NYBob
2 years ago
Lundin Mining Announces Passing of Founder and Former Chairman Mr. Lukas H. Lundin
Lundin Mining Corporation (CNW Group/Lundin Mining Corporation)
NEWS PROVIDED BY
Lundin Mining Corporation
Jul 27, 2022, 11:30 ET
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TORONTO, July 27, 2022 /CNW/ - (TSX: LUN) (Nasdaq Stockholm: LUMI) Lundin Mining Corporation ("Lundin Mining" or the "Company") regrets to announce that the Company´s founder and former Chairman, Mr. Lukas H. Lundin, passed away on July 26, 2022 at the age of 64, following a two-year battle with brain cancer.
Over the past 40 years, Lukas has been a driving force behind the tremendous successes of companies within the Lundin Group. Lukas started his career in the international energy and mining sectors in the early 1980s working side-by-side with his father, the late Mr. Adolf H. Lundin.
Lundin Mining Announces Passing of Founder and Former Chairman Mr.& Lukas& H.& Lundin (CNW Group/Lundin Mining Corporation)
Lundin Mining Announces Passing of Founder and Former Chairman Mr.& Lukas& H.& Lundin (CNW Group/Lundin Mining Corporation)
Under the leadership of Lukas and his brother Ian, and in close cooperation with the rest of the Lundin family, the Lundin Group has grown into an internationally recognized portfolio of energy and mining companies with operations spanning the globe. The eleven companies that comprise the Lundin Group today have a combined market capitalization in excess of USD 11 billion, directly employing more than 15,000 people and creating opportunities for tens of thousands more.
Lukas Lundin´s sons Harry, Adam, Jack and William in a joint statement say, "Our father is our biggest inspiration. His passion for the industries to which he devoted his life was unparalleled. Lukas saw people as the key to success and spent decades building some of the strongest management teams in our industries. He always strived to empower those working with him and continuously pushed us to aim higher. We could not have had a better father and mentor.
Our family is deeply saddened about Lukas' passing but takes comfort in the knowledge that his legacy will live on for generations to come. Having worked side-by-side with Lukas for many years, all of us look forward to continuing to build on the successes of the companies within the Lundin Group – with the support of our shareholders and other stakeholders, not least the members of the local communities where we operate. The companies in the Lundin Group stand stronger than ever and the Lundin family is united in our commitment to remain long term shareholders."
Lukas founded Lundin Mining together with his father in the mid-1990s and was a member of the Board of Directors and Chairman of the Company for more than 25 years until he stepped down in May 2022. In his role as Chairman, Lukas oversaw Lundin Mining's development from an exploration-stage company into a global mid-tier producer with a strong copper focus and a portfolio of world-class assets.
Lundin Mining's President and CEO, Peter Rockandel, commented "The many successes of Lundin Mining and the Lundin Group owe directly to Lukas' extraordinary strategic foresight, matched only by his relentless drive. His guidance and support for his colleagues will be deeply missed, however, his pursuit and vision of creating a world-class base metals company lives on. Lukas would say, 'Get the right people. Empower the people. And have good assets.' Those of us that worked closest with Lukas share in his approach and will continue to build upon his legacy."
About Lundin Mining
Lundin Mining is a diversified Canadian base metals mining company with operations and projects in Argentina, Brazil, Chile, Portugal, Sweden and the United States of America, primarily producing copper, zinc, gold and nickel.
The information was submitted for publication on July 27, 2022, at 11:30 Eastern Time.
SOURCE Lundin Mining Corporation
For further information: Robert Eriksson, The Lundin Group of Companies, reriksson@rive6.ch, +46701112615
Organization Profile
Lundin Mining Corporation
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. For more information, visit...
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NYBob
4 years ago
Lundin Gold Inc. Announces C$50 Million Bought Deal Financing
https://www.investegate.co.uk/article.aspx?id=20200526123002H5873
Lundin Gold Inc. Announces C$50 Million Bought Deal Financing
VANCOUVER, British Columbia, May 26, 2020 (GLOBE NEWSWIRE) -- Lundin Gold Inc. ("Lundin Gold" or the "Company") (TSX: LUG, Nasdaq Stockholm: LUG) has announced today that it has entered into an agreement with BMO Capital Markets (“BMO”), under which BMO has agreed to buy on a bought deal basis 4,150,000 common shares (the “Common Shares”), at a price of C$12.05 per Common Share for gross proceeds of approximately C$50 million (the “Offering”). The Company has granted BMO an option, exercisable at the offering price for a period of 30 days following the closing of the Offering, to purchase up to an additional 15% of the Offering to cover over-allotments, if any. The offering is expected to close on or about June 11, 2020 and is subject to Lundin Gold receiving all necessary regulatory approvals.
Newcrest Mining Limited, which currently holds approximately 32% of the Company’s issued and outstanding shares through a wholly-owned subsidiary, has exercised its pre-emptive participation rights in the Offering, along with Orion Mine Finance, which currently holds approximately 11% of the Company’s issued and outstanding shares. The Company expects that Zebra Holdings and Investments S.à.r.l, Lorito Holdings S.à.r.l and/or Nemesia S.à.r.l (the “Lundin Family Trusts”), which collectively hold approximately 27% of the Company’s issued and outstanding shares, will participate in the financing at their collective pro-rata shareholdings.
The net proceeds of the offering will be used to study increased throughput, future resource expansion, potential COVID-19 related costs and for general working capital purposes.
The Common Shares will be offered by way of a short form prospectus in all of the provinces and territories of Canada other than Quebec and may also be offered by way of private placement in the United States pursuant to exemptions from the registration requirements of the U.S. Securities Act of 1933, as amended, and applicable U.S. state securities laws.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Lundin Gold
Lundin Gold, headquartered in Vancouver, Canada, owns the Fruta del Norte gold mine in southeast Ecuador. Fruta del Norte is among the largest and highest-grade gold deposits in the world.
The Company's board and management team have extensive expertise in mine operations and are dedicated to operating Fruta del Norte responsibly. The Company operates with transparency and in accordance with international best practices. Lundin Gold is committed to delivering value to its shareholders, while simultaneously providing economic and social benefits to impacted communities, fostering a healthy and safe workplace and minimizing the environmental impact. The Company believes that the value created through the operation of Fruta del Norte will benefit its shareholders, the Government and the citizens of Ecuador.
Additional Information
The information in this release is subject to the disclosure requirements of Lundin Gold under the EU Market Abuse Regulation. This information was publicly communicated on May 26, 2020 at 4:25 a.m. Pacific Time through the contact persons set out below.
For more information, please contact
Lundin Gold Inc.
