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Beskrivning
| Land | Kanada |
|---|---|
| Lista | Large Cap Stockholm |
| Sektor | Råvaror |
| Industri | Gruvdrift & metaller |
VANCOUVER, BC, Feb. 21, 2024 /CNW/ - (TSX: LUN; Nasdaq Stockholm: LUMI) Lundin Mining Corporation ("Lundin Mining" or the "Company") today reported its fourth quarter and full year 2023 financial results. Unless stated otherwise, results are presented on a 100% basis and Caserones results are from July 13, 2023.
Jack Lundin, President and CEO commented, "2023 was a milestone year for the Company. We finished the year generating a record $3.4 billion in revenues and achieved our best-ever quarterly and full year copper production which we forecast to further increase by over 15% in 2024. Our 2023 financial performance was strong with $1.4 billion in adjusted EBITDA[1], $345 million in free cash flow from operations[1] and we returned $206 million to our shareholders in dividends.
"The Company's record copper production was driven by our strategic acquisition of a majority interest in Chile's Caserones copper mine, as well as organically through our expansion project at Neves-Corvo, which also contributed to record fourth quarter zinc production for the Company. Going forward, we will be disciplined in our growth plans and capital allocation as we continue to optimize assets and operational efficiencies to drive down costs.
"At Josemaria, we're derisking the project via optimization and trade-off studies that aim to enhance the overall value of the Project. We are concurrently continuing to explore potential partnership opportunities and actively working towards establishing stability agreements in Argentina."
Fourth Quarter HighlightsCopper Production: Consolidated production of 103,337 tonnes of copper in the fourth quarter, a quarterly record for the Company and an increase of over 80% on the same quarter in the previous year.
Other Production: During the quarter, a total of 50,719 tonnes of zinc, 3,729 tonnes of nickel and approximately 44,000 ounces of gold were produced. The zinc expansion project ("ZEP") at Neves-Corvo contributed to record quarterly zinc volumes being produced.
Revenue: $1,060.0 million in the fourth quarter.
Adjusted EBITDA[1]: $419.7 million generated during the quarter.
Adjusted Earnings[1]: Net earnings attributable to shareholders of the Company were $38.8 million ($0.05 per share) in the fourth quarter with adjusted earnings[ ]of[ ]$79.7 million ($0.10 per share).
Cash Generation: Cash provided by operating activities[1] was $306.1 million and free cash flow from operations was $116.8 million, which included a working capital build of $56.0 million.
- Copper Production: Record copper production of 314,798 tonnes of copper for the full year which is above the midpoint of originally-published[2] 2023 annual copper production guidance.
- Revenue: $3,392.1 million for the full year.
- Adjusted EBITDA: $1,363.5 million generated during the full year.
- Adjusted Earnings: Net earnings attributable to shareholders of the Company were $241.6 million ($0.31 per share) in 2023 and adjusted earnings[ ]of $336.2 million ($0.44 per share).
[_______________________________________
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 year ended December 31, 2023 and the Reconciliation of Non-GAAP measures section at the end of this news release.
- Cash Generation: During the year, cash provided by operating activities[1] was $1,016.6 million and free cash flow from operations[1] amounted to $345.1 million, which included a working capital build of $7.6 million.
- Balance Sheet: To fund the Caserones acquisition, the Company obtained a term loan in July 2023 of a principal amount of $800.0 million with an additional $400.0 million accordion option, maturing July 2026 ("Term Loan"). As at December 31, 2023, the Company had a net debt balance of $946.2 million, excluding lease liabilities.
- Growth: The Company acquired a 51% interest in the Caserones copper mine on July 13, 2023 which added an additional 120,000 to 130,000 tonnes of copper[2] to the Company's production profile on a 100% basis. The acquisition adds another long-life asset in a tier one jurisdiction, which is strategically located in the Vicuña District.
