Lundin Mining Provides 2024 Guidance & Announces 2023 Production Results
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NEWS RELEASE
Lundin Mining Provides 2024 Guidance & Announces 2023 Production Results
Vancouver, BC, January 14, 2024 (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, 2023 and
provides production guidance for the three -year period of 202 4 through 2026, as well as cash cost, capital and
exploration expenditure forecasts for 2024.
Highlights
• 2023 production results:
o On a consolidated basis the Company achieved guidance 1. Production for all metals was at the
midpoint or above for all guidance ranges.
o On a 100% basis consolidated copper production was a record for the Company at 314,798
tonnes (t), and copper-equivalent consolidated production was over 550,000 t.2
o Candelaria achieved guidance. Copper production was 152,012 t and gold production was
89,700 ounces (oz).
o Caserones copper production was 65,210 t for the second half of the year which exceeded
original guidance3, and on a full year basis was 139,520 t.
o Chapada achieved guidance. Copper production was 45,719 t, and gold production was on the
upper end of guidance at 59,268 oz for the year.
o Consolidated zinc production was 185,161 t, which was at the midpoint of the guidance.
Production at Neves-Corvo was on the upper end of zinc guidance while Zinkgruvan was slightly
below zinc guidance.
o Consolidated gold production was 148,968 oz which was on the upper end of guidance.
o Nickel production at Eagle was 16,429 t and copper production was 13,600 t both of which
exceeded original guidance.
• 2024 guidance on a consolidated basis is largely in line with last year’s production guidance:
o Copper production guidance of 366,000 – 400,000 t.
o Zinc production guidance of 195,000 – 215,000 t.
o Gold production guidance of 155,000 – 170,000 t.
o Nickel production guidance of 10,000 – 13,000 t.
Jack Lundin, President and CEO, commented “2023 was a significant year for Lundin Mining and we are well
positioned for growth in 2024. The 51% acquisition of Caserones led to a record in annual copper production. We have
initiated comprehensive value optimization efforts across our Latin American sites. We are beginning to execute on some
1 Guidance as most recently disclosed in the Company’s Management Discussion and Analysis for the three and nine months ended September 30, 2023.
2 Calculated based on the ratios of 2023 average metal prices of Cu: $3.85/lb, Zn: $1.20/lb, Ni: $9.74/lb, Mo: $24.19/lb, Pb: $0.97/lb Ag: $23.50/oz and Au: $1,941/oz.
3 Caserones guidance is for the second half of 2023. See “Lundin Mining Announces Closing of the Acquisition of Majority Interest in the Caserones Copper-
Molybdenum Mine in Chile and Commitments for New $800 Million Term Loan” dated July 13, 2023.
This news release contains non-GAAP measures and forward-looking information about expected future events and financial and operating performance of the
Company. Please refer to the Historical Non-GAAP Measure Comparatives section and the risks and assumptions set out in our Cautionary Statement on Forward-
Looking Information section of this press release. All dollar amounts are expressed in U.S. dollars, unless otherwise noted.
of these initiatives at Chapada and Candelaria and the kickoff of optimization work at Caserones will begin this quarter.
An exciting exploration program has begun on both the Chilean and Argentinian side of the Vicuña district. We will look
to drive value from the drill bit as this has proven to be a key contributor to the overall value creation at Lundin Mining.
“Across our critical metals portfolio, the zinc expansion project at Neves Corvo, otherwise known as ZEP, is coming to
fruition, leading to back -to-back quarterly record zinc production at this operation. At Zinkgruvan in 2023, improved
recoveries from the sequential flotation project were achieved, however, a longer than anticipated ramp up resulted in
a slight miss on guidance. Our nickel operation, Eagle, continues to perform and hit the upper end of guidance.
“During the year, t he cumulative result was over 550,000 tonnes of consolidated copper equivalent production. This
year’s guidance shows an increase of over 20% for copper production and 10% for zinc production over 2023. As we
turn the page on a transformational year for the Company, ou r focus remains on achieving operational excellence by
consistently maintaining elevated safety standards, all while meeting production guidance at competitive costs.”
