FULLTEXT DEL 2 AV 2
Kvartalsrapport Q2 2024
1. NATURE OF OPERATIONS
Lundin Mining Corporation ("Lundin Mining" or the "Company") is a diversified Canadian base metals mining company
primarily producing copper, zinc, nickel and gold. The Company owns 80% of the Candelaria and Ojos del Salado
mining complex ("Candelaria") and 51% of the Caserones copper-molybdenum mine (“Caserones”), each of which are
located in Chile. The Company’s wholly-owned operating assets include the Chapada mine located in Brazil, the Eagle
mine located in the United States of America (“USA”), the Neves-Corvo mine located in Portugal, and the Zinkgruvan
mine located in Sweden. In addition, the Company owns the large scale copper-gold Josemaria project ("Josemaria
Project"), located in Argentina.
On July 2, 2024, the Company completed the exercise of its option to acquire an additional 19% interest in the issued
and outstanding equity of SCM Minera Lumina Copper Chile ("Lumina Copper"), bringing the Company's ownership in
Caserones to 70%.
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, 2023.
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.
Balance sheet items are classified as current if receipt or payment is due within twelve months. Otherwise, they
are presented as non-current.
These condensed interim consolidated financial statements were approved by the Board of Directors of the
Company for issue on July 30, 2024.
(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, 2023. Except as described in Note 2(iii), there were no changes in material accounting policies during the
three and six months ended June 30, 2024.
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2024 and 2023
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
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(iii) New accounting standards issued
Amendments to IAS 1 - Classification of Liabilities as Current or Non-Current
In January 2020, the IASB issued Classification of Liabilities as Current or Non-Current (Amendments to IAS 1)
providing a more general approach to the classification of liabilities under IAS 1 based on the contractual
arrangements in place at the reporting date. Under existing requirements, a liability is current if an unconditional
right to defer settlement of the liability for at least twelve months after the reporting period does not exist. With
the introduction of the two amendments to IAS 1 in 2024, for a liability to be classified as non-current, a company
must have the right to defer settlement of the liability for at least twelve months after the reporting period. The
right must have substance and exist at the end of the reporting period, and the classification of the liability must
be unaffected by the likelihood that the company will exercise that right. The amendments apply retrospectively
for annual reporting periods beginning on or after 1 January 2024, with early application permitted and have
been applied with no material impact on the Company in the current reporting period.
Amendments to IAS 12 - International Tax Reform - Pillar Two Model Rules
In May 2023, the IASB issued amendments to IAS 12 – Income Taxes. The amendments provide an exception to
the requirements regarding the recognition of deferred tax assets and liabilities related to the Pillar Two global
minimum tax rules and were effective immediately. The Company has applied the exception to recognizing and
disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes whilst it
continues to evaluate the impact of these income taxes on its consolidated financial statements.
Additionally, the amendments to IAS 12 require disclosure of the Company's current tax expense or income
related to Pillar Two income taxes and disclosure of known or reasonably estimable information regarding the
Company's exposure to Pillar Two income taxes. Among the jurisdictions where the Company operates, Pillar Two
legislation is enacted in Sweden, the Netherlands and Canada, and is expected to be substantively enacted in
Portugal in 2024. The Company is currently assessing the potential impact of the Pillar Two legislation for when it
comes into effect, but the quantitative impact of the enacted or substantively enacted legislation has not yet
been determined.
(iv) 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,
2023.
3. CASH AND CASH EQUIVALENTS
Cash and cash equivalents are comprised of the following:
June 30, 2024 December 31, 2023
Cash $ 259,166 $ 197,537
Short-term deposits 193,643 71,256
$ 452,809 $ 268,793
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2024 and 2023
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
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4. TRADE AND OTHER RECEIVABLES
Trade and other receivables are comprised of the following:
June 30, 2024 December 31, 2023
Trade receivables $ 512,377 $ 643,722
Value added tax 57,210 80,088
Prepaid expenses 38,696 48,901
Other receivables 30,711 56,160
$ 638,994 $ 828,871
5. INVENTORIES
Inventories are comprised of the following:
June 30, 2024 December 31, 2023
Materials and supplies $ 330,794 $ 313,966
Ore stockpiles and dump leach 195,616 207,602
Finished goods - concentrate stockpiles 61,276 72,515
Finished goods - copper cathode 5,467 5,324
$ 593,153 $ 599,407
Long-term inventory is comprised of the following:
June 30, 2024 December 31, 2023
Ore stockpiles at Candelaria $ 435,008 $ 427,075
Ore stockpiles at Chapada 267,192 270,570
Dump leach at Caserones 93,609 99,952
$ 795,809 $ 797,597
6. OTHER CURRENT ASSETS
Other current assets are comprised of the following:
June 30, 2024 December 31, 2023
Caserones purchase option (a) $ 56,166 $ —
Other 24,900 21,421
$ 81,066 $ 21,421
a) Pursuant to the terms of the shareholders' agreement to acquire 51% of Lumina Copper, the Company acquired
the right to purchase an additional 19% interest in the Caserones mine for $350.0 million over a five-year period
commencing on July 13, 2024 ("Caserones Purchase Option"). The Caserones Purchase Option is recorded at fair
value with changes in fair value recorded in Other income and expense. On June 26, 2024, the shareholders'
agreement associated with the transaction was amended to waive any restriction relating to the exercise date of
the call option and on July 2, 2024, the Company completed the exercise of the Caserones Purchase Option. The
fair value of $56.2 million at June 30, 2024 was therefore reclassified from Other non-current assets to Other
current assets.
