FULLTEXT DEL 2 AV 2
Kvartalsrapport Q1 2025
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LUNDIN MINING CORPORATION
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited - in thousands of US dollars)
Three months ended March 31,
2025 2024
Net earnings $ 167,596 $ 58,555
Other comprehensive income (loss), net of taxes
Item that will not be reclassified to net earnings:
Remeasurements for post-employment benefit plans 218 (241)
Item that may be reclassified subsequently to net earnings:
Effects of foreign exchange 51,883 (39,453)
Other comprehensive income (loss) 52,101 (39,694)
Total comprehensive income $ 219,697 $ 18,861
Comprehensive income (loss) attributable to:
Lundin Mining Corporation shareholders $ 176,358 $ (25,767)
Non-controlling interests 43,339 44,628
Total comprehensive income $ 219,697 $ 18,861
Total comprehensive income (loss) attributable to Lundin Mining Corporation
shareholders arising from:
Continuing operations $ 142,156 $ 44,388
Discontinued operations 34,202 (70,155)
Comprehensive income (loss) attributable to Lundin Mining Corporation shareholders $ 176,358 $ (25,767)
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
===== SIDA 63 =====
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LUNDIN MINING CORPORATION
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Unaudited - in thousands of US dollars, except for shares)
Number of
shares
Share
capital
Contributed
surplus
Accumulated
other
comprehensive
loss
Retained
earnings
Non-
controlling
interests Total
Balance, December 31, 2024 774,102,971 $ 4,585,607 $ 51,308 $ (375,837) $ 161,063 $ 1,093,623 $ 5,515,764
Acquisition of Filo Corp. (Note 4) 94,074,959 799,802 — — — — 799,802
Exercise of share-based awards 399,347 2,836 (2,091) — — — 745
Share-based compensation — — 1,321 — — — 1,321
Dividends declared (Note 16(d)) — — — — (54,579) — (54,579)
Shares purchased (Note 16(e)) (8,429,800) (41,099) — — (26,680) — (67,779)
Net earnings — — — — 124,337 43,259 167,596
Other comprehensive income — — — 52,021 — 80 52,101
Total comprehensive income — — — 52,021 124,337 43,339 219,697
Balance, March 31, 2025 860,147,477 $ 5,347,146 $ 50,538 $ (323,816) $ 204,141 $ 1,136,962 $ 6,414,971
Balance, December 31, 2023 773,667,789 $ 4,574,830 $ 55,201 $ (296,617) $ 627,903 $ 1,456,803 $ 6,418,120
Exercise of share-based awards 1,516,779 12,301 (4,748) — — — 7,553
Share-based compensation — — 1,665 — — — 1,665
Dividends declared — — — — (51,322) — (51,322)
Net earnings — — — — 13,883 44,672 58,555
Other comprehensive loss — — — (39,650) — (44) (39,694)
Total comprehensive (loss) income — — — (39,650) 13,883 44,628 18,861
Balance, March 31, 2024 775,184,568 $ 4,587,131 $ 52,118 $ (336,267) $ 590,464 $ 1,501,431 $ 6,394,877
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
===== SIDA 64 =====
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LUNDIN MINING CORPORATION
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited - in thousands of US dollars)
Three months ended
March 31,
Cash provided by (used in) 2025 2024
Operating activities
Net earnings $ 181,365 $ 82,950
Items not involving cash and other adjustments
Depreciation, depletion and amortization 138,059 149,463
Share-based compensation 1,399 1,641
Unrealized foreign exchange loss (gain) 9,314 (14,842)
Finance costs, net (Note 22) 43,942 33,285
Recognition of deferred revenue (Note 13) (19,593) (17,351)
Deferred tax expense 2,680 10,861
Revaluation of foreign currency and diesel derivatives (Note 24) (24,260) 33,320
Gain on partial disposal of subsidiary (Note 4) (3,024) —
Inventory write-down 7,196 1,248
Other 10,792 (2,168)
Reclamation payments (Note 14) (2,098) (4,927)
Pension payments (826) (709)
Changes in long-term inventory (7,953) 21,225
Changes in non-cash working capital items (Note 28) (214,658) (61,820)
Cash provided by operating activities related to continuing operations 122,335 232,176
Cash provided by operating activities related to discontinued operations 54,651 35,355
176,986 267,531
Investing activities
Investment in mineral properties, plant and equipment (175,983) (235,152)
Acquisition of Filo Corp. (Note 4) (610,677) —
Proceeds from partial disposal of subsidiary (Note 4) 689,477 —
Interest received 3,850 1,817
Other (7,622) (872)
Cash used in investing activities related to continuing operations (100,955) (234,207)
Cash used in investing activities related to discontinued operations (48,383) (35,457)
(149,338) (269,664)
Financing activities
Proceeds from debt (Note 12) 1,154,533 267,802
Principal repayments of debt (Note 12) (1,056,013) (133,299)
Principal payments of lease liabilities (Note 12) (15,236) (14,771)
Interest paid (33,891) (26,513)
Shares purchased (Note 16) (71,495) —
Proceeds from common shares issued 745 7,553
Net (payment) proceeds from settlement of foreign currency and commodity derivatives (13,559) 809
Other 72 70
Cash (used in) provided by financing activities related to continuing operations (34,844) 101,651
Cash (used in) provided by financing activities related to discontinued operations (2,519) 607
(37,363) 102,258
Effect of foreign exchange on cash balances 2,956 (3,467)
(Decrease) increase in cash and cash equivalents during the period (6,759) 96,658
Cash and cash equivalents, beginning of period 432,279 268,793
Less: Cash and cash equivalents included in assets held for sale, end of period (Note 3) (83,892) —
Cash and cash equivalents, end of period $ 341,628 $ 365,451
Supplemental cash flow information (Note 28)
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
===== SIDA 65 =====
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three months ended March 31, 2025 and 2024
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
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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, gold and nickel. 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. The Company’s wholly -
owned operating assets include 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 2024, the Company entered into a definitive agreement to sell its 100% interest in Somincor -Sociedade
Mineira de Neves-Corvo, S.A. ("Neves-Corvo Mine") in Portugal and its 100% interests in each of Zinkgruvan Mining AB
and North Atlantic Natural Resources AB (together "Zinkgruvan Mine") in Sweden. The transaction closed on April 16,
2025. As at and for the three months ended March 31, 2025 the assets of the Neves -Corvo Mine and the Zinkgruvan
Mine have been classified as current assets held for sale, the liabilities of the Neves -Corvo Mine and the Zinkgruvan
Mine have been classified as current liabilities associated with assets held for sale, and the operating results of these
segments have been re- presented as a single line item of loss from discontinued operations, net of taxes on the
consolidated statement of earnings (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. The Company is
domiciled in Canada and 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 unaudited condensed interim 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, including IAS 34 Interim Financial Reporting. The condensed
interim consolidated financial statements should be read in conjunction with the annual consolidated financial
statements for the year ended December 31, 2024.
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 to $ 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 condensed interim consolidated financial statements were approved by the Board of Directors of the
Company for issue on May 7, 2025.