Summary of 2023 Production
Q4 2023
Production
Full Year
2023
Production
2023 Original
Guidance4
2023 Revised
Guidance5
Copper (t)
Candelaria (100% basis) 41,618 152,012 145,000 - 155,000 147,000 - 153,000
Caserones (100% basis H2) 6 35,389 65,210 60,000 - 64,000 65,000 - 69,000
Chapada 12,872 45,719 43,000 - 48,000 45,000 - 48,000
Eagle 3,334 13,600 12,000 - 15,000 12,000 - 15,000
Neves-Corvo 9,623 33,823 33,000 - 38,000 33,000 - 36,000
Zinkgruvan 501 4,434 3,000 - 4,000 3,000 - 4,000
Total Copper 103,337 314,798 296,000 - 325,000 305,000 - 325,000
Zinc (t)
Neves-Corvo 31,035 108,812 100,000 - 110,000 103,000 - 110,000
Zinkgruvan 19,684 76,349 80,000 - 85,000 78,000 - 82,000
Total Zinc 50,719 185,161 180,000 - 195,000 181,000 - 192,000
Gold (oz)
Candelaria (100% basis) 24,787 89,700 85,000 - 92,000 87,000 - 92,000
Chapada 19,025 59,268 55,000 - 60,000 55,000 - 60,000
Total Gold 43,812 148,968 140,000 - 150,000 142,000 - 152,000
Nickel (t)
Eagle 3,729 16,429 13,000 - 16,000 15,000 - 17,000
Total Nickel 3,729 16,429 13,000 - 17,000 15,000 - 18,000
Molybdenum (t)
Caserones (100% basis H2)6 928 2,024 1,500 - 2,000 1,500 - 2,000
Total Molybdenum 928 2,024 1,500 - 2,000 1,500 - 2,000
4 Guidance as announced by news release "Lundin Mining Announces 2022 Production Results & Provides 2023 Guidance" dated January 12, 2023, and “Lundin Mining
Announces Closing of the Acquisition of Majority Interest in the Caserones Copper-Molybdenum Mine in Chile and Commitments for New $800 Million Term Loan”
dated July 13, 2023.
5 Guidance as most recently disclosed in the Company’s Management Discussion and Analysis for the three and nine months ended September 30, 2023.
6 Caserones guidance is for the second half of 2023. As per previous disclosure, revised production guidance for the second half of 2023 was 65,000 t to 69,000 t and
molybdenum was 1,500 t to 2,000 t.
Three-Year Production Outlook 2024 - 2026
• 2024 updated guidance outlook is in line with previously disclosed production ranges. Consolidated copper
production in 2024 has stayed consistent with previous estimates, consolidated zinc production ranges have
been slightly adjusted and consolidated gold production ranges have increased for 2024. In 2025
consolidated copper and gold ranges have increased while zinc guidance has stayed in line with previous
disclosure.
• Copper production is forecast to be 366,000 - 400,000 t on a consolidated basis in 2024. Higher consolidated
copper production is forecast for 2024 , mainly due to mine sequencing and the mine plan copper grade
profile at Candelaria. Caserones copper production guidance has been increased to 120,000 - 130,000 t on
an annual basis to reflect higher planned throughput rates in the mill.
• Zinc production is forecast to increase to 195,000 - 215,000 t on a consolidated basis in 2024, increasing
further over the three-year period to reach 220,000 - 240,000 t in 2025 and 2026.
• Consolidated gold production is forecast to be 1 55,000 - 170,000 oz in 2024 and then taper through the
three-year outlook period. Higher consolidated gold production in 2024 is due mainly to mine sequencing
and the planned gold grade profile at Candelaria.
• Nickel production is forecast to be 10,000 - 13,000 t in 2024 and then taper over the three-year period. The
production profile is driven by the planned mine sequencing and nickel grade as the Eagle East and Upper
Keel orebodies at Eagle are nearing the end of their mine life.
