VANCOUVER, BC, Feb. 20, 2025 /PRNewswire/ -- Lundin Mining Corporation ("Lundin Mining" or the "Company") today reported its fourth quarter and full year 2024 financial results. Unless otherwise stated, results are presented in United States dollars on a 100% basis.
Jack Lundin, President and CEO commented, "2024 was highlighted by three transformative transactions, along with achieving record copper and zinc production which generated strong revenue and operating cashflow for the Company. Among these deals, the formation of Vicuña Corp. has positioned the Company on a clear path to becoming a top-tier copper producer. Vicuña is targeting a new and updated mineral resource estimate at Filo del Sol and Josemaria within the second quarter of 2025. These resource estimates will form the basis of an integrated technical report which will outline the development plan for the phased construction of the district in Argentina.
"Operationally, we met copper guidance for the second consecutive year, translating to over $870 million in annual free cash flow from operations(1). Notwithstanding the $350 million purchase of an additional 19% at Caserones to bring our overall ownership to 70%, our net debt(1) position at year end was just over $1.3 billion. Our debt is expected to be reduced significantly within the first half of this year pending the finalization of the sale of our European assets, Zinkgruvan and Neves-Corvo, making the Company net-debt free on a pro-forma basis. With our strong financial standing and well-positioned asset base, our operations will continue to drive returns, fueling the growth opportunities within our current portfolio of assets.
"Lastly, in 2024 we celebrated our 30(th) anniversary, reflecting our longstanding legacy of creating value in the base metals sector. We believe we are well positioned for the future at Lundin Mining and remain committed to executing within our targeted guidance ranges, enhancing margins through sustainable cost control, while upholding the highest health and safety standards to protect our workforce."
Fourth Quarter and Full Year Operational and Financial Highlights
On December 9th, 2024, the Company announced the sale of its European assets, Zinkgruvan and Neves Corvo, to Boliden. As a result of this, the financial results from these assets are reported as "discontinued operations" in the Company's financial statements and met the criteria to be classified as held-for-sale. The transaction is expected to close at the latest by mid-year 2025, subject to the completion of customary conditions and regulatory approvals.
Fourth Quarter Highlights
-- Copper Production: Consolidated production of 101,491 tonnes of copper
in the fourth quarter.
-- Other Production: During the quarter, a total of 51,946 tonnes of zinc,
1,617 tonnes of nickel and approximately 46,000 ounces of gold were
produced.
-- Revenue: $1,023.8 million in the fourth quarter, comprised of $858.9
million from continuing operations with a realized copper price(1) of
$3.75 /lb and a realized gold price(1) of $2,643 /oz, and $165.0 million
from discontinued operations.
-- Net Earnings and Adjusted Earnings(1): During the quarter, net loss
attributable to shareholders of the Company was $440.2 million,
comprised of $195.3 million ($0.25 per share) net loss from continuing
operations and $244.8 million net loss from discontinued operations. Net
loss attributable to shareholders of the Company was impacted by
non-cash impairments of goodwill and assets at Eagle, Suruca,
Neves-Corvo and Alcaparossa. Adjusted earnings(1) were $119.2 million,
comprised of $94.8 million ($0.12 per share) from continuing operations
and $24.4 million from discontinued operations.
-- Adjusted EBITDA1: $425.6 million for the quarter, $368.2 million from
continuing operations and $57.4 million was generated from discontinued
operations during the quarter.
-- Cash Generation: Cash provided by operating activities in the quarter
was $620.3 million, comprised of $547.3 million from continuing
operations and $73.0 million from discontinued operations. Free cash
flow from operations(1) was $466.0 million, comprised of $423.6 million
from continuing operations and $42.5 million from discontinued
operations, which was increased by a working capital release of $295.5
million from continuing operations.
__________________ (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 ("MD&A") for the year ended December 31, 2024 and the Reconciliation of Non-GAAP measures section at the end of this news release.
Full Year 2024 Highlights
-- Copper Production: Record copper production of 369,067 tonnes of copper
for the full year which is within the 2024 annual copper production
guidance.
-- Other Production: During the year, record zinc production of 191,704
tonnes, 7,486 tonnes of nickel and approximately 158,000 ounces of gold
were produced. Production for all metals was within revised guidance
ranges.
-- Revenue: $4,117 million for the full year, comprised of $3,422.6 million
from continuing operations with a realized copper price(1) of $4.18 /lb
and a realized gold price(1) of $2,532 /oz, and $694.8 million from
discontinued operations.
-- Adjusted EBITDA(1): $1,707.0 million for the full year, comprised of
$1,461.8 million from continuing operations and $245.2 million from
discontinued operations.
-- Net Earnings and Adjusted Earnings(1): Net loss attributable to
shareholders of the Company was $203.5 million, comprised of $11.1
million ($0.01 per share) net earnings from continuing operations and
$214.7 million net loss from discontinued operations. Net earnings from
continuing operations was impacted by non-cash impairments of goodwill
and assets relating to Eagle, Suruca, and Alcaparossa. Adjusted earnings
was $358.9 million, $291.7 million ($0.38 per share) from continuing
operations and $67.2 million from discontinued operations.
-- Cash Generation: During the year, cash provided by operating activities
was $1,518.9 million, $1,300.8 million from continuing operations and
$218.0 million from discontinued operations. Free cash flow from
operations(1) was $873.0 million, $797.1 million from continuing
operations and $75.9 million from discontinued operations, which
included a working capital release of $220.9 million from continuing
operations.
-- Balance Sheet: To exercise the Caserones purchase option, the
consideration of $350 million was fully funded through an increase to
the Company's term loan from $800 million to $1.15 billion. As at
December 31, 2024, the Company had a net debt(1) balance of $1,332.3
million, excluding lease liabilities. Net debt(1) is expected to reduce
significantly with the closing of the sale of Neves-Corvo and
Zinkgruvan.
