FULLTEXT DEL 4 AV 5
Årsredovisning 2025
credit facility amendment commitments, including the Company’s ability to satisfy conditions to access additional tranches; 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 that revenue may be significantly impacted in the event of any production stoppages or reputational damage in Chile, Brazil or Argentina; risks relating to
development projects; 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; reputational
risks related to negative publicity with respect to the Company, its joint venture partner or the mining industry in general; 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 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; risks relating to taxation changes; receipt of
and ability to maintain all permits that are required for operation; 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; risks associated with climate change; risks relating to acquisitions or
business arrangements; the exclusive jurisdiction of foreign courts; changes in the relationship with its employees and contractors; risks relating to dividend payments to shareholders in the future;
compliance with environmental, health and safety laws and regulations, including changes to such laws or regulations; interests of significant shareholders of the Company; 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; 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; the
outbreak of infectious diseases or viruses; 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; counterparty and customer concentration risk; minor elements contained in concentrate products; 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 but not limited to those described in the Risks and Uncertainties section of the Company's MD&A for the year ended December 31, 2025, 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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Appendix D – Assurance Letter
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Auditor’s limited assurance report of Lundin Mining
Corporation’s statutory sustainability statement
To the Board of Directors of Lundin Mining Corporation, corporate identity number 200601-8911
Conclusion
We have conducted a limited assurance engagement of the sustainability statement for Lundin Mining
Corporation for the financial year 2025. The sustainability statement is included on page 60-182 in this
document.
Based on our limited assurance engagement as described in the section Auditor's responsibility, nothing
has come to our attention that causes us to believe that the sustainability statement does not, in all
material respects, meet the requirements of the Swedish Annual Accounts Act which includes,
• whether the sustainability statement meets the requirements of ESRS,
• whether the process the company has carried out to identify reported sustainability information has
been conducted as described on page 69-74 “Description of the processes to identify and assess
material impacts, risks and opportunities”,
• compliance with the reporting requirements of the EU's Green Taxonomy Regulation Article 8.
Basis for conclusion
We have conducted the limited assurance engagement in accordance with FAR's recommendation RevR
19 Revisorns översiktliga granskning av den lagstadgade hållbarhetsrapporten. Our responsibility
according to this recommendation is further described in the section Auditor's responsibility.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our
conclusion.
Other information than the sustainability statement
This document also contains other information than the sustainability statement and consists of the
following documents; MD&A page 2-59, Financial Statements page 187-188 and 197-252. The Board of
Directors and the President, Chief Executive Officer & Director are responsible for this other information.
Our conclusion on the sustainability statement does not cover this other information and we do not
express any form of assurance conclusion regarding this other information.
In connection with our limited assurance engagement on the sustainability statement, our responsibility is
to read the information identified above and consider whether the information is materially inconsistent
with the sustainability statement. In this procedure we also take into account our knowledge otherwise
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obtained in the limited assurance engagement and assess whether the information otherwise appears to
be materially misstated.
If we, based on the work performed concerning this information, conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report in
this regard.
Responsibilities of the Board of Directors and the President, Chief
Executive Officer and Director
The Board of Directors and the President, Chief Executive Officer and Director are responsible for the
sustainability statement in accordance with Chapter 6, Sections 12–12f of the Swedish Annual Accounts
Act, and for such internal control as the Board of Directors and the President, Chief Executive Officer and
Director determines necessary to enable the preparation of the sustainability statement that is free from
material misstatements, whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to express a conclusion on whether the sustainability report has been prepared in
accordance with Chapter 6, Sections 12–12f of the Swedish Annual Accounts Act based on our review.
The limited assurance engagement has been conducted in accordance with FAR's recommendation
RevR 19 Revisorns översiktliga granskning av den lagstadgade hållbarhetsrapporten. This
recommendation requires that we plan and perform our procedures to obtain limited assurance that the
sustainability statement is prepared in accordance with these requirements.
The procedures in a limited assurance engagement vary in nature and timing from, and are less in extent
than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited
assurance engagement is substantially lower than the assurance that would have been obtained had a
reasonable assurance engagement been performed. This means that it is not possible for us to obtain
such assurance that we become aware of all significant matters that could have been identified if a
reasonable assurance engagement had been performed.
Our firm applies ISQM 1 (International Standard on Quality Management), which requires the firm to
design, implement and operate a system of quality management, including policies and procedures
regarding compliance with ethical requirements, professional standards, and applicable legal and
regulatory requirements.
We are independent of Lundin Mining Corporation in accordance with professional ethics for accountants
in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements.
A limited assurance engagement involves performing procedures to obtain evidence about the
sustainability statement. The auditor selects the procedures to be performed, including assessing the
risks of material misstatements in the sustainability statement, whether due to fraud or error. In this risk
assessment, the auditor considers the parts of the internal control that are relevant to how the company
prepares the sustainability statement, in order to design procedures that are appropriate under the
circumstances, but not for the purpose of providing a conclusion on the effectiveness of the company’s
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internal control. The review consists of making inquiries, primarily of persons responsible for the
preparation of the sustainability statement, performing analytical review, and conducting other limited
review procedures.
The review procedures primarily include:
Our procedures regarding the process that the company has implemented to identify sustainability
information to be reported included, but were not limited to, the following:
• Obtaining an understanding of the process by:
– Making inquiries to understand the sources of information used by management (e.g.,
stakeholder dialogues, business plans, and strategy documents); and
– Reviewing the company’s internal documentation of its process; and
• Evaluating whether the information obtained from our actions regarding the process implemented by
the company is consistent with the description of the process on page 69-74 “Description of the
processes to identify and assess material impacts, risks and opportunities of the sustainability
statement” in the sustainability statement.
Our procedures regarding the sustainability report included, but were not limited to, the following:
• Through inquiries, obtaining a general understanding of the internal control environment, reporting
processes, and information systems relevant to the preparation of the information in the
sustainability statement.
• Evaluating whether the information identified by the Process is included in the sustainability
statement;
• Evaluating whether the structure and the presentation of the sustainability statement is in
accordance with the ESRS;
• Performing inquires of relevant personnel and analytical procedures on selected information in the
sustainability statement;
• Performing substantive assurance procedures on selected information in the sustainability
statement;
• Performing a site visit to the company’s Candelaria mine, which included, but were not limited to, the
following:
– tour of Candelaria and community operations;
– inquiry with key site and corporate personal; and
– observation and inspection of the implementation of policies and actions.;
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• Through inquiries, substantive and analytical procedures, evaluating supporting evidence to the
methods, assumptions and data for developing significant estimates and forward-looking
information;
• Planning and performing the group limited assurance to obtain evidence regarding the sustainability
information of the entities or business units within the Company as a basis for forming a conclusion
on the Sustainability Statement. We are responsible for the direction, supervision and review of the
work performed for purposes of the group limited assurance. We remain solely responsible for our
limited assurance conclusion.
• Obtaining an understanding of the process to identify taxonomy-eligible and taxonomy-aligned
economic activities and the corresponding disclosures in the sustainability statement
• The review of taxonomy disclosures included, but was not limited to, the following review
procedures:
• Evaluating whether the presentation of the taxonomy tables is consistent with the requirements
of the EU Green Taxonomy and the corresponding disclosures;
• Performing inquiries to company management and other relevant personnel to obtain an
understanding of the process and sources of information used in the taxonomy disclosures;
• Performing analytical review procedures regarding selected taxonomy disclosures
Inherent limitations in preparing the sustainability statement
In reporting forward-looking information in accordance with ESRS, the Board of Directors and President,
Chief Executive Officer and Director of Lundin Mining Corporation are responsible for the forward-looking
information on the basis of disclosed assumptions about events that may occur in the future and possible
future actions by Lundin Mining Corporation. Actual outcomes are likely to be different since anticipated
events frequently do not occur as expected.
Stockholm, 28 April 2026
Öhrlings PricewaterhouseCoopers AB
Martin Johansson
Authorized Public Accountant
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Consolidated Financial Statements of
Lundin Mining Corporation
December 31, 2025
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Management’s Report
The accompanying consolidated financial statements of Lundin Mining Corporation ("Lundin Mining" or the “Company”)
and other information contained in the management’s discussion and analysis are the responsibility of management and
have been approved by the Board of Directors. The consolidated financial statements have been prepared by management
in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board
(“IFRS Accounting Standards”) as outlined in Part 1 of the Handbook of the Chartered Professional Accountants (“CPA”) of
Canada, and include some amounts that are based on management’s estimates and judgment.
The Board of Directors carries out its responsibility for the consolidated financial statements principally through its Audit
Committee, which is comprised solely of independent directors. The Audit Committee reviews the Company’s annual
consolidated financial statements and recommends its approval to the Board of Directors. The Company’s auditors have full
access to the Audit Committee, with and without management being present. These consolidated financial statements have
been audited by PricewaterhouseCoopers LLP, Chartered Professional Accountants.
(Signed) Jack Lundin (Signed) Teitur Poulsen
President and Chief Executive Officer Executive Vice President and Chief Financial Officer
Vancouver, British Columbia, Canada
February 19, 2026
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Independent auditor’s report
To the Shareholders of Lundin Mining Corporation
Our opinion
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects,
the financial position of Lundin Mining Corporation and its subsidiaries (together, the Company) as at
December 31, 2025 and 2024, and its financial performance and its cash flows for the years then ended in
accordance with International Financial Reporting Standards as issued by the International Accounting
Standards Board (IFRS Accounting Standards).
What we have audited
The Company’s consolidated financial statements comprise:
• the consolidated balance sheets as at December 31, 2025 and 2024;
• the consolidated statements of earnings (loss) for the years then ended;
• the consolidated statements of comprehensive income (loss) for the years then ended;
• the consolidated statements of changes in equity for the years then ended;
• the consolidated statements of cash flows for the years then ended; and
• the notes to the consolidated financial statements, comprising material accounting policy information
and other explanatory information.
PricewaterhouseCoopers LLP
PwC Place, 250 Howe Street, Suite 1400
Vancouver, British Columbia, Canada V6C 3S7
T.: +1 604 806 7000, F.: +1 604 806 7806
Fax to mail: ca_vancouver_main_fax@pwc.com
“PwC” refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership.
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Basis for opinion
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our
responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of
the consolidated financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Independence
We are independent of the Company in accordance with the ethical requirements that are relevant to our
audit of the consolidated financial statements in Canada. We have fulfilled our other ethical responsibilities
in accordance with these requirements.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the consolidated financial statements for the year ended December 31, 2025. These matters were
addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
Chapada cash-generating unit (CGU) goodwill
impairment assessment
Refer to note 2 – Basis of presentation and summary of
material accounting policies and note 10 – Goodwill and
asset impairment to the consolidated financial statements.
The Company’s total carrying amount of goodwill as at
December 31, 2025 was $134 million, which related to the
Chapada CGU. The Company’s goodwill is required to be
tested annually for impairment or when events or changes in
circumstances indicate that the related carrying amount may
not be recoverable. When the recoverable amount of the
Our approach to addressing the matter included the following
procedures, among others:
• Tested how management estimated the recoverable
amount of the Chapada CGU, which included the
following:
‒ Tested the underlying data used by management
in the discounted cash flow model and market-
based valuation.
‒ Evaluated the reasonableness of significant
assumptions such as future metal prices, foreign
exchange rate and production and capital
expenditures by (i) comparing future metal prices
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CGU is less than the carrying amount of that CGU, an
impairment loss is recognized.
The recoverable amount of the Chapada CGU was based on
a fair value less cost of disposal method using a discounted
cash flow model and market-based approach. Management
applied significant judgment in estimating the recoverable
amount of the Chapada CGU. Significant assumptions used
by management to determine the recoverable amounts
include future metal prices, production based on estimated
quantities of mineral reserves and mineral resources,
production and capital expenditures, foreign exchange rate,
in-situ multiplies and discount rate. The recoverable amount
of the Chapada CGU determined by management exceeded
its carrying value, and as a result, no impairment loss was
recorded. Management’s estimates of production based on
estimated quantities of mineral reserves and mineral
resources are based on information compiled by qualified
persons (management’s experts).
We considered this a key audit matter due to the significant
auditor effort, subjectivity and significant judgment in
performing procedures to test significant assumptions used
by management in determining the fair value of the Chapada
CGU. Professionals with specialized skill and knowledge in
the field of valuation assisted us in performing our
procedures.
and foreign exchange rate with external market
and industry data; (ii) comparing future production
and capital expenditures against current and past
performance; and (iii) assessing whether these
assumptions were consistent with evidence
obtained in other areas of the audit.
‒ The work of management's experts was used in
performing the procedures to evaluate the
reasonableness of the estimates associated with
the production based on estimated quantities of
mineral reserves and mineral resources. As a basis
for using this work, the competence, capabilities
and objectivity of management’s experts were
evaluated, the work performed was understood
and the appropriateness of the work as audit
evidence was evaluated. The procedures
performed also included evaluation of the methods
and assumptions used by management’s experts,
tests of the data used by management’s experts
and an evaluation of their findings.
‒ Professionals with specialized skill and knowledge
in the field of valuation assisted in assessing the
following: (i) appropriateness of the discounted
cash flow model and market-based approach to
determine the recoverable amount of the Chapada
CGU; and (ii) the reasonableness of the discount
rate and in-situ multiples.
Recoverability of the Caserones deferred tax asset
Refer to note 2 – Basis of presentation and summary of
material accounting policies and note 25 – Current and
deferred income taxes to the consolidated financial
statements.
The Company’s total deferred tax asset as at December 31,
2025 was $720 million, of which $665 million related to the
Caserones mine (“Caserones”). Deferred tax assets are
Our approach to addressing the matter included the following
procedures, among others:
• Tested how management estimated the recoverability of
the Caserones deferred tax asset, which included the
following:
‒ Tested the underlying data used by management
in determining the future taxable income.
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recognized to the extent that it is probable that future taxable
income will be available against which deductible temporary
differences or tax loss carry-forwards can be utilized. The
determination of the ability of the Company to utilize tax loss
carry-forwards and deductible temporary differences to
recognize deferred tax assets requires management to
exercise judgment and make certain assumptions about the
future performance of the Company. Management is required
to assess whether it is “probable” that the Company will
benefit from these prior losses and other deductible
temporary differences.
Caserones has approximately $3.9 billion in net operating
losses arising prior to the acquisition by the Company which
can be applied to future taxable income over the mine life to
reduce taxes payable in future years. In determining the
amount of the net operating losses and deductible temporary
differences which are probable to be utilized, management
has evaluated future taxable income and assessed the
probability of achieving the taxable income projections over
different planning horizons. Significant assumptions used by
management to determine the future taxable income include
future metal prices, production based on estimated quantities
of mineral reserves and mineral resources (R&R), foreign
exchange rates and production costs. Management’s
estimates of production based on estimated quantities of
R&R are based on information compiled by qualified persons
(management’s experts).
As estimation uncertainty increases with the length of the
forecast period, progressively less reliance is placed on
longer-dated forecasts when assessing the recoverability of
deferred tax assets and therefore management has used
significant judgment in assessing the probability of achieving
various levels of future taxable income.
We considered this a key audit matter due to the significant
auditor effort, subjectivity and judgment in performing
procedures to test significant assumptions used to determine
‒ Assessed the appropriateness of management’s
methodology to estimate future taxable income.
‒ Evaluated the reasonableness of significant
assumptions used in the determination of future
taxable income such as future metal prices, foreign
exchange rates and production costs by
(i) comparing future metal prices and foreign
exchange rates with external market and industry
data; (ii) comparing future production costs to
current and past performance of Caserones; and
(iii) assessing whether these assumptions were
consistent with evidence obtained in other areas of
the audit.
‒ The work of management's experts was used in
performing the procedures to evaluate the
reasonableness of the production based on
estimated of quantities of R&R. As a basis for
using this work, the competence, capabilities and
objectivity of management's experts were
evaluated, the work performed was understood
and the appropriateness of the work as audit
evidence was evaluated. The procedures
performed also included evaluation of the methods
and assumptions used by management’s experts,
tests of the data used by management’s experts
and an evaluation of their findings.
‒ Assessed the reasonableness of management’s
judgment regarding the probability of achieving
various levels of future taxable income based on
consideration of different planning horizons and
current and past operating performance.
