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Beskrivning
| Land | Kanada |
|---|---|
| Lista | Large Cap Stockholm |
| Sektor | Råvaror |
| Industri | Gruvdrift & metaller |
VANCOUVER, BC, May 7, 2025 /CNW/ - (TSX: LUN; Nasdaq Stockholm: LUMI) Lundin Mining Corporation ("Lundin Mining" or the "Company") today reported its first quarter 2025 financial results. Unless otherwise stated, results are presented in United States dollars on a 100% basis.
Jack Lundin, President and CEO commented, "In the quarter we produced 76,774 tonnes of copper and 31,849 ounces of gold, keeping us firmly on track to achieve our annual guidance. Higher realized gold prices and solid operating performance drove nearly $1 billion in revenue, alongside $388 million in adjusted EBITDA from continuing operations and $337 million in adjusted operating cash flow from continuing operations. Our consolidated copper cash costs came in at $2.07 per pound, within the lower end of our guidance range, demonstrating our continued focus on cost discipline.
"Beyond operations, we completed several key strategic initiatives, including the $1.4 billion sale of our European assets on April 16th, which has meaningfully strengthened our balance sheet. We also introduced a new shareholder distribution policy that targets $220 million in annual shareholder returns.
"In January we finalized the joint acquisition of Filo Corp. with our partner BHP to form Vicuña Corp., and earlier this week we announced the combined Mineral Resource estimate for the Filo del Sol and Josemaria deposits collectively, the Vicuña project, demonstrating a significant future growth opportunity for the Company. This quarter reflects the strength of our strategy and positions us well for the year ahead."
First Quarter Operational and Financial Highlights
On April 16, 2025, the Company closed the sale of its European assets, Zinkgruvan and Neves-Corvo, to Boliden for cash consideration of $1,402 million. The financial results from these assets are reported as "discontinued operations" in the Company's financial statements.
- Copper Production: Production of 76,774 tonnes of copper in the first quarter from continuing operations.
- Other Production: During the quarter, 32,000 ounces of gold and 2,296 tonnes of nickel were produced.
- Revenue: $963.9 million in the first quarter from continuing operations with a realized copper price1 of $4.63 /lb and a realized gold price1 of $3,349 /oz.
- Net Earnings and Adjusted Earnings1: During the quarter, net earnings from continuing operations attributable to shareholders of the Company was $138.1 million ($0.16 per share) and adjusted earnings from continuing operations was $93.9 million ($0.11 per share).
- Adjusted EBITDA1: $387.9 million was generated from continuing operations for the quarter.
- Cash Generation: Cash provided by continuing operations was $122.3 million and free cash flow from operations - continuing operations1 was $21.6 million, which was impacted by lower operating cash flow as a result of a $214.7 million negative change in working capital during the quarter.
- Growth: The Company completed several significant initiatives that redefined its asset portfolio and positioned the Company for long-term growth:
- During the quarter the Company completed the joint acquisition of Filo Corp. with BHP and formed the 50/50 joint arrangement, Vicuña Corp. ("Vicuña"), to hold the Filo del Sol project and the Josemaria project.
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- The Company entered into an exclusivity agreement with Talon Metals Corp. on March 5, 2025 to acquire a highly prospective exploration project ("Boulderdash") adjacent to the Company's Eagle Mine.
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- During the quarter Lundin Mining announced a new shareholder distribution policy that provides an annual return of approximately $220 million per year to shareholders through a combination of dividends and share buybacks.
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- On April 16, 2025 Lundin Mining completed the sale of Neves-Corvo and Zinkgruvan to Boliden for cash proceeds of $1,402 million and subsequently paid off its term loan of $1,150 million.
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- On May 4, 2025 the Company announced an initial Mineral Resource estimate for the Filo del Sol sulphide deposit, an update to the Mineral Resource estimate for the Filo del Sol oxide deposit and an update to the Mineral Resource estimate for the Josemaria deposit, which highlighted the combined Vicuña project as one of the largest copper, gold and silver resources in the world.
- Outlook: The Company reaffirms it is tracking to full year guidance for production, cash costs and capital expenditures. The Company continues to benefit from stronger throughput at Candelaria and Caserones, while higher gold prices have improved cash costs which are expected to continue into the second quarter.
- Assets and liabilities held for sale and discontinued operations: All assets and liabilities relating to the Neves-Corvo and Zinkgruvan reporting segments have been classified as current assets and current liabilities held for sale as at March 31, 2025. The operating results of these segments have been classified as earnings (loss) from discontinued operations.
Total assets of $1,442.2 million and liabilities of $407.2 million have been classified as held for sale for this purpose. Net loss from discontinued operations of $13.8 million represents the net loss of $39.3 million and the net earnings of $25.5 million from Neves-Corvo and Zinkgruvan, respectively, for the quarter ended March 31, 2025.