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2024 and 2023
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
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7. MINERAL PROPERTIES, PLANT AND EQUIPMENT
Mineral properties, plant and equipment are comprised of the following:
Cost
Mineral
properties
Plant and
equipment
Assets under
construction1
Development
project2
Software
intangible
assets Total
As at December 31, 2022 $ 5,546,923 $ 3,752,177 $ 236,056 $ 876,419 $ 32,626 $ 10,444,201
Additions 153,973 27,214 175,503 147,431 42 504,163
Disposals and transfers 44,937 31,289 (87,431) — 2,464 (8,741)
Effects of foreign exchange 3,091 9,037 (343) — (39) 11,746
As at June 30, 2023 5,748,924 3,819,717 323,785 1,023,850 35,093 10,951,369
Caserones acquisition — 1,243,432 94,110 — — 1,337,542
Additions 126,127 69,067 231,037 106,217 40 532,488
Disposals and transfers 72,525 146,791 (322,496) — 28,123 (75,057)
Effects of foreign exchange 67,178 28,990 3,825 — 313 100,306
As at December 31, 2023 6,014,754 5,307,997 330,261 1,130,067 63,569 12,846,648
Additions 127,096 33,262 202,618 159,101 78 522,155
Write-down — — — (17,188) — (17,188)
Disposals and transfers 33,150 130,340 (170,330) — 89 (6,751)
Effects of foreign exchange (77,596) (39,804) (3,585) — (319) (121,304)
As at June 30, 2024 $ 6,097,404 $ 5,431,795 $ 358,964 $ 1,271,980 $ 63,417 $ 13,223,560
Accumulated depreciation,
depletion and amortization
Mineral
properties
Plant and
equipment
Assets under
construction1
Development
project2
Software
intangible
assets Total
As at December 31, 2022 $ 2,835,431 $ 1,621,439 $ — $ — $ 11,645 $ 4,468,515
Depreciation 146,614 118,343 — — 2,232 267,189
Disposals and transfers — (8,579) — — — (8,579)
Effects of foreign exchange (564) 2,101 — — (33) 1,504
As at June 30, 2023 2,981,481 1,733,304 — — 13,844 4,728,629
Depreciation 167,286 228,326 — — 3,038 398,650
Disposals and transfers — (66,211) — — — (66,211)
Effects of foreign exchange 45,308 14,962 — — 141 60,411
As at December 31, 2023 3,194,075 1,910,381 — — 17,023 5,121,479
Depreciation 156,047 210,990 — — 4,843 371,880
Disposals and transfers — (5,780) — — — (5,780)
Effects of foreign exchange (50,369) (19,339) — — (164) (69,872)
As at June 30, 2024 $ 3,299,753 $ 2,096,252 $ — $ — $ 21,702 $ 5,417,707
Net book value
Mineral
properties
Plant and
equipment
Assets under
construction1
Development
project2
Software
intangible
assets Total
As at December 31, 2023 $ 2,820,679 $ 3,397,616 $ 330,261 $ 1,130,067 $ 46,546 $ 7,725,169
As at June 30, 2024 $ 2,797,651 $ 3,335,543 $ 358,964 $ 1,271,980 $ 41,715 $ 7,805,853
¹ Represent assets under construction at the Company's operating mine sites which are currently non-depreciable.
2 Assets relate to the Josemaria Project which are currently non-depreciable.
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2024 and 2023
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
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During the three and six months ended June 30, 2024, the Company capitalized $8.9 million and $16.5 million (June 30,
2023 - $4.5 million and $7.8 million), respectively, of finance costs to the Josemaria Project at a weighted average
interest rate of 6.0% (June 30, 2023 - 5.5%).
During the three and six months ended June 30, 2024, the Company capitalized $39.3 million and $118.0 million (June
30, 2023 - $54.5 million and $95.8 million), respectively, of deferred stripping costs to mineral properties. The
depreciation expense related to deferred stripping for the three and six months was $45.8 million and $68.4 million
(June 30, 2023 - $26.8 million and $52.4 million), respectively. Included in the mineral properties balance at June 30,
2024 is $353.4 million (December 31, 2023 - $277.5 million) related to deferred stripping at Candelaria and Caserones,
which is currently non-depreciable.
The Company's software intangible assets relate primarily to a global instance of an Enterprise Resource Planning
("ERP") system, and related configuration and customization costs incurred in preparing the intangible asset for its
intended use. These assets have useful lives of 8 years or less, and are amortized on a straight-line basis.
The Company leases various assets including power line infrastructure, buildings and storage facilities, rail cars,
vehicles, machinery and equipment. The following table summarizes the changes in right-of-use assets within plant
and equipment:
Net book value
As at December 31, 2022 $ 27,923
Additions 11,843
Depreciation (11,755)
Effects of foreign exchange 278
As at June 30, 2023 28,289
Caserones acquisition 257,655
Additions 42,966
Depreciation (39,636)
Disposals (5,363)
Effects of foreign exchange 86
As at December 31, 2023 283,997
Additions 23,817
Depreciation (37,499)
Disposals (1,534)
Effects of foreign exchange (83)
As at June 30, 2024 $ 268,698
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2024 and 2023
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
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8. TRADE AND OTHER PAYABLES
Trade and other payables are comprised of the following:
June 30, 2024 December 31, 2023
Trade payables $ 345,560 $ 393,829
Unbilled goods and services 175,794 176,444
Employee benefits payable 81,578 114,514
Sinkhole provision 27,735 29,827
Royalties payable 26,538 23,773
Pricing provisions on concentrate sales 19,451 13,201
Deferred consideration, current portion 10,000 10,000
Prepayment from customers 516 21,963
Other 12,338 22,212
$ 699,510 $ 805,763
Included in pricing provisions on concentrate sales are balances owing to customers and provisions arising from
forward market price adjustments.
The sinkhole provision relates to expected remediation costs and potential fines directly related to the sinkhole near
the Company's Ojos del Salado operations.
The deferred consideration relates to the current portion of the remaining deferred cash consideration arising from
the Caserones acquisition, payable in installments over the next five years.
