FULLTEXT DEL 2 AV 2
Kvartalsrapport Q2 2025
Contractual Obligations, Commitments and Contingencies
The Company has contractual obligations and capital commitments as described in Note 19 “Commitments and
Contingencies” in the Company’s condensed interim consolidated financial statements for the three and six months ended
June 30, 2025. From time to time, the Company may also be involved in legal proceedings that arise in the ordinary course
of its business.
Capital Resources
As at June 30, 2025, the Company has an RCF of $1,750.0 million with $225.0 million outstanding (December 31, 2024 -
$270.0 million). The RCF bears interest on drawn funds at rates of Term Secured Overnight Financing Rate (“Term SOFR”)
plus Credit Spread Adjustment (“CSA”) of 0.10% plus an applicable margin of 1.40% to 2.55%, depending on the Company’s
net leverage ratio and progress against sustainability performance targets. In March 2025 the security previously held over
certain assets in the USA was removed from the revolving credit facility. The RCF matures in April 2029.
In April 2025, the Company repaid in full the $1,150.0 million outstanding balance of the term loan and $170.0 million of
amounts drawn on the RCF using the cash proceeds from the sale of the Neves-Corvo and Zinkgruvan operations. As a result
of the repayment, the term loan has been extinguished and cannot be redrawn. In April 2025, the Company also repaid the
$102.7 million (€95.0 million) outstanding balance of commercial paper programs at Neves-Corvo immediately prior to its
sale.
As at June 30, 2025, the Company was in compliance with its debt covenants.
As at June 30, 2025, certain subsidiaries of the Company had outstanding unsecured term loans totalling $189.4 million
(December 31, 2024 - $245.9 million) and which accrue interest at rates ranging from 4.78% to 5.99% per annum with
interest payable upon maturity. The maturity dates range from July to November 2025.
The development of the Vicuña Project requires significant capital commitments from the Company and additional funding,
beyond debt, may be required to advance the projects to completion.
Financial Instruments
Revenue, cost of goods sold and capital expenditures are affected by certain external factors including fluctuations in metal
prices, energy prices, and changes in exchange rates between the CLP, the BRL, the ARS and the $.
During the quarter, the Company did not enter into any new derivative contracts. At June 30, 2025 , existing derivative
contracts consist of foreign currency forward and option contracts as well as commodity option contracts. The option
contracts consist of put and call contracts in a collar structure with all contracts maturing in 2025 or 2026.
The derivative contracts have not been designated as hedges for purposes of hedge accounting and are measured at fair
value as assessed by pricing models based on active market prices. Changes in fair value are recognized in other income and
expense in the consolidated statement of earnings.
The Company’s trade receivables also contain provisional pricing sales arrangements that are valued using quoted forward
market prices. The following table illustrates the sensitivity of the Company’s risk on final settlement of its provisionally
priced revenues as at June 30, 2025.
Metal Payable Metal
Provisional price on
June 30, 2025 Change
Effect on Revenue
($millions)
Copper 112,897 t $4.49/lb +/- 10 % +/- $111.8
Gold 26,930 oz $3,309/oz +/- 10 % +/- $8.9
Nickel 763 t $6.84/lb +/- 10 % +/- $1.2
Molybdenum 665 t $21.82/lb +/- 10 % +/- $3.2
For a detailed discussion of the Company’s financial instruments, refer to Note 18 "Financial Instruments" in the Company’s
condensed interim consolidated financial statements for the three and six months ended June 30, 2025 . For further
information on the Company's management of financial risks, including those associated with financial and other
instruments, refer to Note 30 of the Company's consolidated financial statements for the year ended December 31, 2024.
35
===== SIDA 58 =====
Non-GAAP and Other Performance Measures
The Company uses certain performance measures in its analysis and disclosure. These performance measures have no
standardized meaning within generally accepted accounting principles under IFRS and, therefore, amounts presented may
not be comparable to similar data presented by other mining companies. This data is intended to provide additional
information and should not be considered in isolation or as a substitute for measures of performance prepared in
accordance with IFRS. The following are non-GAAP measures that the Company uses as key performance indicators.
Non-GAAP financial
measure or ratio Definition
Most directly
comparable IFRS
measure
Why management uses the
measure and why it may be
useful to investors
Cash cost Includes costs directly attributable to mining operations
(including mining, processing and administration),
treatment, refining and transportation charges, but
excludes royalty expenses, expenses associated with non-
cash fair value adjustments to inventory, depreciation and
amortization and capital expenditures for deferred
stripping. Revenue from sales of by-products, inclusive of
adjustments for the terms of streaming agreements but
excluding the recognition of any deferred revenue from the
allocation of upfront streaming proceeds, reduce cash cost.
Production costs
from continuing
operations and
Production costs
from discontinued
operations
Copper, zinc, nickel and
consolidated cash cost per
pound sold are useful measures
to assess the operating
performance of the Company's
mines and their ability to
generate cash. The inclusion of
by-product credits incorporates
the benefit of other metals
extracted in the production of
the primary metal.
Cash cost per pound
sold
This ratio is calculated by dividing cash cost by the sales
volume of the primary metal (copper, zinc, or nickel).
Consolidated cash
cost per pound sold
This ratio is calculated by dividing combined cash cost for
primary copper producing assets by combined sales
volume for copper producing assets. Primary copper
producing assets include Candelaria, Caserones, and
Chapada.
All-in sustaining cost
("AISC")
Includes cash cost (as defined above), royalties, sustaining
capital expenditure (including deferred stripping and
underground mine development), reclamation and other
closure cost accretion and amortization and lease
payments (cash basis). As this measure seeks to reflect the
full cost of production from current operations,
expansionary capital and certain exploration costs are
excluded as these are costs typically incurred to extend
mine life or materially increase the productive capacity of
existing assets, or for new operations. Corporate general
and administrative expenses have also been excluded as
any attribution of these costs to an operating site would
not necessarily be reflective of costs directly attributable to
the administration of the site. Certain other cash
expenditures, including tax payments, financing charges
(including capitalized interest) and costs related to
business combinations, asset acquisitions and asset
disposals are also excluded.
Production costs
from continuing
operations and
Production costs
from discontinued
operations
Copper, zinc and nickel AISC
and AISC per pound sold are
useful measures to understand
the full cost of producing and
selling metal at the Company's
mines, and each mine's ability
to generate cash while
sustaining production at current
levels.
AlSC per pound sold This ratio is calculated by dividing AISC by the sales volume
of the primary metal (copper, zinc, or nickel).
Sustaining capital
expenditures
This supplementary financial measure is defined as cash-
basis expenditures which maintain existing operations and
sustain production levels.
Investment in
mineral properties,
plant and
equipment
Sustaining capital expenditures
provide an understanding of
costs required to maintain
existing production levels.
Expansionary capital
expenditures provide
information on costs required
for future growth of existing or
new assets.
Expansionary capital
expenditures
This non-GAAP measure is defined as cash-basis
expenditures which increase current or future production
capacity, cash flow or earnings potential and are reported
excluding capitalized interest. Where an expenditure both
maintains and expands current operations, classification
would be based on the primary decision for which the
expenditure is being made.
36
===== SIDA 59 =====
Non-GAAP financial
measure or ratio Definition
Most directly
comparable IFRS
measure
Why management uses the
measure and why it is useful to
investors
Realized price per
pound and realized
price per ounce1
Defined as revenue from metal sales (copper, gold, nickel
and molybdenum) adding back treatment and refining
charges, cash effects of gold and copper streams,
recognition of deferred revenue from the allocation of
upfront streaming proceeds and sales of silver and other
metals, divided by the volume of metal sold in the period.
Revenue from
continuing
operations
These measures provide an
understanding of the price
realized in each reporting
period for metal sales.
Earnings before
interest, taxes,
depreciation and
amortization
(EBITDA) and
Adjusted EBITDA
EBITDA represents net earnings or loss for the period
before income tax expense or recovery, depreciation and
amortization, and finance costs, net. Adjusted EBITDA
removes the effects of items that do not reflect the
Company's underlying operating performance and are not
necessarily indicative of future operating results. These
may include: unrealized foreign exchange, unrealized gains
or losses from derivative contracts, revaluation gains or
losses on marketable securities, derivative liabilities,
contingent consideration and purchase options, expenses
for acquisition-related fair value adjustments to inventory,
non-cash impairment charges and reversals, non-cash
stockpile inventory or fixed asset write-downs or reversals,
goodwill impairment, costs relating to the sinkhole near
Ojos del Salado operations, costs relating to the partial
suspension of underground operations at Eagle, gains or
losses on disposals or partial disposals of subsidiaries,
income from investments in associates, insurance
proceeds and litigation and settlements.
Net earnings (loss)
from continuing
operations and
from discontinued
operations
EBITDA and Adjusted EBITDA
are used to evaluate the
Company's operational
performance and its ability to
generate cash from core
operations.
Adjusted earnings
(loss)
Defined as net earnings or loss attributable to shareholders
of the Company excluding the effects (net of tax) of
significant items that do not reflect the Company's
underlying operating performance. In addition to the items
listed for Adjusted EBITDA, these may also include:
deferred tax recovery or expense arising from foreign
exchange translation, deferred tax recovery or expense
arising from changes in tax rates, and deferred tax recovery
or expense relating to disposals or partial disposals of
subsidiaries. Adjustments exclude amounts attributable to
non-controlling interests.
Net earnings (loss)
attributable to
Lundin Mining
Corporation
shareholders and
Net earnings (loss)
from continuing
operations
attributable to
Lundin Mining
Corporation
shareholders
In addition to conventional
measures prepared in
accordance with IFRS, adjusted
earnings and adjusted earnings
per share measure the
underlying operating
performance of the Company.
Adjusted earnings
(loss) per share
This ratio is calculated by dividing adjusted net earnings or
loss by the weighted average number of shares
outstanding.
Free cash flow from
operations
Defined as cash flow provided by operating activities,
excluding general exploration and business development
costs and deducting sustaining capital expenditures (as
defined above).
Cash provided by
operating activities
related to
continuing
operations and
Cash provided by
operating activities
related to
discontinued
operations
Free cash flow from operations
is indicative of the Company's
ability to generate cash from its
operations after consideration
of required sustaining capital
expenditure necessary to
maintain existing production
levels. Free cash flow further
considers expansionary capital
expenditure.
Free cash flow Defined as cash flow provided by operating activities,
deducting sustaining capital expenditures and
expansionary capital expenditures (both as defined above).
37
===== SIDA 60 =====
Non-GAAP financial
measure or ratio Definition
Most directly
comparable IFRS
measure
Why management uses the
measure and why it is useful to
investors
Adjusted operating
cash flow
Defined as cash provided by operating activities, excluding
changes in non-cash working capital items.
Cash provided by
operating activities
related to
continuing
operations and
Cash provided by
operating activities
related to
discontinued
operations
These measures are indicative
of the Company's ability to
generate cash from its
operations and remove the
impact of working capital,
which can experience volatility
from period-to-period.
Adjusted operating
cash flow per share
This ratio is calculated by dividing adjusted operating cash
flow by the weighted average number of shares
outstanding.
Net debt Net debt is defined as total debt and lease liabilities
excluding deferred financing fees, less cash and cash
equivalents. Net debt excluding lease liabilities is defined
as total debt excluding lease liabilities, deferred financing
fees, less cash and cash equivalents.
