FULLTEXT DEL 1 AV 2
Kvartalsrapport Q2 2025
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Corporate Office
1055 Dunsmuir Street
Suite 2800, Bentall IV
Vancouver, BC V7X 1L2
Phone +1 604 689 7842
lundinmining.com
NEWS RELEASE
Lundin Mining Reports Second Quarter 2025 Results
Vancouver, August 6, 2025 (TSX: LUN; Nasdaq Stockholm: LUMI) Lundin Mining Corporation (“Lundin Mining” or the
“Company”) today reported its second quarter 2025 financial results. Unless otherwise stated, results are presented in
United States dollars on a 100% basis.
Jack Lundin, President and CEO commented, “Our portfolio of high -quality assets continued to generate solid results
during the quarter keeping us firmly on track to achieve the midpoint of our production guidance. This resulted in over
$930 million in revenue and $211 million in free cash flow from operations1. Consolidated copper cash costs decreased to
$1.92/lb, down 7% from last quarter. Importantly, our record safety performance in Q1 continued into Q2, with the
Company achieving the lowest Total Recordable Injury Frequency Rate recorded in the past ten years.
"With the successful $1.4 billion sale of our European assets, we paid down our term loan and reduced net debt excluding
lease liabilities 1 to $135 million as at the end of Q2. At our Capital Markets Day ("CMD") event in June, we showcased
medium-term brownfield expansion opportunities that complement the long -term growth potential of the Vicuña Project.
The Vicuña Project team continues to progress with parallel studies supporting a multi -phased development plan and an
integrated technical report remains on track for Q1 2026. Our five -year financial outlook provided at the CMD event
demonstrates our ability to fund these transformational growth initiatives while maintaining shareholder returns in the
form of share buybacks and dividends. We look forward to continuing to build off the solid first half performance for the
remainder of 2025.”
Second Quarter Operational and Financial Highlights
Strong operational results drove earnings in the second quarter supported by continued higher gold prices. The
Company's balance sheet was also strengthened from the sale of its European assets. 2025 production guidance was
reaffirmed in the quarter and cash cost guidance was improved.
• Copper Production: Production of 80,073 tonnes of copper in the second quarter from continuing operations.
• Other Production: During the quarter, 38,118 ounces of gold and 2,713 tonnes of nickel were produced.
• Revenue: $937.2 million in the second quarter from continuing operations with a realized copper price 1 of $4.40 /lb
and a realized gold price1 of $3,478 /oz.
• Net Earnings and Adjusted Earnings 1: During the quarter, net earnings from continuing operations attributable to
shareholders of the Company was $126.1 million ($0.15 per share) and adjusted earnings from continuing operations
was $98.2 million ($0.11 per share).
• Adjusted EBITDA1: $394.7 million was generated from continuing operations for the quarter.
• Cash Generation: Cash provided by continuing operations was $314.6 million and free cash flow from operations 1
was $211.1 million, which was impacted by significant cash income taxes paid at Candelaria in the quarter due to
timing of payments and increased taxable income.
• Growth: During the quarter the Company outlined strategic aspirations to become a global top-ten copper producer
and achieve copper production of over 500,000 tonnes per year and gold production of over 550,000 ounces per
year:
◦ On April 16, 2025 Lundin Mining completed the sale of Neves -Corvo and Zinkgruvan to Boliden AB
("Boliden") for cash proceeds of $1,314.6 million, net of cash disposed and transaction costs, and
subsequently repaid in full its term loan of $1,150 million and repaid $170.0 million of amounts drawn on its
revolving credit facility.
◦ During the quarter the Company announced a Mineral Resource estimate (the "Vicuña Mineral Resource")
for the Vicuña Project which highlighted one of the world’s largest copper, gold and silver Mineral Resources,
with the potential to support a globally ranked mining complex. The Company continues to advance the
integrated study of the Filo del Sol and Josemaria deposits, which is expected to be completed in Q1 2026.
The resource contains:
1 These are non -GAAP measures. Free cash flow from operations of $211 million is from continuing operations. Please refer to the Company's di scussion of
non-GAAP and other performance measures in its Management's Discussion and Analysis ("MD&A") for the three and six months ended June 30, 2025 and
the Reconciliation of Non-GAAP Measures section at the end of this news release.
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▪ Contained copper of 13 million tonnes (“Mt”) Measured and Indicated at 0.35% copper (“M&I”) and
25 Mt Inferred at 0.32% copper.
▪ Contained gold of 32 million ounces (“Moz”) M&I at 0.27 g/t gold and 49 Moz Inferred at 0.19 g/t
gold.
▪ Contained silver of 659 Moz M&I at 5.6 g/t silver and 808 Moz Inferred at 3.2 g/t silver.
◦ On June 18, 2025, the Company hosted a Capital Markets Day, which outlined medium -term, low -cost
brownfield expansion opportunities alongside the Vicuña Project which offers transformational long -term
growth potential. The Company also provided guidance on financial performance for the next five years that
outlined its ability to fund future growth plans.
• 2024 Sustainability Report Published: The Company continues to demonstrate its commitment to sustainability as
an integral part of the Company's overall strategy for disciplined growth and released its annual 2024 Sustainability
report on May 26, 2025.
• Shareholder Returns: A quarterly dividend of $0.0275 per share has been declared. In addition, the Company
purchased 4,629,000 common shares during the quarter at an average share price of C$10.91 for total consideration
of $36.2 million under its normal course issuer bid. So far during 2025, Lundin Mining has cancelled 13,058,800
common shares at a cost of approximately $104.0 million.
• Outlook: The Company reaffirms it is tracking to full year guidance for production of all metals, including 303,000 –
330,000 tonnes of copper. The Company has further revised cash cost guidance at Chapada which supports its
previously lowered overall consolidated cash cost guidance for the Company to $1.95 to $2.15 per pound cash cost.
Annual sustaining capital expenditure guidance has remained unchanged with reductions at Caserones being offset
by higher capital expenditure at Chapada. Expansionary capital guidan ce has increased, driven by an increase in the
Vicuña Project budget.
• Discontinued Operations: On April 16, 2025, the Company completed the sale of its European assets, Neves -Corvo
and Zinkgruvan, to Boliden. The operating results of the Neves -Corvo and Zinkgruvan reporting segments have been
classified as net earnings from discontinued operations. Net earnings from discontinued operations for the quarter
of $102.4 million includes a gain on disposal of $106.4 million, net of income tax.
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Summary Financial Results
Three months ended
June 30,
Six months ended
June 30,
(US$ millions continuing operations except where noted,
except per share amounts) 2025 2024 2025 2024
Revenue 937.2 878.3 1,901.1 1,690.6
Gross profit 271.3 228.5 580.2 426.1
Attributable net earningsa 126.1 84.3 264.1 122.7
Net earnings 159.6 119.4 340.9 202.3
Adjusted earningsa,b (all operations) 99.9 122.1 246.1 167.3
Adjusted earningsa,b — continuing operations 98.2 83.4 192.1 139.7
Adjusted earningsa,b,c — discontinued operations 1.7 38.7 53.9 27.6
Adjusted EBITDAb (all operations) 395.8 460.9 846.5 823.7
Adjusted EBITDAb — continuing operations 394.7 369.9 782.6 708.3
Adjusted EBITDAb,c — discontinued operations 1.0 91.0 63.9 115.4
Basic earnings per share ("EPS")a (all operations) 0.27 0.16 0.41 0.18
Diluted earnings per share ("EPS")a (all operations) 0.27 0.16 0.41 0.17
Basic and diluted earnings per share ("EPS")a — continuing
operations
0.15 0.11
0.31 0.16
Basic and diluted earnings per share ("EPS")a,c — discontinued
operations
0.12 0.05
0.10 0.02
Adjusted EPSa,b (all operations) 0.12 0.16 0.29 0.22
Adjusted EPSa,b — continuing operations 0.11 0.11 0.22 0.18
Adjusted EPSa,b,c — discontinued operations 0.00 0.05 0.06 0.04
Cash provided by operating activities (all operations) 334.6 491.8 511.4 759.3
Cash provided by operating activities - continuing operations 314.6 440.0 436.9 672.3
Cash provided by operating activities - discontinued
operationsc
20.0 51.8 74.5 87.0
Adjusted operating cash flowb (all operations) 279.4 369.9 672.0 683.6
Adjusted operating cash flowb — continuing operations 277.2 291.2 614.2 585.3
Adjusted operating cash flowb,c — discontinued operations 2.2 78.7 57.8 98.3
Adjusted operating cash flow per shareb (all operations) 0.33 0.48 0.79 0.89
Adjusted operating cash flow per shareb — continuing
operations
0.32 0.38 0.72 0.76
Adjusted operating cash flow per shareb,c — discontinued
operations
0.00 0.10 0.06 0.13
Free cash flowb (all operations) 175.9 236.9 128.2 235.1
Free cash flowb — continuing operations 165.0 226.3 111.8 226.1
Free cash flowb,c — discontinued operations 10.9 10.6 16.4 9.0
Free cash flow from operationsb (all operations) 222.6 337.6 254.4 405.2
Free cash flow from operationsb — continuing operations 211.1 324.7 232.6 391.3
Free cash flow from operationsb,c— discontinued operations 11.5 12.9 21.8 13.9
Cash and cash equivalents 279.3 452.8 279.3 452.8
Net debt excluding lease liabilitiesb (135.1) (893.8) (135.1) (893.8)
Net debtb
(380.2) (1,152.9) (380.2) (1,152.9)
a Attributable to shareholders of Lundin Mining Corporation.
b These are non-GAAP measures. Please refer to the Company's discussion of non -GAAP and other performance measures in its MD&A for the three and six
months ended June 30, 2025 and the Reconciliation of Non-GAAP Measures section at the end of this news release.
c Discontinued operations are to April 16, 2025.
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• For the quarter ended June 30, 2025, the Company generated revenue from continuing operations of $937.2 million
(Q2 2024 - $878.3 million).
• Gross profit from continuing operations for the quarter of $271.3 million was $42.8 million higher than in the prior
year comparable period of $228.5 million. The increase was primarily due to higher sales volume, lower treatment
charges, and cost savings from operational efficiencies.
• Net earnings from continuing operations for the quarter of $159.6 million was higher than in the prior year
comparable period of $119.4 million. The increase was primarily due to an increase in gross profit combined with
lower interest expense due to the repayment of debt in the quarter with cash proceeds received from the sale of
the Neves-Corvo and Zinkgruvan operations.
• Adjusted earnings 2 from continuing operations for the quarter of $98.2 million, increased from $83.4 million
primarily as a result of higher gross profit.
• Cash provided by operating activities related to continuing operations for the quarter of $314.6 million represented
a decrease of $125.4 million from the prior year comparable period of $440.0 million. The decrease was primarily
due to significant cash income taxes paid in the quarter of $168.0 million (Q2 2024 - $47.1 million ), primarily at
Candelaria, and a reduction in working capital inflows of $111.4 million to $37.4 million from $148.8 million in the
prior year comparable period.
• In the quarter, sustaining capital expenditures 3 from continuing operations of $115.9 million were lower than in the
prior year comparable period of $126.6 million . The reduction was primarily due to lower spending at Candelaria
from reduced deferred stripping.
• Expansionary capital expenditures 2 of $33.7 million in the quarter were lower than $87.1 million in the prior year
comparable period due to the formation of Vicuña, a 50/50 joint arrangement with BHP Investments Canada Inc.
("BHP") (the "Joint Arrangement"), on January 15, 2025. From this date, the Company's expansionary capital
expenditures include 50% of Vicuña's capital expenditures.
• Free cash flow 2 from continuing operations for the quarter of $165.0 million was lower than in the prior year
comparable period of $226.3 million primarily due to reduced cash provided by operating activities related to
continuing operations, partially offset by lower sustaining and expansionary capital expenditures.
• As at August 6, 2025, the Company had cash of approximately $276 million and net debt excluding lease liabilities 2
of approximately $139 million.
Operational Performance
Total Production
(Contained metal)a
2025 2024
YTD Q2 Q1 Total Q4 Q3 Q2 Q1
Continuing Operations
Copper (t)b 156,847 80,073 76,774 336,875 94,094 91,772 71,614 79,395
Gold (oz)b 69,967 38,118 31,849 158,436 46,456 46,712 32,439 32,829
Nickel (t) 5,009 2,713 2,296 7,486 1,617 893 1,721 3,255
Molybdenum (t)b 982 380 602 3,183 912 693 714 864
Discontinued OperationsC
Copper (t) 8,319 1,225 7,094 32,192 7,397 8,083 8,094 8,618
Zinc (t) 58,233 9,285 48,948 191,704 51,946 46,610 47,460 45,688
a - Tonnes (t) and ounces (oz).
b - Candelaria and Caserones production are on a 100% basis.
c - Discontinued operations results are to April 16, 2025.
Candelaria (80% owned): Candelaria produced 36,999 tonnes of copper and 20,574 ounces of gold in concentrate on a
100% basis during the quarter. Production in the quarter and year -to-date periods were positively impacted by increased
throughput as a result of softer ore feed and higher ball mill runtime due to rescheduled maintenance in the quarter.
Mining and processing in the quarter was focused on Phase 11 with some contribution from higher grade areas of Phase
2 These are non-GAAP measures. Please refer to the Company's discussion of non -GAAP and other performance measures in its MD&A for the three and six
months ended June 30, 2025 and the Reconciliation of Non-GAAP Measures section at the end of this news release.
3 This is a supplementary financial measure. Please refer to the Company's discussion of non -GAAP and other performance measures in its MD&A for the
three and six months ended June 30, 2025 and the Reconciliation of Non-GAAP Measures section at the end of this news release.
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12. Cash cost 4 of $1.81/lb during the quarter was positively impacted by higher production and favourable foreign
exchange.
Caserones (70% owned): Caserones produced 29,290 tonnes of copper and 380 tonnes of molybdenum on a 100% basis
during the quarter. Production in the quarter was impacted by lower grades as a result of mine sequencing with mining
focused on Phases 6 and 7 as mining of Phase 5 nears completion. Throughput was impacted slightly by a temporary
reduction in primary crusher availability during the quarter and copper cathode production benefitted from increased
material placed on the leach pad. Cash cost of $2.45 /lb in the quarter benefitted from lower mining and milling costs, as
well as lower treatment and refining charges and favorable foreign exchange.
Chapada (100% owned): Chapada produced 11,274 tonnes of copper and 17,544 ounces of gold in concentrate during the
quarter. Ore from the North and South open pits was mined and processed, resulting in higher grades as compared to the
prior quarter which focused on processing ore from the older low -grade stockpile. Cash cost of $0.75 /lb was the lowest
amount since 2021, and benefitted from higher gold by-product credits as a result of higher realized gold prices, combined
with favourable foreign exchange and higher copper sales volume.
Eagle (100% owned): Eagle produced 2,713 tonnes of nickel and 2,510 tonnes of copper in the quarter. Production was
impacted by a temporary reduction in equipment availability and reduced throughput as a result of an unplanned four -
day power outage. Production gradually increased to normal levels following the completion of ramp rehabilitation at
Eagle East in the previous quarter. Nickel cash cost of $2.02/lb was positively impacted by higher by -product credits and
higher nickel sales volumes.
Outlook
The Company remains on track to meet annual production guidance for all metals. In light of higher gold prices, the cash
cost guidance range for Chapada is further reduced from that announced on June 17, 2025.
At Candelaria, production in the second half of the year is expected to be in line with the first half of the year to meet th e
Company's annual production guidance for 2025. Cash costs at Candelaria are tracking to the mid -point of guidance for
the full year.
At Caserones, higher copper head grades anticipated in the second half of the year, together with strong cathode
production are expected to sustain the Company's annual production guidance for 2025.
At Chapada, production is expected to be weighted to the second half of the year as copper grades and recoveries in the
second half of the year are expected to remain in line with the second quarter. Mine sequencing is expected to result in
processing increased fresh ore from the North and South pits and less lower -grade stockpile material. Cash costs are
expected to continue to benefit from higher gold prices, leading to a further reduction in annual guidance as compared to
that previously announced by the Company (see News Release dated June 17, 2025).
At Eagle, grades and mining rates are expected to normalize in the second half of the year, supporting annual production
guidance. Mining at the Eagle deposit is expected to be completed towards the end of the year and higher grade ore from
Eagle East will be sourced.
4 This is a non-GAAP measure. Please refer to the Company's discussion of non -GAAP and other performance measures in its MD&A for the three and six
months ended June 30, 2025 and the Reconciliation of Non-GAAP Measures section at the end of this news release.
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See below for revised 2025 Guidance:
2025 Production and Cash Cost Guidancea
Guidancea Revised Guidance
(contained metal) Production Cash Cost ($/lb)b Production Cash Cost ($/lb)b
Copper (t) Candelaria (100%) 140,000 – 150,000 1.60 – 1.80c 140,000 – 150,000 1.80 – 2.00c
Caserones (100%) 115,000 – 125,000 2.40 – 2.60 115,000 – 125,000 2.40 – 2.60
Chapada 40,000 – 45,000 1.30 – 1.50d 40,000 – 45,000 1.10 – 1.30d
Eagle 8,000 – 10,000 8,000 – 10,000
Total 303,000 – 330,000 1.95 – 2.15 303,000 – 330,000 1.95 – 2.15
Gold (oz) Candelaria (100%) 78,000 – 88,000 78,000 – 88,000
Chapada 57,000 – 62,000 57,000 – 62,000
Total 135,000 – 150,000 135,000 – 150
Nickel (t) Eagle 8,000 – 11,000 3.05 – 3.25 8,000 – 11,000 3.05 – 3.25
a. Guidance as outlined in the news release "Lundin Mining Highlights Strategic Vision and Financial Outlook for Leading Grow th and Shareholder Returns"
dated June 17, 2025.
b. 2025 cash costs are based on various assumptions and estimates, including but not limited to: production volumes, commodi ty prices (Cu: $4.40/lb, Au:
$3,000/oz, Mo: $20.00/lb, Ag: $30.00/oz), foreign exchange rates (USD/CLP:950, USD/BRL:5.75) and operating costs. Cash cost i s a non-GAAP measure - see
the Reconciliation of Non-GAAP Measures section at the end of this news release.
c. 68% of Candelaria's total gold and silver production are subject to a streaming agreement. Cash costs are calculated based on receipt of approximately
$433/oz gold and $4.32/oz silver.
d. Chapada's cash cost is calculated on a by -product basis and does not include the effects of its copper stream agreements. Effects of the copper stream
agreements are reflected in copper revenue and will impact realized price per pound.
2025 Capital Expenditure Guidancea,b,c
($ millions) Guidance
Candelaria (100% basis) 205
Caserones (100% basis) 200
Chapada 100
Eagle 25
Other —
Total Sustaining 530
Expansionary - Candelaria (100% basis) 50
Expansionary - Vicuña Joint Arrangement (50% basis) 215
Total Capital Expenditures 795
a. Guidance as outlined in the news release "Lundin Mining Highlights Strategic Vision and Financial Outlook for Leading Grow th and Shareholder Returns"
dated June 17, 2025.
b. Sustaining capital expenditure is a supplementary financial measure, and expansionary capital expenditure is a non -GAAP measure – see the
Reconciliation of Non-GAAP Measures section at the end of this news release.
c. Capital expenditures are based on various assumptions and estimates, including, but not limited to foreign currency exchan ge rates (USD/CLP: 950,
USD/BRL: 5.50)
2025 Exploration Investment Guidance
Total exploration expenditure guidance for 2025 remains at $40 million, which has potential to increase subject to
successful exploration results at the Boulderdash property. Drilling metres ("m") across the Company have been re -
allocated to account for the anticipated earn-in agreement with Talon Metal Corp. ("Talon") and the Boulderdash property.
Exploration
During the quarter, exploration activity focused on in -mine and near -mine targets at the Company's operations.