Summary Financial Results
| Three months ended March 31, | ||
| (US$ millions continuing operations except where noted, except per share amounts) | 2025 | 2024 |
| Revenue | 963.9 | 812.3 |
| Gross profit | 308.9 | 197.5 |
| Attributable net earningsa | 138.1 | 38.3 |
| Net earnings | 181.4 | 83.0 |
| Adjusted earningsa,b (all operations) | 146.2 | 45.2 |
| Adjusted earningsa,b - continuing operations | 93.9 | 56.4 |
| Adjusted earnings (loss)a,b - discontinued operations | 52.2 | (11.1) |
| Adjusted EBITDAb (all operations) | 450.8 | 362.9 |
| Adjusted EBITDAb - continuing operations | 387.9 | 338.5 |
| Adjusted EBITDAb - discontinued operations | 62.8 | 24.4 |
| Basic and diluted earnings per share ("EPS")a (all operations) | 0.15 | 0.02 |
| Basic and diluted earnings per share ("EPS")a - continuing operations | 0.16 | 0.05 |
| Basic and diluted loss per share ("EPS")a - discontinued operations | (0.02) | (0.03) |
| Adjusted EPSa,b (all operations) | 0.17 | 0.06 |
| Adjusted EPSa,b - continuing operations | 0.11 | 0.07 |
| Adjusted EPSa,b - discontinued operations | 0.06 | (0.01) |
| Cash provided by operating activities (all operations) | 177.0 | 267.5 |
| Cash provided by operating activities - continuing operations | 122.3 | 232.2 |
| Cash provided by operating activities - discontinued operations | 54.7 | 35.4 |
| Adjusted operating cash flowb (all operations) | 392.8 | 313.7 |
| Adjusted operating cash flowb - continuing operations | 337.0 | 294.0 |
| Adjusted operating cash flowb - discontinued operations | 55.8 | 19.7 |
| Adjusted operating cash flow per shareb (all operations) | 0.46 | 0.41 |
| Adjusted operating cash flow per shareb - continuing operations | 0.40 | 0.38 |
| Adjusted operating cash flow per shareb - discontinued operations | 0.07 | 0.03 |
| Free cash flowb (all operations) | (47.5) | (1.7) |
| Free cash flowb - continuing operations | (53.1) | (0.3) |
| Free cash flowb - discontinued operations | 5.6 | (1.4) |
| Free cash flow from operationsb (all operations) | 32.0 | 67.7 |
| Free cash flow from operationsb - continuing operations | 21.6 | 66.5 |
| Free cash flow from operationsb- discontinued operations | 10.4 | 1.2 |
| Cash and cash equivalents | 341.6 | 365.5 |
| Net debt excluding lease liabilitiesb | (1,441.7) | (981.4) |
| Net debtb | (1,699.3) | (1,241.9) |
| a Attributable to shareholders of Lundin Mining Corporation. | ||
| b 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 quarter ended March 31, 2025 and the Reconciliation of Non-GAAP Measures section at the end of this news release. | ||
- For the quarter ended March 31, 2025, the Company generated revenue from continuing operations of $963.9 million (Q1 2024 - $812.3 million) and from discontinued operations of $180.1 million (Q1 2024 - $124.7 million).
- Gross profit from continuing operations for the quarter of $308.9 million was $111.5 million higher than in the prior year comparable period of $197.5 million. The increase was primarily due to higher realized copper and gold prices, lower treatment charges, and favourable foreign exchange. Gross profit from discontinued operations for the quarter of $69.9 million increased from a gross loss of $12.1 million in the prior year comparable period primarily due to no depreciation being taken on assets classified as held for sale.
- Net earnings from continuing operations for the quarter of $181.4 million increased from the prior year comparable period of $83.0 million primarily due to an increase in gross profit. Net loss from discontinued operations for the quarter of $13.8 million (Q1 2024 - net loss of $24.4 million) primarily resulted from the Euro strengthening in the quarter, resulting in a non-cash impairment of $65.7 million net of tax (Q1 2024 - nil) to reduce the carrying value of Neves-Corvo to the cash proceeds subsequently received for this asset. This loss was partially offset by increased gross profit from discontinued operations.
- Adjusted earnings from continuing operations for the quarter of $93.9 million, increased from the prior year comparable period of $56.4 million as a result of higher gross profit.
- Cash provided by operating activities related to continuing operations for the quarter of $122.3 million represented a decrease of $109.8 million from the prior year comparable period of $232.2 million. The decrease was primarily due to negative working capital outflows of $214.7 million (Q1 2024 - $61.8 million) including a buildup of trade receivables from shipments toward the end of the quarter and the recognition of $45.0 million of revenue at Caserones for shipments in early January for which payment had been received in December 2024. The shipments of copper concentrate were delayed due to certain operational and weather-related issues. Cash provided by operating activities related to discontinued operations for the quarter was $54.7 million (Q1 2024 - $35.4 million).
- For the quarter, sustaining capital expenditures1 from continuing operations of $112.6 million were lower than in the prior year comparable period of $176.5 million. The net reduction was primarily due to lower spending at Candelaria from reduced deferred stripping and reduced spending on the Los Diques tailing storage facility. Sustaining capital expenditures, from discontinued operations, related to Neves-Corvo and Zinkgruvan were $27.7 million and $21.3 million , respectively, for the quarter.