- Leadership: Jack Lundin assumed the role of CEO in the fourth quarter of 2023. During the year several senior leadership changes took place to add financial, technical and operational capacity to the team as the Company's head office relocated to Vancouver.
Summary Financial Results
[][][][][][][][][][][]
Three months Twelve months
ended December endedDecember
31, 31,
US$ Millions 2023 2022 2023 2022
(except
per share
amounts)
Revenue
1,060.0 811.4 3,392.1 3,041.2
Gross profit
188.9 155.2 652.4 762.6
Attributable
net 38.8 145.6 241.6 426.9
earnings[a]
Net earnings
66.8 145.3 315.2 463.5
Adjusted
earnings 79.7 191.5 336.2 482.8
[a,b,c]
Adjusted
EBITDA[b,c] 419.7 353.7 1,363.5 1,292.5
Basic and
diluted 0.05 0.19 0.31 0.56
earnings per
share
("EPS")[1]
Adjusted
EPS[a,b,c] 0.10 0.25 0.44 0.63
Cash provided
by 306.1 156.9 1,016.6 876.9
operating
activities
Adjusted
operating cash 362.0 289.1 1,024.2 992.9
flow[b]
Adjusted
operating cash 0.47 0.38 1.33 1.30
flow per
share[b]
Free cash flow
from 116.8 (35.7) 345.1 381.4
operations[b]
Free cash
flow[b] 61.2 (124.3) 13.5 34.1
Cash and cash
equivalents 268.8 191.4 268.8 191.4
Net (debt)
cash (946.2) 16.3 (946.2) 16.3
excluding
lease
liabilities[b]
Net (debt)
cash[b] (1,223.4) (10.9) (1,223.4) (10.9)
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
year ended
December 31,
2023 and the
Reconciliation
of Non
-GAAP Measures
section
at the end of
this news
release.
c. Q2 2023
amounts have
been adjusted
from
those
presented in
the
Company's MD&A
for the
three and six
months
ended June 30,
2023.
For the year ended December 31, 2023 the Company generated revenue of $3,392.1 million (2022 - $3,041.2 million), gross profit of $652.4 million (2022 - $762.6 million) and adjusted EBITDA of $1,363.5 million (2022 - $1,292.5 million). Financial results include the contribution from the acquisition of the Caserones copper mine ("Caserones") located in Chile, from the closing date of the transaction on July 13, 2023.
Net earnings attributable to shareholders of the Company were $38.8 million ($0.05 per share) in the fourth quarter, and were impacted by higher interest expenses and increased deferred tax on foreign exchange revaluation of non-monetary assets at the Josemaria Project in Argentina.
[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 year ended December 31, 2023 and the Reconciliation of Non-GAAP measures section at the end of this news release.[2 ]Represents Caserones 2024 production guidance as outlined in the news release 'Lundin Mining Provides 2024 Guidance & Announces 2023 Production Results' dated January 14, 2024.
Adjusted earnings[1] attributable to shareholders of the Company for the twelve months ended December 31, 2023 of $336.2 million ($0.44 per share) were $146.6 million lower than the prior year after adjusting for the non-cash revaluation of derivative contracts, fair value adjustments relating to the Caserones acquisition and deferred tax relating to foreign exchange translation and a Chilean mining royalty rate change, among other things.
Cash and cash equivalents as at December 31, 2023 were $268.8 million. Cash provided by operating activities of $1,016.6 million in the year ended December 31, 2023 was used to fund investing activities of $1,674.5 million. Investing activities in the year included $648.6 million net cash paid at closing for the acquisition of Caserones, consisting of $796.6 million upfront cash consideration after adjustments, net of $148 million cash and cash equivalents held by SCM Minera Lumina Copper Chile ("Lumina Copper") at closing on a 100% basis. Cash generated from financing activities was $728.6 million, which was comprised primarily of the proceeds from the Term Loan to finance the Caserones acquisition.