Exploration drilling at Candelaria was focused on Candelaria South (Mariana) and Candelaria Norte with a total of 1,533m
completed during the quarter.
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At Caserones, drilling started for the year early in the quarter with one rig at the Caserones pit targeting deep high -grade
copper breccias and two rigs at Angelica targeting copper sulphides beneath the Angelica oxide deposit, totaling 3,097m.
A total of 5,077m was drilled using two rigs at Chapada. One rig was in the Saúva resource area, focusing on adding high
grade resources. A second rig was testing shallow targets outside the Saúva resource area and near-mine targets.
At Eagle, drilling commenced at the Boulderdash property with two rigs targeting potential extensions of the known nickel-
copper mineralized intrusion. This drilling is part of an exclusivity agreement with 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. Total drilling for the quarter was 1,874m, as part of the proposed 10,000m Phase 1 earn-in drilling program.
Vicuña
On January 15, 2025, the Company completed the joint acquisition of all of the issued and outstanding common shares of
Filo Corp. not already owned by Lundin Mining and concurrently formed the Joint Arrangement, resulting in the Company
indirectly holding a 50% interest in Vicuña Corp., an independently managed joint operation which owns the Josemaria
project in Argentina and the Filo del Sol project in Argentina and Chile. BHP indirectly owns the remaining 50% interest in
Vicuña.
In 2025, work continues to focus on advancing studies related to the synergies between the Filo del Sol and Josemaria
projects, continuing the drilling program, and progressing the development of the Josemaria project.
Activities at Josemaria during the quarter focused on the completion and submission of the Environmental Impact
Assessment ("EIA"), power infrastructure planning, and continued advancement of the water program. Mobilization and
preparatory works for the northern access road commenced in the quarter with full construction scheduled to begin later
in 2025 following the winter season. Work also continued on a multi -phased development concept pertaining to the
Josemaria and Filo del Sol deposits. An integrated technical report is targeted to be complete by early 2026.
Government relations activities continued with both the national and provincial governments. In conjunction, discussions
on provincial agreements continued to be advanced. Work also progressed in the quarter on an application for the
Argentinean Basis Law - Incentive Regime for Large Investments ("RIGI").
Community investment programs were launched in 2025 with a focus on gender, youth training, cooperative
development, and rural livelihoods.
On May 4, 2025, the Company announced an initial Mineral Resource estimate for the Filo del Sol sulphide deposit, an
update to the Mineral Resource estimate for the Filo del Sol oxide deposit and an update to the Mineral Resource estimate
for the Josemaria deposit, which highlighted the combined Vicuña Project as one of the largest copper, gold and silver
resources in the world. Details of the Vicuña Mineral Resource are set out in the "NI 43-101 Technical Report on the Vicuña
Project, Argentina and Chile" with an effective date of April 15, 2025 (the "Vicuña Technical Report").
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The Filo del Sol and Josemaria deposits have significant high -grade mineralization that could provide the initial years of
mining for the Project.
• Filo del Sol high -grade core at cut -off of 0.75% copper equivalent ("CuEq"): 606 million Mt (M&I) at 1.14% CuEq 5
(0.74% Cu) for contained metal of 4.5 Mt copper at 0.74%, 9.6 Moz gold at 0.49 g/t and 259 Moz silver at 13.3 g/t.
• Near surface Josemaria high -grade core at cut -off of 0.60% CuEq: 196 Mt (M&I) at 0.73% CuEq 6 (0.50% Cu) for
contained metal of 978 kt copper at 0.50%, 2.4 Moz gold at 0.38 g/t and 11 Moz silver at 1.7 g/t.
The Filo del Sol deposit also contains copper oxide mineralization at surface.
• Lower capital intensity heap leach oxide cap of 434 Mt (M&I) at 0.34% copper (1.5 Mt), 0.28 g/t gold (3.9 Moz) and
2.5 g/t silver (35 Moz)
• High-grade oxides at a cut-off of 0.60% CuEq of 181 Mt (M&I) at 1.05% CuEq7(0.50% Cu) for contained metal of 911
kt copper at 0.50%, 2.3 Moz gold at 0.39 g/t and 230 Moz silver at 39.6 g/t.
There is clear potential for expansion. Drilling at Filo del Sol bottomed in mineralization and is open at depth, while drill ing
at the Flamenco zone approximately 2 kilometers to the south has intercepted mineralization beyond the limits of the
current resource pit shell.
During the quarter, the Company spent $32.2 million in capital expenditures compared to $87.1 million in the prior year
comparable period. On a year-to-date basis, the Company spent $74.9 million compared to $143.1 million in the prior year
comparable period. Reduced spending in both the quarter and year -to-date periods is due to the formation of Vicuña on
January 15, 2025. From this date, the Company's expansionary capital expenditures include 50% of Vicuña's capital
expenditures.
Expansionary Projects
The Company has a number of brownfield expansionary projects that are expected to contribute to medium -term growth
in its existing operating asset portfolio. Combined, these opportunities could add 30,000 to 40,000 tonnes of copper
production growth and 60,000 to 70,000 ounces of annual gold production through low capital intensity growth projects.
Candelaria
Projects are ongoing to support the mine life extension under the Environmental Impact Assessment ("2040 EIA"). During
the quarter, $1.5 million was spent on relocation of electrical transmission lines to allow for expansion of the open pit.
During the year-to-date period, $21.7 million of spending also included key equipment deliveries as well as the acquisition
of mining rights.
Additionally, the Company is working on an expansion opportunity which re -envisions the previously disclosed Candelaria
Underground Expansion Project ("CUGEP") to a lower -capital intensive option with only marginally lower production rates.
The Company forecasts that this could increase underground throughput capacity by approximately 50% to 60% to
~22,000 tonnes per day from current levels of 12,000 to 14,000 tonnes per day and increase annual copper production by
approximately 10% or 14,000 tonnes of copper per year. The opportunity includes insourcing of the Company's
underground mining contract, which is anticipated to provide incremental copper production gains from higher
productivity rates through improved mechanical availability and higher development rates. Initial recruitment has begun
as part of the internalization process, along with training and licensing of blast technicians. It is expected that by mid-2026,
the initial underground mining crews will have been internalized.
Caserones
While cathode production at Caserones has remained strong over recent quarters, the Company is anticipating that
through continued improvements with its leaching practices and additional oxide material, incremental future production
can be realized in the range of 7,000 to 10,000 tonnes of copper per year.
Chapada
The development of the Saúva deposit, approximately 15 kilometers from the Chapada mine, represents a near mine
opportunity to add approximately 15,000 to 20,000 tonnes of copper production per year and 50,000 to 60,000 ounces of
gold production per year, representing 50% and 100% production increases respectively. This is expected to be achieved
through the installation of additional grinding capacity and by offsetting lower grade material with higher grade ore from
5 Filo del Sol CuEq assumes average metallurgical recoveries of 78% for copper, 62% for gold and 62% for silver, and metal pric es of $4.43/lb Cu, $2,185/oz Au
and $28.80/oz Ag. The CuEq formula is: CuEq= Cu% + (0.59 * Au g/t) + (0.008 * Ag g/t).
6 Josemaria high -grade core CuEq assumes metallurgical recoveries of 84% for copper, 67% for gold and 63% for silver, and metal prices of $4.4 3/lb Cu,
$2,185/oz Au and $28.80/oz Ag. The CuEq formula is: CuEq= Cu% + (0.58 * Au g/t) + (0.007 * Ag g/t).
7 Filo del Sol oxide CuEq assumes average metallurgical recoveries of 78% for copper, 62% for gold and 62% for silver, and meta l prices of $4.43/lb Cu,
$2,185/oz Au and $28.80/oz Ag. The CuEq formula is: CuEq= Cu% + (0.59 * Au g/t) + (0.008 * Ag g/t).
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Saúva. Permitting and technical work is ongoing to further define the project and the Company anticipates completing a
pre-feasibility study by the end of 2025.
Second Quarter 2025 Results Conference Call and Webcast Details
The Company will hold a webcast and conference call on Thursday, August 7, 2025 to present the results. Webcast and
conference call details are provided below.
Webcast / Conference Call Details:
Date: Thursday, August 7, 2025
Time: 7:00 AM PT | 10:00 AM ET
Listen Only Webcast: WEBCAST LINK
Dial In for Investor & Analyst Q&A: DIAL IN LINK
To participate in the call click on the dial in LINK above and complete the online registration form. Once registered you will
receive the dial-in information and a unique PIN to join the call and ask questions.
A replay of the webcast will be available by clicking on the webcast LINK above and will be archived on the Company’s
website for a limited period of time.
About Lundin Mining
Lundin Mining is a diversified Canadian base metals mining company with projects or operations focused in Argentina,
Brazil, Chile and the United States of America, and primarily producing copper, gold and nickel.
The information in this release is subject to the disclosure requirements of Lundin Mining under the EU Market Abuse
Regulation. The information was submitted for publication, through the agency of the contact persons set out below on
August 6, 2025 at 17:30 Vancouver Time.
For further information, please contact:
Stephen Williams, Vice President, Investor Relations +1 604 806 3074
Robert Eriksson, Investor Relations Sweden: +46 8 440 54 40
Technical Information
The scientific and technical information in this document pertaining to the Vicuña Mineral Resource is based on the Vicuña
Technical Report. The Vicuña Technical Report was prepared by Luke Evans, M.Sc., P .Eng. of SLR Consulting (Canada) Ltd,
Paul Daigle, P .Geo. of AGP Mining Consultants Inc., Sean Horan, P .Geo. of Resource Modeling Solutions Ltd., Jeffrey Austin,
P .Eng. of International Metallurgical and Environmental Inc., and Bruno Borntraeger, P .Eng. of Knight Piésold Ltd, each of
whom reviewed, verified and approved the scientific and technical information pertaining to the Vicuña Mineral Resource
that is related to his respective scope of responsibility. Each of the foregoing individuals is a “Qualified Person” as defin ed
by National Instrument 43 -101 – Standards of Disclosure for Mineral Projects (“NI 43 -101”) and independent of the
Company.
The scientific and technical information in this document other than that pertaining to the Vicuña Mineral Resource has
been reviewed and approved in accordance with NI 43 -101 by Eduardo Cortés, Registered Member (Comisión Calificadora
de Competencias en Recursos y Reservas Mineras (Chilean Mining Commission)), Vice President, Mining & Resources at
Lundin Mining, a "Qualified Person" under NI 43 -101. Mr. Cortés has verified the data disclosed in this document and no
limitations were imposed on his verification process.
The Vicuña Mineral Resource estimates are shown on a 100% basis and have an effective date of April 15, 2025. For
further information related to the Vicuña Mineral Resource, including the key assumptions, parameters, and methods
used to estimate the Vicuña Mineral Resource, risks and cautionary statements, see the Vicuña Technical Report and the
Company’s News Release “Lundin Mining Announces Initial Mineral Resource at Filo Del Sol Demonstrating One of the
World's Largest Copper, Gold, and Silver Resources” dated May 4, 2025.
Reconciliation of Non-GAAP Measures
The Company uses certain performance measures in its analysis. These performance measures have no standardized
meaning within generally accepted accounting principles under International Financial Reporting Standards and,
therefore, amounts presented may not be comparable to similar data presented by other mining companies. For
additional details please refer to the Company’s discussion of non -GAAP and other performance measures in its
===== SIDA 10 =====
Management’s Discussion and Analysis for the three and six months ended June 30, 2025 which is available on SEDAR+ at
www.sedarplus.com.
===== SIDA 11 =====
Cash Cost per Pound and All-in Sustaining Costs per pound can be reconciled to Production Costs as follows:
Three months ended June 30, 2025
Continuing Operations Candelaria Caserones Chapada Consolidated Eagle Total -
continuing
operations1 ($ millions, unless otherwise noted) (Cu) (Cu) (Cu) (Cu) (Ni)
Sales volumes (Contained metal):
Tonnes 36,603 30,076 10,284 76,963 2,226
Pounds (000s) 80,696 66,307 22,672 169,675 4,907
Production costs 186.1 204.7 75.0 465.8 40.4 506.6
Less: Royalties and other (3.9) (9.8) (6.3) (20.0) (4.1) (24.5)
182.2 194.9 68.7 445.8 36.3 482.1
Deduct: By-product credits2 (42.8) (31.8) (51.8) (126.3) (26.4) (152.7)
Add: Treatment and refining 6.6 (0.5) 0.2 6.3 — 6.3
Cash cost 146.0 162.6 17.1 325.8 9.9 335.7
Cash cost per pound ($/lb) 1.81 2.45 0.75 1.92 2.02
Add: Sustaining capital 50.2 31.9 27.4 6.4
Royalties 4.0 8.5 3.6 4.1
Reclamation and other closure
accretion and depreciation
2.0 1.3 1.7 1.2
Leases & other 1.6 17.1 1.0 0.9
All-in sustaining cost 203.9 221.4 50.8 22.5
AISC per pound ($/lb) 2.53 3.34 2.24 4.58
1 Includes immaterial amounts related to other segments.
2 By-product credits are presented net of the associated treatment and refining charges.
Three months ended June 30, 2025
Discontinued Operations1
Neves-Corvo Zinkgruvan
Total -
discontinued
operations
($ millions, unless otherwise noted) (Cu) (Zn)
Sales volumes (Contained metal):
Tonnes 1,394 1,548
Pounds (000s) 3,073 3,413
Production costs 14.3 2.7 17.0
Less: Royalties and other (0.2) — (0.2)
14.1 2.7 16.8
Deduct: By-product credits2 (7.5) 0.8 (6.7)
Add: Treatment and refining 0.8 0.6 1.4
Cash cost 7.4 4.0 11.5
Cash cost per pound ($/lb) 2.42 1.18
Add: Sustaining capital — 9.1
Royalties 0.2 —
Reclamation and other closure
accretion and depreciation
0.1 —
All-in sustaining cost 7.7 13.1
AISC per pound ($/lb) 2.51 3.85
1 Discontinued operations results are to April 16, 2025.
2 By-product credits are presented net of the associated treatment and refining charges.
===== SIDA 12 =====
Three months ended June 30, 2024
Continuing Operations Candelaria Caserones Chapada Consolidated Eagle Total -
continuing
operations1 ($ millions, unless otherwise noted) (Cu) (Cu) (Cu) (Cu) (Ni)
Sales volumes (Contained metal):
Tonnes 29,999 29,862 8,293 68,154 2,018
Pounds (000s) 66,137 65,834 18,283 150,254 4,449
Production costs 175.4 208.9 69.2 453.5 37.7 490.6
Less: Royalties and other (4.6) (9.3) (3.2) (17.1) (4.0) (20.5)
170.8 199.6 66.0 436.4 33.7 470.1
Deduct: By-product credits2 (35.8) (37.3) (31.2) (104.3) (19.9) (124.2)
Add: Treatment and refining 8.9 8.9 2.8 20.6 0.6 21.3
Cash cost 143.9 171.3 37.6 352.8 14.4 367.2
Cash cost per pound ($/lb) 2.18 2.60 2.05 2.35 3.23
Add: Sustaining capital 60.5 35.3 25.2 4.0
Royalties 3.6 9.3 1.6 3.9
Reclamation and other closure
accretion and depreciation
1.9 1.1 2.7 1.6
Leases & other 3.0 18.6 0.8 1.5
All-in sustaining cost 212.9 235.6 67.9 25.4
AISC per pound ($/lb) 3.22 3.58 3.72 5.71
1 Includes immaterial amounts related to other segments.
2 By-product credits are presented net of the associated treatment and refining charges.
Three months ended June 30, 2024
Discontinued Operations Neves-Corvo Zinkgruvan Total -
discontinued
operations ($ millions, unless otherwise noted) (Cu) (Zn)
Sales volumes (Contained metal):
Tonnes 7,898 18,510
Pounds (000s) 17,412 40,808
Production costs 83.1 32.7 115.9
Less: Royalties and other (1.8) — (1.8)
81.3 32.7 114.1
Deduct: By-product credits1 (58.1) (27.8) (85.9)
Add: Treatment and refining charges 6.5 10.8 17.3
Cash cost 29.7 15.7 45.5
Cash cost per pound ($/lb) 1.70 0.39
Add: Sustaining capital expenditure 27.9 13.3
Royalties 1.2 —
Reclamation and other closure
accretion and depreciation
1.3 1.0
Leases and other 0.2 0.1
All-in sustaining cost 60.3 30.1
AISC per pound ($/lb) 3.46 0.74
1 By-product credits are presented net of the associated treatment and refining charges.
===== SIDA 13 =====
Six months ended June 30, 2025
Continuing Operations Candelaria Caserones Chapada Consolidated Eagle Total -
continuing
operations1 ($ millions, unless otherwise noted) (Cu) (Cu) (Cu) (Cu) (Ni)
Sales volumes (Contained metal):
Tonnes 71,577 66,257 18,630 156,464 3,974
Pounds (000s) 157,800 146,072 41,072 344,944 8,761
Production costs 358.2 448.7 138.5 945.3 77.5 1,023.5
Less: Royalties and other (5.0) (23.4) (11.3) (39.7) (9.2) (49.6)
353.2 425.3 127.2 905.6 68.3 973.9
Deduct: By-product credits2 (86.3) (68.4) (86.1) (240.9) (43.2) (284.1)
Add: Treatment and refining 13.8 6.7 3.1 23.7 — 23.7
Cash cost 280.7 363.5 44.2 688.4 25.1 713.5
Cash cost per pound ($/lb) 1.78 2.49 1.08 2.00 2.86
Add: Sustaining capital 98.0 70.1 49.6 10.8
Royalties 7.5 18.4 5.6 6.3
Reclamation and other closure
accretion and depreciation
4.1 2.6 3.4 2.4
Leases & other 3.1 34.6 2.1 1.8
All-in sustaining cost 393.4 489.2 104.9 46.4
AISC per pound ($/lb) 2.49 3.35 2.55 5.29
1 Includes immaterial amounts related to other segments.
2 By-product credits are presented net of the associated treatment and refining charges.
Six months ended June 30, 2025
Discontinued Operations1
Neves-Corvo Zinkgruvan
Total -
discontinued
operations
($ millions, unless otherwise noted) (Cu) (Zn)
Sales volumes (Contained metal):
Tonnes 6,745 20,698
Pounds (000s) 14,870 45,631
Production costs 90.2 36.9 127.1
Less: Royalties and other (1.3) — (1.3)
88.9 36.9 125.8
Deduct: By-product credits2 (67.0) (23.3) (90.3)
Add: Treatment and refining 5.4 7.2 12.6
Cash cost 27.4 20.8 48.1
Cash cost per pound ($/lb) 1.84 0.46
Add: Sustaining capital 27.7 30.4
Royalties 1.2 —
Reclamation and other closure
accretion and depreciation
0.7 0.3
Leases & other 0.9 —
All-in sustaining cost 57.9 51.5
AISC per pound ($/lb) 3.89 1.13
1 Discontinued operations results are to April 16, 2025.
2 By-product credits are presented net of the associated treatment and refining charges.
===== SIDA 14 =====
Six months ended June 30, 2024
Continuing Operations Candelaria Caserones Chapada Consolidated Eagle Total -
continuing
operations1 ($ millions, unless otherwise noted) (Cu) (Cu) (Cu) (Cu) (Ni)
Sales volumes (Contained metal):
Tonnes 63,535 65,073 17,035 145,643 4,181
Pounds (000s) 140,071 143,461 37,556 321,088 9,218
Production costs 336.6 406.6 133.8 877.0 78.2 955.9
Less: Royalties and other (7.1) (18.1) (6.4) (31.5) (6.9) (39.2)
329.5 388.5 127.4 845.5 71.3 916.7
Deduct: By-product credits2 (70.4) (72.1) (58.6) (201.1) (38.3) (239.4)
