LUN.TO · 2024-07-30 12:00:00

Lundin Mining Second Quarter 2024 Results

Financials

NEWS RELEASE

Vancouver, July 30, 2024 (TSX: LUN; Nasdaq Stockholm: LUMI) Lundin Mining Corporation (“Lundin Mining” or the

“Company”) today reported its second quarter 2024 financial results. Unless otherwise stated, results are presented in

United States dollars on a 100% basis.

Jack Lundin, President and CEO commented, "During the quarter we generated record quarterly revenue of $1.1 billion

which contributed to a strong financial performance for the Company. Adjusted EBITDA

for the quarter was $461 million

and free cash flow from operations

was $338 million driven by stronger commodity prices and working capital inflows.

"At Candelaria, while mill throughput in the first half of the year was strong, we expect to achieve a significant step-up in

production in the second half of the year with planned higher grades and higher mining rates from ore in Phase 11. This

production step-up has started to materialize during the month of July from the open pit.

“Our team remains dedicated to enhancing operational performance, prioritizing safety and cost optimization. Cash costs

for the quarter were at the lower end of our guidance range. We are well-positioned for a strong second half of the year

and are on track to meet our consolidated production guidance for copper, gold, and zinc. Additionally, we have reduced

our guidance for sustaining capital expenditures by $45 million."

Second Quarter Operational and Financial Highlights

• Copper Production: Consolidated production of 79,708 tonnes of copper in the second quarter.

• Other Production: During the quarter, a total of 47,460 tonnes of zinc, 1,721 tonnes of nickel and approximately

32,000 ounces of gold were produced.

• Revenue: $1,083.6 million in the second quarter with a realized copper price

of $4.79 /lb.

• Net Earnings and Adjusted Earnings

: Net earnings attributable to shareholders of the Company were $121.6

million or $0.16 per share in the second quarter with adjusted earnings

$122.1 million or $0.16 per share.

• Adjusted EBITDA

: $460.9 million generated during the quarter.

• Cash Generation: Cash provided by operating activities was $491.8 million and free cash flow from operations

was

$337.5 million, which was increased by a working capital release of $121.9 million.

• Growth: On July 2, 2024, the Company exercised its option to increase ownership in Caserones to 70%, which adds

an additional 25,000 tonnes of attributable copper production to Lundin Mining's production profile

• Sustainability Report: On July 10, 2024 the Company published its annual 2023 Sustainability Report that highlights

the Company's material environmental, health & safety, governance and social performance during the year.

• Outlook: Second quarter 2024 production and cash costs were aligned with expectations, the Company's full year

guidance remains unchanged with the exception of nickel:

◦ Caserones: Annual copper production guidance range for the Caserones mine for 2024 has been increased

to 124,000 - 135,000 tonnes (previously 120,000 - 130,000 tonnes). Cash cost guidance for Caserones

remains unchanged.

◦ Eagle Mine: Annual nickel production guidance range for the Eagle mine for 2024 has been reduced to 7,000

- 9,000 tonnes (previously 10,000 - 13,000 tonnes) and the copper production guidance range has been

reduced to 5,000 - 7,000 tonnes (previously 9,000 - 12,000 tonnes). Cash cost guidance per pound of nickel

for the Eagle mine has increased to $3.20/lb - $3.40/lb (previously $2.80/lb - $3.00/lb)

◦ Sustaining Capital Expenditures: Will be reduced by $45 million and are expected to total $795 million

(previously $840 million) due to reductions in planned spending at Caserones, Neves-Corvo and Zinkgruvan.

Corporate Office

1055 Dunsmuir Street

Suite 2800, Bentall IV

Vancouver, BC V7X 1L2

Phone +1 604 689 7842

lundinmining.com

These are non-GAAP measures. Please refer to the Company's discussion of non-GAAP and other performance measures in its Management's Discussion

and Analysis ("MD&A") for the three and six months ended June 30, 2024 and the Reconciliation of Non-GAAP measures section at the end of this news

release.

Based on Caserones 2024 production guidance as outlined in the news release 'Lundin Mining Provides 2024 Guidance & Announces 2023 Production

Results' dated January 14, 2024.