Free cash flow[1] for the three months ended December 31, 2023 of $61.2 million was $185.5 million higher than the prior year comparable period and benefited from the inclusion of Caserones cash flows as well as higher gross profit overall at the operations.
As at February 21, 2024, the Company had a cash balance of approximately $446.7 million and a net debt balance excluding lease liabilities of approximately $851.4 million.
Operational Performance
Total Production
[][][][]
(Contained 2023 2022
metal)[a]
YTD Q4 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1
Copper 314,798 103,337 89,942 60,057 61,462 249,659 56,552 63,930 64,096 65,081
(t)[b]
Zinc (t) 185,161 50,719 49,774 36,115 48,553 158,938 44,308 40,327 41,912 32,391
Nickel (t) 4,686 3,724 17,475 4,096 4,379 4,719 4,281
16,429 3,729 4,290
Gold
(koz)[b] 149 44 35 34 36 154 36 45 39 34
Molybdenum
(t)[b] 2,024 928 1,096 - - - - - - -
a. Tonnes
(t) and
thousands
of ounces
(koz)
b.
Candelaria
and
Caserones
production
is on a
100%
basis.
Caserones
results
are from
July 13,
2023.
Candelaria (80% owned): Candelaria produced, on a 100% basis, 152,012 tonnes of copper, approximately 90,000 ounces of gold and 1.5 million ounces of silver in concentrate during the year. Copper production was consistent with the prior year due to higher throughput being offset by lower grades and recoveries. Gold production was higher than in the prior year due to higher throughput and grades. Both metals were within the most recently disclosed 2023 production guidance ranges. Total production costs were higher than the prior year primarily due to inflationary cost increases and unfavourable foreign exchange. Copper cash cost[1] of $2.07/lb was within the most recently disclosed 2023 cash cost guidance range.
Caserones (51% owned): Caserones produced 65,210 tonnes of copper and 2,024 tonnes of molybdenum on a 100% basis during the year, from the acquisition closing date of July 13, 2023 to the end of the year. Both metals met or exceeded the most recently disclosed 2023 production guidance ranges due to strong throughput, grade and recoveries. Copper cash cost of $1.99/lb was slightly below the low end of the most recently disclosed cash cost guidance range as a result of higher production.
Chapada (100% owned): Chapada produced 45,719 tonnes of copper and approximately 59,000 ounces of gold, with copper production remaining consistent to the prior year and gold production being negatively impacted by lower grade, throughput, and recoveries. Both metals were within the most recently disclosed 2023 production guidance ranges. Total production costs were lower than the prior year due to lower sales volumes. Full year copper cash cost of $2.27/lb was below the low end of the most recently disclosed cash cost guidance.
[_______________________________________]
[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 year ended December 31, 2023 and the Reconciliation of Non-GAAP measures section at the end of this news release.
Eagle (100% owned): Eagle's production of 16,429 tonnes of nickel and 13,600 tonnes of copper were near the higher ends of recently disclosed 2023 production guidance ranges but lower than that in the prior year due to planned lower grades. Total production costs were lower than the prior year due to lower sales volumes. Nickel cash cost[1] of $2.16/lb was within the most recently disclosed 2023 cash cost guidance range but higher than the prior year as a result of lower grade, lower by-product credits and higher repair and maintenance costs.
Neves-Corvo (100% owned): Neves-Corvo produced 33,823 tonnes of copper and 108,812 tonnes of zinc during the year. Zinc production increased significantly from the prior year due to higher throughput as a result of the zinc expansion project ("ZEP"). Copper production also increased due to higher throughput and production of both metals was within the most recently disclosed 2023 production guidance ranges. Total production costs were lower than in the prior year despite higher sales, primarily due to lower input costs, in particular lower electricity and diesel prices, partially offset by unfavourable foreign exchange. Copper cash cost[1] of $2.37/lb for the year exceeded the most recently disclosed 2023 cash cost guidance range and was higher than in the prior year primarily due to lower zinc by-product credits, higher treatment and refining charges, and unfavourable foreign exchange.
