FULLTEXT DEL 1 AV 5
Årsredovisning 2025
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2025 Annual Report
December 31, 2025
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Management’s Discussion and Analysis
For the year ended December 31, 2025
This management’s discussion and analysis (“MD&A”) has been prepared as of February 19, 2026 and should be read in
conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2025 (the
"consolidated financial statements"), which were prepared in accordance with International Financial Reporting Standards
as issued by the International Accounting Standards Board (“IFRS Accounting Standards”). 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, SEK is to Swedish kronor and oz
is to troy ounces. "This quarter" or "The quarter" means the fourth quarter ("Q4") of 2025. "This year" or "The year" means
the year ended December 31, 2025. Reference to "discontinued operations" is to Neves-Corvo, Zinkgruvan, and Eagle.
Minor differences may exist between individual figures and totals due to rounding. Rounding differences do not impact the
accuracy of information.
About Lundin Mining
Lundin Mining Corporation (“Lundin Mining” or the “Company”) is a Canadian mining company headquartered in
Vancouver, Canada with three operating mines in Chile and Brazil as well as the Vicuña development asset in Argentina. We
produce copper and other essential metals that support the global megatrends of urbanization, electrification,
digitalization, and advanced technologies. All operations are shown on a 100% basis except for the Vicuña Project, which is
an independently managed joint operation. The Company has included its 50% share of the respective assets, liabilities,
expenses, and cash flows of the Vicuña Project in the consolidated financial statements for the year ended December 31,
2025.
On December 18, 2025, the Company announced that it had entered into a definitive agreement with Talon Metals Corp.
("Talon") to sell its interest in the Eagle mine and Humboldt mill, both located in the United States of America. The
transaction was completed on January 9, 2026. On April 16, 2025, the Company completed the previously announced
transaction to sell its interest in the Neves-Corvo and Zinkgruvan mines located in Portugal and Sweden, respectively. The
results from operations of these three mines are reported as discontinued operations in the Company's consolidated
financial statements and MD&A for all periods presented. As at December 31, 2025, the assets and liabilities of Eagle mine
are reported as held for sale. For further information refer to Note 3 of the consolidated financial statements.
Table of Contents
Highlights ............................................................................................................................................................................. 5
Outlook ................................................................................................................................................................................ 12
Selected Fourth Quarter and Annual Financial Information ............................................................................................... 13
Summary of Quarterly Results ............................................................................................................................................ 15
Revenue Overview ............................................................................................................................................................... 17
Financial Results .................................................................................................................................................................. 19
Mining Operations ............................................................................................................................................................... 23
Vicuña Project ...................................................................................................................................................................... 35
Expansionary Projects ......................................................................................................................................................... 37
Exploration Update .............................................................................................................................................................. 37
Liquidity and Capital Resources ........................................................................................................................................... 38
Non-GAAP and Other Performance Measures .................................................................................................................... 44
Other Information and Advisories ....................................................................................................................................... 55
Outstanding Share Data ...................................................................................................................................................... 58
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Cautionary Statement on Forward-Looking Information
Certain of the statements made and information contained herein are “forward-looking information” within the meaning of applicable Canadian securities laws. All statements
other than statements of historical facts included in this document constitute forward-looking information, including but not limited to statements regarding the Company’s
plans, prospects, business strategies and strategic vision and aspirations and their achievement and timing; the results of the Study on the Vicuña Project, including but not
limited to the Mineral Resource estimate and the parameters and assumptions used to estimate the Mineral Resources, the life of mine, the life of mine plan, commencement of
production, mining methods, production estimates and production profile, processing estimates, mining rates, metal grades and production and recovery rates, costs and
expenditures (including capital, sustaining and operating costs, cash costs and AISC) and the timing thereof, economic metrics and sensitivities, estimated economic results
(including Project economics, economic metrics, financial performance, revenues, cash flows, earnings, NPV and IRR) and the parameters and assumptions used to estimate the
economic results, geological and mineralization interpretations, exploration and development activities, timelines and similar statements relating to the economic viability of the
Vicuña Project, tailings management, infrastructure requirements, development and construction plans (including staged development, Project Stages, sequencing, timing, costs
and the effects and benefits), permitting (including timelines and expected receipts of approvals, consents and permits, and the effects thereof), sanctioning of the Vicuña
Project and the timing thereof, community and social engagement and corporate social responsibility matters, economic, fiscal and other benefits of the Vicuña Project to local
communities, host-countries, shareholders and other stakeholders, and the updated Vicuña Project Technical Report and the timing thereof; project studies (including technical,
environmental and social studies); the RIGI application and the timing and benefits thereof; the size and scale of the Vicuña Project, and the potential for the Vicuña Project to
rank among the top five copper, gold and silver mines globally; the Company’s credit facility and the amendments thereto, including upsizing, expected terms thereof, timing of
execution of definitive documentation, availability of committed amounts, anticipated increases in capacity of the amended credit facility upon satisfaction of conditions and
project milestones, pricing, and the expected maturity date; the use of the credit facility; Vicuña Project funding and the Company’s expectations regarding its funding strategy
and its work with BHP; the Company’s guidance on the timing and amount of future production and its expectations regarding the results of operations; expected financial
performance, including expected earnings, revenue, costs and expenditures and other financial metrics; the Company’s growth and optimization initiatives and expansionary
projects, and the potential costs, outcomes, results and impacts thereof and timing thereof; permitting requirements and timelines; timing and possible outcomes of pending
litigation and disputes, including tax disputes; the results of any Preliminary Economic Assessment, Pre-Feasibility Study, Feasibility Study, or Mineral Resource and Mineral
Reserve estimations, life of mine estimates, and mine and mine closure plans; potential for future Mineral Resource expansion; remediation and reclamation obligations,
including their anticipated costs and timing; anticipated market prices of metals, currency exchange rates and interest rates; the Company’s shareholder distribution policy,
including with respect to share buybacks and the payment and amount of dividends and the timing thereof; the development and implementation of the Company’s Responsible
Mining Management System; the Company’s liquidity, contractual obligations, commitments and contingencies, and the Company’s capital resources and adequacy thereof; the
Company’s tax obligations; the Company’s ability to comply with contractual and permitting or other regulatory requirements; expected labour stability and operational
efficiency resulting from the renewed union agreements at Candelaria; anticipated exploration and development activities, including potential outcomes, results, impacts and
timing thereof; the Company’s integration of acquisitions and expansions and any anticipated benefits thereof, including the anticipated project development and associated
costs and timing, and other plans and expectations with respect to the Vicuña Project and the 50/50 joint arrangement with BHP; the operation of Vicuña with BHP; the
realization of synergies and economies of scale in the Vicuña district; the timing and expectations for future regulatory applications (including the RIGI application), studies and
technical reports with respect to the Company’s operations and projects, including the Vicuña Project and the Saúva Project; the potential for resource expansion; the terms of
the contingent payments in respect of the completion of the sale of the Company’s European and US assets and expectations related thereto; and expectations for other
economic, business, and/or competitive factors. Words such as “believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “goal”, “aim”, “intend”, “continue”, “budget”,
“estimate”, “may”, “will”, “can”, “could”, “should”, “schedule” and similar expressions identify forward-looking information.
Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation, the expectations and beliefs of management, including
with respect to the Company’s business, operations, strategies and growth and expansion plans; that no significant event will occur outside of the Company’s normal course of
business and operations (other than as set out herein); assumed and future prices of copper, gold, silver and other metals; anticipated costs; commodity prices; currency
exchange rates and interest rates; ability to achieve goals; the prompt and effective integration of acquisitions and the realization of synergies and economies of scale in
connection therewith; that the political, economic, permitting and legal environment in which the Company operates will continue to support the development and operation of
mining projects; timing and receipt of governmental, regulatory and third party approvals, consents, licenses and permits (including the RIGI application) and their renewals; the
geopolitical, economic, permitting and legal climate that the Company operates in; legal and regulatory requirements; positive relations with local groups; sanctioning,
construction, development, commissioning and ramp-up timelines; access to sufficient infrastructure (including water and power), equipment and labour; the accuracy of
Mineral Resource and Mineral Reserve estimates and related information, analyses and interpretations; assumptions underlying life-of-mine plans; geotechnical and
hydrogeological conditions; assumptions underlying economic analyses (including economic analysis of the Study); the Company’s ability to comply with contractual and
permitting or other regulatory requirements; operating conditions, capital and operating cost estimates; production and processing estimates; the results, costs and timing of
future exploration activities; economic viability of the Company’s operations and development projects; the Company’s ability to satisfy the terms and conditions of its debt
obligations; the adequacy of the Company’s financial resources, and its ability to raise any necessary additional capital on reasonable terms; favourable equity and debt capital
markets; stability in financial capital markets; the completion of the amended credit facility on the terms anticipated or at all; the timing of satisfaction of conditions precedent
to and the Company’s ability to meet the conditions of the amended credit facility; the ability of the Company to access committed amounts under its credit facility; the
successful sanctioning, permitting and development of the Company’s Projects (including the Vicuña Project) and commencement of production; successful completion of the
Company’s projects and initiatives (including the Vicuña Project) within budget and expected timelines; and such other assumptions as set out herein, in the Vicuña Project
Technical Report when filed, and in other applicable public disclosure documents of the Company, as well as those 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, such information is inherently subject to significant business, social, economic, political, regulatory, competitive and other risks, uncertainties and
contingencies that could cause actual actions, events, conditions, results, performance or achievements to be materially different from those projected in the forward-looking
information. The Company cautions that the foregoing list of assumptions is not exhaustive. Known and unknown factors could cause actual results to differ materially from
those projected in the forward-looking information and undue reliance should not be placed on such information. Such factors include, but are not limited to: dependence on
international market prices and demand for the metals that the Company produces; political, economic, and regulatory uncertainty in 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; uncertainty with respect to the fiscal, geopolitical, economic, permitting and legal climate that the Company operates in; risks related to the RIGI
application, including if the Project is not designated under the RIGI PEELP regime in a timely manner or at all, or if the RIGI regime does not function as expected and risks
arising from such circumstances; risks relating to mine closure and reclamation obligations; health and safety hazards; inherent risks of mining, not all of which related risk
events are insurable; geotechnical incidents; risks relating to the development, permitting, construction, commissioning and ramp-up of the Company’s projects and operations
(including the Vicuña Project); risks relating to tailings and waste management facilities; risks relating to the Company’s indebtedness; risks relating to project financing; the
Company’s ability to access capital on acceptable terms if at all; risks related to the credit facility amendment commitments, including the Company’s ability to satisfy conditions
to access additional tranches; risks relating to dividend payments to shareholders in the future; challenges and conflicts that may arise in partnerships and joint operations,
including risks relating to the Company’s partnership with BHP and risks associated with joint venture governance, the ability to reach timely decisions on material matters
affecting the Vicuña Project, and the ability to fund cash calls when due; risks relating to development projects; risks that revenue may be significantly impacted in the event of
any production stoppages or reputational damage in Chile, Brazil or Argentina; reputational risks related to negative publicity with respect to the Company, its joint venture
partner or the mining industry in general; the impact of global financial conditions, market volatility and inflation; pricing and availability of key supplies, equipment, labour and
services; business interruptions caused by critical infrastructure failures; challenges of effective water management; exposure to greater foreign exchange and capital controls,
as well as political, social and economic risks as a result of the Company’s operation in emerging markets; risks relating to stakeholder opposition to continued operation, further
development, or new development of the Company’s projects and mines; any breach or failure of information systems; risks relating to reliance on estimates of future
production; risks relating to litigation and administrative proceedings which the Company may be subject to from time to time (including tax disputes); risks relating to
acquisitions or business arrangements; risks relating to competition in the industry; failure to comply with existing or new laws or changes in laws; challenges or defects in title or
termination of mining or exploitation concessions; the exclusive jurisdiction of foreign courts; the outbreak of infectious diseases or viruses; risks relating to taxation changes;
receipt of and ability to maintain all permits that are required for operation; minor elements contained in concentrate products; changes in the relationship with its employees
and contractors; the Company’s Mineral Reserves and Mineral Resources which are estimates only; uncertainties relating to Inferred Mineral Resources being converted into
Measured or Indicated Mineral Resources; compliance with environmental, health and safety laws and regulations, including changes to such laws or regulations; interests of
significant shareholders of the Company; asset values being subject to impairment charges; potential for conflicts of interest and public association with other Lundin Group
companies or entities; activist shareholders and proxy solicitation firms; risks associated with climate change; the Company’s common shares being subject to dilution; ability to
attract and retain highly skilled employees; reliance on key personnel and reporting and oversight systems; risks relating to the Company’s internal controls; potential for the
allegation of fraud and corruption involving the Company, its respective customers, suppliers or employees, or the allegation of improper or discriminatory employment
practices, or human rights violations; counterparty and customer concentration risk; risks associated with the use of derivatives; exchange rate fluctuations; the terms of
contingent payments in respect of the completion of the sale of the Company’s European assets and expectations related thereto; and other risks and uncertainties, including
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but not limited to those described in the “Risks and Uncertainties” section of this MD&A, and the “Risks and Uncertainties” section of the Company’s latest Annual Information
Form, which are available on SEDAR+ at www.sedarplus.ca under the Company’s profile.
All of the forward-looking information in this document is qualified by these cautionary statements. Although the Company has attempted to identify important factors that
could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated,
estimated, forecasted or intended and readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Should one or
more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking
information. Accordingly, there can be no assurance that forward-looking information will prove to be accurate and forward-looking information is not a guarantee of future
performance. Readers are advised not to place undue reliance on forward-looking information. The forward-looking information contained herein speaks only as of the date of
this document. The Company disclaims any intention or obligation to update or revise forward-looking information or to explain any material difference between such and
subsequent actual events, except as required by applicable law.
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Highlights
For the year ended December 31, 2025, the Company generated record revenue from continuing operations of $4,053.2
million (2024 - $3,270.1 million). Revenue in 2025 benefitted from increased realized copper and gold prices, combined
with production of 322,326 tonnes of copper, and 141,859 ounces of gold from continuing operations. In addition, Eagle
contributed 8,906 tonnes of copper, which successfully contributed to the Company meeting the most recent annual
copper production guidance and exceeding the upper end of the original annual copper production guidance. Annual gold
production guidance was also met during the period.
Net earnings from continuing operations in 2025 of $1,417.7 million (2024 - $267.6 million) benefitted from solid gross
profit generation and from a non-cash deferred tax recovery of $517.0 million due to an additional deferred tax asset
recognized at Caserones for tax loss carryforwards. Net earnings were partially offset by a $99.9 million ($65.9 million net of
tax) non-cash write down of long-term ore stockpile inventory at Chapada as a result of mine plan changes deprioritizing
the timing of processing of stockpiles. Excluding write-downs and other items, s trong annual production in 2025 resulted in
adjusted earnings1 - continuing operations of $687.9 million (2024 - $294.9 million) and record a djusted EBITDA1 -
continuing operations of $1,917.1 million (2024 - $1,426.9 million).
In 2025, cash provided by operating activities from continuing operations was $1,207.9 million (2024 - $1,311.4 million).
Operating cash flow benefitted from higher gross profit offset by a significant negative working capital build of $414.0
million during the year (2024 - positive working capital release of $221.7 million). Excluding working capital movements,
adjusted operating cash flow1 - continuing operations increased to $1,621.9 million, compared to $1,089.9 million in the
prior year comparable period.
The fourth quarter was the Company's best quarter for the year aided by elevated metal prices and improved copper sales
volume. The Company generated the highest quarterly revenue in its history, which included revenue from continuing
operations of $1,301.5 million (Q4 2024 - $833.3 million). Net earnings from continuing operations for the quarter was
$912.3 million (Q4 2024 - net loss $59.8 million) as a result of strong gross profit and was positively impacted by a $517.0
million non-cash deferred tax recovery at Caserones, partially offset by $99.9 million ($65.9 million net of tax) for the write-
down of the long-term ore stockpile inventory at Chapada . Adjusted earnings1 - continuing operations for the quarter was
$363.7 million (Q4 2024 - $102.9 million) and a djusted EBITDA1 - continuing operations for the quarter was $686.4 million
(Q4 2024 - $366.5 million).
On February 16, 2026, the Company announced the results of an integrated technical study for the Vicuña Project (the
Preliminary Economic Assessment “PEA” or "Study"), including an updated Mineral Resource estimate for the Vicuña
Project (the "Updated Vicuña Mineral Resource"). The Study highlights a development project with the potential to rank
among the top five copper, gold, and silver mines globally.
On January 9, 2026, the Company completed the sale of its Eagle operation to Talon. Under the terms of the agreement, the
Company received 275.2 million common shares of Talon which, along with the Company's existing 1.57% interest in Talon,
resulted in the Company owning 19.86% of the issued and outstanding common shares of Talon on completion of the
transaction. In addition, the Company and Lundin Mining US Ltd. (“Lundin Mining US”; the entity that indirectly holds the
Eagle mine and Humboldt mill and that was sold to Talon) entered into a Production Payment Agreement (the “Eagle PPA”)
pursuant to which Lundin Mining US will make ore delivery payments of $1.00 per metric tonne of non-Eagle ore processed
through the Humboldt mill to the Company until the aggregate ore delivery payments equal $20.0 million.
On April 16, 2025, the Company completed the sale of its European operations, Neves-Corvo and Zinkgruvan, to Boliden AB
("Boliden"). At closing, Lundin Mining received cash consideration of $1,402.0 million ($1,314.6 million, net of cash disposed
and transaction costs). In connection with the transaction, the Company may be entitled to future contingent payments of
up to $150.0 million if certain metal price thresholds are met. Upon completion of the sale, the Company recognized a net
gain on disposal of $106.4 million. Subsequent to closing, t he Company recognized a revaluation gain of $47.0 million on
the contingent consideration, which includes a realized and unrealized gain of $5.5 million and $41.5 million, respectively.
Using the proceeds from the sale, the Company repaid the outstanding balance of the term loan ($1,150.0 million). At
December 31, 2025, the Company had net cash1 of $77.4 million (December 31, 2024 - net debt of $1,332.4 million).