Debt and lease
liabilities, current
portion of debt and
lease liabilities,
cash and cash
equivalents.
These measures are indicative
of the Company's financial
position.
Net debt excluding
lease liabilities
1See the 'Revenue Overview' section of this MD&A for reconciliations to revenue, the most directly comparable IFRS measure.
38
===== SIDA 61 =====
Cash Cost per Pound and All-in Sustaining Cost (“AISC”) per Pound
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 charges 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 ($/lb) 1.81 2.45 0.75 1.92 2.02
Add: Sustaining capital expenditure 50.2 31.9 27.4 6.4
Royalties 4.0 8.5 3.6 4.1
Reclamation and other closure
accretion and depreciation 2.0 1.3 1.7 1.2
Leases and other 1.6 17.1 1.0 0.9
All-in sustaining cost 203.9 221.4 50.8 22.5
AISC per pound ($/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 charges 0.8 0.6 1.4
Cash cost 7.4 4.0 11.5
Cash cost per pound ($/lb) 2.42 1.18
Add: Sustaining capital expenditure — 9.1
Royalties 0.2 —
Reclamation and other closure
accretion and depreciation 0.1 —
All-in sustaining cost 7.7 13.1
AISC per pound ($/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.
39
===== SIDA 62 =====
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 charges 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 ($/lb) 2.18 2.60 2.05 2.35 3.23
Add: Sustaining capital expenditure 60.5 35.3 25.2 4.0
Royalties 3.6 9.3 1.6 3.9
Reclamation and other closure
accretion and depreciation 1.9 1.1 2.7 1.6
Leases and other 3.0 18.6 0.8 1.5
All-in sustaining cost 212.9 235.6 67.9 25.4
AISC per pound ($/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.
40
===== SIDA 63 =====
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 charges 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 ($/lb) 1.78 2.49 1.08 2.00 2.86
Add: Sustaining capital expenditure 98.0 70.1 49.6 10.8
Royalties 7.5 18.4 5.6 6.3
Reclamation and other closure
accretion and depreciation 4.1 2.6 3.4 2.4
Leases and other 3.1 34.6 2.1 1.8
All-in sustaining cost 393.4 489.2 104.9 46.4
AISC per pound ($/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 charges 5.4 7.2 12.6
Cash cost 27.4 20.8 48.1
Cash cost per pound ($/lb) 1.84 0.46
Add: Sustaining capital expenditure 27.7 30.4
Royalties 1.2 —
Reclamation and other closure
accretion and depreciation 0.7 0.3
Leases and other 0.9 —
All-in sustaining cost 57.9 51.5
AISC per pound ($/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.
41
===== SIDA 64 =====
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 charges 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 ($/lb) 2.02 2.35 2.03 2.17 3.65
Add: Sustaining capital expenditure 160.1 78.1 54.4 8.1
Royalties 6.5 18.1 3.2 6.6
Reclamation and other closure
accretion and depreciation 4.0 2.1 5.4 3.6
Leases and other 6.1 34.0 1.5 2.8
All-in sustaining cost 460.1 470.0 140.9 54.6
AISC per pound ($/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.
42
===== SIDA 65 =====
Adjusted EBITDA
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
43
===== SIDA 66 =====
Adjusted Earnings and Adjusted EPS
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 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.
44
===== SIDA 67 =====
Free Cash Flow from Operations and Free Cash Flow
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
45
===== SIDA 68 =====
Adjusted Operating Cash Flow and Adjusted Operating Cash Flow per Share
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
Net Debt and Net Debt Excluding Lease Liabilities
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) 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)
46
===== SIDA 69 =====
Other Information and Advisories
Related Party Transactions
The Company enters into related party transactions that are in the normal course of business and on an arm’s length basis.
Related party disclosures can be found in Note 21 of the Company’s condensed interim consolidated financial statements
for the three and six months ended June 30, 2025.
Changes in Accounting Policies
The accounting policies applied in the Company’s condensed interim consolidated financial statements for the three and six
months ended June 30, 2025 are the same as those applied in the Company’s consolidated financial statements for the year
ended December 31, 2024. For further information on the Company’s accounting policies refer to Note 2 of each of the
Company’s consolidated financial statements for the year ended December 31, 2024 and the Company’s condensed interim
consolidated financial statements for the three and six months ended June 30, 2025.
Critical Accounting Estimates and Judgments
The preparation of consolidated financial statements in conformity with IFRS requires management to make judgements,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities,
income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed
at each period end. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in
any future periods affected.
For further information on the Company’s significant accounting estimates and judgements, refer to Note 2 of the
Company’s consolidated financial statements for the year ended December 31, 2024 . There have been no subsequent
material changes to these significant accounting estimates and judgements.
Disclosure Controls and Procedures
Disclosure controls and procedures have been designed to provide reasonable assurance that all material information
related to the Company is identified and communicated on a timely basis. Management of the Company, under the
supervision of the President and Chief Executive Officer and the Executive Vice President and Chief Financial Officer, is
responsible for the design and operation of disclosure controls and procedures. Management has evaluated the
effectiveness of the Company’s disclosure controls and procedures and has concluded that they were effective as at
December 31, 2024.
There have been no changes in the Company's disclosure controls and procedures during the three months ended June 30,
2025 that have materially affected, or are reasonably likely to materially affect, the Company's financial reporting.
Internal Control over Financial Reporting (“ICFR”)
Management of the Company, under the supervision of the President and Chief Executive Officer and the Executive Vice
President and Chief Financial Officer, is responsible for establishing and maintaining adequate ICFR. The Company’s ICFR is
designed to provide reasonable assurance regarding the reliability of financial reporting and preparation of financial
statements for external purposes in accordance with IFRS. However, due to inherent limitations ICFR may not prevent or
detect all misstatements and fraud. Management will continue to monitor the effectiveness of its ICFR and may make
modifications from time to time as considered necessary.
Management assesses the effectiveness of the Company’s ICFR using the Internal Control – Integrated Framework (2013
Framework) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Management
conducted an evaluation of the effectiveness of ICFR and concluded that it was effective as at December 31, 2024.
There have been no changes in the Company’s ICFR during the three months ended June 30, 2025 that have materially
affected, or are reasonably likely to materially affect, the Company’s ICFR.
47
===== SIDA 70 =====
Risks and Uncertainties
The Company’s business activities are subject to a variety and wide range of inherent risks and uncertainties. Any of these
risks could have an adverse effect on the Company, its business and prospects, and could cause actual outcomes and results
to differ materially from those described in forward-looking statements relating to the Company.
For additional discussion on Lundin Mining’s risks, refer to the “Risks and Uncertainties” section of the Company’s Annual
Information Form (“AIF”) for the year ended December 31, 2024, the "Risks and Uncertainties" section of the Company's
MD&A for the year ended December 31, 2024, and the “Cautionary Statement on Forward-Looking Information” section of
this MD&A.
National Instrument 43-101 Compliance
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 defined
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.
Other Information
Additional information regarding the Company, including the Company’s AIF, can be obtained on
SEDAR+ (www.sedarplus.com) and on the Company’s website (www.lundinmining.com).
Outstanding Share Data
The table below summarizes the Company’s common shares and securities convertible into common shares as at August 6,
2025.
August 6, 2025
Common shares issued and outstanding 856,000,994
Stock options outstanding
(weighted average exercise price of C$10.69) 4,565,567
Time vesting share units1 1,480,151
Performance vesting share units2 1,358,888
1 Time vesting share units represent the right to receive one common share (subject to adjustments) issued from treasury.
2 Performance vesting share units (“PSU”) represent the right to receive a variable number of common shares (subject to adjustments) issued from
treasury contingent upon achieving applicable performance vesting conditions. The number of common shares listed above in respect of PSU
assumes that 100% of PSU granted (without change) will vest and be paid out in common shares on a one for one basis. However, as noted, the final
number of PSU that may be earned and redeemed may be higher or lower than the PSU initially granted.
48
===== SIDA 71 =====
Condensed Interim Consolidated Financial Statements of
Lundin Mining Corporation
June 30, 2025
(Unaudited)
===== SIDA 72 =====
LUNDIN MINING CORPORATION
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS As at
(Unaudited - in millions of US dollars) June 30,
2025
December 31,
2024
ASSETS
Cash and cash equivalents $ 279.3 $ 357.5
Trade and other receivables (Note 5) 591.0 510.9
Income taxes receivable 12.4 14.4
Inventories (Note 6) 554.9 590.7
Marketable securities — 50.1
Current portion of derivative assets (Note 18) 5.3 1.0
Other current assets 38.1 22.6
Assets held for sale (Note 3) — 1,389.7
Total current assets 1,481.0 2,936.9
Restricted funds 10.5 8.6
Long-term inventory (Note 6) 922.7 871.9
Derivative assets (Note 18) 3.3 0.7
Other non-current assets 52.2 18.4
Mineral properties, plant and equipment (Note 7) 7,079.6 6,244.6
Deferred tax assets 187.6 191.3
Goodwill 134.3 134.3
8,390.2 7,469.8
Total assets $ 9,871.2 $ 10,406.7
LIABILITIES
Trade and other payables (Note 8) $ 620.9 $ 674.2
Income taxes payable 68.0 128.3
Current portion of derivative liabilities (Note 18) 12.2 39.4
Current portion of debt and lease liabilities (Note 9) 239.9 395.2
Current portion of deferred revenue (Note 10) 58.9 60.6
Current portion of reclamation and other closure provisions (Note 11) 24.1 20.9
Liabilities held for sale (Note 3) — 393.1
Total current liabilities 1,024.0 1,711.7
Derivative liabilities (Note 18) 11.9 24.5
Debt and lease liabilities (Note 9) 415.1 1,610.9
Deferred revenue (Note 10) 427.0 447.1
Reclamation and other closure provisions (Note 11) 330.8 323.3
Deferred consideration and other long-term liabilities 139.2 129.6
Deferred tax liabilities 637.8 643.8
1,961.8 3,179.2
Total liabilities 2,985.8 4,890.9
SHAREHOLDERS' EQUITY
