Vancouver, November 1, 2023 /CNW/ - (TSX: LUN; Nasdaq Stockholm: LUMI) Lundin Mining Corporation ("Lundin Mining" or the "Company") today reported its third quarter 2023 financial results.

"Our operations continued with a strong performance in the third quarter. As a result, we are increasing our production guidance for Caserones and Eagle. The acquisition of Caserones enabled us to achieve a new record in quarterly consolidated copper production, and we also achieved a record in quarterly zinc production. This led the Company to an adjusted EBITDA of $415 million for the period." commented Peter Rockandel, CEO.

Mr. Rockandel added, "During the integration process of Caserones, our team has identified and outlined synergies between Caserones and Candelaria, which are expected to yield initial annual savings of $20 to $30 million per year. We are excited about launching the largest exploration program at Caserones since production commenced, targeting resource extensions and near-mine discoveries. The corporate office move to Vancouver is complete and all senior executive positions are in place. As we approach 2024, Lundin Mining is strategically, operationally, and financially, in a strong position to continue to deliver on our plans and execute on the next phase of growth. On a personal note, as this is my last quarter as CEO, I would like to thank all our employees, partners and stakeholders for their dedication, hard work and support, all of which have been integral to our current and future success. I am extremely proud of what the team has been able to accomplish during my tenure as CEO."

• Copper Production: The Company achieved consolidated production of 89,942 tonnes of copper, a new quarterly record.

• Other Production: During the quarter a total of 49,774 tonnes of zinc, 4,290 tonnes of nickel and approximately 35,000 ounces of gold were produced. A quarterly zinc production record was achieved as the zinc expansion project ("ZEP") at Neves-Corvo ramps up and a full quarter of operation from the sequential flotation project at Zinkgruvan was realized.

• Revenue: $992.2 million in the quarter.

• Adjusted Earnings: Net loss attributable to shareholders of the Company was $3.0 million ($0.00 per share). Adjusted earnings attributable to shareholders of the Company[1] was $85.6 million ($0.11 per share).

• Adjusted EBITDA: Adjusted earnings before interest, taxes, depreciation and amortization[1] ("EBITDA") of $415.1 million in the third quarter.
• Cash Generation: Cash provided by operating activities was $303.8 million and cash and cash equivalents at September 30, 2023 was $357.3 million. Adjusted operating cash flow[1] was $316.5 million ($0.41 per share), after removing the impact of working capital. Free cash flow[1] was $71.1 million.
• Caserones Acquisition: Completed the acquisition of 51% of the Caserones copper-molybdeum mine on July 13, 2023, adding another long-life asset in a tier one jurisdiction. The Company anticipates initial annual synergies from supply chain and service contracts between Caserones and Candelaria to be $20 million to $30 million per year.
• Term Loan: 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 in July 2026. As at September 30, 2023, the Company had a net debt[1] balance of $1,158.9 million.
• CEO Succession: Peter Rockandel, the current Chief Executive Officer announced that he will be stepping down from the role of CEO and from the Board of Directors as of December 31, 2023. Those responsibilities will be assumed by Jack Lundin, current President, and former Director of the Company.
• Outlook: Revised annual production guidance, including an increase in copper production from 296,000 - 325,000 tonnes to 305,000 - 325,000 tonnes. Cash cost guidance was lowered at Caserones and Eagle and increased at Candelaria. Annual capital expenditure guidance is lower by $30 million.

_____________________________
[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 for the three and nine months ended September 30, 2023 and the Reconciliation of Non-GAAP measures section at the end of this news release.
 

