TORONTO, April 27,
2022 /CNW/ - (TSX: LUN) (Nasdaq Stockholm:
LUMI) Lundin Mining Corporation ("Lundin Mining" or the
"Company") today reported earnings attributable to Lundin Mining
shareholders of $345.1 million
($0.47 per share) in its first
quarter 2022. Adjusted earnings1 were $295.6 million ($0.40 per share) and adjusted EBITDA1
were $587.8 million for the quarter.
View PDF.
Peter Rockandel, President and
CEO commented, "We delivered strong financial results in the
first quarter, highlighted by adjusted EBITDA of $588M, generation of $473M of adjusted operating cash
flow1, and record adjusted EPS1 of
$0.40.
Overall, our operations performed well, particularly as we
adapted to new challenges of the fast-spreading COVID Omicron
variant, which had the greatest impact on absences since the onset
of the pandemic. Candelaria, Eagle, Zinkgruvan and Neves-Corvo
operations, including ramp up of the Zinc Expansion Project, are
all on plan for the year. Chapada has had a slow start as
abnormally high rainfall and COVID-related absences impacted our
mining activities, though opportunities to catch up on waste
stripping and production plans are being reviewed.
On the growth front, exploration at Chapada's Saúva discovery
continues to deliver impressive results expanding the mineralized
footprint, we are working to include the Upper Keel zone at Eagle
into next year's update of the life-of-mine plan with the aim of
first ore in 2024, and we are excited to soon be closing our
acquisition of Josemaria Resources, meaningfully increasing our
copper and gold growth profile."
Summary Financial Results
|
|
Three months
ended
|
|
|
March
31,
|
US$ Millions (except
per share amounts)
|
|
2022
|
|
2021
|
Revenue
|
|
991.1
|
|
681.5
|
Gross profit
|
|
478.8
|
|
252.5
|
Attributable net
earnings 2
|
|
345.1
|
|
135.2
|
Net earnings
|
|
378.1
|
|
154.2
|
Adjusted
earnings1
|
|
295.6
|
|
144.4
|
Adjusted
EBITDA1
|
|
587.8
|
|
354.4
|
Basic and diluted
earnings per share2
|
|
0.47
|
|
0.18
|
Basic adjusted earnings
per share1
|
|
0.40
|
|
0.20
|
Cash flow from
operations
|
|
317.3
|
|
158.7
|
Adjusted operating cash
flow1
|
|
472.8
|
|
279.8
|
Adjusted operating cash
flow per share1
|
|
0.64
|
|
0.38
|
Free cash
flow1
|
|
186.5
|
|
56.0
|
Cash and cash
equivalents
|
|
733.9
|
|
181.3
|
Net cash
(debt)1
|
|
704.9
|
|
(8.1)
|
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 months ended March 31, 2022
and the Reconciliation of Non-GAAP Measures section at the end of
this news release.
2
Attributable to shareholders of Lundin Mining
Corporation.
|
|
Highlights
Operational Performance
Overall, operations performed well during the quarter and the
Company remains on track to achieve overall production guidance.
Operations adapted to new challenges of the fast-spreading COVID
Omicron variant, which had the greatest impact on absences since
the onset of the pandemic, as the Company continued to adhere to
precautionary measures necessary to protect the safety of the
workforce and communities. Copper and gold production exceeded the
prior year quarter, while zinc production was in-line and nickel
production was lower than the prior year quarter, as
expected. Cash costs1 for the quarter were
better than the prior year quarter at all sites except Eagle and
Chapada, where cash costs were in accordance with expectations.
Candelaria (80% owned): Candelaria produced 39,503
tonnes of copper, and approximately 22,000 ounces of gold in
concentrate on a 100% basis in the quarter, in-line with
expectations. Copper and gold production were higher than the prior
year quarter primarily due to better grades. Copper cash cost of
$1.58/lb for the current quarter was
better than the prior year quarter due mainly to positive foreign
exchange effects and higher sales volumes.