Production Outlook7
2024 2025 2026
Copper (t)
Candelaria (100% basis) 160,000 - 170,000 150,000 - 160,000 150,000 - 160,000
Caserones (100% basis) 120,000 - 130,000 125,000 - 135,000 125,000 - 135,000
Chapada 43,000 - 48,000 40,000 - 45,000 40,000 - 45,000
Eagle 9,000 - 12,000 5,000 - 8,000 5,000 - 8,000
Neves-Corvo 30,000 - 35,000 35,000 - 40,000 33,000 - 38,000
Zinkgruvan 4,000 - 5,000 3,000 - 4,000 3,000 - 4,000
Total Copper 366,000 - 400,000 358,000 - 392,000 356,000 - 390,000
Zinc (t)
Neves-Corvo 120,000 - 130,000 140,000 - 150,000 140,000 - 150,000
Zinkgruvan 75,000 - 85,000 80,000 - 90,000 80,000 - 90,000
Total Zinc 195,000 - 215,000 220,000 - 240,000 220,000 - 240,000
Gold (oz)
Candelaria (100% basis) 8 100,000 - 110,000 90,000 - 100,000 85,000 - 95,000
Chapada 55,000 - 60,000 55,000 - 60,000 55,000 - 60,000
Total Gold 155,000 - 170,000 145,000 - 160,000 140,000 - 155,000
Nickel (t)
Eagle 10,000 - 13,000 5,000 - 8,000 4,000 - 7,000
Total Nickel 10,000 - 13,000 5,000 - 8,000 4,000 - 7,000
Molybdenum (t)
Caserones (100% basis) 2,500 - 3,000 1,500 - 2,000 2,500 - 3,000
7 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.
8 68% of Candelaria’s total gold and silver production are subject to a streaming agreement.
Total Molybdenum 2,500 - 3,000 1,500 - 2,000 2,500 - 3,000
• Candelaria: Annual fluctuations in copper and gold production forecasts for the next three years are
primarily due to sequencing of the Candelaria open pit. An increase in annual production this year is
expected from higher copper and gold grades in the lower benches of Phase 11. Initial ore from Phase 12
will begin in 2024 and increase through 2026.
Over the guidance period, total mill throughput is forecast to range between 27 - 29 million t onnes per
annum (“Mtpa”). Debottlenecking initiatives of the Candelaria plant pebble crushing circuit were completed
in 2023. Based on the planned mill feed blend and the ore hardness throughput model, annual throughput
is expected to approximate 29 Mtpa commencing in 2025.
Candelaria’s 2024 copper and gold production are forecast to be weighted to the second half of the year,
primarily owing to mine sequencing and the resultant grade profiles.
• Caserones: During 2024, ore to the concentrator will come from Phases 5 and 6 which is expected to have
a lower grade profile compared to 2023. Annual ore throughput is projected to be approximately 34 – 36
Mtpa. Cathode production will range between 15 – 19 ktpa. In 2025 and 2026 ore will be supplied from
Phases 6 and 7 which is projected to have similar grades to 2024.
• Chapada: Production guidance is 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 Baru pits through 2025 followed by South,
Southwest and Baru.
• Eagle: Eagle will be producing ore at similar rates as in 2023 and will be primarily sourced from Eagle East.
Metal production is modestly weighted to the first half of the year driven by the higher-grade zone on the
lower 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 in late 2024 with production ramp up in 2025/26. The remaining
stopes in the upper zones at Eagle will remain productive through 2024 as supplemental ore to meet the
annual production plan.
• Neves-Corvo: Copper production guidance is consistent with prior expectations. 2024 copper production is
forecast to be weighted to the second half of the year owing to mine sequencing and the resultant grade
profiles. Additional ground support in the mine will be required in the Lombador orebody to maintain
mining rates.
• Zinkgruvan: Zinc metal production is forecasted to increase over the three -year period with increased
production volume and refinement of operating plans. Zinc head grades are expected to be consistent over
the period. Metal recovery rates and concentrate grades are a nticipated to improve with further
adjustments to the recently improved sequential flotation process. Zinkgruvan’s 2024 zinc production is
forecast to be modestly weighted to the first half of the year, primarily owing to higher zinc ore throughput.
Development towards Dalby and Mellanby orebodies will open new production areas in later 2025.
2024 Cash Cost9 Guidance
• 2024 cash cost guidance is estimated to be:
• Candelaria: Cash cost is forecast to be $1.60/lb – $1.80/lb of copper, after by-product credits. The cash cost
is expected to benefit from a higher production profile and realized savings from synergies between
Candelaria and Caserones. By-product credits have been adjusted for the terms of the gold streaming
agreement.