Ron F. Hochstein
President and CEO
+593 2-299-6400
+1-604-806-3589
Lundin Gold Inc.
Sabina Srubiski
Manager, Investor Relations
+1-604-806-3089
info@lundingold.com
www.lundingold.com
Follow Lundin Gold on Twitter
Lundin Gold Inc. Announces C$50 Million Bought Deal Financing
VANCOUVER, British Columbia, May 26, 2020 (GLOBE NEWSWIRE) -- Lundin Gold Inc. ("Lundin Gold" or the "Company") (TSX: LUG, Nasdaq Stockholm: LUG) has announced today that it has entered into an agreement with BMO Capital Markets (“BMO”), under which BMO has agreed to buy on a bought deal basis 4,150,000 common shares (the “Common Shares”), at a price of C$12.05 per Common Share for gross proceeds of approximately C$50 million (the “Offering”). The Company has granted BMO an option, exercisable at the offering price for a period of 30 days following the closing of the Offering, to purchase up to an additional 15% of the Offering to cover over-allotments, if any. The offering is expected to close on or about June 11, 2020 and is subject to Lundin Gold receiving all necessary regulatory approvals.
Newcrest Mining Limited, which currently holds approximately 32% of the Company’s issued and outstanding shares through a wholly-owned subsidiary, has exercised its pre-emptive participation rights in the Offering, along with Orion Mine Finance, which currently holds approximately 11% of the Company’s issued and outstanding shares. The Company expects that Zebra Holdings and Investments S.à.r.l, Lorito Holdings S.à.r.l and/or Nemesia S.à.r.l (the “Lundin Family Trusts”), which collectively hold approximately 27% of the Company’s issued and outstanding shares, will participate in the financing at their collective pro-rata shareholdings.
The net proceeds of the offering will be used to study increased throughput, future resource expansion, potential COVID-19 related costs and for general working capital purposes.
The Common Shares will be offered by way of a short form prospectus in all of the provinces and territories of Canada other than Quebec and may also be offered by way of private placement in the United States pursuant to exemptions from the registration requirements of the U.S. Securities Act of 1933, as amended, and applicable U.S. state securities laws.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Lundin Gold
Lundin Gold, headquartered in Vancouver, Canada, owns the Fruta del Norte gold mine in southeast Ecuador. Fruta del Norte is among the largest and highest-grade gold deposits in the world.
The Company's board and management team have extensive expertise in mine operations and are dedicated to operating Fruta del Norte responsibly. The Company operates with transparency and in accordance with international best practices. Lundin Gold is committed to delivering value to its shareholders, while simultaneously providing economic and social benefits to impacted communities, fostering a healthy and safe workplace and minimizing the environmental impact. The Company believes that the value created through the operation of Fruta del Norte will benefit its shareholders, the Government and the citizens of Ecuador.
Additional Information
The information in this release is subject to the disclosure requirements of Lundin Gold under the EU Market Abuse Regulation. This information was publicly communicated on May 26, 2020 at 4:25 a.m. Pacific Time through the contact persons set out below.
For more information, please contact
Lundin Gold Inc.
Ron F. Hochstein
President and CEO
+593 2-299-6400
+1-604-806-3589
Lundin Gold Inc.
Sabina Srubiski
Manager, Investor Relations
+1-604-806-3089
info@lundingold.com
www.lundingold.com
Follow Lundin Gold on Twitter
Saving Grace
7 years ago
TORONTO, March 2, 2018 /CNW/ - Aquila Resources Inc. (TSX: AQA) ("Aquila" or the "Company") announced today the filing of its financial results for the fourth quarter and year ended December 31, 2017. All amounts, unless indicated, are reported in U.S. dollars.
FOURTH QUARTER HIGHLIGHTS
In December 2017, the Michigan Department of Environmental Quality ("MDEQ") deemed Aquila's wetland/stream/floodplain permit application for the Back Forty Project administratively complete and the regulatory technical review process can now move to the next stage. This is final required permit to operate and build the Back Forty Project.
The Company closed a financing transaction with Osisko Bermuda Limited ("OBL"), a wholly owned subsidiary of Osisko Gold Royalties Ltd (TSX & NYSE: OR) pursuant to which OBL has agreed to commit $65 million to Aquila through a $10 million private placement and $55 million gold stream purchase agreement. OBL purchased 49,173,076 units of Aquila at a price of C$ 26 cents per unit for aggregate gross proceeds of $10 million (the "Strategic Investment"). Each unit consists of one common share and one-quarter of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share of the Company for C$ 34 cents until May 10, 2021. Concurrent with the Strategic Investment, the parties have entered into a Gold Purchase Agreement (the "Stream") whereby OBL will purchase 18.5% of the refined gold from the Project (the "Threshold Stream Percentage") until the Company has delivered 105,000 ounces of gold (the "Production Threshold"). Upon satisfaction of the Production Threshold, the Threshold Stream Percentage will be reduced to 9.25% of the refined gold. In exchange for the refined gold delivered under the Stream, OBL will pay the Company ongoing payments equal to 30% of the spot price of gold on the day of delivery, subject to a maximum payment of $600 per ounce. In consideration for the Stream, OBL will make four upfront deposit payments to Aquila totaling $55 million, including $7.5 million which was received on close.
The Company released the final results from the Company's 2017 exploration drill program at the Back Forty Project. The drilling program was designed to test the along-strike extension of the 2016 Zone massive sulphide. The results included 1.27 g/t gold, 15.78 g/t silver, 12.17% zinc, over 7.09 meters (drilled thickness) in LK-17-537.
The Company also completed its estimates of capital costs and operating expenditures for the Feasibility Study for the Back Forty Project. Key progress included frozen layout, optimized flow sheet and overall reduction to environmental footprint including water, wetlands and air impacts.
In December of 2017, the State of Wisconsin passed AB 499, the Mining for America Act which, amongst other things, repealed a decades old moratorium on non-ferrous mining in the state. Aquila is currently evaluating its strategy in Wisconsin where it has two earlier stage exploration assets.
As at December 31, 2017, Aquila had cash of $17.2 million and working capital of $15.5 million. This compared to cash of $1.4 million and working capital of $0.6 million at December 31, 2016. The working capital increase was due to the Strategic Investment and the first advance under the Stream in November 2017, the private placement in February 2017 and warrant exercises during Q3 2017 offset by the funding of the Company's permitting activities and development of the Feasibility Study.
