FULLTEXT DEL 5 AV 5

Årsredovisning 2025

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26.	 FINANCIAL	INSTRUMENTS
Derivative	instruments
From	time	to	time,	the	Company	uses	derivative	contracts	as	part	of	its	risk	management	strategy	to	mitigate	exposure	
to	 foreign	 currencies	 and	 commodities.	 The	 Company	 maintains	 foreign	 currency	 forward	 and	 option	 contracts	 on	
CAD,	 BRL,	 and	 CLP	 foreign	 currencies	 intended	 to	 limit	 the	 foreign	 exchange	 exposure	 of	 its	 forecasted	 foreign	
currency	denominated	after-tax	attributable	operating	and	capital	expenditures.	Additional	commodity	forward	swap	
and	option	contracts	are	used	from	time	to	time	to	limit	exposure	to	changes	in	the	price	of	diesel	fuel	purchases	at	
Candelaria,	and	to	limit	exposure	to	changes	in	the	price	of	gold.	
The	 foreign	 exchange	 and	 commodities	 contracts	 have	 not	 been	 designated	 as	 hedges	 for	 purposes	 of	 hedge	
accounting	 and	 are	 measured	 at	 fair	 value	 with	 changes	 in	 fair	 value	 recognized	 in	 the	 consolidated	 statements	 of	
earnings.
The	 following	 tables	 outline	 the	 foreign	 currency	 and	 commodity	 derivative	 notional	 contract	 positions	 and	 their	
expiry	dates:
Expired	in Expiring	throughout:
Foreign	currency	forward	contracts 2025 2026
USD/CAD	forwards
Average	contract	price 	 1.40	 	 —	
Position	(USD	millions) 	 499	 	 —	
USD/SEK	forwards
Average	contract	price 	 10.83	 	 —	
Position	(SEK	millions) 	 758	 	 —	
Expired	in Expiring	throughout:
Foreign	currency	option	contracts 2025 2026
USD/BRL	collars
Average	contract	price 	5.06/6.04	 5.07/6.04
Position	(USD	millions) 	 185	 	 114	
USD/CLP	collars
Average	contract	price 	872/1,032	 904/1,060
Position	(USD	millions) 	 511	 	 342	
Expired	in Expiring	throughout:
Commodity	hedge	contracts 2025 2026
Gold	collars
Average	contract	price	($/oz) 	2,500/3,125	 2,500/3,455
Position	(koz) 	 62	 	 43	
Diesel	collars
Average	contract	price	($/L) 	0.50/0.65	 	 —	
Position	(millions	of	litres) 	 54	 	 —	
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’s	net	unrealized	and	realized	gain/(loss)	on	foreign	currency	and	commodity	derivative	contracts	are	as	
follows:
2025 2024
Unrealized	gain	(loss)	on	derivative	financial	instruments:
Foreign	currency	contracts $	 71.4	 	 (87.7)	 
Commodity	hedge	contracts 	 (42.4)	 	 2.5	
	 29.0	 	 (85.2)	 
Realized	(loss)	gain	on	derivative	financial	instruments:
Foreign	currency	contracts 	 (13.7)	 	 2.6	
Commodity	hedge	contracts 	 (23.5)	 	 (4.6)	 
	 (37.2)	 	 (2.0)	 
Total	unrealized	and	realized	loss	on	derivative	contracts: $	 (8.2)	 $	 (87.2)	 
A	 summary	 of	 the	 fair	 values	 of	 unsettled	 derivative	 contracts	 recorded	 on	 the	 consolidated	 balance	 sheet	 is	 as	
follows:
December	31,	2025 December	31,	2024	
Foreign	currency	contracts:
Current	asset	position $	 9.8	 $	 —	
Current	liability	position 	 2.3	 	 39.4	
Non-current	liability	position 	 —	 	 24.5	
Commodity	contracts:
Current	asset	position $	 —	 $	 1.0	
Non-current	asset	position 	 —	 	 0.7	
Current	liability	position 	 40.7	 	 —	
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)
244

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Fair	values	of	financial	instruments
The	Company’s	financial	assets	and	financial	liabilities	have	been	classified	into	categories	that	determine	their	basis	of	
measurement.	 The	 following	 table	 shows	 the	 carrying	 values,	 fair	 values	 and	 fair	 value	 hierarchy	 of	 the	 Company’s	
financial	instruments	as	at	December	31,	2025	and	December	31,	2024:
December	31,	2025 December	31,	2024
Level
Carrying
value Fair	value
Carrying
value Fair	value
Financial	assets
Fair	value	through	profit	or	loss
Restricted	funds 1 $	 16.4	 $	 16.4	 $	 8.6	 $	 8.6	
Trade	receivables	(provisional) 2 	 624.2	 	 624.2	 	 337.1	 	 337.1	
Marketable	securities 1 	 30.9	 	 30.9	 	 60.1	 	 60.1	
Foreign	currency	contracts 2 	 9.8	 	 9.8	 	 —	 	 —	
Contingent	consideration	(Note	3) 3 	 85.7	 	 85.7	 	 —	 	 —	
Commodity	contracts 2 	 —	 	 —	 	 1.6	 	 1.6	
$	 767.0	 $	 767.0	 $	 407.4	 $	 407.4	
Financial	liabilities
Amortized	cost
Debt 3 $	 237.1	 $	 237.1	 $	 1,757.0	 $	 1,757.0	
Caserones	deferred	consideration	 2 	 109.3	 	 109.3	 	 112.8	 	 112.8	
Fair	value	through	profit	or	loss
Pricing	provisions	on	concentrate	sales 2 $	 2.4	 $	 2.4	 $	 7.1	 $	 7.1	
Foreign	currency	contracts 2 	 2.3	 	 2.3	 	 63.9	 	 63.9	
Commodity	contracts 2 	 40.7	 	 40.7	 	 —	 	 —	
$	 45.4	 $	 45.4	 $	 71.0	 $	 71.0	
Fair	 values	 of	 financial	 instruments	 are	 determined	 by	 valuation	 methods	 depending	 on	 hierarchy	 levels	 as	 defined	
below:
Level	1	–	Quoted	market	price	in	active	markets	for	identical	assets	or	liabilities.
