===== SIDA 1 ===== Management’s Discussion and Analysis For the year ended December 31, 2023 This management’s discussion and analysis (“MD&A”) has been prepared as of February 21, 2024 and should be read in conjunction with the Company’s consolidated financial statements for the year ended December 31, 2023 ("Consolidated Financial Statements"). Those financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board. The Company’s presentation currency is United States (“US”) dollars. Reference herein of $ or USD is to United States dollars, ARS is to Argentine pesos, BRL is to Brazilian reais, C$ is to Canadian dollars, CLP is to Chilean pesos, € refers to euros, and SEK is to Swedish kronor. "This quarter" means the fourth quarter ("Q4") of 2023. About Lundin Mining Lundin Mining Corporation (“Lundin Mining” or the “Company”) 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, nickel and gold. Table of Contents Highlights ................................................................................................................................................................................ 1 Outlook ................................................................................................................................................................................... 6 Selected Fourth Quarter and Annual Financial Information .................................................................................................. 7 Summary of Quarterly Results ............................................................................................................................................... 8 Revenue Overview .................................................................................................................................................................. 9 Annual Financial Results ......................................................................................................................................................... 13 Fourth Quarter Financial Results ............................................................................................................................................ 15 Mining Operations .................................................................................................................................................................. 17 Production Overview ........................................................................................................................................................ 17 Production Cost and Cash Cost Overview ........................................................................................................................ 18 Capital Expenditures ......................................................................................................................................................... 19 Candelaria ......................................................................................................................................................................... 20 Caserones .......................................................................................................................................................................... 21 Chapada ............................................................................................................................................................................ 22 Eagle .................................................................................................................................................................................. 23 Neves-Corvo ...................................................................................................................................................................... 24 Zinkgruvan ......................................................................................................................................................................... 25 Josemaria Project ................................................................................................................................................................... 26 Metal Prices, LME Inventories, and Smelter Treatment and Refining Charges ..................................................................... 27 Liquidity and Capital Resources .............................................................................................................................................. 28 Related Party Transactions ..................................................................................................................................................... 31 Changes in Accounting Policies and Critical Accounting Estimates and Judgements ............................................................ 31 Non-GAAP and Other Performance Measures ....................................................................................................................... 32 Managing Risks ....................................................................................................................................................................... 40 Management's Report on Internal Controls .......................................................................................................................... 40 Outstanding Share Data ......................................................................................................................................................... 40 ===== SIDA 2 ===== 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 labour; 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: 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; volatility and fluctuations in metal and commodity demand and prices; significant reliance on assets in Chile; reputation risks related to negative publicity with respect to the Company or the mining industry in general; delays or the inability to obtain, retain or comply with permits; risks relating to the development of the Josemaria Project; health and safety laws and regulations; risks associated with climate change; risks relating to indebtedness; 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; inability to attract and retain highly skilled employees; risks inherent in and/or associated with operating in foreign countries and emerging markets, including with respect to foreign exchange and capital controls; project financing risks, liquidity risks and limited financial resources; health and safety risks; compliance with environmental, unavailable or inaccessible infrastructure, infrastructure failures, and risks related to ageing infrastructure; changing taxation regimes; 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; 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; regulatory investigations, enforcement, sanctions and/or related or other litigation; 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; risks associated with the use of derivatives; risks relating to joint ventures and operations; environmental and regulatory risks associated with the structural stability of waste rock dumps or tailings storage facilities; exchange rate fluctuations; 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; risks relating to dilution; risks relating to payment of dividends; counterparty and customer concentration risks; activist shareholders and proxy solicitation matters; estimation of asset carrying values; 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 significant shareholders; challenges or defects in title; internal controls; risks relating to minor elements contained in concentrate products; the threat associated with outbreaks of viruses and infectious diseases; and other risks and uncertainties, including but not limited to those described in the "Managing Risks” section of this MD&A and the “Risk and Uncertainties” section of the Company’s Annual Information Form, which is available on SEDAR+ at www.sedarplus.ca 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. ===== SIDA 3 ===== Highlights For the year ended December 31, 2023 the Company generated revenue of $3.4 billion (2022 - $3.0 billion), gross profit of $652.4 million (2022 - $762.6 million) and adjusted EBITDA1 of $1,363.5 million (2022 - $1,292.5 million). Financial results include the contribution from the acquisition of the Caserones copper-molybdenum mine ("Caserones") located in Chile, from the closing date of the transaction on July 13, 2023. The operations performed well in 2023 with the Company achieving production at the midpoint of guidance or higher for all metals. Both copper and zinc production had record annual production volumes of 314,798 tonnes and 185,161 tonnes respectively, whilst nickel production amounted to 16,429 tonnes for the year. The gold production of 148,968 oz was at the upper end of the guidance whilst molybdenum production of 2,024 tonnes was in excess of the upper end of guidance. For the quarter ended December 31, 2023 , the Company generated revenue of $1.1 billion (Q4 2022 - $0.8 billion ), gross profit of $188.9 million (Q4 2022 - $155.2 million) and adjusted EBITDA of $419.7 million (Q4 2022 - $353.7 million). Operationally, the Company performed well during the fourth quarter of 2023 with 103,337 tonnes of copper and 50,719 tonnes of zinc produced, both record quarterly volumes for the Company. On February 8, 2024 the Company announced its mineral resource and mineral reserve estimates effective as of December 31, 2023. On a 100% basis, estimated proven and probable mineral reserves of contained copper is 10,630 kt which represents an increase of 2,220 kt over the previous year, primarily attributable to the addition of Caserones. Additional drilling at the Sauva deposit in Brazil grew the measured and indicated copper mineral resources at this deposit by 25%. Candelaria had additional drilling at La Espanola and Santos which contributed to an increase in overall mineral resources, offsetting changes to underground mining regulations which have impacted underground mineral resources. 1 1 This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion. ===== SIDA 4 ===== Operational Performance Candelaria (80% owned): Candelaria produced, on a 100% basis, 152,012 tonnes of copper, approximately 90,000 ounces of gold and 1.5 million ounces of silver in concentrate during the year. Copper production was consistent with the prior year due to higher throughput being offset by lower grades and recoveries. Gold production was higher than in the prior year due to higher throughput and grades. Both metals were within the most recently-disclosed 2023 production guidance ranges. Production costs were higher than the prior year primarily due to inflationary cost increases and and unfavourable foreign exchange. Copper cash cost1 of $2.07/lb was within the most recently-disclosed 2023 cash cost guidance range. Caserones (51% owned): Caserones produced 65,210 tonnes of copper and 2,024 tonnes of molyb denum on a 100% basis during the year, from the acquisition closing date of July 13, 2023 to the end of the year. Both metals met or exceeded the most recently-disclosed 2023 production guidance ranges due to strong throughput, grade and recoveries. Copper cash cost of $1.99/lb was slightly below the low end of the most recently-disclosed cash cost guidance range as a result of higher production. Chapada (100% owned): Chapada produced 45,719 tonnes of copper and approximately 59,000 ounces of gold, with copper production remaining consistent to the prior year and gold production being negatively impacted by lower grade, throughput, and recoveries. Both metals were within the most recently-disclosed 2023 production guidance ranges. Production costs were lower than the prior year due to lower sales volumes. Full year copper cash cost of $2.27/lb was below the low end of the most recently-disclosed cash cost guidance. Eagle (100% owned): Eagle’s production of 16,429 tonnes of nickel and 13,600 tonnes of copper were near the higher ends of recently-disclosed 2023 production guidance ranges but lower than that in the prior year due to planned lower grades. Production costs were lower than the prior year due to lower sales volumes. Nickel cash cost 1 of $2.16/lb was within the most recently-disclosed 2023 cash cost guidance range but higher than the prior year as a result of lower grade, lower by- product credits and higher repair and maintenance costs. Neves-Corvo (100% owned): Neves-Corvo produced 33,823 tonnes of copper and 108,812 tonnes of zinc during the year. Zinc production increased significantly from the prior year due to higher throughput as a result of the zinc expansion project ("ZEP"). Copper production also increased due to higher throughput and production of both metals was within the most recently-disclosed 2023 production guidance ranges. Production costs were lower than in the prior year despite higher sales, primarily due to lower input costs, in particular lower electricity and diesel prices, partially offset by unfavourable foreign exchange. Copper cash cost of $2.37/lb for the year exceeded the most recently-disclosed 2023 cash cost guidance range and was higher than in the prior year primarily due to lower zinc by-product credits, higher treatment and refining charges, and unfavourable foreign exchange. Zinkgruvan (100% owned): Zinc production of 76,349 tonnes was consistent with the prior year, but slightly below the most recently-disclosed 2023 production guidance range. Installation of a sequential flotation system during the year is achieving improved recoveries, but a longer than anticipated ramp-up limited mill availability and reduced recoveries, limiting production of both lead and zinc. Lead production of 26,284 tonnes was also lower than in the prior year. Production costs and sales volumes were consistent with the prior year and zinc cash cost1 of $0.43/lb was below the most recently-disclosed 2023 cash cost guidance range but higher than in the prior year, primarily due to lower by-product credits. 2 1 This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion. ===== SIDA 5 ===== 2023 Production, Cash Cost and Capital Expenditure Summary Total 2023 production, cash costs and capital expenditures are compared to the most recent 2023 guidance as follows: Production Cash Cost ($/lb)a (Contained metal in concentrate) Actual Guidanceb Actual Guidanceb Copper (t) Candelaria (100%) 152,012 147,000 - 153,000 2.07 2.00 - 2.20 Caserones (100%) 65,210 65,000 - 69,000 1.99 2.00 - 2.20 Chapada 45,719 45,000 - 48,000 2.27 2.35 - 2.55 Eagle 13,600 12,000 - 15,000 Neves-Corvo 33,823 33,000 - 36,000 2.37 2.10 - 2.30 Zinkgruvan 4,434 3,000 - 4,000 Total 314,798 305,000 - 325,000 Zinc (t) Neves-Corvo 108,812 103,000 - 110,000 Zinkgruvan 76,349 78,000 - 82,000 0.43 0.45 - 0.50 Total 185,161 181,000 - 192,000 Nickel (t) Eagle 16,429 15,000 - 17,000 2.16 2.00 - 2.20 Gold (koz) Candelaria (100%) 90 87 - 92 Chapada 59 55 - 60 Total 149 142 - 152 Molybdenum (t) Caserones (100%) 2,024 1,500 - 2,000 2023 Capital Expenditurec ($ thousands) Actual Guidanceb Candelaria (100%) 380,112 375,000 Caserones (100%) 83,880 110,000 Chapada 72,291 70,000 Eagle 22,201 20,000 Neves-Corvo 102,621 105,000 Zinkgruvan 53,358 65,000 Other 12,761 10,000 Total Sustaining Capital 727,224 755,000 Expansionary - Josemaria 275,913 350,000 Total Capital Expenditures 1,003,137 1,105,000 a. Cash cost is a non-GAAP measure - see Section "Non-GAAP and Other Performance Measures" of this MD&A for discussion. b. Guidance as disclosed in the Company's MD&A for the three and nine months ended September 30, 2023 with trending commentary in the MD&A for the three and nine months ended September 30, 2023. c. Sustaining capital expenditure is a supplementary financial measure and expansionary capital expenditure is a non-GAAP measure – see Section "Non-GAAP and Other Performance Measures" of this MD&A for discussion. 3 ===== SIDA 6 ===== Corporate Updates • On February 22, 2023, the Company filed updated technical reports for Candelaria and Neves-Corvo. • On July 10, 2023 the Company published its 2022 Sustainability Report. The report highlights progress towards the Company's "Focused on the Future" long-term sustainability strategy, launch and rollout of a fatal risk management program and Candelaria's achievement of The Copper MarkTM certification in early 2023, among other things. • On July 13, 2023, the Company announced the closing of the acquisition of 51% of the issued and outstanding equity of SCM Minera Lumina Copper Chile ("Lumina Copper"), which owns the Caserones copper-molybdenum mine located in Chile. Net cash paid at closing was $648.6 million , consisting of $796.6 million upfront cash consideration after adjustments, net of $148.0 million cash and cash equivalents held by Lumina Copper at closing on a 100% basis. Excluding the 49% of cash and cash equivalents held by Lumina Copper at closing that are not attributable to the Company, net cash paid at closing was $721.1 million for the Company's 51% equity interest in Caserones. Remaining deferred cash consideration of $150 million will be payable in installments as follows: $50 million to be paid in five installments of $10 million on the anniversary of the transaction closing date in each of 2024, 2025, 2026, 2027, and 2028; and $100 million shall be paid on the anniversary of the closing date in 2029. Lundin Mining also has the right to acquire up to an additional 19% interest in Lumina Copper for $350 million over a five-year period commencing on the first anniversary of the date of closing. A technical report for the Caserones mine titled “NI 43-101 Technical Report on the Caserones Mining Operation, Caserones Project, Atacama Region, Chile” was filed under the Company's profile on SEDAR+. • On September 11, 2023, the Company announced that the Environmental Impact Assessment (“EIA”) for the extension of operations and mine life for its Candelaria Copper Mine in Chile was approved by the Regional Environmental Commission of Atacama on September 8, 2023. Approval of the EIA will allow for the extension of Candelaria's mine life to 2040 and include various measures that will support sustainable social, economic, and environmental development in the Atacama Region. • During the year ended December 31, 2023, the Company declared dividends in the amount of $206.1 million, or C$0.36 per share. • On December 6, 2023, the Company announced that it had renewed its Normal Course Issuer Bid ("NCIB") which allows the Company to purchase up to 52,538,870 common shares over a twelve-month period commencing on December 11, 2023. • In December 2023, Jack Lundin, President and former Director of the Company, assumed the role of President and Chief Executive Officer replacing Peter Rockandel. Mr Rockandel remained on the Board of Directors until December 31, 2023 and Mr Lundin re-joined the Board of Directors on January 1, 2024. • During 2023, the Company successfully completed a move of its corporate headquarters from Toronto, Ontario to Vancouver, British Columbia. • On February 12, 2024, the Company reported an employee fatality at the Neves-Corvo Mine in Portugal. Operations were voluntarily suspended and restarted on February 15, 2024. The appropriate authorities in Portugal were notified and the Company is providing its full cooperation in their investigation. Financial Performance • Gross profit for the year ended December 31, 2023 was $652.4 million which was $110.2 million lower than the prior year period. The decrease was primarily due to lower zinc prices at Zinkgruvan and Neves-Corvo and lower nickel prices and volumes at Eagle offset by the inclusion of Caserones gross profit , which was inclusive of $39.9 million of fair value adjustments to revalue in-process and concentrate inventory on hand at the acquisition date. • For the year ended December 31, 2023 , net earnings of $315.2 million were lower than the prior year period due to lower gross profit, higher financing costs, as well as higher non-cash tax expenses offset partially by lower general exploration and business development expenses. 4 ===== SIDA 7 ===== • Adjusted earnings1 for the twelve months ended December 31, 2023 of $336.2 million were $146.6 million lower than the prior year primarily due to the same factors as the change in net earnings described above. • Cash provided by operating activities for the year ended December 31, 2023 of $1,016.6 million was $139.7 million higher than the prior year comparable period and benefited from the inclusion of production from Caserones, as well as a lower outflow from change in working capital during the year. Financial Position and Financing • On July 27, 2023, the Company announced it had obtained a three-year term loan (the "Term Loan") of a principal amount of $800.0 million with an additional $400.0 million accordion option, maturing July 2026 . The Term Loan was obtained in conjunction with the Company's acquisition of a 51% interest in Caserones , and the $400 million accordion becomes available, subject to commitments from the lenders, upon closing of up to an additional 19% interest in Caserones in accordance with the purchase agreement. • Cash and cash equivalents as at December 31, 2023 were $268.8 million. Cash generated from operations of $1,016.6 million in the year ended December 31, 2023 was used to fund investing activities of $1,674.5 million, which includes the acquisition of Caserones. Cash generated from financing activities w as $728.6 million, which was comprised primarily of the proceeds from the Term Loan to finance the Caserones acquisition. • As at December 31, 2023, the Company had a net debt1 balance of $1,223.4 million. Net debt excluding lease liabilities1 was $946.2 million. • As at February 21, 2024, the Company had a cash balance of approximately $446.7 million and a net debt balance excluding lease liabilities of approximately $851.4 million. 5 1 This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion. ===== SIDA 8 ===== Outlook Production, cash cost, capital expenditures and exploration investment guidance for 2024 remains unchanged from the most recently reported guidance. 2024 Production and Cash Cost Guidance Guidancea (contained metal) Production Cash Cost ($/lb)b Copper (t) Candelaria (100%) 160,000 – 170,000 1.60 – 1.80c Caserones (100%) 120,000 – 130,000 2.60 – 2.80 Chapada 43,000 – 48,000 1.95 – 2.15d Eagle 9,000 – 12,000 Neves-Corvo 30,000 – 35,000 1.95 – 2.15c Zinkgruvan 4,000 – 5,000 Total 366,000 – 400,000 Zinc (t) Neves-Corvo 120,000 – 130,000 Zinkgruvan 75,000 – 85,000 0.45 – 0.50c Total 195,000 – 215,000 Nickel (t) Eagle 10,000 – 13,000 2.80 – 3.00 Gold (koz) Candelaria (100%) 100 – 110 Chapada 55 – 60 Total 155 – 170 Molybdenum (t) Caserones (100%) 2,500 – 3,000 a. Guidance as outlined in the news release 'Lundin Mining Provides 2024 Guidance & Announces 2023 Production Results' dated January 14, 2024. b. Cash costs are based on various assumptions and estimates, including but not limited to: production volumes, commodity prices (Cu: $3.75/lb, Zn: $1.10/lb, Pb: $0.90/lb, Au: $1,800/oz, Mo: $20.00/lb, Ag: $23.00/oz), foreign exchange rates (€/USD: 1.05, USD/SEK:10.50, USD/CLP:850, USD/BRL:5.00) and production costs. Cash cost is a non-GAAP measure - see section 'Non-GAAP and Other Performance Measures' of this MD&A for discussion. c. 68% of Candelaria's total gold and silver production are subject to a streaming agreement, and silver production at Zinkgruvan and Neves-Corvo are also subject to streaming agreements. Cash costs are calculated based on receipt of approximately $429/oz gold and $4.28/oz to $4.68/oz silver. d. Chapada's cash cost is calculated on a by-product basis and does not include the effects of its copper stream agreements. Effects of the copper stream agreements are reflected in copper revenue and will impact realized price per pound. 2024 Capital Expenditure Guidanceb ($ millions) Guidancea Candelaria (100% basis) 300 Caserones (100% basis) 205 Chapada 110 Eagle 25 Neves-Corvo 125 Zinkgruvan 75 Other — Total Sustaining 840 Expansionary - Josemaria 225 Total Capital Expenditures 1,065 a. Guidance as outlined in the news release 'Lundin Mining Provides 2024 Guidance & Announces 2023 Production Results" dated January 14, 2024. b. Sustaining capital expenditure is a supplementary financial measure, and expansionary capital expenditure is a non-GAAP measure – see Section "Non- GAAP and Other Performance Measures" of this MD&A for discussion. 2024 Exploration Investment Guidance Total exploration expenditure guidance for 2024 is $48.0 million. 6 ===== SIDA 9 ===== Selected Fourth Quarter and Annual Financial Information Three months ended December 31, Year ended December 31, ($ millions, except share and per share 2023 2022 2023 2022 2021 Revenue 1,060.0 811.4 3,392.1 3,041.2 3,328.8 Costs of goods sold: Production costs (648.0) (450.9) (2,086.1) (1,661.4) (1,371.3) Depreciation, depletion and amortization (223.1) (142.7) (653.6) (554.8) (522.8) Inventory write-down — (62.5) — (62.5) (65.0) Gross profit 188.9 155.2 652.4 762.6 1,369.7 Net earnings attributable to: Lundin Mining shareholders 38.8 145.6 241.6 426.9 780.3 Non-controlling interests 28.0 (0.3) 73.7 36.7 99.0 Net earnings 66.8 145.3 315.2 463.5 879.3 Adjusted earnings1 79.7 191.5 336.2 482.8 820.6 Adjusted EBITDA1 419.7 353.7 1,363.5 1,292.5 1,869.4 Cash provided by operating activities 306.1 156.9 1,016.6 876.9 1,485.0 Adjusted operating cash flow1 362.0 289.1 1,024.2 992.9 1,487.1 Free cash flow from (used in) operations1 116.8 (35.7) 345.1 381.4 1,054.5 Free cash flow1 61.2 (124.3) 13.5 34.1 953.2 Capital expenditures2 243.9 281.2 1,013.1 842.9 532.1 Per share amounts: Basic and diluted (loss) earnings per share ("EPS") attributable to shareholders 0.05 0.19 0.31 0.56 1.06 Adjusted EPS1 0.10 0.25 0.44 0.63 1.11 Adjusted operating cash flow per share1 0.47 0.38 1.33 1.30 2.02 Dividends declared (C$/share) 0.09 0.09 0.36 0.47 0.39 December 31, 2023 December 31, 2022 December 31, 2021 Total assets 10,861.2 8,172.8 7,636.9 Total debt and lease liabilities 1,485.8 197.3 31.0 Net (debt) cash excluding lease liabilities1 (946.2) 16.3 588.9 1 This is a non-GAAP measure - see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion. 2 Capital expenditures are reported on a cash basis, as presented in the consolidated statement of cash flows. The Company's annual results have been impacted by the acquisition of the Josemaria Project in April 2022 and the acquisition of the Caserones mine in July 2023. Project development costs for the Josemaria Project were initially included in general exploration expenses but began to be capitalized from the fourth quarter of 2022, contributing to higher general exploration expenses and lower capital expenditure in 2022 as compared to 2023. The acquisition of the Caserones mine in July 2023 contributed to an increase in total metal production, net earnings and capital expenditures in 2023 as compared to 2022. Additionally, fair value adjustments of $39.9 million were recorded in production costs in 2023 to re-value the concentrate and in-process inventory on hand at the acquisition of the Caserones mine. During the year ended December 31, 2022 inflationary increases in production costs were experienced, including for electricity, diesel and consumables. Input costs stabilized and in some cases lowered during the year ended December 31, 2023. These movements impacted net earnings, adjusted earnings and adjusted EBITDA in each year. Non-cash write-downs of long-term ore stockpile inventory at Chapada of $66.8 million and $68.1 million were recognized in each of the years ended December 31, 2022 and December 31, 2021, respectively, reducing net earnings in those years. The $800 million Term Loan entered into in conjunction with the Caserones acquisition increased the Company's total debt in mid-2023 and has increased interest expense, reducing net earnings. From 2022 the Company has entered into derivative contracts for foreign currency and diesel as part of its risk management strategy, with realized and unrealized gains and losses impacting net earnings. The Company has also realized foreign exchange and trading gains on debt and equity investments from mid-2022 to support capital funding for the Josemaria Project. 7 ===== SIDA 10 ===== Summary of Quarterly Results1 ($ millions, except per share data) Q4-23 Q3-23 Q2-23 Q1-23 Q4-22 Q3-22 Q2-22 Q1-22 Revenue 1,060.0 992.2 588.5 751.3 811.4 648.5 590.2 991.1 Gross profit 188.9 197.3 52.8 213.3 155.2 82.5 46.0 478.8 Net earnings (loss) 66.8 21.9 61.3 165.3 145.3 (11.2) (48.6) 378.1 - attributable to shareholders 38.8 (3.0) 59.1 146.6 145.6 (11.2) (52.6) 345.1 Adjusted earnings (loss)2,3 79.7 85.3 45.6 125.7 191.5 30.9 (35.3) 295.6 Adjusted EBITDA2,3 419.7 415.1 191.8 336.9 353.7 202.4 148.6 587.8 EPS - Basic and Diluted 0.05 — 0.08 0.19 0.19 (0.01) (0.07) 0.47 Adjusted EPS2,3 0.10 0.11 0.06 0.16 0.25 0.04 (0.05) 0.40 Cash flow from operations 306.1 303.8 194.8 211.9 156.9 36.3 366.4 317.3 Adjusted operating cash flow per share2 0.47 0.41 0.14 0.30 0.38 0.23 0.06 0.64 Capital expenditure4 243.9 243.2 279.9 246.1 281.2 199.5 217.3 144.9 1 The sum of quarterly amounts may differ from year-to-date results due to rounding. 2 This is a non-GAAP measure - see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion. 3 Q2 2023 amounts have been adjusted from those presented in the Company's MD&A for the three and six months ended June 30, 2023. 4 Capital expenditures are reported on a cash basis, as presented in the consolidated statement of cash flows On a quarterly basis the Company's revenue, gross profit and net earnings can be impacted by metal prices, sales volumes as a result of the timing of concentrate shipments, and provisional pricing adjustments on current and prior period shipments. The Company's results have also been impacted by the acquisition of the Josemaria Project in April 2022 and the acquisition of the Caserones mine in July 2023. Project development costs for the Josemaria Project were initially included in general exploration expenses following the acquisition of the project in April 2022, but began to be capitalized from the fourth quarter of 2022. This reduced net earnings in Q2 2022 and Q3 2022 and contributed to higher capital expenditure starting in Q4 2022. The acquisition of the Caserones mine in July 2023 contributed to an increase in gross profit and cash flow from operations in each of Q3 2023 and Q4 2023. Additionally, fair value adjustments of $32.2 million and $7.8 million were recorded in production costs in Q3 2023 and Q4 2023, respectively, to re-value in-process and concentrate inventory on hand at the acquisition date. The $800 million Term Loan entered into in conjunction with the acquisition has increased the Company's interest expense in Q3 2023 and subsequent quarters, reducing net earnings. During 2022, inflationary price increases were experienced for electricity, diesel and consumables. In 2023, input prices stabilized, and in some cases lowered. These trends impacted gross profit and net earnings in the quarters presented above. A non-cash write-down, including depreciation, of long-term ore stockpile inventory at Chapada of $66.8 million was recognized in Q4 2022, reducing net earnings. From Q3 2022, the Company has entered into derivative contracts for foreign currency and diesel as part of its risk management strategy. From Q2 2022, the Company has also realized foreign exchange and trading gains on debt and equity investments to support capital funding for the Josemaria Project. Realized and unrealized gains and losses on derivative contracts and foreign exchange and trading gains on debt equity investments are recorded in other income and impact the Company's net earnings. 8 ===== SIDA 11 ===== Revenue Overview Sales Volumes by Payable Metal 2023 2022 Total Q4 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1 Copper (t) Candelaria (100%) 144,473 38,888 33,668 36,347 35,570 147,251 33,561 35,587 39,655 38,448 Caserones (100%)1 66,075 35,690 30,385 — — — — — — — Chapada 43,761 13,080 11,445 10,164 9,072 45,563 12,037 12,817 7,905 12,804 Eagle 11,968 3,055 3,177 2,951 2,785 14,060 2,672 3,721 4,159 3,508 Neves-Corvo 32,054 9,054 8,799 6,170 8,031 31,592 6,351 8,574 8,183 8,484 Zinkgruvan 4,473 845 1,758 1,001 869 4,428 886 1,570 337 1,635 302,804 100,612 89,232 56,633 56,327 242,894 55,507 62,269 60,239 64,879 Zinc (t) Neves-Corvo 91,115 25,491 21,957 20,125 23,542 66,966 20,205 18,770 16,289 11,702 Zinkgruvan 65,344 17,316 22,042 9,374 16,612 65,684 17,635 13,722 18,525 15,802 156,459 42,807 43,999 29,499 40,154 132,650 37,840 32,492 34,814 27,504 Nickel (t) Eagle 13,339 3,105 3,640 3,859 2,735 14,427 3,239 3,715 4,206 3,267 Gold (koz) Candelaria (100%) 87 23 19 23 22 83 20 20 22 21 Chapada 53 18 13 11 11 65 17 23 10 15 140 41 32 34 33 148 37 43 32 36 Molybdenum (t) Caserones (100%)1 2,019 978 1,041 — — — — — — — Lead (t) Neves-Corvo 4,970 1,830 1,220 881 1,039 2,908 673 654 818 763 Zinkgruvan 25,527 5,714 9,391 4,944 5,478 30,163 7,654 7,502 10,163 4,844 30,497 7,544 10,611 5,825 6,517 33,071 8,327 8,156 10,981 5,607 Silver (koz) Candelaria (100%) 1,322 415 279 333 295 1,442 278 305 412 447 Chapada 129 37 32 29 31 156 50 32 26 48 Eagle 24 8 6 4 6 34 9 9 9 7 Neves-Corvo 821 265 227 158 171 552 92 117 152 191 Zinkgruvan 1,892 449 713 331 399 2,088 551 532 650 355 4,188 1,174 1,257 855 902 4,272 980 995 1,249 1,048 9 1 Caserones results are from July 13, 2023. ===== SIDA 12 ===== Revenue Analysis1 Twelve months ended December 31, by Mine 2023 2022 Change ($ thousands) $ % $ % $ Candelaria (100%) 1,329,599 38 1,317,223 43 12,376 Caserones (100%) 601,775 18 — — 601,775 Chapada 461,175 14 477,927 16 (16,752) Eagle 350,895 10 520,472 17 (169,577) Neves-Corvo 425,042 13 433,486 14 (8,444) Zinkgruvan 223,591 7 292,120 10 (68,529) 3,392,077 3,041,228 350,849 Three months ended December 31, by Mine 2023 2022 Change ($ thousands) $ % $ % $ Candelaria (100%) 359,023 33 342,348 42 16,675 Caserones (100%) 317,219 30 — — 317,219 Chapada 143,439 14 142,328 18 1,111 Eagle 73,720 7 157,060 19 (83,340) Neves-Corvo 115,823 11 102,516 13 13,307 Zinkgruvan 50,783 5 67,178 8 (16,395) 1,060,007 811,430 248,577 Twelve months ended December 31, by Metal 2023 2022 Change ($ thousands) $ % $ % $ Copper 2,398,619 71 1,909,235 63 489,384 Zinc 297,059 9 371,822 12 (74,763) Nickel 243,050 7 379,790 12 (136,740) Gold 235,857 7 227,616 7 8,241 Molybdenum 77,523 2 — — 77,523 Lead 58,445 2 60,624 2 (2,179) Silver 46,430 1 41,958 1 4,472 Other 35,094 1 50,183 3 (15,089) 3,392,077 3,041,228 350,849 Three months ended December 31, by Metal 2023 2022 Change ($ thousands) $ % $ % $ Copper 795,067 75 490,367 60 304,700 Zinc 76,206 7 91,263 11 (15,057) Nickel 47,601 4 128,613 16 (81,012) Gold 74,098 7 61,584 8 12,514 Molybdenum 28,825 3 — — 28,825 Lead 13,609 1 17,536 2 (3,927) Silver 13,872 1 8,607 1 5,265 Other 10,729 2 13,460 2 (2,731) 1,060,007 811,430 248,577 1 Caserones results are from July 13, 2023. 