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2024 and 2023
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
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9. DEBT AND LEASE LIABILITIES
Debt and lease liabilities are comprised of the following:
June 30, 2024 December 31, 2023
Revolving credit facility (a) $ 274,273 $ 245,084
Term loan (b) 798,180 798,542
Candelaria and Chapada term loans (c) 159,520 48,850
Lease liabilities (d) 259,164 277,208
Commercial paper (e) 107,050 116,025
Line of credit — 99
Debt and lease liabilities 1,598,187 1,485,808
Less: current portion 315,695 212,646
Long-term portion $ 1,282,492 $ 1,273,162
The changes in debt and lease liabilities are comprised of the following:
Leases Debt Total
As at December 31, 2022 $ 27,166 $ 170,162 $ 197,328
Additions 11,774 430,949 442,723
Payments (12,013) (214,502) (226,515)
Interest 733 — 733
Financing fee amortization — 430 430
Deferred financing fee — (1,158) (1,158)
Effects of foreign exchange 878 596 1,474
As at June 30, 2023 28,538 386,477 415,015
Caserones acquisition 257,655 — 257,655
Additions 42,618 2,059,648 2,102,266
Payments (47,828) (1,237,302) (1,285,130)
Disposals (6,221) — (6,221)
Interest 11,788 — 11,788
Financing fee amortization — 416 416
Deferred financing fee — (1,792) (1,792)
Effects of foreign exchange (9,342) 1,153 (8,189)
As at December 31, 2023 277,208 1,208,600 1,485,808
Additions 23,471 492,339 515,810
Payments (45,292) (357,206) (402,498)
Disposals (1,495) — (1,495)
Interest 11,785 — 11,785
Financing fee amortization — 1,174 1,174
Deferred financing fee — (2,347) (2,347)
Effects of foreign exchange (6,513) (3,537) (10,050)
As at June 30, 2024 259,164 1,339,023 1,598,187
Less: current portion 49,125 266,570 315,695
Long-term portion $ 210,039 $ 1,072,453 $ 1,282,492
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2024 and 2023
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
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a) The Company has a revolving credit facility of $1,750.0 million. On April 26, 2024, the credit facility, which
originally matured in April 2028, was amended and extended to 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.
The revolving credit facility is unsecured, save and except for a charge over certain assets in the USA, and is
subject to customary covenants. During the three and six months ended June 30, 2024, the Company drew
down $50.0 million and $115.0 million (June 30, 2023 - $146.0 million and $171.0 million), and repaid $70
million and $85.0 million (June 30, 2023 - $— million and $13.0 million), respectively. As at June 30, 2024, a
principal balance of $280.0 million (December 31, 2023 - $250.0 million) was outstanding, with unamortized
deferred financing fees of $5.7 million (December 31, 2023 - $4.9 million) netted against borrowings.
On July 2, 2024, the Company drew down $350.0 million from the revolving credit facility to complete the
exercise of its option to acquire an additional 19% interest in Caserones.
b) In July 2023, the Company obtained a term loan of a principal amount of $800.0 million with an additional
$400.0 million accordion option, maturing July 2026. On April 26, 2024, the Company amended the terms to
extend maturity to 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. The term loan is unsecured, save and except for a charge over certain assets in the USA, and has
similar covenants to the Company’s existing $1,750.0 million revolving credit facility. As at June 30, 2024, a
principal balance of $800.0 million (December 31, 2023 - $800.0 million) was outstanding, with unamortized
deferred financing fees of $1.8 million (December 31, 2023 - $1.5 million) netted against borrowings.
c) In February and March 2024, Compañia Contractual Minera Candelaria S.A. ("Candelaria Mine"), a subsidiary
owned 80% by the Company, obtained two unsecured fixed term loans in the amount of $50.0 million and
$15.0 million, respectively. The loans accrued interest at rates of 5.67% and 5.79% per annum and were fully
repaid in May and June 2024, respectively. An additional short-term loan was obtained in May 2024 in the
amount of $50.0 million, accruing interest at 5.78% and maturing in November 2024. As at June 30, 2024, a
principal balance of $50.0 million (December 31, 2023 - $nil) was outstanding.
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 and six months ended June 30,
2024 totalling $87.0 million and $132.3 million (June 30, 2023 - $71.1 million and $130.5 million), respectively.
Chapada repaid $51.2 million and $71.7 million of the outstanding term loans during the three and six months
ended June 30, 2024 (June 30, 2023 - $108.9 million and $61.8 million), respectively.
As at June 30, 2024 , there were thirty two term loans outstanding at Chapada totalling $109.5 million
(December 31, 2023 - sixteen term loans totalling $48.9 million). These outstanding term loans accrue interest
at rates ranging from 6.16% to 6.80% per annum with interest payable upon maturity. The maturity dates range
from July to September 2024.
d) Lease liabilities relate to leases on power line infrastructure, buildings and storage facilities, rail cars, vehicles,
machinery and equipment which have remaining lease terms of one to thirteen years and interest rates of 0.8%
- 10.4% over the terms of the leases.
e) Sociedade Mineira de Neves-Corvo, S.A. (“Somincor”), a subsidiary of the Company which owns the Neves-
Corvo mine, entered into three unsecured commercial paper programs during 2022 and 2023 ("Commercial
Paper Program 1, 2, and 3", respectively). Commercial Paper Program 1, entered into September 2022, has a
borrowing capacity of €25.0 million, matures May 2025, and bears interest on drawn funds at EURIBOR+0.50%.
Commercial Paper Program 2, entered into in June 2023, has a borrowing capacity of €50.0 million, matures in
June 2028, and bears interest on drawn funds at EURIBOR+0.50%. Commercial Program 3, entered into July
2023, has a borrowing capacity of €40.0 million, matures in July 2028, and bears interest on drawn funds at
EURIBOR+0.30%.
During the three and six months ended June 30, 2024 , Somincor had drawn $37.5 million (€35.0 million) and
$130.0 million (€120.0 million), respectively from the commercial paper programs (June 30, 2023 - $65.0 million
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2024 and 2023
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
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(€60.0 million) and $129.4 million (€120.0 million)) and repaid $37.6 million (€35.0 million) and $135.4 million
(€125.0 million), respectively from the programs (June 30, 2023 - $21.7 million (€20.0 million) and $91.1 million
(€85.0 million)).
As at June 30, 2024, a principal balance of $21.4 million (€20.0 million), $53.5 million (€50.0 million), and $32.1
million (€30.0 million) was outstanding on Commercial Paper Program 1, 2, and 3, respectively (December 31,
2023 - $27.6 million (€25.0 million), $55.3 million (€50.0 million), and $33.2 million (€30.0 million)).
The schedule of undiscounted lease payment and debt obligations is as follows:
Leases Debt Total
Less than one year $ 65,420 $ 266,570 $ 331,990
One to five years 153,243 1,080,000 1,233,243
More than five years 141,624 — 141,624
Total undiscounted obligations as at June 30, 2024 $ 360,287 $ 1,346,570 $ 1,706,857
10. DEFERRED REVENUE
The following table summarizes the changes in deferred revenue:
As at December 31, 2022 $ 654,106
Recognition of revenue (36,019)
Finance costs 18,004
Effects of foreign exchange (1,018)
As at June 30, 2023 635,073
Recognition of revenue (36,724)
Variable consideration adjustment 3,018
Finance costs 18,000
Effects of foreign exchange 3,863
As at December 31, 2023 623,230
Recognition of revenue (35,604)
Finance costs 17,179
Effects of foreign exchange (3,374)
As at June 30, 2024 601,431
Less: current portion 84,124
Long-term portion $ 517,307
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 2023, 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.
