Lundin Mining Pre-Announces Items Impacting the Fourth Quarter and Full Year 2024 Results
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NEWS RELEASE
Lundin Mining Pre-Announces Items Impacting the Fourth Quarter and Full Year
2024 Results
Vancouver, January 27, 2025 (TSX: LUN ; Nasdaq Stockholm: LUMI) Lundin Mining Corporation (“Lundin
Mining” or the “Company”) is pre-announcing certain items impacting the Company’s quarterly earnings, earnings
per share, adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”)1, adjusted
earnings1 and adjusted earnings per share1.
Revenue and Provisional Pricing Adjustments
Revenue in the fourth quarter 2024 is expected to be negatively impacted by unaudited provisional pricing
adjustments on prior period concentrate sales of approximately $46 million on a pre-tax basis. These adjustments
primarily include downward adjustments in relation to copper sales, partially offset by upward adjustments on
nickel sales.
Revenue in the fourth quarter 2024 is also expected to be negatively impacted by a timing difference between
the production and shipment date of approximately 20,000 tonnes of copper concentrate. Two shipments of
copper concentrate from Caserones scheduled for December 2024 were delayed to early January due to certain
operational and weather related issues. Payments of approximately $45 million relating to these shipments were
received in December, however the revenue will only be recognized in the first quarter of 2025.
Foreign Exchange and Derivatives
Items of significant impact in the fourth quarter 2024 are expected to include unaudited realized foreign exchange
gains of $15 million on a pre -tax basis. Gains were primarily due to significant weakening of the Brazilian real
(“BRL”) and Chilean peso (“CLP”) against the US dollar during the quarter.
In the fourth quarter 2024 the Company is also expected to recognize certain non-cash items that will impact the
Company’s earnings but not adjusted EBITDA, adjusted earnings or adjusted earnings per share. These include
unaudited unrealized foreign exchange gains of approximately $11 million on a pre-tax basis and an u naudited
unrealized loss of approximately $74 million on a pre -tax basis related to the mark -to-market valuation of the
Company’s foreign exchange and commodity derivative contracts, primaril y due to weakening of the CLP , BRL,
and Canadian dollar against the US dollar during the quarter. Additionally, the Company is expected to recognize
an unaudited unrealized loss of approximately $12 million on a pre -tax basis related to the mark -to-market
valuation of the Company’s foreign exchange contracts due to weakening of the Swedish krona and Euro against
the US dollar during the quarter.
Other Items
During the fourth quarter, throughput at Eagle increased as ramp rehabilitation progressed. An unaudited
amount of approximately $11 million, related to overhead costs from the partial suspension of underground
operations, is expected to impact the Company’s earnings for the quarter . This amount will be excluded from
adjusted EBITDA, adjusted earnings, and adjusted earnings per share. Normal throughput rates are expected to
resume during the first quarter of 2025.
Production costs in the fourth quarter 2024 are expected to include an unaudited write down of inventory items
amounting to $22 million.
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, 2024 which is available on SEDAR+ at www.sedarplus.com.
Fourth Quarter 2024 Results Conference Call and Webcast Details
The Company will release its fourth quarter 2024 operations and financial results after market close on
Wednesday, February 19, 2025, and will hold a webcast and conference call on Thursday, February 20, 2025 to
present the results. Webcast and conference call details are provided below.
Webcast / Conference Call Details:
Date: Thursday, February 20, 2025
Time: 7:00 AM PT | 10:00 AM ET
Listen Only Webcast: WEBCAST LINK
Dial In for Investor & Analyst Q&A: DIAL IN LINK
To participate in the call click on the dial in LINK above and complete the online registration form. Once registered
you will receive the dial-in information and a unique PIN to join the call and ask questions.
A replay of the webcast will be available by clicking on the webcast LINK above and will be archived on the
Company’s website for a limited period of time.
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 its European assets to Boliden. The transaction is expected to close in mid-
2025 subject to customary conditions and regulatory approvals.