Level	 2	 –	 Inputs	 other	 than	 quoted	 market	 prices	 included	 within	 Level	 1	 that	 are	 observable	 for	 the	 assets	 or	
liabilities,	either	directly	(i.e.	observed	prices)	or	indirectly	(i.e.	derived	from	prices).
Level	3	–	Inputs	for	the	assets	or	liabilities	are	not	based	on	observable	market	data.
The	Company	estimates	fair	values	based	on	the	following	methods	of	valuation	and	assumptions:
Marketable	securities/debt	and	equity	investments/restricted	funds	–	The	fair	value	of	investments	in	shares	and	
bonds	is	determined	based	on	the	quoted	market	price.
Trade	 receivables/pricing	 provisions	 on	 concentrate	 sales	 –	 The	 fair	 value	 of	 trade	 receivables	 that	 contain	
provisional	pricing	sales	arrangements	are	valued	using	quoted	forward	market	prices.	The	Company	recognized	
positive	pricing	adjustments	of	 $311.8	million	in	revenue	during	the	 year	ended	 December	31,	2025 	(December	
31,	2024	-		$7.8	million	positive	pricing	adjustments).
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)
245

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Foreign	 currency	 and	 commodity	 contracts	 –	 The	 fair	 value	 of	 these	 derivatives	 are	 determined	 by	 the	
counterparties	to	the	contracts	and	are	assessed	by	Management	using	pricing	models	based	on	active	market	
prices.
Contingent	 consideration	 –	 The	 fair	 value	 of	 the	 contingent	 consideration	 was	 estimated	 by	 calculating	 the	
present	 value	 of	 the	 future	 expected	 cash	 flows	 from	 the	 contingent	 copper	 and	 zinc	 payments	 related	 to	 the		
Neves-Corvo	 mine	 and	 Zinkgruvan	 mine	 based	 on	 probability-weighted	 scenarios	 of	 future	 copper	 and	 zinc	
prices.	
Caserones	deferred	consideration	–	The	fair	value	of	the	Caserones	deferred	consideration	has	been	discounted	
at	the	estimated	credit	adjusted	risk	free	rate	applicable	to	future	payments.
Debt	–	The	fair	values	approximate	carrying	values	as	the	interest	rates	are	comparable	to	current	market	rates.	
The	 carrying	 values	 of	 certain	 financial	 instruments	 maturing	 in	 the	 short-term	 approximate	 their	 fair	 values.	
These	 financial	 instruments	 include	 cash	 and	 cash	 equivalents,	 trade	 and	 other	 receivables	 other	 than	 those	
provisionally	priced,	and	trade	and	other	payables	other	than	those	provisionally	priced,	which	are	classified	as	
amortized	cost.
27.		 COMMITMENTS	AND	CONTINGENCIES
a)	 The	Company	has	capital	commitments	of	 $327.0	million	on	various	initiatives	of	which	 $323.7	million	and	 $3.3	
million	relate	to	continuing	and	discontinued	operations,	respectively.	Capital	commitments	of	 $197.0	million	are	
expected	to	be	paid	during	2026	of	which	$193.7	million	is	related	to	continuing	operations.
b)	 T he	Company	has	been	provided	with	an	indemnity	for	any	tax	liabilities	that	may	arise	for	periods	prior	to	the	
date	 of	 the	 Chapada	 acquisition	 in	 July	 2019.	 For	 identified	 tax	 claims	 existing	 at	 the	 date	 of	 acquisition,	 the	
Company	has	agreed	to	be	liable	for	up	to	the	first	$21.0	million	(BRL	101.5	million).	While	the	outcome	of	these	
tax	claims	is	uncertain,	no	material	liabilities	have	been	accrued	as	the	Company	believes	material	payment	is	not	
likely	due	to	the	nature	of	the	tax	claims.