- Expansionary capital expenditures1 of $62.9 million for the quarter were higher than $56.0 million in the prior year comparable period as a result of initiatives at Candelaria related to the mine life extension to 2040 under the Environmental Impact Assessment ("2040 EIA"), partially offset by lower allocated spending at the Josemaria Project due to the formation of Vicuña, which completed on January 15, 2025. As of the formation date, 50% of Vicuña's capital expenditures are included in the Company's capital expenditures.
- Free cash flow1 (all operations) for the quarter of negative $(47.5) million was lower than in the prior year comparable period of negative $(1.7) million primarily due to less cash provided by operating activities due to negative changes in working capital, partially offset by lower sustaining capital expenditures. Free cash flow from discontinued operations for the quarter was $5.6 million.
- As at May 7, 2025, the Company had cash of approximately $252.6 million and net debt excluding lease liabilities1 of approximately $279.6 million.
Operational Performance
Total Production
| (Contained metal)a | 2025 | 2024 | ||||
| Q1 | Total | Q4 | Q3 | Q2 | Q1 | |
| Continuing Operations | ||||||
| Copper (t)b | 76,774 | 336,875 | 94,094 | 91,772 | 71,614 | 79,395 |
| Nickel (t) | 2,296 | 7,486 | 1,617 | 893 | 1,721 | 3,255 |
| Gold (koz)b | 32 | 158 | 46 | 47 | 32 | 33 |
| Molybdenum (t)b | 602 | 3,183 | 912 | 693 | 714 | 864 |
| Discontinued Operations | ||||||
| Copper (t) | 7,094 | 32,192 | 7,397 | 8,083 | 8,094 | 8,618 |
| Zinc (t) | 48,948 | 191,704 | 51,946 | 46,610 | 47,460 | 45,688 |
| a - Tonnes (t) and thousands of ounces (koz). | ||||||
| b - Candelaria and Caserones production are on a 100% basis. | ||||||
Candelaria (80% owned): Candelaria produced 37,071 tonnes of copper and approximately 21,000 ounces of gold in concentrate on a 100% basis during the quarter. Production in the quarter was positively impacted by increased throughput as a result of higher than anticipated ore softness in sections of Phase 11 in the open pit. The majority of the material processed was from Phase 11, together with material from Phase 12 and long-term stockpiles. Cash cost2 of $1.75/lb was positively impacted by favorable by-product credits driven primarily by higher metal prices.
Caserones (70% owned): Caserones produced 28,709 tonnes of total copper and 602 tonnes of molybdenum on a 100% basis during the quarter. Production was positively impacted by higher throughput in the mill as a result of operational efficiencies that mitigated lower than anticipated grades due to sequencing. Revenue and production costs increased as a result of higher sales volumes as two shipments delayed from December 2024 were completed in the quarter. Cash cost of $2.52/lb in the quarter was impacted by higher contractor and maintenance costs.
Chapada (100% owned): Chapada produced 8,909 tonnes of copper and approximately 11,000 ounces of gold in concentrate during the quarter. Both metals were impacted by lower recoveries as a result of increased processing of ore from the older low-grade stockpile. Production costs were reduced by lower sales volumes and favourable foreign exchange. Cash cost of $1.47/lb also benefitted from favourable foreign exchange, combined with higher gold by-product credits.
Eagle (100% owned): Eagle produced 2,296 tonnes of nickel and 2,085 tonnes of copper in the quarter. Production was impacted by lower grades than anticipated at the beginning of the quarter and winter weather which affected ore haulage. Ramp rehabilitation was completed during the quarter, and normal levels of production are expected for the remainder of the year. Production costs were reduced primarily by lower sales volumes. Nickel cash cost of $3.94/lb was positively impacted by lower mining costs. During the quarter, the Company entered into an exclusivity agreement with Talon Metals Corp. ("Talon") to negotiate an earn-in agreement for the right to acquire up to a 70% ownership interest in the Boulderdash property that is near Eagle.
Neves-Corvo (100% owned): Neves-Corvo produced 6,123 tonnes of copper and 27,691 tonnes of zinc during the quarter. Cash cost during the quarter was $1.69/lb.
Zinkgruvan (100% owned): Zinkgruvan produced 21,257 tonnes of zinc and 7,586 tonnes of lead in the quarter. Zinc cash cost during the quarter was $0.40/lb.
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1 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 quarter ended March 31, 2025 and the Reconciliation of Non-GAAP measures section at the end of this news release.
2 This is a non-GAAP measure. 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 quarter ended March 31, 2025 and the Reconciliation of Non-GAAP measures section at the end of this news release.
Outlook
The Company reaffirms its guidance for production, cash costs, capital expenditures, and exploration that was released on January 16, 2025. In regard to operations, the Company expects that all of its sites will meet their respective guidance ranges as published.
At Candelaria, softer ore is expected to continue into the second quarter which will benefit throughput in the mill as seen in this quarter. The Company expects cash costs in the second quarter to be in line with the first quarter, benefiting from a higher gold price.
At Caserones, the performance of the mill, together with expected grade increases and strong cathode production are expected to sustain the Company's annual production guidance for 2025.
At Chapada, production is second half of the year weighted, copper grades and recoveries are expected to increase during this period. Sequencing of the mine plan forecasts processing less lower-grade stockpile and more fresh ore.