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the future taxable income, and due to the significant
judgment used by management in assessing the probability
of achieving the various levels of future taxable income.
Other information
Management is responsible for the other information. The other information comprises the Management’s
Discussion and Analysis, which we obtained prior to the date of this auditor’s report, and the information,
other than the consolidated financial statements and our auditor’s report thereon, included in the annual
report that will be filed with the Swedish regulatory authority, which is expected to be made available to us
after that date.
Our opinion on the consolidated financial statements does not cover the other information and we do not
and will not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other
information identified above and, in doing so, consider whether the other information is materially
inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise
appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this
auditor’s report, we conclude that there is a material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard. When we read the information, other than the
consolidated financial statements and our auditor’s report thereon, included in the annual report that will be
filed with the Swedish regulatory authority, if we conclude that there is a material misstatement therein, we
are required to communicate the matter to those charged with governance.
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Responsibilities of management and those charged with governance for the
consolidated financial statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with IFRS Accounting Standards, and for such internal control as management
determines is necessary to enable the preparation of consolidated financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Company’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless management either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
Auditor’s responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with Canadian generally accepted auditing standards will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
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• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to
the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Company to cease to continue as a
going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial
information of the entities or business units within the Company as a basis for forming an opinion on
the consolidated financial statements. We are responsible for the direction, supervision and review of
the audit work performed for purposes of the group audit. We remain solely responsible for our audit
opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
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From the matters communicated with those charged with governance, we determine those matters that were
of most significance in the audit of the consolidated financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
The engagement partner on the audit resulting in this independent auditor’s report is Mark Patterson.
/s/PricewaterhouseCoopers LLP
Chartered Professional Accountants
Vancouver, British Columbia
February 19, 2026
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LUNDIN MINING CORPORATION
CONSOLIDATED BALANCE SHEETS As at
(in millions of US dollars) December 31,
2025
December 31,
2024
ASSETS
Cash and cash equivalents (Note 5) $ 296.2 $ 357.5
Trade and other receivables (Note 6) 824.6 510.9
Income taxes receivable 27.3 14.4
Inventories (Note 7) 587.6 607.4
Marketable securities 8.1 50.1
Current portion of derivative assets (Note 26) 9.8 1.0
Other current assets (Note 3) 53.6 5.9
Assets held for sale (Note 3) 229.1 1,389.7
Total current assets 2,036.3 2,936.9
Restricted funds 16.4 8.7
Long-term inventory (Note 7) 802.1 871.9
Contingent consideration and other non-current assets (Note 8) 75.5 19.1
Mineral properties, plant and equipment (Note 9) 7,036.4 6,244.6
Deferred tax assets (Note 25) 719.6 191.3
Goodwill (Note 10) 134.3 134.3
8,784.3 7,469.9
Total assets $ 10,820.6 $ 10,406.8
LIABILITIES
Trade and other payables (Note 11) $ 700.2 $ 674.2
Income taxes payable 75.7 128.3
Current portion of derivative liabilities (Note 26) 43.0 39.4
Current portion of debt (Note 12) 180.8 344.6
Current portion of lease liabilities (Note 13) 45.6 50.6
Current portion of deferred revenue (Note 14) 56.3 60.6
Current portion of reclamation and other closure provisions (Note 15) 12.1 20.9
Liabilities held for sale (Note 3) 126.8 393.1
Total current liabilities 1,240.5 1,711.7
Derivative liabilities (Note 26) — 24.5
Debt (Note 12) 56.3 1,412.4
Lease liabilities (Note 13) 166.9 198.6
Deferred revenue (Note 14) 404.2 447.1
Reclamation and other closure provisions (Note 15) 276.1 323.3
Deferred consideration and other long-term liabilities (Note 16) 118.9 129.6
Deferred tax liabilities (Note 25) 611.6 643.8
1,634.0 3,179.3
Total liabilities 2,874.5 4,891.0
SHAREHOLDERS' EQUITY
Share capital (Note 17) 5,316.5 4,585.6
Contributed surplus 56.3 51.3
Accumulated other comprehensive loss (23.2) (375.8)
Retained earnings 1,270.2 161.1
Equity attributable to Lundin Mining Corporation shareholders 6,619.8 4,422.2
Non-controlling interests (Note 18) 1,326.3 1,093.6
Total shareholders' equity 7,946.1 5,515.8
Total liabilities and shareholders' equity $ 10,820.6 $ 10,406.8
Commitments and contingencies (Note 27)
Subsequent events (Note 33)
The accompanying notes are an integral part of these consolidated financial statements.
APPROVED BY THE BOARD OF DIRECTORS
(Signed) Adam I. Lundin - Director (Signed) Dale C. Peniuk - Director
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LUNDIN MINING CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
For the years ended December 31, 2025 and 2024
(in millions of US dollars, except for shares and per share amounts)
2025 2024
Continuing Operations:
Revenue (Note 19) $ 4,053.2 $ 3,270.1
Cost of goods sold
Production costs (Note 20) (1,948.1) (1,786.7)
Depreciation, depletion and amortization (618.9) (574.2)
Inventory (write-down) reversal (Note 7) (88.2) 26.6
Gross profit 1,398.0 935.8
General and administrative expenses (Note 21) (63.9) (58.3)
Exploration and business development (Note 22) (43.5) (42.1)
Finance income (Note 23) 14.6 16.1
Finance costs (Note 23) (105.1) (153.8)
Other expense (Note 24) (52.4) (21.9)
Goodwill and asset impairment (Note 10) — (149.4)
Earnings before income taxes from continuing operations 1,147.7 526.4
Current tax expense (Note 25) (299.7) (294.9)
Deferred tax recovery (Note 25) 569.7 36.1
Net earnings from continuing operations $ 1,417.7 $ 267.6
Net earnings (loss) from discontinued operations, net of taxes (Note 3) 235.8 (328.9)
Net earnings (loss) $ 1,653.5 $ (61.3)
Net earnings from continuing operations attributable to:
Lundin Mining Corporation shareholders $ 1,047.2 $ 125.4
Non-controlling interests (Note 18) 370.5 142.2
Net earnings from continuing operations $ 1,417.7 $ 267.6
Net earnings (loss) attributable to:
Lundin Mining Corporation shareholders $ 1,283.0 $ (203.5)
Non-controlling interests (Note 18) 370.5 142.2
Net earnings (loss) $ 1,653.5 $ (61.3)
Basic and diluted earnings per share from continuing operations attributable to Lundin Mining
Corporation shareholders: $ 1.22 $ 0.16
Basic earnings (loss) per share from discontinued operations attributable to Lundin Mining
Corporation shareholders: $ 0.28 $ (0.42)
Diluted earnings (loss) per share from discontinued operations attributable to Lundin Mining
Corporation shareholders: $ 0.27 $ (0.42)
Basic earnings (loss) per share attributable to Lundin Mining Corporation shareholders: $ 1.50 $ (0.26)
Diluted earnings (loss) per share attributable to Lundin Mining Corporation shareholders: $ 1.49 $ (0.26)
Weighted average shares outstanding (Note 17) 855,632,088 774,825,230
Weighted average diluted shares outstanding (Note 17) 858,736,530 777,569,041
The accompanying notes are an integral part of these consolidated financial statements.
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LUNDIN MINING CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
For the years ended December 31, 2025 and 2024
(in millions of US dollars)
2025 2024
Net earnings (loss) $ 1,653.5 $ (61.3)
Other comprehensive income (loss), net of taxes
Item that will not be reclassified to net earnings:
Remeasurements for post-employment benefit plans 1.0 0.6
Item that may be reclassified subsequently to net earnings:
Effects of foreign exchange 79.1 (79.7)
Item that was reclassified to net earnings:
Reclassification of cumulative foreign currency translation reserve to statement of
earnings on disposal of discontinued operations 269.2 —
Other comprehensive income (loss) 349.3 (79.1)
Total comprehensive income (loss) $ 2,002.8 $ (140.4)
Comprehensive income (loss) attributable to:
Lundin Mining Corporation shareholders $ 1,632.1 $ (282.7)
Non-controlling interests 370.7 142.3
Total comprehensive income (loss) $ 2,002.8 $ (140.4)
Total comprehensive income (loss) attributable to Lundin Mining Corporation
shareholders arising from:
Continuing operations $ 1,048.0 $ 125.7
Discontinued operations 584.1 (408.4)
Comprehensive income (loss) attributable to Lundin Mining Corporation shareholders $ 1,632.1 $ (282.7)
The accompanying notes are an integral part of these consolidated financial statements.
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LUNDIN MINING CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the years ended December 31, 2025 and 2024
(in millions of US dollars, except for shares)
Number of
shares
Share
capital
Contributed
surplus
Accumulated
other
comprehensive
loss
Retained
earnings
Non-
controlling
interests Total
Balance, December 31, 2024 774,102,971 $ 4,585.6 $ 51.3 $ (375.8) $ 161.1 $ 1,093.6 $ 5,515.8
Acquisition of Filo Corp. (Note 4) 94,074,959 799.8 — — — — 799.8
Distributions — — — — — (138.0) (138.0)
Exercise of share-based awards 1,687,641 16.3 (6.1) — — — 10.2
Share-based compensation — — 11.1 — — — 11.1
Dividends declared (Note 17(f)) — — — — (105.6) — (105.6)
Shares purchased (Note 17(g)) (15,517,980) (85.2) — — (64.8) — (150.0)
Net earnings — — — — 1,283.0 370.5 1,653.5
Other comprehensive income — — — 349.1 — 0.2 349.3
Reclassification of pension remeasurements to retained
earnings on disposal of discontinued operations — — — 3.5 (3.5) — —
Total comprehensive income — — — 352.6 1,279.5 370.7 2,002.8
Balance, December 31, 2025 854,347,591 $ 5,316.5 $ 56.3 $ (23.2) $ 1,270.2 $ 1,326.3 $ 7,946.1
Balance, December 31, 2023 773,667,789 $ 4,574.8 $ 55.2 $ (296.6) $ 627.9 $ 1,456.8 $ 6,418.1
Distributions — — — — — (152.0) (152.0)
Caserones acquisition — — — — (52.6) (353.5) (406.1)
Exercise of share-based awards 3,250,382 31.2 (10.2) — — — 21.0
Share-based compensation — — 6.3 — — — 6.3
Dividends declared — — — — (203.0) — (203.0)
Shares purchased (2,815,200) (16.7) — — (7.7) — (24.4)
Accrued liability for automatic share purchase plan
commitment — (3.7) — — — — (3.7)
Net (loss) earnings — — — — (203.5) 142.2 (61.3)
Other comprehensive (loss) income — — — (79.2) — 0.1 (79.1)
Total comprehensive (loss) income — — — (79.2) (203.5) 142.3 (140.4)
Balance, December 31, 2024 774,102,971 $ 4,585.6 $ 51.3 $ (375.8) $ 161.1 $ 1,093.6 $ 5,515.8
The accompanying notes are an integral part of these consolidated financial statements.
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LUNDIN MINING CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended December 31, 2025 and 2024
(in millions of US dollars)
Cash provided by (used in) 2025 2024
Operating activities
Net earnings from continuing operations $ 1,417.7 $ 267.6
Items not involving cash and other adjustments
Depreciation, depletion and amortization 618.9 574.2
Share-based compensation 12.4 6.4
Unrealized foreign exchange loss (gain) 5.2 (10.9)
Finance costs, net (Note 23) 90.5 137.7
Recognition of deferred revenue (Note 14) (72.1) (78.1)
Deferred tax recovery (569.7) (36.1)
Goodwill and asset impairment (Note 10) — 149.4
Revaluation of foreign currency and commodity derivatives (Note 26) 8.2 87.2
Long-term inventory write-down (reversal) (Note 7) 88.2 (26.6)
Write-down of assets and loss on disposal (Note 24) 20.9 30.4
Revaluation of Caserones purchase option (Note 24) — (11.7)
Other 3.8 17.3
Reclamation payments (Note 15) (7.9) (9.9)
Changes in long-term inventory 5.8 (7.2)
Changes in non-cash working capital items (Note 32) (414.0) 221.7
Cash provided by operating activities from continuing operations 1,207.9 1,311.4
Cash provided by operating activities from discontinued operations 134.7 207.5
1,342.6 1,518.9
Investing activities
Investment in mineral properties, plant and equipment (684.6) (786.1)
Acquisition of Filo Corp. (Note 4) (610.7) —
Proceeds from partial disposal of subsidiary (Note 4) 689.5 —
Proceeds from disposal of subsidiaries, net of cash disposed (Note 3) 1,314.6 —
Purchase of marketable securities (5.0) (41.7)
Payment of Chapada derivative liability (Note 16) — (25.0)
Interest received 14.6 15.5
Other (11.2) 2.4
Cash provided by (used in) investing activities from continuing operations 707.2 (834.9)
Cash used in investing activities from discontinued operations (76.2) (172.0)
631.0 (1,006.9)
Financing activities
Proceeds from debt (Note 12) 1,714.9 1,500.6
Principal repayments of debt (Note 12) (3,245.2) (944.3)
Principal payments of lease liabilities (Note 13) (54.6) (60.1)
Interest paid (66.9) (118.5)
Payment of Caserones deferred consideration (Note 26) (10.0) (10.0)
Exercise of Caserones purchase option — (350.0)
Dividends paid to shareholders (105.7) (202.5)
Shares purchased (Note 17) (153.7) (24.4)
Proceeds from common shares issued 10.2 21.0
Distributions paid to non-controlling interests (138.0) (152.0)
Net payment from settlement of foreign currency and commodity derivatives (31.8) (0.5)
Other 0.5 (2.2)
Cash used in financing activities from continuing operations (2,080.3) (342.9)
Cash used in financing activities from discontinued operations (8.9) (1.4)
(2,089.2) (344.3)
Effect of foreign exchange on cash balances 1.5 (4.2)
(Decrease) increase in cash and cash equivalents during the year (114.1) 163.5
Cash and cash equivalents, beginning of year 432.3 268.8
Less: Cash and cash equivalents included in assets held for sale, end of year (Note 3) (22.0) (74.8)
Cash and cash equivalents, end of year $ 296.2 $ 357.5
Supplemental cash flow information (Note 32)
The accompanying notes are an integral part of these consolidated financial statements.
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1. NATURE OF OPERATIONS
Lundin Mining Corporation ("Lundin Mining" or the "Company") is a diversified Canadian base metals mining company
primarily producing copper and gold. The Company owns 80% of the Candelaria and Ojos del Salado mining complex
(“Candelaria”) and 70% of the Caserones mine, each of which are located in Chile. As at December 31, 2025, the
Company’s wholly-owned operating assets included the Chapada mine located in Brazil and the Eagle mine located in
the United States of America (“USA”). The Company also has a 50% ownership interest in Vicuña Corp., holding the
Josemaria project in Argentina and Filo del Sol project in Argentina and Chile ("Vicuña").
In December 2025, the Company entered into a definitive agreement to sell its 100% interest in Lundin Mining US Ltd.
and its subsidiaries (together "Eagle mine") to Talon Metals Corp. ("Talon"). The transaction was completed on January
9, 2026. As a result, the Company determined that the Eagle reporting segment met the criteria to be classified as held
for sale on December 31, 2025. The assets of Eagle mine have been classified as current assets held for sale and the
liabilities of Eagle mine have been classified as current liabilities associated with assets held for sale, and the operating
results of the Eagle reporting segment have been re-presented and included in the single line item of earnings (loss)
from discontinued operations, net of taxes, on the consolidated statement of earnings (loss) (Note 3).
On April 16, 2025, the Company completed the previously announced transaction to sell its 100% interests in
Somincor-Sociedade Mineira de Neves-Corvo, S.A. ("Neves-Corvo") in Portugal and its 100% interests in each of
Zinkgruvan Mining AB and North Atlantic Natural Resources AB (together "Zinkgruvan") in Sweden. The assets and
liabilities of the Neves-Corvo mine and the Zinkgruvan mine were classified as held for sale on December 31, 2024. The
operating results of these segments for the year ended December 31, 2024 have been re-presented as a single line
item of earnings (loss) from discontinued operations, net of taxes, on the consolidated statement of earnings (loss)
(Note 3).