10 ===== SIDA 13 ===== Revenue for the year ended December 31, 2023 amounted to $3,392.1 million which was higher than the prior year as a result of the inclusion of Caserones copper and molybdenum revenue offset by decreases in nickel volumes and prices, and zinc prices. Revenue from gold and silver for the year ended December 31, 2023 includes the partial recognition of an upfront purchase price on the sale of precious metals streams for Candelaria, Neves-Corvo, and Zinkgruvan as well as the cash proceeds which amount to approximately $425/oz for gold and between $4.24/oz and $4.60/oz for silver. Chapada’s copper revenue includes the recognition of deferred revenue from copper streams acquired with the Chapada mine, as well as the cash proceeds of 30% of the market price of the copper sold under the streams. Revenue is recorded using the metal price received for sales that settle during the reporting period. For sales that have not been settled, an estimate is used based on the expected month of settlement and the forward price of the metal at the end of the reporting period. The difference between the estimate and the final price received is recognized by adjusting revenue in the period in which the sale is settled. Settlement dates can range from one to six months after shipment. Provisionally Valued Revenue as of December 31, 2023 Metal Payable metal Valued at Copper 117,594 t $3.85 /lb Zinc 34,047 t $1.21 /lb Nickel 1,263 t $7.46 /lb Gold 30 koz $2,074 /oz Molybdenum 866 t $17.84 /lb 11 ===== SIDA 14 ===== Full-Year Reconciliation of Realized Prices Twelve months ended December 31, 2023 ($ thousands) Copper Zinc Nickel Gold Molybdenum Other Total Revenue from contracts with customers1 2,576,132 412,479 296,900 277,682 82,069 157,106 3,802,368 Provisional pricing adjustments on current year concentrate sales (46,426) (17,257) (13,031) (560) (4,593) (2,154) (84,021) Provisional pricing adjustments on prior year concentrate sales 21,272 4,251 (37,636) 1,087 47 (363) (11,342) 2,550,978 399,473 246,233 278,209 77,523 154,589 3,707,005 Recognition of deferred revenue 53,823 Copper stream cash effect (19,639) Gold stream cash effect (84,319) Less: Treatment and refining charges (264,793) Total Net Sales 3,392,077 Payable Metal 302,804 t 156,459 t 13,339 t 140 koz 2,019 t Current period sales 2 $3.79 $1.15 $9.65 $1,983 $17.41 Provisional pricing adjustments on prior year concentrate sales 0.03 0.01 (1.28) 8 0.01 Realized prices 3,4 $3.82 /lb $1.16 /lb $8.37 /lb $1,991 /oz $17.42 /lb Twelve months ended December 31, 2022 Copper Zinc Nickel Gold Other Total Revenue from contracts with customers1 2,119,529 446,907 358,113 262,737 167,546 3,354,832 Provisional pricing adjustments on current year concentrate sales (125,933) (21,106) 29,914 567 (1,544) (118,102) Provisional pricing adjustments on prior year concentrate sales 15,444 13,818 (1,509) 1,333 — 29,086 2,009,040 439,619 386,518 264,637 166,003 3,265,816 Recognition of deferred revenue 57,681 Copper stream cash effect (23,520) Gold stream cash effect (75,868) Less: Treatment & refining charges (182,881) Total Revenue 3,041,228 Payable Metal 242,894 t 132,650 t 14,427 t 148 koz Current period sales2 $3.72 $1.46 $12.20 $1,775 Provisional pricing adjustments on prior year concentrate sales 0.03 0.04 (0.05) 9 Realized prices3,4 $3.75 /lb $1.50 /lb $12.15 /lb $1,784 /oz 1. Revenue from contracts with customers before recognition of deferred revenue, gold and copper stream cash effects and treatment and refining charges, each of which is presented separately in the table. 2. Includes revenue from contracts with customers and provisional pricing adjustments on current year concentrate sales. 3. This is a non-GAAP measure - see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion. 4. The realized price for copper inclusive of the impact of streaming agreements for 2023 is $3.79/lb (2022: $3.71/lb). The realized price for gold inclusive of the impact of streaming agreements for 2023 is $1,387/oz (2022: $1,273/oz). 12 ===== SIDA 15 ===== Annual Financial Results Production Costs Production costs for the year ended December 31, 2023 were $2,086.1 million an increase from $1,661.4 million in the prior year. Production costs increases were primarily as a result of the acquisition of Caserones, including $39.9 million fair value adjustments recorded to re-value concentrate and in-process inventory on hand at the acquisition date that was subsequently recognized in production costs as the inventory was sold during the year. Production costs also increased at Candelaria due to higher throughput, inflationary cost increases and unfavourable foreign exchange in the first half of the year. Depreciation, Depletion and Amortization Depreciation, depletion and amortization expense for the year ended December 31, 2023 increased from the prior year. The increase was primarily attributable to the acquisition of Caserones and higher expense recorded at Neves-Corvo in line with higher zinc production. These increases were partially offset by decreased expense related to a planned mine life extension at Eagle. Depreciation, depletion & amortization Twelve months ended December 31, ($ thousands) 2023 2022 Change Candelaria 272,377 284,259 (11,882) Caserones 108,489 — 108,489 Chapada 63,480 49,865 13,615 Eagle 52,050 79,523 (27,473) Josemaria 38 633 (595) Neves-Corvo 121,599 101,807 19,792 Zinkgruvan 34,124 36,739 (2,615) Other 1,439 1,924 (485) 653,596 554,750 98,846 General Exploration and Business Development Total general exploration and business development expenses of $55.7 million for the year ended December 31, 2023 decreased from $144.4 million in the prior year primarily due to development associated with the Josemaria Project being capitalized from the fourth quarter of 2022. Business development expenses in the year ended December 31, 2023 also included $5.2 million in transaction costs related to the acquisition of Caserones. During the current year, exploration costs were spent primarily on in-mine and near-mine targets at the Company’s operations. Geophysical surveys were conducted at Chapada and Eagle. The processing and interpretation of the Eagle data is ongoing into 2024. Drilling at Candelaria was divided between Ojos district and Candelaria near-mine. Exploration drilling at Neves-Corvo and Zinkgruvan was primarily focused along potential near-mine trends. Drilling at Chapada was focused between near-mine and the Chapada district. Tender processes for drilling and geophysical surveys were completed at Caserones and are planned to commence in January 2024. Finance Income and Costs Net finance costs of $102.7 million for the year ended December 31, 2023 were higher than $64.2 million in the prior year primarily due to higher interest expense related to higher outstanding debt through the year, combined with increased lease liability interest following the acquisition of Caserones. Other Income and Expense Net other income of $104.6 million for the year ended December 31, 2023 increased slightly from $98.0 million in the prior year as realized gains on foreign exchange and diesel derivative contracts that settled during the year were mostly offset by unrealized losses on unexpired contracts. Foreign exchange gains and losses recorded in other income primarily resulted from foreign exchange revaluation of working capital denominated in foreign currencies and changes in fair value of debt and equity instruments supporting 13 ===== SIDA 16 ===== capital funding for the Josemaria Project. Period end exchange rates having a meaningful impact on foreign exchange recorded at December 31, 2023 were: December 31, 2023 December 31, 2022 Brazilian Real (USD:BRL) 4.84 5.22 Chilean Peso (USD:CLP) 877 860 Euro (USD:€) 0.91 0.94 Swedish Kronor (USD:SEK) 9.98 10.44 Argentine Peso (USD:ARS) 808 177 Income Taxes Income tax expense (recovery) Twelve months ended December 31, ($ thousands) 2023 2022 Change Candelaria 135,078 85,270 49,808 Caserones 19,265 — 19,265 Chapada (1,888) (27,840) 25,952 Josemaria 51,266 — 51,266 Eagle 2,899 28,458 (25,559) Neves-Corvo (8,690) (3,898) (4,792) Zinkgruvan 10,923 34,413 (23,490) Other 7,746 18,225 (10,479) 216,599 134,628 81,971 Income taxes by classification Twelve months ended December 31, ($ thousands) 2023 2022 Change Current income tax expense 154,416 149,978 4,438 Deferred income tax expense (recovery) 62,183 (15,350) 77,533 216,599 134,628 81,971 Income tax expense for the year ended December 31, 2023 was higher than the prior year primarily due to the deferred tax on foreign exchange revaluation of non-monetary assets at the Josemaria Project in Argentina of $53.6 million, deferred mining tax of $40.2 million recorded at Candelaria due to the increase in the mining tax rate and the acquisition of Caserones. This was offset by overall lower taxable earnings, excluding Candelaria, when compared to the prior period. In addition to the $40.2 million in deferred mining taxes, the increase of $49.8 million in taxes in Candelaria is also due to higher taxable earnings in the current period. Current taxes for the year are higher due to less taxable losses available to offset the taxable income when compared to the prior period. Included in the deferred taxes are Chapada’s $24.5 million recovery recorded for deferred tax on foreign exchange revaluation of non-monetary assets (2022 – $20.7 million expense). Other taxes in 2023 include withholding taxes on accrued interest on intercompany debt and distributions from Eagle mine. 14 ===== SIDA 17 ===== Fourth Quarter Financial Results Gross Profit Gross profit for the quarter was $188.9 million, an increase from $155.2 million in the prior year comparable quarter. The increase was primarily due to the addition of the Caserones gross profit and partially offset by decreases in gross profit at Eagle and Zinkgruvan as a result of lower nickel and zinc prices. Net Earnings Net earnings for the quarter ended December 31, 2023 were $66.8 million which was lower than the prior year quarter net earnings of $145.3 million. Net earnings decreased as a result of higher non-cash income tax expense during the quarter. Cash Flow from Operations Cash provided by operating activities for the quarter was $306.1 million, compared to the prior year comparable quarter of $156.9 million. The increase was largely due to the inclusion of Caserones cash flows as well as higher gross profit overall at the operations. 15 ===== SIDA 18 ===== Fourth Quarter Reconciliation of Realized Prices Three months ended December 31, 2023 ($ thousands) Copper Zinc Nickel Gold Molybdenum Other Total Revenue from contracts with customers1 839,120 104,337 54,672 84,851 33,929 44,791 1,161,700 Provisional pricing adjustments on current period concentrate sales 8,448 3,973 (622) 469 6,169 (296) 18,141 Provisional pricing adjustments on prior period concentrate sales (3,567) (1,922) (6,964) 3,014 (11,273) (3,170) (23,882) 844,001 106,388 47,086 88,334 28,825 41,325 1,155,959 Recognition of deferred revenue 13,771 Copper stream cash effect (4,987) Gold stream cash effect (23,464) Less: Treatment and refining charges (81,272) Total Net Sales 1,060,007 Payable Metal 100,612 t 42,807 t 3,105 t 41 koz 978 t Current Period Sales2 $3.82 $1.15 $7.90 $2,074 $18.60 Provisional pricing adjustments on prior period concentrate sales (0.01) (0.02) (1.02) 74 (5.23) Realized prices 3,4 $3.81 /lb $1.13 /lb $6.88 /lb $2,148 /oz $13.37 /lb Three months ended December 31, 2022 Copper Zinc Nickel Gold Other Total Revenue from contracts with customers1 449,496 112,501 90,453 66,304 42,352 761,106 Provisional pricing adjustments on current period concentrate sales 17,130 7,233 7,004 1,891 — 33,258 Provisional pricing adjustments on prior period concentrate sales 45,098 (7,121) 35,493 1,298 — 74,768 511,724 112,613 132,950 69,493 42,352 869,132 Recognition of deferred revenue 15,326 Copper stream cash effect (5,146) Gold stream cash effect (17,318) Less: Treatment & refining charges (50,564) Total Revenue 811,430 Payable Metal 55,507 t 37,840 t 3,239 t 37 koz Current period sales2 $3.81 $1.44 $13.65 $1,822 Provisional pricing adjustments on prior period concentrate sales 0.37 (0.09) 4.97 34 Realized prices3,4 $4.18 /lb $1.35 /lb $18.62 /lb $1,856 /oz 1. Revenue from contracts with customers before recognition of deferred revenue, gold and copper stream cash effects and treatment and refining charges, each of which is presented separately in the table. 2. Includes revenue from contracts with customers and provisional pricing adjustments on current period concentrate sales. 3. This is a non-GAAP measure - see Section "Non-GAAP and Other Performance Measures" of this MD&A for discussion. 4. The realized price for copper inclusive of the impact of streaming agreements for 2023 is $3.79/lb (2022: $4.14/lb). The realized price for gold inclusive of the impact of streaming agreements for 2023 is $1,577/oz (2022: $1,394/oz). 16 ===== SIDA 19 ===== Mining Operations Production Overview 2023 2022 Total Q4 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1 Copper (t) Candelaria (100%) 152,012 41,618 34,275 36,952 39,167 152,042 34,398 37,192 40,949 39,503 Caserones (100%)1 65,210 35,389 29,821 — — — — — — — Chapada 45,719 12,872 12,286 10,697 9,864 45,739 11,306 13,988 10,345 10,100 Eagle 13,600 3,334 3,245 3,881 3,140 15,895 3,081 3,994 4,400 4,420 Neves-Corvo 33,823 9,623 9,016 7,610 7,574 31,906 7,160 7,019 7,867 9,860 Zinkgruvan 4,434 501 1,299 917 1,717 4,077 607 1,737 535 1,198 314,798 103,337 89,942 60,057 61,462 249,659 56,552 63,930 64,096 65,081 Zinc (t) Neves-Corvo 108,812 31,035 25,807 24,177 27,793 82,435 24,523 22,514 20,647 14,751 Zinkgruvan 76,349 19,684 23,967 11,938 20,760 76,503 19,785 17,813 21,265 17,640 185,161 50,719 49,774 36,115 48,553 158,938 44,308 40,327 41,912 32,391 Nickel (t) Eagle 16,429 3,729 4,290 4,686 3,724 17,475 4,096 4,379 4,719 4,281 Gold (koz) Candelaria (100%) 90 25 20 21 24 86 20 21 23 22 Chapada 59 19 15 13 12 68 16 24 16 12 149 44 35 34 36 154 36 45 39 34 Molybdenum (t) Caserones (100%)1 2,024 928 1,096 — — — — — — — Lead (t) Neves-Corvo 5,600 2,030 1,447 951 1,172 3,306 845 743 925 793 Zinkgruvan 26,284 6,418 8,643 3,816 7,407 30,517 7,619 7,046 9,124 6,728 31,884 8,448 10,090 4,767 8,579 33,823 8,464 7,789 10,049 7,521 Silver (koz) Candelaria (100%) 1,487 468 306 366 347 1,595 306 337 457 495 Chapada 258 73 67 62 56 258 65 75 60 58 Eagle 64 17 19 11 17 93 20 20 26 27 Neves-Corvo 1,902 573 486 407 436 1,383 370 323 346 344 Zinkgruvan 2,300 509 785 374 632 2,621 663 642 739 577 6,011 1,640 1,663 1,220 1,488 5,950 1,424 1,397 1,628 1,501 17 1 Caserones results are from July 13, 2023. ===== SIDA 20 ===== Production Cost and Cash Cost Overview ($ thousand, $/lb) Three months ended December 31, Twelve months ended December 31, ($ thousands) 2023 2022 2023 2022 Candelaria Production costs $178,088 $207,596 $726,493 $697,171 Gross cost 2.24 2.95 2.46 2.30 By-product1 (0.46) (0.43) (0.39) (0.34) Cash Cost (Cu, $/lb)2 1.78 2.52 2.07 1.96 AISC (Cu, $/lb)2 2.76 4.19 3.34 3.22 Caserones3 Production costs $215,855 — $404,837 — Gross cost 2.73 — 2.59 — By-product1 (0.40) — (0.60) — Cash Cost (Cu, $/lb)2 2.33 — 1.99 — AISC (Cu, $/lb)2 3.48 — 3.03 — Chapada Production costs $89,716 $84,247 $317,317 $324,096 Gross cost 3.25 3.23 3.42 3.28 By-product1 (1.37) (1.28) (1.15) (1.20) Cash Cost (Cu, $/lb)2 1.88 1.95 2.27 2.08 AISC (Cu, $/lb)2 2.75 3.73 3.24 3.36 Eagle Production cost $48,023 $50,581 $191,704 $193,003 Gross cost 6.19 6.39 5.83 5.21 By-product1 (3.82) (3.99) (3.67) (4.42) Cash Cost (Ni, $/lb)2 2.37 2.40 2.16 0.79 AISC (Ni, $/lb)2 4.60 5.23 4.22 3.01 Neves-Corvo Production costs $82,734 $78,402 $326,677 $329,232 Gross cost 4.43 5.82 4.93 4.96 By-product1 (2.47) (3.50) (2.56) (2.69) Cash Cost (Cu, $/lb)2 1.96 2.32 2.37 2.27 AISC (Cu, $/lb)2 3.50 4.22 3.96 3.40 Zinkgruvan Production costs $31,520 $29,590 $115,394 $115,553 Gross cost 1.11 0.98 1.06 1.00 By-product1 (0.48) (0.66) (0.63) (0.68) Cash Cost (Zn, $/lb)2 0.63 0.32 0.43 0.32 AISC (Zn, $/lb)2 0.93 0.77 0.83 0.68 1. By-product is after related treatment and refining charges. 2. All-in Sustaining Cost per pound sold ("AISC") and Cash cost are non-GAAP measures, see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion. 3. Caserones results are from July 13, 2023. 18 ===== SIDA 21 ===== Capital Expenditures1 Year ended December 31, 2023 2022 ($ thousands) Sustaining Expansionary Capitalized Interest Total Sustaining Expansionary Capitalized Interest Total Candelaria 380,112 — — 380,112 389,731 — — 389,731 Caserones 83,880 — — 83,880 — — — — Chapada 72,291 — — 72,291 104,711 — — 104,711 Eagle 22,201 — — 22,201 16,413 — — 16,413 Josemaria — 275,913 9,980 285,893 — 171,094 14 171,108 Neves-Corvo 102,621 — — 102,621 71,222 31,899 65 103,186 Zinkgruvan 53,358 — — 53,358 48,144 — — 48,144 Other 12,761 — — 12,761 9,610 — — 9,610 727,224 275,913 9,980 1,013,117 639,831 202,993 79 842,903 1 Capital expenditures are reported on a cash basis, as presented in the consolidated statement of cash flows. Sustaining capital expenditure is a supplementary financial measure and expansionary capital expenditure is a non-GAAP measure – see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion. 19 ===== SIDA 22 ===== Candelaria (Chile) The Candelaria operations consist of an open pit and underground mines providing copper ore to two on-site processing plants located near Copiapó in the Atacama region of Chile, as well as a port facility and desalination plant located approximately 100km from the mine facilities in the town of Caldera. The Company holds an indirect 80% ownership interest in Candelaria with the remaining 20% interest indirectly held by Sumitomo Metal Mining Co., Ltd and Sumitomo Corporation. The plants have a combined processing capacity of 28 million tonnes per annum (“mtpa”), producing copper in concentrate. The primary metal is copper, with gold and silver as by-product metals. Operating Statistics 2023 2022 (100% Basis) Total Q4 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1 Ore mined (000s tonnes) 25,939 7,793 5,350 6,194 6,602 22,666 4,993 6,239 6,362 5,072 Ore milled (000s tonnes) 28,903 7,609 7,168 6,924 7,202 26,725 6,593 6,642 6,847 6,643 Grade Copper (%) 0.58 0.60 0.52 0.59 0.59 0.62 0.57 0.60 0.64 0.65 Gold (g/t) 0.14 0.15 0.12 0.14 0.15 0.14 0.13 0.14 0.14 0.14 Recovery Copper (%) 91.3 90.3 91.0 91.1 92.6 92.7 92.7 93.3 93.0 91.9 Gold (%) 69.5 68.6 70.6 68.8 70.3 73.9 74.0 74.6 73.8 73.0 Production (contained metal) Copper (tonnes) 152,012 41,618 34,275 36,952 39,167 152,042 34,398 37,192 40,949 39,503 Gold (000 oz) 90 25 20 21 24 86 20 21 23 22 Silver (000 oz) 1,487 468 306 366 347 1,595 306 337 457 495 Revenue ($000s) 1,329,599 359,023 299,745 290,426 380,405 1,317,223 342,348 255,330 261,999 457,546 Production costs ($000s) 726,493 178,088 175,468 184,958 187,979 697,171 207,596 168,602 168,164 152,809 Gross profit ($000s) 330,729 106,997 53,909 35,772 134,051 335,793 69,285 11,956 17,924 236,628 Cash cost ($ per pound copper)1 2.07 1.78 2.19 2.14 2.21 1.96 2.52 1.97 1.86 1.58 AISC ($ per pound copper)1 3.34 2.76 3.43 3.76 3.44 3.22 4.19 3.34 2.89 2.61 1All-in Sustaining Cost per pound sold ("AISC") and Cash cost are non-GAAP measures, see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion. Production Copper production for the year ended December 31, 2023 remained consistent with the prior year as higher throughput offset lower grades and recoveries. Copper production for the quarter ended December 31, 2023 was higher than the prior year comparable period, primarily due to increased throughput as a result of reduced ore hardness. Gold production in the current quarter and full year was higher than the prior year comparable periods, due to higher throughput and grades, partially offset by lower recoveries. Annual copper and gold production were at the higher end of the most recently- disclosed production guidance ranges. Production Costs and Cash Cost Production costs for the year ended December 31, 2023 were higher than the prior year, largely as a result of higher throughput, inflationary cost increases and unfavourable foreign exchange in the first half of the year. Production costs for the quarter ended December 31, 2023 were lower than the prior year comparable period despite higher sales volumes. This was mainly attributable to lower maintenance costs, favourable diesel and electricity prices and lower labor costs. Cash cost per pound for the year ended December 31, 2023 was negatively impacted by higher production costs and higher treatment charges, but remained in the most recently-disclosed cash cost guidance range. Cash cost per pound for the quarter ended December 31, 2023 improved from the prior year comparable period primarily due to higher production combined with cost decreases. All-in sustaining cost per pound ("AISC") for the year ended December 31, 2023 was higher than the prior year due to increased cash cost per pound. AISC per pound for the quarter ended December 31, 2023 was lower than the prior year comparable period due to decreased cash cost per pound and lower sustaining capital spend. For the twelve months ended December 31, 2023, approximately 56,000 oz of gold and 888,500 oz of silver were subject to terms of a streaming agreement from which approximately $425/oz of gold and $4.24/oz of silver will be received. Gross Profit Gross profit for the year ended December 31, 2023 was lower than the prior year, primarily due to higher production costs, lower grades and recoveries and unfavourable foreign exchange, partially offset by higher copper prices, net of price adjustments. 20 ===== SIDA 23 ===== Caserones (Chile) Caserones is an open pit copper-molybdenum mine which produces high-quality copper concentrate, copper cathode and molybdenum concentrate. Lundin Mining is the operator after acquiring a 51% interest in Minera Lumina Copper Chile on July 13, 2023, with JX Metals Corporation holding the remaining 49% interest. Results presented are from July 13, 2023. In 2023, the copper concentrator treated 31.8 mt.The solvent extraction-electrowinning plant has a capacity of 34.5 ktpa. Operating Statistics 2023 (100% Basis) Total1 Q4 Q31 Ore mined (000s tonnes) 15,583 7,484 8,099 Ore milled (000s tonnes) 15,424 8,262 7,162 Ore placed on leach 5,541 3,234 2,307 Grade Copper (%) 0.42 0.41 0.44 Molybdenum (%) 0.203 0.191 0.218 Recovery Copper (%) 86.1 88.2 83.9 Molybdenum (%) 72.4 73.9 70.9 Production (tonnes) Copper in concentrate 55,191 29,496 25,695 Copper cathode 10,019 5,893 4,126 Total copper 65,210 35,389 29,821 Molybdenum 2,024 928 1,096 Revenue ($000s) 601,775 317,219 284,556 Production costs ($000s) 404,837 215,855 188,982 Gross profit ($000s) 88,449 31,182 57,267 Cash cost ($ per pound copper)2 1.99 2.33 1.60 AISC ($ per pound copper)2,3 3.03 3.48 2.49 1 Caserones results are from July 13, 2023. 2 All-in Sustaining Cost per pound sold ("AISC") and Cash cost are non-GAAP measures, see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion. 3 Q3 2023 AISC has been adjusted from that presented in the Company's MD&A for the three months ended September 30, 2023. Production Copper and molybdenum production for the quarter ended December 31, 2023 and from the acquisition closing date of July 13, 2023 were higher than planned, primarily due to increased throughput, and a focus on mining higher-grade phase 5 ahead of shifting to phase 6 in 2024. Both metals achieved the most recently-disclosed production guidance, with molybdenum exceeding the high end of the range. Production Costs and Cash Cost Production costs increased in the quarter ended December 31, 2023 in line with higher sales, and benefited from favourable foreign exchange and reduced prices for electricity and certain consumables. Annual Production Costs since acquisition were negatively impacted by $39.9 million of fair value adjustments related to inventory. The fair value adjustments were recorded to re-value concentrate and in-process inventory on hand at the acquisition date, and were subsequently recognized in production costs as the inventory was sold. Copper cash cost per pound in the quarter ended December 31, 2023 and from the acquisition closing date benefited from increased production from higher-grade phase 5. AISC for the year and quarter ended December 31, 2023 and from the acquisition closing date of July 13, 2023 also benefited from lower than expected cash cost. Copper cash cost for the period from the acquisition closing date was slightly below the low end of the most recently-disclosed cash cost guidance range. Following the acquisition in the second quarter, an ongoing process has been underway to identify and realize synergies between the Caserones and Candelaria operations. Cost savings resulting from synergies are estimated to be between $20 million to $30 million annually, in areas including supply chain, logistics and support services. Gross Profit Gross profit for the quarter ended December 31, 2023 and from the acquisition closing date of July 13, 2023 benefited from higher than planned production, favourable copper grades and favourable foreign exchange. 21 ===== SIDA 24 ===== Chapada (Brazil) The Chapada mine consists of four open pit mines and on-site processing facilities located in the northern Goiás State of Brazil, approximately 270 km northwest of the national capital of Brasilia. The processing plant has a capacity of 24.0 mtpa, producing high-quality gold-rich copper concentrate. The primary metal is copper, with gold and silver as by-product metals. Operating Statistics 2023 2022 (100% Basis) Total Q4 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1 Ore mined (000s tonnes) 29,508 7,803 8,062 7,522 6,121 26,319 7,801 7,404 4,875 6,239 Ore milled (000s tonnes) 22,233 5,218 5,832 5,207 5,976 22,752 5,296 6,345 5,670 5,441 Grade Copper (%) 0.26 0.29 0.26 0.26 0.23 0.26 0.25 0.28 0.25 0.23 Gold (g/t) 0.15 0.18 0.15 0.14 0.13 0.16 0.16 0.19 0.17 0.13 Recovery Copper (%) 80.2 85.9 80.8 80.3 73.3 78.6 83.4 78.8 72.9 79.6 Gold (%) 55.0 61.1 55.3 54.1 48.0 56.0 59.5 58.3 50.6 55.3 Production (contained metal) Copper (tonnes) 45,719 12,872 12,286 10,697 9,864 45,739 11,306 13,988 10,345 10,100 Gold (000 oz) 59 19 15 13 12 68 16 24 16 12 Silver (000 oz) 258 73 67 62 56 258 65 75 60 58 Revenue ($000s) 461,175 143,439 111,897 94,721 111,118 477,927 142,328 118,734 57,260 159,605 Production costs ($000s) 317,317 89,716 78,854 80,113 68,634 324,096 84,247 88,665 71,507 79,677 Gross profit (loss) ($000s) 80,378 30,126 20,230 (381) 30,403 41,420 (22,522) 17,851 (22,720) 68,811 Cash cost ($ per pound copper)1 2.27 1.88 2.28 2.69 2.37 2.08 1.95 1.92 2.98 1.82 AISC ($ per pound copper)1 3.24 2.75 3.15 3.80 3.42 3.36 3.73 2.80 5.00 2.56 1All-in Sustaining Cost per pound sold ("AISC") and Cash cost are non-GAAP measures, see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion. Production Copper production for the year ended December 31, 2023 was consistent with the prior year as higher recoveries were offset by lower throughput. Gold production for the year ended December 31, 2023 was lower than the prior year due to lower grades, throughput and recoveries. Copper and gold production for the quarter ended December 31, 2023 was higher than the prior year comparable period primarily due to higher grades and recoveries. Annual copper and gold production were within the most recently-disclosed production guidance ranges. Production Costs and Cash Cost Production costs for the year ended December 31, 2023 were lower than the prior year primarily due to lower sales volumes. Production costs for the quarter ended December 31, 2023 were higher than the prior year comparable quarter primarily due to higher sales volumes and un favourable foreign exchange. Copper cash cost per pound for the year ended December 31, 2023 was higher than the prior year primarily due to lower gold sales, which reduced copper cash cost as by- product credits. Copper cash cost per pound in the quarter ended December 31, 2023 improved from the prior year comparable period primarily due to higher production as a result of favourable grades, and contributed to annual copper cash cost per pound being lower than the most recently-disclosed cash cost guidance range. AISC per pound for the year and quarter ended December 31, 2023 was lower than the prior year comparable periods primarily due to lower sustaining capital expenditure. AISC per pound for the quarter ended December 31, 2023 also benefited from lower cash cost per pound. Gross Profit Gross profit for the year ended December 31, 2023 was higher than the prior year despite lower sales volumes. This was primarily due to a non-cash inventory write-down recognised in 2022, and higher realized copper prices, net of price adjustments. 22 ===== SIDA 25 ===== Eagle (USA) The Eagle mine consists of the Eagle underground mine, located approximately 53 km northwest of Marquette, Michigan, U.S.A. and the Humboldt mill, located 61 km west of Marquette. The plant has a processing capacity of 0.7 mtpa, producing nickel and copper in concentrates. The primary metal is nickel with copper, and minor amounts of cobalt, gold, and platinum-group metals as by-product metals. Operating Statistics 2023 2022 (100% Basis) Total Q4 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1 Ore mined (000s tonnes) 725 188 192 189 156 718 165 190 181 182 Ore milled (000s tonnes) 718 186 190 181 161 718 170 187 182 179 Grade Nickel (%) 2.6 2.3 2.6 2.9 2.6 2.8 2.7 2.7 3.0 2.8 Copper (%) 2.0 1.9 1.8 2.2 2.0 2.3 1.9 2.2 2.5 2.5 Recovery Nickel (%) 87.4 86.1 86.2 88.8 88.5 86.6 88.6 85.5 87.3 85.3 Copper (%) 96.8 96.5 96.4 97.0 97.2 97.2 96.8 96.5 97.7 97.6 Production (contained metal) Nickel (tonnes) 16,429 3,729 4,290 4,686 3,724 17,475 4,096 4,379 4,719 4,281 Copper (tonnes) 13,600 3,334 3,245 3,881 3,140 15,895 3,081 3,994 4,400 4,420 Revenue ($000s) 350,895 73,720 102,505 105,250 69,420 520,472 157,060 106,715 106,828 149,869 Production costs ($000s) 191,704 48,023 52,497 45,735 45,449 193,003 50,581 47,736 55,128 39,558 Gross profit ($000s) 107,141 11,794 35,682 46,845 12,820 247,946 87,359 37,329 29,796 93,462 Cash cost ($ per pound nickel)1 2.16 2.37 2.07 1.88 2.43 0.79 2.40 1.05 0.90 (1.25) AISC ($ per pound nickel)1 4.22 4.60 4.05 3.34 5.16 3.01 5.23 2.77 2.93 1.19 1All-in Sustaining Cost per pound sold ("AISC") and Cash cost are non-GAAP measures, see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion. Production Nickel and copper production for the year ended December 31, 2023 were lower than the prior year primarily due to lower grades. In the quarter ended December 31, 2023, nickel production was lower than the prior year comparable period due to lower grades and recoveries partially offset by higher throughput, and copper production was higher than the prior year comparable period due to higher throughput. Annual nickel and copper production were within the most recently-disclosed production guidance ranges. Production Costs and Cash Cost Production costs in the year ended December 31, 2023 were lower than the prior year in line with lower sales volumes. Production costs in the quarter ended December 31, 2023 were lower than the prior year comparable period despite higher sales volumes as a result of lower royalty expense as a result of lower net smelter revenue . Nickel cash cost per pound in the year ended December 31, 2023 was higher than the prior year period primarily due to lower grade resulting in lower production volumes, lower copper by-product credits, and higher repair and maintenance costs. In the quarter ended December 31, 2023, cash cost per pound was lower than the prior year comparable period due to lower treatment and refining charges, partially offset by lower production volumes. Annual nickel cash cost per pound was within the most recently-disclosed cash cost guidance range. AISC for the year ended December 31, 2023 was higher than the prior year due to increased cash costs per pound and higher sustaining capital expenditures. In the quarter ended December 31, 2023, AISC was lower than prior year comparable period due to lower cash cost per pound, lower royalty expense and reduced lease payments. Gross Profit Gross profit for the year ended December 31, 2023 was lower than the prior year primarily due to lower copper and nickel production and sales volumes, combined with a decline in nickel price during the year. These decreases were partly offset by lower depreciation expense as compared to the prior year following a planned extension of the mine life to mid-2029. 