Lundin Mining

News

Lundin Mining Third Quarter 2023 Results

Lundin Mining Third Quarter 2023 Results

VANCOUVER, BC, Nov. 1, 2023 /CNW/ - (TSX: LUN) (Nasdaq Stockholm: LUMI) Lundin Mining Corporation (“Lundin Mining” or the “Company”) today reported its third quarter 2023 financial results.

“Our operations continued with a strong performance in the third quarter. As a result, we are increasing our production guidance for Caserones and Eagle. The acquisition of Caserones enabled us to achieve a new record in quarterly consolidated copper production, and we also achieved a record in quarterly zinc production. This led the Company to an adjusted EBITDA of $415 million for the period.” commented Peter Rockandel, CEO.

Mr. Rockandel added, “During the integration process of Caserones, our team has identified and outlined synergies between Caserones and Candelaria, which are expected to yield initial annual savings of $20 to $30 million per year. We are excited about launching the largest exploration program at Caserones since production commenced, targeting resource extensions and near-mine discoveries. The corporate office move to Vancouver is complete and all senior executive positions are in place. As we approach 2024, Lundin Mining is strategically, operationally, and financially, in a strong position to continue to deliver on our plans and execute on the next phase of growth. On a personal note, as this is my last quarter as CEO, I would like to thank all our employees, partners and stakeholders for their dedication, hard work and support, all of which have been integral to our current and future success. I am extremely proud of what the team has been able to accomplish during my tenure as CEO.”

Third Quarter Highlights

Copper Production: The Company achieved consolidated production of 89,942 tonnes of copper, a new quarterly record.
Other Production: During the quarter a total of 49,774 tonnes of zinc, 4,290 tonnes of nickel and approximately 35,000 ounces of gold were produced. A quarterly zinc production record was achieved as the zinc expansion project (“ZEP”) at Neves-Corvo ramps up and a full quarter of operation from the sequential flotation project at Zinkgruvan was realized.
Revenue: $992.2 million in the quarter.
Adjusted Earnings: Net loss attributable to shareholders of the Company was $3.0 million ($0.00 per share). Adjusted earnings attributable to shareholders of the Company¹ was $85.6 million ($0.11 per share).
Adjusted EBITDA: Adjusted earnings before interest, taxes, depreciation and amortization^¹ (“EBITDA”) of $415.1 million in the third quarter.
Cash Generation: Cash provided by operating activities was $303.8 million and cash and cash equivalents at September 30, 2023 was $357.3 million. Adjusted operating cash flow¹ was $316.5 million ($0.41 per share), after removing the impact of working capital. Free cash flow¹ was $71.1 million.
Caserones Acquisition: Completed the acquisition of 51% of the Caserones copper-molybdeum mine on July 13, 2023, adding another long-life asset in a tier one jurisdiction. The Company anticipates initial annual synergies from supply chain and service contracts between Caserones and Candelaria to be $20 million to $30 million per year.
Term Loan: To fund the Caserones acquisition, the Company obtained a term loan in July 2023 of a principal amount of $800.0 million with an additional $400.0 million accordion option maturing in July 2026. As at September 30, 2023, the Company had a net debt¹ balance of $1,158.9 million.
CEO Succession: Peter Rockandel, the current Chief Executive Officer announced that he will be stepping down from the role of CEO and from the Board of Directors as of December 31, 2023. Those responsibilities will be assumed by Jack Lundin, current President, and former Director of the Company.
Outlook: Revised annual production guidance, including an increase in copper production from 296,000 - 325,000 tonnes to 305,000 - 325,000 tonnes. Cash cost guidance was lowered at Caserones and Eagle and increased at Candelaria. Annual capital expenditure guidance is lower by $30 million.

__________________________________

¹ These are non-GAAP measures. 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 nine months ended September 30, 2023 and the Reconciliation of Non-GAAP measures section at the end of this news release.