Add: Treatment and refining 24.2 21.4 7.5 53.1 0.6 53.7
Cash cost 283.4 337.7 76.3 697.4 33.6 731.1
Cash cost per pound ($/lb) 2.02 2.35 2.03 2.17 3.65
Add: Sustaining capital 160.1 78.1 54.4 8.1
Royalties 6.5 18.1 3.2 6.6
Reclamation and other closure 4.0 2.1 5.4 3.6
Leases & other 6.1 34.0 1.5 2.8
All-in sustaining cost 460.1 470.0 140.9 54.6
AISC per pound ($/lb) 3.28 3.28 3.75 5.92
1 Includes immaterial amounts related to other segments.
2 By-product credits are presented net of the associated treatment and refining charges.
Six months ended June 30, 2024
Discontinued Operations Neves-Corvo Zinkgruvan Total -
discontinued
operations ($ millions, unless otherwise noted) (Cu) (Zn)
Sales volumes (Contained metal):
Tonnes 13,784 34,335
Pounds (000s) 30,388 75,696
Production costs 154.8 62.8 217.7
Less: Royalties and other (3.1) — (3.1)
151.7 62.8 214.6
Deduct: By-product credits1 (92.0) (44.0) (136.0)
Add: Treatment and refining charges 12.1 19.7 31.8
Cash cost 71.7 38.6 110.3
Cash cost per pound ($/lb) 2.36 0.51
Add: Sustaining capital expenditure 50.3 27.6
Royalties 1.9 —
Reclamation and other closure
accretion and depreciation
2.7 2.1
Leases and other 0.3 0.2
All-in sustaining cost 126.9 68.5
AISC per pound ($/lb) 4.18 0.91
1 By-product credits are presented net of the associated treatment and refining charges.
===== SIDA 15 =====
Adjusted EBITDA can be reconciled to Net Earnings (Loss) as follows:
Three months ended
June 30,
Six months ended
June 30,
($ millions) 2025 2024 2025 2024
Net earnings — continuing operations 159.6 119.4 340.9 202.5
Add back:
Depreciation, depletion and amortization 159.3 159.2 297.4 308.6
Finance costs, net 20.4 33.2 64.3 66.4
Income taxes expense 69.6 47.3 120.4 104.0
EBITDA — continuing operations 408.9 359.0 823.0 681.4
Unrealized foreign exchange loss (gain) (1.5) 3.2 7.8 (11.6)
Unrealized losses (gains) on derivative contracts (10.7) (6.7) (46.7) 27.2
Ojos del Salado sinkhole expenses (recoveries) 0.1 0.7 1.2 (0.3)
Revaluation gain on marketable securities (2.1) (0.1) (1.6) (2.5)
Gain on partial disposal and contribution to Vicuña — — (3.0) —
Partial suspension of underground operations at Eagle — 9.8 — 9.8
Revaluation of Caserones purchase option — (12.4) — (11.7)
Write-down of assets — 17.2 — 17.2
Other 0.1 (0.8) 2.0 (1.0)
Total adjustments — EBITDA (14.2) 10.8 (40.4) 26.9
Adjusted EBITDA — continuing operations 394.7 369.9 782.6 708.3
Including discontinued operations:
Net earnings — discontinued operations 102.4 37.3 88.7 12.8
Add back:
Depreciation, depletion and amortization — 38.5 — 73.5
Finance costs, net 0.4 3.2 4.8 5.6
Income taxes expense (1.2) 8.8 5.3 2.7
EBITDA — discontinued operations 101.6 87.8 98.7 94.7
Unrealized foreign exchange loss (gain) 2.5 — 1.5 (0.7)
Unrealized losses (gains) on derivative contracts — 2.8 (0.1) 21.7
Asset impairment — — 65.7 —
Gain on disposal of subsidiaries (106.4) — (106.4) —
Contingent consideration revaluation 3.1 — 3.1 —
Other 0.3 0.4 1.3 (0.4)
Total adjustments — EBITDA discontinued operations (100.6) 3.2 (34.8) 20.6
Adjusted EBITDA — discontinued operations 1.0 91.0 63.9 115.4
Adjusted EBITDA (all operations) 395.8 460.9 846.5 823.7
===== SIDA 16 =====
Adjusted Earnings and Adjusted EPS can be reconciled to Net Earnings (Loss) Attributable to Lundin Mining Shareholders
as follows:
Three months ended
June 30,
Six months ended
June 30,
($ millions, except share and per share amounts) 2025 2024 2025 2024
Net earnings attributable to Lundin Mining shareholders —
continuing operations
126.1 84.3
264.1 122.7
Add back:
Total adjustments - EBITDA (14.2) 10.8 (40.4) 26.9
Tax effect on adjustments 0.2 3.8 (4.5) 6.2
Deferred tax expense due to change in tax rate — — — —
Recognition of Caserones Tax Asset — — — —
Deferred tax arising from foreign exchange translation (13.5) (13.7) (34.7) (20.0)
Deferred tax arising from partial disposal and contribution to
Vicuña
— —
9.0
Non-controlling interest on adjustments (0.4) (1.8) (1.5) 4.0
Total adjustments (27.9) (0.9) (72.1) 17.1
Adjusted earnings — continuing operations 98.2 83.4 192.1 139.7
Including discontinued operations:
Net earnings attributable to Lundin Mining shareholders -
discontinued operations1 102.4 37.3 88.7 12.8
Add back:
Total adjustments - EBITDA - discontinued operations (100.6) 3.2 (34.8) 20.6
Tax effect on adjustments (0.2) (1.8) 0.1 (6.0)
Total adjustments (100.7) 1.4 (34.7) 14.7
Adjusted earnings — discontinued operations 1.7 38.7 53.9 27.6
Adjusted earnings (all operations) 99.9 122.1 246.1 167.3
Basic weighted average number of shares outstanding 856,788,215 776,173,888 854,532,557 774,033,611
Net earnings attributable to Lundin Mining shareholders -
continuing operations
0.15 0.11 0.31 0.16
Total adjustments (0.03) — (0.08) 0.02
Adjusted EPS — continuing operations 0.11 0.11 0.22 0.18
Net earnings attributable to Lundin Mining shareholders -
discontinued operations 0.12 0.05 0.10 0.02
Total adjustments (0.12) — (0.04) 0.02
Adjusted EPS — discontinued operations — 0.05 0.06 0.04
Net earnings attributable to Lundin Mining shareholders 0.27 0.16 0.41 0.18
Total adjustments (0.15) — (0.13) 0.04
Adjusted EPS (all operations) 0.12 0.16 0.29 0.22
1 Represents Net earnings attributable to Lundin Mining Corporation shareholders less Net earnings from continuing operations
attributable to Lundin Mining Corporation shareholders.
===== SIDA 17 =====
Free Cash Flow from Operations and Free Cash Flow can be reconciled to Cash provided by Operating Activities on the
Company's Condensed Interim Consolidated Statements of Cash Flows as follows:
Three months ended
June 30,
Six months ended
June 30,
($ millions) 2025 2024 2025 2024
Cash provided by operating activities related to continuing
operations
314.6 440.0 436.9 672.3
Sustaining capital expenditures (115.9) (126.6) (228.5) (303.1)
General exploration and business development 12.4 11.3 24.2 22.1
Free cash flow from operations — continuing operations 211.1 324.7 232.6 391.3
General exploration and business development (12.4) (11.3) (24.2) (22.1)
Expansionary capital expenditures (33.7) (87.1) (96.6) (143.1)
Free cash flow — continuing operations 165.0 226.3 111.8 226.1
Cash provided by operating activities related to discontinued
operations
20.0 51.8 74.5 87.0
Sustaining capital expenditures (9.1) (41.2) (58.1) (78.0)
General exploration and business development 0.6 2.3 5.4 4.9
Free cash flow from operations — discontinued
operations
11.5 12.9 21.8 13.9
General exploration and business development (0.6) (2.3) (5.4) (4.9)
Free cash flow — discontinued operations 10.9 10.6 16.4 9.0
Free cash flow from operations (all operations) 222.6 337.6 254.4 405.2
Free cash flow (all operations) 175.9 236.9 128.2 235.1
===== SIDA 18 =====
Adjusted Operating Cash Flow and Adjusted Operating Cash Flow per Share can be reconciled to Cash Provided by
Operating Activities on the Company's Condensed Interim Consolidated Statements of Cash Flows as follows:
Three months ended
June 30,
Six months ended
June 30,
($ millions, except share and per share amounts) 2025 2024 2025 2024
Cash provided by operating activities related to continuing
operations
314.6 440.0 436.9 672.3
Changes in non-cash working capital items (37.4) (148.8) 177.3 (87.0)
Adjusted operating cash flow — continuing operations 277.2 291.2 614.2 585.3
Cash provided by operating activities related to discontinued
operations
20.0 51.8 74.5 87.0
Changes in non-cash working capital items (17.8) 26.9 (16.7) 11.3
Adjusted operating cash flow — discontinued operations 2.2 78.7 57.8 98.3
Adjusted operating cash flow (all operations) 279.4 369.9 672.0 683.6
Basic weighted average number of shares outstanding 856,788,215 776,173,888 854,532,557 774,033,611
Adjusted operating cash flow per share — continuing
operations
$ 0.32 0.38 $ 0.72 0.76
Adjusted operating cash flow per share — discontinued
operations
$ 0.00 0.10 $ 0.06 0.13
Adjusted operating cash flow per share (all operations) $ 0.33 0.48 $ 0.79 0.89
===== SIDA 19 =====
Net debt and net debt excluding lease liabilities can be reconciled to Debt and Lease Liabilities, Current Portion of Debt
and Lease Liabilities and Cash and Cash Equivalents on the Company's Condensed Interim Consolidated Balance Sheets as
follows:
($ millions), continuing operations June 30, 2025 December 31, 2024
Debt and lease liabilities (415.1) (1,610.9)
Current portion of debt and lease liabilities (239.9) (395.2)
Less deferred financing fees (netted in above) (4.5) (7.7)
Add debt and lease liabilities related to liabilities classified as held-for-sale — (16.3)
(659.5) (2,030.1)
Cash and cash equivalents 279.3 357.5
Add cash and cash equivalents related to assets classified as held-for-sale — 74.8
Net debt (380.2) (1,597.8)
Lease liabilities 245.1 249.1
Lease liabilities related to liabilities classified as held-for-sale — 16.3
Net debt excluding lease liabilities (135.1) (1,332.4)
Cautionary Statement on Forward-Looking Information
Certain of the statements made and information contained herein are “forward -looking information” within the meaning of applicable Canadian securities laws. All
statements other than statements of historical facts included in this document constitute forward -looking information, including but not limited to statements
regarding the Company’s plans, prospects, business strategies and strategic vision and aspirations and their achievement and timing; the Company’s guidance on the
timing and amount of future production and its expectations regarding the results of operations; expected financial performan ce, including expected costs and
expenditures and other financial metrics; expected metal prices and foreign exchange rates; the Company’s growth and optimiza tion initiatives and expansionary
projects, and the potential costs, outcomes, results and impacts thereof and timing thereof; permitting requirements and time lines; timing and possible outcome of
pending litigation; the results of any Preliminary Economic Assessment, Pre -Feasibility Study, Feasibility Study, or Mineral Resource and Mineral Reserve estimations,
life of mine estimates, and mine and mine closure plans; anticipated market prices of metals, currency exchange rates and int erest rates; the Company’s shareholder
distribution policy, including with respect to share buybacks and the payment and amount of dividends and the timing thereof; the development and implementation
of the Company’s Responsible Mining Management System; the Company’s liquidity, contractual obligations, commitments and cont ingencies, and the Company’s
capital resources and adequacy thereof; the Company’s ability to comply with contractual and permitting or other regulatory r equirements; anticipated exploration
and development activities, including potential outcomes, results, impacts and timing thereof; the Company’s integration of a cquisitions and expansions and any
anticipated benefits thereof, including the anticipated project development and other plans and expectations with respect to the Vicuña Project and the 50/50 joint
arrangement with BHP; mineral resource estimation for the Vicuña Project, including the parameters and assumptions related th ereto; the operation of Vicuña with
BHP; the realization of synergies and economies of scale in the Vicuña district; the development and future operation of the Vicuña Project; the timing and expectations
for future studies and technical reports with respect to the Company’s operations and projects, including the Vicuña Project and the Saúva Project; the potential for
resource expansion; the terms of the contingent payments in respect of the completion of the sale of the Company’s European a ssets and expectations related thereto;
the earn-in arrangement in respect of the Boulderdash properties, including the entering into of an option agreement in respect thereo f and the terms of such option
agreement; future actions taken by Talon Metals Corp. and Lundin Mining in relation to the Boulderdash properties and the out comes and anticipated benefits
thereof; and expectations for other economic, business, and/or competitive factors. Words such as “believe”, “expect”, “antic ipate”, “contemplate”, “target”, “plan”,
“goal”, “aim”, “intend”, “continue”, “budget”, “estimate”, “may”, “will”, “can”, “could”, “should”, “schedule” and similar ex pressions identify forward-looking information.
Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation, the expectatio ns and beliefs of management,
including that the Company can access financing, appropriate equipment and sufficient labour; assumed and future price of cop per, gold, zinc, nickel and other
metals; anticipated costs; currency exchange rates and interest rates; ability to achieve goals; the prompt and effective int egration of acquisitions and the realization of
synergies and economies of scale in connection therewith; that the political, economic, permitting and legal environment in w hich the Company operates will continue
to support the development and operation of mining projects; timing and receipt of governmental, regulatory and third party a pprovals, consents, licenses and
permits and their renewals; positive relations with local groups; the accuracy of Mineral Resource and Mineral Reserve estima tes and related information, analyses
and interpretations; and such other assumptions as set out herein as well as those related to the factors set forth below. Wh ile these factors and assumptions are
considered reasonable by Lundin Mining as at the date of this document in light of management’s experience and perception of current conditions and expected
developments, such information is inherently subject to significant business, economic, political, regulatory and competitive uncertainties and contingencies. Known
and unknown factors could cause actual results to differ materially from those projected in the forward -looking information and undue reliance should not be placed
on such information. Such factors include, but are not limited to: dependence on international market prices and demand for t he metals that the Company produces;
political, economic, and regulatory uncertainty in operating jurisdictions, including but not limited to those related to per mitting and approvals, nationalization or
expropriation without fair compensation, environmental and tailings management, labour, trade relations, and transportation; operating jurisdictions, including but
not limited to those related to permitting and approvals, nationalization or expropriation without fair compensation, environ mental and tailings management, labour,
trade relations, and transportation; risks relating to mine closure and reclamation obligations; health and safety hazards; i nherent risks of mining, not all of which
related risk events are insurable; risks relating to tailings and waste management facilities; risks relating to the Company’ s indebtedness; challenges and conflicts that
may arise in partnerships and joint operations; risks relating to development projects, including Filo del Sol and Josemaria; risks that revenue may be significantly
impacted in the event of any production stoppages or reputational damage in Chile; the impact of global financial conditions, market volatility and inflation; business
interruptions caused by critical infrastructure failures; challenges of effective water management; exposure to greater forei gn exchange and capital controls, as well as
===== SIDA 20 =====
political, social and economic risks as a result of the Company’s operation in emerging markets; risks relating to stakeholde r opposition to continued operation,
further development, or new development of the Company’s projects and mines; any breach or failure information systems; risks relating to reliance on estimates of
future production; risks relating to litigation and administrative proceedings which the Company may be subject to from time to time; risks relating to acquisitions or
business arrangements; risks relating to competition in the industry; failure to comply with existing or new laws or changes in laws; challenges or defects in title or
termination of mining or exploitation concessions; the exclusive jurisdiction of foreign courts; the outbreak of infectious d iseases or viruses; risks relating to taxation
changes; receipt of and ability to maintain all permits that are required for operation; minor elements contained in concentr ate products; changes in the relationship
with its employees and contractors; the Company’s Mineral Reserves and Mineral Resources which are estimates only; uncertaint ies relating to inferred Mineral
Resources being converted into Measured or Indicated Mineral Resources; payment of dividends in the future; compliance with e nvironmental, health and safety laws
and regulations, including changes to such laws or regulations; interests of significant shareholders of the Company; asset v alues being subject to impairment charges;
potential for conflicts of interest and public association with other Lundin Group companies or entities; activist shareholde rs and proxy solicitation firms; risks
associated with climate change; the Company's common shares being subject to dilution; ability to attract and retain highly s killed employees; reliance on key
personnel and reporting and oversight systems; risks relating to the Company's internal controls; counterparty and customer c oncentration risk; risks associated with
the use of derivatives; exchange rate fluctuations; the terms of the contingent payments in respect of the completion of the sale of the Company’s European assets and
expectations related thereto; the earn -in arrangement in respect of the Boulderdash properties, including the entering into of an option agreement in respect thereo f
and the terms of such option agreement; future actions taken by Talon Metals Corp. and Lundin Mining in relation to the Bould erdash properties and the outcomes
and anticipated benefits thereof; and other risks and uncertainties, including but not limited to those described in the "Ris ks and Uncertainties” section of the
Company's MD&A for the three and six months ended June 30, 2025, the “Risks and Uncertainties” section of the Company’s MD&A for the year ended December 31,
2024, and the “Risks and Uncertainties” section of the Company’s Annual Information Form for the year ended December 31, 2024 , which are available on SEDAR+ at
www.sedarplus.ca under the Company’s profile.
All of the forward-looking information in this document is qualified by these cautionary statements. Although the Company has attempted to ident ify important factors
that could cause actual results to differ materially from those contained in forward -looking information, there may be other factors that cause results not to be as
anticipated, estimated, forecasted or intended and readers are cautioned that the foregoing list is not exhaustive of all fac tors and assumptions which may have been
used. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actu al results may vary materially from those
described in forward -looking information. Accordingly, there can be no assurance that forward -looking information will prove to be accurate and forward -looking
information is not a guarantee of future performance. Readers are advised not to place undue reliance on forward -looking information. The forward -looking
information contained herein speaks only as of the date of this document. The Company disclaims any intention or obligation t o update or revise forward ‐looking
information or to explain any material difference between such and subsequent actual events, except as required by applicable law.
===== SIDA 21 =====
Management’s Discussion and Analysis
For the three and six months ended June 30, 2025
This management’s discussion and analysis (“MD&A”) has been prepared as of August 6, 2025 and should be read in
conjunction with the Company’s condensed interim consolidated financial statements for the three and six months ended
June 30, 2025 , which were 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 Company’s presentation currency is United States (“US”) dollars. Reference herein of $ or USD is to
United States dollars, ARS is to Argentine pesos, BRL is to Brazilian reais, C$ is to Canadian dollars, CLP is to Chilean pesos, €
refers to euros, SEK is to Swedish kronor and oz is to troy ounces. "This quarter" or "The quarter" means the second quarter
("Q2") of 2025. "Year-to-date" or "Year-to-date period" means the six months ended June 30, 2025. Reference to
"discontinued operations" is to Neves-Corvo and Zinkgruvan. Minor differences may exist between individual figures and
totals due to rounding. Rounding differences do not impact the accuracy of information.
About Lundin Mining
Lundin Mining Corporation (“Lundin Mining” or the “Company”) is a diversified Canadian base metals mining company with
projects or operations focused in Argentina, Brazil, Chile and the United States of America, primarily producing copper, gold
and nickel. All operations are shown on a 100% basis except for the Vicuña Project, which is an independently managed
joint operation. The Company has included its 50% share of the respective assets, liabilities, expenses, and cash flows of the
Vicuña Project in the condensed interim consolidated financial statements for the three and six months ended June 30,
2025.