On January 15, 2025, the Company and BHP Investments Canada Inc. ("BHP") completed the acquisition of Filo Corp. ("Filo")
through a plan of arrangement and concurrently formed a 50/50 joint arrangement, Vicuña Corp. (the "Joint Arrangement"
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1 This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
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or “Vicuña”), holding the Josemaria project in Argentina and the Filo del Sol project in Argentina and Chile, collectively the
("Vicuña Project"). On completion, BHP paid Lundin Mining a cash consideration of $689.5 million for a 50% interest in the
Josemaria project and Lundin Mining paid $610.7 million (C$877.8 million) in cash and issued 94.1 million Lundin Mining
shares to Filo shareholders for its 50% interest in Filo. As a result of these transactions, net cash provided to the Company
was $78.8 million on the formation of Vicuña. The Company accounts for Vicuña as a joint operation and accordingly
records its 50% share of the assets, liabilities, revenue, expenses and cash flows.
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Operational Performance
Candelaria (80% owned): Candelaria produced, on a 100% basis, 145,471 tonnes of copper, 80,528 ounces of gold and 1.8
million ounces of silver during the year. Annual copper and gold production in 2025 was within the most recent guidance
ranges. During the year, mining in the open pit was focused on Phase 11 with some contribution from higher grade areas of
Phase 12. Production continued to benefit from higher throughput at the mill due to softer ore feed and finer ore size.
Consistent with the mine plan, realized grades during the year were lower than the prior year, which led to lower
production. Copper cash cost1 of $1.92/lb was within the most recent cash cost guidance range and benefitted from higher
metal prices for by-product credits and was impacted by the lower average grades during the year. During the fourth
quarter, early renewals of labour agreements were completed with five unions at Candelaria. The agreements are each for
three-year terms and expire in 2029, replacing agreements expiring during 2026. The proactive early renewal of these
agreements will contribute to labour stability and operational efficiency at Candelaria in the medium term.
Caserones (70% owned): Caserones produced, on a 100% basis, 132,881 tonnes of copper and 2,082 tonnes of
molybdenum. Annual production for copper was at the top-end of the most recent production guidance range and fourth
quarter copper production was the highest since the mine was acquired by the Company in mid-2023. Mining during the
year focused on Phase 6 and copper production benefitted from higher throughput and recoveries. Copper cathode
production during the year benefitted from increased material placed on the dump leach in previous periods. Copper cash
cost of $2.17/lb was within the low-end of the most recent production guidance range and benefitted from strong
production as a result of higher throughput and recoveries, reduced treatment charges, and reduced labour expenses.
Chapada (100% owned): Chapada produced 43,974 tonnes of copper and approximately 61,331 ounces of gold during the
year. Production for both metals were within the most recent production guidance ranges. Mining in the year primarily
focused on ore from South and North pits in line with the planned mine sequencing. Annual copper production benefitted
from higher throughput. Gold production in the year was negatively impacted by reduced grades and recoveries relative to
2024. Copper cash cost of $0.75/lb was below the low end of the most recent guidance range and benefitted from
increased by-product credits as a result of higher realized gold prices.
Eagle (100% owned): Eagle produced 9,907 tonnes of nickel and 8,906 tonnes of copper during the year. The ramp
rehabilitation in Eagle East was completed in the first quarter of the year, allowing mining and processing activities to return
to normal levels. Annual nickel production in 2025 was within the most recent production guidance range, while annual
copper production was just below the low end of the most recent guidance range but was within the original guidance
range. Nickel cash cost1 of $2.55/lb benefitted from higher throughput and improved recoveries. Annual cash cost per
pound1 for the year exceeded the high end of the most recent production guidance range. Eagle results are reported as
discontinued operations in the Company's consolidated financial statements and MD&A. As at December 31, 2025, the
assets and liabilities of Eagle mine are reported as held for sale.
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1 This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
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2025 Production, Cash Cost and Capital Expenditure Summary
Total 2025 production, cash costs and capital expenditures are compared to the most recent 2025 guidance as follows:
Production Cash Cost ($/lb)1
Actual Guidance2
Original
Guidance3 Actual Guidance2
Original
Guidance3
Copper (t) Candelaria (100%) 145,471 143,000 - 149,000 140,000 - 150,000 1.92 1.80 – 2.00 1.80 – 2.00
Caserones (100%) 132,881 127,000 - 133,000 115,000 - 125,000 2.17 2.15 – 2.25 2.40 – 2.60
Chapada 43,974 40,000 - 45,000 40,000 - 45,000 0.75 0.90 – 1.00 1.80 – 2.00
Eagle 8,906 9,000 - 10,000 8,000 - 10,000
Total 331,232 319,000 - 337,000 303,000 - 330,000 1.87 1.85 – 2.00 2.05 – 2.30
Gold (oz) Candelaria (100%) 80,528 78,000 - 84,000 78,000 - 88,000
Chapada 61,331 57,000 - 62,000 57,000 - 62,000
Total 141,859 135,000 - 146,000 135,000 - 150,000
Nickel (t) Eagle 9,907 9,000 - 11,000 8,000 - 11,000 2.55 2.30 – 2.40 3.05 – 3.25
2025 Capital Expenditure4
($ millions) Actual Guidance2
Original
Guidance3
Candelaria (100%) 224.4 205.0 205.0
Caserones (100%) 156.3 180.0 215.0
Chapada 96.8 100.0 85.0
Eagle 21.3 25.0 25.0
Other5 0.3 — —
Total Sustaining Capital 499.1 510.0 530.0
Expansionary - Candelaria (100% basis) 21.6 25.0 50.0
Expansionary - Chapada 2.4 — —
Expansionary - Vicuña (50% basis) 167.2 215.0 155.0
Total Capital Expenditures 690.3 750.0 735.0
1 Cash cost is a non-GAAP measure - see Section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
2 Guidance as disclosed in the Company's MD&A for the three and nine months ended September 30, 2025.
3 Original Guidance as disclosed in the Company's MD&A for the year ended December 31, 2024.
4 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.
5 Other represents capital expenditures related to corporate information technology systems and infrastructure that are not directly attributable to a
specific mining operation.
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Corporate Updates
• On February 18, 2026, the Company reported its Mineral Resource and Mineral Reserve estimates as of December 31,
2025, or as otherwise specified. An updated Chapada technical report, including the Saúva project, is expected to be
released in the second half of 2026.
• On February 16, 2026, the Company announced the results of an integrated technical study for the Vicuña Project
including the Updated Vicuña Mineral Resource. The PEA highlights a development project with the potential to rank
among the top five copper, gold, and silver mines globally.
• On February 12, 2026, the Company announced the receipt of commitments from 17 lenders to upsize and amend its
existing revolving credit facility ("RCF"), increasing the total committed amount from $1.75 billion to $4.5 billion with
the Company initially having access to $2.25 billion. Upon satisfaction of certain conditions, the RCF will expand to $3.5
billion, and upon sanctioning Stage 1 of the Vicuña Project, will increase to the full $4.5 billion. In addition, the maturity
date has been extended to 2031. Once amended, the RCF will bear interest on a sliding scale of adjusted term SOFR
plus a margin of 1.45% to 2.50%.
• On January 9, 2026, the Company announced the completion of the sale of its subsidiary Lundin Mining US which
indirectly holds the Eagle mine and Humboldt mill to Talon in exchange for 275.2 million Talon shares which, together
with shares previously held by the Company, represents approximately 19.86% of the issued and outstanding shares of
Talon. In addition, the Company and Lundin Mining US entered into the Eagle PPA, pursuant to which Lundin Mining US
will make ore delivery payments of $1.00 per metric tonne of non-Eagle ore processed through the Humboldt mill to
the Company until the aggregate ore delivery payments equal $20.0 million. At closing, the Board of Directors of Talon
was reconstituted to be comprised of ten directors with two nominees from the Company.
• On December 11, 2025, the Company announced that Vicuña has submitted an application for the inclusion of the
Josemaria and Filo del Sol deposits to the Incentive Regime for Large Investments (“RIGI”) under the Long-Term
Strategic Export Projects designation (“PEELP”) in Argentina. Argentina’s RIGI regime is designed to attract and
accelerate large-scale investment through long-term fiscal stability and transparent regulatory conditions.
• On November 28, 2025, the Company announced that it has received a ruling from its appeal to the Supreme Court of
Canada. The ruling upholds the 2023 Ontario Court of Appeal decision allowing a proposed securities class action to be
commenced relating to the timing of disclosure of a 2017 pit wall instability and rockslide at the Candelaria Mine in
Chile. The certified class action can now proceed before the Ontario Superior Court of Justice. There has been no
decision on the merits of the case, and the Company intends to vigorously defend the case.
• On June 16, 2025, the Company announced the filing of a technical report entitled “NI 43-101 Technical Report on the
Vicuña Project, Argentina and Chile”, with an effective date of April 15, 2025 (the "Vicuña Technical Report"). On May
4, 2025, the Company announced an initial Mineral Resource estimate for the Filo del Sol sulphide deposit, an update
to the Mineral Resource estimate for the Filo del Sol oxide deposit and an update to the Mineral Resource estimate for
the Josemaria deposit (collectively referred to as the “Vicuña Mineral Resource”), which highlighted the combined
Vicuña Project as one of the largest copper, gold and silver resources in the world. The Vicuña Technical Report,
including the Mineral Resource estimate set out therein, is superseded by the Updated Vicuña Mineral Resource
announced by the Company on February 16, 2026 and an updated technical report that will be filed under the
Company’s profile on SEDAR+ at www.sedarplus.ca.
• On May 26, 2025, the Company announced the publication of its 2024 Sustainability Report which highlights the
Company’s environmental, health & safety, governance and social performance during the year. In 2024, the Company
advanced key greenhouse gas emission reduction initiatives, fully conformed to the Global Industry Standard on
Tailings Management (GISTM) at Caserones' tailings facility, invested approximately $6.6 million in communities, and
had its second-best year on record in terms of Total Recordable Injury Frequency and All Injury Frequency.
• On April 16, 2025, the Company announced the completion of the sale of its Neves-Corvo operation in Portugal and
Zinkgruvan operation in Sweden to Boliden. At closing, Lundin Mining received cash consideration of $1,402.0 million
($1,314.6 million, net of cash disposed and transaction costs). The Company may also receive up to $150.0 million in
contingent cash consideration if certain metal price thresholds are met. The Company used a portion of the cash
proceeds to repay in full the $1,150.0 million outstanding balance of its term loan, previously maturing in 2027.
9
===== SIDA 10 =====
• On March 26, 2025, the Company announced that its Board of Directors amended the shareholder distribution policy to
increase the level of share buybacks while adjusting the dividend to maintain the total amount returned to
shareholders annually. As part of this strategy, the Company adjusted its quarterly dividend from C$0.09 per share to
C$0.0275 per share while allocating up to approximately $150 million per annum in share buybacks through the
Company’s normal course issuer bid program ("NCIB"). If the Company allocates less than $150 million in share
buybacks in a calendar year, the shortfall will be distributed as a special dividend. If applicable, the special dividend will
be paid alongside the regular fourth quarter dividend. During 2025, the Company repurchased 15,088,180 shares for
$150.0 million in connection with the amended shareholder distribution policy.
• On February 19, 2025, the Company announced the appointment of Ms. Victoria McMillan to the Company's Board of
Directors effective the same date. The Company also announced the retirement of Director Ms. Juliana Lam effective as
at the 2025 annual general meeting of shareholders on May 8, 2025.
• On January 30, 2025, the Company announced that it received notice from the Superintendencia del Medio Ambiente
("SMA") following investigative proceedings involving the sinkhole that occurred at the Alcaparrosa mine located in the
Candelaria complex in 2022. The notice levied a fine of $3.3 million and ordered the continued closure of the
Alcaparrosa mine, based on four violations investigated. On September 7, 2025, the Company announced that it
received notice regarding the decision on the civil claim brought by the Chilean State Defense Council against Lundin
Mining’s subsidiary, Minera Ojos del Salado (“Ojos del Salado”), related to the sinkhole. The decision requires Ojos del
Salado to implement remediation activities on the impacted area and to implement water infrastructure projects to
strengthen rural potable water and wastewater systems in communities surrounding the mine. Mining operations at
Alcaparrosa have been suspended since the incident occurred in 2022 while operations at the Candelaria mine
continue unaffected.
• On January 15, 2025, the Company and BHP completed the joint acquisition of all of the issued and outstanding
common shares of Filo not already owned by Lundin Mining, BHP and their respective affiliates (the “Filo Acquisition”).
Concurrently, Lundin Mining and BHP formed Vicuña. On completion, BHP paid Lundin Mining a cash consideration of
$689.5 million for a 50% interest in the Josemaria project and Lundin Mining paid $610.7 million (C$877.8 million) in
cash and 94.1 million Lundin Mining shares to Filo shareholders for its 50% interest in Filo.
Financial Performance
• Gross profit from continuing operations for the year of $1,398.0 million was $462.2 million higher than the prior year
comparable period of $935.8 million. The increase was primarily due to higher realized copper and gold prices, lower
treatment charges, and higher sales volumes at Caserones partially offset by a non-cash long-term ore stockpile
inventory write-down at Chapada of $99.9 million ($65.9 million net of tax).
• Net earnings from continuing operations in the year of $1,417.7 million was higher than in the prior year comparable
period of $267.6 million primarily due to an increase in gross profit and a deferred tax recovery at Caserones of $517.0
million. The prior year period was also negatively impacted by non-cash impairments totalling $149.4 million.
• Adjusted earnings1 - continuing operations in the year of $687.9 million increased from $294.9 million as a result of
higher gross profit.
• Cash provided by operating activities related to continuing operations in the year of $1,207.9 million decreased from
the prior year comparable period of $1,311.4 million primarily due to a build of working capital of $414.0 million (2024
- working capital release of $221.7 million) partially offset by higher gross profit.
• Adjusted operating cash flow 1 - continuing operations in the year of $1,621.9 million was higher than in the prior year
comparable period of $1,089.9 million primarily due to an increase in gross profit.
• In the year, sustaining capital expenditures 2 from continuing operations of $477.8 million were lower than in the prior
year comparable period of $527.9 million primarily due to reduced deferred stripping at Candelaria.
10
1 This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
2 Sustaining capital expenditures is a supplementary financial measure. See section "Non-GAAP and Other Performance Measures" of this MD&A for
discussion.
===== SIDA 11 =====
• Expansionary capital expenditures 1 for the year were $191.2 million, a decrease from $243.6 million in the prior year.
This decrease reflects that, following the formation of Vicuña in January 2025, the Company now accounts for only 50%
of Vicuña's capital expenditures. On a 100% basis, total Vicuña Project spending was $332.5 million.
• Net earnings from discontinued operations for the year of $235.8 million (2024 - net loss of $328.9 million) was
impacted by a non-cash reversal of impairment at Eagle and a gain on disposal of Neves-Corvo and Zinkgruvan.
Financial Position and Financing
• Cash and cash equivalents at continuing operations as at December 31, 2025 were $296.2 million, representing a
decrease of $61.3 million during the year. Cash provided by operating activities related to continuing operations in the
year of $1,207.9 million was used to fund $684.6 million investment in mineral properties, plant and equipment. The
Company received net cash proceeds of $1,314.6 million from the sale of the Neves-Corvo and Zinkgruvan operations
which were used to repay in full the $1,150.0 million outstanding balance of the Company's term loan and to repay
$170.0 million of amounts drawn on the RCF (net repayments of $300.0 million during the year). Other significant
financing activities comprised of $105.7 million of dividends paid to shareholders, $138.0 million of distributions to
non-controlling interests, and $153.7 million of share buybacks, of which $3.7 million were executed in 2024 and
settled in January 2025.
• As at December 31, 2025, the Company had net cash 1 of $77.4 million. As at February 19, 2026, the Company had cash
of over $500 million and net cash of over $200 million.
11
1 This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
===== SIDA 12 =====
2026 Outlook
On January 21, 2026, the Company announced its production, cash cost, capital expenditures and exploration investment
guidance for 2026.
2026 Production and Cash Cost Guidance
Guidance1
(contained metal) Production Cash Cost ($/lb)2
Copper (t) Candelaria (100%) 135,000 – 145,000 2.05 – 2.253
Caserones (100%) 130,000 – 140,000 2.05 – 2.25
Chapada 45,000 – 50,000 1.00 – 1.204
Total 310,000 – 335,000 1.90 – 2.10
Gold (oz) Candelaria (100%) 77,000 – 87,000
Chapada 57,000 – 62,000
Total 134,000 – 149,000
1 Guidance as outlined in the news release 'Lundin Mining Announces 2025 Production Results and Provides 2026 Guidance' dated January 21, 2026.
2 2026 cash cost is based on various assumptions and estimates, including but not limited to: production volumes, commodity prices (Au: $4,000/oz, Mo:
$20.00/lb, Ag: $80.00/oz), foreign exchange rates (USD/CLP:900, USD/BRL:5.50) and operating costs. Cash cost is a non-GAAP measure - see section 'Non-
GAAP and Other Performance Measures' of this MD&A for discussion.
3 68% of Candelaria's total gold and silver production are subject to a streaming agreement. Cash cost is calculated based on receipt of approximately
$437/oz gold and $4.36/oz silver.
4 Chapada's cash cost is calculated on a by-product basis and does not include the effects of its copper stream agreements which are reflected in copper
revenue and will impact realized price per pound.
2026 Capital Expenditure Guidance1,2
($ millions) Guidance3
Candelaria (100% basis) 215
Caserones (100% basis) 235
Chapada 100
Total Sustaining 550
Expansionary Capital 50
Vicuña (50% basis) 395
Total Capital Expenditures 995
1 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.
2 Capital expenditures are based on various assumptions and estimates, including, but not limited to foreign currency exchange rates (USD/CLP: 900,
USD/BRL: 5.50).
3 Guidance as outlined in the news release 'Lundin Mining Announces 2025 Production Results and Provides 2026 Guidance' dated January 21, 2026.
2026 Exploration Investment Guidance
Total exploration expenditure guidance for 2026 is $53 million.
