TORONTO, Oct. 25,
2022 /CNW/ - (TSX: LUN) (Nasdaq Stockholm: LUMI)
Lundin Mining Corporation ("Lundin Mining" or the
"Company") today reported net loss attributable to Lundin Mining
shareholders of $11.2 million
(($0.01) per share) in the third
quarter and earnings of $281.3
million ($0.37 per share) for
the nine months ended September 30,
2022. Adjusted earnings1 were $30.9 million ($0.04 per share) for the quarter and $288.9 million ($0.38 per share) for the nine months ended
September 30, 2022. Adjusted
EBITDA1 for the three and nine months ended September 30, 2022 were $202.4 million and $938.8
million, respectively.
"Our operations performed well in the third quarter, with
production of all metals tracking to annual guidance ranges.
Despite persistent inflationary conditions, Lundin Mining generated
adjusted EBITDA of over $200 million
and $180 million of adjusted
operating cash flow, demonstrating the quality of our portfolio of
assets," commented Peter
Rockandel, President and CEO.
"Chapada achieved a significant step-up in production and
improvement in cash cost as the operation rebounded from the
weather-impacted first half of the year. Strong operational
performances continued at each of Candelaria, Eagle and Zinkgruvan.
Progress continues to be made ramping up the Neves-Corvo Zinc
Expansion Project, with throughput and metal recoveries improving
in the third quarter, though further improvements and a strong
finish to the year are needed to achieve the zinc production
guidance range and deliver in 2023. We continue to advance our
large-scale Josemaria growth project in a deliberate and
disciplined manner. Engineering work and full review of the capital
costs and project schedule are progressing well, with the aim of
delivering an updated technical report to the market in the second
half of next year."
Summary Financial Results
|
Three months
ended
September
30,
|
|
Nine months
ended
September
30,
|
US$ Millions (except
per share amounts)
|
2022
|
2021
|
|
2022
|
2021
|
Revenue
|
648.5
|
756.4
|
|
2,229.8
|
2,310.2
|
Gross profit
|
82.5
|
303.9
|
|
607.3
|
936.6
|
Attributable net (loss)
earnings2
|
(11.2)
|
173.7
|
|
281.3
|
551.6
|
Net (loss)
earnings
|
(11.2)
|
190.6
|
|
318.2
|
613.2
|
Adjusted earnings
1,2
|
30.9
|
168.4
|
|
288.9
|
539.1
|
Adjusted
EBITDA1
|
202.4
|
411.3
|
|
938.8
|
1,246.5
|
Basic and diluted
earnings per share ("EPS")2
|
(0.01)
|
0.24
|
|
0.37
|
0.75
|
Adjusted
EPS1,2
|
0.04
|
0.23
|
|
0.38
|
0.73
|
Cash flow from
operations
|
36.3
|
523.1
|
|
720.0
|
1,100.8
|
Adjusted operating cash
flow1
|
181.3
|
294.1
|
|
703.9
|
1,005.6
|
Adjusted operating cash
flow per share1
|
0.23
|
0.40
|
|
0.93
|
1.36
|
Free cash
flow1
|
(116.4)
|
407.0
|
|
284.9
|
762.0
|
Cash and cash
equivalents
|
226.9
|
428.3
|
|
226.9
|
428.3
|
Net
cash1
|
177.6
|
390.7
|
|
177.6
|
390.7
|
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, 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
Zinc and nickel production was higher than the prior year
quarter, with copper modestly below, but in-line with expectations.
Production costs and cash costs[1] were higher this quarter
than the prior year quarter primarily due to the year-to-date
inflationary impacts on consumables, particularly diesel and
electricity, as well as on contractor costs, partially offset by
favourable foreign exchange.
Candelaria (80% owned): Candelaria produced 37,192
tonnes of copper, and approximately 21,000 ounces of gold in
concentrate on a 100% basis in the quarter. Copper and gold
production was higher than the comparable prior year quarter due to
higher grades from Phase 10 of the open pit. Current quarter
production costs and copper cash cost of $1.97/lb was higher than the prior year quarter
largely owing to higher mining costs partially offset by favourable
foreign exchange. During the quarter, a sinkhole formed near the
underground Alcaparrosa mine which is part of the Candelaria
operations. Upon detection, the area was immediately isolated and
mining operations at the Alcaparrosa mine remain suspended. The
suspension of the Alcaparrosa mine is estimated to impact
Candelaria's 2022 copper production by approximately 2%.
