| 2012 | 2012 C1 Cash Costs | 2013 | 2014 | 2011 Guidance + C1 Cash Costs | |
|---|---|---|---|---|---|
| Copper: | Tonnes | /lb | Tonnes | Tonnes | Tonnes @ /lb |
| Neves-Corvo | 52,500 -- 57,000 | $1.80 | 50,000 -- 57,000 | 50,000 -- 57,000 | 70,000 @ $1.80 |
| Zinkgruvan | 2,000 -- 3,000 | 5,000 -- 6,000 | 5,000 -- 6,000 | 1,500 | |
| Aguablanca | 500 -- 1000 | 5,000 -- 7,000 | 6,000 -- 7,000 | not guided | |
| Copper wholly-owned operations | 55,000 -- 61,000 | 60,000 -- 70,000 | 61,000 -- 70,000 | 71,500 | |
| Tenke1 24% | >31,000 | TBA | ~47,000 | ~47,000 | 30,400 @ $1.03 |
| Total Attributable Copper | 86,000 -- 92,000 | 107,000 -- 117,000 | 108,000 -- 117,000 | ||
| Zinc: | |||||
| Neves-Corvo | 30,000 -- 40,000 | 50,000 - 55,000 | 60,000 -- 65,000 | 4,500 | |
| Zinkgruvan | 75,000 -- 81,000 | $0.25 | 75,000 -- 80,000 | 85,000 -- 90,000 | 76,000 @ $0.32 |
| Galmoy (50%) | 4,000 -- 4,500 | - | - | 31,000 | |
| Total Zinc | 109,000 -- 125,500 | 125,000 -- 135,000 | 145,000 -- 155,000 | 111,500 | |
| Lead: | |||||
| Zinkgruvan | 34,000 -- 39,000 | 32,000 -- 35,000 | 32,000 -- 35,000 | 34,000 | |
| Galmoy (50%) | 500 -- 1,000 | - | - | 8,000 | |
| Total Lead | 34,500 -- 40,000 | 32,000 -- 35,000 | 32,000 -- 35,000 | 42,000 | |
| Nickel: | |||||
| Aguablanca | 500 -- 1,000 | TBA | 5,000 -- 7,000 | 6,000 -- 7,000 | not guided |
| Total Nickel | 500 -- 1,000 | 5,000 -- 7,000 | 6,000 -- 7,000 |
Neves-Corvo - Zinc: The new zinc plant is expected to operate at full capacity processing approximately 1.0 million tonnes per annum ("Mtpa") in 2013 and 2014 (up from 0.5Mtpa in 2012). The production forecasts assume that the zinc plant will be used exclusively to process zinc ore over the next three years. This plant has been already proven to have the flexibility to process either zinc or copper ores and therefore the plan may be adjusted going forward in order to optimize the profitability of the operation depending on relative zinc and copper prices, and concentrate customer commitments.
Zinkgruvan: Zinc production is expected to increase from 2012 due to debottlenecking initiatives and as higher grade material becomes available due to the mine sequencing of the various ore bodies. Copper production increases in 2013 as the copper plant reaches its full throughput capacity of 300ktpa.
Aguablanca: Production from Aguablanca is expected to resume in late-2012. The current production plan is based solely from the open pit and does not include any production from the potential development of higher grade underground mineralization.
Galmoy: High grade mining is expected to conclude in the first half of 2012, however sales are expected to continue into early-2013 as stockpiled ore will continue to be milled at a third party processing facility.
Tenke Fungurume: 2012 Production guidance has not yet been provided by Freeport, the mine's operator. Lundin Mining anticipates production from Tenke in 2012 to be greater than 2011, and anticipates the Phase 2 expansion project to 195,000 tpa of copper cathode (production on a 100%-basis) to be completed by 2013. All operating decisions are ultimately made by Freeport and therefore these production assumptions should not be perceived as representing official guidance for the operation.
At Neves-Corvo, estimated C1 cash costs are expected to approximate $1.80/lb after zinc by-product credits in 2012. Improvement on this estimated unit cost could occur if zinc prices are higher than 2012 budget assumptions and as a result of operating cost-cutting initiatives in progress.
At Zinkgruvan, estimated C1 cash costs are expected to approximate $0.25/lb after copper and lead by-product credits. Zinkgruvan is expected to remain as one of the lower cost zinc producers for the foreseeable future.
Guidance on Aguablanca C1 cash cost estimates will be provided closer to the timing of plant start-up.
At Tenke, cash cost guidance will be provided by Freeport in due course.
The 2012 cash cost estimates were calculated using the following metals prices and exchange rates (royalties included where applicable).
Budget Assumptions |
2012 |
Copper |
$3.50 |
Zinc |
$0.95 |
Lead |
$0.98 |
€/USD |
1.35 |
US$/SEK |
6.50 |
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