23 ===== SIDA 26 ===== Neves-Corvo (Portugal) Neves-Corvo is located 200 km southeast of Lisbon, Portugal, in the western part of the Iberian Pyrite Belt and consists of an underground mine and on-site processing facilities. The copper plant has a processing capacity of up to 2.8 mtpa, producing copper in concentrate, and the zinc plant is ramping up to an expanded capacity of 2.5 mtpa producing zinc and lead concentrates. The primary metal is copper, with zinc, lead and silver as by-product metals. Operating Statistics 2023 2022 (100% Basis) Total Q4 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1 Ore mined, copper (000s tonnes) 2,591 677 689 622 603 2,501 611 598 610 682 Ore mined, zinc (000s tonnes) 1,989 549 459 470 511 1,632 462 447 426 297 Ore milled, copper (000s tonnes) 2,588 682 674 628 604 2,499 607 596 606 690 Ore milled, zinc (000s tonnes) 1,989 573 441 465 510 1,633 465 449 420 299 Grade Copper (%) 1.7 1.9 1.8 1.6 1.6 1.7 1.6 1.6 1.7 1.8 Zinc (%) 6.8 6.6 7.4 6.6 6.7 6.9 6.9 6.9 6.9 7.0 Lead (%) 1.5 1.4 1.5 1.5 1.5 1.5 1.6 1.5 1.5 1.6 Recovery Copper (%) 76.5 75.6 76.1 77.0 77.7 76.1 75.1 73.0 77.0 78.7 Zinc (%) 78.0 79.9 76.1 76.8 78.7 70.2 74.3 70.3 68.4 66.1 Lead (%) 19.2 25.2 21.3 14.0 15.7 13.2 11.5 11.3 14.6 16.4 Production (contained metal) Copper (tonnes) 33,823 9,623 9,016 7,610 7,574 31,906 7,160 7,019 7,867 9,860 Zinc (tonnes) 108,812 31,035 25,807 24,177 27,793 82,435 24,523 22,514 20,647 14,751 Lead (tonnes) 5,600 2,030 1,447 951 1,172 3,306 845 743 925 793 Silver (000 oz) 1,902 573 486 407 436 1,383 370 323 346 344 Revenue ($000s) 425,042 115,823 111,202 68,614 129,403 433,486 102,516 102,865 93,538 134,567 Production costs ($000s) 326,677 82,734 82,137 76,080 85,726 329,232 78,402 94,572 77,788 78,470 Gross (loss) profit ($000s) (23,234) 642 (2,288) (35,185) 13,597 2,447 (7,570) (17,006) (8,229) 35,252 Cash cost ($ per pound copper)1 2.37 1.96 2.27 3.99 1.69 2.27 2.32 2.69 2.39 1.70 AISC ($ per pound copper)1 3.96 3.50 3.82 5.73 3.29 3.40 4.22 3.51 3.14 2.92 1All-in Sustaining Cost per pound sold ("AISC") and Cash cost are non-GAAP measures, see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion. Production Copper production for the year and quarter ended December 31, 2023 was higher than the prior year comparable periods due to higher throughput, grades and recoveries. Zinc production for the year and quarter ended December 31, 2023 was higher than the prior year comparable periods due to improved throughput and recoveries driven by the ZEP, following optimization during the year. Annual copper and zinc production were within the most recently-disclosed production guidance ranges, with copper being at the lower end of the range and zinc being at the upper end. Production Costs and Cash Cost Production costs for t he year ended December 31, 2023 were lower than the prior year despite higher sales volumes. This was due to lower input costs, in particular electricity and diesel rates, partially offset by unfavourable foreign exchange. Production costs for the quarter ended December 31, 2023 were higher than the prior year primarily owing to the EUR:USD foreign exchange rate being unusually low in the fourth quarter of 2022. Copper cash cost per pound for the year ended December 31, 2023 was higher than the prior year due to lower zinc by-product credits and higher treatment and refining charges. Copper cash cost per pound for the quarter ended December 31, 2023 improved from the prior year comparable period due to higher copper production. Annual copper cash cost per pound slightly exceeded the most recently-disclosed cash cost guidance range. AISC for the year ended December 31, 2023 was higher than the prior year due to higher cash cost and higher sustaining capital expenditures. AISC for the quarter ended December 31, 2023 was lower than the prior year comparable period due to lower cash costs, sustaining capital expenditures and royalties. Gross (Loss) Profit Gross loss for the year ended December 31, 2023 was $23.2 million compared to the prior year gross profit of $ 2.4 million. The decrease was a result of lower realized zinc prices, higher treatment and refining charges and higher depreciation expense in line with increased zinc sales. These decreases were partly offset by lower production costs. 24 ===== SIDA 27 ===== Zinkgruvan (Sweden) The Zinkgruvan mine consists of an underground mine and on-site processing facilities, located approximately 200 km southwest of Stockholm, Sweden. The plant has processing capacity of 1.6 mtpa. Products are zinc, lead and copper concentrates. The primary metal is zinc, with lead, silver and copper as by-products. Operating Statistics 2023 2022 (100% Basis) Total Q4 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1 Ore mined, zinc (000s tonnes) 1,178 313 287 268 310 1,209 325 260 298 326 Ore mined, copper (000s tonnes) 207 36 65 51 55 192 48 61 38 45 Ore milled, zinc (000s tonnes) 1,179 327 326 211 315 1,234 309 293 327 305 Ore milled, copper (000s tonnes) 198 28 58 34 78 225 26 84 27 88 Grade Zinc (%) 7.3 6.7 8.2 6.6 7.4 7.0 7.3 6.9 7.3 6.5 Lead (%) 2.9 2.5 3.5 2.4 2.9 3.0 3.0 2.9 3.3 2.7 Copper (%) 2.5 2.0 2.5 3.1 2.4 2.1 2.6 2.4 2.3 1.6 Recovery Zinc (%) 89.0 89.8 90.0 86.3 88.7 88.4 88.3 87.5 89.1 88.7 Lead (%) 77.8 77.1 75.7 76.2 82.1 82.4 82.2 82.5 83.1 81.7 Copper (%) 88.5 86.3 88.7 86.1 90.5 87.1 89.0 86.1 87.7 87.3 Production (contained metal) Zinc (tonnes) 76,349 19,684 23,967 11,938 20,760 76,503 19,785 17,813 21,265 17,640 Lead (tonnes) 26,284 6,418 8,643 3,816 7,407 30,517 7,619 7,046 9,124 6,728 Copper (tonnes) 4,434 501 1,299 917 1,717 4,077 607 1,737 535 1,198 Silver (000 oz) 2,300 509 785 374 632 2,621 663 642 739 577 Revenue ($000s) 223,591 50,783 82,290 29,520 60,998 292,120 67,178 64,854 70,596 89,492 Production costs ($000s) 115,394 31,520 37,183 17,786 28,905 115,553 29,590 25,709 29,066 31,188 Gross profit ($000s) 74,073 10,519 32,727 6,821 24,006 139,828 29,800 33,703 30,500 45,825 Cash cost ($ per pound)1 0.43 0.63 0.28 0.24 0.54 0.32 0.32 0.18 0.44 0.27 AISC ($ per pound)1 0.83 0.93 0.56 1.06 0.97 0.68 0.77 0.50 0.82 0.57 1All-in Sustaining Cost per pound sold ("AISC") and Cash cost are non-GAAP measures, see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion. Production Production of zinc in the year and quarter ended December 31, 2023 was consistent with the prior year comparative periods, but annual production was slightly below the most recently-disclosed production guidance range due to lower annual throughput and lower grade in the fourth quarter. Lead production in the year and quarter ended December 31, 2023 were lower than the prior year comparative periods, due to lower grades and recoveries. Installation of a sequential flotation system during the year is achieving improved recoveries, but a longer than anticipated ramp-up limited mill availability and reduced recoveries, limiting production of both zinc and lead. Copper production in the year ended December 31, 2023 was higher than the prior year due to higher grades and recoveries, although copper production in the fourth quarter was reduced by lower grades and recoveries. Production Costs and Cash Cost Production costs for the year ended December 31, 2023 were consistent with the prior year and benefited from reduced electricity prices and favourable foreign exchange, offsetting production limitations during the ramp-up of the sequential flotation system. Production costs for the quarter ended December 31, 2023 were slightly higher than the prior year comparable period primarily due to higher throughput and lower grades. Zinc cash cost per pound for the year and quarter ended December 31, 2023 was higher than the prior year comparable periods, primarily due to lower by-product credits, but was slightly below the most recently-disclosed annual cash cost guidance range. AISC for the year and quarter ended December 31, 2023 were higher than the prior year in line with higher cash cost. Higher sustaining capital expenditures, including the sequential flotation project, also impacted the full year AISC. Gross Profit Gross profit for the year ended December 31, 2023 was lower than the prior year due to lower realized zinc prices, lower lead sales volumes and higher treatment and refining charges. 25 ===== SIDA 28 ===== Josemaria Project (Argentina) Josemaria Project is located in the San Juan Province of Argentina, approximately 9 km east of the Chile-Argentina border. Access to site is to be from the city of San Juan, currently the operating centre for a significant portion of the project team. along public two-lane paved roads and a project-developed and maintained gravel road. The project is developing access to water, grid power, as well as transportation and logistics wholly within San Juan province. Project Development The Company continues to de-risk the Josemaria Project in several areas including evaluating inflation and currency devaluation impacts, developing optimization studies to enhance mining and production plans, plant throughput, concentrate transportation, infrastructure, further water drilling, modeling and studies, and exploration drilling. At Josemaria, the water program continues progressing by advancing the identification of water sources, providing data to update models, and incorporating sectoral permits. The grinding mills and gearless mill drives ("GMDs") deliveries continue and will be stored in a San Juan facility for care and maintenance. Work continues on permitting with the technical review of the tailings dam design; the permit application for the access road and power line as well as minor permits and e nvironmental impact assessment for road maintenance were completed and submitted for approval. With the newly elected San Juan province governor having taken office on December 10, 2023 negotiations are set to proceed on the infrastructure agreements for the royalty offset funding of the access road and the power line capital costs. These agreements are expected to be signed in conjunction with several other provincial and national agreements. Additionally, the project team continues with the execution of a series of studies de-risking the project as well as advancing financing and execution readiness activities. A study to increase plant throughput was finalized in the fourth quarter of 2023. Additional studies including concentrate transportation, infrastructure review, mine optimization and equipment selection, execution plan update, and commercial strategies will be completed in 2024. Exploration drilling on several of the Cumbre Verde and Portones targets near the Josemaria orebody are advancing according to plan. An airborne geophysical survey was completed in Q4 2023 at Josemaria and the current drilling program will continue into 2024. In 2023, the Company spent $275.9 million in capital expenditure. In 2022, the Company spent $171.1 million which was recorded as capital expenditure beginning in the fourth quarter of 2022. Prior to capitalization in the fourth quarter of 2022, project spending was included in general exploration and business development expense on the income statement. Annual capital spend in 2023 was below the most recently-disclosed guidance estimate of $350.0 million. 26 ===== SIDA 29 ===== Metal Prices, LME Inventories and Smelter Treatment and Refining Charges The average metal prices for copper, zinc, and nickel were lower in 2023 compared to 2022, while the average metal prices for molybdenum and gold were higher over the same period. Copper and gold average metal prices were higher in the quarter ended December 31, 2023 compared to the prior year comparable period, while zinc, molybdenum and nickel average metal prices were lower as compared to the prior year comparable period. The average metal prices in the quarter ended December 31, 2023 for zinc and gold were 3% and 2% higher, respectively, than the average metal prices during the third quarter of 2023, while the average metal prices of copper, molybdenum and nickel were 2%, 22% and 15% lower, respectively, than the average metal prices during the third quarter of 2023. Three months ended December 31, Twelve months ended December 31, (Average LME Price) 2023 2022 Change 2023 2022 Change Copper US$/pound 3.70 3.63 2 % 3.85 3.99 -4 % US$/tonne 8,159 8,001 8,478 8,797 Zinc US$/pound 1.13 1.36 -17 % 1.20 1.58 -24 % US$/tonne 2,498 3,001 2,647 3,478 Nickel US$/pound 7.82 11.47 -32 % 9.74 11.61 -16 % US$/tonne 17,247 25,292 21,474 25,604 Gold US$/ounce 1,971 1,726 14 % 1,941 1,800 8 % Molybdenum US$/pound 18.64 21.39 -13 % 24.19 18.73 29 % US$/tonne 41,086 47,148 53,332 41,291 The LME inventories for copper, zinc and nickel all increased during 2023, ending the year 88%, 602% and 15%, respectively, higher than the closing levels of 2022. During the first eight months of 2023 the treatment charges (“TC”) and refining charges (“RC”) in the spot market for copper concentrates between miners and commodity traders increased from an average spot TC during January of $73 per dry metric tonne ("dmt") of concentrate and a spot RC of $0.073 per lb of payable copper to a spot TC during August 2023 of $83 per dmt of concentrate and a spot RC of $0.083 per lb of payable copper. Starting in September, with supply constraints from Central and South America and increased smelting capacity in Asia, the spot TC’s and RC’s for copper concentrates started to decrease from an average spot TC during September 2023 of $80 per dmt of concentrate and a spot RC of $0.08 per lb of payable copper to a spot TC during December 2023 of $49 per dmt of concentrate and a spot RC of $0.049 per lb of payable copper. Chinese smelter buying terms followed the same trend as for commodity traders, starting the year from a spot TC of $84 per dmt of concentrates and a spot RC of $0.084 per lb payable copper and finishing the year at a spot TC of $68 per dmt of concentrates and a spot RC of $0.068 per lb payable copper. For copper concentrates, the terms for annual contracts for 2024 were reached in November 2023 at a TC of $80 per dmt with a RC of $0.08 per payable lb of copper. This represents an improvement compared to the 2023 annual terms at a TC of $88.00 per dmt of concentrates and a RC of $0.088 per payable lb of copper. For zinc concentrates, the spot TC, delivered China, decreased steadily during 2023, starting the year at $275 per dmt, flat, ending at $80 per dmt, flat. The TC for annual contracts for 2023 was settled at $274 per dmt of concentrates, with an upscale price escalator of 6% from a price basis of $3,000 per mt zinc without de-escalator, and represented an improvement of approximately $44 per dmt concentrates in favour of the smelters compared to the prior year. The negotiation of annual terms for 2024 are not expected to be completed until the end of the first quarter of 2024. The Company’s nickel concentrate production from Eagle is sold under several long-term contracts at terms in-line with market conditions. Gold production from Chapada, Candelaria and Caserones is sold at terms in-line with market conditions for copper concentrates. Molybdenum production from Caserones is sold at terms in-line with market conditions for molybdenum concentrates. 27 ===== SIDA 30 ===== Liquidity and Capital Resources As at December 31, 2023, the Company had cash and cash equivalents of $268.8 million and a net debt balance of $1,223.4 million. Cash generated from operations for the year ended December 31, 2023 amounted to $ 1,016.6 million compared to $876.9 million in the prior year primarily due to the inclusion of Caserones cash flows as well as reduced income tax installment payments. Cash used in investing activities for the year ended December 31, 2023 amounted to $1,674.5 million. Cash used in investing activities was higher than in the prior year primarily due to the acquisition of Caserones and increased investments in mineral properties, plant and equipment. Cash provided by financing activities in the year ended December 31, 2023 amounted to $728.6 million compared to $251.6 million of cash used in the prior year. The increase was primarily due to proceeds from the Term Loan related to financing for the Caserones mine and an increased amount drawn on the Company's revolving credit facility at December 31, 2023. In July 2023, the Company obtained a Term Loan of a principal amount of $800.0 million with an additional $400.0 million accordion option maturing in July 2026. The Term Loan bears interest at an annual rate equal to Term Secured Overnight Financing Rate "(Term SOFR") + Credit Spread Adjustment ("CSA") + an applicable margin of 1.60% to 2.65%, depending on the Company’s net leverage ratio. Principal is payable at maturity. The Term Loan is unsecured, save and except for a charge over certain assets in the USA, and has similar covenants to the Company’s existing $1,750.0 million revolving credit facility. The Company used proceeds from the Term Loan to refinance the drawdown under the Company’s revolving credit facility which was used to fund the upfront cash consideration of the Caserones acquisition. Capital Resources The Company continues to expect to be able to fund all its contractual commitments with its operating cash flow, cash on hand and available capital resources. As at December 31, 2023, the Company had $1,208.6 million of debt and $277.2 million of lease liabilities outstanding. As at December 31, 2023 , the Company has a revolving credit facility of $1,750.0 million with $250.0 million outstanding (December 31, 2022 - $13.7 million). The credit facility bears interest on drawn funds at rates of Term SOFR + CSA of 0.10% + 1.45% to Term SOFR + 0.10% + 2.50% depending on the Company’s net leverage ratio. The revolving credit facility is unsecured, save and except for a charge over certain assets in the USA, and is subject to customary covenants. On April 26, 2023, the credit facility was amended extending the term by one year to April 2028. As at December 31, 2023, the Company also has unsecured commercial paper programs maturing in 2025 through 2028 of which $116.0 million (€115.0 million) (December 31, 2022 - $26.7 million) were drawn. As at December 31, 2023 , certain subsidiaries of the Company had outstanding unsecured term loans totalling $48.9 million (December 31, 2022 - $127.4 million) and accruing interest at rates ranging from 6.80% to 7.15% per annum with interest payable upon maturity. The maturity dates range from March to April 2024. During the twelve months ended December 31, 2023 , no shares were purchased under the Company's NCIB (year ended December 31, 2022 - 10.8 million shares, $59.4 million consideration). In December 2023 the Company renewed its NCIB which allows the Company to purchase up to 52,538,870 common shares over a twelve month period commencing on December 11, 2023. As at February 21, 2024 the Company has not purchased any common shares under the renewed NCIB. In addition, the Company entered into an automatic share purchase plan with its designated broker to allow for the purchase of common shares at times which the Company ordinarily would not be active in the market due to trading blackout periods, insider trading rules or otherwise. The development of the Josemaria Project requires significant capital commitments from the Company, and additional funding, beyond debt, may be required to advance the project to completion. Such additional funding may take the form of a partnership, joint venture, royalty, stream or other arrangement (or a combination thereof) for the Josemaria Project, any of which would dilute the Company’s existing interest in the Josemaria Project. The Company may also be required or elect 28 ===== SIDA 31 ===== to pursue equity financing, which could have a dilutive effect on existing securityholders if shares, options, warrants or other convertible securities are issued. The Company’s ability to obtain additional financing for the Josemaria Project in the future will depend, in part, on prevailing capital market conditions and the Company’s financial performance. Failure to secure adequate financing on a timely basis may cause the Company to postpone, abandon, reduce or terminate its development activities in respect of the Josemaria Project and could have a material adverse effect on the Company’s business, results of operations, financial condition and price of common shares. In addition, the Company’s exploration, acquisition, development and operational activities generally require significant investment of resources and capital. The Company allocates such resources and capital to support business objectives, and the availability of required resources and capital is subject to market conditions and the Company’s financial position. The Company has limited financial resources and there is no assurance that sufficient additional funding or financing will be available to the Company or its direct and indirect subsidiaries on acceptable terms, or at all, for further exploration or development of its properties, including the development of the Josemaria Project, or to fulfill its obligations under any applicable agreements. The Company may incur substantial debt from time to time to finance working capital, capital expenditures (such as to advance the Josemaria Project), investments or acquisitions or for other purposes. If the Company does so, the risks related to the Company’s indebtedness could intensify, including, among other things: substantial interest and capital payments; increased difficulty in satisfying existing debt obligations; limitations on the ability to obtain additional financing, or imposed requirements to make non-strategic divestitures; imposed hedging requirements; explicit or implicit restrictions on the Company’s cash flows for capital investment, dividends or distributions, opportunistic acquisitions and other business needs; increased vulnerability to general adverse economic and industry conditions; interest rate risk exposure as borrowings may be at variable rates of interest; decreased flexibility in planning for and reacting to changes in the industry in which it competes; reduced competitiveness as compared to less leveraged competitors; and increased cost of additional borrowing. The terms of the revolving credit facility and Term Loan agreements require the Company to satisfy various affirmative and negative covenants and to meet certain financial ratios and tests. These covenants limit, among other things, the Company’s ability to incur further indebtedness if doing so would cause it to fail to meet certain financial covenants, create certain liens on assets or engage in certain types of transactions. A failure to comply with these covenants, including a failure to meet the financial tests or ratios, would likely result in an event of default under the revolving credit facility and Term Loan and would allow the lenders to restrict future loans or accelerate the debt, which could materially and adversely affect the Company’s business, financial condition and results of operations, its ability to meet payment obligations under its debt and the price of its common shares. As at December 31, 2023, the Company is in compliance with its debt covenants. The Company may issue additional securities to raise funds, to pay for acquisitions or for other reasons. The Company cannot predict the size of future issuances of securities or the effect, if any, that future issuances and sales of securities will have on the market price of common shares. Sales or issuances of substantial numbers of common shares, or the expectation that such sales could occur, may adversely affect prevailing market prices of the Company’s common shares. In connection with any issuance of common shares, investors will suffer dilution to their voting power and the Company may experience dilution in its earnings per share. The Company is exposed to various counterparty risks including, among others: financial institutions that hold the Company’s cash; companies that have payables to the Company, including concentrate customers; the Company’s insurance providers; the Company’s lenders and other banking counterparties; companies that have received deposits from the Company for the future delivery of equipment; and third parties that have agreed to indemnify the Company upon the occurrence of certain events. The Company maintains relationships with various banking partners for its operating activities in the jurisdictions in which the Company operates. The Company’s access to funds under its credit facilities or other debt arrangements is dependent on the ability of the financial institutions that are counterparties to the facilities to meet their funding commitments. Default by financial institutions could require the Company to take measures to conserve cash until the markets stabilize or until alternative credit or other funding arrangements for the Company’s business needs can be obtained. 29 ===== SIDA 32 ===== Contractual Obligations, Commitments and Contingencies The Company has contractual obligations and capital commitments as described in Note 24 “Commitments and Contingencies” in the Company’s Consolidated Financial Statements. From time to time, the Company may also be involved in legal proceedings that arise in the ordinary course of its business. The Company has the following contractual obligations and capital commitments as at December 31, 2023: Payments due by period1 $ thousands <1 year 1-5 years Thereafter Total Reclamation and closure provisions 14,442 149,475 756,528 920,445 Long-term debt and lease liabilities 231,944 1,230,036 153,944 1,615,924 Capital commitments 265,870 195,425 — 461,295 Defined pension obligations 603 2,978 4,602 8,183 512,859 1,577,914 915,074 3,005,847 1Reported on an undiscounted basis, before inflation. Financial Instruments The Company has entered into derivative contracts consisting of foreign currency forward and option contracts as well as diesel swap forward contracts. The option contracts consist of put and call contracts in a collar structure. The Company does not currently utilize financial instruments in hedging metal price or interest rate exposure. For a detailed discussion of the Company’s financial instruments refer to Note 23 of the Company’s Consolidated Financial Statements. Market and Liquidity Risks and Sensitivities Revenue, cost of goods sold and capital expenditures are affected by certain external factors including fluctuations in metal prices and changes in exchange rates between the €, the SEK, the CLP, the BRL, the ARS and the $. Foreign exchange changes may be limited by the cash flow hedges previously described. Commodity prices, primarily copper, zinc, gold and nickel are key performance drivers and fluctuations in the prices of these commodities can have a dramatic effect on the results of operations. Prices can fluctuate widely and are affected by numerous factors beyond the Company’s control. The prices of metals are influenced by supply and demand, exchange rates, interest rates and interest rate expectations, inflation or deflation and expectations with respect to inflation or deflation, speculative activities, changes in global economies, and geopolitical, social and other factors. The supply of metals consists of a combination of new mine production, recycling and existing stocks held by governments, producers and consumers. If market prices for metals fall below the Company’s full production costs and remain at such levels for any sustained period of time, the Company may experience losses and may decide to discontinue mining operations or development of a project at one or more of its properties. If the prices drop significantly, the economic prospects of the mines and projects in which the Company has an interest could be significantly reduced or rendered uneconomic, in which case the Company may need to restate its Mineral Resource and Mineral Reserve estimates. Low metal prices will affect the Company’s liquidity, and if they persist for an extended period of time, the Company may have to look for other sources of cash flow to maintain liquidity until metal prices recover. A sustained and material impact on the Company’s liquidity may also impact the Company’s ability to comply with financial covenants under its credit facilities. Foreign Currency Denominated Production Costs For the year ended December 31, 2023, Candelaria and Caserones production costs are approximately 55% and 50% CLP denominated respectively and Chapada production costs are approximately 80% BRL denominated. Production costs for Eagle, Neves-Corvo and Zinkgruvan are substantially denominated in their functional currencies. 30 ===== SIDA 33 ===== Metal Prices The following table illustrates the sensitivity of the Company's risk on final settlement of its provisionally priced revenues: Metal Payable Metal Provisional price on December 31, 2023 Change Effect on Revenue ($millions) Copper 117,594 t $3.85/lb +/- 10 % +/- $99.8 Zinc 34,047 t $1.21/lb +/- 10 % +/- $9.1 Nickel 1,263 t $7.46/lb +/- 10 % +/- $2.1 Gold 30 koz $2,074/oz +/- 10 % +/- $6.2 Molybdenum 866 t $17.84/lb +/- 10 % +/- $3.4 Related Party Transactions The Company enters into related party transactions that are in the normal course of business and on an arm’s length basis. Related party disclosures can be found in Note 26 of the Company’s December 31, 2023 Consolidated Financial Statements. Changes in Accounting Policies and Critical Accounting Estimates and Judgments The Company describes its significant accounting policies as well as any changes in accounting policies, including amended policies as a result of the Caserones acquisition, in Note 2 “Basis of Presentation and Summary of Material Accounting Policies” of the Consolidated Financial Statements. 31 ===== SIDA 34 ===== Non-GAAP and Other Performance Measures The Company uses certain performance measures in its analysis. These performance measures have no meaning within generally accepted accounting principles under IFRS and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. This data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The following are non-GAAP measures that the Company uses as key performance indicators. Non-GAAP financial measure or ratio Definition Most directly comparable IFRS measure Why management uses the measure and why it may be useful to investors Cash cost Includes costs directly attributable to mining operations (including mining, processing and administration), treatment, refining and transportation charges, but excludes royalty expenses, expenses associated with non- cash fair value adjustments to inventory, depreciation and amortization and capital expenditures for deferred stripping. Revenue from sales of by-products, inclusive of adjustments for the terms of streaming agreements but excluding the recognition of any deferred revenue from the allocation of upfront streaming proceeds, reduce cash costs. Production costs Copper, zinc and nickel cash cost per pound sold are useful measures to assess the operating performance of the Company's mines, and their ability to generate cash. The inclusion of by-product credits incorporates the benefit of other metals extracted in the production of the primary metal. Cash cost per pound sold This ratio is calculated by dividing cash cost by the sales volume of the primary metal (copper, zinc, or nickel). All-in sustaining cost ("AISC") Includes cash cost (as defined above), royalties, sustaining capital expenditure (including deferred stripping and underground mine development), reclamation and other closure cost accretion and amortization and lease payments (cash basis). As this measure seeks to reflect the full cost of production from current operations, expansionary capital and certain exploration costs are excluded as these are costs typically incurred to extend mine life or materially increase the productive capacity of existing assets, or for new operations. Corporate general and administrative expenses have also been excluded as any attribution of these costs to an operating site would not necessarily be reflective of costs directly attributable to the administration of the site. Certain other cash expenditures, including tax payments, financing charges (including capitalized interest) and costs related to business combinations, asset acquisitions and asset disposals are also excluded. Production costs Copper, zinc and nickel AISC and ASIC per pound sold are useful measures to understand the full cost of producing and selling metal at the Company's mines, and each mine's ability to generate cash while sustaining production at current levels. AlSC per pound sold This ratio is calculated by dividing AISC by the sales volume of the primary metal (copper, zinc, or nickel). Sustaining capital expenditures This supplementary financial measure is defined as cash- basis expenditures which maintain existing operations and sustain production levels. Investment in mineral properties, plant and equipment Sustaining capital expenditures provide an understanding of costs required to maintain existing production levels. Expansionary capital expenditures provide information on costs required for future growth of existing or new assets. Expansionary capital expenditures This non-GAAP measure is defined as cash-basis expenditures which increase current or future production capacity, cash flow or earnings potential and are reported excluding capitalized interest. Where an expenditure both maintains and expands current operations, classification would be based on the primary decision for which the expenditure is being made. 32 ===== SIDA 35 ===== Non-GAAP financial measure or ratio Definition Most directly comparable IFRS measure Why management uses the measure and why it is useful to investors Realized price per pound and realized price per ounce1 Defined as revenue from metal sales (copper, zinc, gold, nickel and molybdenum) adding back treatment and refining charges, cash effects of gold and copper streams, recognition of deferred revenue from the allocation of upfront streaming proceeds and sales of silver and other metals, divided by the volume of metal sold in the period. Revenue These measures provide an understanding of the price realized in each reporting period for metal sales. Earnings before interest, taxes, depreciation and amortization (EBITDA) and Adjusted EBITDA EBITDA represents net earnings or loss for the period before income tax expense or recovery, depreciation and amortization, interest income and finance costs. Adjusted EBITDA removes the effects of items that do not reflect the Company's underlying operating performance and are not necessarily indicative of future operating results. These may include: unrealized foreign exchange, unrealized gains or losses from derivative contracts, revaluation gains or losses on marketable securities, derivative liabilities and purchase options, expenses for acquisition-related fair value adjustments to inventory, non-cash impairment charges and reversals, non-cash stockpile inventory or fixed asset write-downs, costs relating to the sinkhole near Ojos del Salado operations, income from investments in associates, gains or losses on disposals of subsidiaries, insurance proceeds and litigation and settlements. Net earnings (loss) EBITDA and Adjusted EBITDA are used to evaluate the Company's operational performance and its ability to generate cash from core operations. Adjusted earnings (loss) Defined as net earnings or loss attributable to shareholders of the Company excluding the effects (net of tax) of significant items that do not reflect the Company's underlying operating performance. In addition to the items listed for Adjusted EBITDA, these may also include: deferred tax recovery or expense arising from foreign exchange translation and deferred tax recovery or expense arising from changes in tax rates. Adjustments exclude amounts attributable to non-controlling interests. Net earnings (loss) attributable to Lundin Mining Corporation shareholders In addition to conventional measures prepared in accordance with IFRS, adjusted earnings and adjusted earnings per share measure the underlying operating performance of the Company. Adjusted earnings (loss) per share This ratio is calculated by dividing adjusted net earnings or loss by the weighted average number of shares outstanding. Free cash flow from operations Defined as cash flow provided by operating activities, excluding general exploration and business development costs and deducting sustaining capital expenditures (as defined above). Cash provided by operating activities Free cash flow from operations is indicative of the Company's ability to generate cash from its operations after consideration of required sustaining capital expenditure necessary to maintain existing production levels. Free cash flow Defined as cash flow provided by operating activities, deducting sustaining capital expenditures and expansionary capital expenditures (both as defined above). Adjusted operating cash flow Defined as cash provided by operating activities, excluding changes in non-cash working capital items. Cash provided by operating activities These measures are indicative of the Company's ability to generate cash from its operations and remove the impact of working capital, which can experience volatility from period-to-period. Adjusted operating cash flow per share This ratio is calculated by dividing adjusted operating cash flow by the weighted average number of shares outstanding. Net debt Net debt is defined as total debt and lease liabilities excluding deferred financing fees, less cash and cash equivalents. Net debt excluding lease liabilities is defined as total debt excluding lease liabilities, deferred financing fees, less cash and cash equivalents. Debt and lease liabilities, current portion of debt and lease liabilities, cash and cash equivalents These measures are indicative of the Company's financial position. Net debt excluding lease liabilities 1See the 'Revenue Overview' section of this MD&A for reconciliations to revenue, the most directly comparable IFRS measure. 