Share capital (Note 12) 5,323.0 4,585.6
Contributed surplus 52.2 51.3
Accumulated other comprehensive loss (23.8) (375.8)
Retained earnings 404.6 161.1
Equity attributable to Lundin Mining Corporation shareholders 5,756.0 4,422.2
Non-controlling interests (Note 13) 1,129.4 1,093.6
Total shareholders' equity 6,885.4 5,515.8
Total liabilities and shareholders' equity $ 9,871.2 $ 10,406.7
Commitments and contingencies (Note 19)
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
- 1 -
===== SIDA 73 =====
LUNDIN MINING CORPORATION
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited - in millions of US dollars, except for shares and per share amounts)
Three months ended
June 30,
Six months ended
June 30,
2025 2024 2025 2024
Continuing Operations:
Revenue (Note 14) $ 937.2 $ 878.3 $ 1,901.1 $ 1,690.6
Cost of goods sold
Production costs (Note 15) (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
General and administrative expenses (18.2) (13.1) (36.5) (29.9)
Exploration and business development (12.4) (11.3) (24.2) (22.1)
Finance income (Note 16) 4.9 5.3 8.8 9.0
Finance costs (Note 16) (25.3) (38.4) (73.1) (75.4)
Other income (expense) (Note 17) 8.9 (4.3) 6.1 (1.2)
Earnings before income taxes from continuing operations 229.2 166.7 461.3 306.5
Current tax expense (86.3) (50.4) (134.4) (96.2)
Deferred tax recovery (expense) 16.7 3.1 14.0 (7.8)
Net earnings from continuing operations $ 159.6 $ 119.4 $ 340.9 $ 202.5
Net earnings from discontinued operations, net of taxes (Note 3) 102.4 37.3 88.7 12.8
Net earnings $ 262.0 $ 156.7 $ 429.6 $ 215.3
Net earnings from continuing operations attributable to:
Lundin Mining Corporation 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 $ 202.5
Net earnings attributable to
Lundin Mining Corporation 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
Basic and diluted earnings per share from continuing operations
attributable to Lundin Mining Corporation shareholders: $ 0.15 $ 0.11 $ 0.31 $ 0.16
Basic and diluted earnings per share from discontinued operations
attributable to Lundin Mining Corporation shareholders: $ 0.12 $ 0.05 $ 0.10 $ 0.02
Basic earnings per share attributable to Lundin Mining Corporation
shareholders: $ 0.27 $ 0.16 $ 0.41 $ 0.18
Diluted earnings per share attributable to Lundin Mining Corporation
shareholders: $ 0.27 $ 0.16 $ 0.41 $ 0.17
Weighted average shares outstanding (Note 12) 856,788,215 776,173,888 854,532,557 774,033,611
Weighted average diluted shares outstanding (Note 12) 858,849,973 779,088,142 856,597,766 776,430,838
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
- 2 -
===== SIDA 74 =====
LUNDIN MINING CORPORATION
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited - in millions of US dollars)
Three months ended
June 30,
Six months ended
June 30,
2025 2024 2025 2024
Net earnings $ 262.0 $ 156.7 $ 429.6 $ 215.3
Other comprehensive income (loss), net of taxes
Item that will not be reclassified to net earnings:
Remeasurements for post-employment benefit plans — (0.1) 0.2 (0.4)
Item that may be reclassified subsequently to net earnings:
Effects of foreign exchange 27.2 (6.9) 79.1 (46.3)
Item that was reclassified to net earnings:
Reclassification of cumulative foreign currency translation reserve to
statement of earnings on disposal of discontinued operations 269.2 — 269.2 —
Other comprehensive income (loss) 296.4 (7.0) 348.5 (46.7)
Total comprehensive income $ 558.4 $ 149.7 $ 778.1 $ 168.6
Comprehensive income attributable to:
Lundin Mining Corporation shareholders $ 524.9 $ 114.5 $ 701.3 $ 88.8
Non-controlling interests 33.5 35.2 76.8 79.8
Total comprehensive income $ 558.4 $ 149.7 $ 778.1 $ 168.6
Total comprehensive income (loss) attributable to Lundin Mining
Corporation shareholders arising from:
Continuing operations $ 123.6 $ 77.8 $ 265.8 $ 122.2
Discontinued operations 401.3 36.7 435.5 (33.4)
Comprehensive income attributable to Lundin Mining Corporation
shareholders $ 524.9 $ 114.5 $ 701.3 $ 88.8
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
- 3 -
===== SIDA 75 =====
LUNDIN MINING CORPORATION
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Unaudited - in millions of US dollars, except for shares)
Number of
shares
Share
capital
Contributed
surplus
Accumulated
other
comprehensive
loss
Retained
earnings
Non-
controlling
interests Total
Balance, December 31, 2024 774,102,971 $ 4,585.6 $ 51.3 $ (375.8) $ 161.1 $ 1,093.6 $ 5,515.8
Acquisition of Filo Corp. (Note 4) 94,074,959 799.8 — — — — 799.8
Distributions — — — — — (41.0) (41.0)
Exercise of share-based awards 878,533 7.5 (3.6) — — — 3.9
Share-based compensation — — 4.5 — — — 4.5
Dividends declared (Note 12(d)) — — — — (71.7) — (71.7)
Shares purchased (Note 12(e)) (13,058,800) (69.9) — — (34.1) — (104.0)
Net earnings — — — — 352.8 76.8 429.6
Other comprehensive income — — — 348.5 — — 348.5
Reclassification of pension remeasurements to retained
earnings on disposal of discontinued operations — — — 3.5 (3.5) — —
Total comprehensive income — — — 352.0 349.3 76.8 778.1
Balance, June 30, 2025 855,997,663 $ 5,323.0 $ 52.2 $ (23.8) $ 404.6 $ 1,129.4 $ 6,885.4
Balance, December 31, 2023 773,667,789 $ 4,574.8 $ 55.2 $ (296.6) $ 627.9 $ 1,456.8 $ 6,418.1
Distributions — — — — — (20.0) (20.0)
Exercise of share-based awards 3,057,740 29.8 (9.8) — — — 20.0
Share-based compensation — — 3.3 — — — 3.3
Dividends declared — — — — (102.4) — (102.4)
Net earnings — — — — 135.5 79.8 215.3
Other comprehensive (loss) income — — — (46.7) — — (46.7)
Total comprehensive (loss) income — — — (46.7) 135.5 79.8 168.6
Balance, June 30, 2024 776,725,529 $ 4,604.6 $ 48.7 $ (343.3) $ 661.0 $ 1,516.6 $ 6,487.6
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
- 4 -
===== SIDA 76 =====
LUNDIN MINING CORPORATION
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited - in millions of US dollars)
Three months ended
June 30,
Six months ended
June 30,
Cash provided by (used in) 2025 2024 2025 2024
Operating activities
Net earnings from continuing operations $ 159.6 $ 119.4 $ 340.9 $ 202.3
Items not involving cash and other adjustments
Depreciation, depletion and amortization 159.3 159.2 297.4 308.6
Share-based compensation 3.4 1.7 4.8 3.4
Unrealized foreign exchange (gain) loss (1.4) 3.2 7.9 (11.6)
Finance costs, net (Note 16) 20.4 33.1 64.3 66.4
Recognition of deferred revenue (Note 10) (15.4) (14.7) (35.0) (32.0)
Deferred tax (recovery) expense (16.7) (3.1) (14.0) 7.8
Write-down of assets (Note 17) — 17.2 — 17.2
Revaluation of foreign currency and commodity derivatives (Note 18) (8.8) (3.0) (33.1) 30.3
Gain on partial disposal of subsidiary (Note 4) — — (3.0) —
Other 0.2 (4.8) 18.3 (5.7)
Reclamation payments (Note 11) (2.6) (3.2) (4.7) (8.1)
Pension payments (0.8) (0.6) (1.6) (1.3)
Changes in long-term inventory (20.0) (13.2) (28.0) 8.0
Changes in non-cash working capital items (Note 22) 37.4 148.8 (177.3) 87.0
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 operations 20.0 51.8 74.5 87.0
334.6 491.8 511.4 759.3
Investing activities
Investment in mineral properties, plant and equipment (157.5) (217.2) (333.5) (452.4)
Acquisition of Filo Corp. (Note 4) — — (610.7) —
Proceeds from partial disposal of subsidiary (Note 4) — — 689.5 —
Proceeds from disposal of subsidiaries, net of cash disposed and
transaction costs (Note 3) 1,314.6 — 1,314.6 —
Interest received 4.9 6.6 8.8 8.4
Other (2.6) (2.4) (10.3) (3.3)
Cash provided by (used in) investing activities related to continuing
operations 1,159.4 (213.0) 1,058.4 (447.3)
Cash used in investing activities related to discontinued operations (8.9) (39.2) (57.3) (74.6)
1,150.5 (252.2) 1,001.1 (521.9)
Financing activities
Proceeds from debt (Note 9) 213.6 224.5 1,368.1 492.3
Principal repayments of debt (Note 9) (1,668.9) (223.8) (2,724.9) (357.1)
Principal payments of lease liabilities (Note 9) (15.3) (18.4) (30.5) (33.1)
Interest paid (12.9) (28.7) (46.8) (55.2)
Dividends paid to shareholders (72.0) (102.2) (72.0) (102.2)
Shares purchased (Note 12) (36.2) — (107.7) —
Proceeds from common shares issued 3.2 12.4 3.9 20.0
Distributions paid to non-controlling interests (41.0) (20.0) (41.0) (20.0)
Net payment from settlement of foreign currency and commodity
derivatives (0.4) (3.1) (14.0) (2.3)
Other (0.7) 2.6 (0.6) 2.7
Cash used in financing activities related to continuing operations (1,630.6) (156.7) (1,665.5) (54.9)
Cash (used in) provided by financing activities related to discontinued
operations (0.1) 0.8 (2.6) 1.2
(1,630.7) (155.9) (1,668.1) (53.7)
Effect of foreign exchange on cash balances (0.6) 3.7 2.6 0.2
(Decrease) increase in cash and cash equivalents during the period (146.2) 87.4 (153.0) 184.0
Cash and cash equivalents, beginning of period 425.5 365.5 432.3 268.8
Cash and cash equivalents, end of period $ 279.3 $ 452.8 $ 279.3 $ 452.8
Supplemental cash flow information (Note 22)
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
- 5 -
===== SIDA 77 =====
1. NATURE OF OPERATIONS
Lundin Mining Corporation ("Lundin Mining" or the "Company") is a diversified Canadian base metals mining company
primarily producing copper, gold and nickel. The Company owns 80% of the Candelaria and Ojos del Salado mining
complex (“Candelaria”) and 70% of the Caserones mine, each of which are located in Chile. The Company’s wholly-
owned operating assets include the Chapada mine located in Brazil and the Eagle mine located in the United States of
America (“USA”). The Company also has a 50% ownership interest in Vicuña Corp., holding the Josemaria project in
Argentina and Filo del Sol project in Argentina and Chile ("Vicuña").
On April 16, 2025, the Company completed the previously announced transaction to sell its 100% interests in
Somincor-Sociedade Mineira de Neves-Corvo, S.A. ("Neves-Corvo") in Portugal and its 100% interests in each of
Zinkgruvan Mining AB and North Atlantic Natural Resources AB (together "Zinkgruvan") in Sweden. The assets and
liabilities of the Neves-Corvo mine and the Zinkgruvan mine were classified as held for sale on December 31, 2024. The
operating results of these segments for the three and six months ended June 30, 2024 have been re-presented as a
single line item of net (loss) earnings from discontinued operations, net of taxes on the consolidated statement of
earnings (Note 3).
The Company’s common shares are listed on the Toronto Stock Exchange (“TSX”) in Canada and the Nasdaq Stockholm
Exchange in Sweden. The Company is incorporated under the Canada Business Corporations Act. The Company is
domiciled in Canada and its principal place of business is 1055 Dunsmuir Street, Suite 2800, Vancouver, British
Columbia, Canada.
2. BASIS OF PRESENTATION AND SUMMARY OF MATERIAL ACCOUNTING POLICIES
(i) Basis of presentation and measurement
The unaudited condensed interim consolidated financial statements have been prepared in accordance with
International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS
Accounting Standards”) and which the Canadian Accounting Standards Board has approved for incorporation into
Part 1 of the CPA Canada Handbook - Accounting, including IAS 34 Interim Financial Reporting. The condensed
interim consolidated financial statements should be read in conjunction with the annual consolidated financial
statements for the year ended December 31, 2024.
