0.5 million for Q2 2025 from Q2 2024 mainly due to a higher average non-securitized mortgage portfolio balance from mortgage portfolio growth, offset by a reduction in the spread of non-securitized mortgages over term deposit interest and expenses. For YTD 2025, net non-securitized mortgage spread income 1 decreased by $1.2 million from YTD 2024 mainly due to a reduction in the spread of non-securitized mortgages over term deposit interest and expenses partially offset by a higher average non-securitized mortgage portfolio balance from continued originations and renewals. Net securitized mortgage spread income 1 increased by $0.5 million for Q2 2025 from Q2 2024 and increased $1.0 million YTD 2025 from YTD 2024 due to a higher average securitized mortgage portfolio balance and an increase in the spread of securitized mortgages over liabilities. For Q2 2025, we had a provision for credit losses on our non-securitized mortgage portfolio of $2.2 million compared to a provision for credit losses of $1.4 million in Q2 2024. For YTD 2025, we had a provision for credit losses on our non-securitized mortgage portfolio of $5.3 million compared to a provision for credit losses of $0.8 million for 2024. Equity income from MCAP Commercial LP totalled $9.7 million in Q2 2025, an increase of $2.0 million (26%) from $7.7 million in Q2 2024, and totalled $15.3 million for YTD 2025, an increase of $0.4 million (3%) from $14.9 million for YTD 2024. Credit Quality Arrears total mortgage ratio 1 was 2.49% at June 30, 2025 compared to 2.24% at March 31, 2025 and 2.06% at December 31, 2024. The majority of our residential mortgage arrears activity occurs in the 1-30 day category, in which the bulk of arrears are resolved and do not migrate to arrears categories over 30 days. While greater than 30 days arrears has increased in our uninsured residential mortgages, we believe overall that we have a quality uninsured residential mortgage loan portfolio with an average LTV of 64.0% at June 30, 2025 compared to 64.3% at March 31, 2025 and 63.7% at December 31, 2024 based on an industry index of current real estate values. With respect to our construction and commercial loan portfolio, we have a strong track record with our default management processes and asset recovery programs as the need arises. Impaired non-securitized mortgage ratio 1 was 2.34% at June 30, 2025 compared to 2.31% at March 31, 2025 and 2.46% at December 31, 2024. At June 30, 2025, impaired mortgages mainly represent five impaired construction mortgages as well as uninsured residential mortgages where asset recovery programs have been initiated or we expect the loans to be brought current. Impaired total mortgage ratio 1 was 1.25% at June 30, 2025 compared to 1.20% at March 31, 2025 and 1.25% at December 31, 2024. Capital We have a Base Shelf prospectus allowing us to make certain public offerings of debt or equity securities during the period that it is effective, through Prospectus Supplements. Our Base Shelf prospectus and our Prospectus Supplement for our ATM Program expire in September 2025 and we intend to renew both. We have an ATM Program, established pursuant to a Prospectus Supplement to our Base Shelf prospectus, allowing us to issue up to $30 million common shares to the public from time to time at the market prices prevailing at the time of sale. In Q2 2025, we sold 305,700 common shares at a weighted average price of $19.37 for gross proceeds of $5.9 million and net proceeds of $5.6 million including $0.1 million of agent commission paid and $0.2 million of other share issuance costs under the ATM Program. So far in 2025, we sold 366,900 common shares at a weighted average price of $19.19 for gross proceeds of $7.0 million and net proceeds of $6.7 million including $0.1 million of agent commission paid and $0.2 million of other share issuance costs under the ATM Program. At June 30, 2025, we have $13.9 million remaining available to be issued through our ATM Program. The volume and timing of distributions under the ATM Program are determined at MCAN's sole discretion. We issued $2.5 million in new common shares in Q2 2025 compared to $4.4 million in Q2 2024 and $7.0 million YTD 2025 compared to $12.5 million YTD 2024 through the Dividend Reinvestment Plan ("DRIP"). The DRIP participation rate for the 2025 second quarter dividend was 15% compared to 30% for the second quarter of 2024. Income tax assets to capital ratio 3 was 5.42 at June 30, 2025 compared to 5.41 at March 31, 2025 and 5.24 at December 31, 2024. Common Equity Tier 1 ("CET 1") and Tier 1 Capital to risk-weighted assets ratios 2 were 18.90% at June 30, 2025 compared to 19.12% at March 31, 2025 and 19.02% at December 31, 2024. Total Capital to risk-weighted assets ratio 2 was 19.22% at June 30, 2025 compared to 19.43% at March 31, 2025 and 19.28% at December 31, 2024. Leverage ratio 2 was 9.32% at June 30, 2025 compared to 9.64% at March 31, 2025 and 9.72% at December 31, 2024. All of our capital and leverage ratios are within our internal risk appetite and regulatory guidelines. 1 Considered to be a non-GAAP and other financial measure. For further details, refer to the "Non-GAAP and Other Financial Measures" section of this new release. Non-GAAP and other financial measures and ratios used in this document are not defined terms under IFRS and, therefore, may not be comparable to similar terms used by other issuers. 2 These measures have been calculated in accordance with OSFI's Leverage Requirements and Capital Adequacy Requirements guidelines. 3 Tax balances are calculated in accordance with the Tax Act. FURTHER INFORMATION See our complete 2025 Second Quarter Report filed on the System for Electronic Document Analysis and Retrieval ("SEDAR+") at and on the Company's website at For our Outlook, refer to the "Outlook" section of the 2025 Second Quarter Report. MCAN is a public company listed on the Toronto Stock Exchange under the symbol MKP and is a reporting issuer in all provinces and territories in Canada. MCAN also qualifies as a Mortgage Investment Corporation ("MIC") under the Income Tax Act (Canada). MCAN is the largest MIC in Canada and the only federally regulated MIC that issues term deposits eligible for Canada Deposit Insurance Corporation deposit insurance. MCAN's primary objective is to generate a reliable stream of income by investing in a diversified portfolio of Canadian mortgages, including residential mortgages, residential construction, non-residential construction, and commercial loans, as well as other types of securities, loans, and real estate investments. MCAN is Investing in Communities and Homes for Canadians. For how to enroll in the DRIP, please refer to the Management Information Circular dated March 21, 2025 or visit our website at Under the DRIP, dividends paid to shareholders are automatically reinvested in common shares issued out of treasury at the weighted average trading price for the five days preceding such issue less a discount of 2% until further notice from MCAN. NON-GAAP AND OTHER FINANCIAL MEASURES This news release references a number of non-generally accepted accounting principles ("non-GAAP") and other financial measures and ratios to assess our performance such as return on average shareholders' equity, net non-securitized mortgage spread income, net securitized mortgage spread income, impaired non-securitized mortgage ratio, impaired total mortgage ratio, and arrears total mortgage ratio. These measures are not calculated in accordance with International Financial Reporting Standards ("IFRS"), are not defined by IFRS and do not have standardized meanings that would ensure consistency and comparability between companies using these measures. These metrics are considered to be non-GAAP and other financial measures and are incorporated by reference and defined in the "Non-GAAP and Other Financial Measures" section of our 2025 Second Quarter Management's Discussion and Analysis of Operations ("MD&A") available on SEDAR+ at Below are reconciliations for our non-GAAP financial measures included in this news release using the most directly comparable IFRS financial measures. Net N on-securitized Mortgage Spread Income Non-GAAP financial measure that is an indicator of net interest profitability of income-earning assets less cost of funding for our non-securitized mortgage portfolio. It is calculated as the difference between non-securitized mortgage interest and term deposit interest and expenses. Net Securitized Mortgage Spread Income Non-GAAP financial measure that is an indicator of net interest profitability of income-earning securitization assets less cost of securitization liabilities for our securitized mortgage portfolio. It is calculated as the difference between securitized mortgage interest and interest on financial liabilities from securitization. A CAUTION ABOUT FORWARD-LOOKING INFORMATION AND STATEMENTS This news release contains forward-looking information within the meaning of applicable Canadian securities laws. All information contained in this news release, other than statements of current and historical fact, is forward-looking information. All of the forward-looking information in this news release is qualified by this cautionary note. Often, but not always, forward-looking information can be identified by the use of words such as "may," "believe," "will," "anticipate," "expect," "planned," "estimate," "project," "future," and variations of these or similar words or other expressions that are predictions of, or indicate, future events and trends and that do not relate to historical matters. Forward-looking information in this news release includes, among others, statements and assumptions with respect to: the current business environment, economic environment and outlook; possible or assumed future results; our ability to create shareholder value; our business goals and strategy; the potential impact of new regulations and changes to existing regulations as well as any changes in tax legislation; the stability of home prices; the effect of challenging conditions on us; the performance of our investments; factors affecting our competitive position within the housing lending market; international trade, including changes in tariffs, international economic uncertainties, failures of international financial institutions and geopolitical uncertainties and their impact on the Canadian economy; sufficiency of our access to liquidity and capital resources; the timing and effect of interest rate changes on our cash flows; and the declaration and payment of dividends. Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward-looking information reflects management's current beliefs and is based on information currently available to management. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by us at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results and events to be materially different from those expressed or implied by the forward-looking information. The material factors or assumptions that we identified and were applied by us in drawing conclusions or making forecasts or projections set out in the forward-looking information, include, but are not limited to: our ability to successfully implement and realize on our business goals and strategy; government regulation of our business and the cost to us of such regulation; factors and assumptions regarding interest rates, including the effect of Bank of Canada actions already taken; the effect of supply chain issues; the effect of inflation; housing sales and residential mortgage borrowing activities; the effect of household debt service levels; the effect of competition; systems failure or cyber and security breaches; the availability of funding and capital to meet our requirements; investor appetite for securitization products; the value of mortgage originations; the expected spread between interest earned on mortgage portfolios and interest paid on deposits; the relative uncertainty and volatility of real estate markets; acceptance of our products in the marketplace; the stage of the real estate cycle and the maturity phase of the mortgage market; impact on housing demand from changing population demographics and immigration patterns; our ability to forecast future changes to borrower credit and credit scores, loan to value ratios and other forward-looking factors used in assessing expected credit losses and rates of default; availability of key personnel; our operating cost structure; the current tax regime; and operations within, and market conditions relating to, our equity and other investments. External geopolitical conflicts and government and Bank of Canada economic policy have resulted in uncertainty relating to the Company's internal expectations, estimates, projections, assumptions and beliefs, including with respect to the Canadian economy, employment conditions, interest rates, supply chain issues, international trade, inflation, levels of housing activity and household debt service levels. There can be no assurance that such expectations, estimates, projections, assumptions and beliefs will continue to be valid. The impacts that any further or escalating geopolitical conflicts will have on our business is uncertain and difficult to predict. Reliance should not be placed on forward-looking information because it involves known and unknown risks, uncertainties and other factors, which may cause actual results to differ materially from anticipated future results expressed or implied by such forward-looking information. Factors that could cause actual results to differ materially from those set forth in the forward-looking information include, but are not limited to, the risk that any of the above opinions, estimates or assumptions are inaccurate and the other risks and uncertainties referred to in our Annual Information Form for the year ended December 31, 2024, our MD&A and our other public filings with the applicable Canadian regulatory authorities. Subject to applicable securities law requirements, we undertake no obligation to publicly update or revise any forward-looking information after the date of this news release whether as a result of new information, future events or otherwise or to explain any material difference between subsequent actual events and any forward-looking information. However, any further disclosures made on related subjects in subsequent reports should be consulted. SOURCE MCAN Mortgage Corporation
Cision Canada
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Lundin Mining Reports Second Quarter 2025 Results
VANCOUVER, BC, Aug. 6, 2025 /CNW/ - (TSX: LUN) (Nasdaq Stockholm: LUMI) Lundin Mining Corporation ("Lundin Mining" or the "Company") today reported its second quarter 2025 financial results. Unless otherwise stated, results are presented in United States dollars on a 100% basis. View PDF Jack Lundin, President and CEO commented, "Our portfolio of high-quality assets continued to generate solid results during the quarter keeping us firmly on track to achieve the midpoint of our production guidance. This resulted in over $930 million in revenue and $211 million in free cash flow from operations 1. Consolidated copper cash costs decreased to $1.92/lb, down 7% from last quarter. Importantly, our record safety performance in Q1 continued into Q2, with the Company achieving the lowest Total Recordable Injury Frequency Rate recorded in the past ten years. "With the successful $1.4 billion sale of our European assets, we paid down our term loan and reduced net debt excluding lease liabilities 1 to $135 million as at the end of Q2. At our Capital Markets Day ("CMD") event in June, we showcased medium-term brownfield expansion opportunities that complement the long-term growth potential of the Vicuña Project. The Vicuña Project team continues to progress with parallel studies supporting a multi-phased development plan and an integrated technical report remains on track for Q1 2026. Our five-year financial outlook provided at the CMD event demonstrates our ability to fund these transformational growth initiatives while maintaining shareholder returns in the form of share buybacks and dividends. We look forward to continuing to build off the solid first half performance for the remainder of 2025." Second Quarter Operational and Financial Highlights Strong operational results drove earnings in the second quarter supported by continued higher gold prices. The Company's balance sheet was also strengthened from the sale of its European assets. 2025 production guidance was reaffirmed in the quarter and cash cost guidance was improved. Copper Production: Production of 80,073 tonnes of copper in the second quarter from continuing operations. Other Production: During the quarter, 38,118 ounces of gold and 2,713 tonnes of nickel were produced. Revenue: $937.2 million in the second quarter from continuing operations with a realized copper price 1 of $4.40 /lb and a realized gold price 1 of $3,478 /oz. Net Earnings and Adjusted Earnings 1: During the quarter, net earnings from continuing operations attributable to shareholders of the Company was $126.1 million ($0.15 per share) and adjusted earnings from continuing operations was $98.2 million ($0.11 per share). Adjusted EBITDA 1: $394.7 million was generated from continuing operations for the quarter. Cash Generation: Cash provided by continuing operations was $314.6 million and free cash flow from operations 1 was $211.1 million, which was impacted by significant cash income taxes paid at Candelaria in the quarter due to timing of payments and increased taxable income. Growth: During the quarter the Company outlined strategic aspirations to become a global top-ten copper producer and achieve copper production of over 500,000 tonnes per year and gold production of over 550,000 ounces per year: On April 16, 2025 Lundin Mining completed the sale of Neves-Corvo and Zinkgruvan to Boliden AB ("Boliden") for cash proceeds of $1,314.6 million, net of cash disposed and transaction costs, and subsequently repaid in full its term loan of $1,150 million and repaid $170.0 million of amounts drawn on its revolving credit facility. During the quarter the Company announced a Mineral Resource estimate (the "Vicuña Mineral Resource") for the Vicuña Project which highlighted one of the world's largest copper, gold and silver Mineral Resources, with the potential to support a globally ranked mining complex. The Company continues to advance the integrated study of the Filo del Sol and Josemaria deposits, which is expected to be completed in Q1 2026. The resource contains: Contained copper of 13 million tonnes ("Mt") Measured and Indicated at 0.35% copper ("M&I") and 25 Mt Inferred at 0.32% copper. Contained gold of 32 million ounces ("Moz") M&I at 0.27 g/t gold and 49 Moz Inferred at 0.19 g/t gold. Contained silver of 659 Moz M&I at 5.6 g/t silver and 808 Moz Inferred at 3.2 g/t silver. On June 18, 2025, the Company hosted a Capital Markets Day, which outlined medium-term, low-cost brownfield expansion opportunities alongside the Vicuña Project which offers transformational long-term growth potential. The Company also provided guidance on financial performance for the next five years that outlined its ability to fund future growth plans. 2024 Sustainability Report Published: The Company continues to demonstrate its commitment to sustainability as an integral part of the Company's overall strategy for disciplined growth and released its annual 2024 Sustainability report on May 26, 2025. Shareholder Returns: A quarterly dividend of $0.0275 per share has been declared. In addition, the Company purchased 4,629,000 common shares during the quarter at an average share price of C$10.91 for total consideration of $36.2 million under its normal course issuer bid. So far during 2025, Lundin Mining has cancelled 13,058,800 common shares at a cost of approximately $104.0 million. Outlook: The Company reaffirms it is tracking to full year guidance for production of all metals, including 303,000 – 330,000 tonnes of copper. The Company has further revised cash cost guidance at Chapada which supports its previously lowered overall consolidated cash cost guidance for the Company to $1.95 to $2.15 per pound cash cost. Annual sustaining capital expenditure guidance has remained unchanged with reductions at Caserones being offset by higher capital expenditure at Chapada. Expansionary capital guidance has increased, driven by an increase in the Vicuña Project budget. Discontinued Operations: On April 16, 2025, the Company completed the sale of its European assets, Neves-Corvo and Zinkgruvan, to Boliden. The operating results of the Neves-Corvo and Zinkgruvan reporting segments have been classified as net earnings from discontinued operations. Net earnings from discontinued operations for the quarter of $102.4 million includes a gain on disposal of $106.4 million, net of income tax. Summary Financial Results Three months ended June 30, Six months ended June 30, (US$ millions continuing operations except where noted, except per share amounts) 2025 2024 2025 2024 Revenue 937.2 878.3 1,901.1 1,690.6 Gross profit 271.3 228.5 580.2 426.1 Attributable net earnings a 126.1 84.3 264.1 122.7 Net earnings 159.6 119.4 340.9 202.3 Adjusted earnings a,b (all operations) 99.9 122.1 246.1 167.3 Adjusted earnings a,b — continuing operations 98.2 83.4 192.1 139.7 Adjusted earnings a,b,c — discontinued operations 1.7 38.7 53.9 27.6 Adjusted EBITDA b (all operations) 395.8 460.9 846.5 823.7 Adjusted EBITDA b — continuing operations 394.7 369.9 782.6 708.3 Adjusted EBITDA b,c — discontinued operations 1.0 91.0 63.9 115.4 Basic earnings per share ("EPS") a (all operations) 0.27 0.16 0.41 0.18 Diluted earnings per share ("EPS") a (all operations) 0.27 0.16 0.41 0.17 Basic and diluted earnings per share ("EPS") a — continuing operations 0.15 0.11 0.31 0.16 Basic and diluted earnings per share ("EPS") a,c — discontinued operations 0.12 0.05 0.10 0.02 Adjusted EPS a,b (all operations) 0.12 0.16 0.29 0.22 Adjusted EPS a,b — continuing operations 0.11 0.11 0.22 0.18 Adjusted EPS a,b,c — discontinued operations 0.00 0.05 0.06 0.04 Cash provided by operating activities (all operations) 334.6 491.8 511.4 759.3 Cash provided by operating activities - continuing operations 314.6 440.0 436.9 672.3 Cash provided by operating activities - discontinued operations c 20.0 51.8 74.5 87.0 Adjusted operating cash flow b (all operations) 279.4 369.9 