-- Growth: During the year the Company announced three significant
transactions:
-- On July 2, 2024, the Company closed the option to increase ownership
in Caserones to 70%, which adds approximately 24,000 tonnes of
additional attributable copper production to the Company's
production profile(2).
-- On July 29, 2024, Lundin Mining and BHP announced the joint
acquisition of Filo Corp. ("Filo") and the concurrent formation of a
50/50 joint arrangement ("Joint Arrangement") to hold the Filo del
Sol ("FDS") project and the Josemaria project. The partnership will
create a multi-generational mining district with world-class
potential that could support a globally ranked mining complex.
-- On December 9, 2024, the Company announced the sale of Neves-Corvo
and Zinkgruvan to Boliden for total consideration of up to $1.52
billion. The proceeds from the transaction will strengthen the
Company's balance sheet and support its growth plans in the Vicuña
District.
-- Assets and liabilities held for sale and discontinued operations: At
December 31, 2024, the Neves-Corvo and Zinkgruvan reporting segments met
the criteria to be classified as held-for-sale and discontinued
operations. Accordingly, all assets and liabilities relating to the
Neves-Corvo and Zinkgruvan reporting segments have been classified as
current assets and current liabilities held for sale at December 31,
2024.
Total assets of $1,389.7 million and liabilities of $393.1 million have been classified as held for sale for this purpose. A net loss from discontinued operations of $214.7 million represents the loss after tax of $278.6 million and earnings after tax of $63.9 million from Neves-Corvo and Zinkgruvan, respectively, for the year ended December 31, 2024.
___________________ (1) These are non-GAAP measures. Please refer to the Company's discussion of non-GAAP and other performance measures in its Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2024 and the Reconciliation of Non-GAAP measures section at the end of this news release. (2) Based on Caserones 2024 revised production guidance as outlined in the outlook section of the MD&A for the year ended December 31, 2024.
Summary Financial Results
Three months ended Year ended December 31, December 31, (US$ millions continuing operations except where noted, except per share amounts) 2024 2023 2024 2023 Revenue 858.9 893.4 3,422.6 2,743.4 Gross profit 250.6 177.8 942.9 601.5 Attributable net earningsa (195.3) 12.5 11.1 203.2 Net earnings (159.6) 40.4 153.4 276.9 Adjusted earningsa,b (all operations) 119.2 79.7 358.9 336.2 Adjusted earningsa,b - continuing operations 94.8 72.4 291.7 287.5 Adjusted earningsa,b - discontinued operations 24.4 7.3 67.2 48.7 Adjusted EBITDAb (all operations) 425.6 419.7 1,707.0 1,363.5 Adjusted EBITDAb - continuing operations 368.2 367.6 1,461.8 1,145.6 Adjusted EBITDAb - discontinued operations 57.4 52.1 245.2 217.9 Basic earnings per share ("EPS")a (all operations) (0.57) 0.05 (0.26) 0.31 Basic earnings per share ("EPS")a - continuing operations (0.25) 0.02 0.01 0.26 Basic earnings per share ("EPS")a - discontinued operations (0.32) 0.03 (0.27) 0.05 Adjusted EPSa,b (all operations) 0.15 0.10 0.46 0.44 Adjusted EPSa,b - continuing operations 0.12 0.09 0.38 0.37 Adjusted EPSa,b - discontinued operations 0.03 0.01 0.09 0.06 Cash provided by operating activities (all operations) 620.3 306.1 1,518.9 1,016.6 Cash provided by operating activities related to continuing operations 547.3 249.9 1,300.8 827.2 Cash provided by operating activities related to discontinued operations 73.0 56.2 218.0 189.4 Adjusted operating cash flowb (all operations) 313.9 362.0 1,302.6 1,024.2 Adjusted operating cash flowb - continuing operations 251.8 305.4 1,080.0 847.3 Adjusted operating cash flowb - discontinued operations 62.1 56.7 222.6 176.9 Adjusted operating cash flow per shareb (all operations) 0.40 0.47 1.68 1.33 Adjusted operating cash flow per shareb - continuing operations 0.32 0.39 1.39 1.10 Adjusted operating cash flow per shareb - discontinued operations 0.08 0.08 0.29 0.23 Free cash flowb (all operations) 397.9 61.2 571.2 13.5 Free cash flowb - continuing operations 360.0 43.6 508.2 (19.9) Free cash flowb - discontinued operations 37.9 17.6 63.0 33.4 Free cash flow from operationsb (all operations) 466.0 116.8 873.0 345.1 Free cash flow from operationsb - continuing operations 423.6 95.7 797.1 300.0 Free cash flow from operationsb- discontinued operations 42.5 21.0 75.9 45.1 Cash and cash equivalents 357.5 268.8 357.5 268.8 Net debt excluding lease liabilitiesb (1,332.3) (946.2) (1,332.3) (946.2) Net debtb (1,597.8) (1,223.4) (1,597.8) (1,223.4)
a Attributable to shareholders of Lundin Mining Corporation. b 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 year ended December 31, 2024 and the Reconciliation of Non-GAAP Measures section at the end of this news release.
-- For the year ended December 31, 2024, the Company generated annual
revenue from continuing operations of $3.4 billion (2023 - $2.7
billion). Revenue from discontinued operations was $694.8 million (2023
- $648.6 million), and the combination of revenue from continuing
operations and discontinued operations ("all operations") was an annual
record for the Company of $4.1 billion (2023 - $3.4 billion). The
Company achieved record production of 369,067 tonnes of copper, record
production of 191,704 tonnes of zinc, and 158 thousand ounces ("koz") of
gold, which achieved the most recently disclosed annual guidance for all
metals.