Summary Financial Results        

[][][][][][][][][][][][][]
Three months ended Nine months
September 30, endedSeptember
30,
US$ Millions 2023 2022 2023 2022
(except
per share
amounts)
Revenue                992.2                                      
648.5 2,332.1 2,229.8
Gross profit                197.3                                               
82.5 463.5 607.3
Attributable                                                              
net (3.0) (11.2) 202.8 281.3
earnings
(loss)[2]
Net earnings                                                              
(loss) 21.9 (11.2) 248.5 318.2
Adjusted                                                                
earnings 85.6 30.9 256.9 288.9
[1,2,3]
Adjusted                415.1                                             
EBITDA[1,3] 202.4 943.8 938.8
Basic and                                                                      
diluted - (0.01) 0.26 0.37
earnings per
share
("EPS")[2]
Adjusted                                                                    
EPS[1,2,3] 0.11 0.04 0.33 0.38
Cash provided                303.8                                               
by 36.3 710.5 720.0
operating
activities
Adjusted                316.5                                             
operating cash 181.3 662.2 703.9
flow[1]
Adjusted                                                                    
operating cash 0.41 0.23 0.86 0.93
flow per
share[1]
Free cash flow                136.5                                             
from (43.9) 228.3 417.1
(used in)
operations[1]
Free cash                                                            
flow[1] 71.1 (163.2) (47.7) 158.3
Cash and cash                357.3                                             
equivalents 226.9 357.3 226.9
Net debt[1]          (1,158.9)                                       
177.6 (1,158.9) 177.6
[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
for the
three and nine
months
ended
September 30,
2023 and the
Reconciliation
of Non
-GAAP Measures
section
at the end of
this news
release.
[2]
Attributable
to
shareholders
of Lundin
Mining
Corporation.
[3] 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.

• The Company generated revenue of $992.2 million, gross profit of $197.3 million and adjusted EBITDA of $415.1 million (Q3 2022 - $202.4 million).
• Net loss attributable to shareholders of the Company was $3.0 million ($0.00 per share) in the third quarter, impacted by higher interest expense, non-cash unrealized losses on derivative contracts and increased deferred tax expense as a result of the enactment of the mining royalty law in Chile[4].
• Adjusted earnings attributable to shareholders of the Company for the quarter of $85.6 million ($0.11 per share attributable to shareholders of the Company) were $49.5 million higher than the prior year quarter after adjusting for the non-cash revaluation of derivative contracts, fair value adjustments relating to the Caserones acquisition and deferred tax relating to the mining royalty rate change[4], among other things.
• Cash and cash equivalents as at September 30, 2023 were $357.3 million. Cash generated from operations of $303.8 million during the quarter was used to fund investing activities of $908.8 million. Investing activities in the third quarter 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 at closing on a 100% basis.
• Free cash flow[ ]of $71.1 million was $234.3 million higher than the prior year comparable period and benefited from the inclusion of production from Caserones, combined with higher realized copper prices and higher overall changes in working capital.
• As at November 1, 2023, the Company had cash and net debt balances of approximately $368.6 million and $1,137.6 million, respectively.

[4]Refer to Management's Discussion and Analysis for the three and nine months ended September 30, 2023 for further information related to the deferred tax relating to the mining royalty rate change.
 

• Candelaria EIA: A new Environmental Impact Assessment ("EIA") was granted at Candelaria for the extension of operations from 2030 to 2040.
• Exploration: Exploration programs continue at our existing assets while new exploration drilling campaigns are underway at Caserones and Josemaria. Drilling at Caserones will be the largest exploration program since the mine began operation in 2013. The initial phase of the drill program is expected to be over 10,000 meters and results are expected in H1 2024.
• Copper Mark: Caserones has achieved the Copper Mark at its operations, a designation that highlights the Company's commitment to sustainable mining practices.

• Josemaria Project: The Company continues to derisk and advance the Josemaria project through optimization and trade off studies. These studies will continue into 2024.

• Senior Leadership Appointments: The corporate office move to Vancouver has been completed. The Company is pleased to announce the following executive appointments, Peter Brady has been hired as General Counsel, Ricardo Checura as Vice President, Health and Safety and Nathan Monash as Vice President, Sustainability.

Outlook

Production and cash cost guidance for 2023 is updated from that disclosed in the Company's Management's Discussion and Analysis for the three and six months ended June 30, 2023.

Most production guidance ranges are tightening and improving, with the lower end of the range increasing for copper, nickel and gold. Cash cost guidance is lower for Caserones and Eagle driven by higher production volumes and by-product credits, and increasing for Candelaria, reflecting higher operating costs. Production continues to be weighted to the second half of the year, notably at Chapada due to the first half seasonal operating conditions and forecast grade and recovery profiles.