At Eagle, it is expected that mine sequencing and grades will normalize during Q2 which supports maintaining the Company's annual production guidance. Additionally, mining at the Eagle deposit is expected to be completed towards the end of the year and higher grade ore from Eagle East will be sourced.
See below for the 2025 Guidance as released on January 16, 2025:
2025 Production and Cash Cost Guidancea
| Guidance | ||||
| (contained metal) | Production | Cash Cost ($/lb)b | ||
| Copper (t) | Candelaria (100%) | 140,000 - 150,000 | 1.80 - 2.00c | |
| Caserones (100%) | 115,000 - 125,000 | 2.40 - 2.60 | ||
| Chapada | 40,000 - 45,000 | 1.80 - 2.00d | ||
| Eagle | 8,000 - 10,000 | |||
| Total | 303,000 - 330,000 | 2.05 - 2.30 | ||
| Gold (koz) | Candelaria (100%) | 78 - 88 | ||
| Chapada | 57 - 62 | |||
| Total | 135 - 150 | |||
| Nickel (t) | Eagle | 8,000 - 11,000 | 3.05 - 3.25 | |
| a. Guidance as outlined in the news release 'Lundin Mining Announces Record Production Results for 2024 and Provides 2025 Guidance' dated January 16, 2025. b. 2025 cash costs are based on various assumptions and estimates, including but not limited to: production volumes, commodity prices (Cu: $4.40/lb, Au: $2,500/oz, Mo: $17.00/lb, Ag: $30.00/oz), foreign exchange rates (USD/CLP:900, USD/BRL:5.50) and operating costs. Cash cost is a non-GAAP measure - see section 'Non-GAAP and Other Performance Measures' of this MD&A for discussion. c. 68% of Candelaria's total gold and silver production are subject to a streaming agreement. Cash costs are calculated based on receipt of approximately $433/oz gold and $4.32/oz silver. d. Chapada's cash cost is calculated on a by-product basis and does not include the effects of its copper stream agreements. Effects of the copper stream agreements are reflected in copper revenue and will impact realized price per pound. | ||||
2025 Capital Expenditure Guidanceb
| ($ millions) | Guidancea | |
| Candelaria (100% basis) | 205 | |
| Caserones (100% basis) | 215 | |
| Chapada | 85 | |
| Eagle | 25 | |
| Total Sustaining | 530 | |
| Expansionary - Candelaria (100% basis) | 50 | |
| Expansionary - Vicuña Joint Arrangement (50% basis) | 155 | |
| Total Capital Expenditures | 735 | |
| a. Guidance as outlined in the news release 'Lundin Mining Announces Record Production Results for 2024 and Provides 2025 Guidance' dated January 16, 2025 b. Sustaining capital expenditure is a supplementary financial measure, and expansionary capital expenditure is a non-GAAP measure - see Section "Non-GAAP and Other Performance Measures" of this MD&A for discussion. | ||
2025 Exploration Investment Guidance
Total exploration expenditure guidance for 2025 is $40 million.
Vicuña
On January 15, 2025, the Company completed the Filo Acquisition and the Joint Arrangement, resulting in the Company indirectly holding a 50% interest in Vicuña Corp., which owns the Josemaria Project in Argentina and the Filo del Sol Project in Argentina and Chile. BHP indirectly owns the remaining 50% interest in Vicuña.
Vicuña will be led by Dave Dicaire, General Manager, Vicuña, former Executive Vice President of the Josemaria Project at Lundin Mining. During the quarter, integration efforts were prioritized, with employees from the Josemaria and Filo del Sol project teams transitioning to Vicuña to ensure continuity and preserve project knowledge. Recruitment for key leadership positions also commenced.
In 2025, work will focus on advancing studies related to the synergies between the Filo del Sol and Josemaria projects, continuing the drilling program, and progressing the development of the Josemaria Project.
Activities at Josemaria during the quarter centered on the ongoing update of the Environmental Impact Assessment ("EIA") and continued advancement of the water program. Fieldwork progressed on the water program, geotechnical studies, and the wetlands biodiversity offset initiatives. In addition, the contract for the construction of the Northern Access Road was awarded, with construction scheduled to begin in mid-2025. Work also continued on a multi-phased development concept pertaining to the Josemaria and Filo del Sol ore bodies. An integrated technical report is targeted to be complete by early 2026.
Government relations activities continued with both the national and provincial governments. In conjunction, discussions on provincial agreements continued to be advanced. A plan for preparation and submission of the Basis Law - Incentive Regime for Large Investments ("RIGI") application was advanced.
Community investment programs were launched with a focus on gender, youth training, cooperative development, and rural livelihoods.
Drilling during the quarter of 16,650 m primarily focused on step-out holes to both the east and west designed to expand the Filo del Sol Mineral Resource. Additionally, an exploration hole in the exploration sector of Cumbre Verde further north was finished at 1,400 m, of which 436 m were drilled in Q1.
On May 4, 2025 the Company announced an initial Mineral Resource estimate for the Filo del Sol sulphide deposit, an update to the Mineral Resource estimate for the Filo del Sol oxide deposit and an update to the Mineral Resource estimate for the Josemaria deposit, which highlighted the combined Vicuña Project as one of the largest copper, gold and silver resources in the world.
