Lundin Mining Corporation · TSX:LUN
Lundin Mining — Bank of America Merrill Lynch – Canada Mining Conference 2015
25 slides from Lundin Mining's conference presentation, September 2015
Slide 1: Bank of America Merrill Lynch – Canada Mining Conference
TSX: LUN OMX: LUMI Bank of America Merrill Lynch – Canada Mining Conference September 2015
Slide 2: Cautionary Statements
Cautionary Statements Caution Regarding Forward-Looking Information This presentation contains forward-looking information, including, but not limited to, guidance on estimated annual production and cash costs. This forward-looking information is not based on historical facts, but rather on current
Slide 3: Lundin Mining – Globally Diversified Portfolio
Lundin Mining – Globally Diversified Portfolio Lundin Mining Head Office Lundin Mining Toronto, Canada UK Office West Sussex, UK Zinkgruvan (100%) Zinc-Lead-Copper Freeport Cobalt (24%) (Sweden) Cobalt Refinery (Finland) Eagle (100%) Nickel-Copper (USA) Neves-Corvo (100%) Aguablanca (100%) Nickel-Co
Slide 4: Operating Highlights
Operating Highlights Operations performing well – meeting or exceeding expectations Copper Zinc Nickel (Cu) (Zn) (Ni) • Strong performance in • Solid results at • Production at Eagle and first half of 2015 Zinkgruvan. Increased Aguablanca largely production guidance meeting or exceeding • Improved p
Slide 5: Sales Mix First Half 2015
Sales Mix First Half 2015 • 70% of sales were from Candelaria (Chile – Cu) and Eagle (U.S.A. – Ni/Cu) • 66% of sales were from copper Sales Breakdown by Mine Sales Breakdown by Metal Aguablanca Other 5% Gold 6% Zinkgruvan 6% 8% Zinc 8% Neves- Corvo 17% Candelaria Nickel 53% 14% Copper 66% Eagle 17%
Slide 6: YTD Cash Costs – Very Competitive
YTD Cash Costs – Very Competitive Source: Cost curves from Wood Mackenzie as of Q2 2015 6 * Cash cost curves are based on the expected annual costs for 2015, whereas YTD costs have been highlighted for LUN assets for illustrative purposes
Slide 7: Strong Financial Position
Strong Financial Position US$ M June 30, 2015 Cash and Cash Equivalents $507 Net Debt1 $497 Available Credit Facilities $360 Cash and Cash Equivalents 600 $507 400 $355 $US M 200 $175 - Q4/14 Q1/15 Q2/15 • Cash balance grew by over $300M in the first six months of the year • Net debt has improved fr
Slide 8: 2015 Production and Cost Outlook
2015 Production and Cost Outlook • Raised copper and lead (contained tonnes) Guidance Tonnes Cash Costsa production guidance and Candelaria (80%) 135,000 – 140,000 $1.35/lb lowered copper cost outlook Eagle 20,000 – 23,000 Neves-Corvo 50,000 – 55,000 $1.55/lb Copper • Zinkgruvan outperforming, Zinkg
Slide 9: Operational Overview and Outlook
Operational Overview and Outlook Candelaria (80%) Neves-Corvo (100%) Eagle (100%) Zinkgruvan (100%) Tenke Fungurume Aguablanca (100%) (24%) 9
Slide 10: Candelaria (Cu/Au/Ag), Chile
Candelaria (Cu/Au/Ag), Chile Atacama Province, Region III, approximately 20 km south of Copiapó 10
Slide 11: Candelaria H1/15 Performance and Outlook
Candelaria H1/15 Performance and Outlook • Production (100% basis) of 96.0 kt in H1/15 Location Chile exceeded expectations as a result of higher Ownership 80% throughput and recoveries 2015 Production 135,000-140,000 t Cu • Cash costs of $1.20/lb YTD, below annual Guidance (80%) guidance due to ope
Slide 12: Candelaria New Mine Plan – Improved Production & Costs
Candelaria New Mine Plan – Improved Production & Costs • 25% increase in LOM copper production (2.4 Mt vs. 1.9 Mt) • Mine life extended to 2032 from 2028 • Low cost operation with average LOM cash costs of $1.54/lb • Total capex of $460 million for 2016 – 2019 (+ capitalized waste stripping of $436
Slide 13: Eagle Mine (Ni/Cu), Michigan, U.S.A.