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2024 and 2023
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
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11. 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, 2022 $ 401,020 $ 44,828 $ 445,848
Accretion 10,477 — 10,477
Changes in estimate 5,766 8,794 14,560
Changes in discount rate 13,846 — 13,846
Payments (3,649) (1,480) (5,129)
Effects of foreign exchange (256) 2,674 2,418
Balance, June 30, 2023 427,204 54,816 482,020
Acquisition of Caserones 92,440 — 92,440
Accretion 12,692 — 12,692
Changes in estimate (36,273) (3,222) (39,495)
Changes in discount rate 738 — 738
Payments (5,193) (169) (5,362)
Effects of foreign exchange 5,537 (4,394) 1,143
Balance, December 31, 2023 497,145 47,031 544,176
Accretion 12,758 — 12,758
Changes in estimate (11,526) 2,244 (9,282)
Changes in discount rate (17,321) — (17,321)
Payments (5,986) (2,424) (8,410)
Effects of foreign exchange (5,756) (3,337) (9,093)
Balance, June 30, 2024 469,314 43,514 512,828
Less: current portion 13,524 4,731 18,255
Long-term portion $ 455,790 $ 38,783 $ 494,573
The Company expects these liabilities to be settled between 2024 and 2110. The reclamation provisions are
discounted using current market pre-tax discount rates which range from 2.0% to 12.0% (December 31, 2023 - 2.0% to
10.4%).
12. DEFERRED CONSIDERATION AND OTHER LONG-TERM LIABILITIES
Deferred consideration and other long-term liabilities are comprised of the following:
June 30, 2024 December 31, 2023
Deferred consideration, non-current portion $ 109,670 $ 106,210
Other 31,101 26,989
$ 140,771 $ 133,199
Deferred consideration represents the non-current portion of the remaining cash consideration for the acquisition of
51% of Lumina Copper, completed July 13, 2023. 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 2024, 2025, 2026, 2027, and 2028; and $100 million to be paid on the anniversary of the closing date in 2029.
Subsequent to June 30, 2024, the Company paid the first $10.0 million installment related to the Caserones deferred
consideration.
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2024 and 2023
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
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13. SHARE CAPITAL
a) Basic and diluted weighted average number of shares outstanding
Three months ended
June 30,
Six months ended
June 30,
2024 2023 2024 2023
Basic weighted average number of shares outstanding 776,173,888 772,255,656 774,033,611 771,739,532
Effect of dilutive securities 2,914,254 934,228 2,397,227 687,860
Diluted weighted average number of shares outstanding 779,088,142 773,189,884 776,430,838 772,427,392
Antidilutive securities 96,300 23,175 1,001,595 1,267,078
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
June 30,
Six months ended
June 30,
2024 2023 2024 2023
Stock options — 18,230 1,498,160 1,880,663
Restricted Share Units and Performance Share Units — 13,930 1,041,450 1,261,503
c) Deferred share units
During the year ended December 31, 2023, the Company adopted a Deferred Share Unit ("DSU") Plan effective
January 1, 2024 under which DSUs are granted by the Board of Directors quarterly to eligible non-employee
Directors. During the three and six months ended June 30, 2024, 16,858 and 25,062 DSUs (June 30, 2023 - nil and
nil), respectively, were granted under the plan.
d) Dividends
During the three and six months ended June 30, 2024 , the Company declared dividends in the amount of $51.1
million and $102.4 million (June 30, 2023 - $51.1 million and $102.4 million), respectively, or C$0.09 per share and
C$0.18 per share (June 30, 2023 - C$0.09 and C$0.18), respectively.
14. 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 copper mining operations and supporting infrastructure in Chile
(together the "Candelaria complex"). In addition, the Company owns 51% of the Caserones mine, also located in Chile.
On July 2, 2024, the Company completed the exercise of its option to acquire an additional 19% interest in the issued
and outstanding equity of Lumina Copper, bringing the Company's ownership in Caserones to 70% and reducing the
NCI to 30%.
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2024 and 2023
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 16 -
===== SIDA 67 =====
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 June 30, 2024 20% 49%
As at December 31, 2022 $ 564,089 $ — $ 564,089
Share of net comprehensive income (loss) 20,775 — 20,775
As at June 30, 2023 584,864 — 584,864
Caserones acquisition — 873,767 873,767
Share of net comprehensive income (loss) 20,978 32,294 53,272
Distributions (11,000) (44,100) (55,100)
As at December 31, 2023 594,842 861,961 1,456,803
Share of net comprehensive income (loss) 30,125 49,695 79,820
Distributions (20,000) — (20,000)
As at June 30, 2024 $ 604,967 $ 911,656 $ 1,516,623
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 June 30, 2024 As at Dec. 31, 2023 As at June 30, 2024 As at Dec. 31, 2023
Total current assets $ 549,793 $ 512,217 $ 758,626 $ 708,927
Total non-current assets $ 3,162,797 $ 3,140,799 $ 1,539,408 $ 1,629,052
Total current liabilities $ 317,899 $ 266,314 $ 263,622 $ 323,797
Total non-current liabilities $ 636,844 $ 646,189 $ 251,518 $ 267,263
Summarized Statements of Earnings and Comprehensive Income (Loss)
Candelaria complex Caserones mine
For the six months ended
June 30, 2024 2023 2024 2023
Total revenue $ 787,348 $ 768,726 $ 657,838 $ —
Net earnings $ 149,945 $ 107,002 $ 101,421 $ —
Net comprehensive income $ 149,949 $ 106,893 $ 101,421 $ —
Summarized Statement of Cash Flows
Candelaria complex Caserones mine
For the six months ended
June 30, 2024 2023 2024 2023
Cash provided by operating
activities $ 254,155 $ 225,559 $ 242,921 $ —
Cash used in investing activities (159,073) (216,255) (76,357) —
Cash used in financing activities (89,195) (25,361) (52,888) —
Increase (decrease) in cash and
cash equivalents during the period $ 5,887 $ (16,057) $ 113,676 $ —
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2024 and 2023
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 17 -
===== SIDA 68 =====
15. REVENUE
The Company's analysis of revenue from contracts with customers, segmented by product, is as follows:
Three months ended
June 30,
Six months ended
June 30,
2024 2023 2024 2023
Revenue from contracts with customers:
Copper $ 743,360 $ 440,162 $ 1,442,615 $ 921,142
Zinc 87,534 50,832 152,475 149,321
Gold 54,880 50,008 109,598 103,351
Nickel 39,260 97,482 74,386 161,112
Molybdenum 31,494 — 70,321 —
Lead 20,034 10,463 32,530 23,303
Silver 15,080 9,835 28,408 19,101
Other 10,898 11,860 20,074 16,315
1,002,540 670,642 1,930,407 1,393,645
Provisional pricing adjustments on current period
concentrate sales (13,484) (7,522) 46,612 (65,921)
Provisional pricing adjustments on prior period
concentrate sales 94,529 (74,589) 43,547 12,151
Revenue $ 1,083,585 $ 588,531 $ 2,020,566 $ 1,339,875
The Company's geographical analysis of revenue from contracts with customers, segmented based on the
destination of product, is as follows:
Three months ended
June 30,
Six months ended
June 30,
2024 2023 2024 2023
Revenue from contracts with customers:
Japan $ 229,970 $ 133,408 $ 611,847 $ 327,746
China 286,869 54,717 481,326 195,282
Spain 179,053 128,149 232,965 260,717
Canada 97,119 124,714 149,335 215,830
Germany 24,846 45,926 95,990 73,714
Chile 43,120 7,414 91,714 23,134
Sweden 67,984 58,490 85,928 68,992
Finland 18,116 40,605 78,565 107,657
Norway 30,717 27,419 50,655 72,447
Other 24,746 49,800 52,082 48,126
1,002,540 670,642 1,930,407 1,393,645
Provisional pricing adjustments on current period
concentrate sales (13,484) (7,522) 46,612 (65,921)
Provisional pricing adjustments on prior period
concentrate sales 94,529 (74,589) 43,547 12,151
Revenue $ 1,083,585 $ 588,531 $ 2,020,566 $ 1,339,875
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2024 and 2023
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 18 -
===== SIDA 69 =====
16. PRODUCTION COSTS
The Company's production costs are comprised of the following:
Three months ended
June 30,
Six months ended
June 30,
2024 2023 2024 2023
Direct mine and mill costs $ 553,536 $ 373,519 $ 1,071,053 $ 751,162
Transportation 33,320 24,647 66,125 55,129
Royalties 19,570 7,032 36,382 16,671
Total production costs $ 606,426 $ 405,198 $ 1,173,560 $ 822,962
17. EMPLOYEE BENEFITS
The Company's employee benefits recognized in the consolidated statement of earnings are comprised of the
following:
Three months ended
June 30,
Six months ended
June 30,
2024 2023 2024 2023
Production costs
Wages and benefits $ 108,778 $ 78,546 $ 207,073 $ 158,308
Retirement benefits 462 485 910 1,061
Share-based compensation 324 438 726 980
109,564 79,469 208,709 160,349
General and administrative expenses
Wages and benefits 5,040 5,994 12,521 11,567
Retirement benefits 168 199 343 601
Share-based compensation 1,408 1,203 2,646 2,843
Termination benefits — 1,349 — 3,198
6,616 8,745 15,510 18,209
General exploration and business development
Wages and benefits 980 1,242 2,060 2,900
Retirement benefits 12 11 23 23
Share-based compensation 4 114 5 198
Termination benefits — 313 — 313
996 1,680 2,088 3,434
Total employee benefits $ 117,176 $ 89,894 $ 226,307 $ 181,992
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2024 and 2023
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 19 -
===== SIDA 70 =====
18. GENERAL EXPLORATION AND BUSINESS DEVELOPMENT
The Company's general exploration and business development costs are comprised of the following:
Three months ended
June 30,
Six months ended
June 30,
2024 2023 2024 2023
General exploration $ 12,416 $ 11,752 $ 25,034 $ 20,955
Project development 676 1,776 1,498 2,312
Corporate development 444 165 455 5,191
Total general exploration and business development $ 13,536 $ 13,693 $ 26,987 $ 28,458
Corporate development expenses for the three months and six months ended June 30, 2023 included $0.2 million and
$5.0 million, respectively, in transaction costs related to the acquisition of Caserones.
19. FINANCE INCOME AND COSTS
The Company's finance income and costs are comprised of the following:
Three months ended
June 30,
Six months ended
June 30,
2024 2023 2024 2023
Interest income $ 5,315 $ 1,289 $ 9,148 $ 2,172
Interest expense and bank fees (24,785) (6,988) (47,942) (13,197)
Accretion expense on reclamation provisions (6,415) (5,268) (12,758) (10,477)
Lease liability interest (5,896) (361) (11,785) (733)
Deferred revenue finance costs (3,192) (4,852) (6,938) (10,525)
Other (1,334) 283 (1,726) 1,164
Total finance costs, net $ (36,307) $ (15,897) $ (72,001) $ (31,596)
Finance income $ 5,315 $ 1,572 $ 9,148 $ 3,336
Finance costs (41,622) (17,469) (81,149) (34,932)
Total finance costs, net $ (36,307) $ (15,897) $ (72,001) $ (31,596)
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2024 and 2023
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 20 -
===== SIDA 71 =====
20. OTHER INCOME AND EXPENSE
The Company's other income and expense are comprised of the following:
Three months ended
June 30,
Six months ended
June 30,
2024 2023 2024 2023
Foreign exchange (loss) gain (a) $ (2,827) $ 12,390 $ 23,997 $ 2,445
Foreign exchange and trading gains on debt and equity
investments (b) 10,100 30,667 18,279 52,745
Revaluation of Caserones purchase option (c) 12,431 — 11,728 —
Revaluation of marketable securities 85 3,464 2,515 3,902
Realized (losses) gains on derivative contracts (Note 21) (1,365) 14,275 2,350 27,852
Ojos del Salado sinkhole (expenses) recoveries (d) (710) (11,900) 321 (16,482)
Unrealized gains (losses) on derivative contracts (Note
21) 3,974 (14,403) (48,858) 6,263
Write-down of assets (e) (17,188) — (17,188) —
Partial suspension of underground operations (f) (9,824) — (9,824) —
Revaluation of Chapada derivative liability — (380) (307) (1,796)
Gain on disposal of subsidiary — — — 5,718
Other income (expense) 1,701 (752) 3,035 (1,041)
Total other (expense) income, net $ (3,623) $ 33,361 $ (13,952) $ 79,606
a) Foreign exchange losses and gains during the three and six months ended June 30, 2024, respectively, relate to
the foreign exchange revaluation of trade payables and lease liabilities held in CLP. Foreign exchange losses
during the three months ended June 30, 2024 are due to the strengthening of the CLP during the period. Foreign
exchange gains during the six months ended June 30, 2024 are due to the year-to-date weakening of the CLP
against USD.