Summary Financial Results

Three months ended

June 30,

Six months ended

June 30,

US$ Millions (except per share amounts) 2024 2023 2024 2023

Revenue 1,083.6 588.5 2,020.6 1,339.9

Gross profit 279.5 52.8 464.9 266.2

Attributable net earnings

121.6 59.1 135.5 205.7

Net earnings 156.7 61.3 215.3 226.6

Adjusted earnings

a,b

122.1 45.6 167.3 171.3

Adjusted EBITDA

460.9 191.8 823.7 528.7

Basic earnings per share ("EPS")

0.16 0.08 0.18 0.27

Diluted EPS

0.16 0.08 0.17 0.27 0.27

Adjusted EPS

a,b

0.16 0.06 0.22 0.22

Cash provided by operating activities 491.8 194.8 759.3 406.7

Adjusted operating cash flow

369.9 110.6 683.5 345.7

Adjusted operating cash flow per share

0.48 0.14 0.88 0.45

Free cash flow from operations

337.5 20.7 405.2 91.8

Free cash flow

236.8 (84.6) 235.1 (118.8)

Cash and cash equivalents 452.8 190.2 452.8 190.2

Net debt excluding lease liabilities

893.8 201.3 893.8 201.3

Net debt

1,152.9 229.8 1,152.9 229.8

Attributable to shareholders of Lundin Mining Corporation.

These are non-GAAP measures. 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 and the Reconciliation of Non-GAAP Measures section at the end of this news release.

• For the three months ended June 30, 2024 , the Company generated revenue of $1,083.6 million, driven by 78,662

tonnes of copper sold at a realized price of $4.79 /lb . Revenue benefited from higher realized copper and zinc

prices, including $94.5 million positive provisional pricing adjustments on prior period concentrate sales.

• Gross profit of $279.5 million and Adjusted EBITDA of $460.9 million in the three months ended June 30, 2024

reflect higher realized copper and zinc prices despite the impacts of planned lower grades and maintenance

activities on copper concentrate sales from Candelaria and Caserones, respectively.

• Net earnings attributable to shareholders of the Company were $121.6 million or $0.16 per share in the three

months ended June 30, 2024, and included higher tax expense due to higher taxable earnings and the utilization of

prior period tax losses.

• Adjusted earnings attributable to shareholders of the Company for the three months ended June 30, 2024 were

$122.1 million or $0.16 per share after removing a loss on foreign exchange due to the translation of deferred tax

balances and expenses relating to the partial suspension of underground operations at Eagle, among other things.

• Cash and cash equivalents as at June 30, 2024 were $452.8 million. Cash provided by operating activities amounted

to $491.8 million and cash used to fund investing activities amounted to $252.2 million. The Company had a net

debt excluding lease liabilities

balance of $893.8 million as at June 30, 2024 (December 31, 2023 - $946.2 million).

• Free cash flow

for the three months ended June 30, 2024 of $236.8 million reflected higher copper and zinc realized

prices, positive working capital changes and reduced capital expenditure at Candelaria.

• During the three months ended June 30, 2024 , the Company entered into zero cost collar contracts in the total

amount of $222 million (equivalent to BRL 1.1 billion) with collar ranges of BRL 5.00 to BRL 6.11.

• As at July 30, 2024, the Company had a cash balance of approximately $288.0 million and a net debt excluding lease

liabilities balance of approximately $1,338.0 million.

These are non-GAAP measures. Please refer to the Company's discussion of non-GAAP and other performance measures in its Management's Discussion

and Analysis ("MD&A") for the three and six months ended June 30, 2024 and the Reconciliation of Non-GAAP measures section at the end of this news

release.

Operational Performance

Total Production

(Contained metal)

2024 2023

YTD Q2 Q1 Total Q4 Q3 Q2 Q1

Copper (t)

167,721 79,708 88,013 314,798 103,337 89,942 60,057 61,462

Zinc (t) 93,148 47,460 45,688 185,161 50,719 49,774 36,115 48,553

Nickel (t) 4,976 1,721 3,255 16,429 3,729 4,290 4,686 3,724

Gold (koz)

65 32 33 149 44 35 34 36

Molybdenum (t)

1,578 714 864 2,024 928 1,096 — —

a. Tonnes (t) and thousands of ounces (koz)

b. Candelaria and Caserones production is on a 100% basis.

Candelaria (80% owned): Candelaria produced 31,170 tonnes of copper and approximately 17,000 ounces of gold in

concentrate on a 100% basis in the three months ended June 30, 2024. Production in the quarter was impacted by lower

grades and recoveries, partially offset by higher throughput. During the three months ended June 30, 2024 , mining rates

were impacted by the interface of the open pit and historic underground mining stopes, requiring more stockpiled ore to

be processed which reduced grades and recoveries. Access to higher grade ore is anticipated in the second half of 2024 as

per the mine sequence. Three of four stopes have now been filled and blasted, with work on the fourth expected to begin

in Q3, and not expected to impact production in the second half of 2024. Production costs were reduced by lower sales

volumes and favourable foreign exchange as a result of the CLP weakening against the US dollar; however, cash cost of

$2.18/lb was negatively impacted by lower sales volumes.