Chapada (100% owned): Chapada produced 13,988
tonnes of copper and approximately 24,000 ounces of gold in
concentrate in the quarter. Copper and gold production was lower
than the prior year quarter primarily due to processed ore types
impacting grade and metal recoveries, however, production of both
metals increased meaningfully over the first half of this year.
Production costs were higher due to inflationary pressures on
diesel, explosives and electricity. Copper cash cost of
$1.92/lb for the quarter was higher
than the prior year quarter due to higher consumable costs and
lower sales volumes.
Eagle (100% owned): During the quarter Eagle
produced 4,379 tonnes of nickel, higher than the prior year
quarter attributable to higher mill throughput and 3,994 tonnes of
copper which was lower than the prior year quarter due to
anticipated lower grades. Production costs were higher due to
higher consumable costs. Nickel cash cost in the quarter of
$1.05/lb was higher than the prior
year quarter due primarily to lower by-product copper price and
higher production costs.
Neves-Corvo (100% owned): Neves-Corvo produced
7,019 tonnes of copper for the quarter and 22,514 tonnes of zinc.
Copper production was lower than the prior year comparable period,
due primarily to lower throughput, while zinc production was higher
primarily due to increased throughput driven by the ramp-up of the
Zinc Expansion Project ("ZEP"). Production costs and copper cash
cost of $2.69/lb for the quarter were
also higher than the prior year quarter mainly due to inflationary
increases, primarily electricity, though partially offset by
favourable foreign exchange. Cash cost further benefitted from
positive by-product credits. On September
30, 2022, a contractor fatality occurred in the underground
mine leading to a temporary suspension of operations. The operation
restarted on October 5, 2022. The
Company has initiated an independent investigation and is
cooperating with all relevant authorities.
Zinkgruvan (100% owned): Zinc production of
17,813 tonnes was lower than the prior year quarter due to lower
grades while lead production of 7,046 tonnes was consistent with
the prior year quarter. Production costs were higher due to
inflationary increases on input costs partially offset by
favourable foreign exchange. Zinc cash cost of $0.18/lb was lower than the prior year quarter
due to favourable by-product credits and foreign exchange.
Total Production
(Contained metal in
concentrate)a
|
2022
|
2021
|
YTD
|
Q3
|
Q2
|
Q1
|
Total
|
Q4
|
Q3
|
Q2
|
Q1
|
Copper
(t)b
|
193,107
|
63,930
|
64,096
|
65,081
|
262,884
|
76,996
|
65,077
|
63,457
|
57,354
|
Zinc (t)
|
114,630
|
40,327
|
41,912
|
32,391
|
143,797
|
36,830
|
38,769
|
34,833
|
33,365
|
Gold
(koz)b
|
118
|
45
|
39
|
34
|
167
|
46
|
46
|
41
|
34
|
Nickel (t)
|
13,379
|
4,379
|
4,719
|
4,281
|
18,353
|
4,101
|
4,124
|
4,774
|
5,354
|
a. Tonnes (t) and
thousands of ounces (koz)
|
b. Candelaria's
production is on a 100% basis.
|
Corporate Updates
- On July 19, 2022, the Company
announced the publication of its 2021 Sustainability Report, which
highlighted its new Focused on the Future long-term
sustainability strategy which included a 35% reduction target in
greenhouse gas emissions by 2030.
- On July 27, 2022, the Company
announced that the Company's founder and former Chairman, Mr.
Lukas H. Lundin, passed away. The
Company also announced the appointment of Ms. Natasha Vaz to the Company's Board of Directors,
and the following executive leadership appointments: Mr.
Juan Andres Morel, Senior Vice
President and Chief Operating Officer; Mr. Teitur Poulsen, Senior
Vice President and Chief Financial Officer; Mr. David Dicaire, Senior Vice President,
Josemaria Project; and Ms.
Kristen Mariuzza, Senior Vice
President Sustainability, Health and Safety.
