Lundin Mining Announces 2017 Production Results and Fourth Quarter 2017 Results Date
Lundin Mining Announces 2017 Production Results and Fourth Quarter 2017
Results Date
TORONTO, Jan. 16, 2018 -- (TSX:LUN) (OMX:LUMI) Lundin Mining Corporation (“Lundin Mining” or the “Company”)
announces production results for the three and twelve months ended December 31, 2017, and provides an update on
operations and capital projects. The financial results for the year and quarter ended December 31, 2017 will be published on
February 15, 2018.
Highlights:
• Annual production guidance was achieved for all metals.
• Candelaria met full year copper production guidance, and first tailings have been deposited in the new Los Diques
tailings facility.
• Eagle continued its outstanding performance with records achieved on metal recoveries and concentrate quality in
2017.
• Zinkgruvan achieved its highest quarterly zinc production of the past seven quarters on record quarterly throughput
following the mid-year completion of the 1350 expansion.
• Neves-Corvo achieved guidance despite the previously announced strike action.
• Operations safety performance in 2017 remained excellent with a Total Recordable Injury Frequency (“TRIF”) rate of
0.60. This is consistent with the strong performance achieved in 2016, and the Company’s best ever result.
• Year-end net cash balance was approximately $1.1 billion. Year-end cash and cash equivalents stood at approximately
$1.6 billion following the fourth quarter early redemption of $550 million principal amount of 7.50% Senior Secured
Notes.
Mr. Paul Conibear, President and CEO commented: “We ended 2017 with solid metal production meeting guidance and
an excellent balance sheet. We are well positioned to take advantage of stronger metal prices in the years ahead, with low-
risk, high-return projects and significant exploration programs advancing at all four of our mines.
The significant reinvestment in Candelaria's open pit and underground mine fleet, and mill optimization is ramping up and we
expect to see operating benefits in stages through the course of this year and next. All projects are progressing including
commissioning the of the Los Diques tailings storage facility, which received first tailings earlier this month, ahead of
schedule.
We remain focused on value creation through disciplined investment in our existing assets and potential external acquisition
initiatives.”
Summary of 2017 Production
(contained tonnes) Q4 2017 Production Results Full Year 2017 Production Results 2017 Production Guidance 1
Copper Candelaria (80%) 34,141 147,086 147,000 - 151,000
Eagle 4,130 21,302 19,000 - 22,000
Neves-Corvo 7,385 33,624 32,000 - 35,000
Zinkgruvan - 977 1,000
Total attributable 45,656 202,989 199,000 – 209,000
Zinc Neves-Corvo 15,835 71,356 70,000 - 73,000
Zinkgruvan 21,497 77,963 77,000 - 80,000
Total 37,332 149,319 147,000 - 153,000
Nickel Eagle 4,299 22,081 20,000 - 23,000
Total 4,299 22,081 20,000 - 23,000
Operations and Capital Projects Commentary
• Safety performance: remained excellent with a Company TRIF rate of 0.60 measured per 200,000 person hours
worked. This is consistent with the strong performance achieved in 2016 while exposure hours increased by 19% with
the increased capital project activities in 2017. This marks the fifth straight year in which the Company’s overall safety
performance under multiple performance factors has improved compared to the prior year.
• Candelaria: Copper production guidance was met for the year. Average head grades in the fourth quarter were
negatively impacted as a greater portion of stockpiled ore was processed than originally planned subsequent to the
previously announced localized slide on the east wall of the open pit. Waste stripping is progressing in line with the
revised mine plan, including above the slide area, with Candelaria and contractor equipment targeting movement of over
100,000 tpd with additional equipment arriving on site in January.
Commissioning of the Los Diques tailings storage facility is underway with the first placement of tails on January
8, 2018, several months ahead of schedule. Construction of Phases 1, 2 and 3 continue with excellent progress
in acceleration of schedule to benefit with cost synergies from the mine.
