Lundin Mining Announces Record Production Results for 2024 and Provides 2025 Guidance
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NEWS RELEASE
Lundin Mining Announces Record Production Results for 2024 and Provides
2025 Guidance
Vancouver, BC, January 16, 2025 (TSX: LUN; Nasdaq Stockholm: LUMI) Lundin Mining Corporation (“Lundin
Mining” or the “Company”) is pleased to announce production results for the year ended December 31, 2024 and
provide production guidance for the three -year period of 202 5 through 2027, as well as cash cost, capital and
exploration expenditure guidance for 2025. Unless otherwise stated, all numbers are presented in US dollars.
Highlights
On a consolidated basis the Company achieved guidance on all metals 1 for the year and achieved record
production levels for copper and zinc.
• 2024 Production Results (100% basis):
o Record copper production of 369,067 tonnes (t).
o Record zinc production of 191,704 t.
o Gold production of 158,436 ounces (oz).
o Nickel production at Eagle of 7,486 t.
• 2025 Outlook (100% basis) has been revised to reflect the divestiture of Neves-Corvo and Zinkgruvan:
o Copper production guidance of 303,000 – 330,000 t at a consolidated C1 cash cost of $2.0 5/lb
to $2.30/lb copper2.
o Gold production guidance of 135,000 – 150,000 oz.
o Nickel production guidance of 8,000 – 11,000 t.
o Sustaining capital expenditures of $530 million and expansionary capital expenditures of $205
million3.
o Exploration expenditures are planned to be $40 million primarily for in -mine and near -mine
targets.
Jack Lundin, President and CEO, commented “2024 was a transformative year for the Company . W e
announced three strategic transactions while maintaining operational performance to meet production guidance
on a consolidated basis for copper and gold and within revised guidance for zinc and nickel . The Company was
able to achieve record production for copper and zinc during the year. This is a testament to the great effort and
focus of the entire team at Lundin Mining.
“The first transaction of 2024 was to increase our ownership at Caserones from 51% to 70%. This added
approximately 24,000 tonnes of annualized attributable copper production to the Company.
1 Guidance as most recently disclosed in the Company’s Management’s Discussion and Analysis for the three and nine months ended September 30, 2024.
2 2025 cash costs guidance is based on various assumptions and estimates, including, production volumes, commodity prices (Cu: $4.40/lb, Mo: $17.00/lb, Au:
$2,500/oz: Ag: $30.00/oz) and foreign currency exchange rates (Chilean Peso “CLP” CLP/USD:900, Brazilian Real “BRL” USD/BRL:5.50). Cash cost is a non-GAAP measure -
see the Company’s Management’s Discussion and Analysis for the three and nine months ended September 30, 2024 and the Historical Non-GAAP Measure
Comparatives at the end of this news release.
3 Sustaining capital expenditure is a supplementary financial measure and expansionary capital expenditure is a non-GAAP measure - see the Company’s
Management’s Discussion and Analysis for the three and nine months ended September 30, 2024 and the Historical Non-GAAP Measure Comparatives at the end of
this news release.
“Our two biggest assets, Candelaria and Caserones, both performed well in the year, Candelaria had one of its
best second half performances in its 30-year history, producing just under 100,000 tonnes in H2 2024. Caserones
continues to add to our growth story and produced 124,761 tonnes of copper in the year.
“Year over year, zinc production increased and set a record for the Company at 191,704 tonnes. In December, we
announced the opportune sale of Neves -Corvo and Zinkgruvan to Boliden AB (“Boliden”) for total consideration
of up to $1.52 billion. This transaction is expected to close mid -year, which will further increase our financial
flexibility and shift our revenue mix to be more heavily weighted towards copper.
“Finally, we announced the joint acquisition of Filo Corp. (“Filo”) with BHP and the formation of Vicuña Corp.
(Vicuña) to jointly develop the Filo del Sol (“FDS”) project and Josemaria project . It is with great pleasure to
announce already that this transaction closed on January 15th, 2025.
“Looking ahead, we look forward to closing on the sale of the European assets in 2025 and will continue to focus
on improving our operational performance at all our sites.”
