Lundin Mining Announces 2021 Production Guidance Achieved for All Metals; Fourth Quarter and Full Year 2021 Results to be Released February 17, 2022
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NEWS RELEASE
Lundin Mining Announces 2021 Production Guidance Achieved for All Metals;
Fourth Quarter and Full Year 2021 Results to be Released February 17, 2022
Toronto, January 14, 2022 (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, 20 21. The
consolidated financial results for the year ended December 31, 2021 will be published on February 17, 2022.
Highlights
• Most recent 2021 annual production guidance was achieved for all metals. Production of 262,884 t of
copper was above the midpoint of guidance and an increase of 14% over 2020. Zinc p roduction of
143,797 t was above the midpoint of guidance and an increase over the prior year. Gold production of
167,000 oz exceeded annual guidance.
• Candelaria copper production of 151,719 t achieved guidance and gold production of 91,000 oz exceeded
guidance. Fourth quarter operations were particularly strong, producing 45,573 t of copper and 26,000
oz of gold, the most since the third quarter of 2017. With focus on operational practices, the positive trend
of improvement in grade discrepancy continued progressively each month in the fourth quarter and
averaged approximately 4%.
• Chapada copper production of 52,019 t exceeded guidance and gold production of 76,000 oz achieved
the top end of annual guidance. The state of Goiás and regions around Chapada have experienced greater
than typical precipitation during the rainy season in 2022. Chapada is managing the rainfall well and
continues to operate safely.
• Eagle achieved strong and consistent operating performance again in 2021. Nickel production of 18,353 t
and copper production of 18,419 t both achieved annual guidance.
• Neves-Corvo copper production of 37,941 t achieved the top end of annual guidance and zinc production
of 66,031 t was within 1kt of g uidance. Fourth quarter operations were the s trongest of the year.
Construction of the Zinc Expansion Project (ZEP), to double current zinc production capacity and improve
per unit operating cost, was substantially completed at the end of 2021 with the commencement of
commissioning of the mine materials handling system and the expanded zinc processing plant.
• Zinkgruvan production of 77,766 t of zinc exceeded annual production guidance.
• Continuing the trend of annual improvement, Lundin Mining achieved a new best-ever Total Recordable
Injury Frequency (TRIF) rate in 2021 with a rate of 0.54 per 200,000 person hours worked. This excellent
safety result was realized during a year that saw an increase in our operational activities, particularly
project related activities at the Neves -Corvo ZEP, and during a period of continuing stressors and
distractions stemming from the ongoing COVID-19 pandemic.
Summary of 2021 Production
Q4 2021
Production
Full Year 2021
Production
2021 Production
Guidance1
Copper (t)
Candelaria (100% basis) 45,573 151,719 150,000 - 155,000
Chapada 14,870 52,019 48,000 - 50,000
Eagle 3,636 18,419 18,000 - 20,000
Neves-Corvo 12,100 37,941 36,000 - 38,000
Zinkgruvan 817 2,786 3,000 - 4,000
Total Copper 76,996 262,884 255,000 - 267,000
Zinc (t)
Neves-Corvo 18,750 66,031 67,000 - 70,000
Zinkgruvan 18,080 77,766 73,000 - 76,000
Total Zinc 36,830 143,797 140,000 - 146,000
Gold (oz)
Candelaria (100% basis) 26,000 91,000 85,000 - 90,000
Chapada 20,000 76,000 73,000 - 76,000
Total Gold 46,000 167,000 158,000 - 166,000
Nickel (t)
Eagle 4,101 18,353 18,000 - 20,000
Total Nickel 4,101 18,353 18,000 - 20,000
Fourth Quarter and Full Year 2021 Results Date
Results for the fourth quarter and full year ended December 31, 20 21 will be published on Thursday
February 17, 2022.
The Company will hold a telephone conference call and webcast at 08:00 ET, 14:00 CET on Friday February 18, 2022.
Conference call details are provided below. Please call in 10 minutes before the conference starts.
Call-in number for the conference call (North America): +1 647 788 4922
Call-in number for the conference call (North America Toll Free): +1 877 223 4471
Call-in number for the conference call (Sweden): 02 00 123 522
To view the live webcast presentation, please log on using this direct link:
https://onlinexperiences.com/Launch/QReg/ShowUUID=5FC47C1B-ED4D-4F01-B238-3CEBD68F4298.
The presentation slideshow will also be available in PDF format on the Lundin Mining website
www.lundinmining.com before the conference call.