On December 9, 2024, the Company announced that it had entered into a definitive agreement with Boliden AB ("Boliden")
to sell its interest in the Neves-Corvo and Zinkgruvan mines located in Portugal and Sweden, respectively. The transaction
was completed on April 16, 2025. Prior to their disposal, these assets were reported as assets held for sale and their
associated liabilities as liabilities held for sale in the Company's consolidated financial statements and MD&A for the year
ended December 31, 2024. The results from these operations are reported as discontinued operations in the Company's
condensed interim consolidated financial statements for the three and six months ended June 30, 2025 . For further
information refer to Note 3 of those financial statements.
Table of Contents
Highlights ............................................................................................................................................................................... 1
Outlook .................................................................................................................................................................................. 6
Selected Quarterly Financial Information .............................................................................................................................. 8
Summary of Quarterly Results ............................................................................................................................................... 10
Revenue Overview ................................................................................................................................................................. 12
Financial Results ..................................................................................................................................................................... 16
Mining Operations ................................................................................................................................................................. 18
Vicuña Project ........................................................................................................................................................................ 30
Growth Projects ..................................................................................................................................................................... 31
Exploration Update ................................................................................................................................................................ 31
Liquidity and Capital Resources ............................................................................................................................................. 32
Non-GAAP and Other Performance Measures ...................................................................................................................... 36
Other Information and Advisories ......................................................................................................................................... 47
Outstanding Share Data ......................................................................................................................................................... 48
===== SIDA 22 =====
Cautionary Statement on Forward-Looking Information
Certain of the statements made and information contained herein are “forward-looking information” within the meaning of applicable Canadian securities laws. All statements
other than statements of historical facts included in this document constitute forward-looking information, including but not limited to statements regarding the Company’s
plans, prospects, business strategies and strategic vision and aspirations and their achievement and timing; the Company’s guidance on the timing and amount of future
production and its expectations regarding the results of operations; expected financial performance, including expected costs and expenditures and other financial metrics;
expected metal prices and foreign exchange rates; the Company’s growth and optimization initiatives and expansionary projects, and the potential costs, outcomes, results and
impacts thereof and timing thereof; permitting requirements and timelines; timing and possible outcome of pending litigation; the results of any Preliminary Economic
Assessment, Pre-Feasibility Study, Feasibility Study, or Mineral Resource and Mineral Reserve estimations, life of mine estimates, and mine and mine closure plans; anticipated
market prices of metals, currency exchange rates and interest rates; the Company’s shareholder distribution policy, including with respect to share buybacks and the payment
and amount of dividends and the timing thereof; the development and implementation of the Company’s Responsible Mining Management System; the Company’s liquidity,
contractual obligations, commitments and contingencies, and the Company’s capital resources and adequacy thereof; the Company’s ability to comply with contractual and
permitting or other regulatory requirements; anticipated exploration and development activities, including potential outcomes, results, impacts and timing thereof; the
Company’s integration of acquisitions and expansions and any anticipated benefits thereof, including the anticipated project development and other plans and expectations with
respect to the Vicuña Project and the 50/50 joint arrangement with BHP; mineral resource estimation for the Vicuña Project, including the parameters and assumptions related
thereto; the operation of Vicuña with BHP; the realization of synergies and economies of scale in the Vicuña district; the development and future operation of the Vicuña Project;
the timing and expectations for future studies and technical reports with respect to the Company’s operations and projects, including the Vicuña Project and the Saúva Project;
the potential for resource expansion; the terms of the contingent payments in respect of the completion of the sale of the Company’s European assets and expectations related
thereto; the earn-in arrangement in respect of the Boulderdash properties, including the entering into of an option agreement in respect thereof and the terms of such option
agreement; future actions taken by Talon Metals Corp. and Lundin Mining in relation to the Boulderdash properties and the outcomes and anticipated benefits thereof; and
expectations for other economic, business, and/or competitive factors. Words such as “believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “goal”, “aim”, “intend”,
“continue”, “budget”, “estimate”, “may”, “will”, “can”, “could”, “should”, “schedule” and similar expressions identify forward-looking information.
Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation, the expectations and beliefs of management, including
that the Company can access financing, appropriate equipment and sufficient labour; assumed and future price of copper, gold, zinc, nickel and other metals; anticipated costs;
currency exchange rates and interest rates; ability to achieve goals; the prompt and effective integration of acquisitions and the realization of synergies and economies of scale
in connection therewith; that the political, economic, permitting and legal environment in which the Company operates will continue to support the development and operation
of mining projects; timing and receipt of governmental, regulatory and third party approvals, consents, licenses and permits and their renewals; positive relations with local
groups; the accuracy of Mineral Resource and Mineral Reserve estimates and related information, analyses and interpretations; and such other assumptions as set out herein as
well as those related to the factors set forth below. While these factors and assumptions are considered reasonable by Lundin Mining as at the date of this document in light of
management’s experience and perception of current conditions and expected developments, such information is inherently subject to significant business, economic, political,
regulatory and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-
looking information and undue reliance should not be placed on such information. Such factors include, but are not limited to: dependence on international market prices and
demand for the metals that the Company produces; political, economic, and regulatory uncertainty in operating jurisdictions, including but not limited to those related to
permitting and approvals, nationalization or expropriation without fair compensation, environmental and tailings management, labour, trade relations, and transportation;
operating jurisdictions, including but not limited to those related to permitting and approvals, nationalization or expropriation without fair compensation, environmental and
tailings management, labour, trade relations, and transportation; risks relating to mine closure and reclamation obligations; health and safety hazards; inherent risks of mining,
not all of which related risk events are insurable; risks relating to tailings and waste management facilities; risks relating to the Company’s indebtedness; challenges and conflicts
that may arise in partnerships and joint operations; risks relating to development projects, including Filo del Sol and Josemaria; risks that revenue may be significantly impacted
in the event of any production stoppages or reputational damage in Chile; the impact of global financial conditions, market volatility and inflation; business interruptions caused
by critical infrastructure failures; challenges of effective water management; exposure to greater foreign exchange and capital controls, as well as political, social and economic
risks as a result of the Company’s operation in emerging markets; risks relating to stakeholder opposition to continued operation, further development, or new development of
the Company’s projects and mines; any breach or failure information systems; risks relating to reliance on estimates of future production; risks relating to litigation and
administrative proceedings which the Company may be subject to from time to time; risks relating to acquisitions or business arrangements; risks relating to competition in the
industry; failure to comply with existing or new laws or changes in laws; challenges or defects in title or termination of mining or exploitation concessions; the exclusive
jurisdiction of foreign courts; the outbreak of infectious diseases or viruses; risks relating to taxation changes; receipt of and ability to maintain all permits that are required for
operation; minor elements contained in concentrate products; changes in the relationship with its employees and contractors; the Company’s Mineral Reserves and Mineral
Resources which are estimates only; uncertainties relating to inferred Mineral Resources being converted into Measured or Indicated Mineral Resources; payment of dividends
in the future; compliance with environmental, health and safety laws and regulations, including changes to such laws or regulations; interests of significant shareholders of the
Company; asset values being subject to impairment charges; potential for conflicts of interest and public association with other Lundin Group companies or entities; activist
shareholders and proxy solicitation firms; risks associated with climate change; the Company's common shares being subject to dilution; ability to attract and retain highly skilled
employees; reliance on key personnel and reporting and oversight systems; risks relating to the Company's internal controls; counterparty and customer concentration risk; risks
associated with the use of derivatives; exchange rate fluctuations; the terms of the contingent payments in respect of the completion of the sale of the Company’s European
assets and expectations related thereto; the earn-in arrangement in respect of the Boulderdash properties, including the entering into of an option agreement in respect thereof
and the terms of such option agreement; future actions taken by Talon Metals Corp. and Lundin Mining in relation to the Boulderdash properties and the outcomes and
anticipated benefits thereof; and other risks and uncertainties, including but not limited to those described in the "Risks and Uncertainties” section of this document, the “Risks
and Uncertainties” section of the Company’s MD&A for the year ended December 31, 2024, and the “Risks and Uncertainties” section of the Company’s Annual Information
Form for the year ended December 31, 2024, which are available on SEDAR+ at www.sedarplus.ca under the Company’s profile.
All of the forward-looking information in this document is qualified by these cautionary statements. Although the Company has attempted to identify important factors that
could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated,
estimated, forecasted or intended and readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Should one or
more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking
information. Accordingly, there can be no assurance that forward-looking information will prove to be accurate and forward-looking information is not a guarantee of future
performance. Readers are advised not to place undue reliance on forward-looking information. The forward-looking information contained herein speaks only as of the date of
this document. The Company disclaims any intention or obligation to update or revise forward-looking information or to explain any material difference between such and
subsequent actual events, except as required by applicable law.
===== SIDA 23 =====
Highlights
For the quarter ended June 30, 2025, the Company generated revenue from continuing operations of $937.2 million (Q2
2024 - $878.3 million).
Net earnings from continuing operations for the quarter of $159.6 million was higher than the prior year comparable
period of $119.4 million. Net earnings from continuing operations attributable to shareholders for the quarter was $126.1
million (Q2 2024 - $84.3 million). Strong revenues and gross profit in the quarter resulted in adjusted EBITDA 1 from
continuing operations of $394.7 million (Q2 2024 - $369.9 million). Adjusted earnings per share1 from continuing operations
in the quarter was $0.11 per share (Q2 2024 - $0.11 per share).
Cash provided by operating activities related to continuing operations in the quarter of $314.6 million (Q2 2024 -$440.0
million) and free cash flow 1 - continuing operations of $165.0 million (Q2 2024 - $226.3 million) benefitted from higher
gross profit and working capital inflows, but was also impacted by higher cash income taxes paid at Candelaria due to timing
of payments, combined with increased taxable income.
At June 30, 2025, the Company had net debt excluding lease liabilities 1 of $135.1 million (December 31, 2024 - $1,332.4
million). Net cash in Vicuña (defined below) is included on a 50% basis, representing Lundin Mining's attributable share.
On January 15, 2025, the Company and BHP Investments Canada Inc. ("BHP") completed the acquisition of Filo Corp. ("Filo")
through a plan of arrangement and concurrently formed a 50/50 joint arrangement, Vicuña Corp. (the "Joint Arrangement"
or “Vicuña”), holding the Josemaria project in Argentina and the Filo del Sol project in Argentina and Chile, collectively the
("Vicuña Project"). On completion, BHP paid Lundin Mining a cash consideration of $689.5 million for a 50% interest in the
Josemaria project and Lundin Mining paid $610.7 million (C$877.8 million) in cash and issued 94.1 million Lundin Mining
shares to Filo shareholders for its 50% interest in Filo. As a result of these transactions, net cash provided to the Company
was $78.8 million on the formation of Vicuña. The Company accounts for Vicuña as a joint operation and accordingly
records its 50% share of the assets, liabilities, revenue, expenses and cash flows.
On April 16, 2025, the Company completed the sale of its Neves-Corvo operation in Portugal and Zinkgruvan operation in
Sweden to Boliden. At closing, Lundin Mining received net cash proceeds of $1,314.6 million including cash consideration of
$1,402.0 million, net of cash disposed and transaction costs. In connection with the transaction, the Company may be
entitled to future contingent payments of up to $150.0 million if certain metal price thresholds are met. Upon completion
of the sale, the Company recognized a net gain on disposal of $106.4 million. On April 23, 2025, net cash proceeds from the
sale were used to repay in full the $1,150.0 million outstanding balance of the Company's term loan and to repay $170.0
million of amounts drawn on the Company's revolving credit facility ("RCF").
1
1 This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
===== SIDA 24 =====
Operational Performance
Candelaria (80% owned): Candelaria produced 36,999 tonnes of copper and 20,574 ounces of gold in concentrate on a
100% basis during the quarter. Production in the quarter and year-to-date periods were positively impacted by increased
throughput as a result of softer ore feed and higher ball mill runtime due to rescheduled maintenance in the quarter.
Mining and processing in the quarter was focused on Phase 11 with some contribution from higher grade areas of Phase 12.
Cash cost1 of $1.81/lb during the quarter was positively impacted by higher production and favourable foreign exchange.
Caserones (70% owned): Caserones produced 29,290 tonnes of copper and 380 tonnes of molybdenum on a 100% basis
during the quarter. Production in the quarter was impacted by lower grades as a result of mine sequencing with mining
focused on Phases 6 and 7 as mining of Phase 5 nears completion. Throughput was impacted slightly by a temporary
reduction in primary crusher availability during the quarter and copper cathode production benefitted from increased
material placed on the leach pad. Cash cost of $2.45/lb in the quarter benefitted from lower mining and milling costs, as
well as lower treatment and refining charges and favorable foreign exchange.
Chapada (100% owned): Chapada produced 11,274 tonnes of copper and 17,544 ounces of gold in concentrate during the
quarter. Ore from the North and South open pits was mined and processed, resulting in higher grades as compared to the
prior quarter which focused on processing ore from the older low-grade stockpile. Cash cost of $0.75/lb was the lowest
amount since 2021, and benefitted from higher gold by-product credits as a result of higher realized gold prices, combined
with favourable foreign exchange and higher copper sales volume.
Eagle (100% owned): Eagle produced 2,713 tonnes of nickel and 2,510 tonnes of copper in the quarter . Production was
impacted by a temporary reduction in equipment availability and reduced throughput as a result of an unplanned four-day
power outage. Production gradually increased to normal levels following the completion of ramp rehabilitation at Eagle East
in the previous quarter. Nickel cash cost1 of $2.02/lb was positively impacted by higher by-product credits and higher nickel
sales volumes.
Total Productiona
2025 2024
YTD Q2 Q1 Total Q4 Q3 Q2 Q1
Continuing Operations
Copper (t)b 156,847 80,073 76,774 336,875 94,094 91,772 71,614 79,395
Gold (oz)b 69,967 38,118 31,849 158,436 46,456 46,712 32,439 32,829
Nickel (t) 5,009 2,713 2,296 7,486 1,617 893 1,721 3,255
Molybdenum (t)b 982 380 602 3,183 912 693 714 864
Discontinued OperationsC
Copper (t) 8,319 1,225 7,094 32,192 7,397 8,083 8,094 8,618
Zinc (t) 58,233 9,285 48,948 191,704 51,946 46,610 47,460 45,688
a - Tonnes (t) and ounces (oz).
b - Candelaria and Caserones production are on a 100% basis.
c - Discontinued operations results are to April 16, 2025.
2
1 This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
===== SIDA 25 =====
Corporate Updates
• On June 16, 2025, the Company announced the filing of a technical report entitled “NI 43-101 Technical Report on the
Vicuña Project, Argentina and Chile”, with an effective date of April 15, 2025 (the Vicuña Technical Report") . On May 4,
2025, the Company announced an initial Mineral Resource estimate for the Filo del Sol sulphide deposit , an update to
the Mineral Resource estimate for the Filo del Sol oxide deposit and an update to the Mineral Resource estimate for
the Josemaria deposit (collectively referred to as the “Vicuña Mineral Resource”), which highlighted the combined
Vicuña Project as one of the largest copper, gold and silver resources in the world. Details of the Vicuña Mineral
Resource are set out in the Vicuña Technical Report. The resource contains:
◦ Contained copper of 13 million tonnes (“Mt”) Measured and Indicated (“M&I”) at 0.35% copper and 25 Mt
Inferred at 0.32% copper.
◦ Contained gold of 32 million ounces (“Moz”) M&I at 0.27 g/t gold and 49 Moz Inferred at 0.19 g/t gold.
◦ Contained silver of 659 Moz M&I at 5.6 g/t silver and 808 Moz Inferred at 3.2 g/t silver.
• On May 26, 2025, the Company announced the publication of its 2024 Sustainability Report which highlights the
Company’s environmental, health & safety, governance and social performance during the year. In 2024, the Company
advanced key greenhouse gas ("GHG") emission reduction initiatives, fully conformed to the Global Industry Standard
on Tailings Management ("GISTM") at Caserones' tailings facility, invested approximately $6.6 million in communities,
and had its second-best year on record in terms of Total Recordable Injury Frequency and All Injury Frequency.
• On April 16, 2025, the Company announced the completion of the sale of its Neves-Corvo operation in Portugal and
Zinkgruvan operation in Sweden to Boliden. At closing, Lundin Mining received net cash proceeds of $1,314.6 million
including cash consideration of $1,402.0 million, net of cash disposed and transaction costs. The Company may also
receive up to $150.0 million in contingent cash consideration if certain metal price thresholds are met. The Company
used a portion of the cash proceeds to repay in full the $1,150.0 million outstanding balance of its term loan, previously
maturing in 2027.
• On March 26, 2025, the Company announced that its Board of Directors amended the shareholder distribution policy to
increase the level of share buybacks while adjusting the dividend to maintain the total amount returned to
shareholders annually. As part of this strategy, the Company adjusted its quarterly dividend from C$0.09 per share to
C$0.0275 per share while allocating up to approximately $150 million per annum in share buybacks through the
Company’s normal course issuer bid program. If the Company allocates less than $150 million in share buybacks in a
calendar year, the shortfall will be distributed as a special dividend. If applicable, the special dividend will be paid
alongside the regular fourth quarter dividend.
• On March 5, 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.
• On February 19, 2025, the Company announced the appointment of Ms. Victoria McMillan to the Company's Board of
Directors effective the same date. The Company also announced the retirement of Director Ms. Juliana Lam effective as
at the 2025 annual general meeting of shareholders on May 8, 2025.
• On February 12, 2025, the Company reported its Mineral Resource and Mineral Reserve estimates as at December 31,
2024 (or as otherwise specified). On a 100% consolidated basis, the estimated Proven and Probable Mineral Reserve of
contained copper is 10,872 kilotonnes (“kt”) an increase of 242 kt over the previous year. Lundin Mining also has
significant Proven and Probable Mineral Reserves in other base and precious metals including 2,429 kt of zinc, 42 kt of
nickel, 14.3 Moz of gold, and 282.0 Moz of silver.
• On January 30, 2025, the Company announced that it received notice from the Superintendencia del Medio Ambiente
("SMA") following investigative proceedings involving the sinkhole that occurred at the Alcaparrosa mine located in the
Candelaria complex in 2022. The notice levies a fine of $3.3 million and orders the continued closure of the Alcaparrosa
mine, based on four violations investigated. Mining operations at Alcaparrosa have been suspended since the incident
occurred in 2022 while operations at the Candelaria mine continue unaffected.
3
===== SIDA 26 =====
• On January 15, 2025, the Company and BHP completed the joint acquisition of all of the issued and outstanding
common shares of Filo not already owned by Lundin Mining, BHP and their respective affiliates (the “Filo Acquisition”).
Concurrently, Lundin Mining and BHP formed Vicuña. On completion, BHP paid Lundin Mining a cash consideration of
$689.5 million for a 50% interest in the Josemaria project and Lundin Mining paid $610.7 million (C$877.8 million) in
cash and 94.1 million Lundin Mining shares to Filo shareholders for its 50% interest in Filo.
Financial Performance
• Gross profit from continuing operations for the quarter of $271.3 million was $42.8 million higher than in the prior year
comparable period of $228.5 million. The increase was primarily due to higher sales volume, lower treatment charges,
and cost savings from operational efficiencies. On a year-to-date basis, gross profit from continuing operations was
$580.2 million, an increase of $154.1 million from the prior year comparable period of $426.1 million. The increase in
the year-to-date period was primarily a result of higher copper and gold prices, lower treatment charges, lower
depreciation, and higher sales volume.
• Net earnings from continuing operations for the quarter of $159.6 million was higher than in the prior year comparable
period of $119.4 million. The increase was primarily due to an increase in gross profit combined with lower interest
expense due to the repayment of debt in the quarter with cash proceeds received from the sale of the Neves-Corvo
and Zinkgruvan operations. Net earnings from continuing operations for the year-to-date period of $340.9 million was
higher than in the prior year comparable period of $202.5 million also primarily due to higher gross profit.