33 ===== SIDA 36 ===== Cash Cost per Pound and All-in Sustaining Cost (“AISC”) per Pound Cash Cost per Pound and All-in Sustaining Costs per pound can be reconciled to Production Costs as follows: Twelve months ended December 31, 2023 Operations Candelaria Caserones2 Chapada Eagle Neves- Corvo Zinkgruvan ($000s, unless otherwise noted) (Cu) (Cu) (Cu) (Ni) (Cu) (Zn) Total Sales volumes: Tonnes 144,473 66,075 43,761 13,339 32,054 65,344 Pounds (000s) 318,508 145,670 96,476 29,407 70,667 144,059 Production costs 2,086,108 Less: Royalties and other (66,237) Inventory fair value adjustment1 (39,945) 1,979,926 Deduct: By-product credits (699,915) Add: Treatment and refining charges 183,328 Cash cost 660,160 290,553 219,278 63,457 167,424 62,467 1,463,339 Cash cost per pound ($/lb) 2.07 1.99 2.27 2.16 2.37 0.43 Add: Sustaining capital expenditure 380,112 83,880 72,291 22,201 102,621 53,358 Royalties — 15,820 8,568 22,994 3,949 — Reclamation and other closure accretion and depreciation 9,258 2,560 7,836 11,331 5,387 3,744 Leases and other 13,325 47,944 4,999 4,100 553 427 All-in sustaining cost 1,062,855 440,757 312,972 124,083 279,934 119,996 AISC per pound ($/lb) 3.34 3.03 3.24 4.22 3.96 0.83 Twelve months ended December 31, 2022 Operations Candelaria Chapada Eagle Neves- Corvo Zinkgruvan ($000s, unless otherwise noted) (Cu) (Cu) (Ni) (Cu) (Zn) Total Sales volumes: Tonnes 147,251 45,563 14,427 31,592 65,684 Pounds (000s) 324,633 100,449 31,806 69,648 144,808 Production costs 1,661,358 Less: Royalties and other (53,785) 1,607,573 Deduct: By-product credits (656,534) Add: Treatment and refining charges 124,841 Cash cost 637,486 209,238 25,168 158,351 45,637 1,075,880 Cash cost per pound ($/lb) 1.96 2.08 0.79 2.27 0.32 Add: Sustaining capital expenditure 389,731 104,711 16,413 71,222 48,144 Royalties — 12,298 33,281 4,169 — Reclamation and other closure accretion and depreciation 8,001 7,388 18,512 1,562 3,937 Leases and other 11,313 3,988 2,404 1,404 665 All-in sustaining cost 1,046,531 337,623 95,778 236,708 98,383 AISC per pound ($/lb) 3.22 3.36 3.01 3.40 0.68 1Production cost at Caserones in 2023 was negatively impacted by $39.9 million of fair value adjustments related to inventory. The fair value adjustments were recorded to re-value concentrate and in-process inventory on hand at the acquisition date, and were subsequently recognized in production costs as the inventory was sold. 2 Caserones results are from July 13, 2023 to December 31, 2023. 34 ===== SIDA 37 ===== Three months ended December 31, 2023 Operations Candelaria Caserones Chapada Eagle Neves- Corvo Zinkgruvan ($000s, unless otherwise noted) (Cu) (Cu) (Cu) (Ni) (Cu) (Zn) Total Sales volumes: Tonnes 38,888 35,690 13,080 3,105 9,054 17,316 Pounds (000s) 85,733 78,683 28,836 6,845 19,961 38,176 Production costs 648,037 Less: Royalties and other (24,520) Inventory fair value adjustment1 (7,760) 615,757 Deduct: By-product credits (204,164) Add: Treatment and refining charges 57,938 Cash cost 152,276 183,687 54,108 16,229 39,218 24,013 469,531 Cash cost per pound ($/lb) 1.78 2.33 1.88 2.37 1.96 0.63 Add: Sustaining capital expenditure 79,316 55,031 19,858 6,548 28,070 10,546 Royalties — 8,270 2,174 5,003 1,081 — Reclamation and other closure accretion and depreciation 2,158 1,427 2,047 2,620 1,305 933 Leases and other 2,901 25,715 1,131 1,101 106 103 All-in sustaining cost 236,651 274,130 79,318 31,501 69,780 35,595 AISC per pound ($/lb) 2.76 3.48 2.75 4.60 3.50 0.93 Three months ended December 31, 2022 Operations Candelaria Chapada Eagle Neves- Corvo Zinkgruvan ($000s, unless otherwise noted) (Cu) (Cu) (Ni) (Cu) (Zn) Total Sales volumes: Tonnes 33,561 12,037 3,239 6,351 17,635 Pounds (000s) 73,990 26,537 7,141 14,001 38,878 Production costs 450,927 Less: Royalties and other (15,664) 435,263 Deduct: By-product credits (168,620) Add: Treatment and refining charges 33,897 Cash cost 186,628 51,782 17,169 32,462 12,499 300,540 Cash cost per pound ($/lb) 2.52 1.95 2.40 2.32 0.32 Add: Sustaining capital expenditure 117,174 41,299 5,968 22,086 16,607 Royalties — 3,137 9,152 3,185 — Reclamation and other closure accretion and depreciation 1,999 1,855 4,403 481 902 Leases and other 4,360 932 638 835 118 All-in sustaining cost 310,161 99,005 37,330 59,049 30,126 AISC per pound ($/lb) 4.19 3.73 5.23 4.22 0.77 1Production cost at Caserones in Q4 2023 was negatively impacted by $7.8 million of fair value adjustments related to inventory. The fair value adjustments were recorded to re-value concentrate and in-process inventory on hand at the acquisition date, and were subsequently recognized in production costs as the inventory was sold. 35 ===== SIDA 38 ===== Adjusted EBITDA Adjusted EBITDA can be reconciled to Net Earnings (Loss) as follows: Year ended December 31, ($thousands) 2023 2022 2021 Net earnings 315,249 463,533 879,301 Add back: Depreciation, depletion and amortization 653,596 554,750 522,764 Finance income and costs 102,699 64,185 41,387 Income taxes expense 216,599 134,628 365,686 1,288,143 1,217,096 1,809,138 Unrealized foreign exchange loss 1,224 21,164 27,648 Unrealized losses (gains) on derivative contracts 21,932 (62,971) — Ojos del Salado sinkhole expenses 16,922 63,271 — Loss (income) from equity investment in associates 60 (3,297) (24,895) Caserones inventory fair value adjustment 39,945 — — Ore stockpile inventory write-down — 62,546 65,025 Business interruption insurance settlement — — (16,000) Gain on disposal of subsidiary (5,718) (16,828) — Other 1,040 11,525 8,500 Total adjustments - EBITDA 75,405 75,410 60,278 Adjusted EBITDA1 1,363,548 1,292,506 1,869,416 1 Q2 2023 amounts have been adjusted from those presented in the Company's MD&A for the three and six months ended June 30, 2023. Three months ended December 31, ($thousands) 2023 2022 Net earnings 66,753 145,295 Add back: Depreciation, depletion and amortization 223,056 142,710 Finance income and costs 34,891 16,664 Income taxes 102,616 (2,347) 427,316 302,322 Unrealized foreign exchange loss 2,769 (3,836) Unrealized losses (gains) on derivative contracts (19,309) (62,971) Ojos del Salado sinkhole expenses 1,687 55,482 Caserones inventory fair value adjustment 7,760 — Ore stockpile inventory write-down — 62,546 Other (493) 173 Total adjustments - EBITDA (7,586) 51,394 Adjusted EBITDA 419,730 353,716 36 ===== SIDA 39 ===== Adjusted Earnings and Adjusted EPS Adjusted Earnings and Adjusted EPS can be reconciled to Net Earnings (Loss) Attributable to Lundin Mining Shareholders as follows: Year ended December 31, ($thousands, except share and per share amounts) 2023 2022 2021 Net earnings attributable to Lundin Mining shareholders 241,562 426,851 780,348 Add back: Total adjustments - EBITDA 75,405 75,410 60,278 Tax effect on adjustments (26,925) (797) (21,817) Deferred tax expense due to change in tax rate 40,200 — — Deferred tax arising from foreign exchange translation 28,841 (20,733) 1,730 Non-controlling interest on adjustments (22,886) 2,026 64 Total adjustments 94,635 55,906 40,255 Adjusted earnings1 336,197 482,757 820,603 Basic weighted average number of shares outstanding 772,532,260 762,518,753 736,789,666 Net (loss) earnings attributable to Lundin Mining shareholders 0.31 0.56 1.06 Total adjustments 0.13 0.07 0.05 Adjusted EPS1 0.44 0.63 1.11 1 Q2 2023 amounts have been adjusted from those presented in the Company's MD&A for the three and six months ended June 30, 2023. Three months ended December 31, ($thousands, except share and per share amounts) 2023 2022 Net earnings attributable to Lundin Mining shareholders 38,797 145,562 Add back: Total adjustments - EBITDA (7,586) 51,394 Tax effect on adjustments (2,987) 8,214 Deferred tax expense due to change in tax rate 14,500 — Deferred tax arising from foreign exchange translation 41,168 (14,469) Non-controlling interest on adjustments (4,221) 829 Total adjustments 40,874 45,967 Adjusted earnings 79,671 191,529 Basic weighted average number of shares outstanding 773,476,216 770,804,446 Net (loss) earnings attributable to Lundin Mining shareholders 0.05 0.19 Total adjustments 0.05 0.06 Adjusted EPS 0.10 0.25 37 ===== SIDA 40 ===== Free Cash Flow from Operations and Free Cash Flow Free Cash Flow from Operations and Free Cash Flow can be reconciled to Cash provided by Operating Activities as follows: Year ended December 31, ($thousands) 2023 2022 2021 Cash provided by operating activities 1,016,612 876,889 1,484,954 Sustaining capital expenditures (727,224) (639,831) (475,373) General exploration and business development 55,692 144,353 44,938 Free cash flow from operations 345,080 381,411 1,054,519 General exploration and business development (55,692) (144,353) (44,938) Expansionary capital expenditures (275,913) (202,993) (56,388) Free cash flow 13,475 34,065 953,193 Three months ended December 31, ($thousands) 2023 2022 Cash provided by operating activities 306,081 156,890 General exploration and business development 14,500 12,094 Sustaining capital expenditures (203,827) (204,686) Free cash flow from operations 116,754 (35,702) General exploration and business development (14,500) (12,094) Expansionary capital expenditures (41,082) (76,485) Free cash flow 61,172 (124,281) Adjusted Operating Cash Flow and Adjusted Operating Cash Flow per Share Adjusted Operating Cash Flow and Adjusted Operating Cash Flow per Share can be reconciled to Cash Provided by Operating Activities as follows: Year ended December 31, ($thousands, except share and per share amounts) 2023 2022 2021 Cash provided by operating activities 1,016,612 876,889 1,484,954 Changes in non-cash working capital items 7,605 116,056 2,136 Adjusted operating cash flow 1,024,217 992,945 1,487,090 Basic weighted average number of shares outstanding 772,532,260 762,518,753 736,789,666 Adjusted operating cash flow per share 1.33 1.30 2.02 Three months ended December 31, ($thousands, except share and per share amounts) 2023 2022 Cash provided by operating activities 306,081 156,890 Changes in non-cash working capital items 55,965 132,167 Adjusted operating cash flow 362,046 289,057 Basic weighted average number of shares outstanding 773,476,216 770,804,446 Adjusted operating cash flow per share 0.47 0.38 38 ===== SIDA 41 ===== Net (Debt) Cash and Net (Debt) Cash Excluding Lease Liabilities Net (debt) cash and Net (debt) cash excluding lease liabilities can be reconciled to Debt and Lease Liabilities, Current Portion of Debt and Lease Liabilities and Cash and Cash Equivalents as follows: ($thousands) December 31, 2023 December 31, 2022 December 31, 2021 Debt and lease liabilities (1,273,162) (27,179) (16,386) Current portion of debt and lease liabilities (212,646) (170,149) (14,617) Less deferred financing fees (netted in above) (6,374) (4,926) — (1,492,182) (202,254) (31,003) Cash and cash equivalents 268,793 191,387 594,069 Net (debt) cash (1,223,389) (10,867) 563,066 Lease liabilities 277,208 27,166 25,878 Net (debt) cash excluding lease liabilities (946,181) 16,299 588,944 39 ===== SIDA 42 ===== Managing Risks Risks and Uncertainties The Company’s business activities are subject to a variety and wide range of inherent risks and uncertainties. Any of these risks could have an adverse effect on the Company, its business and prospects, and could cause actual outcomes and results to differ materially from those described in forward-looking statements relating to the Company. For additional discussion on Lundin Mining’s risks, refer to the “Risks and Uncertainties” section of the Company’s Annual Information Form (“AIF”) for the year ended December 31, 2023 and the “Cautionary Statement on Forward-Looking Information” of this MD&A. Management’s Report on Internal Controls Disclosure Controls and Procedures (“DCP”) DCP have been designed to provide reasonable assurance that all material information related to the Company is identified and communicated on a timely basis. Management of the Company, under the supervision of the President and Chief Executive Officer and the Chief Financial Officer, is responsible for the design and operation of DCP. Management has evaluated the effectiveness of the Company's DCP and has concluded that they were effective as at December 31, 2023. Internal Control over Financial Reporting (“ICFR”) The Company’s ICFR is designed to provide reasonable assurance regarding the reliability of financial reporting and preparation of financial statements for external purposes in accordance with IFRS. However, due to inherent limitations ICFR may not prevent or detect all misstatements and fraud. Management will continue to monitor the effectiveness of its ICFR and may make modifications from time to time as considered necessary. Control Framework Management assesses the effectiveness of the Company’s ICFR using the Internal Control – Integrated Framework (2013 Framework) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Management conducted an evaluation of the effectiveness of ICFR and concluded that it was effective as at December 31, 2023. Changes in ICFR There have been no changes in the Company’s ICFR during the three months ended December 31, 2023 that have materially affected, or are reasonably likely to materially affect, the Company’s financial reporting. Outstanding Share Data As at February 21, 2024, the Company has 774,116,995 common shares issued and outstanding, and 5,298,388 stock options and 1,785,303 share units outstanding under the Company's plans. Other Information Additional information regarding the Company is included in the Company’s AIF which is filed with the Canadian securities regulators. A copy of the Company’s AIF can be obtained on SEDAR+ (www.sedarplus.ca) or on the Company’s website (www.lundinmining.com). 40 ===== SIDA 43 ===== Consolidated Financial Statements of Lundin Mining Corporation December 31, 2023 ===== SIDA 44 ===== Management’s Report The accompanying consolidated financial statements of Lundin Mining Corporation ("Lundin Mining" or the “Company”) and other information contained in the management’s discussion and analysis are the responsibility of management and have been approved by the Board of Directors. The consolidated financial statements have been prepared by management in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”) as outlined in Part 1 of the Handbook of the Chartered Professional Accountants (“CPA”) of Canada, and include some amounts that are based on management’s estimates and judgment. The Board of Directors carries out its responsibility for the consolidated financial statements principally through its Audit Committee, which is comprised solely of independent directors. The Audit Committee reviews the Company’s annual consolidated financial statements and recommends its approval to the Board of Directors. The Company’s auditors have full access to the Audit Committee, with and without management being present. These consolidated financial statements have been audited by PricewaterhouseCoopers LLP, Chartered Professional Accountants. (Signed) Jack Lundin (Signed) Teitur Poulsen President and Chief Executive Officer Executive Vice President and Chief Financial Officer Vancouver, British Columbia, Canada February 21, 2024 ===== SIDA 45 ===== PricewaterhouseCoopers LLP PricewaterhouseCoopers Place, 250 Howe Street, Suite 1400, Vancouver, British Columbia, Canada V6C 3S7 T: +1 604 806 7000, F: +1 604 806 7806, ca_vancouver_main_fax@pwc.com “PwC” refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership. Independent auditor’s report To the Shareholders of Lundin Mining Corporation Our opinion In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of Lundin Mining Corporation and its subsidiaries (together, the Company) as at December 31, 2023 and 2022, and its financial performance and its cash flows for the years then ended in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IFRS Accounting Standards). What we have audited The Company’s consolidated financial statements comprise:  the consolidated balance sheets as at December 31, 2023 and 2022;  the consolidated statements of earnings for the years then ended;  the consolidated statements of comprehensive income for the years then ended;  the consolidated statements of changes in equity for the years then ended;  the consolidated statements of cash flows for the years then ended; and  the notes to the consolidated financial statements, which include significant accounting policies and other explanatory information. Basis for opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the consolidated financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada. We have fulfilled our other ethical responsibilities in accordance with these requirements. ===== SIDA 46 ===== Key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2023. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key audit matter How our audit addressed the key audit matter Fair value of mineral properties, plant and equipment acquired as part of the acquisition of SCM Minera Lumina Copper Chile (Lumina Copper) Refer to note 2 – Basis of presentation and summary of material accounting policies and note 3 – Business combination to the consolidated financial statements. The Company acquired 51% of the issued and outstanding equity of Lumina Copper for total cash consideration of $797 million and deferred cash consideration of $150 million on July 13, 2023. The total fair value of identifiable assets acquired included $1.3 billion of mineral properties, plant and equipment, which have primarily been recognized as plant and equipment. Management applied significant judgment in estimating the fair value of acquired mineral properties, plant and equipment. Management used discounted cash flow models and a market-based approach to determine the fair value of mine assets, including the use of significant assumptions such as future metal prices, production based on estimated quantities of Mineral Reserves and Mineral Resources, production and capital expenditures, pricing of in-situ mineral resources implied by the market value of selected comparable transactions involving the sale of similar companies and mineral properties (in-situ multiples) and discount rate. In determining the fair value of plant and equipment, management primarily uses the depreciated replacement cost approach. Our approach to addressing the matter included the following procedures, among others:  Tested how management estimated the fair value of the acquired mineral properties, plant and equipment, which included the following: – Read the purchase agreement. – Tested the underlying data used by management in the discounted cash flow model, market-based valuation, and depreciated replacement cost valuations. – Evaluated the reasonableness of significant assumptions such as future metal prices, production and capital expenditures by (i) comparing future metal prices to external market and industry data; (ii) comparing production and capital expenditures against current and past performance; and (iii) assessing whether these assumptions were consistent with evidence obtained in other areas of the audit. – The work of management’s experts was used in performing the procedures to evaluate the reasonableness of the production based on estimated quantities of Mineral Reserves and Mineral Resources and production and capital expenditures. As a basis for using this work, the competence, capabilities and objectivity of management’s experts were evaluated, the work performed was understood and the appropriateness of the ===== SIDA 47 ===== Key audit matter How our audit addressed the key audit matter Management’s estimates of production based on quantities of Mineral Reserves and Mineral Resources are based on information compiled by qualified persons (management’s experts). We considered this a key audit matter due to the significant auditor effort, subjectivity and significant judgment in performing procedures to test significant assumptions used by management in determining the fair value of acquired mineral properties, plant and equipment. Professionals with specialized skill and knowledge in the field of valuation assisted us in performing our procedures. work as audit evidence was evaluated. The procedures performed also included evaluation of the methods and assumptions used by management’s experts, tests of the data used by management’s experts and an evaluation of their findings. – Professionals with specialized skill and knowledge in the field of valuation assisted in assessing the following: (i) appropriateness of the discounted cash flow model and the reasonability of the discount rate used within the model; (ii) appropriateness of the depreciated replacement cost approach and the reasonability of the resulting fair values assigned to plant and equipment; and (iii) reasonability of the in-situ multiples. Goodwill impairment assessment Refer to note 2 – Basis of presentation and summary of material accounting policies and note 9 – Goodwill to the consolidated financial statements. The Company’s total carrying amount of goodwill as at December 31, 2023 was $241 million. The Company’s goodwill is required to be tested annually for impairment or when events or changes in circumstances indicate that the related carrying amount may not be recoverable. When the recoverable amount of the cash-generating unit (CGU) is less than the carrying amount of that CGU, an impairment loss is recognized. The recoverable amount of each CGU was based on a fair value less cost of disposal method using a discounted cash flow model and market-based approach. Management applied significant judgment in estimating the recoverable amount of each CGU. Significant assumptions used by Our approach to addressing the matter included the following procedures, among others:  Tested how management estimated the recoverable amount of the CGUs, which included the following: – Tested the underlying data used by management in the discounted cash flow models and market-based valuation. – Evaluated the reasonableness of significant assumptions such as future metal prices, foreign exchange rates and production and capital expenditures by (i) comparing future metal prices and foreign exchange rates with external market and industry data; (ii) comparing future production and capital expenditures against current and past performance; and (iii) assessing whether these assumptions were consistent with evidence obtained in other areas of the audit. ===== SIDA 48 ===== Key audit matter How our audit addressed the key audit matter management to determine the recoverable amounts include future metal prices, production based on estimated quantities of Mineral Reserves and Mineral Resources, production and capital expenditures, foreign exchange rates, in-situ multiples and discount rates. The recoverable amount of each CGU determined by management exceeded its carrying value, and as a result, no impairment loss was recorded. Management’s estimates of production based on quantities of Mineral Reserves and Mineral Resources are based on information compiled by qualified persons (management’s experts). We considered this a key audit matter due to the significant auditor effort, subjectivity and significant judgment in performing procedures to test significant assumptions used by management in determining the fair value of the CGUs. Professionals with specialized skill and knowledge in the field of valuation assisted us in performing our procedures. – The work of management’s experts was used in performing the procedures to evaluate the reasonableness of the estimates associated with the production based on quantities of Mineral Reserves and Mineral Resources. As a basis for using this work, the competence, capabilities and objectivity of management’s experts were evaluated, the work performed was understood and the appropriateness of the work as audit evidence was evaluated. The procedures performed also included evaluation of the methods and assumptions used by management’s experts, tests of the data used by management’s experts and an evaluation of their findings. – Professionals with specialized skill and knowledge in the field of valuation assisted in assessing the following: (i) appropriateness of the discounted cash flow models and market-based approach to determine the recoverable amounts of the CGUs; and (ii) the reasonableness of the discount rates and in-situ multiples. Other information Management is responsible for the other information. The other information comprises the Management’s Discussion and Analysis. Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ===== SIDA 49 ===== Responsibilities of management and those charged with governance for the consolidated financial statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS Accounting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Company’s financial reporting process. Auditor’s responsibilities for the audit of theconsolidated financial statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:  Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.  Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. ===== SIDA 50 =====  Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.  Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.  Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. The engagement partner on the audit resulting in this independent auditor’s report is Mark Patterson. Chartered Professional Accountants Vancouver, British Columbia February 21, 2024 /s/PricewaterhouseCoopers LLP ===== SIDA 51 ===== LUNDIN MINING CORPORATION CONSOLIDATED BALANCE SHEETS As at (in thousands of US dollars) December 31, 2023 December 31, 2022 ASSETS Cash and cash equivalents (Note 4) $ 268,793 $ 191,387 Trade and other receivables (Note 5) 828,871 576,178 Income taxes receivable 34,542 72,402 Inventories (Note 6) 599,407 296,710 Current portion of derivative assets (Note 23) 38,114 43,521 Other current assets 21,421 38,571 Total current assets 1,791,148 1,218,769 Restricted funds 59,979 50,195 Long-term inventory (Note 6) 797,597 641,877 Derivative assets (Note 23) 9,397 25,111 Other non-current assets (Note 7) 67,090 20,035 Mineral properties, plant and equipment (Note 8) 7,725,169 5,975,686 Deferred tax assets (Note 22) 170,203 3,837 Goodwill (Note 9) 240,616 237,294 9,070,051 6,954,035 Total assets $ 10,861,199 $ 8,172,804 LIABILITIES Trade and other payables (Note 10) $ 805,763 $ 612,965 Income taxes payable 62,926 45,000 Current portion of derivative liabilities (Note 23) 26,389 24,423 Current portion of debt and lease liabilities (Note 11) 212,646 170,149 Current portion of deferred revenue (Note 12) 87,867 74,061 Current portion of reclamation and other closure provisions (Note 13) 14,442 23,550 Total current liabilities 1,210,033 950,148 Derivative liabilities (Note 23) 3,148 27,876 Debt and lease liabilities (Note 11) 1,273,162 27,179 Deferred revenue (Note 12) 535,363 580,045 Reclamation and other closure provisions (Note 13) 529,734 422,298 Deferred consideration and other long-term liabilities (Note 3) 133,199 24,922 Provision for pension obligations 6,752 5,613 Deferred tax liabilities (Note 22) 751,688 709,602 3,233,046 1,797,535 Total liabilities 4,443,079 2,747,683 SHAREHOLDERS' EQUITY Share capital (Note 14) 4,574,830 4,555,125 Contributed surplus 55,201 55,769 Accumulated other comprehensive loss (296,617) (342,287) Retained earnings 627,903 592,425 Equity attributable to Lundin Mining Corporation shareholders 4,961,317 4,861,032 Non-controlling interests (Note 15) 1,456,803 564,089 Total shareholders' equity 6,418,120 5,425,121 Total liabilities and shareholders' equity $ 10,861,199 $ 8,172,804 Commitments and contingencies (Note 24) The accompanying notes are an integral part of these consolidated financial statements. APPROVED BY THE BOARD OF DIRECTORS (Signed) Adam I. Lundin - Director (Signed) Dale C. Peniuk - Director - 1 - ===== SIDA 52 ===== LUNDIN MINING CORPORATION CONSOLIDATED STATEMENTS OF EARNINGS For the years ended December 31, 2023 and 2022 (in thousands of US dollars, except for shares and per share amounts) 2023 2022 Revenue (Note 16) $ 3,392,077 $ 3,041,228 Cost of goods sold Production costs (Note 17) (2,086,108) (1,661,358) Depreciation, depletion and amortization (653,596) (554,750) Inventory write-down (Note 6) — (62,546) Gross profit 652,373 762,574 General and administrative expenses (66,723) (53,879) General exploration and business development (Note 19) (55,692) (144,353) Finance income (Note 20) 11,137 4,211 Finance costs (Note 20) (113,836) (68,396) Other income (Note 21) 104,589 98,004 Earnings before income taxes 531,848 598,161 Current tax expense (Note 22) (154,416) (149,978) Deferred tax (expense) recovery (Note 22) (62,183) 15,350 Net earnings $ 315,249 $ 463,533 Net earnings attributable to: Lundin Mining Corporation shareholders $ 241,562 $ 426,851 Non-controlling interests 73,687 36,682 Net earnings $ 315,249 $ 463,533 Basic and diluted earnings per share attributable to Lundin Mining Corporation shareholders: $ 0.31 $ 0.56 Weighted average number of shares outstanding (Note 14) Basic 772,532,260 762,518,753 Diluted 773,292,895 763,594,053 The accompanying notes are an integral part of these consolidated financial statements. - 2 - ===== SIDA 53 ===== LUNDIN MINING CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the years ended December 31, 2023 and 2022 (in thousands of US dollars) 2023 2022 Net earnings $ 315,249 $ 463,533 Other comprehensive income (loss), net of taxes Item that will not be reclassified to net earnings: Remeasurements for post-employment benefit plans 2,320 (366) Item that may be reclassified subsequently to net earnings: Effects of foreign exchange 43,710 (88,388) Item that was reclassified to net earnings: Cumulative translation adjustment — (3,777) Other comprehensive income (loss) 46,030 (92,531) Total comprehensive income $ 361,279 $ 371,002 Comprehensive income attributable to: Lundin Mining Corporation shareholders $ 287,232 $ 334,493 Non-controlling interests 74,047 36,509 Total comprehensive income $ 361,279 $ 371,002 The accompanying notes are an integral part of these consolidated financial statements. - 3 - ===== SIDA 54 ===== LUNDIN MINING CORPORATION CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY For the years ended December 31, 2023 and 2022 (in thousands of US dollars, except for shares) Number of shares Share capital Contributed surplus Accumulated other comprehensive loss Retained earnings Non- controlling interests Total Balance, December 31, 2022 770,746,531 $ 4,555,125 $ 55,769 $ (342,287) $ 592,425 $ 564,089 $ 5,425,121 Distributions — — — — — (55,100) (55,100) Caserones acquisition (Note 3) — — — — — 873,767 873,767 Exercise of share-based awards 2,921,258 19,705 (8,329) — — — 11,376 Share-based compensation — — 7,761 — — — 7,761 Dividends declared (Note 14(g)) — — — — (206,084) — (206,084) Net earnings — — — — 241,562 73,687 315,249 Other comprehensive income — — — 45,670 — 360 46,030 Total comprehensive income — — — 45,670 241,562 74,047 361,279 Balance, December 31, 2023 773,667,789 $ 4,574,830 $ 55,201 $ (296,617) $ 627,903 $ 1,456,803 $ 6,418,120 Balance, December 31, 2021 734,987,154 $ 4,199,756 $ 58,166 $ (249,929) $ 437,160 $ 547,580 $ 4,992,733 Distributions — — — — — (20,000) (20,000) Josemaria acquisition 40,031,936 369,175 13,436 — — — 382,611 Exercise of share-based awards 6,488,941 49,813 (23,636) — — — 26,177 Share-based compensation — — 7,803 — — — 7,803 Dividends declared — — — — (275,795) — (275,795) Shares purchased (10,761,500) (63,619) — — 4,209 — (59,410) Net earnings — — — — 426,851 36,682 463,533 Other comprehensive loss — — — (92,358) — (173) (92,531) Total comprehensive (loss) income — — — (92,358) 426,851 36,509 371,002 Balance, December 31, 2022 770,746,531 $ 4,555,125 $ 55,769 $ (342,287) $ 592,425 $ 564,089 $ 5,425,121 The accompanying notes are an integral part of these consolidated financial statements. - 4 - ===== SIDA 55 ===== LUNDIN MINING CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ended December 31, 2023 and 2022 (in thousands of US dollars) Cash provided by (used in) 2023 2022 Operating activities Net earnings $ 315,249 $ 463,533 Items not involving cash and other adjustments Depreciation, depletion and amortization 653,596 554,750 Share-based compensation 7,301 7,803 Unrealized foreign exchange loss 1,224 21,164 Finance costs, net (Note 20) 102,699 64,185 Recognition of deferred revenue (Note 12) (70,918) (73,605) Deferred tax expense (recovery) 62,183 (15,350) Revaluation of marketable securities (Note 21) (1,846) (5,484) Ore stockpile inventory write-down (Note 6) — 62,546 Revaluation of foreign currency and diesel derivatives (Note 23) (27,780) (68,951) Reversal of fair value adjustment on acquired inventory (Note 3) 39,945 — Non-cash inventory write down 9,848 2,816 Other 16,482 (12,940) Reclamation payments (Note 13) (10,491) (15,903) Pension payments (1,359) (1,876) Changes in long-term inventory (71,916) 10,257 Changes in non-cash working capital items (Note 29) (7,605) (116,056) 1,016,612 876,889 Investing activities Investment in mineral properties, plant and equipment (1,013,117) (842,903) Acquisition of Caserones, net of cash acquired (Note 3) (648,569) — Acquisition of Josemaria, net of cash acquired — (126,381) Cash received from disposal of subsidiary (Note 21) 5,718 16,828 Payment of Chapada derivative liability (Note 24) (25,000) (25,000) Interest received 10,585 4,152 Josemaria bridge loan — (54,100) Distributions from associate, net — 18,000 Other (4,151) (3,963) (1,674,534) (1,013,367) Financing activities Proceeds from debt (Note 11) 2,490,597 282,938 Interest paid (61,307) (9,765) Principal payments of lease liabilities (47,320) (20,152) Principal repayments of debt (Note 11) (1,451,804) (113,824) Payment of Josemaria debentures — (47,000) Dividends paid to shareholders (206,540) (275,448) Shares purchased (Note 14) — (59,410) Proceeds from common shares issued 11,376 26,177 Distributions paid to non-controlling interests (55,100) (35,000) Net proceeds from settlement of foreign currency and diesel derivatives 48,686 4,784 Other (2) (4,926) 728,586 (251,626) Effect of foreign exchange on cash balances 6,742 (14,578) Increase (decrease) in cash and cash equivalents during the year 77,406 (402,682) Cash and cash equivalents, beginning of year 191,387 594,069 Cash and cash equivalents, end of year $ 268,793 $ 191,387 Supplemental cash flow information (Note 29) The accompanying notes are an integral part of these consolidated financial statements. - 5 - ===== SIDA 56 ===== 1. NATURE OF OPERATIONS Lundin Mining Corporation is a diversified Canadian base metals mining company primarily producing copper, zinc, gold, nickel and molybdenum. The Company owns 80% of the Candelaria and Ojos del Salado mining complex ("Candelaria") and 51% of the Caserones copper-molybdenum mine (“ Caserones”), each of which are located in Chile. The Company’s wholly-owned operating assets include the Chapada mine located in Brazil, the Eagle mine located in the United States of America (“USA”), the Neves-Corvo mine located in Portugal, and the Zinkgruvan mine located in Sweden. In addition, the Company owns the large scale copper-gold Josemaria project ("Josemaria Project"), located in Argentina. The Company’s common shares are listed on the Toronto Stock Exchange (“TSX”) in Canada and the Nasdaq Stockholm Exchange in Sweden. The Company is incorporated under the Canada Business Corporations Act. The Company is domiciled in Canada and its principal place of business is 885 West Georgia Street, Suite 2000, Vancouver, British Columbia, Canada. 