• Caserones: Cash cost is forecast to be $2.60/lb – $2.80/lb of copper, after by-product credits. The forecasted
increase in Caserones cash cost compared to 2023 reflects lower grade, higher operating costs, as well as
lower by-product credits. Mill throughput is forecast to increase by 2 – 3 Mtpa compared to 2023 based on
the expected plant utilization and improved availability of the mill.
• Chapada: Cash cost is forecast to be $1.95/lb – $2.15/lb of copper in 2024, after unencumbered gold by-
product credits. The forecasted decrease in Chapada’s cash cost s compared to 202 3 reflects lower mine
movement volumes and expected savings as the result of cost savings initiatives that were identified late
last year as part of an operational optimization process. Effects of copper stream agreements are reflected
in the realized copper revenue.
• Eagle: Cash cost is forecast to be $2.80/lb – $3.00/lb of nickel in 2024, after by-product copper credits. The
forecast increase compared to 2023 is primarily a reflection of planned lower production volumes and by-
product credits.
• Neves-Corvo: Cash cost is forecast to be $1.95/lb – $2.15/lb of copper in 2024, after zinc and lead by-product
credits. The cash cost is expected to improve compared to the previous year as zinc and lead production
volumes increase.
• Zinkgruvan: Cash cost is forecast to be $0.45/lb – $0.50/lb of zinc, after copper and lead by-product credits,
consistent with 2023 levels.
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, 2022 and nine months ended September 30, 2023.
10 2024 cash costs are based on various assumptions and estimates, including, but not limited to: production volumes, commodity prices (2024 - Cu: $3.75/lb, Zn:
$1.10/lb, Mo: $20.00/lb, Pb: $0.90/lb, Au: $1,800/oz: Ag: $23.00/oz) foreign currency exchange rates (2024 - €/USD:1.05, USD/SEK:10.50, CLP/USD:850, USD/BRL:5.00)
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 $425/oz and
$4.25/oz, respectively, on gold and silver sales in the year.
Cash Cost 202410
Copper
Candelaria11 $1.60/lb - $1.80/lb
Caserones $2.60lb - $2.80/lb
Chapada $1.95/lb - $2.15/lb
Neves-Corvo $1.95/lb - $2.15/lb
Zinc
Zinkgruvan $0.45/lb - $0.50/lb
Nickel
Eagle $2.80/lb - $3.00/lb
2024 Capital Expenditure Guidance
• Capital expenditures are forecast to total $1,065 million on a 100% basis , including expansionary capital
expenditures12 on the Josemaria Project . The majority of sustaining capital expenditures are for open pit
waste stripping, underground mine development , tailings storage facility (“TSF”) and water management
works.
Capital Expenditures ($ millions) 202412,13
Sustaining Capital
Candelaria (100% basis) $300
Caserones (100% basis) $205
Chapada $110
Eagle $25
Neves-Corvo $125
Zinkgruvan $75
Total Sustaining Capital $840
Josemaria Project $225
Total Capital Expenditures $1,065
• Candelaria ($300 million): Capitalized waste stripping is forecast to be $170 million, and underground mine
development, including ramp works, of approximately $16 million. Capital expenditure for mobile and mine
equipment is forecast to be $40 million, and $22 million is estimated for the continued building of the Los
Diques tailings storage facility (“TSF"). Other sustaining capital requirements are estimated at $40 million.
• Caserones ($205 million) : This includes approximately $80 million for capitalized waste stripping, $60
million for TSF and water management systems, and $12 million for mine and mobile equipment. Other
sustaining capital requirements are estimated at $35 million.
• Chapada ($110 million): Capitalized waste stripping is estimated at approximately $40 million, $45 million
for TSF and water management systems, and $22 million for mine and mobile equipment.
• Eagle ($25 million): Approximately $12 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.
• Neves-Corvo ($125 million): Approximately $55 million is forecast for underground mine development ,
including infill drilling and $35 million for capital projects in the mill and mine. Capital expenditures include
$10 million for mine and mobile equipment and $20 million is forecast to be spent for TSF and water
management.