Zinkgruvan (100% owned): Zinc production of 76,349 tonnes was consistent with the prior year, but slightly below the most recently disclosed 2023 production guidance range. Installation of a sequential flotation system during the year achieved improved recoveries, but a longer than anticipated ramp-up limited mill availability and reduced recoveries, limiting production of both lead and zinc. Lead production of 26,284 tonnes was also lower than in the prior year. Total production costs and sales volumes were consistent with the prior year and zinc cash cost[1] of $0.43/lb was below the most recently disclosed 2023 cash cost guidance range but higher than in the prior year, primarily due to lower by-product credits.
[_______________________________________]
[1 ]These are non-GAAP measures. Please refer to the Company's discussion of non-GAAP and other performance measures in its Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2023 and the Reconciliation of Non-GAAP measures section at the end of this news release.
Outlook
Production, cash cost, capital expenditures and exploration investment guidance for 2024 remains unchanged from the most recently reported guidance as outlined in the news release 'Lundin Mining Provides 2024 Guidance & Announces 2023 Production Results" dated January 14, 2024.
2024 Production and Cash Cost Guidance
[][][][][][]
Guidance[a]
(contained Production Cash Cost ($/lb)[b]
metal)
Copper (t) Candelaria 160,000 - 1.60 - 1.80[c]
(100%) 170,000
Caserones 120,000 - 2.60 - 2.80
(100%) 130,000
Chapada 43,000 - 1.95 - 2.15[d]
48,000
Eagle 9,000 -
12,000
Neves 30,000 - 1.95 - 2.15[c]
-Corvo 35,000
Zinkgruvan 4,000 -
5,000
Total 366,000 -
400,000
Zinc (t) Neves 120,000 -
-Corvo 130,000
Zinkgruvan 75,000 - 0.45 - 0.50[c]
85,000
Total 195,000 -
215,000
Nickel (t) Eagle 10,000 - 2.80 - 3.00
13,000
Gold (koz) Candelaria 100 - 110
(100%)
Chapada 55 - 60
Total 155 - 170
Molybdenum Caserones 2,500 -
(t) (100%) 3,000
a. Guidance as
outlined in
the news
release
'Lundin Mining
Provides 2024
Guidance &
Announces 2023
Production
Results" dated
January 14,
2024.
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 section
'Non-GAAP and
Other
Performance
Measures' of
the Company's
Management's
Discussion and
Analysis for
the year ended
December 31,
2023 and the
Reconciliation
of Non-GAAP
Measures
section 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 $4.68/oz
silver.
d. Chapada's
cash cost is
calculated on
a by-product
basis and does
not include
the effects of
its copper
stream
agreements.
Effects of the
copper stream
agreements are
reflected in
copper revenue
and will
impact
realized price
per pound.
2024 Capital Expenditure Guidance[a,b]
($ millions)
Candelaria 300
(100% basis)
Caserones 205
(100% basis)
Chapada 110
Eagle 25
Neves-Corvo 125
Zinkgruvan 75
Other -
Total 840
Sustaining
Josemaria 225
(expansionary)
Total Capital 1,065
Expenditures
a. Guidance as
outlined in
the news
release
'Lundin Mining
Provides 2024
Guidance &
Announces 2023
Production
Results" dated
January 14,
2024.
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
the Company's
Management's
Discussion and
Analysis for
the year ended
December 31,
2023 and the
Reconciliation
of Non-GAAP
Measures
section at the
end of this
news release.
2024 Exploration Investment Guidance
Total exploration expenditure guidance for 2024 is $48.0 million.
Exploration: Exploration drilling campaigns are underway at Caserones, Josemaria, Chapada and Zinkgruvan. Drilling at Caserones is targeting the Angelica target and Caserones sulphide deep target with three rigs. Initial holes are underway at Josemaria's Cumbre Verde target, and additional roads are being developed to gain access to higher priority areas. At Chapada, drilling is focused on higher grade corridors within known areas of mineralization that could contribute higher grades to the mine plan. At Zinkgruvan, drilling with six rigs is focused on extending multiple deposits, with the priority on the high-grade Borta Barkom area.
