VANCOUVER, BC, June 18, 2025 /PRNewswire/ -- (TSX: LUN) (Nasdaq Stockholm: LUMI) Lundin Mining Corporation ("Lundin Mining" or the "Company") will host a Capital Markets Day on June 18, 2025 to outline the Company's strategic aspirations to become a global top-ten copper producer and achieve copper production of over 500,000 tonnes per year and gold production of over 550,000 ounces ("oz") per year. The Company will present on multiple initiatives identified to date that are expected to support its strategic vision, including growth initiatives at its operations, as well as the development of the Vicua district, which is recognized as one of the world's largest copper, gold and silver Mineral Resources (see Lundin Mining's News Release dated May 4, 2025). Unless otherwise stated, dollar amounts are presented in United States dollars on a 100% basis. View PDF
Jack Lundin, President and CEO commented, "Lundin Mining is entering an exciting new growth phase, underpinned by a clear path to increase copper production through low-cost brownfield expansions at Candelaria, Caserones, and Chapada. These projects are expected to deliver meaningful production gains over the next three to five years. Across all our operations, we see significant exploration upside, including promising opportunities at Eagle that could meaningfully extend the life of mine. In parallel, our Vicua Project offers transformational long-term growth potential. Backed by a significantly strengthened balance sheet, reduced cash costs, robust free cash flow generation, and a best-in-class team, we are well-positioned to continue returning capital to shareholders while advancing our ambition of becoming a top-ten global copper producer."
Growth Initiatives
The Company has outlined medium-term brownfield expansion opportunities over the next three to five years to grow copper production by 30,000 – 40,000 tonnes per year through low capital intensity projects, including those at Candelaria, Caserones and Chapada described below.
- Candelaria: Management has reworked the previously envisioned Candelaria Underground Expansion Project (CUGEP) to a lower capital-intensive option with only marginally lower production rates. The expansion opportunity includes the insourcing of Lundin Mining's underground mining contract, which is anticipated to provide incremental copper production gains from higher productivity rates through better mechanical availability and higher development rates. Through initiatives identified, underground throughput capacity could increase by 50% to 60% (to ~22,000 tonnes per day) from current levels (12,000 to 14,000 tonnes per day). The Company forecasts that this could increase annual copper production at Candelaria by approximately 10% or 14,000 tonnes of copper per year at a low cost of capital.
- Caserones: While leaching improvements have incrementally increased cathode production over recent quarters, the cathode plant remains underutilized. The Company forecasts that through continued improvements with its leaching practices and additional oxide material, incremental future production can be realized in the range of 7,000 – 10,000 tonnes of copper per year.
- Chapada: Internal scoping studies for the Sava project have identified the potential to add approximately 15,000 to 20,000 tonnes of copper production per year and 50,000 to 60,000 ounces of gold production per year, representing 50% and 100% production increases at Chapada for copper and gold respectively. This brownfield project is ~15 km from the Chapada mine and is undergoing a prefeasibility study, which is expected to be completed by the end of the year.
- Eagle: Exploration is underway at the Boulderdash project where Lundin Mining has entered into exclusivity for a 70% earn-in agreement with Talon Metals Corp. (see Lundin Mining's News Release dated March 5, 2025). The Boulderdash exploration properties are adjacent to the Company's Eagle mine. Exploration success at Boulderdash could meaningfully extend the life of mine at Eagle.
In addition to the growth initiatives at its operations, Lundin Mining holds a 50% interest in the Vicua Project (comprised of the Filo del Sol and Josemaria deposits), which has the potential to transform the Company's copper, gold and silver production profile.
- Vicua Project: The recently published Mineral Resource estimate for the Vicua Project highlights one of the world's largest copper, gold and silver Mineral Resources, with the potential to support a globally ranked mining complex. The Company continues to advance the integrated study of Filo del Sol and Josemaria, which is expected to be completed in Q1 2026. The integrated study will outline a development concept for the combined project, including a production profile and capital estimate.
Financial Outlook
The Company continues to return capital to investors targeting an annual distribution of $220 million through a combination of regular dividends and share buybacks. The Company's 2025 production guidance remains unchanged and, based on the mid-point of the production guidance and on the Company's forecast copper price of $4.40/lb copper, revenue for 2025 is forecast to be approximately $3.7 billion with adjusted operating cash flow1 of $1.3 billion and adjusted free cash flow from operations2 of $800 million. The Company is also providing guidance on its financial performance over the next five years, from 2025 to 2029 with forecast cumulative earnings before interest, taxes, depreciation and amortization (EBITDA)1 of $8.1 billion, adjusted operating cash flow1 of $6.5 billion and adjusted free cash flow from operations2 of $4.9 billion.3
Lundin Mining will host a Capital Markets Day on Wednesday, June 18, 2025, from 8:00 am to 12:00 pm ET. The event can be viewed as follows:
Webcast / Conference Call Details:
Date: Wednesday, June 18, 2025
Time: 8:00 AM ET | 1:00 PM BST
Webcast: WEBCAST LINK or https://lundin-mining.videosync.fi/cmd-2025/register
An archive of the webcast will be available at www.lundinmining.com after the event.