- On August 1, 2022, the Company
confirmed a sinkhole was detected near its Minera Ojos del Salado
operations in Chile on
July 30, 2022. All mining operations
at the Alcaparrosa underground mine were and remain suspended and
the Company mobilized resources in support of the ongoing
investigation.
- On October 1, 2022, the Company
reported a fatality of a contractor that occurred on September 30, 2022 at its Neves-Corvo mine in
Portugal. Operations were
voluntarily suspended. The operation restarted on October 5, 2022. The relevant regulatory
authorities were notified and the Company continues to cooperate
fully with those investigations.
- On October 12, 2022, the Company
announced the passing of Board member Ms. Karen Poniachik, who had
served on the Board of Directors since February 2021.
Financial Performance
- Gross profit for the quarter ended September 30, 2022 was $82.5 million, a decrease of $221.4 million in comparison to the prior year
quarter due to higher operating costs impacted by inflationary
impacts and lower metal prices net of price adjustments
($139.2 million) partially offset by
favourable foreign exchange. On a year-to-date basis, gross profit
was also lower than the prior year comparative period by
$329.2 million due to the same
impacts.
- For the three and nine months ended September 30, 2022, net loss of $11.2 million and net earnings of $318.2 million were $201.8
million and $295.0 million
lower than the prior year comparable periods, respectively, due to
lower gross profit and higher project development costs partially
offset by lower income taxes.
- Adjusted earnings of $30.9
million and $289.0 million for
the three and nine months ended September
30, 2022, respectively, were lower than the prior year
comparable periods due to lower net earnings.
Financial Position and Financing
- Cash and cash equivalents as at September 30, 2022 were $226.9 million, a decrease during the quarter of
$271.3 million. Cash flow from
operations of $36.3 million and cash
on hand was used to fund investing activities of $227.6 million, for payments of shareholder
dividends of 53.0 million and share repurchases which amounted to
$42.1 million.
- On a year-to-date basis, cash and cash equivalents decreased by
$367.1 million. Cash flow from
operations of $720.0 million was used
to fund investing activities of $733.1
million, which includes the Josemaria Resources acquisition.
Financing activities included the payment of shareholder dividends
of $224.3 million, $50.2 million in share re-purchases, $47.0 million in Josemaria debentures paid and
distributions amounting to $35.0
million to non-controlling interest.
- As at September 30, 2022, the
Company had a net cash balance of $177.6
million. Net cash decreased during the quarter and on a
year-to-date basis due to the activities described above for cash
and cash equivalents.
- As at October 25, 2022, the
Company had cash and net cash balances of approximately
$255.0 million and $205.0 million, respectively.
Outlook
The Company continues to experience continuing risks associated
with global inflation as well as supply chain delivery. To date,
there have been no significant impacts on our operations relating
to supply chain availability. The Company has implemented
procurement strategies and a foreign exchange hedging program to
mitigate the impact and continues to monitor these risks.
Total copper, zinc, gold and nickel production are all tracking
to the most recently reported guidance ranges as outlined in the
MD&A for the three and six months ended June 30, 2022. Total copper production is
expected to be within the guidance range, and total gold production
towards the upper end of the guidance range, based upon a stronger
second half performance at Chapada and continuation of operations
as planned at Candelaria. Total zinc production will be challenged
to meet the 2023 guidance range as outlined in the news release
"Lundin Mining Provides Operational Outlook & Update" provided
on November 21, 2021, primarily
reflecting the slower than anticipated ramp up of the Neves-Corvo
ZEP achieved year-to-date and necessitates further operational
improvement in the fourth quarter, particularly in new underground
mining areas and materials handling infrastructure. The ZEP 2023
zinc production profile will be dependent on operating rates
achievable on a sustainable basis by the end of the current year.
Nickel production is expected to be towards the upper end of the
2022 guidance range based upon continued steady performance at
Eagle.
Forecast cash costs remain consistent with most recently
reported guidance for Candelaria and Chapada of $1.75/lb of copper and $2.25/lb of copper, respectively. Neves-Corvo's
forecast cash cost is trending above the most recently reported
guidance of $1.80/lb of copper
considering the impact of inflation on prices of consumables,
mainly electricity and forecast by-product zinc volumes and
pricing. Eagle's forecast nickel cash cost is trending above the
most recently reported guidance of negative $0.25/lb of nickel considering, mainly, forecast
by-product copper pricing for the remainder of the year.
