Lundin Mining Pre-Announces Items Impacting the Third Quarter 2024 Results
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NEWS RELEASE
Lundin Mining Pre-Announces Items Impacting the Third Quarter 2024 Results
Vancouver, October 16, 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 third quarter 2024 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 $7 million. Unaudited realized losses on foreign exchange and unaudited realized gains on foreign
exchange and commodity derivative contracts were not significant in the quarter.
In the third 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
an unaudited non-cash unrealized loss on foreign exchange of approximately $13 million on a pre-tax basis, and
an unaudited non-cash unrealized gain of approximately $31 million on a pre-tax basis related to the mark -to-
market valuation of the Company’s unexpired foreign exchange and commodity derivative contracts.
Provisional Pricing Adjustments
Revenue during the third quarter 2024 is expected to be negatively impacted by unaudited provisional pricing
adjustments on prior period concentrate sales of approximately $5 million on a pre-tax basis. These adjustments
primarily include downward adjustments in relation to prior period copper and molybdenum sales, partially
offset by upward adjustments in relation to prior period gold sales.
Eagle East Rehabilitation
During the third quarter ramp rehabilitation at Eagle East continued to progress. An unaudited amount of
approximately $15 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. Mining rates are anticipated to increase during the fourth
quarter of 2024.
Third Quarter 2024 Results Conference Call and Webcast Details
The Company will release its third quarter 2024 operations and financial results after market close on Wednesday,
November 6, 2024, and will hold a webcast and conference call on Thursday, November 7, 2024 to present the
results. Webcast and conference call details are provided below.
Webcast / Conference Call Details:
Date: Thursday, November 7, 2024
Time: 7:00 AM PT | 10:00 AM ET
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 six months ended June 30, 2024 which is available on SEDAR+ at www.sedarplus.com.
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 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
October 16, 2024 at 14:30 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 forward-looking information, including but not limited to
statements regarding the Company’s plans, prospects and business strategies; expected items of significant impact in the thir d quarter 2024, and the
anticipated impact on the Company’s earnings, revenue, adjusted EBITDA, adjusted earnings or adjusted earnings per share; the completion of the
acquisition of Filo and the timing thereof; the establishment and operation of a new joint venture with BHP; the realization of synergies in the Vicuña
district; the identification of additional value creation opportunities; the Company’s guidance on the timing and amount of future producti on and its
expectations regarding the results of operations; expected costs; permitting requirements and timelines; the results of any Preliminary Economic
Assessment, Pre -Feasibility Study, Feasibility Study, or Mineral Resource and Mineral Reserve estimations, the Company’s ability to comply wi th
contractual and permitting or other regulatory requirements; anticipated exploration an d development activities at the Company’s projects; expansion
projects and the realization of additional value; the Company’s integration of acquisitions and expansions and any anticipate d benefits thereof; the
Company’s ability to become a top tier copper producer; 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”, “should”,
“schedule” and similar expressions identify forward-looking information.
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, zinc,
nickel, gold and other metals; anticipated costs; ability to achieve goals and identify and realize opportunities; the prompt and effective integration of
acquisitions, including the completion of each of the acqu isition of Filo, the establishment of the joint venture with BHP and the realization of synergies
and economies of scale in connection therewith; 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 f orth 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 act ual results to differ materially from those projected in the forward -looking information
and undue reliance should not be placed on such information. Such factors include, but are not limited to: global financial c onditions, market volatility
and inflation, including pricing and availability of key supplies and services; risks inherent in mining including but not limited to risk s 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; volatility and fluctuations in metal and commod ity demand and prices;
significant reliance on assets in Chile; reputation risks related to negative publicity with respect to the Company or the mining industry in general; delays
or the inability to obtain, retain or comply with permits; risks relating to the development of the Josemaria Project; health and safety laws and regulations;
risks associated with climate change; risks relating to indebtedness; economic, political and social instability and mining regime changes in the Company’s
operating jurisdictions, including but not limited to those related to permitting and approvals, nationa lization or expropriation without fair compensation,
environmental and tailings management, labour, trade relations, and transportation; inability to attract and retain highly sk illed employees; risks inherent
in and/or associated with operating in foreign countries and emerging markets, including with respect to foreign exchange and capital controls; project
financing risks, liquidity risks and limited financial resources; health and safety risks; compliance with environmental, una vailable or inaccessible
infrastructure, infrastructure failures, and risks related to ageing infrastructure; changing taxation regimes; the inability to effectively compete in the
industry; risks associated with acquisitions partnerships, including the completion of each of the a cquisition of Filo and the establishment of the joint
venture with BHP; expansions 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; risks related to mine closure activities, reclamatio n 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 deposit s 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; regulatory investigations, enforcement, sanctions and/or related or other litigation; financial
projections, including estimates of future expenditures and cash costs, and estimates of future pr oduction may not be reliable; enforcing legal rights in
foreign jurisdictions; risks associated with the use of derivatives; risks relating to joint ventures and operations; environ mental and regulatory risks
associated with the structural stability of waste rock dumps or tailings storage facilities; exchange rate fluctuations; compliance with foreign laws; potential
for the allegation of fraud and corruption involving the Company, its customers, suppliers or employees, or the allegation of improper or discriminatory
employment practices, or human rights violations; risks relating to dilution; risks relating to payment of dividends; counterparty and customer concentration
risks; activist shareholders and proxy solicitation matters; estimation of asset carryi ng values; relationships with employees and contractors, and the
potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; conflicts of interest;
existence of significant shareholders; challenges or defects in title; internal controls; risks relating to minor elements contained in concentrate prod ucts;
the threat associated with outbreaks of viruses and infectious diseases; mining rates and rehabilitation projects; mill shut downs; and other risks and
uncertainties, including but not limited to those described in the " Risks and Uncertainties” section of the Company’s MD&A f or the three and six months
ended June 30, 2024 and the “Risks and Uncertainties” section of the 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 i s 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 forward -looking information. Accordi ngly, 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.