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Cision Canada
07-08-2025
- Business
- Cision Canada
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
17-07-2025
- Business
- Cision Canada
Lundin Mining Pre-Announces Items Impacting the Second Quarter 2025 Results
VANCOUVER, BC, July 17, 2025 /CNW/ - (TSX: LUN) (Nasdaq Stockholm: LUMI) Lundin Mining Corporation ("Lundin Mining" or the "Company") is pre-announcing certain items impacting the Company's earnings, adjusted earnings before interest, taxes, depreciation and amortization ("adjusted EBITDA") 1, adjusted earnings 1 and adjusted earnings per share 1 for the three months ending June 30, 2025. Unless otherwise stated, dollar amounts are presented in United States dollars. Revenue and Provisional Pricing Adjustments View PDF Revenue in the second quarter 2025 is expected to be negatively impacted by unaudited provisional pricing adjustments on prior period concentrate sales of approximately $6 million on a pre-tax basis. These adjustments primarily include downward adjustments in relation to prior period copper sales, partially offset by upward adjustments on prior period gold sales. Foreign Exchange and Derivatives Unaudited realized foreign exchange losses and unaudited realized losses on foreign exchange and commodity derivative contracts in the second quarter 2025 are not expected to be significant. In the second quarter 2025 the Company is expected to recognize certain non-cash items that will impact the Company's earnings but not adjusted EBITDA, adjusted earnings or adjusted earnings per share. These include an unaudited unrealized gain of approximately $11 million on a pre-tax basis related to the mark-to-market valuation of the Company's unexpired foreign exchange and commodity derivative contracts, primarily due to strengthening of the BRL and CLP against the US dollar during the quarter, partially offset by unrealized losses on unexpired gold derivative contracts. Second Quarter 2025 Results Conference Call and Webcast Details The Company will release its second quarter 2025 operations and financial results after market close on Wednesday, August 6, 2025, and 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. ______________________ 1 These measures are non-GAAP measures. 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 months ended March 31, 2025 which is available on SEDAR+ at About Lundin Mining Lundin Mining is a diversified Canadian base metals mining company with operations or projects in Argentina, Brazil, Chile, and the United States of America, primarily producing copper, gold and nickel. The information was submitted for publication, through the agency of the contact persons set out below on July 17, 2025 at 14:30 Pacific Time. 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 financial results. 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; 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 environment in which the Company operates will continue to support the development and operation of mining projects; and assumptions 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 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; 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; 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; 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 property, 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 property 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 months ended March 31, 2025 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 are 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.
Globe and Mail
30-06-2025
- Business
- Globe and Mail
Lundin Mining Announces Updated Share Capital, Provides Update on Share Buybacks and Announces Filing of ESTMA Report and Modern Slavery Report
VANCOUVER, BC, June 30, 2025 /CNW/ - (TSX: LUN) (Nasdaq Stockholm: LUMI) Lundin Mining Corporation ("Lundin Mining" or the "Company") reports the following updated share capital and voting rights, in accordance with the Swedish Financial Instruments Trading Act. View PDF.
Cision Canada
30-06-2025
- Business
- Cision Canada
Lundin Mining Announces Updated Share Capital, Provides Update on Share Buybacks and Announces Filing of ESTMA Report and Modern Slavery Report
VANCOUVER, BC, June 30, 2025 /CNW/ - (TSX: LUN) (Nasdaq Stockholm: LUMI) Lundin Mining Corporation ("Lundin Mining" or the "Company") reports the following updated share capital and voting rights, in accordance with the Swedish Financial Instruments Trading Act. View PDF. The number of issued and outstanding shares of the Company has increased by 179,029 to 855,997,663 common shares with voting rights as of June 30, 2025. The increase in the number of issued and outstanding shares from May 31, 2025 to date is a result of the exercise of employee stock options or the vesting of employee share units. During this period, the Company did not purchase any shares for cancelation under its Normal Course Issuer Bid program. Normal Course Issuer Bid Under the Company's shareholder distribution policy, the Company is committed to allocating up to US$150 million in annual share buybacks through the NCIB program. So far during 2025, Lundin Mining has acquired 12,629,000 common shares at a cost of approximately US$104 million. Lundin Mining has filed its ESTMA Report and Modern Slavery Report for the year ended December 31, 2024, which can be found on the Company's website ( About Lundin Mining Lundin Mining is a diversified base metals mining company with operations or projects in Argentina, Brazil, Chile, and the United States of America, primarily producing copper, gold and nickel. The information in this release is subject to the disclosure requirements of Lundin Mining under the Swedish Financial Instruments Trading Act. The information was submitted for publication, through the agency of the contact persons set out below on June 30, 2025 at 16:00 Pacific Time. SOURCE Lundin Mining Corporation
Cision Canada
16-06-2025
- Business
- Cision Canada
Lundin Mining Files Vicuña Mineral Resource Technical Report
