Lundin Mining Pre-Announces Items Impacting the First Quarter 2024 Results
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NEWS RELEASE
Lundin Mining Pre-Announces Items Impacting the First Quarter 2024 Results
Vancouver, April 17, 2024 (TSX : LUN; Nasdaq Stockholm: LUMI) Lundin Mining Corporation (“Lundin
Mining” or the “Company”) is pre -announcing certain items impacting the Company’s quarterly earnings,
adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”)1, adjusted earnings1
and adjusted earnings per share1.
Foreign Exchange and Derivatives
Items of significant impact in the first quarter 2024 are expected to include unaudited foreign exchange and
trading gains on debt and equity investments supporting the capital funding for the Josemaria Project of
approximately $8 million on a pre-tax basis, unaudited realized gains on foreign exchange and diesel derivative
contracts of approximately $4 million on a pre -tax basis and unaudited realized gains on foreign exchange of
approximately $11 million on a pre -tax basis, primarily relating to payments in Chilean pesos during the
quarter.
In the first quarter 2024 the Company is also expected to recognize certain non -cash items that will impact the
Company’s earnings but not adjusted EBITDA, adjusted earnings or adjusted earnings per share. These include
an unaudited non -cash unrealized gain on foreign exchange of approximately $16 million on a pre -tax basis,
primarily due to the weakening of the Chilean peso during the quarter, and an unaudited non -cash unrealized
loss of approximately $53 million on a pre-tax basis related to the mark -to-market valuation of the Company’s
unexpired foreign exchange and diesel derivative contracts. Unexpired foreign exchange derivative contracts
include zero cost collar contracts of $921 million (equivalent to 898 billion Chilean pesos ) entered into during
the first quarter 2024 and expiring in the remainder of 2024 through 2026.
Provisional Pricing Adjustments
Revenue in the first quarter 2024 is expected to be positively impacted by unaudited provisional pricing
adjustments on prior period concentrate sales of approximately $2 million on a pre -tax basis. These
adjustments primarily include upward adjustments in relation to copper and nickel sales, partially offset by
downward adjustments on molybdenum and zinc sales.
The financial results for the three months ended March 31, 2024, will be published on Wednesday, May 1, 2024.
About Lundin Mining
Lundin Mining is a diversified Canadian base metals mining company with operations and projects in Argentina,
Brazil, Chile, Portugal, Sweden and the United States of America, primarily producing copper, zinc, gold and
nickel.
The information was submitted for publication, through the agency of the contact persons set out below on
April 17, 2024 at 14:30 Pacific Time.
For further information, please contact:
Stephen Williams, Vice President, Investor Relations: +1 604 806 3074
Robert Eriksson, Investor Relations Sweden: +46 8 440 54 50
1 These measures are non -GAAP measures. 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 simil ar data presented by
other mining companies. For additional details please refer to the Company’s discussion of non -GAAP and other performance measures in its
Management’s Discussion and Analysis for the year ended December 31, 2023 which is available on SEDAR+ at www.sedarplus.com.
Cautionary Statement on Forward-Looking Information
Certain of the statements made and information contained herein is “forward -looking information” within the meaning of applicable Canadian securities
laws. All statements other than statements of historical facts included in this document constitute forward -looking information, including but not limited
to statements regarding the Company’s plans, prospects and business strategies; the Company’s guidance on the timing and amou nt of future
production and its expectations regarding the results of operations; expected costs; permitting requirements and timelines; t iming and possible
outcome of pending litigation; the results of any Preliminary Economic Assessment, Feasibility Study, or Mineral Resource and Mineral Reserve
estimations, life of mine estimates, and mine and mine closure plans; anticipated market prices of metals, currency exchange rates, and interest rates;
the development and implementation of the Company’s Responsible Mining Management System; the Company’s ability to comply wit h contractual
and permitting or other regulatory requirements; anticipated exploration and development activities at the Company’s projects ; the Company’s
integration of acquisitions and any anticipated benefits thereof; and expectations for other economic, business, and/or compe titive factors. Words such
as “believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “goal”, “aim”, “intend”, “continue”, “budget”, “estima te”, “may”, “will”, “can”, “could”,
“should”, “schedule” and similar expressions identify forward -looking statements.
Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation, the expectatio ns and beliefs of
management, including that the Company can access financing, appropriate equipment and sufficient labour; assumed and future price of copper,
nickel, zinc, gold and other metals; anticipated costs; ability to achieve goals; the prompt and effective integration of acq uisitions; that the political
environment in which the Company operates will continue to support the development and operation of mining projects; and assu mptions related to the
factors set forth below. While these factors and assumptions are considered reasonable by Lundin Mining as at the date of thi s document in light of
management’s experience and perception of current conditions and expected developments, these statements are inherently subje ct to significant
business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to d iffer materially from
those projected in the forward -looking statements and undue reliance should not be placed on such statements and information. Such factors include,
but are not limited to: global financial conditions, market volatility and inflation, including pricing and availability of k ey supplies and services; risks
inherent in mining including but not limited to risks to the environment, industrial accidents, catastrophic equipment failur es, unusual or unexpected
geological formations or unstable ground conditions, and natural phenomena such as earthquakes, flooding or unusually severe weather; uninsurable
risks; volatility and fluctuations in metal and commodity demand and prices; significant reliance on assets in Chile; reputat ion risks related to negative
publicity with respect to the Company or the mining industry in general; delays or the inability to obtain, retain or comply with permits; risks relating to
the development of the Josemaria Project; health and safety laws and regulations; risks associated with climate change; risks relating to indebtedness;
economic, political and social instability and mining regime changes in the Company’s operating jurisdictions, including but not limited to those related
to permitting and approvals, nationalization or expropriation without fair compensation, environmental and tailings managemen t, labour, trade relations,
and transportation; inability to attract and retain highly skilled employees; risks inherent in and/or associated with operat ing in foreign countries and
emerging markets, including with respect to foreign exchange and capital controls; project financing risks, liquidity risks a nd limited financial resources;
health and safety risks; compliance with environmental, unavailable or inaccessible infrastructure, infrastructure failures, and risks related to ageing
infrastructure; changing taxation regimes; the inability to effectively compete in the industry; risks associated with acquis itions and related integration
efforts, including the ability to achieve anticipated benefits, unanticipated difficulties or expenditures relating to integr ation and diversion of
management time on integration; risks related to mine closure activities, reclamation obligations, environmental liabilities and closed and historical
sites; reliance on key personnel and reporting and oversight systems, as well as third parties and consultants in foreign jur isdictions; information
technology and cybersecurity risks; risks associated with the estimation of Mineral Resources and Mineral Reserves and the ge ology, grade and
continuity of mineral deposits including but not limited to models relating thereto; actual ore mined and/or metal recoveries varying from Mineral
Resource and Mineral Reserve estimates, estimates of grade, tonnage, dilution, mine plans and metallurgical and other charact eristics; ore processing
efficiency; community and stakeholder opposition; regulatory investigations, enforcement, sanctions and/or related or other l itigation; financial
projections, including estimates of future expenditures and cash costs, and estimates of future production may not be reliabl e; enforcing legal rights in
foreign jurisdictions; risks associated with the use of derivatives; risks relating to joint ventures and operations; environ mental and regulatory risks
associated with the structural stability of waste rock dumps or tailings storage facilities; exchange rate fluctuations; comp liance with foreign laws;
potential for the allegation of fraud and corruption involving the Company, its customers, suppliers or employees, or the all egation of improper or
discriminatory employment practices, or human rights violations; risks relating to dilution; risks relating to payment of div idends; counterparty and
customer concentration risks; activist shareholders and proxy solicitation matters; estimation of asset carrying values; rela tionships with employees and
contractors, and the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of la bour or interruptions in
production; conflicts of interest; existence of significant shareholders; challenges or defects in title; internal controls; risks relating to minor elements
contained in concentrate products; the threat associated with outbreaks of viruses and infectious diseases; and other risks a nd uncertainties, including
but not limited to those described in the "Managing Risks” section of the Company’s MD&A and the “Risks and Uncertainties” se ction of the Company’s
Annual Information Form for the year ended December 31, 2023, which are available on SEDAR+ at www.sedarplus.com under the Co mpany’s profile.
All of the forward -looking statements made in this document are qualified by these cautionary statements. Although the Company has attempted to
identify important factors that could cause actual results to differ materially from those contained in forward -looking information, there may be other
factors that cause results not to be as anticipated, estimated, forecast or intended and readers are cautioned that the foreg oing 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 sho uld 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.