===== SIDA 1 ===== Corporate Office 885 West Georgia Street, Suite 2000 Vancouver, BC V6C 3E8 Phone: +1 604 689 7842 lundinmining.com NEWS RELEASE Lundin Mining Third Quarter 2023 Results Vancouver, November 1, 2023 (TSX: LUN; Nasdaq Stockholm: LUMI) Lundin Mining Corporation (“Lundin Mining” or the “Company”) today reported its third quarter 2023 financial results. "Our operations continued with a strong performance in the third quarter. As a result, we are increasing our production guidance for Caserones and Eagle. The acquisition of Caserones enabled us to achieve a new record in quarterly consolidated copper production, and we also achieved a record in quarterly zinc production. This led the Company to an adjusted EBITDA of $415 million for the period." commented Peter Rockandel, CEO. Mr. Rockandel added, "During the integration process of Caserones, our team has identified and outlined synergies between Caserones and Candelaria, which are expected to yield initial annual savings of $20 to $30 million per year. We are excited a bout launching the largest exploration program at Caserones since production commenced, targeting resource extensions and near-mine discoveries. The corporate office move to Vancouver is complete and all senior executive positions are in place . As we approach 2024, Lundin Mining is strategically, operationally, and financially, in a strong position to continue to deliver on our plans and execute on the next phase of growth. On a personal note, as this is my last quarter as CEO, I would like to thank all our employees, partners and stakeholders for their dedication, hard work and support, all of which have been integral to our current and future success. I am extremely proud of what the team has been able to accomplish during my tenure as CEO.” Third Quarter Highlights • Copper Production: The Company achieved consolidated production of 89,942 tonnes of copper, a new quarterly record. • Other Production: During the quarter a total of 49,774 tonnes of zinc, 4,290 tonnes of nickel and approximately 35,000 ounces of gold were produced. A quarterly zinc production record was achieved as the zinc expansion project ("ZEP") at Neves -Corvo ramps up and a full quarter of operation from the sequential flotation project at Zinkgruvan was realized. • Revenue: $992.2 million in the quarter. • Adjusted Earnings: Net loss attributable to shareholders of the Company was $3.0 million ($0.00 per share). Adjusted earnings attributable to shareholders of the Company1 was $85.6 million ($0.11 per share). • Adjusted EBITDA: Adjusted earnings before interest, taxes, depreciation and amortization1 (“EBITDA”) of $415.1 million in the third quarter. • Cash Generation: Cash provided by operating activities was $303.8 million and cash and cash equivalents at September 30, 2023 was $357.3 million . Adjusted operating cash flow 1 was $316.5 million ($0.41 per share), after removing the impact of working capital. Free cash flow1 was $71.1 million. • Caserones Acquisition: Completed the acquisition of 51% of the Caserones copper-molybdeum mine on July 13, 2023, adding another long-life asset in a tier one jurisdiction. The Company anticipates initial annual synergies from supply chain and service contracts between Caserones and Candelaria to be $20 million to $30 million per year. • Term Loan: To fund the Caserones acquisition, the Company obtained a term loan in July 2023 of a principal amount of $800.0 million with an additional $400.0 million accordion option maturing in July 2026. As at September 30, 2023, the Company had a net debt1 balance of $1,158.9 million. • CEO Succession: Peter Rockandel, the current Chief Executive Officer announced that he will be stepping down from the role of CEO and from the Board of Directors as of December 31, 2023. Th ose responsibilities will be assumed by Jack Lundin, current President, and former Director of the Company. • Outlook: Revised annual production guidance, including an increase in copper production from 296,000 - 325,000 tonnes to 305,000 - 325,000 tonnes. Cash cost guidance was lowered at Caserones and Eagle and increased at Candelaria. Annual capital expenditure guidance is lower by $30 million. 1 These are non-GAAP measures. Please refer to the Company's discussion of non -GAAP and other performance measures in its Management's Discussion and Analysis for the three and nine months ended September 30, 2023 and the Reconciliation of Non -GAAP measures section at the end of this news release. ===== SIDA 2 ===== Summary Financial Results Three months ended September 30, Nine months ended September 30, US$ Millions (except per share amounts) 2023 2022 2023 2022 Revenue 992.2 648.5 2,332.1 2,229.8 Gross profit 197.3 82.5 463.5 607.3 Attributable net earnings (loss)2 (3.0) (11.2) 202.8 281.3 Net earnings (loss) 21.9 (11.2) 248.5 318.2 Adjusted earnings 1,2,3 85.6 30.9 256.9 288.9 Adjusted EBITDA1,3 415.1 202.4 943.8 938.8 Basic and diluted earnings per share ("EPS")2 — (0.01) 0.26 0.37 Adjusted EPS1,2,3 0.11 0.04 0.33 0.38 Cash provided by operating activities 303.8 36.3 710.5 720.0 Adjusted operating cash flow1 316.5 181.3 662.2 703.9 Adjusted operating cash flow per share1 0.41 0.23 0.86 0.93 Free cash flow from (used in) operations1 136.5 (43.9) 228.3 417.1 Free cash flow1 71.1 (163.2) (47.7) 158.3 Cash and cash equivalents 357.3 226.9 357.3 226.9 Net debt1 (1,158.9) 177.6 (1,158.9) 177.6 1 These are non-GAAP measures. Please refer to the Company's discussion of non -GAAP and other performance measures in its Management's Discussion and Analysis for the three and nine months ended September 30, 2023 and the Reconciliation of Non -GAAP Measures section at the end of this news release. 2 Attributable to shareholders of Lundin Mining Corporation. 3 Q2 2023 amounts have been adjusted from those presented in the Company's MD&A for the three and six months ended June 30, 2023. Quarter Ended September 30, 2023 • The Company generated revenue of $992.2 million, gross profit of $197.3 million and adjusted EBITDA of $415.1 million (Q3 2022 - $202.4 million). • Net loss attributable to shareholders of the Company was $3.0 million ($0.00 per share) in the third quarter, impacted by higher interest expense, non -cash unrealized losses on derivative contracts and increased deferred tax expense as a result of the enactment of the mining royalty law in Chile4. • Adjusted earnings attributable to shareholders of the Company for the quarter of $8 5.6 million ($0.11 per share attributable to shareholders of the Company) were $49.5 million higher than the prior year quarter after adjusting for the non-cash revaluation of derivative contracts, fair value adjustments relating to the Caserones acquisition and deferred tax relating to the mining royalty rate change4, among other things. • Cash and cash equivalents as at September 30, 2023 were $357.3 million. Cash generated from operations of $303.8 million during the quarter was used to fund investing activities of $908.8 million. Investing activities in the third quarter included $648.6 million net cash paid at closing for the acquisition of Caserones, consisting of $796.6 million upfront cash consideration after adjustments , net of $148 million cash and cash equivalents held by SCM Minera Lumina Copper Chile at closing on a 100% basis. • Free cash flow of $71.1 million was $234.3 million higher than the prior year comparable period and benefited from the inclusion of production from Caserones, combined with higher realized copper prices and higher overall changes in working capital. • As at November 1, 2023, the Company had cash and net debt balances of approximately $368.6 million and $1,137.6 million, respectively. 4 Refer to Management's Discussion and Analysis for the three and nine months ended September 30, 2023 for further information related to the deferred tax relating to the mining royalty rate change. ===== SIDA 3 ===== Corporate Highlights • Candelaria EIA: A new Environmental Impact Assessment (“EIA”) was granted at Candelaria for the extension of operations from 2030 to 2040. • Exploration: Exploration programs continue at our existing assets while new exploration drilling campaigns are underway at Caserones and Josemaria. Drilling at Caserones will be the largest exploration program since the mine began operation in 2013. The initial phase of the drill program is expected to be over 10,000 meters and results are expected in H1 2024. • Copper Mark: Caserones has achieved the Copper Mark at its operations, a designation that highlights the Company’s commitment to sustainable mining practices. • Josemaria Project: The Company continues to d erisk and advance the Josemaria project through optimization and trade off studies. These studies will continue into 2024. • Senior Leadership Appointments: The corporate office move to Vancouver has been completed. The Company is pleased to announce the following executive appointments, Peter Brady has been hired as General Counsel, Ricardo Checura as Vice President, Health and Safety and Nathan Monash as Vice President, Sustainability. Outlook Production and cash cost guidance for 2023 is updated from that disclosed in the Company's Management's Discussion and Analysis for the three and six months ended June 30, 2023. Most production guidance ranges are tightening and improving, with the lower end of the range increasing for copper, nickel and gold. Cash cost guidance is lower for Caserones and Eagle driven by higher production volumes and by-product credits, and increasing for Candelaria, reflecting higher operating costs. Production continues to be weighted to the second half of the year, notably at Chapada due to the first half seasonal operating conditions and forecast grade and recovery profiles. 2023 Production and Cash Cost Guidance Previous Guidancea Revised Guidance (contained metal) Production Cash Cost ($/lb)f Production Cash Cost ($/lb)b,f Copper (t) Candelaria (100%) 145,000 - 155,000 1.80 – 1.95c 147,000 - 153,000 2.00 – 2.20c Caserones (100%)e 60,000 - 65,000 2.30 – 2.45 65,000 - 69,000 2.00 – 2.20 Chapada 43,000 - 48,000 2.35 – 2.55d 45,000 - 48,000 2.35 – 2.55d Eagle 12,000 - 15,000 12,000 - 15,000 Neves-Corvo 33,000 - 38,000 2.10 – 2.30c 33,000 - 36,000 2.10 – 2.30c Zinkgruvan 3,000 - 4,000 3,000 - 4,000 Total 296,000 - 325,000 305,000 - 325,000 Zinc (t) Neves-Corvo 100,000 - 110,000 103,000 - 110,000 Zinkgruvan 80,000 - 85,000 0.45 – 0.50c 78,000 - 82,000 0.45 – 0.50c Total 180,000 - 195,000 181,000 - 192,000 Molybdenum (t) Caserones (100%)e 1,500 - 2,000 1,500 - 2,000 Gold (koz) Candelaria (100%) 85 - 90 87 - 92 Chapada 55 - 60 55 - 60 Total 140 - 150 142 - 152 Nickel (t) Eagle 13,000 - 16,000 2.30 – 2.45 15,000 - 17,000 2.00 – 2.20 a. Guidance as outlined in the MD&A for the three and six months ended June 30, 2023. b. Cash costs are based on various assumptions and estimates, including but not limited to: production volumes, commodity pri ces (Cu: $3.75/lb, Zn: $1.10/lb, Mo: $20.00/lb Pb: $0.90/lb, Au: $1,850/oz), foreign exchange rates (€/USD:1.05, USD/SEK:10.50, USD/CLP:800, USD/BRL:5.00) and production costs for the remainder of 2023. c. 68% of Candelaria's total gold and silver production are subject to a streaming agreement and silver production at Zinkgru van and Neves-Corvo are also subject to streaming agreements. Cash costs are calculated based on receipt of approximately $425/oz g old and $4.25/oz to $4.57/oz silver. d. Chapada's cash cost is calculated on a by-product basis and does not include the effects of its copper stream agreements. Effects of the copper stream agreements are reflected in copper revenue and will impact realized price per pound. e. Caserones guidance is for the second half of 2023. f. These are non-GAAP measures. Please refer to the Company's discussion of non -GAAP and other performance measures in its Management's Discussion and Analysis for the three and nine months ended September 30, 2023 and the Reconciliation of Non -GAAP measures section at the end of this news release. ===== SIDA 4 ===== As a result of re -phasing several projects at Neves -Corvo and Zinkgruvan, capital expenditure guidance is lower by an additional $30 million for 2023. As disclosed in the Company's Management's Discussion and Analysis for the three and six months ended June 30, 2023, c apital spend guidance at Josemaria was previously lowered to $350 million for 2023 due to foreign exchange, a delay in planned equipment deliveries and reduced activities. 2023 Capital Expenditure ($ millions) Previous Guidancea Revisions Revised Guidance Candelaria (100% basis) 375 — 375 Caserones (100% basis)c 110 — 110 Chapada 70 — 70 Eagle 20 — 20 Neves-Corvo 130 (25) 105 Zinkgruvan 70 (5) 65 Other 10 — 10 Total Sustaining 785 (30) 755 Josemaria 350 — 350 Total Capital Expenditures 1,135 (30) 1,105 a. Guidance as outlined in the MD&A for the three and six months ended June 30, 2023. b. Sustaining capital expenditure is a supplementary financial measure and expansionary capital expenditure is a non -GAAP measure - see the Company's Management Discussion and Analysis for the three and six months ended June 30, 202 3 and the Reconciliation of Non-GAAP Measures at the end of this news release. c. Caserones guidance is for the second half of 2023. 2023 Exploration Investment Guidance Total exploration expenditures are on target to be $45.0 million in 2023, unchanged from previous guidance. Operational Performance Total Production (contained metal)a 2023 2022 YTD Q3 Q2 Q1 Total Q4 Q3 Q2 Q1 Copper (t)b 211,461 89,942 60,057 61,462 249,659 56,552 63,930 64,096 65,081 Zinc (t) 134,442 49,774 36,115 48,553 158,938 44,308 40,327 41,912 32,391 Molybdenum (t)b 1,096 1,096 — Gold (koz)b 105 35 34 36 154 36 45 39 34 Nickel (t) 12,700 4,290 4,686 3,724 17,475 4,096 4,379 4,719 4,281 a. Tonnes (t) and thousands of ounces (koz) b. Candelaria and Caserones production is on a 100% basis. Caserones results are from July 13, 2023. Candelaria (80% owned): Candelaria produced 34,275 tonnes of copper and approximately 20,000 ounces of gold in concentrate on a 100% basis in the quarter. Copper production was lower than the prior year quarter primarily due to lower grades partially offset by higher throughput. Gold production was lower than the prior year quarter due to lower grades and recoveries. Current quarter production costs and copper cash cost of $2.19/lb were higher than the prior year quarter largely owing to higher contractor and maintenance costs and unfavorable foreign exchange. Cash cost was further impacted by lower sales volumes. Caserones (51% owned): In the three months ended September 30, 2023 Caserones produced 34,427 tonnes of copper and 1,321 tonnes of molybdenum on a 100% basis, of which 29,821 tonnes of copper and 1,096 tonnes of molybdenum were produced from the acquisition closing date of July 13. Copper and molybdenum production were higher than planned due to increased throughput and recoveries. Production costs in the quarter were negatively impacted by the recognition of fair market value adjustments to inventory due t o the acquisition. Copper cash cost of $1.60/lb benefited from higher than planned production and by-product credits. ===== SIDA 5 ===== Chapada (100% owned): Chapada produced 12,286 tonnes of copper and approximately 15,000 ounces of gold in concentrate in the quarter. Copper and gold production was lower than the prior year quarter primarily due to lower throughput and grades. Production costs were lower than the prior year quarter due to lower sales volumes. Copper cash cost of $2.28/lb for the quarter increased from the prior year quarter due to lower sales volumes, unfavorable foreign exchange variances, and lower by-product credits and production. Eagle (100% owned): During the quarter Eagle produced 4,290 tonnes of nickel and 3,245 tonnes of copper which were lower than the prior year quarter due to lower planned grades. Production costs were higher than the comparable prior year quarter due to inflationary contractual cost increases. Nickel cash cost in the quarter of $2.07/lb was higher than the prior year quarter primarily due to lower by-product credits and higher production costs. Neves-Corvo (100% owned): Neves-Corvo produced 9,016 tonnes of copper and 25,807 tonnes of zinc in the quarter. Copper production was higher than in the prior year quarter due to higher throughput, grades and recoveries. Zinc production was higher than in the prior year quarter primarily due to increased grades and recoveries driven by the Zinc Expansion Project ("ZEP"). Production costs during the quarter were lower than the prior year quarter despite higher sales, primarily due to reduced electricity cost s. Current quarter copper cash cost per pound of $2.27/lb was lower than the prior year quarter primarily as a result of lower input costs and benefited from higher production and sales. Zinkgruvan (100% owned): Zinc production of 23,967 tonnes and lead production of 8,643 tonnes were higher than the prior year quarter primarily due to higher throughput and grades. Copper production of 1,299 tonnes was lower than the prior year quarter due to lower throughput. Pr oduction costs were higher than the prior year quarter primarily due to higher sales volumes. Zinc cash cost per pound of $0.28/lb during the quarter was higher than the prior year quarter primarily as a result of lower by-product costs per pound and higher treatment and refining charges. Senior Leadership Appointments The Company is pleased to announce the executive appointments of Peter Brady as General Counsel , Ricardo Checura as Vice President, Health and Safety, and Nathan Monash as Vice President, Sustainability. Peter Brady General Counsel Mr. Brady has joined Lundin Mining’s Executive Leadership Team as General Counsel. He has over 20 years of experience in industry and private practice working with major international mining companies. Prior to joining Lundin Mining, he most recently was Chief Legal & Governance Officer with Vale Base Metals, responsible for advising their senior leadership team on all legal and business risk, compliance, and corporate governance matters. Previous to Vale Base Metals, he was a Partner at McCarthy Tetrault. Mr. Brady holds a Bachelor of Laws from Queen's University and a Master of Arts in Environmental Law from the University of Windsor. Ricardo Checura Vice President Health and Safety Mr. Checura was previously at BHP Inc, where he spent the past 12 years in various leadership roles, most recently as Head of Risk Operations. He was a member of BHP’s Global Risk Leadership Team and managed the risk management activities of their Global Operating Assets. Prior to his most recent role, Ricardo served as their Head of Safety – Minerals Americas between 2018 to 2021. Mr. Checura’s experience also includes implementing Fatal Risk Management from his previous roles in the mining industry. Ricardo holds a Bachelor of Science in Engineering f rom the University of Concepción and a Master of Business Administration from the University of Chile. Nathan Monash Vice President, Sustainability Mr. Monash has joined Lundin Mining’s Senior Leadership Team as Vice President, Sustainability. He has over 20 years of experience in the mining sector, developing and integrating sustainability strategy and governance structures and advising operations on community relations, local government relations, human rights and communications. Prior to joining Lundin Mining, he most recently led Lundin Gold's sustainability activities during the construction and operation of the Fruta del Norte mine in Ecuador and prior to that led AngloGold Ashanti's sustainability efforts in the Americas. Nathan has also worked with International Finance Corporation, guiding extractive industry clients on the structure and implementation of sustainable development strategies, and spent several years with the World Economic Forum where he worked closely with leaders from business, academia and government to identify and address key economic, social and environmental issues facing the mining and metals industry. Mr. Monash holds a B achelor of Science in Biology from McGill University and a Master of Arts from the Fletcher School at Tufts University. ===== SIDA 6 ===== About Lundin Mining Lundin Mining is a diversified