Lundin Mining Announces 2018 Production Results and Fourth Quarter and Full Year 2018 Results Date
NEWS RELEASE
Lundin Mining Announces 2018 Production Results and Fourth Quarter and
Full Year 2018 Results Date
Toronto, January 15, 2019 (TSX: LUN; Nasdaq Stockholm: LUMI) Lundin Mining Corporation (“Lundin
Mining” or the “Company”) announces production results for the three and twelve months ended
December 31, 2018 and provides an update on operations and capital projects. The financial results for
the quarter and year ended December 31, 2018 will be published on February 14, 2019.
Highlights:
• Annual production guidance was achieved or exceeded for all metals at all operations.
• Safety performance in 2018 was in line with the C ompany’s five -year health and safe ty
improvement strategy. The 2018 Total Recordable Injury Frequency (TRIF) rate was 0.67.
• Candelaria achieved its full year copper production guidance. The low-risk capital projects focused
on delivering the improved life-of-mine production profile continue on schedule and on budget.
• Eagle continued its robust operational performance achieving and exceeding full year copper and
nickel production guidance, respectively. The Eagle East project continues to advance well with
first ore expected in the fourth quarter of 2019.
• Neves-Corvo achieved full year zinc production guidance and exceeded copper production
guidance. The zinc plant set an annual throughput record of 1,125 kt and the copper plant set an
annual throughput record of 2,692 kt.
• Zinkgruvan exceeded annual zinc production guidance. Fourth quarter zinc production was the
best quarter of the year on improved zinc head grades and mill throughput.
• Year-end cash balance was approximately $ 800 million reflecting the fourth quarter investment
spend and early redemption of $429 million principal amount of 7.875% Senior Secured Notes.
Marie Inkster, President and CEO commented: “We finished 2018 with strong fourth quarter operating
performance at each of our mines and excellent progress advancing our growth projects. We are well
positioned to deliver significant copper and zinc production growth in 2019 and the next several years from
our existing portfolio of high-quality mines.
We remain focused on value creation through disciplined investment in our existing assets and potential
external acquisition initiatives. In the fourth quarter, we announced a normal course issuer bid and
significantly reduced our borrowing costs with the early redemption of our Senior Secured Notes. We
maintain financial liquidity and flexibility to act quickly on opportunities with a substantive cash position
and having increased and extended our low-cost revolving credit facility.”
Corporate Office
150 King Street West, Suite 2200
P.O. Box 38
Toronto, ON M5H 1J9
Phone: +1 416 342 5560
Fax: +1 416 348 0303
Summary of 2018 Production
(contained tonnes)
Q4 2018
Production
Results
Full Year 2018
Production
Results
2018 Production
Guidance1
Copper Candelaria (100% basis) 33,011 134,578 133,750 – 136,250
Eagle 3,908 17,974 16,000 – 18,000
Neves-Corvo 11,287 45,692 43,000 – 45,000
Zinkgruvan - 1,386 1,000 – 2,000
Total Copper 48,206 199,630 193,750 – 201,250
Zinc Neves-Corvo 18,465 75,435 73,000 – 76,000
Zinkgruvan 23,559 76,606 74,000 – 76,000
Total Zinc 42,024 152,041 147,000 – 151,000
Nickel Eagle 3,501 17,573 15,000 – 17,000
Total Nickel 3,501 17,573 15,000 – 17,000
Operations and Capital Projects Commentary
• Safety Performance: Overall safety performance was better than target with a year -end Company
TRIF rate of 0.67 recorded against a target of 0.70 per 200,000 person hours worked . This was the
sixth consecutive year that overall safety performance was better than a continually improved target.
This performance was achieved even with an increase in exposure hours by 9.5% over 2017 with major
project activities underway across the company.
• Candelaria: Copper production guidance was achieved for the year. Approximately 60% of the new
open pit mine fleet has been received and placed in service. The remaining equipment is expected to
be delivered mainly in 2019 with some pieces arriving in early 2020.