c)	 In	 respect	 of	 the	 2017	 taxation	 year,	 the	 Canada	 Revenue	 Agency	 ("CRA")	 issued	 a	 reassessment	 denying	 the	
Company’s	2007	election	to	increase	the	tax	cost	of	its	investment	in	a	subsidiary.	The	reassessment	proposes	an	
increase	in	taxable	income	of	approximately	$456	million,	 which	would	result	in	additional	income	taxes	payable	
of	 approximately	 $114.1	 million	 and	 interest	 of	 approximately	 $46.2	 million.	 The	 Company	 filed	 a	 Notice	 of	
Objection	on	January	28,	2026	and	will	vigorously	and	expeditiously	defend	its	tax	filing	position	through	CRA's	
Appeals	Division	and,	if	required,	court	proceedings.	No	provision	has	been	recognized	as	the	Company	believes	
its	filing	position	is	in	compliance	with	Canadian	tax	law.	
d) The	 following	 summarizes	 total	 tax	 exposure	 under	 two	 contradictory	 assessments	 received	 from	 the	 Chilean	
Internal	Revenue	Service	("IRS").	Given	that	the	assessments	relate	to	the	same	issue,	the	Company’s	potential	
exposure	is	expected	to	be	limited	to	one	of	the	below	scenarios:
i)	 For	 taxation	 years	 2014	 through	 2019,	 the	 IRS	 issued	 tax	 assessments	 denying	 tax	 deductions	 related	 to	
interest	expenses	arising	from	an	intercompany	debt.	The	total	of	all	assessments	amounts	to	$145.6	million	
in	 taxes	 plus	 estimated	 interest	 and	 penalties	 of	 $131.7	 million.	 All	 tax	 refunds	 arising	 from	 the	 tax	
deductions	related	to	the	intercompany	debt	have	been	received	up	to	December	2025.	
ii)	 On	 the	 same	 intercompany	 debt	 for	 taxation	 years	 2016	 through	 2019,	 the	 Company	 has	 also	 received	
assessments	from	the	IRS	seeking	additional	withholding	taxes,	including	interest	and	penalties,	on	interest	
payments	made.	The	total	of	all	assessments	amounts	to	$114.2	million	in	taxes	plus	estimated	interest	and	
penalties	of	$142.2	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)
246

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In	 November	 2025,	 the	 Company	 received	 final	 rulings	 from	 the	 Second	 Tax	 and	 Customs	 Court	 of	 the	
Metropolitan	Region	of	Santiago	in	respect	of	the	assessments	summarized	above.	The	rulings	were	all	in	favour	
of	the	Company.		Subsequently,	in	December	2025,	the	Chilean	IRS	 filed	an	appeal.	The	Company	maintains	its	
position	that	the	assessments	are	inconsistent	with	Chilean	tax	law	and,	therefore,	without	merit.	The	Company	
does	 not	 expect	 further	 assessments	 to	 be	 issued	 related	 to	 this	 tax	 matter,	 as	 the	 intercompany	 loan	 was	
amended	in	2020	with	an	interest	rate	accepted	by	the	IRS.
e)	 The	 Company	 may	 be	 involved	 in	 legal	 proceedings	 arising	 in	 the	 ordinary	 course	 of	 business,	 including	 the	
actions	 described	 below.	 The	 potential	 amount	 of	 the	 liability	 with	 respect	 to	 such	 legal	 proceedings	 is	 not	
expected	to	materially	affect	the	Company’s	financial	position.	The	Company	believes	the	claims	to	be	without	
merit	and	the	loss,	if	any,	cannot	be	determined	at	this	time	for	all	contingencies.	The	Company	has	accordingly	
not	 accrued	 any	 amounts	 related	 to	 the	 litigations	 below	 (unless	 otherwise	 noted).	 The	 Company	 intends	 to	
vigorously	defend	these	claims.	
Two	 proposed	 class	 actions	 were	 filed	 against	 the	 Company	 and	 certain	 officers	 and	 directors.	 The	 first,	 in	 the	
province	 of	 Ontario,	 on	 December	 7,	 2017	 (Markowich	 v.	 Lundin	 Mining	 Corporation	 et	 al)	 and	 a	 second	
overlapping	action	in	the	province	of	Québec	on	January	18,	2018	(Prévreau	v.	Lundin	Mining	Corporation	et	al).	
