Bay Street News

Lundin Mining Provides Operational Outlook & Update

TORONTO, Nov. 28, 2018 (GLOBE NEWSWIRE) — (TSX: LUN; Nasdaq Stockholm: LUMI) Lundin Mining Corporation (“Lundin Mining” or the “Company”) provides the following production guidance for the three-year period of 2019 through 2021, as well as cash costs, capital and exploration expenditure forecasts for 2019. Key highlights are as follows:

Production Outlook (tonnes of metal) 2019 – 20211

                         
    2019   2020   2021
Copper          
  Candelaria (100% basis) 145,000 155,000   165,000 175,000   175,000 185,000
  Eagle 12,000 15,000   19,000 22,000   14,000 17,000
  Neves-Corvo 40,000 45,000   41,000 46,000   41,000 46,000
  Zinkgruvan 2,000 3,000   2,000 3,000   2,000 3,000
Total Copper 199,000 218,000   227,000 246,000   232,000 251,000
                         
Zinc                      
  Neves-Corvo 71,000 76,000   120,000 130,000   155,000 160,000
  Zinkgruvan 76,000 81,000   75,000 80,000   76,000 81,000
Total Zinc 147,000 157,000   195,000 210,000   231,000 241,000
                         
Nickel                      
  Eagle 12,000 15,000   16,000 19,000   13,000 16,000
Total Nickel 12,000 15,000   16,000 19,000   13,000 16,000
                       

2019 Cash Cost Guidance2

 

 

         
  Proposed Guidance 2018 (tonnes)
         
  C1 Cash Cost2 2019  
  Copper    
    Candelaria $1.60/lb3  
    Neves-Corvo $1.70/lb  
         
  Zinc    
    Zinkgruvan $0.40/lb  
         
  Nickel    
    Eagle $2.20/lb  
         

2019 Capital Expenditure Guidance

       
  Capital Expenditures ($ millions)4 2019
  Candelaria (100% basis):  
    Capitalized Stripping 130
    Los Diques TSF 10
    New Mine Fleet Investment 75
    Candelaria Mill Optimization Project 50
    Candelaria Underground Development 40
    Other Sustaining  70
  Candelaria Sustaining 375
  Eagle Sustaining 15
  Neves-Corvo Sustaining 65
  Zinkgruvan Sustaining 50
  Total Sustaining Capital 505
       
  Eagle East 30
  ZEP (Neves-Corvo)  210
  Total Expansionary Capital 240
       
  Total Capital Expenditures 745
       

2019 Exploration Investment Guidance

Exploration expenditures are planned to be $80 million in 2019. Approximately $67 million will be spent on in-mine and near-mine targets ($14 million at Candelaria, $23 million at Eagle, $23 million at Zinkgruvan and $7 million at Neves-Corvo), with the remainder to advance activities on exploration stage projects, primarily in South America.

Conference Call

The Company will hold a telephone conference call and webcast at 08:00am ET, 14:00 CET on Thursday, November 29, 2018 to answer analyst and investor questions. Conference call details are provided below:

Please call in 10 minutes before the conference starts and stay on the line (an operator will be available to assist you).

Call-in number for the conference call (North America): +1 617 826 1698
Call-in number for the conference call (North America Toll Free): +1 877 648 7976
Call-in number for the conference call (Sweden): +46 (0) 8 5661 9361

To view the live webcast presentation, please log on using this direct link: https://www.webcaster4.com/Webcast/Page/1266/28514

The presentation slideshow will also be available in PDF format for download from the Lundin Mining website http://www.lundinmining.com before the conference call.

A replay of the telephone conference will be available after the completion of the conference call through December 9, 2018.

Replay numbers:

North America: +1 855 859 2056 or +1 404 537 3406
The passcode for the replay is: 7734338

A replay of the webcast will be available by clicking on the direct link above.

About Lundin Mining

Lundin Mining is a diversified Canadian base metals mining company with operations in Chile, the United States of America, Portugal and Sweden, primarily producing copper, nickel and zinc. In addition, Lundin Mining holds an indirect 24% equity stake in the Freeport Cobalt Oy business, which includes a cobalt refinery located in Kokkola, Finland.

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 28, 2018 at 5:30 p.m. Eastern Time.