2025 Guidance Updates
In addition, the Company is providing an update on its cash cost and capital expenditures guidance.
The Company remains on track to meet annual consolidated production guidance for copper, gold and nickel. Total consolidated copper production for the two months April and May 2025 was 53,000 tonnes and year to date to the end of May 2025 is 129,800 tonnes.
Cash cost guidance at Chapada has been reduced as cash costs continue to benefit from increased realized prices on by-product gold sales and weaker local currency while the cash cost guidance for the other assets remains unchanged. As a result, the consolidated cash cost4 guidance is being reduced from $2.05 - $2.30/lb to $1.95 - $2.15/lb copper.
Annual sustaining capital expenditure5 guidance has remained at $530 million with reductions at Caserones due to rescheduled projects, being offset by higher capital expenditure on tailings at Chapada. Expenditure guidance related to expansionary capital5 has increased from $205 million to $265 million, primarily driven by an increase in the Vicua Project budget.
2025 Production and Cash Cost Guidance
| | | | Guidancea | Revised Guidance |
| | (contained metal) | Production | Cash Cost ($/lb)b | Production | Cash Cost ($/lb)b,c |
| | Copper (t) | Candelaria (100%) | 140,000 – 150,000 | 1.80 – 2.00 | 140,000 – 150,000 | 1.80 – 2.00 |
| | | Caserones (100%) | 115,000 – 125,000 | 2.40 – 2.60 | 115,000 – 125,000 | 2.40 – 2.60 |
| | | Chapada | 40,000 – 45,000 | 1.80 – 2.00d | 40,000 – 45,000 | 1.30 – 1.50d |
| | | Eagle | 8,000 – 10,000 | | 8,000 – 10,000 | |
| | | Total | 303,000 – 330,000 | 2.05 – 2.30 | 303,000 – 330,000 | 1.95 – 2.15 |
| | Gold (koz) | Candelaria (100%)e | 78 – 88 | | 78 – 88 | |
| | | Chapada | 57 – 62 | | 57 – 62 | |
| | | Total | 135 – 150 | | 135 – 150 | |
| | Nickel (t) | Eagle | 8,000 – 11,000 | 3.05 – 3.25 | 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. Please refer to the January 16, 2025 news release for related assumptions and estimates. b. Cash cost is a non-GAAP measure. For equivalent historical non-GAAP measure comparatives, see the Historical Non-GAAP Measure Comparatives section of this press release. Please also see the Management's Discussion and Analysis for the year ended December 31, 2024, and the three months ended March 31, 2025. |
| c. 2025 revised projected cash costs are based on various assumptions and estimates, including but not limited to: production volumes, commodity prices (Cu: $4.40/lb, Au: $3,000/oz, Mo: $20.00/lb, Ag: $30.00/oz), foreign exchange rates (USD/CLP:950, USD/BRL:5.50) and operating costs. d. Chapada's cash cost is calculated on a by-product basis and does not include the effects of its copper stream agreements. Effects of the copper stream agreements are reflected in copper revenue and will impact realized price per pound. |
| e. 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 $4.32/oz silver. |
| |
2025 Capital Expenditure Guidanceb,c
| | ($ millions) | Guidancea | Revisions | Revised Guidance |
| | Candelaria (100% basis) | 205 | - | 205 |
| | Caserones (100% basis) | 215 | (15) | 200 |
| | Chapada | 85 | 15 | 100 |
| | Eagle | 25 | - | 25 |
| | Total Sustaining | 530 | - | 530 |
| | Expansionary - Candelaria (100% basis) | 50 | - | 50 |
| | Expansionary - Vicua Joint Arrangement (50% basis) | 155 | 60 | 215 |
| | Total Capital Expenditures | 735 | 60 | 795 |
| a. Guidance as outlined in the news release "Lundin Mining Announces Record Production Results for 2024 and Provides 2025 Guidance" dated January 16, 2025. Please refer to the January 16, 2025 news release for related assumptions and estimates. |
| b. Sustaining capital expenditure is a supplementary financial measure, and expansionary capital expenditure is a non-GAAP measure. For more information and historical comparatives, see the Historical Non-GAAP Measure Comparatives section of this press release. Please also see the Management's Discussion and Analysis for the year ended December 31, 2024 and three months ended March 31, 2025 for discussion of non-GAAP measures. c. Capital expenditures are based on various assumptions and estimates, including, but not limited to foreign currency exchange rates (2025 - CLP/USD:950, USD/BRL:5.50) |
Qualified Persons
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 and approved by Eduardo Corts, Registered Member (Comisin Calificadora de Competencias en Recursos y Reservas Mineras (Chilean Mining Commission)), Vice President, Mining & Resources at Lundin Mining, who is a "Qualified Person" under NI 43-101. Mr. Corts has verified the data disclosed in this release and no limitations were imposed on his verification process.