Summary Financial Results

	Three months ended September 30,		Nine months ended September 30,
US$ Millions (except per share amounts)	2023	2022	2023	2022
Revenue	992.2	648.5	2,332.1	2,229.8
Gross profit	197.3	82.5	463.5	607.3
Attributable net earnings (loss)²	(3.0)	(11.2)	202.8	281.3
Net earnings (loss)	21.9	(11.2)	248.5	318.2
Adjusted earnings ^1,2,3	85.6	30.9	256.9	288.9
Adjusted EBITDA^1,3	415.1	202.4	943.8	938.8
Basic and diluted earnings per share (“EPS”)²	—	(0.01)	0.26	0.37
Adjusted EPS^1,2,3	0.11	0.04	0.33	0.38
Cash provided by operating activities	303.8	36.3	710.5	720.0
Adjusted operating cash flow¹	316.5	181.3	662.2	703.9
Adjusted operating cash flow per share¹	0.41	0.23	0.86	0.93
Free cash flow from (used in) operations¹	136.5	(43.9)	228.3	417.1
Free cash flow¹	71.1	(163.2)	(47.7)	158.3
Cash and cash equivalents	357.3	226.9	357.3	226.9
Net debt¹	(1,158.9)	177.6	(1,158.9)	177.6

¹ These are non-GAAP measures. 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 nine months ended September 30, 2023 and the Reconciliation of Non-GAAP Measures section at the end of this news release.
² Attributable to shareholders of Lundin Mining Corporation.
³ Q2 2023 amounts have been adjusted from those presented in the Company’s MD&A for the three and six months ended June 30, 2023.

Quarter Ended September 30, 2023

The Company generated revenue of $992.2 million, gross profit of $197.3 million and adjusted EBITDA of $415.1 million (Q3 2022 - $202.4 million).
Net loss attributable to shareholders of the Company was $3.0 million ($0.00 per share) in the third quarter, impacted by higher interest expense, non-cash unrealized losses on derivative contracts and increased deferred tax expense as a result of the enactment of the mining royalty law in Chile⁴.
Adjusted earnings attributable to shareholders of the Company for the quarter of $85.6 million ($0.11 per share attributable to shareholders of the Company) were $49.5 million higher than the prior year quarter after adjusting for the non-cash revaluation of derivative contracts, fair value adjustments relating to the Caserones acquisition and deferred tax relating to the mining royalty rate change⁴, among other things.
Cash and cash equivalents as at September 30, 2023 were $357.3 million. Cash generated from operations of $303.8 million during the quarter was used to fund investing activities of $908.8 million. Investing activities in the third quarter included $648.6 million net cash paid at closing for the acquisition of Caserones, consisting of $796.6 million upfront cash consideration after adjustments, net of $148 million cash and cash equivalents held by SCM Minera Lumina Copper Chile at closing on a 100% basis.
Free cash flow of $71.1 million was $234.3 million higher than the prior year comparable period and benefited from the inclusion of production from Caserones, combined with higher realized copper prices and higher overall changes in working capital.
As at November 1, 2023, the Company had cash and net debt balances of approximately $368.6 million and $1,137.6 million, respectively.

⁴ Refer to Management’s Discussion and Analysis for the three and nine months ended September 30, 2023 for further information related to the deferred tax relating to the mining royalty rate change.

Corporate Highlights

Candelaria EIA: A new Environmental Impact Assessment (“EIA”) was granted at Candelaria for the extension of operations from 2030 to 2040.
Exploration: Exploration programs continue at our existing assets while new exploration drilling campaigns are underway at Caserones and Josemaria. Drilling at Caserones will be the largest exploration program since the mine began operation in 2013. The initial phase of the drill program is expected to be over 10,000 meters and results are expected in H1 2024.
Copper Mark: Caserones has achieved the Copper Mark at its operations, a designation that highlights the Company’s commitment to sustainable mining practices.
Josemaria Project: The Company continues to derisk and advance the Josemaria project through optimization and trade off studies. These studies will continue into 2024.
Senior Leadership Appointments: The corporate office move to Vancouver has been completed. The Company is pleased to announce the following executive appointments, Peter Brady has been hired as General Counsel, Ricardo Checura as Vice President, Health and Safety and Nathan Monash as Vice President, Sustainability.