Both	 proposed	 class	 actions	 seek	 damages	 of	 $132.3	 million	 (C$175.0	 million)	 and	 punitive	 damages	 of	 $7.6	
million	 (C$10.0	 million)	 and	 assert	 various	 statutory	 and	 other	 claims	 related	 to,	 among	 other	 things,	 alleged	
misrepresentations	 and/or	 failure	 to	 make	 timely	 disclosure	 of	 material	 information	 about	 the	 Company’s	
business	 and	 operations	 and,	 in	 particular,	 the	 operations	 of	 the	 Candelaria	 mine	 and	 a	 rock	 slide	 at	 the	
Candelaria	mine	on	October	31,	2017.	The	proposed	Ontario	class	action	asserts	claims	on	behalf	of	a	putative	
class	comprising	persons	who	acquired	securities	of	the	Company	between	October	25,	2017,	and	November	29,	
2017,	whereas	the	proposed	Québec	class	action	asserts	claims	on	behalf	of	only	such	persons	who	are	resident	
or	 domiciled	 in	 Québec.	 	 In	 June	 2018,	 counsel	 to	 the	 plaintiffs	 in	 the	 Québec	 action	 agreed	 to	 a	 stay	 (i.e.,	
indefinite	cessation)	of	that	proceeding	in	light	of	the	Ontario	action.	On	August	30,	2018,	the	Québec	Superior	
Court,	on	consent	of	the	parties,	stayed	the	Québec	action	indefinitely.	On	September	2,	2020,	the	plaintiff	in	the	
Ontario	action	served	motion	materials	for	leave	and	certification	with	the	Ontario	Superior	Court	of	Justice.	On	
January	6,	2022,	the	Ontario	Superior	Court	of	Justice	denied	the	leave	application	and	declined	the	motion	for	
certification.	 On	 May	 24,	 2023,	 the	 Ontario	 Court	 of	 Appeal	 granted	 the	 plaintiff’s	 appeal	 of	 this	 decision.	 In	
August	2023,	the	defendants	filed	an	application	for	leave	to	appeal	the	Ontario	Court	of	Appeal	decision	to	the	
Supreme	Court	of	Canada,	which	leave	to	appeal	was	granted	on	March	25,	2024.	On	November	28,	2025,	the	
Supreme	Court	of	Canada	upheld	the	2023	Ontario	Court	of	Appeal	decision	allowing	the	certified	class	action	to	
proceed	before	the	Ontario	Superior	Court	of	Justice.	There	has	been	no	decision	on	the	merits	of	the	case,	and	
the	Company	intends	to	vigorously	defend	the	action.
f)	 Pursuant	 to	 the	 Definitive	 Agreement	 (Note	 3),	 the	 Company	 provides	 financial	 assurances	 for	 the	 reclamation	
and	closure	of	Eagle	mine.
28.		 SEGMENTED	INFORMATION
The	 Company	 is	 engaged	 in	 mining,	 exploration	 and	 development	 of	 mineral	 properties	 at	 three	 operating	 sites	
located	 in	 Chile	 and	 Brazil,	 and	 at	 Vicuña	 in	 Argentina	 and	 Chile.	 Operating	 segments	 are	 reported	 in	 a	 manner	
consistent	with	the	internal	reporting	provided	to	the	executive	leadership	team	who	act	as	the	operating	decision-
makers.	The	chief	operating	decision	makers	consider	the	business	from	a	site	and	project-level	perspective.	Executive	
management	 are	 responsible	 for	 allocating	 resources	 and	 assessing	 performance	 of	 the	 operating	 segments.	 The	
Company	 has	 identified	 four	 reportable	 segments	 which	 include	 three	 operating	 sites,	 and	 the	 Vicuña	 Project.	 The	
Vicuña	 segment	 is	 an	 independently	 managed	 joint	 arrangement	 and	 includes	 the	 legacy	 Josemaria	 segment	 for	
periods	up	until	January	15,	2025	and	the	Company's	50%	share	of	the	Josemaria	project	and	Filo	del	Sol	project	after	
that	 date	 (Note	 4).	 Discontinued	 operations	 include	 results	 from	 the	 Eagle,	 Neves-Corvo	 and	 Zinkgruvan	 segments	
(Note	3).