-- For the quarter ended December 31, 2024, the Company generated revenue
from continuing operations of $858.9 million (Q4 2023 - $893.4 million).
Net loss in the quarter from continuing operations was $159.6 million
(Q4 2023 - net earnings of $40.4 million) and adjusted EBITDA(1) (all
operations) was $425.6 million (Q4 2023 - $419.7 million).
-- Net loss for the year was $61.3 million, comprised of a net earnings of
$153.4 million from continuing operations and $214.7 million net loss
from discontinued operations, a decrease in earnings from the prior year
comparable period of $276.9 million from continuing operations and a
decrease from net earnings of $38.4 million from discontinued
operations, primarily due to non-cash impairments of goodwill and assets
relating to Neves-Corvo, Eagle, Suruca and Alcaparrosa during the year,
partially offset by higher gross profit.
-- Adjusted earnings(1) from continuing operations attributable to
shareholders of the Company for the year were $291.7 million or $0.38
per share. Adjusted earnings(1) from discontinued operations
attributable to shareholders of the Company for the year were $67.2
million or $0.09 per share.
-- Cash and cash equivalents at continuing operations as at December 31,
2024 were $357.5 million. As indicated above, cash provided by operating
activities related to continuing operations of $1,300.8 million in the
year was used to fund investing activities from continuing operations of
$855.4 million, which primarily includes $807.3 million investment in
mineral properties, plant and equipment, $41.7 million subscription for
Filo shares to provide interim financing to Filo and the final $25.0
million payment of contingent consideration for the acquisition of
Chapada. Cash used in financing activities related to continuing
operations of $349.8 million was comprised primarily of funds used to
exercise the Company's option to acquire an additional 19% interest in
Caserones for $350.0 million, which was funded by debt proceeds, $202.5
million dividends paid to shareholders and $152.0 million in
distributions paid to non-controlling interests.
-- Free cash flow(1) from continuing operations for the year was $508.2
million and free cash flow(1) from discontinued operations for the year
was $63.0 million.
-- As at February 19, 2025, the Company had cash of approximately $407.1
million and net debt excluding lease liabilities of approximately
$1,322.4 million. Net cash in Vicuña is included on a 50% basis to
represent Lundin Mining's attributable share. Cash and net debt balances
include assets and liabilities classified as held-for-sale.
Operational Performance
Total Production
(Contained metal)a 2024 2023 YTD Q4 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1 Copper (t)b 369,067 101,491 99,855 79,708 88,013 314,798 103,337 89,942 60,057 61,462 Zinc (t) 191,704 51,946 46,610 47,460 45,688 185,161 50,719 49,774 36,115 48,553 Nickel (t) 7,486 1,617 893 1,721 3,255 16,429 3,729 4,290 4,686 3,724 Gold (koz)b 158 46 47 32 33 149 44 35 34 36 Molybdenum (t)b 3,183 912 693 714 864 2,024 928 1,096
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, on a 100% basis, 162,487 tonnes of copper, approximately 93,000 ounces of gold and 2.0 million ounces of silver during the year. Copper and gold production benefited from planned higher grade ore from Phase 11 and in the second half of the year, the operation produced 98,970 tonnes of copper which was one of its best second-half performances in its 30-year history. In late 2024, production from Phase 11 shifted to lower average grades, resulting in annual copper production slightly below the most recently published guidance range. In 2025, production will continue to be sourced primarily from Phase 11 with a planned reduction in average copper grades from those realized in the second half of 2024. Annual gold production was within the most recently disclosed annual guidance range. Copper cash cost(2) of $1.73/lb was within the most recently disclosed 2024 cash cost guidance range and benefitted from higher sales volumes, favourable foreign exchange, and higher by-product credits.
Caserones (70% owned): Caserones produced, on a 100% basis, 124,761 tonnes of copper and 3,183 tonnes of molybdenum, both within the most recently disclosed 2024 annual production guidance ranges. Production during the year was impacted by labour action in August which reduced throughput to approximately 50% capacity over a 14-day period. Mine sequencing changes as a result of hydrogeologic conditions in Phase 5 reduced grades and impacted recoveries in the mill during the quarter. Copper cathode production was positively impacted by increased irrigation pattern on the dump leach pad. Copper cash cost(2 )of $2.51/lb was below the low end of the most recently disclosed cash cost guidance range and benefitted from higher by-product credits and favourable foreign exchange.
______________________ (1) These are non-GAAP measures. Please refer to the Company's discussion of non-GAAP and other performance measures in its MD&A for the year ended December 31, 2024 and the Reconciliation of Non-GAAP measures section at the end of this news release. (2) This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of the MD&A for discussion and the Reconciliation of Non-GAAP measures section at the end of this news release.
Chapada (100% owned): Chapada produced 43,261 tonnes of copper and approximately 65,000 ounces of gold during the year, both metals were within the most recently disclosed 2024 production guidance ranges. An optimized mine plan led to a significant reduction in overall material movement, including waste and ore, and contributed to lower production costs. Increased processing of ore from the older low-grade stockpile and North pit resulted in lower copper production due to lower grades and recoveries. Gold production benefited from higher grades and throughput as emphasis was placed on gold in the current elevated gold price environment. Production costs during the year also benefited from a weakening of the BRL against the USD. Copper cash cost(1) of $1.58/lb was within the most recently disclosed 2024 cash cost guidance range and benefited from higher by-product credits and favourable foreign exchange.
