VANCOUVER, BC, Nov. 6, 2024 /CNW/ - (TSX: LUN; Nasdaq Stockholm: LUMI) Lundin Mining Corporation ("Lundin Mining" or the "Company") today reported its third quarter 2024 financial results. Unless otherwise stated, results are presented in United States dollars on a 100% basis.

Jack Lundin, President and CEO commented, "Our overall performance has contributed to another near record quarter for revenue and copper production for the Company and we are on track to meeting full-year consolidated copper guidance. Operationally, Candelaria had an excellent third quarter producing 50,000 tonnes of copper driven by planned higher copper head grades. This was one of Candelaria's strongest quarters and materially contributed to our success.

"During the quarter the Company realized two significant growth opportunities. We increased our ownership at our Caserones copper-molybdenum mine from 51% to 70%, which immediately added attributable copper production to the Company. Caserones, located within the Vicuña District, is a long-life mine that yields strong cash flow generation. It is within this District where we also announced a transformational transaction with BHP to jointly acquire Filo Corp. and form a new joint arrangement incorporating the world-class Filo del Sol Project and the Josemaria Project in Argentina to create a top-tier multi-generational mining complex. Filo shareholders have overwhelmingly voted in favour of the transaction which is expected to close in the first quarter of 2025. Around the time of closing, we will also provide an update to the market on the key milestones and next steps to advance these projects.

"On exploration we are ramping up for another drill season in the Vicuña District. We will continue the near-mine campaign at Caserones and follow up on our Cumbre Verde target near Josemaria. During the quarter we continued to drill near-mine targets at our other operations with the objective to replace resources, add mine life and seek out future expansion opportunities, such as the Saúva resource located near our Chapada operation.

"As we enter the final quarter of 2024, we have tightened the production guidance ranges at our sites and are re-affirming our full-year consolidated production guidance for copper and gold. For our other metals, we have marginally reduced our full year guidance for zinc and are maintaining our revised nickel guidance."

• Copper Production: Consolidated production of 99,855 tonnes of copper in the third quarter.

• Other Production: During the quarter, a total of 46,610 tonnes of zinc, 893 tonnes of nickel and approximately 47,000 ounces of gold were produced.

• Revenue: $1,073.0 million in the third quarter with a realized copper price[1] of $4.29 /lb and a realized zinc price[1] of $1.29 /lb.

• Net Earnings and Adjusted Earnings[1]: Net earnings attributable to shareholders of the Company were $101.2 million or $0.13 per share in the third quarter with adjusted earnings of[ ]$72.5 million or $0.09 per share.

• Adjusted EBITDA[1]:  $457.7 million generated during the quarter.

• Cash Generation: Cash provided by operating activities was $139.3 million and adjusted operating cash flow[1] was $305.2 million, excluding the impact of a working capital build of $165.9 million.

• Growth: During the quarter the Company announced two significant transactions:

• On July 2, 2024, the Company closed the option to increase ownership in Caserones to 70%, which adds approximately 23,000 tonnes of additional attributable copper production to the Company's production profile[2]. The consideration of $350 million was fully funded through an increase to the Company's term loan from $800 million to $1.15 billion.

• Summary Financial Results        

• On July 29, 2024, Lundin Mining and BHP announced the joint acquisition of Filo Corp. Lundin Mining and BHP will form a 50/50 joint arrangement to hold the Filo del Sol Project and Lundin Mining's Josemaria Project. The partnership will create a multi-generational mining district with world-class potential that could support a globally ranked mining complex.

• Outlook: The Company's full year production and cash cost guidance update is as follows:

• Copper: Annual copper production guidance ranges have been tightened for several of the assets and the new consolidated copper guidance for the year is now 366,000 to 389,000 tonnes compared to the previous range of 366,000 to 400,000 tonnes. The Company is on track to meet full year consolidated copper guidance.

• Zinc: Annual production guidance for Zinkgruvan has been increased which was offset by adjustments to zinc guidance at Neves-Corvo. New consolidated zinc guidance for the year has been adjusted to 190,000 to 199,000 tonnes from 195,000 tonnes to 215,000 tonnes.

• [][][][][][][][][][][][][][]

• Gold: Annual gold guidance has remained unchanged incorporating an increase in guidance at Chapada offset by a reduction at Candelaria.