Canadian base metals mining company with projects and operations in Argentina, Brazil, Chile, Portugal, Sweden and the United States of America, primarily producing copper, zinc, molybdenum, gold and nickel. The information in this release is subject to the disclosure requirements of Lundin Mining under the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below on November 1, 2023 at 3:00 pm Pacific Standard Time. For further information, please contact: Stephen Williams, Vice President, Investor Relations +1 604 806 3074 Robert Eriksson, Investor Relations Sweden: +46 8 440 54 40 Technical Information The scientific and technical information in this press release has been prepared in accordance with the disclosure standards of National Instrument 43 -101 (“NI 43 -101”) and has been reviewed by Arman Barha, P .Eng., Vice President, Technical Services, a "Qualified Person" under NI 43 -101. Mr. Barha has verified the data disclosed in this release and no limitations were imposed on his verification process. For further Technical Information on the Company’s material properties, refer to the following technical reports, each of which is available on the Company’s SEDAR profile at www.sedarplus.ca: Candelaria: technical report entitled Technical Report for the Candelaria Copper Mining Complex, Atacama Region, Region III, Chile dated February 22, 2023. Caserones: Caserones Mining Operation, Chile, NI 43 -101 Technical Report on the Caserones Mining Operation, dated July 13, 2023 Chapada: technical report entitled Technical Report on the Chapada Mine, Goiás State, Brazil dated October 10, 2019. Eagle Mine: technical report entitled Technical Report on the Eagle Mine, Michigan, U.S.A. dated February 22, 2023. Neves-Corvo: technical report entitled NI 43-101 Technical Report on the Neves-Corvo Mine, Portugal dated February 22, 2023. Josemaria Project: technical report entitled NI 43 -101 Technical Report, Feasibility Study for the Josemaria Copper -Gold Project, San Juan Province, Argentina, September 28, 2020, which is available on Josemaria Resources’ SEDAR profile at www.sedarplus.ca. Reconciliation of Non-GAAP Measures The Company uses certain performance measures in its analysis. These performance measures have no standardized meaning within generally accepted accounting principles under International Financial Reporting Standards and, therefore, amounts presented may n ot be comparable to similar data presented by other mining companies. For additional details please refer to the Company’s discussion of non -GAAP and other performance measures in its Management’s Discussion and Analysis for the three and nine months ended September 30, 2023 which is available on SEDAR+ at www.sedarplus.ca. Net (debt) cash can be reconciled as follows: ($thousands) September 30, 2023 December 31, 2022 Debt and lease liabilities (1,130,754) (27,179) Current portion of total debt and lease liabilities (380,645) (170,149) Less deferred financing fees (netted in above) (4,810) (4,926) (1,516,209) (202,254) Cash and cash equivalents 357,337 191,387 Net debt (1,158,872) (10,867) Adjusted operating cash flow and adjusted operating cash flow per share can be reconciled to cash provided by operating activities as follows: ===== SIDA 7 ===== Three months ended September 30, Nine months ended September 30, ($thousands, except share and per share amounts) 2023 2022 2023 2022 Cash provided by operating activities 303,812 36,331 710,531 719,999 Changes in non-cash working capital items 12,655 145,006 (48,360) (16,111) Adjusted operating cash flow 316,467 181,337 662,171 703,888 Basic weighted average number of shares outstanding 773,147,920 775,563,527 772,214,160 759,726,506 Adjusted operating cash flow per share $ 0.41 0.23 0.86 0.93 Free cash flow from operations can be reconciled to cash provided by operating activities as follows: Three months ended September 30, Nine months ended September 30, ($thousands) 2023 2022 2023 2022 Cash provided by operating activities 303,812 36,331 710,531 719,999 General exploration and business development 12,734 72,446 41,192 132,259 Sustaining capital expenditures (180,013) (152,722) (523,397) (435,145) Free cash flow from operations 136,533 (43,945) 228,326 417,113 General exploration and business development (12,734) (72,446) (41,192) (132,259) Expansionary capital expenditures (52,662) (46,766) (234,831) (126,523) Free cash flow 71,137 (163,157) (47,697) 158,331 Adjusted EBITDA can be reconciled to the Company's Consolidated Statement of Earnings as follows: Three months ended September 30, Nine months ended September 30, ($thousands) 2023 2022 2023 2022 Net earnings (loss) 21,883 (11,245) 248,496 318,238 Add back: Depreciation, depletion and amortization 179,788 140,161 430,540 412,040 Finance income and costs 36,212 15,240 67,808 47,521 Income taxes 84,891 10,766 113,983 136,975 322,774 154,922 860,827 914,774 Unrealized foreign exchange 9,096 14,426 (1,545) 25,000 Revaluation loss on derivatives1 47,874 — 43,407 — Sinkhole costs (1,247) 7,789 15,235 7,789 Revaluation loss (gain) on marketable securities 3,449 (554) (453) 1,712 Caserones inventory fair value adjustment 32,185 — 32,185 — Unrealized foreign exchange and trading loss on equity investments — 18,848 — — Write-down of fixed assets — 3,617 — 3,619 Gain on disposal of subsidiary — — (5,718) (16,828) Other 990 3,325 (120) 2,724 Total adjustments - EBITDA 92,347 47,451 82,991 24,016 Adjusted EBITDA1 415,121 202,373 943,818 938,790 1 Q2 2023 amounts have been adjusted from those presented in the Company's MD&A for the three and six months ended June 30, 202 3. ===== SIDA 8 ===== Adjusted earnings and adjusted earnings per share can be reconciled to the Company's Consolidated Statement of Earnings as follows: Three months ended September 30, Nine months ended September 30, ($thousands, except share and per share amounts) 2023 2022 2023 2022 Net earnings (loss) attributable to Lundin Mining shareholders (2,964) (11,212) 202,765 281,289 Add back: Total adjustments - EBITDA 92,347 47,451 82,991 24,016 Tax effect on adjustments (20,114) (12,012) (23,295) (11,323) Deferred tax expense due to change in tax rate 25,700 — 25,700 — Deferred tax arising from foreign exchange translation 9,669 5,599 (12,327) (6,264) Non-controlling interest on adjustments (19,049) 1,070 (18,980) 1,197 Total adjustments 88,552 42,108 54,089 7,626 Adjusted earnings1 85,588 30,896 256,854 288,915 Basic weighted average number of shares outstanding 773,147,920 775,563,527 772,214,160 759,726,506 Net (loss) earnings attributable to shareholders — (0.01) 0.26 0.37 Total adjustments 0.11 0.05 0.07 0.01 Adjusted earnings per share1 0.11 0.04 0.33 0.38 1 Q2 2023 amounts have been adjusted from those presented in the Company's MD&A for the three and six months ended June 30, 2023. ===== SIDA 9 ===== Cash and All-in Sustaining Costs can be reconciled to the Company's operating costs as follows: Three months ended September 30, 2023 Operations Candelaria Caserones Chapada Eagle Neves- Corvo Zinkgruvan ($000s, unless otherwise noted) (Cu) (Cu) (Cu) (Ni) (Cu) (Zn) Total Sales volumes (Contained metal): Tonnes 33,668 30,385 11,445 3,640 8,799 22,042 Pounds (000s) 74,225 66,987 25,232 8,025 19,398 48,594 Production costs 615,109 Less: Royalties and other (21,662) Inventory fair value adjustment (32,185) 561,262 Deduct: By-product (216,150) Add: Treatment and 56,261 Cash cost 162,672 106,866 57,501 16,598 44,043 13,693 401,373 Cash cost per pound 2.19 1.60 2.28 2.07 2.27 0.28 Add: Sustaining capital 86,693 28,849 16,716 4,989 27,357 12,350 Royalties — 7,550 2,142 7,385 1,055 — Reclamation and other closure accretion and depreciation 2,349 1,133 2,141 2,742 1,462 1,011 Leases & other 2,841 11,531 865 797 131 86 All-in sustaining cost 254,555 155,929 79,365 32,511 74,048 27,140 AISC per pound ($/lb) 3.43 2.33 3.15 4.05 3.82 0.56 Three months ended September 30, 2022 Operations Candelaria Caserones Chapada Eagle Neves- Corvo Zinkgruvan ($000s, unless otherwise noted) (Cu) (Cu) (Cu) (Ni) (Cu) (Zn) Total Sales volumes (Contained metal): Tonnes 35,587 — 12,817 3,715 8,574 13,722 Pounds (000s) 78,456 — 28,257 8,190 18,903 30,252 Production costs 425,814 Less: Royalties and (8,593) 417,221 Deduct: By-product (172,179) Add: Treatment and 28,829 Cash cost 154,633 — 54,147 8,637 50,888 5,566 273,871 Cash cost per pound 1.97 — 1.92 1.05 2.69 0.18 Add: Sustaining capital 103,486 — 19,197 3,062 15,860 8,415 Royalties — — 3,055 5,705 (1,213) — Reclamation and other closure accretion and depreciation 1,951 — 1,784 4,809 630 962 Leases & other 2,327 — 1,017 484 173 149 All-in sustaining cost 262,397 — 79,201 22,697 66,338 15,092 AISC per pound ($/lb) 3.34 — 2.80 2.77 3.51 0.50 ===== SIDA 10 ===== Nine months ended September 30, 2023 Operations Candelaria Caserones Chapada Eagle Neves- Corvo Zinkgruva n ($000s, unless otherwise noted) (Cu) (Cu) (Cu) (Ni) (Cu) (Zn) Total Sales volumes (Contained metal): Tonnes 105,585 30,385 30,681 10,234 23,000 48,028 Pounds (000s) 232,775 66,987 67,640 22,562 50,706 105,883 Production costs 1,438,071 Less: Royalties and other (41,717) Inventory fair value adjustment (32,185) 1,364,169 Deduct: By-product credits (495,751) Add: Treatment and 125,390 Cash cost 507,884 106,866 165,170 47,228 128,206 38,454 993,808 Cash cost per pound ($/lb) 2.18 1.60 2.44 2.09 2.53 0.36 Add: Sustaining capital 300,796 28,849 52,433 15,653 74,551 42,812 Royalties — 7,550 6,394 17,991 2,868 — Reclamation and other closure accretion and depreciation 7,100 1,133 5,789 8,711 4,082 2,811 Leases & other 9,638 11,531 3,002 2,441 437 288 All-in sustaining cost 825,418 155,929 232,788 92,024 210,144 84,365 AISC per pound ($/lb) 3.55 2.33 3.44 4.08 4.14 0.80 ===== SIDA 11 ===== Nine months ended September 30, 2022 Operations Candelaria Caserones Chapada Eagle Neves- Corvo Zinkgruvan ($000s, unless otherwise noted) (Cu) (Cu) (Cu) (Ni) (Cu) (Zn) Total Sales volumes (Contained metal): Tonnes 113,690 — 33,526 11,188 25,241 48,049 Pounds (000s) 250,643 — 73,912 24,665 55,647 105,930 Production costs 1,210,431 Less: Royalties and other (38,121) 1,172,310 Deduct: By-product (487,914) Add: Treatment and 90,944 Cash cost 450,858 — 157,456 7,999 125,889 33,138 775,340 Cash cost per pound ($/lb) 1.80 — 2.13 0.32 2.26 0.31 Add: Sustaining capital 272,557 — 63,412 10,445 49,136 31,537 Royalties — — 9,161 24,129 984 — Reclamation and closure accretion and depreciation 6,002 — 5,533 14,109 1,081 3,035 Leases & other 6,953 — 3,056 1,766 569 547 All-in sustaining cost 736,370 — 238,618 58,448 177,659 68,257 AISC per pound ($/lb) 2.94 — 3.23 2.37 3.19 0.64 ===== SIDA 12 ===== Cautionary Statement on Forward-Looking Information Certain of the statements made and information contained herein is “forward -looking information” within the meaning of applicable Canadian securities laws. All statements other than statements of historical facts included in this document constitute forward-looking information, including but not limited to statements regarding the Company’s plans, prospects and business strategies; the Company’s guidance on the timing and amount of future production and its expectations regarding the results of operations; expected costs; permitting requirements and timelines; timing and possible outcome of pending litigation; the results of any Preliminary Economic Assessment, Feasibility Study, or Mineral Resource and Mineral Reserve estimations, life of mine estimates, an d mine and mine closure plans; anticipated market prices of metals, currency exchange rates, and interest rates; the development and implementation of the Company’s Responsible Minin g Management System; the Company’s ability to comply with contractual and permitting or other regulatory requirements; anticipated exploration and development activities at the Company’s projects; th e Company’s integration of acquisitions and any anticipated benefits thereof, including the Caserones transaction; and expectat ions for other economic, business, and/or competitive factors. Words such as “believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “goal”, “aim”, “intend ”, “continue”, “budget”, “estimate”, “may”, “will”, “can”, “could”, “should”, “schedule” and similar expressions identify forward-looking statements. Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation, the expectatio ns and beliefs of management, including that the Company can access financing, appropriate equipment and sufficient labour; assumed and future price of copper, nickel, zinc, gold and other metals; anticipated costs; ability to achieve goals; the prompt and effective integration of acquisitions; that the political environment in which the Company operates will continue to support the development and operation of mining projects; and assumptions related to the factors set forth below. While these factors and assumptions are considered reasonable by Lundin Mining as at the date of this document in light of management’s experience and perception of current conditions and expected developments, these statements are inherently subject to significant business, economic and competitive uncertainties and contingencies. Kn own and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements and undue reliance should not be placed on such statements and information. Such factors include, but are not limited to: global financial conditions, market volatility and inflation, including pricing and availability of key supplies and services; risks inherent in mining including but not limited to risks to the environment, industrial accidents, catastrophic equipment failur es, unusual or unexpected geological formations or unstable ground conditions, and natural phenomena such as earthquakes, flooding or unusually severe weather; uninsurable risks; project financing risks, liquidity risks and limited financial resources; volatility and fluctuations in metal and commodity demand and prices; delay s or the inability to obtain, retain or comply with permits; significant reliance on a single asset; reputation risks related to negative publicity with respect to the Comp any or the mining industry in general; health and safety risks; risks relating to the development of the Josemaria Project; inability to attract and retain highly skilled employees; risks associated with clima te change; compliance with environmental, health and safety laws and regulations; unavailable or inaccessible infrastructure, infra structure failures, and risks related to ageing infrastructure; risks inherent in and/or associated with operating in foreign countries and emerging markets, including with respect to foreign exchange and capital controls; economic, political and social in stability and mining regime changes in the Company’s operating jurisdictions, including but not limited to those related to permitting and approvals, environmental and tailings management, labour, trade relations, and transportation; risks relating to indebtedness; the inability to effectively compete in the industry; risks associated with acquisitions and related integration efforts, including the ability to achieve anticipated benefits, unanticipated difficulties or expenditures relating to integration and diversion of management time on integration, including with respect to the Caserones transaction; changing taxation regimes; risks related to mine closure activities, reclamation obligations, environmental liabilities and closed and historical sites; reliance on key personnel and reporting and oversight systems, as well as third parties and consultants in foreign jurisdictions; information technology and cybersecurit y risks; risks associated with the estimation of Mineral Resources and Mineral Reserves an d the geology, grade and continuity of mineral deposits including but not limited to models relating thereto; actual ore mined and/or metal recoveries varying from Mineral Resource and Mineral Reserve estimates, estimates of grade, tonnage, dilut ion, mine plans and metallurgical and other characteristics; ore processing efficiency; community and stakeholder opposition; financial projections, including esti mates of future expenditures and cash costs, and estimates of future production may not be reliable; en forcing legal rights in foreign jurisdictions; environmental and regulatory risks associated with the structural stability of waste rock dumps or tailings storage facilities; activist shareholders and proxy solicitation matters; risks rel ating to dilution; regulatory investigations, enforcement, sanctions and/or related or other litigation; risks relating to payment of dividends; counterparty and customer concentration risks; the estimation of asset carrying values; risks associated with the use of derivati ves; relationships with employees and contractors, and the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; conflicts of interest; existence of a significant shareholder; exchange rate fluctuations; challenges or defects in title; internal controls; compliance with foreign laws; potential for the allegation of fraud and co rruption involving the Company, its customers, suppliers or employees, or the allegation of improper or discriminatory employment practices, or human rights violations; the threat associated with outbreaks of viruses and infectious diseases; risks relating to minor elements contained in concentrate products; and other risks and uncertainties, including but not limited to those described in the “Risk and Uncertainties” section of the Company’s Annual Information Form and the “Managing Risks” section of the Company’s MD&A for the year ended December 31, 2022, which are available on SEDAR+ at www.sedarpl us.ca under the Company’s profile. All of the forward-looking statements made in this document are qualified by these cautionary statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward -looking information, there may be other factors that cause results not to be as anticipated, estimated, forecast or intended and readers are cautioned that the foregoing list is not exhaustive of all fa ctors and assumptions which may have been used. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results ma y vary materially from those described in forward -looking information. Accordingly, there can be no assurance that forward -looking information will prove to be accurate and forward -looking information is not a guarantee of future performance. Readers are advised not to place undue reliance on forward-looking information. The forward-looking information contained herein speaks only as of the date of this document. The Company disclaims any intention or obligation to update or revise forward ‐looking information or to explain any material difference between such and subsequent actual events, except as required by applicable law. ===== SIDA 13 ===== Management’s Discussion and Analysis For the three and nine months ended September 30, 2023 This management’s discussion and analysis (“MD&A”) has been prepared as of November 1, 2023 and should be read in conjunction with the Company’s condensed interim consolidated financial statements for the three and nine months ended September 30, 2023 . Those financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board applicable to the preparation of interim financial statements, including International Accounting Standard 34, Interim Financial Reporting. The Company’s presentation currency is United States (“US”) dollars. Reference herein of $ or USD is to United States dollars, ARS is to Argentine pesos, BRL is to Brazilian reais, C$ is to Canadian dollars, CLP is to Chilean pesos, € refers to euros, and SEK is to Swedish kronor . About Lundin Mining Lundin Mining Corporation (“Lundin Mining” or the “Company”) is a diversified Canadian base metals mining company with projects and operations in Argentina, Brazil, Chile, Portugal, Sweden, and the United States of America, primarily producing copper , zinc, molybdenum, gold and nickel. Table of Contents Highlights ................................ ................................ ................................ ................................ ................................ ........ 1 Financial Position and Financing ................................ ................................ ................................ ................................ ...... 3 Outlook ................................ ................................ ................................ ................................ ................................ ........... 4 Selected Quarterly Financial Information ................................ ................................ ................................ ......................... 6 Revenue Overview ................................ ................................ ................................ ................................ .......................... 7 Financial Results ................................ ................................ ................................ ................................ .............................. 11 Mining Operations ................................ ................................ ................................ ................................ .......................... 13 Production Overview ................................ ................................ ................................ ................................ ................. 13 Production Cost and Cash Cost Overview ................................ ................................ ................................ ................... 14 Capital Expenditures ................................ ................................ ................................ ................................ .................. 15 Candelaria ................................ ................................ ................................ ................................ ................................ . 16 Caserones ................................ ................................ ................................ ................................ ................................ .. 17 Chapada ................................ ................................ ................................ ................................ ................................ .... 18 Eagle................................ ................................ ................................ ................................ ................................ .......... 19 Neves-Corvo ................................ ................................ ................................ ................................ .............................. 20 Zinkgruvan ................................ ................................ ................................ ................................ ................................ . 21 Josemaria Project ................................ ................................ ................................ ................................ ............................ 22 Metal Prices, LME Inventories, and Smelter Treatment and Refining Charges ................................ ................................ ... 23 Liquidity and Capital Resources ................................ ................................ ................................ ................................ ....... 24 Related Party Transactions ................................ ................................ ................................ ................................ ............... 25 Changes in Accounting Policies and Critical Accounting Estimates and Judgements ................................ .......................... 25 Non-GAAP and Other Performance Measures ................................ ................................ ................................ .................. 26 Managing Risks ................................ ................................ ................................ ................................ ............................... 32 Management's Report on Internal Controls ................................ ................................ ................................ ..................... 32 Outstanding Share Data ................................ ................................ ................................ ................................ ................... 32 ===== SIDA 14 ===== Cautionary Statement on Forward-Looking Information Certain of the statements made and information contained herein is “forward -looking information” within the meaning of applicable Canadian securities laws. All statements other than statements of historical facts included in this document constitute forward -looking information, including but not limited to statements regarding the Company’s plans, prospects and business strategies; the significant growth potential to the Company’s portfolio of assets and expected synergies and potential for cost savings; the potential to unlock additional upside; expectations regarding the world shifting to a lower carbon future; the Company’s expe ctations regarding liquidity; the anticipated development of Josemaria and other growth projects; the Company’s guidance on the timing and amount of future production and its expectations regarding the potential production and results of operations; expected cash costs and capital expenditures; permitting requirements and timelines; ti ming and possible outcome of pending litigation; the results of any Preliminary Economic Assessment, Feasibility Study, or Mineral Resource and Mineral Reserve estimations, l ife of mine estimates, and mine and mine closure plans; anticipated market prices of metals, currency exchange rates, and interest rates; the development and implementation o f the Company’s Responsible Mining Management System; the Company’s ability to comply with contractual and permitting or other regulatory requirements; anticipa ted exploration and development activities at the Company’s projects; the Company’s integration of acquisitions and any anticipated benefits thereof, including the Caseron es transaction; and expectations for other economic, business, and/or competitive factors. Words such as “believe”, “expect”, “anticipate”, “contemplate”, “target”, “pl an”, “goal”, “aim”, “ intend”, “continue”, “budget”, “estimate”, “may”, “will”, “can”, “could”, “should”, “schedule” and similar expressions identify forward -looking statements. Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation, the expectatio ns and beliefs of management, including that the Company can achieve certain synergies, access financing, appropriate equipment and sufficient labour; assumed and fu ture price of copper, nickel, zinc, gold and other metals; anticipated costs; ability to achieve goals; the prompt and effective integration of acquisitions; that the political environment in which the Company operates will continue to support the development and operation of mining projects; and assumptions related to the factors set forth below. While these factors and assumptions are considered reasonable by Lundin Mining as at the date of this document in light of management’s experience and perception of current conditions and expected developments, these statements are inherently subject to significant business, economic and competitive uncertainties and contingencies. Kn own and unknown factors could cause actual results to differ materially from those projected in the forward -looking statements and undue reliance should not be placed on such statements and information. Such factors include, but are not limited to: global financial conditions, market volatility and inflation, including pricing and availabi lity of key supplies and services; risks inherent in mining including but not limited to risks to the environment, industrial accidents, catastrophic equipment failures, unusual or unex pected geological formations or unstable ground conditions, and natural phenomena such as earthquakes, flooding or unusually severe weather; uninsurable risks; project finan cing risks, liquidity risks and limited financial resources; volatility and fluctuations in metal and commodity demand and prices; delays or the inability to obtain, retain or comply with permits; significant reliance on a single asset; reputation risks related to negative publicity with respect to the Company or the mining industry in general; health a nd safety risks; risks relating to the development of the Josemaria Project; inability to attract and retain highly skilled employees; risks associated with climate change; compli ance with environmental, health and safety laws and regulations; unavailable or inaccessible infrastructure, infrastructure failures, and risks related to ageing infrastructure; risks inherent in and/or associated with operating in foreign countries and emerging markets, including with respect to foreign exchange and capital controls; economic, political and social instability and mining regime changes in the Company’s operating jurisdictions, including but not limited to those related to permitting and approvals, environmental and tailings management, labour, trade relations, and transportation; risks relating to indebtedness; the inability to effectively compete in the industry; risks associated wi th acquisitions and related integration efforts, including the ability to achieve anticipated benefits, unanticipated difficulties or expenditures relating to integration and diversion of management time on integration; changing taxation regimes; risks related to mine closure activities, reclamation obligations, environmental liabilities and closed and historic al sites; reliance on key personnel and reporting and oversight systems, as well as third parties and consultants in foreign jurisdictions; information technology and cybersecurit y risks; risks associated with the estimation of Mineral Resources and Mineral Reserves and the geology, grade and continuity of mineral deposits including but not limited to models relating thereto; actual ore mined and/or metal recoveries varying from Mineral Resource and Mineral Reserve estimates, estimates of grade, tonnage, dilution, mine plans and metallurgical and other characteristics; ore processing efficiency; community and stakeholder opposition; financial projections, including estimates of future expenditure s and cash costs, and estimates of future production may not be reliable; enforcing legal rights in foreign jurisdictions; environmental and regulatory risks associate d with the structural stability of waste rock dumps or tailings storage facilities; activist shareholders and proxy solicitation matters; risks relating to dilution; regulatory inv estigations, enforcement, sanctions and/or related or other litigation; risks relating to payment of dividends; counterparty and customer concentration risks; the estimation of asset ca rrying values; risks associated with the use of derivatives; relationships with employees and contractors, and the potential for and effects of labour disputes or other unan ticipated difficulties with or shortages of labour or interruptions in production; conflicts of interest; existence of a significant shareholder; exchange rate fluctuations; chall enges or defects in title; internal controls; compliance with foreign laws; potential for the allegation of fraud and corruption involving the Company, its customers, suppliers or em ployees, or the allegation of improper or discriminatory employment practices, or human rights violations; the threat associated with outbreaks of viruses and infectio us diseases; risks relating to minor elements contained in concentrate products; and other risks and uncertainties, including but not limited to those described in the “Ri sk and Uncertainties” section of the Company’s Annual Information Form and the “Managing Risks” section of the Company’s MD&A for the year ended December 31, 2022, which ar e available on SEDAR+ at www.sedarplus.ca under the Company’s profile. All of the forward -looking statements made in this document are qualified by these cautionary statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward -looking information, there may be other factors that cause results not to be as anticipated, estimated, forecast or intended and readers are cautioned that the foregoing list is not exhaustive of all factors and assump tions which may have been used. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary mater ially from those described in forward -looking information. Accordingly, there can be no assurance that forward -looking information will prove to be accurate and forward -looking information is not a guarantee of future performance. Readers are advised not to place undue reliance on forward -looking information. The forward -looking information contained herein speaks only as of the date of this document. The Company disclaims any intention or obligation to update or revise forward‐looking information or to explai n any material difference between such and subsequent actual events, except as required by applicable law. ===== SIDA 15 ===== 1 This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion. 1 Highlights For the quarter ended September 30, 2023 the Company generated revenue of $992.2 million (Q3 2022 - $648.5 million), gross profit of $197.3 million (Q3 2022 - $82.5 million) and adjusted EBITDA 1 of $415.1 million (Q3 2022 - $202.4 million). Financial results include the contribution from the acquisition of the Caserones copper -molybdenum mine ("Caserones") located in Chile, which closed on July 13, 2023. Overall, the operations performed well during the third quarter of 2023 with 89,942 tonnes of copper and 49,774 tonnes of zinc produced, both record volumes for the Company. The Company remains on track to achieve annual production guidance. Operational Performance Candelaria (80% owned): Candelaria produced 34,275 tonnes of copper and approximately 20,000 ounces of gold in concentrate on a 100% basis in the quarter . Copper production was lower than the prior year quarter primarily due to lower grades partially offset by higher throughput. Gold production was lower than the prior year quarter due to lower grades and recoveries. Current quarter production costs and copper cash cost 1 of $2.19/lb were higher than the prior year quarter largely owing to higher contractor and maintenance costs and unfavourable foreign exchange. Cash cost was further impacted by lower sales volumes. Caserones (51% owned): In the three months ended September 30, 2023 Caserones produced 34,427 tonnes of copper and 1,321 tonnes of molybdenum on a 100% basis, of which 29,821 tonnes of copper and 1,096 tonnes of molybdenum were produced from the acquisition closing date of July 13. Copper and molybdenum production were higher than planned due to increased throughput and recoveries. Production costs in the quarter were negatively impacted by the recognition of fair market value adjustments to inventory due to the acquisition. Copper cash cost of $1.60/lb benefited from higher than planned production and by-product credits. Chapada (100% owned): Chapada produced 12,286 tonnes of copper and approximately 15,000 ounces of gold in concentrate in the quarter . Copper and gold production was lower than the prior year quarter primarily due to lower throughput and grades. Production costs were lower than the prior year quarter due to lower sales volumes. Copper cash cost of $2.28/lb for the quarter increased from the prior year quarter due to lower sales volumes, unfavorable foreign exchange variances, and lower by-product credits and production. Eagle (100% owned): During the quarter Eagle produced 4,290 tonnes of nickel and 3,245 tonnes of copper which were lower than the prior year quarter due to lower planned grades. Production costs were higher than the comparable prior year quarter due to inflationary contractual cost increases. Nickel cash cost in the quarter of $2.07/lb was higher than the prior year quarter primarily due to lower by-product credits and higher production costs. Neves-Corvo (100% owned): Neves-Corvo produced 9,016 tonnes of copper and 25,807 tonnes of zinc in the quarter . Copper production was higher than in the prior year quarter due to higher throughput, grades and recoveries. Zinc production was higher than in the prior year quarter primarily due to increased grades and recoveries driven by the Zinc Expansion Project ("ZEP"). Production costs during the quarter were lower than the prior year quarter despite higher sales, primarily due to reduced electricity costs. Current quarter copper cash cost per pound of $2.27/lb was lower than prior year quarter primarily as a result of lower input costs, and benefited from higher production and sales. Zinkgruvan (100% owned): Zinc production of 23,967 tonnes and lead production of 8,643 tonnes were higher than the prior year quarter primarily due to higher throughput and grades. Copper production of 1,299 tonnes was lower than the prior year quarter due to lower throughput. Production costs were higher than the prior year quarter primarily due to higher sales volumes. Zinc cash cost per pound of $0.28/lb during the quarter was higher than the prior year quarter primarily as a result of lower by-product costs per pound and higher treatment and refining charges. ===== SIDA 16 ===== 1 This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion. 2 Total Productiona 2023 2022 YTD Q3 Q2 Q1 Total Q4 Q3 Q2 Q1 Copper (t)b 211,461 89,942 60,057 61,462 249,659 56,552 63,930 64,096 65,081 Zinc (t) 134,442 49,774 36,115 48,553 158,938 44,308 40,327 41,912 32,391 Molybdenum (t)b 1,096 1,096 — — — — — — — Gold (koz)b 105 35 34 36 154 36 45 39 34 Nickel (t) 12,700 4,290 4,686 3,724 17,475 4,096 4,379 4,719 4,281 a - Tonnes(t) and thousands of ounces (koz). b - Candelaria and Caserones production are on a 100% basis. Caserones results are from July 13, 2023. Corporate Updates • On July 13, 2023, the Company announced the closing of the acquisition of 51% of the issued and outstanding equity of SCM Minera Lumina Copper Chile ("Lumina Copper"), which owns the Caserones copper -molybdenum mine located in Chile. Net cash paid at closing was $648.6 million, consisting of $796.6 million upfront cash consideration after adjustments, net of $148.0 million cash and cash equivalents held by Lumina Copper at closing on a 100% basis. Excluding the 49% of cash and cash equivalents held by Lumina Copper at closing that are not attributable to the Company, net cash paid at closing was $721.1 million for the Company's 51% share. Remaining deferred cash consideration of $150 million will be payable in installments as follows: $50 million to be paid in five installments of $10 million on the anniversary of the transaction closing date in each of 2024, 2025, 2026, 2027, and 2028; and $100 million shall be paid on the anniversary of the closing date in 2029. Lundin Mining also has the right to acquire up to an additional 19% interest in Lumina Copper for $350 million over a five -year period commencing on the first anniversary of the date of closing. A technical report for the Caserones mine titled “Caserones Mining Operation, Chile, NI 43 -101 Technical Report on the Caserones Mining Operation” was filed under the Company's profile on SEDAR+. • On July 27, 2023, the Company announced it had obtained a three -year term loan ("Term Loan") of a principal amount of $800.0 million with an additional $400.0 million accordion option, maturing July 2026. The $400 million accordion becomes available upon closing of up to an additional 19% interest in Lumina Copper. • On September 11, 2023, the Company announced that the Environmental Impact Assessment (“EIA”) for the extension of operations and mine life for its Candelaria Copper Mine in Chile was approved by the Regional Environmental Commission of Atacama on September 8, 2023. Approval of the EIA will allow for the extension of Candelaria's mine life to 2040 and include various measures that will support sustainable social, economic, and environmental development in the Atacama Region. • On October 2, 2023, the Company announced that its Chief Executive Officer, Peter Rockandel, will be stepping down as of December 31, 2023. The role of President and Chief Executive Officer will be assumed by Jack Lundin, current President and former Director of the Company, who will rejoin the Board of Directors as of January 1, 2024. Financial Performance • Gross profit for the quarter ended September 30, 2023 was $197.3 million, an increase of $114.8 million over the prior year quarter due to the acquisition of the Caserones mine as well as