672.0 683.6 Adjusted operating cash flow b — continuing operations 277.2 291.2 614.2 585.3 Adjusted operating cash flow b,c — discontinued operations 2.2 78.7 57.8 98.3 Adjusted operating cash flow per share b (all operations) 0.33 0.48 0.79 0.89 Adjusted operating cash flow per share b — continuing operations 0.32 0.38 0.72 0.76 Adjusted operating cash flow per share b,c — discontinued operations 0.00 0.10 0.06 0.13 Free cash flow b (all operations) 175.9 236.9 128.2 235.1 Free cash flow b — continuing operations 165.0 226.3 111.8 226.1 Free cash flow b,c — discontinued operations 10.9 10.6 16.4 9.0 Free cash flow from operations b (all operations) 222.6 337.6 254.4 405.2 Free cash flow from operations b — continuing operations 211.1 324.7 232.6 391.3 Free cash flow from operations b,c — discontinued operations 11.5 12.9 21.8 13.9 Cash and cash equivalents 279.3 452.8 279.3 452.8 Net debt excluding lease liabilities b (135.1) (893.8) (135.1) (893.8) Net debt b (380.2) (1,152.9) (380.2) (1,152.9) a Attributable to shareholders of Lundin Mining Corporation. b These are non-GAAP measures. Please refer to the Company's discussion of non-GAAP and other performance measures in its MD&A for the three and six months ended June 30, 2025 and the Reconciliation of Non-GAAP Measures section at the end of this news release. c Discontinued operations are to April 16, 2025. For the quarter ended June 30, 2025, the Company generated revenue from continuing operations of $937.2 million (Q2 2024 - $878.3 million). Gross profit from continuing operations for the quarter of $271.3 million was $42.8 million higher than in the prior year comparable period of $228.5 million. The increase was primarily due to higher sales volume, lower treatment charges, and cost savings from operational efficiencies. Net earnings from continuing operations for the quarter of $159.6 million was higher than in the prior year comparable period of $119.4 million. The increase was primarily due to an increase in gross profit combined with lower interest expense due to the repayment of debt in the quarter with cash proceeds received from the sale of the Neves-Corvo and Zinkgruvan operations. Adjusted earnings 2 from continuing operations for the quarter of $98.2 million, increased from $83.4 million primarily as a result of higher gross profit. Cash provided by operating activities related to continuing operations for the quarter of $314.6 million represented a decrease of $125.4 million from the prior year comparable period of $440.0 million. The decrease was primarily due to significant cash income taxes paid in the quarter of $168.0 million (Q2 2024 - $47.1 million), primarily at Candelaria, and a reduction in working capital inflows of $111.4 million to $37.4 million from $148.8 million in the prior year comparable period. In the quarter, sustaining capital expenditures 3 from continuing operations of $115.9 million were lower than in the prior year comparable period of $126.6 million. The reduction was primarily due to lower spending at Candelaria from reduced deferred stripping. Expansionary capital expenditures 2 of $33.7 million in the quarter were lower than $87.1 million in the prior year comparable period due to the formation of Vicuña, a 50/50 joint arrangement with BHP Investments Canada Inc. ("BHP") (the "Joint Arrangement"), on January 15, 2025. From this date, the Company's expansionary capital expenditures include 50% of Vicuña's capital expenditures. Free cash flow 2 from continuing operations for the quarter of $165.0 million was lower than in the prior year comparable period of $226.3 million primarily due to reduced cash provided by operating activities related to continuing operations, partially offset by lower sustaining and expansionary capital expenditures. As at August 6, 2025, the Company had cash of approximately $276 million and net debt excluding lease liabilities 2 of approximately $139 million. Operational Performance Total Production a - Tonnes (t) and ounces (oz). b - Candelaria and Caserones production are on a 100% basis. c - Discontinued operations results are to April 16, 2025. Candelaria (80% owned): Candelaria produced 36,999 tonnes of copper and 20,574 ounces of gold in concentrate on a 100% basis during the quarter. Production in the quarter and year-to-date periods were positively impacted by increased throughput as a result of softer ore feed and higher ball mill runtime due to rescheduled maintenance in the quarter. Mining and processing in the quarter was focused on Phase 11 with some contribution from higher grade areas of Phase 12. Cash cost 4 of $1.81/lb during the quarter was positively impacted by higher production and favourable foreign exchange. Caserones (70% owned): Caserones produced 29,290 tonnes of copper and 380 tonnes of molybdenum on a 100% basis during the quarter. Production in the quarter was impacted by lower grades as a result of mine sequencing with mining focused on Phases 6 and 7 as mining of Phase 5 nears completion. Throughput was impacted slightly by a temporary reduction in primary crusher availability during the quarter and copper cathode production benefitted from increased material placed on the leach pad. Cash cost of $2.45/lb in the quarter benefitted from lower mining and milling costs, as well as lower treatment and refining charges and favorable foreign exchange. Chapada (100% owned): Chapada produced 11,274 tonnes of copper and 17,544 ounces of gold in concentrate during the quarter. Ore from the North and South open pits was mined and processed, resulting in higher grades as compared to the prior quarter which focused on processing ore from the older low-grade stockpile. Cash cost of $0.75/lb was the lowest amount since 2021, and benefitted from higher gold by-product credits as a result of higher realized gold prices, combined with favourable foreign exchange and higher copper sales volume. Eagle (100% owned): Eagle produced 2,713 tonnes of nickel and 2,510 tonnes of copper in the quarter. Production was impacted by a temporary reduction in equipment availability and reduced throughput as a result of an unplanned four-day power outage. Production gradually increased to normal levels following the completion of ramp rehabilitation at Eagle East in the previous quarter. Nickel cash cost of $2.02/lb was positively impacted by higher by-product credits and higher nickel sales volumes. Outlook The Company remains on track to meet annual production guidance for all metals. In light of higher gold prices, the cash cost guidance range for Chapada is further reduced from that announced on June 17, 2025. At Candelaria, production in the second half of the year is expected to be in line with the first half of the year to meet the Company's annual production guidance for 2025. Cash costs at Candelaria are tracking to the mid-point of guidance for the full year. At Caserones, higher copper head grades anticipated in the second half of the year, together with strong cathode production are expected to sustain the Company's annual production guidance for 2025. At Chapada, production is expected to be weighted to the second half of the year as copper grades and recoveries in the second half of the year are expected to remain in line with the second quarter. Mine sequencing is expected to result in processing increased fresh ore from the North and South pits and less lower-grade stockpile material. Cash costs are expected to continue to benefit from higher gold prices, leading to a further reduction in annual guidance as compared to that previously announced by the Company (see News Release dated June 17, 2025). At Eagle, grades and mining rates are expected to normalize in the second half of the year, supporting annual production guidance. Mining at the Eagle deposit is expected to be completed towards the end of the year and higher grade ore from Eagle East will be sourced. See below for revised 2025 Guidance: 2025 Production and Cash Cost Guidance a a. Guidance as outlined in the news release "Lundin Mining Highlights Strategic Vision and Financial Outlook for Leading Growth and Shareholder Returns" dated June 17, 2025. b. 2025 cash costs are based on various assumptions and estimates, including but not limited to: production volumes, commodity prices (Cu: $4.40/lb, Au: $3,000/oz, Mo: $20.00/lb, Ag: $30.00/oz), foreign exchange rates (USD/CLP:950, USD/BRL:5.75) and operating costs. Cash cost is a non-GAAP measure - see the Reconciliation of Non-GAAP Measures section at the end of this news release. c. 68% of Candelaria's total gold and silver production are subject to a streaming agreement. Cash costs are calculated based on receipt of approximately $433/oz gold and $4.32/oz silver. d. Chapada's cash cost is calculated on a by-product basis and does not include the effects of its copper stream agreements. Effects of the copper stream agreements are reflected in copper revenue and will impact realized price per pound. 2025 Capital Expenditure Guidance a,b,c ($ millions) Guidance Candelaria (100% basis) 205 Caserones (100% basis) 200 Chapada 100 Eagle 25 Other — Total Sustaining 530 Expansionary - Candelaria (100% basis) 50 Expansionary - Vicuña Joint Arrangement (50% basis) 215 Total Capital Expenditures 795 a. Guidance as outlined in the news release "Lundin Mining Highlights Strategic Vision and Financial Outlook for Leading Growth and Shareholder Returns" dated June 17, 2025. b. Sustaining capital expenditure is a supplementary financial measure, and expansionary capital expenditure is a non-GAAP measure – see the Reconciliation of Non-GAAP Measures section at the end of this news release. c. Capital expenditures are based on various assumptions and estimates, including, but not limited to foreign currency exchange rates (USD/CLP: 950, USD/BRL: 5.50) 2025 Exploration Investment Guidance Total exploration expenditure guidance for 2025 remains at $40 million, which has potential to increase subject to successful exploration results at the Boulderdash property. Drilling metres ("m") across the Company have been re-allocated to account for the anticipated earn-in agreement with Talon Metal Corp. ("Talon") and the Boulderdash property. Exploration During the quarter, exploration activity focused on in-mine and near-mine targets at the Company's operations. Exploration drilling at Candelaria was focused on Candelaria South (Mariana) and Candelaria Norte with a total of 1,533m completed during the quarter. At Caserones, drilling started for the year early in the quarter with one rig at the Caserones pit targeting deep high-grade copper breccias and two rigs at Angelica targeting copper sulphides beneath the Angelica oxide deposit, totaling 3,097m. A total of 5,077m was drilled using two rigs at Chapada. One rig was in the Saúva resource area, focusing on adding high grade resources. A second rig was testing shallow targets outside the Saúva resource area and near-mine targets. At Eagle, drilling commenced at the Boulderdash property with two rigs targeting potential extensions of the known nickel-copper mineralized intrusion. This drilling is part of an exclusivity agreement with Talon to negotiate an earn-in agreement for the right to acquire up to a 70% ownership