(ii) Material accounting policies
The accounting policies followed in these condensed interim consolidated financial statements are consistent
with those disclosed in Note 2 of the Company’s consolidated financial statements for the year ended December
31, 2024. Except as described in Note 2(iii), there were no changes or additions to material accounting policies
during the three months ended March 31, 2025.
===== SIDA 66 =====
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three months ended March 31, 2025 and 2024
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
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(iii) 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.
(iv) New accounting standards issued
The new accounting standards issued are consistent with those disclosed in Note 2 of the Company’s consolidated
financial statements for the year ended December 31, 2024.
(v) Critical accounting estimates and judgments in applying the entity’s accounting policies
Areas of judgment that have the most significant effect on the amounts recognized in the financial statements are
disclosed in Note 2 of the Company’s consolidated financial statements for the year ended December 31, 2024.
3. ASSETS AND LIABILITIES HELD FOR SALE AND DISCONTINUED OPERATIONS
On December 9, 2024, the Company entered into a definitive agreement to sell its 100% interest in the Neves -Corvo
Mine and its 100% interest in the Zinkgruvan Mine to Boliden AB ("Boliden"). The transaction closed on April 16, 2025
and the Company received cash proceeds 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 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 results of these operations have been restated for the current
and comparative periods to reclassify the earnings (loss) as earnings (loss) from discontinued operations. All assets and
liabilities relating to the Neves -Corvo and Zinkgruvan reporting segments have been classified as current assets and
current liabilities held for sale at March 31, 2025, and no depreciation is charged on these assets.
An impairment charge of $65.7 million ($65.7 million net of tax) was recorded in March 2025 relating to the Neves -
Corvo reporting segment to recognize mining rights and mineral properties at their estimated fair value, based on the
cash proceeds received (level 2 measurement).
===== SIDA 67 =====
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three months ended March 31, 2025 and 2024
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 8 -
The net loss from discontinued operations from the Neves -Corvo reporting segment, which include the results of
operating activities for the three months ended March 31, 2025 and 2024, are as follows:
Three months ended
March 31,
2025 2024
Revenues $ 108,436 $ 80,630
Production costs (75,910) (71,712)
Depreciation, depletion and amortization — (27,046)
General exploration and business development (1,658) (199)
Finance income 285 1,417
Finance costs (3,843) (2,600)
Other (expense) income (1,044) (4,186)
Asset impairment (65,688) —
Earnings (loss) before income taxes (39,422) (23,696)
Current tax (expense) recovery (94) (66)
Deferred tax recovery 248 4,903
Net (loss) $ (39,268) $ (18,859)
The net earnings (loss) from discontinued operations from the Zinkgruvan reporting segment, which include the results
of operating activities for the three months ended March 31, 2025 and 2024, are as follows:
Three months ended
March 31,
2025 2024
Revenues $ 71,645 $ 44,073
Production costs (34,249) (30,075)
Depreciation, depletion and amortization — (7,983)
General exploration and business development (3,136) (2,388)
Finance income 417 25
Finance costs (1,200) (1,251)
Other (expense) income (1,300) (9,215)
Earnings (loss) before income taxes 32,177 (6,814)
Current tax expense (4,218) (1,377)
Deferred tax (expense) recovery (2,460) 2,655
Net earnings (loss) $ 25,499 $ (5,536)
===== SIDA 68 =====
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three months ended March 31, 2025 and 2024
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
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The assets and liabilities that are included in the held for sale categories as at March 31, 2025 and December 31, 2024
are summarized below:
As at March 31, 2025
Neves-Corvo Mine Zinkgruvan Mine Total
Assets classified as held-for-sale
Cash and cash equivalents $ 12,356 $ 71,536 $ 83,892
Trade and other receivables 92,620 18,959 111,579
Income taxes receivable 884 — 884
Inventories 45,900 18,013 63,913
Restricted funds 50,043 — 50,043
Mineral properties, plant and equipment 802,466 329,371 1,131,837
Other non-current assets — 99 99
$ 1,004,269 $ 437,978 $ 1,442,247
Liabilities classified as held-for-sale
Trade and other payables $ 92,427 $ 32,457 $ 124,884
Income taxes payable — 10,295 10,295
Debt and lease liabilities 15,642 589 16,231
Deferred revenue 26,031 43,000 69,031
Reclamation and other closure provisions 94,189 48,883 143,072
Other long-term liabilities 8,057 139 8,196
Provision for pension obligations — 4,148 4,148
Deferred tax liabilities — 31,301 31,301
$ 236,346 $ 170,812 $ 407,158
As at December 31, 2024
Neves-Corvo Mine Zinkgruvan Mine Total
Assets classified as held-for-sale
Cash and cash equivalents $ 23,901 $ 50,900 $ 74,801
Trade and other receivables 90,160 22,867 113,027
Income taxes receivable 823 — 823
Inventories 39,689 16,496 56,185
Restricted funds 49,590 — 49,590
Mineral properties, plant and equipment 810,587 284,551 1,095,138
Other non-current assets — 106 106
$ 1,014,750 $ 374,920 $ 1,389,670
Liabilities classified as held-for-sale
Trade and other payables $ 99,805 $ 32,357 $ 132,162
Income taxes payable — 7,796 7,796
Debt and lease liabilities 15,702 564 16,266
Deferred revenue 25,078 39,227 64,305
Reclamation and other closure provisions 89,852 44,230 134,082
Other long-term liabilities 7,740 127 7,867
Provision for pension obligations — 4,441 4,441
Deferred tax liabilities — 26,190 26,190
$ 238,177 $ 154,932 $ 393,109
===== SIDA 69 =====
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three months ended March 31, 2025 and 2024
(Unaudited - Tabular amounts in thousands 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 $690 million for a 50% interest in the Josemaria project,
and the Company and BHP formed the Vicuña 50/50 joint arrangement by contributing their interests in Filo and the
Josemaria project into Vicuña. The Company realized a pre -tax gain of $3.0 million, recorded in other income
(expense), as result of the contribution of the Josemaria project to the Vicuña joint arrangement.
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 $ 610,677
Fair value of 94,074,959 common shares issued by the Company (a) 799,802
Transaction costs 10,066
The Company's previously held shares in Filo 49,915
Total purchase price $ 1,470,460
Assets acquired and liabilities assumed of Filo (50% share) are:
Cash and cash equivalents $ 17,277
Receivables and other assets 486
Mineral properties, plant and equipment (Note 10) 1,456,676
Total assets 1,474,439
Trade and other payables (3,979)
Total liabilities (3,979)
Total assets acquired and liabilities assumed, net $ 1,470,460
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.