Outlook

Production and cash cost guidance for 2023 is updated from that disclosed in the Company’s Management’s Discussion and Analysis for the three and six months ended June 30, 2023.

Most production guidance ranges are tightening and improving, with the lower end of the range increasing for copper, nickel and gold. Cash cost guidance is lower for Caserones and Eagle driven by higher production volumes and by-product credits, and increasing for Candelaria, reflecting higher operating costs. Production continues to be weighted to the second half of the year, notably at Chapada due to the first half seasonal operating conditions and forecast grade and recovery profiles.

2023 Production and Cash Cost Guidance

		Previous Guidance^a		Revised Guidance
(contained metal)		Production	Cash Cost ($/lb)^f	Production	Cash Cost ($/lb)^b,f
Copper (t)	Candelaria (100%)	145,000 - 155,000	1.80 – 1.95^c	147,000 - 153,000	2.00 – 2.20^c
	Caserones (100%)^e	60,000 - 65,000	2.30 – 2.45	65,000 - 69,000	2.00 – 2.20
	Chapada	43,000 - 48,000	2.35 – 2.55^d	45,000 - 48,000	2.35 – 2.55^d
	Eagle	12,000 - 15,000		12,000 - 15,000
	Neves-Corvo	33,000 - 38,000	2.10 – 2.30^c	33,000 - 36,000	2.10 – 2.30^c
	Zinkgruvan	3,000 - 4,000		3,000 - 4,000
	Total	296,000 - 325,000		305,000 - 325,000
Zinc (t)	Neves-Corvo	100,000 - 110,000		103,000 - 110,000
	Zinkgruvan	80,000 - 85,000	0.45 – 0.50^c	78,000 - 82,000	0.45 – 0.50^c
	Total	180,000 - 195,000		181,000 - 192,000
Molybdenum (t)	Caserones (100%)^e	1,500 - 2,000		1,500 - 2,000
Gold (koz)	Candelaria (100%)	85 - 90		87 - 92
	Chapada	55 - 60		55 - 60
	Total	140 - 150		142 - 152
Nickel (t)	Eagle	13,000 - 16,000	2.30 – 2.45	15,000 - 17,000	2.00 – 2.20

As a result of re-phasing several projects at Neves-Corvo and Zinkgruvan, capital expenditure guidance is lower by an additional $30 million for 2023. As disclosed in the Company’s Management’s Discussion and Analysis for the three and six months ended June 30, 2023, capital spend guidance at Josemaria was previously lowered to $350 million for 2023 due to foreign exchange, a delay in planned equipment deliveries and reduced activities.

2023 Capital Expenditure

($ millions)	Previous Guidance^a	Revisions	Revised Guidance
Candelaria (100% basis)	375	—	375
Caserones (100% basis)^c	110	—	110
Chapada	70	—	70
Eagle	20	—	20
Neves-Corvo	130	(25)	105
Zinkgruvan	70	(5)	65
Other	10	—	10
Total Sustaining	785	(30)	755
Josemaria	350	—	350
Total Capital Expenditures	1,135	(30)	1,105

	a. Guidance as outlined in the MD&A for the three and six months ended June 30, 2023.
	b. Sustaining capital expenditure is a supplementary financial measure and expansionary capital expenditure is a non-GAAP measure - see the Company’s Management Discussion and Analysis for the three and six months ended June 30, 2023 and the Reconciliation of Non-GAAP Measures at the end of this news release.
	c. Caserones guidance is for the second half of 2023.

2023 Exploration Investment Guidance

Total exploration expenditures are on target to be $45.0 million in 2023, unchanged from previous guidance.