The Company's presentation currency is United States (“US”) dollars. Reference herein to $ or USD is to US
dollars, C$ or CAD is to Canadian dollars, SEK is to Swedish krona, € refers to the Euro , CLP refers to the Chilean
peso, BRL refers to the Brazilian real, and ARS refers to the Argentine peso.
These condensed interim consolidated financial statements were approved by the Board of Directors of the
Company for issue on August 6, 2025.
(ii) Material accounting policies
The accounting policies followed in these condensed interim consolidated financial statements are consistent
with those disclosed in Note 2 of the Company’s consolidated financial statements for the year ended December
31, 2024. Except as described in Note 2(iv), there were no changes or additions to material accounting policies
during the three and six months ended June 30, 2025.
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2025 and 2024
(Unaudited - Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 6 -
===== SIDA 78 =====
(iii) New standards and interpretations not yet adopted
IFRS 18 - Presentation and Disclosure in Financial Statements
In April 2024, the IASB issued IFRS 18 - Presentation and Disclosure in Financial Statements, which replaces IAS 1 -
Presentation of Financial Statements. IFRS 18 introduces a specified structure for the income statement by
requiring income and expenses to be presented into three defined categories (operating, investing, and
financing) and by specifying certain defined totals and subtotals. Where company-specific measures related to
the income statement are provided ("management-defined performance measures"), IFRS 18 requires disclosure
of the explanations around those measures. IFRS 18 also provides additional guidance on principles of
aggregation and disaggregation which apply to the primary financial statements and notes. IFRS 18 will not
impact the recognition and measurement of items in the financial statements, nor will it impact which items are
classified in other comprehensive income and how these items are classified. The standard is effective for
reporting periods beginning on or after January 1, 2027, including for interim financial statements, and
retrospective application is required. The Company is currently assessing the effect of this new standard on its
financial statements.
(iv) Interests in joint arrangements
A joint arrangement can take the form of a joint venture or a joint operation. All joint arrangements involve a
contractual arrangement that establishes joint control which exists when decisions about the activities that
significantly affect the returns of the investee require unanimous consent of the parties sharing control. A joint
venture is a joint arrangement in which the Company has rights to only the net assets of the arrangement. A joint
operation is a joint arrangement in which the Company has the rights to the assets and obligations for the
liabilities relating to the arrangement. Joint operations are accounted for by recognizing the Company's share of
the assets, liabilities, revenue, expenses and cash flows of the joint operation in the consolidated financial
statements.
3. DISCONTINUED OPERATIONS
On December 9, 2024, the Company entered into a definitive agreement to sell its 100% interests in the Neves-Corvo
and Zinkgruvan mines to Boliden AB ("Boliden"). The transaction constitutes the sale of all of the Company's European
operating assets allowing the Company to focus on its copper-dominant assets in South America. The transaction
completed on April 16, 2025 and the Company received cash consideration of $1.4 billion. The Company may also
receive up to $150.0 million in contingent cash consideration if certain metal price thresholds are met. These include a
percentage of incremental revenue realized at the Neves-Corvo mine in each of the three calendar years between
2025 and 2027 and at the Zinkgruvan mine between 2025 and 2026. The estimated fair value of the contingent
consideration on April 16, 2025 was $44.1 million (Note 18). The contingent consideration was revalued as at June 30,
2025 to $41.0 million and the loss on revaluation of $3.1 million was recorded in the net earnings (loss) from
discontinued operations. The contingent consideration is included in other non-current assets and the current portion
is included in other current assets of the consolidated balance sheet.
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2025 and 2024
(Unaudited - Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 7 -
===== SIDA 79 =====
On closing, the Company recognized a gain on disposal of $106.4 million, net of income tax, calculated as follows:
Neves-Corvo mine Zinkgruvan mine Total
Cash consideration $ 773.6 $ 628.5 $ 1,402.1
Fair value of contingent consideration 41.7 2.4 44.1
Transaction costs (4.7) (3.8) $ (8.5)
Net proceeds $ 810.6 $ 627.1 $ 1,437.7
Net assets Neves-Corvo mine Zinkgruvan mine Total
Cash and cash equivalents $ 20.0 $ 59.0 $ 79.0
Trade and other receivables 77.5 9.7 87.2
Inventories 45.9 22.8 68.7
Restricted funds 52.4 — 52.4
Mineral properties, plant and equipment 840.2 344.9 1,185.1
Trade and other payables (85.8) (36.5) (122.3)
Income taxes receivable (payable) 0.9 (8.2) (7.3)
Debt and lease liabilities (16.4) (0.6) (17.0)
Deferred revenue (27.2) (44.0) (71.2)
Reclamation and other closure provisions (98.7) (50.1) (148.8)
Other long-term liabilities (8.4) (4.4) (12.8)
Deferred tax liabilities — (30.9) (30.9)
800.4 261.7 1,062.1
Gain on disposal before reclassification of foreign currency translation
reserve 10.2 365.4 375.6
Reclassification of foreign currency translation reserve to earnings (161.4) (107.8) (269.2)
Net gain (loss) on disposal $ (151.2) $ 257.6 $ 106.4
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2025 and 2024
(Unaudited - Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 8 -
===== SIDA 80 =====
The net (loss)/earnings from discontinued operations from the Neves-Corvo reporting segment, which include the
results of operating activities for the three and six months ended June 30, 2025 and 2024, are as follows:
Three months ended
June 30,
Six months ended
June 30,
2025(a) 2024 2025(b) 2024
Revenues $ 19.9 $ 128.7 $ 128.3 $ 209.3
Production costs (14.3) (83.1) (90.2) (154.8)
Depreciation, depletion and amortization — (29.7) — (56.7)
General exploration and business development (0.3) (0.2) (2.0) (0.4)
Finance income — — 0.3 0.1
Finance costs (0.4) (2.1) (4.2) (3.4)
Other (expense) income (5.6) (0.5) (6.5) (4.7)
Asset impairment — — (65.7) —
Earnings (loss) before income taxes (0.7) 13.1 (40.0) (10.6)
Current tax expense — (0.7) (0.1) (0.8)
Deferred tax (expense) recovery — (1.2) 0.2 3.7
Net (loss) earnings before disposal $ (0.7) $ 11.2 $ (39.9) $ (7.7)
Loss on disposal of Neves-Corvo (151.2) — (151.2) —
Net (loss) earnings $ (151.9) $ 11.2 $ (191.1) $ (7.7)
The net earnings (loss) from discontinued operations from the Zinkgruvan reporting segment, which include the results
of operating activities for the three and six months ended June 30, 2025 and 2024, are as follows:
Three months ended
June 30,
Six months ended
June 30,
2025(a) 2024 2025(b) 2024
Revenues $ 0.8 $ 76.6 $ 72.4 $ 120.7
Production costs (2.7) (32.7) (36.9) (62.8)
Depreciation, depletion and amortization — (8.8) — (16.8)
General exploration and business development (0.3) (2.1) (3.4) (4.5)
Finance income 0.1 — 0.5 —
Finance costs (0.1) (1.1) (1.3) (2.3)
Other (expense) income (2.3) 1.2 (3.6) (8.0)
Earnings (loss) before income taxes (4.5) 33.1 27.7 26.3
Current tax recovery (expense) 1.3 (7.0) (2.9) (8.4)
Deferred tax (expense) recovery (0.1) — (2.6) 2.6
Net earnings (loss) before disposal $ (3.3) $ 26.1 $ 22.2 $ 20.5
Gain on disposal of Zinkgruvan 257.6 — 257.6 —
Net earnings $ 254.3 $ 26.1 $ — $ 279.8 $ 20.5
The total net earnings from discontinued operations, which includes the Neves-Corvo and Zinkgruvan reporting
segments, for the three and six months ended June 30, 2025 and 2024, are as follows:
Three months ended
June 30,
Six months ended
June 30,
2025(a) 2024 2025(b) 2024
Total net earnings from discontinued operations $ 102.4 $ 37.3 $ 88.7 $ 12.8
(a) Includes financial results from April 1, 2025 to April 16, 2025.
(b) Includes financial results from January 1, 2025 to April 16, 2025.
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2025 and 2024
(Unaudited - Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 9 -
===== SIDA 81 =====
The assets and liabilities that are included in the held for sale categories as at December 31, 2024 are summarized
below:
As at December 31, 2024
Neves-Corvo mine Zinkgruvan mine Total
Assets classified as held-for-sale
Cash and cash equivalents $ 23.9 $ 50.9 $ 74.8
Trade and other receivables 90.2 22.9 113.1
Income taxes receivable 0.8 — 0.8
Inventories 39.7 16.5 56.2
Restricted funds 49.6 — 49.6
Mineral properties, plant and equipment 810.6 284.6 1,095.2
$ 1,014.8 $ 374.9 $ 1,389.7
Liabilities classified as held-for-sale
Trade and other payables $ 99.8 $ 32.4 $ 132.2
Income taxes payable — 7.8 7.8
Debt and lease liabilities 15.7 0.6 16.3
Deferred revenue 25.1 39.2 64.3
Reclamation and other closure provisions 89.9 44.2 134.1
Other long-term liabilities 7.7 4.5 12.2
Deferred tax liabilities — 26.2 26.2
$ 238.2 $ 154.9 $ 393.1
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2025 and 2024
(Unaudited - Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 10 -
===== SIDA 82 =====
4. ACQUISITION OF FILO AND FORMATION OF VICUÑA
On January 15, 2025, the Company, together with BHP Investments Canada Inc. ("BHP"), completed the acquisition of
Filo Corp. ("Filo") through a plan of arrangement (the “Arrangement”). The Company’s share of the consideration for
the Arrangement was $610.7 million (C$877.8 million) in cash and 94.1 million of the Company’s shares to Filo
shareholders, along with its existing 1.7% interest in Filo (prior to completion). BHP's share of the consideration for the
Arrangement was $1.4 billion (C$2.0 billion) in cash, along with its existing 7.0% interest in Filo (prior to completion).
Concurrently, BHP paid the Company cash consideration of $689.5 million for a 50% interest in the Josemaria project,
and the Company and BHP formed the Vicuña 50/50 independently managed joint arrangement holding interests in
the Filo del Sol project and the Josemaria project (the "Vicuña Project").
The Company has concluded the Vicuña joint arrangement is a joint operation upon considering other facts and
circumstances, such as the right and the obligation to take a share of the output of the arrangement. Accordingly, the
Company includes its 50% share of the respective assets, liabilities, expenses, and cash flows of Vicuña in the
consolidated financial statements of the Company.
The purchase price of Filo (50% share) is as follows:
Cash consideration $ 610.7
Fair value of 94,074,959 common shares issued by the Company (a) (b) 799.8
Transaction costs 10.1
The Company's previously held common shares in Filo (b) 49.9
Total purchase price $ 1,470.5
a) The fair value of the common shares issued was determined using the Company’s share price of C$12.22 and
foreign exchange rate of USD/CAD: 1.437 at the close of business on January, 15, 2025.
b) Immediately prior to the acquisition of Filo, the Company held 2,264,924 Filo shares with a fair value of $49.9
million (December 31, 2024 - $50.1 million).