5. CASH AND CASH EQUIVALENTS
Cash and cash equivalents are comprised of the following:
March 31, 2025 December 31, 2024
Cash $ 193,076 $ 197,189
Short-term deposits 148,552 160,289
$ 341,628 $ 357,478
===== SIDA 70 =====
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three months ended March 31, 2025 and 2024
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 11 -
6. TRADE AND OTHER RECEIVABLES
Trade and other receivables are comprised of the following:
March 31, 2025 December 31, 2024
Trade receivables $ 550,935 $ 347,820
Value added tax 49,163 52,959
Prepaid expenses 29,264 42,621
Other receivables 63,292 67,454
$ 692,654 $ 510,854
7. INVENTORIES
Inventories are comprised of the following:
March 31, 2025 December 31, 2024
Materials and supplies $ 296,365 $ 279,446
Ore stockpiles and dump leach 197,373 188,812
Finished goods - concentrate stockpiles 72,863 116,567
Finished goods - copper cathode 8,148 5,860
$ 574,749 $ 590,685
Long-term inventories are comprised of the following:
March 31, 2025 December 31, 2024
Ore stockpiles at Candelaria $ 506,891 $ 480,885
Ore stockpiles at Chapada 301,070 299,899
Dump leach at Caserones 89,039 91,101
$ 897,000 $ 871,885
8. MARKETABLE SECURITIES
As at December 31, 2024, the Company held 2,264,924 Filo shares with a fair value of the securities held for trading
purposes of $50.1 million. On January 15, 2025, the Company completed the acquisition of Filo as part of the
Arrangement (Note 4).
===== SIDA 71 =====
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three months ended March 31, 2025 and 2024
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 12 -
9. OTHER NON-CURRENT ASSETS
Other non-current assets are comprised of the following:
March 31, 2025 December 31, 2024
Marketable securities, non-current portion $ 9,755 $ 9,955
Advance payment (a) 5,000 —
Other 7,716 8,427
$ 22,471 $ 18,382
a) In March 2025, the Company entered into an exclusivity agreement with Talon Metals Corp (“Talon”) to negotiate
an earn-in agreement for the right to acquire up to a 70% ownership interest in the Boulderdash property that is
near the Company’s Eagle mine, and the Company advanced $5.0 million to Talon to commence exploration at
Boulderdash.
10. 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
construction(a)
Development
project(b)
Software
intangible
assets Total
As at December 31, 2023 $ 6,014,754 $ 5,307,997 $ 330,261 $ 1,130,067 $ 63,569 $ 12,846,648
Additions 82,660 14,326 86,554 97,133 78 280,751
Disposals — (4,591) — — — (4,591)
Transfers 12,434 30,725 (43,193) — 34 —
Effects of foreign
exchange (66,658) (31,784) (3,211) — (292) (101,945)
As at March 31, 2024 6,043,190 5,316,673 370,411 1,227,200 63,389 13,020,863
Additions 156,560 85,683 281,370 168,367 634 692,614
Impairment (331,231) (111,710) (1,066) — — (444,007)
Write-downs — — (4,110) (18,019) — (22,129)
Disposals — (86,922) — — — (86,922)
Transfers 56,159 254,911 (312,630) — 1,560 —
Effects of foreign
exchange (67,709) (41,020) (3,088) — (235) (112,052)
Reclassification to assets
held for sale (Note 3) (1,720,451) (1,009,154) (79,266) — (7,220) (2,816,091)
As at December 31, 2024 4,136,518 4,408,461 251,621 1,377,548 58,128 10,232,276
Filo acquisition (Note 4) 1,453,900 2,776 — — — 1,456,676
Contribution to Vicuña
(Note 4) — (19,255) — (668,302) — (687,557)
Additions 71,689 4,474 60,257 47,010 — 183,430
Disposals (1,914) (418) — — (37) (2,369)
Transfers 4,603 19,218 (23,861) — 40 —
Effects of foreign
exchange — 11 — — — 11
As at March 31, 2025 $ 5,664,796 $ 4,415,267 $ 288,017 $ 756,256 $ 58,131 $ 11,182,467
===== SIDA 72 =====
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three months ended March 31, 2025 and 2024
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 13 -
Accumulated depreciation,
depletion and amortization
Mineral
properties
Plant and
equipment
Assets under
construction(a)
Development
project(b)
Software
intangible
assets Total
As at December 31, 2023 $ 3,194,075 $ 1,910,381 $ — $ — $ 17,023 $ 5,121,479
Depreciation 68,736 101,733 — — 2,486 172,955
Disposals — (2,846) — — — (2,846)
Effects of foreign exchange (43,999) (15,676) — — (149) (59,824)
As at March 31, 2024 3,218,812 1,993,592 — — 19,360 5,231,764
Depreciation 299,442 317,909 — — 6,827 624,178
Disposals — (82,389) — — — (82,389)
Effects of foreign exchange (44,219) (20,628) — — (111) (64,958)
Reclassification to assets
held for sale (Note 3) (1,187,574) (530,038) — — (3,341) (1,720,953)
As at December 31, 2024 2,286,461 1,678,446 — — 22,735 3,987,642
Contribution to Vicuña
(Note 4) — (3,961) — — — (3,961)
Depreciation 70,084 85,453 — — 2,130 157,667
Disposals — (412) — — (37) (449)
Effects of foreign exchange (11) 11 — — — —
As at March 31, 2025 $ 2,356,534 $ 1,759,537 $ — $ — $ 24,828 $ 4,140,899
Net book value
Mineral
properties
Plant and
equipment
Assets under
construction(a)
Development
project(b)
Software
intangible
assets Total
As at December 31, 2024 $ 1,850,057 $ 2,730,015 $ 251,621 $ 1,377,548 $ 35,393 $ 6,244,634
As at March 31, 2025 $ 3,308,261 $ 2,655,730 $ 288,017 $ 756,256 $ 33,303 $ 7,041,567
(a) Represent assets under construction at the Company's operating mine sites which are currently non-depreciable.
(b) Assets relate to the Josemaria Project which are currently non-depreciable.
MPP&E classified as assets held for sale (Note 3) are comprised of the following:
Cost
Mineral
properties
Plant and
equipment
Assets under
construction
Development
project
Software
intangible
assets Total
As at December 31, 2024 1,720,451 1,009,154 79,266 — 7,220 2,816,091
Additions 20,392 1,458 17,032 — — 38,882
Impairment (22,825) (42,863) — — — (65,688)
Disposals — (1,469) — — — (1,469)
Transfers 6,663 8,639 (15,368) — 66 —
Effects of foreign exchange 103,614 52,804 5,820 — 504 162,742
As at March 31, 2025 $ 1,828,295 $ 1,027,723 $ 86,750 $ — $ 7,790 $ 2,950,558
Accumulated depreciation,
depletion and amortization
Mineral
properties
Plant and
equipment
Assets under
construction
Development
project
Software
intangible
assets Total
As at December 31, 2024 1,187,574 530,038 — — 3,341 1,720,953
Disposals — (1,464) — — — (1,464)
Effects of foreign exchange 71,689 27,400 — — 143 99,232
As at March 31, 2025 $ 1,259,263 $ 555,974 $ — $ — $ 3,484 $ 1,818,721
===== SIDA 73 =====
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three months ended March 31, 2025 and 2024
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 14 -
Net book value
Mineral
properties
Plant and
equipment
Assets under
construction
Development
project
Software
intangible
assets Total
As at December 31, 2024 $ 532,877 $ 479,116 $ 79,266 $ — $ 3,879 $ 1,095,138
As at March 31, 2025 $ 569,032 $ 471,749 $ 86,750 $ — $ 4,306 $ 1,131,837
During the three months ended March 31, 2025, the Company capitalized $1.3 million (March 31, 2024 - $7.5 million)
of finance costs related to Vicuña at a weighted average interest rate of 5.6% (March 31, 2024 - 6.0%).