• Cash Costs: Forecast annual cash cost guidance at Chapada and Zinkgruvan has improved while cash cost guidance at Eagle has been adjusted upwards. All other sites remain unchanged.

• Sustaining Capital Expenditures[1]: Sustaining capital will be reduced by $75 million and is expected to total $720 million (previously $795 million) for the year, primarily due to reductions in planned spending at Candelaria and Caserones. The Josemaria Project guidance has increased by $5 million to $230 million and exploration guidance increased by $7 million to $55.0 million for 2024. The increase in exploration expenditure is primarily due to accelerating exploration efforts at Caserones where drilling is targeting higher-grade copper breccia bodies to improve grades in the resource, as well as follow-up drilling at Cumbre Verde after positive results in the first half of 2024.

• The Company generated revenue of $1,073.0 million during the quarter, driven by 90,069 tonnes of copper sold at a realized price of $4.29 /lb. Revenue benefited from higher realized copper, gold, and zinc prices, partially offset by $5.3 million negative provisional pricing adjustments on prior period concentrate sales.

• Gross profit of $291.8 million and Adjusted EBITDA of $457.7 million in the quarter reflect higher realized copper, zinc and gold prices partially offset by decreases in zinc and nickel sales volumes.

• Net earnings attributable to shareholders of the Company were $101.2 million or $0.13 per share in the quarter.

• Adjusted earnings attributable to shareholders of the Company for the quarter were $72.5 million or $0.09 per share after removing $30.6 million unrealized gains on derivative contracts and adding $14.8 million in expenses relating to the partial suspension of underground operations at Eagle, among other things.

• Cash and cash equivalents as at September 30, 2024 were $295.5 million. Cash provided by operating activities amounted to $139.3 million and cash used to fund investing activities amounted to $264.5 million. The Company had a net debt excluding lease liabilities[1] balance of $1,541.7 million as at September 30, 2024 (December 31, 2023 -  $946.2 million).

• Free cash flow[1] for the quarter of $(61.8) million was impacted by $165.9 million of working capital outflows as a result of timing of sales at Candelaria and Chapada.
• As at November 6, 2024, the Company had a cash balance of approximately $466.1 million and a net debt excluding lease liabilities balance of approximately $1,362.6 million.

Total Production

[][][][]
(Contained 2024 2023
metal)[a]
YTD Q3 Q2 Q1 Total Q4 Q3 Q2 Q1
Copper     267,576       99,855       79,708       88,013     314,798     103,337       89,942       60,057       61,462
(t)[b]
Zinc (t)     139,758       46,610       47,460       45,688     185,161       50,719       49,774       36,115       48,553
Nickel (t)                                                                        4,686          3,724
5,869 893 1,721 3,255 16,429 3,729 4,290
Gold                                                                                                                          
(koz)[b] 112 47 32 33 149 44 35 34 36
Molybdenum                                                                                                        
(t)[b] 2,271 693 714 864 2,024 928 1,096 - -
a. Tonnes
(t) and
thousands
of ounces
(koz)
b.
Candelaria
and
Caserones
production
is on a
100%
basis.

Candelaria (80% owned): Candelaria produced 50,018 tonnes of copper and approximately 29,000 ounces of gold in concentrate on a 100% basis during the quarter. Production in the quarter was positively impacted by higher copper head grades from Phase 11. Access to higher grade Phase 11 ore is anticipated to continue through most of the fourth quarter of 2024 as per the planned mine sequence. Production costs in the quarter were higher than in the prior year quarter due to higher copper sales, but also partially offset by favourable foreign exchange. Cash cost of $1.55/lb was positively impacted by higher sales volumes, favourable foreign exchange and favourable by-product credits. 

Caserones (70% owned): Caserones produced 29,033 tonnes of total copper and 693 tonnes of molybdenum on a 100% basis during the quarter. Copper and molybdenum production in the quarter was impacted by labour action in August lasting 14 days which reduced throughput during that period to approximately 50% of capacity. Lower head grades were realized during the quarter as a result of a higher proportion of ore from Phase 6 due to hydrogeologic conditions in Phase 5. Production costs in the quarter were lower than in the prior year comparable period due to lower copper concentrate and molybdenum volumes and favourable foreign exchange. Cash cost of $2.96/lb was negatively impacted by lower sales volumes as a result of the labour action.