The Company's initial interest in Vicuña, including transaction costs, is comprised of the following:
50% interest in
Filo
50% interest
in Josemaria
50% share of
Vicuña on
formation
Cash and cash equivalents $ 17.3 $ 7.0 24.3
Receivables and other assets 0.5 $ 1.2 1.7
Mineral properties, plant and equipment 1,456.7 701.1 2,157.8
Total assets 1,474.5 709.3 2,183.8
Trade and other payables (4.0) (19.8) (23.8)
Total liabilities (4.0) (19.8) (23.8)
Total net assets $ 1,470.5 $ 689.5 $ 2,160.0
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2025 and 2024
(Unaudited - Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 11 -
===== SIDA 83 =====
5. TRADE AND OTHER RECEIVABLES
Trade and other receivables are comprised of the following:
June 30, 2025 December 31, 2024
Trade receivables $ 466.6 $ 347.8
Value added tax 50.8 53.0
Prepaid expenses 24.2 42.6
Other receivables 49.4 67.5
$ 591.0 $ 510.9
6. INVENTORIES
Inventories are comprised of the following:
June 30, 2025 December 31, 2024
Materials and supplies $ 299.8 $ 279.4
Ore stockpiles and dump leach 196.1 188.8
Finished goods - concentrate stockpiles 50.8 116.6
Finished goods - copper cathode 8.2 5.9
$ 554.9 $ 590.7
Long-term inventories are comprised of the following:
June 30, 2025 December 31, 2024
Ore stockpiles at Candelaria $ 530.5 $ 480.9
Ore stockpiles at Chapada 302.8 299.9
Dump leach at Caserones 89.4 91.1
$ 922.7 $ 871.9
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2025 and 2024
(Unaudited - Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 12 -
===== SIDA 84 =====
7. MINERAL PROPERTIES, PLANT AND EQUIPMENT
Mineral properties, plant and equipment ("MPP&E") are comprised of the following:
Cost
Mineral
properties
Plant and
equipment
Assets under
construction(a)
Development
project(b)
Software
intangible
assets Total
As at December 31, 2023 $ 6,014.8 $ 5,308.0 $ 330.3 $ 1,130.1 $ 63.6 $ 12,846.8
Additions 127.1 33.3 202.6 159.1 0.1 522.2
Write-down — — — (17.2) — (17.2)
Disposals — (6.7) — — — (6.7)
Transfers 33.1 137.1 (170.3) — 0.1 —
Effects of foreign
exchange (77.6) (39.8) (3.6) — (0.3) (121.3)
As at June 30, 2024 6,097.4 5,431.9 359.0 1,272.0 63.5 13,223.8
Additions 112.1 66.7 165.3 106.4 0.6 451.1
Impairment (331.2) (111.7) (1.1) — — (444.0)
Write-downs — — (4.1) (0.8) — (4.9)
Disposals — (84.8) — — — (84.8)
Transfers 35.5 148.5 (185.5) — 1.5 —
Effects of foreign
exchange (56.8) (33.0) (2.7) — (0.2) (92.7)
Reclassification to assets
held for sale (Note 3) (1,720.5) (1,009.2) (79.3) — (7.2) (2,816.2)
As at December 31, 2024 4,136.5 4,408.4 251.6 1,377.6 58.2 10,232.3
Formation of Vicuña(c)
(Note 4) — (16.5) — 785.6 — 769.1
Additions 109.2 29.6 145.2 93.3 1.7 379.0
Disposals (1.9) (3.7) — — — (5.6)
Transfers 9.5 41.2 (50.8) — 0.1 —
As at June 30, 2025 $ 4,253.3 $ 4,459.0 $ 346.0 $ 2,256.5 $ 60.0 $ 11,374.8
(a) Represent assets under construction at the Company's operating mine sites which are currently non-depreciable.
(b) Assets relate to the Vicuña Project which are currently non-depreciable.
(c) Formation of Vicuña movements in cost of $769.1 million and accumulated depreciation of $4.0 million, totaling $773.1 million,
includes the 50% interest in Filo of $1,456.7 million less the 50% interest in Josemaria sold to BHP of $683.6 million and are
inclusive of capitalized borrowings and transaction costs.
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2025 and 2024
(Unaudited - Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 13 -
===== SIDA 85 =====
Accumulated depreciation,
depletion and amortization
Mineral
properties
Plant and
equipment
Assets under
construction(a)
Development
project(b)
Software
intangible
assets Total
As at December 31, 2023 $ 3,194.1 $ 1,910.4 $ — $ — $ 17.0 $ 5,121.5
Depreciation 156.0 211.0 — — 4.8 371.8
Disposals — (5.8) — — — (5.8)
Effects of foreign exchange (50.4) (19.3) — — (0.2) (69.9)
As at June 30, 2024 3,299.7 2,096.3 — — 21.6 5,417.6
Depreciation 212.2 208.6 — — 4.5 425.3
Disposals — (79.4) — — — (79.4)
Effects of foreign exchange (37.8) (17.0) — — (0.1) (54.9)
Reclassification to assets
held for sale (Note 3) (1,187.6) (530.0) — — (3.3) (1,720.9)
As at December 31, 2024 2,286.5 1,678.5 — — 22.7 3,987.7
Formation of Vicuña(c)
(Note 4) — (4.0) — — — (4.0)
Depreciation 142.6 168.3 — — 4.3 315.2
Disposals — (3.7) — — — (3.7)
As at June 30, 2025 $ 2,429.1 $ 1,839.1 $ — $ — $ 27.0 $ 4,295.2
(a) Represent assets under construction at the Company's operating mine sites which are currently non-depreciable.
(b) Assets relate to the Vicuña Project which are currently non-depreciable.
(c) Formation of Vicuña movements in cost of $769.1 million and accumulated depreciation of $4.0 million, totaling $773.1 million,
includes the 50% interest in Filo of $1,456.7 million less the 50% interest in Josemaria sold to BHP of $683.6 million and are
inclusive of capitalized borrowings and transaction costs.
Net book value
Mineral
properties
Plant and
equipment
Assets under
construction
Development
project
Software
intangible
assets Total
As at December 31, 2024 $ 1,850.1 $ 2,730.0 $ 251.6 $ 1,377.5 $ 35.4 $ 6,244.6
As at June 30, 2025 $ 1,824.2 $ 2,619.9 $ 346.0 $ 2,256.5 $ 33.0 $ 7,079.6
During the three and six months ended June 30, 2025 , the Company capitalized $10.4 million and $11.7 million (June
30, 2024 - $8.9 million and $16.5 million), respectively, of finance costs related to the Vicuña Project at a weighted
average interest rate of 5.9% (June 30, 2024 - 6.0%).
During the three and six months ended June 30, 2025 , the Company capitalized $37.5 million and $93.6 million (June
30, 2024 - $39.3 million and $118.0 million), respectively, of deferred stripping costs to mineral properties. The
depreciation expense related to deferred stripping for the three and six months ended June 30, 2025 was $56.6 million
and $114.5 million (June 30, 2024 - $45.8 million and $68.4 million). Included in the mineral properties balance at June
30, 2025 is $2.2 million related to deferred stripping at Caserones ( December 31, 2024 - $436.3 million at Candelaria
and Caserones), which is currently non-depreciable.
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2025 and 2024
(Unaudited - Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 14 -
===== SIDA 86 =====
8. TRADE AND OTHER PAYABLES
Trade and other payables are comprised of the following:
June 30, 2025 December 31, 2024
Trade payables $ 310.1 $ 297.7
Unbilled goods and services 179.3 175.2
Employee benefits payable 59.0 68.8
Prepayment from customers — 45.0
Royalties payable 19.6 24.5
Sinkhole provision(a) 17.0 16.9
Automatic share purchase plan commitment(b) — 3.7
Pricing provisions on concentrate sales(c) 8.9 15.5
Deferred consideration, current portion(d) 10.0 10.0
Other 17.0 16.9
$ 620.9 $ 674.2
(a) Relates to expected remediation costs and potential fines directly related to the sinkhole near the Company's Ojos del
Salado operations.
(b) As at December 31, 2024, the Company recorded an accrual for the repurchase of shares on the last trading day of the
year that were settled during January 2025.
(c) Includes balances owing to customers and provisions arising from forward market price adjustments.
(d) Relates to the current portion of the remaining deferred cash consideration arising from the Caserones acquisition,
payable in installments in 2025 through 2029.
9. DEBT AND LEASE LIABILITIES
Debt and lease liabilities are comprised of the following:
June 30, 2025 December 31, 2024
Revolving credit facility (a) $ 220.5 $ 264.7
Term loan (b) — 1,147.7
Candelaria and Chapada term loans (c) 189.4 245.9
Lease liabilities (d) 245.1 249.1
Commercial paper (e) — 98.7
Debt and lease liabilities 655.0 2,006.1
Less: current portion 239.9 395.2
Long-term portion $ 415.1 $ 1,610.9
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2025 and 2024
(Unaudited - Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 15 -
===== SIDA 87 =====
The changes in debt and lease liabilities are comprised of the following:
Leases Debt Total
As at December 31, 2023 $ 277.2 $ 1,208.6 $ 1,485.8
Additions 23.5 492.3 515.8
Payments (45.3) (357.2) (402.5)
Disposals (1.5) — (1.5)
Interest 11.8 — 11.8
Financing fee amortization — 1.2 1.2
Deferred financing fee — (2.3) (2.3)
Effects of foreign exchange (6.5) (3.5) (10.0)
As at June 30, 2024 259.2 1,339.1 1,598.3
Additions 46.4 1,008.3 1,054.7
Payments (48.2) (587.2) (635.4)
Disposals (0.5) — (0.5)
Interest 12.3 — 12.3
Financing fee amortization — 1.2 1.2
Deferred financing fee — (1.3) (1.3)
Reclassified to liabilities held for sale (Note 3) (16.3) — (16.3)
Effects of foreign exchange (3.7) (3.0) (6.7)
As at December 31, 2024 249.2 1,757.1 2,006.3
Contribution to Vicuña (Note 4) (1.2) — (1.2)
Additions 21.1 1,368.1 1,389.2
Payments (42.0) (2,724.9) (2,766.9)
Interest 11.5 — 11.5
Financing fee amortization — 3.3 3.3
Deferred financing fee — (0.2) (0.2)
Effects of foreign exchange 6.5 6.5 13.0
As at June 30, 2025 245.1 409.9 655.0
Less: current portion 50.6 189.3 239.9
Long-term portion $ 194.5 $ 220.6 $ 415.1
a) The Company has a revolving credit facility of $1,750.0 million maturing April 2029. The credit facility bears
interest on drawn funds at rates of Term Secured Overnight Financing Rate (“Term SOFR”) plus Credit Spread
Adjustment (“CSA”) of 0.10% plus an applicable margin of 1.40% to 2.55%, depending on the Company’s net
leverage ratio and progress against sustainability performance targets. In March 2025 the security previously
held over certain assets in the USA was removed from the revolving credit facility . The facility remains subject
to customary covenants. During the three and six months ended June 30, 2025, the Company drew down
$105.0 million and $925.0 million (June 30, 2024 - $50.0 million and $115.0 million), respectively, and repaid
$300.0 million and $970.0 million (June 30, 2024 - $70.0 million and $85.0 million), respectively. As at June 30,
2025, a principal balance of $225.0 million (December 31, 2024 - $270.0 million) was outstanding, with
unamortized deferred financing fees of $4.5 million (December 31, 2024 - $5.3 million) netted against
borrowings.