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)
247

===== SIDA 248 =====

For	the	year	ended	December	31,	2025 Candelaria Caserones Chapada Vicuña1 Other Total	
Continuing	
Operations
Discontinued	
Operations
Total
Chile Chile Brazil
Argentina	&	
Chile
Revenue $	 1,769.0	 $	 1,618.9	 $	 665.3	 $	 —	 $	 —	 $	 4,053.2	 $	 409.3	 $	 4,462.5	
Cost	of	goods	sold
Direct	mine	and	mill	costs 	 (738.0)	 	 (777.1)	 	 (262.7)	 	 —	 	 (2.9)	 	 (1,780.7)	 	 (236.8)	 	 (2,017.5)	 
Transportation 	 (30.2)	 	 (35.5)	 	 (29.6)	 	 —	 	 —	 	 (95.3)	 	 (27.2)	 	 (122.5)	 
Royalties 	 (15.7)	 	 (41.9)	 	 (14.5)	 	 —	 	 —	 	 (72.1)	 	 (13.8)	 	 (85.9)	 
Depreciation,	depletion	and	amortization 	 (300.0)	 	 (212.2)	 	 (106.2)	 	 —	 	 (0.5)	 	 (618.9)	 	 (22.3)	 	 (641.2)	 
Inventory	write-down 	 —	 	 —	 	 (88.2)	 	 —	 	 —	 	 (88.2)	 	 —	 	 (88.2)	 
Gross	profit	(loss) 	 685.1	 	 552.2	 	 164.1	 	 —	 	 (3.4)	 	 1,398.0	 	 109.2	 	 1,507.2	
General	and	administrative	expenses 	 —	 	 —	 	 —	 	 —	 	 (63.9)	 	 (63.9)	 	 —	 	 (63.9)	 
Exploration	and	business	development 	 (8.4)	 	 (21.9)	 	 (4.7)	 	 (4.2)	 	 (4.3)	 	 (43.5)	 	 (6.9)	 	 (50.4)	 
Finance	(costs)	income 	 (19.4)	 	 (20.1)	 	 (23.3)	 	 1.0	 	 (28.7)	 	 (90.5)	 	 (9.0)	 	 (99.5)	 
Other	(expense)	income 	 (55.0)	 	 (19.0)	 	 (9.0)	 	 —	 	 30.6	 	 (52.4)	 	 40.1	 	 (12.3)	 
Gain	on	disposal	of	subsidiaries 	 —	 	 —	 	 —	 	 —	 	 —	 	 —	 	 106.3	 	 106.3	
Asset	impairment 	 —	 	 —	 	 —	 	 —	 	 —	 	 —	 	 22.7	 	 22.7	
Income	tax	(expense)	recovery 	 (235.1)	 	 497.8	 	 —	 	 (12.2)	 	 19.5	 	 270.0	 	 (26.6)	 	 243.4	
Net	earnings	(loss) $	 367.2	 $	 989.0	 $	 127.1	 $	 (15.4)	 $	 (50.2)	 $	 1,417.7	 $	 235.8	 $	 1,653.5	
Capital	expenditures $	 246.0	 $	 156.3	 $	 99.2	 $	 182.8	 $	 0.3	 $	 684.6	 $	 79.2	 $	 763.8	
Total	non-current	assets(2) $	 2,997.8	 $	 1,336.2	 $	 1,240.2	 $	 2,392.6	 $	 6.0	 $	 7,972.8	 $	 —	 $	 7,972.8	
1	The	Vicuña	segment	includes	the	legacy	Josemaria	segment	for	periods	up	until	January	15,	2025	and	the	Company's	50%	share	of	the	Vicuña	Project	after	that	date	(Note	4).
2	Non-current	assets	include	long-term	inventory,	mineral	properties,	plant	and	equipment,	and	goodwill.
LUNDIN	MINING	CORPORATION
Notes	to	consolidated	financial	statements
For	the	years	ended	December	31,	2025	and	2024
(Tabular	amounts	in	millions	of	US	dollars,	except	for	shares	and	per	share	amounts)
248

===== SIDA 249 =====

For	the	year	ended	December	31,	2024 Candelaria Caserones Chapada Vicuña1 Other Total	
Continuing	
Operations
Discontinued	
Operations
Total
Chile Chile Brazil
Argentina	&	
Chile
Revenue $	 1,618.9	 $	 1,153.6	 $	 497.6	 $	 —	 $	 —	 $	 3,270.1	 $	 847.3	 $	 4,117.4	
Cost	of	goods	sold
Direct	mine	and	mill	costs 	 (679.9)	 	 (709.4)	 	 (248.5)	 	 —	 	 (1.2)	 	 (1,639.0)	 	 (501.1)	 	 (2,140.1)	 
Transportation 	 (31.0)	 	 (34.7)	 	 (25.6)	 	 —	 	 —	 	 (91.3)	 	 (44.7)	 	 (136.0)	 
Royalties 	 (15.7)	 	 (32.1)	 	 (8.6)	 	 —	 	 —	 	 (56.4)	 	 (11.4)	 	 (67.8)	 
Depreciation,	depletion	and	amortization 	 (313.1)	 	 (184.1)	 	 (76.5)	 	 —	 	 (0.5)	 	 (574.2)	 	 (188.9)	 	 (763.1)	 
Reversal	of	inventory	write-down 	 —	 	 —	 	 26.6	 	 —	 	 —	 	 26.6	 	 —	 	 26.6	