Summary of 2024 Production
Q4 2024
Production
Full Year
2024
Production
2024 Original
Guidance4
2024 Revised
Guidance5
Copper (t)
Candelaria (100% basis) 48,772 162,487 160,000 - 170,000 165,000 - 173,000
Caserones (100% basis) 31,737 124,761 120,000 - 130,000 121,000 - 125,000
Chapada 12,323 43,261 43,000 - 48,000 43,000 - 48,000
Eagle 1,262 6,366 9,000 - 12,000 6,000 - 8,000
Neves-Corvo 7,139 28,228 30,000 - 35,000 27,000 - 30,000
Zinkgruvan 258 3,964 4,000 - 5,000 4,000 - 5,000
Total Copper 101,491 369,067 366,000 - 400,000 366,000 - 389,000
Zinc (t)
Neves-Corvo 27,879 109,571 120,000 - 130,000 111,000 - 116,000
Zinkgruvan 24,067 82,133 75,000 - 85,000 79,000 - 83,000
Total Zinc 51,946 191,704 195,000 - 215,000 190,000 - 199,000
Gold (oz)
Candelaria (100% basis) 27,842 93,021 100,000 - 110,000 92,000 - 102,000
Chapada 18,614 65,415 55,000 - 60,000 63,000 - 68,000
Total Gold 46,456 158,436 155,000 - 170,000 155,000 - 170,000
Nickel (t)
Eagle 1,617 7,486 10,000 - 13,000 7,000 - 9,000
Total Nickel 1,617 7,486 10,000 - 13,000 7,000 - 9,000
Molybdenum (t)
Caserones (100% basis) 912 3,183 2,500 - 3,000 2,800 - 3,300
912 3,183 2,500 - 3,000 2,800 - 3,300
4 Guidance as announced by news release "Lundin Mining Announces 2023 Production Results & Provides 2024 Guidance" dated January 14, 2024.
5 Guidance as most recently disclosed in the Company’s Management’s Discussion and Analysis for the three and nine months ended September 30, 2024.
Three-Year Production Outlook 2025 - 2027
• Copper production is forecast to be 303,000 - 330,000 t on a consolidated basis in 2025. Higher consolidated
copper production is forecast for 202 6, mainly due to mine sequencing and the copper grade profile at
Candelaria and Caserones.
• Compared to last year’s three-year outlook, the Company’s European assets have been removed and mine
plan updates and optimization efforts at the Company’s Chilean operations have resulted in changes to the
copper production guidance. At Candelaria, a reduction in overall mine movement from the open pit and
underground has led to changes in head grades for 2025 and at Caserones a more conservative estimate
on mill throughput has been forecast to be consistent with throughput rates in 2024.
• Consolidated g old production is forecast to be 1 35,000 - 150,000 oz in 2025. A slight increase in gold
production in 2026 is mainly due to mine sequencing and the planned gold grade profile at Candelaria.
• Nickel production is forecast to be 8,000 - 11,000 t in 2025 and then taper over the three-year period. The
production profile is driven by the planned mine sequencing and the nickel grade. Deferred tonnes and
grades from last year have improved the production profile in 2025.
Production Outlook6
2025 2026 2027
Copper (t)
Candelaria (100% basis) 140,000 - 150,000 145,000 - 155,000 150,000 - 160,000
Caserones (100% basis) 115,000 - 125,000 130,000 - 140,000 105,000 - 115,000
Chapada 40,000 - 45,000 40,000 - 45,000 40,000 - 45,000
Eagle 8,000 - 10,000 5,000 - 8,000 5,000 - 8,000
Total Copper 303,000 - 330,000 320,000 - 348,000 300,000 - 328,000
Gold (oz)
Candelaria (100% basis) 7 78,000 - 88,000 87,000 - 97,000 85,000 - 95,000
Chapada 57,000 - 62,000 57,000 - 62,000 47,000 - 52,000
Total Gold 135,000 - 150,000 144,000 - 159,000 132,000 - 147,000
Nickel (t)
Eagle 8,000 - 11,000 6,000 - 9,000 4,000 - 7,000
Total Nickel 8,000 - 11,000 6,000 - 9,000 4,000 - 7,000
• Candelaria: Annual fluctuations in copper and gold production forecasts for the next three years are
primarily due to sequencing of the Candelaria underground and open pit. An updated optimized mine plan
has led to a reduction in mine movement of 26% which has impacted copper production guidance by 6% in
2025 compared to the mid-point of last year’s outlook. In 2026 grades are expected to increase from ore in
Phase 12.