Operational Performance

Total Production

(contained metal)^a	2023				2022
(contained metal)^a	YTD	Q3	Q2	Q1	Total	Q4	Q3	Q2	Q1
Copper (t)^b	211,461	89,942	60,057	61,462	249,659	56,552	63,930	64,096	65,081
Zinc (t)	134,442	49,774	36,115	48,553	158,938	44,308	40,327	41,912	32,391
Molybdenum (t)^b	1,096	1,096	—
Gold (koz)^b	105	35	34	36	154	36	45	39	34
Nickel (t)	12,700	4,290	4,686	3,724	17,475	4,096	4,379	4,719	4,281
a. Tonnes (t) and thousands of ounces (koz)
b. Candelaria and Caserones production is on a 100% basis. Caserones results are from July 13, 2023.

Candelaria (80% owned): Candelaria produced 34,275 tonnes of copper and approximately 20,000 ounces of gold in concentrate on a 100% basis in the quarter. Copper production was lower than the prior year quarter primarily due to lower grades partially offset by higher throughput. Gold production was lower than the prior year quarter due to lower grades and recoveries. Current quarter production costs and copper cash cost of $2.19/lb were higher than the prior year quarter largely owing to higher contractor and maintenance costs and unfavorable foreign exchange. Cash cost was further impacted by lower sales volumes.

Caserones (51% owned): In the three months ended September 30, 2023 Caserones produced 34,427 tonnes of copper and 1,321 tonnes of molybdenum on a 100% basis, of which 29,821 tonnes of copper and 1,096 tonnes of molybdenum were produced from the acquisition closing date of July 13. Copper and molybdenum production were higher than planned due to increased throughput and recoveries. Production costs in the quarter were negatively impacted by the recognition of fair market value adjustments to inventory due to the acquisition. Copper cash cost of $1.60/lb benefited from higher than planned production and by-product credits.

Chapada (100% owned):Chapada produced 12,286 tonnes of copper and approximately 15,000 ounces of gold in concentrate in the quarter. Copper and gold production was lower than the prior year quarter primarily due to lower throughput and grades. Production costs were lower than the prior year quarter due to lower sales volumes. Copper cash cost of $2.28/lb for the quarter increased from the prior year quarter due to lower sales volumes, unfavorable foreign exchange variances, and lower by-product credits and production.

Eagle (100% owned): During the quarter Eagle produced 4,290 tonnes of nickel and 3,245 tonnes of copper which were lower than the prior year quarter due to lower planned grades. Production costs were higher than the comparable prior year quarter due to inflationary contractual cost increases. Nickel cash cost in the quarter of $2.07/lb was higher than the prior year quarter primarily due to lower by-product credits and higher production costs.

Neves-Corvo (100% owned): Neves-Corvo produced 9,016 tonnes of copper and 25,807 tonnes of zinc in the quarter. Copper production was higher than in the prior year quarter due to higher throughput, grades and recoveries. Zinc production was higher than in the prior year quarter primarily due to increased grades and recoveries driven by the Zinc Expansion Project (“ZEP”). Production costs during the quarter were lower than the prior year quarter despite higher sales, primarily due to reduced electricity costs. Current quarter copper cash cost per pound of $2.27/lb was lower than the prior year quarter primarily as a result of lower input costs and benefited from higher production and sales.

Zinkgruvan (100% owned): Zinc production of 23,967 tonnes and lead production of 8,643 tonnes were higher than the prior year quarter primarily due to higher throughput and grades. Copper production of 1,299 tonnes was lower than the prior year quarter due to lower throughput. Production costs were higher than the prior year quarter primarily due to higher sales volumes. Zinc cash cost per pound of $0.28/lb during the quarter was higher than the prior year quarter primarily as a result of lower by-product costs per pound and higher treatment and refining charges.

Senior Leadership Appointments

The Company is pleased to announce the executive appointments of Peter Brady as General Counsel, Ricardo Checura as Vice President, Health and Safety, and Nathan Monash as Vice President, Sustainability.