The Company’s common shares are listed on the Toronto Stock Exchange (“TSX”) in Canada and the Nasdaq Stockholm
Exchange in Sweden. The Company is incorporated under the Canada Business Corporations Act and is domiciled in
Canada. Its principal place of business is 1055 Dunsmuir Street, Suite 2800, Vancouver, British Columbia, Canada.
2. BASIS OF PRESENTATION AND SUMMARY OF MATERIAL ACCOUNTING POLICIES
(i) Basis of presentation and measurement
The consolidated financial statements have been prepared in accordance with International Financial Reporting
Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards") and which
the Canadian Accounting Standards Board has approved for incorporation into Part 1 of the CPA Canada
Handbook – Accounting.
No new accounting standards or interpretations were adopted January 1, 2025.
The consolidated financial statements have been prepared on a historical cost basis except for certain financial
instruments which have been measured at fair value.
The Company's presentation currency is United States (“US”) dollars. Reference herein of $ or USD is to US
dollars, C$ or CAD is to Canadian dollars, SEK is to Swedish krona, € refers to the Euro, CLP refers to the Chilean
peso, BRL refers to the Brazilian real, and ARS refers to the Argentine peso.
These consolidated financial statements were approved by the Board of Directors of the Company for issue on
February 19, 2026.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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(ii) Material accounting policies
The Company has consistently applied the accounting policies to all the years presented. The material accounting
policies applied in these consolidated financial statements are set out below.
(a) Basis of consolidation
The financial statements consist of the consolidation of the financial statements of the Company and its
subsidiaries.
Subsidiaries are entities over which the Company has control, including the power to govern the financial
and operating policies in order to obtain benefits from their activities. The existence and effect of potential
voting rights that are currently exercisable or convertible are considered when assessing whether the
Company controls another entity. Subsidiaries are fully consolidated from the date on which control is
obtained by the Company and are de-consolidated from the date that control ceases.
Where necessary, adjustments are made to the results of the subsidiaries and associates to bring their
accounting policies in line with those used by the Company. Intra-group transactions, balances, income and
expenses are eliminated on consolidation.
For non wholly-owned subsidiaries, the net assets attributable to outside equity shareholders are presented
as non-controlling interests in the equity section of the consolidated balance sheet. Net earnings for the
period that are attributable to non-controlling interests are calculated based on the ownership of the
minority shareholders in the subsidiary.
(b) Interests in joint arrangements
A joint arrangement can take the form of a joint venture or a joint operation. All joint arrangements involve
a contractual arrangement that establishes joint control which exists when decisions about the activities
that significantly affect the returns of the investee require unanimous consent of the parties sharing control.
A joint venture is a joint arrangement in which the Company has rights to only the net assets of the
arrangement. A joint operation is a joint arrangement in which the Company has the rights to the assets and
obligations for the liabilities relating to the arrangement. Joint operations are accounted for by recognizing
the Company's share of the assets, liabilities, revenue, expenses and cash flows of the joint operation in the
consolidated financial statements.
(c) Translation of foreign currencies
The functional currency of each entity within the Company is the currency of the primary economic
environment in which it operates. The Company’s presentation currency is US dollars.
Transactions denominated in currencies other than the functional currency are recorded using the exchange
rates prevailing on the dates of the transactions. At each balance sheet date, monetary items denominated
in foreign currencies are translated at the rates prevailing on the balance sheet date. Non-monetary items
that are measured at historical cost in a foreign currency are translated using the exchange rate at the date
of the transaction. Non-monetary items measured at fair value in a foreign currency are translated at the
rates prevailing on the date when the fair value was determined. Foreign currency translation differences on
deferred foreign tax liabilities and assets are reported in deferred tax expense/recovery in the consolidated
statement of earnings (loss).
Exchange differences arising on the settlement of monetary items, and on the translation of monetary
items, are recognized in the consolidated statement of earnings (loss) in the period in which they arise.
Exchange differences arising on the translation of non-monetary items carried at fair value are included in
the consolidated statement of earnings (loss).
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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For the purpose of presenting the consolidated financial statements, the assets and liabilities of the
Company’s foreign operations are translated into US dollars, which is the presentation currency of the
group, at the rate of exchange prevailing at the end of the reporting period. Income and expenses are
translated at the average exchange rates for the period where these approximate the rates on the dates of
transactions.
On disposal of a foreign operation, the historical, cumulative amount of exchange differences recognized as
a separate component of equity is reclassified and recognized in the consolidated statement of earnings
(loss).
(d) Cash and cash equivalents
Cash and cash equivalents comprise cash on deposit with banks and highly liquid short-term interest-
bearing investments with a term to maturity at the date of purchase of 90 days or less which are subject to
an insignificant risk of change in value.
(e) Restricted funds
Restricted funds include reclamation funds and cash on deposit that have been pledged for reclamation and
closure activities which are not available for immediate disbursement.
(f) Inventories
Ore and concentrate stockpiles and cathode inventory are valued at the lower of production cost and net
realizable value (“NRV”). Production costs include costs of materials and labour related directly to mining
and processing activities, including production phase stripping costs, depreciation and amortization of
mineral property, plant and equipment directly involved in the related mining and production process,
amortization of any stripping costs previously capitalized and directly attributable overhead costs.
Dump leach pad inventory represents ore that has been mined and placed on leach pads where a solution is
applied to the surface of the heap to dissolve the copper and by-products. The resulting solution is further
processed in a plant to recover the copper. The cost of dump leach inventory is derived from current mining
and leaching costs and is removed at the weighted average cost per recoverable pound ("lb") of copper on
the leach pads as lbs of copper are recovered. Estimates of recoverable copper on the dump leach are
calculated based on the quantities of ore placed on the leach pads (measured in tonnes added to the leach
pads), the grade of ore placed on the leach pads (based on assay data), and an estimated recovery
percentage (based on estimated recovery assumptions from the block model). The nature of the leaching
process inherently limits the ability to precisely monitor inventory levels. As a result, estimates are refined
based on actual results and engineering studies over time. The final recovery of copper from the dump leach
will not be known until the leaching process is concluded at the end of the mine life. Ore on the dump leach
that is not expected to be recovered within the next twelve months is classified as non-current.
Materials and supplies inventories are valued at the lower of average cost less allowances for obsolescence
and NRV.
If the carrying value of inventories exceeds NRV, a write-down is recognized. The write-down may be
reversed in a subsequent period if the circumstances which caused the write-down no longer exist.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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(g) Mineral properties
Mineral properties are carried at cost, less accumulated depletion and any accumulated impairment
charges. Expenditures on mineral properties include:
i. Acquisition costs which consist of payments for property rights and leases, including the
estimated fair value of exploration properties acquired as part of a business combination or the
acquisition of a group of assets.
ii. Exploration, evaluation and project investigation costs incurred on an area of interest once a
determination has been made that a property has economically recoverable Mineral Resources
and Mineral Reserves (“R&R”) and there is a reasonable expectation that costs can be
recovered by future exploitation or sale of the property. Exploration, evaluation and project
investigation expenditures made prior to a determination that a property has economically
recoverable R&R are expensed as incurred.
iii. Deferred stripping costs which represent the costs incurred to remove overburden and other
waste materials to access ore in an open pit mine. Stripping costs incurred prior to the
production phase of the mine are capitalized and included as part of the carrying value of the
mineral property. During the production phase, stripping costs which provide probable future
economic benefits, identifiable improved access to the ore body and which can be measured
reliably are capitalized to mineral properties. Capitalized stripping costs are amortized using a
unit-of-production basis over the Proven and Probable Mineral Reserve to which they relate.
iv. Development costs incurred in an area of interest, once management has determined the
technical feasibility and commercial viability of a project, the project presents an appropriate
rate of return on investment, and the Board of Directors has demonstrated commitment to
advance the project. When additional development expenditures are made on a property after
commencement of production, the expenditure is capitalized as mineral property when it is
probable that additional economic benefit will be derived from future operations. Development
costs are amortized using a unit-of-production basis over the Proven and Probable Mineral
Reserve to which they relate.
v. Interest and financing costs on debt or other liabilities that are directly attributed to the
acquisition, construction and development of a qualifying asset. All other borrowing costs are
expensed as incurred.
(h) Plant and equipment
Plant and equipment are carried at cost, less accumulated depreciation and any accumulated impairment
charges. For production plant and equipment, depreciation is recorded on a units-of-production basis.
Depreciation on all other plant and equipment is recorded on a straight-line basis over the estimated useful
life of the asset or over the estimated remaining life of the mine, if shorter. Residual values and useful lives
are reviewed annually. Gains and losses on disposals are calculated as proceeds received less the carrying
amount and are recognized in the consolidated statement of earnings (loss).
Useful lives are as follows:
Number of years
Buildings 8-20
Plant and machinery 3-20
Equipment 3-8
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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(i) Intangible assets
Separately acquired intangible assets are initially measured at cost which is comprised of its purchase price
and any directly attributable costs of preparing the asset for its intended use. The Company depreciates
intangible assets with finite useful lives on a straight-line basis over the estimated useful life of the asset.
For intangibles with an indefinite useful life, no amortization is calculated.
(j) Impairment and impairment reversals
At the end of each reporting period, the Company assesses whether there is an indication that an asset or
group of assets within a cash generating unit (“CGU”) may be impaired. When impairment indicators exist,
the Company estimates the recoverable amount of the asset or CGU and compares it against the asset or
CGU’s carrying amount. The recoverable amount is the higher of the fair value less cost of disposal
(“FVLCD”) and the asset or CGU’s value in use (“VIU”). If the carrying value exceeds the recoverable amount,
an impairment loss is recorded in the consolidated statement of earnings (loss) during the period. If either
FVLCD or VIU exceeds the asset or CGU’s carrying amount, the asset or CGU is not impaired, and the
Company does not estimate the other amount.
In assessing VIU, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to
the CGU for which the estimates of future cash flows have not been adjusted. The cash flows are based on
best estimates of expected future cash flows from the continued use of the asset or the CGU and its
eventual disposal.
FVLCD is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants, which is best evidenced if obtained from an active market or
binding sale agreement. Where neither exists, the fair value is based partly on a discounted cash flow
projections model. Costs of disposal, other than those that have been recognized as liabilities, are deducted
in measuring FVLCD.
Reversals of impairment are assessed at each reporting period where there is an indication that an
impairment loss recognized previously may no longer exist or has decreased. If an impairment reversal
indicator exists, the recoverable amount is calculated. If the recoverable amount exceeds the carrying
amount, the carrying value of the CGU is increased to the recoverable amount net of depreciation. The
increased carrying amount cannot exceed the carrying amount that would have been determined had no
impairment loss been recognized for the CGU in prior years. A reversal of an impairment loss is recognized
as a gain in the consolidated statement of earnings (loss) in the period it is determined.
(k) Business combinations and goodwill
Acquisitions of businesses are accounted for using the purchase method of accounting whereby all
identifiable assets and liabilities are recorded at their fair values as at the date of acquisition. Any excess
purchase price over the aggregate fair value of net assets is recorded as goodwill. Goodwill is identified and
allocated to CGUs, or groups of CGUs, that are expected to benefit from the synergies of the acquisition.
Goodwill is not amortized. Any excess of the aggregate fair value of net assets over the purchase price is
recognized in the consolidated statement of earnings (loss).
A CGU to which goodwill has been allocated is tested for impairment at least annually or when events or
changes in circumstances indicate that the related carrying amount may not be recoverable. For goodwill
arising on an acquisition in a financial year, the CGU to which the goodwill has been allocated is tested for
impairment before the end of that financial year.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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When the recoverable amount of the CGU is less than the carrying amount of that CGU, the impairment loss
is allocated to reduce the carrying amount of any goodwill allocated to that CGU first, and then to the other
assets of that CGU on a pro-rata basis of the carrying amount of each asset in the CGU. Any impairment loss
for goodwill is recognized directly in the consolidated statement of earnings (loss). An impairment loss for
goodwill is not reversed in subsequent periods.
On disposal of a subsidiary, the attributable amount of goodwill is included in the determination of the gain
or loss on disposal.
(l) Leases
At inception of a contract, the Company assesses whether the contract is, or contains a lease. A contract is,
or contains a lease, if the contract conveys the right to control the use of an identified asset for a period of
time in exchange for consideration.
The Company has elected not to recognize right-of-use assets and lease liabilities for short-term leases that
have a lease term of 12 months or less, and leases of low-value assets. For these leases, the Company
recognizes the lease payments as an expense in the consolidated statement of earnings (loss) on a straight-
line basis over the term of the lease.
The Company recognizes a lease liability and a right-of-use asset at the lease commencement date.
The lease liability is initially measured as the present value of future lease payments discounted using the
interest rate implicit in the lease or, if that rate cannot be readily determined, each operation’s applicable
incremental borrowing rate. The incremental borrowing rate is the rate which the operation would have to
pay to borrow, over a similar term and with a similar security, the funds necessary to obtain an asset of
similar value to the right-of-use asset in a similar economic environment.
Lease payments included in the measurement of the lease liability comprise the following:
- fixed payments, including in-substance fixed payments, less any lease incentives receivable;
- variable lease payments that depend on an index or a rate, initially measured using the index or
rate as at the commencement date;
- amounts expected to be payable by the Company under residual value guarantees;
- the exercise price of a purchase option if the Company is reasonably certain to exercise that option;
and
- payments of penalties for terminating the lease, if the Company expects to exercise an option to
terminate the lease.
The lease liability is subsequently measured by:
- increasing the carrying amount to reflect interest on the lease liability;
- reducing the carrying amount to reflect lease payments made; and
- remeasuring the carrying amount to reflect any reassessment or lease modifications.
Variable lease payments that do not depend on an index or rate are not included in the measurement of the
lease liability.
The lease liability is remeasured when there is a change in future lease payments arising from a change in an
index or rate, if there is a change in the Company’s estimate of the amount expected to be payable under a
residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase,
extension or termination option.
Each lease payment is allocated between the lease liability and finance cost. The finance cost is recorded as
an expense in the consolidated statement of earnings (loss) over the lease period to produce a constant
periodic rate of interest on the remaining balance of the liability for each period.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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The right-of-use asset is initially measured at cost, which comprises the following:
- the amount of the initial measurement of the lease liability;
- any lease payments made at or before the commencement date, less any lease incentives received;
- any initial direct costs incurred by the Company; and
- an estimate of costs to be incurred by the Company in dismantling and removing the underlying
asset, restoring the site on which it is located or restoring the underlying asset to the condition
required by the terms and conditions of the lease, unless those costs are incurred to produce
inventories.
The right-of-use asset is subsequently measured at cost, less any accumulated depreciation and any
accumulated impairment losses, and adjusted for any remeasurement of the lease liability. It is depreciated
in accordance with the Company’s accounting policy for plant and equipment, from the commencement
date to the earlier of the end of its useful life or the end of the lease term.
On the consolidated balance sheet, right-of-use assets and lease liabilities are reported in mineral
properties, plant and equipment and lease liabilities, respectively.
(m) Non-current assets held for sale and discontinued operations
Assets and businesses are classified as held for sale if their carrying amount will be recovered or settled
principally through a sale transaction rather than through continuing use. The asset or business must be
available for immediate sale and the sale must be highly probable within one year.
Assets and businesses classified as held for sale are measured at the lower of carrying amount and fair value
less costs to sell ("FVLCS"). Immediately prior to reclassification to assets held for sale, the Company is
required to assess for impairment of assets of CGU's under its normal impairment policies. If the carrying
value related to a specific asset or business classified as held for sale exceeds its FVLCS an impairment loss is
recognized in the consolidated statement of (loss) earnings. No depreciation is charged on assets and
businesses classified as held for sale. Assets and liabilities classified as held for sale are presented separately
as current items in the consolidated balance sheet.
A discontinued operation is a component of the Company’s business that represents a separate major line
of business or geographical area of operations that has been disposed of, has been abandoned, or meets
the criteria to be classified as held for sale. Discontinued operations are excluded from the results of
continuing operations and are presented as a single amount as profit or loss after tax from discontinued
operations in the consolidated statement of earnings (loss).
(n) Reclamation and other closure provisions
The Company incurs reclamation and other closure costs related to its mining properties such as facility
decommissioning and dismantling, end of mine life severance, site restoration and ongoing environmental
monitoring. These costs are a normal consequence of mining and are dependent on the requirements of the
Company’s legal and constructive obligations, as well as any other commitments made to stakeholders. The
majority of these expenditures will be incurred at the end of the life of mine and are dependent upon a
number of factors such as the life and nature of the asset, the operating license conditions and the
environment in which the mine operates.