Over the three-year guidance period, total mill throughput is forecast to range between 27 - 29 million
tonnes per annum (“Mtpa”). Based on the planned mill feed blend and the ore hardness, annual throughput
is expected to be approximately 29 Mtpa in 2025.
Candelaria’s 2025 copper and gold production is forecasted to be modestly weighted to the second half of
the year, primarily owing to mine sequencing and the resultant grade profiles.
6 Production guidance is based on certain estimates and assumptions, including but not limited to Mineral Resources and Mineral Reserves, geological formations,
grade and continuity of deposits and metallurgical characteristics.
7 68% of Candelaria’s total gold and silver production are subject to a streaming agreement.
• Caserones: During 2025, ore to the concentrator will come from Phases 5, 6 and 7 and is expected to have
a similar grade profile compared to 2024. Annual ore throughput over the guidance period is projected to
be approximately 32 – 34 Mtpa and cathode production will range between 14 – 18 ktpa. Copper production
is expected to be evenly weighted over the year with a slightly stronger fourth quarter.
• Chapada: Production guidance is in line with previous estimates and based on the current throughput
capacity of approximately 23.5 Mtpa over the three -year period with annual fluctuations primarily due to
mine sequencing and the forecasted copper and gold grade profiles.
Ore mining is planned from the North, Southwest, South and Northeast pits through 2025 and 2026,
followed by South, Southwest and Baru pits in 2027.
• Eagle: Ramp rehabilitation has been completed at Eagle and throughput is expected to be similar to 2024
levels prior to the fall of ground. Metal production is modestly weighted to the first half of the year driven
by the higher-grade zone on the lowe r levels of Eagle East. Development of the Upper Eagle East zone
referred to as the ‘Keel Zone’ will progress to enable access to those zones with production ramp up in
2025/26.
• European Assets: Lundin Mining announced the sale of Neves -Corvo and Zinkgruvan to Boliden for total
consideration of up to $1.52 billion as per the press release dated December 9, 2024. The transaction is
expected to close in mid-2025, as a result the Company will not provide guidance on the assets.8
2025 Cash Cost9 Guidance
2025 cash cost guidance is based on various assumptions and estimates, including, production volumes as per
2025 guidance, commodity prices (Cu: $4.40/lb, Mo: $17.00/lb, Au: $2,500/oz: Ag: $30.00/oz) and foreign currency
exchange rates (CLP/USD:900, USD/BRL:5.50).
• 2025 cash cost guidance is estimated to be:
8 Neves-Corvo is expected to be slightly above the cash cost guidance range for 2024 from lower by-product credits. Zinkgruvan is expected to be inline with cash cost
guidance for 2024. Capital expenditures for 2024 for both assets are expected to be inline with guidance.
9 This is a non-GAAP measure. For equivalent historical non-GAAP financial 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, 2023 and nine months ended September 30, 2024.
10 2025 cash costs are based on various assumptions and estimates, including, but not limited to: production volumes, commodity prices (2025 - Cu: $4.40/lb, Mo:
$17.00/lb, Au: $2,500/oz: Ag: $30.00/oz) foreign currency exchange rates (2025 - CLP/USD:900, USD/BRL:5.50) and operating costs.
11 68% of Candelaria’s total gold and silver production are subject to a streaming agreement and as such cash costs are calculated based on receipt of $433/oz and
$4.32/oz, respectively, on gold and silver sales in the year.
12 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.
Cash Cost 202510
Copper
Candelaria11 $1.80/lb - $2.00/lb
Caserones $2.40lb - $2.60/lb
Chapada12 $1.80/lb - $2.00/lb
Consolidated C1 Cash Cost $2.05/lb - $2.30/lb
Nickel
Eagle $3.05/lb - $3.25/lb
• Candelaria: Cash cost is forecast to be $1.80/lb – $2.00/lb of copper, after by-product credits. The cash cost
reflects lower metal production that is partially offset by reduced treatment and refining costs and higher
by-product credits. By-product credits have been adjusted for the terms of the gold streaming agreement.
• Caserones: Cash cost is forecast to be $2.40/lb – $2.60/lb of copper, after by -product credits , reflecting
lower treatment and refining costs along with expected savings from the Caserones full potential program.
• Chapada: Cash cost is forecast to be $1.80/lb – $2.00/lb of copper in 2025, after by-product credits and
captures lower treatment and refining charges . Effects of copper stream agreements are reflected in the
realized copper revenue.