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2025 and 2024
(Unaudited - Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 16 -
===== SIDA 88 =====
b) In April 2025, the Company repaid in full the $1,150.0 million outstanding balance of the term loan using the
proceeds from sale of the Neves-Corvo and Zinkgruvan mines (Note 3). As a result of the repayment, the term
loan has been extinguished and cannot be redrawn. During the three and six months ended June 30, 2025, the
remaining unamortized deferred financing fees of $2.3 million were recognized in finance costs.
c) Compañia Contractual Minera Candelaria S.A. ("Candelaria mine"), a subsidiary owned 80% by the Company
which owns the Candelaria mine, holds a series of unsecured fixed term loans. During the three and six months
ended June 30, 2025, Candelaria mine drew down $50.0 million (June 30, 2024 - $50.0 million and $115.0
million, respectively) and repaid $100.0 million (June 30, 2024 - $65.0 million) of the outstanding loans . As at
June 30, 2025, there was one term loan outstanding of $50.0 million (December 31, 2024 - two term loans
totaling $100.0 million). The outstanding term loan accrues interest at a rate of 4.78% per annum with interest
payable upon maturity in November 2025.
Mineração Maracá Indústria e Comércio S.A. (“Chapada”), a subsidiary of the Company which owns the
Chapada mine, holds a series of unsecured fixed term loans. During the three and six months ended June 30,
2025, Chapada drew down $58.6 million and $145.0 million (June 30, 2024 - $87.0 million and $132.3 million),
respectively, and repaid $63.7 million and $151.6 million (June 30, 2024 - $51.2 million and $71.7 million),
respectively. As at June 30, 2025, there were 42 term loans outstanding at Chapada totalling $139.3 million
(December 31, 2024 - 41 term loans totalling $145.9 million). These outstanding term loans accrue interest at
rates ranging fro m 5.46% to 5.99% per annum with interest payable upon maturity. The maturity dates range
from July to November 2025.
d) Lease liabilities relate to leases on power line infrastructure, buildings and storage facilities, rail cars, vehicles,
machinery and equipment which have remaining lease terms of one to twelve years and interest rates of 1.0% -
10.0% over the terms of the leases.
e) Neves-Corvo was party to three unsecured commercial paper programs with maturities ranging from May 2025
to July 2028. Pursuant to the terms of the transaction with Boliden, the Company repaid the $102.7 million
(€95.0 million) outstanding balance of the commercial papers immediately prior to the sale of Neves-Corvo and
this balance was not included in the net assets disposed (Note 3). During April 2025, the program was cancelled
and therefore as at June 30, 2025, $nil principal balance (December 31, 2024 - $98.7 million (€95.0 million)) was
outstanding.
During the three and six months ended June 30, 2025, Neves-Corvo drew down $nil and $248.1 million (€235.0
million) from the commercial paper program (June 30, 2024 - $37.5 million (€35 million) and $130.0 million
(€120.0 million)), respectively and repaid $105.2 million (€95.0 million) and $353.3 million (€33.0 million) ( June
30, 2024 - $37.6 million (€35 million) and $135.4 million (€125.0 million)), respectively.
The schedule of undiscounted lease payment and debt obligations is as follows:
Leases Debt Total
Less than one year $ 66.4 $ 189.3 $ 255.8
One to five years 146.7 225.0 371.7
More than five years 122.2 — 122.2
Total undiscounted obligations as at June 30, 2025 $ 335.3 $ 414.3 $ 749.7
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2025 and 2024
(Unaudited - Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 17 -
===== SIDA 89 =====
10. DEFERRED REVENUE
The following table summarizes the changes in deferred revenue:
As at December 31, 2023 $ 623.2
Recognition of revenue (35.6)
Finance costs 17.2
Effects of foreign exchange (3.4)
As at June 30, 2024 601.4
Recognition of revenue (42.7)
Variable consideration adjustment (1.6)
Finance costs 17.1
Reclassified to liabilities held for sale (Note 3) (64.3)
Effects of foreign exchange (2.2)
As at December 31, 2024 507.7
Recognition of revenue (35.0)
Finance costs 13.2
As at June 30, 2025 485.9
Less: current portion 58.9
Long-term portion $ 427.0
Consideration received under the Company’s gold, silver and copper streaming agreements is deemed to be variable
and can be subject to cumulative adjustments when the contractual volume to be delivered changes.
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2025 and 2024
(Unaudited - Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 18 -
===== SIDA 90 =====
11. RECLAMATION AND OTHER CLOSURE PROVISIONS
Reclamation and other closure provisions relating to the Company's mining operations are as follows:
Reclamation
provisions
Other closure
provisions Total
Balance, December 31, 2023 $ 497.1 $ 47.0 $ 544.1
Accretion 12.8 — 12.8
Changes in estimate (11.5) 2.2 (9.3)
Changes in discount rate (17.3) — (17.3)
Payments (6.0) (2.4) (8.4)
Effects of foreign exchange (5.8) (3.3) (9.1)
Balance, June 30, 2024 469.3 43.5 512.8
Accretion 12.7 — 12.7
Changes in estimate (19.9) 4.5 (15.4)
Changes in discount rate (16.8) — (16.8)
Payments (5.7) (3.6) (9.3)
Reclassification to liabilities held for sale (Note 3) (125.5) (8.6) (134.1)
Effects of foreign exchange (3.9) (2.0) (5.9)
Balance, December 31, 2024 310.2 33.8 344.0
Accretion 10.0 — 10.0
Changes in estimate 0.3 2.9 3.2
Payments (2.3) (2.4) (4.7)
Effects of foreign exchange — 2.4 2.4
Balance, June 30, 2025 318.2 36.7 354.9
Less: current portion 18.9 5.2 24.1
Long-term portion $ 299.3 $ 31.5 $ 330.8
The Company expects these liabilities to be settled between 2025 and 2110. The reclamation provisions are
discounted using current market pre-tax discount rates which range fro m 4.3% to 14.4% (December 31, 2024 - 4.3% to
14.4%)
12. SHARE CAPITAL
a) Basic and diluted weighted average number of shares outstanding
Three months ended
June 30,
Six months ended
June 30,
2025 2024 2025 2024
Basic weighted average number of shares outstanding 856,788,215 776,173,888 854,532,557 774,033,611
Effect of dilutive securities 2,061,758 2,914,254 2,065,209 2,397,227
Diluted weighted average number of shares
outstanding 858,849,973 779,088,142 856,597,766 776,430,838
Antidilutive securities 2,032,543 96,300 1,587,651 1,001,595
The effect of dilutive securities relates to in-the-money outstanding stock options and share units ("SUs").
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2025 and 2024
(Unaudited - Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 19 -
===== SIDA 91 =====
b) Stock options and share units granted
Three months ended
June 30,
Six months ended
June 30,
2025 2024 2025 2024
Stock options — — 1,746,600 1,498,160
Restricted share units and performance share units 39,353 — 859,113 1,041,450
c) Deferred share units
During the three and six months ended June 30, 2025, the Company granted 12,829 and 21,678 (June 30, 2024 -
16,858 and 25,062) deferred share units ("DSUs"), respectively. As at June 30, 2025, there were 45,299 DSUs
outstanding (June 30, 2024 - 13,457).
d) Dividends
During the three and six months ended June 30, 2025 , the Company declared dividends in the amount of $17.1
million and $71.7 million (June 30, 2024 - $51.1 million and $102.4 million), respectively, or C$0.0275 per share
and C$0.1175 per share (June 30, 2024 - C$0.09 and C$0.18), respectively.
e) Normal course issuer bid
During the three and six months ended June 30, 2025 , 4,629,000 and 13,058,800 shares were purchased by the
Company's broker under the automatic share purchase plan ("ASPP") or at management's discretion pursuant to
its normal course issuer bid ("NCIB") at an average price of C$ 10.91 and C$11.73 per share for total consideration
of $36.2 million and $104.0 million, respectively. All common shares purchased were cancelled.
No common shares were purchased under the NCIB during three and six months ended June 30, 2024.
13. NON-CONTROLLING INTERESTS AND JOINT OPERATIONS
a) Non-controlling interests
Set out below is a continuity schedule of the Company's non-controlling interest ("NCI") that is material to the
group. As part of its Candelaria segment, the Company owns 80% of the Candelaria mine and Compañia
Contractual Minera Ojos del Salado S.A.’s ("Ojos") copper mining operations and supporting infrastructure in Chile
(together the "Candelaria complex").
On July 2, 2024, the Company exercised its option to acquire an additional 19% interest in the issued and
outstanding equity of Lumina Copper, bringing the Company's ownership in Caserones from 51% to 70% and
reducing the NCI to 30%.
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2025 and 2024
(Unaudited - Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 20 -
===== SIDA 92 =====
The continuity of the Company's non-wholly owned subsidiaries with material NCI is as follows:
Candelaria
complex
Caserones
mine Total
NCI in subsidiary at June 30, 2025 20% 30%(a)
As at December 31, 2023 $ 594.8 $ 862.0 $ 1,456.8
Share of net comprehensive income (loss) 30.1 49.7 79.8
Distributions (20.0) — (20.0)
As at June 30, 2024 604.9 911.7 1,516.6
Share of net comprehensive income (loss) 41.3 21.2 62.5
Distributions (66.0) (66.0) (132.0)
Acquisition of additional interest in Caserones(a) — (353.5) (353.5)
As at December 31, 2024 580.2 513.4 1,093.6
Share of net comprehensive income (loss) 46.9 29.9 76.8
Distributions (20.0) (21.0) (41.0)
As at June 30, 2025 $ 607.1 $ 522.3 $ 1,129.4
(a) Prior to July 2, 2024, NCI in Caserones was 49%.
b) Joint operations
Set out below is summarized financial information for the Vicuña joint operation on a 50% basis:
Summarized balance sheets (50% share)
June 30, 2025 January 15, 2025
Total current assets $ 26.4 $ 25.7
Total non-current assets $ 2,230.7 $ 2,148.2
Total current liabilities $ 35.1 $ 20.7
Total non-current liabilities $ 1.5 $ 3.1
Summarized statements of earnings and comprehensive income (50% share)
Three months ended
June 30, 2025
Six months ended
June 30, 2025(a)
Net loss $ (3.2) $ (0.7)
Net comprehensive loss $ (3.2) $ (0.7)
Summarized statement of cash flows (50% share)
Three months ended
June 30, 2025
Six months ended
June 30, 2025(a)
Cash (used in) provided by operating activities $ (5.9) $ 0.5
Cash used in investing activities (31.8) (72.5)
Cash used in financing activities (0.7) (0.8)
Decrease in cash and cash equivalents during the period $ (38.4) $ (72.8)
(a) Includes financial results between the date of formation, January 15, 2025, and June 30, 2025.