Caserones (51% owned): Caserones produced 29,775 tonnes of total copper and 714 tonnes of molybdenum on a 100%

basis in the three months ended June 30, 2024 . Copper and molybdenum concentrate production was impacted in the

quarter by extended mill maintenance and weather events which reduced mining activities and limited tailings deposition.

Recoveries were also temporarily reduced by changes in the mining sequence and flotation circuit disruptions. Production

costs in the quarter were lower than planned primarily due to lower copper concentrate and molybdenum sales volume,

as well as favourable foreign exchange. Cash cost also benefitted from favourable foreign exchange.

Chapada (100% owned): Chapada produced 9,106 tonnes of copper and approximately 15,000 ounces of gold in

concentrate in the three months ended June 30, 2024 and was impacted by lower grades and recoveries combined with

lower mill availability due to unplanned conveyor maintenance and vibration screen failure. Lower grades were a result of

a shift to processing increased amounts of stockpiled ore and an optimized mine plan that significantly reduces waste

movement. Production costs were reduced by lower sales volumes and favourable foreign exchange. Cash cost of $2.05/lb

benefited from higher gold by-product credits combined with favourable foreign exchange and mining cost decreases due

to operational improvements.

Eagle (100% owned): Eagle produced 1,721 tonnes of nickel and 1,563 tonnes of copper in the three months ended June

30, 2024. A fall of ground in the lower ramp restricted access to Eagle East, limiting production. Mining rates are expected

to be reduced until late 2024 while ramp rehabilitation is completed, deferring the extraction of ore from Eagle East into

future years. Production costs were reduced by lower sales volumes and royalty expense, partially offset by higher

maintenance costs . Nickel cash cost

of $3.23/lb was impacted by lower sales volumes, partially offset by higher by-

product credits.

Neves-Corvo (100% owned): Neves-Corvo produced 7,347 tonnes of copper and 25,696 tonnes of zinc in the three months

ended June 30, 2024 , both of which were impacted by lower grades due to changes in mine sequencing as a result of

Lombador south requiring additional development work. Production costs increased due to an increase in sales volumes

and cash cost of $1.70/lb benefited from increased sales volumes and higher by-product credits.

Zinkgruvan (100% owned): Zinkgruvan produced 21,764 tonnes of zinc and 8,966 tonnes of lead in the three months

ended June 30, 2024 reflecting higher throughput and grades. Copper production of 747 tonnes was impacted by reduced

availability of copper ore. Production costs increased due to higher sales volumes and zinc cash cost of $0.39/lb reflected

lower copper by-product credits.

Outlook

Production and cash cost guidance for 2024 has been updated from that disclosed in the Company's Management's

Discussion and Analysis for the year ended December 31, 2023.

The Company remains on track to meet annual production and cash cost guidance for all metals with the exception of

nickel, and has reduced sustaining capital expenditure guidance from $840 million to $795 million with reductions at

Caserones, Neves-Corvo, and Zinkgruvan. Expenditure guidance related to the Josemaria Project of $225 million and

exploration of $48 million each remain on target for 2024.

Metal production continues to be weighted to the second half of the year at Candelaria, Chapada and Neves-Corvo due to

mine sequencing and resultant forecasted grade profiles. Grade is expected to increase significantly at Candelaria in the

second half of 2024 once access is opened to higher-grade ore. As a result of production challenges at Neves-Corvo in the

first half of 2024, copper production at that operation continues to track to the lower end of its annual production

guidance range. In the first half of 2024, cash cost per pound at most operations benefited from increased realized prices

on by-product sales.

Guidance at Caserones has been increased to reflect production from the first half of the year and expected throughput

and grades for the remainder of the year. At the Eagle mine, a fall of ground in the lower ramp restricted access to Eagle

East, limiting production. Mining rates are expected to be reduced until late 2024 while ramp rehabilitation is completed,

deferring the extraction of ore from Eagle East into future years. As a result, the annual nickel and copper production

guidance ranges for the Eagle mine for 2024 have been reduced.