Eagle Mine (Ni/Cu), Michigan, U.S.A. 50 km northwest of Marquette in the Upper Peninsula of Michigan 13
Slide 14: Eagle H1/15 Performance and Outlook
Eagle H1/15 Performance and Outlook • Nickel production of 13.7 kt and copper Location Michigan, USA production of 11.8 kt in H1/15 Ownership 100% › Meeting expectations in its first full 2015 25,000–28,000 t Ni year of production Production Guidance 20,000–23,000 t Cu 2015 Cost Guidance $2.00/lb Ni
Slide 15: Neves-Corvo (Cu/Zn), Portugal
Neves-Corvo (Cu/Zn), Portugal Situated 220 km southeast of Lisbon 15
Slide 16: Neves-Corvo H1/15 Performance and Outlook
Neves-Corvo H1/15 Performance and Outlook • Strong copper production of 30.8 kt in Location Portugal H1/15 Ownership 100% 50,000–55,000 t Cu 2015 Production • higher throughput and better grades 60,000–65,000 t Zn Guidance 4,000-5,000 t Pb • Zinc production of 33.4 kt in H1/15 2015 Cost Guidance $1.
Slide 17: Zinc Expansion Project – Neves-Corvo
Zinc Expansion Project – Neves-Corvo • Feasibility Study for expansion of zinc substantially complete • Scope covers underground development of lower Lombador Zn deposits › Expansion of shaft capacity to 5.6 Mtpa › Zinc plant expansion to 2.5 Mtpa of ore throughput › Maximum zinc production nominall
Slide 18: Zinkgruvan (Zn/Pb/Cu), Sweden
Zinkgruvan (Zn/Pb/Cu), Sweden Situated 200 km southwest of Stockholm 18
Slide 19: Zinkgruvan H1/15 Performance and Outlook
Zinkgruvan H1/15 Performance and Outlook • Zinc production of 39.7 kt in H1/15 Location Sweden Ownership 100% › Higher throughput and recoveries 80,000–85,000 t Zn 2015 Production 30,000–33,000 t Pb Guidance • Lead production of 14.8 kt in H1/15 2,000–3,000 t Cu impacted by lower grades 2015 Cost Gu
Slide 20: Aguablanca (Ni/Cu), Spain
Aguablanca (Ni/Cu), Spain Situated 80 km north of Seville 20
Slide 21: Aguablanca H1/15 Performance and Outlook
Aguablanca H1/15 Performance and Outlook • Nickel production of 5.0 kt and copper Location Spain production of 4.1 kt Ownership 100% 2015 Production 7,000–7,500 t Ni › Consistent higher grades YTD with Guidance 5,500–6,000 t Cu lower throughput impacting Q2 only 2015 Cost Guidance $3.75/lb Ni • Nick
Slide 22: Tenke Fungurume (Cu/Co), DRC
Tenke Fungurume (Cu/Co), DRC Situated 175 km northwest of Lubumbashi 22
Slide 23: Tenke H1/15 Performance and Outlook
Tenke H1/15 Performance and Outlook • Copper production (100% basis) of Location Democratic Republic 105.0 kt in H1/15 of Congo Ownership 24% • Cobalt production (100% basis) of 7.5 kt 2015 Production Guidance 50,000 t Cu (attributable share) in H1/15 2015 Costs $1.12/lb Cu • Copper cash costs of $1
Slide 24: Well Positioned in Any Market
Well Positioned in Any Market High quality, diversified asset base Diversified metals exposure Meaningful production scale Strong free cash flow and good margins Conservative balance sheet 24
Slide 25: Thank You
TSX: LUN OMX: LUMI Thank You
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