Eagle (100% owned): Eagle produced 7,486 tonnes of nickel and 6,366 tonnes of copper during the year. Production was impacted by reduced mining rates following a fall of ground in the lower ramp in May, which limited access to Eagle East while ramp rehabilitation was completed. During the quarter mining re-commenced at Eagle East and normal throughput is expected to resume in Q1 2025. Both metals were within the most recently disclosed 2024 production guidance ranges. Production costs decreased in line with lower production and sales. Nickel cash cost(1 )of $4.20/lb was above the most recently disclosed 2024 cash cost guidance range due to mining rates not recovering as quickly as expected in the quarter.
Neves-Corvo (100% owned): Neves-Corvo produced 28,228 tonnes of copper and a record 109,571 tonnes of zinc during the year. Copper production was within the most recently disclosed production guidance range and zinc production benefited from higher throughput as a result of the zinc expansion project, although was slightly below the most recently disclosed annual production guidance range. Production costs during the year decreased in line with sales volumes. Annual copper cash cost(1) of $2.19/lb benefited from higher by-product credits but exceeded the most recently disclosed 2024 cash cost guidance range as a result of lower than expected sales volumes.
Zinkgruvan (100% owned): Record zinc production of 82,133 tonnes and lead production of 30,888 tonnes during the year were driven by higher throughput, grades and recoveries. Annual zinc production was within the most recently disclosed 2024 production guidance range. Production costs during the year increased in line with higher zinc and lead production and sales volumes. Zinc cash cost(1) of $0.41/lb was within the most recently disclosed 2024 cash cost guidance range.
___________________ (1) This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
Outlook
On January 16, 2025, the Company announced its production, cash cost, capital expenditures and exploration investment guidance for 2025.
2025 Production and Cash Cost Guidance(a )
Revised Guidance (contained Production Cash Cost metal) ($/lb)b Copper (t) Candelaria 140,000 - (100%) 150,000 1.80 - 2.00c Caserones (100%) 115,000 - 125,000 2.40 - 2.60 Chapada 40,000 - 45,000 1.80 - 2.00d Eagle 8,000 - 10,000 Total 303,000 - 330,000 2.05 - 2.30 Gold (koz) Candelaria (100%) 78 - 88 Chapada 57 - 62 Total 135 - 150 Nickel (t) Eagle 8,000 - 11,000 3.05 - 3.25
a. Guidance as outlined in the news release 'Lundin Mining Announces Record Production Results for 2024 and Provides 2025 Guidance' dated January 16, 2025. b. 2025 cash costs are based on various assumptions and estimates, including but not limited to: production volumes, commodity prices (Cu: $4.40/lb, Au: $2,500/oz, Mo: $17.00/lb, Ag: $30.00/oz), foreign exchange rates (USD/CLP:900, USD/BRL:5.50) and operating costs. Cash cost is a non-GAAP measure - see section 'Non-GAAP and Other Performance Measures' of the Company's MD&A for the year ended December 31, 2024 and the Reconciliation of Non-GAAP Measures section at the end of this news release. c. 68% of Candelaria's total gold and silver production are subject to a streaming agreement. Cash costs are calculated based on receipt of approximately $433/oz gold and $4.32/oz silver. d. Chapada's cash cost is calculated on a by-product basis and does not include the effects of its copper stream agreements. Effects of the copper stream agreements are reflected in copper revenue and will impact realized price per pound.
2025 Capital Expenditure Guidance(a)
($ millions) Guidanceb Candelaria (100% basis) 205 Caserones (100% basis) 215 Chapada 85 Eagle 25 Total Sustaining 530 Expansionary -Candelaria (100% basis) 50 Expansionary -Vicuña Joint Arrangement (50% basis) 155 Total Capital Expenditures 735
a. Guidance as outlined in the news release 'Lundin Mining Announces Record Production Results for 2024 and Provides 2025 Guidance' dated January 16, 2025. b. Sustaining capital expenditure is a supplementary financial measure, and expansionary capital expenditure is a non-GAAP measure - see section 'Non-GAAP and Other Performance Measures' of the Company's MD&A for the year ended December 31, 2024 and the Reconciliation of Non-GAAP Measures section at the end of this news release.
2025 Exploration Investment Guidance
Total exploration expenditure guidance for 2025 is $40 million.
Exploration
During the quarter, exploration activity focused on in-mine and near-mine targets at the Company's operations. Exploration drilling at Candelaria was focused on Candelaria South, La Portuguesa and La Espanola.
At Caserones, exploration drilling was completed in the lower portion of the mineral resource in search of higher-grade copper breccia bodies that could improve the average grade of the resource and potentially expand it. The drilling program at Angelica, in search of copper sulphides, was also completed during the quarter.
Drilling at Chapada concentrated on adding high grade resources to Sauva and testing near-mine geochemical anomalies.
At Josemaria, the drilling campaign restarted at Cumbre Verde.
Drilling continued at Eagle during the quarter with one surface hole targeting a geophysical anomaly east of Eagle East. At Neves-Corvo, the 2024 drilling program focused on extending inferred resources at Lombador North and near-mine drilling at Neves Southwest concluded at the end of the quarter. Drilling at Zinkgruvan was focused on resource expansion.
All 2024 drilling campaigns were successfully completed by the end of the quarter.
Vicuña
During the quarter, the Company focused on preparing for the completion of the acquisition of Filo and formation of the 50/50 Joint Arrangement with BHP, initially announced on July 29, 2024. The work plan associated with the transaction with BHP progressed as expected. Subsequent to year-end on January 15, 2025, the Company completed the Filo acquisition and the Joint Arrangement with BHP, resulting in the Company indirectly holding a 50% interest in Vicuña Corp. ("Vicuña"), which owns the FDS project and Josemaria project. BHP indirectly owns the remaining 50% interest in Vicuña.