Senior Leadership Appointments
The Company would also like to announce the executive appointments of Patrick Merrin as Executive Vice President, Technical Services and Joel Adams as Vice President, Commercial.
Patrick Merrin
Mr. Merrin was appointed Executive Vice President, Technical Services and brings over 25 years of international experience in mining and metals including 10 years in executive and senior technical, project and operating roles. Mr. Merrin was appointed CEO of Copper Mountain Mining prior to its acquisition in 2024. He has also worked as Senior Vice President Canadian Operations with Newcrest Mining, COO of Mining with the Washington Companies and Senior Vice President of Canadian Operations with Goldcorp. Earlier in his career he also held positions with Hudbay Minerals, Xstrata and Anglo American.
Mr. Merrin holds a Bachelor of Chemical Engineering from McGill University, a Master of Business Administration from the Rotman School of Business at the University of Toronto and is a registered Professional Engineer (Ontario).
Joel Adams
Mr. Adams was appointed Vice President, Commercial and will lead Lundin Mining's commercial strategy. He has more than 15 years of experience as a base metal trader and in logistics management.
Prior to joining Lundin Mining, Joel was a Portfolio Manager with Balyasny Asset Management where he was focused on commodity trading. In addition, Mr. Adams was a senior base metals trader at Trafigura and prior to that held diverse roles within Glencore's base metals business from 2010 to 2020 as a senior member of the copper division in Switzerland.
Joel holds a Bachelor's degree in International Business from the University of Colorado.
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 February 21, 2024 at 15:30 Pacific Standard 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 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 year ended December 31, 2023 which is available on SEDAR+ at www.sedarplus.ca.
Cash Cost per Pound and All-in Sustaining Costs can be reconciled to Production Costs on the Company's Consolidated Statement of Earnings as follows:
Twelve months
ended December
31, 2023
Operations Candelaria Caserones Chapada Eagle Neves-Corvo Zinkgruvan
($000s, unless (Cu) (Cu) (Cu) (Ni) (Cu) (Zn) Total
otherwise
noted)
Sales volumes
(Contained
metal):
Tonnes 144,473 65,344
66,075 43,761 13,339 32,054
Pounds (000s) 318,508 144,059
145,670 96,476 29,407 70,667
Production
costs 2,086,108
Less: Royalties
and other (66,237)
Inventory fair (39,945)
value
adjustment
1,979,926
Deduct: By
-product (699,915)
credits
Add: Treatment
and refining 183,328
Cash cost 660,160 167,424 62,467
290,553 219,278 63,457 1,463,339
Cash cost per
pound ($/lb) 2.07 1.99 2.27 2.16 2.37 0.43
Add: Sustaining 380,112 102,621 53,358
capital 83,880 72,291 22,201
Royalties - 15,820 8,568 22,994 3,949 -
9,258 3,744
Reclamation and 2,560 7,836 11,331 5,387
other
closure
accretion and
depreciation
Leases 13,325
& 47,944 4,999 4,100 553 427
other
All-in 1,062,855 279,934 119,996
sustaining cost 440,757 312,972 124,083
AISC per pound
($/lb) 3.34 3.03 3.24 4.22 3.96 0.83
[]
Twelve months
ended December
31, 2022
Operations Candelaria Caserones[1] Chapada Eagle Neves-Corvo Zinkgruvan
($000s, unless (Cu) (Cu) (Cu) (Ni) (Cu) (Zn) Total
otherwise
noted)
Sales volumes
(Contained
metal):
Tonnes 147,251 65,684
- 45,563 14,427 31,592
Pounds (000s) 324,633 144,808
- 100,449 31,806 69,648
Production
costs 1,661,358
Less: Royalties
and other (53,785)
1,607,573
Deduct: By
-product (656,534)
Add: Treatment
and refining 124,841
Cash cost 637,486 45,637
- 209,238 25,168 158,351 1,075,880
Cash cost per
pound ($/lb) 1.96 - 2.08 0.79 2.27 0.32
Add: Sustaining 389,731 48,144
capital - 104,711 16,413 71,222
Royalties - - 12,298 33,281 4,169 -
8,001 3,937
Reclamation and - 7,388 18,512 1,562
other
closure
accretion and
depreciation
Leases 11,313
& - 3,988 2,404 1,404 665
other
All-in 1,046,531 98,383
sustaining cost - 337,623 95,778 236,708
AISC per pound
($/lb) 3.22 - 3.36 3.01 3.40 0.68
[1] Caserones results are from July 13, 2023 to December 31, 2023.