Peter Brady
General Counsel
Mr. Brady has joined Lundin Mining’s Executive Leadership Team as General Counsel. He has over 20 years of experience in industry and private practice working with major international mining companies. Prior to joining Lundin Mining, he most recently was Chief Legal & Governance Officer with Vale Base Metals, responsible for advising their senior leadership team on all legal and business risk, compliance, and corporate governance matters. Previous to Vale Base Metals, he was a Partner at McCarthy Tetrault. Mr. Brady holds a Bachelor of Laws from Queen’s University and a Master of Arts in Environmental Law from the University of Windsor.

Ricardo Checura
Vice President Health and Safety
Mr. Checura was previously at BHP Inc, where he spent the past 12 years in various leadership roles, most recently as Head of Risk Operations. He was a member of BHP’s Global Risk Leadership Team and managed the risk management activities of their Global Operating Assets. Prior to his most recent role, Ricardo served as their Head of Safety – Minerals Americas between 2018 to 2021. Mr. Checura’s experience also includes implementing Fatal Risk Management from his previous roles in the mining industry. Ricardo holds a Bachelor of Science in Engineering from the University of Concepción and a Master of Business Administration from the University of Chile.

Nathan Monash
Vice President, Sustainability
Mr. Monash has joined Lundin Mining’s Senior Leadership Team as Vice President, Sustainability. He has over 20 years of experience in the mining sector, developing and integrating sustainability strategy and governance structures and advising operations on community relations, local government relations, human rights and communications. Prior to joining Lundin Mining, he most recently led Lundin Gold’s sustainability activities during the construction and operation of the Fruta del Norte mine in Ecuador and prior to that led AngloGold Ashanti’s sustainability efforts in the Americas. Nathan has also worked with International Finance Corporation, guiding extractive industry clients on the structure and implementation of sustainable development strategies, and spent several years with the World Economic Forum where he worked closely with leaders from business, academia and government to identify and address key economic, social and environmental issues facing the mining and metals industry. Mr. Monash holds a Bachelor of Science in Biology from McGill University and a Master of Arts from the Fletcher School at Tufts University.

About Lundin Mining

Lundin Mining is a diversified Canadian base metals mining company with projects and operations in Argentina, Brazil, Chile, Portugal, Sweden and the United States of America, primarily producing copper, zinc, molybdenum, 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 November 1, 2023 at 3:00 pm Pacific Standard Time.

Technical Information

The scientific and technical information in this press release has been prepared in accordance with the disclosure standards of National Instrument 43-101 (“NI 43-101”) and has been reviewed by Arman Barha, P.Eng., Vice President, Technical Services, a “Qualified Person” under NI 43-101. Mr. Barha has verified the data disclosed in this release and no limitations were imposed on his verification process.

For further Technical Information on the Company’s material properties, refer to the following technical reports, each of which is available on the Company’s SEDAR profile at www.sedarplus.ca: Candelaria: technical report entitled Technical Report for the Candelaria Copper Mining Complex, Atacama Region, Region III, Chile dated February 22, 2023. Caserones: Caserones Mining Operation, Chile, NI 43-101 Technical Report on the Caserones Mining Operation, dated July 13, 2023 Chapada: technical report entitled Technical Report on the Chapada Mine, Goiás State, Brazil dated October 10, 2019. Eagle Mine: technical report entitled Technical Report on the Eagle Mine, Michigan, U.S.A. dated February 22, 2023. Neves-Corvo: technical report entitled NI 43-101 Technical Report on the Neves-Corvo Mine, Portugal dated February 22, 2023. Josemaria Project: technical report entitled NI 43-101 Technical Report, Feasibility Study for the Josemaria Copper-Gold Project, San Juan Province, Argentina, September 28, 2020, which is available on Josemaria Resources’ SEDAR profile at www.sedarplus.ca.

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 nine months ended September 30, 2023 which is available on SEDAR+ at www.sedarplus.ca.