Zinkgruvan's cash cost is trending favourably against the most
recently reported guidance of $0.55/lb of zinc primarily due to foreign
exchange impacts.
Total capital expenditures are tracking well to the most recent
guidance of $700.0 million, on a cash
basis which is exclusive of capitalized costs for the copper-gold
Josemaria project ("Josemaria Project"). Similarly, total
exploration expenditures, exclusive of the Josemaria Project, are
on the target of $45.0 million for
2022.
The total expected spend for the Josemaria Project remains on
track for $300.0 million for the
year, $180.0 million of which is
expected to be capitalized and the balance will be recognized in
Project development costs in the Consolidated Statement of
Earnings.
About Lundin
Mining
Lundin Mining is a diversified Canadian base metals mining
company with projects and operations in Argentina, Brazil, Chile, Portugal, Sweden and the
United States of America, primarily producing copper, zinc,
gold and nickel.
The information in this release is subject to the disclosure
requirements of Lundin Mining under the EU Market Abuse Regulation.
The information was submitted for publication, through the agency
of the contact persons set out below on October 25, 2022 at 20:00
Eastern Time.
Technical Information
The scientific and technical information in this press release
has been prepared in accordance with the disclosure standards of
National Instrument 43-101 ("NI 43-101") and has been reviewed and
approved by Jeremy Weyland, P.Eng.,
Director, Studies of the Company, a "Qualified Person" under NI
43-101. Mr. Weyland has verified the data disclosed in this release
and no limitations were imposed on his verification process.
Reconciliation of Non-GAAP
Measures
The Company uses certain performance measures in its analysis.
These performance measures have no standardized meaning within
generally accepted accounting principles under International
Financial Reporting Standards and, therefore, amounts presented may
not be comparable to similar data presented by other mining
companies. For additional details please refer to the Company's
discussion of non-GAAP and other performance measures in its
Management's Discussion and Analysis for the three and nine months
ended September 30, 2022 which is
available on SEDAR at www.sedar.com.
Adjusted EBITDA can be reconciled to the Company's Consolidated
Statement of Earnings as follows:
|
Three months
ended
September
30,
|
|
Nine months
ended
September
30,
|
($thousands)
|
2022
|
2021
|
|
2022
|
2021
|
Net (loss)
earnings
|
(11,245)
|
190,580
|
|
318,238
|
613,231
|
Add back:
|
|
|
|
|
|
Depreciation, depletion
and amortization
|
140,161
|
120,637
|
|
412,040
|
377,397
|
Finance income and
costs
|
15,240
|
10,143
|
|
47,521
|
30,317
|
Income taxes
|
10,766
|
105,675
|
|
136,975
|
238,191
|
|
154,922
|
427,035
|
|
914,774
|
1,259,136
|
Unrealized foreign
exchange
|
14,426
|
(2,731)
|
|
25,000
|
3,527
|
Unrealized foreign
exchange and trading gains on equity investments
|
18,848
|
—
|
|
—
|
—
|
Income from investment
in associates
|
78
|
(21,088)
|
|
(3,297)
|
(22,234)
|
Sinkhole
costs
|
7,789
|
—
|
|
7,789
|
—
|
Write-down of fixed
assets
|
3,617
|
—
|
|
3,619
|
6,488
|
Gain on disposal of