2. BASIS OF PRESENTATION AND SUMMARY OF MATERIAL ACCOUNTING POLICIES (i) Basis of presentation and measurement The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards") and which the Canadian Accounting Standards Board has approved for incorporation into Part 1 of the CPA Canada Handbook – Accounting. The consolidated financial statements have been prepared on a historical cost basis except for certain financial instruments which have been measured at fair value. The Company's presentation currency is United States (“US”) dollars. Reference herein of $ or USD is to US dollars, C$ or CAD is to Canadian dollars, SEK is to Swedish krona, € refers to the Euro, CLP refers to the Chilean peso, BRL refers to the Brazilian real, and ARS refers to the Argentine peso. Balance sheet items are classified as current if receipt or payment is due within twelve months. Otherwise, they are presented as non-current. These consolidated financial statements were approved by the Board of Directors of the Company for issue on February 21, 2024. (ii) Material accounting policies The Company has consistently applied the accounting policies to all the years presented. The material accounting policies applied in these consolidated financial statements are set out below. (a) Basis of consolidation The financial statements consist of the consolidation of the financial statements of the Company and its subsidiaries. Subsidiaries are entities over which the Company has control, including the power to govern the financial and operating policies in order to obtain benefits from their activities. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Company controls another entity. Subsidiaries are fully consolidated from the date on which control is obtained by the Company and are de-consolidated from the date that control ceases. LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 6 - ===== SIDA 57 ===== Where necessary, adjustments are made to the results of the subsidiaries and associates to bring their accounting policies in line with those used by the Company. Intra-group transactions, balances, income and expenses are eliminated on consolidation. For non wholly-owned controlled subsidiaries, the net assets attributable to outside equity shareholders are presented as non-controlling interests in the equity section of the consolidated balance sheet. Net earnings for the period that are attributable to non-controlling interests are calculated based on the ownership of the minority shareholders in the subsidiary. (b) Translation of foreign currencies The functional currency of each entity within the Company is the currency of the primary economic environment in which it operates. The Company’s presentation currency is US dollars. Transactions denominated in currencies other than the functional currency are recorded using the exchange rates prevailing on the dates of the transactions. At each balance sheet date, monetary items denominated in foreign currencies are translated at the rates prevailing on the balance sheet date. Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary items measured at fair value in a foreign currency are translated at the rates prevailing on the date when the fair value was determined. Foreign currency translation differences on deferred foreign tax liabilities and assets are reported in deferred tax expense/recovery in the consolidated statement of earnings. Exchange differences arising on the settlement of monetary items, and on the translation of monetary items, are recognized in the consolidated statement of earnings in the period in which they arise. Exchange differences arising on the translation of non-monetary items carried at fair value are included in the consolidated statement of earnings. However, exchange differences arising on the translation of certain non-monetary items are recognized as a separate component of equity. For the purpose of presenting the consolidated financial statements, the assets and liabilities of the Company’s foreign operations are translated into US dollars, which is the presentation currency of the group, at the rate of exchange prevailing at the end of the reporting period. Income and expenses are translated at the average exchange rates for the period where these approximate the rates on the dates of transactions. On disposal of a foreign operation, the historical, cumulative amount of exchange differences recognized as a separate component of equity is reclassified and recognized in the consolidated statement of earnings. (c) Cash and cash equivalents Cash and cash equivalents comprise cash on deposit with banks and highly liquid short-term interest- bearing investments with a term to maturity at the date of purchase of 90 days or less which are subject to an insignificant risk of change in value. (d) Restricted funds Restricted funds include reclamation funds and cash on deposit that have been pledged for reclamation and closure activities which are not available for immediate disbursement. (e) Inventories Ore and concentrate stockpiles and cathode inventory are valued at the lower of production cost and net realizable value (“NRV”). Production costs include costs of materials and labour related directly to mining and processing activities, including production phase stripping costs, depreciation and amortization of LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 7 - ===== SIDA 58 ===== mineral property, plant and equipment directly involved in the related mining and production process, amortization of any stripping costs previously capitalized and directly attributable overhead costs. Dump leach pad inventory represents ore that has been mined and placed on leach pads where a solution is applied to the surface of the heap to dissolve the copper and by-products. The resulting solution is further processed in a plant to recover the copper. The cost of dump leach inventory is derived from current mining and leaching costs and is removed at the weighted average cost per recoverable pound ("lb") of copper on the leach pads as lbs of copper are recovered. Estimates of recoverable copper on the dump leach are calculated based on the quantities of ore placed on the leach pads (measured tonnes added to the leach pads), the grade of ore placed on the leach pads (based on assay data), and an estimated recovery percentage (based on estimated recovery assumptions from the block model). The nature of the leaching process inherently limits the ability to precisely monitor inventory levels. As a result, estimates are refined based on actual results and engineering studies over time. The final recovery of copper from the dump leach will not be known until the leaching process is concluded at the end of the mine life. Ore on the dump leach that is not expected to be recovered within the next twelve months is classified as non-current. Materials and supplies inventories are valued at the lower of average cost less allowances for obsolescence and NRV. If the carrying value of inventories exceeds NRV, a write-down is recognized. The write-down may be reversed in a subsequent period if the circumstances which caused the write-down no longer exist. (f) Mineral properties Mineral properties are carried at cost, less accumulated depletion and any accumulated impairment charges. Expenditures of mineral properties include: i. Acquisition costs which consist of payments for property rights and leases, including the estimated fair value of exploration properties acquired as part of a business combination or the acquisition of a group of assets. ii. Exploration, evaluation and project investigation costs incurred on an area of interest once a determination has been made that a property has economically recoverable Mineral Resources and Mineral Reserves (“R&R”) and there is a reasonable expectation that costs can be recovered by future exploitation or sale of the property. Exploration, evaluation and project investigation expenditures made prior to a determination that a property has economically recoverable R&R are expensed as incurred. iii. Deferred stripping costs which represent the costs incurred to remove overburden and other waste materials to access ore in an open pit mine. Stripping costs incurred prior to the production phase of the mine are capitalized and included as part of the carrying value of the mineral property. During the production phase, stripping costs which provide probable future economic benefits, identifiable improved access to the ore body and which can be measured reliably are capitalized to mineral properties. Capitalized stripping costs are amortized using a unit-of-production basis over the Proven and Probable Mineral Reserve to which they relate. iv. Development costs incurred in an area of interest, once management has determined the technical feasibility and commercial viability of a project, the project presents an appropriate rate of return on investment, and the Board of Directors has demonstrated commitment to advance the project. When additional development expenditures are made on a property after commencement of production, the expenditure is capitalized as mineral property when it is probable that additional economic benefit will be derived from future operations. Development costs are amortized using a unit-of-production basis over the Proven and Probable Mineral Reserve to which they relate. LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 8 - ===== SIDA 59 ===== v. Interest and financing costs on debt or other liabilities, including interest expense on deferred revenue, that are directly attributed to the acquisition, construction and development of a qualifying asset. All other borrowing costs are expensed as incurred. vi. Easement costs incurred to support access to the Company's operating sites and the Josemaria Project. Incidental pre-production expenditures, if any, are recognized in the consolidated statement of earnings. (g) Plant and equipment Plant and equipment are carried at cost less accumulated depreciation and any accumulated impairment charges. For production plant and equipment, depreciation is recorded on a units-of-production basis. Depreciation on all other plant and equipment is recorded on a straight-line basis over the estimated useful life of the asset or over the estimated remaining life of the mine, if shorter. Residual values and useful lives are reviewed annually. Gains and losses on disposals are calculated as proceeds received less the carrying amount and are recognized in the consolidated statement of earnings. Useful lives are as follows: Number of years Buildings 8-20 Plant and machinery 3-20 Equipment 3-8 (h) Intangible assets Separately acquired intangible assets are initially measured at cost which comprises of its purchase price and any directly attributable costs of preparing the asset for its intended use. The Company depreciates intangible assets with finite useful lives on a straight-line basis over the estimated useful life of the asset. For intangibles with an indefinite useful life, no amortization is calculated. (i) Impairment and impairment reversals At the end of each reporting period, the Company assesses whether there is an indication that an asset or group of assets within a cash generating unit (“CGU”) may be impaired. When impairment indicators exist, the Company estimates the recoverable amount of the asset or CGU and compares it against the asset or CGU’s carrying amount. The recoverable amount is the higher of the fair value less cost of disposal (“FVLCD”) and the asset or CGU’s value in use (“VIU”). If the carrying value exceeds the recoverable amount, an impairment loss is recorded in the consolidated statement of earnings during the period. If either FVLCD or VIU exceeds the asset or CGU’s carrying amount, the asset or CGU is not impaired, and the Company does not estimate the other amount. In assessing VIU, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the CGU for which the estimates of future cash flows have not been adjusted. The cash flows are based on best estimates of expected future cash flows from the continued use of the asset or the CGU and its eventual disposal. FVLCD is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, which is best evidenced if obtained from an active market or binding sale agreement. Where neither exists, the fair value is based partly on a discounted cash flow projections model. Costs of disposal, other than those that have been recognized as liabilities, are deducted in measuring FVLCD. LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 9 - ===== SIDA 60 ===== Reversals of impairment are assessed at each reporting period where there is an indication that an impairment loss recognized previously may no longer exist or has decreased. If an impairment reversal indicator exists, the recoverable amount is calculated. If the recoverable amount exceeds the carrying amount, the carrying value of the CGU is increased to the recoverable amount net of depreciation. The increased carrying amount cannot exceed the carrying amount that would have been determined had no impairment loss been recognized for the CGU in prior years. A reversal of an impairment loss is recognized as a gain in the consolidated statement of earnings in the period it is determined. (j) Business combinations and goodwill Acquisitions of businesses are accounted for using the purchase method of accounting whereby all identifiable assets and liabilities are recorded at their fair values as at the date of acquisition. Any excess purchase price over the aggregate fair value of net assets is recorded as goodwill. Goodwill is identified and allocated to CGUs, or groups of CGUs, that are expected to benefit from the synergies of the acquisition. Goodwill is not amortized. Any excess of the aggregate fair value of net assets over the purchase price is recognized in the consolidated statement of earnings. A CGU to which goodwill has been allocated is tested for impairment at least annually or when events or changes in circumstances indicate that the related carrying amount may not be recoverable. For goodwill arising on an acquisition in a financial year, the CGU to which the goodwill has been allocated is tested for impairment before the end of that financial year. When the recoverable amount of the CGU is less than the carrying amount of that CGU, the impairment loss is allocated to reduce the carrying amount of any goodwill allocated to that CGU first, and then to the other assets of that CGU on a pro-rata basis of the carrying amount of each asset in the CGU. Any impairment loss for goodwill is recognized directly in the consolidated statement of earnings. An impairment loss for goodwill is not reversed in subsequent periods. On disposal of a subsidiary, the attributable amount of goodwill is included in the determination of the gain or loss on disposal. (k) Leases At inception of a contract, the Company assesses whether the contract is, or contains a lease. A contract is, or contains a lease, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company has elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less, and leases of low-value assets. For these leases, the Company recognizes the lease payments as an expense in the consolidated statement of earnings on a straight-line basis over the term of the lease. The Company recognizes a lease liability and a right-of-use asset at the lease commencement date. The lease liability is initially measured as the present value of future lease payments discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, each operation’s applicable incremental borrowing rate. The incremental borrowing rate is the rate which the operation would have to pay to borrow, over a similar term and with a similar security, the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment. Lease payments included in the measurement of the lease liability comprise the following: - fixed payments, including in-substance fixed payments, less any lease incentives receivable; - variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; - amounts expected to be payable by the Company under residual value guarantees; LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 10 - ===== SIDA 61 ===== - the exercise price of a purchase option if the Company is reasonably certain to exercise that option; and - payments of penalties for terminating the lease, if the Company expects to exercise an option to terminate the lease. The lease liability is subsequently measured by: - increasing the carrying amount to reflect interest on the lease liability; - reducing the carrying amount to reflect lease payments made; and - remeasuring the carrying amount to reflect any reassessment or lease modifications. Variable lease payments that do not depend on an index or rate are not included in the measurement of the lease liability. The lease liability is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option. Each lease payment is allocated between the lease liability and finance cost. The finance cost is recorded as an expense in the consolidated statement of earnings over the lease period to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is initially measured at cost, which comprises the following: - the amount of the initial measurement of the lease liability; - any lease payments made at or before the commencement date, less any lease incentives received; - any initial direct costs incurred by the Company; and - an estimate of costs to be incurred by the Company in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease, unless those costs are incurred to produce inventories. The right-of-use asset is subsequently measured at cost, less any accumulated depreciation and any accumulated impairment losses, and adjusted for any remeasurement of the lease liability. It is depreciated in accordance with the Company’s accounting policy for plant and equipment, from the commencement date to the earlier of the end of its useful life or the end of the lease term. On the consolidated balance sheet, right-of-use assets and lease liabilities are reported in mineral properties, plant and equipment and debt and lease liabilities, respectively. (l) Provision for pension obligations The Company’s Zinkgruvan mine has an unfunded defined benefit pension plan based on employee pensionable remuneration and length of service. The cost of the defined benefit pension plan is determined annually by independent actuaries. The actuarial valuation is based on the projected benefit method pro- rated for service which incorporates management’s best estimate of future salary levels, retirement ages of employees and other actuarial factors. Actuarial gains and losses are recorded in other comprehensive income. Payments to defined contribution plans are expensed when employees render service entitling them to the contribution. (m) Reclamation and other closure provisions The Company incurs reclamation and other closure costs related to its mining properties such as facility decommissioning and dismantling, end of mine life severance, site restoration and ongoing environmental LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 11 - ===== SIDA 62 ===== monitoring. These costs are a normal consequence of mining and are dependent on the requirements of the Company’s legal and constructive obligations, as well as any other commitments made to stakeholders. The majority of these expenditures will be incurred at the end of the life of mine and are dependent upon a number of factors such as the life and nature of the asset, the operating license conditions and the environment in which the mine operates. The future obligations for mine closure activities are estimated by the Company using mine closure plans or other similar studies which outline the activities to be undertaken to meet regulatory and internal requirements. Since the obligations are dependent on the laws and regulations of the countries in which the mines operate, they are regularly evaluated by management and external experts. Costs included in the obligations encompass all reclamation and other closure activities expected to occur progressively over the life of the operation at the time of closure and post-closure in connection with disturbances as at the reporting date. Obligations may change as a result of amendments in laws and regulations relating to environmental protection and/or other legislation affecting resource companies. Included in the estimated obligations are a number of significant assumptions made by management in determining closure provisions. Accordingly, closure provisions are more uncertain the further into the future mine closure activities are expected to be carried out. The Company records the present value of its reclamation and other closure provisions as a liability with a corresponding increase in the carrying value of the related asset. The provision is discounted to its net present value using a country specific, current market, pre-tax discount rate. The unwinding of the discount, referred to as an accretion expense, is included in finance costs in the consolidated statement of earnings and results in an increase in the carrying amount of the liability. Reclamation obligations settled in the year are offset against the corresponding liability. Unplanned reclamation costs are reported as either part of the cost of inventory or recognized as a cost in the consolidated statement of earnings, if they relate to either production activities or a closed site. The capitalized cost of the reclamation and other closure activities is recognized in the mineral property and plant & equipment and depreciated on a unit-of-production basis over the expected mine life of the operation to which it relates. Depreciation costs are included in the consolidated statement of earnings as part of cost of goods sold. Changes in obligations resulting from revisions to the timing or amount of expenditures, discount rate or foreign exchange rate are recognized as an increase or decrease in the reclamation and other closure provision liability, and a corresponding change in the carrying amount of the related assets. (n) Revenue recognition Revenue from contracts with customers is recognized when a customer obtains control of the promised asset and the Company satisfies its performance obligation. Revenue is allocated to each performance obligation. The Company considers the terms of the contract in determining the transaction price. The transaction price is based upon the amount the entity expects to be entitled to in exchange for the transferring of promised goods. The Company earns revenue from contracts with customers related to its concentrate and copper cathode sales, and its copper, gold and silver streaming arrangements. The Company satisfies its performance obligations for its concentrate and copper cathode sales per specified contract terms which are generally upon shipment or delivery. Revenue from concentrate and copper cathode sales is recorded based upon forward market prices of the expected final sales price date. The Company typically receives payment shortly after vessel arrival at its destination port. Deferred revenue arises from up-front payments received by the Company or obligations acquired in consideration for future commitments as specified in its various streaming arrangements. The accounting for streaming arrangements is dependent on the facts and terms of each of the arrangements. Revenue LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 12 - ===== SIDA 63 ===== from streaming arrangements is recognized when the customer obtains control of the copper, gold and/or silver metal and the Company has satisfied its performance obligations. The Company identified significant financing components related to its streaming arrangements resulting from a difference in the timing of the up-front consideration received and delivery of the promised goods. Interest expense on deferred revenue is recognized in finance costs, or in mineral properties, plant and equipment if directly attributable to the acquisition, construction and development of a qualifying asset. The interest rate is determined based on the rate implicit in each streaming agreement at the date of inception or acquisition. The initial consideration received from the streaming arrangements is considered variable, subject to changes in the total copper, gold and silver volumes to be delivered. Changes to variable consideration are reflected in revenue in the consolidated statement of earnings. (o) Share-based compensation The Company grants share-based awards in the form of share options and share units to certain employees in exchange for the provision of services. The share options and share units are equity-settled awards. The Company determines the fair value of the awards on the date of grant. This fair value is charged to the consolidated statement of earnings using a graded vesting attribution method over the vesting period of the awards, with a corresponding credit to contributed surplus. When the share options or share units are exercised, the applicable amounts of contributed surplus are transferred to share capital. At the end of the reporting period, the Company updates its estimate of the number of awards that are expected to vest and adjusts the total expense to be recognized over the vesting period. The Company also grants share-based awards to non-employee Directors in the form of deferred share units (“DSUs”) in exchange for the provision of services. DSUs are liability awards settled in cash and measured at the quoted market price at the grant date. The corresponding liability is adjusted for changes in fair value at each subsequent reporting date until the awards are settled. The fair value of the DSUs are expensed at the grant date and subsequent changes to fair value are charged to the consolidated statement of earnings. (p) Current and deferred income taxes Income tax expense represents the sum of current and deferred tax. Current taxes payable is based on taxable earnings for the year. Taxable earnings may differ from earnings before income tax as reported in the consolidated statement of earnings because it may exclude items of income or expense that are taxable or deductible in other years and it may further exclude items of income or expense that are never taxable or deductible. The Company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted at the balance sheet date. Income tax assets and liabilities are offset when there is a legally enforceable right to offset the assets and liabilities and when they relate to income taxes levied by the same tax authority on either the same taxable entity or different taxable entities where there is an intention to settle the balance on a net basis. Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable earnings. Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which deductible temporary differences or tax loss carryforwards can be utilized. Such assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable earnings nor the accounting earnings. Deferred tax liabilities are recognized for taxable temporary differences arising on investments in subsidiaries and investments in associates, except where the Company is able to control the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. The carrying amount of deferred tax assets is reviewed at each balance sheet date LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 13 - ===== SIDA 64 ===== and reduced to the extent that it is no longer probable that sufficient taxable earnings will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset realized, based on tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax is charged or credited to earnings, except when it relates to items charged or credited directly to equity, in which case the deferred tax is reflected in equity. (q) Earnings per share Basic earnings per share is calculated using the weighted average number of common shares outstanding during each reporting period. Diluted earnings per share is calculated assuming the proceeds from the exercise of “in-the-money” share-based arrangements are used to purchase common shares at the average market price during the period. (r) Accounting for debt and equity investments As part of the capital funding process for ongoing activities at the Josemaria Project, the Company purchases debt and equity instruments via a third-party investment broker. The instruments are held for a pre- determined period and then sold. The Company only purchases equity instruments with high trading volumes and low volatilities. The instruments are designated as held-for-trading, and as such all changes in the fair value of the underlying instruments are recognized through the consolidated statement of earnings. Upon receipt of the transferred equity instruments, or in the case of bonds the sale, by the local investment broker, the Company realizes an immediate foreign exchange impact. This foreign exchange impact is incurred directly as a result of holding debt and equity instruments with the intention of trading, and as such the foreign exchange impact is also recognized through the consolidated statement of earnings in Other income. (s) Financial instruments Financial instruments are recognized on the consolidated balance sheet on the trade date, the date on which the Company becomes a party to the contractual provisions of the financial instrument. The Company classifies its financial instruments in the following categories: Financial Assets at Amortized Cost Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. The Company intends to hold these receivables until cash flows are collected. Receivables are recognized initially at fair value, net of any transaction costs incurred and subsequently measured at amortized cost using the effective interest method. The Company recognizes a loss allowance for expected credit losses on a financial asset that is measured at amortized cost. Financial Assets at Fair Value through Profit or Loss (“FVTPL”) Financial assets measured at FVTPL are assets which do not qualify as financial assets at amortized cost or those not designated in hedge relationships. Provisionally priced trade receivables are measured at FVTPL as some or all of the cash flows are dependent on commodity prices. These receivables are initially measured at their transaction price. Subsequent changes to provisionally priced trade receivables are recorded in the consolidated statement of earnings as revenue from other sources. LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 14 - ===== SIDA 65 ===== Marketable securities, equity investments, and derivative assets not designated in hedge relationships are classified as FVTPL. These financial assets are initially recognized at their fair value with changes to fair values recognized in the consolidated statement of earnings. Financial Liabilities at Amortized Cost Financial liabilities are measured at amortized cost using the effective interest method, unless they are required to be measured at FVTPL, or the Company has opted to measure them at FVTPL. Long-term debt is recognized initially at fair value, net of any transaction costs incurred, and subsequently at amortized cost using the effective interest method. Financial Liabilities at FVTPL Financial liabilities at FVTPL are liabilities which include embedded derivatives and cannot be classified as amortized cost or derivative liabilities not designated in hedge relationships. Financial liabilities at FVTPL are initially recognized at fair value with changes to fair values recognized in the consolidated statement of earnings. The Company derecognizes financial assets only when the contractual rights to cash flows from the financial assets expire, or when it transfers the financial assets and substantially all of the associated risks and rewards of ownership. Gains and losses on derecognition are generally recognized in the consolidated statement of earnings. The Company derecognizes financial liabilities only when its obligations under the financial liabilities are discharged, cancelled or expelled. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable, including any non-cash assets transferred or liabilities assumed, is recognized in the consolidated statement of earnings. The Company may enter into derivative instruments to mitigate exposures to commodity price and currency exchange rate fluctuations, among other exposures. Unless the derivative instruments qualify for hedge accounting, and management undertakes appropriate steps to designate them as such, they are classified as financial assets or liabilities at FVTPL and recorded at their fair value with realized and unrealized gains or losses arising from changes in the fair value recorded in the consolidated statement of earnings in the period they occur. Fair values for derivative instruments are determined using valuation techniques. The valuations use assumptions based on prevailing market conditions on the reporting date. (iii) New standards and interpretations adopted January 1, 2023 Amendments to IAS 1 and IFRS Practice Statement 2 - Disclosure of Accounting Policies In February 2021, the IASB issued amendments to IAS 1, Presentation of Financial Statements, and IFRS Practice Statement 2. The amendments to IAS 1 require an entity to disclose its material accounting policies instead of its significant accounting policies. The amendments include clarification on how an entity can determine material accounting policies by applying the 'four-step materiality process' described in IFRS Practice Statement 2. The amendments to IAS 1 are effective for annual periods beginning on or after January 1, 2023. The Company adopted the amendments effective January 1, 2023, with no material impact to the consolidated financial statements for 2023. Amendments to IAS 12 - Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction In May 2021, the IASB issued amendments to IAS 12, Income Taxes. The amendments to IAS 12 narrow the scope of the initial recognition exemption so that it can no longer be applied to transactions which give rise to equal amounts of taxable and deductible temporary differences. The Company is to recognize a deferred tax asset and deferred tax liability for temporary differences arising on initial recognition for certain transactions, including leases and reclamation provisions. The amendments to IAS 12 are effective for annual reporting periods LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 15 - ===== SIDA 66 ===== beginning on or after January 1, 2023, with early adoption permitted. The Company adopted the amendments effective January 1, 2023, with no material impact to the consolidated financial statements for 2023. Amendments to IAS 12 - International Tax Reform - Pillar Two Model Rules In May 2023, the IASB issued amendments to IAS 12, Income Taxes. The amendments provide an exception to the requirements regarding the recognition of deferred tax assets and liabilities related to the Pillar Two global minimum tax rules. The Company has applied the exception to recognizing and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes whilst it evaluates the impact of these income taxes on its consolidated financial statements. Additionally, the amendments to IAS 12 require disclosure of the Company's current tax expense or income related to Pillar Two income taxes and disclosure of known or reasonably estimable information regarding the Company's exposure to Pillar Two income taxes. The disclosure amendments to IAS 12 are effective for annual reporting periods beginning on or after January 1, 2023. The Company adopted the disclosure amendments effective January 1, 2023, with no material impact to the consolidated financial statements for 2023. (iv) Critical accounting estimates and judgements in applying the entity’s accounting policies The preparation of consolidated financial statements in accordance with IFRS requires the use of certain critical accounting estimates and judgements. These estimates and judgements are based on management’s best knowledge of the relevant facts and circumstances taking into account previous experience, but actual results may differ materially from the amounts included in the financial statements. Areas where critical accounting estimates and judgements have the most significant effect on the amounts recognized in the consolidated financial statements include: Depreciation, depletion and amortization of mineral properties, plant and equipment - Mineral properties, plant and equipment comprise a large component of the Company’s assets and as such, the depreciation, depletion and amortization of these assets have a significant effect on the Company’s financial statements. Upon commencement of commercial production, the Company depletes mineral property over the life of the mine based on the depletion of the mine’s Proven and Probable Mineral Reserves. In the case of mining equipment or other assets, if the useful life of the asset is shorter than the life of the mine, the asset is amortized over its expected useful life. Proven and Probable Mineral Reserves are determined based on a professional evaluation using accepted international standards for the estimation of Mineral Reserves. The assessment involves geological and geophysical studies, economic data and the reliance on a number of assumptions. The estimates of the Mineral Reserves may change based on additional knowledge gained subsequent to the initial assessment. This may include additional data available from continuing exploration, results from the reconciliation of actual mining production data against the original Mineral Reserve estimates, or the impact of economic factors such as changes in the price of commodities or the cost of components of production. A change in the original estimate of Mineral Reserves would result in a change in the rate of depreciation, depletion and amortization of the related mineral assets. The effect of a change in the estimates of Mineral Reserves would have a relatively greater effect on the amortization of the current mining operations at Eagle because of the relatively short mine life of this operation. A short mine life results in a high rate of amortization and depreciation, and mineral assets may exist at these sites that have a useful life in excess of the revised life of the related mine. Revenue from Contracts with Customers – To determine the transaction price for streaming agreements, the Company made estimates with respect to future production of the life of mine and R&R quantities. These estimates are subject to variability and may have an impact on the timing and amount of revenue recognized and may result in cumulative adjustments. LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 16 - ===== SIDA 67 ===== The Company exercised judgment in the identification of performance obligations under its contracts and the allocation of the transaction price thereto. Specifically, the Company considers the performance obligations to be the delivery of gold and silver in concentrate to offtakers and copper to streamers. Valuation of long-term inventory - The Company carries its long-term inventory at the lower of production cost and NRV. If the carrying value exceeds the net realizable amount, a write-down is required. The write-down may be reversed in a subsequent period if the circumstances which caused it no longer exist. The Company reviews NRV at least annually. In particular, for the NRV of long-term inventory, the Company makes significant estimates in its use of a discounted NRV model related to future production plans, forecasted commodity prices, foreign exchange rates, R&R quantities, future capital and production costs to complete, estimates of recoverable copper in leach pads, and the discount rate. These estimates are subject to various risks and uncertainties and may have an effect on the NRV estimate and the carrying value of the long-term inventory. Valuation of mineral properties - The Company carries its mineral properties at cost less accumulated depletion and any accumulated provision for impairment. The Company expenses exploration costs which are related to specific projects until technical feasibility and commercial viability of extracting a mineral resource are demonstrable. The costs of each property and related capitalized development expenditures are depleted over the economic life of the property on a unit-of-production basis. Costs are charged to the consolidated statement of earnings when a property is abandoned or when there is a recognized impairment in value. The Company undertakes a review of the carrying values of mineral properties and related expenditures whenever events or changes in circumstances indicate that their carrying values may exceed their estimated net recoverable amounts determined by reference to estimated future operating results and discounted net cash flows. An impairment loss is recognized when the carrying value of those assets is not recoverable. Where a previous impairment has been recorded, the Company analyzes any reverse impairment indicators. Impairment reversals are recognized in subsequent periods when there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. In undertaking this review, management of the Company is required to make significant estimates of, amongst other things, future production and sale volumes, metal prices, foreign exchange rates, R&R quantities, future capital and production costs and reclamation costs to the end of the mine’s life. These estimates are subject to various risks and uncertainties which may ultimately have an effect on the expected recoverability of the carrying values of the mineral properties and related expenditures. The Company, from time to time, acquires exploration and development properties. When a number of properties are acquired in a portfolio, the Company must make a determination of the fair value attributable to each of the properties within the total portfolio. When the Company conducts further exploration on acquired properties, it may determine that certain of the properties do not support the fair values applied at the time of acquisition. If such a determination is made, the property is written down which could have a material effect on the consolidated balance sheet and consolidated statement of earnings. Goodwill - The amount by which the purchase price of a business acquisition exceeds the fair value of identifiable assets and liabilities acquired is recorded as goodwill. Goodwill is allocated to the CGUs acquired based on the assessment of which CGU would be expected to benefit from the synergies of the acquisition. Estimates of recoverable value may be impacted by changes in future metal prices, foreign exchange rates, production based on estimated quantities of R&R, production and capital expenditures, pricing of in-situ mineral resources implied by the market value of selected comparable transactions involving the sale of similar companies and mineral properties, discount rates, and other factors that may be different from those used in determining fair value. Changes in estimates could have a material impact on the carrying value of the goodwill. Management's estimates of production based on quantities of R&R are based on information compiled by qualified persons (management's experts). Reclamation and other closure provisions - The Company incurs reclamation and other closure costs related to its mining properties. The future obligations for mine closure activities are estimated by the Company using mine closure plans or other similar studies which outline the activities to be undertaken to meet regulatory and LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 17 - ===== SIDA 68 ===== internal requirements. Since the obligations are dependent on the laws and regulations of the countries in which the mines operate, they are regularly reviewed by management and external experts, and could change as a result of amendments to the laws and regulations. Included in the estimated obligations are a number of significant assumptions made by management in determining closure provisions. Accordingly, closure provisions are more uncertain the further into the future the mine closure activities are to be carried out. The Company’s policy for recording reclamation and other closure provisions is to establish provisions for future mine closure costs based on the present value of the future cash flows required to satisfy the obligations. This provision is updated as the estimate for future closure costs change. The amount of the present value of the provision is added to the cost of the related mineral property and plant & equipment and depreciated over the life of the mine. The provision is accreted to its future value over the life of mine through a charge to finance costs. Income taxes - Deferred tax assets and liabilities are determined based on differences between the financial statement carrying values of assets and liabilities and their respective income tax bases (“temporary differences”) and losses carried forward. The determination of the ability of the Company to utilize tax loss carry-forwards and deductible temporary differences to offset deferred tax liabilities requires management to exercise judgment and make certain assumptions about the future performance of the Company. Management is required to assess whether it is “probable” that the Company will benefit from these prior losses and other deductible temporary differences. Changes in economic conditions, metal prices and other factors could result in revisions to the estimates of the benefits to be realized or the timing of utilization of the losses. Assessment of impairment and reverse impairment indicators - Management applies significant judgement in assessing whether indicators of impairment or reversal of impairment exist for a CGU which would necessitate impairment testing. Internal and external factors used by management to determine whether indicators exist include, but are not limited to, significant changes in the use of the asset, commodity prices, foreign exchange rates, the Company's market capitalization, capital and production forecasts, R&R quantities, and discount rates. Contingent liabilities - Contingent liabilities are possible obligations that arise from past events which will be confirmed by the occurrence or non-occurrence of future events. These contingencies are not recognized in the consolidated financial statements when the obligation is not probable or if the obligation cannot be measured reliably. The Company exercises significant judgment when determining the probability of the future outcome and with regard to any required disclosure of contingencies, and measuring the liability is a significant estimate. Caserones acquisition - The Company's acquisition of fifty-one percent (51%) of the issued and outstanding equity of SCM Minera Lumina Copper Chile ("Lumina Copper") (Note 3), which owns Caserones, requires each identified asset and liability to be measured at its acquisition date fair value. The excess, if any, of the fair value consideration over the fair value of the identifiable net assets acquired and liabilities assumed is recognized in goodwill. The determination of fair values required management to make assumptions and estimates about future events and judgements such as future metal prices, production based on estimated quantities of R&R, production and capital expenditures, pricing of in-situ mineral resources implied by the market value of selected comparable transactions involving the sale of similar companies and mineral properties, and discount rates. Changes in these assumptions or estimates could affect the fair values assigned to assets acquired, liabilities assumed, and goodwill in the purchase price allocation. Management's estimates of production based on quantities of R&R are based on information compiled by qualified persons (management's experts). LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 18 - ===== SIDA 69 ===== 3. BUSINESS COMBINATION On July 13, 2023, the Company completed the acquisition of fifty-one percent (51%) of the issued and outstanding equity of Lumina Copper, which owns the Caserones copper-molybdenum mine located in Chile, from JX Metals Corporation and certain of its subsidiaries ("Caserones Acquisition"). The total cash consideration paid after adjustments was $796.6 million, which was funded from the Company's revolving credit facility. Remaining deferred cash consideration of $150.0 million will be payable in installments as follows: $50.0 million to be paid in five installments of $10.0 million on the anniversary of the transaction closing date in each of 2024, 2025, 2026, 2027, and 2028; and $100 million shall be paid on the anniversary of the closing date in 2029. The Company also has the right to acquire up to an additional 19% interest in Lumina Copper for $350.0 million over a five-year period commencing on the first anniversary of the date of closing ("Caserones Purchase Option"). The purchase price is as follows: Cash consideration $ 796,580 Fair value of additional deferred consideration 112,851 Total consideration for 51% of Caserones $ 909,431 The fair value of the deferred consideration was calculated by discounting the required future payments using a credit adjusted risk free rate that appropriately reflects the credit risk associated with the future payments. The current portion of this liability has been recorded in Trade and Other Payables and the non-current portion has been recorded in Deferred consideration and other long-term liabilities. Final fair values of assets acquired and liabilities assumed: Cash and cash equivalents $ 148,011 Trade and other receivables 253,769 Inventories 324,718 Restricted funds 4,196 Long-term inventory 84,705 Other non-current assets (a) 46,994 Mineral properties, plant and equipment 1,337,542 Deferred tax assets (b) 189,195 Total assets $ 2,389,130 Trade and other payables $ 253,786 Lease liability 257,655 Reclamation and other closure provisions 92,440 Other 2,051 Total liabilities $ 605,932 Total assets acquired and liabilities assumed, net $ 1,783,198 Less: Non-controlling interests $ 873,767 Lundin Mining Corporation's 51% share of Caserones $ 909,431 LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 19 - ===== SIDA 70 ===== a. The Company assigned a fair value of $47.0 million at acquisition to its right to acquire up to an additional 19% interest in Lumina Copper for $350.0 million. The fair value of the Caserones purchase option was determined using the arithmetic average approximation methodology which assumes a risk-free interest rate of 3.93%, expected copper price volatility of 22.8%, and a term of 5 years. b. The Company acquired approximately $4.3 billion in total tax loss carryforward balances associated with Caserones. The Company has recognized deferred tax assets to the extent that the Company expects to realize sufficient taxable profit in the foreseeable future. Management used a discounted cash flow model (net present value of expected future cash flows) and market based approach to determine the fair value of the mine assets. Management used significant assumptions in the model such as future metal prices, production based on estimated quantities of R&R, production and capital expenditures, pricing of in-situ mineral resources implied by the market value of selected comparable transactions involving the sale of similar companies and mineral properties, and discount rate. Average copper price assumptions between 2023 and 2027 used in the valuation was $3.80 per pound of copper with $3.58 per pound being used as the long-term assumption. In determining the fair value of plant and equipment, management primarily used the depreciated replacement cost approach and used the sales comparison approach for certain mobile plant items where secondary market evidence was available. Short-term inventory was valued based on assumed market price less cost to complete and a reasonable profit margin. Long-term inventory was valued on the same basis, but also considers a multi-year recovery period for the estimated payable metal contained in the dump leach. The Company used the proportionate method in measuring non-controlling interests at the acquisition date. No goodwill has been recognized on the transaction. Acquisition related costs of $5.2 million are recorded in the consolidated statement of earnings as a business development cost (Note 19). Revenue and net earnings contributed by Caserones since acquisition and included in the consolidated statement of earnings were $601.8 million and $67.1 million, respectively. For the year ended December 31, 2023, $ 39.9 million of fair value adjustments to metal inventories acquired were included in Cost of goods sold (production costs). If Caserones had been consolidated from January 1, 2023, the consolidated statement of earnings for the year ended December 31, 2023 would show pro forma consolidated revenue of approximately $4,168.5 million and consolidated net earnings of approximately $438.1 million. LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 20 - ===== SIDA 71 ===== 4. CASH AND CASH EQUIVALENTS Cash and cash equivalents are comprised of the following: December 31, 2023 December 31, 2022 Cash $ 197,537 $ 158,153 Short-term deposits 71,256 33,234 $ 268,793 $ 191,387 5. TRADE AND OTHER RECEIVABLES Trade and other receivables are comprised of the following: December 31, 2023 December 31, 2022 Trade receivables $ 643,722 $ 430,734 Value added tax 80,088 65,028 Prepaid expenses 48,901 53,767 Other receivables 56,160 26,649 $ 828,871 $ 576,178 The Company does not have any significant balances that are past due nor any significant expected credit losses. The Company's credit risk is discussed in Note 27. The fair value of trade and other receivables is disclosed in Note 23. The carrying amounts of trade and other receivables are mainly denominated as follows: $678.7 million, CLP 78.0 billion, €22.9 million, C$22.4 million, SEK 114.1 million, BRL 34.5 million, and ARS 341.2 million as at December 31, 2023 (2022 - $435.1 million, CLP 65.7 billion, €23.1 million, C$15.6 million, SEK 69.0 million, BRL 102.8 million, and ARS 367.7 million). LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 21 - ===== SIDA 72 ===== 6. INVENTORIES Inventories are comprised of the following: December 31, 2023 December 31, 2022 Materials and supplies $ 313,966 $ 184,720 Ore stockpiles and dump leach 207,602 69,781 Finished goods - concentrate stockpiles 72,515 42,209 Finished goods - copper cathode 5,324 — $ 599,407 $ 296,710 Long-term Inventories are comprised of the following: December 31, 2023 December 31, 2022 Ore stockpiles at Candelaria $ 427,075 $ 394,240 Ore stockpiles at Chapada 270,570 247,637 Dump leach at Caserones 99,952 — $ 797,597 $ 641,877 The Company recognized a net realizable value write-down in the Chapada long-term ore stockpiles of $nil (December 31, 2022 - $66.8 million), with $nil of the write-down included in depreciation, depletion and amortization (December 31, 2022 - $4.2 million). 7. OTHER NON-CURRENT ASSETS Other non-current assets are comprised of the following: December 31, 2023 December 31, 2022 Caserones purchase option (Note 3) $ 44,438 $ — Marketable securities 14,268 12,075 Other 8,384 7,960 $ 67,090 $ 20,035 LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 22 - ===== SIDA 73 ===== 8. MINERAL PROPERTIES, PLANT AND EQUIPMENT Mineral properties, plant and equipment are comprised of the following: Cost Mineral properties Plant and equipment Assets under construction1 Development project2 Software intangible assets Total As at December 31, 2021 $ 5,279,143 $ 3,441,171 $ 342,592 $ 6,631 $ 14,678 $ 9,084,215 Josemaria acquisition — 22,233 — 646,605 — 668,838 Additions 322,465 92,649 277,249 228,462 14,270 935,095 Disposals and transfers 93,105 259,430 (369,687) (5,279) 4,041 (18,390) Effects of foreign exchange (147,790) (63,306) (14,098) — (363) (225,557) As at December 31, 2022 5,546,923 3,752,177 236,056 876,419 32,626 10,444,201 Caserones Acquisition (Note 3) — 1,243,432 94,110 — — 1,337,542 Additions 280,100 96,281 406,540 253,648 82 1,036,651 Disposals and transfers 117,462 178,080 (409,927) — 30,587 (83,798) Effects of foreign exchange 70,269 38,027 3,482 — 274 112,052 As at December 31, 2023 $ 6,014,754 $ 5,307,997 $ 330,261 $ 1,130,067 $ 63,569 $ 12,846,648 Accumulated depreciation, depletion and amortization Mineral properties Plant and equipment Assets under construction1 Development project2 Software intangible assets Total As at December 31, 2021 $ 2,620,196 $ 1,405,084 $ — $ — $ 8,036 $ 4,033,316 Depreciation 308,831 252,003 — — 3,829 564,663 Disposals and transfers (79) (5,461) — — (119) (5,659) Effects of foreign exchange (93,517) (30,187) — — (101) (123,805) As at December 31, 2022 2,835,431 1,621,439 — — 11,645 4,468,515 Depreciation 313,900 346,669 — — 5,270 665,839 Disposals and transfers — (74,790) — — — (74,790) Effects of foreign exchange 44,744 17,063 — — 108 61,915 As at December 31, 2023 $ 3,194,075 $ 1,910,381 $ — $ — $ 17,023 $ 5,121,479 Net book value Mineral properties Plant and equipment Assets under construction1 Development project2 Software intangible assets Total As at December 31, 2022 $ 2,711,492 $ 2,130,738 $ 236,056 $ 876,419 $ 20,981 $ 5,975,686 As at December 31, 2023 $ 2,820,679 $ 3,397,616 $ 330,261 $ 1,130,067 $ 46,546 $ 7,725,169 ¹ Represent assets under construction at the Company's operating mine sites which are currently non-depreciable. 2 Assets relate to the Josemaria Project which are currently non-depreciable. During the year ended December 31, 2023, the Company completed the Caserones acquisition (Note 3) acquiring $1,337.5 million of plant and equipment and assets under construction. On April 28, 2022, the Company completed the Josemaria Resources Inc. acquisition acquiring $668.8 million of mineral properties, plant and equipment related to the Josemaria Project. The Company began to capitalize the Josemaria Project development costs during the fourth quarter of 2022. LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 23 - ===== SIDA 74 ===== During the year ended December 31, 2023, the Company capitalized $20.4 million (December 31, 2022 - $4.4 million) of finance costs to assets under construction and the Josemaria Project at a weighted average interest rate of 6.2% (December 31, 2022 - 5.5%). During the year ended December 31, 2023, the Company capitalized $222.4 million (December 31, 2022 - $253.4 million) of deferred stripping costs to mineral properties. The depreciation expense related to deferred stripping for the year ended December 31, 2023, was $109.0 million (December 31, 2022 - $123.0 million). Included in the mineral properties balance at December 31, 2023 is $277.5 million (December 31, 2022 - $681.7 million) related to deferred stripping at Candelaria and Caserones, which is currently non-depreciable. The Company's software intangible assets relate primarily to a global, distinct instance of an Enterprise Resource Planning ("ERP") system, and related configuration and customization costs incurred in preparing the intangible asset for its intended use. These assets have useful lives of 8 years or less, and are amortized on a straight-line basis. The Company leases various assets including power line infrastructure, buildings and storage facilities, rail cars, vehicles, machinery and equipment. The following table summarizes the changes in right-of-use assets within plant and equipment: Net book value As at December 31, 2021 $ 27,597 Josemaria acquisition 32 Additions 22,071 Depreciation (21,288) Disposals (75) Effects of foreign exchange (414) As at December 31, 2022 27,923 Caserones Acquisition (Note 3) 257,655 Additions 54,809 Depreciation (51,391) Disposals (5,363) Effects of foreign exchange 364 As at December 31, 2023 $ 283,997 9. GOODWILL The Company recognized goodwill on the acquisition of Chapada, Neves-Corvo, and Ojos del Salado (“Ojos”). Goodwill is allocated to the following CGUs: Chapada Neves-Corvo Ojos¹ Total Balance at December 31, 2021 $ 134,284 $ 98,008 $ 10,713 $ 243,005 Effects of foreign exchange — (5,711) — (5,711) Balance at December 31, 2022 134,284 92,297 10,713 237,294 Effects of foreign exchange — 3,322 — 3,322 Balance at December 31, 2023 $ 134,284 $ 95,619 $ 10,713 $ 240,616 ¹ Ojos is included in the Candelaria reporting segment. The Company performs an impairment assessment annually, or more frequently if there are impairment indicators, for the carrying amount of its CGUs where goodwill is allocated. The recoverable value of a CGU is determined using the FVLCD method applied by using a discounted cash flow model based on life-of-mine financial plans, and a market-based approach. Significant assumptions used by management to LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 24 - ===== SIDA 75 ===== determine the recoverable amount include future metal prices, production based on estimated quantities of R&R, production and capital expenditures, foreign exchange rates, pricing of in-situ mineral resources implied by the market value of selected comparable transactions involving the sale of similar companies and mineral properties, and discount rates. For the 2023 assessment, future metal prices and foreign exchange rates used in the discounted cash flow models are based on market consensus estimates observed during the fourth quarter of 2023. The valuation of recoverable amount is most sensitive to changes in metal prices, exchange rates, discount rates and pricing of in-situ mineral resources. Production costs and capital expenditures included in the discounted cash flow models are based on operating plans which consider past and estimated future performance. Inputs utilized in the discounted cash flow models were based on level 3 fair value measurements (Note 23), which were not based on observable market data. The R&R were based on the Company’s last published estimate dated December 31, 2023. Incorporated in the FVLCD are fair value estimates developed by the Company for mineral resources not captured in the cash flow projections model. These estimates are valued using third-party market information, which includes pricing of in-situ mineral resources implied by the market value of selected comparable transactions involving the sale of similar companies and mineral properties. Chapada For the Chapada CGU impairment review, the Company used a FVLCD model (level 3 measurement). For the years ended December 31, 2023 and 2022, the Company determined that the recoverable amount of the Chapada CGU was higher than its carrying value, and therefore no impairment was recognized. Sensitivity analysis was performed on the cash flow model for Chapada. At December 31, 2023, impairment would result from a decrease in the long-term copper price to approximately $3.70/lb, with all other inputs unchanged. Key assumptions for Chapada 2023 2022 Copper price $/lb 3.80 - 4.20 3.75 - 3.85 Gold price $/oz 1,750 - 2,000 1,700 - 1,750 After-tax discount rate 7.5% 8.0% BRL/$ exchange rate 5.00 5.00 - 5.20 Life of mine 28 years 29 years Neves-Corvo For the Neves-Corvo CGU impairment review, the Company used a FVLCD model (level 3 measurement). For the years ended December 31, 2023 and 2022, the Company determined that the recoverable amount of the Neves-Corvo CGU was higher than its carrying value, and therefore no impairment was recognized. Sensitivity analysis was performed on the cash flow model for Neves-Corvo. Changes in key inputs such as metal prices (+/-5%) and pricing of in-situ mineral resources (+/-5%) did not have a material impact on the result of the Company’s goodwill impairment assessment. LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 25 - ===== SIDA 76 ===== Key assumptions for Neves-Corvo 2023 2022 Copper price $/lb 3.80 - 4.20 3.75 - 3.85 Zinc price $/lb 1.15 - 1.20 1.15 - 1.30 After-tax discount rate 9.0% 9.0% $/€ exchange rate 1.05 - 1.15 1.03 - 1.10 Life of mine 10 years 10 years Ojos For the Ojos CGU impairment review, the Company used a FVLCD model (level 3 measurement). For the years ended December 31, 2023 and 2022, the Company determined that the recoverable amount of the Ojos CGU was higher than its carrying value, and therefore no impairment was recognized. 