• Adjusted earnings1 from continuing operations for the quarter and year-to-date periods of $98.2 million and $192.1
million, respectively, increased from $83.4 million and $139.7 million in the prior year comparable periods primarily as
a result of higher gross profit.
• Cash provided by operating activities related to continuing operations for the quarter of $314.6 million represented a
decrease of $125.4 million from the prior year comparable period of $440.0 million. The decrease was primarily due to
significant cash income taxes paid in the quarter of $168.0 million (Q2 2024 - $47.1 million), primarily at Candelaria,
and a reduction in working capital inflows of $111.4 million to $37.4 million from $148.8 million in the prior year
comparable period. On a year-to-date basis, cash provided by operating activities related to continuing operations of
$436.9 million was lower than in the prior year comparable period of $672.3 million primarily due to negative working
capital changes in the first half of 2025 due to a build up of trade receivables and increases in cash income taxes paid at
Candelaria.
• In the quarter, sustaining capital expenditures2 from continuing operations of $115.9 million were slightly lower than in
the prior year comparable period of $126.6 million. The reduction was primarily due to lower spending at Candelaria
from reduced deferred stripping. Sustaining capital expenditures from continuing operations for the year-to-date
period of $228.5 million were lower than in the prior year comparable period of $303.1 million primarily due to
reduced deferred stripping and lower spending on mine equipment at Candelaria.
• Expansionary capital expenditures1 of $33.7 million and $96.6 million in the quarter and year-to-date periods,
respectively, were lower than $87.1 million and $143.1 million in the prior year comparable periods due to the
formation of Vicuña on January 15, 2025. From this date, the Company's expansionary capital expenditures include 50%
of Vicuña's capital expenditures.
• Free cash flow1 from continuing operations for the quarter of $165.0 million was lower than in the prior year
comparable period of $226.3 million primarily due to reduced cash provided by operating activities related to
continuing operations, partially offset by lower sustaining and expansionary capital expenditures. Free cash flow from
continuing operations for the year-to-date period of $111.8 million was lower than in the prior year comparable period
of $226.1 million due to reduced cash provided by operating activities related to continuing operations, partially offset
by lower spending on sustaining and expansionary capital expenditures.
4
1 This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
2 This is a supplementary financial measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
===== SIDA 27 =====
• The operating results of the Neves-Corvo and Zinkgruvan reporting segments are reported as net earnings from
discontinued operations. Net earnings from discontinued operations for the quarter of $102.4 million includes a gain
on disposal of $106.4 million, net of income tax.
Financial Position and Financing
• Cash and cash equivalents related to continuing operations as at June 30, 2025 were $279.3 million and cash provided
by operating activities related to continuing operations was $314.6 million in the quarter. Cash provided by investing
activities related to continuing operations was $1,159.4 million, which included net cash proceeds of $1,314.6 million
from the sale of the Neves-Corvo and Zinkgruvan operations, partially offset by $157.5 million investment in mineral
properties, plant and equipment. These cash inflows were used to fund financing activities related to continuing
operations of $1,630.6 million, primarily to repay in full the $1,150.0 million outstanding balance of the Company's
term loan and to repay $300.0 million of amounts drawn on the RCF.
• As at June 30, 2025, the Company had net debt 1 of $380.2 million and net debt excluding lease liabilities of $135.1
million. As at August 6, 2025 , the Company had cash of approximately $276 million and net debt excluding lease
liabilities1 of approximately $139 million.
5
1 This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
===== SIDA 28 =====
2025 Outlook
The Company remains on track to meet annual production guidance for all metals. In light of higher gold prices, the cash
cost guidance range for Chapada is further reduced from that announced on June 17, 2025.
At Candelaria, production in the second half of the year is expected to be in line with the first half of the year to meet the
Company's annual production guidance for 2025. Cash costs at Candelaria are tracking to the mid-point of guidance for the
full year.
At Caserones, higher copper head grades anticipated in the second half of the year, together with strong cathode
production are expected to sustain the Company's annual production guidance for 2025.
At Chapada, production is expected to be weighted to the second half of the year as copper grades and recoveries in the
second half of the year are expected to remain in line with the second quarter. Mine sequencing is expected to result in
processing increased fresh ore from the North and South pits and less lower-grade stockpile material. Cash costs are
expected to continue to benefit from higher gold prices, leading to a further reduction in annual guidance as compared to
that previously announced by the Company (see News Release dated June 17, 2025).
At Eagle, grades and mining rates are expected to normalize in the second half of the year, supporting annual production
guidance. Mining at the Eagle deposit is expected to be completed towards the end of the year and higher grade ore from
Eagle East will be sourced.
See below for revised 2025 Guidance:
2025 Production and Cash Cost Guidance
Guidancea Revised Guidance
(contained metal) Production Cash Cost ($/lb)b Production Cash Cost ($/lb)b
Copper (t) Candelaria (100%) 140,000 – 150,000 1.60 – 1.80c 140,000 – 150,000 1.80 – 2.00c
Caserones (100%) 115,000 – 125,000 2.40 – 2.60 115,000 – 125,000 2.40 – 2.60
Chapada 40,000 – 45,000 1.30 – 1.50d 40,000 – 45,000 1.10 – 1.30d
Eagle 8,000 – 10,000 8,000 – 10,000
Total 303,000 – 330,000 1.95 – 2.15 303,000 – 330,000 1.95 – 2.15
Gold (oz) Candelaria (100%) 78,000 – 88,000 78,000 – 88,000
Chapada 57,000 – 62,000 57,000 – 62,000
Total 135,000 – 150,000 135,000 – 150,000
Nickel (t) Eagle 8,000 – 11,000 3.05 – 3.25 8,000 – 11,000 3.05 – 3.25
a. Guidance as outlined in the news release "Lundin Mining Highlights Strategic Vision and Financial Outlook for Leading Growth and Shareholder
Returns" dated June 17, 2025.
b. 2025 cash costs are based on various assumptions and estimates, including but not limited to: production volumes, commodity prices (Cu: $4.40/lb,
Au: $3,000/oz, Mo: $20.00/lb, Ag: $30.00/oz), foreign exchange rates (USD/CLP:950, USD/BRL:5.75) and operating costs. Cash cost is a non-GAAP
measure - see section 'Non-GAAP and Other Performance Measures' of this MD&A for discussion.
c. 68% of Candelaria's total gold and silver production are subject to a streaming agreement. Cash costs are calculated based on receipt of approximately
$433/oz gold and $4.32/oz silver.
d. Chapada's cash cost is calculated on a by-product basis and does not include the effects of its copper stream agreements. Effects of the copper stream
agreements are reflected in copper revenue and will impact realized price per pound.
6
===== SIDA 29 =====
2025 Capital Expenditure Guidanceb,c
($ millions) Guidancea
Candelaria (100% basis) 205
Caserones (100% basis) 200
Chapada 100
Eagle 25
Other —
Total Sustaining 530
Expansionary - Candelaria (100% basis) 50
Expansionary - Vicuña Joint Arrangement (50% basis) 215
Total Capital Expenditures 795
a. Guidance as outlined in the news release "Lundin Mining Highlights Strategic Vision and Financial Outlook for Leading Growth and Shareholder
Returns" dated June 17, 2025.
b. Sustaining capital expenditure is a supplementary financial measure, and expansionary capital expenditure is a non-GAAP measure – see Section
"Non-GAAP and Other Performance Measures" of this MD&A for discussion.
c. Capital expenditures are based on various assumptions and estimates, including, but not limited to foreign currency exchange rates (USD/CLP: 950,
USD/BRL: 5.50)
2025 Exploration Investment Guidance
Total exploration expenditure guidance for 2025 remains at $40 million, which has potential to increase subject to
successful exploration results at the Boulderdash property. Drilling metres ("m") across the Company have been re-
allocated to account for the anticipated earn-in agreement with Talon and the Boulderdash property.
7
===== SIDA 30 =====
Selected Quarterly Financial Information
Three months ended
June 30,
Six months ended
June 30,
($ millions continuing operations except where noted) 2025 2024 2025 2024
Revenue 937.2 878.3 1,901.1 1,690.6
Costs of goods sold:
Production costs (506.6) (490.6) (1,023.5) (955.9)
Depreciation, depletion and amortization (159.3) (159.2) (297.4) (308.6)
Gross profit 271.3 228.5 580.2 426.1
Net earnings from continuing operations attributable to:
Lundin Mining shareholders 126.1 84.3 264.1 122.7
Non-controlling interests 33.5 35.1 76.8 79.8
Net earnings from continuing operations 159.6 119.4 340.9 202.3
Net earnings from discontinued operations1
102.4 37.3 88.7 12.8
Net earnings attributable to:
Lundin Mining shareholders 228.5 121.6 352.8 135.5
Non-controlling interests 33.5 35.1 76.8 79.8
Net earnings 262.0 156.7 429.6 215.3
Adjusted earnings2 (all operations) 99.9 122.1 246.1 167.3
Adjusted earnings2 — continuing operations 98.2 83.4 192.1 139.7
Adjusted earnings1,2 — discontinued operations 1.7 38.7 53.9 27.6
Adjusted EBITDA2 (all operations) 395.8 460.9 846.5 823.7
Adjusted EBITDA2 — continuing operations 394.7 369.9 782.6 708.3
Adjusted EBITDA1,2 — discontinued operations 1.0 91.0 63.9 115.4
Cash provided by operating activities (all operations) 334.6 491.8 511.4 759.3
Cash provided by operating activities related to continuing
operations
314.6 440.0 436.9 672.3
Cash provided by operating activities related to discontinued
operations1 20.0 51.8 74.5 87.0
Adjusted operating cash flow2 (all operations) 279.4 369.9 672.0 683.6
Adjusted operating cash flow2 — continuing operations 277.2 291.2 614.2 585.3
Adjusted operating cash flow1,2 — discontinued operations 2.2 78.7 57.8 98.3
Free cash flow from operations2 (all operations) 222.6 337.6 254.4 405.2
Free cash flow from operations2 — continuing operations 211.1 324.7 232.6 391.3
Free cash flow from operations1,2 — discontinued operations 11.5 12.9 21.8 13.9
Free cash flow2 (all operations) 175.9 236.9 128.2 235.1
Free cash flow2 — continuing operations 165.0 226.3 111.8 226.1
Free cash flow1,2 — discontinued operations 10.9 10.6 16.4 9.0
Capital expenditures3 — continuing operations 157.5 217.2 333.5 452.4
Capital expenditures2,3 — discontinued operations 9.1 41.2 58.1 78.0
1 Discontinued operations results are to April 16, 2025.
2 This is a non-GAAP measure - see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.
3 Capital expenditures are reported on a cash basis, as presented in the consolidated statement of cash flows.
8
===== SIDA 31 =====
Three months ended
June 30,
Year ended
June 30,
2025 2024 2025 2024
Per share amounts:
Basic and diluted earnings from continuing operations per
share ("EPS") attributable to shareholders 0.15 0.11 0.31 0.16
Basic and diluted earnings from discontinued operations per
share ("EPS") attributable to shareholders1 0.12 0.05 0.10 0.02
Basic total earnings per share ("EPS") attributable to
shareholders 0.27 0.16 0.41 0.18
Diluted total earnings per share ("EPS") attributable to
shareholders 0.27 0.16 0.41 0.17
Adjusted EPS2 (all operations) 0.12 0.16 0.29 0.22
Adjusted EPS2 — continuing 0.11 0.11 0.22 0.18
Adjusted EPS1,2 — discontinued 0.00 0.05 0.06 0.04
Adjusted operating cash flow per share2 (all operations) 0.33 0.48 0.79 0.89
Adjusted operating cash flow per share2 — continuing 0.32 0.38 0.72 0.76
Adjusted operating cash flow per share1,2 — discontinued 0.00 0.10 0.06 0.13
Dividends declared (C$/share) 0.03 0.09 0.12 0.18
($ millions) June 30, 2025
December 31,
2024
Total assets 9,871.2 10,406.7
Total debt and lease liabilities 655.0 2,006.2
Net debt excluding lease liabilities2 (135.1) (1,332.4)
1 Discontinued operations results are to April 16,2025.
2 This is a non-GAAP measure - see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.
9
===== SIDA 32 =====
Summary of Quarterly Results1
($ millions, except per share data) Q2-25 Q1-25 Q4-24 Q3-24 Q2-24 Q1-24 Q4-23 Q3-23
Revenue from continuing operations 937.2 963.9 858.9 873.1 878.3 812.3 893.4 798.7
Gross profit from continuing operations 271.3 308.9 250.6 266.2 228.5 197.5 177.8 166.9
Net earnings (loss) from continuing operations 159.6 181.4 (159.6) 110.6 119.4 83.0 40.4 10.4
- attributable to shareholders 126.1 138.1 (195.3) 84.0 84.3 38.3 12.5 (14.4)
Net earnings (loss) from discontinued
operations3
102.4 (13.8) (244.8) 17.2 37.3 (24.4) 26.3 11.5
Adjusted earnings2 (all operations) 99.9 146.2 119.2 72.5 122.1 45.2 79.7 85.3
Adjusted earnings2 from continuing operations 98.2 93.9 94.8 57.2 83.4 56.4 72.4 57.8
Adjusted earnings (loss)2,3 from discontinued
operations
1.7 52.2 24.4 15.3 38.7 (11.1) 7.3 27.5
Adjusted EBITDA2 (all operations) 395.8 450.8 425.6 457.7 460.9 362.9 419.7 415.1
Adjusted EBITDA2 - continuing operations 394.7 387.9 368.2 385.2 369.9 338.5 367.6 334.9
Adjusted EBITDA2,3 - discontinued operations 1.0 62.8 57.4 72.5 91.0 24.4 52.1 80.2
EPS - Basic and Diluted (all operations) 0.27 0.15 (0.57) 0.13 0.16 0.02 0.05 0.00
EPS - Basic and Diluted from continuing
operations
0.15 0.16 (0.25) 0.11 0.11 0.05 0.02 (0.02)
EPS - Basic and Diluted from discontinued
operations3
0.12 (0.02) (0.32) 0.02 0.05 (0.03) 0.03 0.02
Adjusted EPS2 (all operations) 0.12 0.17 0.15 0.09 0.16 0.06 0.10 0.11
Adjusted EPS2 - continuing operations 0.11 0.11 0.12 0.07 0.11 0.07 0.09 0.07
Adjusted EPS2,3 - discontinued operations 0.00 0.06 0.03 0.02 0.05 (0.01) 0.01 0.04
Cash provided by operating activities (all
operations)
334.6 177.0 620.3 139.3 491.8 267.5 306.1 303.8
Cash provided by operating activities related to
continuing operations
314.6 122.3 547.3 81.4 440.0 232.2 249.9 260.4
Cash provided by operating activities related to
discontinued operations3
20.0 54.7 73.0 57.9 51.8 35.4 56.2 43.4
Adjusted operating cash flow per share2 (all
operations)
0.33 0.46 0.40 0.39 0.48 0.41 0.47 0.41
Adjusted operating cash flow per share2 —
continuing operations
0.32 0.40 0.32 0.31 0.38 0.38 0.39 0.25
Adjusted operating cash flow per share2,3 —
discontinued operations
0.00 0.07 0.08 0.08 0.10 0.03 0.08 0.16
Capital expenditure4 from continuing
operations
157.5 176.0 191.3 163.6 217.2 235.2 205.3 203.5
Capital expenditure3,4 from discontinued
operations
9.1 49.1 35.2 41.8 41.2 36.8 38.6 39.7
1 The sum of quarterly amounts may differ from year-to-date results due to rounding.
2 This is a non-GAAP measure - see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.
3 Discontinued operation results for Q2 2025 are to April 16, 2025.
4 Capital expenditures are reported on a cash basis, as presented in the consolidated statement of cash flows.
10
===== SIDA 33 =====
On a quarterly basis, the Company's revenue, gross profit and net earnings can be impacted by metal prices, sales volumes
as a result of the timing of concentrate shipments, and provisional pricing adjustments on current and prior period
shipments.
In Q2 2025 the Company completed the sale of its Neves-Corvo and Zinkgruvan operations and recognized a gain on
disposal of $106.4 million. Results from these operations are reported as discontinued operations through to April 16, 2025.
Net loss from discontinued operations in Q4 2024 was impacted by a $291.2 million non-cash impairment to align the
carrying value of Neves-Corvo with expected cash consideration. As a result of the Euro strengthening in Q1 2025, net loss
from discontinued operations was impacted by a further $65.7 million non-cash impairment at Neves-Corvo to re-align its
carrying value with subsequent cash consideration.
Following the formation of Vicuña in Q1 2025, its financial results are accounted for at the Company's 50% share. In prior
quarters, the Josemaria project (now part of Vicuña) was wholly owned by the Company and reported at 100%.
Following the acquisition of a majority interest in the Caserones mine in July 2023, fair value adjustments of $32.2 million
and $7.8 million impacted production costs in Q3 2023 and Q4 2023, respectively, as in-process and concentrate inventory
measured at fair value at the acquisition date was sold.
An $800.0 million term loan was entered into in conjunction with the acquisition of a 51% interest in Caserones and was
subsequently increased by $350.0 million with funds used to acquire an additional 19% of Caserones in 2024. Higher debt
increased the Company's interest expense from Q3 2023 through Q1 2025, reducing net earnings. The term loan was repaid
in full after the sale of Neves-Corvo and Zinkgruvan in April 2025, reducing interest expense and benefiting net earnings in
Q2 2025.
In Q2 2024 a fall of ground occurred in the lower ramp at the Eagle mine, resulting in reduced mining rates through the
remainder of 2024 while ramp rehabilitation was completed. This resulted in lower revenue as well as $9.8 million, $14.8
million, and $11.4 million of overhead costs incurred in Q2 2024, Q3 2024 and Q4 2024, respectively, reducing net earnings.
In Q4 2024 net earnings from continuing operations were reduced by non-cash impairments including $104.9 million ($82.8
million net of tax) relating to the Eagle mine due to a decline in nickel prices and prolonged rehabilitation of the Eagle East
ramp, $93.4 million ($61.7 million net of tax) related to the Suruca gold deposit near Chapada following the removal of
reserves and $55.9 million ($41.6 million net of tax) due to the continued closure of the Alcaparrosa mine within the
Candelaria mining complex. These amounts were partially offset by a $28.3 million non-cash partial reversal of a previous
long-term ore stockpile inventory write-down at Chapada, as a result of higher market expectations for long-term copper
and gold prices.
In Q4 2024, a deferred tax recovery of $41.5 million was recorded at Caserones following a re-assessment of the estimated
future utilization of accumulated tax losses.
In the quarters presented, the Company has entered into derivative contracts for foreign currency, diesel, copper prices and
gold prices as part of its risk management strategy. Realized and unrealized gains and losses on derivative contracts and
foreign exchange and trading gains on debt and equity investments are recorded in other income and expense and impact
the Company's net earnings.