2024 Production and Cash Cost Guidance

Guidance

Revised Guidance

(contained metal) Production Cash Cost ($/lb)

Production Cash Cost ($/lb)

Copper (t) Candelaria (100%) 160,000 – 170,000 1.60 – 1.80

c 160,000 – 170,000 1.60 – 1.80

Caserones (100%) 120,000 – 130,000 2.60 – 2.80 124,000 – 135,000 2.60 – 2.80

Chapada 43,000 – 48,000 1.95 – 2.15

d 43,000 – 48,000 1.95 – 2.15

Eagle 9,000 – 12,000 5,000 – 7,000

Neves-Corvo 30,000 – 35,000 1.95 – 2.15

c 30,000 – 35,000 1.95 – 2.15

Zinkgruvan 4,000 – 5,000 4,000 – 5,000

Total 366,000 – 400,000 366,000 – 400,000

Zinc (t) Neves-Corvo 120,000 – 130,000 120,000 – 130,000

Zinkgruvan 75,000 – 85,000 0.45 – 0.50

c 75,000 – 85,000 0.45 – 0.50

Total 195,000 – 215,000 195,000 – 215,000

Nickel (t) Eagle 10,000 – 13,000 2.80 – 3.00 7,000 – 9,000 3.20 – 3.40

Gold (koz) Candelaria (100%) 100 – 110 100 – 110

Chapada 55 – 60 55 – 60

Total 155 – 170 155 – 170

Molybdenum (t) Caserones (100%) 2,500 - 3,000 2,500 – 3,000

a. Guidance as outlined in the Company's Management Discussion and Analysis ("MD&A") for the year ended December 31, 2023.

b. Cash costs are based on various assumptions and estimates, including but not limited to: production volumes, commodity prices (Cu: $3.75/lb, Zn: $1.10/

lb, Pb: $0.90/lb, Au: $1,800/oz, Mo: $20.00/lb, Ag: $23.00/oz), foreign exchange rates (€/USD:1.05, USD/SEK:10.50, USD/CLP:850, USD/BRL:5.00) and

production costs. Cash cost is a non-GAAP measure - see the Company's Management Discussion and Analysis for the three and six months ended June 30,

2024 and the Reconciliation of Non-GAAP Measures at the end of this news release.

c. 68% of Candelaria's total gold and silver production are subject to a streaming agreement, and silver production at Zinkgruvan and Neves-Corvo are also

subject to streaming agreements. Cash costs are calculated based on receipt of approximately $429/oz gold and $4.28/oz to $4.68/oz silver.

d. 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.

2024 Capital Expenditure Guidanceb

($ millions) Guidance

Revisions Revised Guidance

Candelaria (100% basis) 300 — 300

Caserones (100% basis) 205 (30) 175

Chapada 110 — 110

Eagle 25 — 25

Neves-Corvo 125 (10) 115

Zinkgruvan 75 (5) 70

Other — — —

Total Sustaining 840 (45) 795

Josemaria 225 — 225

Total Capital Expenditures 1,065 (45) 1,020

a. Guidance as outlined in the Company's Management Discussion and Analysis ("MD&A") for the year ended December 31, 2023.

b. Sustaining capital expenditure is a supplementary financial measure and expansionary capital expenditure is a non-GAAP measure - see the

Company's Management Discussion and Analysis for the three and six months ended June 30, 2024 and the Reconciliation of Non-GAAP Measures at

the end of this news release.

Exploration

During the quarter ended June 30, 2024, exploration activity focused on in-mine and near-mine targets at the Company's

operations. Exploration drilling at Zinkgruvan was focused on resource expansion and drilling at Candelaria was focused

on Candelaria Norte and La Espanola. Drilling at Chapada concentrated on delineating the high-grade, near-mine trend at

Corpo Sul, adding high grade resources to Sauva and testing geochemical anomalies in the Sauva area Curicaca and Curio.

At Caserones, exploration activity remains lower during the winter season. Exploration drilling continues in the lower

portion of the mineral resource in search of higher-grade copper breccia bodies that could improve the average grade of

the resource, and potentially expand it. Near-mine drilling at Angelica has been paused for winter since April.

At Josemaria, seasonal exploration drilling ended in early April at the Cumbre Verde Target, located west of the Josemaria

ore body. Six holes were drilled targeting the same mineralized system and structures that hosted high grade

mineralization on the neighbouring property that may potentially run towards the Cumbre Verde Target. Initial results

highlight favorable levels of copper/gold/silver mineralization in veins and porphyry. The data obtained will help further

refine and target this mineralization. Work will continue throughout the remainder of 2024 with drilling to recommence

after the winter season.

There was no exploration drilling at Neves-Corvo and Eagle in the quarter.