The future obligations for mine closure activities are estimated by the Company using mine closure plans or
other similar studies which outline the activities to be undertaken to meet regulatory and internal
requirements. Since the obligations are dependent on the laws and regulations of the countries in which the
mines operate, they are regularly evaluated by management and external experts. Costs included in the
obligations encompass all reclamation and other closure activities expected to occur progressively over the
life of the operation, at the time of closure and post-closure in connection with disturbances as at the
reporting date.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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Obligations may change as a result of amendments in laws and regulations relating to environmental
protection and/or other legislation affecting resource companies. Included in the estimated obligations are
a number of significant assumptions made by management in determining closure provisions. Accordingly,
closure provisions are more uncertain the further into the future mine closure activities are expected to be
carried out.
The Company records the present value of its reclamation and other closure provisions as a liability with a
corresponding increase in the carrying value of the related asset. The provision is discounted to its net
present value using a country specific, current market, pre-tax discount rate. The unwinding of the discount,
referred to as an accretion expense, is included in finance costs in the consolidated statement of earnings
(loss) and results in an increase in the carrying amount of the liability. Reclamation obligations settled in the
year are offset against the corresponding liability. Unplanned reclamation costs are reported as either part
of the cost of inventory or recognized as a cost in the consolidated statement of earnings (loss), if they
relate to either production activities or a closed site.
The capitalized cost of the reclamation and other closure activities is recognized in the mineral property and
plant & equipment and depreciated on a unit-of-production basis over the expected mine life of the
operation or asset to which it relates. Depreciation costs are included in the consolidated statement of
earnings (loss) as part of cost of goods sold.
Changes in obligations resulting from revisions to the timing or amount of expenditures, discount rate or
foreign exchange rate are recognized as an increase or decrease in the reclamation and other closure
provision liability, and a corresponding change in the carrying amount of the related assets.
(o) Revenue recognition
Revenue from contracts with customers is recognized when a customer obtains control of the promised
asset and the Company satisfies its performance obligation. Revenue is allocated to each performance
obligation. The Company considers the terms of the contract in determining the transaction price. The
transaction price is based upon the amount the entity expects to be entitled to in exchange for the
transferring of promised goods. The Company earns revenue from contracts with customers related to its
concentrate and copper cathode sales, and its copper, gold and silver streaming arrangements.
The Company satisfies its performance obligations for its concentrate and copper cathode sales per
specified contract terms which are generally upon shipment or delivery of an individual parcel. Revenue
from concentrate and copper cathode sales is recorded based upon forward market prices of the expected
final sales price date. The Company typically recognizes revenue when concentrate or copper cathodes have
been placed on board a vessel for shipment or delivered to a location specified by the customer.
Deferred revenue arises from up-front payments received by the Company or obligations acquired in
consideration for future commitments as specified in its various streaming arrangements. The accounting
for streaming arrangements is dependent on the facts and terms of each of the arrangements. Revenue
from streaming arrangements is recognized when the customer obtains control of the copper, gold and/or
silver metal and the Company has satisfied its performance obligations.
The Company identified significant financing components related to its streaming arrangements resulting
from a difference in the timing of the up-front consideration received and delivery of the promised goods.
Interest expense on deferred revenue is recognized in finance costs, or in mineral properties, plant and
equipment if directly attributable to the acquisition, construction and development of a qualifying asset.
The interest rate is determined based on the rate implicit in each streaming agreement at the date of
inception or acquisition.
The initial consideration received from the streaming arrangements is considered variable, subject to
changes in the total copper, gold and silver volumes to be delivered. Changes to variable consideration are
reflected in revenue in the consolidated statement of earnings (loss).
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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(p) Share-based compensation
The Company grants share-based awards in the form of share options and share units to certain employees
in exchange for the provision of services. The share options and share units are equity-settled awards. The
Company determines the fair value of the awards on the date of grant. This fair value is charged to the
consolidated statement of earnings (loss) using a graded vesting attribution method over the vesting period
of the awards, with a corresponding credit to contributed surplus. When the share options or share units
are exercised, the applicable amounts of contributed surplus are transferred to share capital. At the end of
the reporting period, the Company updates its estimate of the number of awards that are expected to vest
and adjusts the total expense to be recognized over the vesting period. The Company also grants share-
based awards to non-employee Directors in the form of deferred share units (“DSUs”) in exchange for the
provision of services. DSUs are liability awards settled in cash and measured at the quoted market price at
the grant date. The corresponding liability is adjusted for changes in fair value at each subsequent reporting
date until the awards are settled. The fair value of the DSUs are expensed at the grant date and subsequent
changes to fair value are charged to the consolidated statement of earnings (loss).
(q) Current and deferred income taxes
Income tax expense represents the sum of current and deferred tax. Current taxes payable is based on
taxable earnings for the year. Taxable earnings may differ from earnings before income tax as reported in
the consolidated statement of earnings (loss) because it may exclude items of income or expense that are
taxable or deductible in other years and it may further exclude items of income or expense that are never
taxable or deductible. The Company’s liability for current tax is calculated using tax rates that have been
enacted or substantively enacted at the balance sheet date.
Income tax assets and liabilities are offset when there is a legally enforceable right to offset the assets and
liabilities and when they relate to income taxes levied by the same tax authority on either the same taxable
entity or different taxable entities where there is an intention to settle the balance on a net basis.
Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases used in the computation of taxable earnings. Deferred
tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are
recognized to the extent that it is probable that future taxable income will be available against which
deductible temporary differences or tax loss carryforwards can be utilized. Such assets and liabilities are not
recognized if the temporary difference arises from goodwill or from the initial recognition (other than in a
business combination) of other assets and liabilities in a transaction that affects neither the taxable earnings
nor the accounting earnings. Deferred tax liabilities are recognized for taxable temporary differences arising
on investments in subsidiaries and investments in associates, except where the Company is able to control
the reversal of the temporary differences and it is probable that the temporary differences will not reverse
in the foreseeable future. The carrying amount of deferred tax assets is reviewed at each balance sheet date
and reduced to the extent that it is no longer probable that sufficient taxable earnings will be available to
allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is
settled or the asset realized, based on tax rates and tax laws that have been enacted or substantively
enacted by the balance sheet date. Deferred tax is charged or credited to earnings, except when it relates to
items charged or credited directly to equity, in which case the deferred tax is reflected in equity.
(r) Earnings per share
Basic earnings per share is calculated using the weighted average number of common shares outstanding
during each reporting period. Diluted earnings per share is calculated assuming the proceeds from the
exercise of “in-the-money” share-based arrangements are used to purchase common shares at the average
market price during the period.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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(s) Financial instruments
Financial instruments are recognized on the consolidated balance sheet on the trade date, the date on
which the Company becomes a party to the contractual provisions of the financial instrument. The Company
classifies its financial instruments in the following categories:
Financial Assets at Amortized Cost
Assets that are held for collection of contractual cash flows where those cash flows represent solely
payments of principal and interest are measured at amortized cost. The Company intends to hold these
receivables until cash flows are collected. Receivables are recognized initially at fair value, net of any
transaction costs incurred and subsequently measured at amortized cost using the effective interest
method. The Company recognizes a loss allowance for expected credit losses on a financial asset that is
measured at amortized cost.
Financial Assets at Fair Value through Profit or Loss (“FVTPL”)
Financial assets measured at FVTPL are assets which do not qualify as financial assets at amortized cost or
those not designated in hedge relationships.
Provisionally priced trade receivables are measured at FVTPL as some or all of the cash flows are dependent
on commodity prices. These receivables are initially measured at their transaction price. Subsequent
changes to provisionally priced trade receivables are recorded in the consolidated statement of earnings
(loss) as revenue from other sources.
Marketable securities, equity investments, and derivative assets not designated in hedge relationships are
classified as FVTPL. These financial assets are initially recognized at their fair value with changes to fair
values recognized in the consolidated statement of earnings (loss).
Financial Liabilities at Amortized Cost
Financial liabilities are measured at amortized cost using the effective interest method, unless they are
required to be measured at FVTPL, or the Company has opted to measure them at FVTPL. Long-term debt is
recognized initially at fair value, net of any transaction costs incurred, and subsequently at amortized cost
using the effective interest method.
Financial Liabilities at FVTPL
Financial liabilities at FVTPL are liabilities that cannot be classified as amortized cost which include
embedded derivatives and derivative liabilities not designated in hedge relationships. Financial liabilities at
FVTPL are initially recognized at fair value with changes to fair values recognized in the consolidated
statement of earnings (loss).
The Company derecognizes financial assets only when the contractual rights to cash flows from the financial
assets expire, or when it transfers the financial assets and substantially all of the associated risks and
rewards of ownership. Gains and losses on derecognition are generally recognized in the consolidated
statement of earnings (loss).
The Company derecognizes financial liabilities only when its obligations under the financial liabilities are
discharged, cancelled or expelled. The difference between the carrying amount of the financial liability
derecognized and the consideration paid and payable, including any non-cash assets transferred or liabilities
assumed, is recognized in the consolidated statement of earnings (loss).
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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The Company may enter into derivative instruments to mitigate exposures to commodity price and currency
exchange rate fluctuations, among other exposures. Unless the derivative instruments qualify for hedge
accounting, and management undertakes appropriate steps to designate them as such, they are classified as
financial assets or liabilities at FVTPL and recorded at their fair value with realized and unrealized gains or
losses arising from changes in the fair value recorded in the consolidated statement of earnings (loss) in the
period they occur. Fair values for derivative instruments are determined using valuation techniques. The
valuations use assumptions based on prevailing market conditions on the reporting date.
(iii) New standards and interpretations not yet adopted
IFRS 18 - Presentation and Disclosure in Financial Statements
In April 2024, the International Accounting Standards Board ("IASB") issued IFRS 18 - Presentation and Disclosure
in Financial Statements, which replaces IAS 1 - Presentation of Financial Statements. IFRS 18 introduces a
specified structure for the income statement by requiring income and expenses to be presented into three
defined categories (operating, investing, and financing) and by specifying certain defined totals and subtotals.
Where company-specific measures related to the income statement are provided ("management-defined
performance measures"), IFRS 18 requires disclosure of the explanations around those measures. IFRS 18 also
provides additional guidance on principles of aggregation and disaggregation which apply to the primary financial
statements and notes. IFRS 18 will not impact the recognition and measurement of items in the financial
statements, nor will it impact which items are classified in other comprehensive income and how these items are
classified. The standard is effective for reporting periods beginning on or after January 1, 2027, including for
interim financial statements. Retrospective application is required and early application is permitted.
The Company has completed a preliminary evaluation of the impact of IFRS 18 on the presentation of the
statements of financial position, earnings (loss) and cash flows. The Company has commenced system and
process changes to allow tracking of certain items for presentation in accordance with IFRS 18 in comparative
period financial statements. The Company continues to assess other matters related to the implementation of
this new standard on its financial statements.
IFRS 9 - Financial Instruments and IFRS 7 – Financial Instruments: Disclosures
In May 2024, the IASB issued amendments to the classification and measurement of financial instruments. These
amendments updated classification and measurement requirements in IFRS 9 Financial Instruments and related
disclosure requirements in IFRS 7 Financial Instruments: disclosures. The IASB clarified the recognition and
derecognition date of certain financial assets and liabilities, and amended the requirements related to settling
financial liabilities using an electronic payment system. Moreover, the amendments clarify the assessment of the
contractual cash flow characteristics of financial assets in determining whether they meet the solely payments of
principal and interest (SPPI) criterion, including financial assets that have environmental, social and corporate
governance (ESG)-linked features and other similar contingent features. The IASB added disclosure requirements
for financial instruments with contingent features that do not relate directly to basic lending risks and costs, and
amended disclosures relating to equity instruments designated at fair value through other comprehensive
income.
Additionally in December 2024, the IASB published amendments to IFRS 9 and IFRS 7 - Contracts Referencing
Nature dependent Electricity. The amendments clarify the application of the ‘own-use’ requirements for in-scope
contracts, amend the designation requirements for a hedged item in a cash flow hedging relationship for in-scope
contracts, and add new disclosure requirements.
These amendments apply retrospectively for annual reporting periods beginning on or after 1 January 2026, with
early application permitted.
The Company does not expect the adoption of the amendments to have a material impact on the Company’s
consolidated financial statements or require a restatement of the comparative period.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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(iv) Estimation uncertainty and judgements in applying the entity’s accounting policies
The preparation of consolidated financial statements in accordance with IFRS Accounting Standards requires the
use of certain critical accounting estimates and judgements. These estimates and judgements are based on
management’s best knowledge of the relevant facts and circumstances taking into account previous experience,
but actual results may differ materially from the amounts included in the financial statements.
Areas of estimation uncertainty that have a significant risk of resulting in a material adjustment to the carrying
amounts of assets and liabilities within the next financial year include:
Depreciation, depletion and amortization of mineral properties, plant and equipment - Mineral properties,
plant and equipment comprise a large component of the Company’s assets and as such, the depreciation,
depletion and amortization of these assets have a significant effect on the Company’s financial statements. Upon
commencement of commercial production, the Company depletes mineral property over the life of the mine
based on the depletion of the mine’s Proven and Probable Mineral Reserves. In the case of mining equipment or
other assets, if the useful life of the asset is shorter than the life of the mine, the asset is amortized over its
expected useful life.
Proven and Probable Mineral Reserves are determined based on a professional evaluation using accepted
international standards for the estimation of Mineral Reserves. The assessment involves geological and
geophysical studies, economic data and the reliance on a number of assumptions. The estimates of the Mineral
Reserves may change based on additional knowledge gained subsequent to the initial assessment. This may
include additional data available from continuing exploration, results from the reconciliation of actual mining
production data against the original Mineral Reserve estimates, or the impact of economic factors such as
changes in the price of commodities or the cost of components of production. A change in the original estimate
of Mineral Reserves would result in a change in the rate of depreciation, depletion and amortization of the
related mineral assets.
Valuation of long-term inventory - The Company carries its long-term inventory at the lower of production cost
and NRV. If the carrying value exceeds the net realizable amount, a write-down is required. The write-down may
be reversed in a subsequent period if the circumstances which caused it no longer exist.
The Company reviews NRV at least annually. In particular, for the NRV of long-term inventory, the Company
makes significant estimates in its use of a discounted NRV model related to future production plans, forecasted
commodity prices, foreign exchange rates, inventory quantities, future capital and production costs to complete,
estimates of recoverable copper in leach pads, and the discount rate. These estimates are subject to various risks
and uncertainties and may have an effect on the NRV estimate and the carrying value of the long-term inventory.
Valuation of mineral properties - The Company carries its mineral properties at cost, less accumulated depletion
and any accumulated provision for impairment. The Company undertakes a review of the carrying values of
mineral properties and related expenditures whenever events or changes in circumstances indicate that their
carrying values may exceed their estimated net recoverable amounts determined by reference to estimated
future operating results and discounted net cash flows. An impairment loss is recognized when the carrying value
of those assets is not recoverable. Where a previous impairment has been recorded, the Company analyzes any
reverse impairment indicators. Impairment reversals are recognized in subsequent periods when there has been
a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was
recognized. In undertaking this review, management of the Company is required to make significant estimates of,
amongst other things, future production and sale volumes, metal prices, foreign exchange rates, R&R quantities,
future capital and production costs and reclamation costs to the end of the mine’s life. These estimates are
subject to various risks and uncertainties which may ultimately have an effect on the expected recoverability of
the carrying values of the mineral properties and related expenditures.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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Goodwill - The amount by which the purchase price of a business acquisition exceeds the fair value of identifiable
assets and liabilities acquired is recorded as goodwill. Estimates of recoverable value may be impacted by
changes in future metal prices, foreign exchange rates, production based on estimated quantities of R&R,
production and capital expenditures, pricing of in-situ mineral resources implied by the market value of selected
comparable transactions involving the sale of similar companies and mineral properties, and discount rates.
Changes in estimates could have a material impact on the carrying value of the goodwill. Management's
estimates of production based on quantities of R&R are based on information compiled by qualified persons
(management's experts).