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2025 and 2024
(Unaudited - Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 21 -
===== SIDA 93 =====
14. REVENUE
The Company's analysis of revenue from contracts with customers, segmented by product, is as follows:
Three months ended
June 30,
Six months ended
June 30,
2025 2024 2025 2024
Revenue from contracts with customers:
Copper $ 743.8 $ 666.5 $ 1,487.0 $ 1,314.6
Gold 93.9 54.9 173.7 109.6
Nickel 34.0 39.3 61.4 74.4
Molybdenum 16.7 31.5 41.8 70.3
Silver 11.9 10.6 25.4 20.7
Other 9.2 10.8 14.3 20.1
909.5 813.6 1,803.6 1,609.7
Provisional pricing adjustments on current period
concentrate sales 33.4 (18.8) 54.6 33.2
Provisional pricing adjustments on prior period
concentrate sales (5.7) 83.5 42.9 47.7
Revenue $ 937.2 $ 878.3 $ 1,901.1 $ 1,690.6
15. PRODUCTION COSTS
The Company's production costs are comprised of the following:
Three months ended
June 30,
Six months ended
June 30,
2025 2024 2025 2024
Direct mine and mill cost $ 458.0 $ 447.0 $ 929.1 $ 879.1
Transportation 28.4 25.2 56.5 42.4
Royalties 20.2 18.4 37.9 34.4
Total production costs $ 506.6 $ 490.6 $ 1,023.5 $ 955.9
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2025 and 2024
(Unaudited - Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 22 -
===== SIDA 94 =====
16. FINANCE INCOME AND COSTS
The Company's finance income and costs are comprised of the following:
Three months ended
June 30,
Six months ended
June 30,
2025 2024 2025 2024
Interest income $ 4.9 $ 5.3 $ 8.8 $ 9.0
Interest expense and bank fees (9.1) (23.4) (38.6) (44.9)
Accretion expense on reclamation provisions (4.9) (5.6) (9.9) (11.1)
Lease liability interest (5.7) (5.9) (11.5) (11.7)
Deferred revenue finance costs (4.1) (1.8) (10.0) (4.2)
Other (1.5) (1.7) (3.1) (3.5)
Total finance costs, net $ (20.4) $ (33.1) $ (64.3) $ (66.4)
Finance income $ 4.9 $ 5.3 $ 8.8 $ 9.0
Finance costs (25.3) (38.4) (73.1) (75.4)
Total finance costs, net $ (20.4) $ (33.1) $ (64.3) $ (66.4)
17. OTHER INCOME AND EXPENSE
The Company's other income and expense are comprised of the following:
Three months ended
June 30,
Six months ended
June 30,
2025 2024 2025 2024
Foreign exchange gain (loss) (a) $ 0.6 $ (3.5) $ (18.9) $ 21.0
Foreign exchange and trading gains on debt and equity
investments (b) — 10.1 3.2 18.3
Revaluation of Caserones purchase option (c) — 12.4 — 11.7
Revaluation of marketable securities 2.1 0.1 1.6 2.5
Realized losses on derivative contracts (Note 18) (1.8) (3.7) (13.5) (3.1)
Ojos del Salado sinkhole (expenses) recovery (d) (0.1) (0.7) (1.2) 0.3
Unrealized gains (losses) on derivative contracts (Note 18) 10.7 6.7 46.7 (27.2)
Write-down of assets (e) — (17.2) — (17.2)
Gain on partial disposal and contribution to Vicuña (Note 4) — — 3.0 —
Partial suspension of underground operations (f) — (9.8) — (9.8)
Other (expense) income (2.6) 1.3 (14.8) 2.3
Total other income (expense), net $ 8.9 $ (4.3) $ 6.1 $ (1.2)
a) Foreign exchange gain (loss) during the three and six months ended June 30, 2025 and 2024, relate to the foreign
exchange revaluation of trade payables and lease liabilities held in foreign currencies.
b) Foreign exchange and trading gains on debt and equity investments include the changes in fair value of debt and
equity instruments supporting capital funding for the Josemaria Project prior to the formation of Vicuña.
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2025 and 2024
(Unaudited - Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 23 -
===== SIDA 95 =====
c) The Caserones purchase option was revalued at each reporting period up to the date of exercise, with changes in
fair value recorded in Other Income and Expense. The purchase option was exercised on July 2, 2024.
d) Ojos del Salado sinkhole (expenses) recovery during the three and six months ended June 30, 2025 and 2024
include adjustments to expenses previously accrued, as a result of updated information related to the sinkhole
near the Company's Ojos del Salado operations.
e) Write-down of assets during the three and six months ended June 30, 2024 include a non-cash write-down of
capital works in progress at the Josemaria Project that are no longer expected to be required.
f) A fall of ground in the lower ramp at the Eagle mine limited production while rehabilitation was completed.
Overhead costs unrelated to production have been recorded in Other Income and Expense.
18. FINANCIAL INSTRUMENTS
Derivative instruments
From time to time, the Company uses derivative contracts as part of its risk management strategy to mitigate exposure
to foreign currencies and commodities. The Company maintains foreign currency forward and option contracts on
CAD, BRL, and CLP foreign currencies intended to limit the foreign exchange exposure of its forecasted foreign
currency denominated after-tax attributable operating and capital expenditures. Additional commodity forward swap
and option contracts are maintained to limit exposure to changes in the price of diesel fuel purchases at Candelaria,
and limit exposure to changes in the price of gold.
The foreign exchange and commodities contracts have not been designated as hedges for purposes of hedge
accounting and are measured at fair value with changes in fair value recognized in the consolidated statements of
earnings.
The following tables outline the foreign currency and commodity derivative notional contract positions and their
expiry dates:
Expired in Expiring throughout:
Foreign currency forward contracts 2025
remainder of
2025 2026
USD/CAD forwards
Average contract price 1.40 1.37 —
Position (USD millions) 481 18 —
USD/SEK forwards
Average contract price 10.83 — —
Position (SEK millions) 758 — —
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2025 and 2024
(Unaudited - Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 24 -
===== SIDA 96 =====
Expired in Expiring throughout:
Foreign currency option contracts 2025
remainder of
2025 2026
USD/BRL collars
Average contract price 5.06/6.04 5.06/6.04 5.07/6.04
Position (USD millions) 92 92 114
USD/CLP collars
Average contract price 872/1,032 872/1,031 904/1,060
Position (USD millions) 255 255 342
Expired in Expiring throughout:
Commodity hedge contracts 2025
remainder of
2025 2026
Gold collars
Average contract price ($/oz) 2,500/3,125 2,500/3,125 2,500/3,455
Position (oz) 31 31 43
Diesel collars
Average contract price ($/L) 0.50/0.65 0.50/0.65 —
Position (millions litres) 27 27 —
The Company’s net unrealized and realized gain/(loss) on foreign currency and commodity derivative contracts are as
follows:
Three months ended
June 30,
Six months ended
June 30,
2025 2024 2025 2024
Unrealized gain/(loss) on derivative financial instruments:
Foreign currency contracts $ 16.0 7.5 $ 65.4 (28.2)
Commodity hedge contracts (5.3) (0.7) (18.8) 1.0
10.7 6.7 46.6 (27.2)
Realized loss on derivative financial instruments:
Foreign currency contracts (0.7) (0.3) (12.3) —
Commodity hedge contracts (1.2) (3.4) (1.2) (3.1)
(1.9) (3.7) (13.5) (3.1)
Total unrealized and realized gain (loss) on derivative
contracts: $ 8.8 $ 3.0 $ 33.1 $ (30.3)
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2025 and 2024
(Unaudited - Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 25 -
===== SIDA 97 =====
A summary of the fair values of unsettled derivative contracts recorded on the consolidated balance sheet is as
follows:
June 30, 2025 December 31, 2024
Foreign currency contracts:
Current asset position $ 5.1 $ —
Non-current asset position 3.3 —
Current liability position 3.6 39.4
Non-current liability position 3.3 24.5
Commodity contracts:
Current asset position 0.2 1.0
Non-current asset position — 0.7
Current liability position 8.6 —
Non-current liability position 8.6 —
Fair values of financial instruments
The Company’s financial assets and financial liabilities have been classified into categories that determine their basis of
measurement. The following table shows the carrying values, fair values and fair value hierarchy of the Company’s
financial instruments as at June 30, 2025 and December 31, 2024:
June 30, 2025 December 31, 2024
Level
Carrying
value Fair value
Carrying
value Fair value
Financial assets
Fair value through profit or loss
Restricted funds 1 $ 10.5 $ 10.5 $ 8.6 $ 8.6
Trade receivables (provisional) 2 447.8 447.8 337.1 337.1
Marketable securities 1 12.4 12.4 60.1 60.1
Foreign currency contracts 2 8.4 8.4 — —
Contingent consideration (Note 3) 3 41.0 41.0 — —
Commodity contracts 2 0.2 0.2 1.6 1.6
$ 520.4 $ 520.4 $ 407.5 $ 407.5
Financial liabilities
Amortized cost
Debt 3 $ 409.9 $ 409.9 $ 1,757.0 $ 1,757.0
Caserones deferred consideration 2 116.2 116.2 112.8 112.8
Fair value through profit or loss
Pricing provisions on concentrate sales 2 $ 6.0 $ 6.0 $ 7.1 $ 7.1
Foreign currency contracts 2 6.9 6.9 63.9 63.9
Commodity contracts 2 17.2 17.2 — —
$ 30.2 $ 30.2 $ 71.0 $ 71.0
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2025 and 2024
(Unaudited - Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 26 -
===== SIDA 98 =====
Fair values of financial instruments are determined by valuation methods depending on hierarchy levels as defined
below:
Level 1 – Quoted market price in active markets for identical assets or liabilities.
Level 2 – Inputs other than quoted market prices included within Level 1 that are observable for the assets or
liabilities, either directly (i.e. observed prices) or indirectly (i.e. derived from prices).
Level 3 – Inputs for the assets or liabilities are not based on observable market data.
The Company estimates fair values based on the following methods of valuation and assumptions:
Marketable securities/debt and equity investments/restricted funds – The fair value of investments in shares and
bonds is determined based on the quoted market price.
Trade receivables/pricing provisions on concentrate sales – The fair value of trade receivables that contain
provisional pricing sales arrangements are valued using quoted forward market prices. The Company recognized
positive pricing adjustments of $27.7 million and $97.5 million in revenue during the three and six months ended
June 30, 2025, respectively (June 30, 2024 - $64.7 million and $80.9 million positive pricing adjustments).
Foreign currency and commodity contracts – The fair value of these derivatives are determined by the
counterparties to the contracts and are assessed by Management using pricing models based on active market
prices.
Contingent consideration - The fair value of the contingent consideration was estimated by calculating the
present value of the future expected cash flows from the contingent copper and zinc payments related to the
Neves-Corvo mine and Zinkgruvan mine based on probability-weighted scenarios of future copper and zinc
prices.
Caserones deferred consideration – The fair value of the Caserones deferred consideration has been discounted
at the estimated credit adjusted risk free rate applicable to future payments.
Debt – The fair values approximate carrying values as the interest rates are comparable to current market rates.
The carrying values of certain financial instruments maturing in the short-term approximate their fair values.
These financial instruments include cash and cash equivalents, trade and other receivables other than those
provisionally priced, and trade and other payables other than those provisionally priced, which are classified as
amortized cost.
19. COMMITMENTS AND CONTINGENCIES
a) The Company has capital commitments of $195.6 million on various initiatives of which $67.8 million is expected
to be paid during 2025.
b) The Company may be involved in legal proce edings arising in the ordinary course of business. The potential
amount of the liabilities with respect to such legal proceedings is not expected to materially affect the Company's
financial position.
c) There were no significant changes to commitments and contingencies from those reported at December 31,
2024.