subsidiary
|
—
|
—
|
|
(16,828)
|
—
|
Other
|
2,693
|
8,080
|
|
7,733
|
(455)
|
Total adjustments -
EBITDA
|
47,451
|
(15,739)
|
|
24,016
|
(12,674)
|
Adjusted
EBITDA
|
202,373
|
411,296
|
|
938,790
|
1,246,462
|
|
|
|
|
|
|
Adjusted earnings and adjusted earnings per share can be
reconciled to the Company's Consolidated Statement of Earnings as
follows:
|
Three months
ended
September
30,
|
|
Nine months
ended
September
30,
|
($thousands, except
share and per share amounts)
|
2022
|
2021
|
|
2022
|
2021
|
Net (loss)
earnings attributable to Lundin
Mining shareholders
|
(11,212)
|
173,740
|
|
281,289
|
551,568
|
Add back:
|
|
|
|
|
|
Total adjustments -
EBITDA
|
47,451
|
(15,739)
|
|
24,016
|
(12,674)
|
Tax effect on
adjustments
|
(12,012)
|
(3,556)
|
|
(11,323)
|
(2,729)
|
Deferred tax arising
from foreign exchange translation
|
5,599
|
14,436
|
|
(6,264)
|
3,211
|
Other
|
1,070
|
(460)
|
|
1,197
|
(305)
|
Total
|
42,108
|
(5,319)
|
|
7,626
|
(12,497)
|
Adjusted
earnings
|
30,896
|
168,421
|
|
288,915
|
539,071
|
|
|
|
|
|
|
Basic weighted
average number of shares outstanding
|
775,563,527
|
736,443,985
|
|
759,726,506
|
737,314,204
|
|
|
|
|
|
|
Net (loss)
earnings attributable to
shareholders
|
(0.01)
|
0.24
|
|
0.37
|
0.75
|
Total
adjustments
|
0.05
|
(0.01)
|
|
0.01
|
(0.02)
|
Adjusted earnings
per share
|
0.04
|
0.23
|
|
0.38
|
0.73
|
Adjusted operating cash flow and adjusted operating cash flow
per share can be reconciled to cash provided by operating
activities as follows:
|
Three months
ended
September
30,
|
|
Nine months
ended
September
30,
|
($thousands, except
share and per share amounts)
|
2022
|
2021
|
|
2022
|
2021
|
Cash provided by
operating activities
|
36,331
|
523,104
|
|
719,999
|
1,100,777
|
Changes in non-cash
working capital items
|
145,006
|
(228,989)
|
|
(16,111)
|
(95,190)
|
Adjusted operating
cash flow
|
181,337
|
294,115
|
|
703,888
|
1,005,587
|
|
|
|
|
|
|
Basic weighted average
number of shares outstanding
|
775,563,527
|
736,443,985
|
|
759,726,506
|
737,314,204
|
Adjusted operating
cash flow per share
|
$
0.23
|
0.40
|
|
0.93
|
1.36
|
Free cash flow can be reconciled to cash provided by operating
activities as follows:
|
Three months
ended
September
30,
|
|
Nine months
ended
September
30,
|
($thousands)
|
2022
|
2021
|
|
2022
|
2021
|
Cash provided by
operating activities
|
36,331
|
523,104
|
|
719,999
|
1,100,777
|
Sustaining capital
expenditures
|
(152,722)
|
(116,069)
|
|
(435,145)
|
(338,813)
|
Free cash flow
|
(116,391)
|
407,035
|
|
284,854
|
761,964
|
Net cash can be reconciled as
follows:
($thousands)
|
September
30, 2022
|
September
30, 2021
|
Cash and cash
equivalents
|
226,949
|
428,300
|
Current portion of
total debt and lease liabilities
|
(34,692)
|
(17,660)
|
Debt and lease
liabilities
|
(14,688)
|
(19,974)
|
|
(49,380)
|
(37,634)
|
Net cash
|
177,569
|
390,666
|
Cash and All-in Sustaining Costs can be reconciled to the
Company's operating costs as follows:
|
Three months ended
September 30, 2022
|
|
|
Operations
|
Candelaria
|
Chapada
|
Eagle
|
Neves-Corvo
|
Zinkgruvan
|
|
($000s, unless
otherwise noted)
|
(Cu)
|
(Cu)
|
(Ni)
|
(Cu)
|
(Zn)
|
Total
|
Sales volumes
(Contained metal in concentrate):
|
|
|
|
|
|
Tonnes
|
35,587
|
12,817
|
3,715
|