higher realized copper price. On a year -to-date basis, gross profit for the period ended September 30, 2023 was $463.5 million which was lower than the prior year period. The decrease was primarily due to higher input costs at Candelaria combined with higher treatment and refining charges, offset by the inclusion of Caserones gross profit. • For the three months ended September 30, 2023, net earnings of $21.9 million were $33.1 million higher than the prior year quarter. The increase was primarily due to higher gross profit and lower project development costs, and partially offset by increased interest costs, unrealized losses on derivative contracts, the fair market value adjustment on inventory and higher tax expenses due primarily to the change in mining royalty in Chile. On a year -to-date basis, net ===== SIDA 17 ===== 1 This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion. 3 earnings of $248.5 million were lower than the prior year period due to lower gross profit partially offset by lower project development costs and taxes. • Adjusted earnings1 for the three months ended September 30, 2023 of $85.6 million were $54.7 million higher than the prior year quarter primarily due to the same factors as the change in net earnings described above. On a year-to-date basis adjusted earnings of $256.9 million were lower than the prior year period due to lower gross profit partially offset by lower income taxes. • Free cash flow 1 for the three months ended September 30, 2023 of $71.1 million was $234.3 million higher than the prior year comparable period and benefited from the inclusion of production from Caserones, combined with higher realized copper prices and higher overall changes in working capital. Financial Position and Financing • Cash and cash equivalents as at September 30, 2023 was $357.3 million. Cash generated from operations of $303.8 million in the three months ended September 30, 2023 was used to fund investing activities of $908.8 million. Investing activities in the third quarter included $648.6 million net cash paid at closing for the acquisition of Caserones, consisting of $796.6 million upfront cash consideration after adjustments, net of $148 million cash and cash equivalents held by Lumina Copper at closing on a 100% basis. Cash generated from financing activities was $773.2 million, which was comprised primarily of the proceeds from the Term Loan to finance the Caserones acquisition. • As at September 30, 2023, the Company had a net debt1 balance of $1,158.9 million. • As at November 1, 2023, the Company had cash and net debt balances of approximately $368.6 million and $1,137.6 million, respectively. ===== SIDA 18 ===== 4 Outlook Overall, the operations performed well during the third quarter of 2023 and production and cash cost guidance for 2023 has been updated from that disclosed in the Company's Management's Discussion and Analysis for the three and six months ended June 30, 2023. Most production guidance ranges have been tightened and improved, with the lower end of the range being increased for copper , nickel and gold. Cash cost guidance has been lowered for Caserones and Eagle driven by higher production volumes and by-product credits, and increased for Candelaria, reflecting higher operating costs. Production continues to be weighted to the second half of the year , notably at Chapada due to the first half seasonal operating conditions and forecast grade and recovery profiles. As a result of re-phasing several projects at Neves-Corvo and Zinkgruvan, capital expenditure guidance has been reduced for 2023. As disclosed in the Company's Management's Discussion and Analysis for the three and six months ended June 30, 2023, capital spend guidance at Josemaria was previously lowered to $350 million for 2023 due to foreign exchange, a delay in planned equipment deliveries and reduced activities. 2023 Production and Cash Cost Guidance Guidancea Revised Guidance (contained metal) Production Cash Cost ($/lb)b Production Cash Cost ($/lb)b Copper (t) Candelaria (100%) 145,000 – 155,000 1.80 – 1.95c 147,000 – 153,000 2.00 – 2.20c Caserones (100%)e 60,000 – 65,000 2.30 – 2.45 65,000 – 69,000 2.00 – 2.20 Chapada 43,000 – 48,000 2.35 – 2.55d 45,000 – 48,000 2.35 – 2.55d Eagle 12,000 – 15,000 12,000 – 15,000 Neves-Corvo 33,000 – 38,000 2.10 – 2.30c 33,000 – 36,000 2.10 – 2.30c Zinkgruvan 3,000 – 4,000 3,000 – 4,000 Total 296,000 – 325,000 305,000 – 325,000 Zinc (t) Neves-Corvo 100,000 – 110,000 103,000 – 110,000 Zinkgruvan 80,000 – 85,000 0.45 – 0.50c 78,000 – 82,000 0.45 – 0.50c Total 180,000 – 195,000 181,000 – 192,000 Molybdenum (t) Caserones (100%)e 1,500 – 2,000 1,500 – 2,000 Gold (koz) Candelaria (100%) 85 – 90 87 – 92 Chapada 55 – 60 55 – 60 Total 140 – 150 142 – 152 Nickel (t) Eagle 13,000 – 16,000 2.30 – 2.45 15,000 – 17,000 2.00 – 2.20 a. Guidance as outlined in the MD&A for the three and six months June 30, 2023. b. Cash costs are based on various assumptions and estimates, including but not limited to: production volumes, commodity pri ces (Cu: $3.75/lb, Zn: $1.10/lb, Mo: $20.00/lb, Pb: $0.90/lb, Au: $1,850/oz), foreign exchange rates (€/USD: 1.05, USD/SEK:10.50, USD/CLP:800, USD/BRL:5.00) and production costs for the remainder of 2023. c. 68% of Candelaria's total gold and silver production are subject to a streaming agreement, and silver production at Zinkgr uvan and Neves -Corvo are also subject to streaming agreements. Cash costs are calculated based on receipt of approximately $425/oz gold and $4.25/oz t o $4.57/oz silver. d. Chapada's cash cost is calculated on a by -product basis and does not include the effects of its copper stream agreements. Effects of the copper stream agreements are reflected in copper revenue and will impact realized price per pound. e. Caserones guidance is for the entire second half of 2023. ===== SIDA 19 ===== 5 2023 Capital Expenditure Guidanceb ($ millions) Guidancea Revisions Revised Guidance Candelaria (100% basis) 375 — 375 Caserones (100% basis)c 110 — 110 Chapada 70 — 70 Eagle 20 — 20 Neves-Corvo 130 (25) 105 Zinkgruvan 70 (5) 65 Other 10 — 10 Total Sustaining 785 (30) 755 Expansionary - Josemaria 350 — 350 Total Capital Expenditures 1,135 (30) 1,105 a. Guidance as outlined in the MD&A for the three and six months ended June 30, 2023. b. Sustaining capital expenditure is a supplementary financial measure, and expansionary capital expenditure is a non -GAAP measure – see Section "Non- GAAP and Other Performance Measures" of this MD&A for discussion. c. Caserones guidance is for entire second half of 2023. 2023 Exploration Investment Guidance Total exploration expenditures are on target to be $45.0 million in 2023, unchanged from previous guidance. ===== SIDA 20 ===== 6 Selected Quarterly Financial Information1 Three months ended September 30, Nine months ended September 30, ($ millions, except share and per share amounts) 2023 2022 2023 2022 Revenue 992.2 648.5 2,332.1 2,229.8 Costs of goods sold: Production costs (615.1) (425.8) (1,438.1) (1,210.4) Depreciation, depletion and amortization (179.8) (140.2) (430.5) (412.0) Gross profit 197.3 82.5 463.5 607.3 Net earnings (loss) attributable to: Lundin Mining shareholders (3.0) (11.2) 202.8 281.3 Non-controlling interests 24.8 — 45.7 36.9 Net earnings (loss) 21.9 (11.2) 248.5 318.2 Adjusted earnings3 85.6 30.9 256.9 288.9 Adjusted EBITDA3 415.1 202.4 943.8 938.8 Cash provided by operating activities 303.8 36.3 710.5 720.0 Adjusted operating cash flow3 316.5 181.3 662.2 703.9 Free cash flow from (used in) operations 136.5 (43.9) 228.3 417.1 Free cash flow3 71.1 (163.2) (47.7) 158.3 Capital expenditures4 243.2 199.5 769.2 561.7 Per share amounts: Basic and diluted (loss) earnings per share ("EPS") attributable to shareholders — (0.01) 0.26 0.37 Adjusted EPS 0.11 0.04 0.33 0.38 Adjusted operating cash flow per share3 0.41 0.23 0.86 0.93 Dividends declared (C$/share) 0.09 0.09 0.27 0.38 September 30, 2023 December 31, 2022 Total assets 10,696.2 8,172.8 Total debt and lease liabilities 1,511.4 197.3 Net debt3 (1,158.9) (10.9) Summary of Quarterly Results1,2,5 ($ millions, except per share data) Q3-23 Q2-23 Q1-23 Q4-22 Q3-22 Q2-22 Q1-22 Q4-21 Revenue 992.2 588.5 751.3 811.4 648.5 590.2 991.1 1,018.6 Gross profit 197.3 52.8 213.3 155.2 82.5 46.0 478.8 433.2 Net earnings (loss) 21.9 61.3 165.3 145.3 (11.2) (48.6) 378.1 266.1 - attributable to shareholders (3.0) 59.1 146.6 145.6 (11.2) (52.6) 345.1 228.8 Adjusted earnings (loss)6,3 85.6 45.6 125.7 191.5 30.9 (35.3) 295.6 281.5 Adjusted EBITDA3,6 415.1 191.8 336.9 353.7 202.4 148.6 587.8 623.0 EPS - Basic and Diluted — 0.08 0.19 0.19 (0.01) (0.07) 0.47 0.31 Adjusted EPS3,6 0.11 0.06 0.16 0.25 0.04 (0.05) 0.40 0.38 Cash flow from operations 303.8 194.8 211.9 156.9 36.3 366.4 317.3 384.2 Adjusted operating cash flow per share3 0.41 0.14 0.30 0.38 0.23 0.06 0.64 0.65 Capital expenditures4 243.2 279.9 246.1 281.2 199.5 217.3 144.9 153.9 1 Except where otherwise noted, financial data has been prepared in accordance with IFRS as issued by the IASB. 2 The sum of quarterly amounts may differ from year-to-date results due to rounding. 3 This is a non-GAAP measure - see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion. 4 Capital expenditures are reported on a cash basis, as presented in the consolidated statement of cash flows. 5 Variability in revenues and net earnings is largely driven by metal prices and sales volumes. In recent quarters, net earning s has also been impacted by inflation factors. For further metal price trending discussion, refer to page 22 of this MD&A 6 Q2 2023 amounts have been adjusted from those presented in the Company's MD&A for the three and six months ended June 30, 2023. ===== SIDA 21 ===== 7 Revenue Overview Sales Volumes by Payable Metal 2023 2022 YTD Q3 Q2 Q1 Total Q4 Q3 Q2 Q1 Copper (t) Candelaria (100%) 105,585 33,668 36,347 35,570 147,251 33,561 35,587 39,655 38,448 Caserones (100%)1 30,385 30,385 — — — — — — — Chapada 30,681 11,445 10,164 9,072 45,563 12,037 12,817 7,905 12,804 Eagle 8,913 3,177 2,951 2,785 14,060 2,672 3,721 4,159 3,508 Neves-Corvo 23,000 8,799 6,170 8,031 31,592 6,351 8,574 8,183 8,484 Zinkgruvan 3,628 1,758 1,001 869 4,428 886 1,570 337 1,635 202,192 89,232 56,633 56,327 242,894 55,507 62,269 60,239 64,879 Zinc (t) Neves-Corvo 65,624 21,957 20,125 23,542 66,966 20,205 18,770 16,289 11,702 Zinkgruvan 48,028 22,042 9,374 16,612 65,684 17,635 13,722 18,525 15,802 113,652 43,999 29,499 40,154 132,650 37,840 32,492 34,814 27,504 Molybdenum (t) Caserones (100%)1 1,041 1,041 — — — — — — — Gold (koz) Candelaria (100%) 64 19 23 22 83 20 20 22 21 Chapada 35 13 11 11 65 17 23 10 15 99 32 34 33 148 37 43 32 36 Nickel (t) Eagle 10,234 3,640 3,859 2,735 14,427 3,239 3,715 4,206 3,267 Lead (t) Neves-Corvo 3,140 1,220 881 1,039 2,908 673 654 818 763 Zinkgruvan 19,813 9,391 4,944 5,478 30,163 7,654 7,502 10,163 4,844 22,953 10,611 5,825 6,517 33,071 8,327 8,156 10,981 5,607 Silver (koz) Candelaria (100%) 907 279 333 295 1,442 278 305 412 447 Chapada 92 32 29 31 156 50 32 26 48 Eagle 16 6 4 6 34 9 9 9 7 Neves-Corvo 556 227 158 171 552 92 117 152 191 Zinkgruvan 1,443 713 331 399 2,088 551 532 650 355 3,014 1,257 855 902 4,272 980 995 1,249 1,048 1 Caserones results are from July 13, 2023. ===== SIDA 22 ===== 8 Revenue Analysis1 Three months ended September 30, Nine months ended September 30, by Mine 2023 2022 Change 2023 2022 Change ($ thousands) $ % $ % $ $ % $ % $ Candelaria (100%) 299,745 31 255,330 40 44,415 970,576 42 974,875 44 (4,299) Caserones (100%) 284,556 29 — — 284,556 284,556 12 — — 284,556 Chapada 111,897 11 118,734 18 (6,837) 317,736 14 335,599 15 (17,863) Eagle 102,505 10 106,715 16 (4,210) 277,175 12 363,412 16 (86,237) Neves-Corvo 111,202 11 102,865 16 8,337 309,219 13 330,970 15 (21,751) Zinkgruvan 82,290 8 64,854 10 17,436 172,808 7 224,942 10 (52,134) 992,195 648,498 343,697 2,332,070 2,229,798 102,272 Three months ended September 30, Nine months ended September 30, by Metal 2023 2022 Change 2023 2022 Change ($ thousands) $ % $ % $ $ % $ % $ Copper 643,992 65 388,882 60 255,110 1,564,626 67 1,418,868 64 145,758 Zinc 86,901 9 85,251 13 1,650 220,853 9 280,559 13 (59,706) Molybdenum 48,698 5 — — 48,698 48,698 2 — — 48,698 Gold 53,684 5 63,243 10 (9,559) 161,759 7 166,032 7 (4,273) Nickel 73,188 7 73,511 11 (323) 195,449 8 251,177 11 (55,728) Lead 22,328 2 13,868 2 8,460 44,836 2 43,088 2 1,748 Silver 13,670 1 9,450 1 4,220 32,558 1 33,351 1 (793) Other 49,734 6 14,293 3 35,441 63,291 4 36,723 2 26,568 992,195 648,498 343,697 2,332,070 2,229,798 102,272 1. Caserones results are from July 13, 2023. Revenue for the quarter ended September 30, 2023 amounted to $992.2 million which was higher than the prior year quarter as a result of the inclusion of Caserones copper and molybdenum revenues as well as a higher realized copper price. On a year-to-date basis revenue was higher than the prior year period primarily as a result of the Caserones acquisition, and partially offset by lower sales at the existing operations as a result of sales volumes ($135 million) and higher treatment and refining charges ($35 million). Revenue from gold and silver for the three and nine months ended September 30, 2023 includes the partial recognition of an upfront purchase price on the sale of precious metals streams for Candelaria, Neves-Corvo, and Zinkgruvan as well as the cash proceeds which amount to approximately $425/oz for gold and between $4.25/oz and $4.57/oz for silver . Chapada’s copper revenue includes the recognition of deferred revenue from copper streams acquired with the Chapada mine, as well as the cash proceeds of 30% of the market price of the copper sold under the streams. Revenue is recorded using the metal price received for sales that settle during the reporting period. For sales that have not been settled, an estimate is used based on the expected month of settlement and the forward price of the metal at the end of the reporting period. The difference between the estimate and the final price received is recognized by adjusting revenue in the period in which the sale is settled. Settlement dates can range from one to six months after shipment. ===== SIDA 23 ===== 9 Provisionally Valued Revenue as of September 30, 2023 Metal Payable metal Valued at Copper 120,071 t $3.75 /lb Zinc 30,946 t $1.20 /lb Molybdenum 1,150 t $20.27 /lb Gold 27 koz $1,856 /oz Nickel 1,404 t $8.40 /lb Quarterly Reconciliation of Realized Prices Three months ended September 30, 2023 ($ thousands) Copper Zinc Molybdenum Gold Nickel Total Current period sales1 731,635 120,356 46,971 61,238 73,318 1,033,518 Prior period price adjustments (2,744) (4,521) 1,727 (1,468) 908 (6,098) 728,891 115,835 48,698 59,770 74,226 1,027,420 Other metal sales 66,137 Copper stream cash effect (3,889) Gold stream cash effect (19,336) Less: Treatment & refining charges (78,137) Total Revenue 992,195 Payable Metal 89,232 t 43,999 t 1,041 t 32 koz 3,640 t Current period sales1,2 $3.72 $1.24 $20.47 $1,907 $9.14 Prior period adjustments2 (0.01) (0.05) 0.75 (45.00) 0.11 Realized prices2, 3 $3.71 /lb $1.19 /lb $21.22 /lb $1,862 /oz $9.25 /lb Three months ended September 30, 2022 Copper Zinc Gold Nickel Total Current period sales1 478,775 98,529 71,497 78,425 727,226 Prior period price adjustments (62,926) 3,961 (771) (4,954) (64,690) 415,849 102,490 70,726 73,471 662,536 Other metal sales 54,356 Copper stream cash effect (5,990) Gold stream cash effect (17,261) Less: Treatment & refining charges (45,143) Total Revenue 648,498 Payable Metal 62,269 t 32,492 t 42 koz 3,715 t Current period sales1,2 $3.49 $1.38 $1,690 $9.58 Prior period adjustments2 (0.46) 0.05 (18.00) (0.61) Realized prices2, 3 $3.03 /lb $1.43 /lb $1,672 /oz $8.97 /lb 1. Includes provisional price adjustments on current period sales. 2. This is a non-GAAP measure – see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion. 3. The realized price for copper inclusive of the impact of streaming agreements for the three months ended September 30, 2023 is $3.69/lb (2022: $2.99/lb). The realized price for gold inclusive of the impact of streaming agreements for the three months ended September 30, 2023 is $1,259/oz (2022: $1,264/oz). ===== SIDA 24 ===== 10 Year-to-Date Reconciliation of Realized Prices Nine months ended September 30, 2023 ($ thousands) Copper Zinc Molybdenum Gold Nickel Total Current period sales1 1,679,402 292,262 46,971 188,632 216,648 2,423,915 Prior period price adjustments 27,576 823 1,727 1,243 (17,501) 13,868 1,706,978 293,085 48,698 189,875 199,147 2,437,783 Other metal sales 153,315 Copper stream cash effect (14,652) Gold stream cash effect (60,855) Less: Treatment & refining charges (183,521) Total Revenue 2,332,070 Payable Metal 202,192 t 113,652 t 1,041 koz 98 koz 10,234 t Current period sales1,2 $3.77 $1.17 $20.47 $1,913 $9.60 Prior period adjustments2 0.06 — 0.75 12 (0.77) Realized prices2, 3 $3.83 /lb $1.17 /lb $21.22 /oz $1,925 /oz $8.83 /lb Nine months ended September 30, 2022 Copper Zinc Gold Nickel Total Current period sales1 1,481,873 313,191 193,771 255,078 2,243,913 Prior period price adjustments 15,442 13,815 1,374 (1,510) 29,121 1,497,315 327,006 195,145 253,568 2,273,034 Other metal sales 166,005 Copper stream cash effect (18,374) Gold stream cash effect (58,550) Less: Treatment & refining charges (132,317) Total Revenue 2,229,798 Payable Metal 187,387 t 94,810 t 110 koz 11,188 t Current period sales1,2 $3.59 $1.50 $1,762 $10.34 Prior period adjustments2 0.03 0.06 12 (0.06) Realized prices2, 3 $3.62 /lb $1.56 /lb $1,774 /oz $10.28 /lb 1. Includes provisional price adjustments on current period sales. 