Chapada (100% owned): Chapada produced 10,100 tonnes of
copper and approximately 12,000 ounces of gold in concentrate in
the quarter. First quarter production was less than planned as ore
release and mining activities were impacted by abnormally high
rainfall and COVID related absences necessitating a greater portion
of the mill feed to be sourced from stockpile; however copper
production was higher than the prior year quarter due to higher
recoveries. Copper cash cost of $1.82/lb for the quarter was higher than the
prior year quarter due mainly to higher mining costs resulting from
inflation.
Eagle (100% owned): Eagle produced 4,281 tonnes of
nickel and 4,420 tonnes of copper during the quarter. While
production was better than planned, it was lower than the prior
year quarter, primarily due to lower head grades. Nickel cash cost
of negative $1.25/lb was unfavourable
compared to the prior year quarter due to lower sales volumes,
partially offset by increased by-product credits, and remained in
the first quartile of industry cash cost.
Neves-Corvo (100% owned): Neves-Corvo produced 9,860
tonnes of copper for the quarter and 14,751 tonnes of zinc. Higher
copper production in the current quarter compared to the prior year
quarter resulted from better grades and throughput. Zinc production
was higher in the quarter over prior year quarter largely driven by
the recent start-up of the Zinc Expansion Project ("ZEP"), though
partially offset by lower recoveries. A voluntary temporary
suspension of operations took place following a fatal accident on
March 30, 2022. Initial lessons
learned from the fatality have been shared across the Company's
operations, and Lundin Mining remains committed to safe production.
Copper cash cost of $1.70/lb for the
quarter was better than the prior year quarter due to favourable
zinc by-product credits.
Zinkgruvan (100% owned): Zinc production of 17,640
tonnes was lower than the prior year comparable period but in-line
with expected volumes. Lead production of 6,728 tonnes was higher
than the prior year quarter due to better grades and recoveries.
Zinc cash cost of $0.27/lb was better
than the prior year quarter largely due to higher by-product
credits.
Total Production
(Contained metal in
concentrate)
|
2022
|
2021
|
Q1
|
Total
|
Q4
|
Q3
|
Q2
|
Q1
|
Copper
(t)a
|
65,081
|
262,884
|
76,996
|
65,077
|
63,457
|
57,354
|
Zinc (t)
|
32,391
|
143,797
|
36,830
|
38,769
|
34,833
|
33,365
|
Gold
(koz)a
|
34
|
167
|
46
|
46
|
41
|
34
|
Nickel (t)
|
4,281
|
18,353
|
4,101
|
4,124
|
4,774
|
5,354
|
a. Candelaria's production is on a 100%
basis.
|
|
|
|
|
|
|
|
|
|
|
1This is a
non-GAAP measure. Please refer to the Company's discussion of
non-GAAP measures in its Management's Discussion and Analysis for
the three months ended March 31, 2022.
|
|
Corporate Highlights
- On February 17, 2022, the Company
announced the retirement of Mr. Lukas
Lundin as the Chair of Lundin Mining's Board of Directors,
effective at the Company's 2022 Annual Shareholders Meeting.
- On February 17, 2022, the Company
declared a regular dividend of C$0.09
per share and a semi-annual performance dividend of C$0.11, for a combined total of C$0.20 per share of dividends declared.
- On March 30, 2022, the Company
reported a fatality at its Neves-Corvo mine in Portugal. Operations were voluntarily
temporarily suspended and relevant authorities were notified.
Mandatory regulatory investigations were commenced and the Company
continues to cooperate fully with those investigations.
Financial Performance
- Gross profit for the quarter ended March
31, 2022 was $478.8 million,
an increase of $226.3 million
compared to the first quarter of 2021. The increase was primarily
due to higher revenues driven by higher metal prices and price
adjustments ($238.5 million) and
higher sales volumes.
- Net earnings for the current quarter were $378.1 million, a $223.9
million increase over the first quarter of 2021 primarily
attributable to higher gross profit.