As part of the Joint Arrangement, the 2024 work scope was changed to include incorporation of new studies and preparation of a resource model relating to FDS, a joint development concept pertaining to the Josemaria and FDS ore bodies as well as processing facilities and infrastructure. An action plan was developed for the combined project, including a 2025 budget that included advancement of studies associated with the synergies between the FDS and Josemaria projects, continuation of the drilling program and advancing the Josemaria project.
Capital expenditures for the Joint Arrangement are forecast to total $312 million on a 100% basis for 2025. The workplan will focus on FDS drilling, FDS mineral resource estimation, Josemaria mineral resource estimation update, mine planning, metallurgy, hydrology wells and studies, commencement of access road construction, and exploration at the Cumbre Verde target. In parallel, engineering studies and trade off analysis will be completed in preparation for future permitting and a technical report outlining an integrated project plan for development and operation.
Vicuña is targeting a new mineral resource estimate at FDS and an update to the resource estimate at Josemaria within the first half of 2025. These resource estimates will form the basis of an integrated technical report which will outline the development plan for the phased construction of the district.
Drilling is currently underway at FDS and Cumbre Verde. Drilling at FDS will continue throughout the year. The drill program at FDS will focus on resource growth with multiple step-out targets in all directions from zones of known mineralization, including both the Bonita and Aurora Zones along with infill drilling to support an initial sulphide mineral resource estimate. Drilling at Cumbre Verde will follow up on the initial results from last year and target the same mineralized system and structures discovered to the north of the project.
During the quarter, Josemaria activities were focused on continuing the Environmental Impact Assessment ("EIA") update and maintaining progress on the water program. Field activities continued with the water program, geotechnical studies, road maintenance, wetlands biodiversity offset and exploration drilling at Cumbre Verde.
Senior Leadership Appointments
The Company would also like to announce the executive appointments of Eduardo Cortes as Vice President, Mining & Mineral Resources and Andre Gagnon as Vice President, Geotechnics & Water.
Eduardo Cortes
Eduardo Cortés is the Vice President, Mining & Resources at Lundin Mining Corporate, leading mine planning, reserves, geology, and metallurgy across the company's global operations. With more than 12 years of experience across the Americas, he has a strong track record of mine optimization, cost reduction, and strategic growth.
Previously, at Lundin Mining Corporate, he served as Director, Reserves & Mine Planning, overseeing reserve estimation and technical assurance, and before that, as Senior Mining Engineer, leading high-impact optimization projects at Candelaria, Caserones, and Chapada.
Before joining Lundin Mining, Eduardo was a core member of the Fruta del Norte project at Lundin Gold, developing the mine from feasibility through commercial production. Following this, he served as Chief Engineer at Bluestone Resources, overseeing mine planning efforts. Earlier, at NCL SPA, he worked on major underground projects for Codelco and Anglo American.
Eduardo holds a Mining Engineering degree from Universidad de Santiago de Chile and is fluent in Spanish and English, with intermediate Portuguese.
Andre Gagnon
Andre Gagnon was appointed Vice President, Geotechnics & Water. Mr. Gagnon joined Lundin Mining in 2017 and has served in increasingly senior roles, starting as Senior Tailings & Geotechnical Engineer before progressing to Director, Tailings. Mr. Gagnon is responsible for leading a team of functional experts focused on tailings, water, geotechnical engineering, and hydrogeology. Mr. Gagnon has more than 18 years of experience in the mining industry.
Prior to joining Lundin Mining, he served as Manager, Tailings at Goldcorp and as a consultant focused on tailings and geotechnical engineering, and water management.
Mr. Gagnon holds a B.A.Sc. in Geological Engineering from Queen's University, and an M.Sc. in Engineering Geology from Imperial College London. He is a registered Professional Engineer in Ontario and British Columbia.
About Lundin Mining
Lundin Mining is a diversified Canadian base metals mining company with projects or operations focused in the Americas and primarily producing copper, 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 February 19, 2025 at 18:35 Vancouver 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 Patrick Merrin, P.Eng., Executive Vice President, Technical Services, a "Qualified Person" under NI 43-101. Mr. Merrin has verified the data disclosed in this release and no limitations were imposed on his verification process.
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 MD&A the year ended ended December 31, 2024 which is available on SEDAR+ at www.sedarplus.ca.