Net (debt) cash can be reconciled as follows:

($thousands)	September 30, 2023	December 31, 2022
Debt and lease liabilities	(1,130,754)	(27,179)
Current portion of total debt and lease liabilities	(380,645)	(170,149)
Less deferred financing fees (netted in above)	(4,810)	(4,926)
	(1,516,209)	(202,254)
Cash and cash equivalents	357,337	191,387
Net debt	(1,158,872)	(10,867)

Adjusted operating cash flow and adjusted operating cash flow per share can be reconciled to cash provided by operating activities as follows:

	Three months ended September 30,		Nine months ended September 30,
($thousands, except share and per share amounts)	2023	2022	2023	2022
Cash provided by operating activities	303,812	36,331	710,531	719,999
Changes in non-cash working capital items	12,655	145,006	(48,360)	(16,111)
Adjusted operating cash flow	316,467	181,337	662,171	703,888

Basic weighted average number of shares outstanding	773,147,920	775,563,527	772,214,160	759,726,506
Adjusted operating cash flow per share	$ 0.41	0.23	0.86	0.93

Free cash flow from operations can be reconciled to cash provided by operating activities as follows:

	Three months ended September 30,		Nine months ended September 30,
($thousands)	2023	2022	2023	2022
Cash provided by operating activities	303,812	36,331	710,531	719,999
General exploration and business development	12,734	72,446	41,192	132,259
Sustaining capital expenditures	(180,013)	(152,722)	(523,397)	(435,145)
Free cash flow from operations	136,533	(43,945)	228,326	417,113
General exploration and business development	(12,734)	(72,446)	(41,192)	(132,259)
Expansionary capital expenditures	(52,662)	(46,766)	(234,831)	(126,523)
Free cash flow	71,137	(163,157)	(47,697)	158,331

Adjusted EBITDA can be reconciled to the Company’s Consolidated Statement of Earnings as follows:

	Three months ended September 30,		Nine months ended September 30,
($thousands)	2023	2022	2023	2022
Net earnings (loss)	21,883	(11,245)	248,496	318,238
Add back:
Depreciation, depletion and amortization	179,788	140,161	430,540	412,040
Finance income and costs	36,212	15,240	67,808	47,521
Income taxes	84,891	10,766	113,983	136,975
	322,774	154,922	860,827	914,774
Unrealized foreign exchange	9,096	14,426	(1,545)	25,000
Revaluation loss on derivatives¹	47,874	—	43,407	—
Sinkhole costs	(1,247)	7,789	15,235	7,789
Revaluation loss (gain) on marketable securities	3,449	(554)	(453)	1,712
Caserones inventory fair value adjustment	32,185	—	32,185	—
Unrealized foreign exchange and trading loss on equity investments	—	18,848	—	—
Write-down of fixed assets	—	3,617	—	3,619
Gain on disposal of subsidiary	—	—	(5,718)	(16,828)
Other	990	3,325	(120)	2,724
Total adjustments - EBITDA	92,347	47,451	82,991	24,016
Adjusted EBITDA¹	415,121	202,373	943,818	938,790

¹ Q2 2023 amounts have been adjusted from those presented in the Company’s MD&A for the three and six months ended June 30, 2023.

Adjusted earnings and adjusted earnings per share can be reconciled to the Company’s Consolidated Statement of Earnings as follows:

	Three months ended September 30,		Nine months ended September 30,
($thousands, except share and per share amounts)	2023	2022	2023	2022
Net earnings (loss) attributable to Lundin Mining shareholders	(2,964)	(11,212)	202,765	281,289
Add back:
Total adjustments - EBITDA	92,347	47,451	82,991	24,016
Tax effect on adjustments	(20,114)	(12,012)	(23,295)	(11,323)
Deferred tax expense due to change in tax rate	25,700	—	25,700	—
Deferred tax arising from foreign exchange translation	9,669	5,599	(12,327)	(6,264)
Non-controlling interest on adjustments	(19,049)	1,070	(18,980)	1,197
Total adjustments	88,552	42,108	54,089	7,626
Adjusted earnings¹	85,588	30,896	256,854	288,915

Basic weighted average number of shares outstanding	773,147,920	775,563,527	772,214,160	759,726,506

Net (loss) earnings attributable to shareholders	—	(0.01)	0.26	0.37
Total adjustments	0.11	0.05	0.07	0.01
Adjusted earnings per share¹	0.11	0.04	0.33	0.38

¹Q2 2023 amounts have been adjusted from those presented in the Company’s MD&A for the three and six months ended June 30, 2023.