Three months
ended December
31, 2023
Operations Candelaria Caserones Chapada Eagle Neves-Corvo Zinkgruvan
($000s, unless (Cu) (Cu) (Cu) (Ni) (Cu) (Zn) Total
otherwise
noted)
Sales volumes
(Contained
metal):
Tonnes 38,888 17,316
35,690 13,080 3,105 9,054
Pounds (000s) 85,733 38,176
78,683 28,836 6,845 19,961
Production
costs 648,037
Less: Royalties
and other (24,520)
Inventory fair
value (7,760)
adjustment
615,757
Deduct: By
-product (204,164)
Add: Treatment
and refining 57,938
Cash cost 152,276 24,013
183,687 54,108 16,229 39,218 469,531
Cash cost per
pound 1.78 2.33 1.88 2.37 1.96 0.63
Add: Sustaining 79,316 10,546
capital 55,031 19,858 6,548 28,070
Royalties - 8,270 2,174 5,003 1,081 -
2,158
Reclamation and 1,427 2,047 2,620 1,305 933
other
closure
accretion and
depreciation
Leases 2,901
& 25,715 1,131 1,101 106 103
other
All-in 236,651 35,595
sustaining cost 274,130 79,318 31,501 69,780
AISC per pound
($/lb) 2.76 3.48 2.75 4.60 3.50 0.93
Three months
ended December
31, 2022
Operations Candelaria Caserones Chapada Eagle Neves-Corvo Zinkgruvan
($000s, unless (Cu) (Cu) (Cu) (Ni) (Cu) (Zn) Total
otherwise
noted)
Sales volumes
(Contained
metal):
Tonnes 33,561 17,635
- 12,037 3,239 6,351
Pounds (000s) 73,990 38,878
- 26,537 7,141 14,001
Production
costs 450,927
Less: Royalties
and other (15,664)
435,263
Deduct: By
-product (168,620)
Add: Treatment
and refining 33,897
Cash cost 186,628 12,499
- 51,782 17,169 32,462 300,540
Cash cost per
pound 2.52 - 1.95 2.40 2.32 0.32
Add: Sustaining 117,174 16,607
capital - 41,299 5,968 22,086
Royalties - - 3,137 9,152 3,185 -
1,999
Reclamation and - 1,855 4,403 481 902
other
closure
accretion and
depreciation
Leases 4,360
& - 932 638 835 118
other
All-in 310,161 30,126
sustaining cost - 99,005 37,330 59,049
AISC per pound
($/lb) 4.19 - 3.73 5.23 4.22 0.77
Adjusted EBITDA can be reconciled to Net Earnings on the Company's Consolidated Statement of Earnings as follows:
Three months ended Twelve months ended
December 31, December 31,
($thousands) 2023 2022 2023 2022
Net earnings 66,753 145,295 315,249 463,533
Add back:
Depreciation, depletion and 223,056 142,710 653,596 554,750
amortization
Finance income and costs 34,891 16,664 102,699 64,185
Income taxes 102,616 (2,347) 216,599 134,628
427,316 302,322 1,288,143 1,217,096
Unrealized foreign exchange 2,769 (3,836) 1,224 21,164
loss
Unrealized losses (gains) on (19,309) (62,971) 21,932 (62,971)
derivative contracts
Ojos del Salado sinkhole 1,687 55,482 16,922 63,271
expenses
Loss (income) from equity (3,297)
investment - - 60
in associates
Caserones inventory fair value 7,760 39,945
adjustment - -
Ore stockpile inventory write 62,546 62,546
-down - -
Gain on disposal of subsidiary (5,718) (16,828)
- -
Other 1,040 11,525
(493) 173
Total adjustments - EBITDA (7,586) 51,394 75,405 75,410
Adjusted EBITDA 419,730 353,716 1,363,548 1,292,506
Adjusted earnings and adjusted earnings per share can be reconciled to Net Earnings Attributable to Lundin Mining Shareholders on the Company's Consolidated Statement of Earnings as follows:
Three months Twelve months
ended ended