12
===== SIDA 13 =====
2025 Selected Fourth Quarter and Annual Financial Information
Three months ended
December 31,
Year ended
December 31,
($ millions continuing operations except where
noted)
2025 2024 2025 2024 2023
Revenue 1,301.5 833.3 4,053.2 3,270.1 2,392.5
Costs of goods sold:
Production costs (546.8) (465.7) (1,948.1) (1,786.7) (1,452.3)
Depreciation, depletion and amortization (169.7) (139.8) (618.9) (574.2) (445.8)
Inventory (write-down) reversal (88.2) 26.6 (88.2) 26.6 —
Gross profit 496.8 254.4 1,398.0 935.8 494.4
Net earnings (loss) from continuing operations
attributable to:
Lundin Mining shareholders 659.9 (95.5) 1,047.2 125.4 109.5
Non-controlling interests 252.4 35.7 370.5 142.2 73.7
Net earnings (loss) from continuing operations 912.3 (59.8) 1,417.7 267.6 183.2
Net earnings (loss) from discontinued
operations1 107.3 (344.6) 235.8 (328.9) 132.0
Net earnings (loss) attributable to:
Lundin Mining shareholders 767.2 (440.1) 1,283.0 (203.5) 241.5
Non-controlling interests 252.4 35.7 370.5 142.2 73.7
Net earnings (loss) 1,019.6 (404.4) 1,653.5 (61.3) 315.2
Adjusted earnings2 (all operations) 370.4 119.3 769.0 359.0 336.0
Adjusted earnings2 - continuing operations 363.7 102.9 687.9 294.9 193.7
Adjusted earnings1,2 - discontinued operations 6.7 16.4 81.1 64.1 142.3
Adjusted EBITDA2 (all operations) 700.6 425.6 2,037.3 1,707.0 1,363.4
Adjusted EBITDA2 - continuing operations 686.4 366.5 1,917.1 1,426.9 992.6
Adjusted EBITDA1,2 - discontinued operations 14.2 59.1 120.2 280.1 370.8
Cash provided by operating activities (all
operations) 560.9 620.3 1,342.6 1,518.9 1,016.6
Cash provided by operating activities related to
continuing operations 533.0 567.9 1,207.9 1,311.4 644.2
Cash provided by operating activities related to
discontinued operations1 27.9 52.4 134.7 207.5 372.4
Adjusted operating cash flow2 (all operations) 677.6 313.9 1,732.5 1,302.6 1,024.2
Adjusted operating cash flow2 - continuing
operations 665.1 263.5 1,621.9 1,089.9 710.1
Adjusted operating cash flow1,2 - discontinued
operations 12.5 50.4 110.6 212.7 314.1
Free cash flow from operations2 (all operations) 412.5 466.0 835.8 872.9 345.0
Free cash flow from operations2 - continuing
operations 388.3 447.4 773.6 825.6 133.4
Free cash flow from operations1,2 - discontinued
operations 24.2 18.6 62.2 47.3 211.6
Free cash flow2 (all operations) 355.9 398.0 594.2 571.2 13.4
Free cash flow2 - continuing operations 331.9 386.0 538.9 539.9 (180.8)
Free cash flow1,2 - discontinued operations 24.0 12.0 55.3 31.3 194.2
Capital expenditures2,3 - continuing operations 204.7 186.0 684.6 786.1 835.0
Capital expenditures1,2,3 - discontinued
operations 3.9 40.4 79.2 176.2 178.2
1 Discontinued operations results include Eagle's annual financial results, Neves-Corvo and Zinkgruvan financial results to April 16, 2025 and the
revaluation of contingent consideration at December 31, 2025.
2 This is a non-GAAP measure - see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.
3 Capital expenditures are reported on a cash basis, as presented in the consolidated statement of cash flows.
13
===== SIDA 14 =====
Three months ended
December 31,
Year ended
December 31,
2025 2024 2025 2024 2023
Per share amounts:
Basic earnings (loss) per share ("EPS")
attributable to shareholders 0.90 (0.57) 1.50 (0.26) 0.31
Diluted EPS attributable to shareholders 0.89 (0.57) 1.49 (0.26) 0.31
Basic and diluted EPS from continuing
operations attributable to shareholders 0.77 (0.12) 1.22 0.16 0.14
Basic EPS from discontinued operations
attributable to shareholders1 0.13 (0.44) 0.28 (0.42) 0.17
Diluted EPS from discontinued operations
attributable to shareholders1 0.12 (0.44) 0.27 (0.42) 0.17
Adjusted EPS2 (all operations) 0.43 0.15 0.90 0.46 0.44
Adjusted EPS2 - continuing 0.42 0.13 0.80 0.38 0.25
Adjusted EPS1,2 - discontinued 0.01 0.02 0.09 0.08 0.19
Adjusted operating cash flow per share2 (all
operations) 0.79 0.40 2.02 1.68 1.33
Adjusted operating cash flow per share2 -
continuing 0.78 0.34 1.90 1.41 0.92
Adjusted operating cash flow per share1,2 -
discontinued 0.01 0.06 0.12 0.27 0.41
Dividends declared (C$/share) 0.0275 0.0900 0.1725 0.3600 0.3600
($ millions)
December 31,
2025
December 31,
2024
December 31,
2023
Total assets 10,820.6 10,406.8 10,861.2
Total debt 237.1 1,757.0 1,208.6
Net cash (debt)2 77.4 (1,332.4) (946.2)
1 Discontinued operations results include Eagle's annual financial results, Neves-Corvo and Zinkgruvan financial results to April 16, 2025 and the
revaluation of contingent consideration at December 31, 2025.
2 This is a non-GAAP measure - see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.
The Company's annual results from continuing operations have been impacted by the acquisition of the Caserones mine in
July 2023, which contributed to an increase in metal production, net earnings and capital expenditures in 2024 as compared
to 2023. In July 2024, the Company exercised its option to acquire an additional 19% interest in Caserones from 51% to 70%
and reducing the non-controlling interest to 30%, contributing to an increase in net earnings attributable to the Company.
The year ended December 31, 2024 was impacted by non-cash impairments totalling $149.4 million relating to Suruca
deposit (Chapada) and Alcaparrosa mine (Ojos complex at Candelaria) and a $28.3 million non-cash partial reversal of a
previous long-term ore stockpile inventory write-down at Chapada.
During the year ended December 31, 2025 revenues benefitted by higher realized copper and gold prices. Gross profit was
also impacted by a $99.9 million ($65.9 million net of tax) non-cash write-down of long-term ore stockpile inventory at
Chapada. Net earnings benefitted from a deferred tax recovery of $517.0 million due to the recognition of an additional
deferred tax asset at Caserones for tax loss carryforwards which can be applied to future taxable income over the mine life.
Net earnings from discontinued operations during the year included the annual financial results of Eagle and financial
results of Neves-Corvo and Zinkgruvan up to April 15, 2025. Net earnings from discontinued operations benefitted from a
non-cash reversal of impairment at Eagle of $88.4 million and a gain on disposal of Neves-Corvo and Zinkgruvan of $106.3
million, partially offset by a non-cash impairment of Neves-Corvo of $65.7 million. During the year ended December 31,
2024, net earnings from discontinued operations included the annual financial results of Neves-Corvo, Zinkgruvan and Eagle
and the financial results were impacted by non-cash impairments at Neves-Corvo and Eagle totalling $396.1 million.
14
===== SIDA 15 =====
Summary of Quarterly Results1
($ millions, except per share data) Q4-25 Q3-25 Q2-25 Q1-25 Q4-24 Q3-24 Q2-24 Q1-24
Revenue from continuing operations 1,301.5 953.9 878.1 919.6 833.3 860.9 820.9 755.1
Gross profit from continuing operations 496.8 336.4 258.4 306.3 254.4 272.8 218.8 190.0
Net earnings (loss) from continuing operations 912.3 175.1 149.2 181.2 (59.8) 131.9 120.3 75.4
- attributable to shareholders 659.9 133.6 115.9 137.9 (95.5) 105.2 85.2 30.7
Net earnings (loss) from discontinued
operations3
107.3 29.3 112.8 (13.6) (344.6) (3.8) 36.4 (16.9)
Adjusted earnings2 (all operations) 370.4 152.4 99.9 146.3 119.3 72.5 122.1 45.3
Adjusted earnings2 from continuing operations 363.7 143.2 87.7 93.8 102.9 68.7 74.6 48.9
Adjusted earnings (loss)2,3 from discontinued
operations
6.7 9.2 12.2 52.5 16.4 3.8 47.5 (3.6)
Adjusted EBITDA2 (all operations) 700.6 489.8 395.8 450.9 425.6 457.7 460.9 362.9
Adjusted EBITDA2 - continuing operations 686.4 472.2 376.5 382.2 366.5 387.5 351.0 322.3
Adjusted EBITDA2,3 - discontinued operations 14.2 17.6 19.3 68.7 59.1 70.2 109.9 40.6
EPS - Basic (all operations) 0.90 0.19 0.27 0.15 (0.57) 0.13 0.16 0.02
EPS - Diluted (all operations) 0.89 0.19 0.27 0.15 (0.57) 0.13 0.16 0.02
EPS - Basic from continuing operations 0.77 0.16 0.13 0.16 (0.12) 0.14 0.11 0.04
EPS - Diluted from continuing operations 0.77 0.16 0.13 0.16 (0.12) 0.14 0.11 0.04
EPS - Basic from discontinued operations3 0.13 0.03 0.13 (0.02) (0.44) — 0.05 (0.02)
EPS - Diluted from discontinued operations3 0.12 0.03 0.13 (0.02) (0.44) — 0.05 (0.02)
Adjusted EPS2 (all operations) 0.43 0.18 0.12 0.17 0.15 0.09 0.16 0.06
Adjusted EPS2 - continuing operations 0.42 0.17 0.10 0.11 0.13 0.09 0.10 0.06
Adjusted EPS2,3 - discontinued operations 0.01 0.01 0.01 0.06 0.02 — 0.06 —
Cash provided by operating activities (all
operations)
560.9 270.3 334.6 177.0 620.3 139.3 491.8 267.5
Cash provided by operating activities from
continuing operations
533.0 254.9 292.7 127.8 567.9 106.8 404.0 232.7
Cash provided by operating activities related to
discontinued operations3
27.9 15.4 41.9 49.2 52.4 32.5 87.8 34.9
Adjusted operating cash flow per share2 (all
operations)
0.79 0.45 0.33 0.46 0.40 0.39 0.48 0.41
Adjusted operating cash flow per share2 -
continuing operations
0.78 0.43 0.30 0.39 0.34 0.34 0.37 0.36
Adjusted operating cash flow per share2,3 -
discontinued operations
0.01 0.02 0.02 0.07 0.06 0.06 0.11 0.04
Capital expenditure5 from continuing
operations
204.7 157.2 151.1 171.5 186.0 155.7 213.1 231.1
Capital expenditure4,5 from discontinued
operations
3.9 6.6 15.5 53.5 40.4 49.7 45.2 40.8
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 Discontinued operations results include Eagle's financial results, Neves-Corvo and Zinkgruvan financial results to April 16, 2025 and the revaluation of
contingent consideration at December 31, 2025.
4 Discontinued operations results include Eagle's financial results, Neves-Corvo and Zinkgruvan financial results to April 16, 2025.
5 Capital expenditures are reported on a cash basis, as presented in the consolidated statement of cash flows.
15
===== SIDA 16 =====
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.
In Q4 2025, results from continuing operations were impacted by the recognition of an additional deferred tax asset at
Caserones and the non-cash write-down of long-term ore stockpile inventory at Chapada. Q4 2025 results from
discontinued operations were impacted by an impairment reversal at Eagle mine.
In Q2 2025, the Company completed the sale of its Neves-Corvo and Zinkgruvan operations and recognized a gain on
disposal of $106.4 million. Results from these operations through to April 16, 2025 are reported as discontinued operations.
Net loss from discontinued operations in Q4 2024 was impacted by a $291.2 million non-cash impairment to align the
carrying value of Neves-Corvo with expected cash consideration. As a result of the euro strengthening in Q1 2025, net loss
from discontinued operations was impacted by a further $65.7 million non-cash impairment at Neves-Corvo to re-align its
carrying value with subsequent cash consideration.
Following the formation of Vicuña in Q1 2025, its financial results are accounted for at the Company's 50% share. In prior
quarters, the Josemaria project (now part of Vicuña) was wholly owned by the Company and reported at 100%.
An $800.0 million term loan was entered into in conjunction with the acquisition of a 51% interest in Caserones and was
subsequently increased by $350.0 million with funds used to acquire an additional 19% of Caserones in 2024. Higher debt
increased the Company's interest expense from acquisition through Q1 2025, reducing net earnings. The term loan was
repaid in full after the sale of Neves-Corvo and Zinkgruvan in April 2025, reducing interest expense and benefitting net
earnings in Q2 2025 and the subsequent quarters.
In Q2 2024, a fall of ground occurred in the lower ramp at the Eagle mine, resulting in reduced mining rates through the
remainder of 2024 until ramp rehabilitation was completed in Q1 2025, impacting net earnings from discontinued
operations throughout this period.
In Q4 2024, net earnings from continuing operations was reduced by non-cash impairments including $93.4 million related
to the Suruca gold deposit near Chapada and $55.9 million due to the continued closure of the Alcaparrosa mine within the
Candelaria mining complex. These amounts were partially offset by a $28.3 million non-cash partial reversal of a previous
long-term ore stockpile inventory write-down at Chapada.
In the quarters presented, the Company has entered into derivative contracts for foreign currency, diesel, copper prices and
gold prices as part of its risk management strategy. Realized and unrealized gains and losses on derivative contracts and
foreign exchange and trading gains on debt and equity investments are recorded in other income and expense and impact
the Company's net earnings.
16
===== SIDA 17 =====
Revenue Overview
Sales Volumes by Payable Metal - Continuing Operations
2025 2024
YTD Q4 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1
Copper (t)
Candelaria (100%) 140,500 32,882 36,041 36,603 34,974 158,017 49,052 45,430 29,999 33,536
Caserones (100%) 138,287 45,134 26,896 30,076 36,181 113,867 26,750 22,044 29,862 35,211
Chapada 42,040 9,413 13,997 10,284 8,346 39,615 10,200 12,380 8,293 8,742
320,827 87,429 76,934 76,963 79,501 311,499 86,002 79,854 68,154 77,489
Gold (oz)
Candelaria (100%) 76,537 17,700 19,041 20,021 19,775 89,435 27,756 25,971 16,727 18,981
Chapada 56,569 12,403 19,735 14,402 10,029 57,777 14,660 18,775 12,368 11,974
133,106 30,103 38,776 34,423 29,804 147,212 42,416 44,746 29,095 30,955
Molybdenum (t)
Caserones (100%) 1,976 451 508 389 628 3,056 944 581 695 836
Silver (koz)
Candelaria (100%) 1,598 372 434 395 397 1,799 557 511 331 400
Chapada 129 26 48 30 25 96 21 24 30 21
1,727 398 482 425 422 1,895 578 535 361 421
Revenue Analysis
Three months ended December 31, Year ended December 31,
by Mine 2025 2024 Change 2025 2024 Change
($ millions) $ % $ % $ $ % $ % $
Candelaria (100%) 518.5 40 449.1 53 69.4 1,769.0 44 1,618.9 50 150.1
Caserones (100%) 598.4 46 263.0 32 335.4 1,618.8 40 1,153.6 35 465.2
Chapada 184.6 14 121.2 15 63.4 665.4 16 497.6 15 167.8
Continuing Operations 1,301.5 833.3 468.2 4,053.2 3,270.1 783.1
Eagle 52.2 100 25.6 14 26.6 208.6 51 152.5 18 56.1
Neves-Corvo — — 97.5 51 (97.5) 128.3 31 438.1 52 (309.8)
Zinkgruvan — — 67.5 35 (67.5) 72.4 18 256.7 30 (184.3)
Discontinued Operations1 52.2 190.6 (138.4) 409.3 847.3 (438.0)
1 Discontinued operations results include Eagle's financial results, Neves-Corvo and Zinkgruvan financial results to April 16, 2025.
Three months ended December 31, Year ended December 31,
by Metal 2025 2024 Change 2025 2024 Change
($ millions) $ % $ % $ $ % $ % $
Copper 1,128.1 87 682.3 82 445.8 3,436.2 85 2,758.1 85 678.1
Gold 124.2 10 93.5 11 30.7 437.8 11 303.9 9 133.9
Molybdenum 16.5 1 39.6 5 (23.1) 87.2 2 131.0 4 (43.8)
Silver 28.9 2 14.1 2 14.8 74.1 2 48.6 1 25.5
Other 3.8 — 3.8 — — 17.9 — 28.5 1 (10.6)
Continuing Operations 1,301.5 833.3 468.2 4,053.2 3,270.1 783.1
Revenue from continuing operations for the year of $4,053.2 million was an increase of $783.1 million over the prior year
comparable period of $3,270.1 million. The revenue increase was primarily due to an increase in realized copper and gold
prices and higher sales volumes at Caserones, partially offset by lower sales volumes at Candelaria.
17
===== SIDA 18 =====
Revenue from gold and silver for the quarter and year includes the partial recognition of an upfront purchase price on the
sale of precious metals streams for Candelaria as well as the cash proceeds which amount to approximately $433/oz for
gold and $4.32/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, which is limited to 7.9% of Chapada's total copper production.