About Lundin Mining
Lundin Mining is a diversified base metals mining company with operations or projects in Argentina, Brazil, Chile, and the United States of America, primarily producing copper, gold and nickel.
Historical Non-GAAP Measure Comparatives
Cash cost, adjusted operating cash flow, free cash flow from operations, adjusted free cash flow from operations, EBITDA and expansionary capital expenditures are non-GAAP financial measures and sustaining capital expenditures is a supplementary financial measure. These performance measures have no standardized meaning within generally accepted accounting principles under IFRS and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. These amounts are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Please refer to the section titled "Non-GAAP and Other Performance Measures" in Lundin Mining's Management's Discussion and Analysis for the year ended December 31, 2024 and for the three months ended March 31, 2025, which are incorporated by reference herein and which are available on SEDAR+ at www.sedarplus.ca.
Adjusted free cash flow from operations is a non-GAAP financial measure defined as cash flow provided by operating activities, excluding general exploration and business development costs and deducting sustaining capital expenditures (as separately defined) and non-cash working capital items. Adjusted free cash flow from operations is indicative of the Company's ability to generate cash from its operations after consideration of required sustaining capital expenditure necessary to maintain existing production levels, and removing the impact of working capital, which can experience volatility from period-to-period.
Cash Cost – Year Ended December 31, 2024
| Operations | Candelaria | Caserones | Chapada | Eagle | | |
| ($thousands, unless otherwise noted) | (Cu) | (Cu) | (Cu) | (Ni) | | Total continuing
operations |
| Sales volumes (Contained metal): | | | | | | |
| Tonnes | 158,017 | 113,867 | 39,615 | 5,662 | | |
| Pounds (000s) | 348,367 | 251,033 | 87,336 | 12,483 | | |
| Production costs | | | | | | 1,898,627 |
| Less: Royalties and other | | | | | | (84,501) |
| | | | | | | 1,814,126 |
| Deduct: By-product credits | | | | | | (504,431) |
| Add: Treatment and refining | | | | | | 113,565 |
| Cash cost | 603,533 | 629,582 | 137,714 | 52,431 | | 1,423,260 |
| Cash cost per pound ($/lb) | 1.73 | 2.51 | 1.58 | 4.20 | | |
Adjusted Operating Cash Flow – Year Ended December 31, 2024
| ($thousands) | |
| Cash provided by operating activities related to continuing operations | 1,300,848 |
| Changes in non-cash working capital items | (220,880) |
| Adjusted operating cash flow — continuing operations | 1,079,968 |
Free Cash Flow from Operations and Adjusted Free Cash Flow from Operations – Year Ended December 31, 2024
| ($thousands) | | |
| Cash provided by operating activities related to continuing operations | 1,300,848 |
| Sustaining capital expenditures | (549,100) |
| General exploration and business development | 45,352 |
| Free cash flow from operations — continuing operations | 797,100 |
| Deduct: Changes in non-cash working capital items | (220,880) |
| Adjusted free cash flow from operations — continuing operations | 576,220 |
| | | | |
EBITDA – Year Ended December 31, 2024
| ($thousands) | | | |
| Net earnings (loss) — continuing operations | | 153,354 |
| Add back: | | |
| Depreciation, depletion and amortization | | 607,744 |
| Finance costs, net | | 141,455 |
| Income taxes expense | | 229,973 |
| EBITDA — continuing operations | | 1,132,526 |
| | | | | | |
Capital Expenditures – Year Ended December 31, 2024
| ($ thousands) | Sustaining | Expansionary | Capitalized Interest | Total |
| Candelaria | 275,720 | — | — | 275,720 |
| Caserones | 143,965 | — | — | 143,965 |
| Chapada | 107,843 | — | — | 107,843 |
| Eagle | 21,222 | — | — | 21,222 |
| Josemaria | — | 243,566 | 14,641 | 258,207 |
| Other | 350 | — | — | 350 |
| Continuing Operations | 549,100 | 243,556 | 14,641 | 807,307 |
| Capital expenditures are reported on a cash basis, as presented in the consolidated statement of cash flows. Expansionary capital expenditures are non-GAAP measures. See the Management's Discussion and Analysis for the year ended December 31, 2024, for discussion of non-GAAP measures heading "Non-GAAP and Other Performance Measures" which is incorporated by reference herein. |
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