11
===== SIDA 34 =====
Revenue Overview
Sales Volumes by Payable Metal - Continuing Operations
2025 2024
YTD Q2 Q1 Total Q4 Q3 Q2 Q1
Copper (t)
Candelaria (100%) 71,577 36,603 34,974 158,017 49,052 45,430 29,999 33,536
Caserones (100%) 66,257 30,076 36,181 113,867 26,750 22,044 29,862 35,211
Chapada 18,630 10,284 8,346 39,615 10,200 12,380 8,293 8,742
Eagle 4,038 2,489 1,549 5,457 877 733 1,789 2,058
160,502 79,452 81,050 316,956 86,879 80,587 69,943 79,547
Gold (oz)
Candelaria (100%) 39,796 20,021 19,775 89,435 27,756 25,971 16,727 18,981
Chapada 24,431 14,402 10,029 57,777 14,660 18,775 12,368 11,974
64,227 34,423 29,804 147,212 42,416 44,746 29,095 30,955
Nickel (t)
Eagle 3,974 2,226 1,748 5,662 1,088 393 2,018 2,163
Molybdenum (t)
Caserones (100%) 1,017 389 628 3,056 944 581 695 836
Silver (koz)
Candelaria (100%) 792 395 397 1,799 557 511 331 400
Chapada 55 30 25 96 21 24 30 21
Eagle 2 — 2 8 1 (1) 7 1
849 425 424 1,903 579 534 368 422
12
===== SIDA 35 =====
Revenue Analysis
Three months ended June 30, Six months ended June 30,
by Mine 2025 2024 Change 2025 2024 Change
$ % $ % $ $ % $ % $
Candelaria (100%) 404.6 43 366.4 42 38.2 823.7 43 696.8 41 126.9
Caserones (100%) 322.7 34 336.5 38 (13.8) 708.6 37 662.8 39 45.9
Chapada 150.9 16 118.0 13 32.9 265.5 14 216.4 13 49.1
Eagle 59.1 6 57.4 7 1.6 103.3 5 114.7 7 (11.3)
Continuing Operations 937.2 878.3 58.9 1,901.1 1,690.6 210.5
Neves-Corvo 19.9 96 128.7 63 (108.8) 128.3 64 209.3 63 (81.0)
Zinkgruvan 0.8 4 76.6 37 (75.8) 72.4 36 120.7 37 (48.3)
Discontinued Operations1 20.7 205.3 (184.6) 200.7 330.0 (129.3)
1 Discontinued operations results are to April 16, 2025.
Three months ended June 30, Six months ended June 30,
by Metal 2025 2024 Change 2025 2024 Change
($ millions) $ % $ % $ $ % $ % $
Copper 764.1 82 724.8 83 39.3 1,572.4 83 1,388.4 82 184.0
Gold 99.6 11 58.4 7 41.2 186.8 10 116.0 7 70.7
Molybdenum 18.9 2 35.5 4 (16.6) 40.8 2 67.6 4 (26.8)
Nickel 32.7 3 37.6 4 (4.9) 60.1 3 76.4 5 (16.2)
Silver 12.9 1 11.6 1 1.3 27.1 1 21.7 1 5.4
Other 9.1 1 10.6 1 (1.5) 13.9 1 20.5 1 (6.6)
Continuing Operations 937.2 878.3 58.9 1,901.1 1,690.6 210.5
Revenue from continuing operations for the quarter of $937.2 million represented an increase of $58.9 million over the
prior year comparable period of $878.3 million primarily due to an increase in sales volumes and a decrease in treatment
charges, partially offset by lower realized copper prices. On a year-to-date basis, revenue of $1,901.1 million represented an
increase of $210.5 million from the prior year comparable period of $1,690.6 million primarily due to an increase in sales
volumes, higher realized copper and gold prices and lower treatment and refining charges.
Revenue from gold and silver for the quarter and year-to-date periods includes the partial recognition of an upfront
purchase price on the sale of precious metals streams for Candelaria, as well as the cash proceeds which amount to
approximately $433/oz for gold and $4.32/oz for silver. In addition, revenue from silver for the quarter and year-to-date
periods includes the partial recognition of an upfront purchase price on the sale of precious metals streams for Neves-Corvo
and Zinkgruvan, as well as cash proceeds which amount to between $4.50/oz for silver at Neves-Corvo and $4.75/oz for
silver at Zinkgruvan. Chapada’s copper revenue includes the recognition of deferred revenue from copper streams acquired
with the Chapada mine, as well as the cash proceeds of 30% of the market price of the copper sold under the streams,
which is limited to 7.9% of Chapada's total copper production.
Revenue is recorded using the metal price received for sales that settle during the reporting period. For sales that have not
been settled, an estimate is used based on the expected month of settlement and the forward price of the metal at the end
of the reporting period. The difference between the estimate and the final price received is recognized by adjusting revenue
in the period in which the sale is settled. Settlement dates can range from one to six months after shipment.
Provisionally Valued Revenue from Continuing Operations as of June 30, 2025
Metal Payable metal Valued at
Copper 112,897 t $4.49 /lb
Gold 26,930 oz $3,309 /oz
Nickel 763 t $6.84 /lb
Molybdenum 665 t $21.82 /lb
13
===== SIDA 36 =====
Quarterly Reconciliation of Realized Prices - Continuing Operations
Three months ended June 30, 2025
($ millions) Copper Gold Nickel Molybdenum Other Total
Revenue from contracts with customers1 755.9 114.2 33.9 16.7 25.5 946.2
Provisional pricing adjustments on current period
concentrate sales 22.2 5.1 0.1 0.3 5.7 33.4
Provisional pricing adjustments on prior period
concentrate sales (7.4) 0.4 (1.4) 1.9 0.8 (5.7)
770.7 119.7 32.6 18.9 32.0 973.9
Recognition of deferred revenue 12.2
Copper stream cash effect (3.8)
Gold stream cash effect (39.0)
Less: Treatment and refining charges (6.1)
Total Revenue 937.2
Payable Metal 79,452 t 34,423 oz 2,226 t 389 t
Current period sales ($/unit)2 $4.44 $3,466 $6.93 $19.85
Provisional pricing adjustments on prior period
concentrate sales ($/unit) $(0.04) $12 $(0.27) $2.18
Realized prices3,4 $4.40 /lb $3,478 /oz $6.66 /lb $22.03 /lb
Three months ended June 30, 2024
Copper Gold Nickel Molybdenum Other Total
Revenue from contracts with customers1 691.2 71.4 39.4 31.4 16.3 849.7
Provisional pricing adjustments on current period
concentrate sales (17.9) (1.6) (2.5) 1.4 1.8 (18.8)
Provisional pricing adjustments on prior period
concentrate sales 73.0 2.3 1.4 2.7 4.2 83.5
746.4 72.0 38.2 35.5 22.3 914.4
Recognition of deferred revenue 12.0
Copper stream cash effect (4.7)
Gold stream cash effect (21.1)
Less: Treatment & refining charges (22.3)
Total Revenue 878.3
Payable Metal 69,943 t 29,095 oz 2,018 t 695 t
Current period sales ($/unit)2 $4.37 $2,399 $8.28 $21.41
Provisional pricing adjustments on prior period
concentrate sales ($/unit) $0.47 $77 $0.31 $1.74
Realized prices3,4 $4.84 /lb $2,476 /oz $8.59 /lb $23.15 /lb
1. Revenue from contracts with customers before recognition of deferred revenue, gold and copper stream cash effects and treatment and refining
charges, each of which is presented separately in the table.
2. Includes revenue from contracts with customers and provisional pricing adjustments on current period concentrate sales.
3. This is a non-GAAP measure - see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.
4. The realized price for copper inclusive of the impact of streaming agreements for the three months ended June 30, 2025 is $4.38/lb (2024: $4.81/
lb). The realized price for gold inclusive of the impact of streaming agreements for the three months ended June 30, 2025 is $2,345/oz (2024: $1,751/
oz).
Due to volatility in commodity prices, significant variances may arise between average market prices and realized prices due
to the timing of sales in the period.
14
===== SIDA 37 =====
Year-to-Date Reconciliation of Realized Prices - Continuing Operations
Six months ended June 30, 2025
($ millions) Copper Gold Nickel Molybdenum Other Total
Revenue from contracts with customers1 1,515.4 199.5 61.4 41.8 65.5 1,883.6
Provisional pricing adjustments on current year
concentrate sales 43.7 13.1 0.2 (0.8) (1.6) 54.6
Provisional pricing adjustments on prior year
concentrate sales 38.7 7.0 (1.5) (0.3) (1.1) 42.9
1,597.8 219.5 60.1 40.8 62.8 1,981.1
Recognition of deferred revenue 28.5
Copper stream cash effect (12.4)
Gold stream cash effect (72.0)
Less: Treatment and refining charges (24.1)
Total Net Sales 1,901.1
Payable Metal 160,502 t 64,227 oz 3,974 t 1,017 t
Current period sales 2 $4.41 $3,309 $7.03 $18.31
Provisional pricing adjustments on prior year
concentrate sales 0.11 109 (0.17) (0.12)
Realized prices 3,4 $4.52 /lb $3,418 /oz $6.86 /lb $18.19 /lb
Six months ended June 30, 2024
Copper Gold Nickel Molybdenum Other Total
Revenue from contracts with customers1 1,373.2 136.7 74.5 70.3 37.7 1,692.4
Provisional pricing adjustments on current year
concentrate sales 24.8 4.4 (2.5) 1.5 5.1 33.2
Provisional pricing adjustments on prior year
concentrate sales 45.9 0.5 5.0 (4.2) 0.5 47.7
1,443.8 141.6 77.0 67.6 43.2 1,773.3
Recognition of deferred revenue 26.1
Copper stream cash effect (10.8)
Gold stream cash effect (42.0)
Less: Treatment & refining charges (55.9)
Total Revenue 1,690.6
Payable Metal 149,490 t 60,050 oz 4,181 t 1,531 t
Current period sales2 $4.24 $2,349 $7.81 $21.27
Provisional pricing adjustments on prior year
concentrate sales 0.14 9 0.54 (1.24)
Realized prices3,4 $4.38 /lb $2,358 /oz $8.35 /lb $20.03 /lb
1. Revenue from contracts with customers before recognition of deferred revenue, gold and copper stream cash effects and treatment and refining
charges, each of which is presented separately in the table.
2. Includes revenue from contracts with customers and provisional pricing adjustments on current year concentrate sales.
3. This is a non-GAAP measure - see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.
4. The realized price for copper inclusive of the impact of streaming agreements for 2025 is $4.48/lb (2024: $4.35/lb). The realized price for gold
inclusive of the impact of streaming agreements for 2025 is $2,298/oz (2024: $1,658/oz).
15
===== SIDA 38 =====
Financial Results
Production Costs
Production costs for continuing operations in the quarter were $506.6 million, an increase from $490.6 million in the prior
year comparable period. The increase was primarily attributable to higher sales volumes at all operations, partially offset by
favourable foreign exchange, which reduced production costs at Candelaria, Caserones and Chapada . On a year-to-date
basis, production costs were $1,023.5 million, an increase from $955.9 million in the prior year comparable period. This
increase is primarily attributable to higher sales volumes at Candelaria, Caserones and Chapada and higher contractor and
maintenance costs at Caserones, partially offset by favourable foreign exchange. Production costs for discontinued
operations in the quarter were $17.0 million (Q2 2024 - $115.9 million) and in the year-to-date period were $127.1 million
(2024 - $217.7 million) and include results to April 16, 2025.
Depreciation, Depletion and Amortization
Depreciation, depletion and amortization expense for continuing operations did not change significantly for the quarter
compared to the prior year comparable period and decreased on a year-to-date basis. At Eagle, depreciation decreased in
2025 following impairment in late 2024 of mineral properties and property, plant and equipment, that resulted in a lower
asset base for depreciation.
Depreciation, depletion & amortization Three months ended June 30, Six months ended June 30,
($ millions) 2025 2024 Change 2025 2024 Change
Candelaria 74.9 76.1 (1.1) 144.1 149.5 (5.3)
Caserones 56.5 54.5 2.0 102.3 106.2 (3.9)
Chapada 21.9 18.4 3.6 40.3 33.4 6.8
Eagle 5.9 10.0 (4.1) 10.4 19.1 (8.7)
Other 0.1 0.3 (0.1) 0.3 0.3 (0.1)
159.3 159.2 0.2 297.4 308.6 (11.2)
Finance Income and Costs
Total finance costs, net, of $20.4 million and $64.3 million for the quarter and year-to-date periods, respectively, decreased
from $33.1 million and $66.4 million in the prior year comparable periods. The decrease was primarily due to reduced
interest expense following the repayment in full of the $1,150.0 million outstanding balance of the term loan in April 2025,
using a portion of cash proceeds from the sale of the Neves-Corvo and Zinkgruvan operations.
Period end exchange rates having a meaningful impact on foreign exchange recorded for continuing operations as at June
30, 2025 were:
June 30, 2025 June 30, 2024 Change
Brazilian Real (USD:BRL) 5.46 5.56 (0.10)
Chilean Peso (USD:CLP) 936 951 (15)
Argentine Peso (USD:ARS) 1,194 912 282
16
===== SIDA 39 =====
The average exchange rates impacting continuing operations were:
Three months ended June 30, Six months ended June 30,
2025 2024 Change 2025 2024 Change
Brazilian Real (USD:BRL) 5.67 5.22 0.45 5.76 5.09 0.67
Chilean Peso (USD:CLP) 947 935 12 955 941 15
Argentine Peso (USD:ARS) 1,150 887 264 1,104 861 243
Three months ended
June 30, 2025 March 31, 2025 December 31, 2024
Brazilian Real (USD:BRL) 5.67 5.84 5.84
Chilean Peso (USD:CLP) 947 963 963
Argentine Peso (USD:ARS) 1,150 1,057 1,002
Income Taxes
Income tax (expense)/ recovery Three months ended June 30, Six months ended June 30,
($ millions, continuing operations) 2025 2024 Change 2025 2024 Change
Candelaria (59.8) (43.2) (16.6) (125.8) (82.7) (43.1)
Caserones (4.7) (18.4) 13.7 (9.8) (40.6) 30.8
Chapada 4.5 (30.9) 35.4 27.2 (28.6) 55.8
Eagle (0.6) 0.6 (1.2) (0.5) 1.9 (2.4)
Vicuña 0.8 50.6 (49.8) (8.8) 50.6 (59.4)
Other (9.8) (6.1) (3.8) (2.7) (4.6) 1.9
(69.6) (47.3) (22.3) (120.4) (104.0) (16.4)
Income taxes by classification Three months ended June 30, Six months ended June 30,
($ millions, continuing operations) 2025 2024 Change 2025 2024 Change
Current income tax (expense)/recovery (86.3) (50.4) (35.9) (134.4) (96.2) (38.2)
Deferred income tax (expense)/ recovery 16.7 3.1 13.6 14.0 (7.8) 21.8
(69.6) (47.3) (22.3) (120.4) (104.0) (16.4)
Current income tax expense in the quarter and year-to-date was higher than in the prior year comparable periods primarily
due to an increase in taxable income at Candelaria and foreign exchange fluctuations.
Deferred income tax recovery for the quarter and year-to-date periods increased from the prior year comparable periods,
primarily due to the utilization of losses at Caserones in the prior periods, and a deferred tax recovery at Chapada resulting
from the foreign exchange revaluation of non-monetary assets driven by the strengthening of the BRL against the USD as of
June 30, 2025. This increase was partially offset by an increase in deferred tax expense at Candelaria due to positive
provisional metal price adjustments. In addition, the deferred income tax recovery for the year-to-date period was also
offset by the recognition of a deferred tax liability associated with outside basis differences related to the Company's
investment in Vicuña.
17
===== SIDA 40 =====
Mining Operations
Production Overview
2025 2024
YTD Q2 Q1 Total Q4 Q3 Q2 Q1
Copper (t)
Candelaria (100%) 74,070 36,999 37,071 162,487 48,772 50,018 31,170 32,527
Caserones (100%) 57,999 29,290 28,709 124,761 31,737 29,033 29,775 34,216
Chapada 20,183 11,274 8,909 43,261 12,323 11,694 9,106 10,138
Eagle 4,595 2,510 2,085 6,366 1,262 1,027 1,563 2,514
Continuing Operations 156,847 80,073 76,774 336,875 94,094 91,772 71,614 79,395
Neves-Corvo1 7,348 1,225 6,123 28,228 7,139 6,698 7,347 7,044
Zinkgruvan1 971 — 971 3,964 258 1,385 747 1,574
Total 165,166 81,298 83,868 369,067 101,491 99,855 79,708 88,013
Zinc (t)
Neves-Corvo1 32,356 4,665 27,691 109,571 27,879 29,509 25,696 26,487
Zinkgruvan1 25,877 4,620 21,257 82,133 24,067 17,101 21,764 19,201
Total 58,233 9,285 48,948 191,704 51,946 46,610 47,460 45,688
Gold (oz)
Candelaria (100%) 41,574 20,574 21,000 93,021 27,842 28,835 17,679 18,665
Chapada 28,393 17,544 10,849 65,415 18,614 17,877 14,760 14,164
Total 69,967 38,118 31,849 158,436 46,456 46,712 32,439 32,829
Nickel (t)
Eagle 5,009 2,713 2,296 7,486 1,617 893 1,721 3,255
Molybdenum (t)
Caserones (100%) 982 380 602 3,183 912 693 714 864
Lead (t)
Neves-Corvo1 2,361 369 1,992 6,395 1,553 1,851 1,387 1,604
Zinkgruvan1 9,291 1,705 7,586 30,888 9,481 5,693 8,966 6,748
Total 11,652 2,074 9,578 37,283 11,034 7,544 10,353 8,352
Silver (koz)
Candelaria (100%) 880 431 449 1,985 598 605 367 415
Chapada 119 69 50 245 69 63 55 58
Eagle 15 5 10 35 7 3 17 8
Continuing Operations 1,014 505 509 2,265 674 671 439 481
Neves-Corvo1 534 75 459 1,876 494 425 433 524
Zinkgruvan1 737 152 585 2,513 637 537 699 640
Total 2,285 732 1,553 6,654 1,805 1,633 1,571 1,645
1 Neves-Corvo and Zinkgruvan results are to April 16, 2025.
18
===== SIDA 41 =====
Production Cost and Cash Cost Overview ($ millions, $/lb)
Three months ended
June 30,
Six months ended
June 30,
($ millions) 2025 2024 2025 2024
Candelaria
Production costs $186.1 $175.4 $358.2 $336.6
Gross cost 2.34 2.72 2.33 2.53
By-product1 (0.53) (0.54) (0.55) (0.51)
Cash Cost (Cu, $/lb)2 1.81 2.18 1.78 2.02
AISC (Cu, $/lb)2 2.53 3.22 2.49 3.28
Caserones
Production costs $204.7 $208.9 $448.7 $406.6
Gross cost 2.93 3.17 2.96 2.86
By-product1 (0.48) (0.57) (0.47) (0.51)
Cash Cost (Cu, $/lb)2 2.45 2.60 2.49 2.35
AISC (Cu, $/lb)2 3.34 3.58 3.35 3.28
Chapada
Production costs $75.0 $69.2 $138.5 $133.8
Gross cost 3.04 3.76 3.17 3.59
By-product1 (2.29) (1.71) (2.09) (1.56)
Cash Cost (Cu, $/lb)2 0.75 2.05 1.08 2.03
AISC (Cu, $/lb)2 2.24 3.72 2.55 3.75
Consolidated3
Production costs $465.8 $453.5 $945.3 $877.0
Gross cost 2.66 3.04 2.69 2.80
By-product1 (0.74) (0.69) (0.69) (0.63)
Cash Cost (Cu, $/lb)2 1.92 2.35 2.00 2.17
Eagle
Production costs $40.4 $37.7 $77.5 $78.2
Gross cost 7.40 7.70 7.79 7.80
By-product1 (5.38) (4.47) (4.93) (4.15)
Cash Cost (Ni, $/lb)2 2.02 3.23 2.86 3.65
AISC (Ni, $/lb)2 4.58 5.71 5.29 5.92
1 By-product is after related treatment and refining charges.
2 Cash Cost per pound sold and All-in Sustaining Cost per pound sold ("AISC") are non-GAAP measures, see the "Non-GAAP and Other Performance
Measures" section of this MD&A for discussion.