Reclamation and other closure provisions - The Company incurs reclamation and other closure costs related to
its mining properties. The future obligations for mine closure activities are estimated by the Company using mine
closure plans or other similar studies which outline the activities to be undertaken to meet regulatory and
internal requirements. Since the obligations are dependent on the laws and regulations of the countries in which
the mines operate, they are regularly reviewed by management and external experts, and could change as a
result of amendments to the laws and regulations. Included in the estimated obligations are a number of
significant assumptions made by management, including nominal discount rates, inflation rates and foreign
exchange rates. Accordingly, closure provisions are more uncertain the further into the future the mine closure
activities are to be carried out.
Valuation of deferred tax assets - The valuation of deferred tax assets is sensitive to significant assumptions used
in forecasting future taxable income including future metal prices, production based on estimated quantities of
R&R, foreign exchange rates, and production costs. These estimates are subject to various risks and uncertainties
which may ultimately have an effect on the future taxable income which support the valuation of deferred tax
assets. Management’s estimates of production based on estimated quantities of R&R are based on information
compiled by qualified persons (management’s experts).
Significant judgements in applying accounting policies
The following are the judgements, apart from those involving estimations, that management has made in
applying the Company’s accounting policies and that have the most significant effect on the amounts recognized
in the consolidated financial statements.
Deferred tax assets - The determination of the ability of the Company to utilize tax loss carry-forwards and
deductible temporary differences to recognize deferred tax assets requires management to exercise judgment
and make certain assumptions about the future performance of the Company. Management is required to assess
whether it is “probable” that the Company will benefit from these prior losses and other deductible temporary
differences.
Caserones has approximately $3.9 billion in net operating losses arising prior to the acquisition by the Company
which can be applied to future taxable income over the mine life to reduce taxes payable in future years. In
determining the amount of the net operating losses and deductible temporary differences which are probable to
be utilized, management has evaluated forecast taxable income and assessed the probability of achieving the
taxable income projections over different planning horizons. Management has also considered the level of
uncertainty associated with future events outside of the Company’s control, including future commodity prices,
foreign exchange rates, labour disruptions, political and regulatory stability, climate-related events, and
geotechnical conditions. As estimation uncertainty increases with the length of the forecast period, progressively
less reliance is placed on longer-dated forecasts when assessing the recoverability of deferred tax assets and
therefore management has used significant judgment in assessing the probability of achieving various levels of
future taxable income.
Assessment of impairment and reverse impairment indicators - Management applies significant judgement in
assessing whether indicators of impairment or reversal of impairment exist for a CGU which would necessitate
impairment testing. Internal and external factors used by management to determine whether indicators exist
include, but are not limited to, significant changes in the use of the asset, commodity prices, foreign exchange
rates, the Company's market capitalization, capital and production forecasts, R&R quantities, and discount rates.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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Contingent liabilities - Contingent liabilities are possible obligations that arise from past events which will be
confirmed by the occurrence or non-occurrence of future events. These contingencies are not recognized in the
consolidated financial statements when the obligation is not probable or if the obligation cannot be measured
reliably. The Company exercises significant judgment when determining the probability of the future outcome
and with regard to any required disclosure of contingencies, and measuring the liability is a significant estimate.
Joint arrangements - The Company is party to Vicuña, an arrangement over which it does not have control.
Significant judgment is required in determining whether joint control over the arrangement exists and, if so,
which parties have joint control, and whether the arrangement is a joint venture or a joint operation. In assessing
whether the Company has joint control, management analyzes the activities of an arrangement to determine
which activities most significantly affect the returns of the arrangement over its life. If joint control over the
arrangement exists, an assessment of whether the arrangement is a joint venture or a joint operation is required.
This assessment is based on whether the Company retains rights to the assets, and obligations for the liabilities,
relating to the arrangement or the Company only has the rights to the net assets of the arrangement is more
applicable. In making this determination, management reviews the legal form of the arrangement, the terms of
the contractual arrangement, and other facts and circumstances. In a situation where the legal form and the
terms of the contractual arrangement do not give the Company rights to the assets and obligations for the
liabilities, an assessment of other facts and circumstances is required, including whether the activities of the
arrangement are primarily designed for the provision of output to the parties and whether the parties are
substantially the only source of cash flows contributing to the arrangement. These assessments require judgment
and are specific to each arrangement.
3. ASSETS AND LIABILITIES HELD FOR SALE AND DISCONTINUED OPERATIONS
Disposal of Eagle mine
On December 18, 2025, the Company entered into a definitive agreement to sell its 100% interest in the Eagle mine to
Talon (the "Definitive Agreement"). The transaction completed on January 9, 2026. 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. The Company will also receive ore delivery payments of $1.00 per tonne for any non-
Eagle ore processed through the Humboldt mill, to a maximum of $20.0 million. The transaction consideration is
subject to customary working capital adjustments.
As at December 31, 2025, the Eagle mine reporting segment met the criteria to be classified as held for sale and
discontinued operations. The results of this operation have been re-presented for the current and comparative years
to reclassify the earnings (loss) as earnings (loss) from discontinued operations. All assets and liabilities relating to the
Eagle mine reporting segment have been classified as current assets and current liabilities held for sale at December
31, 2025.
The Company is required to assess the Eagle mine CGU for impairment or impairment reversal immediately prior to its
reclassification as held for sale. On December 31, 2025 , the recoverable amount of the Eagle mine CGU exceeded its
carrying value and a partial impairment reversal of $88.4 million ($69.8 million net of tax) was recorded in net earnings
(loss) from discontinued operations. The recoverable amount was based on consideration as established by the
Definitive Agreement. 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.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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Disposal of European operations
On December 9, 2024, the Company entered into a definitive agreement to sell its 100% interests in the Neves-Corvo
and Zinkgruvan mines to Boliden AB ("Boliden"). The transaction constitutes the sale of all of the Company's European
operating assets allowing the Company to focus on its copper-dominant assets in South America. The transaction
completed on April 16, 2025 and the Company received cash consideration of $1.4 billion.
The Company may also receive up to $150.0 million in contingent cash consideration if certain metal price thresholds
are met. These include a percentage of incremental revenue realized at the Neves-Corvo mine in each of the three
calendar years between 2025 and 2027 and at the Zinkgruvan mine between 2025 and 2026. The estimated fair value
of the contingent consideration on April 16, 2025 was $44.1 million (Note 26). Contingent consideration is revalued at
each reporting period with changes recorded in net earnings (loss) from discontinued operations. At December 31,
2025, the fair value of the contingent consideration was $85.7 million, of which $42.9 million is included in other
current assets and $42.8 million is included in contingent consideration and other non-current assets (Note 8) in the
consolidated balance sheet. For the year ended December 31, 2025, a realized and unrealized gain on the revaluation
of the contingent consideration of $5.5 million and $41.5 million, respectively were recorded in net earnings (loss)
from discontinued operations.
On completion of the disposal of the European operations, the Company recognized a gain on disposal of $106.4
million, net of income tax, calculated as follows:
Neves-Corvo mine Zinkgruvan mine Total
Cash consideration $ 773.6 $ 628.5 $ 1,402.1
Fair value of contingent consideration 41.7 2.4 44.1
Transaction costs (4.7) (3.8) $ (8.5)
Net proceeds $ 810.6 $ 627.1 $ 1,437.7
Net assets Neves-Corvo mine Zinkgruvan mine Total
Cash and cash equivalents $ 20.0 $ 59.0 $ 79.0
Trade and other receivables 77.5 9.7 87.2
Inventories 45.9 22.8 68.7
Restricted funds 52.4 — 52.4
Mineral properties, plant and equipment 840.2 344.9 1,185.1
Trade and other payables (85.8) (36.5) (122.3)
Income taxes receivable (payable) 0.9 (8.2) (7.3)
Lease liabilities (16.4) (0.6) (17.0)
Deferred revenue (27.2) (44.0) (71.2)
Reclamation and other closure provisions (98.7) (50.1) (148.8)
Other long-term liabilities (8.4) (4.4) (12.8)
Deferred tax liabilities — (30.9) (30.9)
800.4 261.7 1,062.1
Gain on disposal before reclassification of foreign currency translation
reserve 10.2 365.4 375.6
Reclassification of foreign currency translation reserve to earnings (161.4) (107.8) (269.2)
Net gain (loss) on disposal $ (151.2) $ 257.6 $ 106.4
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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The net earnings (loss) from discontinued operations for the years ended December 31, 2025 and 2024, are as follows:
For the year ended December 31, 2025 Neves-Corvo 1 Zinkgruvan 1 Eagle Total
Revenue $ 128.3 $ 72.4 $ 208.6 $ 409.3
Production costs (90.2) (36.9) (150.7) (277.8)
Depreciation, depletion and amortization — — (22.3) (22.3)
Exploration and business development (2.0) (3.4) (1.5) (6.9)
Finance (costs) income (3.9) (0.8) (4.3) (9.0)
Other income (expense) 41.3 (1.2) — 40.1
Asset (impairment) reversal (65.7) — 88.4 22.7
Earnings before income taxes 7.8 30.1 118.2 156.1
Income tax (expense) recovery (0.1) (2.9) (0.3) (3.3)
Deferred tax (expense) recovery 0.2 (2.6) (20.9) (23.3)
Net earnings before gain (loss) on disposal $ 7.9 $ 24.6 $ 97.0 $ 129.5
Gain (loss) on disposal of subsidiaries (151.2) 257.5 — 106.3
Net earnings (loss) from discontinued operations $ (143.3) $ 282.1 $ 97.0 $ 235.8
1 Includes financial results from January 1, 2025 to April 16, 2025 and the revaluation of contingent consideration at December 31, 2025.
For the year ended December 31, 2024 Neves-Corvo Zinkgruvan Eagle Total
Revenue $ 438.1 $ 256.7 $ 152.5 $ 847.3
Production costs (323.2) (122.1) (111.9) (557.2)
Depreciation, depletion and amortization (118.3) (37.0) (33.6) (188.9)
Exploration and business development (2.8) (10.0) (3.2) (16.0)
Finance (costs) income (4.8) (4.9) (3.6) (13.4)
Other (expense) income (4.8) (4.0) (2.2) (11.0)
Goodwill and asset impairment (291.2) — (104.9) (396.1)
Partial suspension of underground mining operations — — (36.1) (36.1)
(Loss) earnings before income taxes (307.0) 78.7 (143.0) (371.4)
Income tax (expense) recovery 0.8 (15.5) — (14.7)
Deferred tax recovery 27.7 0.7 28.8 57.2
Net (loss) earnings from discontinued operations $ (278.5) $ 63.9 $ (114.2) $ (328.9)
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
217
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The assets and liabilities that are included in the held for sale categories as at December 31, 2025 are summarized
below:
Eagle mine
Assets classified as held for sale
Cash and cash equivalents $ 22.0
Trade and other receivables 10.4
Inventories 20.9
Mineral properties, plant and equipment 175.8
$ 229.1
Liabilities classified as held for sale
Trade and other payables $ 19.5
Lease liabilities 9.0
Reclamation and other closure provisions 73.8
Other long-term liabilities 1.0
Deferred tax liabilities 23.5
$ 126.8
The assets and liabilities that are included in the held for sale categories as at December 31, 2024 are summarized
below:
Neves-Corvo mine Zinkgruvan mine Total
Assets classified as held for sale
Cash and cash equivalents $ 23.9 $ 50.9 $ 74.8
Trade and other receivables 90.2 22.9 113.1
Income taxes receivable 0.8 — 0.8
Inventories 39.7 16.5 56.2
Restricted funds 49.6 — 49.6
Mineral properties, plant and equipment 810.6 284.6 1,095.2
$ 1,014.8 $ 374.9 $ 1,389.7
Liabilities classified as held for sale
Trade and other payables $ 99.8 $ 32.4 $ 132.2
Income taxes payable — 7.8 7.8
Lease liabilities 15.7 0.6 16.3
Deferred revenue 25.1 39.2 64.3
Reclamation and other closure provisions 89.9 44.2 134.1
Other long-term liabilities 7.7 4.5 12.2
Deferred tax liabilities — 26.2 26.2
$ 238.2 $ 154.9 $ 393.1
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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4. ACQUISITION OF FILO AND FORMATION OF VICUÑA
On January 15, 2025, the Company, together with BHP Investments Canada Inc. ("BHP"), completed the acquisition of
Filo Corp. ("Filo") through a plan of arrangement (the “Arrangement”). The Company’s share of the consideration for
the Arrangement was $610.7 million (C$877.8 million) in cash and 94.1 million of the Company’s shares to Filo
shareholders, along with its existing 1.7% interest in Filo (prior to completion). BHP's share of the consideration for the
Arrangement was $1.4 billion (C$2.0 billion) in cash, along with its existing 7.0% interest in Filo (prior to completion).
Concurrently, BHP paid the Company cash consideration of $689.5 million for a 50% interest in the Josemaria project,
and the Company and BHP formed the Vicuña 50/50 independently managed joint arrangement holding interests in
the Filo del Sol project and the Josemaria project (the "Vicuña Project").
The Company has concluded the Vicuña joint arrangement is a joint operation upon considering other facts and
circumstances, such as the right and the obligation to take a share of the output of the arrangement. Accordingly, the
Company includes its 50% share of the respective assets, liabilities, expenses, and cash flows of Vicuña in the
consolidated financial statements of the Company.
The purchase price of Filo (50% share) is as follows:
Cash consideration $ 610.7
Fair value of 94,074,959 common shares issued by the Company (a) (b) 799.8
Transaction costs 10.1
The Company's previously held common shares in Filo (b) 49.9
Total purchase price $ 1,470.5
a) The fair value of the common shares issued was determined using the Company’s share price of C$12.22 and
foreign exchange rate of USD/CAD: 1.437 at the close of business on January, 15, 2025.
b) Immediately prior to the acquisition of Filo, the Company held 2,264,924 Filo shares with a fair value of $49.9
million (December 31, 2024 - $50.2 million).
The Company's initial interest in Vicuña as at January 15, 2025, including transaction costs, is comprised of the
following:
50% interest
in Filo
50% interest
in Josemaria
50% share of
Vicuña on
formation
Cash and cash equivalents $ 17.3 $ 7.0 24.3
Receivables and other assets 0.5 $ 1.2 1.7
Mineral properties, plant and equipment 1,456.7 701.1 2,157.8
Total assets 1,474.5 709.3 2,183.8
Trade and other payables (4.0) (19.8) (23.8)
Total liabilities (4.0) (19.8) (23.8)
Total net assets $ 1,470.5 $ 689.5 $ 2,160.0
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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5. CASH AND CASH EQUIVALENTS
Cash and cash equivalents are comprised of the following:
December 31, 2025 December 31, 2024
Cash $ 274.4 $ 197.2
Short-term deposits 21.8 160.3
$ 296.2 $ 357.5
6. TRADE AND OTHER RECEIVABLES
Trade and other receivables are comprised of the following:
December 31, 2025 December 31, 2024
Trade receivables $ 673.6 $ 347.8
Value added tax 68.7 53.0
Prepaid expenses 22.3 42.6
Other receivables 60.0 67.5
$ 824.6 $ 510.9
The Company does not have any significant balances that are past due nor any significant expected credit losses. The
Company's credit risk is discussed in Note 30.
The carrying amounts of trade and other receivables are denominated as follows:
Currency December 31, 2025 December 31, 2024
USD 683.3 365.0
CLP 95,661.1 93,826.7
CAD 19.4 37.8
SEK — 100.0
BRL 121.4 94.6
ARS 97.5 621.6
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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7. INVENTORIES
Inventories are comprised of the following:
December 31, 2025 December 31, 2024
Materials and supplies $ 297.1 $ 279.4
Ore stockpiles and dump leach 222.8 188.8
Finished goods - concentrate stockpiles 48.7 116.6
Finished goods - copper cathode and other 19.0 22.6
$ 587.6 $ 607.4
Long-term inventories are comprised of the following:
December 31, 2025 December 31, 2024
Ore stockpiles at Candelaria $ 502.8 $ 480.9
Ore stockpiles at Chapada 217.6 299.9
Dump leach at Caserones 81.7 91.1
$ 802.1 $ 871.9
As at December 31, 2025, primarily as a result of mine plan changes deprioritizing the timing of processing of
stockpiles, the Company recognized a net realizable value write-down of $99.9 million of the long-term ore stockpile at
Chapada (December 31, 2024 - partial reversal of previous write-down of $28.3 million). Included in the write-down
was $11.7 million of depreciation, depletion and amortization ( December 31, 2024 - $1.7 million reversal of
depreciation, depletion and amortization).