POST QUARTER HIGHLIGHTS
In February 2018, the Company announced an updated Mineral Resource Estimate for the Back Forty Project (the "2018 Mineral Resource Estimate"). Highlights of the 2018 Mineral Resource Estimate include a 10% increase in tonnage in the Measured and Indicated Mineral Resource categories versus the prior 2013 Mineral Resource Estimate, a 12% increase in contained zinc and a 4% increase in contained gold. Contained silver, copper and lead also increased versus the 2013 Mineral Resource Estimate.
The Menominee Indian Tribe of Wisconsin recently filed a federal lawsuit in the Eastern District of Wisconsin against the Environmental Protection Agency and the US Army Corps of Engineers, claiming that the federal government should exercise jurisdiction over the wetlands permitting process currently being administered by the State of Michigan and require Aquila to obtain a federal wetlands permit. Both federal agencies rejected this argument when it was presented to them last year, and Aquila anticipates that their position that the State of Michigan is properly exercising its delegated authority to issue a Wetlands Permit will be vindicated by the federal court.
Appointed Michael Welch as Chief Operating Officer ("COO") effective March 1, 2018. As COO, Mr. Welch will assume responsibility for the Company's activities at its Back Forty Project in Michigan where he will lead operational readiness and help drive the seamless integration from project to operations. He will also oversee stakeholder engagement, compliance, sustainability, and the Company's regional strategy. Mr. Welch has more than 25 years of experience in the mining and mineral exploration industry covering grassroots exploration, mine geology/exploration, project management and executive operations management. Prior to joining Aquila, Mr. Welch was the Managing Director and President of the Board of Directors for Lundin Mining Corporation's ("Lundin") Somincor Operations, which include the Neves-Corvo copper and zinc mine in Portugal. Prior to that, he was responsible for the construction completion and start-up of operations for Lundin's Eagle Mine in Northern Michigan, U.S.A. Before joining Lundin, Michael was the Vice President of Operations for Xstrata Nickel's Raglan Operation in Quebec, Canada.
"2017 was a year of considerable progress and achievement for Aquila as we continued to advance the Back Forty Project towards a construction decision," said Barry Hildred, President and Chief Executive Officer of Aquila. "The Company will continue to work with the MDEQ to address any questions concerning the wetlands permit and we anticipate a permit decision in the first half of 2018. In parallel, we are moving ahead on a number of key initiatives including finalizing the Back Forty Feasibility Study, developing an exploration strategy for Back Forty and our earlier stage assets in Wisconsin, continuing to enhance our leadership team, and considering the strategic and financial options available to the Company."
NYBob
11 years ago
http://tmx.com/en/pdf/short_positions/Dec31-2013.pdf
Top 20 Largest - Consolidated Short Position Report
Please find below the Top 20 Largest Consolidated Short Position Report Highlights. The report is produced twice
monthly, effective the 15th and the end of each month. The report below covers the 2-week period ending
December 31, 2013.
TSX Markets (a division of TSX Inc.) collects this information on behalf of Investment Industry Organization of
Canada. Participating Organizations are required to file this information pursuant to Universal Market Integrity
Rule 10.10.
Issue Name Symbol As of Dec 30 As of Dec 15 Net Change
LUNDIN MINING CORPORATION LUN 60,372,644 62,894,431 -2,521,787
BOMBARDIER INC. CL B SV BBD.B 52,650,735 33,988,500 18,662,235
NEW GOLD INC. NGD 46,377,287 47,205,108 -827,821
OSISKO MINING CORPORATION J OSK 43,675,171 43,720,790 -45,619
THOMSON REUTERS CORPORATION TRI 41,633,981 28,979,682 12,654,299
ATHABASCA OIL CORPOATION J ATH 37,568,553 38,388,408 -819,855
MANULIFE FINANCIAL CORPORATION MFC 37,428,824 46,959,284 -9,530,460
BARRICK GOLD CORPORATION ABX 32,416,329 24,026,847 8,389,482
BROOKFIELD OFFICE PROPERTIES INC. BPO 32,255,989 20,777,738 11,478,251
HUSKY ENERGY INC. HSE 29,269,593 26,681,348 2,588,245
LEGACY OIL + GAS INC. LEG 29,210,825 29,114,197 96,628
CELESTICA INC. SV CLS 28,638,415 36,833,550 -8,195,135
BCE INC. BCE 28,544,803 24,118,117 4,426,686
GREAT-WEST LIFECO INC. GWO 27,893,804 26,896,341 997,463
SUNCOR ENERGY INC. SU 27,683,580 18,870,309 8,813,271
ENBRIDGE INC. ENB 25,164,546 28,256,786 -3,092,240
POWER CORPORATION OF CANADA SV POW 24,913,803 16,081,627 8,832,176
TALISMAN ENERGY INC. TLM 24,664,753 37,765,863 -13,101,110
CGI GROUP INC. CL A SV GIB.A 24,629,593 23,945,844 683,749
ELEMENT FINANCIAL CORPORATION J EFN 23,993,221 26,073,275 -2,080,054
NYBob
11 years ago
Top 20 Largest - Consolidated Short Position Report
http://www.tmx.com/en/pdf/short_positions/Aug15-2013.pdf
Please find below the Top 20 Largest Consolidated Short Position Report Highlights. The report is produced twice
monthly, effective the 15th and the end of each month. The report below covers the 2-week period ending
August 15th, 2013.
TSX Markets (a division of TSX Inc.) collects this information on behalf of Investment Industry Organization of
Canada. Participating Organizations are required to file this information pursuant to Universal Market Integrity
Rule 10.10.
Issue Name Symbol As of August
15
As of July 31 Net Change
KINROSS GOLD CORPORATION K 79,548,968 8,173,938 71,375,030
LUNDIN MINING CORPORATION LUN 67,405,848 67,568,335 -162,487
NEW GOLD INC. NGD 53,102,304 53,731,073 -628,769
HORIZONS BETAPRO NYMEX CRDE OIL
BEAR+ETF A UN
HOD 50,568,625 43,554,555 7,014,070
BOMBARDIER INC. CL 'B' SV BBD.B 48,350,011 39,809,879 8,540,132
CELESTICA INC. SV CLS 41,036,365 41,103,232 -66,867
MANULIFE FINANCIAL CORPORATION MFC 40,293,061 34,724,527 5,568,534
OSISKO MINING CORPORATION J OSK 37,035,408 36,176,726 858,682
LEGACY OIL + GAS INC. LEG 36,203,268 35,214,470 988,798
CGI GROUP INC. CL 'A' SV GIB.A 34,019,727 32,853,097 1,166,630
ATHABASCA OIL CORPORATION J ATH 32,388,267 32,528,295 -140,028
YAMANA GOLD INC. YRI 31,143,997 13,507,062 17,636,935
TRANSCANADA CORPORATION TRP 30,886,355 34,865,414 -3,979,059
TURQUOISE HILL RESOURCES LTD. TRQ 29,578,352 29,754,345 -175,993
TORONTO-DOMINION BANK (THE) TD 28,937,077 29,967,403 -1,030,326
ROYAL BANK OF CANADA RY 28,171,165 25,446,371 2,724,794
IAMGOLD CORPORATION IMG 28,142,410 9,932,127 18,210,283
ENCANA CORPORATION ECA 28,000,138 30,267,766 -2,267,628
ENBRIDGE INC. ENB 27,102,069 21,778,131 5,323,938
ELEMENT FINANCIAL CORPORATION J EFN 23,156,476 27,056,824 -3,900,348
For further information please call Catherine McGravey at 416-947-4655 or, to subscribe call Publications
at 416-947-4778
The information on this page is collected with care but TSX Inc. does not guarantee either the completeness or the accuracy of this
information. The data contained in this report is provided for informational purposes only. This is not an invitation to purchase any security
mentioned herein. You agree not to rely upon the information contained in this report for any trading, business or financial purpose.