During the three months ended March 31, 2025, the Company capitalized $56.2 million (March 31, 2024 - $78.7
million) of deferred stripping costs to mineral properties. The depreciation expense related to deferred stripping for
the quarter was $57.9 million (March 31, 2024 - $22.7 million). Included in the mineral properties balance at March 31,
2025 is $48.1 million related to deferred stripping at Caserones (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, rail cars,
vehicles, machinery and equipment. The following table summarizes the changes in right-of-use assets within plant and
equipment:
Net book value
As at December 31, 2023 $ 283,997
Additions 9,719
Depreciation (16,867)
Disposals (1,534)
Effects of foreign exchange (75)
As at March 31, 2024 275,240
Additions 61,125
Depreciation (59,582)
Disposals (1,138)
Effects of foreign exchange (183)
Reclassification to assets held for sale (16,141)
As at December 31, 2024 259,321
Additions 4,400
Depreciation (17,426)
Contribution to Vicuña (Note 4) (1,569)
Effects of foreign exchange 1
As at March 31, 2025 $ 244,727
===== SIDA 74 =====
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three months ended March 31, 2025 and 2024
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 15 -
11. TRADE AND OTHER PAYABLES
Trade and other payables are comprised of the following:
March 31, 2025 December 31, 2024
Trade payables $ 313,629 $ 297,687
Unbilled goods and services 172,107 175,152
Employee benefits payable 49,523 68,801
Dividends payable (Note 16 (d)) 54,579 —
Prepayment from customers — 45,027
Royalties payable 15,799 24,548
Sinkhole provision(a) 17,758 16,918
Automatic share purchase plan commitment(b) — 3,714
Pricing provisions on concentrate sales(c) 8,292 15,541
Deferred consideration, current portion(d) 10,000 10,000
Other 16,863 16,816
$ 658,550 $ 674,204
(a) Relates to expected remediation costs and potential fines directly related to the sinkhole near the Company's Ojos del
Salado operations.
(b) As at 31 December 2024, the Company recorded an accrual due to the timing of settlement of the repurchase of shares
that on the last trading day of the year which were settled during January 2025.
(c) Includes balances owing to customers and provisions arising from forward market price adjustments.
(d) Relates to the current portion of the remaining deferred cash consideration arising from the Caserones acquisition,
payable in installments over the next five years.
12. DEBT AND LEASE LIABILITIES
Debt and lease liabilities are comprised of the following:
March 31, 2025 December 31, 2024
Revolving credit facility (a) $ 415,031 $ 264,659
Term loan (b) 1,147,878 1,147,685
Candelaria and Chapada term loans (c) 194,452 245,932
Lease liabilities (d) 241,348 249,185
Commercial paper (e) 102,742 98,696
Debt and lease liabilities 2,101,451 2,006,157
Less: current portion 344,440 395,232
Long-term portion $ 1,757,011 $ 1,610,925
===== SIDA 75 =====
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three months ended March 31, 2025 and 2024
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 16 -
The changes in debt and lease liabilities are comprised of the following:
Leases Debt Total
As at December 31, 2023 $ 277,208 $ 1,208,600 $ 1,485,808
Additions 9,569 267,802 277,371
Payments (20,794) (133,397) (154,191)
Disposals (1,495) — (1,495)
Interest 5,889 — 5,889
Financing fee amortization — 645 645
Effects of foreign exchange (9,914) (2,519) (12,433)
As at March 31, 2024 260,463 1,341,131 1,601,594
Additions 60,312 1,232,749 1,293,061
Payments (72,667) (811,031) (883,698)
Disposals (533) — (533)
Interest 18,164 — 18,164
Financing fee amortization — 1,715 1,715
Deferred financing fee — (3,643) (3,643)
Reclassified to liabilities held for sale (Note 3) (16,266) — (16,266)
Effects of foreign exchange (288) (3,949) (4,237)
As at December 31, 2024 249,185 1,756,972 2,006,157
Contribution to Vicuña (Note 4) (1,229) — (1,229)
Additions 4,426 1,154,533 1,158,959
Payments (21,004) (1,056,013) (1,077,017)
Interest 5,768 — 5,768
Financing fee amortization — 644 644
Deferred financing fee — (79) (79)
Effects of foreign exchange 4,202 4,046 8,248
As at March 31, 2025 241,348 1,860,103 2,101,451
Less: current portion 47,246 297,194 344,440
Long-term portion $ 194,102 $ 1,562,909 $ 1,757,011
a) The Company has a revolving credit facility of $1,750.0 million maturing 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 1.45% to 2.50%, depending on the Company’s net
leverage ratio. In March 2025 the security previously held over certain assets in the USA was removed from the
revolving credit facility. The facility remains subject to customary covenants and the removal does not have a
material impact on the financial position or performance of the Company. During the three months ended
March 31, 2025, the Company drew down $820.0 million (March 31, 2024 - $65.0 million), and repaid $670.0
million (March 31, 2024 - $15.0 million). As at March 31, 2025, a principal balance of $420.0 million (December
31, 2024 - $270.0 million) was outstanding, with unamortized deferred financing fees of $5.0 million (December
31, 2024 - $5.3 million) netted against borrowings.
In April 2025, the Company drew down $105.0 million from the revolving credit facility principally to repay
€95.0 million of Neves-Corvo commercial papers (Note 12e). The Company subsequently repaid $170.0 million
of the revolving credit facility following the completion of the Boliden transaction (Note 3).
===== SIDA 76 =====
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three months ended March 31, 2025 and 2024
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 17 -
b) In July 2023, the Company obtained a term loan of a principal amount of $800.0 million with an additional
$400.0 million accordion, maturing July 2027. The term loan bears interest at an annual rate equal to Term SOFR
+ CSA + an applicable margin of 1.60% to 2.65%, depending on the Company’s net leverage ratio. Principal is
payable at maturity. In March 2025 the security previously held over certain assets in the USA was removed
from the term loan. The term loan remains subject to similar covenants to the Company’s existing $1,750.0
million revolving credit facility and the removal does not have a material impact on the financial position or
performance of the Company. As at March 31, 2025, a principal balance of $1,150.0 million (December 31, 2024
- $1,150.0 million) was outstanding, with unamortized deferred financing fees of $2.1 million (December 31,
2024 - $2.3 million) netted against borrowings.
In April 2025, the Company repaid in full the $1,150.0 million outstanding balance of the term loan following
the completion of the Boliden transaction (Note 3).
c) Compañia Contractual Minera Candelaria S.A. ("Candelaria Mine"), a subsidiary owned 80% by the Company
which owns the Candelaria mine, obtained a series of unsecured fixed term loans during 2024. No additional
proceeds were drawn during the three months ended March 31, 2025 (March 31, 2024 - $65.0 million).