Gross	profit	(loss) 	 579.2	 	 193.3	 	 165.0	 	 —	 	 (1.7)	 	 935.8	 	 101.2	 	 1,037.0	
General	and	administrative	expenses 	 —	 	 —	 	 —	 	 —	 	 (58.3)	 	 (58.3)	 	 —	 	 (58.3)	 
Exploration	and	business	development 	 (10.2)	 	 (14.8)	 	 (5.6)	 	 (8.3)	 	 (3.2)	 	 (42.1)	 	 (16.0)	 	 (58.1)	 
Finance	(costs)	income 	 (26.9)	 	 (17.3)	 	 (25.7)	 	 21.5	 	 (89.3)	 	 (137.7)	 	 (13.4)	 	 (151.1)	 
Other	(expense)	income 	 14.9	 	 37.6	 	 3.8	 	 7.3	 	 (85.5)	 	 (21.9)	 	 (11.0)	 	 (32.9)	 
Goodwill	and	asset	impairment 	 (55.9)	 	 —	 	 (93.5)	 	 —	 	 —	 	 (149.4)	 	 (396.1)	 	 (545.5)	 
Partial	suspension	of	underground	operations	cost 	 —	 	 —	 	 —	 	 —	 	 —	 	 —	 	 (36.1)	 	 (36.1)	 
Income	tax	(expense)	recovery 	 (237.9)	 	 (0.9)	 	 (62.2)	 	 50.1	 	 (7.9)	 	 (258.8)	 	 42.5	 	 (216.3)	 
Net	earnings	(loss) $	 263.2	 $	 197.9	 $	 (18.2)	 $	 70.6	 $	 (245.9)	 $	 267.6	 $	 (328.9)	 $	 (61.3)	 
Capital	expenditures $	 275.7	 $	 144.0	 $	 107.8	 $	 258.2	 $	 0.4	 $	 786.1	 $	 176.2	 $	 962.3	
Total	non-current	assets(2) $	 3,063.8	 $	 1,374.7	 $	 1,290.0	 $	 1,408.2	 $	 6.6	 $	 7,143.3	 $	 107.5	 $	 7,250.8	
1	The	Vicuña	segment	includes	the	legacy	Josemaria	segment	for	periods	up	until	January	15,	2025	and	the	Company's	50%	share	of	the	Vicuña	Project	after	that	date	(Note	4).
2	Non-current	assets	include	long-term	inventory,	mineral	properties,	plant	and	equipment,	and	goodwill.
LUNDIN	MINING	CORPORATION
Notes	to	consolidated	financial	statements
For	the	years	ended	December	31,	2025	and	2024
(Tabular	amounts	in	millions	of	US	dollars,	except	for	shares	and	per	share	amounts)
249

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29.	 RELATED	PARTY	TRANSACTIONS
a)	 Key	management	personnel 	-	The	Company	has	identified	its	directors	and	senior	officers	as	its	key	management	
personnel.	Employee	benefits	for	key	management	personnel	are	as	follows:
2025 2024
Wages,	salaries	and	pension	benefits $	 7.8	 $	 7.4	
Share-based	compensation 	 4.2	 	 2.2	
$	 12.0	 $	 9.6	
b)	 Other	related	parties	-	For	the	year	ended	December	31,	2025,	the	Company	incurred	$7.3	million	(December	31,	
2024	 –	 $8.4	 million),	 and	 no	 receipt	 of	 refunds	 (December	 31,	 2024	 –	 $2.1	 million)	 for	 services	 provided	 by	
companies	 owned	 by	 members	 of	 key	 management	 personnel	 primarily	 relating	 to	 office	 rental	 and	
transportation.	For	the	year	ended	December	31,	2025,	the	Company	incurred	$2.2	million	(December	31,	2024	–	
$2.6	million),	for	services	provided	by	the	Lundin	Foundation,	a	not-for-profit	organization	supporting	community	
economic	development	programs	and	related	initiatives	in	the	regions	in	which	the	Company	operates.
30.	 MANAGEMENT	OF	FINANCIAL	RISK
The	Company’s	financial	instruments	are	exposed	to	certain	financial	risks,	including	credit	risk,	liquidity	risk,	foreign	
exchange	risk,	commodity	price	risk	and	interest	rate	risk.
(a)	 Credit	risk
The	exposure	to	credit	risk	arises	through	the	failure	of	a	customer	or	another	third	party	to	meet	its	contractual	
obligations	to	the	Company.	The	Company	believes	that	its	maximum	exposure	to	credit	risk	as	at	December	31,	
2025	is	the	carrying	value	of	its	trade	and	other	receivables.