Cash and All-in Sustaining Costs can be reconciled to the Company’s operating costs as follows:

	Three months ended September 30, 2023
Operations	Candelaria	Caserones	Chapada	Eagle	Neves-Corvo	Zinkgruvan
($000s, unless otherwise noted)	(Cu)	(Cu)	(Cu)	(Ni)	(Cu)	(Zn)	Total
Sales volumes (Contained metal):
Tonnes	33,668	30,385	11,445	3,640	8,799	22,042
Pounds (000s)	74,225	66,987	25,232	8,025	19,398	48,594
Production costs							615,109
Less: Royalties and other							(21,662)
Inventory fair value adjustment							(32,185)
							561,262
Deduct: By-product							(216,150)
Add: Treatment and							56,261
Cash cost	162,672	106,866	57,501	16,598	44,043	13,693	401,373
Cash cost per pound	2.19	1.60	2.28	2.07	2.27	0.28
Add: Sustaining capital	86,693	28,849	16,716	4,989	27,357	12,350
Royalties	—	7,550	2,142	7,385	1,055	—
Reclamation and other closure accretion and depreciation	2,349	1,133	2,141	2,742	1,462	1,011
Leases & other	2,841	11,531	865	797	131	86
All-in sustaining cost	254,555	155,929	79,365	32,511	74,048	27,140
AISC per pound ($/lb)	3.43	2.33	3.15	4.05	3.82	0.56

	Three months ended September 30, 2022
Operations	Candelaria	Caserones	Chapada	Eagle	Neves-Corvo	Zinkgruvan
($000s, unless otherwise noted)	(Cu)	(Cu)	(Cu)	(Ni)	(Cu)	(Zn)	Total
Sales volumes (Contained metal):
Tonnes	35,587	—	12,817	3,715	8,574	13,722
Pounds (000s)	78,456	—	28,257	8,190	18,903	30,252
Production costs							425,814
Less: Royalties and							(8,593)
							417,221
Deduct: By-product							(172,179)
Add: Treatment and							28,829
Cash cost	154,633	—	54,147	8,637	50,888	5,566	273,871
Cash cost per pound	1.97	—	1.92	1.05	2.69	0.18
Add: Sustaining capital	103,486	—	19,197	3,062	15,860	8,415
Royalties	—	—	3,055	5,705	(1,213)	—
Reclamation and other closure accretion and depreciation	1,951	—	1,784	4,809	630	962
Leases & other	2,327	—	1,017	484	173	149
All-in sustaining cost	262,397	—	79,201	22,697	66,338	15,092
AISC per pound ($/lb)	3.34	—	2.80	2.77	3.51	0.50

	Nine months ended September 30, 2023
Operations	Candelaria	Caserones	Chapada	Eagle	Neves-Corvo	Zinkgruvan
($000s, unless otherwise noted)	(Cu)	(Cu)	(Cu)	(Ni)	(Cu)	(Zn)	Total
Sales volumes (Contained metal):
Tonnes	105,585	30,385	30,681	10,234	23,000	48,028
Pounds (000s)	232,775	66,987	67,640	22,562	50,706	105,883
Production costs							1,438,071
Less: Royalties and other							(41,717)
Inventory fair value adjustment							(32,185)
							1,364,169
Deduct: By-product credits							(495,751)
Add: Treatment and							125,390
Cash cost	507,884	106,866	165,170	47,228	128,206	38,454	993,808
Cash cost per pound ($/lb)	2.18	1.60	2.44	2.09	2.53	0.36
Add: Sustaining capital	300,796	28,849	52,433	15,653	74,551	42,812
Royalties	—	7,550	6,394	17,991	2,868	—
Reclamation and other closure accretion and depreciation	7,100	1,133	5,789	8,711	4,082	2,811
Leases & other	9,638	11,531	3,002	2,441	437	288
All-in sustaining cost	825,418	155,929	232,788	92,024	210,144	84,365
AISC per pound ($/lb)	3.55	2.33	3.44	4.08	4.14	0.80