3 Consolidated Cash Cost includes primary copper producing assets from continuing operations.
19
===== SIDA 42 =====
Discontinued Operations Three months ended
June 30,
Six months ended
June 30,
($ millions) 2025 2024 2025 2024
Neves-Corvo1
Production costs 14.3 $83.1 90.2 $154.8
Gross cost 4.86 5.04 6.35 5.39
By-product2 (2.44) (3.34) (4.51) (3.03)
Cash Cost (Cu, $/lb)3 2.42 1.70 1.84 2.36
AISC (Cu, $/lb)3 2.51 3.46 3.89 4.18
Zinkgruvan1
Production costs 2.7 $32.7 $36.9 $62.8
Gross cost 0.95 1.07 0.97 1.09
By-product2 0.23 (0.68) (0.51) (0.58)
Cash Cost (Zn, $/lb)3 1.18 0.39 0.46 0.51
AISC (Zn, $/lb)3 3.85 0.74 1.13 0.91
1 Neves-Corvo and Zinkgruvan results are to April 16, 2025.
2 By-product is after related treatment and refining charges.
3 Cash Cost per pound sold and All-in Sustaining Cost per pound sold ("AISC") are non-GAAP measures, see the "Non-GAAP and Other Performance
Measures" section of this MD&A for discussion.
20
===== SIDA 43 =====
Candelaria (Chile)
Operating Statistics
2025 2024
(100% Basis) YTD Q2 Q1 Total Q4 Q3 Q2 Q1
Ore mined (kt) 19,938 9,721 10,217 36,728 12,673 10,784 8,155 5,116
Ore milled (kt) 15,504 7,752 7,752 29,186 7,600 7,183 7,094 7,309
Grade
Copper (%) 0.52 0.52 0.52 0.61 0.69 0.76 0.49 0.48
Gold (g/t) 0.12 0.12 0.12 0.15 0.17 0.18 0.12 0.11
Recovery
Copper (%) 91.8 92.0 91.6 91.8 93.1 92.1 89.5 91.9
Gold (%) 68.3 68.2 68.3 67.7 68.2 69.9 62.1 69.8
Production (contained metal)
Copper (t) 74,070 36,999 37,071 162,487 48,772 50,018 31,170 32,527
Gold (oz) 41,574 20,574 21,000 93,021 27,842 28,835 17,679 18,665
Silver (koz) 880 431 449 1,985 598 605 367 415
Sales volume (payable metal)
Copper (t) 71,577 36,603 34,974 158,017 49,052 45,430 29,999 33,536
Gold (oz) 39,796 20,021 19,775 89,435 27,756 25,971 16,727 18,981
Revenue ($ millions) 823.7 404.6 419.1 1,618.9 449.1 473.0 366.4 330.4
Production costs ($ millions) 358.2 186.1 172.1 726.7 201.0 189.1 175.4 161.3
Gross profit ($ millions) 321.4 143.6 177.8 579.2 163.2 205.3 114.9 95.7
Cash cost ($ per pound copper)1 1.78 1.81 1.75 1.73 1.53 1.55 2.18 1.89
Sustaining capital ($ millions)1 98.0 50.2 47.7 275.7 55.5 60.1 60.5 99.5
AISC ($ per pound copper)1 2.49 2.53 2.46 2.62 2.12 2.23 3.22 3.34
1All-in Sustaining Cost per pound sold ("AISC") and Cash cost per pound sold are non-GAAP measures and Sustaining Capital is a supplementary financial
measure, see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.
Production
Candelaria's production in the quarter continued to benefit from strong throughput in the mill due to softer ore feed and
higher ball mill runtime due to rescheduled maintenance. Grades and recoveries in the quarter were also favourable to the
prior year comparable period. Mining in the open pit during the first half of 2025 was focused on Phase 11 with some
contribution from higher grade areas of Phase 12, and production is expected to continue at similar levels through the
second half of the year.
Production during the year-to-date period was higher than in the prior year comparable period primarily due to higher
throughput and grades. As planned, average grades decreased from those realized in the second half of 2024 but were
higher than in the prior year comparable period primarily due to grades in the prior year being impacted negatively by the
interface of the open pit and historic underground mining stopes, requiring more low grade stockpiled ore to be processed
in 2024.
Production Costs and Cash Cost
Production costs in the quarter and year-to-date period were higher than in the prior year comparable periods primarily
due to higher sales volumes.
Cash cost per pound in the quarter and year-to-date periods were lower than in the prior year comparable periods primarily
due to higher throughput and grades, combined with favourable foreign exchange. All-in sustaining cost per pound ("AISC")
in the quarter and year-to-date period was lower than in the prior year comparable periods due to lower cash cost per
pound, combined with lower sustaining capital expenditures. Sustaining capital expenditures decreased in the first half of
2025 primarily due to reduced deferred stripping and lower spending on new mine equipment.
In the quarter, approximately 14,000 oz of gold and 280,000 oz of silver were subject to terms of a streaming agreement
from which approximately $433/oz gold and $4.32/oz silver were received. This represents approximately 68% of
Candelaria's total gold and silver production during the quarter.
21
===== SIDA 44 =====
Gross Profit
Gross profit in the quarter increased from the prior year comparable period primarily due to higher sales volumes and lower
depreciation, partially offset by lower realized copper prices. Gross profit in the year-to-date period increased due to higher
realized copper prices, higher sales volumes and lower depreciation.
22
===== SIDA 45 =====
Caserones (Chile)
Operating Statistics
2025 2024
(100% Basis) YTD Q2 Q1 Total Q4 Q3 Q2 Q1
Ore mined (kt) 19,680 9,680 10,000 30,820 8,557 7,616 7,840 6,807
Ore milled (kt) 16,653 7,984 8,669 32,141 8,759 8,136 7,556 7,690
Ore placed on leach 9,725 4,962 4,763 10,230 3,563 1,885 2,868 1,914
Grade
Copper (%) 0.35 0.37 0.33 0.40 0.36 0.38 0.42 0.44
Molybdenum (%) 0.010 0.008 0.011 0.015 0.015 0.016 0.015 0.016
Recovery
Copper (%) 79.1 79.9 78.4 78.6 81.9 76.7 75.9 79.7
Molybdenum (%) 60.2 56.6 62.6 64.1 68.9 53.3 64.4 70.0
Production (contained metal)
Copper in concentrate (t) 45,730 23,490 22,240 100,837 25,717 23,708 24,246 27,166
Copper cathode (t) 12,269 5,800 6,469 23,924 6,020 5,325 5,529 7,050
Total copper (t) 57,999 29,290 28,709 124,761 31,737 29,033 29,775 34,216
Molybdenum (t) 982 380 602 3,183 912 693 714 864
Sales volume (payable metal)
Copper (t) 66,257 30,076 36,181 113,867 26,750 22,044 29,862 35,211
Molybdenum (t) 1,017 389 628 3,056 944 581 695 836
Revenue ($ millions) 708.6 322.7 385.9 1,153.6 263.0 227.9 336.5 326.2
Production costs ($ millions) 448.7 204.7 243.9 776.2 200.2 169.4 208.9 197.7
Gross profit ($ millions) 157.6 61.5 96.1 193.4 24.2 19.2 73.1 76.8
Cash cost ($ per pound copper)1 2.49 2.45 2.52 2.51 2.51 2.96 2.60 2.14
Sustaining capital ($ millions)1 70.1 31.9 38.2 144.0 43.0 22.9 35.3 42.8
AISC ($ per pound copper)1 3.35 3.34 3.36 3.48 3.58 3.95 3.58 3.02
1All-in Sustaining Cost per pound sold ("AISC") and Cash cost per pound sold are non-GAAP measures and Sustaining Capital is a supplementary financial
measure, see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.
Production
Caserones' copper production in the quarter benefitted from an increase in average grade, but was also impacted by
reduced throughput due to temporary primary crusher availability. Copper production in the quarter was slightly lower than
in the prior year comparable period primarily due to reduced average grade due to mine sequencing. Mining was focused at
Phases 6 and 7 in the quarter, as mining at Phase 5 nears completion. Copper cathode production in the quarter benefitted
from increased ore placed on the leach pad.
Production in the year-to-date period was lower than in the prior year comparable period due to lower average grade as a
result of mine sequencing, partially offset by higher throughput from operational efficiencies. Copper cathode production in
the year-to-date period was slightly lower than in the prior year comparable period due to lower irrigation. Molybdenum
production was lower in the quarter and year-to-date period than in the prior year comparable periods due to lower grades.
Production Costs and Cash Cost
Production costs in the quarter were lower than in the prior year comparable period due to lower mining and milling costs,
partially offset by higher copper sales volumes . Mining and milling costs in the quarter benefitted from lower labour and
maintenance costs. Production costs in the year-to-date period were higher than in the prior year comparable period due to
slightly higher copper sales volumes and higher contractor and maintenance costs.
Cash cost per pound in the quarter was lower than in the prior year comparable period primarily due to lower treatment
charges, and lower mining and milling costs. Cash cost per pound in the year-to-date period was higher than in the prior
year comparable period as a result of higher contractor and maintenance costs. AISC per pound in the quarter was lower
than in the prior year comparable period primarily due to lower cash cost and lower sustaining capital expenditures. AISC
per pound in the year-to-date period was higher than in the prior year comparable period in line with higher cash costs.
23
===== SIDA 46 =====
Gross Profit
Gross profit in the quarter was lower than in the prior year comparable period due to lower realized copper prices, lower
molybdenum sales volumes and higher depreciation, partially offset by lower treatment charges. Gross profit in the year-to-
date period was higher than in the prior year comparable period due to higher realized copper prices, slightly higher copper
sales volumes, and lower treatment charges partially offset by higher contractor and maintenance costs.
24
===== SIDA 47 =====
Chapada (Brazil)
Operating Statistics
2025 2024
(100% Basis) YTD Q2 Q1 Total Q4 Q3 Q2 Q1
Ore mined (kt) 8,005 4,725 3,280 21,949 5,084 5,889 5,851 5,125
Ore milled (kt) 11,495 5,675 5,820 22,883 5,945 6,035 5,407 5,496
Grade
Copper (%) 0.24 0.27 0.22 0.25 0.28 0.25 0.23 0.23
Gold (g/t) 0.15 0.18 0.13 0.17 0.18 0.18 0.18 0.14
Recovery
Copper (%) 72.0 73.6 70.0 77.3 76.2 78.1 74.2 81.1
Gold (%) 49.2 52.7 44.3 52.2 53.4 51.5 49.3 55.3
Production (contained metal)
Copper (t) 20,183 11,274 8,909 43,261 12,323 11,694 9,106 10,138
Gold (oz) 28,393 17,544 10,849 65,415 18,614 17,877 14,760 14,164
Silver (koz) 119 69 50 245 69 63 55 58
Sales volume (payable metal)
Copper (t) 18,630 10,284 8,346 39,615 10,200 12,380 8,293 8,742
Gold (oz) 24,431 14,402 10,029 57,777 14,660 18,775 12,368 11,974
Revenue ($ millions) 265.5 150.9 114.6 497.6 121.2 160.0 118.0 98.4
Production costs ($ millions) 138.5 75.0 63.5 282.6 64.4 84.5 69.2 64.6
Gross profit (loss) ($ millions) 86.7 54.0 32.7 165.0 67.3 48.7 30.4 18.8
Cash cost ($ per pound copper)1 1.08 0.75 1.47 1.58 1.07 1.37 2.05 2.01
Sustaining capital ($ millions)1 49.6 27.4 22.2 107.8 32.9 20.5 25.2 29.2
AISC ($ per pound copper)1 2.55 2.24 2.94 3.07 2.81 2.34 3.72 3.79
1All-in Sustaining Cost per pound sold ("AISC") and Cash cost per pound sold are non-GAAP measures and Sustaining Capital is a supplementary financial
measure, see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.
Production
During the quarter, ore from the North and South open pits was mined and processed, with an emphasis on higher-grade
material in line with the planned mine sequence. Production in the quarter increased from the prior year comparable
period due to increased throughput, combined with improved copper grade due to reduced processing of low-grade
stockpile material. Gold production in the quarter benefitted from higher throughput and recoveries. In the second half of
2025, average copper grades and recoveries are expected to remain in line with the second quarter as opportunities to
accelerate mining and processing fresh ore from the open pit continues to reduce processing volumes of older low-grade
stockpile material.
Copper production in the year-to-date period was higher than in the prior year comparable period primarily due to higher
throughput and average grades, partially offset by lower average recoveries. Gold production in the year-to-date period
was slightly lower than in the prior year comparable period due to lower average recoveries and grades, partially offset by
higher throughput.
Production Costs and Cash Cost
Production costs in the quarter increased compared to the prior year comparable period, primarily driven by higher sales
volumes, partially offset by favourable foreign exchange and reduced mining costs. The reduction in mining costs reflects
the results of the Chapada Full Potential program which started in 2022, and focuses on various site optimization activities.
Production costs in the year-to-date period increased compared to the prior year comparable period, primarily driven by
higher sales volumes, partially offset by favourable foreign exchange.
Cash cost per pound of $0.75 in the quarter was the lowest amount since the third quarter of 2021. Cash cost per pound in
the quarter and year-to-date period improved from the prior year comparable periods primarily due to higher by-product
credits as a result of increased realized prices for gold, higher gold sales volume and favourable foreign exchange. Cash cost
per pound for the quarter also benefitted from higher copper sales volume. AISC per pound in the quarter and year-to-date
period was lower than in the prior year comparable periods primarily due to lower cash cost per pound. Sustaining capital
25
===== SIDA 48 =====
expenditures in the quarter were higher than in the prior year comparable period mainly due to increased deferred
stripping.
Gross Profit
Gross profit in the quarter was higher than in the prior year comparable period primarily due to increased copper and gold
sales volumes, higher realized gold prices, favourable foreign exchange and reduced mining costs. Gross profit in the year-
to-date period was higher than in the prior year comparable period primarily due to higher copper and gold realized prices
and favorable foreign exchange.
26
===== SIDA 49 =====
Eagle (USA)
Operating Statistics
2025 2024
(100% Basis) YTD Q2 Q1 Total Q4 Q3 Q2 Q1
Ore mined (kt) 329 167 162 480 117 91 107 165
Ore milled (kt) 330 169 161 487 121 90 97 179
Grade
Nickel (%) 1.8 1.9 1.7 1.9 1.7 1.4 2.1 2.1
Copper (%) 1.5 1.6 1.4 1.4 1.1 1.2 1.7 1.5
Recovery
Nickel (%) 83.7 84.6 82.6 82.0 78.7 72.3 85.0 85.2
Copper (%) 95.3 95.5 95.0 95.1 94.1 94.3 95.9 95.3
Production (contained metal)
Nickel (t) 5,009 2,713 2,296 7,486 1,617 893 1,721 3,255
Copper (t) 4,595 2,510 2,085 6,366 1,262 1,027 1,563 2,514
Sales volume (payable metal)
Nickel (t) 3,974 2,226 1,748 5,662 1,088 393 2,018 2,163
Copper (t) 4,038 2,489 1,549 5,457 877 733 1,789 2,058
Revenue ($ millions) 103.3 59.1 44.3 152.5 25.6 12.2 57.4 57.2
Production costs ($ millions) 77.5 40.4 37.1 111.9 21.1 12.6 37.7 40.5
Gross profit (loss) ($ millions) 15.4 12.8 2.6 7.0 (3.8) (6.5) 9.8 7.5
Cash cost ($ per pound nickel)1 2.86 2.02 3.94 4.20 5.22 7.24 3.23 4.04
Sustaining capital ($ millions)1 10.8 6.4 4.5 21.2 5.2 7.9 4.0 4.1
AISC ($ per pound nickel)1 5.29 4.58 6.20 7.60 9.53 20.02 5.71 6.12
1All-in Sustaining Cost per pound sold ("AISC") and Cash cost per pound sold are non-GAAP measures and Sustaining Capital is a supplementary financial
measure, see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.
Production
Nickel and copper production during the quarter was impacted by a temporary reduction in equipment availability and
reduced throughput as a result of an unplanned four-day power outage caused by an offsite transmission failure. Following
the fall of ground in the lower ramp in Eagle East during Q2 2024, the primary main access ramp rehabilitation was
completed in Q1 2025 and production gradually increased to normal levels during the quarter. Reduced mining rates in the
comparative quarter and year-to-date period as a result of the fall of ground was the primary driver of increased nickel and
copper production in the current quarter and year-to-date period.
Production Costs and Cash Cost
Production costs in the quarter were higher than in the prior year comparable period due to higher nickel and copper sales
volumes, partially offset by lower mining costs as a result of insourcing of maintenance activities. Production costs in the
prior year comparable period excluded approximately $9.8 million of overhead costs that were recorded in Other Income
and Expense as a result of the partial suspension of underground mining operations. Production costs for the year-to-date
period were consistent with the prior year comparable period.
Cash cost per pound in the quarter was lower than in the prior year comparable period due to higher by-product credits and
higher nickel production and sales volume. Cash cost per pound for the year-to-date period was lower than in the prior year
comparable period due to higher by-product credits, partially offset by lower nickel production and sales volume. AISC per
pound in the quarter and year-to-date period was lower than in the prior year comparable period in line with lower cash
costs per pound.
Gross Profit
Gross profit in the quarter was higher than in the prior year comparable period due to lower depreciation expense, higher
nickel and copper sales volumes, and lower maintenance costs, partially offset by lower realized nickel and copper prices.
Gross profit in the year-to-date period was lower than in the prior year comparable period primarily due to lower realized
nickel prices, partially offset by reduced depreciation expense and lower treatment and refining charges.
27
===== SIDA 50 =====
Neves-Corvo (Portugal)
Operating Statistics (Discontinued Operation)
2025 2024
(100% Basis) YTD2 Q22 Q1 Total Q4 Q3 Q2 Q1
Ore mined, copper (kt) 634 88 546 2,412 643 579 602 588
Ore mined, zinc (kt) 643 100 543 2,127 539 571 499 518
Ore milled, copper (kt) 582 78 504 2,426 643 583 601 599
Ore milled, zinc (kt) 622 85 537 2,127 568 540 507 512
Grade
Copper (%) 1.6 1.9 1.6 1.5 1.4 1.5 1.6 1.5
Zinc (%) 6.7 6.9 6.7 6.5 6.3 7.0 6.3 6.5
Lead (%) 1.3 1.4 1.3 1.2 1.1 1.4 1.3 1.2
Recovery
Copper (%) 78.5 81.1 78.0 76.9 78.3 74.9 77.2 77.3
Zinc (%) 76.3 79.0 75.8 77.3 76.0 76.9 78.2 78.4
Lead (%) 29.5 31.6 29.2 24.6 25.4 24.8 21.7 26.5
Production (contained metal)
Copper (t) 7,348 1,225 6,123 28,228 7,139 6,698 7,347 7,044
Zinc (t) 32,356 4,665 27,691 109,571 27,879 29,509 25,696 26,487
Lead (t) 2,361 369 1,992 6,395 1,553 1,851 1,387 1,604
Silver (koz) 534 75 459 1,876 494 425 433 524
Sales volume (payable metal)
Copper (t) 6,745 1,394 5,351 26,721 5,230 7,707 7,898 5,886
Zinc (t) 27,673 3,823 23,850 88,731 21,357 25,730 20,440 21,204
Lead (t) 1,920 440 1,480 5,700 1,323 1,811 1,242 1,324
Revenue ($ millions) 128.3 19.9 108.4 438.1 97.5 131.2 128.7 80.6
Production costs ($ millions) 90.2 14.3 75.9 323.2 73.2 95.2 83.1 71.7
Gross (loss) profit ($ millions) 38.0 5.5 32.5 (3.4) (2.5) 1.3 15.9 (18.1)
Cash cost ($ per pound copper)1 1.84 2.42 1.69 2.19 1.84 2.13 1.70 3.24
Sustaining capital ($ millions)1 27.7 — 27.7 89.3 12.7 26.3 27.9 22.4
AISC ($ per pound copper)1 3.89 2.51 4.25 3.92 3.37 3.84 3.46 5.13
1All-in Sustaining Cost per pound sold ("AISC") and Cash cost per pound sold are non-GAAP measures and Sustaining Capital is a supplementary financial
measure, see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.