By using this report, you expressly agree to the con
NYBob
14 years ago
Lundin Mining Adopts Shareholder Rights Plan and Commences Pursuit of Alternatives to Maximize Shareholder Value
Mar. 29, 2011 (Marketwire Canada) --
TORONTO, ONTARIO --
(TSX:LUN)(OMX:LUMI) Lundin Mining Corporation
("Lundin Mining" or the "Company") today announced
that its Board of Directors has adopted a limited duration
Shareholder Rights Plan (the "Rights Plan") to enable
a full consideration of strategic alternatives.
Commenting on the adoption of the Rights Plan, Mr. Phil Wright, the President and CEO of Lundin Mining said, "This plan has been put in place to ensure that we have adequate time to explore all alternatives to bring value to Lundin shareholders. Our exploration of alternatives starts immediately and we will be actively and aggressively looking for the best value transaction.
"The Rights Plan ensures that we can do this in a considered and structured way and get the best result for our shareholders," Mr. Wright said.
In a previous release earlier today, Lundin Mining announced that it has mutually terminated its proposed merger with Inmet Mining Corporation ("Inmet") and has agreed that Inmet's right to a break fee of $120 million will be preserved in connection with the unsolicited offer of Equinox Minerals Limited ("Equinox").
The Board continues to recommend that shareholders reject the Equinox offer, on its own merits, for the reasons detailed in the Directors' Circular mailed to registered shareholders on March 21, 2011 and available on SEDAR at www.sedar.com.
Commenting on the plans to pursue alternative transactions, Mr. Lukas Lundin, Chairman of Lundin Mining said, "Our hands have been completely tied in defending against the low ball, risky Equinox bid because of the Inmet agreement.
"Having agreed to terminate with Inmet, we can now pursue new alternatives to significantly improve shareholder value and get a proper premium if we do a change of control transaction.
"I am not against selling if it achieves an excellent financial return to shareholders but I will not support selling at bargain prices," Mr. Lundin said.
Scotia Capital, as financial advisors, and Cassels Brock & Blackwell LLP, as legal advisor, will continue to assist the Company in responding to the unsolicited offer announced by Equinox.
The Board will make every effort to maximize value for the benefit of Lundin Mining shareholders and will update shareholders from time to time of its efforts.
Details of the Rights Plan
The Rights Plan is intended to ensure that in the context of the unsolicited take-over proposal for Lundin Mining common shares announced by Equinox, the Board has sufficient time to identify, develop and negotiate alternatives to maximize shareholder value. The Rights Plan also seeks to ensure the fair treatment of shareholders and to provide them with adequate time to properly assess any potential take-over bid without undue pressure.
Prior to the termination of the proposed merger with Inmet, the Company has been subject to customary "no shop" clause obligations under the terms of the arrangement agreement with Inmet which has rendered the Company unable to seek other value enhancing alternatives to Equinox's unsolicited offer.
The Board has authorized the issuance of one right in respect of each common share of the Company outstanding at 5:00 p.m. (Eastern Time) on March 29, 2011 and each share issued thereafter. The rights will become exercisable if a person, together with its affiliates, associates and joint actors, acquires or announces an intention to acquire beneficial ownership of common shares which, when aggregated with its current holdings, total 20% or more of the outstanding common shares of the Company (determined in the manner set out in the Rights Plan). Following the acquisition of 20% or more of the outstanding common shares, each right held by a person other than the acquiring person and its affiliates, associates and joint actors would, upon exercise, entitle the holder to purchase common shares at a substantial discount to the market price of the common shares at that time.
The Board has the discretion to defer the time at which the rights become exercisable (which it has done in respect of the proposed Equinox offer) and to waive the application of the Rights Plan and/or redeem the Rights if the Board determines it is in the best interests of Lundin Mining to do so.
The Rights Plan permits the acquisition of control of Lundin Mining through a "permitted bid", a "competing permitted bid" or a negotiated transaction. A permitted bid is one that, among other things, is made to all holders of common shares for all of their shares, is open for a minimum of 90 days and is subject to an irrevocable minimum tender condition of at least 50% of the common shares held by independent shareholders. The Rights Plan will expire at 5:00 p.m. (Eastern Time) on May 31, 2011.
Although the Rights Plan is effective immediately, it remains subject to acceptance by the Toronto Stock Exchange. A copy of the Rights Plan will be available at www.sedar.com.
The Equinox Offer
The Board recommends to Lundin Mining shareholders that they REJECT the Unsolicited Offer and DO NOT TENDER their Lundin Mining shares for the following reasons:
The Unsolicited Offer is inadequate from a financial point of view to Lundin Mining shareholders;
The pro-forma debt-to-equity ratio of the combined Equinox and Lundin Mining is excessive and will present increased financial risk and a more highly leveraged capital structure than Lundin Mining and peer group companies. In addition, the lenders to Equinox will have considerable influence over the business decisions of a combined Equinox and Lundin Mining;
Substantially all of Equinox's and Lundin Mining's existing cash balances and projected near-term cash flow will be utilized to pay for: lenders' fees; interest charges; and the principal repayments of the debt incurred to fund the cash portion of the consideration payable under the Unsolicited Offer;
The Unsolicited Offer would result in a company with increased exposure to geopolitical risks due to the location of Equinox assets in Zambia and Saudi Arabia;
The Unsolicited Offer is highly opportunistic. Equinox's shares were trading at or near the all-time high share price when Equinox announced the Unsolicited Offer, which followed a news release made earlier in February 2011 on its strategy to expand the Lumwana project. The proposed Lumwana expansion plan is not supported by mineral reserves or mineral resources and is not based on pre-feasibility or feasibility studies. To date the Lumwana mine has significantly under-performed original feasibility study projections disclosed by Equinox;
There are no strategic benefits for Lundin Mining shareholders under the Unsolicited Offer. The acquisition results in a company with high Africa and Middle East concentration and few, if any synergies with Lundin Mining's business.