Chapada (100% owned): Chapada produced 11,694 tonnes of copper and approximately 18,000 ounces of gold in concentrate during the quarter. Copper production was positively impacted by higher throughput that was offset by lower grades and recoveries as a result of processing of stockpiled ore as part of an optimized mine plan that significantly reduces waste movement. Gold production reflected higher grades as a result of increased ore mined from the South and Central pits replacing older low-grade stockpiles. Production costs increased due to higher sales volumes, partially offset by favourable foreign exchange. Cash cost of $1.37/lb benefited from higher gold by-product credits and favourable foreign exchange combined with mining cost decreases due to operational improvements.

Eagle (100% owned): Eagle produced 893 tonnes of nickel and 1,027 tonnes of copper in the quarter. Production has been impacted by the fall of ground in the lower ramp in Eagle East during the second quarter of 2024 which restricted access to Eagle East, and reduced mining rates until ramp rehabilitation is completed. Normal throughput rates are expected to resume in late 2024. Production costs were reduced by lower sales and production volumes leading to reduced spend in milling, transportation and lower royalty expense. Production costs in the quarter excluded approximately $14.8 million of overhead costs that have been recorded in Other Income and Expense as a result of the partial suspension of underground mining operations. Nickel cash cost[1] of $7.24/lb was impacted by lower sales volumes, partially offset by higher by-product credits as a result of higher realized copper prices.

Neves-Corvo (100% owned): Neves-Corvo produced 6,698 tonnes of copper and 29,509 tonnes of zinc during the quarter. Copper production was impacted by lower throughput and grades. The decrease in throughput and grades is attributed to changes in mine sequencing as a result of adjustments made to the mining method and cable bolting requirements. Additional development work in Lombador North and rehabilitation work also limited ore availability. Zinc production benefitted from higher throughput and recoveries as a result of the zinc expansion project. During the month of August, there was a record in shaft hoisting of 440,000 tonnes over the month, in addition to record zinc production of 10,527 tonnes. During the month of September, the daily shaft hoisting of 19,000 tonnes set a new record for the mine. Production costs increased due to an increase in zinc and lead sales volumes and cash cost of $2.13/lb benefitted from higher by-product credits.

Zinkgruvan (100% owned): Zinkgruvan produced 17,101 tonnes of zinc and 5,693 tonnes of lead in the quarter reflecting lower grades and throughput which were driven by changes in mine sequencing from operational and maintenance interruptions. Copper production of 1,385 tonnes in the quarter reflected higher throughput. Production costs decreased due to lower sales volumes and zinc cash cost of $0.16/lb benefitted from higher copper by-product credits as a result of higher realized copper prices.

Outlook

Annual guidance for 2024 has been updated from that disclosed in the Company's Management's Discussion and Analysis for the three and six months ended June 30, 2024.

The Company remains on track to meet annual consolidated copper production guidance. The total production guidance range for copper has been tightened with the top end of the range at Candelaria increased as a result of continued access to higher grade ore in the second half of the year. Copper production guidance ranges at Caserones and Neves-Corvo have been tightened and lowered slightly. At Caserones, this reflects the impact of the labour action during the quarter that reduced operations for 14 days. At Neves-Corvo, changes in mine sequencing due to rehabilitation and development efforts led to the change in guidance.

Total production guidance for zinc has been revised, guidance range for Zinkgruvan increased slightly and the guidance range for Neves-Corvo reduced as a result of rehabilitation and development work impacting mine sequencing. Annual gold guidance has remained unchanged, incorporating an increase in guidance at Chapada offset by a reduction at Candelaria. For molybdenum, the guidance range has increased to reflect expected results according to the mine plan.

Cash cost guidance at Chapada and Zinkgruvan was lowered with cash costs continuing to benefit from increased realized prices on by-product sales and weaker local currencies. Cash cost guidance at Eagle has increased due to reduced mining rates following a fall of ground that continues to limit production.