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 from Continuing Operations as of December 31, 2025
Metal Payable metal Valued at
Copper 80,435 t $5.64 /lb
Gold 31,760 oz $4,343 /oz
Molybdenum 619 t $23.30 /lb
Full-Year Reconciliation of Realized Prices - Continuing Operations
Year ended December 31, 2025
($ millions) Copper Gold Molybdenum Other Total
Revenue from contracts with customers1 3,199.4 459.4 90.2 144.1 3,893.1
Provisional pricing adjustments on current year
concentrate sales 230.0 25.7 2.0 11.1 268.8
Provisional pricing adjustments on prior year
concentrate sales 44.6 2.3 (5.0) 1.1 43.0
3,474.0 487.4 87.2 156.3 4,204.9
Recognition of deferred revenue 18.5 39.9 — 13.7 72.1
Stream provisional pricing and cash effect (20.2) (134.6) — (31.5) (186.3)
Less: Treatment and refining charges (37.5)
Total revenue 3,472.3 392.7 87.2 138.5 4,053.2
Payable metal 320,827 t 133 koz 1,976 t
Current period sales2 $4.85 $3,644 $21.17
Provisional pricing adjustments on prior year
concentrate sales $0.06 $18 $(1.15)
Realized prices3,4 $4.91 /lb $3,662 /oz $20.02 /lb
18
===== SIDA 19 =====
Year ended December 31, 2024
($ millions) Copper Gold Molybdenum Other Total
Revenue from contracts with customers1 2,868.9 358.5 136.8 95.7 3,459.9
Provisional pricing adjustments on current year
concentrate sales (20.3) 6.3 4.1 0.8 (9.1)
Provisional pricing adjustments on prior year
concentrate sales 24.1 1.7 (9.9) 1.0 16.9
2,872.7 366.5 131.0 97.5 3,467.7
Recognition of deferred revenue5 16.1 44.5 — 15.2 75.8
Stream provisional pricing and cash effect5 (17.8) (112.4) (28.9) (159.1)
Less: Treatment & refining charges (114.3)
Total revenue 2,871.0 298.6 131.0 83.8 3,270.1
Payable metal 311,499 t 147 koz 3,056 t
Current period sales2 $4.15 $2,478 $20.92
Provisional pricing adjustments on prior year
concentrate sales $0.03 $12 $(1.47)
Realized prices3,4 $4.18 /lb $2,490 /oz $19.45 /lb
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 year-to-date 2025 is $4.88/lb (2024: $4.16/lb). The realized price
for gold inclusive of the impact of streaming agreements for 2025 is $2,651/oz (2024: $1,726/oz).
5 Comparative amounts in 2024 have been adjusted to conform with 2025 presentation by including recognition of deferred revenue from the silver
stream and provisional price adjustments subject to streaming (2024: $15.2 million and $22.3 million, respectively).
Annual Financial Results
Production Costs
Production costs for continuing operations in the year were $1,948.1 million, an increase from $1,786.7 million in the prior
year comparable period. The increase was primarily attributable to higher sales volumes at Caserones and Chapada, and
increased mine costs at Candelaria resulting from higher labour costs following the successful acceleration of negotiations
with the labour agreement unions, culminating in new three-year agreements with all five unions. The terms of the
agreements expire between January and September 2029 , replacing agreements expiring during 2026. As a result of these
renewals, production costs increased during the fourth quarter partially offset by reduced labour expenses at Caserones
and lower sales volumes at Candelaria. Production costs for discontinued operations in the year were $277.8 million.
Production Costs Year ended December 31,
($ millions, continuing operations) 2025 2024 Change
Candelaria 783.9 726.6 57.3
Caserones 854.5 776.2 78.3
Chapada 306.8 282.7 24.1
Other 2.9 1.2 1.7
1,948.1 1,786.7 161.4
19
===== SIDA 20 =====
Depreciation, Depletion and Amortization
Depreciation, depletion and amortization expense in the year increased by $44.7 million, compared to the prior year, and
includes $11.7 million related to the long-term ore stockpile write-down at Chapada, and was impacted by the decrease in
mineral reserves balance at Caserones.
Depreciation, depletion & amortization Year ended December 31,
($ millions, continuing operations) 2025 2024 Change
Candelaria 300.0 313.1 (13.1)
Caserones 212.2 184.1 28.1
Chapada 106.2 76.5 29.7
Other 0.5 0.5 —
618.9 574.2 44.7
Finance Costs
Total finance costs, net, from continuing operations amounted to $90.5 million for the year and decreased from $137.7
million in the prior year primarily due to lower interest expense following the full repayment of the term loan in April 2025.
Income Taxes
Income tax recovery (expense) Year ended December 31,
($ millions, continuing operations) 2025 2024 Change
Candelaria (235.1) (237.9) 2.8
Caserones 497.8 (0.9) 498.7
Chapada 0.0 (62.2) 62.2
Vicuña (12.2) 50.1 (62.3)
Other 19.5 (7.9) 27.4
270.0 (258.8) 528.8
Income taxes by classification Year ended December 31,
($ millions, continuing operations) 2025 2024 Change
Current income tax expense (299.7) (294.9) (4.8)
Deferred income tax recovery 569.7 36.1 533.6
270.0 (258.8) 528.8
Current income tax expense in the year was higher than 2024, primarily due to higher taxable income during the year. This
increase was partially offset by lower mining royalty at Candelaria due to the application of Chilean mining royalty tax limits.
Deferred income tax recovery in the year increased compared to 2024, primarily due to the recognition of additional
deferred tax assets at Caserones for tax loss carryforwards which can be applied to future taxable income and an increase in
deferred tax assets at Chapada for foreign exchange revaluation of non-monetary assets, which reduced income tax
expense at Chapada to a nominal amount. The deferred tax recovery was partially offset by the recognition of a deferred
tax liability related to outside basis differences on the Company’s investment in Vicuña and a prior year deferred tax
recovery related to tax inflation adjustments in Argentina that reversed a 2023 deferred tax liability.
20
===== SIDA 21 =====
Fourth Quarter Financial Results
Gross Profit
Gross profit from continuing operations for the quarter was $496.8 million, an increase from $254.4 million in the prior year
comparable period. The increase was primarily attributable to higher realized copper and gold prices and higher sold copper
volumes. Positive provisional pricing adjustments were recognized on sales from current and prior periods of $90.2 million
and $82.5 million, respectively. Gross profit was also impacted by a non-cash write-down at Chapada on the long-term ore
stockpile of $99.9 million ($65.9 million net of tax). Gross profit from discontinued operations for the quarter was $9.0
million (2024 - $26.1 million).
Net Earnings
Net earnings from continuing operations for the quarter was $912.3 million, compared to a net loss of $59.8 million in the
prior year comparable period. The increase was primarily attributable to higher gross profit and a deferred tax recovery of
$517.0 million at Caserones due to the recognition of additional deferred tax assets for tax loss carryforwards which can be
applied to future taxable income. Prior year impairments of Suruca and Alcaparrosa further contributed to the increase. Net
earnings from discontinued operations for the quarter was $107.3 million, compared to a net loss of $344.6 million in the
prior year comparable period, and was impacted by the impairment reversal at Eagle.
Cash Flow from Operations
Cash provided by operating activities for the quarter was $533.0 million, compared to the prior year comparable quarter of
$567.9 million. The decrease was largely due to a working capital build of $132.1 million in the quarter compared to $305.4
million working capital release in the prior year comparable period.
Fourth Quarter Reconciliation of Realized Prices - Continuing Operations
Three months ended December 31, 2025
($ millions) Copper Gold Molybdenum Other Total
Revenue from contracts with customers1 969.6 125.5 21.4 50.6 1,167.1
Provisional pricing adjustments on current period
concentrate sales 85.9 2.9 (0.2) 1.6 90.2
Provisional pricing adjustments on prior period
concentrate sales 79.9 4.4 (4.7) 2.9 82.5
1,135.4 132.8 16.5 55.1 1,339.8
Recognition of deferred revenue 2.9 13.0 — 3.7 19.6
Stream provisional pricing and cash effect (2.2) (38.5) — (8.8) (49.5)
Less: Treatment and refining charges (8.4)
Total revenue 1,136.1 107.3 16.5 50.0 1,301.5
Payable metal 87,429 t 30 koz 451 t
Current Period Sales2 $5.48 $4,265 $21.33
Provisional pricing adjustments on prior period
concentrate sales 0.41 147 (4.73)
Realized prices 3,4 $5.89 /lb $4,412 /oz $16.60 /lb
21
===== SIDA 22 =====
Three months ended December 31, 2024
($ millions) Copper Gold Molybdenum Other Total
Revenue from contracts with customers1 799.4 113.9 41.0 28.8 983.1
Provisional pricing adjustments on current period
concentrate sales (32.2) (1.1) — (0.3) (33.6)
Provisional pricing adjustments on prior period
concentrate sales (56.0) — (1.4) 0.1 (57.3)
711.2 112.8 39.6 28.6 892.2
Recognition of deferred revenue5 1.7 16.7 5.1 23.5
Stream provisional pricing and cash effect5 (3.1) (40.8) (10.4) (54.3)
Less: Treatment & refining charges (28.1)
Total revenue 709.8 88.7 39.6 23.3 833.3
Payable Metal 86,002 t 42 koz 944 t
Current period sales2 $4.05 $2,643 $19.71
Provisional pricing adjustments on prior period
concentrate sales (0.30) — (0.69)
Realized prices3,4 $3.75 /lb $2,643 /oz $19.02 /lb
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 Q4 2025 is $5.88/lb (Q4 2024: $3.73/lb). The realized price for gold
inclusive of the impact of streaming agreements for Q4 2025 is $3,133/oz (Q4 2024: $1,714/oz).
5 Comparative amounts in 2024 have been adjusted to conform with 2025 presentation by including recognition of deferred revenue from the silver
stream and provisional price adjustments subject to streaming (2024: $5.1 million and $11.6 million, respectively).
22
===== SIDA 23 =====
Mining Operations
Production Overview
2025 2024
Total Q4 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1
Copper (t)
Candelaria (100%) 145,471 34,272 37,129 36,999 37,071 162,487 48,772 50,018 31,170 32,527
Caserones (100%) 132,881 39,612 35,270 29,290 28,709 124,761 31,737 29,033 29,775 34,216
Chapada 43,974 11,191 12,600 11,274 8,909 43,261 12,323 11,694 9,106 10,138
Continuing Operations 322,326 85,075 84,999 77,563 74,689 330,509 92,832 90,745 70,051 76,881
Eagle 8,906 1,957 2,354 2,510 2,085 6,366 1,262 1,027 1,563 2,514
Neves-Corvo1 7,348 — — 1,225 6,123 28,228 7,139 6,698 7,347 7,044
Zinkgruvan1 971 — — — 971 3,964 258 1,385 747 1,574
Total 339,551 87,032 87,353 81,298 83,868 369,067 101,491 99,855 79,708 88,013
Zinc (t)
Neves-Corvo1 32,356 — — 4,665 27,691 109,571 27,879 29,509 25,696 26,487
Zinkgruvan1 25,877 — — 4,620 21,257 82,133 24,067 17,101 21,764 19,201
Total 58,233 — — 9,285 48,948 191,704 51,946 46,610 47,460 45,688
Gold (oz)
Candelaria (100%) 80,528 19,055 19,899 20,574 21,000 93,021 27,842 28,835 17,679 18,665
Chapada 61,331 15,074 17,864 17,544 10,849 65,415 18,614 17,877 14,760 14,164
Total 141,859 34,129 37,763 38,118 31,849 158,436 46,456 46,712 32,439 32,829
Nickel (t)
Eagle 9,907 2,174 2,724 2,713 2,296 7,486 1,617 893 1,721 3,255
Molybdenum (t)
Caserones (100%) 2,082 526 574 380 602 3,183 912 693 714 864
Lead (t)
Neves-Corvo1 2,361 — — 369 1,992 6,395 1,553 1,851 1,387 1,604
Zinkgruvan1 9,291 — — 1,705 7,586 30,888 9,481 5,693 8,966 6,748
Total 11,652 — — 2,074 9,578 37,283 11,034 7,544 10,353 8,352
Silver (koz)
Candelaria (100%) 1,798 441 477 431 449 1,985 598 605 367 415
Chapada 258 66 73 69 50 245 69 63 55 58
Continuing Operations 2,056 507 550 500 499 2,230 667 668 422 473
Eagle 40 10 15 5 10 35 7 3 17 8
Neves-Corvo1 534 — — 75 459 1,876 494 425 433 524
Zinkgruvan1 737 — — 152 585 2,513 637 537 699 640
Total 3,367 517 565 732 1,553 6,654 1,805 1,633 1,571 1,645
1 Neves-Corvo and Zinkgruvan results are to April 16, 2025.
23
===== SIDA 24 =====
Production Cost and Cash Cost Overview ($ millions, $/lb)
Three months ended
December 31,
Year ended
December 31,
($ millions) 2025 2024 2025 2024
Candelaria
Production costs $226.6 $201.0 $783.9 $726.6
Gross cost 3.08 1.93 2.54 2.19
By-product1 (0.79) (0.40) (0.62) (0.46)
Cash Cost (Cu, $/lb)2 2.29 1.53 1.92 1.73
All-in Sustaining Cost ("AISC") (Cu, $/lb)2 3.51 2.12 2.75 2.62
Caserones
Production costs $247.3 $200.2 $854.5 $776.2
Gross cost 2.30 3.30 2.66 3.08
By-product1 (0.42) (0.79) (0.49) (0.57)
Cash Cost (Cu, $/lb)2 1.88 2.51 2.17 2.51
AISC (Cu, $/lb)2 2.74 3.58 3.03 3.48
Chapada
Production costs $71.9 $64.4 $306.8 $282.7
Gross cost 3.25 2.82 3.12 3.27
By-product1 (2.80) (1.75) (2.37) (1.69)
Cash Cost (Cu, $/lb)2 0.45 1.07 0.75 1.58
AISC (Cu, $/lb)2 1.81 2.81 2.06 3.07
Consolidated3
Production costs $545.8 $465.7 $1,945.2 $1,785.5
Gross cost 2.69 2.46 2.67 2.65
By-product1 (0.81) (0.68) (0.80) (0.65)
Cash Cost (Cu, $/lb)2 1.88 1.78 1.87 2.00
1 By-product is after related treatment and refining charges.
2 Cash Cost per pound sold and AISC per pound sold are non-GAAP measures, see the "Non-GAAP and Other Performance Measures" section of this
MD&A for discussion.
3 Consolidated Cash Cost includes Candelaria, Caserones, and Chapada.
24
===== SIDA 25 =====
Candelaria (Chile)
The Candelaria operations consist of an open pit and underground mines providing copper ore to two on-site processing
plants located near Copiapó in the Atacama region of Chile, as well as a port facility and desalination plant located
approximately 100km from the mine facilities in the town of Caldera. The Company holds an indirect 80% ownership interest
in Candelaria with the remaining 20% interest indirectly held by Sumitomo Metal Mining Co., Ltd and Sumitomo
Corporation. The plants have a combined processing capacity of 30.7 million tonnes per annum (“mtpa”), producing copper
in concentrate. The primary metal is copper, with gold and silver as by-product metals.
Operating Statistics
2025 2024
(100% Basis) Total Q4 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1
Ore mined (kt) 37,018 7,935 9,145 9,721 10,217 36,728 12,673 10,784 8,155 5,116
Ore milled (kt) 31,579 7,972 8,103 7,752 7,752 29,186 7,600 7,183 7,094 7,309
Grade
Copper (%) 0.50 0.47 0.49 0.52 0.52 0.61 0.69 0.76 0.49 0.48
Gold (g/t) 0.12 0.11 0.11 0.12 0.12 0.15 0.17 0.18 0.12 0.11
Recovery
Copper (%) 91.9 91.5 92.6 92.0 91.6 91.8 93.1 92.1 89.5 91.9
Gold (%) 68.6 71.0 67.2 68.2 68.3 67.7 68.2 69.9 62.1 69.8
Production (contained metal)
Copper (t) 145,471 34,272 37,129 36,999 37,071 162,487 48,772 50,018 31,170 32,527
Gold (oz) 80,528 19,055 19,899 20,574 21,000 93,021 27,842 28,835 17,679 18,665
Silver (koz) 1,798 441 477 431 449 1,985 598 605 367 415
Sales volume (payable metal)
Copper (t) 140,500 32,882 36,041 36,603 34,974 158,017 49,052 45,430 29,999 33,536
Gold (oz) 76,537 17,700 19,041 20,021 19,775 89,435 27,756 25,971 16,727 18,981
Revenue ($ millions) 1,769.0 518.5 426.8 404.6 419.1 1,618.9 449.1 473.0 366.4 330.4
Production costs ($ millions) 783.9 226.6 199.2 186.1 172.1 726.6 201.0 189.0 175.4 161.2
Gross profit ($ millions) 685.1 218.9 144.7 143.6 177.8 579.2 163.2 205.3 115.0 95.7
Cash cost ($ per pound copper)1 1.92 2.29 1.87 1.81 1.75 1.73 1.53 1.55 2.18 1.89
Sustaining capital ($ millions)1 224.4 79.5 46.9 50.2 47.7 275.7 55.5 60.1 60.5 99.5
AISC ($ per pound copper)1 2.75 3.51 2.55 2.53 2.46 2.62 2.12 2.23 3.22 3.34
1AISC per pound sold and Cash cost per pound sold are non-GAAP measures and Sustaining Capital is a supplementary financial measure, see the "Non-
GAAP and Other Performance Measures" section of this MD&A for discussion.
Production
Mining was focused in Phase 11 during the quarter with production continuing to benefit from strong throughput in the
mill, primarily due to softer ore feed. Production in the quarter was lower than in the preceding quarters in the year as a
result of maintenance work on the main ramp, which shifted mining to lower grade areas of Phase 11. During the year,
mining in the open pit was focused on Phase 11 with some contribution from higher grade areas of Phase 12.
Copper production in the quarter and year were lower than in the prior year comparable periods primarily due to planned
lower grades partially offset by higher throughput due to ore softness. Grades in the quarter and year were lower than in
the prior year comparable periods primarily due to contribution from higher grade benches of Phase 11 during the prior
year, consistent with the mine plan. Grades in the quarter and year were also impacted by lower contribution from the
underground mine.
Production Costs and Cash Cost
During the fourth quarter, early renewals of labour agreements were completed with five unions at Candelaria. The
agreements are each for three-year terms and expire in 2029, replacing agreements expiring during 2026. The proactive
early renewal of these agreements will contribute to labour stability and operational efficiency at Candelaria in the medium
term. As a result of these renewals and increased contractor costs for scheduled plant maintenance, production costs were
higher than in the prior year comparable quarter. T hese increases in production costs compared to the prior year
comparable period were partially offset by lower sales volumes and reduced maintenance expenses. Maintenance expenses
in the prior year comparable period included a $14.0 million write-down of inventory items used in repair and maintenance
of mineral property, plant and equipment. During the year, production costs increased compared to the prior year primarily
25
===== SIDA 26 =====
as a result of increased waste movement in the open pit that was expensed during the year, combined with the incremental
expense related to labour agreement renewals.