10. TRADE AND OTHER PAYABLES Trade and other payables are comprised of the following: December 31, 2023 December 31, 2022 Trade payables $ 393,829 $ 315,948 Unbilled goods and services 176,444 122,390 Employee benefits payable 114,514 88,086 Sinkhole provision 29,827 38,000 Royalties payable 23,773 16,283 Prepayment from customers 21,963 389 Pricing provisions on concentrate sales 13,201 8,484 Deferred consideration, current portion (Note 3) 10,000 — Other 22,212 23,385 $ 805,763 $ 612,965 Included in pricing provisions on concentrate sales are balances owing to customers and provisions arising from forward market price adjustments. The sinkhole provision relates to expected remediation costs and potential fines directly related to the sinkhole near the Company's Ojos del Salado operations. The deferred consideration relates to the current portion of the remaining deferred cash consideration arising from the Caserones Acquisition (Note 3), payable in installments over the next six years. The long-term portion of $ 106.2 million has been reported in Other Long-Term Liabilities. LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 26 - ===== SIDA 77 ===== 11. DEBT AND LEASE LIABILITIES Debt and lease liabilities are comprised of the following: December 31, 2023 December 31, 2022 Revolving credit facility (a) $ 245,084 $ 13,730 Term loan (b) 798,542 — Candelaria and Chapada term loans (c) 48,850 127,400 Lease liabilities (d) 277,208 27,166 Commercial paper (e) 116,025 26,665 Line of credit 99 2,367 Debt and lease liabilities 1,485,808 197,328 Less: current portion 212,646 170,149 Long-term portion $ 1,273,162 $ 27,179 The changes in debt and lease liabilities are comprised of the following: Leases Debt Total As at December 31, 2021 $ 25,878 $ 5,125 $ 31,003 Josemaria acquisition 38 47,000 47,038 Additions 21,198 282,938 304,136 Payments (21,651) (160,824) (182,475) Disposals (26) — (26) Interest 1,434 — 1,434 Financing fee amortization — 656 656 Financing fee reclassification — (4,926) (4,926) Effects of foreign exchange 295 193 488 As at December 31, 2022 27,166 170,162 197,328 Caserones Acquisition (Note 3) 257,655 — 257,655 Additions 54,392 2,490,597 2,544,989 Payments (59,841) (1,451,804) (1,511,645) Disposals (6,221) — (6,221) Interest 12,521 — 12,521 Financing fee amortization — 846 846 Deferred financing fee — (2,950) (2,950) Effects of foreign exchange (8,464) 1,749 (6,715) As at December 31, 2023 277,208 1,208,600 1,485,808 Less: current portion 47,672 164,974 212,646 Long-term portion $ 229,536 $ 1,043,626 $ 1,273,162 LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 27 - ===== SIDA 78 ===== a) The Company has a revolving credit facility of $1,750.0 million. On April 26, 2023, the credit facility was amended, extending the term by one year to April 2028 and bearing interest on drawn funds at rates of Term Secured Overnight Financing Rate (“Term SOFR”) + Credit Spread Adjustment (“CSA”) of 0.10% + 1.45% to Term SOFR + 0.10% + 2.50%, depending on the Company’s net leverage ratio. The revolving credit facility is unsecured, save and except for a charge over certain assets in the USA, and is subject to customary covenants. During the year ended December 31, 2023, the Company drew down $1,209.0 million (December 31, 2022 - $50.0 million), and repaid $977.0 million (December 31, 2022 - $32.0 million). Of the $1,209.0 million drawn down, $800.0 million was drawn in July 2023 to fund the upfront cash consideration for the Caserones Acquisition (Note 3) and was refinanced thereafter following the closing of the term loan . As at December 31, 2023, a principal balance of $250.0 million (December 31, 2022 - $18.0 million) was outstanding, with unamortized deferred financing fees of $4.9 million (December 31, 2022 - $4.3 million) netted against borrowings. b) In July 2023, the Company obtained a term loan of a principal amount of $800.0 million with an additional $400.0 million accordion option, maturing July 2026. The term loan bears interest at an annual rate equal to Term SOFR + CSA + an applicable margin of 1.60% to 2.65%, depending on the Company’s net leverage ratio. Principal is payable at maturity. The term loan is unsecured, save and except for a charge over certain assets in the USA, and has similar covenants to the Company’s existing $1,750.0 million revolving credit facility. The Company used the term loan to refinance the drawdown under the existing $1,750.0 million revolving credit facility used to fund the upfront cash consideration of $796.6 million for the Caserones acquisition (Note 3). As at December 31, 2023, a principal balance of $800.0 million was outstanding, with unamortized deferred financing fees of $1.5 million netted against borrowings. c) During 2022, Compañia Contractual Minera Candelaria S.A. ("Candelaria") obtained an unsecured fixed term loan in the amount of $50.0 million, which accrued interest at a rate of 6.13% per annum and was fully repaid on December 20, 2023. As at December 31, 2023, a principal balance of $nil (December 31, 2022 - $50.0 million) was outstanding. In February 2024, Candelaria obtained an additional unsecured fixed term loan in the amount of $50.0 million, which accrues interest at a rate of 5.67% per annum and matures in May 2024. Mineração Maracá Indústria e Comércio S/A (“Chapada”), a subsidiary of the Company which owns the Chapada mine, obtained a series of unsecured fixed term loans totalling $ 205.7 million during the year ended December 31, 2023 (December 31, 2022 - $101.4 million). Chapada repaid $234.3 million of the outstanding term loans during the year ended December 31, 2023 (December 31, 2022 - $24.0 million). As at December 31, 2023, there were sixteen term loans outstanding at Chapada totalling $48.9 million (December 31, 2022 - nine term loans totalling $77.4 million). These outstanding term loans accrue interest at rates ranging from 6.80% to 7.15% per annum with interest payable upon maturity. The maturity dates range from March to April 2024. d) Lease liabilities relate to leases on power line infrastructure, buildings and storage facilities, rail cars, vehicles, machinery and equipment which have remaining lease terms of one to fourteen years and interest rates of 0.8% - 10.4% over the terms of the leases. Certain leases relating to mine development, exploration, production and transportation equipment contain variable lease expenses based on tonnage or drilling metres. Variable lease expense for the year ended December 31, 2023 was $181.7 million (2022 - $173.9 million). The Company has short-term leases related to mining equipment and office space. Short-term lease expense for the period ended December 31, 2023 was $6.9 million (2022 - $3.0 million). LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 28 - ===== SIDA 79 ===== e) Sociedade Mineira de Neves-Corvo, S.A. (“Somincor”), a subsidiary of the Company which owns the Neves- Corvo mine, entered into a commercial paper program ("Commercial Paper Program 1") in September 2022 which matures in May 2025 and is unsecured. The $27.6 million (€25.0 million) program bears interest on drawn funds at EURIBOR+0.50%. In June and July 2023, Somincor entered into a second and third commercial paper program ("Commercial Paper Program 2" and "Commercial Paper Program 3"), respectively . Commercial Paper Program 2 is unsecured and has a borrowing capacity of $55.3 million (€50.0 million), matures in June 2028, and bears interest on drawn funds at EURIBOR+0.50%. Commercial Program 3 is unsecured and has a borrowing capacity of $ 44.2 million (€40.0 million), matures in July 2028, and bears interest on drawn funds at EURIBOR+0.30%. During the years ended December 31, 2023 and 2022, Somincor made the following withdrawals and payments from the respective programs: Year ended December 31, 2023 2022 Commercial Paper Program 1 Withdrawals $86,060 (€80 million) $81,538 (€80.0 million) Payments $ 86,024 (€80 million) $55.685 (€55.0 million) Commercial Paper Program 2 Withdrawals $97,689 (€90 million) — Payments $43,272 (€40 million) — Commercial Paper Program 3 Withdrawals $92,120 (€85 million) — Payments $58,914 (€55 million) — As at December 31, 2023 , Commercial Paper Program 1, Commercial Paper Program 2, and Commercial Paper Program 3 remain drawn at $27.6 million (€25 million), $55.3 million (€50.0 million), and $33.2 million (€30.0 million), respectively. The schedule of undiscounted lease payment and debt obligations is as follows: Leases Debt Total Less than one year $ 66,970 $ 164,974 $ 231,944 One to five years 180,036 1,050,000 1,230,036 More than five years 153,944 — 153,944 Total undiscounted obligations as at December 31, 2023 $ 400,950 $ 1,214,974 $ 1,615,924 LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 29 - ===== SIDA 80 ===== 12. DEFERRED REVENUE The following table summarizes the changes in deferred revenue: As at December 31, 2021 $ 693,467 Recognition of revenue (73,733) Variable consideration adjustment 3,492 Finance costs 37,621 Effects of foreign exchange (6,741) As at December 31, 2022 654,106 Recognition of revenue (72,743) Variable consideration adjustment 3,018 Finance costs 36,004 Effects of foreign exchange 2,845 As at December 31, 2023 623,230 Less: current portion 87,867 Long-term portion $ 535,363 Consideration received under the Company’s gold, silver and copper streaming agreements is deemed to be variable and can be subject to cumulative adjustments when the contractual volume to be delivered changes. As a result of changes to the Company’s R&R, adjustments have been made to the deferred revenue liability for 2022 and 2023 which were recognized through revenue and finance costs. For the year ended December 31, 2023, the Company recognized finance costs at a weighted average rate of 5.5% (2022 - 5.5%) on the deferred revenue balances. a) Candelaria The Company entered into a stream agreement with Franco-Nevada Corporation (“FN”), whereby the Company has agreed to sell 68% of all the gold and silver contained in production from Candelaria until 720,000 oz of gold and 12 million oz of silver have been delivered. Thereafter, FN will be entitled to purchase 40% of the gold and silver production from Candelaria. The Company received an up-front payment of $648 million which is being recognized as gold and silver are delivered to FN under the contract. For each ounce of gold and silver delivered, FN makes payments equal to the lesser of the prevailing market prices and approximately $425/oz of gold and $4.24/oz of silver (2022 - $420/oz of gold and $4.20/oz of silver), subject to a 1% annual inflationary adjustment. In 2023, approximately 56,000 oz of gold and 889,000 oz of silver (2022 - approximately 55,000 oz of gold and 983,000 oz of silver) were subject to the terms of the streaming agreement. The deferred revenue balance as at December 31, 2023 at Candelaria is $409.7 million (December 31, 2022 - $435.5 million). b) Chapada mine The Company assumed the following streaming agreements with Sandstorm Gold Ltd. (“Sandstorm”) and Altius Minerals Corporation (“Altius”) when the Chapada mine was acquired: Sandstorm is entitled to purchase the lesser of 3.9 million pounds (“Mlbs”) or 4.2% of the payable copper produced annually from Chapada at 30% of the market price. The percentage of payable copper is subject to two reduction thresholds. Once an aggregate of 39 Mlbs has been delivered, the percentage of payable copper reduces to 3.0%. Upon delivery of 50 Mlbs of copper in aggregate, the percentage of payable copper reduces to 1.5% for the LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 30 - ===== SIDA 81 ===== remaining life of mine. In 2023, approximately 3.5 Mlbs (2022 – 3.9 Mlbs) were delivered under this agreement. The deferred revenue is being recognized as copper is delivered to Sandstorm under the contract. Altius is entitled to purchase 3.7% of the payable copper produced from Chapada at 30% of the market price. The percentage of payable copper is subject to two reduction thresholds. In the event of a specified expansion at Chapada, the percentage of payable copper reduces to 2.65%. Also, upon delivery of 75 Mlbs of copper in aggregate, the percentage of payable copper reduces to 1.5% for the remaining life of mine. In 2023, approximately 3.4 Mlbs (2022 – 3.7 Mlbs) were delivered under this agreement. The deferred revenue is being recognized as copper is delivered to Altius under the contract. The deferred revenue balance as at December 31, 2023 at Chapada is $146.2 million (December 31, 2022 - $154.1 million). c) Neves-Corvo mine The Company has an agreement to deliver all of the silver contained in concentrate produced from its Neves-Corvo mine to Wheaton Precious Metals Corporation (“Wheaton”). The Company received an up-front payment which was deferred and is being recognized in revenue as silver is delivered under the contract. The Company receives the lesser of a fixed payment (subject to annual inflationary adjustments) and the market price per ounce of silver. During 2023, the Company received approximately $4.46/oz of silver ( 2022 - $4.42/oz). The agreement extends to the earlier of September 2057 and the end of mine life. The deferred revenue balance as at December 31, 2023 at Neves-Corvo is $26.8 million (December 31, 2022 - $25.1 million). d) Zinkgruvan mine The Company has an agreement with Wheaton to deliver all of the silver contained in concentrate from its Zinkgruvan mine. The Company received an up-front payment which was deferred and is being recognized in revenue as silver is delivered under the contract and receives the lesser of a fixed payment (subject to annual inflationary adjustments) and the market price per ounce of silver. During 2023, the Company received approximately $4.60/oz of silver (2022 - $4.53/oz). The agreement includes a guaranteed minimum delivery of 40.0 million oz of silver over an initial 25 year term. If at the end of the initial term the Company has not met its minimum obligation, it must pay $1.00 for each ounce of silver not delivered. An aggregate total of approximately 33.3 million oz has been delivered since the inception of the contract in 2004. The deferred revenue balance as at December 31, 2023 at Zinkgruvan is $40.5 million (December 31, 2022 - $39.4 million). LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 31 - ===== SIDA 82 ===== 13. RECLAMATION AND OTHER CLOSURE PROVISIONS Reclamation and other closure provisions relating to the Company's mining operations are as follows: Reclamation provisions Other closure provisions Total Balance, December 31, 2021 $ 406,966 $ 39,089 $ 446,055 Accretion 14,344 — 14,344 Changes in estimate 45,766 11,374 57,140 Changes in discount rate (43,667) — (43,667) Payments (11,175) (4,728) (15,903) Effects of foreign exchange (11,214) (907) (12,121) Balance, December 31, 2022 401,020 44,828 445,848 Acquisition of Caserones (Note 3) 92,440 — 92,440 Accretion 23,169 — 23,169 Changes in estimate (30,507) 5,572 (24,935) Changes in discount rate 14,584 — 14,584 Payments (8,842) (1,649) (10,491) Effects of foreign exchange 5,281 (1,720) 3,561 Balance, December 31, 2023 497,145 47,031 544,176 Less: current portion 9,119 5,323 14,442 Long-term portion $ 488,026 $ 41,708 $ 529,734 The Company expects these liabilities to be settled between 2024 and 2110. The reclamation provisions are discounted using current market pre-tax discount rates which range from 2.0% to 10.4% (December 31, 2022 - 2.0% to 13.5%). 14. SHARE CAPITAL (a) Authorized and issued shares Authorized share capital consists of an unlimited number of voting common shares with no par value and one special non-voting share with no par value. As at December 31, 2023, there were 773,667,789 fully paid voting common shares issued (2022 - 770,746,531 shares). The special non-voting share is not issued and outstanding. (b) Share units The Company has a Share Unit Plan (“SU Plan”) which provides for share unit awards (“SUs”) to be granted by the Board of Directors to certain employees of the Company. The maximum number of SUs that are issuable under the SU Plan is 14,000,000. An SU is a unit representing the right to receive one common share (subject to adjustments) issued from treasury. The number and terms of SUs awarded will be determined by the Board of Directors based on the closing market price on the TSX of the Company’s common shares on the date of the grant. The Company uses the fair value method of accounting for the recording of SU grants to employees and officers. i) Time-vesting SUs During 2023, the Company granted 795,903 time-vesting SUs to employees and officers that expire in 2026. These SUs vest three years from the grant date with the number of SUs being fixed, and with no vesting conditions other than service. The fair value of the time-vesting SUs are based on the market value of the LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 32 - ===== SIDA 83 ===== shares on the date of the grant and an estimated forfeiture rate of approximately 11% (2022 - 11%). The weighted average fair value per time-vesting SU granted during 2023 was C$8.23 (2022 - C$11.38). The Company incurred share-based compensation related expenditures of $2.9 million for 2023 (2022 - $3.1 million) with a corresponding credit to contributed surplus related to time-vesting SUs. As at December 31, 2023, there was $3.8 million (2022 - $2.6 million) of unamortized stock-based compensation expense related to time-vesting SUs. ii) Performance-vesting SUs During 2023, the Company granted 584,900 performance-vesting SUs to officers that expire in 2026. These SUs vest three years from the grant date with the number of SUs being variable, which can range from zero to 1,169,800 contingent upon achieving applicable performance vesting conditions. The fair value of the performance-vesting SUs are based on a Monte Carlo model and an estimated forfeiture rate of approximately 11% (2022 - 11%). The weighted average fair value per performance-vesting SU granted during 2023 was C$7.94 (2022 - C$ 13.52). The Company incurred share-based compensation related expenditures of $1.3 million for 2023 (2022 - $0.3 million) with a corresponding credit to contributed surplus related to performance-vesting SUs. As at December 31, 2023, there was $2.7 million (2022 - $0.7 million) of unamortized stock-based compensation expense related to performance-vesting SUs. During 2023, 722,822 common shares (2022 - 1,222,797) were issued as a result of SUs being vested. (c) Stock options The Company’s Stock Option Plan provides for stock option awards to be granted by the Board of Directors to certain employees of the Company. The term of any stock options granted under the Stock Option Plan may not exceed seven years from the date of grant. The maximum number of stock options that are issuable under the Stock Option Plan is 42,000,000. The vesting requirements are established by the Board of Directors. The Company uses the fair value method of accounting for the recording of stock options. Under this method, the Company incurred share-based compensation related expenditures of $3.6 million for 2023 (2022 - $4.4 million) with a corresponding credit to contributed surplus. During 2023, the Company granted 1,918,733 stock options to employees and officers that expire in 2030. The stock options vest over three years from the grant date. The Black-Scholes option pricing model used to determine the fair value of the stock options at the date of the grant assumed a dividend of $0.36/share, risk-free interest rate of 3.09% to 3.96% (2022 - 1.59% to 2.87%), expected life of 4.4 years (2022 - 4.4 years) and expected price volatility of 47% to 48% (2022 - 47%). Volatility is determined using the historical daily volatility over the expected life of the options. A forfeiture rate of approximately 11% was applied (2022 - 11%). The weighted average fair value per stock option granted during 2023 was C$2.51 (2022 - C$3.47). As at December 31, 2023, there was $1.9 million of unamortized stock-based compensation expense (2022 - $2.1 million) related to stock options. During 2023, 2,044,059 common shares ( 2022 - 3,202,107) were issued as a result of stock options being exercised. LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 33 - ===== SIDA 84 ===== (d) Deferred share units During the year ended December 31, 2023, the Company adopted a Deferred Share Unit Plan effective January 1, 2024 under which DSUs are granted by the Board of Directors quarterly to eligible non-employee D irectors. The DSUs will accumulate and will be settled in cash at the time of each eligible Director’s departure or at the termination of the DSU Plan. A director will receive a cash payment equal to the market value of such DSUs plus accrued dividend equivalents as of the settlement date. At December 31, 2023, there were no DSUs outstanding as there had been no grants issued under the plan. (e) Replacement options During 2022, the Company issued 2,513,866 Replacement Options upon closing of the Josemaria acquisition. During 2023, 154,377 common shares ( 2022 - 2,064,037) were issued as a result of Replacement Options being exercised. The continuity of share-based payments outstanding is as follows: Number of SUs Number of Replacement Options Weighted average exercise price (C$) Number of options Weighted average exercise price (C$) Outstanding, December 31, 2021 2,320,750 — — 8,652,925 8.82 Granted 507,579 — — 1,830,020 11.54 Josemaria acquisition — 2,513,866 4.99 — — Forfeited (292,476) (14,598) 5.05 (821,841) 11.08 Exercised (1,222,797) (2,064,037) 4.97 (3,202,107) 7.25 Outstanding, December 31, 2022 1,313,056 435,231 5.09 6,458,997 10.08 Granted 1,380,803 — — 1,918,733 8.06 Forfeited (150,096) — — (824,869) 11.53 Exercised (722,822) (154,377) 5.42 (2,044,059) 7.04 Outstanding, December 31, 2023 1,820,941 280,854 4.91 5,508,802 10.26 The following table summarizes options outstanding as at December 31, 2023: Outstanding Options Exercisable Options Range of exercise prices (C$) Number of Options Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price (C$) Number of Options Exercisable Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price (C$) 4 to 6.99 328,500 0.6 6.57 328,500 0.6 6.57 7 to 9.99 2,590,731 4.5 7.69 869,498 1.1 7.09 10 to 12.99 1,245,337 4.7 11.54 544,513 4.1 11.54 13 to 15.99 1,344,234 3.8 14.92 1,054,370 3.7 14.91 5,508,802 4.1 10.26 2,796,881 2.6 10.84 LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 34 - ===== SIDA 85 ===== The following table summarizes Replacement Options outstanding as at December 31, 2023: Outstanding and Exercisable Replacement Options Range of exercise prices (C$) Number of Options Exercisable Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price (C$) 4 to 4.99 280,854 1.7 4.91 280,854 1.7 4.91 (f) Basic and diluted weighted average number of shares outstanding December 31, 2023 December 31, 2022 Basic weighted average number of shares outstanding 772,532,260 762,518,753 Effect of dilutive securities 760,635 1,075,300 Diluted weighted average number of shares outstanding 773,292,895 763,594,053 Antidilutive securities 137,900 423,200 The effect of dilutive securities relates to in-the-money outstanding stock options and SUs. Upon closing the Josemaria Resources acquisition in 2022, the Company issued 40,031,936 common shares to the former shareholders of Josemaria Resources with a fair value of $369.2 million. (g) Dividends The Company declared dividends in the amount of $206.1 million (2022 - $275.8 million), or C$0.36 per share, for the year ended December 31, 2023 (2022 - C$0.47 per share). (h) Normal course issuer bid In December 2022, the Company obtained approval from the TSX for the renewal of its normal course issuer bid ("NCIB") to purchase up to 65,313,173 common shares between December 9, 2022 and December 8, 2023. Daily purchases (other than pursuant to a block purchase exemption) on the TSX under the NCIB were limited to a maximum of 875,921 common shares. In connection with the NCIB renewal, the Company entered into an automatic share purchase plan (“ASPP”) with its broker to allow for the purchase of common shares at times when the Company ordinarily would not be active in the market due to trading blackout periods, insider trading rules or otherwise. In December 2023, the Company obtained approval from the TSX for the renewal of its NCIB to purchase up to 52,538,870 common shares between December 11, 2023 and December 10, 2024. Daily purchases (other than pursuant to a block purchase exemption) on the TSX under the NCIB are limited to a maximum of 564,097 common shares. In connection with the NCIB renewal, the Company entered into an ASPP with its broker under the same terms as the ASPP entered in December 2022. For the year ended December 31, 2023, 0 shares were purchased under the NCIB. For the year ended December 31, 2022, 10,761,500 shares were purchased under the NCIB at an average price of C$7.21 per share for total consideration of $59.4 million. All of the common shares purchased were cancelled. LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 35 - ===== SIDA 86 ===== 15. NON-CONTROLLING INTERESTS Set out below is summarized financial information for each subsidiary with non-controlling interest ("NCI") that is material to the group. As part of its Candelaria segment, the Company owns 80% of Compañia Contractual Minera Candelaria S.A. ("Candelaria mine") and Compañia Contractual Minera Ojos del Salado S.A.’s ("Ojos mine") copper mining operations and supporting infrastructure in Chile. In addition, the Company owns 51% of Lumina Copper ("Caserones mine"), also located in Chile. The continuity of the Company's non-wholly owned subsidiaries with material NCI is as follows: Candelaria mine Ojos mine Caserones mine Total NCI in subsidiary at December 31, 2023 20% 20% 49% As at December 31, 2021 $ 511,326 $ 36,254 $ — $ 547,580 Share of net comprehensive income (loss) 38,025 (1,516) — 36,509 Distributions (10,000) (10,000) — (20,000) As at December 31, 2022 539,351 24,738 — 564,089 Caserones Acquisition (Note 3) — — 873,767 873,767 Share of net comprehensive income (loss) 40,974 779 32,294 74,047 Distributions (11,000) — (44,100) (55,100) As at December 31, 2023 $ 569,325 $ 25,517 $ 861,961 $ 1,456,803 LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 36 - ===== SIDA 87 ===== Summarized financial information for the Company's non-wholly owned subsidiaries on a 100% basis, before inter-company eliminations is as follows: Summarized Balance Sheets Candelaria mine Ojos mine Caserones mine As at Dec. 31, 2023 As at Dec. 31, 2022 As at Dec. 31, 2023 As at Dec. 31, 2022 As at Dec. 31, 2023 As at Dec. 31, 2022 Total current assets $ 455,675 $ 557,565 $ 56,542 $ 77,177 $ 708,927 $ — Total non-current assets $ 2,975,231 $ 2,818,053 $ 165,568 $ 169,985 $ 1,629,052 $ — Total current liabilities $ 214,205 $ 299,605 $ 52,109 $ 83,083 $ 323,797 $ — Total non-current liabilities $ 603,799 $ 564,228 $ 42,390 $ 39,463 $ 267,263 $ — Summarized Statements of Earnings and Comprehensive Income (Loss) Candelaria mine Ojos mine Caserones mine1 For the years ended December 31, 2023 2022 2023 2022 2023 2022 Total revenue $ 1,387,341 $ 1,364,274 $ 142,242 $ 180,726 $ 601,775 $ — Net earnings (loss) $ 178,989 $ 209,346 $ 2,995 $ (7,586) $ 63,349 $ — Net comprehensive income (loss) $ 179,349 $ 209,173 $ 2,995 $ (7,586) $ 63,349 $ — Summarized Statement of Cash Flows Candelaria mine Ojos mine Caserones mine1 For the years ended December 31, 2023 2022 2023 2022 2023 2022 Cash provided by operating activities 494,847 377,704 9,617 28,849 179,371 $ — Cash used in investing activities (360,743) (371,303) (19,203) (20,096) (129,266) — Cash (used in)/provided by financing activities (132,551) (55,388) 1,424 (50,244) (131,807) — Increase (decrease) in cash and cash equivalents during the year $ 1,553 $ (48,987) $ (8,162) $ (41,491) $ (81,702) $ — 1Summarized Statements of Earnings and Comprehensive Income (Loss) and Summarized Statement of Cash Flows at Caserones mine are from the date of acquisition (Note 3) LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 37 - ===== SIDA 88 ===== 16. REVENUE The Company's analysis of revenue from contracts with customers, segmented by product, is as follows: 2023 2022 Revenue from contracts with customers: Copper $ 2,423,639 $ 2,018,678 Zinc 308,806 379,755 Nickel 291,169 351,385 Gold 234,318 225,716 Molybdenum 82,069 — Lead 60,730 61,245 Silver 47,045 42,654 Other 39,664 50,811 3,487,440 3,130,244 Provisional pricing adjustments on current year concentrate sales (84,021) (118,102) Provisional pricing adjustments on prior year concentrate sales (11,342) 29,086 Revenue $ 3,392,077 $ 3,041,228 The Company's geographical analysis of revenue from contracts with customers, segmented based on the destination of product, is as follows: 2023 2022 Revenue from contracts with customers: China $ 820,587 $ 167,576 Japan 662,513 838,383 Spain 602,942 537,268 Canada 403,911 497,030 Finland 275,361 277,465 Sweden 159,653 148,744 Germany 129,318 241,795 Other 433,155 421,983 3,487,440 3,130,244 Provisional pricing adjustments on current year concentrate sales (84,021) (118,102) Provisional pricing adjustments on prior year concentrate sales (11,342) 29,086 Revenue $ 3,392,077 $ 3,041,228 Revenue from contracts with customers for the year ended December 31, 2023 includes a decrease of $1.8 million (2022 - decrease of $0.1 million) due to variable consideration adjustments. Provisional pricing adjustments on prior year concentrate sales include adjustments on pricing from sales during 2022 in addition to pricing adjustments from Caserones sales prior to the date of Acquisition (Note 3). During the three months ended December 31, 2023, provisional pricing adjustments on current and prior period concentrate sales were $18.1 million positive and $23.9 million negative, respectively. LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 38 - ===== SIDA 89 ===== 17. PRODUCTION COSTS The Company's production costs are comprised of the following: 2023 2022 Direct mine and mill costs $ 1,897,784 $ 1,490,348 Transportation 136,993 121,262 Royalties 51,331 49,748 Total production costs $ 2,086,108 $ 1,661,358 During the year ended December 31, 2023, the Company incurred $6.3 million (2022 - $20.0 million) related to union negotiation settlements at the Company’s Candelaria operations in Chile, which were reported in direct mine and mill costs. 18. EMPLOYEE BENEFITS The Company's employee benefits recognized in the consolidated statement of earnings are comprised of the following: 2023 2022 Production costs Wages and benefits $ 363,992 $ 296,428 Retirement benefits 1,561 1,655 Share-based compensation 1,643 2,325 367,196 300,408 General and administrative expenses Wages and benefits 25,109 21,876 Retirement benefits 975 875 Share-based compensation 5,412 5,133 Termination benefits 7,173 5,583 38,669 33,467 General exploration and business development Wages and benefits 5,060 8,030 Retirement benefits 37 35 Share-based compensation 246 345 Termination benefits 313 — 5,656 8,410 Total employee benefits $ 411,521 $ 342,285 LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 39 - ===== SIDA 90 ===== 19. GENERAL EXPLORATION AND BUSINESS DEVELOPMENT The Company's general exploration and business development costs are comprised of the following: 2023 2022 General exploration $ 44,730 $ 36,750 Corporate development 6,148 297 Project development 4,814 107,306 Total general exploration and business development $ 55,692 $ 144,353 For the year ended December 31, 2023, corporate development expenses include $5.2 million in transaction costs incurred related to the Caserones Acquisition (Note 3). Project development expenses include study costs related to potential expansion projects at the Company's operating sites. During the fourth quarter of 2022, the Company began to capitalize the Josemaria Project development costs. 20. FINANCE INCOME AND COSTS The Company's finance income and costs are comprised of the following: 2023 2022 Interest income $ 11,137 $ 4,211 Interest expense and bank fees (51,358) (10,196) Deferred revenue finance costs (25,996) (36,621) Accretion expense on reclamation provisions (23,169) (14,344) Lease liability interest (12,521) (1,434) Other (792) (5,801) Total finance costs, net $ (102,699) $ (64,185) Finance income $ 11,137 $ 4,211 Finance costs (113,836) (68,396) Total finance costs, net $ (102,699) $ (64,185) LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 40 - ===== SIDA 91 ===== 21. OTHER INCOME AND EXPENSE The Company's other income and expense are comprised of the following: 2023 2022 Foreign exchange and trading gains on debt and equity investments (a) $ 86,784 $ 93,132 Realized gains on derivative contracts (Note 23) 49,712 5,980 Gain on disposal of subsidiary (b) 5,718 18,829 Foreign exchange gain (loss) 4,236 (15,359) Revaluation of marketable securities 1,846 5,484 Unrealized (losses) gains on derivative contracts (Note 23) (21,932) 62,971 Ojos del Salado sinkhole expenses (c) (16,922) (63,271) Revaluation of Chapada derivative liability (2,594) (4,280) Revaluation of Caserones purchase option (2,556) — (Loss) income from equity investment in associate (60) 3,297 Other income (expense) 357 (8,779) Total other income, net $ 104,589 $ 98,004 a) Foreign exchange and trading gains on debt and equity investments include the changes in fair value of debt and equity instruments supporting capital funding for the Josemaria Project (Note 2). b) Pursuant to the terms of the original sale agreement of Rio Narcea Recursos, S.A. in 2016, the Company received a $16.8 million payment during 2022, and a further $5.7 million payment in 2023, which were contingent on historical tax assessments which have now been closed. c) Ojos del Salado sinkhole expenses include idle costs, maintenance, demobilization, and remediation work related to the sinkhole near the Company's Ojos del Salado operations. For the year ended December 31, 2022, sinkhole expenses included a $5.0 million write-down of mineral properties, plant and equipment. 