The Board has reservations about the experience of the management of Equinox to operate a multi-mine company with projects and mines spread across seven countries.
The Unsolicited Offer is highly conditional and has a substantial risk regarding completion without additional compensation for such risk. Conditions are subject to Equinox's lenders discretion resulting in Equinox, in many instances, not being the ultimate decision-maker.
The Unsolicited Offer may be a violation of Section 5 of the U.S. Securities Act of 1933, as amended.
Lundin Mining's directors, officers and certain shareholders have confirmed that they will not tender their Common Shares to the Unsolicited Offer.
Shareholders do not need to take any action in response to Equinox's proposed offer at this time.
About Lundin Mining
Lundin Mining Corporation is a diversified base metals mining company with operations in Portugal, Sweden, Spain and Ireland, producing copper, zinc, lead and nickel. In addition, Lundin Mining holds a development project pipeline which includes an expansion project at its Neves-Corvo mine along with its equity stake in the world class Tenke Fungurume copper/cobalt mine in the Democratic Republic of Congo.
On Behalf of the Board,
Phil Wright, President and CEO
Forward Looking Statements
Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the Ontario Securities Act or "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 of the United States. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to foreign currency fluctuations; risks inherent in mining including environmental hazards, industrial accidents, unusual or unexpected geological formations, ground control problems and flooding; risks associated with the estimation of mineral resources and reserves and the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; uncertain political and economic environments; changes in laws or policies, foreign taxation, delays or the inability to obtain necessary governmental permits; and other risks and uncertainties, including those described under Risk Factors Relating to the Company's Business in the Company's Annual Information Form and in each management discussion and analysis. Forward-looking information is in addition based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of copper, nickel, lead and zinc; 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, readers are advised not to place undue reliance on forward-looking statements.
Lundin Mining Corporation
Investor Relations North America
+1-604-689-7842
Lundin Mining Corporation
Senior Business Analyst
+1-416-342-5560
+1 416 348 0303 (FAX)
Lundin Mining Corporation
Investor Relations Sweden
+46 8 545 015 50
http://www.lundinmining.com
NYBob
14 years ago
Lundin Mining Acknowledges Announcement of Unsolicited Take-Over Bid by Equinox Minerals Limited
TORONTO, ONTARIO--(Marketwire - Feb. 28, 2011) -
Lundin Mining Corporation
("Pounding Mining" or the "Company") (TSX:LUN)(OMX:LUMI) acknowledges that Equinox Minerals Limited ("Equinox") has now issued a news release announcing that it will make an offer to acquire Lundin Mining for approximately C$4.8 billion in cash and shares of Equinox.
The announcement provides that once the offer is commenced that each Lundin Mining shareholder will be able to elect to receive consideration per Lundin Mining common share of either C$8.10 in cash or 1.2903 shares of Equinox plus $0.01 for each Lundin Mining common share, subject to a pro-ration based on a maximum cash consideration of approximately C$2.4 billion and maximum number of shares of Equinox issued of approximately 380 million.
The Lundin Mining Board of Directors is in the process of reviewing and evaluating the announcement with its financial and legal advisors and will communicate a recommendation to Lundin Mining shareholders as soon as possible. The Board of Directors recommends that shareholders defer making any decision until the Board of Directors has had an opportunity to make a recommendation as to the merits of the offer.
Shareholders will be promptly notified of any recommendation by the Board of Directors through a news release and circular in accordance with applicable securities laws.
The Board of Directors will update shareholders from time to time on developments relating to the Equinox offer and the Company's proposed merger with Inmet Mining Corporation to form Symterra Corporation. The arrangement agreement between Lundin Mining and Inmet Mining Corporation will remain in effect unless terminated by either party in accordance with its terms.
About Lundin Mining
Lundin Mining is a diversified base metals mining company with operations in Portugal, Spain and Sweden, producing copper, nickel, lead and zinc.
In addition, Lundin Mining holds a development project pipeline which includes an expansion project at its Neves-Corvo mine along with its equity stake in the world class Tenke Fungurume copper/cobalt project in the Democratic Republic of Congo.
On Behalf of the Board,
Phil Wright, President and CEO
Forward Looking Statements
Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the Ontario Securities Act or "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 of the United States. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to foreign currency fluctuations; risks inherent in mining including environmental hazards, industrial accidents, unusual or unexpected geological formations, ground control problems and flooding; risks associated with the estimation of mineral resources and reserves and the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; uncertain political and economic environments; changes in laws or policies, foreign taxation, delays or the inability to obtain necessary governmental permits; and other risks and uncertainties, including those described under Risk Factors Relating to the Company's Business in the Company's Annual Information Form and in each management discussion and analysis. Forward-looking information is in addition based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of copper, nickel, lead and zinc; 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, readers are advised not to place undue reliance on forward-looking statements.
FOR FURTHER INFORMATION PLEASE CONTACT:
Lundin Mining Corporation
Sophia Shane
Investor Relations North America
+1-604-689-7842
or
Lundin Mining Corporation
John Miniotis
Senior Business Analyst
+1-416-342-5560
or
Lundin Mining Corporation
Robert Eriksson
Investor Relations Sweden
+46 8 545 015 50
JoeyVents
15 years ago
MAY 28, 2009 - 18:52 ET
Lundin Mining Provides Update on Status of Credit Facility
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View News Release in PDF Format TORONTO, ONTARIO--(Marketwire - May 28, 2009) - Lundin Mining Corporation ("Lundin Mining") (TSX:LUN)(OMX:LUMI) today announced that it is seeking to extend the waiver period for non-compliance with the tangible net worth covenant of the Company's credit facility for a period of 30 days. The existing waiver which was granted by the Company's lenders on February 25, 2009 expires on June 5, 2009.
Since the initial waiver was granted, a number of measures have been undertaken to improve the Company's financial position, including:
- An equity issuance resulting in net proceeds to the Company of $149.2 million,
- Debt repayment of $55 million, followed by a voluntary reduction in the amount of the credit facility to $225 million, and
- The completion of a copper hedging program, securing a healthy copper price for approximately half of the Company's copper production over the next twelve months.
The amount of the proposed restructured facility of $225 million represents less than 10% of the Company's shareholders' equity.