Annual cash cost per pound was within the most recent guidance range and was higher than in the prior year comparable
period primarily due to planned lower grades resulting in reduced production, combined with increased labour and
contractor expenses. Cash cost per pound in the quarter was also impacted by the incremental expense recognized in the
quarter for early labour agreement renewals. Increases in cash cost per pound in both the quarter and year as compared to
the prior year comparable periods were partially offset by increased by-product credits as a result of higher metal prices.
AISC per pound in the quarter was higher than in the prior year comparable period primarily due to increased cash cost per
pound and higher sustaining capital expenditures. Sustaining capital expenditures increased in the quarter compared to the
prior year comparable period primarily due to increased underground mine development and purchases of new mine
equipment. AISC per pound in the year was higher than in the prior year comparable period primarily due to increased cash
cost, partially offset by reduced sustaining capital expenditure.
In the year, approximately 51,000 oz of gold and 1,100,000 oz of silver were subject to terms of a streaming agreement
from which approximately $ 433/oz gold and $ 4.32/oz silver were received. This represents approximately 68% of
Candelaria's total gold and silver production during the year.
Gross Profit and Net Earnings
Gross profit in the quarter and year increased from the prior year comparable periods primarily due to higher realized
copper prices. This was partially offset by reduced production and sales volumes as a result of planned lower grades and
increased production costs.
Net earnings in the quarter and year increased from the prior year comparable periods primarily due to improved gross
profit. Net earnings in the prior year were also impacted by a non-cash impairment of $55.9 million ($41.6 million net of
tax) due to the closure of the Alcaparrosa mine within the Candelaria complex.
26
===== SIDA 27 =====
Caserones (Chile)
Caserones is an open pit copper-molybdenum mine which produces high-quality copper concentrate, copper cathode and
molybdenum concentrate. Lundin Mining is the operator after acquiring a 70% interest in Minera Lumina Copper Chile
through two separate transactions, with JX Metals Corporation holding the remaining 30% interest. On July 13, 2023, Lundin
Mining acquired an initial 51% interest in Minera Lumina Copper Chile and in July 2024, Lundin Mining increased its
ownership to 70%. In 2025, the copper concentrator treated on approximately 33.4 mtpa. The solvent extraction-
electrowinning ("SX/EW") plant has a nominal capacity of 34.5 kilotonnes per annum ("ktpa").
Operating Statistics
2025 2024
(100% Basis) Total Q4 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1
Ore mined (kt) 36,712 8,553 8,479 9,680 10,000 30,820 8,557 7,616 7,840 6,807
Ore milled (kt) 33,383 8,200 8,530 7,984 8,669 32,141 8,759 8,136 7,556 7,690
Ore placed on leach 16,777 3,142 3,910 4,962 4,763 10,230 3,563 1,885 2,868 1,914
Grade
Copper (%) 0.40 0.47 0.43 0.37 0.33 0.40 0.36 0.38 0.42 0.44
Molybdenum (%) 0.011 0.013 0.011 0.008 0.011 0.015 0.015 0.016 0.015 0.016
Recovery
Copper (%) 80.4 83.6 79.2 79.9 78.4 78.6 81.9 76.7 75.9 79.7
Molybdenum (%) 57.7 50.0 61.9 56.6 62.6 64.1 68.9 53.3 64.4 70.0
Production (contained metal)
Copper in concentrate (t) 107,064 32,324 29,010 23,490 22,240 100,837 25,717 23,708 24,246 27,166
Copper cathode (t) 25,817 7,288 6,260 5,800 6,469 23,924 6,020 5,325 5,529 7,050
Total copper (t) 132,881 39,612 35,270 29,290 28,709 124,761 31,737 29,033 29,775 34,216
Molybdenum (t) 2,082 526 574 380 602 3,183 912 693 714 864
Sales volume (payable metal)
Copper (t) 138,287 45,134 26,896 30,076 36,181 113,867 26,750 22,044 29,862 35,211
Molybdenum (t) 1,976 451 508 389 628 3,056 944 581 695 836
Revenue ($ millions) 1,618.9 598.5 311.8 322.7 385.9 1,153.6 263.0 227.9 336.5 326.2
Production costs ($ millions) 854.5 247.3 158.5 204.7 243.9 776.2 200.2 169.4 208.9 197.7
Gross profit ($ millions) 552.2 290.8 103.8 61.5 96.1 193.3 24.2 19.2 73.1 76.8
Cash cost ($ per pound copper)1 2.17 1.88 1.86 2.45 2.52 2.51 2.51 2.96 2.60 2.14
Sustaining capital ($ millions)1 156.3 56.8 29.4 31.9 38.2 144.0 43.0 22.9 35.3 42.8
AISC ($ per pound copper)1 3.03 2.74 2.74 3.34 3.36 3.48 3.58 3.95 3.58 3.02
1AISC per pound sold and Cash cost per pound sold are non-GAAP measures and Sustaining Capital is a supplementary financial measure, see the "Non-
GAAP and Other Performance Measures" section of this MD&A for discussion.
Production
Caserones copper production in the quarter was the highest since its acquisition by the Company in mid-2023. During the
quarter, mining was concentrated in Phase 6 with some contribution from Phase 7. Copper concentrate production
benefitted from higher grades in Phases 6 and 7 in the second half of 2025, combined with higher recoveries in the quarter
as a result of Phase 6 ore quality. Copper production in the quarter was higher than the prior year comparable period
primarily due to higher grades and recoveries, and higher copper cathode production. These increases were partially offset
by lower throughput as a result of a scheduled maintenance shutdown in the quarter. Copper cathode production
benefitted from increased material placed on the dump leach in previous periods and molybdenum production was lower in
the quarter primarily due to reduced recoveries and grades.
Annual production for copper was at the top-end of the most recent production guidance range. Production in the year was
higher than the prior year comparable period due to higher throughput and recoveries, combined with increased cathode
production. Annual production for molybdenum was lower than in the prior year primarily due to lower grades and
recoveries.
27
===== SIDA 28 =====
Production Costs and Cash Cost
Production costs in the quarter were higher than in the prior year comparable period primarily due to increased copper
sales volumes, including a shipment of approximately 5,100 tonnes of contained payable copper scheduled for September
that was completed in October due to weather-related delays. Production costs in the year were higher than in the prior
year primarily due to increased sales volumes during the year. These volumes were impacted by two shipments totalling
approximately 20,000 tonnes of copper concentrate that were delayed from December 2024, and were instead completed
in Q1 2025. These were partially offset by reduced labour expenses following the insourcing of key maintenance and
operational support functions.
Annual cash cost per pound for the year was within the low-end of the most recent guidance range. Cash cost per pound in
the quarter and year were lower than in the prior year comparable periods primarily due to higher production, lower
treatment charges, and reduced labour expenses, partially offset by lower by-product credits. AISC per pound in the quarter
and year were lower than in the prior year comparable periods primarily due to reduced cash cost.
Gross Profit and Net Earnings
Gross profit in the quarter and year increased from the prior year comparable periods due to higher realized copper prices
and reduced labour costs. Gross profit in the quarter also benefitted from increased sales volumes.
Net earnings in the quarter and year include a deferred tax recovery of $517.0 million (Q4 2024 - $41.5 million) to recognize
deferred tax assets for tax loss carryforwards which can be applied to future taxable income.
28
===== SIDA 29 =====
Chapada (Brazil)
The Chapada mine consists of four open pit mines and on-site processing facilities located in the northern part of Goiás State
of Brazil, approximately 270 km northwest of the national capital of Brasilia. The processing plant has a capacity of 24.0
mtpa, producing high-quality gold-rich copper concentrate. The primary metal is copper, with gold and silver as by-product
metals.
Operating Statistics
2025 2024
(100% Basis) Total Q4 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1
Ore mined (kt) 19,934 6,485 5,444 4,725 3,280 21,949 5,084 5,889 5,851 5,125
Ore milled (kt) 23,687 6,021 6,171 5,675 5,820 22,883 5,945 6,035 5,407 5,496
Grade
Copper (%) 0.25 0.24 0.26 0.27 0.22 0.25 0.28 0.25 0.23 0.23
Gold (g/t) 0.16 0.16 0.16 0.18 0.13 0.17 0.18 0.18 0.18 0.14
Recovery
Copper (%) 74.9 77.0 78.0 73.6 70.0 77.3 76.2 78.1 74.2 81.1
Gold (%) 50.8 49.9 54.6 52.7 44.3 52.2 53.4 51.5 49.3 55.3
Production (contained metal)
Copper (t) 43,974 11,191 12,600 11,274 8,909 43,261 12,323 11,694 9,106 10,138
Gold (oz) 61,331 15,074 17,864 17,544 10,849 65,415 18,614 17,877 14,760 14,164
Silver (koz) 258 66 73 69 50 245 69 63 55 58
Sales volume (payable metal)
Copper (t) 42,040 9,413 13,997 10,284 8,346 39,615 10,200 12,380 8,293 8,742
Gold (oz) 56,569 12,403 19,735 14,402 10,029 57,777 14,660 18,775 12,368 11,974
Revenue ($ millions) 665.3 184.5 215.3 150.9 114.6 497.6 121.2 160.0 118.0 98.4
Production costs ($ millions) 306.8 71.9 96.4 75.0 63.5 282.7 64.4 84.5 69.2 64.6
Gross profit (loss) ($ millions) 164.1 (11.8) 89.2 54.0 32.8 165.0 67.2 48.6 30.4 18.8
Cash cost ($ per pound copper)1 0.75 0.45 0.50 0.75 1.47 1.58 1.07 1.37 2.05 2.01
Sustaining capital ($ millions)1 96.8 21.1 26.1 27.4 22.2 107.8 32.9 20.5 25.2 29.2
AISC ($ per pound copper)1 2.06 1.81 1.58 2.24 2.94 3.07 2.81 2.34 3.72 3.79
1AISC per pound sold and Cash cost per pound sold are non-GAAP measures and Sustaining Capital is a supplementary financial measure, see the "Non-
GAAP and Other Performance Measures" section of this MD&A for discussion.
Production
Mining during the quarter was primarily focused on ore from the South and North open pits, in line with the planned mine
sequence. Ore milled benefitted from improved operational efficiency in the crusher and processing plant, driven by the
Full Potential program which focuses on achieving sustainable operational efficiencies and financial savings. Copper
production in the quarter decreased compared to the prior year comparable period due to lower grades. Head grade
variances reflected changes in the pushback sequencing, with higher ore contribution from the South and North pits and
lower contribution from the higher-grade Southwest pit.
Annual copper and gold production were within the most recent production guidance ranges. Copper production in the
year increased slightly compared to the prior year, primarily driven by higher throughput and partially offset by lower
recoveries. Gold production for the quarter and year was lower than in the prior year comparable periods, primarily due to
reduced grades and recoveries.
Production Costs and Cash Cost
Production costs in the quarter increased from the prior year comparable period, primarily driven by higher costs related to
efforts on water management and unfavorable foreign exchange. These increases were partially offset by lower sales
volume. Production costs in the year were also higher than in the prior year, mainly due to increased sales volumes and
higher royalties, partially offset by favourable foreign exchange.
Cash cost per pound of $0.45 in the quarter was the lowest since Q4 2020. Cash costs for both the quarter and year
improved from the prior year comparable periods primarily due to higher by-product credits as a result of increased
realized gold prices. Annual cash cost was below the low end of the most recent guidance range. AISC per pound in the
29
===== SIDA 30 =====
quarter and year periods was lower than in the prior year comparable periods primarily due to lower cash cost per pound
and reduced sustaining capital expenditures as a result of lower expenditure on spares and equipment acquisition.
Gross Profit (Loss) and Net Earnings (Loss)
In the quarter, gross loss was $11.8 million, compared to a gross profit of $67.2 million from the prior year comparable
period. The decrease was due to a net realizable value write-down of $99.9 million ($65.9 million net of tax) of the long-
term ore stockpile inventory as a result of mine plan changes deprioritizing the timing of processing of stockpiles. This was
partially offset by higher realized copper and gold prices and r educed treatment and refining charges . Gross profit for the
year was in line with the prior year comparable period and the negative impact of the long-term ore stockpile inventory
write-down was offset primarily by increased realized copper and gold prices, lower treatment and refining charges and
higher sales volumes. In addition, gross profit for the quarter and year from the prior year comparable periods benefitted
from a $28.3 million non-cash partial reversal of a previously recorded long-term ore stockpile inventory write-down
Net loss for the quarter and net earnings for the year from prior year comparable periods were also impacted by a non-cash
impairment of $93.4 million ($61.7 million net of tax) of mineral properties relating to the Suruca gold deposit.
30
===== SIDA 31 =====
Eagle (USA)
The Eagle mine consists of the Eagle underground mine, located approximately 53 km northwest of Marquette, Michigan,
U.S.A. and the Humboldt mill, located 61 km west of Marquette. The plant has a processing capacity of 0.7 mtpa, producing
nickel and copper in concentrates. The primary metal is nickel with copper, and minor amounts of cobalt, gold, and
platinum-group metals as by-product metals. In December 2025, the Company announced the sale of Eagle to Talon; the
transaction closed on January 9, 2026.
Operating Statistics (Discontinued Operation)
2025 2024
(100% Basis) Total Q4 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1
Ore mined (kt) 695 182 184 167 162 480 117 91 107 165
Ore milled (kt) 686 173 183 169 161 487 121 90 97 179
Grade
Nickel (%) 1.7 1.5 1.8 1.9 1.7 1.9 1.7 1.4 2.1 2.1
Copper (%) 1.4 1.2 1.3 1.6 1.4 1.4 1.1 1.2 1.7 1.5
Recovery
Nickel (%) 83.7 82.9 84.2 84.6 82.6 82.0 78.7 72.3 85.0 85.2
Copper (%) 95.4 95.3 95.7 95.5 95.0 95.1 94.1 94.3 95.9 95.3
Production (contained metal)
Nickel (t) 9,907 2,174 2,724 2,713 2,296 7,486 1,617 893 1,721 3,255
Copper (t) 8,906 1,957 2,354 2,510 2,085 6,366 1,262 1,027 1,563 2,514
Sales volume (payable metal)
Nickel (t) 7,651 1,756 1,921 2,226 1,748 5,662 1,088 393 2,018 2,163
Copper (t) 7,583 1,637 1,908 2,489 1,549 5,457 877 733 1,789 2,058
Revenue ($ millions) 208.6 52.2 53.1 59.1 44.3 152.5 25.6 12.2 57.4 57.2
Production costs ($ millions) 150.7 38.0 35.2 40.4 37.2 111.9 21.1 12.5 37.7 40.5
Gross profit (loss) ($ millions) 35.6 8.9 11.3 12.8 2.6 7.0 (3.8) (6.5) 9.7 7.6
Cash cost ($ per pound nickel)1 2.55 2.31 2.11 2.02 3.94 4.20 5.22 7.24 3.23 4.04
Sustaining capital ($ millions)1 21.3 3.9 6.6 6.4 4.5 21.2 5.2 7.9 4.0 4.1
AISC ($ per pound nickel)1 5.18 5.13 4.96 4.58 6.20 7.60 9.53 20.02 5.71 6.12
1AISC per pound sold and Cash cost per pound sold are non-GAAP measures and Sustaining Capital is a supplementary financial measure, see the "Non-
GAAP and Other Performance Measures" section of this MD&A for discussion.
Production
Mining and processing activities continued at normal levels during the quarter following the completion of ramp
rehabilitation in Eagle East in the first quarter of the year. The lower production levels in the comparative quarter and year,
which resulted from the fall of ground in the lower ramp in Eagle East in Q2 2024, remained the primary driver of higher
nickel and copper production in the current quarter and year. Annual nickel production in 2025 was within the most recent
production guidance ranges, while annual copper production was below the low end of the most recent guidance range but
within the original guidance range.
Production Costs and Cash Cost
Production costs in the quarter and year were higher than in the prior year comparable periods due to increased nickel and
copper sales volumes. Production costs in the prior quarter and year excluded approximately $11.4 million and $36.1
million, respectively, of overhead costs that were recorded in Other Income and Expense as a result of the partial
suspension of underground mining operations.
Cash cost per pound in the quarter and year was lower than in the prior year comparable periods, primarily reflecting
higher throughput and improved recoveries, resulting in higher nickel production, as well as increased by-product credits
driven by higher copper sales volume and elevated realized copper price. Annual cash cost per pound for the year exceeded
the high end of the most recent production guidance range. AISC per pound in the quarter and year were lower than in the
prior year comparable periods in line with reduced cash cost per pound.
31
===== SIDA 32 =====
Gross Profit and Net Earnings
Gross profit in the quarter was higher than in the prior year comparable period primarily due to increased realized copper
prices and reduced depreciation expense. Gross profit in the year was higher than in the prior year primarily due to
increased nickel and copper sales volumes, lower depreciation expense and increased realized copper price, partially offset
by lower realized nickel price.
Net earnings were impacted by an impairment reversal of $88.4 million ($69.8 million net of tax) after assessing the fair
value of Eagle prior to reclassification as held for sale. The fair value was based on the consideration established in the
definitive agreement with Talon. An impairment charge of $104.9 million ($82.8 million net of tax) was previously recorded
for the Eagle mine at December 31, 2024 due to a decline in nickel prices and prolonged rehabilitation of the Eagle East
ramp.
32
===== SIDA 33 =====
Neves-Corvo (Portugal)
Neves-Corvo is located 200 km southeast of Lisbon, Portugal and consists of an underground mine and on-site processing
facilities. In April 2025, the Company sold Neves-Corvo to Boliden.