Significant equipment orders were placed in the fourth quarter as part of the new mine fleet investment, and
underground mine development and internalization initiatives. These investments will enable accelerated waste
stripping, improved open pit productivity and support internalization of underground load-haul operations in 2018
and thereafter to achieve overall lower costs of production.
Engineering and final negotiations on long lead-time equipment have begun for the mill optimization investments.
These low-risk initiatives are expected to increase metal production, reduce maintenance costs and improve
safety, primarily through upgrades of the primary crusher, cyclones, ball mills, pebble crushing and floatation
circuits.
As anticipated, a Resolución de Calificación Ambiental (RCA) environmental permit for the underground
Alcaparossa mine has been received allowing for continuation of operations through to at least 2022.
• Eagle: Production of both nickel and copper met expectations for the fourth quarter and achieved full year guidance on
continued robust performance across the operation. Eagle East ramp development is progressing on plan having
received mining permits in the fourth quarter 2017. The mill permit amendment for additional tailings at our Humboldt
plant continues to progress and is expected by mid-2018. Exploration drilling continued throughout 2017,
systematically testing the Eagle East conduit and deep peridotite and gabbro targets and is expected to continue
throughout 2018.
• Neves-Corvo: Full year copper and zinc production met guidance. Production of both metals were negatively impacted
by labour action during the fourth quarter. Zinc recovery rates continued to demonstrate improvement. Commissioning of
the water treatment plant is underway and is expected to improve recirculated water quality further aiding metal
recoveries in the plants.
The Zinc Expansion Project (ZEP), which targets to double current zinc production levels, is progressing on
track to commence production in the second half of 2019. Underground ramp development, the project critical
path, began in May 2017 and has advanced approximately 2 km. Process plant and surface infrastructure
construction is expected to commence in Q1. The project engineering and construction permit (RECAPE) which
is a prerequisite to commencement of surface construction was received as expected on January 15, 2018.
The Company has not been given notice of any planned strikes organized by the Mining Industry Workers’ Union
(STIM), though the labour situation at Neves-Corvo has not yet been resolved. There remains a risk to production
targets and the ZEP project schedule due to the possibility of future labour action. The Company is in regular,
constructive dialogue with the Union and our employees and has advised stakeholders that ongoing labour action
may result in postponement of the exploration and zinc expansion investments in progress. The Company is
focussed on ensuring the long-term competitiveness of the operation and protecting our investments.
• Zinkgruvan: Full year zinc production met guidance and benefited from a particularly strong fourth quarter. The
operation achieved its highest quarterly zinc production in the past seven quarters on record throughput following the
mid-year completion of the 1350 mill expansion project. Record total throughput of 1,263,000 tonnes processed was
realized in the year.
Fourth Quarter 2017 Results Date
The report for the fourth quarter period ended December 31, 2017 will be published on Thursday February 15, 2018.
The Company will hold a telephone conference call and webcast at 08:00am ET, 14:00 CET on Friday, February 16, 2018.
Conference call details are provided below:
Please call in 10 minutes before the conference starts and stay on the line (an operator will be available to assist
you).
Call-in number for the conference call (North America): +1 617 826 1698
Call-in number for the conference call (North America Toll Free): +1 877 648 7976
Call-in number for the conference call (Sweden): +46 (0) 8 5661 9361
To view the live webcast presentation, please log on using this direct link:
https://www.webcaster4.com/Webcast/Page/1266/24235
The presentation slideshow will also be available in PDF format for download from the Lundin Mining website
http://www.lundinmining.com before the conference call.
A replay of the telephone conference will be available after the completion of the conference call until February 23, 2018.
Replay numbers:
North America: 1 855 859 2056 or +1 404 537 3406
The passcode for the replay is: 1198349
A replay of the webcast will be available by clicking on the direct link above.
About Lundin Mining
Lundin Mining is a diversified Canadian base metals mining company with operations in Chile, the United States of America,
Portugal, and Sweden, primarily producing copper, nickel and zinc. In addition, Lundin Mining holds an indirect 24% equity
stake in the Freeport Cobalt Oy business, which includes a cobalt refinery located in Kokkola, Finland.