2023 Production and Cash Cost Guidance

[][][][][][][][][][][][][]
Previous Revised
Guidance[a] Guidance
(contained Production Cash Cost Production Cash
metal) ($/lb)[f] Cost
($/lb)[b,
f]
Copper (t) Candelaria 145,000 - 1.80 - 147,000 - 2.00 -
(100%) 155,000 1.95[c] 153,000 2.20[c]
Caserones 60,000 - 2.30 - 65,000 - 2.00 -
(100%)[e] 65,000 2.45 69,000 2.20
Chapada 43,000 - 2.35 - 45,000 - 2.35 -
48,000 2.55[d] 48,000 2.55[d]
Eagle 12,000 - 12,000 -
15,000 15,000
Neves 33,000 - 2.10 - 33,000 - 2.10 -
-Corvo 38,000 2.30[c] 36,000 2.30[c]
Zinkgruvan 3,000 - 3,000 -
4,000 4,000
Total 296,000 - 305,000 -
325,000 325,000
Zinc (t) Neves 100,000 - 103,000 -
-Corvo 110,000 110,000
Zinkgruvan 80,000 - 0.45 - 78,000 - 0.45 -
85,000 0.50[c] 82,000 0.50[c]
Total 180,000 - 181,000 -
195,000 192,000
Molybdenum Caserones 1,500 - 1,500 -
(t) (100%)[e] 2,000 2,000
Gold (koz) Candelaria 85 - 90 87 - 92
(100%)
Chapada 55 - 60 55 - 60
Total 140 - 150 142 - 152
Nickel (t) Eagle 13,000 - 2.30 - 15,000 - 2.00 -
16,000 2.45 17,000 2.20
a. Guidance as
outlined in
the MD&A for
the three and
six months
ended June 30,
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, Mo:
$20.00/lb Pb:
$0.90/lb, Au:
$1,850/oz),
foreign
exchange rates
(€/USD:1.05,
USD/SEK:10.50,
USD/CLP:800,
USD/BRL:5.00)
and production
costs for the
remainder of
2023.
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
$425/oz gold
and $4.25/oz
to $4.57/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.
e. Caserones
guidance is
for the 
second half of
2023.
f. 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
nine months
ended
September 30,
2023 and the
Reconciliation
of Non-GAAP
measures
section at the
end of this
news release.

As a result of re-phasing several projects at Neves-Corvo and Zinkgruvan, capital expenditure guidance is lower by an additional $30 million for 2023. As disclosed in the Company's Management's Discussion and Analysis for the three and six months ended June 30, 2023, capital spend guidance at Josemaria was previously lowered to $350 million for 2023 due to foreign exchange, a delay in planned equipment deliveries and reduced activities.

2023 Capital Expenditure

[][]
($ millions) Previous Revisions Revised Guidance
Guidance[a]
Candelaria 375 - 375
(100% basis)
Caserones 110 - 110
(100%
basis)[c]
Chapada 70 - 70
Eagle 20 - 20
Neves-Corvo 130 (25) 105
Zinkgruvan 70 (5) 65
Other 10 - 10
Total 785 (30) 755
Sustaining
Josemaria 350 - 350
Total Capital 1,135 (30) 1,105
Expenditures
a. Guidance as
outlined in
the MD&A for
the three and
six months
ended June 30,
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,
2023 and the
Reconciliation
of Non-GAAP
Measures at
the end of
this news
release.     
  
c. Caserones
guidance is
for the second
half of 2023.

2023 Exploration Investment Guidance

Total exploration expenditures are on target to be $45.0 million in 2023, unchanged from previous guidance.
 

Operational Performance

Total Production

[][][][]
(contained 2023 2022
metal)[a]
YTD Q3 Q2 Q1 Total Q4 Q3 Q2 Q1
Copper      211,461       89,942       60,057       61,462     249,659       56,552       63,930       64,096       65,081
(t)[b]
Zinc (t)      134,442       49,774       36,115       48,553     158,938       44,308       40,327       41,912       32,391
Molybdenum                                 
(t)[b] 1,096 1,096 -
Gold                                                                                                                           
(koz)[b] 105 35 34 36 154 36 45 39 34
Nickel (t)                          4,686                                                   
12,700 4,290 3,724 17,475 4,096 4,379 4,719 4,281
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 34,275 tonnes of copper and approximately 20,000 ounces of gold in concentrate on a 100% basis in the quarter. Copper production was lower than the prior year quarter primarily due to lower grades partially offset by higher throughput. Gold production was lower than the prior year quarter due to lower grades and recoveries. Current quarter production costs and copper cash cost of $2.19/lb were higher than the prior year quarter largely owing to higher contractor and maintenance costs and unfavorable foreign exchange. Cash cost was further impacted by lower sales volumes.

