Guidance & Outlook

2019 - 2021 Production Guidance & Outlook1

(tonnes of metal contained in concentrate)

*Chapada's production guidance is for the attributable second half of 2019.

 

2019 Cash Cost Guidance2

At Candelaria, C1 cash costs are expected to approximate $1.60/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.

Second half 2019 C1 cash costs are expected to be $1.10/lb copper after precious metal by-product credits. Chapada cash costs do not include the effects of copper stream agreements which will be a component of the copper revenue and will impact realized revenue per pound.

Eagle's C1 cash costs are expected to approximate $2.60/lb nickel after by-product credits, primarily copper, and are well positioned on the global nickel producer cost curve.

At Neves-Corvo, C1 cash costs for 2019 are expected to approximate $1.70/lb copper after zinc and lead by-product credits.

Zinkgruvan's C1 cash costs are expected to approximate $0.40lb zinc after copper and lead by-product credits. Zinkgruvan is expected to remain a low cost zinc producer for the foreseeable future.

 

2019 Capital Expenditure Guidance4

 

2019 Exploration Expenditure Guidance

Exploration expenditures are planned to be $70 million in 2019. Approximately $59 million will be spent on in-mine and near-mine targets ($14 million at Candelaria, $4 million at Chapada, $15 million at Eagle, $20 million at Zinkgruvan and $7 million at Neves-Corvo), with the remainder to advance activities on exploration stage projects, primarily in South America.

 

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 (2019 - Cu: $2.70/lb, Zn: $1.10/lb, Pb: $0.80/lb, Ni: $5.50/lb and Au: $1,250/oz) foreign currency exchange rates (2019 - €/USD:1.15, USD/SEK:9.00, CLP/USD:675 and USD/BRL:3.75) and operating costs. All figures in are in US$ 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 $408/oz and $4.08/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.

4 Forecast capital expenditures have been reported on a cash basis. Discrepancies may exist with other external reports which have been reported on an accrual basis.

Lundin Mining Corporation

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