This is information that Lundin Mining Corporation is obliged to make public pursuant to the EU Market Abuse Regulation. The
information was submitted for publication, through the agency of the contact persons set out below on January 16, 2018 at
6:15 p.m. Eastern Time.
For further information, please contact:
Mark Turner, Director, Business Valuations and Investor Relations: +1-416-342-5565
Sonia Tercas, Senior Associate, Investor Relations: +1-416-342-5583
Robert Eriksson, Investor Relations Sweden: +46 8 545 015 50
Cautionary Statement in Forward-Looking Information
Certain of the statements made and information contained herein or incorporated by reference is “forward-looking information”
within the meaning of applicable Canadian securities laws. All statements other than statements of historical facts in this
news release constitute forward-looking information based on current expectations, estimates, forecasts and projections as
well as beliefs and assumptions made by the Company’s management. Such forward-looking statements include but are not
limited to those regarding Company initiatives; the Zinc Expansion Project at Neves-Corvo, the Eagle East project, and the Los
Diques tailings facility project and waste stripping at Candelaria; exploration; mine plans. Words such “anticipate”,
“assumption”, “enable”, “estimate, “expansion”, “expect”, “exploration”, “focused”, “forecast”, “foreseeable”, “forward”, “future”,
“guidance”, “in line”, “initiative”, “on track”, “optimization”, “plan”, “positioned”, “potential”, “project”, “risk”, “schedule”, or
“targeting”, or variations of or similar such terms, or statements that certain actions, events or results could, may, might or will
be taken or will occur or be achieved, or variations of these terms or similar terminology are intended to identify such forward-
looking information. These estimates, expectations and other forward-looking statements are based on a number of
assumptions and are subject to a variety of risks and uncertainties which could cause actual events or results to differ
materially from those reflected in the forward-looking statements. Such risks and uncertainties include, without limitation, risks
and uncertainties inherent in and/or relating to: estimates of future production and operations, cash and all-in sustaining costs;
metal and commodity price fluctuations; foreign currency fluctuations; mining operations including but not limited to
environmental hazards, industrial accidents, ground control problems and flooding; geology including, but not limited to,
unusual or unexpected geological formations, estimation and modelling of grade, tonnes, metallurgy continuity of mineral
deposits, dilution, and Mineral Resources and Mineral Reserves, and actual ore mined and/or metal recoveries varying from
such estimates; mine plans, and life of mine estimates; the possibility that future exploration, development or mining results
will not be consistent with expectations; the potential for and effects of other labour disputes or shortages including but not
limited to any future strikes by workers at Neves Corvo, or other unanticipated difficulties with or interruptions in production;
potential for unexpected costs and expenses including, without limitation, for mine closure and reclamation at current and
historical operations; uncertain political and economic environments; changes in laws or policies, foreign taxation, delays or
the inability to obtain necessary governmental approvals and/or permits; regulatory investigations, enforcement, sanctions
and/or related or other litigation including but not limited to securities class action litigation; and other risks and uncertainties,
including but not limited to those described in the “Managing Risks” section of the Company’s Management’s Discussion and
Analysis for the financial period ending December 31, 2016 and completed financial quarters in 2017, and the “Risks and
Uncertainties” section of our most recently filed Annual Information Form. In addition, forward-looking information is based on
various assumptions including, without limitation, the expectations and beliefs of management; assumed prices of copper,
nickel, zinc and other metals; that the Company can access financing, appropriate equipment and sufficient labour; and that
the political environment where the Company operates will continue to support the development and operation of mining
projects. 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 statements. Accordingly, there can be no
assurance that forward-looking information will prove to be accurate, and readers should not place undue reliance on forward-
looking statements. The Company disclaims any intention or obligation to update or revise forward ‐looking statements or to
explain any material difference between such and subsequent actual events, except as required by applicable law.
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1 Guidance as presented in the Company’s Management Discussion and Analysis for the three and nine months ended
September 30, 2017.