Caserones (51% owned): In the three months ended September 30, 2023 Caserones produced 34,427 tonnes of copper and 1,321 tonnes of molybdenum on a 100% basis, of which 29,821 tonnes of copper and 1,096 tonnes of molybdenum were produced from the acquisition closing date of July 13. Copper and molybdenum production were higher than planned due to increased throughput and recoveries. Production costs in the quarter were negatively impacted by the recognition of fair market value adjustments to inventory due to the acquisition. Copper cash cost of $1.60/lb benefited from higher than planned production and by-product credits.

Chapada (100% owned): Chapada produced 12,286 tonnes of copper and approximately 15,000 ounces of gold in concentrate in the quarter. Copper and gold production was lower than the prior year quarter primarily due to lower throughput and grades. Production costs were lower than the prior year quarter due to lower sales volumes. Copper cash cost of $2.28/lb for the quarter increased from the prior year quarter due to lower sales volumes, unfavorable foreign exchange variances, and lower by-product credits and production.

Eagle (100% owned): During the quarter Eagle produced 4,290 tonnes of nickel and 3,245 tonnes of copper which were lower than the prior year quarter due to lower planned grades. Production costs were higher than the comparable prior year quarter due to inflationary contractual cost increases. Nickel cash cost in the quarter of $2.07/lb was higher than the prior year quarter primarily due to lower by-product credits and higher production costs.

Neves-Corvo (100% owned): Neves-Corvo produced 9,016 tonnes of copper and 25,807 tonnes of zinc in the quarter. Copper production was higher than in the prior year quarter due to higher throughput, grades and recoveries. Zinc production was higher than in the prior year quarter primarily due to increased grades and recoveries driven by the Zinc Expansion Project ("ZEP"). Production costs during the quarter were lower than the prior year quarter despite higher sales, primarily due to reduced electricity costs. Current quarter copper cash cost per pound of $2.27/lb was lower than the prior year quarter primarily as a result of lower input costs and benefited from higher production and sales. 

Zinkgruvan (100% owned): Zinc production of 23,967 tonnes and lead production of 8,643 tonnes were higher than the prior year quarter primarily due to higher throughput and grades. Copper production of 1,299 tonnes was lower than the prior year quarter due to lower throughput. Production costs were higher than the prior year quarter primarily due to higher sales volumes. Zinc cash cost per pound of $0.28/lb during the quarter was higher than the prior year quarter primarily as a result of lower by-product costs per pound and higher treatment and refining charges. 
 

Senior Leadership Appointments

The Company is pleased to announce the executive appointments of Peter Brady as General Counsel, Ricardo Checura as Vice President, Health and Safety, and Nathan Monash as Vice President, Sustainability.

Peter Brady
General Counsel
Mr. Brady has joined Lundin Mining's Executive Leadership Team as General Counsel. He has over 20 years of experience in industry and private practice working with major international mining companies. Prior to joining Lundin Mining, he most recently was Chief Legal & Governance Officer with Vale Base Metals, responsible for advising their senior leadership team on all legal and business risk, compliance, and corporate governance matters. Previous to Vale Base Metals, he was a Partner at McCarthy Tetrault. Mr. Brady holds a Bachelor of Laws from Queen's University and a Master of Arts in Environmental Law from the University of Windsor.

Ricardo Checura
Vice President Health and Safety
Mr. Checura was previously at BHP Inc, where he spent the past 12 years in various leadership roles, most recently as Head of Risk Operations. He was a member of BHP's Global Risk Leadership Team and managed the risk management activities of their Global Operating Assets. Prior to his most recent role, Ricardo served as their Head of Safety - Minerals Americas between 2018 to 2021. Mr. Checura's experience also includes implementing Fatal Risk Management from his previous roles in the mining industry. Ricardo holds a Bachelor of Science in Engineering from the University of Concepción and a Master of Business Administration from the University of Chile.