December 31, December 31,
($thousands, except share 2023 2022 2023 2022
and per
share amounts)
Net earnings attributable to 145,562 426,851
Lundin 38,797 241,562
Mining shareholders
Add back:
Total adjustments - EBITDA 51,394 75,410
(7,586) 75,405
Tax effect on adjustments 8,214
(2,987) (26,925) (797)
Deferred tax expense due to
change 14,500 - 40,200 -
in tax rate
Deferred tax arising from (14,469) (20,733)
foreign 41,168 28,841
exchange translation
Non-controlling interest on 2,026
adjustments (4,221) 829 (22,886)
Total adjustments 45,967 55,906
40,874 94,635
Adjusted earnings 191,529 482,757
79,671 336,197
Basic weighted average 773,476,216 770,804,446 772,532,260 762,518,753
number of
shares outstanding
Net earnings attributable to
shareholders 0.05 0.19 0.31 0.56
Total adjustments
0.05 0.06 0.13 0.07
Adjusted earnings per share
0.10 0.25 0.44 0.63
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 Earnings as follows:
Three Twelve
months months
ended ended
December December
31, 31,
($thousands) 2023 2022 2023 2022
Cash provided by
operating activities 306,081 156,890 1,016,612 876,889
Sustaining capital
expenditures (203,827) (204,686) (727,224) (639,831)
General exploration
and business 14,500 12,094 55,692 144,353
development
Free cash flow from
operations 116,754 (35,702) 345,080 381,411
General exploration
and business (14,500) (12,094) (55,692) (144,353)
development
Expansionary capital
expenditures (41,082) (76,485) (275,913) (202,993)
Free cash flow
61,172 (124,281) 13,475 34,065
Adjusted Operating Cash Flow and Adjusted Operating Cash Flow per Share can be reconciled to Cash Provided by Operating Activities on the Company's Consolidated Statement of Earnings as follows:
Three months Twelve months
ended ended
December 31, December 31,
($thousands, except share and per share 2023 2022 2023 2022
amounts)
Cash provided by operating activities 1,016,612
306,081 156,890 876,889
Changes in non-cash working capital items
55,965 132,167 7,605 116,056
Adjusted operating cash flow 1,024,217
362,046 289,057 992,945
Basic weighted average number of shares 773,476,216 770,804,446 772,532,260 762,518,753
outstanding
Adjusted operating cash flow per share $
0.47 0.38 1.33 1.30
Net (debt) cash and Net (debt) cash 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 Statement of Earnings as follows:
($thousands) December 31, 2023 December 31, 2022
Debt and lease liabilities (1,273,162) (27,179)
Current portion of total debt (212,646) (170,149)
and lease liabilities
Less deferred financing fees (6,374) (4,926)
(netted in above)
(1,492,182) (202,254)
Cash and cash equivalents 268,793 191,387
Net (debt) cash (1,223,389) (10,867)
Lease liabilities 277,208 27,166
Net (debt) cash excluding (946,181) 16,299
lease liabilities
Cautionary Statement on Forward-Looking Information
Certain of the statements made and information contained herein is "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, 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 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 any 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 statements.