Cash Cost per Pound and All-in Sustaining Costs per pound can be reconciled to Production Costs as follows:
Three months ended December 31, 2024 Operations Candelaria Caserones Chapada Eagle Total - Neves- Zinkgruvan Total - continuing Corvo discontinued operations operations ($000s, unless otherwise noted) (Cu) (Cu) (Cu) (Ni) (Cu) (Zn) Sales volumes (Contained metal): Tonnes 49,052 26,750 10,200 1,088 5,230 18,627 Pounds (000s) 108,141 58,973 22,487 2,399 11,531 41,066 Production costs 486,877 102,300 Less: Royalties and other (27,839) (20) 459,038 102,280 Deduct: By-product credits (137,021) (75,716) Add: Treatment and refining 27,483 12,128 Cash cost 165,039 147,826 24,107 12,528 349,500 21,230 17,462 38,692 Cash cost per pound ($/lb) 1.53 2.51 1.07 5.22 1.84 0.43 Add: Sustaining capital 55,526 42,988 32,916 5,224 12,680 22,470 Royalties 4,692 7,663 2,689 696 793 Reclamation and other closure accretion and depreciation 2,129 (4,457) 2,373 1,734 1,184 747 Leases & other 1,449 17,229 1,080 2,691 2,917 74 All-in sustaining cost 228,835 211,249 63,165 22,873 38,804 40,753 AISC per pound ($/lb) 2.12 3.58 2.81 9.53 3.37 0.99
Three months ended December 31, 2023 Operations Candelaria Caserones Chapada Eagle Total - Neves- Zinkgruvan Total - continuing Corvo discontinued operations operations ($000s, unless otherwise noted) (Cu) (Cu) (Cu) (Ni) (Cu) (Zn) Sales volumes (Contained metal): Tonnes 38,888 35,690 13,080 3,105 9,054 17,316 Pounds (000s) 85,733 78,683 28,836 6,845 19,961 38,176 Production costs 533,783 114,254 Less: Royalties and other (22,221) (2,299) Inventory fair value adjustment (7,760) 503,802 111,955 Deduct: By-product credits (136,641) (67,523) Add: Treatment and refining 39,139 18,799 Cash cost 152,276 183,687 54,108 16,229 406,300 39,218 24,013 63,231 Cash cost per pound ($/lb) 1.78 2.33 1.88 2.37 1.96 0.63 Add: Sustaining capital 79,316 55,031 19,858 6,548 28,070 10,546 Royalties 8,270 2,174 5,003 1,081 Reclamation and other closure accretion and depreciation 2,158 1,427 2,047 2,620 1,305 933 Leases & other 2,901 25,715 1,131 1,101 106 103 All-in sustaining cost 236,651 274,130 79,318 31,501 69,780 35,595 AISC per pound ($/lb) 2.76 3.48 2.75 4.60 3.50 0.93
Year ended December 31, 2024 Operations Candelaria Caserones Chapada Eagle Total - Neves- Zinkgruvan Total - continuing Corvo discontinued operations operations ($000s, unless otherwise noted) (Cu) (Cu) (Cu) (Ni) (Cu) (Zn) Sales volumes (Contained metal): Tonnes 158,017 113,867 39,615 5,662 26,721 68,086 Pounds (000s) 348,367 251,033 87,336 12,483 58,910 150,104 Production costs 1,898,627 445,227 Less: Royalties and other (84,501) (4,785) 1,814,126 440,442 Deduct: By-product credits (504,431) (305,479) Add: Treatment and refining 113,565 55,407 Cash cost 603,533 629,582 137,714 52,431 1,423,260 129,128 61,242 190,370 Cash cost per pound ($/lb) 1.73 2.51 1.58 4.20 2.19 0.41 Add: Sustaining capital 275,720 143,965 107,843 21,222 89,302 65,658 Royalties 15,730 32,106 8,580 7,442 3,961 Reclamation and other closure accretion and depreciation 8,570 (1,262) 10,153 6,767 5,220 4,033 Leases & other 9,133 69,002 3,576 6,949 3,322 309 All-in sustaining cost 912,686 873,393 267,866 94,811 230,933 131,242 AISC per pound ($/lb) 2.62 3.48 3.07 7.60 3.92 0.87
Year ended December 31, 2023 Operations Candelaria Caserones Chapada Eagle Total - Neves- Zinkgruvan Total - continuing Corvo discontinued operations operations ($000s, unless otherwise noted) (Cu) (Cu) (Cu) (Ni) (Cu) (Zn) Sales volumes (Contained metal): Tonnes 144,473 66,075 43,761 13,339 32,054 65,344 Pounds (000s) 318,508 145,670 96,476 29,407 70,667 144,059 Production costs 1,644,037 442,071 Less: Royalties and other (60,916) (5,321) Inventory fair value adjustment (39,945) 1,543,176 436,750 Deduct: By-product credits (428,208) (271,707) Add: Treatment and refining 118,480 64,848 Cash cost 660,160 290,553 219,278 63,457 1,233,448 167,424 62,467 229,891 Cash cost per pound ($/lb) 2.07 1.99 2.27 2.16 2.37 0.43 Add: Sustaining capital 380,112 83,880 72,291 22,201 102,621 53,358 Royalties 15,820 8,568 22,994 3,949 Reclamation and other closure accretion and depreciation 9,258 2,560 7,836 11,331 5,387 3,744 Leases & other 13,325 47,944 4,999 4,100 553 427 All-in sustaining cost 1,062,855 440,757 312,972 124,083 279,934 119,996 AISC per pound ($/lb) 3.34 3.03 3.24 4.22 3.96 0.83
Adjusted EBITDA can be reconciled to Net Earnings (Loss) as follows:
Three months ended Year ended December 31, December 31, ($thousands) 2024 2023 2024 2023 2022 Net earnings (loss) - continuing operations (159,618) 40,444 153,354 276,850 316,772 Add back: Depreciation, depletion and amortization 148,033 181,865 607,744 497,873 416,204 Finance costs, net 38,282 32,023 141,455 91,429 51,317 Income taxes expense 34,767 101,858 229,973 214,366 104,113 EBITDA - continuing operations 61,464 356,190 1,132,526 1,080,518 888,406 Unrealized foreign exchange loss (gain) (10,808) 2,693 (10,994) 1,804 16,491 Unrealized losses (gains) on derivative contracts 85,986 (2,592) 85,168 8,464 (62,971) Ojos del Salado sinkhole expenses (recoveries) (10,042) 1,687 (9,492) 16,922 63,271 Revaluation loss (gain) on marketable securities (911) (1,393) (7,383) (1,846) (5,201) Caserones inventory fair value adjustment 7,760 39,945 Partial suspension of underground operations at Eagle 11,436 36,073 Revaluation of Caserones purchase option 2,556 (11,728) 2,556 Write-down of assets 4,160 22,129 5,783 Goodwill and asset impairment 254,218 254,218 4,280 Inventory write-down (reversal) (26,626) (26,626) 62,546 Gain on disposal of subsidiary (5,718) (16,828) Other (637) 732 (2,085) 2,958 (2,133) Total adjustments - EBITDA 306,776 11,443 329,280 65,085 65,238 Adjusted EBITDA - continuing operations 368,240 367,633 1,461,806 1,145,603 953,644 Including discontinued operations: Net earnings (loss) - discontinued operations (244,816) 26,309 (214,671) 38,399 146,761 Add back: Depreciation, depletion and amortization 32,831 41,191 155,344 155,723 138,546 Finance costs, net 1,813 2,868 9,793 11,270 12,868 Income taxes expense (22,173) 758 (13,711) 2,233 30,515 EBITDA - discontinued operations (232,345) 71,126 (63,245) 207,625 328,690 Unrealized foreign exchange loss (gain) (960) 76 (200) (580) 4,673 Unrealized losses (gains) on derivative contracts (466) (16,717) 18,597 13,468 Goodwill and asset Impairment 291,178 291,178 (19) Other (22) (2,388) (1,114) (2,568) 5,518 Total adjustments - EBITDA discontinued operations 289,730 (19,029) 308,461 10,320 10,172 Adjusted EBITDA - discontinued operations 57,385 52,097 245,216 217,945 338,862 Adjusted EBITDA (all operations) 425,625 419,730 1,707,022 1,363,548 1,292,506
Adjusted Earnings and Adjusted EPS can be reconciled to Net Earnings (Loss) Attributable to Lundin Mining Shareholders as follows:
Three months ended Year ended December 31, December 31, ($thousands, except share and per share amounts) 2024 2023 2024 2023 2022 Net (loss) earnings attributable to Lundin Mining shareholders - continuing operations (195,343) 12,488 11,144 203,163 277,198 Add back: Total adjustments - EBITDA 306,776 11,443 329,280 65,085 65,238 Tax effect on adjustments (57,600) (2,987) (59,519) (26,925) 2,882 Deferred tax expense due to change in tax rate 14,500 40,200 Deferred tax arising from foreign exchange translation 45,065 41,168 12,712 28,841 (20,733) Non-controlling interest on adjustments (4,077) (4,221) (1,912) (22,886) 2,026 Total adjustments 290,164 59,903 280,560 84,315 49,413 Adjusted earnings - continuing operations 94,821 72,391 291,704 287,478 326,611 Including discontinued operations: Net earnings attributable to Lundin Mining shareholders - discontinued operations(1) (244,816) 26,309 (214,671) 38,399 149,652 Add back: Total adjustments - EBITDA - discontinued operations 289,730 (19,029) 308,461 10,320 10,172 Tax effect on adjustments (20,544) (26,547) (3,679) Total adjustments 269,186 (19,029) 281,914 10,320 6,493 Adjusted earnings - discontinued operations 24,370 7,280 67,243 48,719 156,145 Adjusted earnings (all operations) 119,191 79,671 358,947 336,197 482,756 Basic weighted average number of shares outstanding 776,720,828 773,476,216 774,825,230 772,532,260 762,518,753 Net (loss) earnings attributable to Lundin Mining shareholders - continuing operations (0.25) 0.02 0.01 0.26 0.36 Total adjustments 0.37 0.08 0.36 0.11 0.06 Adjusted EPS - continuing operations 0.12 0.09 0.38 0.37 0.43 Net (loss) earnings attributable to Lundin Mining shareholders - discontinued operations (0.32) 0.03 (0.28) 0.05 0.20 Total adjustments 0.35 (0.03) 0.36 0.01 0.01 Adjusted EPS - discontinued operations 0.03 0.01 0.09 0.06 0.20 Net (loss) earnings attributable to Lundin Mining shareholders (0.57) 0.05 (0.26) 0.31 0.56 Total adjustments 0.72 0.05 0.73 0.12 0.07 Adjusted EPS (all operations) 0.15 0.10 0.46 0.44 0.63
1 Represents Net (loss) earnings attributable to Lundin Mining Corporation shareholders less Net earnings from continuing operations attributable to Lundin Mining Corporation shareholders.