Operating Statistics (Discontinued Operation)
2025 2024
(100% Basis) Total2 Q22 Q1 Total Q4 Q3 Q2 Q1
Ore mined, copper (kt) 634 88 546 2,412 643 579 602 588
Ore mined, zinc (kt) 643 100 543 2,127 539 571 499 518
Ore milled, copper (kt) 582 78 504 2,426 643 583 601 599
Ore milled, zinc (kt) 622 85 537 2,127 568 540 507 512
Grade
Copper (%) 1.6 1.9 1.6 1.5 1.4 1.5 1.6 1.5
Zinc (%) 6.7 6.9 6.7 6.5 6.3 7.0 6.3 6.5
Lead (%) 1.3 1.4 1.3 1.2 1.1 1.4 1.3 1.2
Recovery
Copper (%) 78.5 81.1 78.0 76.9 78.3 74.9 77.2 77.3
Zinc (%) 76.3 79.0 75.8 77.3 76.0 76.9 78.2 78.4
Lead (%) 29.5 31.6 29.2 24.6 25.4 24.8 21.7 26.5
Production (contained metal)
Copper (t) 7,348 1,225 6,123 28,228 7,139 6,698 7,347 7,044
Zinc (t) 32,356 4,665 27,691 109,571 27,879 29,509 25,696 26,487
Lead (t) 2,361 369 1,992 6,395 1,553 1,851 1,387 1,604
Silver (koz) 534 75 459 1,876 494 425 433 524
Sales volume (payable metal)
Copper (t) 6,745 1,394 5,351 26,721 5,230 7,707 7,898 5,886
Zinc (t) 27,673 3,823 23,850 88,731 21,357 25,730 20,440 21,204
Lead (t) 1,920 440 1,480 5,700 1,323 1,811 1,242 1,324
Revenue ($ millions) 128.3 19.8 108.4 438.0 97.5 131.2 128.7 80.6
Production costs ($ millions) 90.2 14.3 75.9 323.2 73.2 95.2 83.1 71.7
Gross profit (loss) ($ millions) 38.1 5.5 32.5 (3.5) (2.6) 1.3 15.9 (18.1)
Cash cost ($ per pound copper)1 1.84 2.42 1.69 2.19 1.84 2.13 1.70 3.24
Sustaining capital ($ millions)1 27.7 — 27.7 89.3 12.7 26.3 27.9 22.4
AISC ($ per pound copper)1 3.89 2.51 4.25 3.92 3.37 3.84 3.46 5.13
1AISC per pound sold and Cash cost per pound sold are non-GAAP measures and Sustaining Capital is a supplementary financial measure, see the "Non-
GAAP and Other Performance Measures" section of this MD&A for discussion.
2 Neves-Corvo 2025 results are to April 16, 2025.
Production
Neves-Corvo was sold on April 16, 2025. In 2025 through to the date of sale, copper production was lower than in the prior
year comparable period due to lower throughput, and zinc production increased due to higher throughput and grades.
Production Costs and Cash Cost
Production costs in 2025 through to the date of sale were higher than in the prior year comparable period primarily due to
higher zinc sales volume and an increase in electricity and maintenance costs, partially offset by favourable foreign
exchange. Electricity costs increased as a result of higher market energy prices. Cash cost per pound in Q1 2025 was lower
than in the prior year comparable period primarily due to higher by-product credits driven by an increase in zinc sales
volume and higher realized zinc prices as well as favourable foreign exchange, partially offset by lower copper sales volume.
AISC per pound in Q1 2025 was lower than AISC from the prior year comparable period due to lower cash cost per pound
offset partially by higher sustaining capital expenditures.
Gross Profit (Loss)
Gross profit in 2025 through to date of sale was higher than the prior year comparable period primarily due to no
depreciation being taken on assets classified as held for sale, as well as higher realized copper and zinc prices and lower
treatment and refining charges, partially offset by lower copper sales volume and higher electricity costs. Net earnings were
impacted by a non-cash impairment charge of $ 66 million in Q1 2025 to recognize mining rights and mineral properties at
their estimated fair value, based on the cash proceeds received.
33
===== SIDA 34 =====
Zinkgruvan (Sweden)
The Zinkgruvan mine consists of an underground mine and on-site processing facilities, located approximately 200 km
southwest of Stockholm, Sweden. In April 2025, the Company sold Zinkgruvan to Boliden.
Operating Statistics (Discontinued Operation)
2025 2024
(100% Basis) Total2 Q22 Q1 Total Q4 Q3 Q2 Q1
Ore mined, zinc (kt) 393 64 329 1,246 332 300 308 306
Ore mined, copper (kt) 59 — 59 184 8 84 45 47
Ore milled, zinc (kt) 403 66 337 1,239 311 302 313 313
Ore milled, copper (kt) 51 — 51 207 14 76 42 75
Grade
Zinc (%) 7.0 7.5 6.9 7.3 8.4 6.3 7.7 6.7
Lead (%) 2.8 3.2 2.8 3.1 3.7 2.4 3.7 2.7
Copper (%) 2.1 — 2.1 2.2 2.0 2.1 2.0 2.4
Recovery
Zinc (%) 91.6 92.6 91.4 90.9 91.8 89.8 90.6 91.1
Lead (%) 81.1 78.3 81.7 80.0 83.0 78.5 78.2 79.4
Copper (%) 90.2 — 90.2 88.1 86.7 87.3 88.0 89.0
Production (contained metal)
Zinc (t) 25,877 4,620 21,257 82,133 24,067 17,101 21,764 19,201
Lead (t) 9,291 1,705 7,586 30,888 9,481 5,693 8,966 6,748
Copper (t) 971 — 971 3,964 258 1,385 747 1,574
Silver (koz) 737 152 585 2,513 637 537 699 640
Sales volume (payable metal)
Zinc (t) 20,698 1,548 19,150 68,086 18,627 15,124 18,510 15,825
Lead (t)3 6,948 (120) 7,068 28,036 7,786 6,346 9,069 4,835
Copper (t) 982 — 982 3,809 457 1,775 821 756
Revenue ($ millions) 72.4 0.8 71.6 256.8 67.5 68.6 76.6 44.1
Production costs ($ millions) 36.9 2.7 34.2 122.0 29.1 30.1 32.7 30.1
Gross profit (loss) ($ millions) 35.5 (1.9) 37.4 97.7 32.5 24.2 35.0 6.0
Cash cost ($ per pound)1 0.46 1.18 0.40 0.41 0.43 0.16 0.39 0.65
Sustaining capital ($ millions)1 30.4 9.1 21.3 65.7 22.5 15.5 13.3 14.3
AISC ($ per pound)1 1.13 3.85 0.91 0.87 0.99 0.66 0.74 1.10
1AISC per pound sold and Cash cost per pound sold are non-GAAP measures and Sustaining Capital is a supplementary financial measure, see the "Non-
GAAP and Other Performance Measures" section of this MD&A for discussion.
2 Zinkgruvan 2025 results are to April 16, 2025.
3 Lead sales volume in Q2 2025 was impacted by volume adjustments.
Production
Zinkgruvan was sold on April 16, 2025. In 2025 through to the date of sale, zinc and lead production were higher than in the
prior year comparable period due to higher throughput, grades and recoveries. Zinc production was positively impacted by
favourable mine sequencing and high grade stopes. Copper production was lower than in the prior year comparable period
primarily due to lower throughput and remained in line with the mine plan as zinc production was prioritized.
Production Costs and Cash Cost
Production costs in 2025 through to the date of sale were higher than in the prior year comparable period primarily due to
higher zinc and lead sales volumes. Cash cost per pound in Q1 2025 was lower than in the prior year comparable period
primarily due to increased zinc sales volume as well as higher by-product credits as a result of higher copper sales volume
and higher copper realized prices. AISC per pound in Q1 2025 was lower than in the prior year comparable period due to
due to lower cash cost per pound slightly offset by higher sustaining capital expenditures.
Gross Profit
Gross profit in 2025 through to the date of sale was higher than in the prior year comparable period primarily due to no
depreciation being taken on assets classified as held for sale, as well as higher realized zinc and copper prices, lower
treatment and refining charges and higher zinc, copper and lead sales volume.
34
===== SIDA 35 =====
Vicuña Project (Argentina and Chile)
Integrated Technical Study Results
The results of an integrated technical study were published on February 16, 2026 and highlighted the Vicuña Project as a
development project with the potential to rank among the top five copper, gold, and silver mines globally. Highlights from
the PEA are outlined below and more information is set out in the news release dated February 16, 2026.
The development of the Vicuña district is envisioned in a staged approach. Stage 1 encompasses a sulphide mill and the
Josemaria deposit, establishing an initial open pit mine and concentrator designed for future expansion to accelerate first
production and early cash flow. Stage 2 builds on this foundation by developing the Filo del Sol leachable oxides and a
corresponding SX/EW plant for copper, gold and silver recovery. Stage 3 represents the long-term maturation of the district
through expansion of the concentrator and development of the Filo del Sol sulphide deposit, enabling peak, sustained
production, positioning the Vicuña Project as a long-life, globally significant copper operation. Stage 3 also integrates key
district infrastructure, including a desalination plant and associated pipeline, and return concentrate slurry pipeline, to
support expansion of the district.
• Potential to be a top five copper, gold, and silver mine: Average annual production of 400,000 tonnes copper,
700,000 oz gold and 22 million oz ("Moz") silver over the first 25 full years of operation.
• Peak production of +500 ktpa copper: Average production over a ten-year period of over 500,000 tonnes copper,
800,000 oz gold and 20 Moz silver or 800,000 tonnes copper equivalent (“CuEq”)1.
• Multi-generational asset: Initial +70-year life of mine ("LOM"), producing approximately 22.3 million tonnes (“Mt”)
of copper, 37.2 Moz of gold and 763 Moz of silver.
• Significant free cash flow: Average annual free cash flow of $2.2 billion per year (after expansionary capital) during
the first 25 years.
• Leveraged to copper and gold: LOM revenue contribution of 60% copper, 32% gold and 8% silver.
• Capital intensity below $30,000/tonne CuEq: Stage 1 capital of $7.1 billion with an after-tax payback period of 8.42
years and an after-tax internal rate of return ("IRR") of 14.8%.
• Resource growth: The Updated Vicuña Mineral Resource grew significantly compared to the previous estimate3.
◦ Contained copper4 of 14 Mt Measured and Indicated (“M&I”) and 32 Mt Inferred. An increase of 12%
contained M&I copper and 28% Inferred copper.
◦ Contained gold 4 of 36 Moz M&I and 61 Moz Inferred. An increase of 12% contained M&I gold and 26%
Inferred gold.
◦ Contained silver4 of 729 Moz M&I and 1,051 Moz Inferred. An increase of 11% M&I silver and 30%
Inferred silver.
• Base-case scenario: Net present value ("NPV8%") of $9.5 billion after-tax at $4.60/lb copper, $3,300/oz gold and
$40/oz silver.
◦ Stage 1 is clearly defined providing a blueprint for initial development, ongoing studies on Stages 2 and 3
are expected to deliver further optimization.
• At spot copper, gold and silver prices ($6.00/lb copper, $5,000/oz gold & $80/oz silver), the NPV8% increases to
$28.8 billion and the IRR to 25.5% with a payback of 5.4 years.
The results of the Study, including the Updated Vicuña Mineral Resource, will be detailed in an updated technical report
that will be filed under the Company’s profile on SEDAR+ at www.sedarplus.ca. These results supersede the “NI 43-101
Technical Report on the Vicuña Project, Argentina and Chile” with an effective date of April 15, 2025, including the Mineral
Resource estimate set out therein.
35
1 Copper equivalent (CuEq) based on production after recoveries and metal prices of $4.60/lb Cu, $3,300/oz Au and $40/oz Ag.
2 Initial capital from the start of 2027 and payback period from the start of 2030.
3 See news release dated May 4, 2025 and previous technical report entitled “NI 43-101 Technical Report on the Vicuña Project, Argentina and Chile”, with
an effective date of April 15, 2025 for information with respect to the previous Mineral Resource estimate. The Project is a 50:50 joint venture between
Lundin Mining and BHP Canada. Lundin Mining’s attributable interest in the Mineral Resource estimate is 50%.
4 M&I contained metal is based on estimated tonnes of 4,181Mt and estimated grades of 0.34% Cu, 0.27g/t Au and 5.4g/t Ag. Inferred contained metal is
based on estimated tonnes of 10,641Mt at estimated grades of 0.30% Cu, 0.18g/t Au and 3.1g/t Ag.
===== SIDA 36 =====
RIGI Application
During the quarter, Vicuña submitted an application to the Incentive Regime for Large Investments (RIGI) in Argentina for
the inclusion of the Vicuña Project under the Long-Term Strategic Export Projects designation (PEELP). Argentina’s RIGI
regime is designed to attract and accelerate large-scale investment through long-term fiscal stability and transparent
regulatory conditions.
RIGI offers regulatory stability, including lower corporate and dividend withholding tax rates, removal of export duties,
value added tax offsets and repatriation of revenues. The Vicuña Project is the first mining project to apply for the RIGI
PEELP, which is designed to support large scale, long-term investments into Argentina and provides longer benefit periods
(40 years vs 30 years) and accelerated timelines to repatriate revenues and export duty exemptions, as compared to the
regular RIGI regime.
Project Development
In 2025, parallel studies were advanced supporting a multi-phased development concept pertaining to the Josemaria and
Filo del Sol deposits resulting in an integrated technical study, the results of which were published on February 16, 2026 .
These results, including the Updated Vicuña Mineral Resource estimate, will be detailed in an updated technical report that
will be filed under the Company’s profile on SEDAR+ at www.sedarplus.ca.
The Josemaria Environmental Impact Assessment advanced through review by the San Juan authorities with a site visit
performed during the quarter.
Drilling activities at Filo del Sol advanced with 16,619 metres completed during the quarter, bringing the year-to-date total
to 65,611 metres.
During the year, the Company spent $167.2 million in capital expenditures compared to $243.6 million in 2024. Capital
expenditures included the project development activities noted above and were impacted by the formation of Vicuña on
January 15, 2025. From this date, the Company's expansionary capital expenditures include 50% of Vicuña's capital
expenditures compared to 100% funded for Josemaria prior to the formation of Vicuña.
The Company intends to continue with to work with its partner, BHP, and Vicuña on a work plan to advance the Vicuña
Project to production. Key activities and milestones include:
• Ongoing detailed engineering and design activities for Stage 1.
• Trade off studies and optimization of Stages 2 & 3.
• Initiate construction of the North Access Road.
• Further advancement of project readiness in preparation for early earthworks.
• Advancement of financing structure within Vicuña to fund construction.
• Approval of the Incentive Regime for Large Investments under the Long-Term Strategic Export Projects designation
(RIGI PEELP) application in Argentina.
• Receipt of the Project permit amendment.
The next phase for the Vicuña Project is detailed design and engineering. The technical team will focus on advancing
engineering in order to prepare procurement and other activities to support an efficient project start-up and mitigate risks
of increasing lead times and variable international logistics.
About Vicuña
On January 15, 2025, the Company completed the Filo Acquisition and the Joint Arrangement, resulting in the Company
indirectly holding a 50% interest in Vicuña, an independently managed joint operation which owns the Josemaria deposit in
Argentina and the Filo del Sol deposit in Argentina and Chile. BHP indirectly owns the remaining 50% interest in Vicuña.
36
===== SIDA 37 =====
Expansionary Projects
The Company has a number of brownfield low-capital intensity expansionary projects that are expected to contribute to
medium-term growth in its existing operating asset portfolio.
Candelaria Underground Expansion
The Candelaria underground expansion project is expected to increase underground throughput capacity to approximately
22,000 tonnes per day from prior levels of approximately 12,000 to 14,000 tonnes per day, targeting a medium-term
increase in annual copper production of approximately 14,000 tonnes of copper which adds roughly 10% to current
production levels. The opportunity includes phased insourcing of the Company's underground mining contract and an
increase in the number of active mining stopes. Candelaria’s 2026 copper and gold production guidance incorporates lower
underground mining rates in the first half of the year as the Company insources the underground mining contract. Internal
recruitment commenced in mid-2025 with blasting, loading and hauling activities insourced at the end of the year.
Insourcing of additional activities are expected to continue through 2026.
Projects are also ongoing to support the mine life extension under the Environmental Impact Assessment ("2040 EIA").
Caserones Cathode Plant Utilization
The Caserones cathode plant capacity is approximately 35,000 tonnes of copper cathode production per year, representing
an opportunity to increase production from prior levels through higher utilization rates.
Additional oxide material placed on the dump leach, together with improved leaching practices, increased copper cathode
production to 25,817 tonnes in 2025. As a result of these optimization efforts, annual copper cathode production is forecast
to increase to approximately 26,000 to 28,000 tonnes in 2026 through 2028, an improvement of 6,000–8,000 tonnes from
prior levels.
Chapada - Saúva Deposit
The Saúva deposit is approximately 15 kilometres from the Chapada mine and represents a near mine opportunity to add
approximately 10,000 to 15,000 tonnes of copper production per year and 35,000 to 45,000 ounces of gold production per
year. The project would include the installation of additional grinding capacity and higher grade ore from Saúva to offset
lower grade material currently being mined at Chapada.
An internal prefeasibility study was completed on Saúva phase 1 during the quarter. A sanctioning decision on the
installation of additional grinding capacity is expected in the second half of 2026, while detailed design and engineering
work will continue along with Saúva permitting. An updated Chapada technical report, including the Saúva project, is
expected to be released in the second half of 2026.
Exploration Update
In 2025, exploration activity focused on in-mine and near-mine targets at the Company's operations.
At Caserones, seven rigs drilled 10,329 metres during the quarter targeting high-grade copper breccias in the Caserones pit
and copper sulphides at Angelica. Exploration drilling also commenced at the Centauro target. In total, 18,908 metres were
drilled at Caserones during the year.
No exploration drilling was undertaken at Candelaria during the quarter. In total, 7,642 metres were drilled at Candelaria
during the year focusing on Candelaria Norte, Candelaria South (Mariana) and La Portuguesa.
The annual drilling program at Chapada was completed during the quarter with 12,507 metres drilled during the year,
primarily in the Saúva resource area.
37
===== SIDA 38 =====
Liquidity and Capital Resources
Consolidated Cash Flow
Year ended December 31,
($ millions) 2025 2024 Change
Cash provided by operating activities from continuing operations 1,207.9 1,311.4 (103.5)
Cash provided by (used in) investing activities from continuing operations 707.2 (834.9) 1,542.1
Cash used in financing activities from continuing operations (2,080.3) (342.9) (1,737.4)
Effect of foreign exchange on cash balances 1.5 (4.2) 5.7
(Decrease) increase in cash and cash equivalents (114.1) 163.5 (277.6)
Opening cash and cash equivalents 432.3 268.8 163.5
Closing cash and cash equivalents 296.2 357.5 (61.3)
Adjusted operating cash flow1 - continuing operations 1,621.9 1,089.9 532.0
Free cash flow from operations1 - continuing operations 773.6 825.6 (52.0)
Free cash flow1 - continuing operations 538.9 539.9 (1.0)
1This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
Cash provided by operating activities related to continuing operations during the year was $103.5 million lower than in the
prior year. The decrease was primarily due to working capital movements including increased trade receivables at
Candelaria and Caserones, partially offset by higher gross profit. Adjusted operating cash flow1 - continuing operations
during the year was higher than in the prior year after adjusting for the significant build of working capital.