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 is revalued at each reporting period, with changes in fair value recorded in Other
Income and Expense. The fair value of the purchase option at June 30, 2024 increased as a result of revised
discounted cash flow projections due to higher metal prices.
d) Ojos del Salado sinkhole expenses and recoveries during the three and six months ended June 30, 2024,
respectively, include adjustments of expenses originally accrued for as a result of updated information obtained
related to the sinkhole near the Company's Ojos del Salado operations.
e) Write-down of assets during the three and six months ended June 30, 2024 relate to a non-cash write-down of
capital works in progress at the Josemaria Project that are no longer expected to be required.
f) A fall of ground in the lower ramp at the Eagle mine has limited production while rehabilitation is completed.
Overhead costs unrelated to production in the period have been recorded in Other Income and Expense.
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2024 and 2023
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 21 -
===== SIDA 72 =====
21. 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. Beginning in 2022, the Company entered into EUR, BRL, CLP, SEK and CAD
foreign currency options and forward contracts intended to limit the foreign exchange exposure of its forecasted
foreign currency denominated after-tax attributable operating and capital expenditures. In 2023, the Company
entered into commodity forward swap contracts to limit exposure to changes in the price of diesel fuel purchases at
Candelaria, and in 2024 entered into short-term commodity collar contracts to limit its exposure to changes in the
price of copper. 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 earnings.
During 2024, the Company entered into zero cost collar contracts in the total amounts of $ 246 million (equivalent to
BRL 1.3 billion) and $950 million (equivalent to CLP 926 billion) with collar ranges of BRL 5.00 to BRL 6.11 and CLP 900
to CLP 1,085, respectively. Of the CLP foreign currency contracts entered into during the period, $110 million
(equivalent to CLP 107 billion) expired during the period, with the remaining contracts expiring through the remainder
of 2024 to 2026. In April 2024, the Company entered into copper collar contracts in the amount of 21,500 metric
tonnes of copper with collar ranges of $4.10/lb to $4.52/lb, which expired in May. The following tables outline the
foreign currency and commodity derivative notional contract positions and their expiry dates:
Expired in Expiring throughout:
Foreign currency forward contracts 2024
remainder of
2024 2025 2026
EUR/USD forwards
Average contract price 1.02 1.02 — —
Position (EUR millions) 78 78 — —
USD/SEK forwards
Average contract price 10.90 10.80 10.83 —
Position (SEK millions) 450 472 758 —
Expired in Expiring throughout:
Foreign currency zero cost collar contracts 2024
remainder of
2024 2025 2026
USD/BRL collars
Average contract price 5.00/6.40 5.02/6.28 5.06/6.04 5.07/6.04
Position (USD millions) 95 119 185 114
USD/CLP collars
Average contract price 879/1,037 884/1,042 872/1,032 904/1,060
Position (USD millions) 250 302 511 342
USD/CAD collars
Average contract price 1.30/1.40 1.30/1.40 — —
Position (CAD millions) 10 10 — —
USD/SEK collars
Average contract price 10.35/11.15 10.35/11.15 — —
Position (SEK millions) 198 198 — —
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2024 and 2023
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 22 -
===== SIDA 73 =====
Expired in Expiring throughout:
Commodity hedge contracts 2024
remainder of
2024 2025 2026
Diesel forward swap contracts
Average contract price ($/L) 0.667 0.667 — —
Position (USD millions) 13 13 — —
Copper collars
Average contract price ($/lb) 4.10/4.52 — — —
Position (millions lbs) 47 — — —
The Company’s net unrealized and realized (loss)/gain on f oreign currency and commodity derivative contracts are as
follows:
Three months ended
June 30,
Six months ended
June 30,
2024 2023 2024 2023
Unrealized gain/(loss) on derivative financial instruments:
Foreign currency contracts $ 4,689 $ (11,215) $ (49,850) $ 9,451
Commodity hedge contracts (715) (3,188) 992 (3,188)
3,974 (14,403) (48,858) 6,263
Realized gain/(loss) on derivative financial instruments:
Foreign currency contracts 2,083 14,908 5,447 28,485
Commodity hedge contracts (3,448) (633) (3,097) (633)
(1,365) 14,275 2,350 27,852
Total unrealized and realized gain/(loss) on derivative
contracts: $ 2,609 $ (128) $ (46,508) $ 34,115
A summary of the fair values of unsettled derivative contracts recorded on the consolidated balance sheet is as
follows:
June 30, 2024 December 31, 2023
Foreign currency contracts:
Current asset position $ 10,016 $ 38,114
Non-current asset position 5,476 9,397
Current liability position 7,153 1,124
Non-current liability position 15,676 3,148
Diesel forward swap contracts:
Current asset position 95 —
Current liability position — 896
Other contracts:
Chapada derivative current liability 24,676 24,369
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2024 and 2023
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 23 -
===== SIDA 74 =====
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 June 30, 2024 and December 31, 2023:
June 30, 2024 December 31, 2023
Level
Carrying
value Fair value
Carrying
value Fair value
Financial assets
Fair value through profit or loss
Restricted funds 1 $ 60,013 $ 60,013 $ 59,979 $ 59,979
Trade receivables (provisional) 2 433,455 433,455 605,644 605,644
Marketable securities, and debt & equity investments 1 16,255 16,255 14,268 14,268
Foreign currency contracts 2 15,492 15,492 47,511 47,511
Diesel forward swap contracts 2 95 95 — —
Caserones purchase option 3 56,166 56,166 44,438 44,438
$ 581,476 $ 581,476 $ 771,840 $ 771,840
Financial liabilities
Amortized cost
Debt 3 $ 1,339,023 $ 1,339,023 $ 1,208,600 $ 1,208,600
Fair value through profit or loss
Pricing provisions on concentrate sales 2 $ 6,024 $ 6,024 $ 1,840 $ 1,840
Chapada derivative liability 2 24,676 24,676 24,369 24,369
Caserones deferred consideration 2 119,670 119,670 116,210 116,210
Foreign currency contracts 2 22,829 22,829 4,272 4,272
Diesel forward swap contracts 2 — — 896 896
$ 173,199 $ 173,199 $ 147,587 $ 147,587
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 $81.0 million in revenue during the three months ended June 30, 2024 (June 30,
2023 - $82.1 million negative pricing adjustments). The Company recognized positive pricing adjustments of
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2024 and 2023
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 24 -
===== SIDA 75 =====
$90.2 million in revenue during the six months ended June 30, 2024 (June 30, 2023 - $53.8 million negative
pricing adjustments).