- Adjusted earnings for the quarter were $295.6 million, compared to $144.4 million in the prior year quarter, a
reflection of higher gross profit partially offset by higher income
taxes.
Financial Position and Financing
- Cash and cash equivalents increased by $139.8 million during the quarter ended
March 31, 2022 to $733.9 million, with cash flow from operations of
$317.3 million exceeding capital
expenditures of $144.9 million. In
connection with the definitive agreement to acquire Josemaria
Resources Inc, ("Josemaria Resources") and its copper-gold project
located in the San Juan province of Argentina, the Company provided a $100.0 million bridge loan facility; during the
quarter $40.5 million was advanced to
Josemaria Resources under this facility.
- Net cash as at March 31, 2022 was
$704.9 million, an increase of
$141.8 million from the net cash
balance as at December 31, 2021. The
increase in net cash is attributable to the positive cash flow
impacts previously described.
- As of April 27, 2022, the Company
had a cash and net cash balance of approximately $680.0 million and $650.0
million, respectively, after paying dividends of
approximately $115.0 million on
April 13, 2022.
Outlook
During the quarter, continuing risks associated with global
inflation as well as supply chain delivery persisted. These risks
have been further heightened with the Russian-Ukraine conflict. To
date, there has not been a significant impact on our operations
relating to supply chain availability; however, inflationary
increases on energy, fuel, contractor costs and consumables are
expected to impact operating costs for the remainder of the year.
The Company has implemented procurement strategies to mitigate the
impact and to continue to monitor these
risks.
Total copper, zinc and nickel production are all tracking above
the mid-point of the Company's 2022 guidance ranges of 258,000t –
282,000t of copper, 188,000t – 203,000t of zinc, and 15,000t –
18,000t of nickel. Gold production is currently trending at the low
end of the 153,000oz – 163,000oz range.
Candelaria, Neves-Corvo, Eagle and Zinkgruvan metal production
are on plan and tracking well to achieve annual guidance.
Opportunities to increase waste stripping to improve ore
availability and production over the remainder of the year at
Chapada are being evaluated and actioned; production is currently
trending below the annual guidance.
Forecast cash costs remain in-line with annual guidance for
Candelaria, Neves-Corvo and Zinkgruvan with expected inflationary
impacts on consumables being largely offset by production volumes
and by-product metal prices. Chapada's forecast copper cash cost is
trending above annual guidance considering the impact of inflation
on prices of consumables, the strengthening local currency and
production volumes. Eagle's forecast nickel cash cost is trending
positively compared to annual guidance, primarily due to copper
by-product prices.
Capital expenditures at Eagle, Neves-Corvo and Zinkgruvan are
all tracking well to annual guidance. Candelaria and Chapada
capital expenditures are trending above annual guidance with
inflationary cost increases on capitalized stripping, including
diesel, explosives and other consumables.
Total exploration expenditures are on target to be $45.0 million in 2022.
About Lundin Mining
Lundin Mining is a diversified Canadian base metals mining
company with operations in Brazil,
Chile, Portugal, Sweden and the
United States of America, primarily producing copper, zinc,
gold and nickel.
The information in this release is subject to the disclosure
requirements of Lundin Mining under the EU Market Abuse Regulation.
The information was submitted for publication, through the agency
of the contact persons set out below on April 27, 2022 at 18:15
Eastern Time.
Reconciliation of Non-GAAP Measures
The Company uses certain performance measures in its analysis.
These performance measures have no standardized meaning within
generally accepted accounting principles under International
Financial Reporting Standards, and therefore, amounts presented may
not be comparable to similar data presented by other mining
companies. For additional details please refer to the Company's
discussion of non-GAAP and other performance measures in its
Management's Discussion and Analysis for the three months ended
March 31, 2022 which is available on
SEDAR at www.sedar.com.