The additional extension period will ensure that the lenders have adequate time to review the Company's revised financial model reflecting these developments, as well as allowing adequate time for the finalization of terms and completion of documentation.
Phil Wright, President and CEO, commented, "Good progress has been made on the restructuring of the facility and we expect the thirty day extension should be sufficient to bring this to a satisfactory conclusion for both the Company and the lenders."
About Lundin Mining Corporation
Lundin Mining Corporation is a diversified base metals mining company with operations in Portugal, Spain, Sweden and Ireland, producing copper, nickel, lead and zinc. In addition, Lundin Mining holds a development project pipeline which includes expansion projects at its Zinkgruvan and Neves-Corvo mines along with its equity stake in the world class Tenke Fungurume copper/cobalt project in the Democratic Republic of Congo. The Company also holds an extensive exploration portfolio and interests in international mining and exploration ventures.
On behalf of the Board,
Phil Wright, President and CEO
FORWARD-LOOKING INFORMATION
Certain of the statements made and information contained herein is "forward-looking information" within the meaning of applicable Canadian securities legislation or "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 of the United States. Generally, these forward-looking statements or information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to foreign currency fluctuations; risks inherent in mining including environmental hazards, industrial accidents, unusual or unexpected geological formations, ground control problems and flooding; risks associated with the estimation of mineral resources and reserves and the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; uncertain political and economic environments; changes in laws or policies, foreign taxation, delays or the inability to obtain necessary governmental permits; and other risks and uncertainties, including those described under Risk Factors Relating to the Company's Business in the Company's current Annual Information Form and management discussion and analysis.
Forward-looking information is based on various assumptions including, without limitation, the expectations and beliefs of management at the time they are made, including, without limitation, the assumed long term price of copper, lead and zinc; 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. The forward-looking information contained herein is presently for the purpose of assisting investors in understanding the Company's plans and objectives and may not be appropriate for other purposes. Accordingly, readers are advised not to place undue reliance on forward-looking statements.
FOR FURTHER INFORMATION PLEASE CONTACT:
Lundin Mining Corporation
Sophia Shane
Investor Relations North America
604-689-7842
or
Lundin Mining Corporation
Robert Eriksson
Investor Relations Europe
+46 (701) 112615
www.lundinmining.com
JoeyVents
15 years ago
MAY 11, 2009 - 12:15 ET
Lundin Mining Consents to Sale by HudBay of All Its Lundin Mining Shares
--------------------------------------------------------------------------------
View News Release in PDF Format TORONTO, ONTARIO--(Marketwire - May 11, 2009) - Lundin Mining Corporation (TSX:LUN)(OMX:LUMI) ("Lundin Mining" or the "Company") announced today that it has entered into an agreement with HudBay Minerals Inc. ("HudBay") consenting to the sale by HudBay of all of its shares in Lundin Mining pursuant an agreement to sell with GMP Securities L.P. The sale is expected to be completed by May 26, 2009.
Pursuant to the agreement, Lundin Mining and HudBay have agreed upon the closing of the sale to:
- terminate all continuing rights and obligations under the previously announced termination agreement dated February 23, 2009 (other than the mutual release and the reciprocal standstill covenant that expires on February 23, 2010) and all continuing rights and obligations of HudBay and Lundin under the previously announced subscription agreement dated November 21, 2008, as amended February 23, 2009; and
- a mutual release in respect of any and all claims connected with or arising from the subscription agreement and certain representations and warranties under the termination agreement.
Commenting on the sale by HudBay, Mr. Phil Wright, President and Chief Executive of Lundin Mining, said, "We are advised that there are no large, individual blocks being taken as part of this sale, which indicates that there is currently a high level of interest in the Company's stock from wide-ranging sources. We believe this brings the HudBay arrangements to a final satisfactory conclusion."
This press release is not an offer of common shares for sale in the United States. The common shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.
ABOUT LUNDIN MINING
Lundin Mining Corporation is a diversified base metals mining company with operations in Portugal, Spain, Sweden and Ireland, producing copper, nickel, lead and zinc. In addition, Lundin Mining holds a development project pipeline which includes expansion projects at its Zinkgruvan and Neves-Corvo mines along with its equity stake in the world class Tenke Fungurume copper/cobalt project in the Democratic Republic of Congo. The Company also holds an extensive exploration portfolio and interests in international mining and exploration ventures.
On Behalf of the Board,
Phil Wright, President and CEO
Forward Looking Statements
Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the Ontario Securities Act or "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 of the United States. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to foreign currency fluctuations; risks inherent in mining including environmental hazards, industrial accidents, unusual or unexpected geological formations, ground control problems and flooding; risks associated with the estimation of mineral resources and reserves and the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; uncertain political and economic environments; changes in laws or policies, foreign taxation, delays or the inability to obtain necessary governmental permits; and other risks and uncertainties, including those described under Risk Factors Relating to the Company's Business in the Company's Annual Information Form and in each management discussion and analysis. Forward-looking information is in addition based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of copper, nickel, lead and zinc; 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, readers are advised not to place undue reliance on forward-looking statements.
Cautionary Notes to Investors - Reserve and Resource Estimates
In accordance with applicable Canadian securities regulatory requirements, all mineral reserve and mineral resource estimates of the Company disclosed or incorporated by reference in this Annual Information Form have been prepared in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"), classified in accordance with Canadian Institute of Mining Metallurgy and Petroleum's "CIM Standards on Mineral Resources and Reserves Definitions and Guidelines" (the "CIM Guidelines"). The definitions of mineral reserves and mineral resources are set out in our disclosure of our mineral reserve and mineral resource estimates that are disclosed or incorporated by reference in this Annual Information Form.
The Company uses the terms "mineral resources", "measured mineral resources", "indicated mineral resources" and "inferred mineral resources". While those terms are recognized by Canadian securities regulatory authorities, they are not recognized by the United States Securities and Exchange Commission (the "SEC") and the SEC does not permit U.S. companies to disclose resources in their filings with the SEC.
Pursuant to the CIM Guidelines, mineral resources have a higher degree of uncertainty than mineral reserves as to their existence as well as their economic and legal feasibility. Inferred mineral resources, when compared with measured or indicated mineral resources, have the least certainty as to their existence, and it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration. Pursuant to NI 43-101, inferred mineral resources may not form the basis of any economic analysis, including any feasibility study. Accordingly, readers are cautioned not to assume that all or any part of a mineral resource exists, will ever be converted into a mineral reserve, or is or will ever be economically or legally mineable or recovered.