8,574
|
13,722
|
|
Pounds
(000s)
|
78,456
|
28,257
|
8,190
|
18,903
|
30,252
|
|
Production costs
|
|
|
|
|
|
425,814
|
Less: Royalties and
other
|
|
|
|
|
|
(8,593)
|
|
|
|
|
|
|
417,221
|
Deduct: By-product
credits
|
|
|
|
|
|
(172,179)
|
Add: Treatment and
refining
|
|
|
|
|
|
28,829
|
Cash cost
|
154,633
|
54,147
|
8,637
|
50,888
|
5,566
|
273,871
|
Cash cost per pound
($/lb)
|
1.97
|
1.92
|
1.05
|
2.69
|
0.18
|
|
Add: Sustaining capital
|
103,486
|
19,197
|
3,062
|
15,860
|
8,415
|
|
Royalties
|
—
|
3,055
|
5,705
|
(1,213)
|
—
|
|
Interest
expense
|
1,368
|
1,720
|
400
|
33
|
20
|
|
Leases &
other
|
2,910
|
1,082
|
4,893
|
770
|
1,091
|
|
All-in sustaining
cost
|
262,397
|
79,201
|
22,697
|
66,338
|
15,092
|
|
AISC per pound
($/lb)
|
3.34
|
2.80
|
2.77
|
3.51
|
0.50
|
|
|
Three months ended
September 30, 2021
|
|
|
Operations
|
Candelaria
|
Chapada
|
Eagle
|
Neves-Corvo
|
Zinkgruvan
|
|
($000s, unless
otherwise noted)
|
(Cu)
|
(Cu)
|
(Ni)
|
(Cu)
|
(Zn)
|
Total
|
Sales volumes
(Contained metal in concentrate):
|
|
|
|
|
|
Tonnes
|
33,743
|
13,869
|
3,246
|
9,071
|
16,043
|
|
Pounds
(000s)
|
74,390
|
30,576
|
7,156
|
19,998
|
35,369
|
|
Production costs
|
|
|
|
|
|
331,816
|
Less: Royalties and
other
|
|
|
|
|
|
(13,626)
|
|
|
|
|
|
|
318,190
|
Deduct: By-product
credits
|
|
|
|
|
|
(160,394)
|
Add: Treatment and
refining
|
|
|
|
|
|
28,459
|
Cash cost
|
120,512
|
19,097
|
(5,703)
|
40,987
|
11,362
|
186,255
|
Cash cost per pound
($/lb)
|
1.62
|
0.62
|
(0.80)
|
2.05
|
0.32
|
|
Add: Sustaining capital
|
74,326
|
16,425
|
3,539
|
13,191
|
8,486
|
|
Royalties
|
—
|
4,157
|
6,459
|
1,839
|
—
|
|
Interest
expense
|
1,263
|
859
|
177
|
18
|
18
|
|
Leases &
other
|
2,778
|
987
|
2,173
|
1,201
|
1,692
|
|
All-in sustaining
cost
|
198,879
|
41,525
|
6,645
|
57,236
|
21,558
|
|
AISC per pound
($/lb)
|
2.67
|
1.36
|
0.93
|
2.86
|
0.61
|
|
|
Nine months
ended September 30, 2022
|
|
|
Operations
|
Candelaria
|
Chapada
|
Eagle
|
Neves-Corvo
|
Zinkgruvan
|
|
($000s, unless
otherwise noted)
|
(Cu)
|
(Cu)
|
(Ni)
|
(Cu)
|
(Zn)
|
Total
|
Sales volumes
(Contained metal in concentrate):
|
|
|
|
|
|
Tonnes
|
113,690
|
33,526
|
11,188
|
25,241
|
48,049
|
|
Pounds
(000s)
|
250,643
|
73,912
|
24,665
|
55,647
|
105,930
|
|
Production costs
|
|
|
|
|
|
1,210,431
|
Less: Royalties and
other
|
|
|
|
|
|
(38,121)
|
|
|
|
|
|
|
1,172,310
|
Deduct: By-product
credits
|
|
|
|
|
|
(487,914)
|
Add: Treatment and
refining
|
|
|
|
|
|
90,944
|
Cash cost
|
450,858
|
157,456
|
7,999
|
125,889
|
33,138
|
775,340
|
Cash cost per pound
($/lb)
|
1.80
|
2.13
|
0.32
|
2.26
|
0.31
|
|
Add: Sustaining capital
|
272,557
|
63,412
|
10,445
|
49,136
|
31,537
|
|
Royalties
|
—
|
9,161
|
24,129
|
984
|
—
|
|
Interest
expense
|
4,149
|
5,161
|
1,202
|
104
|
63
|
|
Leases &
other
|
8,806
|
3,428
|
14,673
|
1,546
|
3,519
|
|
All-in sustaining
cost
|
736,370
|
238,618
|
58,448
|
177,659
|
68,257
|
|
AISC per pound
($/lb)
|
2.94
|
3.23
|
2.37
|
3.19
|
0.64
|
|
($000s, unless
otherwise noted)
|
2022 Revised
Guidance
|
|
|
Cash cost
|
620,000
|
230,000
|
(10,000)
|
140,000
|
80,000
|
|
Cash cost per
pound($/lb)
|
1.75
|
2.25
|
(0.25)
|
1.80
|
0.55
|
|
|
Nine months
ended September 30, 2021
|
|
|
Operations
|
Candelaria
|
Chapada
|
Eagle
|
Neves-
|