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, nickel, zinc, gold and other metals; anticipated costs; ability to achieve goals; the prompt and effective integration of acquisitions; that the political environment in which the Company operates will continue to support the development and operation of mining projects; and assumptions related to the factors set forth below. While these factors and assumptions are considered reasonable by Lundin Mining as at the date of this document in light of management's experience and perception of current conditions and expected developments, these statements are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements and undue reliance should not be placed on such statements and information. Such factors include, but are not limited to: global financial conditions, market volatility and inflation, including pricing and availability of key supplies and services; risks inherent in mining including but not limited to risks to the environment, industrial accidents, catastrophic equipment failures, unusual or unexpected geological formations or unstable ground conditions, and natural phenomena such as earthquakes, flooding or unusually severe weather; uninsurable risks; volatility and fluctuations in metal and commodity demand and prices; significant reliance on assets in Chile; reputation risks related to negative publicity with respect to the Company or the mining industry in general; delays or the inability to obtain, retain or comply with permits; risks relating to the development of the Josemaria Project; health and safety laws and regulations; risks associated with climate change; risks relating to indebtedness; economic, political and social instability and mining regime changes in the Company's operating jurisdictions, including but not limited to those related to permitting and approvals, nationalization or expropriation without fair compensation, environmental and tailings management, labour, trade relations, and transportation; inability to attract and retain highly skilled employees; risks inherent in and/or associated with operating in foreign countries and emerging markets, including with respect to foreign exchange and capital controls; project financing risks, liquidity risks and limited financial resources; health and safety risks; compliance with environmental, unavailable or inaccessible infrastructure, infrastructure failures, and risks related to ageing infrastructure; changing taxation regimes; the inability to effectively compete in the industry; risks associated with acquisitions and related integration efforts, including the ability to achieve anticipated benefits, unanticipated difficulties or expenditures relating to integration and diversion of management time on integration; risks related to mine closure activities, reclamation obligations, environmental liabilities and closed and historical sites; reliance on key personnel and reporting and oversight systems, as well as third parties and consultants in foreign jurisdictions; information technology and cybersecurity risks; risks associated with the estimation of Mineral Resources and Mineral Reserves and the geology, grade and continuity of mineral deposits including but not limited to models relating thereto; actual ore mined and/or metal recoveries varying from Mineral Resource and Mineral Reserve estimates, estimates of grade, tonnage, dilution, mine plans and metallurgical and other characteristics; ore processing efficiency; community and stakeholder opposition; regulatory investigations, enforcement, sanctions and/or related or other litigation; financial projections, including estimates of future expenditures and Cash Costs, and estimates of future production may not be reliable; enforcing legal rights in foreign jurisdictions; risks associated with the use of derivatives; risks relating to joint ventures and operations; environmental and regulatory risks associated with the structural stability of waste rock dumps or tailings storage facilities; exchange rate fluctuations; compliance with foreign laws; potential for the allegation of fraud and corruption involving the Company, its customers, suppliers or employees, or the allegation of improper or discriminatory employment practices, or human rights violations; risks relating to dilution; risks relating to payment of dividends; counterparty and customer concentration risks; activist shareholders and proxy solicitation matters; estimation of asset carrying values; relationships with employees and contractors, and the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; conflicts of interest; existence of significant shareholders; challenges or defects in title; internal controls; risks relating to minor elements contained in concentrate products; the threat associated with outbreaks of viruses and infectious diseases; and other risks and uncertainties, including but not limited to those described in the "Risks and Uncertainties" section of the Company's Annual Information Form for the year ended December 31, 2023 and the "Managing Risks" section of the Company's MD&A for the year ended December 31, 2023, which are available on SEDAR+ at www.sedarplus.ca under the Company's profile.
All of the forward-looking statements made in this document are 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, forecast 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.
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