Free Cash Flow from Operations and Free Cash Flow can be reconciled to Cash provided by Operating Activities on the Company's Consolidated Statement of Cash Flows as follows:
Three months ended Year ended December 31, December 31, ($thousands) 2024 2023 2024 2023 2022 Cash provided by operating activities related to continuing operations 547,267 249,875 1,300,848 827,244 615,986 Sustaining capital expenditures (136,674) (165,211) (549,100) (571,245) (520,465) General exploration and business development 12,974 11,062 45,352 44,010 135,213 Free cash flow from operations - continuing operations 423,567 95,726 797,100 300,009 230,734 General exploration and business development (12,974) (11,062) (45,352) (44,010) (135,213) Expansionary capital expenditures (50,607) (41,082) (243,566) (275,913) (171,094) Free cash flow - continuing operations 359,986 43,582 508,182 (19,914) (75,573) Cash provided by operating activities related to discontinued operations 73,014 56,206 218,009 189,368 260,903 Sustaining capital expenditures (35,150) (38,616) (154,960) (155,979) (119,366) General exploration and business development 4,614 3,438 12,843 11,682 9,140 Free cash flow from operations - discontinued operations 42,478 21,028 75,892 45,071 150,677 General exploration and business development (4,614) (3,438) (12,843) (11,682) (9,140) Expansionary capital expenditures (31,899) Free cash flow - discontinued operations 37,864 17,590 63,049 33,389 109,638 Free cash flow from operations (all operations) 466,045 116,754 872,992 345,080 381,411 Free cash flow (all operations) 397,850 61,172 571,231 13,475 34,065
Adjusted Operating Cash Flow and Adjusted Operating Cash Flow per Share can be reconciled to Cash Provided by Operating Activities on the Company's Consolidated Statement of Cash Flows as follows:
Three months ended Year ended December 31, December 31, ($thousands, except share and per share amounts) 2024 2023 2024 2023 2022 Cash provided by operating activities related to continuing operations 547,267 249,875 1,300,848 827,244 615,986 Changes in non-cash working capital items (295,508) 55,518 (220,880) 20,032 124,087 Adjusted operating cash flow - continuing operations 251,759 305,393 1,079,968 847,276 740,073 Cash provided by operating activities related to discontinued operations 73,014 56,206 218,009 189,368 260,903 Changes in non-cash working capital items (10,895) 447 4,615 (12,427) (8,031) Adjusted operating cash flow - discontinued operations 62,119 56,653 222,624 176,941 252,872 Adjusted operating cash flow (all operations) 313,878 362,046 1,302,592 1,024,217 992,945 Basic weighted average number of shares outstanding 776,720,828 773,476,216 774,825,230 772,532,260 762,518,753 Adjusted operating cash flow per share - continuing operations $0.32 0.39 1.39 1.10 1.00 Adjusted operating cash flow per share - discontinued operations $0.08 0.08 0.29 0.23 0.30 Adjusted operating cash flow per share (all operations) $0.40 0.47 1.68 1.33 1.30
Net debt and net debt excluding lease liabilities can be reconciled to Debt and Lease Liabilities, Current Portion of Debt and Lease Liabilities and Cash and Cash Equivalents on the Company's Consolidated Balance Sheets as follows:
($ thousands), continuing operations December 31, 2024 December 31, December 31, 2023 2022 Debt and lease liabilities (1,610,925) (1,273,162) (27,179) Current portion of debt and lease liabilities (395,232) (212,646) (170,149) Less deferred financing fees (netted in above) (7,656) (6,374) (4,926) Add debt and lease liabilities related to liabilities classified as held-for-sale (16,266) (2,030,079) (1,492,182) (202,254) Cash and cash equivalents 357,478 268,793 191,387 Add cash and cash equivalents related to assets classified as held-for-sale 74,801 Net debt (1,597,800) (1,223,389) (10,867) Lease liabilities 249,185 277,208 27,166 Lease liabilities related to liabilities classified as held-for-sale 16,266 Net debt excluding lease liabilities (1,332,349) (946,181) 16,299
Cautionary Statement on Forward-Looking Information
Certain of the statements made and information contained herein are "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, Pre-Feasibility Study, 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 expansions and any anticipated benefits thereof, including the anticipated project development and other plans and expectations with respect to the 50/50 joint arrangement with BHP; the timing and completion of the sale of the Company's European assets; 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 information.
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, gold, zinc, nickel and other metals; anticipated costs; ability to achieve goals; the prompt and effective integration of acquisitions and the realization of synergies and economies of scale in connection therewith; 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, such information is 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 information and undue reliance should not be placed on such information. Such factors include, but are not limited to: dependence on international market prices and demand for the metals that the Company produces; political, economic, and regulatory uncertainty in operating jurisdictions, including but not limited to those related to permitting and approvals, nationalization or expropriation without fair compensation, environmental and tailings management, labour, trade relations, and transportation; risks relating to mine closure and reclamation obligations; health and safety hazards; inherent risks of mining, not all of which related risk events are insurable; risks relating to tailings and waste management facilities; risks relating to the Company's indebtedness; challenges and conflicts that may arise in partnerships and joint operations; risks relating to development projects; risks that revenue may be significantly impacted in the event of any production stoppages or reputational damage in Chile; the impact of global financial conditions, market volatility and inflation; business interruptions caused by critical infrastructure failures; challenges of effective water management; exposure to greater foreign exchange and capital controls, as well as political, social and economic risks as a result of the Company's operation in emerging markets; risks relating to stakeholder opposition to continued operation, further development, or new development of the Company's projects and mines; any breach or failure information systems; risks relating to reliance on estimates of future production; risks relating to litigation and administrative proceedings which the Company may be subject to from time to time; risks relating to acquisitions or business arrangements; risks relating to competition in the industry; failure to comply with existing or new laws or changes in laws; challenges or defects in title or termination of mining or exploitation concessions; the exclusive jurisdiction of foreign courts; the outbreak of infectious diseases or viruses; risks relating to taxation changes; receipt of and ability to maintain all permits that are required for operation; minor elements contained in concentrate products; changes in the relationship with its employees and contractors; the Company's Mineral Reserves and Mineral Resources which are estimates only; payment of dividends in the future; compliance with environmental, health and safety laws and regulations, including changes to such laws or regulations; interests of significant shareholders of the Company; asset values being subject to impairment charges; potential for conflicts of interest and public association with other Lundin Group companies or entities; activist shareholders and proxy solicitation firms; risks associated with climate change; the Company's common shares being subject to dilution; ability to attract and retain highly skilled employees; reliance on key personnel and reporting and oversight systems; risks relating to the Company's internal controls; counterparty and customer concentration risk; risks associated with the use of derivatives; exchange rate fluctuations; the completion of the sale of the Company's European assets; and other risks and uncertainties, including but not limited to those described in the "Risks and Uncertainties" section of the Company's MD&A for the year ended December 31, 2024 and the "Risks and Uncertainties" section of the Company's Annual Information Form for the year ended December 31, 2024, which are available on SEDAR+ at www.sedarplus.ca under the Company's profile.
All of the forward-looking information 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, forecasted 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.
For further information, please contact: Stephen Williams, Vice President, Investor Relations +1 604 806 3074; Robert Eriksson, Investor Relations Sweden: +46 8 440 54 40
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Lundin Mining Corporation