VANCOUVER, BC, June 16, 2025 /CNW/ - (TSX: LUN) (Nasdaq Stockholm: LUMI) Lundin Mining Corporation ("Lundin Mining" or the "Company") announces that, further to its news release dated May 4, 2025, announcing the 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 (collectively referred to as the "Vicuña Mineral Resource"), the Company has filed a technical report entitled "NI 43-101 Technical Report on the Vicuña Project, Argentina and Chile", with an effective date of April 15, 2025 (the "Technical Report"). There are no material differences in the Mineral Resource estimates reported in the Technical Report and those contained in the May 4, 2025 news release. View PDF The recently released Vicuña Mineral Resource (see News Release dated May 4, 2025) highlights one of the world's largest copper, gold, and silver resources which ranks in the top 10 for Mineral Resources of the largest producing copper mines in the world and is the largest greenfield copper discovery in the last 30 years 1. Vicuña Corp. is a 50/50 joint arrangement between Lundin Mining and BHP (the "Joint Arrangement") and holds the Filo del Sol project and the Josemaria project (collectively, "Vicuña"). The Joint Arrangement creates a long-term strategic alliance between the two companies to develop an emerging world class copper, gold, and silver district. The proximity of the Filo del Sol and Josemaria projects form the basis of the Vicuna project which allows for joint development capturing greater economies of scale, shared infrastructure and increased optionality for staged expansions to support a globally ranked mining complex. The 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 is a "qualified person" as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") and independent of Lundin Mining. The Technical Report has been prepared pursuant to Canadian Securities Administrator's NI 43-101 requirements and may be found on the Company's SEDAR+ profile at and on the Company's website at 1. Based on rankings from S&P Global, including the Filo del Sol and Josemaria deposits. About Lundin Mining Lundin Mining is a diversified base metals mining company with operations or projects in Argentina, Brazil, Chile, and the United States of America, primarily producing copper, gold and nickel. 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 mineral resource estimation for Vicuña, including the parameters and assumptions related thereto; the Company's plans, prospects and business strategies; 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; the potential for resource expansion; 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, zinc, nickel, gold and other metals; anticipated costs; currency exchange rates and interest rates; the ability to achieve goals and identify and realize opportunities; the prompt and effective integration of acquisitions;, the realization of synergies and economies of scale in connection with the establishment of the joint arrangement with BHP; 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 estimates and related information, analyses and interpretations; and assumptions 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, these statements are 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: global financial conditions, market volatility and inflation, including pricing and availability of key supplies and services; risks inherent in mining including but not limited to risks to the environment, industrial accidents, catastrophic equipment failures, unusual or unexpected geological formations or unstable ground conditions, and natural phenomena such as earthquakes, flooding or unusually severe weather; uninsurable risks; project financing risks, liquidity risks and limited financial resources; volatility and fluctuations in metal and commodity demand and prices; delays or the inability to obtain, retain or comply with permits; significant reliance on assets in Chile; reputation risks related to negative publicity with respect to the Company or the mining industry in general; health and safety risks; risks relating to the development of the Filo del Sol deposit and the Josemaria deposit; inability to attract and retain highly skilled employees; risks associated with climate change; compliance with environmental, health and safety laws and regulations; unavailable or inaccessible infrastructure, infrastructure failures, and risks related to ageing infrastructure; risks inherent in and/or associated with operating in foreign countries and emerging markets, including with respect to foreign exchange and capital controls; economic, political and social instability and mining regime changes in the Company's 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 indebtedness; the inability to effectively compete in the industry; risks associated with acquisitions and related integration efforts, including the ability to achieve anticipated benefits, unanticipated difficulties or expenditures relating to integration and diversion of management time on integration, including the joint acquisition of Filo Corp. and the joint arrangement with BHP; changing taxation regimes; risks related to mine closure activities, reclamation obligations, environmental liabilities and closed and historical sites; reliance on key personnel and reporting and oversight systems, as well as third parties and consultants in foreign jurisdictions; information technology and cybersecurity risks; risks associated with the estimation of Mineral Resources and Mineral Reserves and the geology, grade and continuity of mineral deposits including but not limited to models relating thereto; uncertainties relating to inferred Mineral Resources being converted into Measured or Indicated Mineral Resources; actual ore mined and/or metal recoveries varying from Mineral Resource and Mineral Reserve estimates, estimates of grade, tonnage, dilution, mine plans and metallurgical and other characteristics; ore processing efficiency; community and stakeholder opposition; financial projections, including estimates of future expenditures and cash costs, and estimates of future production may not be reliable; enforcing legal rights in foreign jurisdictions; environmental and regulatory risks associated with the structural stability of waste rock dumps or tailings storage facilities; activist shareholders and proxy solicitation matters; risks relating to dilution; regulatory investigations, enforcement, sanctions and/or related or other litigation; risks relating to payment of dividends; counterparty and customer concentration risks; the estimation of asset carrying values; risks associated with the use of derivatives; risks relating to joint ventures, joint arrangements and operations; relationships with employees and contractors, and the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; conflicts of interest; existence of a significant shareholder; exchange rate fluctuations; challenges or defects in title; internal controls; compliance with foreign laws; potential for the allegation of fraud and corruption involving the Company, its customers, suppliers or employees, or the allegation of improper or discriminatory employment practices, or human rights violations; the threat associated with outbreaks of viruses and infectious diseases; risks relating to minor elements contained in concentrate products; and other risks and uncertainties, including but not limited to those described in the "Risk and Uncertainties" section of the Company's MD&A for the year ended December 31, 2024 and the "Risk 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 are 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.
