Lundin Mining Pre-Announces Items Impacting the Fourth Quarter 2023 Results
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NEWS RELEASE
Lundin Mining Pre-Announces Items Impacting the Fourth Quarter 2023 Results
Vancouver, January 29, 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 earnings 1 and
adjusted earnings per share1.
Foreign Exchange and Derivatives
Items of significant impact in the fourth quarter 2023 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 $19 million on a pre -tax basis and unaudited realized gains on foreign exchange and diesel
derivative contracts of approximately $9 million on a pre-tax basis.
In the fourth quarter 2023 the Company is also expected to recognize an unaudited non-cash unrealized gain of
approximately $19 million on a pre-tax basis related to the mark-to-market valuation of the Company’s unexpired
foreign exchange and diesel derivative contracts. This non-cash gain will impact the Company’s earnings but not
adjusted EBITDA, adjusted earnings or adjusted earnings per share.
Provisional Pricing Adjustments
Revenue in the fourth quarter 2023 is expected to be negatively impacted by decreases in metal prices for
molybdenum and nickel during the quarter. The sales volume during the quarter for molybdenum and nickel was
978 tonnes and 3,105 tonnes, respectively . Downward provisional pricing adjustments on concentrate sales
completed in prior quarters is expected to reduce revenue in the fourth quarter by approximately $5/lb for
molybdenum and approximately $1/lb for nickel. Downward provisional pricing adjustments on concentrate sales
completed in prior quarters relating to other metals are not expected to be significant.
The report for the year ended December 31, 2023, will be published on Wednesday, February 21, 2024.
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 three and nine months ended September 30, 2023 which is available on SEDAR+ at www.sedarplus.ca.
Fourth Quarter 2023 Results Conference Call and Webcast
The Company will hold a telephone conference call and webcast at 10:00 Eastern Time on Thursday, February 22,
2024. Conference call details are provided below. Please dial in 15 minutes prior to the call start to ensure
placement into the conference on time.
Call-in number for the conference call (North America): [+1 416 764 8646]
Call-in number for the conference call (North America Toll Free): [+1 888 396 8049]
Call-in number for the conference call (UK): [+44 208 609 4320]
To view the live webcast presentation, please log on using this direct link:
https://onlinexperiences.com/Launch/QReg/ShowUUID=D37368FA-95C0-4267-A8AA-
753C7D924094&LangLocaleID=1033
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 through May 1, 2025.
Call-in numbers for the replay are (North America): [+1 877 674 7070] or (internationally) [+1 416 764 8692]
The passcode for the replay is: [266999]
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 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
January 29, 2024 at [5:30 pm] 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
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 forwar d-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 es timations, life of mine
estimates, an d mine and mine closure plans; anticipated market prices of metals, currency exchange rates, and interest rates; the developm ent and
implementation of the Company’s Responsible Mining Management 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; the Company’s integrat ion of acquisitions and
any anticipated benefits thereof; and expectations for other economic, business, and/or competitive factors. Words such as “believe”, “expect”, “anticipate”,
“contemplate”, “target”, “plan”, “goal”, “aim”, “intend”, “continue”, “budget”, “estimate”, “may”, “will”, “can”, “could”, “s hould”, “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 acquisition s; that the political environment
in which the Company operates will continue to suppo rt 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 i n light of management’s
experience and perception of current conditions and expected developments, these statements are inherently subject to significant busine ss, economic
and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materi ally 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 key supplies and services; 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, flooding or unusually severe weather; uninsurable risks; project financing risks, liquidity
risks and limited financial resources; volatility and fluctuations in metal and commodity demand and prices; delay s or the inability to obtain, retain or
comply with permits; significant reliance on a single asset; reputation risks related to negative publicity with respect to the Company or the mining industry
in general; health and safety risks; risks relating to the development of the Josemaria Project; inability to attract and retain highly skilled employees; risks
associated with climate change; compliance with environmental, health and safety laws and regulations; unavailable or inacces sible infrastructure,
infrastructure failures, and risks related to ageing infrastructure; risks inherent in and/or associated with operating in foreign countries and emerging
markets, including with respect to foreign exchange and capital controls; economic, political and social in stability and mining regime changes in the
Company’s operating jurisdictions, including but not limited to those related to permitting and approvals, environmental and tailings management, labour,
trade relations, and transportation; risks relating to inde btedness; the inability to effectively compete in the industry; risks associated with acquisitions
and related integration efforts, including the ability to achieve anticipated benefits, unanticipated difficulties or expendi tures relating to integration an d
diversion of management time on integration; changing taxation regimes; 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
jurisdictions; information technology and cybersecurity risks; risks associated with the estimation of Mineral Resources and Mineral Reserves and the
geology, grade and continuity of mineral deposi ts 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 characteristics; ore
processing efficiency; community and stakeholder opposition; financial projections, including estimates of future expenditure s and cash costs, and
estimates of future production may not be reliable; enforcing legal rights in foreign jurisdictions; enviro nmental and regulatory risks associated with the
structural stability of waste rock dumps or tailings storage facilities; activist shareholders and proxy solicitation matters ; risks relating to dilution;
regulatory investigations, enforcement, sanctions an d/or related or other litigation; risks relating to payment of dividends; counterparty and customer
concentration risks; the estimation of asset carrying values; risks associated with the use of derivatives; relationships with employees and contractors, and
the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interrupt ions in production; conflicts of
interest; existence of a significant shareholder; exchange rate fluctuations; challenges or defe cts in title; internal controls; compliance 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; the threat associated with outbreaks of viruses and infectious diseases; risks relating to
minor elements contained in concentrate products; and other risks and uncertainties, including but not limited to those descr ibed in the “Risk an d
Uncertainties” section of the Company’s Annual Information Form and the “Managing Risks” section of the Company’s MD&A for the year ended December
31, 2022, which are available on SEDAR+ at www.sedarplus.ca 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 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 should 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.