Adjusted EBITDA can be reconciled to the Company's Condensed
Interim Consolidated Statement of Earnings as follows:
|
|
Three months ended March 31,
|
($thousands)
|
|
2022
|
|
2021
|
Net earnings
|
|
378,109
|
|
154,219
|
Add back:
|
|
|
|
|
Depreciation, depletion
and amortization
|
|
129,837
|
|
125,910
|
Finance income and
costs
|
|
14,972
|
|
11,096
|
Income taxes
|
|
77,206
|
|
69,902
|
|
|
|
600,124
|
|
361,127
|
Unrealized foreign
exchange loss
|
|
7,853
|
|
962
|
Revaluation loss (gain)
on derivative liability
|
|
3,293
|
|
(7,103)
|
Revaluation gain on
marketable securities
|
|
(3,892)
|
|
(549)
|
Gain on disposal of
subsidiary
|
|
(16,828)
|
|
-
|
Other
|
|
(2,776)
|
|
2
|
Total adjustments -
EBITDA
|
|
(12,350)
|
|
(6,688)
|
Adjusted EBITDA
|
|
587,774
|
|
354,439
|
Adjusted earnings and adjusted earnings per share can be
reconciled to the Company's Condensed Interim Consolidated
Statement of Earnings as follows:
|
|
Three months ended March 31,
|
|
($thousands, except
share and per share amounts)
|
|
2022
|
|
2021
|
|
Net earnings
attributable to:
Lundin Mining shareholders
|
|
345,078
|
|
135,185
|
|
Add back:
|
|
|
|
|
|
Total adjustments -
EBITDA
|
|
(12,350)
|
|
(6,688)
|
|
Tax effect on
adjustments
|
|
(2,034)
|
|
3,129
|
|
Deferred tax arising
from foreign exchange translation
|
|
(34,954)
|
|
12,909
|
|
Other
|
|
(132)
|
|
(166)
|
|
Total
adjustments
|
|
(49,470)
|
|
9,184
|
|
Adjusted earnings
|
|
295,608
|
|
144,369
|
|
|
|
|
|
|
|
Basic weighted average
number of shares outstanding
|
|
736,410,739
|
|
736,891,008
|
|
|
|
|
|
|
|
Net earnings
attributable to shareholders
|
|
0.47
|
|
0.18
|
|
Total
adjustments
|
|
(0.07)
|
|
0.02
|
|
Adjusted earnings per share
|
|
0.40
|
|
0.20
|
|
Adjusted operating cash flow and adjusted operating cash flow
per share can be reconciled to cash flow provided by
operating as follows:
|
|
|
Three months ended March 31,
|
($thousands, except
share and per share amounts)
|
|
2022
|
2021
|
|
|
|
|
Cash provided by
operating activities
|
|
317,257
|
|
158,675
|
Changes in non-cash
working capital items
|
|
155,548
|
|
121,170
|
Adjusted operating cash
flow
|
|
472,805
|
|
279,845
|
|
|
|
|
|
|
Basic weighted average
number of shares outstanding
|
|
736,410,739
|
|
736,891,008
|
Adjusted operating cash flow per
share
|
|
0.64
|
|
0.38
|
Free cash flow can be reconciled to cash provided by operating
activities as follows:
|
|
Three months ended March 31,
|
($thousands)
|
|
2022
|
|
2021
|
Cash provided by
operating activities
|
|
317,257
|
|
158,675
|
Sustaining capital
expenditures
|
|
(130,758)
|
|
(102,644)
|
Free cash flow
|
|
186,499
|
|
56,031
|
|
|
|
|
|
Net cash (debt) can be reconciled as follows:
($thousands)
|
|
March 31, 2022
|
|
March 31,
2021
|
Cash and cash
equivalents
|
|
733,876
|
|
181,322
|
|
|
|
|
|
Current portion of
total debt and lease liabilities
|
|
13,488
|
|
120,480
|
Debt and lease
liabilities
|
|
15,494
|
|
67,490
|
Deferred financing fees
(netted in above)
|
|
-
|
|
1,462
|
|
|
28,982
|
|
189,432
|
Net cash (net debt)
|
|
704,894
|
|
(8,110)
|
|
|
|
|
|
