VANCOUVER, BC, Jan. 27,
2025 /CNW/ - (TSX: LUN) (Nasdaq Stockholm: LUMI)
Lundin Mining Corporation ("Lundin Mining" or the
"Company") is pre-announcing certain items impacting the Company's
quarterly earnings, earnings per share, adjusted earnings before
interest, taxes, depreciation and amortization ("adjusted
EBITDA")1, adjusted earnings1 and adjusted
earnings per share1.
Revenue and Provisional Pricing Adjustments
Revenue in the fourth quarter 2024 is expected to be negatively
impacted by unaudited provisional pricing adjustments on prior
period concentrate sales of approximately $46 million on a pre-tax basis. These adjustments
primarily include downward adjustments in relation to copper sales,
partially offset by upward adjustments on nickel sales.
Revenue in the fourth quarter 2024 is also expected to be
negatively impacted by a timing difference between the production
and shipment date of approximately 20,000 tonnes of copper
concentrate. Two shipments of copper concentrate from Caserones
scheduled for December 2024 were
delayed to early January due to certain operational and weather
related issues. Payments of approximately $45 million relating to these shipments were
received in December, however the revenue will only be recognized
in the first quarter of 2025.
Foreign Exchange and Derivatives
Items of significant impact in the fourth quarter 2024 are
expected to include unaudited realized foreign exchange gains of
$15 million on a pre-tax basis. Gains
were primarily due to significant weakening of the Brazilian real
("BRL") and Chilean peso ("CLP") against the US dollar during the
quarter.
In the fourth quarter 2024 the Company is also expected to
recognize certain non-cash items that will impact the Company's
earnings but not adjusted EBITDA, adjusted earnings or adjusted
earnings per share. These include unaudited unrealized foreign
exchange gains of approximately $11
million on a pre-tax basis and an unaudited unrealized loss
of approximately $74 million on a
pre-tax basis related to the mark-to-market valuation of the
Company's foreign exchange and commodity derivative contracts,
primarily due to weakening of the CLP, BRL, and Canadian
dollar against the US dollar during the quarter. Additionally, the
Company is expected to recognize an unaudited unrealized loss of
approximately $12 million on a
pre-tax basis related to the mark-to-market valuation of the
Company's foreign exchange contracts due to weakening of the
Swedish krona and Euro against the US dollar during the
quarter.
Other Items
During the fourth quarter, throughput at Eagle increased as ramp
rehabilitation progressed. An unaudited amount of approximately
$11 million, related to overhead
costs from the partial suspension of underground operations, is
expected to impact the Company's earnings for the quarter. This
amount will be excluded from adjusted EBITDA, adjusted earnings,
and adjusted earnings per share. Normal throughput rates are
expected to resume during the first quarter of 2025.
Production costs in the fourth quarter 2024 are expected to
include an unaudited write down of inventory items amounting to
$22 million.
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1 These
measures are non-GAAP measures. 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.
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Fourth Quarter 2024 Results Conference Call and Webcast
Details
The Company will release its fourth quarter 2024 operations and
financial results after market close on Wednesday, February 19, 2025, and will hold a
webcast and conference call on Thursday,
February 20, 2025 to present the results. Webcast and
conference call details are provided below.
Webcast / Conference Call Details:
Date: Thursday, February 20,
2025
Time: 7:00 AM PT |
10:00 AM ET
Listen Only Webcast: WEBCAST LINK
Dial In for Investor & Analyst Q&A: DIAL IN
LINK
To participate in the call click on the dial in LINK above and
complete the online registration form. Once registered you will
receive the dial-in information and a unique PIN to join the call
and ask questions.
A replay of the webcast will be available by clicking on the
webcast LINK above and will be archived on the Company's website
for a limited period of time.
About Lundin Mining
Lundin Mining is a diversified Canadian base metals mining
company with operations or projects in Argentina, Brazil, Chile, and the
United States of America, primarily producing copper, gold
and nickel. In December 2024 the
Company announced the sale of its European assets to Boliden. The
transaction is expected to close in mid-2025 subject to customary
conditions and regulatory approvals.
The information was submitted for publication, through the
agency of the contact persons set out below on January 27,
2025 at 15:00 Pacific Time.