During the quarter, the Company spent $42.7 million in capital expenditures compared to $56.0 million in the prior year comparable period. Reduced spending was primarily due to capital expenditures for the Josemaria Project being recorded in Vicuña at the Company's 50% attributable share compared to 100% in the prior year comparable period.
Senior Leadership Appointment
The Company would also like to announce the executive appointment of Vlada Cvijetinovic as Vice President, Legal & Corporate Secretary.
Vlada Cvijetinovic
Mr. Cvijetinovic is Vice President, Legal & Corporate Secretary and is responsible for advising on legal and regulatory matters and leading Board operations and the Company's corporate governance framework. He is an experienced legal executive with over 10 years of experience in corporate and securities laws, corporate governance and strategic transactions.
Prior to joining Lundin Mining, Mr. Cvijetinovic was General Counsel at Hyperion Resource Partners, and previously held senior leadership roles with Lithium Argentina, Newcrest Mining Limited and Pretium Resources Inc.
Mr. Cvijetinovic holds a Bachelor's degree in Commerce and a Juris Doctor, both from the University of British Columbia.
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 May 7, 2025 at 15:35 Vancouver Time.
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 Cole Mooney, Director, Resource Geology at Lundin Mining, a "Qualified Person" under NI 43-101. Mr. Mooney 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 months ended March 31, 2025 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 March 31, 2025 | ||||||
| Continuing Operations | Candelaria | Caserones | Chapada | Consolidated | Eagle | Total - continuing operations1 |
| ($000s, unless otherwise noted) | (Cu) | (Cu) | (Cu) | (Cu) | (Ni) | |
| Sales volumes (Contained metal): | ||||||
| Tonnes | 34,974 | 36,181 | 8,346 | 79,501 | 1,748 | |
| Pounds (000s) | 77,104 | 79,765 | 18,400 | 175,269 | 3,854 | |
| Production costs | 172,100 | 243,943 | 63,501 | 479,544 | 37,120 | 516,881 |
| Less: Royalties and other | (1,068) | (13,642) | (5,035) | (19,745) | (5,146) | (25,108) |
| 171,032 | 230,301 | 58,466 | 459,799 | 31,974 | 491,773 | |
| Deduct: By-product credits | (43,584) | (36,640) | (34,343) | (114,567) | (16,812) | (131,379) |
| Add: Treatment and refining | 7,210 | 7,250 | 2,959 | 17,419 | 5 | 17,424 |
| Cash cost | 134,658 | 200,911 | 27,082 | 362,651 | 15,167 | 377,818 |
| Cash cost per pound ($/lb) | 1.75 | 2.52 | 1.47 | 2.07 | 3.94 | |
| Add: Sustaining capital | 47,713 | 38,196 | 22,182 | 4,450 | ||
| Royalties | 3,489 | 9,892 | 2,059 | 2,255 | ||
| Reclamation and other closure accretion and depreciation | 2,158 | 1,264 | 1,689 | 1,170 | ||
| Leases & other | 1,455 | 17,586 | 1,050 | 846 | ||
| All-in sustaining cost | 189,473 | 267,849 | 54,062 | 23,888 | ||
| AISC per pound ($/lb) | 2.46 | 3.36 | 2.94 | 6.20 | ||
| 1 Includes immaterial amounts related to other segments. | ||||||
| Three months ended March 31, 2025 | ||||||
| Discontinued Operations | Neves-Corvo | Zinkgruvan | Total - discontinued operations | |||
| ($000s, unless otherwise noted) | (Cu) | (Zn) | ||||
| Sales volumes (Contained metal): | ||||||
| Tonnes | 5,351 | 19,150 | ||||
| Pounds (000s) | 11,797 | 42,218 | ||||
| Production costs | 75,910 | 34,249 | 110,159 | |||
| Less: Royalties and other | (1,082) | - | (1,082) | |||
| 74,828 | 34,249 | 109,077 | ||||
| Deduct: By-product credits | (59,511) | (24,100) | (83,611) | |||
| Add: Treatment and refining | 4,604 | 6,606 | 11,210 | |||
| Cash cost | 19,921 | 16,755 | 36,676 | |||
| Cash cost per pound ($/lb) | 1.69 | 0.40 | ||||
| Add: Sustaining capital | 27,739 | 21,318 | ||||
| Royalties | 1,019 | - | ||||
| Reclamation and other closure accretion and depreciation | 584 | 259 | ||||
| Leases & other | 870 | 35 | ||||
| All-in sustaining cost | 50,133 | 38,367 | ||||
| AISC per pound ($/lb) | 4.25 | 0.91 | ||||
| Three months ended March 31, 2024 | ||||||
| Continuing Operations | Candelaria | Caserones | Chapada | Consolidated | Eagle | Total - continuing operations1 |
| ($000s, unless otherwise noted) | (Cu) | (Cu) | (Cu) | (Cu) | (Ni) | |
| Sales volumes (Contained metal): | ||||||
| Tonnes | 33,536 | 35,211 | 8,742 | 77,489 | 2,163 | |
| Pounds (000s) | 73,934 | 77,627 | 19,273 | 170,834 | 4,769 | |
| Production costs | 161,250 | 197,655 | 64,585 | 423,490 | 40,536 | 465,347 |
| Less: Royalties and other | (2,486) | (8,803) | (3,187) | (14,476) | (2,838) | (18,635) |
| 158,764 | 188,852 | 61,398 | 409,014 | 37,698 | 446,712 | |
| Deduct: By-product credits | (34,594) | (34,854) | (27,383) | (96,831) | (18,430) | (115,261) |
| Add: Treatment and refining | 15,320 | 12,441 | 4,720 | 32,481 | (19) | 32,462 |
| Cash cost | 139,490 | 166,439 | 38,735 | 344,664 | 19,249 | 363,913 |
| Cash cost per pound ($/lb) | 1.89 | 2.14 | 2.01 | 2.02 | 4.04 | |
| Add: Sustaining capital | 99,532 | 42,754 | 29,199 | 4,078 | ||
| Royalties | 2,968 | 8,814 | 1,617 | 2,678 | ||
| Reclamation and other closure | 2,167 | 1,040 | 2,679 | 1,968 | ||
| Leases & other | 3,033 | 15,381 | 765 | 1,236 | ||
| All-in sustaining cost | 247,190 | 234,428 | 72,995 | 29,209 | ||