About Lundin Mining

Lundin Mining is a diversified Canadian base metals mining company with projects and operations in Argentina, Brazil,

Chile, Portugal, Sweden and the United States of America, primarily producing copper, zinc, nickel and gold.

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

July 30, 2024 at 14:30 Vancouver 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 40

Technical 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 Arman Barha, P.Eng., Vice President,

Technical Services, 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.

Reconciliation of Non-GAAP Measures

The Company uses certain performance measures in its analysis. 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 similar 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.

Cash Cost per Pound and All-in Sustaining Costs per pound can be reconciled to Production Costs on the Company's

Condensed Interim Consolidated Statement of Earnings as follows:

Three months ended June 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 29,999 29,862 8,293 2,018 7,898 18,510

Pounds (000s) 66,137 65,834 18,283 4,449 17,412 40,808

Production costs

606,426

Less: Royalties and other (22,324)

584,102

Deduct: By-product credits (210,112)

Add: Treatment and refining 38,577

Cash cost 143,935 171,255 37,570 14,381 29,682 15,744 412,567

Cash cost per pound ($/lb) 2.18 2.60 2.05 3.23 1.70 0.39

Add: Sustaining capital 60,544 35,328 25,241 3,980 27,921 13,301

Royalties 3,551 9,275 1,631 3,906 1,207 —

Reclamation and other

closure accretion and

depreciation

1,858 1,094 2,727 1,592 1,320 951

Leases & other 3,026 18,619 775 1,533 194 78

All-in sustaining cost 212,914 235,571 67,944 25,392 60,324 30,074

AISC per pound ($/lb) 3.22 3.58 3.72 5.71 3.46 0.74

Three months ended June 30, 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 36,347 — 10,164 3,859 6,170 9,374

Pounds (000s) 80,132 — 22,408 8,507 13,603 20,666

Production costs

405,198

Less: Royalties and other (7,969)

397,229

Deduct: By-product credits (122,636)

Add: Treatment and refining 32,514

Cash cost 171,520 — 60,351 15,990 54,271 4,975 307,107

Cash cost per pound ($/lb) 2.14 — 2.69 1.88 3.99 0.24

Add: Sustaining capital 123,417 — 19,690 3,562 22,133 15,994

Royalties — — 2,029 4,920 83 —

Reclamation and other

closure accretion and

depreciation

2,444 — 1,847 3,011 1,296 739

Leases & other 3,654 — 1,171 897 148 100

All-in sustaining cost 301,035 — 85,088 28,380 77,931 21,808

AISC per pound ($/lb) 3.76 — 3.80 3.34 5.73 1.06

Six months ended June 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 63,535 65,073 17,035 4,181 13,784 34,335

Pounds (000s) 140,071 143,461 37,556 9,218 30,388 75,696

Production costs

1,173,560

Less: Royalties and other (42,294)

1,131,266

Deduct: By-product credits (375,420)

Add: Treatment and refining 85,528

Cash cost 283,425 337,694 76,305 33,630 71,739 38,581 841,374

Cash cost per pound ($/lb) 2.02 2.35 2.03 3.65 2.36 0.51

Add: Sustaining capital 160,076 78,082 54,440 8,058 50,334 27,642

Royalties 6,519 18,089 3,248 6,584 1,942 —

Reclamation and other

closure accretion and

depreciation

4,025 2,134 5,406 3,560 2,655 2,137

Leases & other 6,059 34,000 1,540 2,769 258 156

All-in sustaining cost 460,104 469,999 140,939 54,601 126,928 68,516

AISC per pound ($/lb) 3.28 3.28 3.75 5.92 4.18 0.91

Six months ended June 30, 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 71,917 — 19,236 6,594 14,201 25,986

Pounds (000s) 158,550 — 42,408 14,537 31,308 57,289

Production costs

822,962

Less: Royalties and other (20,055)

802,907

Deduct: By-product credits (279,601)

Add: Treatment and refining 69,129

Cash cost 345,212 — 107,669 30,630 84,163 24,761 592,435

Cash cost per pound ($/lb) 2.18 — 2.54 2.11 2.69 0.43

Add: Sustaining capital 214,103 — 35,717 10,664 47,194 30,462

Royalties — — 4,252 10,606 1,813 —

Reclamation and other

closure accretion and

depreciation

4,751 — 3,648 5,969 2,620 1,800

Leases & other 6,797 — 2,137 1,644 306 202

All-in sustaining cost 570,863 — 153,423 59,513 136,096 57,225

AISC per pound ($/lb) 3.60 — 3.62 4.09 4.35 1.00

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