The sale of the Neves-Corvo and Zinkgruvan operations in April 2025 contributed $1.3 billion in net proceeds to cash
provided by investing activities related to continuing operations. In addition, capital expenditures at continuing operations
were $101.5 million lower than in the prior year. Lower sustaining capital expenditures were primarily due to reduced
deferred stripping at Candelaria and lower expansionary capital expenditures were primarily due to the formation of Vicuña
on January 15, 2025. From this date, the Company's expansionary capital expenditures include 50% of Vicuña's capital
expenditures. A summary of capital expenditures on a cash basis is outlined below.
38
1 This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
===== SIDA 39 =====
Summary of Capital Expendituresa
Year ended December 31,
($ millions) 2025 2024
Candelaria 21.6 —
Chapada 2.4 —
Vicuña 167.2 243.6
Expansionary capital investment from continuing operations 191.2 243.6
Candelaria 224.4 275.7
Caserones 156.3 144.0
Chapada 96.8 107.8
Other 0.3 0.4
Sustaining capital investment from continuing operations 477.8 527.9
Total capital expenditures from continuing operations 669.0 771.5
Reconciliation to Investment in mineral properties, plant and equipment:
Capitalized interest 15.6 14.6
Total Investment in mineral properties, plant and equipment from continuing operations 684.6 786.1
Total Investment in mineral properties, plant and equipment from discontinued operationsb 79.2 176.2
Total Investment in mineral properties, plant and equipment (all operations) 763.8 962.3
a Capital expenditures are reported on a cash basis, as presented in the consolidated statement of cash flows. Sustaining capital expenditures is a
supplementary financial measure and expansionary capital expenditures is a non-GAAP measure – see the "Non-GAAP and Other Performance
Measures" section of this MD&A for discussion.
b Discontinued operations include Eagle, and Neves-Corvo and Zinkgruvan financial results to April 16, 2025.
Cash used in financing activities related to continuing operations increased from the prior year primarily due to the
repayment in full of the $1,150.0 million outstanding balance of the Company's term loan and repayment of $170.0 million
of amounts drawn on the RCF with the net cash proceeds from the sale of Neves-Corvo and Zinkgruvan. These increases
were partially offset by lower interest and dividends paid. The Company repurchased shares under its NCIB totalling $153.7
million in the year compared to $24.4 million during 2024.
Free cash flow from operations 1 - continuing operations decreased from the prior year primarily due to a working capital
build, partially offset by reduced sustaining capital expenditures. Free cash flow1 - continuing operations was consistent
with the prior year due to lower expansionary capital expenditures at Vicuña offset by the same factors impacting free cash
flow from operations - continuing operations.
39
1 This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
===== SIDA 40 =====
Liquidity and Financial Position
($ millions) December 31, 2025 December 31, 2024 Change
Cash and cash equivalents 296.2 357.5 (61.3)
Total assets1 10,820.6 10,406.8 413.8
Debt2 237.1 1,757.0 (1,519.9)
Lease liabilities2 212.5 249.2 (36.7)
Net cash (debt)1, 3 77.4 (1,332.4) 1,409.8
1 Total assets and Net cash (debt) include assets and liabilities classified as held for sale.
2 Debt and lease liabilities include both current and non-current portions.
3 This is a non-GAAP measure and includes balances classified as held for sale - see section "Non-GAAP and Other Performance Measures" of this MD&A
for discussion.
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.
The Company was in a net cash position as at December 31, 2025 of $77.4 million compared to a net debt position of
$1,332.4 million at the prior year end primarily due to net cash proceeds from the sale of the Neves-Corvo and Zinkgruvan
operations, which were used to repay in full the $1,150.0 million outstanding balance of the Company's term loan and to
repay $170.0 million of amounts drawn on the RCF.
During the year, 15,088,180 shares were purchased under the Company's NCIB program for $150.0 million (2024 -
2,815,200 for $24.4 million).
Commodity prices, primarily copper and gold, 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. The Company economically hedges certain of its operating currencies as well as metal prices and certain input
commodities (refer to "Financial Instruments" section below).
Contractual Obligations, Commitments and Contingencies
The Company has contractual obligations and capital commitments as described in Note 27 “Commitments and
contingencies” in the Company’s consolidated financial statements for the year ended December 31, 2025 . From time to
time, the Company may also be involved in legal proceedings that arise in the ordinary course of its business.
Significant changes to commitments and contingencies, from those reported at December 31, 2024, are described below:
In respect of the 2017 taxation year, the Canada Revenue Agency ("CRA") issued a reassessment denying the Company’s
2007 election to increase the tax cost of its investment in a subsidiary. The reassessment proposes an increase in taxable
income of approximately $456 million, which would result in additional income taxes payable of approximately $114.1
million and interest of approximately $46.2 million. The Company filed a Notice of Objection on January 28, 2026 and will
vigorously and expeditiously defend its tax filing position through CRA's Appeals Division and, if required, court proceedings.
No provision has been recognized as the Company believes its filing position is in compliance with Canadian tax law.
40
===== SIDA 41 =====
The Company has the following contractual obligations and capital commitments as at December 31, 2025:
Payments due by period1
($ millions) <1 year 1-5 years Thereafter Total
Continuing operations
Reclamation and closure provisions 12.1 70.6 632.4 715.1
Debt 180.8 60.0 — 240.8
Lease liabilities 61.6 129.8 113.4 304.7
Capital commitments 193.7 130.0 — 323.7
Defined pension obligations — — 3.3 3.3
Deferred consideration 10.0 120.0 — 130.0
458.2 510.4 749.1 1,717.7
Discontinued operations
Reclamation and closure provisions 3.6 30.1 45.7 79.4
Lease liabilities 2.3 8.5 — 10.8
Capital commitments 3.3 — — 3.3
9.2 38.6 45.7 93.5
Total 467.4 549.0 794.8 1,811.2
1Reported on an undiscounted basis, before inflation.
Capital Resources
On February 16, 2026, the Company announced the results of an integrated technical study on the Vicuña Project, including
estimated capital and operating costs. For Stage 1 of the Vicuña Project, the Study contemplates a 40-month capital
development and construction timeline that includes a 6-month commissioning period. Total initial capital cost for Stage 1
is estimated at $7.1 billion and $18.1 billion for stages 1-3. LOM sustaining capital is estimated at $30.3 billion over 70 years
for all stages, including closure costs. The Study outlines a comprehensive development plan for Stage 1, encompassing
construction of the concentrator and development of the Josemaria mine. The capital estimates and operating cost
estimates are established from first principles. For Stage 1, estimates were completed to a class 3, contingency has been
applied to the estimate on an area and discipline basis, variances ranged from -15% to +20% depending on the area and
level of quotation. The Stages 2 and 3 estimate are completed to a class 5 and variances range from -35% to +50%.
On February 12, 2026, the Company announced the receipt of commitments from 17 lenders to upsize and amend its RCF,
increasing the total committed amount from $1.75 billion to $4.5 billion with the Company initially having access to $2.25
billion. Upon satisfaction of certain conditions, the RCF will expand to $3.5 billion, and upon sanctioning Stage 1 of the
Vicuña Project, will increase to the full $4.5 billion. In addition, the maturity date has been extended to 2031. Once
amended, the RCF will bear interest on a sliding scale of adjusted term SOFR plus a margin of 1.45% to 2.50%.
As at December 31, 2025, the Company has an RCF of $1,750.0 million with $60.0 million outstanding (December 31, 2024 -
$270.0 million). The RCF matures in April 2029 and bears interest on drawn funds at rates of Term Secured Overnight
Financing Rate (“Term SOFR”) plus Credit Spread Adjustment (“CSA”) of 0.10% plus an applicable margin of 1.40% to 2.55%,
depending on the Company’s net leverage ratio and progress against sustainability performance targets. In March 2025, the
security previously held over certain assets in the USA was removed from the RCF. The facility is subject to customary
covenants.
In April 2025, the Company repaid in full the $1,150.0 million outstanding balance of the term loan and $170.0 million of
amounts drawn on the RCF using the cash proceeds from the sale of the Neves-Corvo and Zinkgruvan operations. As a result
of the repayment, the term loan has been extinguished and cannot be redrawn. In April 2025, the Company also repaid the
$102.7 million (€95.0 million) outstanding balance of commercial paper programs at Neves-Corvo immediately prior to its
sale.
As at December 31, 2025, the Company was in compliance with its debt covenants.
41
===== SIDA 42 =====
As at December 31, 2025, certain subsidiaries of the Company had outstanding unsecured term loans totalling $180.8
million (December 31, 2024 - $245.9 million) which accrue interest at rates ranging from 4.30% to 5.19% per annum with
interest payable upon their maturities, ranging from January to March 2026.
The development of the Vicuña Project requires significant capital commitments from the Company and additional funding,
beyond debt from the Company's upsized RCF, may be required to advance the projects to completion.
42
===== SIDA 43 =====
Financial Instruments
Revenue, cost of goods sold and capital expenditures are affected by certain external factors including fluctuations in metal
prices, energy prices, and changes in exchange rates between the CLP, the BRL, the ARS and the $.
During the year, the Company did not enter into any new derivative contracts. At December 31, 2025 , existing derivative
contracts consist of foreign currency option contracts as well as commodity option contracts. The option contracts consist
of put and call contracts in a collar structure with all contracts maturing in 2026.
The derivative contracts have not been designated as hedges for purposes of hedge accounting and are measured at fair
value as assessed by pricing models based on active market prices. Changes in fair value are recognized in other income and
expense in the consolidated statement of earnings.
For a detailed discussion of the Company’s financial instruments, refer to Note 26 "Financial Instruments" in the Company’s
consolidated financial statements for the year ended December 31, 2025.
The Company’s trade receivables also contain provisional pricing sales arrangements that are valued using quoted forward
market prices. The following table illustrates the sensitivity of the Company’s risk on final settlement of its provisionally
priced revenues as at December 31, 2025.
Metal Payable Metal
Provisional price on
December 31, 2025 Change
Effect on Revenue
($millions)
Copper 80,435 t $5.64/lb +/- 10 % +/- $100.0
Gold 31,760 oz $4,343/oz +/- 10 % +/- $13.8
Molybdenum 619 t $23.30/lb +/- 10 % +/- $3.2
For further information on the Company's management of financial risks, including those associated with financial and
other instruments, refer to Note 30 "Management of Financial Risk" of the Company’s consolidated financial statements for
the year ended December 31, 2025.
Foreign Currency Denominated Production Costs
For the year ended December 31, 2025, Candelaria and Caserones production costs are approximately 55% CLP
denominated and Chapada production costs are approximately 75% BRL denominated.
Period end exchange rates having a meaningful impact on foreign exchange recorded for continuing operations as at
December 31, 2025 were:
December 31, 2025 December 31, 2024 Change
Brazilian Real (USD:BRL) 5.50 6.19 (0.69)
Chilean Peso (USD:CLP) 911 992 (81)
Argentine Peso (USD:ARS) 1,455 1,033 422
The average exchange rates impacting continuing operations were:
Three months ended December 31, Year ended December 31,
2025 2024 Change 2025 2024 Change
Brazilian Real (USD:BRL) 5.39 5.84 (0.45) 5.59 5.39 0.20
Chilean Peso (USD:CLP) 935 963 (28) 951 944 7
Argentine Peso (USD:ARS) 1,436 1,002 434 1,244 916 327
43
===== SIDA 44 =====
Non-GAAP and Other Performance Measures
The Company uses certain performance measures in its analysis and disclosure. These performance measures have no
standardized 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 cost.
Production costs
from continuing
operations and
Production costs
from discontinued
operations
Copper, zinc, nickel and
consolidated 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).
Consolidated cash
cost per pound sold
This ratio is calculated by dividing combined cash cost for
primary copper producing assets by combined sales
volume for copper producing assets. Primary copper
producing assets include Candelaria, Caserones, and
Chapada.
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
from continuing
operations and
Production costs
from discontinued
operations
Copper, zinc and nickel AISC
and AISC 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.
44
===== SIDA 45 =====
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, gold, and
molybdenum) adding back treatment and refining charges,
cash effects of gold, silver and copper streams, recognition
of deferred revenue from the allocation of upfront
streaming proceeds, divided by the volume of metal sold in
the period.
Revenue from
continuing
operations
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, and finance costs, net. 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,
contingent consideration 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 or reversals,
goodwill impairment, costs relating to the sinkhole near
Ojos del Salado operations, costs relating to the partial
suspension of underground operations at Eagle, gains or
losses on disposals or partial disposals of subsidiaries,
income from investments in associates, insurance proceeds
and litigation and settlements.
Net earnings (loss)
from continuing
operations and
from discontinued
operations
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, deferred tax recovery or expense
arising from changes in tax rates, and deferred tax recovery
or expense relating to disposals or partial disposals of
subsidiaries. Adjustments exclude amounts attributable to
non-controlling interests.
Net earnings (loss)
attributable to
Lundin Mining
Corporation
shareholders and
Net earnings (loss)
from continuing
operations
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 earnings (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
related to
continuing
operations and
Cash provided by
operating activities
related to
discontinued
operations
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 further
considers expansionary capital
expenditure.
Free cash flow Defined as cash flow provided by operating activities,
deducting sustaining capital expenditures and
expansionary capital expenditures (both as defined above).
1See the 'Revenue Overview' section of this MD&A for reconciliations to revenue, the most directly comparable IFRS measure.
45
===== SIDA 46 =====
Non-GAAP financial
measure or ratio Definition
Most directly
comparable IFRS
measure
Why management uses the
measure and why it is useful to
investors
Adjusted operating
cash flow
Defined as cash provided by operating activities, excluding
changes in non-cash working capital items.
Cash provided by
operating activities
related to
continuing
operations and
Cash provided by
operating activities
related to
discontinued
operations
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 cash (debt) Net cash (debt) is defined as total debt excluding deferred
financing fees, less cash and cash equivalents.
During the fourth quarter of 2025, management updated
the calculation of net cash (debt) to exclude lease
liabilities. Management believes this revised definition
provides a more meaningful measure of the Company's
leverage and better reflects how management evaluates its
capital structure and liquidity. Prior-period amounts have
been conformed to the current definition to ensure
comparability across periods.
Debt, current
portion of debt,
cash and cash
equivalents.
Additionally, the
above items as
included in assets
held for sale, and
liabilities held for
sale.
These measures are indicative
of the Company's financial
position.
46
===== SIDA 47 =====
Cash Cost per Pound and AISC per Pound
Cash Cost per Pound and AISC per Pound can be reconciled to Production costs on the Company's Consolidated Statements
of Earnings as follows:
Three months ended December 31, 2025
Continuing operations Candelaria Caserones Chapada Consolidated
Total -
continuing
operations1($ millions, unless otherwise noted) (Cu) (Cu) (Cu) (Cu)
Sales volumes (contained metal):
Tonnes 32,882 45,134 9,413 87,429
Pounds (000s) 72,492 99,503 20,752 192,747
Production costs 226.6 247.3 71.9 545.8 546.8
Less: Royalties and other (9.1) (20.4) (4.9) (34.4) (35.5)
217.5 226.9 67.0 511.4 $ 511.4
Deduct: By-product credits2 (56.8) (41.8) (58.0) (156.6) (156.6)
Add: Treatment and refining charges 5.6 1.9 0.4 7.9 7.9
Cash cost 166.3 187.0 9.4 362.7 362.7
Cash cost per pound ($/lb) 2.29 1.88 0.45 1.88
Add: Sustaining capital expenditure 79.5 56.8 21.1
Royalties 4.3 15.2 4.3
Reclamation and other closure accretion and
depreciation 1.9 0.3 1.7
Leases and other 2.3 13.8 1.0
All-in sustaining cost 254.3 273.1 37.5
AISC per pound ($/lb) 3.51 2.74 1.81
1 Includes immaterial amounts related to other segments.
2 By-product credits are presented net of the associated treatment and refining charges.
Three months ended December 31, 2025
Discontinued Operations Eagle
Total -
discontinued
operations($ millions, unless otherwise noted) (Ni)
Sales volumes (Contained metal):
Tonnes 1,756
Pounds (000s) 3,872
Production costs 38.0 38.0
Less: Royalties and other (2.8) (2.8)
35.2 35.2
Deduct: By-product credits1 (26.3) (26.3)
Add: Treatment and refining charges — —
Cash cost 8.9 8.9
Cash cost per pound ($/lb) 2.31
Add: Sustaining capital expenditure 3.9
Royalties 2.7
Reclamation and other closure accretion and
depreciation 0.8
Leases and other 3.5
All-in sustaining cost 19.9
AISC per pound ($/lb) 5.13
1 By-product credits are presented net of the associated treatment and refining charges.
47
===== SIDA 48 =====
Three months ended December 31, 2024
Continuing operations Candelaria Caserones Chapada Consolidated
Total -
continuing
operations1($ millions, unless otherwise noted) (Cu) (Cu) (Cu) (Cu)
Sales volumes (contained metal):
Tonnes 49,052 26,750 10,200 86,002
Pounds (000s) 108,141 58,973 22,487 189,601
Production costs 201.0 200.2 64.4 465.7 465.9
Less: Royalties and other (7.8) (14.2) (4.8) (26.8) (27.0)
193.2 186.0 59.6 438.9 438.9
Deduct: By-product credits2 (43.3) (46.6) (39.4) (129.3) (129.3)
