Lundin Mining Fourth Quarter and Full Year 2024 Results

VANCOUVER, BC, February 19, 2025 /CNW/ - (TSX: LUN; Nasdaq Stockholm: LUMI) 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 operations1. Notwithstanding the $350 million purchase of an additional 19% at Caserones to bring our overall ownership to 70%, our net debt1 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 30th 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 price¹ of $3.75 /lb and a realized gold price1 of $2,643 /oz, and $165.0 million from discontinued operations.

•          Net Earnings and Adjusted Earnings1: 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 earnings1 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 operations1 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.

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 price1 of $4.18 /lb and a realized gold price1 of $2,532 /oz, and $694.8 million from discontinued operations.

•          Adjusted EBITDA²:  $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 Earnings1: 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 operations1 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 debt1 balance of $1,332.3 million, excluding lease liabilities. Net debt1 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 profile³.

◦          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.

  

Summary Financial Results

 

	Three months ended December 31,			Year ended 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 EBITDA⁴ (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 earnings1 from continuing operations attributable to shareholders of the Company for the year were $291.7 million or $0.38 per share. Adjusted earnings1 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 flow1 from continuing operations for the year was $508.2 million and free cash flow1 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 cost⁵ 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 cost2 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.  

 

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 cost1 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 cost1 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 cost⁶ 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 cost1 of $0.41/lb was within the most recently disclosed 2024 cash cost guidance range.

 

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 Guidancea

			Revised Guidance
	(contained metal)		Production	Cash Cost ($/lb)b
	Copper (t)	Candelaria (100%)	140,000 – 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 Guidancea

	($ 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.

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 - continuing operations	Neves- Corvo	Zinkgruvan	Total - discontinued 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 - continuing operations	Neves- Corvo	Zinkgruvan	Total - discontinued 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 - continuing operations	Neves- Corvo	Zinkgruvan	Total - discontinued 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 - continuing operations	Neves- Corvo	Zinkgruvan	Total - discontinued 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 December 31,			Year ended 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 December 31,			Year ended 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 operations1	(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 December 31,			Year ended 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 December 31,			Year ended 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, 2023	December 31, 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.

________________________________________________