FOR FURTHER INFORMATION PLEASE CONTACT:
Lundin Mining Corporation
Sophia Shane
Investor Relations North America
604-689-7842
or
Lundin Mining Corporation
Robert Eriksson
Investor Relations Europe
+46 (701) 112615
www.lundinmining.com
JoeyVents
15 years ago
MAY 7, 2009 - 09:30 ET
Lundin Mining Releases 2009 First Quarter Results
--------------------------------------------------------------------------------
View News Release in PDF Format TORONTO, ONTARIO--(Marketwire - May 7, 2009) - Lundin Mining Corporation ("Lundin Mining" or the "Company") (TSX:LUN)(OMX:LUMI) today reported an unaudited net loss for the quarter of $8.6 million, or $0.02 per share. Operating earnings were $38.2 million, down from $182.9 million in the first quarter of 2008. Cash flow from operations for the quarter was a cash outflow of $63.3 million, compared to a small inflow of $3.5 million in the first quarter of 2008.
-------------------------------------------------------------------------- January - MarchUS $ millions, except earnings per share 2009 2008--------------------------------------------------------------------------Sales 123.4 305.7Operating earnings (1) 38.2 182.9Net (loss) earnings before discontinued operations (14.2) 81.3Net (loss) earnings (8.6) 78.8
Basic and diluted (loss) earnings per share: From continuing operations (0.03) 0.21 From discontinued operations 0.01 (0.01)--------------------------------------------------------------------------Basic and diluted (loss) earnings per share (0.02) 0.20--------------------------------------------------------------------------Cash flow from operations (63.3) 3.5--------------------------------------------------------------------------1) Operating earnings is a Non-GAAP measure defined as sales, less operating costs, accretion of asset retirement obligation ("ARO") and other provisions, selling, general and administration costs and stock-based compensation.
Commenting on the quarter, Mr. Phil Wright, President and CEO said "This quarter has probably represented the bottom for us in terms of cash flow and earnings. We paid out $68.1 million in customer settlements that related to last quarter's severe price falls and, post this, all our mining operations are now cash flow positive.
"The recent equity raising, coupled with a limited-term copper hedge, has removed the liquidity concerns we had at the start of the quarter and we are now in a position to be able to finalize a suitable debt facility in the near future. We expect this new facility to be in the order of $225 million, an amount that we judge to be more than adequate to meet our needs over the next few years.
"On the operating front, our wholly-owned operations continue to perform well with a lower cost base and it is with a great deal of satisfaction that we have seen the Tenke copper/cobalt project start-up and finalize its first shipment of copper to market.
"This quarter has been a real watershed for us and strategically we are now looking for new opportunities to create value knowing that we have a very sound platform comprising long-life, low-cost assets off which to work," Mr. Wright said.
Highlights
- Sales for the quarter were $123.4 million, down 60% compared to sales in the first quarter of 2008 of $305.7 million. The decline is entirely related to lower metal prices.
- Operating cost performance improved primarily due to decrease in treatment and refining charges of $22.8 million and cost control initiatives which involved a reduced number of contractors and lower materials costs. Total operating costs decreased by $28.2 million to $76.8 million from $105.0 million in the first quarter of 2008. The US dollar-denominated cash cost per pound of metal produced was aided by a weakening of the Euro and Swedish krona.
- Operating earnings reduced by $144.7 million from $182.9 million in the first quarter of 2008 to $38.2 million in 2009. Price and price adjustments on previous concentrate sales accounted for a reduction of approximately $191 million, and this was partially offset by cost improvements at the operations and more favourable exchange rates.
- Cash flow from operations for the quarter was a cash outflow of $63.3 million, compared to a small inflow of $3.5 million in the first quarter of 2008. The Company paid $68.1 million to customers during the quarter for settlement of sales that occurred in previous periods.
- The Company announced the production of first copper was achieved during the quarter at the Tenke Fungurume copper-cobalt project in which the Company holds a 24.75% interest. This was followed shortly thereafter by the first shipment of copper cathode from the operation. The project is still expected to reach commercial production in the second half of 2009, targeting full production for Phase I of 115,000 tonnes per annum ("tpa") copper and at least 8,000 tpa cobalt.
- In March, the Company reported its Mineral Reserve and Resource estimates as at December 31, 2008. Notable items were: the replacement of mined reserves at the Company's two key operations of Neves-Corvo and Zinkgruvan; an initial copper reserve at Zinkgruvan; large copper reserves at Tenke Fungurume.
- The updated estimates also include a large increase in zinc reserves and resources at Neves-Corvo. Neves-Corvo is now not only a major copper producer but also a world-class zinc deposit and overall remains under-explored.
- In February, the Company agreed to terminate the plan of arrangement with HudBay Minerals Inc. that had been entered into in November of 2008.
Financial Position
- Net debt(1) at March 31, 2009 was $259.5 million, as compared to a net debt of $145.5 at December 31, 2008. The increase in net debt during the quarter was primarily attributable to the cash outflow on the settlement of sales for which provisional payments had been previously received, as well as cash outlays on disposal of Aljustrel and capital expenditures.
- On April 27th the Company closed a bought-deal public offering for total net proceeds of C$180.6 million ($149.2 million). The Company issued 92 million common shares of the Company at a price of C$2.05 per share.
- During April, the Company entered into multiple option collar arrangements to protect against near-term decreases in the price of copper. The contracts establish a weighted average floor price of $1.87 per pound and a weighted average maximum price cap of $2.39 per pound. The contracts, which come due over the next 12 months, are for approximately 40,000 tonnes of copper.
- Cash on hand at March 31, 2009 was $51.3 million. Cash on hand at May 4, 2009 was approximately $135.1 million.
Outlook
- Production outlook for 2009 is unchanged:
-------------------------------------------------------------------------- Production Outlook(contained metal in tonnes) 2009--------------------------------------------------------------------------Copper(i) 90,000Zinc 98,000Lead 40,000Nickel 6,800--------------------------------------------------------------------------(i) No tonnage included for Tenke
- Market outlook remains uncertain. Although prices have recovered somewhat since December's lows, the physical metal markets lack transparency and the Company remains prepared for any directional changes in near-term metal prices. Operating plans for Neves-Corvo have been secured by the hedging arrangements for 40,000 tonnes of copper which ensures positive cash flow even if copper prices fall back to December's lows of $1.30 per pound.
- Cash costs per pound are still expected to be in the region of 10% below 2008 but are dependent on exchange rates.
- Neves-Corvo and Zinkgruvan will continue to be free cash flow(2) positive and large amounts payable to customers at year end which drained cash balances have now been settled. Aguablanca is cash flow positive at current prices and will continue to be monitored to ensure it remains viable.