• Eagle: Cash cost is forecast to be $3.05/lb – $3.25/lb of nickel in 2025, after by-product credits. Cash costs
reflect a full year at a run rate of 2,000 tpd for 2025 after a period of reduced throughput in the second half
of 2024 from ramp rehabilitation work.
2025 Capital Expenditure Guidance
• Capital expenditures are forecast to total $735 million of which $530 million relates to sustaining capital and
$205 million relates to expansionary capital expenditures13, including 50% of the expenditure relating to the
Vicuña Joint Arrangement. The majority of sustaining capital expenditures are for open pit waste stripping,
underground mine development, tailings storage facility (“TSF”) and water management works.
Capital Expenditures ($ millions) 202513,14
Sustaining Capital
Candelaria (100% basis) $205
Caserones (100% basis) $215
Chapada $85
Eagle $25
Total Sustaining Capital $530
Candelaria Expansionary Capital $50
Vicuña Joint Arrangement $155
Total Capital Expenditures $735
• Candelaria ($205 million): Capitalized waste stripping and underground mine development is forecast to
be $59 million and $37 million respectively and underground mine projects, including ramp works, of
approximately $10 million. As mentioned previously, the optimized mine plan at Candelaria reduced total
mine movement which led to a reduction in capitalized waste stripping . Compared to last year , sustaining
capital expenditures at Candelaria have been reduce d by $70 million. Capital expenditure for mobile and
mine equipment is forecast to be $20 million, and $32 million is estimated for the continued building of the
Los Diques TSF. Other sustaining capital requirements are estimated at $45 million.
13 Expansionary capital expenditure is a non-GAAP measure and sustaining capital expenditure is a supplementary financial measure. For 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, 2023 and nine months ended September 30, 2024 for discussion of non-GAAP measures.
14 Capital expenditures are based on various assumptions and estimates, including, but not limited to foreign currency exchange rates (2025 - CLP/USD:900,
USD/BRL:5.50).
Expansionary capital is estimated to be $50M , which includes approximately $25 million for a powerline
move and upgrade and other 2040 EIA initiatives.
• Caserones ($215 million) : This includes approximately $ 70 million for capitalized waste stripping, $ 75
million for TSF and water management systems, and $ 25 million for mine and mobile equipment. Other
sustaining capital requirements are estimated at $45 million.
• Chapada ($85 million): Capitalized waste stripping is estimated at approximately $30 million, $23 million
for TSF and water management systems, and $14 million for mine and mobile equipment.
• Eagle ($25 million): Approximately $14 million is for mine development and growth projects which includes
the development of the Upper Keel zone, and $9 million for mobile and mine equipment.
• Vicuña Joint Arrangement ($155 million): Capital expenditures for the Joint Arrangement are forecast to
total $155 million on a 50% basis for 2025. The workplan will focus on FDS drilling, FDS mineral resource
estimation, Josemaria mineral resource estimation update, mine planning, metallurgy, hydrology wells and
studies, commencement of access road construction, and exploration at the Cumbre Verde ta rget. In
parallel, engineering studies and trade off analysis will be completed in preparation for future pe rmitting
and a technical report outlining an integrated project.
Vicuña is targeting a new mineral resource estimate at F DS and an update to the resource estimate at
Josemaria within the first half of 2025. These resource estimates will form the basis of an integrated technical
report which will outline the development plan for the phased construction of the district.
2025 Exploration Investment Guidance
Exploration expenditures are planned to be $40 million in 2025 primarily for in -mine and near-mine targets at
our operations. The largest portion of the planned expenditure will be at Caserones where drilling (18,000 meters
(m)) and geophysical programs are planned. Significant drilling programs are also planned at Candelaria (18,000
m), and Chapada (20,000 m) with the goal to grow resources. The drill program at Caserones will focus on deeper
in-pit drilling to better define higher grade breccia zones and exploration drilling to continue testing the sulphide
mineral potential below the Angelica oxide deposit. At Candelaria drilling is designed to continue expanding the
underground resou rces, while also growing the shallow La Española Deposit and neighboring La Portuguesa
target area. At Chapada additional drilling at Sauva will continue to further define higher grade resource s that
will be incorporated into an updated resource estimate.