Annual sustaining capital expenditure guidance has been lowered to $720 million from $795 million with reductions primarily at Caserones and Candelaria. Expenditure guidance related to the Josemaria Project of $230 million and exploration guidance of $55.0 million have been revised for 2024. The increase in exploration expenditure is primarily due to accelerating exploration efforts at Caserones where drilling is targeting the higher-grade copper breccia bodies to improve grades in the resource, as well as follow-up drilling at Cumbre Verde after positive results in the first half of 2024.

2024 Production and Cash Cost Guidance

[][][][][][][][][][][]
Previous Revised
Guidance[a] Guidance
(contained Production Cash Cost Production Cash
metal) ($/lb)[b] Cost
($/lb)[b
]
Copper (t) Candelaria 160,000 - 1.60 - 165,000 - 1.60 -
(100%) 170,000 1.80[c] 173,000 1.80[c]
Caserones 124,000 - 2.60 - 121,000 - 2.60 -
(100%) 135,000 2.80 125,000 2.80
Chapada 43,000 - 1.95 - 43,000 - 1.55 -
48,000 2.15[d] 48,000 1.65[d]
Eagle 5,000 - 6,000 -
7,000 8,000
Neves 30,000 - 1.95 - 27,000 - 1.95 -
-Corvo 35,000 2.15[c] 30,000 2.15[c]
Zinkgruvan 4,000 - 4,000 -
5,000 5,000
Total 366,000 - 366,000 -
400,000 389,000
Zinc (t) Neves 120,000 - 111,000 -
-Corvo 130,000 116,000
Zinkgruvan 75,000 - 0.45 - 79,000 - 0.40 -
85,000 0.50[c] 83,000 0.45[c]
Total 195,000 - 190,000 -
215,000 199,000
Nickel (t) Eagle 7,000 - 3.20 - 7,000 - 3.70 -
9,000 3.40 9,000 3.90
Gold (koz) Candelaria 100 - 110 92 - 102
(100%)
Chapada 55 - 60 63 - 68
Total 155 - 170 155 - 170
Molybdenum Caserones 2,500 - 2,800 -
(t) (100%) 3,000 3,300
a. Guidance as
outlined in
the Company's
Management
Discussion and
Analysis
("MD&A") for
the three and
six months
ended June 30,
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 the
Company's
Management
Discussion and
Analysis for
the three and
nine months
ended
September 30,
2024 and the
Reconciliation
of Non-GAAP
Measures at
the end of
this news
release.
c. 68% of
Candelaria's
total gold and
silver
production are
subject to a
streaming
agreement, and
silver
production at
Zinkgruvan and
Neves-Corvo
are also
subject to
streaming
agreements.
Cash costs are
calculated
based on
receipt of
approximately
$429/oz gold
and $4.28/oz
to $4.68/oz
silver.
d. Chapada's
cash cost is
calculated on
a by-product
basis and does
not include
the effects of
its copper
stream
agreements.
Effects of the
copper stream
agreements are
reflected in
copper revenue
and will
impact
realized price
per pound.

2024 Capital Expenditure Guidance[b]

[]
($ millions) Previous Revisions Revised Guidance
Guidance[a]
Candelaria 300 (25) 275
(100% basis)
Caserones 175 (40) 135
(100% basis)
Chapada 110 - 110
Eagle 25 - 25
Neves-Corvo 115 (5) 110
Zinkgruvan 70 (5) 65
Other - - -
Total 795 (75) 720
Sustaining
Josemaria 225 5 230
(Expansionary)
Total Capital 1,020 (70) 950
Expenditures
a. Guidance as
outlined in
the Company's
Management
Discussion and
Analysis
("MD&A") for
the three and
six months
ended June 30,
2024.  
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
nine months
ended
September 30,
2024 and the
Reconciliation
of Non-GAAP
Measures at
the end of
this news
release. 

Exploration

During the quarter, exploration activity focused on in-mine and near-mine targets at the Company's operations. Exploration drilling at Zinkgruvan was focused on resource expansion and drilling at Candelaria was focused on Soplona, La Portuguesa and La Española. Drilling at Chapada concentrated on adding high grade resources to Saúva and testing near-mine geochemical and geophysical anomalies in Cava Norte, Santa Cruz, Castanhal and Jatoba.