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 purchase option – The fair value of the Caserones purchase option is determined using a valuation
model that incorporates such factors as the mine's discounted cash flow projections, metal price volatility, expiry
date, and risk-free interest rate.
Chapada derivative liability – The fair value of this derivative is determined using a valuation model that
incorporates such factors as metal prices, metal price volatility, expiry date, and risk-free interest rate.
Caserones deferred consideration – The fair value of the Caserones deferred consideration has been discounted
at the estimated credit adjusted risk free rate applicable to future payments.
Debt – The fair values approximate carrying values as the interest rates are comparable to current market rates.
The carrying values of certain financial instruments maturing in the short-term approximate their fair values.
These financial instruments include cash and cash equivalents, trade and other receivables other than those
provisionally priced, and trade and other payables other than those provisionally priced, which are classified as
amortized cost.
22. COMMITMENTS AND CONTINGENCIES
a) The Company has capital commitments of $349.8 million on various initiatives, of which $143.1 million is
expected to be paid during 2024.
b) The Company may be involved in legal proce edings arising in the ordinary course of business, including the action
described below. The potential amount of the liabilities with respect to such legal proceedings is not expected to
materially affect the Company's financial position.
c) Significant changes to commitments and contingencies, since those reported at December 31, 2023, are
described below:
i. With respect to the Ontario class action, the Supreme Court of Canada granted the Company's leave
application on March 28, 2024. The appeal will likely be heard in Q4 2024 or the first half of 2025.
23. SEGMENTED INFORMATION
The Company is engaged in mining, exploration and development of mineral properties at six operating sites located in
Chile, Brazil, USA, Portugal, and Sweden, and at the Josemaria Project located in Argentina. Operating segments are
reported in a manner consistent with the internal reporting provided to executive management who act as the chief
operating decision-makers. The chief operating decision makers consider the business from a site and project-level
perspective. Executive management are responsible for allocating resources and assessing performance of the
operating segments. The Company has identified eight reportable segments which include six operating sites, the
Josemaria Project, and other corporate office operations.
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2024 and 2023
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 25 -
===== SIDA 76 =====
For the three months ended June 30, 2024
Candelaria Caserones Chapada Eagle Josemaria Neves-Corvo Zinkgruvan Other Total
Chile Chile Brazil USA Argentina Portugal Sweden
Revenue $ 366,363 $ 336,547 $ 117,969 $ 57,444 $ — $ 128,675 $ 76,587 $ — $ 1,083,585
Cost of goods sold
Production costs (175,359) (208,897) (69,246) (37,657) — (83,129) (32,734) 596 (606,426)
Depreciation, depletion and amortization (76,058) (54,501) (18,368) (9,993) — (29,672) (8,813) (253) (197,658)
Gross profit 114,946 73,149 30,355 9,794 — 15,874 35,040 343 279,501
General and administrative expenses — — — — — — — (13,140) (13,140)
General exploration and business development (2,885) (3,313) (1,383) (64) (2,737) (184) (2,091) (879) (13,536)
Finance (costs) income (7,592) (3,561) (6,222) (819) 2,251 (2,067) (1,086) (17,211) (36,307)
Other (expense) income (1,259) (3,213) 2,925 (10,476) (6,906) (511) 1,204 14,613 (3,623)
Income tax (expense) recovery (43,188) (18,356) (30,874) 598 50,588 (1,919) (6,925) (6,086) (56,162)
Net earnings (loss) $ 60,022 $ 44,706 $ (5,199) $ (967) $ 43,196 $ 11,193 $ 26,142 $ (22,360) $ 156,733
Capital expenditures $ 60,544 $ 35,328 $ 25,241 $ 3,980 $ 90,664 $ 27,921 $ 13,301 $ 1,488 $ 258,467
For the six months ended June 30, 2024
Candelaria Caserones Chapada Eagle Josemaria Neves-Corvo Zinkgruvan Other Total
Chile Chile Brazil USA Argentina Portugal Sweden
Revenue $ 696,772 $ 662,758 $ 216,404 $ 114,667 $ — $ 209,305 $ 120,660 $ — $ 2,020,566
Cost of goods sold
Production costs (336,609) (406,552) (133,831) (78,193) — (154,841) (62,809) (725) (1,173,560)
Depreciation, depletion and amortization (149,484) (106,230) (33,448) (19,144) — (56,718) (16,796) (330) (382,150)
Gross profit (loss) 210,679 149,976 49,125 17,330 — (2,254) 41,055 (1,055) 464,856
General and administrative expenses — — — — — — — (29,900) (29,900)
General exploration and business development (4,765) (6,913) (2,066) (165) (6,522) (383) (4,479) (1,694) (26,987)
Finance (costs) income (15,058) (7,937) (11,776) (1,718) 9,396 (3,250) (2,312) (39,346) (72,001)
Other income (expense) 5,588 15,450 5,287 (10,782) 1,883 (4,697) (8,011) (18,670) (13,952)
Income tax (expense) recovery (82,581) (40,592) (28,614) 1,876 50,588 2,918 (5,647) (4,676) (106,728)
Net earnings (loss) $ 113,863 $ 109,984 $ 11,956 $ 6,541 $ 55,345 $ (7,666) $ 20,606 $ (95,341) $ 215,288
Capital expenditures $ 160,076 $ 78,082 $ 54,440 $ 8,058 $ 149,310 $ 50,334 $ 27,642 $ 2,431 $ 530,373
Total non-current assets1 $ 3,157,464 $ 1,393,908 $ 1,369,560 $ 197,767 $ 1,303,026 $ 1,134,477 $ 274,168 $ 8,923 $ 8,839,293