2. This is a non-GAAP measure - see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion. 3. The realized price for copper inclusive of the impact of streaming agreements for 2023 is $3.80/lb ( 2022: $3.58/lb). The realized price for gold inclusive of the impact of streaming agreements for 2023 is $1,308/oz (2022: $1,232/oz). ===== SIDA 25 ===== 11 Financial Results Production Costs Production costs for the quarter ended September 30, 2023 were $615.1 million and were higher than the prior year quarter due to the acquisition of Caserones, including $32.2 million fair value adjustments recorded to re-value concentrate and in-process inventory on hand at the acquisition date, and subsequently recognized in production costs as the inventory was sold in the third quarter. On a year-to-date basis, production costs of $1,438.1 million increased by $227.6 million over the prior year comparable period primarily due to the acquisition of Caserones as well as higher maintenance costs at Candelaria. Depreciation, Depletion and Amortization For the three and nine months ended September 30, 2023 depreciation, depletion and amortization expense increased compared to the prior year comparative periods, primarily attributable to the acquisition of Caserones, partially offset by decreased amortization related to extended life of mine at Eagle. Depreciation, depletion & amortization Three months ended September 30, Nine months ended September 30, ($ thousands) 2023 2022 Change 2023 2022 Change Candelaria 70,368 74,772 (4,404) 198,439 218,792 (20,353) Caserones 38,307 — 38,307 38,307 — 38,307 Chapada 12,813 12,218 595 39,883 31,808 8,075 Eagle 14,326 21,650 (7,324) 38,147 60,403 (22,256) Josemaria — 335 (335) 38 623 (585) Neves-Corvo 31,353 25,299 6,054 89,152 70,123 19,029 Zinkgruvan 12,380 5,442 6,938 25,380 28,951 (3,571) Other 241 445 (204) 1,194 1,340 (146) 179,788 140,161 39,627 430,540 412,040 18,500 General Exploration and Business Development Total general exploration and business development expenses for the quarter and the nine months ended September 30, 2023 were lower than comparable prior year periods due mainly to project investigation costs incurred in 2022 related to the Josemaria Project. During the current quarter , exploration costs were spent primarily on in -mine and near -mine targets at the Company’s operations. Geophysical surveys were conducted at Chapada and at Eagle where underground down -hole geophysical surveys continue at Eagle East. Drilling at Candelaria was divided between Ojos district and Candelaria near -mine. Exploration drilling at Neves -Corvo and Zinkgruvan was primarily focused along potential near -mine trends; Drilling at Chapada was focused between near -mine and the Chapada district. Tender processes for drilling and geophysical surveys were advanced at both the Caserones and the Josemaria Project, where in both instances, drilling and geophysical surveys are planned to commence during the fourth quarter. Finance Income and Costs Net finance costs in the current quarter and year -to-date period were higher than the prior year comparable periods primarily due to higher interest expense related to higher outstanding debt through the year , higher interest rates and combined with increased lease liability interest following the acquisition of Caserones. Other Income and Expense Net other expense of $22.1 million for the quarter ended September 30, 2023 compared to net other income of $19.5 million for the prior year quarter was negatively impacted by unrealized losses on derivative contracts and foreign exchange and lower trading gains on debt and equity investments recorded in the current quarter . Net other income was lower for the nine months ended September 30, 2023 compared to the prior year period due to sinkhole costs and a comparatively lower gain on disposal than that recognized in the prior year . ===== SIDA 26 ===== 12 Foreign exchange gains and losses recorded in other income primarily resulted from foreign exchange revaluation of working capital denominated in foreign currencies. Period end exchange rates having a meaningful impact on foreign exchange recorded at September 30, 2023 were: September 30, 2023 June 30, 2023 December 31, 2022 Brazilian Real (USD:BRL) 5.01 4.82 5.22 Chilean Peso (USD:CLP) 907 803 860 Euro (USD:€) 0.94 0.92 0.94 Swedish Kronor (USD:SEK) 10.84 10.85 10.44 Argentine Peso (USD:ARS) 350 256 177 Income Taxes Income tax expense (recovery) Three months ended September 30, Nine months ended September 30, ($ thousands) 2023 2022 Change 2023 2022 Change Candelaria 39,727 (379) 40,106 86,006 78,011 7,995 Caserones 30,122 — 30,122 30,122 — 30,122 Chapada 11,380 7,565 3,815 (9,833) 7,149 (16,982) Eagle 569 1,461 (892) 4,115 17,619 (13,504) Josemaria — (1,181) 1,181 678 (199) 877 Neves-Corvo (2,295) (8,150) 5,855 (11,640) (3,444) (8,196) Zinkgruvan 6,850 11,408 (4,558) 13,115 34,659 (21,544) Other (1,462) 42 (1,504) 1,420 3,180 (1,760) 84,891 10,766 74,125 113,983 136,975 (22,992) Income taxes by classification Three months ended September 30, Nine months ended September 30, ($ thousands) 2023 2022 Change 2023 2022 Change Current income tax expense (recovery) 40,115 (9,994) 50,109 126,829 161,193 (34,364) Deferred income tax expense (recovery) 44,776 20,760 24,016 (12,846) (24,218) 11,372 84,891 10,766 74,125 113,983 136,975 (22,992) Income tax expense in the quarter ended September 30, 2023 was higher than the prior year quarter due to higher taxable earnings, and included $25.7 million deferred tax expense recognized in the quarter following the enactment of a new mining royalty law in Chile that is applicable to Candelaria, and does not apply to Caserones as a result of a tax stability agreement until 2028. The mining royalty law is effective from January 1, 2024 and increases the Company's expected tax rates on future net mining income. Income tax expense in the nine months ended September 30, 2023 was lower than the prior year comparable period due primarily to lower taxable earnings year -to-date. Included in Chapada’s income taxes for the current quarter was a $9.7 million expense and a $12.3 million recovery on a year-to-date basis recorded for deferred tax on revaluation of non-monetary assets and translation of deferred taxes which are denominated in BRL (Q3 2022 – $5.6 million expense, YTD 2022 - $6.3 million recovery). ===== SIDA 27 ===== 13 Mining Operations Production Overview 2023 2022 YTD Q3 Q2 Q1 Total Q4 Q3 Q2 Q1 Copper (t) Candelaria (100%) 110,394 34,275 36,952 39,167 152,042 34,398 37,192 40,949 39,503 Caserones (100%)1 29,821 29,821 — — — — — — — Chapada 32,847 12,286 10,697 9,864 45,739 11,306 13,988 10,345 10,100 Eagle 10,266 3,245 3,881 3,140 15,895 3,081 3,994 4,400 4,420 Neves-Corvo 24,200 9,016 7,610 7,574 31,906 7,160 7,019 7,867 9,860 Zinkgruvan 3,933 1,299 917 1,717 4,077 607 1,737 535 1,198 211,461 89,942 60,057 61,462 249,659 56,552 63,930 64,096 65,081 Zinc (t) Neves-Corvo 77,777 25,807 24,177 27,793 82,435 24,523 22,514 20,647 14,751 Zinkgruvan 56,665 23,967 11,938 20,760 76,503 19,785 17,813 21,265 17,640 134,442 49,774 36,115 48,553 158,938 44,308 40,327 41,912 32,391 Molybdenum (t) Caserones (100%)1 1,096 1,096 — — — — — — — Gold (koz) Candelaria (100%) 65 20 21 24 86 20 21 23 22 Chapada 40 15 13 12 68 16 24 16 12 105 35 34 36 154 36 45 39 34 Nickel (t) Eagle 12,700 4,290 4,686 3,724 17,475 4,096 4,379 4,719 4,281 Lead (t) Neves-Corvo 3,570 1,447 951 1,172 3,306 845 743 925 793 Zinkgruvan 19,866 8,643 3,816 7,407 30,517 7,619 7,046 9,124 6,728 23,436 10,090 4,767 8,579 33,823 8,464 7,789 10,049 7,521 Silver (koz) Candelaria (100%) 1,019 306 366 347 1,595 306 337 457 495 Chapada 185 67 62 56 258 65 75 60 58 Eagle 47 19 11 17 93 20 20 26 27 Neves-Corvo 1,329 486 407 436 1,383 370 323 346 344 Zinkgruvan 1,791 785 374 632 2,621 663 642 739 577 4,371 1,663 1,220 1,488 5,950 1,424 1,397 1,628 1,501 1 Caserones results are from July 13, 2023. ===== SIDA 28 ===== 14 Production Cost and Cash Cost Overview ($ thousand, $/lb) Three months ended September 30, Nine months ended September 30, ($ thousands) 2023 2022 2023 2022 Candelaria Production costs $175,468 $168,602 $548,405 $489,575 Gross cost 2.54 2.31 2.54 2.11 By-product1 (0.35) (0.34) (0.36) (0.31) Cash Cost (Cu, $/lb) 2.19 1.97 2.18 1.80 AISC (Cu, $/lb)2 3.43 3.34 3.55 2.94 Caserones3 Production costs $188,982 — $188,982 — Gross cost 2.42 — 2.42 — By-product (0.82) — (0.82) — Cash Cost (Cu, $/lb) 1.60 — 1.60 — AISC (Cu, $/lb) 2.33 — 2.33 — Chapada Production costs $78,854 $88,665 $227,601 $239,849 Gross cost 3.25 3.23 3.49 3.30 By-product (0.97) (1.31) (1.05) (1.17) Cash Cost (Cu, $/lb) 2.28 1.92 2.44 2.13 AISC (Cu, $/lb) 3.15 2.80 3.44 3.23 Eagle Production cost $52,497 $47,736 $143,681 $142,422 Gross cost 5.72 5.11 5.72 4.87 By-product (3.65) (4.06) (3.63) (4.55) Cash Cost (Ni, $/lb) 2.07 1.05 2.09 0.32 AISC (Ni, $/lb) 4.05 2.77 4.08 2.37 Neves-Corvo Production costs $82,137 $94,572 $243,943 $250,830 Gross cost 4.62 5.29 5.13 4.75 By-product (2.35) (2.60) (2.60) (2.49) Cash Cost (Cu, $/lb) 2.27 2.69 2.53 2.26 AISC (Cu, $/lb) 3.82 3.51 4.14 3.19 Zinkgruvan Production costs $37,183 $25,709 $83,874 $85,963 Gross cost 1.02 1.04 1.04 1.00 By-product (0.74) (0.86) (0.68) (0.69) Cash Cost (Zn, $/lb) 0.28 0.18 0.36 0.31 AISC (Zn, $/lb) 0.56 0.50 0.80 0.64 1. By-product is after related treatment and refining charges. 2. All-in Sustaining Cost ("AISC") is a non -GAAP measure, see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion. 3. Caserones results are from July 13, 2023. ===== SIDA 29 ===== 15 Capital Expenditures1 Three months ended September 30, 2023 2022 ($ thousands) Sustaining Expansionary Capitalized Interest Total Sustaining Expansionary Total Candelaria 86,693 — — 86,693 103,486 — 103,486 Caserones 28,849 — — 28,849 — — — Chapada 16,716 — — 16,716 19,197 — 19,197 Eagle 4,989 — — 4,989 3,062 — 3,062 Josemaria — 52,662 10,532 63,194 — 43,264 43,264 Neves-Corvo 27,357 — — 27,357 15,860 3,502 19,362 Zinkgruvan 12,350 — — 12,350 8,415 — 8,415 Other 3,059 — — 3,059 2,702 — 2,702 180,013 52,662 10,532 243,207 152,722 46,766 199,488 Nine months ended September 30, 2023 2022 ($ thousands) Sustaining Expansionary Capitalized Interest Total Sustaining Expansionary Total Candelaria 300,796 — — 300,796 272,557 — 272,557 Caserones 28,849 — — 28,849 — — — Chapada 52,433 — — 52,433 63,412 — 63,412 Eagle 15,653 — — 15,653 10,445 — 10,445 Josemaria — 234,831 11,011 245,842 — 98,198 98,198 Neves-Corvo 74,551 — — 74,551 49,136 28,325 77,461 Zinkgruvan 42,812 — — 42,812 31,537 — 31,537 Other 8,303 — — 8,303 8,058 — 8,058 523,397 234,831 11,011 769,239 435,145 126,523 561,668 1. Capital expenditures are reported on a cash basis, as presented in the condensed interim consolidated statement of cash fl ows. Sustaining capital expenditure is a supplementary financial measure and expansionary capital expenditure is a non -GAAP measure – see the "Non -GAAP and Other Performance Measures" section of this MD&A for discussion. ===== SIDA 30 ===== 16 Candelaria (Chile) Operating Statistics 2023 2022 (100% Basis) YTD Q3 Q2 Q1 Total Q4 Q3 Q2 Q1 Ore mined (000s tonnes) 18,146 5,350 6,194 6,602 22,666 4,993 6,239 6,362 5,072 Ore milled (000s tonnes) 21,294 7,168 6,924 7,202 26,725 6,593 6,642 6,847 6,643 Grade Copper (%) 0.57 0.52 0.59 0.59 0.62 0.57 0.60 0.64 0.65 Gold (g/t) 0.14 0.12 0.14 0.15 0.14 0.13 0.14 0.14 0.14 Recovery Copper (%) 91.6 91.0 91.1 92.6 92.7 92.7 93.3 93.0 91.9 Gold (%) 69.9 70.6 68.8 70.3 73.9 74.0 74.6 73.8 73.0 Production (contained metal) Copper (tonnes) 110,394 34,275 36,952 39,167 152,042 34,398 37,192 40,949 39,503 Gold (000 oz) 65 20 21 24 86 20 21 23 22 Silver (000 oz) 1,019 306 366 347 1,595 306 337 457 495 Revenue ($000s) 970,576 299,745 290,426 380,405 1,317,223 342,348 255,330 261,999 457,546 Production costs ($000s) 548,405 175,468 184,958 187,979 697,171 207,596 168,602 168,164 152,809 Gross profit ($000s) 223,732 53,909 35,772 134,051 335,793 69,285 11,956 17,924 236,628 Cash cost ($ per pound copper) 2.18 2.19 2.14 2.21 1.96 2.52 1.97 1.86 1.58 AISC ($ per pound copper) 3.55 3.43 3.76 3.44 3.22 4.19 3.34 2.89 2.61 Gross Profit Gross profit for the three months ended September 30, 2023 was higher than the prior year quarter , primarily due to higher copper price s partially offset by higher production costs and unfavorable foreign exchange variance . Year-to-date, gross profit was lower than the prior year period due to higher production costs, lower sales volumes and unfavorable foreign exchange being partially offset by higher copper prices. Production Copper production for the three and nine months ended September 30, 2023 was lower than the prior year quarter and year-to-date period due to lower grades partially offset by higher throughput. Gold production in the current quarter and year-to-date was below the prior year periods, due to lower grades and recoveries, offset partially by higher throughput. Annual copper and gold production guidance ranges for both metals have been revised to 147,000 – 153,000 tonnes of copper and 87,000 - 92,000 ounces of gold. Production Costs and Cash Cost Production costs for the three and nine months ended September 30, 2023 were higher than the prior year quarter , mainly due to higher contractor and maintenance costs and unfavorable foreign exchange. Cash cost per pound for the three and nine months ended September 30, 2023 was impacted by lower sales volumes and unfavorable foreign exchange. Year-to- date cash cost was also impacted by higher contractor and maintenance costs. Annual copper cash cost guidance has increased to $2.00 - $2.20 /lb . All -in sustaining cost (" AISC") for the three months ended September 30, 2023 was higher than the prior year period due to increased cash cost but partially offset by lower sustaining capital spend. The year-to-date AISC was higher due to increased cash cost and higher sustaining capital expenditures. For the nine months ended September 30, 2023, approximately 43,000 oz of gold and 659,000 oz of silver were subject to terms of a streaming agreement from which approximately $425/oz of gold and $4.25/oz of silver will be received. ===== SIDA 31 ===== 17 Caserones (Chile) Operating Statistics 2023 (100% Basis) YTD Q3 Ore mined (000s tonnes) 8,099 8,099 Ore milled (000s tonnes) 7,162 7,162 Ore placed on leach 2,307 2,307 Grade Copper (%) 0.44 0.44 Molybdenum (%) 0.218 0.218 Recovery Copper (%) 83.9 83.9 Molybdenum (%) 70.9 70.9 Production (tonnes) Copper in concentrate 25,695 25,695 Copper cathode 4,126 4,126 Total copper 29,821 29,821 Molybdenum 1,096 1,096 Revenue ($000s) 284,556 284,556 Production costs ($000s) 188,982 188,982 Gross profit ($000s) 57,267 57,267 Cash cost ($ per pound copper) 1.60 1.60 AISC ($ per pound copper) 2.33 2.33 1 Caserones results are from July 13, 2023. Caserones is an open pit copper -molybdenum mine which produces high -quality copper concentrate, copper cathode and molybdenum concentrate. Lundin Mining is the operator after acquiring a 51% interest in Minera Lumina Copper Chile on July 13, 2023, with JX Metals Corporation holding the remaining 49% interest. Results presented are from July 13, 2023. Following the acquisition, a process is underway to identify and realize synergies between the Caserones and Candelaria operations. Cost savings resulting from synergies are estimated to be between $20 million to $30 million annually, in areas including supply chain, logistics and support services. Production In the three months ended September 30, 2023 Caserones produced 34,427 tonnes of copper and 1,321 tonnes of molybdenum on a 100% basis, of which 29,821 tonnes of copper and 1,096 tonnes of molybdenum were produced from the acquisition closing date of July 13. Copper and molybdenum production were higher than planned due to increased throughput and recoveries. The guidance range for copper has increased to 65,000 – 69,000 tonnes for the second half of 2023. The molybdenum remains unchanged from the Company's Management Discussion and Analysis for the three and six months ended June 30, 2023. Production Costs and Cash Cost Production cost was negatively impacted by $32.2 million fair value adjustments related to inventory. The fair value adjustments were recorded to re -value concentrate and in -process inventory on hand at the acquisition date, and were subsequently recognized in production costs as the inventory was sold in the quarter . Copper cash costs in the quarter were better than plan and has resulted in a reduction of the cash cost per pound guidance range to $2.00 - $2.20 /lb driven by higher than anticipated production. Cash cost per pound and AISC benefited from higher by -product credits and higher volume sold. ===== SIDA 32 ===== 18 Chapada (Brazil) Operating Statistics 2023 2022 (100% Basis) YTD Q3 Q2 Q1 Total Q4 Q3 Q2 Q1 Ore mined (000s tonnes) 21,705 8,062 7,522 6,121 26,319 7,801 7,404 4,875 6,239 Ore milled (000s tonnes) 17,015 5,832 5,207 5,976 22,752 5,296 6,345 5,670 5,441 Grade Copper (%) 0.25 0.26 0.26 0.23 0.26 0.25 0.28 0.25 0.23 Gold (g/t) 0.14 0.15 0.14 0.13 0.16 0.16 0.19 0.17 0.13 Recovery Copper (%) 78.2 80.8 80.3 73.3 78.6 83.4 78.8 72.9 79.6 Gold (%) 52.5 55.3 54.1 48.0 56.0 59.5 58.3 50.6 55.3 Production (contained metal) Copper (tonnes) 32,847 12,286 10,697 9,864 45,739 11,306 13,988 10,345 10,100 Gold (000 oz) 40 15 13 12 68 16 24 16 12 Silver (000 oz) 185 67 62 56 258 65 75 60 58 Revenue ($000s) 317,736 111,897 94,721 111,118 477,927 142,328 118,734 57,260 159,605 Production costs ($000s) 227,601 78,854 80,113 68,634 324,096 84,247 88,665 71,507 79,677 Gross profit (loss) ($000s) 50,252 20,230 (381) 30,403 41,420 (22,522) 17,851 (22,720) 68,811 Cash cost ($ per pound copper) 2.44 2.28 2.69 2.37 2.08 1.95 1.92 2.98 1.82 AISC ($ per pound copper) 3.44 3.15 3.80 3.42 3.36 3.73 2.80 5.00 2.56 Gross Profit Gross profit in the current quarter improved over the prior year quarter, largely due to higher copper and gold prices , partially offset by lower sales volumes. Year -to-date, gross profit was lower than the prior year period, due to lower sales volume, higher depreciation expense and higher treatment and refining charges, partially offset by higher copper and gold prices. Production Copper and gold production for the three and nine months ended September 30, 2023 was lower than the prior year comparable periods due to lower throughput and head grades. Annual production guidance for copper has increased to 45,000 – 48,000 tonnes of copper . Gold production guidance remains unchanged. Production Costs and Cash Cost Production costs for the three and nine months ended September 30, 2023 were lower than the prior year comparable periods due primarily to lower production and sales volumes, offset partially by inflationary cost increases in production. Copper cash cost in the current quarter and year -to-date was higher than the prior year comparable periods due to lower by-product credits, lower volume sold, and unfavorable FX variances. Annual copper cash cost guidance remains unchanged. AISC for the three and nine months ended September 30, 2023 were higher than the prior year comparable periods due to higher cash cost, partially offset by lower sustaining capital expenditure. Projects The Company is continuing to evaluate options for long -term mine and plant expansion. Study work is being conducted following comprehensive exploration efforts focused on near-mine targets since acquisition. The results will be incorporated in any future expansionary or optimization plans. During the third quarter, approximately 11,713 metres of exploration drilling were completed, primarily on Saúva and near-mine area targets. ===== SIDA 33 ===== 19 Eagle (USA) Operating Statistics 2023 2022 (100% Basis) YTD Q3 Q2 Q1 Total Q4 Q3 Q2 Q1 Ore mined (000s tonnes) 537 192 189 156 718 165 190 181 182 Ore milled (000s tonnes) 532 190 181 161 718 170 187 182 179 Grade Nickel (%) 2.7 2.6 2.9 2.6 2.8 2.7 2.7 3.0 2.8 Copper (%) 2.0 1.8 2.2 2.0 2.3 1.9 2.2 2.5 2.5 Recovery Nickel (%) 87.8 86.2 88.8 88.5 86.6 88.6 85.5 87.3 85.3 Copper (%) 96.9 96.4 97.0 97.2 97.2 96.8 96.5 97.7 97.6 Production (contained metal) Nickel (tonnes) 12,700 4,290 4,686 3,724 17,475 4,096 4,379 4,719 4,281 Copper (tonnes) 10,266 3,245 3,881 3,140 15,895 3,081 3,994 4,400 4,420 Revenue ($000s) 277,175 102,505 105,250 69,420 520,472 157,060 106,715 106,828 149,869 Production costs ($000s) 143,681 52,497 45,735 45,449 193,003 50,581 47,736 55,128 39,558 Gross profit ($000s) 95,347 35,682 46,845 12,820 247,946 87,359 37,329 29,796 93,462 Cash cost ($ per pound nickel) 2.09 2.07 1.88 2.43 0.79 2.40 1.05 0.90 (1.25) AISC ($ per pound nickel) 4.08 4.05 3.34 5.16 3.01 5.23 2.77 2.93 1.19 Gross Profit Gross profit for the three and nine months ended September 30, 2023 was lower than the prior year comparable periods as a result of higher production costs. The year-to-date period was also impacted by decreases in nickel prices and lower sales volumes. Production Nickel and copper production in the current quarter and year -to-date were lower than the prior year comparable periods, due to lower grades. Year-to-date zinc and copper productions were also impacted by lower throughput. Annual production guidance for nickel has increased to 15,000 – 17,000 tonnes of nickel. Copper guidance remains unchanged. An extension of the mine life to mid-2029 is currently planned. Production Costs and Cash Cost Production costs in the three and nine months ended September 30, 2023 were higher than the prior year comparable periods attributed mainly to increased costs resulting from inflationary contractual increases. Nickel cash cost in the quarter and year-to-date was higher than the prior year periods due to lower copper by -product credits, and higher mine and mill costs. The year-to-date cash cost was also impacted by lower sales volumes. Annual cash cost guidance has been reduced to $2.00 - $2.20/lb of nickel. AISC in the third quarter and year-to-date were higher than the prior year periods, due to higher cash cost and higher sustaining capital expenditures. ===== SIDA 34 ===== 20 Neves-Corvo (Portugal) Operating Statistics 2023 2022 (100% Basis) YTD Q3 Q2 Q1 Total Q4 Q3 Q2 Q1 Ore mined, copper (000s tonnes) 1,914 689 622 603 2,501 611 598 610 682 Ore mined, zinc (000s tonnes) 1,440 459 470 511 1,632 462 447 426 297 Ore milled, copper (000s tonnes) 1,906 674 628 604 2,499 607 596 606 690 Ore milled, zinc (000s tonnes) 1,416 441 465 510 1,633 465 449 420 299 Grade Copper (%) 1.7 1.8 1.6 1.6 1.7 1.6 1.6 1.7 1.8 Zinc (%) 6.9 7.4 6.6 6.7 6.9 6.9 6.9 6.9 7.0 Recovery Copper (%) 76.9 76.1 77.0 77.7 76.1 75.1 73.0 77.0 78.7 Zinc (%) 77.2 76.1 76.8 78.7 70.2 74.3 70.3 68.4 66.1 Production (contained metal) Copper (tonnes) 24,200 9,016 7,610 7,574 31,906 7,160 7,019 7,867 9,860 Zinc (tonnes) 77,777 25,807 24,177 27,793 82,435 24,523 22,514 20,647 14,751 Lead (tonnes) 3,570 1,447 951 1,172 3,306 845 743 925 793 Silver (000 oz) 1,329 486 407 436 1,383 370 323 346 344 Revenue ($000s) 309,219 