- Capital expenditures for the year are expected to be around $130 million which includes: $50 million of sustaining capital; $30 million of new investment in existing operations relating to the Zinkgruvan copper project and the Neves-Corvo zinc expansion; and in the range of $40 - $50 million for Tenke (covering pro rata working capital, exploration drilling, expansion studies and other minor costs).
- The Company expects that its consistent operational performance and the completion of the bought deal financing for net proceeds of C$180.6 million ($149.2) should assist in the satisfactory restructuring of the credit facility during the second quarter.
First Quarter 2009 Results
Financial and Operational Highlights
Three months ended March 31(USD millions, except per share amounts) 2009 2008 ----------- -----------Sales 123.4 305.7Operating earnings (1) 38.2 182.9Depletion, depreciation & amortization (43.5) (52.9)General exploration and project investigation (5.3) (10.1)Interest and bank charges (4.0) (3.4)Foreign exchange loss (7.2) (6.2)Loss on forward sales contracts - (1.2)Other income and expenses 1.2 2.8 ----------- -----------(Loss) earnings from continuing operations before discontinued operations and income taxes (20.6) 111.9
Income tax recovery (expense) 6.4 (30.6) ----------- -----------Net (loss) earnings after taxes before discontinued operations (14.2) 81.3Net income (loss) from discontinued operations 5.6 (2.5) ----------- -----------Net (loss) income (8.6) 78.8 ----------- ----------- ----------- -----------
Shareholders' Equity 2,580.4 3,750.0Cash flow from operations (63.3) 3.5Capital expenditures (33.6) (79.3)Net debt (2) 259.5 104.2
Key Financial Data Three months ended March 31 2009 2008 ----------- -----------Shareholders' equity per share (3) 5.29 9.61Basic (loss) earnings per share (0.02) 0.20Basic (loss) earnings per share before discontinued operations (0.03) 0.21Diluted (loss) earnings per share (0.02) 0.20Diluted (loss) earnings per share before discontinued operations (0.03) 0.21Dividends Nil NilEquity ratio (4) 0.75 0.74Shares outstanding: Basic weighted average 487,433,771 390,821,044 Diluted weighted average 487,433,771 390,942,398 End of period 487,433,771 390,413,431
Production Summary Three months ended March 31(excluding Aljustrel) 2009 2008 Change---------------------------------------------------------------------------Copper (tonnes) 24,240 24,940 -2.8%Zinc (tonnes) 34,277 40,062 -14.4%Lead (tonnes) 12,870 12,577 2.3%Nickel (tonnes) 1,961 1,848 6.1%
(1) Operating earnings is a Non GAAP measure defined as sales, less operating costs, accretion of asset retirement obligation ("ARO") and other provisions, selling, general and administration costs and stock based compensation. See page 22 of this MD&A for discussion of Non GAAP measures.(2) Net debt/(surplus) is a Non GAAP measure defined as available unrestricted cash less financial debt, including capital leases and other debt related obligations.(3) Shareholders' equity per share is a Non GAAP measure defined as shareholders' equity divided by total number of shares outstanding at end of period.(4) Equity ratio is a Non GAAP measure defined as shareholders' equity divided by total assets at the end of period.
The 2009 first quarter financial statements, management's discussion and analysis and notes to the financial statements are available on Sedar (www.sedar.com) or the Company's website (www.lundinmining.com).
About Lundin Mining
Lundin Mining Corporation ("Lundin", "Lundin Mining" or the "Company") is a diversified base metals mining company with operations in Portugal, Spain, Sweden and Ireland, producing copper, nickel, lead and zinc. In addition, Lundin Mining holds a development project pipeline which includes expansion projects at its Zinkgruvan and Neves-Corvo mines along with its equity stake in the world class Tenke Fungurume copper/cobalt project in the Democratic Republic of Congo. The Company also holds an extensive exploration portfolio and interests in international mining and exploration ventures.
On Behalf of the Board,
Phil Wright, President and CEO
Forward Looking Statements
Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the Ontario Securities Act or "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 of the United States. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to foreign currency fluctuations; risks inherent in mining including environmental hazards, industrial accidents, unusual or unexpected geological formations, ground control problems and flooding; risks associated with the estimation of mineral resources and reserves and the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; uncertain political and economic environments; changes in laws or policies, foreign taxation, delays or the inability to obtain necessary governmental permits; and other risks and uncertainties, including those described under Risk Factors Relating to the Company's Business in the Company's Annual Information Form and in each management discussion and analysis. Forward-looking information is in addition based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of copper, nickel, lead and zinc; 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, readers are advised not to place undue reliance on forward-looking statements.
Cautionary Notes to Investors - Reserve and Resource Estimates
In accordance with applicable Canadian securities regulatory requirements, all mineral reserve and mineral resource estimates of the Company disclosed or incorporated by reference in this Annual Information Form have been prepared in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"), classified in accordance with Canadian Institute of Mining Metallurgy and Petroleum's "CIM Standards on Mineral Resources and Reserves Definitions and Guidelines" (the "CIM Guidelines"). The definitions of mineral reserves and mineral resources are set out in our disclosure of our mineral reserve and mineral resource estimates that are disclosed or incorporated by reference in this Annual Information Form.
The Company uses the terms "mineral resources", "measured mineral resources", "indicated mineral resources" and "inferred mineral resources". While those terms are recognized by Canadian securities regulatory authorities, they are not recognized by the United States Securities and Exchange Commission (the "SEC") and the SEC does not permit U.S. companies to disclose resources in their filings with the SEC.
Pursuant to the CIM Guidelines, mineral resources have a higher degree of uncertainty than mineral reserves as to their existence as well as their economic and legal feasibility. Inferred mineral resources, when compared with measured or indicated mineral resources, have the least certainty as to their existence, and it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration. Pursuant to NI 43-101, inferred mineral resources may not form the basis of any economic analysis, including any feasibility study. Accordingly, readers are cautioned not to assume that all or any part of a mineral resource exists, will ever be converted into a mineral reserve, or is or will ever be economically or legally mineable or recovered.
(1) Net debt/(surplus) is a Non-GAAP measure defined as available unrestricted cash less financial debt, including capital leases and other debt related obligations.
(2) Free cash flow is a Non-GAAP measure defined as cash flows from operations, less sustaining capital expenditures.
All amounts are expressed in US dollars unless otherwise noted.
FOR FURTHER INFORMATION PLEASE CONTACT:
Lundin Mining Corporation
Sophia Shane
Investor Relations North America
+1-604-689-7842
or
Lundin Mining Corporation
Josh Crumb
Investor Relations Toronto
+1-416-342-5565
or
Lundin Mining Corporation
Robert Eriksson
Investor Relations Sweden
+46 8 545 015 50
www.lundinmining.com
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