At Caserones, exploration activity remains lower during the winter season. Exploration drilling continues in the lower portion of the mineral resource in search of higher-grade copper breccia bodies that could improve the average grade of the resource, and potentially expand it. Preparations to restart near-mine drilling at Angelica were made at the end of the quarter.

At Josemaria, preparations are underway to recommence the drilling campaign at Cumbre Verde.

Drilling started at Eagle during the quarter with two surface holes targeting a geophysical anomaly east of Eagle East. Drilling also commenced during the quarter at Neves-Corvo and focused on extending inferred resources at Lombador North and near-mine drilling at Neves Southwest.

____________________
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 three and nine months ended September 30, 2024 and the Reconciliation of Non-GAAP measures section at the end of this news release.

2 Based on Caserones 2024 revised production guidance as outlined in the outlook section of the MD&A for the three and nine months ended September 30, 2024.

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 6, 2024 at 14:30 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 Patrick Merrin, P.Eng., Executive Vice President, Technical Services, a "Qualified Person" under NI 43-101. Mr. Merrin has verified the data disclosed in this release and no limitations were imposed on his verification process.

Reconciliation of Non-GAAP Measures

The Company uses certain performance measures in its analysis. These performance measures have no standardized meaning within generally accepted accounting principles under International Financial Reporting Standards and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. For additional details please refer to the Company's discussion of non-GAAP and other performance measures in its Management's Discussion and Analysis for the three and nine months ended September 30, 2024 which is available on SEDAR+ at www.sedarplus.com.

Cash Cost per Pound and All-in Sustaining Costs per pound can be reconciled to Production Costs on the Company's Condensed Interim Consolidated Statement of Earnings as follows:

Three months
ended
September
30, 2024
Operations Candelaria Caserones Chapada Eagle Neves-Corvo Zinkgruvan
($000s, unless (Cu) (Cu) (Cu)  (Ni)  (Cu) (Zn) Total
otherwise
noted)
Sales volumes
(Contained
metal):
Tonnes                                                       15,124
                45,430 22,044 12,380 393 7,707
 
Pounds (000s)                                                33,342
100,155 48,599 27,293 866 16,991
Production        
costs 581,117
               
  
Less: Royalties        
and other (19,133)
       
561,984
Deduct: By      
-product (221,753)
credits
Add: Treatment          
and refining 43,833
Cash cost                                             5,199        
155,069 144,062 37,302 6,273 36,159 384,064
Cash cost per                                                                         
pound ($/lb) 1.55 2.96 1.37 7.24 2.13 0.16
Add: Sustaining                                               15,546
capital        60,118 22,895 20,487 7,940 26,288
    Royalties                                                                     
4,519 6,354 2,643 162 1,226 -
    Reclamation                                                            1,149
and other 2,416 1,061 2,374 1,473 1,381
closure
accretion and
depreciation
    Leases &                                                                    
other 1,625 17,773 956 1,489 147 79
All-in                                         21,973
sustaining cost 223,747 192,145 63,762 17,337 65,201
AISC per pound                                                                       
($/lb) 2.23 3.95 2.34 20.02 3.84 0.66

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)
credits
Add: Treatment          
and refining 56,261
Cash cost      162,672                                        13,693        
106,866 57,501 16,598 44,043 401,373
Cash cost per                                                                          
pound ($/lb) 2.19 1.60 2.28 2.07 2.27 0.28
Add: Sustaining         86,693                                             12,350
capital        28,849 16,716 4,989 27,357
    Royalties                                                                          
- 7,550 2,142 7,385 1,055 -
    Reclamation           2,349                                                     1,011
and other 1,133 2,141 2,742 1,462
closure
accretion and
depreciation
    Leases &           2,841                                                                 
other 22,229 865 797 131 86
All-in      254,555                                        27,140
sustaining cost 166,627 79,365 32,511 74,048
AISC per pound                                                                          
($/lb) 3.43 2.49 3.15 4.05 3.82 0.56

Nine months
ended
September 30,
2024
Operations Candelaria Caserones Chapada Eagle Neves-Corvo Zinkgruvan
($000s, unless (Cu) (Cu) (Cu)  (Ni)  (Cu) (Zn) Total
otherwise
noted)
Sales volumes
(Contained
metal):
Tonnes                                                          49,459
                108,965 87,117 29,415 4,574 21,491
 