• Zinkgruvan ($75 million) : Approximately $32 million is for underground development , including
development of the Dalby orebody. Expenditure on the sequential flotation project to improve concentrate
12 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, 2022, for discussion of non-GAAP measures.
13 Capital expenditures are based on various assumptions and estimates, including, but not limited to foreign currency exchange rates (2024 - €/USD:1.05,
USD/SEK:10.50, CLP/USD:850, USD/BRL:5.00).
grades and metal recovery rates is forecast to be $ 30 million. T he remainder of the sustaining capital
expenditure is primarily for TSF works.
• Josemaria Project ($225 million) : The estimated capital expenditures in 2024 will continue to support
advancing the project prior to a construction decision. An updated capital cost estimate and project schedule
is pending completion that will incorporate results from project de -risking initiatives and optimization
studies. Capital expenditures primarily include continuation of hydrology work, delivery of long -lead mills
and motors. Field activities will include road upgrades and geotechnical work as well as permitting initiatives,
mainly for the powerline, access road and community relations programs.
2024 Exploration Investment Guidance
Exploration expenditures are planned to be $48 million in 2024 primarily for in -mine and near-mine targets at
our operations. The largest portion of the planned expenditure is to be at Caserones (12,900 meters), while at
Josemaria, early exploration drilling (5,200 meters) on additional new targets is planned. The focus at Caserones
will be deeper in-pit drilling to better define higher grade breccia zones and exploration drilling to test the
sulphide mineral potential below the underlying Angelica oxide deposit. At Josemaria the exploration priority will
be to test the Cumbre Verde target. At Chapada additional drilling at Sauva will continue to further define higher
grade resource s. At Zinkgruvan, the exploration campaign (55,000 m eters) will target mineral extensions
demonstrating grades of 10 - 20% zinc.
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 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, 2024 at 18:00 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 Technical Information in this press release has been prepared in accordance with NI 43 -101 and has been reviewed and approved by Arman Barha, P.Eng., Vice
President, Technical Services of the Company, a "Qualified Person" under NI 43-101. Mr. Barha 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 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, 2022
Operations Candelaria Chapada Eagle Neves-Corvo Zinkgruvan
($ thousands, unless otherwise noted) (Cu) (Cu) (Ni) (Cu) (Zn) Total
Sales volumes (Payable metal contained metal in concentrate):
Tonnes 147,251 45,563 14,427 31,592 65,684
Pounds (000s) 324,633 100,449 31,806 69,648 144,808
Production costs 1,661.358
Less: Royalties and other (53,785)
1,607,573
Deduct: By-product credits (656,534)
Add: Treatment and refining charges 124,841
Cash cost 637,486 209,238 25,168 158,351 45,637 1,075,880
Cash cost per pound ($/lb) 1.96 2.08 0.79 2.27 0.32
Capital Expenditures – Year Ended December 31, 2022
($ thousands) Sustaining Expansionary
Capitalized
Interest Total
Candelaria 389,731 — — 389,731
Chapada 104,711 — — 104,711
Eagle 16,413 — — 16,413
Josemaria — 171,094 14 171,108
Neves-Corvo 71,222 31,899 65 103,186
Zinkgruvan 48,144 — — 48,144
Other 9,610 — — 9,610
639,831 202,993 79 842,903
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, 2022, for discussion of non-GAAP measures heading “Non-GAAP and Other Performance
Measures” on page 28 which is incorporated by reference herein.
Cash Cost – Nine Months Ended September 30, 2023
Operations Candelaria Caserones Chapada Eagle Neves-Corvo Zinkgruvan
($ thousands, unless
otherwise noted) (Cu) (Cu) (Cu) (Ni) (Cu) (Zn) Total
Sales volumes (Payable metal contained metal in concentrate):
Tonnes 105,585 30,385 30,681 10,234 23,000 48,028
Pounds (000s) 232,775 66,987 67,640 22,562 50,706 105,883
Production costs 1,438,071
Less: Royalties and other (41,717)
Inventory fair value adjustment (32,185)
1,364,169
Deduct: By-product credits (495,751)
Add: Treatment and refining charges 125,390
Cash cost 507,884 106,866 165,170 47,228 128,206 38,454 993,808
Cash cost per pound
($/lb)
2.18 1.60 2.44 2.09 2.53 0.36