| AISC per pound ($/lb) | 3.34 | 3.02 | 3.79 | 6.12 | ||
| 1 Includes immaterial amounts related to other segments. | ||||||
| Three months ended March 31, 2024 | ||||||
| Discontinued Operations | Neves-Corvo | Zinkgruvan | Total - discontinued operations | |||
| ($000s, unless otherwise noted) | (Cu) | (Zn) | ||||
| Sales volumes (Contained metal): | ||||||
| Tonnes | 5,886 | 15,825 | ||||
| Pounds (000s) | 12,976 | 34,888 | ||||
| Production costs | 71,712 | 30,075 | 101,787 | |||
| Less: Royalties and other | (1,335) | - | (1,335) | |||
| 70,377 | 30,075 | 100,452 | ||||
| Deduct: By-product credits | (33,899) | (16,148) | (50,047) | |||
| Add: Treatment and refining charges | 5,579 | 8,910 | 14,489 | |||
| Cash cost | 42,057 | 22,837 | 64,894 | |||
| Cash cost per pound ($/lb) | 3.24 | 0.65 | ||||
| Add: Sustaining capital expenditure | 22,413 | 14,341 | ||||
| Royalties | 735 | - | ||||
| Reclamation and other closure accretion and depreciation | 1,335 | 1,186 | ||||
| Leases and other | 64 | 78 | ||||
| All-in sustaining cost | 66,604 | 38,442 | ||||
| AISC per pound ($/lb) | 5.13 | 1.10 | ||||
Adjusted EBITDA can be reconciled to Net Earnings (Loss) as follows:
| Three months ended March 31, | ||
| ($thousands) | 2025 | 2024 |
| Net earnings (loss) - continuing operations | 181,365 | 82,950 |
| Add back: | ||
| Depreciation, depletion and amortization | 138,059 | 149,463 |
| Finance costs, net | 43,942 | 33,285 |
| Income taxes expense | 50,745 | 56,681 |
| EBITDA - continuing operations | 414,111 | 322,379 |
| Unrealized foreign exchange loss (gain) | 9,314 | (14,842) |
| Unrealized losses (gains) on derivative contracts | (35,954) | 33,902 |
| Ojos del Salado sinkhole expenses (recoveries) | 1,071 | (1,031) |
| Revaluation loss (gain) on marketable securities | 462 | (2,430) |
| Gain on partial disposal and contribution to Vicuña | (3,024) | - |
| Other | 1,930 | 482 |
| Total adjustments - EBITDA | (26,201) | 16,081 |
| Adjusted EBITDA - continuing operations | 387,910 | 338,460 |
| Including discontinued operations: | ||
| Net earnings (loss) - discontinued operations | (13,769) | (24,395) |
| Add back: | ||
| Depreciation, depletion and amortization | - | 35,029 |
| Finance costs, net | 4,341 | 2,409 |
| Income taxes expense | 6,524 | (6,115) |
| EBITDA - discontinued operations | (2,904) | 6,928 |
| Unrealized foreign exchange loss (gain) | (925) | (658) |
| Unrealized losses (gains) on derivative contracts | (66) | 18,930 |
| Asset Impairment | 65,688 | - |
| Other | 1,054 | (804) |
| Total adjustments - EBITDA discontinued operations | 65,751 | 17,468 |
| Adjusted EBITDA - discontinued operations | 62,847 | 24,396 |
| Adjusted EBITDA (all operations) | 450,757 | 362,856 |
Adjusted Earnings and Adjusted EPS can be reconciled to Net Earnings (Loss) Attributable to Lundin Mining Shareholders as follows:
| Three months ended March 31, | ||
| ($thousands, except share and per share amounts) | 2025 | 2024 |
| Net (loss) earnings attributable to Lundin Mining shareholders - continuing operations | 138,106 | 38,278 |
| Add back: | ||
| Total adjustments - EBITDA | (26,201) | 16,081 |
| Tax effect on adjustments | (4,681) | 2,439 |
| Deferred tax arising from foreign exchange translation | (21,217) | (6,300) |
| Deferred tax arising from partial disposal and contribution to Vicuña | 8,965 | - |
| Non-controlling interest on adjustments | (1,046) | 5,852 |
| Total adjustments | (44,180) | 18,072 |
| Adjusted earnings - continuing operations | 93,926 | 56,350 |
| Including discontinued operations: | ||
| Net earnings attributable to Lundin Mining shareholders - discontinued operations1 | (13,769) | (24,395) |
| Add back: | ||
| Total adjustments - EBITDA - discontinued operations | 65,751 | 17,468 |
| Tax effect on adjustments | 266 | (4,206) |
| Total adjustments | 66,017 | 13,262 |
| Adjusted earnings - discontinued operations | 52,248 | (11,133) |
| Adjusted earnings (all operations) | 146,174 | 45,218 |
| Basic weighted average number of shares outstanding | 851,561,392 | 773,048,710 |
| Net (loss) earnings attributable to Lundin Mining shareholders - continuing operations | 0.16 | 0.05 |
| Total adjustments | (0.05) | 0.02 |
| Adjusted EPS - continuing operations | 0.11 | 0.07 |
| Net (loss) earnings attributable to Lundin Mining shareholders - discontinued operations | (0.02) | (0.03) |
| Total adjustments | 0.08 | 0.02 |
| Adjusted EPS - discontinued operations | 0.06 | (0.01) |
| Net (loss) earnings attributable to Lundin Mining shareholders | 0.15 | 0.02 |
| Total adjustments | 0.03 | 0.04 |
| Adjusted EPS (all operations) | 0.17 | 0.06 |
| 1 Represents Net (loss) earnings attributable to Lundin Mining Corporation shareholders less Net earnings from continuing operations attributable to Lundin Mining Corporation shareholders. | ||
Free Cash Flow from Operations and Free Cash Flow can be reconciled to Cash provided by Operating Activities on the Company's Consolidated Statement of Cash Flows as follows:
| Three months ended March 31, | ||
| ($thousands) | 2025 | 2024 |
| Cash provided by operating activities related to continuing operations | 122,335 | 232,176 |
| Sustaining capital expenditures | (112,568) | (176,506) |