Zinkgruvan
|
|
($000s, unless
otherwise noted)
|
(Cu)
|
(Cu)
|
(Ni)
|
(Cu)
|
(Zn)
|
Total
|
Sales volumes
(Contained metal in concentrate):
|
|
|
|
|
|
Tonnes
|
104,796
|
33,495
|
11,622
|
25,950
|
46,051
|
|
Pounds
(000s)
|
231,035
|
73,844
|
25,622
|
57,210
|
101,525
|
|
Production costs
|
|
|
|
|
|
996,246
|
Less: Royalties and
other
|
|
|
|
|
|
(42,695)
|
|
|
|
|
|
|
953,551
|
Deduct: By-product
credits
|
|
|
|
|
|
(466,556)
|
Add: Treatment and
refining
|
|
|
|
|
|
86,367
|
Cash cost
|
368,583
|
76,527
|
(39,260)
|
116,351
|
51,161
|
573,362
|
Cash cost per pound
($/lb)
|
1.60
|
1.04
|
(1.53)
|
2.03
|
0.50
|
|
Add: Sustaining capital
|
226,641
|
37,856
|
12,414
|
33,348
|
28,312
|
|
Royalties
|
—
|
9,797
|
21,934
|
5,576
|
—
|
|
Interest
expense
|
3,547
|
2,577
|
531
|
57
|
54
|
|
Leases &
other
|
7,930
|
2,483
|
7,234
|
4,164
|
4,248
|
|
All-in sustaining
cost
|
606,701
|
129,240
|
2,853
|
159,496
|
83,775
|
|
AISC per pound
($/lb)
|
2.63
|
1.75
|
0.11
|
2.79
|
0.83
|
|
Cautionary Statement on
Forward-Looking Information
Certain of the statements made and information contained
herein is "forward-looking information" within the meaning of
applicable Canadian securities laws. All statements other than
statements of historical facts included in this document constitute
forward-looking information, including but not limited to
statements regarding the Company's plans, prospects and business
strategies; the Company's guidance on the timing and amount of
future production and its expectations regarding the results of
operations; expected costs; permitting requirements and timelines;
timing and possible outcome of pending litigation; the results of
any Preliminary Economic Assessment, Feasibility Study, or Mineral
Resource and Mineral Reserve estimations, life of mine estimates,
and mine and mine closure plans; anticipated market prices of
metals, currency exchange rates, and interest rates; the
development and implementation of the Company's Responsible Mining
Management System; the Company's ability to comply with contractual
and permitting or other regulatory requirements; anticipated
exploration and development activities at the Company's projects;
the Company's integration of acquisitions and any anticipated
benefits thereof; and expectations for other economic, business,
and/or competitive factors. Words such as "believe", "expect",
"anticipate", "contemplate", "target", "plan", "goal", "aim",
"intend", "continue", "budget", "estimate", "may", "will", "can",
"could", "should", "schedule" and similar expressions identify
forward-looking statements.
Forward-looking information is necessarily based upon various
estimates and assumptions including, without limitation, the
expectations and beliefs of management, including that the Company
can access financing, appropriate equipment and sufficient 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; 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 Argentina, 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.
___________________________________________
|
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, 2022 and the Reconciliation of Non-GAAP Measures
section at the end of this news release.
|
SOURCE Lundin Mining Corporation