Cash Cost and AISC can be reconciled to the Company's production
costs as follows:
|
Three months ended March 31,
2022
|
|
Operations
|
|
Candelaria
|
|
Chapada
|
|
Eagle
|
|
Neves-Corvo
|
|
Zinkgruvan
|
|
|
|
|
($000s, unless
otherwise noted)
|
|
(Cu)
|
|
(Cu)
|
|
(Ni)
|
|
(Cu)
|
|
(Zn)
|
|
Total
|
|
|
Sales volumes
(Contained metal in concentrate):
|
|
|
|
|
Tonnes
|
|
38,448
|
|
12,804
|
|
3,267
|
|
8,484
|
|
15,802
|
|
|
|
|
Pounds
(000s)
|
|
84,763
|
|
28,228
|
|
7,202
|
|
18,704
|
|
34,837
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
|
|
|
|
|
|
|
|
|
|
382,427
|
|
|
Less: Royalties and
other
|
|
|
|
|
|
|
|
|
|
|
|
(15,877)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
366,550
|
|
|
Deduct: By-product
credits
|
|
|
|
|
|
|
|
|
|
|
|
(181,007)
|
|
|
Add: Treatment and
refining charges
|
|
|
|
|
|
|
|
|
|
|
|
32,155
|
|
|
Cash cost
|
|
133,985
|
|
51,437
|
|
(8,979)
|
|
31,797
|
|
9,458
|
|
217,698
|
|
|
Cash cost per pound ($/lb)
|
|
1.58
|
|
1.82
|
|
(1.25)
|
|
1.70
|
|
0.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Sustaining capital
expenditure
|
|
82,964
|
|
14,455
|
|
4,460
|
|
19,516
|
|
9,039
|
|
|
|
|
Royalties
|
|
-
|
|
3,664
|
|
7,791
|
|
2,813
|
|
-
|
|
|
|
|
Interest expense
|
|
1,433
|
|
1,721
|
|
401
|
|
36
|
|
22
|
|
|
|
|
Leases & other
|
|
2,504
|
|
1,092
|
|
4,867
|
|
497
|
|
1,333
|
|
|
|
|
All-in sustaining
cost
|
|
220,886
|
|
72,369
|
|
8,540
|
|
54,659
|
|
19,852
|
|
|
|
|
AISC per pound ($/lb)
|
|
2.61
|
|
2.56
|
|
1.19
|
|
2.92
|
|
0.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31,
2021
|
|
Operations
|
|
Candelaria
|
|
Chapada
|
|
Eagle
|
|
Neves-Corvo
|
|
Zinkgruvan
|
|
|
|
|
($000s, unless
otherwise noted)
|
|
(Cu)
|
|
(Cu)
|
|
(Ni)
|
|
(Cu)
|
|
(Zn)
|
|
Total
|
|
|
Sales volumes
(Contained metal in concentrate):
|
|
|
|
|
Tonnes
|
|
35,516
|
|
7,379
|
|
4,118
|
|
6,565
|
|
15,703
|
|
|
|
|
Pounds
(000s)
|
|
78,299
|
|
16,268
|
|
9,079
|
|
14,473
|
|
34,619
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
cost
|
|
|
|
|
|
|
|
|
|
|
|
303,113
|
|
|
Less: Royalties and
other
|
|
|
|
|
|
|
|
|
|
|
|
(6,505)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
296,608
|
|
|
Deduct: By-product
credits
|
|
|
|
|
|
|
|
|
|
|
|
(125,380)
|
|
|
Add: Treatment
and refining charges
|
|
|
|
|
|
|
|
|
|
|
|
28,993
|
|
|
Cash cost
|
|
129,071
|
|
21,699
|
|
(14,730)
|
|
37,753
|
|
26,428
|
|
200,221
|
|
|
Cash cost per pound ($/lb)
|
|
1.65
|
|
1.33
|
|
(1.62)
|
|
2.61
|
|
0.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Sustaining capital
expenditure
|
|
70,742
|
|
8,970
|
|
3,529
|
|
8,946
|
|
10,411
|
|
|
|
|
Royalties
|
|
-
|
|
2,073
|
|
6,846
|
|
704
|
|
-
|
|
|
|
|
Interest expense
|
|
1,119
|
|
859
|
|
177
|
|
20
|
|
18
|
|
|
|
|
Leases & other
|
|
2,056
|
|
669
|
|
2,591
|
|
1,546
|
|
1,381
|
|
|
|
|
All-in sustaining
cost
|
|
202,988
|
|
34,270
|
|
(1,587)
|
|
48,969
|
|
38,238
|
|
|
|
|
AISC per pound ($/lb)
|
|
2.59
|
|
2.11
|
|
(0.17)
|
|
3.38
|
|
1.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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;
expectations and ability to complete the Josemaria Resources Inc.