8. CONTINGENT CONSIDERATION AND OTHER NON-CURRENT ASSETS
Other non-current assets are comprised of the following:
December 31, 2025 December 31, 2024
Contingent consideration (Note 3) $ 42.8 $ —
Marketable securities, non-current portion 22.8 10.0
Other 9.9 9.1
$ 75.5 $ 19.1
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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9. MINERAL PROPERTIES, PLANT AND EQUIPMENT
Mineral properties, plant and equipment ("MPP&E") are comprised of the following:
Cost
Mineral
properties
Plant and
equipment
Assets under
construction1
Development
project2
Software
intangible
assets Total
As at December 31, 2023 $ 6,014.8 $ 5,308.0 $ 330.3 $ 1,130.1 $ 63.6 $ 12,846.8
Additions 239.2 100.0 367.9 265.5 0.7 973.3
Impairment (Note 10) (331.2) (111.7) (1.1) — — (444.0)
Write-downs — — (4.1) (18.0) — (22.1)
Disposals — (91.5) — — — (91.5)
Transfers 68.6 285.6 (355.8) — 1.6 —
Reclassification to assets
held for sale (Note 3) (1,720.5) (1,009.2) (79.3) — (7.2) (2,816.2)
Effects of foreign
exchange (134.4) (72.8) (6.3) — (0.5) (214.0)
As at December 31, 2024 4,136.5 4,408.4 251.6 1,377.6 58.2 10,232.3
Formation of Vicuña3
(Note 4) — (16.5) — 785.7 — 769.2
Additions 176.7 33.7 356.2 204.0 1.7 772.3
Impairment reversal
(Note 3) 80.4 8.0 — — — 88.4
Disposals (6.9) (251.8) (0.3) — — (259.0)
Transfers 46.1 129.0 (175.2) — 0.1 —
Reclassification to assets
held for sale (Note 3) (470.4) (535.1) (3.8) — (4.3) (1,013.6)
As at December 31, 2025 $ 3,962.4 $ 3,775.7 $ 428.5 $ 2,367.3 $ 55.7 $ 10,589.6
Accumulated depreciation,
depletion and amortization
Mineral
properties
Plant and
equipment
Assets under
construction1
Development
project2
Software
intangible
assets Total
As at December 31, 2023 $ 3,194.1 $ 1,910.4 $ — $ — $ 17.0 $ 5,121.5
Depreciation 368.2 419.6 — — 9.3 797.1
Disposals — (85.2) — — — (85.2)
Reclassification to assets
held for sale (Note 3) (1,187.6) (530.0) — — (3.3) (1,720.9)
Effects of foreign exchange (88.2) (36.3) — — (0.3) (124.8)
As at December 31, 2024 2,286.5 1,678.5 — — 22.7 3,987.7
Formation of Vicuña3
(Note 4) — (4.0) — — — (4.0)
Depreciation 304.5 332.0 — — 8.3 644.8
Disposals (2.8) (234.7) — — — (237.5)
Reclassification to assets
held for sale (Note 3) (376.3) (459.1) — — (2.4) (837.8)
As at December 31, 2025 $ 2,211.9 $ 1,312.7 $ — $ — $ 28.6 $ 3,553.2
1 Represent assets under construction at the Company's operating mine sites which are currently non-depreciable.
2 Assets relate to the Company's share of the Vicuña Project assets which are currently non-depreciable.
3 Formation of Vicuña movements in cost of $769.1 million and accumulated depreciation of $4.0 million, totaling $773.1 million, includes the 50%
interest in Filo of $1,456.7 million less the 50% interest in Josemaria sold to BHP of $683.6 million and are inclusive of capitalized borrowing and
transaction costs.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
222
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Net book value
Mineral
properties
Plant and
equipment
Assets under
construction
Development
project
Software
intangible
assets Total
As at December 31, 2024 $ 1,850.0 $ 2,729.9 $ 251.6 $ 1,377.6 $ 35.5 $ 6,244.6
As at December 31, 2025 $ 1,750.5 $ 2,463.0 $ 428.5 $ 2,367.3 $ 27.1 $ 7,036.4
During the year ended December 31, 2025, the Company capitalized $25.8 million (December 31, 2024 - $37.4 million),
of finance costs related to the Vicuña Project at a weighted average interest rate of 5.8% (December 31, 2024 - 6.0%).
During the year ended December 31, 2025, the Company capitalized $166.4 million (December 31, 2024 - $226.2
million), of deferred stripping costs to mineral properties. The depreciation expense related to deferred stripping for
the year ended December 31, 2025 was $197.4 million (December 31, 2024 - $187.0 million). Included in the mineral
properties balance at December 31, 2025 is $0.8 million related to deferred stripping at Chapada (December 31, 2024 -
$436.3 million at Candelaria and Caserones), which is currently non-depreciable.
The Company leases various assets including power line infrastructure, buildings and storage facilities , vehicles,
machinery and equipment. The following table summarizes the changes in right-of-use assets within plant and
equipment:
Net book value
As at December 31, 2023 $ 284.0
Additions 70.8
Depreciation (76.4)
Disposals (2.7)
Effects of foreign exchange (0.3)
Reclassification to assets held for sale (Note 3) (16.1)
As at December 31, 2024 259.3
Additions 25.3
Depreciation (65.3)
Contribution to Vicuña (Note 4) (1.6)
Reclassification to assets held for sale (Note 3) (8.9)
As at December 31, 2025 $ 208.8
10. GOODWILL AND ASSET IMPAIRMENT
a) Goodwill
The Company recognized goodwill on the acquisition of Chapada, Neves-Corvo and Ojos del Salado (“Ojos”). Goodwill
is allocated to the following CGUs:
Chapada Neves-Corvo Ojos1 Total
Balance at December 31, 2023 $ 134.3 $ 95.6 $ 10.7 $ 240.6
Impairment charges — (90.7) (10.7) (101.4)
Effects of foreign exchange — (4.9) — (4.9)
Balance at December 31, 2024 134.3 — — 134.3
Balance at December 31, 2025 $ 134.3 $ — $ — $ 134.3
1 Ojos is included in the Candelaria reporting segment.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
223
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The Company performs an impairment assessment annually, or more frequently if there are impairment indicators, for
the carrying amount of its CGUs where goodwill is allocated.
The recoverable value of a CGU is determined using the FVLCD method applied by using a discounted cash flow model
based on life-of-mine financial plans, and a market-based approach. Significant assumptions used by management to
determine the recoverable amount include future metal prices, production based on estimated quantities of R&R,
production and capital expenditures, foreign exchange rates, pricing of in-situ mineral resources implied by the market
value of selected comparable transactions involving the sale of similar companies and mineral properties, and discount
rates.
For the 2025 assessment, future metal prices and foreign exchange rates used in the discounted cash flow models are
determined with reference to market consensus estimates observed during the fourth quarter of 2025. The valuation
of recoverable amount is most sensitive to changes in metal prices, exchange rates, discount rates and pricing of in-
situ mineral resources.
Production costs and capital expenditures included in the discounted cash flow models are based on operating plans
which consider past and estimated future performance.
Inputs utilized in the discounted cash flow models were based on level 3 fair value measurements (Note 26), which
were not based on observable market data. The R&R were based on the Company’s last published estimate dated
December 31, 2025. Incorporated in the FVLCD are fair value estimates developed by the Company for mineral
resources not captured in the cash flow projections model. These estimates are valued using third-party market
information, which includes pricing of in-situ mineral resources implied by the market value of selected comparable
transactions involving the sale of similar companies and mineral properties.
Chapada
For the Chapada CGU impairment review, the Company used a FVLCD model (level 3 measurement). For the years
ended December 31, 2025 and 2024, the Company determined that the recoverable amount of the Chapada CGU was
higher than its carrying value, and therefore no impairment was recognized. Management applied significant
judgement in estimating the recoverable amount of the Chapada CGU.
Sensitivity analysis was performed on the cash flow model for Chapada. At December 31, 2025, changes in key inputs
such as metal prices (+/-5%), foreign exchange rates (+/-5%) and the discount rate (+/-1%) did not have a material
impact on the result of the Company’s goodwill impairment assessment.
Key assumptions for Chapada
2025 2024
Copper price $/lb 4.50 - 4.95 4.30 - 4.70
Gold price $/oz 3,200 - 3,800 2,150 - 2,575
After-tax discount rate 8.0% 7.5%
BRL/$ exchange rate 5.50 5.50
Life of mine 27 years 26 years
Neves-Corvo
An impairment charge of $291.2 million ($270.3 million net of tax) was recorded in December 2024 relating to the
Neves-Corvo reporting segment to recognize goodwill, mining rights and mineral properties at their estimated fair
value, based on the expected sales price as established by the sale to Boliden (level 2 measurement). The impairment
charge includes $90.7 million allocated to the Neves-Corvo goodwill.
Ojos
In January 2025 the Company received a notice from the Superintendencia del Medio Ambiente (“SMA”), following its
investigative proceedings involving the sinkhole that occurred at the Alcaparrosa mine in 2022. The Alcaparrosa mine
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
224
===== SIDA 225 =====
is included in the Ojos CGU. The notice levied a fine of $3.3 million and ordered the continued closure of the
Alcaparrosa mine, at which mining operations have been suspended since the incident occurred in 2022. As a result,
an impairment charge of $55.9 million ($41.6 million net of tax) was recorded in December 2024 relating to the Ojos
CGU to write off goodwill and the remaining carrying values of underground development and mine infrastructure.
The impairment charge includes $10.7 million allocated to the Ojos goodwill.
b) Other Asset Impairment
At every reporting period, the Company assesses whether there is an indication that an asset or group of assets may
be impaired. When impairment indicators exist, the Company estimates the recoverable amount of the asset and
compares it against the asset's carrying amount.
Suruca
In February 2025, the Company removed the Suruca gold deposit from Mineral Reserves as development is not
contemplated in the current life-of-mine plan. The Suruca gold deposit is included in the Chapada segment. This was
considered an indicator of impairment for the Suruca mineral property asset. An impairment of $ 93.4 million ($ 61.7
million net of tax) was recorded in earnings in December 2024 to reduce the carrying value of the mineral property
asset to nil.
11. TRADE AND OTHER PAYABLES
Trade and other payables are comprised of the following:
December 31, 2025 December 31, 2024
Trade payables $ 363.0 $ 297.7
Unbilled goods and services 193.8 175.2
Employee benefits payable 72.9 68.8
Sinkhole provision (a) 23.2 16.9
Royalties payable 15.7 24.5
Deferred consideration, current portion (b) 10.0 10.0
Pricing provisions on concentrate sales (c) 4.5 15.5
Prepayment from customers — 45.0
Automatic share purchase plan commitment (d) — 3.7
Other 17.1 16.9
$ 700.2 $ 674.2
a) Relates to expected remediation costs and fines directly related to the sinkhole near the Company's Ojos del
Salado operations. During the year ended December 31, 2025 , the Company increased the provision following
the notice received from Chilean State Defense Council (CDE) regarding the civil claim related to the sinkhole
(Note 24).
b) Relates to the current portion of the remaining deferred cash consideration arising from the Caserones
acquisition, payable in installments in 2026 through 2029.
c) Includes balances owing to customers and provisions arising from forward market price adjustments.
d) As at December 31, 2024, the Company recorded an accrual for the repurchase of shares on the last trading day
of the year that were settled during January 2025.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
225
===== SIDA 226 =====
12. DEBT
Debt facilities are comprised of the following:
December 31, 2025 December 31, 2024
Candelaria and Chapada term loans (a) $ 180.8 $ 245.9
Revolving credit facility (b) 56.3 264.7
Term loan (c) — 1,147.7
Commercial paper (d) — 98.7
Debt 237.1 1,757.0
Less: current portion 180.8 344.6
Long-term portion $ 56.3 $ 1,412.4
The changes in the Company's debt facilities are comprised of the following:
As at December 31, 2023 $ 1,208.6
Additions 1,500.6
Payments (944.4)
Deferred financing fee (3.6)
Financing fee amortization 2.4
Effects of foreign exchange (6.6)
As at December 31, 2024 1,757.0
Additions 1,714.9
Payments (3,245.2)
Deferred financing fee (0.2)
Financing fee amortization 4.1
Effects of foreign exchange 6.5
As at December 31, 2025 237.1
Less: current portion 180.8
Long-term portion $ 56.3
a) Compañia Contractual Minera Candelaria S.A. ("Candelaria mine"), a subsidiary owned 80% by the Company,
which owns the Candelaria mine, holds a series of unsecured fixed term loans. During the year ended
December 31, 2025, Candelaria mine obtained loans totaling $100.0 million (December 31, 2024 - $215.0
million) and repaid $150.0 million (December 31, 2024 - $115.0 million) of the outstanding loans. As at
December 31, 2025, there was one term loan outstanding of $50.0 million (December 31, 2024 - two term loans
totaling $100.0 million). The outstanding term loan accrues interest at a rate of 4.30% per annum with interest
payable upon maturity in May 2026.
Mineração Maracá Indústria e Comércio S.A. (“Chapada”), a subsidiary of the Company, which owns the
Chapada mine, holds a series of export-linked unsecured fixed term loans. During the year ended December 31,
2025, Chapada obtained loans totaling $316.8 million (December 31, 2024 - $324.2 million), and repaid $331.9
million (December 31, 2024 - $227.1 million) of the outstanding loans. As at December 31, 2025, there were 24
term loans outstanding at Chapada totalling $130.8 million (December 31, 2024 - 41 term loans totalling $145.9
million). These outstanding term loans accrue interest at rates ranging from 4.63% to 5.19% per annum with
interest payable upon their maturities, ranging from January to March 2026.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
226
===== SIDA 227 =====
b) The Company has a revolving credit facility of $1,750.0 million, maturing in April 2029. The credit facility 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. The facility is subject to customary
covenants. During the year ended December 31, 2025, the Company drew down $1,050.0 million (December
31, 2024 - $340.0 million), and repaid $ 1,260.0 million (December 31, 2024 - $320.0 million). As at December
31, 2025, a principal balance of $60.0 million (December 31, 2024 - $270.0 million) was outstanding, with
unamortized deferred financing fees of $3.7 million (December 31, 2024 - $5.3 million) netted against
borrowings.
c) In April 2025, the Company repaid in full the $1,150.0 million outstanding balance of its term loan using the
proceeds from sale of the Neves-Corvo and Zinkgruvan mines (Note 3). As a result of the repayment, the term
loan has been extinguished and cannot be redrawn. During the year ended December 31, 2025, the remaining
unamortized deferred financing fees of $2.3 million, were recognized in finance costs.
d) Neves-Corvo was party to three unsecured commercial paper programs with maturities ranging from May 2025
to July 2028. Pursuant to the terms of the transaction with Boliden, the Company repaid the $102.7 million
(€95.0 million) outstanding balance of the commercial papers immediately prior to the sale of Neves-Corvo and
this balance was not included in the net assets disposed (Note 3). During April 2025, the program was cancelled
and therefore as at December 31, 2025 , $nil principal balance (December 31, 2024 - $ 98.7 million
(€95.0 million)) was outstanding.
During the year ended December 31, 2025 , Neves-Corvo drew down $248.1 million (€235.0 million) from the
commercial paper program (December 31, 2024 - $271.3 million (€250.0 million)), and repaid $353.3 million
(€310.0 million) (December 31, 2024 - $282.3 million (€260.0 million)).
The schedule of undiscounted debt obligations is as follows:
Less than one year $ 180.8
One to five years 60.0
More than five years —
Total undiscounted obligations as at December 31, 2025 $ 240.8
Related to continuing operations $ 240.8
Related to discontinued operations $ —
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
227
===== SIDA 228 =====
13. LEASE LIABILITIES
The following table summarizes the changes in the Company's lease liabilities:
As at December 31, 2023 $ 277.2
Additions 69.9
Payments (93.5)
Disposals (2.0)
Interest 24.1
Reclassified to liabilities held for sale (Note 3) (16.3)
Effects of foreign exchange (10.2)
As at December 31, 2024 249.2
Contribution to Vicuña (Note 4) (1.1)
Additions 24.7
Payments (82.4)
Interest 22.6
Reclassified to liabilities held for sale (Note 3) (9.0)
Effects of foreign exchange 8.5
As at December 31, 2025 212.5
Less: current portion 45.6
Long-term portion $ 166.9
Lease liabilities relate to leases on power line infrastructure, buildings and storage facilities, vehicles, machinery and
equipment, which have remaining lease terms of one to twelve years and interest rates of 1.0% - 10.0% over the terms
of the leases.