Candelaria Mine repaid $50.0 million of the outstanding loans during the three months ended March 31, 2025
(March 31, 2024 - $nil). As at March 31, 2025, there was one term loan outstanding at Candelaria Mine totalling
$50.0 million (December 31, 2024 - $100.0 million). The outstanding term loan accrues interest at a rate of
5.07% per annum with interest payable upon maturity in May 2025.
Mineração Maracá Indústria e Comércio S.A. (“Chapada”), a subsidiary of the Company which owns the
Chapada mine, obtained a series of unsecured fixed term loans during the three months ended March 31, 2025
totalling $86.5 million (March 31, 2024 - $45.4 million). Chapada repaid $88.0 million of the outstanding term
loans during the three months ended March 31, 2025 (March 31, 2024 - $20.5 million). As at March 31, 2025,
there were 44 term loans outstanding at Chapada totalling $144.5 million (December 31, 2024 - 41 term loans
totalling $145.9 million). These outstanding term loans accrue interest at rates ranging from 5.52% to 6.05% per
annum with interest payable upon maturity. The maturity dates range from April to September 2025.
d) Lease liabilities relate to leases on power line infrastructure, buildings and storage facilities, rail cars, vehicles,
machinery and equipment which have remaining lease terms of one to thirteen years and interest rates of 1.0%
- 10.0% over the terms of the leases.
e) Neves-Corvo entered into three unsecured commercial paper programs during 2022 and 2023 with maturities
ranging from May 2025 to July 2028. The commercial papers bear interest on drawn funds at rates of EURIBOR
plus an applicable margin of 0.30% to 0.50% .
During the three months ended March 31, 2025, Neves -Corvo drew down $248.1 million (€235.0 million) from
the commercial paper programs (March 31, 2024 - $92.5 million (€85.0 million)) and repaid $248.1 million
(€235.0 million) (March 31, 2024 - $97.8 million (€90.0 million)).
As at March 31, 2025, a principal balance of $102.7 million (€95.0 million) (December 31, 2024 - $98.7 million
(€95.0 million)) was outstanding and pursuant to the terms of the transaction with Boliden, have not been
classified as held for sale.
In April 2025, the Company repaid the $102.7 million (€95.0 million) outstanding balance of the commercial
papers.
===== SIDA 77 =====
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three months ended March 31, 2025 and 2024
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 18 -
The schedule of undiscounted lease payment and debt obligations is as follows:
Leases Debt Total
Less than one year $ 66,362 $ 297,194 $ 363,556
One to five years 155,660 1,570,000 1,725,660
More than five years 128,546 — 128,546
Total undiscounted obligations as at March 31, 2025 $ 350,568 $ 1,867,194 $ 2,217,762
Related to continuing operations $ 331,914 $ 1,867,194 $ 2,199,108
Related to discontinued operations $ 18,654 $ — $ 18,654
13. DEFERRED REVENUE
The following table summarizes the changes in deferred revenue:
As at December 31, 2023 $ 623,230
Recognition of revenue (18,838)
Finance costs 8,596
Effects of foreign exchange (3,270)
As at March 31, 2024 609,718
Recognition of revenue (59,429)
Variable consideration adjustment (1,550)
Finance costs 25,735
Reclassified to liabilities held for sale (Note 3) (64,305)
Effects of foreign exchange (2,432)
As at December 31, 2024 507,737
Recognition of revenue (19,593)
Finance costs 6,607
As at March 31, 2025 494,751
Less: current portion 56,500
Long-term portion $ 438,251
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. In 2024, as a
result of changes to the Company’s Mineral Resources and Mineral Reserves estimates, an adjustment was made to
the deferred revenue liability which was recognized through revenue and finance costs.
===== SIDA 78 =====
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three months ended March 31, 2025 and 2024
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 19 -
14. 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 $ 497,145 $ 47,031 $ 544,176
Accretion 6,343 — 6,343
Changes in estimate (5,691) 1,129 (4,562)
Payments (4,151) (833) (4,984)
Effects of foreign exchange (5,110) (4,400) (9,510)
Balance, March 31, 2024 488,536 42,927 531,463
Accretion 19,185 — 19,185
Changes in estimate (25,671) 5,611 (20,060)
Changes in discount rate (34,056) — (34,056)
Payments (7,521) (5,213) (12,734)
Reclassification to liabilities held for sale (Note 3) (125,490) (8,592) (134,082)
Effects of foreign exchange (4,638) (892) (5,530)
Balance, December 31, 2024 310,345 33,841 344,186
Accretion 5,012 — 5,012
Changes in estimate 297 1,098 1,395
Payments (790) (1,308) (2,098)
Effects of foreign exchange — 1,533 1,533
Balance, March 31, 2025 314,864 35,164 350,028
Less: current portion 18,142 4,997 23,139
Long-term portion $ 296,722 $ 30,167 $ 326,889
The Company expects these liabilities to be settled between 2025 and 2110. The reclamation provisions on continuing
operations are discounted using current market pre-tax discount rates which range from 4.3% to 14.4% (December 31,
2024 - 4.3% to 14.4%)
Reclamation and other closure provisions related to discontinued operations are discounted between 2.3% and 2.8%
(December 31, 2024 - 2.3% and 2.8%) and are expected to be settled between 2025 and 2062. As at March 31, 2025,
the reclamation and closure provision balance related to discontinued operations is $143.1 million.
15. DEFERRED CONSIDERATION AND OTHER LONG-TERM LIABILITIES
Deferred consideration and other long-term liabilities are comprised of the following:
March 31, 2025 December 31, 2024
Deferred consideration, non-current portion $ 104,513 $ 102,833
Other 27,123 25,950
$ 131,636 $ 128,783
Deferred consideration represents the non- current portion of the remaining cash consideration for the acquisition of
51% of Caserones, completed July 13, 2023 (Note 17). The deferred consideration is payable in installments as follows:
$50.0 million to be paid in five installments of $10.0 million on the anniversary of the transaction closing date in each
of the years between 2024 and 2028, inclusive; and $100 million to be paid on the anniversary of the closing date in
2029. The Company paid the first $10.0 million installment in July 2024.
===== SIDA 79 =====
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three months ended March 31, 2025 and 2024
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 20 -
16. SHARE CAPITAL
a) Basic and diluted weighted average number of shares outstanding
Three months ended
March 31,
2025 2024
Basic weighted average number of shares outstanding 851,561,392 773,048,710
Effect of dilutive securities 2,718,127 1,954,020
Diluted weighted average number of shares outstanding 854,279,519 775,002,730
Antidilutive securities 424,056 2,492,016
The effect of dilutive securities relates to in-the-money outstanding stock options and share units ("SUs").
b) Stock options and share units granted
Three months ended
March 31,
2025 2024
Stock options 1,746,600 1,498,160
Restricted Share Units and Performance Share Units 819,760 1,041,450
c) Deferred share units
During the three months ended March 31, 2025, the Company granted 8,849 (March 31, 2024 - 8,204) Deferred
Share Units ("DSU"). As at March 31, 2025, there were 32,470 DSUs outstanding (March 31, 2024 - 8,204).
d) Dividends
During the three months ended March 31, 2025, the Company declared dividends in the amount of $54.6 million
(March 31, 2024 - $51.3 million) or C$0.09 per share ( March 31, 2024 - C$0.09 per share), which were paid on
April 9, 2025.
e) Normal course issuer bid
During the three months ended March 31, 2025, 8,429,800 shares were purchased by the Company's broker
under the automatic share purchase plan ("ASPP") or at management's discretion pursuant to its normal course
issuer bid ("NCIB") at an average price of C$ 12.18 per share for total consideration of $67.8 million. All common
shares purchased were cancelled.