transaction; the Company's integration of acquisitions and any
anticipated benefits thereof, including the Josemaria Resources
Inc. 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 labor;
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: 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; global financial conditions and
inflation; changes in the Company's share price, and volatility in
the equity markets in general; volatility and fluctuations in metal
and commodity demand and prices; changing taxation regimes; delays
or the inability to obtain, retain or comply with permits; reliance
on a single asset; unavailable or inaccessible infrastructure,
infrastructure failures, and risks related to ageing
infrastructure; risks related to negative publicity with respect to
the Company or the mining industry in general; health and safety
risks; pricing and availability of key supplies and services; the
threat associated with outbreaks of viruses and infectious
diseases, including the COVID-19 virus; the inability to currently
control Josemaria Resources Inc. and the ability to satisfy the
conditions and consummate the Josemaria Resources Inc. transaction
on the proposed terms and expected schedule; exchange rate
fluctuations; risks relating to attracting and retaining of highly
skilled employees; risks inherent in and/or associated with
operating in foreign countries and emerging markets; climate
change; regulatory investigations, enforcement, sanctions and/or
related or other litigation; existence of significant shareholders;
uncertain political and economic environments, including in
Brazil and Chile; 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; indebtedness; liquidity risks and limited financial
resources; funding requirements and availability of financing;
exploration, development or mining results not being consistent
with the Company's expectations; risks related to the environmental
regulation and environmental impact of the Company's operations and
products and management thereof; activist shareholders and proxy
solicitation matters; reliance on key personnel and reporting and
oversight systems, as well as third parties and consultants in
foreign jurisdictions; historical environmental liabilities and
ongoing reclamation obligations; information technology and
cybersecurity risks; risks related to mine closure activities,
reclamation obligations, and closed and historical sites; social
and political unrest, including civil disruption in Chile; the inability to effectively compete in
the industry; financial projections, including estimates of future
expenditures and cash costs, and estimates of future production may
be unreliable; 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; 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; enforcing legal rights in
foreign jurisdictions; community and stakeholder opposition;
changes in laws, regulations or policies including but not limited
to those related to mining regimes, permitting and approvals,
environmental and tailings management, labor, trade relations, and
transportation; risks associated with the structural stability of
waste rock dumps or tailings storage facilities; dilution; risks
relating to dividends; conflicts of interest; counterparty and
credit risks and customer concentration; the estimation of asset
carrying values; challenges or defects in title; internal controls;
relationships with employees and contractors, and the potential for
and effects of labor disputes or other unanticipated difficulties
with or shortages of labor or interruptions in production;
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; compliance with
environmental, health and safety regulations and laws; and other
risks and uncertainties, including but not limited to those
described in the "Risk and Uncertainties" section of the Company's
AIF and the "Managing Risks" section of the Company's MD&A for
the year ended December 31, 2021,
which are available on SEDAR at www.sedar.com 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.
SOURCE Lundin Mining Corporation