2 Neves-Corvo 2025 results are to April 16, 2025.
Production
Neves-Corvo was sold on April 16, 2025. In 2025 through to the date of sale, copper production was lower than in the prior
year comparable period due to lower throughput, and zinc production increased due to higher throughput and grades.
Production Costs and Cash Cost
Production costs in 2025 through to the date of sale were higher than in the prior year comparable period primarily due to
higher zinc sales volume and an increase in electricity and maintenance costs, partially offset by favourable foreign
exchange. Electricity costs increased as a result of higher market energy prices.
Cash cost per pound in Q1 2025 was lower than in the prior year comparable period primarily due to higher by-product
credits driven by an increase in zinc sales volume and higher realized zinc prices as well as favourable foreign exchange,
partially offset by lower copper sales volume. AISC per pound in Q1 2025 was lower than AISC from the prior year
comparable period due to lower cash cost per pound offset partially by higher sustaining capital expenditures.
Gross (Loss) Profit
Gross profit in 2025 through to date of sale was higher than the prior year comparable period primarily due to no
depreciation being taken on assets classified as held for sale, as well as higher realized copper and zinc prices and lower
treatment and refining charges, partially offset by lower copper sales volume and higher electricity costs. Net earnings were
impacted by a non-cash impairment charge of $66 million in Q1 2025 to recognize mining rights and mineral properties at
their estimated fair value, based on the cash proceeds received.
28
===== SIDA 51 =====
Zinkgruvan (Sweden)
Operating Statistics (Discontinued Operation)
2025 2024
(100% Basis) YTD2 Q22 Q1 Total Q4 Q3 Q2 Q1
Ore mined, zinc (kt) 393 64 329 1,246 332 300 308 306
Ore mined, copper (kt) 59 — 59 184 8 84 45 47
Ore milled, zinc (kt) 403 66 337 1,239 311 302 313 313
Ore milled, copper (kt) 51 — 51 207 14 76 42 75
Grade
Zinc (%) 7.0 7.5 6.9 7.3 8.4 6.3 7.7 6.7
Lead (%) 2.8 3.2 2.8 3.1 3.7 2.4 3.7 2.7
Copper (%) 2.1 — 2.1 2.2 2.0 2.1 2.0 2.4
Recovery
Zinc (%) 91.6 92.6 91.4 90.9 91.8 89.8 90.6 91.1
Lead (%) 81.1 78.3 81.7 80.0 83.0 78.5 78.2 79.4
Copper (%) 90.2 — 90.2 88.1 86.7 87.3 88.0 89.0
Production (contained metal)
Zinc (t) 25,877 4,620 21,257 82,133 24,067 17,101 21,764 19,201
Lead (t) 9,291 1,705 7,586 30,888 9,481 5,693 8,966 6,748
Copper (t) 971 — 971 3,964 258 1,385 747 1,574
Silver (koz) 737 152 585 2,513 637 537 699 640
Sales volume (payable metal)
Zinc (t) 20,698 1,548 19,150 68,086 18,627 15,124 18,510 15,825
Lead (t) 6,948 (120)3 7,068 28,036 7,786 6,346 9,069 4,835
Copper (t) 982 — 982 3,809 457 1,775 821 756
Revenue ($ millions) 72.4 0.8 71.6 256.7 67.5 68.6 76.6 44.1
Production costs ($ millions) 36.9 2.7 34.2 122.1 29.1 30.1 32.7 30.1
Gross profit (loss) ($ millions) 35.5 (1.9) 37.4 97.7 32.4 24.3 35.0 6.0
Cash cost ($ per pound)1 0.46 1.18 0.40 0.41 0.43 0.16 0.39 0.65
Sustaining capital ($ millions)1 30.4 9.1 21.3 65.7 22.5 15.5 13.3 14.3
AISC ($ per pound)1 1.13 3.85 0.91 0.87 0.99 0.66 0.74 1.10
1All-in Sustaining Cost per pound sold ("AISC") and Cash cost per pound sold are non-GAAP measures and Sustaining Capital is a supplementary financial
measure, see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.
2 Zinkgruvan 2025 results are to April 16, 2025.
3 Lead sales volume for the quarter was impacted by volume adjustments.
Production
Zinkgruvan was sold on April 16, 2025. In 2025 through to the date of sale, zinc and lead production were higher than in the
prior year comparable period due to higher throughput, grades and recoveries. Zinc production was positively impacted by
favourable mine sequencing and high grade stopes. Copper production was lower than in the prior year comparable period
primarily due to lower throughput and remained in line with the mine plan as zinc production was prioritized.
Production Costs and Cash Cost
Production costs in 2025 through to the date of sale were higher than in the prior year comparable period primarily due to
higher zinc and lead sales volumes.
Cash cost per pound in Q1 2025 was lower than in the prior year comparable period primarily due to increased zinc sales
volume as well as higher by-product credits as a result of higher copper sales volume and higher copper realized prices. AISC
per pound in Q1 2025 was lower than in the prior year comparable period due to due to lower cash cost per pound slightly
offset by higher sustaining capital expenditures.
Gross Profit
Gross profit in 2025 through to the date of sale was higher than in the prior year comparable period primarily due to no
depreciation being taken on assets classified as held for sale, as well as higher realized zinc and copper prices, lower
treatment and refining charges and higher zinc, copper and lead sales volume.
29
===== SIDA 52 =====
Vicuña Project (Argentina and Chile)
Project Development
On January 15, 2025, the Company completed the Filo Acquisition and the Joint Arrangement, resulting in the Company
indirectly holding a 50% interest in Vicuña Corp., an independently managed joint operation which owns the Josemaria
project in Argentina and the Filo del Sol project in Argentina and Chile. BHP indirectly owns the remaining 50% interest in
Vicuña.
In 2025, work continues to focus on advancing studies related to the synergies between the Filo del Sol and Josemaria
projects, continuing the drilling program, and progressing the development of the Josemaria project.
Activities at Josemaria during the quarter focused on the completion and submission of the Environmental Impact
Assessment ("EIA"), power infrastructure planning, and continued advancement of the water program. Mobilization and
preparatory works for the northern access road commenced in the quarter with full construction scheduled to begin later in
2025 following the winter season. Work also continued on a multi-phased development concept pertaining to the
Josemaria and Filo del Sol deposits. An integrated technical report is targeted to be complete by early 2026.
Government relations activities continued with both the national and provincial governments. In conjunction, discussions
on provincial agreements continued to be advanced. Work also progressed in the quarter on an application for the
Argentinean Basis Law - Incentive Regime for Large Investments ("RIGI").
Community investment programs were launched in 2025 with a focus on gender, youth training, cooperative development,
and rural livelihoods.
On May 4, 2025, the Company announced an initial Mineral Resource estimate for the Filo del Sol sulphide deposit, an
update to the Mineral Resource estimate for the Filo del Sol oxide deposit and an update to the Mineral Resource estimate
for the Josemaria deposit, which highlighted the combined Vicuña Project as one of the largest copper, gold and silver
resources in the world. Details of the Vicuña Mineral Resource are set out in the Vicuña Technical Report.
The Filo del Sol and Josemaria deposits have significant high-grade mineralization that could provide the initial years of
mining for the Project.
• Filo del Sol high-grade core at cut-off of 0.75% copper equivalent ("CuEq"): 606 million Mt (M&I) at 1.14% CuEq 1
(0.74% Cu) for contained metal of 4.5 Mt copper at 0.74%, 9.6 Moz gold at 0.49 g/t and 259 Moz silver at 13.3 g/t.
• Near surface Josemaria high-grade core at cut-off of 0.60% CuEq: 196 Mt (M&I) at 0.73% CuEq 2 (0.50% Cu) for
contained metal of 978 kt copper at 0.50%, 2.4 Moz gold at 0.38 g/t and 11 Moz silver at 1.7 g/t.
The Filo del Sol deposit also contains copper oxide mineralization at surface.
• Lower capital intensity heap leach oxide cap of 434 Mt (M&I) at 0.34% copper (1.5 Mt), 0.28 g/t gold (3.9 Moz) and
2.5 g/t silver (35 Moz)
• High-grade oxides at a cut-off of 0.60% CuEq of 181 Mt (M&I) at 1.05% CuEq3(0.50% Cu) for contained metal of 911
kt copper at 0.50%, 2.3 Moz gold at 0.39 g/t and 230 Moz silver at 39.6 g/t.
There is clear potential for expansion. Drilling at Filo del Sol bottomed in mineralization and is open at depth, while drilling
at the Flamenco zone approximately 2 kilometers to the south has intercepted mineralization beyond the limits of the
current resource pit shell.
During the quarter, the Company spent $32.2 million in capital expenditures compared to $87.1 million in the prior year
comparable period. On a year-to-date basis, the Company spent $74.9 million compared to $143.1 million in the prior year
comparable period. Reduced spending in both the quarter and year-to-date periods is due to the formation of Vicuña on
January 15, 2025. From this date, the Company's expansionary capital expenditures include 50% of Vicuña's capital
expenditures.
30
1 Filo del Sol CuEq assumes average metallurgical recoveries of 78% for copper, 62% for gold and 62% for silver, and metal prices of $4.43/lb Cu, $2,185/oz
Au and $28.80/oz Ag. The CuEq formula is: CuEq= Cu% + (0.59 * Au g/t) + (0.008 * Ag g/t).
2 Josemaria high-grade core CuEq assumes metallurgical recoveries of 84% for copper, 67% for gold and 63% for silver, and metal prices of $4.43/lb Cu,
$2,185/oz Au and $28.80/oz Ag. The CuEq formula is: CuEq= Cu% + (0.58 * Au g/t) + (0.007 * Ag g/t).
3 Filo del Sol oxide CuEq assumes average metallurgical recoveries of 78% for copper, 62% for gold and 62% for silver, and metal prices of $4.43/lb Cu,
$2,185/oz Au and $28.80/oz Ag. The CuEq formula is: CuEq= Cu% + (0.59 * Au g/t) + (0.008 * Ag g/t).
===== SIDA 53 =====
Expansionary Projects
The Company has a number of brownfield expansionary projects that are expected to contribute to medium-term growth in
its existing operating asset portfolio. Combined, these opportunities could add 30,000 to 40,000 tonnes of copper
production growth and 60,000 to 70,000 ounces of annual gold production through low capital intensity growth projects.
Candelaria
Projects are ongoing to support the mine life extension under the Environmental Impact Assessment ("2040 EIA"). During
the quarter, $1.5 million was spent on relocation of electrical transmission lines to allow for expansion of the open pit.
During the year-to-date period, $21.7 million of spending also included key equipment deliveries as well as the acquisition
of mining rights.
Additionally, the Company is working on an expansion opportunity which re-envisions the previously disclosed Candelaria
Underground Expansion Project ("CUGEP") to a lower-capital intensive option with only marginally lower production rates.
The Company forecasts that this could increase underground throughput capacity by approximately 50% to 60% to ~22,000
tonnes per day from current levels of 12,000 to 14,000 tonnes per day and increase annual copper production by
approximately 10% or 14,000 tonnes of copper per year. The opportunity includes insourcing of the Company's
underground mining contract, which is anticipated to provide incremental copper production gains from higher productivity
rates through improved mechanical availability and higher development rates. Initial recruitment has begun as part of the
internalization process, along with training and licensing of blast technicians. It is expected that by mid-2026, the initial
underground mining crews will have been internalized.
Caserones
While cathode production at Caserones has remained strong over recent quarters, the Company is anticipating that through
continued improvements with its leaching practices and additional oxide material, incremental future production can be
realized in the range of 7,000 to 10,000 tonnes of copper per year.
Chapada
The development of the Saúva deposit, approximately 15 kilometers from the Chapada mine, represents a near mine
opportunity to add approximately 15,000 to 20,000 tonnes of copper production per year and 50,000 to 60,000 ounces of
gold production per year, representing 50% and 100% production increases respectively. This is expected to be achieved
through the installation of additional grinding capacity and by offsetting lower grade material with higher grade ore from
Saúva. Permitting and technical work is ongoing to further define the project and the Company anticipates completing a
pre-feasibility study by the end of 2025.
Exploration Update
During the quarter, exploration activity focused on in-mine and near-mine targets at the Company's operations. Exploration
drilling at Candelaria was focused on Candelaria South (Mariana) and Candelaria Norte with a total of 1,533m completed
during the quarter.
At Caserones, drilling started for the year early in the quarter with one rig at the Caserones pit targeting deep high-grade
copper breccias and two rigs at Angelica targeting copper sulphides beneath the Angelica oxide deposit, totaling 3,097m.
A total of 5,077m was drilled using two rigs at Chapada. One rig was in the Saúva resource area, focusing on adding high
grade resources. A second rig was testing shallow targets outside the Saúva resource area and near-mine targets.
At Eagle, drilling commenced at the Boulderdash property with two rigs targeting potential extensions of the known n ickel-
copper mineralized intrusion. This drilling is part of an exclusivity agreement with 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.
Total drilling for the quarter was 1,874m, as part of the proposed 10,000m Phase 1 earn-in drilling program.
31
===== SIDA 54 =====
Liquidity and Capital Resources
Consolidated Cash Flow
Three months ended June 30,
($ millions) 2025 2024 Change
Cash provided by operating activities related to continuing operations 314.6 440.0 (125.4)
Cash provided by (used in) investing activities related to continuing
operations 1,159.4 (213.0) 1,372.4
Cash used in financing activities related to continuing operations (1,630.6) (156.7) (1,473.9)
Effect of foreign exchange on cash balances (0.6) 3.7 (4.3)
(Decrease) increase in cash and cash equivalents (146.2) 87.4 (233.6)
Opening cash and cash equivalents 425.5 365.5 60.0
Closing cash and cash equivalents 279.3 452.8 (173.5)
Adjusted operating cash flow1 — continuing operations 277.2 291.2 (14.0)
Free cash flow from operations1 — continuing operations 211.1 324.7 (113.6)
Free cash flow1 — continuing operations 165.0 226.3 (61.3)
Six months ended June 30,
($ millions) 2025 2024 Change
Cash provided by operating activities related to continuing operations 436.9 672.3 (235.4)
Cash provided by (used in) investing activities related to continuing
operations 1,058.4 (447.3) 1,505.7
Cash used in financing activities related to continuing operations (1,665.5) (54.9) (1,610.6)
Effect of foreign exchange on cash balances 2.6 0.2 2.4
(Decrease) increase in cash and cash equivalents (153.0) 184.0 (337.0)
Opening cash and cash equivalents 432.3 268.8 163.5
Closing cash and cash equivalents 279.3 452.8 (173.5)
Adjusted operating cash flow1 — continuing operations 614.2 585.3 28.9
Free cash flow from operations1 — continuing operations 232.6 391.3 (158.7)
Free cash flow1 — continuing operations 111.8 226.1 (114.3)
1This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
Cash provided by operating activities related to continuing operations during the quarter and year-to-date periods was
lower than in the prior year comparable periods primarily due to higher cash income taxes paid at Candelaria due to timing
of payments, combined with increased taxable income. These payments were partially offset by higher gross profit from
continuing operations. Adjusted operating cash flow1 - continuing operations during the quarter was lower than in the prior
year comparable period in line with lower cash provided by operating activities related to continuing operations. Adjusted
operating cash flow - continuing operations on a year-to-date basis was higher than in the prior year comparable period
after adjusting for significant negative working capital outflows in Q1 2025 that included a buildup of trade receivables from
shipments toward the end of the quarter.
Cash provided by investing activities related to continuing operations during the quarter and year-to-date periods was
higher than in the prior year comparable periods, primarily due to the sale of the Neves-Corvo and Zinkgruvan operations in
April 2025. At closing, Lundin Mining received net cash proceeds of $1,314.6 million including cash consideration of
$1,402.0 million, net of cash disposed and transaction costs. Additionally, cash provided by investing activities related to
continuing operations benefitted from lower capital expenditures in both the quarter and year-to-date periods as compared
to the prior year comparable periods. A decrease in sustaining capital expenditures was primarily due to reduced deferred
stripping at Candelaria. A decrease in expansionary capital expenditures was primarily due to the formation of Vicuña on
January 15, 2025. From this date, the Company's expansionary capital expenditures include 50% of Vicuña's capital
expenditures. A summary of capital expenditures on a cash basis is outlined below.
32
1 This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
===== SIDA 55 =====
Summary of Capital Expenditures1 Three months ended June 30, Six months ended June 30,
($ millions) 2025 2024 2025 2024
Candelaria 1.5 — 21.7 —
Vicuña 32.2 87.1 74.9 143.1
Expansionary capital investment from continuing operations 33.7 87.1 96.6 143.1
Candelaria 50.2 60.5 98.0 160.1
Caserones 31.9 35.3 70.1 78.1
Chapada 27.4 25.2 49.6 54.4
Eagle 6.4 4.0 10.8 8.1
Other 0.1 1.5 0.1 2.4
Sustaining capital investment from continuing operations 115.9 126.6 228.5 303.1
Total capital expenditures from continuing operations 149.6 213.7 325.1 446.2
Reconciliation to Investment in mineral properties, plant and
equipment:
Capitalized interest 7.9 3.5 8.4 6.2
Total Investment in mineral properties, plant and equipment
from continuing operations 157.5 217.2 333.5 452.4
Total Investment in mineral properties, plant and equipment
from discontinued operations 9.1 41.2 58.1 78.0
Total Investment in mineral properties, plant and equipment
(all operations) 166.6 258.5 391.6 530.4
1 Capital expenditures are reported on a cash basis, as presented in the consolidated statement of cash flows. Sustaining capital expenditures is a
supplementary financial measure and expansionary capital expenditures is a non-GAAP measure – see the "Non-GAAP and Other Performance
Measures" section of this MD&A for discussion.
Free cash flow from operations 1 - continuing operations and free cash flow - continuing operations during the quarter and
year-to-date periods were lower than in the prior year comparable periods primarily due to reductions in cash provided by
operating activities related to continuing operations, partially offset by reduced sustaining and expansionary capital
expenditures.
Cash used in financing activities related to continuing operations during the quarter and year-to-date periods increased
from the prior year comparable periods primarily due to net cash proceeds received in the quarter from the sale of the
Neves-Corvo and Zinkgruvan operations. These were used to repay in full the $1,150.0 million outstanding balance of the
Company's term loan and to repay $300.0 million of amounts drawn on the RCF. The Company also repurchased shares
under its normal course issuer bid ("NCIB") program totalling $36.2 million and $107.7 million in the quarter and year-to-
date periods, respectively. There were no shares repurchased in the prior year comparable periods.
33
1 This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
===== SIDA 56 =====
Liquidity and Financial Position
($ millions) June 30, 2025 December 31, 2024 Change
Cash and cash equivalents 279.3 357.5 (78.2)
Total assets 9,871.2 10,406.7 (535.5)
Debt1 409.9 1,757.0 (1,347.1)
Lease liabilities1 245.1 249.1 (4.0)
Net debt2 (380.2) (1,597.8) 1,217.6
Net debt excluding lease liabilities2 (135.1) (1,332.4) 1,197.3
1Debt and lease liabilities include both current and non-current portions.
2This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion. Amounts presented at December
31, 2024 include discontinued operations.
The Company continues to expect to be able to fund all its contractual commitments with its operating cash flow, cash on
hand and available capital resources.
Net debt excluding lease liabilities at June 30, 2025 decreased significantly from December 31, 2024 primarily due to net
cash proceeds from the sale of the Neves-Corvo and Zinkgruvan operations, which were used to repay in full the
$1,150.0 million outstanding balance of the Company's term loan and to repay $300.0 million of amounts drawn on the
RCF.
During the quarter, 4,629,000 shares were purchased under the Company's NCIB (Q2 2024 - nil shares).
34
===== SIDA 57 =====