Concentrate	 and	 cathodes	 produced	 at	 the	 Company’s	 mines	 is	 sold	 to	 a	 number	 of	 strategic	 customers	 with	
whom	 the	 Company	 has	 established	 long-term	 relationships.	 Limited	 amounts	 of	 concentrate	 are	 occasionally	
sold	 to	 commodity	 traders,	 under	 prevailing	 market	 conditions.	 Payment	 terms	 vary	 and	 provisional	 payments	
are	normally	received	when	concentrate	or	copper	cathodes	have	been	placed	on	board	a	vessel	for	shipment	or	
delivered	to	a	location	specified	by	the	customer,	in	accordance	with	industry	practice,	with	final	settlement	up	
to	 six	 months	 following	 the	 date	 of	 shipment.	 Sales	 to	 commodity	 traders	 are	 made	 against	 secure	 payment	
terms	 such	 as	 a	 letter	 of	 credit,	 pre-payment	 or	 payment	 against	 shipping	 documents.	 Credit	 worthiness	 of	
customers	 is	 reviewed	 by	 the	 Company	 on	 an	 annual	 basis	 or	 more	 frequently,	 if	 warranted,	 and	 those	 not	
meeting	 certain	 credit	 criteria	 may	 be	 asked	 to	 make	 100%	 provisional	 payment	 up-front	 or	 provide	 an	
acceptable	payment	instrument	such	as	a	letter	of	credit.	The	failure	of	any	of	the	Company’s	strategic	customers	
could	have	a	material	adverse	effect	on	the	Company’s	financial	position.	For	the	year	ended	December	31,	2025,	
the	 Company	 has	 four	 customers	 that	 individually	 account	 for	 10%	 or	 more	 of	 the	 Company’s	 total	 sales.	 The	
Company's	 largest	 customers	 represent	 approximately	 16%,	 16%,	 14%,	 and	 10%	 of	 total	 sales	 (2024	 -	 four	
customers	representing	20%,	14%,	13%,	and	11%	of	total	sales).
With	respect	to	credit	risk	arising	from	the	other	financial	assets	of	the	Company,	which	comprise	cash	and	cash	
equivalents,	restricted	funds,	marketable	securities	and	equity	investments,	and	foreign	currency	contracts,	the	
Company’s	 exposure	 to	 credit	 risk	 arises	 from	 default	 of	 the	 counterparty,	 with	 a	 maximum	 exposure	 equal	 to	
the	carrying	amount	of	these	instruments.	The	Company	limits	material	counterparty	credit	risk	on	these	assets	
by	 dealing	 with	 financial	 institutions	 with	 long-term	 credit	 ratings	 with	 Standard	 &	 Poor’s	 of	 at	 least	 A,	 or	 the	
equivalent	thereof	with	Moody’s,	or	those	which	have	been	otherwise	approved.	
LUNDIN	MINING	CORPORATION
Notes	to	consolidated	financial	statements
For	the	years	ended	December	31,	2025	and	2024
(Tabular	amounts	in	millions	of	US	dollars,	except	for	shares	and	per	share	amounts)
250

===== SIDA 251 =====

(b)	 Liquidity	risk
The	Company	has	in	place	a	planning	and	forecasting	process	to	help	determine	the	funds	required	to	support	
the	Company’s	normal	operating	requirements	on	an	ongoing	basis.	The	Company	ensures	that	there	is	sufficient	
available	capital	to	meet	its	short-term	business	requirements,	taking	into	account	its	anticipated	cash	flows	from	
operations	and	its	holdings	of	cash	and	cash	equivalents.	The	Company	has	a	revolving	credit	facility	in	place	to	
assist	with	meeting	its	cash	flow	needs	as	required	(Note	12).
The	maturities	of	the	Company’s	non-current	liabilities	are	disclosed	in	Note	 12	and	Note	27.	All	current	liabilities	
are	due	to	be	settled	within	one	year.
(c)	 Foreign	exchange	risk
The	 Company	 operates	 internationally	 and	 is	 exposed	 to	 foreign	 exchange	 risk	 arising	 from	 various	 currencies,	
primarily	with	respect	to	CLP,	BRL,	and	ARS.
The	Company’s	risk	management	strategy	is	to	manage	cash	flow	risk	related	to	foreign	denominated	cash	flows.	
The	Company	is	exposed	to	currency	risk	related	to	changes	in	rates	of	exchange	between	foreign	denominated	
balances	 and	 the	 functional	 currencies	 of	 the	 Company’s	 principal	 operating	 subsidiaries.	 The	 Company’s	
revenues	 are	 denominated	 in	 US	 dollars,	 while	 most	 of	 the	 Company’s	 operating	 and	 capital	 expenditures	 are	
denominated	in	the	local	currencies.	The	Company	may,	at	its	discretion,	use	forward	or	derivative	contracts	to	
manage	 its	 exposure	 to	 foreign	 currencies,	 the	 use	 of	 which	 is	 subject	 to	 appropriate	 approval	 procedures.	 A	
significant	 change	 in	 the	 currency	 exchange	 rates	 between	 the	 US	 dollar	 and	 foreign	 currencies	 could	 have	 a	
material	effect	on	the	Company’s	net	earnings	and	other	comprehensive	income.