For further information, please contact:
Mark Turner, Director, Business Valuations and Investor Relations:  +1-416-342-5565
Robert Eriksson, Investor Relations Sweden:  +46 8 545 015 50

Cautionary Statement in Forward-Looking Information
Certain of the statements made and information contained herein or incorporated by reference is “forward-looking information” within the meaning of applicable Canadian securities laws. All statements other than statements of historical facts in this news release constitute forward-looking information based on current expectations, estimates, forecasts and projections as well as beliefs and assumptions made by the Company’s management. Such forward-looking statements include but are not limited to those regarding the Company’s outlook and guidance on estimated metal production and production profile, costs, and exploration and capital expenditures; the Zinc Expansion Project at Neves-Corvo and the Eagle East project ; Mineral Reserves, Mineral Resources, life-of-mine (or mine life); all of which are estimates (and the parameters, expectations and assumptions underlying, and realization of, such estimates including, but not limited to metal price assumptions, and permitting and development expectations. Words such “aim”, “anticipate”, “assumption”, “believe”, “budget”, “commitment”, “estimate, “expansionary”, “expect”, “exploration”, “flexibility”, “focus”, “forecast”, “foreseeable”, “forward”, “future”, “growth”, “guidance”, “initiative”, “on-track”, “outlook”, “plan”, “positioning”, “potential”, “priority”, “profile”, “project”, “ramp-up”, “risk”, “schedule”, “study”, “target” or “view” , or variations of or similar such terms, or statements that certain actions, events or results could, may, might or will be taken or occur or be achieved,, or variations of these terms or similar terminology or statements that certain actions, events or results could , may, might or will be taken or occur or be achieved are intended to identify such forward-looking information. These estimates, expectations and other forward-looking statements are based on a number of assumptions and are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties inherent in and/or relating to: estimates of future production and operations, cash and all-in sustaining costs; metal and commodity price fluctuations; foreign currency fluctuations; mining operations including but not limited to environmental hazards, industrial accidents, ground control problems and flooding; geology including, but not limited to, unusual or unexpected geological formations, estimation and modelling of grade, tonnes, metallurgy continuity of mineral deposits, dilution, and Mineral Resources and Mineral Reserves, and actual ore mined and/or metal recoveries varying from such estimates; mine plans, and life of mine estimates; the possibility that future exploration, development or mining results will not be consistent with expectations; the potential for and effects of labour disputes or shortages, or other unanticipated difficulties with or interruptions in production; potential for unexpected costs and expenses including, without limitation, for mine closure and reclamation at current and historical operations; uncertain political and economic environments; changes in laws or policies, foreign taxation, delays or the inability to obtain necessary governmental approvals and/or permits, including but not limited to the Alcaparrosa underground mine operating license, the Punta Padrones process operating license and the Ojos del Salado mill tailings line permit at Candelaria which are required by the end of the year; regulatory investigations, enforcement, sanctions and/or related or other litigation; and other risks and uncertainties, including but not limited to those described in the “Managing Risks” section of the Company’s Management’s Discussion and Analysis for the financial period ending December 31, 2017 and completed financial quarters in 2018, and the “Risks and Uncertainties” section of our most recently filed Annual Information Form. In addition, forward-looking information is based on various assumptions including, without limitation, the expectations and beliefs of management; assumed prices of copper, nickel, zinc and other metals; that the Company can access financing, appropriate equipment and sufficient labour; and that the political environment where the Company operates will continue to support the development and operation of mining projects. 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 statements. Accordingly, there can be no assurance that forward-looking information will prove to be accurate, and readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise forward‐looking statements or to explain any material difference between such and subsequent actual events, except as required by applicable law.                                                            

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1 Production Guidance is based on certain estimates and assumptions, including but not limited to: Mineral Resources and Mineral Reserves, geological formations, grade and continuity of deposits and metallurgical characteristics. 
2 C1 cash costs are based on various assumptions and estimates, including, but not limited to: production volumes, as noted above, commodity prices (2018 – Cu: $2.80/lb, Zn: $1.10/lb, Pb: $0.95/lb, Ni: $6.00/lb) foreign currency exchange rates (2018 – €/USD:1.20, USD/SEK:8.00, CLP/USD:620) and operating costs. All figures in are in US$ unless otherwise noted.
3 68% of Candelaria’s total gold and silver production are subject to a streaming agreement and as such C1 cash costs are calculated based on receipt of $408/oz and $4.08/oz, respectively, on gold and silver sales in the year.
4 Forecast capital expenditures have been reported on a cash basis. Discrepancies may exist with other external reports which have been reported on an accrual basis.