interest in the Boulderdash property that is near the Company's Eagle mine. Total drilling for the quarter was 1,874m, as part of the proposed 10,000m Phase 1 earn-in drilling program. Vicuña On January 15, 2025, the Company completed the joint acquisition of all of the issued and outstanding common shares of Filo Corp. not already owned by Lundin Mining and concurrently formed the Joint Arrangement, resulting in the Company indirectly holding a 50% interest in Vicuña Corp., an independently managed joint operation which owns the Josemaria project in Argentina and the Filo del Sol project in Argentina and Chile. BHP indirectly owns the remaining 50% interest in Vicuña. In 2025, work continues to focus on advancing studies related to the synergies between the Filo del Sol and Josemaria projects, continuing the drilling program, and progressing the development of the Josemaria project. Activities at Josemaria during the quarter focused on the completion and submission of the Environmental Impact Assessment ("EIA"), power infrastructure planning, and continued advancement of the water program. Mobilization and preparatory works for the northern access road commenced in the quarter with full construction scheduled to begin later in 2025 following the winter season. Work also continued on a multi-phased development concept pertaining to the Josemaria and Filo del Sol deposits. An integrated technical report is targeted to be complete by early 2026. Government relations activities continued with both the national and provincial governments. In conjunction, discussions on provincial agreements continued to be advanced. Work also progressed in the quarter on an application for the Argentinean Basis Law - Incentive Regime for Large Investments ("RIGI"). Community investment programs were launched in 2025 with a focus on gender, youth training, cooperative development, and rural livelihoods. On May 4, 2025, the Company announced an initial Mineral Resource estimate for the Filo del Sol sulphide deposit, an update to the Mineral Resource estimate for the Filo del Sol oxide deposit and an update to the Mineral Resource estimate for the Josemaria deposit, which highlighted the combined Vicuña Project as one of the largest copper, gold and silver resources in the world. Details of the Vicuña Mineral Resource are set out in the "NI 43-101 Technical Report on the Vicuña Project, Argentina and Chile" with an effective date of April 15, 2025 (the "Vicuña Technical Report"). The Filo del Sol and Josemaria deposits have significant high-grade mineralization that could provide the initial years of mining for the Project. Filo del Sol high-grade core at cut-off of 0.75% copper equivalent ("CuEq"): 606 million Mt (M&I) at 1.14% CuEq 5 (0.74% Cu) for contained metal of 4.5 Mt copper at 0.74%, 9.6 Moz gold at 0.49 g/t and 259 Moz silver at 13.3 g/t. Near surface Josemaria high-grade core at cut-off of 0.60% CuEq: 196 Mt (M&I) at 0.73% CuEq 6 (0.50% Cu) for contained metal of 978 kt copper at 0.50%, 2.4 Moz gold at 0.38 g/t and 11 Moz silver at 1.7 g/t. The Filo del Sol deposit also contains copper oxide mineralization at surface. Lower capital intensity heap leach oxide cap of 434 Mt (M&I) at 0.34% copper (1.5 Mt), 0.28 g/t gold (3.9 Moz) and 2.5 g/t silver (35 Moz) High-grade oxides at a cut-off of 0.60% CuEq of 181 Mt (M&I) at 1.05% CuEq 7 (0.50% Cu) for contained metal of 911 kt copper at 0.50%, 2.3 Moz gold at 0.39 g/t and 230 Moz silver at 39.6 g/t. There is clear potential for expansion. Drilling at Filo del Sol bottomed in mineralization and is open at depth, while drilling at the Flamenco zone approximately 2 kilometers to the south has intercepted mineralization beyond the limits of the current resource pit shell. During the quarter, the Company spent $32.2 million in capital expenditures compared to $87.1 million in the prior year comparable period. On a year-to-date basis, the Company spent $74.9 million compared to $143.1 million in the prior year comparable period. Reduced spending in both the quarter and year-to-date periods is due to the formation of Vicuña on January 15, 2025. From this date, the Company's expansionary capital expenditures include 50% of Vicuña's capital expenditures. Expansionary Projects The Company has a number of brownfield expansionary projects that are expected to contribute to medium-term growth in its existing operating asset portfolio. Combined, these opportunities could add 30,000 to 40,000 tonnes of copper production growth and 60,000 to 70,000 ounces of annual gold production through low capital intensity growth projects. Candelaria Projects are ongoing to support the mine life extension under the Environmental Impact Assessment ("2040 EIA"). During the quarter, $1.5 million was spent on relocation of electrical transmission lines to allow for expansion of the open pit. During the year-to-date period, $21.7 million of spending also included key equipment deliveries as well as the acquisition of mining rights. Additionally, the Company is working on an expansion opportunity which re-envisions the previously disclosed Candelaria Underground Expansion Project ("CUGEP") to a lower-capital intensive option with only marginally lower production rates. The Company forecasts that this could increase underground throughput capacity by approximately 50% to 60% to ~22,000 tonnes per day from current levels of 12,000 to 14,000 tonnes per day and increase annual copper production by approximately 10% or 14,000 tonnes of copper per year. The opportunity includes insourcing of the Company's underground mining contract, which is anticipated to provide incremental copper production gains from higher productivity rates through improved mechanical availability and higher development rates. Initial recruitment has begun as part of the internalization process, along with training and licensing of blast technicians. It is expected that by mid-2026, the initial underground mining crews will have been internalized. Caserones While cathode production at Caserones has remained strong over recent quarters, the Company is anticipating that through continued improvements with its leaching practices and additional oxide material, incremental future production can be realized in the range of 7,000 to 10,000 tonnes of copper per year. Chapada The development of the Saúva deposit, approximately 15 kilometers from the Chapada mine, represents a near mine opportunity to add approximately 15,000 to 20,000 tonnes of copper production per year and 50,000 to 60,000 ounces of gold production per year, representing 50% and 100% production increases respectively. This is expected to be achieved through the installation of additional grinding capacity and by offsetting lower grade material with higher grade ore from Saúva. Permitting and technical work is ongoing to further define the project and the Company anticipates completing a pre-feasibility study by the end of 2025. __________ 5 Filo del Sol CuEq assumes average metallurgical recoveries of 78% for copper, 62% for gold and 62% for silver, and metal prices of $4.43/lb Cu, $2,185/oz Au and $28.80/oz Ag. The CuEq formula is: CuEq= Cu% + (0.59 * Au g/t) + (0.008 * Ag g/t). 6 Josemaria high-grade core CuEq assumes metallurgical recoveries of 84% for copper, 67% for gold and 63% for silver, and metal prices of $4.43/lb Cu, $2,185/oz Au and $28.80/oz Ag. The CuEq formula is: CuEq= Cu% + (0.58 * Au g/t) + (0.007 * Ag g/t). 7 Filo del Sol oxide CuEq assumes average metallurgical recoveries of 78% for copper, 62% for gold and 62% for silver, and metal prices of $4.43/lb Cu, $2,185/oz Au and $28.80/oz Ag. The CuEq formula is: CuEq= Cu% + (0.59 * Au g/t) + (0.008 * Ag g/t). Second Quarter 2025 Results Conference Call and Webcast Details The Company will hold a webcast and conference call on Thursday, August 7, 2025 to present the results. Webcast and conference call details are provided below. Webcast / Conference Call Details: Date: Thursday, August 7, 2025 Time: 7:00 AM PT | 10:00 AM ET Listen Only Webcast: WEBCAST LINK Dial In for Investor & Analyst Q&A: DIAL IN LINK To participate in the call click on the dial in LINK above and complete the online registration form. Once registered you will receive the dial-in information and a unique PIN to join the call and ask questions. A replay of the webcast will be available by clicking on the webcast LINK above and will be archived on the Company's website for a limited period of time. About Lundin Mining Lundin Mining is a diversified Canadian base metals mining company with projects or operations focused in Argentina, Brazil, Chile and the United States of America, and primarily producing copper, gold and nickel. The information in this release is subject to the disclosure requirements of Lundin Mining under the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below on August 6, 2025 at 17:30 Vancouver Time. Technical Information The scientific and technical information in this document pertaining to the Vicuña Mineral Resource is based on the Vicuña Technical Report. The Vicuña Technical Report was prepared by Luke Evans, of SLR Consulting (Canada) Ltd, Paul Daigle, of AGP Mining Consultants Inc., Sean Horan, of Resource Modeling Solutions Ltd., Jeffrey Austin, of International Metallurgical and Environmental Inc., and Bruno Borntraeger, of Knight Piésold Ltd, each of whom reviewed, verified and approved the scientific and technical information pertaining to the Vicuña Mineral Resource that is related to his respective scope of responsibility. Each of the foregoing individuals is a "Qualified Person" as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") and independent of the Company. The scientific and technical information in this document other than that pertaining to the Vicuña Mineral Resource has been reviewed and approved in accordance with NI 43-101 by Eduardo Cortés, Registered Member (Comisión Calificadora de Competencias en Recursos y Reservas Mineras (Chilean Mining Commission)), Vice President, Mining & Resources at Lundin Mining, a "Qualified Person" under NI 43-101. Mr. Cortés has verified the data disclosed in this document and no limitations were imposed on his verification process. The Vicuña Mineral Resource estimates are shown on a 100% basis and have an effective date of April 15, 2025. For further information related to the Vicuña Mineral Resource, including the key assumptions, parameters, and methods used to estimate the Vicuña Mineral Resource, risks and cautionary statements, see the Vicuña Technical Report and the Company's News Release "Lundin Mining Announces Initial Mineral Resource at Filo Del Sol Demonstrating One of the World's Largest Copper, Gold, and Silver Resources" dated May 4, 2025. Reconciliation of Non-GAAP Measures The Company uses certain performance measures in its analysis. These performance measures have no standardized meaning within generally accepted accounting principles under International Financial Reporting Standards and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. For additional details please refer to the Company's discussion of non-GAAP and other performance measures in its Management's Discussion and Analysis for the three and six months ended June 30, 2025 which is available on SEDAR+ at Cash Cost per Pound and All-in Sustaining Costs per pound can be reconciled to Production Costs as follows: Three months ended June 30, 2025 Continuing Operations Candelaria Caserones Chapada Consolidated Eagle Total - continuing operations 1 ($ millions, unless otherwise noted) (Cu) (Cu) (Cu) (Cu) (Ni) Sales volumes (Contained metal): Tonnes 36,603 30,076 10,284 76,963 2,226 Pounds (000s) 80,696 66,307 22,672 169,675 4,907 Production costs 186.1 204.7 75.0 465.8 40.4 506.6 Less: Royalties and other (3.9) (9.8) (6.3) (20.0) (4.1) (24.5) 182.2 194.9 68.7 445.8 36.3 482.1 Deduct: By-product credits 2 (42.8) (31.8) (51.8) (126.3) (26.4) (152.7) Add: Treatment and refining 6.6 (0.5) 0.2 6.3 — 6.3 Cash cost 146.0 162.6 17.1 325.8 9.9 335.7 Cash cost per pound ($/lb) 1.81 2.45 0.75 1.92 2.02 Add: Sustaining capital 50.2 31.9 27.4 6.4 Royalties 4.0 8.5 3.6 4.1 Reclamation and other closure accretion and depreciation 2.0 1.3 1.7 1.2 Leases & other 1.6 17.1 1.0 0.9 All-in sustaining cost 203.9 221.4 50.8 22.5 AISC per pound ($/lb) 2.53 3.34 2.24 4.58 1 Includes immaterial amounts related to other segments. 