| General exploration and business development | 11,831 | 10,864 |
| Free cash flow from operations - continuing operations | 21,598 | 66,534 |
| General exploration and business development | (11,831) | (10,864) |
| Expansionary capital expenditures | (62,883) | (55,981) |
| Free cash flow - continuing operations | (53,116) | (311) |
| Cash provided by operating activities related to discontinued operations | 54,651 | 35,355 |
| Sustaining capital expenditures | (49,057) | (36,754) |
| General exploration and business development | 4,794 | 2,587 |
| Free cash flow from operations - discontinued operations | 10,388 | 1,188 |
| General exploration and business development | (4,794) | (2,587) |
| Expansionary capital expenditures | - | - |
| Free cash flow - discontinued operations | 5,594 | (1,399) |
| Free cash flow from operations (all operations) | 31,986 | 67,722 |
| Free cash flow (all operations) | (47,522) | (1,710) |
Adjusted Operating Cash Flow and Adjusted Operating Cash Flow per Share can be reconciled to Cash Provided by Operating Activities on the Company's Consolidated Statement of Cash Flows as follows:
| Three months ended March 31, | ||
| ($thousands, except share and per share amounts) | 2025 | 2024 |
| Cash provided by operating activities related to continuing operations | 122,335 | 232,176 |
| Changes in non-cash working capital items | 214,658 | (61,820) |
| Adjusted operating cash flow - continuing operations | 336,993 | 293,996 |
| Cash provided by operating activities related to discontinued operations | 54,651 | 35,355 |
| Changes in non-cash working capital items | 1,119 | (15,685) |
| Adjusted operating cash flow - discontinued operations | 55,770 | 19,670 |
| Adjusted operating cash flow (all operations) | 392,763 | 313,666 |
| Basic weighted average number of shares outstanding | 851,561,392 | 773,048,710 |
| Adjusted operating cash flow per share - continuing operations | $ 0.40 | 0.38 |
| Adjusted operating cash flow per share - discontinued operations | $ 0.07 | 0.03 |
| Adjusted operating cash flow per share (all operations) | $ 0.46 | 0.41 |
Net debt and net debt excluding lease liabilities can be reconciled to Debt and Lease Liabilities, Current Portion of Debt and Lease Liabilities and Cash and Cash Equivalents on the Company's Consolidated Balance Sheets as follows:
| ($ thousands), continuing operations | March 31, 2025 | December 31, 2024 |
| Debt and lease liabilities | (1,757,011) | (1,610,925) |
| Current portion of debt and lease liabilities | (344,440) | (395,232) |
| Less deferred financing fees (netted in above) | (7,091) | (7,656) |
| Add debt and lease liabilities related to liabilities classified as held-for-sale | (16,231) | (16,266) |
| (2,124,773) | (2,030,079) | |
| Cash and cash equivalents | 341,628 | 357,478 |
| Add cash and cash equivalents related to assets classified as held-for-sale | 83,892 | 74,801 |
| Net debt | (1,699,253) | (1,597,800) |
| Lease liabilities | 241,348 | 249,185 |
| Lease liabilities related to liabilities classified as held-for-sale | 16,231 | 16,266 |
| Net debt excluding lease liabilities | (1,441,674) | (1,332,349) |
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; 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, 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 shareholder distribution policy, including with respect to share buybacks and the payment and amount of dividends and the timing thereof; the development 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 integration of acquisitions and expansions and any anticipated benefits thereof, including the anticipated project development and other plans and expectations with respect to the 50/50 joint arrangement with BHP; mineral resource estimation for the Vicuña Project, including the parameters and assumptions related thereto; the Company's plans, prospects and business strategies; the operation of Vicuña with BHP; the realization of synergies and economies of scale in the Vicuña district; the development and future operation of the Vicuña Project; the timing and expectations for the Vicuña technical report and other future studies; the potential for resource expansion; the terms of the contingent payments in respect of the completion of the sale of the Company's European assets and expectations related thereto; the earn-in arrangement in respect of the Boulderdash property, including the entering into of an option agreement in respect thereof and the terms of such option agreement; future actions taken by Talon Metals Corp. and Lundin Mining in relation to the Boulderdash property and the outcomes and 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", "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, gold, zinc, nickel and other metals; anticipated costs; currency exchange rates and interest rates; ability to achieve goals; the prompt and effective integration of acquisitions and the realization of synergies and economies of scale in connection therewith; that the political, economic, permitting and legal environment in which the Company operates will continue to support the development and operation of mining projects; timing and