No common shares were purchased under the NCIB during the three months ended March 31, 2024.
===== SIDA 80 =====
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three months ended March 31, 2025 and 2024
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 21 -
17. 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 Lumina Copper, bringing the Company's ownership in Caserones from 51% to 70% and
reducing the NCI to 30%.
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 March 31, 2025 20% 30%(a)
As at December 31, 2023 $ 594,842 $ 861,961 $ 1,456,803
Share of net comprehensive income (loss) 14,369 30,259 44,628
As at March 31, 2024 609,211 892,220 1,501,431
Share of net comprehensive income (loss) 57,065 40,626 97,691
Distributions (86,000) (66,000) (152,000)
Acquisition of additional interest in Caserones(a) — (353,499) (353,499)
As at December 31, 2024 580,276 513,347 1,093,623
Share of net comprehensive income (loss) 24,125 19,214 43,339
As at March 31, 2025 $ 604,401 $ 532,561 $ 1,136,962
(a) Prior to July 2, 2024, NCI in Caserones was 49%.
===== SIDA 81 =====
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three months ended March 31, 2025 and 2024
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 22 -
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 Mar. 31, 2025 As at Dec. 31, 2024 As at Mar. 31, 2025 As at Dec. 31, 2024
Total current assets $ 700,305 $ 627,020 $ 632,830 $ 600,270
Total non-current assets $ 3,079,656 $ 3,070,339 $ 1,541,193 $ 1,563,113
Total current liabilities $ 421,032 $ 452,576 $ 278,095 $ 298,374
Total non-current liabilities $ 641,562 $ 611,134 $ 226,902 $ 231,921
Summarized Statements of Earnings and Comprehensive Income
Candelaria complex Caserones mine
For the three months ended
March 31, 2025 2024 2025 2024
Total revenue $ 495,791 $ 374,322 $ 372,000 $ 322,793
Net earnings $ 119,958 $ 71,851 $ 64,045 $ 61,049
Net comprehensive income $ 120,038 $ 71,807 $ 64,045 $ 61,049
Summarized Statement of Cash Flows
Candelaria complex Caserones mine
For the three months ended
March 31, 2025 2024 2025 2024
Cash provided by operating
activities $ 95,977 $ 52,725 $ 50,855 $ 106,104
Cash used in investing activities (62,620) (98,772) (33,529) (40,137)
Cash (used in) provided by
financing activities (87,132) 29,801 (52,105) (38,930)
(Decrease) increase in cash and
cash equivalents during the period $ (53,775) $ (16,246) $ (34,779) $ 27,037
===== SIDA 82 =====
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three months ended March 31, 2025 and 2024
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 23 -
b) Joint operations
Set out below is summarized financial information for the Vicuña joint operation on a 50% basis:
Summarized Balance Sheets (50% share)
Vicuña Corp.
As at Mar. 31, 2025 As at Jan. 15, 2025
Total current assets $ 31,166 $ 25,709
Total non-current assets $ 2,186,742 $ 2,148,236
Total current liabilities $ 35,221 $ 20,712
Total non-current liabilities $ 1,919 $ 3,086
Summarized Statements of Earnings and Comprehensive Income (50% share)
Vicuña Corp.
For the three months ended March 31,(a) 2025
Net earnings $ 2,458
Net comprehensive income $ 2,458
Summarized Statement of Cash Flows (50% share)
Vicuña Corp.
For the three months ended March 31,(a) 2025
Cash provided by operating activities $ 6,404
Cash used in investing activities (40,686)
Cash used in financing activities (84)
Decrease in cash and cash equivalents during the period $ (34,366)
(a) Includes financial results between the date of formation, January 15, 2025 and March 31, 2025.
===== SIDA 83 =====
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three months ended March 31, 2025 and 2024
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 24 -
18. REVENUE
The Company's analysis of revenue from contracts with customers, segmented by product, is as follows:
Three months ended
March 31,
2025 2024
Revenue from contracts with customers:
Copper $ 743,448 $ 648,124
Gold 79,106 54,718
Nickel 27,430 35,126
Molybdenum 25,116 38,827
Silver 13,420 10,110
Other 4,965 9,176
893,485 796,081
Provisional pricing adjustments on current period concentrate sales 25,366 8,563
Provisional pricing adjustments on prior period concentrate sales 45,023 7,634
Revenue $ 963,874 $ 812,278
The Company's geographical analysis of revenue from contracts with customers, segmented based on the
destination of product, is as follows:
Three months ended
March 31,
2025 2024
Revenue from contracts with customers:
Japan $ 380,879 $ 381,669
China 213,864 191,073
Spain 88,750 49,477
Germany 52,485 48,051
Canada 43,288 51,550
South Korea 35,591 —
Chile 28,716 48,594
Other 49,912 25,667
893,485 796,081
Provisional pricing adjustments on current period concentrate sales 25,366 8,563
Provisional pricing adjustments on prior period concentrate sales 45,023 7,634
Revenue $ 963,874 $ 812,278
===== SIDA 84 =====
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three months ended March 31, 2025 and 2024
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 25 -
19. PRODUCTION COSTS
The Company's production costs are comprised of the following:
Three months ended
March 31,
2025 2024
Direct mine and mill cost $ 471,124 $ 423,949
Transportation 28,062 25,321
Royalties 17,695 16,077
Total production costs $ 516,881 $ 465,347
20. GENERAL AND ADMINISTRATIVE EXPENSES
The Company's general and administrative expenses recognized in the consolidated statement of earnings are
comprised of the following:
Three months ended
March 31,
2025 2024
Salaries and benefits $ 11,323 $ 7,656
Office related expenses 3,429 4,681
Consulting 1,195 1,326
Stock-based compensation 1,399 1,665
Insurance 648 649
Other 257 783
Total general and administrative expenses $ 18,251 $ 16,760
21. EXPLORATION AND BUSINESS DEVELOPMENT
The Company's exploration and business development costs are comprised of the following:
Three months ended
March 31,
2025 2024
General exploration $ 7,471 $ 10,031
Project development 2,181 822
Corporate development 2,179 11
Total exploration and business development $ 11,831 $ 10,864
===== SIDA 85 =====
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three months ended March 31, 2025 and 2024
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 26 -
22. FINANCE INCOME AND COSTS
The Company's finance income and costs are comprised of the following:
Three months ended
March 31,
2025 2024
Interest income $ 3,852 $ 3,729
Interest expense and bank fees (29,456) (21,532)
Accretion expense on reclamation provisions (5,012) (5,527)
Lease liability interest (5,768) (5,881)
Deferred revenue finance costs (5,878) (2,344)
Other (1,680) (1,730)
Total finance costs, net $ (43,942) $ (33,285)
Finance income $ 3,852 $ 3,729
Finance costs (47,794) (37,014)
Total finance costs, net $ (43,942) $ (33,285)
23. OTHER INCOME AND EXPENSE
The Company's other income and expense are comprised of the following:
Three months ended
March 31,
2025 2024
Foreign exchange (loss) gain (a) $ (19,541) $ 24,462
Foreign exchange and trading gains on debt and equity investments (b) 3,237 8,179
Revaluation of Caserones purchase option (c) — (703)
Revaluation of marketable securities (462) 2,430
Realized (losses) gains on derivative contracts (Note 24) (11,694) 582
Ojos del Salado sinkhole (expenses) recovery (d) (1,071) 1,031
Unrealized gains (losses) on derivative contracts (Note 24) 35,954 (33,902)
Revaluation of Chapada derivative liability — (307)
Gain on partial disposal and contribution to Vicuña (Note 4) 3,024 —
Other (expense) income (12,247) 1,300
Total other (expense) income, net $ (2,800) $ 3,072
a) Foreign exchange (loss) gain during the three months ended March 31, 2025 and 2024, relate to the foreign
exchange revaluation of trade payables and lease liabilities held in foreign currencies.