111,202 68,614 129,403 433,486 102,516 102,865 93,538 134,567 Production costs ($000s) 243,943 82,137 76,080 85,726 329,232 78,402 94,572 77,788 78,470 Gross (loss) profit ($000s) (23,876) (2,288) (35,185) 13,597 2,447 (7,570) (17,006) (8,229) 35,252 Cash cost ($ per pound copper) 2.53 2.27 3.99 1.69 2.27 2.32 2.69 2.39 1.70 AISC ($ per pound copper) 4.14 3.82 5.73 3.29 3.40 4.22 3.51 3.14 2.92 Gross (Loss) Profit Gross loss in the quarter improved from the prior year quarter due to lower production costs. Year -to-date, gross loss was 23.9 million compared to the prior year period gross profit of $10.0 million, as a result of lower realized zinc prices and higher treatment and refining charges, partially offset by lower production costs. Production Copper production for the quarter ended September 30, 2023, was higher than the prior year comparable period due to higher throughput, grades and recoveries. Copper production in the nine months ended September 30, 2023 was consistent with the prior year period. Zinc production in the quarter was higher than the prior year period, attributable to improved recoveries and grades . Year -to-date zinc production benefitted from higher throughput and higher recoveries. Annual production guidance for copper has been lowered slightly to 33,000 – 36,000 tonnes and zinc has been increased to 103,000 – 110,000 tonnes. Production Costs and Cash Cost Production costs for the three and nine months ended September 30, 2023, were lower than the prior year periods due to lower input costs , in particular electricity rates, partially offset by unfavourable foreign exchange as well as higher sales volumes. Copper cash cost per pound in the current quarter improved from the prior year comparable period due to lower input costs, partially offset by lower zinc by-product credits and unfavourable foreign exchange. Year-to-date, cash cost per pound was higher than the prior year period due to lower copper sales volumes and unfavorable foreign exchange, partially offset by lower input costs. Annual copper cash cost guidance remains unchanged. AISC for the three and nine months ended September 30, 2023 were higher than the prior year quarter due to higher sustaining capital expenditures. However, capital expenditure for the year remains within plan. ===== SIDA 35 ===== 21 Zinkgruvan (Sweden) Operating Statistics 2023 2022 (100% Basis) YTD Q3 Q2 Q1 Total Q4 Q3 Q2 Q1 Ore mined, zinc (000s tonnes) 865 287 268 310 1,209 325 260 298 326 Ore mined, copper (000s tonnes) 171 65 51 55 192 48 61 38 45 Ore milled, zinc (000s tonnes) 852 326 211 315 1,234 309 293 327 305 Ore milled, copper (000s tonnes) 170 58 34 78 225 26 84 27 88 Grade Zinc (%) 7.5 8.2 6.6 7.4 7.0 7.3 6.9 7.3 6.5 Lead (%) 3.0 3.5 2.4 2.9 3.0 3.0 2.9 3.3 2.7 Copper (%) 2.6 2.5 3.1 2.4 2.1 2.6 2.4 2.3 1.6 Recovery Zinc (%) 88.7 90.0 86.3 88.7 88.4 88.3 87.5 89.1 88.7 Lead (%) 78.1 75.7 76.2 82.1 82.4 82.2 82.5 83.1 81.7 Copper (%) 88.8 88.7 86.1 90.5 87.1 89.0 86.1 87.7 87.3 Production (contained metal) Zinc (tonnes) 56,665 23,967 11,938 20,760 76,503 19,785 17,813 21,265 17,640 Lead (tonnes) 19,866 8,643 3,816 7,407 30,517 7,619 7,046 9,124 6,728 Copper (tonnes) 3,933 1,299 917 1,717 4,077 607 1,737 535 1,198 Silver (000 oz) 1,791 785 374 632 2,621 663 642 739 577 Revenue ($000s) 172,808 82,290 29,520 60,998 292,120 67,178 64,854 70,596 89,492 Production costs ($000s) 83,874 37,183 17,786 28,905 115,553 29,590 25,709 29,066 31,188 Gross profit ($000s) 63,554 32,727 6,821 24,006 139,828 29,800 33,703 30,500 45,825 Cash cost ($ per pound) 0.36 0.28 0.24 0.54 0.32 0.32 0.18 0.44 0.27 AISC ($ per pound) 0.80 0.56 1.06 0.97 0.68 0.77 0.50 0.82 0.57 Gross Profit Gross profit in the current quarter was comparable to the prior year period. Gross profit for the nine months ended September 30, 2023 was lower than the prior year periods due to lower realized zinc prices. Production Production of zinc and lead in the quarter ended September 30, 2023 was higher than the prior year period primarily due to higher throughput and grades. Zinc production in the nine months ended September 30, 2023 was consistent with the prior year comparative period. Year- to- date, lead production was lower than the prior year period primarily due to lower throughput as a result of the installation of a zinc sequential flotation system during the second quarter which limited mill availability, as well as lower recoveries. Copper production in the current quarter was lower than the prior year period due to lower throughput from the mill shut down. Year-to-date copper production was higher than the prior year period primarily due to higher grades. Annual zinc production guidance has been revised to 78,000 – 82,000 tonnes. Copper guidance remains unchanged. Production Costs and Cash Cost Production costs for the quarter were higher than the prior year comparable period primarily due to higher sales volumes. Year-to-date production costs were consistent with the prior year comparative period. Zinc cash cost per pound for the quarter was higher than the prior year period mainly due to lower by -product credits and higher treatment and refining charges. On a year-to-date basis, zinc cash cost was higher than the prior year mainly due to higher treatment and refining charges. Annual cash cost guidance remains unchanged. AISC for the three and nine months ended September 30, 2023 were higher than the prior year due to higher cash cost and higher sustaining capital expenditures. ===== SIDA 36 ===== 22 Josemaria Project (Argentina) Project Development The Company continues to de -risk the Josemaria Project in several areas including evaluating inflation and currency devaluation impacts, developing optimization studies to enhance mining and production plans, plant throughput, concentrate transportation, infrastructure, further water drilling, modeling and studies, and recommencement of exploration drilling. At Josemaria, a water program is currently ongoing to confirm and identify water sources, providing data to update models and incorporate into sectoral permits. Exploration drilling commenced in late October on several targets near the Josemaria orebody. The grinding mills and gearless mill drives ("GMDs") started to arrive in Argentina in July and are being moved to a San Juan storage facility for care and maintenance. Deliveries will continue through the remainder of 2023 and into the first quarter of 2024. Work continues on permitting with the technical review of the tailings dam design, preparation of access road and powerline EIA’s as well as minor permits and EIA’s for road maintenance. Discussions began with the newly elected San Juan province governor on the infrastructure agreements for the royalty offset funding of the access road and the power line capital costs. These agreements are expected to be signed after the change in the provincial government which will occur on December 10, 2023. Additionally, the project team is performing a series of studies to continue de -risking the project and adding value to Josemaria as well as advancing financing and execution readiness activities. Some of these studies will culminate during the fourth quarter of 2023 and the remainder will be done in 2024 covering mine optimization, increasing plant throughput, concentrate shipping infrastructure review , execution plan update and commercial strategies. During the current quarter, the Company spent $37.7 million , inclusive of foreign exchange and trading gains on debt and equity investments of $15.0 million (Q3 2022 - $67.7 million). Capital expenditures during the current quarter were $52.7 million (Q3 2022 - $43.3 million). On a year -to-date basis the Company spent $178.8 million in project development costs. Annual capital guidance of $350.0 million for 2023 remains unchanged from previously reported. Josemaria Mineral Resources and Mineral Reserves remain unchanged since the 2020 estimates. ===== SIDA 37 ===== 23 Metal Prices, LME Inventories and Smelter Treatment and Refining Charges Overall, copper , molybdenum and gold prices have increased in the current quarter compared to the prior year quarter . On a year-to-date basis metal prices for all metals except for molybdenum and gold decreased over the prior year comparative period. The average metal prices for copper, zinc, gold, and nickel over the third quarter of 2023 were all lower than the average prices for the second quarter by 1%, 4%, 2% and 9% respectively. The average metal price for molybdenum over the third quarter was 12% higher than the average metal price in the second quarter of 2023. Three months ended September 30, Nine months ended September 30, (Average LME Price) 2023 2022 Change 2023 2022 Change Copper US$/pound 3.79 3.51 8 % 3.89 4.11 -5 % US$/tonne 8,356 7,745 8,585 9,064 Zinc US$/pound 1.10 1.48 -26 % 1.22 1.65 -26 % US$/tonne 2,428 3,271 2,696 3,638 Molybdenum US$/pound 23.76 16.10 48 % 26.05 17.83 46 % US$/tonne 52,392 35,497 57,437 39,318 Gold US$/ounce 1,928 1,729 12 % 1,930 1,824 6 % Nickel US$/pound 9.23 10.01 -8 % 10.38 11.66 -11 % US$/tonne 20,344 22,063 22,890 25,709 LME inventories for copper , zinc and nickel all increased during the third quarter of 2023 by 130%, 27% and 9% respectively. During the third quarter of 2023 the treatment charges (“TC”) and refining charges (“RC”) in the spot market for copper concentrates between miners and commodity traders decreased slightly from an average spot TC during July of $83 per dmt of concentrate and a spot RC of $0.083 per lb of payable copper to a spot TC of $80 per dmt of concentrate and a spot RC of $0.080 per lb of payable copper during September. Also, the spot terms at which Chinese copper smelters were prepared to buy also decreased through the quarter from a TC of $93 per dmt of concentrate and a RC of $0.093 per payable lb of copper over July to a TC of $91 per dmt of concentrate and a RC of $0.091 per payable lb of copper in September. The terms for annual contracts for copper concentrates for 2023 were reached in December 2022 at a TC of $88 per dmt with a RC of $0.088 per payable lb of copper . The spot TC, delivered China, for zinc concentrates during the third quarter of 2023 decreased from $200 per dmt, flat, in September to $138 per dmt, flat, in September. The 2023 annual terms for zinc concentrates were settled at $274 per dmt of concentrate, with an upscale price escalator of 6% from a price basis of $3,000 per dmt zinc without de-escalator. The Company’s nickel concentrate production from Eagle is sold under several long -term contracts at terms in -line with market conditions. Gold production from Chapada and Candelaria is sold at terms in-line with market conditions for copper concentrates. ===== SIDA 38 ===== 24 Liquidity and Capital Resources As at September 30, 2023, the Company had cash and cash equivalents of $357.3 million and a net debt balance of $1,158.9 million. Cash generated from operations for the three months ended September 30, 2023 amounted to $303.8 million and was $267.5 million higher than the prior year quarter primarily due to higher gross profit before depreciation mainly attributable to the acquisition of Caserones, lower general exploration and business development costs and higher non -cash working capital, partially offset by higher income taxes and finance costs. On a year -to-date basis, cash generated from operations was $710.5 million and was $9.5 million lower than the prior year comparable period primarily as a result of lower gross profit before depreciation partially offset by lower income taxes. Cash used in investing activities for the three and nine months ended September 30, 2023 amounted to $908.8 million and $1,432.3 million respectively. Cash used in investing activities during these periods were higher than the prior year primarily due to the acquisition of Caserones and investments in mineral properties, plant and equipment. During the current quarter, the Company generated cash from financing activities of $773.2 million compared to cash used in financing activities in the prior year quarter . On a year -to-date basis, there was cash of $892.6 million from financing activities compared to $339.4 million of cash used in the prior year comparable period. Changes for the quarter and year-to- date compared to the prior year periods were driven by proceeds from the Term Loan related to financing for the Caserones mine. Capital Resources The Company continues to expect to be able to fund all its contractual commitments with its operating cash flow, cash on hand and available capital resources. As at September 30, 2023, the Company had $1,233.4 million of debt and $278.0 million of lease liabilities outstanding. As at September 30, 2023, the Company has a revolving Credit Facility of $1,750.0 million with $164.0 million outs tanding (December 31, 2022 - $13.7 million). The Credit Facility bears interest on drawn funds at rates of Term Secured Overnight Financing Rate ("Term SOFR") + Credit Spread Adjustment ("CSA") of 0.10%+ 1.45% to Term SOFR + 0.10% + 2.50% depending on the Company’s net leverage ratio. The Credit Facility is subject to customary covenants. On April 26, 2023, the Credit Facility was amended extending the term by one year to April 2028. In July 2023, the Company obtained a term loan of a principal amount of $800.0 million with an additional $400.0 million accordion option maturing in July 2026. The term loan bears interest at an annual rate equal to Term SOFR + CSA + an applicable margin of 1.60% to 2.65%, depending on the Company’s net leverage ratio. Principal is payable at maturity. The Term Loan is unsecured, save and except for a charge over certain assets in the USA, and has similar covenants to the Company’s existing $1,750.0 million revolving credit facility. The Company used proceeds from the Term Loan to refinance the drawdown under the Company’s revolving credit facility which was used to fund the upfront cash consideration of the Caserones acquisition. As at September 30, 2023 , the Company also has commercial paper programs of which $106.0 million (€115.0 million) (December 31, 2022 - $26.7 million) were drawn. As at September 30, 2023 , certain of the Company's subsidiaries had outstanding unsecured term loans totalling $169.3 million (December 31, 2022 - $127.4 million). During the three and nine months ended September 30, 2023 , no shares were purchased under the Company's Normal Course Issuer Bid (Q3 2022 -7.7 million shares, $42.1 million consideration and YTD 2022 - 8.9 million shares, $50.2 million consideration). Contractual Obligations, Commitments and Contingencies The Company has contractual obligations and capital commitments as described in Note 22 “Commitments and Contingencies” in the Company’s Condensed Interim Consolidated Financial Statements. From time to time, the Company may also be involved in legal proceedings that arise in the ordinary course of its business. ===== SIDA 39 ===== 25 Financial Instruments The Company has entered into derivative contracts consisting of foreign currency forward and option contracts as well as diesel swap forward contracts. The option contracts consist of put and call contracts in a collar structure. The Company does not currently utilize financial instruments in hedging metal price or interest rate exposure. For a detailed discussion of the Company’s financial instruments refer to Note 21 of the Company’s Condensed Interim Consolidated Financial Statements. Sensitivities Revenue, cost of goods sold and capital expenditures are affected by certain external factors including fluctuations in metal prices and changes in exchange rates between the €, the SEK, the CLP , the BRL, the ARS and the $. Foreign exchange changes may be limited by the cash flow hedges previously described. Market and Liquidity Risks and Sensitivities Revenue and cost of goods sold are affected by certain external factors including fluctuations in metal prices and changes in exchange rates between the €, the SEK, the CLP , the BRL and the $. Metal Prices The following table illustrates the sensitivity of the Company's risk on final settlement of its provisionally priced revenues: Metal Payable Metal Provisional price on September 30, 2023 Change Effect on Revenue ($millions) Copper 120,071 t $3.75/lb +/- 10 % +/- $99.3 Zinc 30,946 t $1.20/lb +/- 10 % +/- $8.2 Molybdenum 1,150 t $20.27/lb +/- 10 % +/- $5.1 Gold 27 koz $1,856/oz +/- 10 % +/- $5.0 Nickel 1,404 t $8.40/lb +/- 10 % +/- $2.6 Related Party Transactions The Company enters into related party transactions that are in the normal course of business and on an arm’s length basis. Related party disclosures can be found in Note 24 of the Company’s September 30, 2023 Condensed Interim Consolidated Financial Statements. Changes in Accounting Policies and Critical Accounting Estimates and Judgments The Company describes its significant accounting policies as well as any changes in accounting policies, including amended policies as a result of the Caserones acquisition, in Note 2 “Basis of Presentation and Summary of Significant Accounting Policies” of the September 30, 2023 Condensed Interim Consolidated Financial Statements. ===== SIDA 40 ===== 26 Non-GAAP and Other Performance Measures The Company uses certain performance measures in its analysis. These performance measures have no meaning within generally accepted accounting principles under IFRS and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. This data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The following are non-GAAP measures that the Company uses as key performance indicators. Net Debt Net debt is a performance measure used by the Company to assess its financial position. Management believes that in addition to conventional performance measures prepared in accordance with IFRS, net debt is a useful indicator to some investors to evaluate the Company’s financial position. Net debt is defined as debt and lease liabilities, excluding deferred financing fees, net of cash and cash equivalents and can be reconciled as follows: ($thousands) September 30, 2023 December 31, 2022 Debt and lease liabilities (1,130,754) (27,179) Current portion of total debt and lease liabilities (380,645) (170,149) Less deferred financing fees (netted in above) (4,810) (4,926) (1,516,209) (202,254) Cash and cash equivalents 357,337 191,387 Net debt (1,158,872) (10,867) Adjusted Operating Cash Flow and Adjusted Operating Cash Flow per Share Adjusted operating cash flow per share is a performance measure used by the Company to assess its ability to generate cash from its operations. Adjusted operating cash flow is defined as cash provided by operating activities, excluding changes in non-cash working capital items. The Company believes adjusted operating cash flow per share is a relevant measure to some investors, as it removes the impact of working capital, which can experience variability period -to-period. Adjusted operating cash flow per share can be reconciled to the Company's cash provided by operating activities as follows: Three months ended September 30, Nine months ended September 30, ($thousands, except share and per share amounts) 2023 2022 2023 2022 Cash provided by operating activities 303,812 36,331 710,531 719,999 Changes in non-cash working capital items 12,655 145,006 (48,360) (16,111) Adjusted operating cash flow 316,467 181,337 662,171 703,888 Basic weighted average number of shares outstanding 773,147,920 775,563,527 772,214,160 759,726,506 Adjusted operating cash flow per share 0.41 0.23 0.86 0.93 Free Cash Flow from Operations and Free Cash Flow The Company believes free cash flow from operations and free cash flow are relevant measures of the Company's financial performance. Free cash flow from operations is indicative of the Company’s ability to generate cash from operations, after consideration of required sustaining capital expenditures necessary to maintain operations. Free cash flow is a relevant measure for some investors, as it is indicative of the Company’s available cash generated. Free cash flow from operations is defined as cash flow provided by operating activities, excluding exploration and project investigation costs and less sustaining capital expenditures. Free cash flow is defined as free cash flow from operations