Ramp-up of the Candelaria underground mines continues with the North Sector achieving a
production rate of approximately 10,200 tonnes per day for the year, representing an 11% increase
in ore production over 2017. Development of the South Sector continues to progress well for first ore
in late 2019. The Candelaria Mill Optimization Project to improve metal recoveries, increase
throughput capacity and reduce maintenance costs is advancing well and was approximately 40%
complete at year end.
• Eagle: Copper and nickel production achieved and exceeded full year guidance , respectively, on
continued excellent operational performance. Fourth quarter nickel and copper production decreased
compared to prior quarters as per planned mine sequencing and resulting in lower nickel and copper
head grades prior to commencing production from Eagle East.
The Eagle East project continues to advance well with first ore expected in the fourth quarter of 2019.
In 2018, the access ramp development to Eagle East from the Eagle Mine advanced approximately
1 Guidance as disclosed in the Company’s Management Discussion and Analysis for the three and nine months ended September 30, 2018.
Candelaria guidance and results were previously disclosed at 80% attributable.
3,400 meters with completion of the dual decline sections and the spiral decline to the orebody now
advancing.
• Neves-Corvo: Full year zinc and copper production achieved and exceeded guidance, respectively.
Fourth quarter production benefited from improving mine productivity and higher mill throughput
demonstrated throughout the year.
The Zinc Expansion Project was approximately 43% construction complete at year end. Underground
development remains on track for completion in early 2020 with ore from this newly developed area
of the mine to contribute to mill feed in the first quarter of 2020.
Surface facilities construction remains on track to be complete d and commence commissioning in
early 2020. Major surface works milestones achieved in 2018 include completion of the SAG mill
foundation as well as structural steel erection for the new flotation building.
• Zinkgruvan: Full year zinc production exceeded guidance. Fourth quarter zinc production was the best
quarter of the year owing to improved zinc ore head grades following focused efforts in planning and
execution to improve dilution and ore loss experienced earlier in the year.
Fourth Quarter and Full Year 2018 Results Date
The report for the fourth quarter and full year ended December 31, 2018 will be published on Thursday
February 14, 2019.
The Company will hold a telephone conference call and webcast at 08:00am ET, 14:00 CET on Friday,
February 15, 2019. 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.investornetwork.com/event/presentation/42071
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 22, 2019.
Replay numbers:
North America: 1 855 859 2056 or +1 404 537 3406
The passcode for the replay is: 3568927
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.
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 January 15, 2019 at 5:30 p.m. Eastern Time.
For further information, please contact:
Mark Turner, Director, Business Valuations and Investor Relations: +1 416 342 5565
Brandon Throop, Manager, 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 oth er 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 the Company’s outlook and guidance on estimated
metal production and production profile, costs, and exploration and capital expenditures; the Zinc Expansion Project
at Neves-Corvo and the Eagle Eas t project ; Mineral Reserves, Mineral Resources, life -of-mine (or mine life); all of
which are estimates (and the parameters, expectations and assumptions underlying, and realization of, such
estimates including, but not limited to metal price assumptions, and permitting and development expectations.
Words such “aim”, “anticipate”, “assumption”, “believe”, “budget”, “commitment”, “estimate, “expansionary”,
“expect”, “exploration”, “flexibility”, “focus”, “forecast”, “foreseeable”, “forward”, “future”, “grow th”, “guidance”,
“initiative”, “on -track”, “outlook”, “plan”, “positioning”, “potential”, “priority”, “profile”, “project”, “ramp -up”,
“risk”, “schedule”, “study”, “target” or “view” , or variations of or similar such terms, or statements that certain
actions, events or results could, may, might or will be taken or occur or be achieved,, or variations of these terms or
similar terminology or statements that certain actions, events or results could , may, might or will be taken or occur
or be achieved 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 su staining 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 estimate s; 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
labour disputes or shortages, or other unanticipated difficulties w ith 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, including but not limited to the
Alcaparrosa underground mine operating license, the Punta Padrones process operating license and the Ojos del
Salado mill tailings line permit at Candelaria which are required by the end of the year; regulatory investigations,
enforcement, sanctions and/or related or other 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, 201 7 and completed financial quarters in 201 8, 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, approp riate 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.