Pounds (000s)                                                 109,038
240,226 192,060 64,849 10,084 47,379
Production    
costs 1,754,677
               
  
Less: Royalties        
and other (61,427)
   
1,693,250
Deduct: By      
-product (597,173)
credits
Add: Treatment        
and refining 129,361
Cash cost                                      107,898           43,780    
438,494 481,756 113,607 39,903 1,225,438
Cash cost per                                                                                    
pound ($/lb) 1.83 2.51 1.75 3.96 2.28 0.40
Add: Sustaining                                                    43,188
capital        220,194 100,977 74,927 15,998 76,622
    Royalties                                                                     
11,038 24,443 5,891 6,746 3,168 -
    Reclamation                                                                    3,286
and other 6,441 3,195 7,780 5,033 4,036
closure
accretion and
depreciation
    Leases &                                                                        
other 7,684 51,773 2,496 4,258 405 235
All-in                                      192,129           90,489
sustaining cost 683,851 662,144 204,701 71,938
AISC per pound                                                                                    
($/lb) 2.85 3.45 3.16 7.13 4.06 0.83

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 refining 125,390
Cash cost        507,884                               128,206           38,454        
106,866 165,170 47,228 993,808
Cash cost per                                                                                    
pound ($/lb) 2.18 1.60 2.44 2.09 2.53 0.36
Add: Sustaining        300,796                                               42,812
capital        28,849 52,433 15,653 74,551
    Royalties                                                                              
- 7,550 6,394 17,991 2,868 -
    Reclamation            7,100                                                         2,811
and other 1,133 5,789 8,711 4,082
closure
accretion and
depreciation
    Leases &            9,638                                                             
other 22,229 3,002 2,441 437 288
All-in        825,418                               210,144           84,365
sustaining cost 166,627 232,788 92,024
AISC per pound                                                                                    
($/lb) 3.55 2.49 3.44 4.08 4.14 0.80

Adjusted EBITDA can be reconciled to Net Earnings (Loss) on the Company's Condensed Interim Consolidated Statement of Earnings as follows:

Three months Nine months
endedSeptember endedSeptember
30, 30,
($thousands) 2024 2023 2024 2023
Net earnings 127,829   21,883  343,117  248,496
Add back:
Depreciation, depletion 200,074 179,788  582,224  430,540
and amortization     
Finance income and costs  39,152  36,212  111,153   67,808
Income taxes 96,940   84,891  203,668  113,983
463,995  322,774 1,240,162  860,827
Unrealized foreign  12,901  9,096    574  (1,545)
exchange loss (gain)
Unrealized losses (gains) (30,613)  47,504  18,245  41,241
on derivative contracts
Ojos del Salado sinkhole 871  (1,247)  550   15,235
(recoveries) expenses
Revaluation loss (gain) on  (3,957)  3,449  (6,472)     (453)
marketable securities
Caserones inventory fair    -  32,185    -  32,185
value adjustment
Partial suspension of 14,813     - 24,637     -
underground operations at
Eagle
Revaluation of Chapada       -   370    307   2,166
derivative liability
Revaluation of Caserones   -    - (11,728)    -
purchase option
Write-down of capital  781    -  17,969    -
works in progress
Gain on disposal of      -    -   -   (5,718)
subsidiary
Other  (1,108)   990 (2,847)    (120)
Total adjustments - EBITDA    (6,312)   92,347   41,235 82,991
Adjusted EBITDA  457,683  415,121 1,281,397 943,818

Adjusted Earnings and Adjusted EPS can be reconciled to Net Earnings (Loss) Attributable to Lundin Mining Shareholders on the Company's Condensed Interim Consolidated Statement of Earnings as follows:

Three months Nine months
endedSeptember 30, endedSeptember 30,
($thousands, except share and per share amounts) 2024 2023 2024 2023
Net earnings attributable to Lundin Mining shareholders           101,160              (2,964)           236,632          
202,765
Add back:
Total adjustments - EBITDA              (6,312)              92,347             41,235             
82,991
Tax effect on adjustments              (8,135)            (20,758)              (7,921)           
(23,938)
Deferred tax expense due to change in tax rate                                   25,700                                  
- - 25,700
Deferred tax arising from foreign exchange translation           (12,387)              12,317           (32,353)           
(15,972)
Non-controlling interest on adjustments              (1,867)            (18,734)                2,164           
(18,665)
Other     (1)              (2,648)       -        3,645
Total adjustments           (28,702)              88,224                3,125             
53,761
Adjusted             72,458              85,260           239,757          
earnings                                                                       256,526