receipt of governmental, regulatory and third party approvals, consents, licenses and permits and their renewals; positive relations with local groups; the accuracy of Mineral Resource estimates and related information, analyses and interpretations; 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, such information is inherently subject to significant business, economic, political, regulatory 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. Such factors include, but are not limited to: dependence on international market prices and demand for the metals that the Company produces; political, economic, and regulatory uncertainty in operating jurisdictions, including but not limited to those related to permitting and approvals, nationalization or expropriation without fair compensation, environmental and tailings management, labour, trade relations, and transportation; operating jurisdictions, including but not limited to those related to permitting and approvals, nationalization or expropriation without fair compensation, environmental and tailings management, labour, trade relations, and transportation; risks relating to mine closure and reclamation obligations; health and safety hazards; inherent risks of mining, not all of which related risk events are insurable; risks relating to tailings and waste management facilities; risks relating to the Company's indebtedness; challenges and conflicts that may arise in partnerships and joint operations; risks relating to development projects, including Filo del Sol and Josemaria; risks that revenue may be significantly impacted in the event of any production stoppages or reputational damage in Chile; the impact of global financial conditions, market volatility and inflation; business interruptions caused by critical infrastructure failures; challenges of effective water management; exposure to greater foreign exchange and capital controls, as well as political, social and economic risks as a result of the Company's operation in emerging markets; risks relating to stakeholder opposition to continued operation, further development, or new development of the Company's projects and mines; any breach or failure information systems; risks relating to reliance on estimates of future production; risks relating to litigation and administrative proceedings which the Company may be subject to from time to time; risks relating to acquisitions or business arrangements; risks relating to competition in the industry; failure to comply with existing or new laws or changes in laws; challenges or defects in title or termination of mining or exploitation concessions; the exclusive jurisdiction of foreign courts; the outbreak of infectious diseases or viruses; risks relating to taxation changes; receipt of and ability to maintain all permits that are required for operation; minor elements contained in concentrate products; changes in the relationship with its employees and contractors; the Company's Mineral Reserves and Mineral Resources which are estimates only; uncertainties relating to inferred Mineral Resources being converted into Measured or Indicated Mineral Resources; payment of dividends in the future; compliance with environmental, health and safety laws and regulations, including changes to such laws or regulations; interests of significant shareholders of the Company; asset values being subject to impairment charges; potential for conflicts of interest and public association with other Lundin Group companies or entities; activist shareholders and proxy solicitation firms; risks associated with climate change; the Company's common shares being subject to dilution; ability to attract and retain highly skilled employees; reliance on key personnel and reporting and oversight systems; reliance on key personnel and reporting and oversight systems; risks relating to the Company's internal controls; counterparty and customer concentration risk; risks associated with the use of derivatives; exchange rate fluctuations; the terms of the contingent payments in respect of the completion of the sale of the Company's European assets and expectations related thereto; the earn-in arrangement in respect of the Boulderdash property, including the entering into of an option agreement in respect thereof and the terms of such option agreement; future actions taken by Talon Metals Corp. and Lundin Mining in relation to the Boulderdash property and the outcomes and anticipated benefits thereof; and other risks and uncertainties, including but not limited to those described in the "Risks and Uncertainties" section of the Company's MD&A for the three months ended March 31, 2024, the "Risks and Uncertainties" section of the Company's MD&A for the year ended December 31, 2024, and the "Risks and Uncertainties" section of the Company's Annual Information Form for the year ended December 31, 2024, which are available on SEDAR+ at www.sedarplus.ca under the Company's profile.
All of the forward-looking information in this document is 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, forecasted or intended and readers are cautioned that the foregoing 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.