2 By-product credits are presented net of the associated treatment and refining charges. Three months ended June 30, 2025 Discontinued Operations 1 Neves-Corvo Zinkgruvan Total - discontinued operations ($ millions, unless otherwise noted) (Cu) (Zn) Sales volumes (Contained metal): Tonnes 1,394 1,548 Pounds (000s) 3,073 3,413 Production costs 14.3 2.7 17.0 Less: Royalties and other (0.2) — (0.2) 14.1 2.7 16.8 Deduct: By-product credits 2 (7.5) 0.8 (6.7) Add: Treatment and refining 0.8 0.6 1.4 Cash cost 7.4 4.0 11.5 Cash cost per pound ($/lb) 2.42 1.18 Add: Sustaining capital — 9.1 Royalties 0.2 — Reclamation and other closure accretion and depreciation 0.1 — All-in sustaining cost 7.7 13.1 AISC per pound ($/lb) 2.51 3.85 1 Discontinued operations results are to April 16, 2025. 2 By-product credits are presented net of the associated treatment and refining charges. Three months ended June 30, 2024 Continuing Operations Candelaria Caserones Chapada Consolidated Eagle Total - continuing operations 1 ($ millions, unless otherwise noted) (Cu) (Cu) (Cu) (Cu) (Ni) Sales volumes (Contained metal): Tonnes 29,999 29,862 8,293 68,154 2,018 Pounds (000s) 66,137 65,834 18,283 150,254 4,449 Production costs 175.4 208.9 69.2 453.5 37.7 490.6 Less: Royalties and other (4.6) (9.3) (3.2) (17.1) (4.0) (20.5) 170.8 199.6 66.0 436.4 33.7 470.1 Deduct: By-product credits 2 (35.8) (37.3) (31.2) (104.3) (19.9) (124.2) Add: Treatment and refining 8.9 8.9 2.8 20.6 0.6 21.3 Cash cost 143.9 171.3 37.6 352.8 14.4 367.2 Cash cost per pound ($/lb) 2.18 2.60 2.05 2.35 3.23 Add: Sustaining capital 60.5 35.3 25.2 4.0 Royalties 3.6 9.3 1.6 3.9 Reclamation and other closure accretion and depreciation 1.9 1.1 2.7 1.6 Leases & other 3.0 18.6 0.8 1.5 All-in sustaining cost 212.9 235.6 67.9 25.4 AISC per pound ($/lb) 3.22 3.58 3.72 5.71 1 Includes immaterial amounts related to other segments. 2 By-product credits are presented net of the associated treatment and refining charges. Three months ended June 30, 2024 Discontinued Operations Neves-Corvo Zinkgruvan Total - discontinued operations ($ millions, unless otherwise noted) (Cu) (Zn) Sales volumes (Contained metal): Tonnes 7,898 18,510 Pounds (000s) 17,412 40,808 Production costs 83.1 32.7 115.9 Less: Royalties and other (1.8) — (1.8) 81.3 32.7 114.1 Deduct: By-product credits 1 (58.1) (27.8) (85.9) Add: Treatment and refining charges 6.5 10.8 17.3 Cash cost 29.7 15.7 45.5 Cash cost per pound ($/lb) 1.70 0.39 Add: Sustaining capital expenditure 27.9 13.3 Royalties 1.2 — Reclamation and other closure accretion and depreciation 1.3 1.0 Leases and other 0.2 0.1 All-in sustaining cost 60.3 30.1 AISC per pound ($/lb) 3.46 0.74 1 By-product credits are presented net of the associated treatment and refining charges. Six months ended June 30, 2025 Continuing Operations Candelaria Caserones Chapada Consolidated Eagle Total - continuing operations 1 ($ millions, unless otherwise noted) (Cu) (Cu) (Cu) (Cu) (Ni) Sales volumes (Contained metal): Tonnes 71,577 66,257 18,630 156,464 3,974 Pounds (000s) 157,800 146,072 41,072 344,944 8,761 Production costs 358.2 448.7 138.5 945.3 77.5 1,023.5 Less: Royalties and other (5.0) (23.4) (11.3) (39.7) (9.2) (49.6) 353.2 425.3 127.2 905.6 68.3 973.9 Deduct: By-product credits 2 (86.3) (68.4) (86.1) (240.9) (43.2) (284.1) Add: Treatment and refining 13.8 6.7 3.1 23.7 — 23.7 Cash cost 280.7 363.5 44.2 688.4 25.1 713.5 Cash cost per pound ($/lb) 1.78 2.49 1.08 2.00 2.86 Add: Sustaining capital 98.0 70.1 49.6 10.8 Royalties 7.5 18.4 5.6 6.3 Reclamation and other closure accretion and depreciation 4.1 2.6 3.4 2.4 Leases & other 3.1 34.6 2.1 1.8 All-in sustaining cost 393.4 489.2 104.9 46.4 AISC per pound ($/lb) 2.49 3.35 2.55 5.29 1 Includes immaterial amounts related to other segments. 2 By-product credits are presented net of the associated treatment and refining charges. Six months ended June 30, 2025 Discontinued Operations 1 Neves-Corvo Zinkgruvan Total - discontinued operations ($ millions, unless otherwise noted) (Cu) (Zn) Sales volumes (Contained metal): Tonnes 6,745 20,698 Pounds (000s) 14,870 45,631 Production costs 90.2 36.9 127.1 Less: Royalties and other (1.3) — (1.3) 88.9 36.9 125.8 Deduct: By-product credits 2 (67.0) (23.3) (90.3) Add: Treatment and refining 5.4 7.2 12.6 Cash cost 27.4 20.8 48.1 Cash cost per pound ($/lb) 1.84 0.46 Add: Sustaining capital 27.7 30.4 Royalties 1.2 — Reclamation and other closure accretion and depreciation 0.7 0.3 Leases & other 0.9 — All-in sustaining cost 57.9 51.5 AISC per pound ($/lb) 3.89 1.13 1 Discontinued operations results are to April 16, 2025. 2 By-product credits are presented net of the associated treatment and refining charges. Six months ended June 30, 2024 Continuing Operations Candelaria Caserones Chapada Consolidated Eagle Total - continuing operations 1 ($ millions, unless otherwise noted) (Cu) (Cu) (Cu) (Cu) (Ni) Sales volumes (Contained metal): Tonnes 63,535 65,073 17,035 145,643 4,181 Pounds (000s) 140,071 143,461 37,556 321,088 9,218 Production costs 336.6 406.6 133.8 877.0 78.2 955.9 Less: Royalties and other (7.1) (18.1) (6.4) (31.5) (6.9) (39.2) 329.5 388.5 127.4 845.5 71.3 916.7 Deduct: By-product credits 2 (70.4) (72.1) (58.6) (201.1) (38.3) (239.4) Add: Treatment and refining 24.2 21.4 7.5 53.1 0.6 53.7 Cash cost 283.4 337.7 76.3 697.4 33.6 731.1 Cash cost per pound ($/lb) 2.02 2.35 2.03 2.17 3.65 Add: Sustaining capital 160.1 78.1 54.4 8.1 Royalties 6.5 18.1 3.2 6.6 Reclamation and other closure 4.0 2.1 5.4 3.6 Leases & other 6.1 34.0 1.5 2.8 All-in sustaining cost 460.1 470.0 140.9 54.6 AISC per pound ($/lb) 3.28 3.28 3.75 5.92 1 Includes immaterial amounts related to other segments. 2 By-product credits are presented net of the associated treatment and refining charges. Six months ended June 30, 2024 Discontinued Operations Neves-Corvo Zinkgruvan Total - discontinued operations ($ millions, unless otherwise noted) (Cu) (Zn) Sales volumes (Contained metal): Tonnes 13,784 34,335 Pounds (000s) 30,388 75,696 Production costs 154.8 62.8 217.7 Less: Royalties and other (3.1) — (3.1) 151.7 62.8 214.6 Deduct: By-product credits 1 (92.0) (44.0) (136.0) Add: Treatment and refining charges 12.1 19.7 31.8 Cash cost 71.7 38.6 110.3 Cash cost per pound ($/lb) 2.36 0.51 Add: Sustaining capital expenditure 50.3 27.6 Royalties 1.9 — Reclamation and other closure accretion and depreciation 2.7 2.1 Leases and other 0.3 0.2 All-in sustaining cost 126.9 68.5 AISC per pound ($/lb) 4.18 0.91 1 By-product credits are presented net of the associated treatment and refining charges. Adjusted EBITDA can be reconciled to Net Earnings (Loss) as follows: Three months ended June 30, Six months ended June 30, ($ millions) 2025 2024 2025 2024 Net earnings — continuing operations 159.6 119.4 340.9 202.5 Add back: Depreciation, depletion and amortization 159.3 159.2 297.4 308.6 Finance costs, net 20.4 33.2 64.3 66.4 Income taxes expense 69.6 47.3 120.4 104.0 EBITDA — continuing operations 408.9 359.0 823.0 681.4 Unrealized foreign exchange loss (gain) (1.5) 3.2 7.8 (11.6) Unrealized losses (gains) on derivative contracts (10.7) (6.7) (46.7) 27.2 Ojos del Salado sinkhole expenses (recoveries) 0.1 0.7 1.2 (0.3) Revaluation gain on marketable securities (2.1) (0.1) (1.6) (2.5) Gain on partial disposal and contribution to Vicuña — — (3.0) — Partial suspension of underground operations at Eagle — 9.8 — 9.8 Revaluation of Caserones purchase option — (12.4) — (11.7) Write-down of assets — 17.2 — 17.2 Other 0.1 (0.8) 2.0 (1.0) Total adjustments — EBITDA (14.2) 10.8 (40.4) 26.9 Adjusted EBITDA — continuing operations 394.7 369.9 782.6 708.3 Including discontinued operations: Net earnings — discontinued operations 102.4 37.3 88.7 12.8 Add back: Depreciation, depletion and amortization — 38.5 — 73.5 Finance costs, net 0.4 3.2 4.8 5.6 Income taxes expense (1.2) 8.8 5.3 2.7 EBITDA — discontinued operations 101.6 87.8 98.7 94.7 Unrealized foreign exchange loss (gain) 2.5 — 1.5 (0.7) Unrealized losses (gains) on derivative contracts — 2.8 (0.1) 21.7 Asset impairment — — 65.7 — Gain on disposal of subsidiaries (106.4) — (106.4) — Contingent consideration revaluation 3.1 — 3.1 — Other 0.3 0.4 1.3 (0.4) Total adjustments — EBITDA discontinued operations (100.6) 3.2 (34.8) 20.6 Adjusted EBITDA — discontinued operations 1.0 91.0 63.9 115.4 Adjusted EBITDA (all operations) 395.8 460.9 846.5 823.7 Adjusted Earnings and Adjusted EPS can be reconciled to Net Earnings (Loss) Attributable to Lundin Mining Shareholders as follows: Three months ended June 30, Six months ended June 30, ($ millions, except share and per share amounts) 2025 2024 2025 2024 Net earnings attributable to Lundin Mining shareholders — continuing operations 126.1 84.3 264.1 122.7 Add back: Total adjustments - EBITDA (14.2) 10.8 (40.4) 26.9 Tax effect on adjustments 0.2 3.8 (4.5) 6.2 Deferred tax expense due to change in tax rate — — — — Recognition of Caserones Tax Asset — — — — Deferred tax arising from foreign exchange translation (13.5) (13.7) (34.7) (20.0) Deferred tax arising from partial disposal and contribution to Vicuña — — 9.0 Non-controlling interest on adjustments (0.4) (1.8) (1.5) 4.0 Total adjustments (27.9) (0.9) (72.1) 17.1 Adjusted earnings — continuing operations 98.2 83.4 192.1 139.7 Including discontinued operations: Net earnings attributable to Lundin Mining shareholders - discontinued operations 1 102.4 37.3 88.7 12.8 Add back: Total adjustments - EBITDA - discontinued operations (100.6) 3.2 (34.8) 20.6 Tax effect on adjustments (0.2) (1.8) 0.1 (6.0) Total adjustments (100.7) 1.4 (34.7) 14.7 Adjusted earnings — discontinued operations 1.7 38.7 53.9 27.6 Adjusted earnings (all operations) 99.9 122.1 246.1 167.3 Basic weighted average number of shares outstanding 856,788,215 776,173,888 854,532,557 774,033,611 Net earnings attributable to Lundin Mining shareholders - continuing operations 0.15 0.11 0.31 0.16 Total adjustments (0.03) — (0.08) 0.02 Adjusted EPS — continuing operations 0.11 0.11 0.22 0.18 Net earnings attributable to Lundin Mining shareholders - discontinued operations 0.12 0.05 0.10 0.02 Total adjustments (0.12) — (0.04) 0.02 Adjusted EPS — discontinued operations — 0.05 0.06 0.04 Net earnings attributable to Lundin Mining shareholders 0.27 0.16 0.41 0.18 Total adjustments (0.15) — (0.13) 0.04 Adjusted EPS (all operations) 0.12 0.16 0.29 0.22 1 Represents Net earnings attributable to Lundin Mining Corporation shareholders less Net earnings from continuing operations attributable to Lundin Mining Corporation shareholders. Free Cash Flow from Operations and Free Cash Flow can be reconciled to Cash provided by Operating Activities on the Company's Condensed Interim Consolidated Statements of Cash Flows as follows: Adjusted Operating Cash Flow and Adjusted Operating Cash Flow per Share can be reconciled to Cash Provided by Operating Activities on the Company's Condensed Interim Consolidated Statements of Cash Flows as follows: Net debt and net debt excluding lease liabilities can be reconciled to Debt and Lease Liabilities, Current Portion of Debt and Lease Liabilities and Cash and Cash Equivalents on the Company's Condensed Interim Consolidated Balance Sheets as follows: Cautionary Statement on Forward-Looking Information Certain of the statements made and information contained herein are "forward-looking information" within the meaning of applicable Canadian securities laws. All statements other than statements of historical facts included in this document constitute forward-looking information, including but not limited to statements regarding the Company's plans, prospects, business strategies and strategic vision and aspirations and their achievement and timing; the Company's guidance on the timing and amount of future production and its expectations regarding the results of operations; expected financial performance, including expected costs and expenditures and other financial metrics; expected metal prices and foreign exchange rates; the Company's growth and optimization initiatives and expansionary projects, and the potential costs, outcomes, results and impacts thereof and timing thereof; permitting requirements and timelines; timing and possible outcome of pending litigation; the results of any Preliminary Economic Assessment, Pre-Feasibility Study, Feasibility Study, or Mineral Resource and Mineral Reserve estimations, life of mine estimates, and mine and mine closure plans; anticipated market prices of metals, currency exchange rates and interest rates; the Company's shareholder distribution policy, including with respect to share buybacks and the payment and amount of dividends and the timing thereof; the development and implementation of the Company's Responsible Mining Management System; the Company's liquidity, contractual obligations, commitments and contingencies, and the Company's capital resources and adequacy thereof; the Company's ability to comply with contractual and permitting or other regulatory requirements; anticipated exploration and development activities, including potential outcomes, results, impacts and timing thereof; the Company's integration of acquisitions and expansions and any anticipated benefits thereof, including the anticipated project development and other plans and expectations with respect to the Vicuña Project and the 50/50 joint arrangement with BHP; mineral resource estimation for the Vicuña Project, including the parameters and assumptions related thereto; the operation of Vicuña with BHP; the realization of synergies and economies of scale in the Vicuña district; the development and future operation of the Vicuña Project; the timing and expectations for future studies and technical reports with respect to the Company's operations and projects, including the Vicuña Project and the Saúva Project; the potential for resource expansion; the terms of the contingent payments in respect of the completion of the sale of the Company's European assets and expectations related thereto; the earn-in arrangement in respect of the Boulderdash properties, including the entering into of an option agreement in respect thereof and the terms of such option agreement; future actions taken by Talon Metals Corp. and Lundin Mining in relation to the Boulderdash properties and the outcomes and anticipated benefits thereof; and expectations for other economic, business, and/or competitive factors. Words such as "believe", "expect", "anticipate", "contemplate", "target", "plan", "goal", "aim", "intend", "continue", "budget", "estimate", "may", "will", "can", "could", "should", "schedule" and similar expressions identify forward-looking information. Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation, the expectations and beliefs of management, including that the Company can access financing, appropriate equipment and sufficient labour; assumed and future price of copper, gold, zinc, nickel and other metals; anticipated costs; currency exchange rates and interest rates; ability to achieve goals; the prompt and effective integration of acquisitions and the realization of synergies and economies of scale in connection therewith; that the political, economic, permitting and legal environment in which the Company operates will continue to support the development and operation of mining projects; timing and receipt of governmental, regulatory and third party approvals, consents, licenses and permits and their renewals; positive relations with local groups; the accuracy of Mineral Resource and Mineral Reserve estimates and related information, analyses and interpretations; and such other assumptions as set out herein as well as those related to the factors set forth below. While these factors and assumptions are considered reasonable by Lundin Mining as at the date of this document in light of management's experience and perception of current conditions and expected developments, such information is inherently subject to significant business, economic, political, regulatory and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking information and undue reliance should not be placed on such information. Such factors include, but are not limited to: dependence on international market prices and demand for the metals that the Company produces; political, economic, and regulatory uncertainty in operating jurisdictions, including but not limited to those related to permitting and approvals, nationalization or expropriation without fair compensation, environmental and tailings management, labour, trade relations, and transportation; operating jurisdictions, including but not limited to those related to permitting and approvals, nationalization or expropriation without fair compensation, environmental and tailings management, labour, trade relations, and transportation; risks relating to mine closure and reclamation obligations; health and safety hazards; inherent risks of mining, not all of which related risk events are insurable; risks relating to tailings and waste management facilities; risks relating to the Company's indebtedness; challenges and conflicts that may arise in partnerships and joint operations; risks relating to development projects, including Filo del Sol and Josemaria; risks that revenue may be significantly impacted in the event of any production stoppages or reputational damage in Chile; the impact of global financial conditions, market volatility and inflation; business interruptions caused by critical infrastructure failures; challenges of effective water management; exposure to greater foreign exchange and capital controls, as well as political, social and economic risks as a result of the Company's operation in emerging markets; risks relating to stakeholder opposition to continued operation, further development, or new development of the Company's projects and mines; any breach or failure information systems; risks relating to reliance on estimates of future production; risks relating to litigation and administrative proceedings which the Company may be subject to from time to time; risks relating to acquisitions or business arrangements; risks relating to competition in the industry; failure to comply with existing or new laws or changes in laws; challenges or defects in title or termination of mining or exploitation concessions; the exclusive jurisdiction of foreign courts; the outbreak of infectious diseases or viruses; risks relating to taxation changes; receipt of and ability to maintain all permits that are required for operation; minor elements contained in concentrate products; changes in the relationship with its employees and contractors; the Company's Mineral Reserves and Mineral Resources which are estimates only; uncertainties relating to inferred Mineral Resources being converted into Measured or Indicated Mineral Resources; payment of dividends in the future; compliance with environmental, health and safety laws and regulations, including changes to such laws or regulations; interests of significant shareholders of the Company; asset values being subject to impairment charges; potential for conflicts of interest and public association with other Lundin Group companies or entities; activist shareholders and proxy solicitation firms; risks associated with climate change; the Company's common shares being subject to dilution; ability to attract and retain highly skilled employees; reliance on key personnel and reporting and oversight systems; risks relating to the Company's internal controls; counterparty and customer concentration risk; risks associated with the use of derivatives; exchange rate fluctuations; the terms of the contingent payments in respect of the completion of the sale of the Company's European assets and expectations related thereto; the earn-in arrangement in respect of the Boulderdash properties, including the entering into of an option agreement in respect thereof and the terms of such option agreement; future actions taken by Talon Metals Corp. and Lundin Mining in relation to the Boulderdash properties and the outcomes and anticipated benefits thereof; and other risks and uncertainties, including but not limited to those described in the "Risks and Uncertainties" section of the Company's MD&A for the three and six months ended June 30, 2025, the "Risks and Uncertainties" section of the Company's MD&A for the year ended December 31, 2024, and the "Risks and Uncertainties" section of the Company's Annual Information Form for the year ended December 31, 2024, which are available on SEDAR+ at under the Company's profile. All of the forward-looking information in this document is qualified by these cautionary statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, forecasted or intended and readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information. Accordingly, there can be no assurance that forward-looking information will prove to be accurate and forward-looking information is not a guarantee of future performance. Readers are advised not to place undue reliance on forward-looking information. The forward-looking information contained herein speaks only as of the date of this document. The Company disclaims any intention or obligation to update or revise forward ‐ looking information or to explain any material difference between such and subsequent actual events, except as required by applicable law.