Add: Treatment and refining charges 15.1 8.4 3.9 27.4 27.4
Cash cost 165.0 147.8 24.1 337.0 337.0
Cash cost per pound ($/lb) 1.53 2.51 1.07 1.78
Add: Sustaining capital expenditure 55.5 43.0 32.9
Royalties 4.7 7.7 2.7
Reclamation and other closure
accretion and depreciation 2.1 (4.5) 2.4
Leases and other 1.4 17.2 1.1
All-in sustaining cost 228.7 211.3 63.2
AISC per pound ($/lb) 2.12 3.58 2.81
1 Includes immaterial amounts related to other segments.
2 By-product credits are presented net of the associated treatment and refining charges.
Three months ended December 31, 2024
Discontinued operations Eagle Neves-Corvo Zinkgruvan
Total -
discontinued
operations($ millions, unless otherwise noted) (Ni) (Cu) (Zn)
Sales volumes (contained metal):
Tonnes 1,088 5,230 18,627
Pounds (000s) 2,399 11,531 41,066
Production costs 21.1 73.2 29.1 123.4
Less: Royalties and other (0.8) — — (0.8)
20.3 73.2 29.1 122.6
Deduct: By-product credits1 (7.8) (56.6) (19.1) (83.5)
Add: Treatment and refining charges — 4.7 7.4 12.1
Cash cost 12.5 21.2 17.5 51.2
Cash cost per pound ($/lb) 5.22 1.84 0.43
Add: Sustaining capital expenditure 5.2 12.7 22.5
Royalties 0.7 0.8 —
Reclamation and other closure
accretion and depreciation 1.7 1.2 0.7
Leases and other 2.7 2.9 0.1
All-in sustaining cost 22.8 38.9 40.7
AISC per pound ($/lb) 9.53 3.37 0.99
1 By-product credits are presented net of the associated treatment and refining charges.
48
===== SIDA 49 =====
Year ended December 31, 2025
Continuing operations Candelaria Caserones Chapada Consolidated
Total -
continuing
operations1($ millions, unless otherwise noted) (Cu) (Cu) (Cu) (Cu)
Sales volumes (contained metal):
Tonnes 140,500 138,287 42,040 320,827
Pounds (000s) 309,749 304,870 92,682 707,301
Production costs 783.9 854.5 306.8 1,945.2 1,948.1
Less: Royalties and other (18.6) (52.4) (22.3) (93.3) (96.2)
765.3 802.1 284.5 1,851.9 1,851.9
Deduct: By-product credits2 (193.1) (149.8) (220.4) (563.3) (563.3)
Add: Treatment and refining charges 22.9 8.3 5.0 36.2 36.2
Cash cost 595.1 660.6 69.1 1,324.8 1,324.9
Cash cost per pound ($/lb) 1.92 2.17 0.75 1.87
Add: Sustaining capital expenditure 224.4 156.3 96.8
Royalties 15.7 41.9 14.5
Reclamation and other closure
accretion and depreciation 7.9 2.7 6.8
Leases and other 7.5 63.5 4.1
All-in sustaining cost 850.6 925.0 191.3
AISC per pound ($/lb) 2.75 3.03 2.06
1 Includes immaterial amounts related to other segments.
2 By-product credits are presented net of the associated treatment and refining charges.
Year ended December 31, 2025
Discontinued Operations Eagle Neves-Corvo1 Zinkgruvan1 Total -
discontinued
operations($ millions, unless otherwise noted) (Ni) (Cu) (Zn)
Sales volumes (Contained metal):
Tonnes 7,651 6,745 20,698
Pounds (000s) 16,868 14,870 45,631
Production costs 150.7 90.2 36.9 277.8
Less: Royalties and other (15.5) (1.3) — (16.8)
135.2 88.9 36.9 261.0
Deduct: By-product credits2 (92.2) (67.0) (23.3) (182.5)
Add: Treatment and refining charges — 5.4 7.2 12.6
Cash cost 43.0 27.3 20.8 91.1
Cash cost per pound ($/lb) 2.55 1.84 0.46
Add: Sustaining capital expenditure 21.3 27.7 30.4
Royalties 12.6 1.2 —
Reclamation and other closure
accretion and depreciation 4.3 0.7 0.3
Leases and other 6.2 0.9 —
All-in sustaining cost 87.4 57.8 51.5
AISC per pound ($/lb) 5.18 3.89 1.13
1 Neves-Corvo and Zinkgruvan results are to April 16, 2025.
2 By-product credits are presented net of the associated treatment and refining charges.
49
===== SIDA 50 =====
Year ended December 31, 2024
Continuing operations Candelaria Caserones Chapada Consolidated
Total -
continuing
operations1($ millions, unless otherwise noted) (Cu) (Cu) (Cu) (Cu)
Sales volumes (contained metal):
Tonnes 158,017 113,867 39,615 311,499
Pounds (000s) 348,367 251,033 87,336 686,736
Production costs 726.6 776.2 282.7 1,785.5 1,786.7
Less: Royalties and other (21.6) (38.7) (15.0) (75.3) (76.5)
705.0 737.5 267.7 1,710.2 1,710.2
Deduct: By-product credits2 (159.8) (144.7) (147.8) (452.3) (452.3)
Add: Treatment and refining charges 58.2 36.8 17.9 112.9 112.9
Cash cost 603.5 629.6 137.7 1,370.8 1,370.8
Cash cost per pound ($/lb) 1.73 2.51 1.58 2.00
Add: Sustaining capital expenditure 275.7 144.0 107.8
Royalties 15.7 32.1 8.6
Reclamation and other closure
accretion and depreciation 8.6 (1.3) 10.2
Leases and other 9.1 69.0 3.6
All-in sustaining cost 912.6 873.4 267.9
AISC per pound ($/lb) 2.62 3.48 3.07
1 Includes immaterial amounts related to other segments.
2 By-product credits are presented net of the associated treatment and refining charges.
Year ended December 31, 2024
Discontinued operations Eagle Neves-Corvo Zinkgruvan
Total -
discontinued
operations
($ millions, unless otherwise noted) (Ni) (Cu) (Zn)
Sales volumes (contained metal):
Tonnes 5,662 26,721 68,086
Pounds (000s) 12,483 58,910 150,104
Production costs 111.9 323.2 122.1 557.2
Less: Royalties and other (8.0) (4.8) — (12.8)
103.9 318.4 122.1 544.4
Deduct: By-product credits1 (52.1) (213.2) (92.3) (357.6)
Add: Treatment and refining charges 0.6 23.9 31.5 56.0
Cash cost 52.4 129.1 61.2 242.7
Cash cost per pound ($/lb) 4.20 2.19 0.41
Add: Sustaining capital expenditure 21.2 89.3 65.7
Royalties 7.4 4.0 —
Reclamation and other closure
accretion and depreciation 6.8 5.2 4.0
Leases and other 6.9 3.3 0.3
All-in sustaining cost 94.7 230.9 131.2
AISC per pound ($/lb) 7.60 3.92 0.87
1 By-product credits are presented net of the associated treatment and refining charges.
50
===== SIDA 51 =====
Adjusted EBITDA
Adjusted EBITDA can be reconciled to Net earnings (loss) on the Company's Consolidated Statements of Earnings as follows:
Three months ended
December 31, Year ended December 31,
($ millions) 2025 2024 2025 2024 2023
Net earnings (loss) from continuing operations 912.3 (59.8) 1,417.7 267.6 183.0
Add back:
Depreciation, depletion and amortization 169.7 139.8 618.9 574.2 445.8
Finance costs, net 13.0 37.2 90.5 137.7 87.1
Income taxes expense (recovery) (488.2) 58.7 (270.0) 258.8 211.5
EBITDA - continuing operations 606.8 175.9 1,857.1 1,238.3 927.4
Unrealized foreign exchange (gain) loss 5.8 (10.8) 5.2 (10.9) 1.8
Unrealized losses (gains) on derivative contracts (7.8) 86.0 (29.0) 85.2 8.5
Revaluation gain on marketable securities (5.2) (0.9) (14.9) (7.4) (1.8)
Inventory write-down (reversal) 88.2 (26.6) 88.2 (26.6) —
Ojos del Salado sinkhole expenses (recoveries) (1.7) (10.0) 10.9 (9.5) 16.9
Gain on partial disposal and contribution to Vicuña — — (3.0) — —
Goodwill and asset impairment — 149.4 — 149.4 —
Write-down of assets — 4.2 — 22.1 —
Revaluation of Caserones purchase option — — — (11.7) 2.6
Caserones inventory fair value adjustment — — — — 39.9
Gain on disposal of subsidiary — — — — (5.7)
Other 0.3 (0.7) 2.6 (2.0) 3.0
Total adjustments - EBITDA 79.6 190.6 60.0 188.6 65.2
Adjusted EBITDA - continuing operations 686.4 366.5 1,917.1 1,426.9 992.6
Including discontinued operations:
Net earnings from discontinued operations 107.3 (344.6) 235.8 (328.9) 132.0
Add back:
Depreciation, depletion and amortization 5.3 41.1 22.3 188.9 207.8
Finance costs, net 0.8 2.9 9.0 13.4 15.6
Income taxes expense 20.1 (46.1) 26.6 (42.5) 5.1
EBITDA - discontinued operations 133.5 (346.7) 293.7 (169.1) 360.5
Asset impairment (reversal) (88.4) 396.1 (22.7) 396.1 —
Contingent consideration revaluation (30.6) — (47.0) — —
Gain on disposal of subsidiaries — — (106.3) — —
Partial suspension of underground operations at Eagle — 11.4 — 36.1 —
Unrealized foreign exchange loss (gain) — (1.0) 1.5 (0.2) (0.6)
Unrealized losses (gains) on derivative contracts — (0.5) (0.1) 18.6 13.5
Other (0.3) (0.2) 1.1 (1.4) (2.6)
Total adjustments - EBITDA discontinued operations (119.3) 405.8 (173.5) 449.2 10.3
Adjusted EBITDA - discontinued operations 14.2 59.1 120.2 280.1 370.8
Adjusted EBITDA (all operations) 700.6 425.6 2,037.3 1,707.0 1,363.4
51
===== SIDA 52 =====
Adjusted Earnings and Adjusted EPS
Adjusted Earnings and Adjusted EPS can be reconciled to Net earnings (loss) attributable to Lundin Mining Shareholders on
the Company's Consolidated Statements of Earnings as follows:
Three months ended
December 31,
Year ended
December 31,
($ millions, except share and per share amounts) 2025 2024 2025 2024 2023
Net earnings (loss) attributable to Lundin Mining
shareholders - continuing operations 659.9 (95.5) 1,047.2 125.4 109.3
Add back:
Total adjustments - EBITDA 79.6 190.6 60.0 188.6 65.2
Tax effect on adjustments (36.3) (33.2) (39.0) (29.9) (26.9)
Recognition of Caserones deferred tax asset (517.0) — (517.0) — —
Deferred tax arising from foreign exchange translation 12.0 45.1 (34.1) 12.7 28.8
Inventory write-down (reversal), included in depreciation 11.7 — 11.7 — —
Deferred tax arising from partial disposal and contribution
to Vicuña — — 9.0 — —
Deferred tax expense due to change in tax rate — — — — 40.2
Non-controlling interest on adjustments 153.8 (4.1) 150.1 (1.9) (22.9)
Total adjustments (296.2) 198.4 (359.3) 169.5 84.4
Adjusted earnings - continuing operations 363.7 102.9 687.9 294.9 193.7
Including discontinued operations:
Net earnings (loss) attributable to Lundin Mining
shareholders - discontinued operations1 107.3 (344.6) 235.8 (328.9) 132.0
Add back:
Total adjustments - EBITDA - discontinued operations (119.3) 405.8 (173.5) 449.2 10.3
Tax effect on adjustments 18.7 (44.9) 18.8 (56.1) —
Total adjustments (100.6) 360.9 (154.7) 393.1 10.3
Adjusted earnings - discontinued operations 6.7 16.3 81.1 64.1 142.3
Adjusted earnings (all operations) 370.4 119.2 769.0 359.0 336.0
Basic weighted average number of shares outstanding 855,891,254 776,720,828 855,632,088 774,825,230 772,532,260
Basic EPS from continuing operations attributable to
shareholders 0.77 (0.12) 1.22 0.16 0.14
Total adjustments per share (0.35) 0.26 (0.42) 0.22 0.11
Adjusted EPS - continuing operations 0.42 0.13 0.80 0.38 0.25
Basic EPS from discontinued operations attributable to
shareholders 0.13 (0.44) 0.28 (0.42) 0.17
Total adjustments per share (0.12) 0.46 (0.18) 0.51 0.02
Adjusted EPS - discontinued operations 0.01 0.02 0.09 0.08 0.19
Basic EPS attributable to shareholders 0.90 (0.57) 1.50 (0.26) 0.31
Total adjustments per share (0.46) 0.72 (0.60) 0.73 0.13
Adjusted EPS (all operations) 0.43 0.15 0.90 0.46 0.44
1 Represents Net earnings attributable to Lundin Mining Corporation shareholders less Net earnings from continuing operations attributable to
Lundin Mining Corporation shareholders.
52
===== SIDA 53 =====
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 on the
Company's Consolidated Statements of Cash Flows as follows:
Three months ended
December 31, Year ended December 31,
($ millions) 2025 2024 2025 2024 2023
Cash provided by operating activities related to
continuing operations 533.0 567.9 1,207.9 1,311.4 644.2
Sustaining capital expenditures (157.6) (131.4) (477.8) (527.9) (549.1)
General exploration and business development 12.9 10.9 43.5 42.1 38.3
Free cash flow from operations - continuing operations 388.3 447.4 773.6 825.6 133.4
General exploration and business development (12.9) (10.9) (43.5) (42.1) (38.3)
Expansionary capital expenditures (43.5) (50.5) (191.2) (243.6) (275.9)
Free cash flow - continuing operations 331.9 386.0 538.9 539.9 (180.8)
Cash provided by operating activities from discontinued
operations 27.9 52.4 134.7 207.5 372.4
Sustaining capital expenditures (3.9) (40.4) (79.4) (176.2) (178.2)
General exploration and business development 0.2 6.6 6.9 16.0 17.4
Free cash flow from operations - discontinued
operations 24.2 18.6 62.2 47.3 211.6
General exploration and business development (0.2) (6.6) (6.9) (16.0) (17.4)
Expansionary capital expenditures — — — — —
Free cash flow - discontinued operations 24.0 12.0 55.3 31.3 194.2
Free cash flow from operations (all operations) 412.5 466.0 835.8 872.9 345.0
Free cash flow (all operations) 355.9 398.0 594.2 571.2 13.4
53
===== SIDA 54 =====
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 on the Company's Consolidated Statements of Cash Flows as follows:
Three months ended
December 31, Year ended December 31,
($ millions, except share and per share amounts) 2025 2024 2025 2024 2023
Cash provided by operating activities from continuing
operations 533.0 567.9 1,207.9 1,311.4 644.2
Changes in non-cash working capital items 132.1 (304.4) 414.0 (221.5) 65.9
Adjusted operating cash flow - continuing operations 665.1 263.5 1,621.9 1,089.9 710.1
Cash provided by operating activities related to
discontinued operations 27.9 52.4 134.7 207.5 372.4
Changes in non-cash working capital items (15.4) (2.0) (24.1) 5.2 (58.3)
Adjusted operating cash flow - discontinued operations 12.5 50.4 110.6 212.7 314.1
Adjusted operating cash flow (all operations) 677.6 313.9 1,732.5 1,302.6 1,024.2
Basic weighted average number of shares outstanding 855,891,254 776,720,828 855,632,088 774,825,230 772,532,260
Adjusted operating cash flow per share - continuing
operations 0.78 0.34 1.90 1.41 $ 0.92
Adjusted operating cash flow per share - discontinued
operations 0.01 0.06 0.12 0.27 $ 0.41
Adjusted operating cash flow per share (all operations) 0.79 0.40 2.02 1.68 $ 1.33
Net Cash (Debt)
Net Cash (Debt) can be reconciled to Debt, Current portion of debt and Cash and cash equivalents on the Company's
Consolidated Balance Sheets as follows:
($ millions) December 31, 2025 December 31, 2024 December 31, 2023
Debt (56.3) (1,412.4) (1,043.6)
Current portion of debt (180.8) (344.6) (165.0)
Less deferred financing fees (netted in above) (3.7) (7.7) (6.4)
(240.8) (1,764.7) (1,215.0)
Cash and cash equivalents 296.2 357.5 268.8
Add cash and cash equivalents related to assets classified as held
for sale 22.0 74.8 —
Net cash (debt) 77.4 (1,332.4) (946.2)
54
===== SIDA 55 =====
Other Information and Advisories
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 29 “Related Party Transactions” of the Company’s consolidated financial
statements for the year ended December 31, 2025.
Changes in Accounting Policies
The Company’s consolidated financial statements, including comparatives, have been prepared in compliance with IFRS.
The Company’s material accounting policies, including any changes in accounting policies, are described in Note 2 ‘Basis of
Presentation and Summary of Material Accounting Policies’ of the Company's consolidated financial statements for the year
ended December 31, 2025.
Critical Accounting Estimates and Judgements
The preparation of consolidated financial statements in conformity with IFRS requires management to make judgements,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities,
income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed
at each period end. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in
any future periods affected.
For further information on the Company’s significant accounting estimates and judgements, refer to Note 2 “Basis of
Presentation and Summary of Material Accounting Policies” of the Company’s consolidated financial statements for the
year ended December 31, 2025.
Disclosure Controls and Procedures
Disclosure controls and procedures 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 Executive Vice President and Chief Financial Officer, is
responsible for the design and operation of disclosure controls and procedures. Management has, under the supervision of
the President and Chief Executive Officer and the Executive Vice President and Chief Financial Officer, evaluated the
effectiveness of the Company’s disclosure controls and procedures and has concluded that they were effective as at
December 31, 2025.
Internal Control over Financial Reporting (“ICFR”)
Management of the Company, under the supervision of the President and Chief Executive Officer and the Executive Vice
President and Chief Financial Officer, is responsible for establishing and maintaining adequate 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.
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,
under the supervision of the President and Chief Executive Officer and the Executive Vice President and Chief Financial
Officer, conducted an evaluation of the effectiveness of ICFR and concluded that it was effective as at December 31, 2025.
There have been no changes in the Company’s ICFR during the three months ended December 31, 2025 that have
materially affected, or are reasonably likely to materially affect, the Company’s ICFR.
55
===== SIDA 56 =====