Nathan Monash
Vice President, Sustainability
Mr. Monash has joined Lundin Mining's Senior Leadership Team as Vice President, Sustainability. He has over 20 years of experience in the mining sector, developing and integrating sustainability strategy and governance structures and advising operations on community relations, local government relations, human rights and communications. Prior to joining Lundin Mining, he most recently led Lundin Gold's sustainability activities during the construction and operation of the Fruta del Norte mine in Ecuador and prior to that led AngloGold Ashanti's sustainability efforts in the Americas. Nathan has also worked with International Finance Corporation, guiding extractive industry clients on the structure and implementation of sustainable development strategies, and spent several years with the World Economic Forum where he worked closely with leaders from business, academia and government to identify and address key economic, social and environmental issues facing the mining and metals industry. Mr. Monash holds a Bachelor of Science in Biology from McGill University and a Master of Arts from the Fletcher School at Tufts University.

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 November 1, 2023 at 3:00 pm 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.

For further Technical Information on the Company's material properties, refer to the following technical reports, each of which is available on the Company's SEDAR profile at www.sedarplus.ca: Candelaria: technical report entitled Technical Report for the Candelaria Copper Mining Complex, Atacama Region, Region III, Chile dated February 22, 2023. Caserones: Caserones Mining Operation, Chile, NI 43-101 Technical Report on the Caserones Mining Operation, dated July 13, 2023 Chapada: technical report entitled Technical Report on the Chapada Mine, Goiás State, Brazil dated October 10, 2019. Eagle Mine: technical report entitled Technical Report on the Eagle Mine, Michigan, U.S.A. dated February 22, 2023. Neves-Corvo: technical report entitled NI 43-101 Technical Report on the Neves-Corvo Mine, Portugal dated February 22, 2023. Josemaria Project: technical report entitled NI 43-101 Technical Report, Feasibility Study for the Josemaria Copper-Gold Project, San Juan Province, Argentina, September 28, 2020, which is available on Josemaria Resources' SEDAR profile at www.sedarplus.ca.
 

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 nine months ended September 30, 2023 which is available on SEDAR+ at www.sedarplus.ca.

Net (debt) cash can be reconciled as follows:

($thousands) September 30, 2023 December 31, 2022
Debt and lease liabilities      (1,130,754)    (27,179)
Current portion of total debt       (380,645)   (170,149)
and lease liabilities       
Less deferred financing fees            (4,810)   (4,926)
(netted in above)
     (1,516,209)  (202,254)
Cash and cash equivalents     357,337  191,387
Net debt   (1,158,872)  (10,867)

Adjusted operating cash flow and adjusted operating cash flow per share can be reconciled to cash provided by operating activities as follows:

Three months Nine months
endedSeptember endedSeptember
30, 30,
($thousands, 2023 2022 2023 2022
except share
and per
share
amounts)
Cash                                           
provided by 303,812 36,331 710,531 719,999
operating
activities
Changes in                                           
non-cash 12,655 145,006 (48,360) (16,111)
working
capital
items
Adjusted                                        
operating 316,467 181,337 662,171 703,888
cash
flow   

Basic   773,147,920   775,563,527   772,214,160   759,726,506
weighted
average
number of
shares
outstanding
Adjusted $               0.23        0.86                 
operating 0.41 0.93
cash
flow per
share     
  

Free cash flow from operations can be reconciled to cash provided by operating activities as follows:

Three months Nine months
endedSeptember endedSeptember
30, 30,
($thousands) 2023 2022 2023 2022
Cash provided by                                           
operating activities 303,812 36,331 710,531 719,999
General exploration                                               
and business 12,734 72,446 41,192 132,259
development
Sustaining capital                                  
expenditures (180,013) (152,722) (523,397) (435,145)
Free cash flow from                                         
operations 136,533 (43,945) 228,326 417,113
General exploration                                        
and business (12,734) (72,446) (41,192) (132,259)
development
Expansionary capital                                      
expenditures (52,662) (46,766) (234,831) (126,523)
Free cash flow                                         
71,137 (163,157) (47,697) 158,331

Adjusted EBITDA can be reconciled to the Company's Consolidated Statement of Earnings as follows:

[][]
Three months Nine months
endedSeptember 30, endedSeptember 30,
($thousands) 2023 2022 2023 2022
Net earnings             21,883            (11,245)           248,496           318,238
(loss)
Add back:
Depreciation,   179,788  140,161 430,540 412,040
depletion and
amortization 
Finance income             36,212              15,240             67,808              47,521
and costs
Income taxes             84,891              10,766           113,983           136,975
          322,774           154,922           860,827           914,774
Unrealized                9,096              14,426              (1,545)              25,000
foreign
exchange
Revaluation             47,874                                  43,407                     
loss on - -
derivatives[1]
Sinkhole costs              (1,247)                7,789             15,235                7,789
Revaluation                3,449                                                 1,712
loss (gain) on (554) (453)
marketable
securities
Caserones             32,185                                  32,185                     
inventory fair - -
value
adjustment
Unrealized                                   18,848                                          
foreign - - -
exchange and
trading loss
on
equity
investments
Write-down of                                     3,617                                     3,619
fixed assets - -
Gain on                                                        (5,718)            (16,828)
disposal of - -
subsidiary
Other                                  3,325                                2,724
990 (120)
Total             92,347              47,451             82,991              24,016
adjustments -
EBITDA
Adjusted           415,121           202,373           943,818           938,790
EBITDA[1]

[1]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.                                                                                                                                                           

Adjusted earnings and adjusted earnings per share can be reconciled to the Company's Consolidated Statement of Earnings as follows:

[][]
Three months Nine months
endedSeptember 30, endedSeptember
30,
($thousands, 2023 2022 2023 2022
except share and
per
share amounts)
Net earnings              (2,964)            (11,212)                     281,289
(loss) 202,765
attributable
to Lundin Mining
shareholders
Add back:
Total adjustments             92,347              47,451                          24,016
- EBITDA 82,991
Tax effect on           (20,114)            (12,012)                      (11,323)
adjustments (23,295)
Deferred tax             25,700                                                      
expense due to - 25,700 -
change in tax
rate
Deferred tax                9,669                5,599                        (6,264)
arising from (12,327)
foreign
exchange
translation
Non-controlling           (19,049)                1,070                          1,197
interest on (18,980)
adjustments
Total adjustments             88,552              42,108                            7,626
54,089
Adjusted             85,588              30,896                     288,915
earnings[1]      256,854
     
  

Basic weighted   773,147,920   775,563,527   772,214,160   759,726,506
average number of
shares
outstanding

Net (loss)                                                                      
earnings - (0.01) 0.26 0.37
attributable
to shareholders
                 
Total                                0.05                                  
adjustments      0.11 0.07 0.01
         
                 
            
Adjusted earnings                                                                    
per share[1]    0.11 0.04 0.33 0.38
   

[1]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.

Cash and All-in Sustaining Costs can be reconciled to the Company's operating costs as follows:

Three months
ended September
30, 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             33,668                                                       22,042 
                30,385 11,445 3,640 8,799
 
Pounds (000s)           74,225                                                     48,594 
66,987 25,232 8,025 19,398
Production        
costs 615,109
               
  
Less: Royalties        
and other (21,662)
Inventory fair        
value (32,185)
adjustment
       
561,262
Deduct: By      
-product (216,150)
Add: Treatment          
and 56,261
Cash cost        162,672                                                13,693         
106,866 57,501 16,598 44,043 401,373
Cash cost per                                                                                    
pound 2.19 1.60 2.28 2.07 2.27 0.28 
Add: Sustaining           86,693                                                     12,350 
capital 28,849 16,716 4,989 27,357
               
 
Royalties                                                                                    
- 7,550 2,142 7,385 1,055 - 
Reclamation and             2,349                                                            
other 1,133 2,141 2,742 1,462 1,011 
closure
accretion and
depreciation
Leases & other             2,841                                                                         
11,531 865 797 131 86 
All-in        254,555                                                27,140 
sustaining cost 155,929 79,365 32,511 74,048
AISC per pound                                                                                    
($/lb) 3.43 2.33 3.15 4.05 3.82 0.56 

Three months
ended September
30, 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             35,587                                                               13,722 
                - 12,817 3,715 8,574
 
Pounds (000s)           78,456                                                             30,252 
- 28,257 8,190 18,903
Production        
costs 425,814
               
  
Less: Royalties           
and (8,593)
       
417,221
Deduct: By      
-product (172,179)
Add: Treatment          
and 28,829
Cash cost        154,633                                                                      
- 54,147 8,637 50,888 5,566  273,871
Cash cost per                                                                                        
pound 1.97 - 1.92 1.05 2.69 0.18 
Add: Sustaining        103,486                                                              
capital - 19,197 3,062 15,860 8,415 
               