Cision Canada
39 minutes ago
- Cision Canada
SPARTAN DELTA CORP. ANNOUNCES SECOND QUARTER 2025 RESULTS AND OPERATIONS UPDATE
CALGARY, AB, Aug. 6, 2025 /CNW/ - Spartan Delta Corp. (" Spartan" or the " Company") (TSX: SDE) is pleased to report its unaudited financial and operating results for the three and six months ended June 30, 2025. Selected financial and operational information is set out below and should be read in conjunction with Spartan's unaudited interim financial statements and related management's discussion and analysis (" MD&A") for the three and six months ended June 30, 2025, and 2024, which are filed on SEDAR+ at and are available on the Company's website at The highlights reported in this press release include certain non-GAAP financial measures and ratios which have been identified using capital letters. The reader is cautioned that these measures may not be directly comparable to other issuers; please refer to additional information under the heading "Reader Advisories – Non-GAAP Measures and Ratios". OPERATIONS UPDATE Spartan successfully completed its first half 2025 capital program, highlighting strong execution and operational discipline across its West Shale Basin Duvernay (the " Duvernay") and Deep Basin assets. In H1 2025, Spartan ran a four rig capital program, drilling 21.0 (17.1 net) wells, completing 15.0 (11.4 net) wells, and bringing on-stream 11.0 (8.6 net) wells. During the second quarter, the Company drilled 8.0 (7.3 net) wells, completed 10.0 (7.5 net) wells, and brought on-stream 6.0 (4.7 net) wells. Spartan is on course to meet its 2025 guidance of 40,000 BOE/d and is well-positioned for continued operational momentum entering the second half of 2025. With a strong balance sheet, disciplined capital allocation, significant liquids growth, and a deep inventory of locations, Spartan is committed to delivering significant value for shareholders while maintaining a responsible and sustainable development strategy. In the Duvernay, the Company contracted two rigs and drilled 12.0 (9.6 net) wells, completed 7.0 (4.9 net wells), and brought on-stream 3.0 (2.1 net) wells during H1 2025. In Q2 2025, Spartan drilled 6.0 (5.4 net) wells, completed 7.0 (4.9 net) wells, and brought on-stream 3.0 (2.1 net) wells, wine-racking in both the upper and lower Duvernay benches. The utilization of wine-racking well designs has the potential to significantly increase recoveries on the Company's acreage. 06-04-043-03W5 Pad Initial production results from 3.0 (2.1 net) wells have averaged IP30 rates of 1,261 BOE/d and 86% liquids per well (1,042 BBL/d of crude oil, 49 BBL/d of NGLs, and 1.0 MMcf/d of natural gas). 02-22-042-03W5 Pad Initial results from the Company's most recent 4.0 (2.8 net) wells are encouraging as production rates exceed internal expectations. Current field production estimates for the first 15 days are averaging greater than 1,600 BOE/d with more than 1,300 BBL/d of crude oil and NGLs per well. 07-15-044-03W5 Pad Spartan has commenced completions on 4.0 (4.0 net) wells. 04-20-041-03W5 Pad Spartan has begun drilling operations. In the second half of 2025, the Company anticipates drilling 5.0 (5.0 net) wells, completing 10.0 (10.0 net) wells, and bringing on-stream 14.0 (12.8 net) wells. Spartan's 2025 Duvernay program has benefited from a strong focus on reducing costs. These improvements stem from decreasing drilling and completion times, consistent frac placements, optimizing proppant tonnage, and reducing water usage. The Company is motivated to further reduce drilling and completion costs as it continues to build scale. Spartan's Duvernay results have exceeded internal expectations to date, underscoring the productivity and consistency of its acreage. Current Duvernay field production estimates are greater than 9,000 BOE/d (77% liquids), a 400% increase in production in twelve months. DEEP BASIN In the Deep Basin, the Company drilled 9.0 (7.5 net) wells and completed and brought on-stream 8.0 (6.5 net) wells during H1 2025. In Q2 2025, Spartan drilled 2.0 (1.9 net) wells and completed and brought on-stream 3.0 (2.6 net) wells. 08-21-045-11W5 & 10-20-043-09W5 Initial Spirit River production results averaged IP30 rates of 1,657 BOE/d and 25% liquids per well and IP90 rates of 1,254 BOE/d and 24% liquids per well. 03-07-045-09W5 Pad Initial production results from 3.0 (3.0 net) Cardium wells averaged IP30 rates of 482 BOE/d and 43% liquids per well and IP90 rates of 566 BOE/d and 42% liquids per well. 14-08-044-08W5 Pad Initial production results from 3.0 (3.0 net) Cardium wells are exceeding internal expectations, averaging IP30 rates of 1,203 BOE/d and 40% liquids per well. 15-25-044-09W5 Spirit River well is significantly exceeding internal expectations, with the well onstream for less than 30 days. In the second half of 2025, the Company anticipates drilling 10.0 (9.2 net) wells and completing and bringing on-stream 9.0 (8.2 net) wells, focusing on drilling liquid-rich targets in the Cardium, Spirit River, Rock Creek, Viking, Belly River, and Wilrich formations. The Deep Basin maintains the optionality to increase capital and accelerate drilling to capture the contango forward curve in natural gas prices as the asset benefits from reduced cycle times. SECOND QUARTER 2025 HIGHLIGHTS Spartan reported production of 38,513 BOE/d (36% liquids) during the second quarter of 2025. Spartan achieved a 151% increase in crude oil production as compared to the second quarter of 2024 and a 12% increase as compared to the first quarter of 2025. The Company's operations generated oil and gas sales of $81.0 million and Adjusted Funds Flow of $47.9 million ($0.23 per share, diluted) in the second quarter of 2025, a 29% increase from the second quarter of 2024, and a 5% increase from the first quarter of 2025. The Company successfully executed a capital program of $83.5 million in the second quarter of 2025, of which approximately 85% was spent on drilling, completing, equipping, and tie-ins. In the Duvernay, Spartan drilled 6.0 (5.4 net) wells, completed 7.0 (4.9 net) wells, and brought on-stream 3.0 (2.1 net) wells. In the Deep Basin, Spartan drilled 2.0 (1.9 net) wells and completed and brought on-stream 3.0 (2.6 net) wells. Spartan has accumulated approximately 365,000 net acres (570 net sections) in the Duvernay, a 52% increase from the second quarter of 2024 and a 14% increase from the first quarter of 2025. Spartan continues to maintain a strong statement of financial position with Net Debt of $123.7 million resulting in a 0.7X Net Debt to Annualized Adjusted Funds Flow ratio. Despite volatile commodity prices, Spartan has hedges in place for the remainder of 2025 greater than current strip. As at June 30, 2025, the Company has hedged 91,065 GJ/d of its natural gas production at an average price of $2.25/GJ and has hedged 2,700 bbl/d of its crude oil and condensate production at an average price of $99.75/bbl. The following table summarizes the Company's financial and operating results for the three and six months ended June 30, 2025, and June 30, 2024. (1) Refer to "Share Capital" section of this press release. (2) "Adjusted Funds Flow", "Free Funds Flow", "Capital Expenditures before A&D", "Adjusted Net Capital A&D", "Net Debt" and "Operating Netbacks" do not have standardized meanings under IFRS Accounting Standards, refer to "Non-GAAP Measures and Ratios" section of this press release. (3) Condensate is a natural gas liquid as defined by NI 51-101. See "Other Measurements". ABOUT SPARTAN DELTA CORP. Spartan is committed to creating value for its shareholders, focused on sustainability in both operations and financial performance. The Company's culture is centered on generating Free Funds Flow through responsible oil and gas exploration and development. The Company has established a portfolio of high-quality production and development opportunities in the Deep Basin and the Duvernay. Spartan will continue to focus on the execution of the Company's organic drilling program across its portfolio, delivering operational synergies in a respectful and responsible manner in relation to the environment and communities it operates in. The Company is well positioned to continue pursuing optimization in the Deep Basin, participate in the consolidation of the Deep Basin fairway, and continue growing and developing its Duvernay asset. Spartan's corporate presentation, as of August 6, 2025, can be accessed on the Company's website at Non-GAAP Measures and Ratios This press release contains certain financial measures and ratios which do not have standardized meanings prescribed by International Financial Reporting Standards (" IFRS Accounting Standards") or Generally Accepted Accounting Principles (" GAAP"). As these non-GAAP financial measures and ratios are commonly used in the oil and gas industry, Spartan believes that their inclusion is useful to investors. The reader is cautioned that these amounts may not be directly comparable to measures for other companies where similar terminology is used. The non-GAAP measures and ratios used in this press release, represented by the capitalized and defined terms outlined below, are used by Spartan as key measures of financial performance, and are not intended to represent operating profits nor should they be viewed as an alternative to cash provided by operating activities, net income or other measures of financial performance calculated in accordance with IFRS Accounting Standards. The definitions below should be read in conjunction with the "Non-GAAP Measures and Ratios" section of the Company's MD&A dated August 6, 2025, which includes discussion of the purpose and composition of the specified financial measures and detailed reconciliations to the most directly comparable GAAP financial measures. Operating Income and Operating Netback Operating Income, a non-GAAP financial measure, is a useful supplemental measure that provides an indication of the Company's ability to generate cash from field operations, prior to administrative overhead, financing, and other business expenses. " Operating Income, before hedging" is calculated by Spartan as oil and gas sales, net of royalties, plus processing and other revenue and net commodities purchased margin, less operating and transportation expenses. " Operating Income, after hedging" is calculated by adjusting Operating Income for realized gains or losses on derivative financial instruments. The Company refers to Operating Income expressed per unit of production as an " Operating Netback" and reports the Operating Netback before and after hedging, both of which are non-GAAP financial ratios. Spartan considers Operating Netback an important measure to evaluate its operational performance as it demonstrates its field level profitability relative to current commodity prices. Adjusted Funds Flow and Free Funds Flow Cash provided by operating activities is the most directly comparable measure to Adjusted Funds Flow. " Adjusted Funds Flow" is a non-GAAP financial measure reconciled to cash provided by operating activities by excluding changes in non-cash working capital, adding back transaction costs on acquisitions and dispositions, and deducting the principal portion of lease payments. Spartan utilizes Adjusted Funds Flow as a key performance measure in the Company's annual financial forecasts and public guidance. Transaction costs, which primarily include legal and financial advisory fees, regulatory and other expenses directly attributable to execution of acquisitions and dispositions, are added back because the Company's definition of Free Funds Flow excludes capital expenditures related to acquisitions and dispositions. For greater clarity, incremental overhead expenses related to restructuring following significant acquisition or divestitures are included in Spartan's general and administrative expenses. Lease liabilities are not included in Spartan's definition of Net Debt therefore lease payments are deducted in the period incurred to determine Adjusted Funds Flow. The Company refers to Adjusted Funds Flow expressed per unit of production as an " Adjusted Funds Flow Netback". " Free Funds Flow" is a non-GAAP financial measure calculated by Spartan as Adjusted Funds Flow less Capital Expenditures before A&D. Spartan believes Free Funds Flow provides an indication of the amount of funds the Company has available for future capital allocation decisions such as to repay current and long-term debt, reinvest in the business or return capital to shareholders. Adjusted Funds Flow per share Adjusted Funds Flow (" AFF") per share is a non-GAAP financial ratio used by the Company as a key performance indicator. AFF per share is calculated using the same methodology as net income per share (" EPS"), however the diluted weighted average common shares (" WA Shares") outstanding for AFF may differ from the diluted weighted average determined in accordance with IFRS Accounting Standards for purposes of calculating EPS due to