Lundin Mining Corporation

2018 - 2020 Production Guidance

Attributable Production Outlook (tonnes of metal) 2018 - 20201

    2018   2019   2020  
Copper Tonnes   Tonnes   Tonnes  
Candelaria (80%) 104,000 - 109,000 116,000 - 121,000 132,000 - 137,000
Eagle 15,000 - 18,000 12,000 - 15,000 12,000 - 15,000
Neves-Corvo 39,000 - 44,000 40,000 - 45,000 41,000 - 46,000
Zinkgruvan 1,000 - 2,000 1,000 - 2,000 2,000 - 3,000
Total Attributable Copper 159,000 - 173,000   169,000 - 183,000   187,000 - 201,000
                         
Zinc                      
Neves-Corvo 68,000 - 73,000 88,000 - 93,000 155,000 - 160,000
Zinkgruvan 76,000 - 81,000 78,000 - 83,000 79,000 - 84,000
Total Zinc 144,000 - 154,000   166,000 - 176,000   234,000 - 244,000
                         
Nickel                      
Eagle 14,000 - 17,000 10,000 - 13,000 13,000 - 16,000
Total Nickel 14,000 - 17,000   10,000 - 13,000   13,000 - 16,000

2018 Cash Cost Guidance2
  • At Candelaria, estimated C1 cash costs are expected to approximate $1.70/lb copper after by-product credits. By-product credits have been adjusted for the terms of the streaming agreement but exclude any allocation of upfront cash received.
  • Eagle's estimated C1 cash costs are expected to approximate $1.35/lb nickel after by-product credits, primarily copper as well as cobalt and precious metals. Eagle cash costs are to remain well positioned in the lowest quartile of the global nickel producer cost curve.
  • At Neves-Corvo, estimated C1 cash costs for 2018 are expected to approximate $1.30/lb copper after zinc and lead by-product credits.
  • Zinkgruvan's estimated C1 cash costs are expected to approximate $0.45/lb zinc after copper and lead by-product credits. Zinkgruvan is expected to remain a low cost zinc producer for the foreseeable future.

1 Production Guidance is based on certain estimates and assumptions, including but not limited to; mineral resources and mineral reserves, geological formations, grade and continuity of deposits and metallurgical characteristics.
2 C1 cash costs are based on various assumptions and estimates, including, but not limited to; production volumes, as noted above, commodity prices (2018 - Cu: $2.75/lb, Zn: $1.30/lb, Pb: $1.00/lb, Ni: $5.00/lb) foreign currency exchange rates (2018 - €/USD:1.20, USD/SEK:8.00, CLP/USD:625) and operating costs. All figures in are in US$ unless otherwise noted.
3 68% of Candelaria's total gold and silver production are subject to a streaming agreement and as such C1 cash costs are calculated based on receipt of $404/oz and $4/oz, respectively, on gold and silver sales in the year. No consideration has been made for the upfront payment received in the calculation of C1 cash costs.