 
Royalties                                                                                        
- - 3,055 5,705 (1,213) - 
Reclamation and             1,951                                                                        
other - 1,784 4,809 630 962 
closure
accretion and
depreciation
Leases & other             2,327                                                                           
- 1,017 484 173 149 
All-in        262,397                                                           15,092 
sustaining cost - 79,201 22,697 66,338
AISC per pound                                                                                        
($/lb) 3.34 - 2.80 2.77 3.51 0.50 

Nine months ended
September 30,
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          105,585                                                   48,028 
                30,385 30,681 10,234 23,000
 
Pounds (000s)        232,775                                                105,883 
66,987 67,640 22,562 50,706
Production    
costs 1,438,071
               
  
Less: Royalties        
and other (41,717)
Inventory fair        
value (32,185)
adjustment
   
1,364,169
Deduct: By      
-product (495,751)
credits
Add: Treatment        
and 125,390
Cash cost        507,884                                128,206           38,454         
106,866 165,170 47,228 993,808
Cash cost per                                                                                    
pound ($/lb) 2.18 1.60 2.44 2.09 2.53 0.36 
Add: Sustaining        300,796                                                   42,812 
capital      28,849 52,433 15,653 74,551
 
Royalties                                                                                  
- 7,550 6,394 17,991 2,868 - 
Reclamation and             7,100                                                            
other 1,133 5,789 8,711 4,082 2,811 
closure
accretion and
depreciation
Leases & other             9,638                                                                
11,531 3,002 2,441 437 288 
All-in        825,418                                210,144           84,365 
sustaining cost 155,929 232,788 92,024
AISC per pound                                                                                    
($/lb) 3.55 2.33 3.44 4.08 4.14 0.80 

Nine months ended
September 30,
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          113,690                                                           48,049 
                - 33,526 11,188 25,241
 
Pounds (000s)        250,643                                                        105,930 
- 73,912 24,665 55,647
Production    
costs 1,210,431
               
  
Less: Royalties        
and other (38,121)
   
1,172,310
Deduct: By      
-product (487,914)
Add: Treatment          
and 90,944
Cash cost        450,858                                             125,889           33,138         
- 157,456 7,999 775,340
Cash cost per                                                                                        
pound ($/lb) 1.80 - 2.13 0.32 2.26 0.31 
Add: Sustaining        272,557                                                           31,537 
capital      - 63,412 10,445 49,136
 
      Royalties                                                                                           
- - 9,161 24,129 984 - 
                  6,002                                                                 3,035
Reclamation and - 5,533 14,109 1,081
closure
accretion and
depreciation
      Leases &             6,953                                                                        
other - 3,056 1,766 569 547
All-in        736,370                                           177,659           68,257
sustaining cost - 238,618 58,448
AISC per pound                                                                                        
($/lb) 2.94 - 3.23 2.37 3.19 0.64

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, including the Caserones transaction; 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; project financing risks, liquidity risks and limited financial resources; volatility and fluctuations in metal and commodity demand and prices; delays or the inability to obtain, retain or comply with permits; significant reliance on a single asset; reputation risks related to negative publicity with respect to the Company or the mining industry in general; health and safety risks; risks relating to the development of the Josemaria Project; inability to attract and retain highly skilled employees; risks associated with climate change; compliance with environmental, health and safety laws and regulations; unavailable or inaccessible infrastructure, infrastructure failures, and risks related to ageing infrastructure; risks inherent in and/or associated with operating in foreign countries and emerging markets, including with respect to foreign exchange and capital controls; 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, environmental and tailings management, labour, trade relations, and transportation; risks relating to indebtedness; 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, including with respect to the Caserones transaction; changing taxation regimes; 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; 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; environmental and regulatory risks associated with the structural stability of waste rock dumps or tailings storage facilities; activist shareholders and proxy solicitation matters; risks relating to dilution; regulatory investigations, enforcement, sanctions and/or related or other litigation; risks relating to payment of dividends; counterparty and customer concentration risks; the estimation of asset carrying values; risks associated with the use of derivatives; 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 a significant shareholder; exchange rate fluctuations; challenges or defects in title; internal controls; 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; the threat associated with outbreaks of viruses and infectious diseases; risks relating to minor elements contained in concentrate products; and other risks and uncertainties, including but not limited to those described in the "Risk and Uncertainties" section of the Company's Annual Information Form and the "Managing Risks" section of the Company's MD&A for the year ended December 31, 2022, 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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