The information was submitted for publication, through the agency of the contact persons set out below on
January 27, 2025 at 15:00 Pacific 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 are “forward -looking information” within the meaning of applicable Canadian securities laws. All
statements other than statements of historical facts included in this document constitute forwa rd-looking information, including but not limited to statements
regarding the Company’s plans, prospects and business strategies; expected items of significant impact in the fourth quarter and annual results, and the anticipated
impact on the Company’s revenue, earnings, adjusted EBITDA, adjusted earnings and adjusted earnings per share; the completion of the sale of the Company’s
European assets and the timing thereof; the conditions to close the sale of the Company’s European assets; the Company’s guid ance on the timing and amount of
future production and its expectations regarding the results of operations; expected costs; permit ting requirements and timelines; the results and timing of any
Preliminary Economic Assessment, Pre-Feasibility Study, 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 Company’s integration of acquisitions and expansions and
any anticipated benefits thereof; and expectations for other economic, business, and/or competitive factors. Words such as “b elieve”, “expect”, “anticipate”,
“contemplate”, “target”, “plan”, “goal”, “aim”, “intend”, “continue”, “budget”, “estimate”, “may”, “will”, “can”, “could”, “should”, “schedule” and similar expressions identify
forward-looking information.
Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation, the expectations and beliefs of management,
including that the Company can access financing, appropriate equipment and sufficient labour; assumed and future price of copper, zinc, nickel, gold and other
metals; anticipated costs; that the conditions to close the sale of the Company’s European assets will be satisfied; the abil ity to achieve goals and identify and realize
opportunities; 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 and unknown factors could cause actual
results to differ materially from those projected in the forward -looking information and undue reliance should not be placed on such information. S uch factors
include, but are not limited to: the failure to obtain required approvals for the sale of the Company’s European assets; glob al financial conditions, market volatility
and inflation, including pricing and availability of key supplies and servic es; 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 na tural 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; delays or the inability to obtain, retain or comply wi th permits; significant reliance on assets in Chile; reputation risks
related to negative publicity with respect to the Company or the mining industry in general; health and safety risks; risks r elating to the development of the Filo del
Sol project and the Josemaria project; inability to attract and retain highly skilled em ployees; risks associated with climate change; compliance with environmental,
health and safety laws and regulations; unavailable or inaccessible infrastructure, infrastructure failures, and risks relate d 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 instability and mining regime changes in the Company’s operating jurisdictions, including b ut not limited to those related to permitting and approvals,
nationalization or expropriation without fair compensation, environmental and tailings management, labour, trade relations, a nd transportation; risks relating to
indebtedness; the inability to ef fectively compete in the industry; 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 tim e 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 deposits 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, dilut ion, mine plans and metallurgical
and other characteristics; ore processing efficiency; community and stakeholder opposition; financial projections, including estimates of future expenditures and cash
costs, and estimates of future production may not be reliable; enforcing legal rights in foreign jurisdictions; environmental 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 and/or related or other litigat ion; risks relating to payment of dividends; counterparty and customer concentration risks; the
estimation of asset carrying values; risks associated with the use of derivatives; risks relating to joint ventures, joint ar rangements and operations; relationships with
employees and contractors, and the potential for and effects of labour disputes or other unanticipated difficulties with or s hortages of labour or interruptions in
production; conflicts of interest; existence of a significant shareholder; exchan ge rate fluctuations; challenges or defects in title; internal controls; compliance with
foreign laws; potential for the allegation of fraud and corruption involving the Company, its customers, suppliers or employe es, or the allegation of improper or
discriminatory employment practices, or human rights violations; the threat associated with outbreaks of viruses and infectious di seases; risks relating to minor
elements contained in concentrate products; and other risks and uncertainties, including but not li mited to those described in the “Risk and Uncertainties” section of
the Company’s MD&A for the year three and nine months ended September 30, 2024 and the “Risk and Uncertainties” section of th e Company’s Annual Information
Form for the year ended December 31, 2023, which are available on SEDAR+ at www.sedarplus.com under the Company’s profile.
All of the forward -looking information in this document are qualified by these cautionary statements. Although the Company has attempted to iden tify 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, forecasted or intended and readers are cautioned that the foregoing list is not exhaustive of a ll 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 o f 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.