non-cash items that impact net income only. The impact of stock options and share awards is more dilutive to AFF than EPS because the number of shares deemed to be repurchased under the treasury stock method is not adjusted for unrecognized share-based compensation expense as it is non-cash (see also, "Share Capital"). Capital Expenditures before A&D " Capital Expenditures before A&D" is a non-GAAP financial measure used by Spartan to measure its capital investment level compared to the Company's annual budgeted capital expenditures for its organic drilling program. It includes capital expenditures on exploration and evaluation assets and property, plant and equipment, before acquisitions and dispositions. The directly comparable GAAP measure to Capital Expenditures before A&D is cash used in investing activities. Adjusted Net Capital A&D " Adjusted Net Capital A&D" is a supplemental measure disclosed by Spartan which aggregates the total amount of cash, debt, and share consideration used to acquire crude oil and natural gas assets during the period, net of cash proceeds received on dispositions. The Company believes this is useful information because it is more representative of the total transaction value than the cash acquisition costs or total cash used in investing activities, determined in accordance with IFRS Accounting Standards. The most directly comparable GAAP measures are acquisition costs and disposition proceeds included as components of cash used in investing activities. Net Debt and Adjusted Working Capital References to " Net Debt" includes long-term debt under Spartan's revolving credit facility, net of Adjusted Working Capital. Net Debt and Adjusted Working Capital are both non-GAAP financial measures. " Adjusted Working Capital" is calculated as current assets less current liabilities, excluding derivative financial instrument assets and liabilities, lease liabilities, and current debt (if applicable). The Adjusted Working Capital deficit includes cash and cash equivalents, restricted cash, accounts receivable, prepaid expenses and deposits, accounts payable and accrued liabilities, dividends payable, and the current portion of decommissioning obligations. Spartan uses Net Debt as a key performance measure to manage the Company's targeted debt levels. The Company believes its presentation of Adjusted Working Capital and Net Debt are useful as supplemental measures because lease liabilities and derivative financial instrument assets and liabilities relate to contractual obligations for future production periods. Lease payments and cash receipts or settlements on derivative financial instruments are included in Spartan's reported Adjusted Funds Flow in the production month to which the obligation relates. Net Debt to Adjusted Funds Flow Ratio The Company monitors its capital structure using a " Net Debt to Adjusted Funds Flow Ratio", which is a non-GAAP financial ratio calculated as the ratio of the Company's Net Debt to its " Annualized Adjusted Funds Flow". Annualized Adjusted Funds Flow is calculated by multiplying Adjusted Funds Flow for the most recently completed quarter, normalized for significant non-recurring items, by a factor of four. OTHER MEASUREMENTS All dollar figures included herein are presented in Canadian dollars, unless otherwise noted. This press release contains various references to the abbreviation " BOE" which means barrels of oil equivalent. Where amounts are expressed on a BOE basis, natural gas volumes have been converted to oil equivalence at six thousand cubic feet (mcf) per barrel (bbl). The term BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead and is significantly different than the value ratio based on the current price of crude oil and natural gas. This conversion factor is an industry accepted norm and is not based on either energy content or current prices. References to "oil" in this press release include light crude oil and medium crude oil, combined. National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (NI 51-101) includes condensate within the product type of "natural gas liquids". References to "natural gas liquids" or "NGLs" include pentane, butane, propane, and ethane. References to "gas" or "natural gas" relates to conventional natural gas. References to "liquids" includes crude oil, condensate and NGLs. The Company has disclosed condensate as combined with crude oil and/or separately from other natural gas liquids in this press release since the price of condensate as compared to other natural gas liquids is currently significantly higher and the Company believes that this crude oil and condensate presentation provides a more accurate description of its operations and results. SHARE CAPITAL Spartan's common shares are listed on the Toronto Stock Exchange (" TSX") and trade under the symbol "SDE". The volume weighted average trading price of Spartan's common shares on the TSX was $3.12 for the three months ended June 30, 2025. Spartan's closing share price was $3.81 on June 30, 2025, compared to $3.45 on December 31, 2024. As of June 30, 2025, there were 200.1 million common shares outstanding. There are no preferred shares or special preferred shares outstanding. The table below summarizes the weighted average number of common shares outstanding (000s) used in the calculation of diluted EPS and diluted AFF per share: (1) AFF per share does not have a standardized meaning under IFRS Accounting Standards, refer to "Non-GAAP Measures and Ratios". FORWARD-LOOKING AND CAUTIONARY STATEMENTS Certain statements contained within this press release constitute forward-looking statements within the meaning of applicable Canadian securities legislation. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "outlook", "anticipate", "budget", "plan", "endeavor", "continue", "estimate", "evaluate", "expect", "forecast", "monitor", "may", "will", "can", "able", "potential", "target", "intend", "consider", "focus", "identify", "use", "utilize", "manage", "maintain", "remain", "result", "cultivate", "could", "should", "believe" and similar expressions (or grammatical variations or negatives thereof). Spartan believes that the expectations reflected in such forward-looking statements are reasonable as of the date hereof, but no assurance can be given that such expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Without limitation, this press release contains forward-looking statements pertaining to: the business plan, objectives, strategy of Spartan; continued optimization of its Deep Basin asset, participation in the consolidation of the Deep Basin fairway and advancing and accelerating its Duvernay strategy; the Company's drilling strategy in the Deep Basin; expected drilling and completions in the Duvernay; expectations that the utilization of wine-racking well designs will significantly increase recoveries on the Company's acreage; further reductions to drilling and completion costs as Spartan continues to build scale; Spartan's strategies to deliver strong, repeatable and economic operational performance and to generate significant shareholder returns; the ability of the Company to achieve drilling success consistent with management's expectations; being well positioned to take advantage of opportunities in the current business environment; risk management activities, including hedging; continuing to pursue immediate production optimization and responsible future growth with organic drilling, and continuing to execute on building an extensive position in the Duvernay. The forward-looking statements and information are based on certain key expectations and assumptions made by Spartan, including, but not limited to, expectations and assumptions concerning the business plan of Spartan, the timing of and success of future drilling, development and completion activities, the growth opportunities of Spartan's Duvernay acreage, the performance of existing wells, the performance of new wells, the availability and performance of facilities and pipelines, the geological characteristics of Spartan's properties, the successful application of drilling, completion and seismic technology, the Company's ability to secure sufficient amounts of water, prevailing weather conditions, prevailing legislation affecting the oil and gas industry, prevailing commodity prices, price volatility, future commodity prices, price differentials and the actual prices received for the Company's products (including pursuant to hedging arrangements), anticipated fluctuations in foreign exchange and interest rates, impact of inflation on costs, royalty regimes and exchange rates, the application of regulatory and licensing requirements, the availability of capital, labour and services, the creditworthiness of industry partners, general economic conditions, and the ability to source and complete acquisitions. Although Spartan believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Spartan can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. These risks and uncertainties include, but are not limited to, fluctuations and volatility in commodity prices; changes in industry regulations and legislation (including, but not limited to, tax laws, royalties, and environmental regulations); the risk that the U.S. administration (i) maintains tariffs on Canadian goods, including crude oil and natural gas, (ii) increases the rate or scope of previously announced tariffs, or (iii) imposes new tariffs on the import of goods from Canada; the risk that the U.S. and/or Canada imposes any other form of tax, restriction or prohibition on the import or export of products from one country to the other, including crude oil and natural gas, and that such tariffs or other measures (and/or the Canadian government's response to such tariffs or other measures) adversely affect the Canadian, U.S., and global economies, and by extension the Canadian oil and natural gas industry and the Company; demand and/or market price for the Company's products and/or otherwise adversely affects the Company; changes in the political landscape both domestically and abroad, wars (including ongoing military actions in the Middle East and between Russia and Ukraine), hostilities, civil insurrections, foreign exchange or interest rates, increased operating and capital costs due to inflationary pressures (actual and anticipated), risks associated with the oil and gas industry in general, stock market and financial system volatility, impacts of pandemics, the retention of key management and employees, risks with respect to unplanned third-party pipeline outages and risks relating to inclement and severe weather events and natural disasters, including fire, drought, and flooding, including in respect of safety, asset integrity and shutting-in production. Please refer to Spartan's MD&A for the period ended June 30, 2025, and annual information form for the year ended December 31, 2024, for discussion of additional risk factors relating to the Company, which can be accessed either on Spartan's website at or under Spartan's SEDAR+ profile on Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. Spartan undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law. This press release contains future-oriented financial information and financial outlook information (collectively, " FOFI") about Spartan's 2025 guidance, including prospective results of operations and production (including 2025 guidance of 40,000 BOE/d), operating costs, organic growth, capital efficiency improvements and components thereof, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs. FOFI contained in this document was approved by management as of the date of this document and was provided for the purpose of providing further information about Spartan's future business operations. Spartan and its management believe that FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments, and represent, to the best of management's knowledge and opinion, the Company's expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results. Spartan disclaims any intention or obligation to update or revise any FOFI contained in this document, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein. Changes in forecast commodity prices, differences in the timing of capital expenditures, and variances in average production estimates can have a significant impact on the key performance measures included in Spartan's guidance. The Company's actual results may differ materially from these estimates. References in this press release to peak rates, peak sales production, initial production rates, IP30s, IP90s, test rates, and other short-term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long-term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production of Spartan. The Company cautions that such results should be considered preliminary. Peak rates are the highest average daily sales production rate for each well excluding clean-up and downtime. ABBREVIATIONS SOURCE Spartan Delta Corp.