b) 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.
c) 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.
===== SIDA 86 =====
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three months ended March 31, 2025 and 2024
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 27 -
d) Ojos del Salado sinkhole (expenses) recovery during the three months ended March 31, 2025 and 2024 include
adjustments of expenses originally accrued for as a result of updated information related to the sinkhole near the
Company's Ojos del Salado operations.
24. 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, CLP , and SEK 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 maintained to limit exposure to changes in the price of diesel fuel purchases at Candelaria, and
limit its 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 statement of (loss)
earnings.
During the three months ended March 31, 2024, the Company entered into zero cost collar contracts in USD/BRL and
USD/CLP currency pairs totaling $24 million (equivalent to BRL 121 million) and $950 million (equivalent to CLP 926
billion), respectively. The collar ranges on the respective contracts range from BRL 5.10 to BRL 6.07 and CLP 900 to CLP
1,085. Remaining contracts are set to expire through 2025 and 2026.
As at March 31, 2025, all remaining SEK forwards were unwound and settled for a realized gain of $1.3 million during
the three months ended March 31, 2025.
The following tables outline the foreign currency and commodity derivative notional contract positions and their expiry
dates:
Expired in Expiring throughout:
Foreign currency forward contracts Q1 2025
remainder of
2025 2026
USD/CAD forwards
Average contract price 1.40 1.37 —
Position (USD millions) 472 27 —
USD/SEK forwards1
Average contract price 10.83 — —
Position (SEK millions) 758 — —
2 USD/SEK forwards expiring through 2025 were unwound as at March 31, 2025. Realized gains on early settlement reflect the position of
continuing operations.
Expired in Expiring throughout:
Foreign currency option contracts Q1 2025
remainder of
2025 2026
USD/BRL collars
Average contract price 5.06/6.04 5.06/6.04 5.07/6.04
Position (USD millions) 46 139 114
USD/CLP collars
Average contract price 872/1,032 872/1,031 904/1,060
Position (USD millions) 128 383 342
===== SIDA 87 =====
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three months ended March 31, 2025 and 2024
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 28 -
Expired in Expiring throughout:
Commodity hedge contracts Q1 2025
remainder of
2025 2026
Gold collars
Average contract price ($/oz) 2,500/3,125 2,500/3,125 2,500/3,455
Position (oz) 15 46 43
Diesel collars
Average contract price ($/L) 0.50/0.65 0.50/0.65 —
Position (millions litres) 14 41 —
The Company’s net unrealized and realized (loss)/gain on foreign currency and commodity derivative contracts are as
follows:
Three months ended
March 31,
2025 2024
Unrealized gain/(loss) on derivative financial instruments:
Foreign currency contracts $ 49,433 $ (35,609)
Commodity hedge contracts (13,479) 1,707
35,954 (33,902)
Realized (loss)/gain on derivative financial instruments:
Foreign currency contracts (11,708) 231
Commodity hedge contracts 14 351
(11,694) 582
Total unrealized and realized gain (loss) on derivative contracts: $ 24,260 $ (33,320)
A summary of the fair values of unsettled derivative contracts recorded on the consolidated balance sheet is as follows:
March 31, 2025 December 31, 2024
Foreign currency contracts:
Current asset position $ 2,213 $ —
Non-current asset position 1,347 —
Current liability position 9,822 39,416
Non-current liability position 8,208 24,487
Commodity contracts:
Current asset position 231 964
Non-current asset position — 665
Current liability position 6,070 —
Non-current liability position 6,012 —
===== SIDA 88 =====
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three months ended March 31, 2025 and 2024
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 29 -
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 March 31, 2025 and December 31, 2024:
March 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 $ 8,048 $ 8,048 $ 8,665 $ 8,665
Trade receivables (provisional) 2 530,681 530,681 337,081 337,081
Marketable securities 1 9,755 9,755 60,060 60,060
Foreign currency contracts 2 3,560 3,560 — —
Commodity contracts 2 231 231 1,629 1,629
$ 552,275 $ 552,275 $ 407,435 $ 407,435
Financial liabilities
Amortized cost
Debt 3 $ 1,860,103 $ 1,860,103 $ 1,756,972 $ 1,756,972
Caserones deferred consideration 2 114,513 114,513 112,833 112,833
Fair value through profit or loss
Pricing provisions on concentrate sales 2 $ 4,503 $ 4,503 $ 7,149 $ 7,149
Foreign currency contracts 2 18,030 18,030 63,903 63,903
Commodity contracts 2 12,082 12,082 — —
$ 34,615 $ 34,615 $ 71,052 $ 71,052
Fair values of financial instruments are determined by valuation methods depending on hierarchy levels as defined
below:
Level 1 – Quoted market price in active markets for identical assets or liabilities.
Level 2 – Inputs other than quoted market prices included within Level 1 that are observable for the assets or
liabilities, either directly (i.e. observed prices) or indirectly (i.e. derived from prices).
Level 3 – Inputs for the assets or liabilities are not based on observable market data.
The Company calculates fair values based on the following methods of valuation and assumptions:
Marketable securities/debt and equity investments/restricted funds – The fair value of investments in shares and
bonds is determined based on the quoted market price.
Trade receivables/pricing provisions on concentrate sales – The fair value of trade receivables that contain
provisional pricing sales arrangements are valued using quoted forward market prices. The Company recognized
positive pricing adjustments of $70.4 million in revenue during the three months ended March 31, 2025 (March
31, 2024 - $16.2 million positive pricing adjustments).
===== SIDA 89 =====
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three months ended March 31, 2025 and 2024
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 30 -
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.
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.