Basic weighted average number of shares outstanding   776,794,756   773,147,920   774,574,731   772,214,160

Net earnings (loss) attributable to shareholders                                                                                          
0.13 - 0.31 0.26
Total adjustments            (0.04)                                                       
0.11 - 0.07
Adjusted earnings per share                                                                                                                      
0.09 0.11 0.31 0.33

Free Cash Flow from Operations and Free Cash Flow can be reconciled to Cash provided by Operating Activities on the Company's Condensed Interim Consolidated Statement of Cash Flows as follows:

Three months Nine months
endedSeptember endedSeptember
30, 30,
($thousands) 2024 2023 2024 2023
Cash provided by                                        
operating activities 139,275 303,812 898,576 710,531
Sustaining capital                                  
expenditures (151,173) (180,013) (532,236) (523,397)
General exploration                                                  
and business 13,620 12,734 40,607 41,192
development
Free cash flow from                                             
operations 1,722 136,533 406,947 228,326
General exploration                                          
and business (13,620) (12,734) (40,607) (41,192)
development
Expansionary capital                                      
expenditures (49,926) (52,662) (193,027) (234,831)
Free cash flow                                            
(61,824) 71,137 173,313 (47,697)

Adjusted Operating Cash Flow and Adjusted Operating Cash Flow per Share can be reconciled to Cash Provided by Operating Activities on the Company's Condensed Interim Consolidated Statement of Cash Flows as follows:

Three months Nine months
endedSeptember endedSeptember
30, 30,
($thousands, except share and per share 2024 2023 2024 2023
amounts)
Cash provided by operating activities                                        
139,275 303,812 898,576 710,531
Changes in non-cash working capital items                                              
165,901 12,655 90,140 (48,360)
Adjusted operating cash flow                                        
                                                305,176 316,467 988,716 662,171
 

Basic weighted average number of shares   776,794,756   773,147,920   774,574,731   772,214,160
outstanding
Adjusted operating cash flow per share     $                                                                 
0.39 0.41 1.28 0.86

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 condensed interim consolidated balance sheet as follows:

($thousands) September 30, 2024 December 31, 2023
Debt and lease liabilities     (1,692,718)    (1,273,162)
Current portion of total debt     (397,141)     (212,646)
and lease liabilities       
Less deferred financing fees    (8,230)    (6,374)
(netted in above)
  (2,098,089)   (1,492,182)
Cash and cash equivalents       295,540      268,793
Net debt    (1,802,549)     (1,223,389)
Lease liabilities     260,895     277,208
Net debt excluding lease   (1,541,654)   (946,181)
liabilities

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 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; expansion projects and the realization of additional value; expectations regarding, including the ability and timing to complete, the acquisition of Filo Corp. and the establishment and operation of a 50/50 joint arrangement with BHP and the anticipated project development and other plans and expectations with respect to such acquisition and joint arrangement; the Company's integration of acquisitions and expansions 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 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, zinc, gold, nickel and other metals; anticipated costs; ability to achieve goals; the prompt and effective integration of acquisitions, including the completion of the acquisition of Filo Corp., the establishment of the 50/50 joint arrangement with BHP and the realization of synergies and economies of scale in connection therewith; 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 information and undue reliance should not be placed on such 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; the inability to currently control Filo Corp. and the ability to satisfy the relevant conditions and complete the acquisition of Filo Corp. and establish the 50/50 joint arrangement with BHP on the proposed terms and schedule; risks associated with acquisitions, expansions 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, joint arrangements 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; mining rates and rehabilitation projects; mill shut downs; 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 and nine months ended September 30, 2024 and the "Risks and Uncertainties" section of the Company's Annual Information Form for the year ended December 31, 2023, which are available on SEDAR+ at www.sedarplus.com under the Company's profile.

All of the forward-looking information 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, 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.

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