Vicuña is currently undertaking a drill program at FDS and Cumbre Verde that will continue throughout the year.
The drill program will focus on resource growth with multiple step -out targets in all directions from zones of
known mineralization, including both the Bonita and Aurora Zones along with infill drilling to support an initial
mineral resource estimate mid-year. Drilling at Cumbre Verde will follow up on the initial results from last year
and target the same mineralized system and structures discovered to the north of the project.
About Lundin Mining
Lundin Mining is a diversified Canadian base metals mining company with operations or projects in Argentina,
Brazil, Chile, and the United States of America, primarily producing copper , gold and nickel. In December 2024
the Company announced the sale of their European assets to Boliden, the transaction is expected to close in mid-
2025 subject to customary conditions and regulatory approvals.
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 16, 2025 at 17:30 Eastern 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
Other Information
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 by Patrick Merrin, P.Eng., Executive Vice President, Technical Se rvices, a “Qualified Person” under NI 43-101. Mr. Merrin has verified the
data disclosed in this release and no limitations were imposed on his verification process.
Historical Non-GAAP Measure Comparatives
Cash Cost and Sustaining and Expansionary Capital Expenditures are non-GAAP financial measures and are not
standardized financial measures under generally accepted accounting principles under IFRS and, therefore,
amounts presented may not be comparable to similar data presented by other mining companies.
Cash Cost – Year Ended December 31, 2023
Operations Candelaria Caserones Chapada Eagle Neves-
Corvo
Zinkgruvan
($000s, unless otherwise
noted)
(Cu) (Cu) (Cu) (Ni) (Cu) (Zn) Total
Sales volumes (Contained
metal):
Tonnes 144,473 66,075 43,761 13,339 32,054 65,344
Pounds (000s) 318,508 145,670 96,476 29,407 70,667 144,059
Production costs
2,086,108
Less: Royalties and other
(66,237)
Inventory fair value
adjustment
(39,945)
1,979,926
Deduct: By-product credits
(699,915)
Add: Treatment and refining
183,328
Cash cost 660,160 290,553 219,278 63,457 167,424 62,467 1,463,339
Cash cost per pound ($/lb) 2.07 1.99 2.27 2.16 2.37 0.43
Capital Expenditures – Year Ended December 31, 2023
($ thousands) Sustaining Expansionary
Capitalized
Interest Total
Candelaria 308,112 — — 380,112
Casrones 83,880 — — 83,880
Chapada 72,291 — — 72,291
Eagle 22,201 — — 22,201
Josemaria — 275,913 9,980 285,893
Neves-Corvo 102,621 — — 102,621
Zinkgruvan 53,358 — — 53,358
Other 12,761 — — 12,761
727,224 275,913 9,980 1,013,117
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, 2023, for discussion of non-GAAP measures heading “Non-GAAP and Other Performance
Measures” which is incorporated by reference herein.
Cash Cost – Nine Months Ended September 30, 2024
Operations Candelaria Caserones Chapada Eagle Neves-
Corvo
Zinkgruvan
($000s, unless otherwise
noted)
(Cu) (Cu) (Cu) (Ni) (Cu) (Zn) Total
Sales volumes (Contained
metal):
Tonnes 108,965 87,117 29,415 4,574 21,491 49,459
Pounds (000s) 240,226 192,060 64,849 10,084 47,379 109,038
Production costs
1,754,677
Less: Royalties and other
(61,427)
1,693,250
Deduct: By-product credits
(597,173)
Add: Treatment and refining
129,361
Cash cost 438,494 481,756 113,607 39,903 107,898 43,780 1,225,438
Cash cost per pound ($/lb) 1.83 2.51 1.75 3.96 2.28 0.40
Capital Expenditures – Nine Months Ended September 30, 2024
($ thousands) Sustaining Expansionary
Capitalized
Interest Total
Candelaria 220,194 — — 220,194
Caserones 100,977 — — 100,977
Chapada 74,927 — 74,927
Eagle 15,998 — — 15,998
Josemaria — 193,027 10,522 203,549
Neves-Corvo 76,622 — — 76,622
Zinkgruvan 43,188 — — 43,188
Other 330 — — 330
532,236 193,027 10,522 735,785
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
nine months ended September 30, 2024, for discussion of non-GAAP measures heading “Non-GAAP and Other
Performance Measures” which is incorporated by reference herein.