Certain leases relating to mine development, exploration, production and transportation equipment contain variable
lease expenses based on tonnage or drilling metres. Variable lease expense for the year ended December 31, 2025 was
$87.4 million (December 31, 2024 - $111.7 million). The Company has short-term leases related to mining equipment
and office space. Short-term lease expense for the year ended December 31, 2025 was $24.5 million (December 31,
2024 - $27.0 million).
The schedule of undiscounted lease obligations is as follows:
Less than one year $ 61.6
One to five years 129.8
More than five years 113.4
Total undiscounted obligations as at December 31, 2025 $ 304.8
Related to continuing operations $ 294.0
Related to discontinued operations $ 10.8
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
228
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14. DEFERRED REVENUE
The following table summarizes the changes in deferred revenue:
As at December 31, 2023 $ 623.2
Recognition of revenue (78.3)
Variable consideration adjustment (1.6)
Finance costs 34.3
Reclassified to liabilities held for sale (Note 3) (64.3)
Effects of foreign exchange (5.6)
As at December 31, 2024 507.7
Recognition of revenue (67.1)
Variable consideration adjustment (6.5)
Finance costs 26.4
As at December 31, 2025 460.5
Less: current portion 56.3
Long-term portion $ 404.2
Consideration received under the Company’s gold, silver and copper streaming agreements is deemed to be variable
and can be subject to cumulative adjustments when the contractual volume to be delivered changes. As a result of
changes to the Company’s R&R, adjustments have been made to the deferred revenue liability for 2024 and 2025
which were recognized through revenue and finance costs.
For the year ended December 31, 2025, the Company recognized finance costs at a weighted average rate of 5.2%
(2024 - 5.5%) on the deferred revenue balances.
a) Candelaria
The Company entered into a stream agreement with Franco-Nevada Corporation (“FN”), whereby the Company
has agreed to sell 68% of all the gold and silver contained in production from Candelaria until 720,000 ounces
("oz") of gold and 12 million oz of silver have been delivered. Thereafter, FN will be entitled to purchase 40% of the
gold and silver production from Candelaria. The Company received an up-front payment of $648 million which is
being recognized as gold and silver are delivered to FN under the contract.
For each ounce of gold and silver delivered, FN makes payments equal to the lesser of the prevailing market prices
and approximately $433/oz of gold and $4.32/oz of silver (2024 - $429/oz of gold and $4.28/oz of silver), subject to
a 1% annual inflationary adjustment. In 2025, approximately 51,000 oz of gold and 1,101,000 oz of silver ( 2024 -
approximately 59,000 oz of gold and 1,225,000 oz of silver) were subject to the terms of the streaming agreement.
As at December 31, 2025, approximately 654,000 oz of gold and 11,092,000 oz of silver have cumulatively been
subject to the terms of the streaming agreement (2024 - 603,000 oz of gold and 9,991,000 oz of silver).
The deferred revenue balance as at December 31, 2025 at Candelaria is $330.2 million (December 31, 2024 -
$368.0 million).
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
229
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b) Chapada mine
The Company assumed the following streaming agreements with Sandstorm Gold Ltd., now International Royalty
Corporation ("IRC"), a subsidiary of Royal Gold, Inc., and Altius Minerals Corporation (“Altius”) when the Chapada
mine was acquired.
IRC is entitled to purchase the lesser of 3.9 million pounds (“Mlbs”) or 4.2% of the payable copper produced
annually from Chapada at 30% of the market price. The percentage of payable copper is subject to two reduction
thresholds. Once an aggregate of 39 Mlbs has been delivered, the percentage of payable copper reduces to 3.0%.
Upon delivery of 50 Mlbs of copper in aggregate, the percentage of payable copper reduces to 1.5% for the
remaining life of mine. In 2025, approximately 4.2 Mlbs (2024 - 3.6 Mlbs) were delivered under this agreement. As
at December 31, 2025, approximately 37.4 Mlbs (2024 - 33.2 Mlbs) have cumulatively been delivered under this
agreement.
Altius is entitled to purchase 3.7% of the payable copper produced from Chapada at 30% of the market price. The
percentage of payable copper is subject to two reduction thresholds. In the event of a specified expansion at
Chapada, the percentage of payable copper reduces to 2.65%. Also, upon delivery of 75 Mlbs of copper in
aggregate, the percentage of payable copper reduces to 1.5% for the remaining life of mine. In 2025,
approximately 3.5 Mlbs (2024 - 3.3 Mlbs) were delivered under this agreement. As at December 31, 2025,
approximately 36.8 Mlbs (2024 - 33.3 Mlbs) have cumulatively been delivered under this agreement.
The deferred revenue balance as at December 31, 2025 at Chapada is $130.4 million (December 31, 2024 - $139.7
million).
15. RECLAMATION AND OTHER CLOSURE PROVISIONS
Reclamation and other closure provisions relating to the Company's mining operations are as follows:
Reclamation
provisions
Other closure
provisions Total
Balance, December 31, 2023 $ 497.2 $ 47.0 $ 544.2
Accretion 25.5 — 25.5
Changes in estimate (31.3) 6.7 (24.6)
Changes in discount rate (34.1) — (34.1)
Payments (11.7) (6.0) (17.7)
Reclassification to liabilities held for sale (Note 3) (125.5) (8.6) (134.1)
Effects of foreign exchange (9.7) (5.3) (15.0)
Balance, December 31, 2024 310.4 33.8 344.2
Accretion 19.4 — 19.4
Changes in estimate (5.6) 5.9 0.3
Changes in discount rate 4.9 — 4.9
Payments (7.1) (3.3) (10.4)
Reclassification to liabilities held for sale (Note 3) (73.8) — (73.8)
Effects of foreign exchange — 3.6 3.6
Balance, December 31, 2025 248.2 40.0 288.2
Less: current portion 6.4 5.7 12.1
Long-term portion $ 241.8 $ 34.3 $ 276.1
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
230
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The Company expects these liabilities to be settled between 2026 and 2111. The reclamation provisions are
discounted using current market pre-tax discount rates which range fro m 3.5% to 14.5% (December 31, 2025 - 4.3% to
14.4%).
The schedule of undiscounted reclamation and other closure payments is as follows:
Less than one year $ 15.7
One to five years 100.7
More than five years 678.1
Total undiscounted obligations as at December 31, 2025 $ 794.5
Related to continuing operations $ 715.1
Related to discontinued operations $ 79.4
16. DEFERRED CONSIDERATION AND OTHER LONG-TERM LIABILITIES
Deferred consideration and other long-term liabilities are comprised of the following:
December 31, 2025 December 31, 2024
Deferred consideration, non-current portion $ 99.3 $ 102.8
Other 19.6 26.8
$ 118.9 $ 129.6
Deferred consideration represents the non-current portion of the remaining cash consideration for the acquisition of
the Caserones mine. The remaining deferred consideration is to be paid in three annual installments of $10.0 million
and $100 million to be paid in July 2029.
17. SHARE CAPITAL
(a) Authorized and issued shares
Authorized share capital consists of an unlimited number of voting common shares with no par value. As at
December 31, 2025, there were 854,347,591 fully paid voting common shares issued (2024 - 774,102,971 shares).
(b) Share units
The Company has a share unit (“SU”) plan which provides for share unit awards to be granted by the Board of
Directors to certain employees of the Company. The maximum number of SUs that are issuable under the SU plan
is 14,000,000. A SU is a unit representing the right to receive one common share (subject to adjustments) issued
from treasury.
The number and terms of SUs awarded will be determined by the Board of Directors based on the closing market
price on the TSX of the Company’s common shares on the date of the grant.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
231
===== SIDA 232 =====
i) Time-vesting SUs
During 2025, the Company granted 456,015 time-vesting SUs to employees and officers that expire in 2028.
These SUs vest three years from the grant date with the number of SUs being fixed, and with no vesting
conditions other than service. The fair value of the time-vesting SUs are based on the market value of the
shares on the date of the grant and an estimated forfeiture rate of approximately 11% (2024 - 11%). The
weighted average fair value per time-vesting SU granted during 2025 was C$12.03 (2024 - C$10.71). The
Company incurred share-based compensation related expenditures of $3.0 million for 2025 (2024 - $2.9
million) with a corresponding credit to contributed surplus related to time-vesting SUs. As at December 31,
2025, there was $3.2 million (2024 - $4.3 million) of unamortized stock-based compensation expense
related to time-vesting SUs.
ii) Performance-vesting SUs
During 2025, the Company granted 434,167 performance-vesting SUs to officers that expire in 2028. These
SUs vest three years from the grant date with the number of SUs being variable, which can range from zero
to 868,334 contingent upon achieving predetermined performance criteria related to the Company's share
price over the three-year period. The fair value of the performance-vesting SUs are based on a Monte Carlo
model and an estimated forfeiture rate of approximately 11% (2024 - 11%). The weighted average fair value
per performance-vesting SU granted during 2025 was C$11.74 (2024 - C$10.71). The Company incurred
share-based compensation related expenditures of $2.6 million for 2025 (2024 - $2.0 million) with a
corresponding credit to contributed surplus related to performance-vesting SUs. As at December 31, 2025,
there was $2.8 million (2024 - $3.2 million) of unamortized stock-based compensation expense related to
performance-vesting SUs.
During 2025, 327,364 common shares (2024 - 318,679) were issued as a result of SUs being vested.
(c) Stock options
The Company’s Stock Option Plan provides for stock option awards to be granted by the Board of Directors to
certain employees of the Company. The term of any stock options granted under the Stock Option Plan may not
exceed seven years from the date of grant. The maximum number of stock options that are issuable under the
Stock Option Plan is 42,000,000. The vesting requirements are established by the Board of Directors.
The Company uses the fair value method of accounting for the recording of stock options. Under this method, the
Company incurred share-based compensation related expenditures of $5.5 million for 2025 (2024 - $1.4 million)
with a corresponding credit to contributed surplus.
During 2025, the Company granted 1,808,370 stock options to employees and officers that expire in 2032. The
stock options vest over three years from the grant date. The Black-Scholes option pricing model used to
determine the fair value of the stock options at the date of the grant assumed a dividend yield of 3%, risk-free
interest rate of 2.29% to 3.70% (2024 - 2.29% to 3.70%), expected life of 3.3 years (2024 - 4.7 years) and expected
price volatility of 45% (2024 - 46% to 48%). Volatility is determined using the historical daily volatility over the
expected life of the options. A forfeiture rate of approximately 11% was applied (2024 - 11%). The weighted
average fair value per stock option granted during 2025 was C$3.39 (2024 - C$2.24). As at December 31, 2025,
there was $2.3 million of unamortized stock-based compensation expense ( 2024 - $0.5 million) related to stock
options.
During 2025, 1,257,659 and 102,617 common shares were issued as a result of stock options and replacement
options, respectively, being exercised (2024 - 2,822,650 and 109,077).
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
232
===== SIDA 233 =====
The continuity of share-based payments outstanding is as follows:
Number of SUs
Number of
Replacement
options1
Weighted
average
exercise price
(C$)
Number of
options
Weighted
average
exercise price
(C$)
Outstanding, December 31, 2023 1,820,941 280,854 4.91 5,508,802 10.29
Granted 1,041,450 — — 1,498,160 10.71
Forfeited (97,683) (10,189) 5.86 (422,539) 12.51
Exercised (318,679) (109,077) 4.84 (2,822,650) 9.95
Outstanding, December 31, 2024 2,446,029 161,588 4.90 3,761,773 10.46
Granted 890,182 — — 1,808,370 12.91
Forfeited (208,191) (3,631) 6.46 (570,638) 13.23
Exercised (327,364) (102,617) 4.84 (1,257,659) 11.51
Outstanding, December 31, 2025 2,800,656 55,340 4.91 3,741,846 10.87
1 During 2022, the Company issued 2,513,866 replacement options upon completion of the Josemaria Resources Inc.
acquisition.
The following table summarizes options outstanding as at December 31, 2025:
Outstanding Options Exercisable Options
Range of exercise prices (C$)
Number of
Options
Outstanding1
Weighted
Average
Remaining
Contractual
Life (Years)
Weighted
Average
Exercise
Price (C$)
Number of
Options
Exercisable1
Weighted
Average
Remaining
Contractual
Life (Years)
Weighted
Average
Exercise
Price (C$)
4 to 6.99 55,340 0.2 5.05 55,340 0.2 5.05
7 to 9.99 748,201 3.8 7.99 318,803 3.9 7.99
10 to 12.99 2,864,375 5.5 11.37 417,179 4.1 11.11
13 to 16.99 129,270 4.3 15.78 67,500 2.1 14.90
3,797,186 5.0 10.76 858,822 3.6 9.86
1 Includes Replacement options
(d) Deferred share units
The Company has a DSU plan under which DSUs are granted by the Board of Directors quarterly to eligible non-
employee Directors. During 2025, 41,772 (2024 - 33,076) DSUs were granted and 5,618 (2024 - nil) were
exercised under the plan. As at December 31, 2025, there were 59,775 DSUs outstanding (2024 - 23,621).
(e) Basic and diluted weighted average number of shares outstanding
December 31, 2025 December 31, 2024
Basic weighted average number of shares outstanding 855,632,088 774,825,230
Effect of dilutive securities 3,104,442 2,743,811
Diluted weighted average number of shares outstanding 858,736,530 777,569,041
Antidilutive securities 35,319 705,931
The effect of dilutive securities relates to in-the-money outstanding stock options and SUs.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
233
===== SIDA 234 =====
(f) Dividends
The Company declared dividends in the amount of $105.6 million (2024 - $203.0 million), or C$0.17 per share, for
the year ended December 31, 2025 (2024 - C$0.36 per share).
(g) Normal course issuer bid
In December 2024, the Company obtained approval from the TSX for the renewal of its normal course issuer bid
("NCIB") to purchase up to 57,597,388 common shares between December 16, 2024 and December 15, 2025.
Daily purchases (other than pursuant to a block purchase exemption) on the TSX under the NCIB are limited to a
maximum of 560,989 common shares. In connection with the NCIB renewal, the Company entered into an
automatic share purchase plan ("ASPP") with its broker to allow for the purchase of common shares at times
when the Company ordinarily would not be active in the market due to trading blackout periods, insider trading
rules or otherwise.
In December 2025, the Company obtained approval from the TSX for the renewal of its NCIB to purchase up to
67,723,868 common shares between December 16, 2025 and December 15, 2026. Daily purchases (other than
pursuant to a block purchase exemption) on the TSX under the NCIB are limited to a maximum of 624,337
common shares. In connection with the NCIB renewal, the Company entered into an ASPP with its broker under
the same terms as the ASPP entered in December 2024.
During the year ended December 31, 2025 , 15,088,180 shares ( 2024 - 2,815,200 shares) were purchased under
the NCIB at an average price of C$14.05 per share ( 2024 - C$12.33 per share) for total consideration of $ 150.0
million (2024 - $24.4 million). All of the common shares purchased were cancelled in 2025 and 2024. As at
December 31, 2024, the Company recorded an accrual of $3.7 million in trade and other payables due to the
timing of settlement of the repurchase of 429,800 shares on the last trading day of the year which were settled
during January 2025.
18. NON-CONTROLLING INTERESTS AND JOINT OPERATIONS
a) Non-controlling interests
Set out below is summarized financial information for each subsidiary with non-controlling interest ("NCI") that is
material to the group. As part of its Candelaria segment, the Company owns 80% of the Candelaria mine and
Compañia Contractual Minera Ojos del Salado S.A.’s ("Ojos") copper mining operations and supporting
infrastructure in Chile (together the "Candelaria complex").