	Nine months ended September 30, 2022
Operations	Candelaria	Caserones	Chapada	Eagle	Neves-Corvo	Zinkgruvan
($000s, unless otherwise noted)	(Cu)	(Cu)	(Cu)	(Ni)	(Cu)	(Zn)	Total
Sales volumes (Contained metal):
Tonnes	113,690	—	33,526	11,188	25,241	48,049
Pounds (000s)	250,643	—	73,912	24,665	55,647	105,930
Production costs							1,210,431
Less: Royalties and other							(38,121)
							1,172,310
Deduct: By-product							(487,914)
Add: Treatment and							90,944
Cash cost	450,858	—	157,456	7,999	125,889	33,138	775,340
Cash cost per pound ($/lb)	1.80	—	2.13	0.32	2.26	0.31
Add: Sustaining capital	272,557	—	63,412	10,445	49,136	31,537
Royalties	—	—	9,161	24,129	984	—
Reclamation and closure accretion and depreciation	6,002	—	5,533	14,109	1,081	3,035
Leases & other	6,953	—	3,056	1,766	569	547
All-in sustaining cost	736,370	—	238,618	58,448	177,659	68,257
AISC per pound ($/lb)	2.94	—	3.23	2.37	3.19	0.64

Cautionary Statement on Forward-Looking Information

Certain of the statements made and information contained herein is “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 and business strategies; the Company’s guidance on the timing and amount of future production and its expectations regarding the results of operations; expected costs; permitting requirements and timelines; timing and possible outcome of pending litigation; the results of any Preliminary Economic Assessment, 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 development and implementation of the Company’s Responsible Mining Management System; the Company’s ability to comply with contractual and permitting or other regulatory requirements; anticipated exploration and development activities at the Company’s projects; the Company’s integration of acquisitions and any anticipated benefits thereof, including the Caserones transaction; 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 statements.

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, nickel, zinc, gold and other metals; anticipated costs; ability to achieve goals; the prompt and effective integration of acquisitions; 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, these statements are 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 statements and undue reliance should not be placed on such statements and 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 a single asset; 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 Josemaria Project; 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, 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 with respect to the Caserones transaction; 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; 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; 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 Annual Information Form and the “Managing Risks” section of the Company’s MD&A for the year ended December 31, 2022, which are available on SEDAR+ at www.sedarplus.ca under the Company’s profile.

All of the forward-looking statements made 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, forecast 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.

a. Guidance as outlined in the MD&A for the three and six months ended June 30, 2023.

b. Cash costs are based on various assumptions and estimates, including but not limited to: production volumes, commodity prices (Cu: $3.75/lb, Zn: $1.10/lb, Mo: $20.00/lb Pb: $0.90/lb, Au: $1,850/oz), foreign exchange rates (€/USD:1.05, USD/SEK:10.50, USD/CLP:800, USD/BRL:5.00) and production costs for the remainder of 2023.

c. 68% of Candelaria’s total gold and silver production are subject to a streaming agreement and silver production at Zinkgruvan and Neves-Corvo are also subject to streaming agreements. Cash costs are calculated based on receipt of approximately $425/oz gold and $4.25/oz to $4.57/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.

e. Caserones guidance is for the second half of 2023.

f. These are non-GAAP measures. 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 nine months ended September 30, 2023 and the Reconciliation of Non-GAAP measures section at the end of this news release.