22. CURRENT AND DEFERRED INCOME TAXES 2023 2022 Current tax expense: Current tax on net taxable earnings $ 152,637 $ 150,861 Adjustments in respect of prior years 1,779 (883) 154,416 149,978 Deferred tax expense (recovery): Origination and reversal of temporary differences 39,027 (41,629) Change in tax rate 39,376 — Utilization and recognition of previously unrecognized tax losses and temporary differences (11,628) 638 Temporary differences for which no deferred asset was recognized (4,592) 25,641 62,183 (15,350) Total tax expense $ 216,599 $ 134,628 LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 41 - ===== SIDA 92 ===== The tax on the Company's earnings before income tax differs from the amount that would arise using the weighted average rate applicable to earnings of the consolidated entities as follows: 2023 2022 Earnings excluding income taxes $ 531,848 $ 598,161 Combined basic federal and provincial rates 27.0 % 26.5 % Income taxes based on Canadian statutory income tax rates $ 143,599 $ 158,513 Effect of different tax rates in foreign jurisdictions 28,630 11,569 Tax calculated at domestic tax rates applicable to earnings in the respective countries 172,229 170,082 Tax effects of: Non-deductible and non-taxable items (a) (4,154) (37,398) Change in tax rates (b) 39,376 — Adjustments in respect of prior years (c) (17,140) (11,112) Tax losses and temporary differences for which no deferred income tax asset was recognized (4,591) 25,641 Foreign exchange impact on temporary differences and other translation amounts (d) 29,128 (20,733) Utilization and recognition of previously unrecognized temporary differences (11,628) (2,346) Tax recovery associated with government grants and other tax credits (e) (2,682) (10,029) Net withholding tax on accrued interest and dividends received 16,652 19,526 Other (591) 997 Total tax expense $ 216,599 $ 134,628 The Company operates in tax jurisdictions that have tax rates ranging from 20.6% to 35.0%. a) Included in the prior period non-taxable items of $37.4 million in 2022 is the impact of the tax depletion allowance at Eagle of $17.2 million. b) The new mining royalty law in Chile, which includes a 1% ad-valorem tax on sales, was enacted in the third quarter of 2023 and will become effective January 1, 2024 for Candelaria and 2028 for Caserones when its tax stability agreement expires. In addition to the ad-valorem tax, both operations in Chile are expected to pay mining tax of approximately 8% - 15% on net mining income (currently approximately 5%). The maximum effective tax rate for the combined mining royalty, corporate income tax and final taxes in Chile is set at 46.5%. Candelaria has accrued $40.2 million in deferred tax expense in 2023 (2022 - $0.0 million). Caserones continues to be taxed under the Specific Mining Tax regime until the end of 2027. c) Adjustments in respect of prior years includes temporary difference true-ups of $6.4 million at Candelaria (2022- $0.0 million), $12.9 million deferred tax recovery at Josemaria (2022 - $0.0 million), $2.8 million at Chapada (2022 - $7.4 million) and $2.2 million at Eagle (2022 - $1.9 million). d) The revaluation of non-monetary assets in Brazil and Argentina and the translation of deferred tax liabilities from their respective local currency to USD resulted in a net deferred tax recovery of $24.5 million in Brazil (2022 - net deferred tax recovery of $20.7 million) and a net deferred tax expense of $53.6 million in Argentina (2022 - $0.1 million). e) In 2023, Neves-Corvo recorded $1.6 million in investment tax credits (2022 - $6.5 million). Global Minimum Top-up Tax - Pillar Two The Company is within the scope of OECD Pillar Two model rules. Among the jurisdictions where the Company operates, Pillar Two legislation has been enacted in Sweden and Netherlands and is expected to be enacted or LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 42 - ===== SIDA 93 ===== substantially enacted in Canada and Portugal in 2024. The legislation is applicable to the Company’s fiscal year beginning on January 1, 2024 and consequently, the Company has no current tax exposure as at the reporting date. The Company applies the exception to recognizing and disclosing information about deferred tax assets and liabilities as provided by the amendments to IAS 12 in May 2023. The Company also accounts for any top up taxes as a current tax when it is incurred. The Company is currently assessing the potential impact of the Pillar Two legislation for when it comes into effect, but the quantitative impact of the enacted or substantively enacted legislation is not yet reasonably estimable. Deferred tax liabilities, net December 31, 2023 December 31, 2022 Deferred tax assets $ 170,203 $ 3,837 Deferred tax liabilities (751,688) (709,602) Deferred tax liabilities, net $ (581,485) $ (705,765) Net deferred tax liabilities of $555.0 million (2022 - $665.2 million) are expected to be settled after 12 months and net deferred tax liabilities of $26.5 million (2022 - $40.5 million net deferred tax assets) are expected to be settled within 12 months. The movement in deferred income tax assets and liabilities during the year, without taking into consideration the offsetting of balances within the same jurisdiction, is as follows: As at December 31, 2022 (Expensed)/ recovered Balance sheet/ Equity adjustment Effects of foreign exchange As at December 31, 2023 Deferred tax assets: Loss carryforwards $ 5,624 $ 52,438 $ — $ — $ 58,062 Reclamation and other closure provisions 65,130 (3,623) — 511 62,018 Deferred revenue 12,129 152 — 510 12,791 Future tax credits 6,563 (2,432) — 184 4,315 Leases 5,265 657 — 14 5,936 Sinkhole provision 6,631 — — — 6,631 Other 4,502 1,074 629 (1,383) 4,822 Deferred tax liabilities: Mineral properties, plant and equipment (656,975) (34,712) 197,550 (2,003) (496,140) Right-of-use assets (5,208) (1,758) (24,321) (17) (31,304) Provisions (23,633) (64,651) — — (88,284) Mining royalty taxes (22,370) (13,141) 25,922 — (9,589) Long-term inventory (73,366) (4,046) (10,785) — (88,197) Fair value gains (15,095) 2,291 — — (12,804) Foreign currency contracts (14,170) 5,376 — (368) (9,162) Pension provision (792) 192 — 20 (580) $ (705,765) $ (62,183) $ 188,995 $ (2,532) $ (581,485) LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 43 - ===== SIDA 94 ===== As at December 31, 2021 (Expensed)/ recovered Balance Sheet/ Equity adjustment Effects of foreign exchange As at December 31, 2022 Deferred tax assets: Loss carryforwards $ 50,452 $ (44,828) $ — $ — $ 5,624 Reclamation and other closure provisions 66,722 (789) — (803) 65,130 Deferred revenue 11,132 2,076 — (1,079) 12,129 Future tax credits — 6,485 — 78 6,563 Leases 4,894 458 — (87) 5,265 Sinkhole provision — 6,631 — — 6,631 Other 2,929 (4,143) — 5,716 4,502 Deferred tax liabilities: Mineral properties, plant and equipment (704,362) 42,988 — 4,399 (656,975) Right-of-use assets (5,284) (30) — 106 (5,208) Provisions (21,189) (10) (2,434) — (23,633) Mining royalty taxes (20,047) (2,323) — — (22,370) Long-term inventory (107,578) 34,212 — — (73,366) Fair value gains (4,138) (10,957) — — (15,095) Foreign currency contracts — (14,170) — (14,170) Pension provision (398) (250) — (144) (792) $ (726,867) $ 15,350 $ (2,434) $ 8,186 $ (705,765) Deferred tax assets are recognized for tax loss carry-forwards and other temporary differences to the extent that the realization of the related tax benefit through future taxable profits is probable. The Company determined that it is probable that sufficient future taxable profits will be available to allow the benefit of the deferred tax assets to be utilized. The Company did not recognize deferred tax assets of $19.0 million (2022 - $21.6 million) arising from the provision for reclamation at Eagle and $1,116.9 million (2022 - $6.5 million) in respect of losses amounting to $4,141.0 million (2022 - $24.6 million) that can be carried forward against future taxable income. Caserones has approximately $4.2 billion in net operating losses which can be applied to future taxable income over the mine life. A deferred tax asset has been recognized to the extent that the Company expects to realize sufficient taxable profit in the foreseeable future. The deferred mining tax liability in Candelaria has been revalued using the enacted rates under the new mining royalty in Chile, resulting in a net additional deferred mining tax expense of $39.4 million (2022 -$0.0 million). Included in the balance sheet and equity adjustments is a $189.2 million deferred tax asset accounted through the balance sheet on the Caserones purchase price adjustment. LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 44 - ===== SIDA 95 ===== 23. FINANCIAL INSTRUMENTS Derivative instruments From time to time, the Company uses derivative contracts as part of its risk management strategy to mitigate exposure to foreign currencies and commodities. During 2022, the Company entered into EUR, BRL, CLP, SEK and CAD foreign currency options and forward contracts intended to limit the foreign exchange exposure of its forecasted foreign currency denominated after-tax attributable operating and capital expenditures. The foreign exchange contracts have not been designated as hedges for purposes of hedge accounting and are measured at fair value with changes in fair value recognized in the consolidated statement of earnings. During 2023, the Company entered into SEK forward contracts in the total amount of SEK 845.7 million at prices ranging from USD:SEK 10.76 to USD:SEK 10.92, expiring in 2024 and 2025. Additionally, the Company entered into zero cost collar contracts in the total amounts of SEK 396 million, CLP 303 billion and BRL 391 million with collar ranges of SEK 10.35 to SEK 11.15, CLP 800 to CLP 1,035, and BRL 5.00 to BRL 6.12, respectively. The contracts expire throughout 2024 and 2025. The following table shows the foreign exchange contract positions and their expiry dates: Expired in Expiring throughout: Foreign currency forward contracts 2023 2024 2025 EUR/USD forwards Average contract price 1.01 1.02 — Position (EUR millions) 249 155 — USD/SEK forwards Average contract price 11.06 10.90 10.83 Position (SEK millions) 1,302 922 758 Expired in Expiring throughout: Foreign currency zero cost collar contracts 2023 2024 2025 USD/BRL collars Average contract price 5.00/6.40 5.00/6.40 5.05/6.06 Position (BRL millions) 1,142 974 391 USD/CLP collars Average contract price 885/1,035 859/1,016 808/969 Position (CLP millions) 285,987 253,947 152,584 USD/CAD collars Average contract price 1.34/1.38 1.30/1.40 — Position (CAD millions) 36 19 — USD/SEK collars Average contract price — 10.35/11.15 — Position (SEK millions) — 396 — Subsequent to December 31, 2023, the Company entered into CLP 171 billion of CLP zero cost collar contracts with a collar range of CLP 900 to CLP 1,072 expiring throughout 2026. LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 45 - ===== SIDA 96 ===== In April 2023, the Company entered into forward swap contracts intended to limit exposure to changes in the price of diesel fuel purchases at Candelaria. Expired in Expiring throughout: Diesel forward swap contracts 2023 2024 2025 Average contract price ($/L) 0.690 0.667 — Position (USD millions) 28 27 — The Company’s net unrealized and realized (loss)/gain on foreign currency and diesel derivative contracts are as follows: 2023 2022 Unrealized (loss)/gain on derivative financial instruments: Foreign currency contracts $ (21,036) $ 62,971 Diesel forward swap contracts (896) — (21,932) 62,971 Realized gain on derivative financial instruments: Foreign currency contracts 47,926 5,980 Diesel forward swap contracts 1,786 — 49,712 5,980 Total unrealized and realized gain on derivative contracts: $ 27,780 $ 68,951 A summary of the fair values of unsettled derivative contracts recorded on the consolidated balance sheet is as follows: December 31, 2023 December 31, 2022 Foreign currency contracts: Current asset position $ 38,114 $ 43,521 Non-current asset position 9,397 25,111 Current liability position 1,124 — Non-current liability position 3,148 5,524 Diesel forward swap contracts: Current liability position 896 — Other contracts: Chapada derivative current liability 24,369 24,423 Chapada derivative non-current liability — 22,352 During 2023, the Company paid the fourth $25.0 million tranche of the derivative liability related to the Chapada acquisition (Note 24). LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 46 - ===== SIDA 97 ===== Fair values of financial instruments The Company’s financial assets and financial liabilities have been classified into categories that determine their basis of measurement. The following table shows the carrying values, fair values and fair value hierarchy of the Company’s financial instruments as at December 31, 2023 and December 31, 2022: December 31, 2023 December 31, 2022 Level Carrying value Fair value Carrying value Fair value Financial assets Fair value through profit or loss Restricted funds 1 $ 59,979 $ 59,979 $ 50,195 $ 50,195 Trade receivables (provisional) 2 605,644 605,644 403,300 403,300 Marketable securities, and debt & equity investments 1 14,268 14,268 12,075 12,075 Foreign currency contracts 2 47,511 47,511 68,632 68,632 Caserones purchase option (Note 3) 3 44,438 $ 44,438 — — $ 771,840 $ 771,840 $ 534,202 $ 534,202 Financial liabilities Amortized cost Debt 3 $ 1,208,600 $ 1,208,600 $ 170,162 $ 170,162 Fair value through profit or loss Pricing provisions on concentrate sales 2 $ 1,840 $ 1,840 $ 5,006 $ 5,006 Chapada derivative liability 2 24,369 24,369 46,775 46,775 Caserones deferred consideration (Note 3) 2 116,210 116,210 — — Foreign currency contracts 2 4,272 4,272 5,524 5,524 Diesel forward swap contracts 2 896 896 — — $ 147,587 $ 147,587 $ 57,305 $ 57,305 Fair values of financial instruments are determined by valuation methods depending on hierarchy levels as defined below: Level 1 – Quoted market price in active markets for identical assets or liabilities. Level 2 – Inputs other than quoted market prices included within Level 1 that are observable for the assets or liabilities, either directly (i.e. observed prices) or indirectly (i.e. derived from prices). Level 3 – Inputs for the assets or liabilities are not based on observable market data. The Company calculates fair values based on the following methods of valuation and assumptions: Marketable securities/debt and equity investments/restricted funds – The fair value of investments in shares and bonds is determined based on the quoted market price. Trade receivables/pricing provisions on concentrate sales – The fair value of trade receivables that contain provisional pricing sales arrangements are valued using quoted forward market prices. The Company recognized negative pricing adjustments of $95.4 million in revenue during the year ended December 31, 2023 (2022 - $89.0 million negative pricing adjustments). LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 47 - ===== SIDA 98 ===== Foreign currency and diesel forward swap contracts – The fair value of these derivatives are determined by the counterparties to the contracts and are assessed by Management using pricing models based on active market prices. Caserones purchase option – The fair value of the Caserones purchase option is determined using a valuation model that incorporates such factors as the mine's discounted cash flow projections, metal price volatility, expiry date, and risk-free interest rate. Chapada derivative liability – The fair value of this derivative is determined using a valuation model that incorporates such factors as metal prices, metal price volatility, expiry date, and risk-free interest rate. Caserones deferred consideration – The fair value of the Caserones deferred consideration has been discounted at the estimated credit adjusted risk free rate applicable to future payments. Debt – The fair values approximate carrying values as the interest rates are comparable to current market rates. The carrying values of certain financial instruments maturing in the short-term approximate their fair values. These financial instruments include cash and cash equivalents, trade and other receivables other than those provisionally priced, and trade and other payables other than those provisionally priced, which are classified as amortized cost. 24. COMMITMENTS AND CONTINGENCIES a) The Company has capital commitments of $461.3 million on various initiatives, of which $265.9 million is expected to be paid during 2024. b) The Chapada acquisition included contingent consideration of up to $125.0 million payable over five years from the acquisition date if certain gold price thresholds are met. The Company paid $25.0 million tranches in each of 2020, 2021, 2022, and 2023. The maximum remaining contingent consideration is $25.0 million over the next year as follows: • a $10.0 million payment if the gold price averages at least $1,350/oz in the annual period, • a $10.0 million payment if the gold price averages at least $1,400/oz in the annual period, • a $5.0 million payment if the gold price averages at least $1,450/oz in the annual period. As part of the Chapada acquisition, the Company has been provided with an indemnity for any tax liabilities that may arise for periods prior to the date of the acquisition. For identified tax claims existing at the date of acquisition, the Company has agreed to be liable for up to the first $21.0 million (BRL 101.5 million). While it is uncertain, no material liabilities have been accrued as the Company believes material payment is not likely due to the nature of the tax claims. c) The following summarizes total tax exposure under two contradictory assessments received from the Chilean Internal Revenue Service (“IRS”). Given that the assessments relate to the same issue, the Company’s potential exposure is expected to be limited to one of the below scenarios: i) For taxation years 2014 through 2019, the IRS issued tax assessments denying tax deductions related to interest expenses arising from an intercompany debt. The total of all assessments amounts to $265.3 million ($145.6 million in taxes plus interest and penalties of $119.7 million). If the Company loses the dispute, it may be liable for an additional $69.8 million in accrued interest as of December 2023. All tax refunds arising from the tax deductions related to the intercompany debt have been received up to December 2023. The Company maintains its position that the assessments are inconsistent with Chilean tax law and, therefore, without merit. ii) On the same intercompany debt for taxation years 2016 through 2019, the Company has also received assessments from the IRS seeking additional withholding taxes, including interest and penalties, on interest LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 48 - ===== SIDA 99 ===== payments made. The total of all assessments amounts to $246.6 million ($114.2 million in taxes plus interest and penalties of $132.4 million). The Company may be liable for an additional $70.3 million in accrued interest as of December 2023, should it lose the tax dispute. The Company believes it has applied the correct withholding tax rate according to the Canada-Chile tax treaty. The Company has filed claims against the tax assessments related to taxation years 2014 to 2019. No tax expense has been accrued for these assessments as the Company believes its original filing position is in compliance with tax regulations and intends to vigorously defend its position. The Company does not expect further assessments to be issued related to this tax matter as the intercompany loan was amended in 2020 with an interest rate accepted by the IRS. d) I n July 2022, a sinkhole was detected near the Company's Ojos del Salado operations in Chile. In October 2022, the Company received an infraction notice from the environmental regulators covering four alleged violations of its environmental permit for the Alcaparrosa underground mine, which forms part of the Company's Ojos del Salado operations. The Company has responded to the infraction notice and is working with the regulatory agencies to resolve this matter. e) The Company may be involved in legal proceedings arising in the ordinary course of business, including the actions described below. The potential amount of the liability with respect to such legal proceedings is not expected to materially affect the Company’s financial position. The Company believes the claims to be without merit and the loss, if any, cannot be determined at this time for all contingencies. The Company has accordingly not accrued any amounts related to the litigations below (unless otherwise noted). The Company intends to vigorously defend these claims. Two proposed class actions were filed against the Company and certain officers and directors. The first, in the province of Ontario, on December 7, 2017 (Markowich v. Lundin Mining Corporation et al) and a second overlapping action in the province of Québec on January 18, 2018 (Prévreau v. Lundin Mining Corporation et al). Both proposed class actions seek damages of $132.3 million (C$175.0 million) and punitive damages of $7.6 million (C$10.0 million) and assert various statutory and other claims related to, among other things, alleged misrepresentations and/or failure to make timely disclosure of material information about the Company’s business and operations and, in particular, the operations of the Candelaria Mine and a rock slide at the Candelaria Mine on October 31, 2017. The proposed Ontario class action asserts claims on behalf of a putative class comprising persons who acquired securities of the Company between October 25, 2017, and November 29, 2017, whereas the proposed Québec class action asserts claims on behalf of only such persons who are resident or domiciled in Québec. In June 2018, counsel to the plaintiffs in the Québec action agreed to a stay (i.e., indefinite cessation) of that proceeding in light of the Ontario action. On August 30, 2018, the Québec Superior Court, on consent of the parties, stayed the Québec action indefinitely. On September 2, 2020, the plaintiff in the Ontario action served motion materials for leave and certification with the Ontario Superior Court of Justice. On January 6, 2022, the Ontario Superior Court of Justice denied the leave application and declined the motion for certification. On May 24, 2023, the Ontario Court of Appeal granted the plaintiff’s appeal of this decision. In August 2023, the defendants filed an application for leave to appeal the Ontario Court of Appeal decision to the Supreme Court of Canada. A decision on the Supreme Court of Canada leave application is expected in the first half of 2024. 25. SEGMENTED INFORMATION The Company is engaged in mining, exploration and development of mineral properties at six operating sites located in Chile, Brazil, USA, Portugal, and Sweden, and at the Josemaria Project located in Argentina. Operating segments are reported in a manner consistent with the internal reporting provided to executive management who act as the chief operating decision-makers. The chief operating decision makers consider the business from a site and project-level perspective. Executive management are responsible for allocating resources and assessing performance of the operating segments. The Company has identified eight reportable segments which include six operating sites, the Josemaria Project, and other corporate office operations. LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 49 - ===== SIDA 100 ===== For the year ended December 31, 2023 Candelaria Caserones Chapada Eagle Josemaria Neves-Corvo Zinkgruvan Other Total Chile Chile Brazil USA Argentina Portugal Sweden Revenue $ 1,329,599 $ 601,775 $ 461,175 $ 350,895 $ — $ 425,042 $ 223,591 $ — $ 3,392,077 Cost of goods sold Production costs (726,493) (404,837) (317,317) (191,704) — (326,677) (115,394) (3,686) (2,086,108) Depreciation, depletion and amortization (272,377) (108,489) (63,480) (52,050) (38) (121,599) (34,124) (1,439) (653,596) Gross profit (loss) 330,729 88,449 80,378 107,141 (38) (23,234) 74,073 (5,125) 652,373 General and administrative expenses — — — — — — — (66,723) (66,723) General exploration and business development (14,589) (622) (10,460) (5,691) (2,751) (7,122) (4,560) (9,897) (55,692) Finance (costs) income (32,214) (7,901) (22,996) (4,336) 18,726 (6,082) (5,188) (42,708) (102,699) Other (expense) income (402) 6,391 6,229 (597) 84,316 2,927 9,818 (4,093) 104,589 Income tax (expense) recovery (135,078) (19,265) 1,888 (2,899) (51,266) 8,690 (10,923) (7,746) (216,599) Net earnings (loss) $ 148,446 $ 67,052 $ 55,039 $ 93,618 $ 48,987 $ (24,821) $ 63,220 $ (136,292) $ 315,249 Capital expenditures $ 380,112 $ 83,880 $ 72,291 $ 22,201 $ 285,893 $ 102,621 $ 53,358 $ 12,761 $ 1,013,117 Total non-current assets1 $ 3,134,028 $ 1,405,852 $ 1,391,417 $ 204,776 $ 1,161,771 $ 1,179,919 $ 280,522 $ 5,097 $ 8,763,382 For the year ended December 31, 2022 Candelaria Chapada Eagle Josemaria Neves-Corvo Zinkgruvan Other Total Chile Brazil USA Argentina Portugal Sweden Revenue $ 1,317,223 $ 477,927 $ 520,472 $ — $ 433,486 $ 292,120 $ — $ 3,041,228 Cost of goods sold Production costs (697,171) (324,096) (193,003) — (329,232) (115,553) (2,303) (1,661,358) Depreciation, depletion and amortization (284,259) (49,865) (79,523) (633) (101,807) (36,739) (1,924) (554,750) Inventory write-down — (62,546) — — — — — (62,546) Gross profit (loss) 335,793 41,420 247,946 (633) 2,447 139,828 (4,227) 762,574 General and administrative expenses — — — — — — (53,879) (53,879) General exploration and business development (15,272) (11,846) (3,564) (100,493) (5,919) (3,221) (4,038) (144,353) Finance (costs) income (27,660) (18,137) (1,954) 1,312 (5,191) (7,677) (4,878) (64,185) Other (expense) income (43,700) (13,930) 266 68,886 36,017 23,883 26,582 98,004 Income tax (expense) recovery (85,270) 27,840 (28,458) — 3,898 (34,413) (18,225) (134,628) Net earnings (loss) $ 163,891 $ 25,347 $ 214,236 $ (30,928) $ 31,252 $ 118,400 $ (58,665) $ 463,533 Capital expenditures $ 389,731 $ 104,711 $ 16,413 $ 171,108 $ 103,186 $ 48,144 $ 9,610 $ 842,903 Total non-current assets1 $ 2,974,567 $ 1,312,488 $ 242,212 $ 902,037 $ 1,148,595 $ 246,131 $ 29,207 $ 6,855,237 1 Non-current assets include long-term inventory, mineral properties, plant and equipment, and goodwill. LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 50 - ===== SIDA 101 ===== 26. RELATED PARTY TRANSACTIONS a) Transactions with associates - The Company may enter into transactions related to its investment in associate. These transactions are entered into in the normal course of business and on an arm’s length basis. b) Key management personnel - The Company has identified its directors and senior officers as its key management personnel. Employee benefits for key management personnel are as follows: 2023 2022 Wages and salaries $ 7,454 $ 7,327 Pension benefits 130 175 Share-based compensation 2,983 2,286 Termination benefits 5,760 1,891 $ 16,327 $ 11,679 c) Other related parties - For the year ended December 31, 2023, the Company incurred $4.9 million (2022 – $nil), for services provided by companies owned by members of key management personnel primarily relating to office rental, renovation, and related services. 27. MANAGEMENT OF FINANCIAL RISK The Company’s financial instruments are exposed to certain financial risks, including credit risk, liquidity risk, foreign exchange risk, commodity price risk and interest rate risk. (a) Credit risk The exposure to credit risk arises through the failure of a customer or another third party to meet its contractual obligations to the Company. The Company believes that its maximum exposure to credit risk as at December 31, 2023 is the carrying value of its trade and other receivables. Concentrate and cathodes produced at the Company’s Candelaria, Caserones, Chapada, Eagle, Neves-Corvo and Zinkgruvan mines is sold to a number of strategic customers with whom the Company has established long-term relationships. Limited amounts of concentrate are occasionally sold to commodity traders, under prevailing market conditions. Payment terms vary and provisional payments are normally received shortly after vessel arrival, in accordance with industry practice, with final settlement up to six months following the date of shipment. Sales to commodity traders are made against secure payment terms such as a letter of credit, pre- payment or payment against scanned shipping documents. Credit worthiness of customers is reviewed by the Company on an annual basis or more frequently, if warranted, and those not meeting certain credit criteria may be asked to make 100% provisional payment up-front or provide an acceptable payment instrument such as a letter of credit. The failure of any of the Company’s strategic customers could have a material adverse effect on the Company’s financial position. For the year ended December 31, 2023, the Company has five customers that individually account for more than 10% of the Company’s total sales. The Company's largest customers represent approximately 18%, 16%, 15%, 13% and 12% of total sales ( 2022 - four customers representing 22%, 18%, 16% and 12% of total sales). With respect to credit risk arising from the other financial assets of the Company, which comprise cash and cash equivalents, restricted funds, marketable securities and equity investments, and foreign currency contracts, the Company’s exposure to credit risk arises from default of the counterparty, with a maximum exposure equal to the carrying amount of these instruments. The Company limits material counterparty credit risk on these assets by dealing with financial institutions with long-term credit ratings with Standard & Poor’s of at least A, or the equivalent thereof with Moody’s, or those which have been otherwise approved. LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 51 - ===== SIDA 102 ===== (b) Liquidity risk The Company has in place a planning and forecasting process to help determine the funds required to support the Company’s normal operating requirements on an ongoing basis. The Company ensures that there is sufficient available capital to meet its short-term business requirements, taking into account its anticipated cash flows from operations and its holdings of cash and cash equivalents. The Company has a revolving credit facility in place to assist with meeting its cash flow needs as required (Note 11). The maturities of the Company’s non-current liabilities are disclosed in Note 11 and Note 24. All current liabilities are due to be settled within one year. (c) Foreign exchange risk The Company operates internationally and is exposed to foreign exchange risk arising from various currencies, primarily with respect to CLP, €, BRL, SEK and ARS. The Company’s risk management strategy is to manage cash flow risk related to foreign denominated cash flows. The Company is exposed to currency risk related to changes in rates of exchange between foreign denominated balances and the functional currencies of the Company’s principal operating subsidiaries. The Company’s revenues are denominated in US dollars, while most of the Company’s operating and capital expenditures are denominated in the local currencies. The Company may, at its discretion, use forward or derivative contracts to manage its exposure to foreign currencies, the use of which is subject to appropriate approval procedures. A significant change in the currency exchange rates between the US dollar and foreign currencies could have a material effect on the Company’s net earnings and other comprehensive income. The following table illustrates the estimated impact a 10% US dollar change against the €, CLP, SEK, and BRL would have on pre-tax earnings as a result of translating the Company's foreign denominated financial instruments as at December 31, 2023 before the impact of derivative contracts: Currency Change Effect on Pre-Tax Earnings Change Effect on Pre-Tax Earnings € +10% $8,126 -10% $(8,126) CLP +10% $(18,322) -10% $18,322 SEK +10% $3,423 -10% $(3,423) BRL +10% $(3,225) -10% $3,225 The impact of a US dollar change against the € and SEK by 10% at December 31, 2023 would have a $37.5 million (2022 - $124.4 million) impact on OCI. (d) Commodity price risk The Company is subject to price risk associated with fluctuations in the market prices for metals. A significant change in metal prices could have a material effect on the Company’s revenues. The Company may, at its discretion, use forward or derivative contracts to manage its exposure to changes in commodity prices, the use of which is subject to appropriate approval procedures. The Company is also subject to price risk on the final settlement of its provisionally priced trade receivables. LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 52 - ===== SIDA 103 ===== The following table illustrates the sensitivity of the Company’s risk on final settlement of its provisionally priced trade receivables: Metal Payable metal Provisional price on December 31, 2023 Change Effect on Revenue ($millions) Copper 117,594 t $3.85/lb +/-10% +/-99.8 Zinc 34,047 t $1.21/lb +/-10% +/-9.1 Gold 30 koz $2,074/oz +/-10% +/-6.2 Nickel 1,263 t $7.46/lb +/-10% +/-2.1 (e) Interest rate risk The Company’s exposure to interest rate risk arises from the interest rate impact on its cash and cash equivalents, restricted funds, and debt facilities. Certain of the Company's debt facilities include a variable rate component such as references to Term SOFR on various term loans and credit facilities, as well as applicable credit spreads depending on the Company's net leverage ratio. The interest rates on the Company’s revolving credit facility and non-revolving term loan reference Term SOFR, and the Somincor commercial paper programs and equipment line of credit reference EURIBOR. As at December 31, 2023, holding all other variables constant, a 1% change in the interest rate would result in an approximate $4.2 million change in interest expense on an annualized basis (2022 - $0.4 million). 28. MANAGEMENT OF CAPITAL RISK The Company’s objectives when managing its capital include ensuring a sufficient combination of positive operating cash flows and debt and equity financing in order to meet its ongoing capital development and exploration programs in a way that maximizes the shareholder return given the assumed risks of its operations while, at the same time, safeguarding the Company’s ability to continue as a going concern. The Company considers the following items as capital: excess cash balances, share capital reserve and debt and lease liabilities. Through the ongoing management of its capital, the Company will modify the structure of its capital based on changing economic conditions in the jurisdictions in which it operates. In doing so, the Company may issue new shares or debt, buy back issued shares, or pay off any outstanding debt. The Company continuously monitors its capital structure to determine the appropriateness of paying dividends. Planning, including life-of-mine plans, annual budgeting and controls over major investment decisions are the primary tools used to manage the Company’s capital. Updates are made as necessary to both capital expenditure and operational budgets in order to adapt to changes in risk factors of proposed expenditure programs and market conditions within the mining industry. 29. SUPPLEMENTARY CASH FLOW INFORMATION 2023 2022 Changes in non-cash working capital items consist of: Trade and income taxes receivable, inventories, and other current assets $ 4,033 $ (52,520) Trade and income taxes payable, and other current liabilities (11,638) (63,536) $ (7,605) $ (116,056) Operating activities included the following cash payments: Income taxes paid $ 106,018 $ 304,232 LUNDIN MINING CORPORATION Notes to consolidated financial statements For the years ended December 31, 2023 and 2022 (Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 53 - ===== SIDA 104 ===== Registered Office 40 Temperance Street, Suite 3200, Toronto ON M5H 0B4 Canada Mailing Address 885 West Georgia Street, Suite 2000, Vancouver, BC V6C 3E8 Tel: +1.604.806.3081 lundinmining.com