1 Non-current assets include long-term inventory, mineral properties, plant and equipment, and goodwill.
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2024 and 2023
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 26 -
===== SIDA 77 =====
For the three months ended June 30, 2023
Candelaria Chapada Eagle Josemaria Neves-Corvo Zinkgruvan Other Total
Chile Brazil USA Argentina Portugal Sweden
Revenue $ 290,426 $ 94,721 $ 105,250 $ — $ 68,614 $ 29,520 $ — $ 588,531
Cost of goods sold
Production costs (184,958) (80,113) (45,735) — (76,080) (17,786) (526) (405,198)
Depreciation, depletion and amortization (69,696) (14,989) (12,670) — (27,719) (4,913) (518) (130,505)
Gross profit (loss) 35,772 (381) 46,845 — (35,185) 6,821 (1,044) 52,828
General and administrative expenses — — — — — — (14,898) (14,898)
General exploration and business development (5,112) (3,067) (1,443) — (2,197) (354) (1,520) (13,693)
Finance (costs) income (8,295) (5,682) (1,086) 3,995 (1,148) (1,084) (2,597) (15,897)
Other (expense) income (16,108) 10,296 (821) 36,219 384 (5,207) 8,598 33,361
Income tax (expense) recovery (3,732) 15,864 (3,539) (678) 10,617 (2,286) 3,355 19,601
Net earnings (loss) $ 2,525 $ 17,030 $ 39,956 $ 39,536 $ (27,529) $ (2,110) $ (8,106) $ 61,302
Capital expenditures $ 123,417 $ 19,690 $ 3,562 $ 92,093 $ 22,133 $ 15,994 $ 3,024 $ 279,913
For the six months ended June 30, 2023
Candelaria Chapada Eagle Josemaria Neves-Corvo Zinkgruvan Other Total
Chile Brazil USA Argentina Portugal Sweden
Revenue $ 670,831 $ 205,839 $ 174,670 $ — $ 198,017 $ 90,518 $ — $ 1,339,875
Cost of goods sold
Production costs (372,937) (148,747) (91,184) — (161,806) (46,691) (1,597) (822,962)
Depreciation, depletion and amortization (128,071) (27,070) (23,821) (38) (57,799) (13,000) (953) (250,752)
Gross profit (loss) 169,823 30,022 59,665 (38) (21,588) 30,827 (2,550) 266,161
General and administrative expenses — — — — — — (30,008) (30,008)
General exploration and business development (8,952) (4,571) (2,029) — (3,333) (1,974) (7,599) (28,458)
Finance (costs) income (16,296) (11,716) (2,170) 6,805 (1,713) (2,187) (4,319) (31,596)
Other (expense) income (2,797) 16,664 (1,003) 51,532 2,953 (5,455) 17,712 79,606
Income tax (expense) recovery (46,279) 21,213 (3,546) (678) 9,345 (6,265) (2,882) (29,092)
Net earnings (loss) $ 95,499 $ 51,612 $ 50,917 $ 57,621 $ (14,336) $ 14,946 $ (29,646) $ 226,613
Capital expenditures $ 214,103 $ 35,717 $ 10,664 $ 182,648 $ 47,194 $ 30,462 $ 5,244 $ 526,032
Total non-current assets1 $ 3,063,513 $ 1,387,750 $ 219,658 $ 1,050,168 $ 1,163,090 $ 249,599 $ 9,521 $ 7,143,299
1 Non-current assets include long-term inventory, mineral properties, plant and equipment, and goodwill.
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2024 and 2023
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
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24. 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
June 30,
Six months ended
June 30,
2024 2023 2024 2023
Wages and salaries $ 1,747 $ 2,127 $ 3,616 $ 3,421
Pension benefits 30 33 58 77
Share-based compensation 596 723 1,071 1,466
Termination benefits — 388 — 1,794
$ 2,373 $ 3,271 $ 4,745 $ 6,758
b) Other related parties - For the three and six months ended June 30, 2024, the Company incurred $1.2 million and
$5.8 million (June 30, 2023 – $0.4 million and $0.7 million), respectively, for services provided by companies
owned by members of key management personnel primarily relating to office rental, renovation costs, and
related services.
25. SUPPLEMENTARY CASH FLOW INFORMATION
Three months ended
June 30,
Six months ended
June 30,
2024 2023 2024 2023
Changes in non-cash working capital items consist of:
Trade and income taxes receivable, inventories, and
other current assets $ 99,881 $ 71,878 $ 145,371 $ 57,709
Trade and income taxes payable, and other current
liabilities 22,015 12,329 (69,610) 3,306
$ 121,896 $ 84,207 $ 75,761 $ 61,015
Operating activities included the following cash
payments:
Income taxes paid $ 49,131 $ 33,083 $ 98,132 $ 72,940
26. SUBSEQUENT EVENT
• On July 29, 2024, the Company entered into an agreement with BHP and Filo Corp (“Filo”) to jointly acquire all the
issued and outstanding shares of Filo (the “Arrangement”) not already owned by Lundin Mining and BHP. Under the
terms of the Arrangement, Filo shareholders may choose to receive in exchange for each Filo share C$33.00 in cash,
2.3578 Lundin Mining shares or any combination thereof, subject to aggregate caps. Lundin Mining’s share of the
consideration for the Arrangement is approximately C$2,148 million ($1,550 million), consisting of up to C$859 million
in cash and C$1,289 million in Lundin Mining shares. Closing is expected to occur in the first quarter of 2025.
• Concurrently with the completion of the Arrangement, Lundin Mining and BHP will form a 50/50 joint venture (the
“Joint Venture”) to hold the Filo del Sol project and Lundin Mining’s Josemaria project. BHP will pay Lundin Mining cash
consideration of $690 million, subject to certain adjustments, as consideration for Lundin Mining contributing the
Josemaria project to the Joint Venture.
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2024 and 2023
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
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Registered Office
1055 Dunsmuir Street, Suite 2800, Bentall IV, Vancouver, BC V7X 1L2
Tel: +1.604.806.3081
lundinmining.com