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; expected items of significant impact in the fourth
quarter and annual results, and the anticipated impact on the
Company's revenue, earnings, adjusted EBITDA, adjusted earnings and
adjusted earnings per share; the completion of the sale of the
Company's European assets and the timing thereof; the conditions to
close the sale of the Company's European assets; 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; the results and timing 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 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, nickel, gold and other
metals; anticipated costs; that the conditions to close the sale of
the Company's European assets will be satisfied; the ability to
achieve goals and identify and realize opportunities; 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 information and undue reliance
should not be placed on such information. Such factors include, but
are not limited to: the failure to obtain required approvals for
the sale of the Company's European assets; global financial
conditions, market volatility and inflation, including pricing and
availability of key supplies and services; risks inherent in mining
including but not limited to risks to the environment, industrial
accidents, catastrophic equipment failures, unusual or unexpected
geological formations or unstable ground conditions, and natural
phenomena such as earthquakes, flooding or unusually severe
weather; uninsurable risks; project financing risks, liquidity
risks and limited financial resources; volatility and fluctuations
in metal and commodity demand and prices; delays or the inability
to obtain, retain or comply with permits; significant reliance on
assets in Chile; reputation risks
related to negative publicity with respect to the Company or the
mining industry in general; health and safety risks; risks relating
to the development of the Filo del Sol project and the Josemaria
project; inability to attract and retain highly skilled employees;
risks associated with climate change; compliance with
environmental, health and safety laws and regulations; unavailable
or inaccessible infrastructure, infrastructure failures, and risks
related to ageing infrastructure; risks inherent in and/or
associated with operating in foreign countries and emerging
markets, including with respect to foreign exchange and capital
controls; economic, political and social instability and mining
regime changes in the Company's operating jurisdictions, including
but not limited to those related to permitting and approvals,
nationalization or expropriation without fair compensation,
environmental and tailings management, labour, trade relations, and
transportation; risks relating to indebtedness; the inability to
effectively compete in the industry; risks associated with
acquisitions and related integration efforts, including the ability
to achieve anticipated benefits, unanticipated difficulties or
expenditures relating to integration and diversion of management
time on integration; changing taxation regimes; risks related to
mine closure activities, reclamation obligations, environmental
liabilities and closed and historical sites; reliance on key
personnel and reporting and oversight systems, as well as third
parties and consultants in foreign jurisdictions; information
technology and cybersecurity risks; risks associated with the
estimation of Mineral Resources and Mineral Reserves and the
geology, grade and continuity of mineral deposits including but not
limited to models relating thereto; actual ore mined and/or metal
recoveries varying from Mineral Resource and Mineral Reserve
estimates, estimates of grade, tonnage, dilution, mine plans and
metallurgical and other characteristics; ore processing efficiency;
community and stakeholder opposition; financial projections,
including estimates of future expenditures and cash costs, and
estimates of future production may not be reliable; enforcing legal
rights in foreign jurisdictions; environmental and regulatory risks
associated with the structural stability of waste rock dumps or
tailings storage facilities; activist shareholders and proxy
solicitation matters; risks relating to dilution; regulatory
investigations, enforcement, sanctions and/or related or other
litigation; risks relating to payment of dividends; counterparty
and customer concentration risks; the estimation of asset carrying
values; risks associated with the use of derivatives; risks
relating to joint ventures, joint arrangements and operations;
relationships with employees and contractors, and the potential for
and effects of labour disputes or other unanticipated difficulties
with or shortages of labour or interruptions in production;
conflicts of interest; existence of a significant shareholder;
exchange rate fluctuations; challenges or defects in title;
internal controls; compliance with foreign laws; potential for the
allegation of fraud and corruption involving the
Company, its customers, suppliers or employees, or the allegation
of improper or discriminatory employment practices, or human rights
violations; the threat associated with outbreaks of viruses and
infectious diseases; risks relating to minor elements contained in
concentrate products; and other risks and uncertainties, including
but not limited to those described in the "Risk and Uncertainties"
section of the Company's MD&A for the year three and nine
months ended September 30, 2024 and
the "Risk 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.
SOURCE Lundin Mining Corporation