A replay of the telephone conference will be available after the completion of the call until March 18, 2022.
1 Guidance as most recently disclosed in the Company’s Management Discussion and Analysis for the three and nine months ended September 30, 2021.
Call-in numbers for the replay are (North America): +1 800 585 8367 or +1 416 621 4642
The passcode for the replay is: 8270928
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 Brazil, Chile, Portugal,
Sweden and the United States of America, primarily producing copper, zinc, gold and nickel.
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 14, 2022 at 02:00 Eastern Time.
For further information, please contact:
Mark Turner, Vice President, Business Valuations and Investor Relations: +1 416 342 5565
Irina Kuznetsova, Manager, Investor Relations: +1 416 342 5583
Robert Eriksson, Investor Relations Sweden: +46 8 440 54 50
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 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, 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 M anagement 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; and the
Company’s integration of acquisitions and any anticipated benefit s thereof. Words such as “believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “goal”, “aim”,
“intend”, “continue”, “budget”, “estimate”, “may”, “will”, “can”, “could”, “should”, “schedule” and similar expressions ident ify 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 sufficien t labor; assumed and future price of copper, nickel, zinc, gold and other metals;
anticipated costs; ability to achieve goals; the prompt and effective integration of acquisitions; 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, these
statements are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known an d unknown factors could cause actual
results to differ 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: risks inherent in mining including but not limited to risks to the environment, industrial accidents, catastrophic equipment failures,
unusual or unexpected geological formations or unstable ground conditions, and natural phenomena such as earthquakes, floodin g or unusually severe weather;
uninsurable risks; global financial conditions and inflation; changes in the Company’s share price, and volatility in the equity markets in general; volatility and fluctuations
in metal and commodity prices; the threat associated with outbreaks of viruses and infectious diseases, including the COVID-19 virus; changing taxation regimes; reliance
on a single asset; delays or the inability to obtain, retain or comply with permits; risks related to negative publicity with respect to the Company or the mining industry in
general; health and s afety risks; exploration, development or mining results not being consistent with the Company’s expectations; unavailable or inaccessible
infrastructure and risks related to ageing infrastructure; 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 characteristics; risks associated with the estimation of Mineral Resources and Mineral Reserves and
the geology, grade and continuity of mineral deposits including but not limited to models relating thereto; ore processing efficiency; community and stakeholder opposition;
information technology and cybersecurity risks; potential for the allegation of fraud and corruption involving the Com pany, its customers, suppliers or employees, or the
allegation of improper or discriminatory employment practices, or human rights violations; regulatory investigations, enforce ment, sanctions and/or related or other
litigation; uncertain political and economic environments, including in Brazil and Chile; risks associated with the structural stability of waste rock dumps or tailings storage
facilities; estimates of future production and operations; estimates of operating, cash and all -in sustaining cost est imates; civil disruption in Chile; the potential for and
effects of labor disputes or other unanticipated difficulties with or shortages of labor or interruptions in production; risk s related to the environmental regulation and
environmental impact of the Company’s operations and products and management thereof; exchange rate fluctuations; reliance on third parties and consultan ts in
foreign jurisdictions; climate change; risks relating to attracting and retaining of highly skilled employees; compliance wit h environmental, health and safety laws;
counterparty and credit risks and customer concentration; litigation; risks inherent in and/or associated with operating in f oreign countries and emerging markets; risks
related to mine closure activities and closed and historical sites; changes in laws, regulations or policies including but not limited to those related to mining regimes,
permitting and approvals, environmental and tailings management, labor, trade relations, and transportation; internal control s; ch allenges or defects in title; the
estimation of asset carrying values; historical environmental liabilities and ongoing reclamation obligations; the price and availability of key operating supplies or services;
competition; indebtedness; compliance with fo reign laws; existence of significant shareholders; liquidity risks and limited financial resources; funding requirements and
availability of financing; enforcing legal rights in foreign jurisdictions; dilution; risks relating to dividends; risks associated with acquisitions and related integration efforts,
including the ability to achieve anticipated benefits, unanticipated difficulties or expenditures relating to integration and diversion of management time on integration;
activist shareholders and proxy solicitation matters; and other risks and uncertainties, including but not limited to those described in the “Risk and Uncerta inties” section
of the Annual Information Form and the “Managing Risks” section of the Company’s MD&A for the year ended December 3 1, 2020, which are available on SEDAR at
www.sedar.com under the Company’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 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 underlyi ng assumptions prove incorrect, actual
results may vary materially from those described in forw ard-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 obli gation 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.