On July 2, 2024, the Company exercised its option to acquire an additional 19% interest in the issued and
outstanding equity of SCM Minera Lumina Copper Chile ("Lumina Copper"), bringing the Company's ownership in
Caserones from 51% to 70% and reducing the NCI to 30%.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
234
===== SIDA 235 =====
The continuity of the Company's non-wholly owned subsidiaries with material NCI is as follows:
Candelaria complex Caserones mine Total
NCI in subsidiary at December 31, 2025 20% 30%1
As at December 31, 2023 $ 594.8 $ 862.0 $ 1,456.8
Acquisition of additional interest in Caserones — (353.5) (353.5)
Share of net comprehensive income 71.4 70.9 142.3
Distributions (86.0) (66.0) (152.0)
As at December 31, 2024 580.2 513.4 1,093.6
Share of net comprehensive income 96.2 274.5 370.7
Distributions (60.0) (78.0) (138.0)
As at December 31, 2025 $ 616.4 $ 709.9 $ 1,326.3
1 Prior to July 2, 2024, NCI in Caserones was 49%.
Summarized financial information for the Company's non-wholly owned subsidiaries on a 100% basis, before inter-
company eliminations is as follows:
Summarized Balance Sheets
Candelaria complex Caserones mine
As at Dec. 31, 2025 As at Dec. 31, 2024 As at Dec. 31, 2025 As at Dec. 31, 2024
Total current assets $ 824.4 $ 627.0 $ 760.7 $ 600.3
Total non-current assets $ 3,002.0 $ 3,070.3 $ 2,043.8 $ 1,563.1
Total current liabilities $ 406.2 $ 452.6 $ 326.4 $ 298.4
Total non-current liabilities $ 643.0 $ 611.1 $ 218.0 $ 231.9
Summarized Statements of Earnings and Comprehensive Income
Candelaria complex Caserones mine
For the year ended
December 31, 2025 2024 2025 2024
Total revenue $ 2,081.4 $ 1,858.9 $ 1,533.3 $ 1,147.7
Net earnings $ 479.2 $ 355.2 $ 915.2 $ 171.9
Net comprehensive income $ 479.4 $ 355.3 $ 915.2 $ 171.9
Summarized Statement of Cash Flows
Candelaria complex Caserones mine
For the year ended
December 31, 2025 2024 2025 2024
Cash provided by operating
activities $ 360.5 $ 745.2 $ 643.8 $ 438.1
Cash used in investing activities (239.8) (269.0) (152.8) (136.7)
Cash used in financing activities (120.6) (377.0) (141.8) (313.5)
Increase (decrease) in cash and
cash equivalents during the period $ 0.1 $ 99.2 $ 349.2 $ (12.1)
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
235
===== SIDA 236 =====
b) Joint operations
Set out below is summarized financial information for the Vicuña joint operation on a 50% basis:
Summarized Balance Sheets (50% share)
December 31, 2025 January 15, 2025
Total current assets $ 30.6 $ 25.7
Total non-current assets $ 2,327.0 $ 2,148.2
Total current liabilities $ 43.5 $ 20.7
Total non-current liabilities $ 7.6 $ 3.1
Summarized Statements of Loss and Comprehensive Loss (50% share)
20251
Net loss $ (3.9)
Net comprehensive loss $ (3.9)
Summarized Statement of Cash Flows (50% share)
20251
Cash provided by operating activities $ 0.3
Cash used in investing activities (164.2)
Cash used in financing activities (1.2)
Decrease in cash and cash equivalents during the period $ (165.1)
1 Includes financial results between the date of formation, January 15, 2025 and December 31, 2025.
19. REVENUE
The Company's analysis of revenue from contracts with customers, segmented by product, is as follows:
2025 2024
Revenue from contracts with customers:
Copper $ 3,161.7 $ 2,754.3
Gold 407.1 295.3
Molybdenum 90.2 136.8
Silver 64.4 47.4
Other 18.0 28.5
3,741.4 3,262.3
Provisional pricing adjustments on current year concentrate sales 268.8 (9.1)
Provisional pricing adjustments on prior year concentrate sales 43.0 16.9
Revenue $ 4,053.2 $ 3,270.1
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
236
===== SIDA 237 =====
The Company's geographical analysis of revenue from contracts with customers, segmented based on the destination
of product, is as follows:
2025 2024
Revenue from contracts with customers:
Japan $ 1,222.0 $ 1,122.7
China 1,143.4 1,066.2
Spain 679.7 557.0
USA 265.5 —
Germany 184.7 129.8
Finland 125.2 100.0
Chile — 169.4
Other 120.9 117.2
3,741.4 3,262.3
Provisional pricing adjustments on current year concentrate sales 268.8 (9.1)
Provisional pricing adjustments on prior year concentrate sales 43.0 16.9
Revenue $ 4,053.2 $ 3,270.1
Revenue from contracts with customers related to continuing operations for the year ended December 31, 2025
includes an increase of $5.0 million (2024 - increase of $4.2 million) due to variable consideration adjustments.
Provisional pricing adjustments on prior year concentrate sales include adjustments on pricing from sales during 2024.
During the three months ended December 31, 2025, provisional pricing adjustments on current and prior period
concentrate sales were $90.2 million positive and $82.5 million positive, respectively.
20. PRODUCTION COSTS
The Company's production costs are comprised of the following:
2025 2024
Direct mine and mill cost $ 1,780.7 $ 1,639.0
Transportation 95.3 91.3
Royalties 72.1 56.4
Total production costs $ 1,948.1 $ 1,786.7
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
237
===== SIDA 238 =====
21. GENERAL AND ADMINISTRATIVE EXPENSES
The Company's general and administrative expenses are comprised of the following:
2025 2024
Salaries and benefits $ 26.7 $ 23.9
Office related expenses 11.5 14.0
Consulting 11.0 10.6
Stock-based compensation 12.4 6.6
Insurance 0.9 1.3
Other 1.4 1.9
Total general and administrative expenses $ 63.9 $ 58.3
22. EXPLORATION AND BUSINESS DEVELOPMENT
The Company's exploration and business development costs are comprised of the following:
2025 2024
General exploration $ 38.1 $ 35.5
Project development 4.6 5.3
Corporate development 0.8 1.3
Total exploration and business development $ 43.5 $ 42.1
23. FINANCE INCOME AND COSTS
The Company's finance income and costs are comprised of the following:
2025 2024
Interest income $ 14.6 $ 16.1
Interest expense and bank fees (47.0) (100.9)
Accretion expense on reclamation provisions (15.5) (18.7)
Lease liability interest (21.7) (22.7)
Deferred revenue finance costs (14.8) (4.9)
Other (6.1) (6.6)
Total finance costs, net $ (90.5) $ (137.7)
Finance income $ 14.6 $ 16.1
Finance costs (105.1) (153.8)
Total finance costs, net $ (90.5) $ (137.7)
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
238
===== SIDA 239 =====
24. OTHER INCOME AND EXPENSE
The Company's other income and expense are comprised of the following:
2025 2024
Realized losses on derivative contracts (Note 26) $ (37.2) $ (2.1)
Unrealized gains (losses) on derivative contracts (Note 26) 29.0 (85.2)
Loss on disposal of assets (20.9) (8.3)
Foreign exchange (loss) gain (a) (15.5) 32.8
Revaluation of marketable securities 14.9 7.4
Ojos del Salado sinkhole (expenses) recovery (b) (10.9) 9.5
Foreign exchange and trading gains on debt and equity investments (c) 3.4 28.3
Gain on partial disposal and contribution to Vicuña 3.0 —
Revaluation of Caserones purchase option (d) — 11.7
Write-down of assets — (22.1)
Other (expense) income (18.2) 6.1
Total other expense, net $ (52.4) $ (21.9)
a) Foreign exchange (loss) gain during the year ended December 31, 2025 and 2024, primarily relate to the foreign
exchange revaluation of trade payables and lease liabilities held in foreign currencies.
b) Ojos del Salado sinkhole (expenses) recovery during the year ended December 31, 2025 and 2024 include
adjustments to expenses previously accrued, as a result of updated information related to the sinkhole near the
Company's Ojos del Salado operations.
c) Foreign exchange and trading gains on debt and equity investments include the changes in fair value of debt and
equity instruments supporting capital funding for the Josemaria project prior to the formation of Vicuña.
d) The Caserones purchase option was revalued at each reporting period up to the date of exercise, with changes in
fair value recorded in Other Income and Expense. The purchase option was exercised on July 2, 2024.
25. CURRENT AND DEFERRED INCOME TAXES
2025 2024
Current Tax Expense:
Current tax on net taxable earnings $ 304.4 $ 290.4
Adjustments in respect of prior years (4.7) 4.5
Current tax expense 299.7 294.9
Deferred tax recovery (569.7) (36.1)
Total tax (recovery) expense $ (270.0) $ 258.8
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
239
===== SIDA 240 =====
The tax on the Company's earnings before income tax differs from the amount that would arise using the weighted
average rate applicable to earnings of the consolidated entities as follows:
2025 2024
Earnings excluding income taxes $ 1,147.7 $ 526.5
Combined basic federal and provincial rates 27.0 % 27.0 %
Income taxes based on Canadian statutory income tax rates $ 309.9 $ 142.2
Effect of different tax rates in foreign jurisdictions 2.9 26.9
Tax calculated at domestic tax rates applicable to earnings in the respective
countries 312.8 169.1
Tax effects of:
Mining Royalty Tax 71.7 72.3
Non-deductible and non-taxable items (a) 1.9 17.0
Changes in estimates on Chilean royalty tax rate (b) (37.8) 15.0
Adjustments in respect of prior years 5.2 (2.4)
Unrecognized deferred tax assets (c) 42.4 44.8
Foreign exchange impact on temporary differences and other
translation amounts (d) (34.2) 12.7
Recognition of previously unrecognized temporary differences (e) (650.9) (71.7)
Outside basis difference on investment in subsidiaries 10.9 —
Net withholding tax on accrued interest and dividends received 6.5 5.5
Other 1.5 (3.5)
Total tax (recovery) expense $ (270.0) $ 258.8
The Company operates in tax jurisdictions that have tax rates (including mining royalty tax) ranging from 15.0% to
37.7%.
a) Includes non-deductible environmental expenses incurred at Caserones of $51.6 million (2024 - $47.6 million),
partially offset by tax deductible interest on equity payments in Chapada of $30.9 million (2024 - $6.4 million)
that are not reflected in the Company's earnings.
b) The mining royalty law in Chile, which includes a 1% ad-valorem tax on sales applies to Candelaria and will
become applicable for Caserones in 2028 when its tax stability agreement expires. In addition to the ad-valorem
tax, both operations in Chile are expected to pay mining tax of approximately 8% - 15% on net mining income.
The maximum effective tax rate for the combined mining royalty, corporate income tax and final taxes in Chile is
set at 46.5%.
Due to changes in future production and mining operating margin estimates, the Company recognized $31.2
million of deferred tax recovery at Candelaria (2024 - $23.3 million deferred tax expense) and $6.6 million of
deferred tax recovery at Caserones (2024 - $8.3 million).
c) Deferred tax expense associated with temporary differences for which no deferred tax assets were recognized
includes $10.6 million at Candelaria (2024 - $29.7 million), $3.5 million in Canada (2024 - $14.1 million), $11.5
million in Bermuda (2024 - $nil) and $7.8 million in Switzerland (2024 - $nil).
d) The revaluation of non-monetary assets in Brazil from the local currency BRL to USD resulted in a deferred tax
recovery of $34.2 million at Chapada (2024 - $51.3 million deferred tax expense).
e) Includes the recognition of $665.0 million of previously unrecognized deferred tax assets at Caserones (2024 -
$64.8 million), primarily related to tax losses and property plant & equipment.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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Global Minimum Top-up Tax - Pillar Two
The Company is within the scope of OECD Pillar Two model rules. Among the jurisdictions where the Company
operates, Pillar Two legislation has been enacted in Sweden, Canada, Brazil and the Netherlands.
The Company applies the exception to recognizing and disclosing information about deferred tax assets and liabilities
as provided by the amendments to IAS 12 in May 2023. The Company also accounts for any top up taxes as a current
tax when it is incurred. The Company has performed an analysis of the Global Minimum Tax rules including country-by-
country reporting (CbCR) safe harbour test, and concluded that no top-up tax was required in 2025.
Deferred tax assets (liabilities)
December 31, 2025 December 31, 2024
Deferred tax assets $ 719.6 $ 191.3
Deferred tax liabilities (611.6) (643.8)
Deferred tax assets (liabilities) $ 108.0 $ (452.5)
The movement in deferred income tax assets and liabilities during the year, without taking into consideration the
offsetting of balances within the same jurisdiction, is as follows:
As at
December 31,
2024
(Expensed)/
recovered
Discontinued
Operations
Effects of
foreign
exchange
As at
December 31,
2025
Deferred tax assets:
Loss carryforwards $ 153.3 $ 516.5 $ (6.2) $ — $ 663.6
Reclamation & other
closure provisions 48.8 (7.3) — 2.3 43.8
Leases 25.6 1.2 (2.8) — 24.0
Sinkhole provision 6.6 1.9 — — 8.5
Provisional pricing provision &
other fair value gain/losses 18.4 (67.9) — (0.1) (49.6)
Deferred tax liabilities:
Mineral properties, plant &
equipment (444.8) 39.5 9.0 (12.1) (408.4)
Right-of-use assets (32.5) 5.6 3.1 (0.1) (23.9)
Provisions (65.9) 19.0 — 1.1 (45.8)
Mining royalty taxes (33.2) 8.0 — — (25.2)
Long-term inventory (119.8) 46.0 (0.6) (4.0) (78.4)
Foreign currency contracts (7.6) 4.4 — — (3.2)
Other (1.4) 2.8 — 1.2 2.6
$ (452.5) $ 569.7 $ 2.5 $ (11.7) $ 108.0
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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As at
December 31,
2023
(Expensed)/
recovered
Discontinued
Operations
Balance Sheet/
Equity
adjustment
Effects of
foreign
exchange
As at
December 31,
2024
Deferred tax assets:
Loss carryforwards $ 58.1 $ 96.2 $ — $ — $ (1.0) $ 153.3
Reclamation & other
closure provisions 62.0 5.7 (15.3) — (3.6) 48.8
Deferred revenue 12.8 — (12.8) — — —
Future tax credits 4.3 — (4.3) — — —
Leases 5.9 20.0 (0.3) — — 25.6
Sinkhole provision 6.6 — — — — 6.6
Other 4.9 22.0 7.6 — 1.6 36.1
Deferred tax liabilities:
Mineral properties,
plant & equipment (496.1) (10.4) 44.6 — 17.1 (444.8)
Right-of-use assets (31.3) (1.5) 0.4 — (0.1) (32.5)
Provisions (88.3) (5.5) 30.7 — (2.2) (65.3)
Mining royalty taxes (9.6) (23.6) — — — (33.2)
Long-term inventory (88.2) (34.5) 9.5 — (6.6) (119.8)
Fair value gains (12.8) 1.6 — — — (11.2)
Foreign currency
contracts (9.2) — — — (9.2)
Pension provision (0.6) (4.8) (1.7) 0.3 (0.1) (6.9)
$ (581.5) $ 65.2 $ 58.4 $ 0.3 $ 5.1 $ (452.5)
Deferred tax assets are recognized for tax loss carry-forwards and other temporary differences to the extent that the
realization of the related tax benefit through future taxable profits is probable. The Company determined that it is
probable that sufficient future taxable profits will be available to allow the benefit of the deferred tax assets to be
utilized.
The Company did not recognize deferred tax assets of $486.0 million (2024 - $1,058.7 million) in respect of losses
amounting to $1,815.6 million (2024 - $3,924.3 million) that can be applied against future taxable income.
Caserones has approximately $3.9 billion in tax losses which can be applied to future taxable income over the mine
life. A deferred tax asset of $665.4 million has been recognized at Caserones in respect of these losses and deductible
temporary differences.
Sensitivity analysis was performed on the underlying forecast taxable profits model for Caserones. A 5% reduction to
forecast metal prices would decrease the deferred tax asset by approximately $134.4 million and a 5% weakening of
USD:CLP foreign exchange rate would increase the deferred tax asset by $40.1 million.
Deferred tax liabilities have not been recognized on $1.2 billion of taxable temporary differences from unremitted
earnings of foreign subsidiaries and joint arrangements, because the Company controls when these differences
reverse and does not expect them to reverse in the foreseeable future.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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