25. COMMITMENTS AND CONTINGENCIES
a) The Company has capital commitments of $223.0 million on various initiatives of which $190.2 million and $32.8
million relate to continuing and discontinued operations, respectively. Capital commitments of $132.9 million are
expected to be paid during 2025 of which $100.1 million is related to continuing operations.
b) The Company may be involved in legal proceedings arising in the ordinary course of business. The potential
amount of the liabilities with respect to such legal proceedings is not expected to materially affect the Company's
financial position.
c) There were no significant changes to commitments and contingencies from those reported at December 31,
2024.
26. SEGMENTED INFORMATION
The Company is engaged in mining, exploration and development of mineral properties at four operating sites located
in Chile, Brazil, and USA, 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 five reportable segments which include four operating sites, and the Vicuña Project. The Vicuña segment
includes the legacy Josemaria segment for periods up until January 15, 2025 and our 50% share of the Josemaria
project and Filo del Sol project after that date (Note 4). Discontinued operations includes results from the Neves -Corvo
and Zinkgruvan segments (Note 3).
===== SIDA 90 =====
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three months ended March 31, 2025 and 2024
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 31 -
For the three months ended March 31, 2025
Candelaria Caserones Chapada Eagle Vicuña(b) Other Total
Continuing
Operations
Discontinued
Operations Total
Chile Chile Brazil USA
Argentina &
Chile
Revenue $ 419,112 $ 385,927 $ 114,578 $ 44,257 $ — $ — $ 963,874 $ 180,081 $ 1,143,955
Cost of goods sold
Direct mine and mill costs (161,180) (222,928) (56,036) (30,763) — (217) (471,124) (101,757) (572,881)
Transportation (7,431) (11,123) (5,406) (4,102) — — (28,062) (7,383) (35,445)
Royalties (3,489) (9,892) (2,059) (2,255) — — (17,695) (1,019) (18,714)
Depreciation, depletion and amortization (69,194) (45,867) (18,330) (4,529) — (139) (138,059) — (138,059)
Gross profit (loss) 177,818 96,117 32,747 2,608 — (356) 308,934 69,922 378,856
General and administrative expenses — — — — — (18,251) (18,251) — (18,251)
Exploration and business development (2,460) (3,055) (1,168) (1,077) (1,265) (2,806) (11,831) (4,794) (16,625)
Finance costs (5,991) (5,239) (6,121) (1,194) (15) (25,382) (43,942) (4,341) (48,283)
Other (expense) income (13,545) (9,519) (12,605) (346) 2,289 30,926 (2,800) (2,344) (5,144)
Asset impairment — — — — — — — (65,688) (65,688)
Income tax (expense) recovery (65,957) (5,142) 22,654 161 (9,590) 7,129 (50,745) (6,524) (57,269)
Net earnings (loss) $ 89,865 $ 73,162 $ 35,507 $ 152 $ (8,581) $ (8,740) $ 181,365 $ (13,769) $ 167,596
Capital expenditures $ 67,945 $ 38,196 $ 22,182 $ 4,450 $ 43,183 $ 27 $ 175,983 $ 49,057 $ 225,040
Total non-current assets(a) $ 3,076,784 $ 1,357,748 $ 1,295,478 $ 108,337 $ 2,228,034 $ 6,470 $ 8,072,851 $ — $ 8,072,851
(a) Non-current assets include long-term inventory, mineral properties, plant and equipment, and goodwill.
(b) The Vicuña segment includes the legacy Josemaria segment for periods up until January 15, 2025 and the Company's 50% share of Josemaria and Filo del Sol projects after that date
(Note 4)
===== SIDA 91 =====
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three months ended March 31, 2025 and 2024
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 32 -
For the three months ended March 31, 2024
Candelaria Caserones Chapada Eagle Vicuña(b) Other Total
Continuing
Operations
Discontinued
Operations
Total
Chile Chile Brazil USA
Argentina &
Chile
Revenue $ 330,409 $ 326,211 $ 98,435 $ 57,223 $ — $ — $ 812,278 $ 124,703 $ 936,981
Cost of goods sold
Direct mine and mill costs (152,230) (179,552) (57,562) (33,287) (1,318) (423,949) (93,568) (517,517)
Transportation (6,052) (9,289) (5,406) (4,571) (3) (25,321) (7,484) (32,805)
Royalties (2,968) (8,814) (1,617) (2,678) (16,077) (735) (16,812)
Depreciation, depletion and amortization (73,426) (51,729) (15,080) (9,151) — (77) (149,463) (35,029) (184,492)
Gross profit (loss) 95,733 76,827 18,770 7,536 — (1,398) 197,468 (12,113) 185,355
General and administrative expenses — — — — — (16,760) (16,760) — (16,760)
Exploration and business development (1,880) (3,600) (683) (101) (3,785) (815) (10,864) (2,587) (13,451)
Finance costs (7,466) (4,376) (5,554) (899) 7,145 (22,135) (33,285) (2,409) (35,694)
Other (expense) income 6,847 18,663 2,362 (306) 8,789 (33,283) 3,072 (13,401) (10,329)
Income tax (expense) recovery (39,393) (22,236) 2,260 1,278 — 1,410 (56,681) 6,115 (50,566)
Net earnings (loss) $ 53,841 $ 65,278 $ 17,155 $ 7,508 $ 12,149 $ (72,981) $ 82,950 $ (24,395) $ 58,555
Capital expenditures $ 99,532 $ 42,754 $ 29,199 $ 4,078 $ 58,646 $ 943 $ 235,152 $ 36,754 $ 271,906
Total non-current assets $ 3,137,025 $ 1,404,367 $ 1,386,468 $ 195,220 $ 1,259,110 $ 7,690 $ 7,389,880 $ 1,412,962 $ 8,802,842
(a) Non-current assets include long-term inventory, mineral properties, plant and equipment, and goodwill.
(b) The Vicuña segment includes the legacy Josemaria segment for periods up until January 15, 2025 and our 50% share of Josemaria and Filo del Sol projects after that date (Note 4)
===== SIDA 92 =====
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three months ended March 31, 2025 and 2024
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 33 -
27. 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:
Three months ended
March 31,
2025 2024
Wages and salaries $ 2,648 $ 1,869
Pension benefits 22 28
Share-based compensation 547 475
$ 3,217 $ 2,372
b) Other related parties - For the three months ended March 31, 2025, the Company incurred $2.0 million (March
31, 2024 – $4.6 million) for services provided by companies owned by members of key management personnel
primarily relating to office rental and related services. For the three months ended March 31, 2025, the Company
incurred $0.7 million (March 31, 2024 – $0.7 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.
28. SUPPLEMENTARY CASH FLOW INFORMATION
Three months ended
March 31,
2025 2024
Changes in non-cash working capital items consist of:
Trade and income taxes receivable, inventories, and other current assets $ (163,667) $ 5,849
Trade and income taxes payable, and other current liabilities (50,991) (67,669)
$ (214,658) $ (61,820)
Operating activities included the following cash payments:
Income taxes paid $ 42,789 $ 33,053
===== SIDA 93 =====
Registered Office
1055 Dunsmuir Street, Suite 2800, Bentall IV, Vancouver, BC V7X 1L2
Tel: +1.604.806.3081
lundinmining.com