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2025 and 2024
(Unaudited - Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 27 -
===== SIDA 99 =====
20. SEGMENTED INFORMATION
The Company is engaged in mining, exploration and development of mineral properties at four operating sites located
in Chile, Brazil, and the USA, and at Vicuña in Argentina and Chile. Operating segments are reported in a manner
consistent with the internal reporting provided to the executive leadership team who act as the operating decision-
makers. The chief operating decision makers consider the business from a site and project-level perspective. Executive
management are responsible for allocating resources and assessing performance of the operating segments. The
Company has identified five reportable segments which include four operating sites, and the Vicuña Project. The
Vicuña segment is an independently managed joint arrangement and includes the legacy Josemaria segment for
periods up until January 15, 2025 and the Company's 50% share of the Josemaria project and Filo del Sol project after
that date (Note 4). Discontinued operations include results from the Neves-Corvo and Zinkgruvan segments (Note 3).
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2025 and 2024
(Unaudited - Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 28 -
===== SIDA 100 =====
For the three months ended June 30, 2025 Candelaria Caserones Chapada Eagle Vicuña(b) Other Total
Continuing
Operations
Discontinued
Operations
Total
Chile Chile Brazil USA
Argentina &
Chile
Revenue $ 404.6 $ 322.7 $ 150.9 $ 59.1 $ — $ — $ 937.2 $ 20.6 $ 957.8
Direct mine and mill costs (174.4) (187.9) (64.0) (31.2) — (0.5) (458.0) (15.3) (473.3)
Transportation (7.7) (8.3) (7.4) (5.1) — — (28.5) (1.5) (30.0)
Royalties (4.0) (8.5) (3.6) (4.1) — — (20.2) (0.2) (20.4)
Depreciation, depletion and amortization (74.9) (56.5) (21.9) (5.9) — (0.1) (159.3) — (159.3)
Gross profit (loss) 143.6 61.6 54.0 12.8 — (0.6) 271.3 3.6 274.9
General and administrative expenses — — — — (2.1) (16.1) (18.2) — (18.2)
Exploration and business development (2.5) (4.6) (2.2) (0.2) (1.0) (1.8) (12.4) (0.6) (13.0)
Finance (costs) income (4.3) (4.8) (5.7) (1.1) 0.4 (4.7) (20.4) (0.3) (20.7)
Other income (expense) 1.1 (3.8) (8.6) (0.4) (1.4) 22.1 8.9 (7.8) 1.1
Gain on disposal of subsidiaries — — — — — — — 106.4 106.4
Income tax (expense) recovery (59.8) (4.7) 4.5 (0.6) 0.8 (9.8) (69.6) 1.1 (68.5)
Net earnings (loss) $ 78.1 $ 43.6 $ 41.9 $ 10.4 $ (3.3) $ (11.1) $ 159.6 $ 102.4 $ 262.0
Capital expenditures $ 51.7 $ 31.9 $ 27.4 $ 6.4 $ 40.1 $ 0.1 $ 157.5 $ 9.1 $ 166.6
For the six months ended June 30, 2025 Candelaria Caserones Chapada Eagle Vicuña(b) Other Total
Continuing
Operations
Discontinued
Operations Total
Chile Chile Brazil USA
Argentina &
Chile
Revenue $ 823.7 $ 708.6 $ 265.5 $ 103.3 $ — $ — $ 1,901.1 $ 200.7 $ 2,101.8
Direct mine and mill costs (335.5) (410.9) (120.1) (62.0) — (0.7) (929.2) (117.1) (1,046.2)
Transportation (15.1) (19.4) (12.8) (9.2) — — (56.5) (8.8) (65.3)
Royalties (7.5) (18.4) (5.6) (6.3) — — (37.9) (1.2) (39.1)
Depreciation, depletion and amortization (144.1) (102.3) (40.3) (10.4) — (0.3) (297.4) — (297.4)
Gross profit (loss) 321.4 157.6 86.7 15.4 — (0.9) 580.2 73.5 653.7
General and administrative expenses — — — — (2.1) (34.4) (36.5) — (36.5)
Exploration and business development (4.9) (7.7) (3.4) (1.3) (2.3) (4.7) (24.2) (5.4) (29.6)
Finance (costs) income (10.3) (10.1) (11.8) (2.3) 0.4 (30.1) (64.3) (4.7) (69.0)
Other (expense) income (12.5) (13.3) (21.2) (0.8) 0.9 53.0 6.1 (10.1) (4.0)
Gain on disposal of subsidiaries — — — — — — — 106.4 106.4
Asset impairment — — — — — — — (65.7) (65.7)
Income tax (expense) recovery (125.8) (9.8) 27.2 (0.5) (8.8) (2.7) (120.4) (5.4) (125.8)
Net earnings (loss) $ 167.9 $ 116.7 $ 77.4 $ 10.5 $ (11.9) $ (19.8) $ 340.9 $ 88.7 $ 429.6
Capital expenditures $ 119.6 $ 70.1 $ 49.6 $ 10.8 $ 83.3 $ 0.1 $ 333.5 $ 58.1 $ 391.6
Total non-current assets(a) $ 3,077.3 $ 1,351.4 $ 1,308.6 $ 110.6 $ 2,282.4 $ 6.4 $ 8,136.6 $ — $ 8,136.6
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2025 and 2024
(Unaudited - Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 29 -
===== SIDA 101 =====
For the three months ended June 30, 2024 Candelaria Caserones Chapada Eagle Vicuña(b) Other Total
Continuing
Operations
Discontinued
Operations
Total
Chile Chile Brazil USA
Argentina &
Chile
Revenue $ 366.4 $ 336.5 $ 118.0 $ 57.4 $ — $ — $ 878.3 $ 205.3 $ 1,083.6
Direct mine and mill costs (165.6) (189.9) (61.8) (30.3) — — (447.6) (106.5) (554.1)
Transportation (6.3) (9.7) (5.8) (3.4) — — (25.2) (8.1) (33.3)
Royalties (3.6) (9.3) (1.6) (3.9) — 0.6 (17.8) (1.2) (19.0)
Depreciation, depletion and amortization (76.1) (54.5) (18.4) (10.0) — (0.3) (159.2) (38.5) (197.7)
Gross profit 114.9 73.1 30.4 9.8 — 0.3 228.5 50.9 279.5
General and administrative expenses — — — — — (13.1) (13.1) — (13.1)
General exploration and business development (2.9) (3.3) (1.4) (0.1) (2.7) (0.9) (11.3) (2.3) (13.5)
Finance (costs) income (7.6) (3.6) (6.2) (0.8) 2.3 (17.2) (33.2) (3.2) (36.3)
Other (expense) income (1.3) (3.2) 2.9 (10.5) (6.9) 14.6 (4.3) 0.7 (3.6)
Income tax (expense) recovery (43.2) (18.4) (30.9) 0.6 50.6 (6.1) (47.3) (8.8) (56.2)
Net earnings (loss) $ 60.0 $ 44.7 $ (5.2) $ (1.0) $ 43.2 $ (22.4) $ 119.4 $ 37.3 $ 156.7
Capital expenditures $ 60.5 $ 35.3 $ 25.2 $ 4.0 $ 90.7 $ 1.5 $ 217.2 $ 41.2 $ 258.5
For the six months ended June 30, 2024 Candelaria Caserones Chapada Eagle Vicuña(b) Other Total
Continuing
Operations
Discontinued
Operations Total
Chile Chile Brazil USA
Argentina &
Chile
Revenue $ 696.7 $ 662.8 $ 216.4 $ 114.7 $ — $ — $ 1,690.6 $ 330.0 $ 2,020.6
Direct mine and mill costs (317.8) (369.5) (119.4) (63.6) — (0.7) (871.0) (200.1) (1,071.1)
Transportation (12.3) (19.0) (11.2) (8.0) — — (50.5) (15.6) (66.1)
Royalties (6.5) (18.1) (3.2) (6.6) — — (34.4) (1.9) (36.3)
Depreciation, depletion and amortization (149.6) (106.2) (33.4) (19.1) — (0.3) (308.6) (73.5) (382.1)
Gross profit (loss) 210.5 150.0 49.2 17.4 — (1.0) 426.1 38.9 465.0
General and administrative expenses — — — — — (29.9) (29.9) — (29.9)
Exploration and business development (4.8) (6.9) (2.1) (0.2) (6.5) (1.6) (22.1) (4.9) (27.0)
Finance costs (15.1) (7.9) (11.8) (1.7) 9.4 (39.3) (66.4) (5.6) (72.0)
Other (expense) income 5.6 15.5 5.3 (10.8) 1.9 (18.7) (1.2) (12.8) (14.0)
Income tax (expense) recovery (82.7) (40.6) (28.6) 1.9 50.6 (4.6) (104.0) (2.8) (106.8)
Net earnings (loss) $ 113.5 $ 110.1 $ 12.0 $ 6.6 $ 55.4 $ (95.1) $ 202.5 $ 12.8 $ 215.3
Capital expenditures $ 160.1 $ 78.1 $ 54.4 $ 8.1 $ 149.3 $ 2.4 $ 452.4 $ 78.0 $ 530.4
Total non-current assets $ 3,157.5 $ 1,393.9 $ 1,369.6 $ 197.8 $ 1,303.0 $ 8.9 $ 7,430.6 $ 1,408.6 $ 8,839.3
(a) Non-current assets include long-term inventory, mineral properties, plant and equipment, and goodwill.
(b) The Vicuña segment includes the legacy Josemaria segment for periods up until January 15, 2025 and the Company's 50% share of Josemaria and Filo del Sol projects after that date
(Note 4)
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2025 and 2024
(Unaudited - Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 30 -
===== SIDA 102 =====
21. RELATED PARTY TRANSACTIONS
a) Key management personnel - The Company has identified its directors and senior officers as its key management
personnel. Employee benefits for key management personnel are as follows:
Three months ended
June 30,
Six months ended
June 30,
2025 2024 2025 2024
Wages, salaries and pension benefits 2.2 1.8 4.9 3.7
Share-based compensation 1.4 0.6 2.0 1.1
$ 3.6 $ 2.4 $ 6.9 $ 4.8
b) Other related parties - For the three and six months ended June 30, 2025, the Company incurred $2.2 million and
$4.2 million (June 30, 2024 – $1.2 million and $5.8 million), respectively, for services provided by companies
owned by members of key management personnel primarily relating to office rental and related services. For the
three and six months ended June 30, 2025, the Company incurred $0.4 million and $1.1 million (June 30, 2024 –
$0.6 million and $1.3 million), respectively, for services provided by the Lundin Foundation, a not-for-profit
organization supporting community economic development programs and related initiatives in the regions in
which the Company operates.
22. SUPPLEMENTARY CASH FLOW INFORMATION
Three months ended
June 30,
Six months ended
June 30,
2025 2024 2025 2024
Changes in non-cash working capital items consist of:
Trade and income taxes receivable, inventories, and
other current assets $ 103.4 $ 140.1 $ (60.3) $ 146.0
Trade and income taxes payable, and other current
liabilities (66.0) 8.7 (117.0) (59.0)
$ 37.4 $ 148.8 $ (177.3) $ 87.0
Operating activities included the following cash
payments:
Income taxes paid $ 168.0 $ 47.1 $ 210.8 $ 31.0
LUNDIN MINING CORPORATION
Notes to condensed interim consolidated financial statements
For the three and six months ended June 30, 2025 and 2024
(Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts)
- 31 -