The	following	table	illustrates	the	estimated	impact	a	10%	US	dollar	change	against	the	CLP	and	BRL	would	have	
on	 pre-tax	 earnings	 as	 a	 result	 of	 translating	 the	 Company's	 foreign	 denominated	 financial	 instruments	 as	 at	
December	31,	2025	before	the	impact	of	derivative	contracts:
Currency Change Effect	on	Pre-Tax	Earnings Change Effect	on	Pre-Tax	Earnings
CLP +10% $(23.9) -10% $23.9
BRL +10% $(2.4) -10% $2.4
(d)	 Commodity	price	risk
The	 Company	 is	 subject	 to	 price	 risk	 associated	 with	 fluctuations	 in	 the	 market	 prices	 for	 metals.	 A	 significant	
change	in	metal	prices	could	have	a	material	effect	on	the	Company’s	revenues.
The	 Company	 may,	 at	 its	 discretion,	 use	 forward	 or	 derivative	 contracts	 to	 manage	 its	 exposure	 to	 changes	 in	
commodity	prices,	the	use	of	which	is	subject	to	appropriate	approval	procedures.	The	Company	is	also	subject	to	
price	risk	on	the	final	settlement	of	its	provisionally	priced	trade	receivables.
The	following	table	illustrates	the	sensitivity	of	the	Company’s	risk	on	final	settlement	of	its	provisionally	priced	
trade	receivables:
Metal Payable	metal Provisional	price	on	
December	31,	2025 Change Effect	on	Revenue	
($millions)
Copper 	 80,435	 t $5.64/lb +/-10% +/-100.0
Gold 	 32	 koz $4,343/oz +/-10% +/-13.8
Molybdenum 	 619	 t $23.30/lb +/-10% +/-3.2
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)
251

===== SIDA 252 =====

(e)	 Interest	rate	risk
The	 Company’s	 exposure	 to	 interest	 rate	 risk	 arises	 from	 the	 interest	 rate	 impact	 on	 its	 cash	 and	 cash	
equivalents,	restricted	funds,	and	debt	facilities.	Certain	of	the	Company's	debt	facilities	include	a	variable	rate	
component	such	as	references	to	 Term	SOFR	on 	the	revolving	credit	facility,	as	well	as	applicable	credit	spreads	
depending	on	the	Company's	net	leverage	ratio.
As	at	December	31,	2025,	holding	all	other	variables	constant,	a	1%	change	in	the	interest	rate	would	result	in	an	
approximate	$2.4	million	change	in	interest	expense	on	an	annualized	basis	(2024	-	$12.5		million).
31.	 MANAGEMENT	OF	CAPITAL	RISK
The	 Company’s	 objectives	 when	 managing	 its	 capital	 include	 ensuring	 a	 sufficient	 combination	 of	 positive	 operating	
cash	flows	and	debt	and	equity	financing	in	order	to	meet	its	ongoing	capital	development	and	exploration	programs	
in	 a	 way	 that	 maximizes	 the	 shareholder	 return	 given	 the	 assumed	 risks	 of	 its	 operations	 while,	 at	 the	 same	 time,	
safeguarding	 the	 Company’s	 ability	 to	 continue	 as	 a	 going	 concern.	 The	 Company	 considers	 the	 following	 items	 as	
capital:	excess	cash	balances,	debt,	lease	liabilities,	and	share	capital.
Through	 the	 ongoing	 management	 of	 its	 capital,	 the	 Company	 will	 modify	 the	 structure	 of	 its	 capital	 based	 on	
changing	economic	conditions	in	the	jurisdictions	in	which	it	operates.	In	doing	so,	the	Company	may	issue	new	shares	
or	 debt,	 buy	 back	 issued	 shares,	 or	 pay	 off	 any	 outstanding	 debt.	 The	 Company	 continuously	 monitors	 its	 capital	
structure	to	determine	the	appropriateness	of	paying	dividends.
Planning,	including	life-of-mine	plans,	annual	budgeting	and	controls	over	major	investment	decisions	are	the	primary	
tools	 used	 to	 manage	 the	 Company’s	 capital.	 Updates	 are	 made	 as	 necessary	 to	 both	 capital	 expenditure	 and	
operational	 budgets	 in	 order	 to	 adapt	 to	 changes	 in	 risk	 factors	 of	 proposed	 expenditure	 programs	 and	 market	
conditions	within	the	mining	industry.
32.	 SUPPLEMENTARY	CASH	FLOW	INFORMATION
2025 2024
Changes	in	non-cash	working	capital	items	consist	of:
Trade	and	income	taxes	receivable,	and	other	current	assets $	 (348.9)	 $	 160.0	
Inventories 	 (39.1)	 	 (72.0)	 
Trade	and	income	taxes	payable,	and	other	current	liabilities 	 (26.0)	 	 133.7	
$	 (414.0)	 $	 221.7	
Operating	activities	included	the	following	cash	payments:
Income	taxes	paid $	 396.4	 $	 184.4	
33.				SUBSEQUENT	EVENT
On	January	9,	2026,	the	Company	completed	the	sale	of	Eagle	mine	to	Talon	(Note	3).
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)
252