less expansionary capex and exploration and project investigation costs. The Company has redefined free cash flow so that it encompasses all capital expenditures, including both sustaining and expansionary, to more fully represent available cash generation. Free cash flow from operations and free cash flow can be reconciled as follows: ===== SIDA 41 ===== 27 Three months ended September 30, Nine months ended September 30, ($thousands) 2023 2022 2023 2022 Cash provided by operating activities 303,812 36,331 710,531 719,999 General exploration and business development 12,734 72,446 41,192 132,259 Sustaining capital expenditures (180,013) (152,722) (523,397) (435,145) Free cash flow from operations 136,533 (43,945) 228,326 417,113 General exploration and business development (12,734) (72,446) (41,192) (132,259) Expansionary capital expenditures (52,662) (46,766) (234,831) (126,523) Free cash flow 71,137 (163,157) (47,697) 158,331 Adjusted EBITDA, Adjusted Earnings and Adjusted EPS Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), adjusted earnings and adjusted EPS are non -GAAP measures. These measures are presented to provide additional information to investors and other stakeholders on the Company’s underlying operational performance. The Company believes certain investors find this information useful to evaluate the Company’s ability to generate cash flow from the Company’s core operations. Certain items have been excluded from adjusted EBITDA and adjusted earnings such as unrealized foreign exchange and revaluation gains and losses, impairment charges and reversals, gain or loss on debt settlement, interest on tax refunds and assessments, litigations, settlements and other items that do not represent the Company’s current and on-going operations and are not necessarily indicative of future operating results. Adjusted EBITDA can be reconciled to the Company's Condensed Interim Consolidated Statement of Earnings as follows: Three months ended September 30, Nine months ended September 30, ($thousands) 2023 2022 2023 2022 Net earnings (loss) 21,883 (11,245) 248,496 318,238 Add back: Depreciation, depletion and amortization 179,788 140,161 430,540 412,040 Finance income and costs 36,212 15,240 67,808 47,521 Income taxes 84,891 10,766 113,983 136,975 322,774 154,922 860,827 914,774 Unrealized foreign exchange 9,096 14,426 (1,545) 25,000 Revaluation loss on derivatives1 47,874 — 43,407 — Sinkhole costs (1,247) 7,789 15,235 7,789 Revaluation loss (gain) on marketable securities 3,449 (554) (453) 1,712 Caserones inventory fair value adjustment 32,185 — 32,185 — Unrealized foreign exchange and trading loss on equity investments — 18,848 — — Write-down of fixed assets — 3,617 — 3,619 Gain on disposal of subsidiary — — (5,718) (16,828) Other 990 3,325 (120) 2,724 Total adjustments - EBITDA 92,347 47,451 82,991 24,016 Adjusted EBITDA1 415,121 202,373 943,818 938,790 1 Q2 2023 amounts have been adjusted from those presented in the Company's MD&A for the three and six months ended June 30, 202 3. ===== SIDA 42 ===== 28 Adjusted earnings and adjusted EPS can be reconciled to the Company's Condensed Interim Consolidated Statement of Earnings as follows: Three months ended September 30, Nine months ended September 30, ($thousands, except share and per share amounts) 2023 2022 2023 2022 Net (loss) earnings attributable to Lundin Mining shareholders (2,964) (11,212) 202,765 281,289 Add back: Total adjustments - EBITDA 92,347 47,451 82,991 24,016 Tax effect on adjustments (20,114) (12,012) (23,295) (11,323) Deferred tax expense due to change in tax rate 25,700 — 25,700 — Deferred tax arising from foreign exchange translation 9,669 5,599 (12,327) (6,264) Non-controlling interest on adjustments (19,049) 1,070 (18,980) 1,197 Total adjustments 88,552 42,108 54,089 7,626 Adjusted earnings1 85,588 30,896 256,854 288,915 Basic weighted average number of shares outstanding 773,147,920 775,563,527 772,214,160 759,726,506 Net (loss) earnings attributable to Lundin Mining shareholders — (0.01) 0.26 0.37 Total adjustments 0.11 0.05 0.07 0.01 Adjusted EPS1 0.11 0.04 0.33 0.38 1 Q2 2023 amounts have been adjusted from those presented in the Company's MD&A for the three and six months ended June 30, 2023. Realized Price per Pound Realized price per pound and price per ounce are non -GAAP ratios that are calculated using the non -GAAP financial measures of current period sales and prior period adjustments. Realized prices exclude the effects of the stream cash effects as well as TC/RCs. Management believes that measuring these prices enables investors to better understand performance based on the realized metal sales in the current and prior periods. Capital Expenditures Identifying capital expenditures, on a cash basis, using a sustaining or expansionary classification provides investors with a better understanding of costs required to maintain existing operations, and costs required for future growth of existing or new assets. • Sustaining capital expenditures – Expenditures which maintain existing operations and sustain production levels. • Expansionary capital expenditures – Expenditures which increase current or future production capacity, cash flow or earnings potential. Where an expenditure both maintains and expands current operations, classification would be based on the primary decision for which the expenditure is being made. Expansionary capital expenditures are reported excluding capitalized interest and therefore is a non-GAAP measure. Sustaining capital expenditure is a supplementary financial measure. Cash Cost per Pound Copper, zinc and nickel cash costs per pound are key performance measures that management uses to monitor performance. Management uses these statistics to assess how well the Company’s producing mines are performing and to assess overall efficiency and effectiveness of the mining operations. Cash cost is a non -GAAP measure and, although it is calculated according to accepted industry practice, the Company’s disclosed cash costs may not be directly comparable to other base metal producers. ===== SIDA 43 ===== 29 • Cash cost per pound, gross – Total cash costs directly attributable to mining operations, excluding any allocation of upfront streaming proceeds or capital expenditures for deferred stripping, are divided by the sales volume of the primary metal to arrive at gross cash cost per pound. As this measure is not impacted by fluctuations in sales of by - product metals, it is generally more consistent across periods. • Cash cost per pound, net of by -products – Credits for by -products sales are deducted from total cash costs directly attributable to mining operations. By-product revenue is adjusted for the terms of streaming agreements, but excludes any deferred revenue from the allocation of upfront cash received. The net cash costs are divided by the sales volume of the primary metal to arrive at net cash cost per pound. The inclusion of by -product credits provides a broader economic measurement, incorporating the benefit of other metals extracted in the production of the primary metal. All-in Sustaining Cost (“AISC”) per Pound AISC per pound is an extension of the cash cost per pound measure discussed above and is also a key performance measure that management uses to monitor performance. Management uses this measure to analyze margins achieved on existing assets while sustaining and maintaining production at current levels. Expansionary capital and certain exploration costs are excluded from this definition 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 from the all -in sustaining cost measure, 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. ===== SIDA 44 ===== 30 Cash and All-in Sustaining Costs can be reconciled to the Company's production costs as follows: Three months ended September 30, 2023 Operations Candelaria Caserones Chapada Eagle Neves- Corvo Zinkgruvan ($000s, unless otherwise noted) (Cu) (Cu) (Cu) (Ni) (Cu) (Zn) Total Sales volumes: Tonnes 33,668 30,385 11,445 3,640 8,799 22,042 Pounds (000s) 74,225 66,987 25,232 8,025 19,398 48,594 Production costs 615,109 Less: Royalties and other (21,662) Inventory fair value adjustment1 (32,185) 561,262 Deduct: By-product credits (216,150) Add: Treatment and refining charges 56,261 Cash cost 162,672 106,866 57,501 16,598 44,043 13,693 401,373 Cash cost per pound ($/lb) 2.19 1.60 2.28 2.07 2.27 0.28 Add: Sustaining capital expenditure 86,693 28,849 16,716 4,989 27,357 12,350 Royalties — 7,550 2,142 7,385 1,055 — Reclamation and other closure accretion and depreciation 2,349 1,133 2,141 2,742 1,462 1,011 Leases and other 2,841 11,531 865 797 131 86 All-in sustaining cost 254,555 155,929 79,365 32,511 74,048 27,140 AISC per pound ($/lb) 3.43 2.33 3.15 4.05 3.82 0.56 ($000s, unless otherwise noted) 2023 Annual Guidance Cash cost 670,000 290,000 240,000 60,000 160,000 70,000 Cash cost per pound($/lb) 2.00 – 2.20 2.00 – 2.20 2.35 – 2.55 2.00 – 2.20 2.10 – 2.30 0.45 – 0.50 Three months ended September 30, 2022 Operations Candelaria Chapada Eagle Neves- Corvo Zinkgruvan ($000s, unless otherwise noted) (Cu) (Cu) (Ni) (Cu) (Zn) Total Sales volumes: Tonnes 35,587 12,817 3,715 8,574 13,722 Pounds (000s) 78,456 28,257 8,190 18,903 30,252 Production costs 425,814 Less: Royalties and other (8,593) 417,221 Deduct: By-product credits (172,179) Add: Treatment and refining charges 28,829 Cash cost 154,633 54,147 8,637 50,888 5,566 273,871 Cash cost per pound ($/lb) 1.97 1.92 1.05 2.69 0.18 Add: Sustaining capital expenditure 103,486 19,197 3,062 15,860 8,415 Royalties — 3,055 5,705 (1,213) — Reclamation and other closure accretion and depreciation 1,951 1,784 4,809 630 962 Leases and other 2,327 1,017 484 173 149 All-in sustaining cost 262,397 79,201 22,697 66,338 15,092 AISC per pound ($/lb) 3.34 2.80 2.77 3.51 0.50 1Production cost at Caserones in Q3 2023 was negatively impacted by $32.2 million fair value adjustments related to inventory. The fair value adjustments were recorded to re-value concentrate and in -process inventory on hand at the acquisition date, and were subsequently recognized in production costs as the inventory was sold in the quarter. ===== SIDA 45 ===== 31 Cash and All-in Sustaining Costs can be reconciled to the Company's production costs as follows: Nine months ended September 30, 2023 Operations Candelaria Caserones Chapada Eagle Neves- Corvo Zinkgruvan ($000s, unless otherwise noted) (Cu) (Cu) (Cu) (Ni) (Cu) (Zn) Total Sales volumes: Tonnes 105,585 30,385 30,681 10,234 23,000 48,028 Pounds (000s) 232,775 66,987 67,640 22,562 50,706 105,883 Production costs 1,438,071 Less: Royalties and other (41,717) Inventory fair value adjustment1 (32,185) 1,364,169 Deduct: By-product credits (495,751) Add: Treatment and refining charges 125,390 Cash cost 507,884 106,866 165,170 47,228 128,206 38,454 993,808 Cash cost per pound ($/lb) 2.18 1.60 2.44 2.09 2.53 0.36 Add: Sustaining capital expenditure 300,796 28,849 52,433 15,653 74,551 42,812 Royalties — 7,550 6,394 17,991 2,868 — Reclamation and other closure accretion and depreciation 7,100 1,133 5,789 8,711 4,082 2,811 Leases and other 9,638 11,531 3,002 2,441 437 288 All-in sustaining cost 825,418 155,929 232,788 92,024 210,144 84,365 AISC per pound ($/lb) 3.55 2.33 3.44 4.08 4.14 0.80 Nine months ended September 30, 2022 Operations Candelaria Chapada Eagle Neves- Corvo Zinkgruvan ($000s, unless otherwise noted) (Cu) (Cu) (Ni) (Cu) (Zn) Total Sales volumes: Tonnes 113,690 33,526 11,188 25,241 48,049 Pounds (000s) 250,643 73,912 24,665 55,647 105,930 Production costs 1,210,431 Less: Royalties and other (38,121) 1,172,310 Deduct: By-product credits (487,914) Add: Treatment and refining charges 90,944 Cash cost 450,858 157,456 7,999 125,889 33,138 775,340 Cash cost per pound ($/lb) 1.80 2.13 0.32 2.26 0.31 Add: Sustaining capital expenditure 272,557 63,412 10,445 49,136 31,537 Royalties — 9,161 24,129 984 — Reclamation and other closure accretion and depreciation 6,002 5,533 14,109 1,081 3,035 Leases and other 6,953 3,056 1,766 569 547 All-in sustaining cost 736,370 238,618 58,448 177,659 68,257 AISC per pound ($/lb) 2.94 3.23 2.37 3.19 0.64 1Production cost at Caserones in Q3 2023 was negatively impacted by $32.2 million fair value adjustments related to inventory. The fair value adjustments were recorded to re-value concentrate and in -process inventory on hand at the acquisition date, and were subsequently recognized in production costs as the inventory was sold in the quarter. ===== SIDA 46 ===== 32 Managing Risks 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, 2022 and the “Cautionary Statement on Forward -Looking Information” of this MD&A. Management’s Report on Internal Controls Disclosure controls and procedures (“DCP”) DCP 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 Chief Executive Officer and the Chief Financial Officer, is responsible for the design and operation of DCP . Internal control over financial reporting (“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. Control Framework 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”). Limitations on scope of design On July 13, 2023, the Company acquired 51% of the issued and outstanding equity of Lumina Copper . However , the Company has not had sufficient time during the third quarter of 2023 to fully assess the design of DCP and ICFR inherent in the organization and accordingly has limited the scope of the above assessment on the design of DCP and ICFR to exclude this entity, which holds the Caserones mine. Changes in ICFR There have been no changes in the Company’s ICFR during the quarter ended September 30, 2023 that have materially affected, or are reasonably likely to materially affect, the Company’s financial reporting. Outstanding Share Data As at November 1, 2023 , the Company has 773,418,445 common shares issued and outstanding, and 6,569,234 stock options and 1,824,378 share units outstanding under the Company's plans. Other Information Additional information regarding the Company is included in the Company’s AIF which is filed with the Canadian securities regulators. A copy of the Company’s AIF can be obtained on SEDAR+ (www.sedarplus.ca) or on the Company’s website (www.lundinmining.com). ===== SIDA 47 ===== Condensed Interim Consolidated Financial Statements of Lundin Mining Corporation September 30, 2023 (Unaudited) ===== SIDA 48 ===== - 1 - LUNDIN MINING CORPORATION CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS As at (Unaudited - in thousands of US dollars) September 30, 2023 December 31, 2022 ASSETS Cash and cash equivalents (Note 4) $ 357,337 $ 191,387 Trade and other receivables (Note 5) 680,658 576,178 Income taxes receivable 64,398 72,402 Inventories (Note 6) 618,858 296,710 Current portion of derivative assets (Note 21) 23,081 43,521 Other current assets 26,418 38,571 Total current assets 1,770,750 1,218,769 Restricted funds 52,103 50,195 Long-term inventory (Note 6) 798,199 641,877 Derivative assets (Note 21) 6,372 25,111 Other non-current assets 67,731 20,035 Mineral properties, plant and equipment (Note 7) 7,369,884 5,975,686 Deferred tax assets (Note 20) 394,484 3,837 Goodwill 236,670 237,294 8,925,443 6,954,035 Total assets $ 10,696,193 $ 8,172,804 LIABILITIES Trade and other payables (Note 8) $ 742,043 $ 612,965 Income taxes payable 61,145 45,000 Current portion of derivative liabilities (Note 21) 25,958 24,423 Current portion of debt and lease liabilities (Note 9) 380,645 170,149 Current portion of deferred revenue (Note 10) 85,862 74,061 Current portion of reclamation and other closure provisions (Note 11) 15,364 23,550 Total current liabilities 1,311,017 950,148 Derivative liabilities (Note 21) 5,603 27,876 Debt and lease liabilities (Note 9) 1,130,754 27,179 Deferred revenue (Note 10) 540,893 580,045 Reclamation and other closure provisions (Note 11) 496,511 422,298 Deferred consideration and other long-term liabilities (Note 3) 126,532 24,922 Provision for pension obligations 6,800 5,613 Deferred tax liabilities (Note 20) 673,970 709,602 2,981,063 1,797,535 Total liabilities 4,292,080 2,747,683 SHAREHOLDERS' EQUITY Share capital (Note 12) 4,572,954 4,555,125 Contributed surplus 54,323 55,769 Accumulated other comprehensive loss (343,319) (342,287) Retained earnings 640,646 592,425 Equity attributable to Lundin Mining Corporation shareholders 4,924,604 4,861,032 Non-controlling interests (Note 13) 1,479,509 564,089 Total shareholders' equity 6,404,113 5,425,121 Total liabilities and shareholders' equity $ 10,696,193 $ 8,172,804 Commitments and contingencies (Note 22) The accompanying notes are an integral part of these condensed interim consolidated financial statements. ===== SIDA 49 ===== - 2 - LUNDIN MINING CORPORATION CONDENSED INTERIM CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) (Unaudited - in thousands of US dollars, except for shares and per share amounts) Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Revenue (Note 14) $ 992,195 $ 648,498 $ 2,332,070 $ 2,229,798 Cost of goods sold Production costs (Note 15) (615,109) (425,814) (1,438,071) (1,210,431) Depreciation, depletion and amortization (179,788) (140,161) (430,540) (412,040) Gross profit 197,298 82,523 463,459 607,327 General and administrative expenses (19,444) (14,772) (49,452) (37,442) General exploration and business development (Note 17) (12,734) (72,446) (41,192) (132,259) Finance income (Note 18) 3,767 1,112 5,939 2,596 Finance costs (Note 18) (39,979) (16,352) (73,747) (50,117) Other (expense) income (Note 19) (22,134) 19,456 57,472 65,108 Earnings (loss) before income taxes 106,774 (479) 362,479 455,213 Current tax (expense) recovery (Note 20) (40,115) 9,994 (126,829) (161,193) Deferred tax (expense) recovery (Note 20) (44,776) (20,760) 12,846 24,218 Net earnings (loss) $ 21,883 $ (11,245) $ 248,496 $ 318,238 Net earnings (loss) attributable to: Lundin Mining Corporation shareholders $ (2,964) $ (11,212) $ 202,765 $ 281,289 Non-controlling interests 24,847 (33) 45,731 36,949 Net earnings (loss) $ 21,883 $ (11,245) $ 248,496 $ 318,238 Basic and diluted (loss) earnings per share attributable to Lundin Mining Corporation shareholders: $ 0.00 $ (0.01) $ 0.26 $ 0.37 Weighted average number of shares outstanding (Note 12) Basic 773,147,920 775,563,527 772,214,160 759,726,506 Diluted 773,147,920 775,563,527 772,918,648 760,909,648 The accompanying notes are an integral part of these condensed interim consolidated financial statements. ===== SIDA 50 ===== - 3 - LUNDIN MINING CORPORATION CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited - in thousands of US dollars) Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Net earnings (loss) $ 21,883 $ (11,245) $ 248,496 $ 318,238 Other comprehensive loss, net of taxes Item that will not be reclassified to net earnings: Remeasurements for post-employment benefit plans 145 553 (421) (8) Item that may be reclassified subsequently to net earnings: Effects of foreign exchange (4,386) (71,285) (689) (179,702) Other comprehensive loss (4,241) (70,732) (1,110) (179,710) Total comprehensive income (loss) $ 17,642 $ (81,977) $ 247,386 $ 138,528 Comprehensive income (loss) attributable to: Lundin Mining Corporation shareholders $ (7,236) $ (82,050) $ 201,733 $ 101,584 Non-controlling interests 24,878 73 45,653 36,944 Total comprehensive income (loss) $ 17,642 $ (81,977) $ 247,386 $ 138,528 The accompanying notes are an integral part of these condensed interim consolidated financial statements. ===== SIDA 51 ===== - 4 - LUNDIN MINING CORPORATION CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited - in thousands of US dollars, except for shares) Number of shares Share capital Contributed surplus Accumulated other comprehensive loss Retained earnings Non-controlling interests Total Balance, December 31, 2022 770,746,531 $ 4,555,125 $ 55,769 $ (342,287) $ 592,425 $ 564,089 $ 5,425,121 Distributions — — — — — (4,000) (4,000) Caserones Acquisition (Note 3) — — — — — 873,767 873,767 Exercise of share-based awards 2,653,604 17,829 (7,765) — — — 10,064 Share-based compensation — — 6,319 — — — 6,319 Dividends declared (Note 12(c)) — — — — (154,544) — (154,544) Net earnings — — — — 202,765 45,731 248,496 Other comprehensive loss — — — (1,032) — (78) (1,110) Total comprehensive (loss) income — — — (1,032) 202,765 45,653 247,386 Balance, September 30, 2023 773,400,135 $ 4,572,954 $ 54,323 $ (343,319) $ 640,646 $ 1,479,509 $ 6,404,113 Balance, December 31, 2021 734,987,154 $ 4,199,756 $ 58,166 $ (249,929) $ 437,160 $ 547,580 $ 4,992,733 Distributions — — — — — (20,000) (20,000) Josemaria acquisition 40,031,936 369,175 13,436 — — — 382,611 Exercise of share-based awards 5,715,046 43,750 (20,636) — — — 23,114 Share-based compensation — — 6,431 — — — 6,431 Dividends declared — — — — (224,940) — (224,940) Shares purchased (8,900,100) (52,516) — — 2,345 — (50,171) Accrued liability for automatic share purchase plan commitment — (9,189) — — — — (9,189) Net earnings — — — — 281,289 36,949 318,238 Other comprehensive loss — — — (179,705) — (5) (179,710) Total comprehensive (loss) income — — — (179,705) 281,289 36,944 138,528 Balance, September 30, 2022 771,834,036 $ 4,550,976 $ 57,397 $ (429,634) $ 495,854 $ 564,524 $ 5,239,117 The accompanying notes are an integral part of these condensed interim consolidated financial statements. ===== SIDA 52 ===== - 5 - LUNDIN MINING CORPORATION CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited - in thousands of US dollars) Three months ended September 30, Nine months ended September 30, Cash provided by (used in) 2023 2022 2023 2022 Operating activities Net earnings (loss) $ 21,883 $ (11,245) $ 248,496 $ 318,238 Items not involving cash and other adjustments Depreciation, depletion and amortization 179,788 140,161 430,540 412,040 Share-based compensation 1,974 896 5,995 6,431 Unrealized foreign exchange loss (gain) 9,096 14,426 (1,545) 25,000 Finance costs, net (Note 18) 36,212 15,240 67,808 47,521 Recognition of deferred revenue (Note 10) (16,671) (17,296) (52,690) (57,396) Deferred tax expense (recovery) 44,776 20,760 (12,846) (24,218) Revaluation of marketable securities (Note 19) 3,449 554 (453) (1,712) Revaluation of foreign currency and diesel derivatives (Note 21) 34,653 — 538 — Reversal of fair value adjustment on acquired inventory (Note 3) 32,185 — 32,185 — Other 8,871 30,491 22,316 (11,083) Reclamation payments (Note 11) (3,052) (8,712) (8,181) (12,619) Other payments (5,685) (400) (6,674) (1,425) Changes in long-term inventory (31,012) (3,538) (63,318) 3,111 Changes in non-cash working capital items (Note 25) (12,655) (145,006) 48,360 16,111 303,812 36,331 710,531 719,999 Investing activities Investment in mineral properties, plant and equipment (243,207) (199,488) (769,239) (561,668) Acquisition of Caserones, net of cash acquired (Note 3) (648,569) — (648,569) — Acquisition of Josemaria, net of cash acquired — — — (126,381) Cash received from disposal of subsidiary (Note 19) — — 5,718 16,828 Payment of Chapada derivative liability (Note 22) (25,000) (25,000) (25,000) (25,000) Interest received 3,541 1,078 5,709 2,483 Josemaria bridge loan — — — (54,100) Distributions from associate, net — — — 18,000 Other 4,479 (4,149) (909) (3,252) (908,756) (227,559) (1,432,290) (733,090) Financing activities Proceeds from debt (Note 9) 1,772,531 34,663 2,203,480 34,663 Interest paid (14,975) (2,629) (25,642) (6,154) Principal payments of lease liabilities (22,954) (4,256) (34,234) (13,192) Principal repayments of debt (Note 9) (920,677) (15,149) (1,135,179) (16,416) Payment of Josemaria debentures — — — (47,000) Dividends paid to shareholders (51,328) (53,019) (155,349) (224,251) Shares purchased (Note 12) — (42,121) — (50,171) Proceeds from common shares issued 2,506 2,653 10,064 23,114 Distributions paid to non-controlling interests (4,000) — (4,000) (35,000) Net proceeds from settlement of foreign currency and diesel derivatives 13,848 — 38,248 — Other (1,761) — (4,770) (4,954) 773,190 (79,858) 892,618 (339,361) Effect of foreign exchange on cash balances (1,091) (208) (4,909) (14,668) Increase (decrease) in cash and cash equivalents during the period 167,155 (271,294) 165,950 (367,120) Cash and cash equivalents, beginning of period 190,182 498,243 191,387 594,069 Cash and cash equivalents, end of period $ 357,337 $ 226,949 $ 357,337 $ 226,949 Supplemental cash flow information (Note 25) The accompanying notes are an integral part of these condensed interim consolidated financial statements. ===== SIDA 53 ===== LUNDIN MINING CORPORATION Notes to condensed interim consolidated financial statements For the three and nine months ended September 30, 2023 and 2022 (Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 6 - 1. NATURE OF OPERATIONS Lundin Mining Corporation is a diversified Canadian base metals mining company primarily producing copper, zinc, gold, nickel and molybdenum. The Company owns 80% of the Candelaria and Ojos del Salado mining complex ("Candelaria") and 51% of the Caserones copper-molybdenum mine (“Caserones”), each of which are located in Chile. The Company’s wholly-owned operating assets include the Chapada mine located in Brazil, the Eagle mine located in the United States of America (“USA”), the Neves-Corvo mine located in Portugal, and the Zinkgruvan mine located in Sweden. In addition, the Company owns the large scale copper-gold Josemaria project ("Josemaria Project"), located in Argentina. 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 885 West Georgia Street, Suite 2000, 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 (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and Interpretations of the International Financial Reporting Interpretations Committee 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, 2022. The consolidated financial statements have been prepared on a historical cost basis except for certain financial instruments which have been measured at fair value. The Company's presentation currency is United States (“US”) dollars. Reference herein to $ or USD is to US dollars, C$ or CAD is to Canadian dollars, SEK is to Swedish krona, € refers to the Euro, CLP refers to the Chilean peso, BRL refers to the Brazilian real, and ARS refers to the Argentine peso. Balance sheet items are classified as current if receipt or payment is due within twelve months. Otherwise, they are presented as non-current. These condensed interim consolidated financial statements were approved by the Board of Directors for issue on November 1, 2023. (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, 2022, except as discussed below. a. As a result of the Caserones acquisition (Note 3), the Company has amended its revenue policy to include sales of copper cathodes. The Company satisfies its performance obligations for its concentrate and copper cathode sales per specified contract terms which are generally upon shipment or delivery. Revenue from concentrate and copper cathode sales is recorded based upon forward market prices of the expected final sales price date. The Company typically receives payment shortly after vessel arrival at its destination port. All remaining policy elements of revenue recognition remain unchanged from the year ended December 31, 2022. ===== SIDA 54 ===== LUNDIN MINING CORPORATION Notes to condensed interim consolidated financial statements For the three and nine months ended September 30, 2023 and 2022 (Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 7 - b. As a result of the Caserones acquisition (Note 3), the Company has amended its inventories policy to include the valuation of inventory work in progress for the leaching process. Dump leach pad inventory represents ore that has been mined and placed on leach pads where a solution is applied to the surface of the heap to dissolve the gold and by-products. The resulting solution is further processed in a plant to recover the copper. The cost of leach pad inventory is derived from current mining and leaching costs and is removed at the weighted average cost per recoverable lb of copper on the leach pads as lbs of copper are recovered. Estimates of recoverable copper in the leach pads are calculated based on the quantities of ore placed on the leach pads (measured tonnes added to the leach pads), the grade of ore placed on the leach pads (based on assay data), and an estimated recovery percentage (based on estimated recovery assumptions from the block model). The nature of the leaching process inherently limits the ability to precisely monitor inventory levels. As a result, estimates are refined based on actual results and engineering studies over time. The final recovery of copper from leach pads will not be known until the leaching process is concluded at the end of the mine life. Ore on leach pads that is not expected to be recovered within the next twelve months is classified as non-current. All remaining policy elements of inventories remain unchanged from the year ended December 31, 2022. (iii) New standards and interpretations adopted In May 2021, the IASB issued amendments to IAS 12, Income Taxes. The amendments to IAS 12 narrow the scope of the initial recognition exemption so that it no longer applies to transactions which give rise to equal amounts of taxable and deductible temporary differences. The amendments require recognition of a deferred tax asset and deferred tax liability for temporary differences arising on initial recognition for certain transactions, including leases and reclamation provisions. The amendments to IAS 12 are effective for annual reporting periods beginning on or after January 1, 2023, with early adoption permitted. The Company adopted the amendments effective January 1, 2023, with no material impact to the consolidated financial statements for 2023 or the comparative period. In May 2023, the IASB issued amendments to IAS 12, Income Taxes. The amendments provide an exception to the requirements regarding the recognition of deferred tax assets and liabilities related to the Pillar Two global minimum tax rules. The Company has applied the exception to recognizing and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes whilst it evaluates the impact of these income taxes on its consolidated financial statements. (iv) Critical accounting estimates and judgments in applying the entity’s accounting policies Areas of judgment that have the most significant effect on the amounts recognized in the financial statements are disclosed in Note 2 of the Company’s consolidated financial statements for the year ended December 31, 2022, except for those noted below. The Company’s acquisition of fifty-one percent (51%) of the issued and outstanding equity of SCM Minera Lumina Copper Chile (“Lumina Copper”) (Note 3), which owns Caserones, requires each identified asset and liability to be measured at its acquisition date fair value. The excess, if any, of the fair value of consideration over the fair value of the identifiable net assets acquired and liabilities assumed is recognized in goodwill. The determination of fair values requires management to make assumptions and estimates about future events and judgements such as production profile, production and capital expenditures, metal prices and discount rates. Changes in these assumptions or estimates could affect the fair values assigned to assets acquired, liabilities assumed, and goodwill in the purchase price allocation. ===== SIDA 55 ===== LUNDIN MINING CORPORATION Notes to condensed interim consolidated financial statements For the three and nine months ended September 30, 2023 and 2022 (Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 8 - 3. BUSINESS COMBINATION On July 13, 2023, the Company completed the acquisition of fifty-one percent (51%) of the issued and outstanding equity of Lumina Copper, which owns the Caserones copper-molybdenum mine located in Chile, from JX Metals Corporation and certain of its subsidiaries ("Caserones Acquisition"). The total cash consideration paid after adjustments was $796.6 million, which was funded by the Company's revolving credit facility. Remaining deferred cash consideration of $150.0 million will be payable in installments as follows: $50.0 million to be paid in five installments of $10.0 million on the anniversary of the transaction closing date in each of 2024, 2025, 2026, 2027, and 2028; and $100 million shall be paid on the anniversary of the closing date in 2029. The Company also has the right to acquire up to an additional 19% interest in Lumina Copper for $350.0 million over a five- year period commencing on the first anniversary of the date of closing ("Caserones Purchase Option"). The purchase price is as follows: Cash consideration $ 796,580 Fair value of additional deferred consideration 112,851 Total consideration for 51% of Caserones $ 909,431 The fair value of the deferred consideration was calculated by discounting the required future payments using a credit adjusted risk free rate that appropriately reflects the credit risk associated with the future payments. The current portion of this liability has been recorded in Trade and Other Payables and the non-current portion has been recorded in Deferred consideration and other long-term liabilities. Preliminary fair values of assets acquired and liabilities assumed: Cash and cash equivalents $ 148,011 Trade and other receivables 253,769 Inventories 324,565 Restricted funds 4,196 Long-term inventory 84,705 Other non-current assets (a) 46,994 Mineral properties, plant and equipment 1,117,672 Deferred tax assets (b) 411,503 Total assets $ 2,391,415 Trade and other payables $ 256,161 Lease liability 257,655 Reclamation and other closure provisions 92,440 Other 1,961 Total liabilities $ 608,217 Total assets acquired and liabilities assumed, net $ 1,783,198 Less: Non-controlling interests $ 873,767 Lundin Mining Corporation's 51% share of Caserones $ 909,431 ===== SIDA 56 ===== LUNDIN MINING CORPORATION Notes to condensed interim consolidated financial statements For the three and nine months ended September 30, 2023 and 2022 (Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 9 - a. The Company has assigned a fair value of $47.0 million to its right to acquire up to an additional 19% interest in Lumina Copper for $350.0 million. The fair value of the Caserones purchase option was determined using the arithmetic average approximation methodology which assumes a risk-free interest rate of 3.93%, expected copper price volatility of 22.8%, and a term of 5 years. b. The Company acquired approximately $4.3 billion in total tax loss carryforward balances associated with Caserones. The Company has recognized deferred tax assets to the extent that the Company expects to realize sufficient taxable profit in the foreseeable future. For the purpose of these financial statements, the preliminary fair value of assets acquired and liabilities assumed is based on management's best estimates and taking into consideration all currently available information at the time of acquisition. There may be adjustments to the estimated fair values as the valuation work is finalized, which is expected to be completed by the end of 2023. Management primarily used a discounted cash flow model (net present value of expected future cash flows) to determine the fair value of the mine assets. Management used significant future assumptions in the model such as metal prices, production based on estimated quantities of Mineral Reserves and Resources, production and capital expenditures, and discount rate. Average copper price assumptions between 2023 and 2027 used in the valuation was $3.80 per pound of copper with $3.58 per pound being used as the long-term assumption. In determining the fair value of plant and equipment, management primarily used the depreciated replacement cost approach and used the sales comparison approach for certain mobile plant items where secondary market evidence was available. Short-term inventory was valued based on assumed market price less cost to complete and a reasonable profit margin. Long-term inventory was valued on the same basis, but also considers a multi-year recovery period for the estimated payable metal contained in the dump leach. The Company used the proportionate method in measuring non-controlling interests at the acquisition date. No goodwill has been recognized on the transaction. Acquisition related costs of $5.2 million are recorded in the consolidated statement of earnings as a business development cost (Note 17). Revenue and net earnings contributed by Caserones since acquisition and included in the consolidated statement of earnings were $284.6 million and $38.0 million, respectively. For the three months ended September 30, 2023, $32.2 million of metal inventories acquired at fair value were included in Cost of goods sold (production costs). If Caserones had been consolidated from January 1, 2023, the consolidated statement of earnings for the nine months ended September 30, 2023 would show pro forma revenue of approximately $3,108.5 million and net earnings of approximately $453.9 million. ===== SIDA 57 ===== LUNDIN MINING CORPORATION Notes to condensed interim consolidated financial statements For the three and nine months ended September 30, 2023 and 2022 (Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 10 - 4. CASH AND CASH EQUIVALENTS Cash and cash equivalents are comprised of the following: September 30, 2023 December 31, 2022 Cash $ 259,355 $ 158,153 Short-term deposits 97,982 33,234 $ 357,337 $ 191,387 5. TRADE AND OTHER RECEIVABLES Trade and other receivables are comprised of the following: September 30, 2023 December 31, 2022 Trade receivables $ 521,760 $ 430,734 Prepaid expenses 59,898 53,767 Value added tax 66,755 65,028 Other receivables 32,245 26,649 $ 680,658 $ 576,178 6. INVENTORIES Inventories are comprised of the following: September 30, 2023 December 31, 2022 Materials and supplies $ 329,038 $ 184,720 Ore stockpiles and dump leach 200,465 69,781 Finished goods - concentrate stockpiles 77,940 42,209 Finished goods - copper cathode 11,415 — $ 618,858 $ 296,710 Long-term inventories are comprised of the following: September 30, 2023 December 31, 2022 Ore stockpiles at Candelaria $ 430,577 $ 394,240 Ore stockpiles at Chapada 277,367 247,637 Dump leach at Caserones 90,255 — $ 798,199 $ 641,877 ===== SIDA 58 ===== LUNDIN MINING CORPORATION Notes to condensed interim consolidated financial statements For the three and nine months ended September 30, 2023 and 2022 (Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 11 - 7. MINERAL PROPERTIES, PLANT AND EQUIPMENT Mineral properties, plant and equipment are comprised of the following: Cost Mineral properties Plant and equipment Assets under construction1 Development project2 Software intangible assets Total As at December 31, 2021 $ 5,279,143 $ 3,441,171 $ 342,592 $ 6,631 $ 14,678 $ 9,084,215 Josemaria acquisition — 22,233 — 646,605 — 668,838 Additions 192,923 64,007 192,775 117,927 1,265 568,897 Disposals and transfers 55,596 191,145 (258,989) (5,279) 4,418 (13,109) Effects of foreign exchange (281,682) (145,453) (19,486) — (744) (447,365) As at September 30, 2022 5,245,980 3,573,103 256,892 765,884 19,617 9,861,476 Additions 129,542 28,642 84,474 110,535 13,005 366,198 Disposals and transfers 37,509 68,285 (110,698) — (377) (5,281) Effects of foreign exchange 133,892 82,147 5,388 — 381 221,808 As at December 31, 2022 5,546,923 3,752,177 236,056 876,419 32,626 10,444,201 Caserones Acquisition (Note 3) — 1,105,187 12,485 — — 1,117,672 Additions 178,643 70,718 287,441 214,036 61 750,899 Disposals and transfers 84,818 18,983 (174,413) — 2,798 (67,814) Effects of foreign exchange (28,844) (11,943) (2,086) — (134) (43,007) As at September 30, 2023 $ 5,781,540 $ 4,935,122 $ 359,483 $ 1,090,455 $ 35,351 $ 12,201,951 Accumulated depreciation, depletion and amortization Mineral properties Plant and equipment Assets under construction1 Development project2 Software intangible assets Total As at December 31, 2021 $ 2,620,196 $ 1,405,084 $ — $ — $ 8,036 $ 4,033,316 Depreciation 243,467 182,890 — — 1,798 428,155 Disposals and transfers (79) (4,547) — — (119) (4,745) Effects of foreign exchange (175,965) (65,063) — — (284) (241,312) As at September 30, 2022 2,687,619 1,518,364 — — 9,431 4,215,414 Depreciation 65,364 69,113 — — 2,031 136,508 Disposals and transfers — (914) — — — (914) Effects of foreign exchange 82,448 34,876 — — 183 117,507 As at December 31, 2022 2,835,431 1,621,439 — — 11,645 4,468,515 Depreciation 225,325 219,863 — — 3,684 448,872 Disposals and transfers — (58,596) — — — (58,596) Effects of foreign exchange (19,469) (7,196) — — (59) (26,724) As at September 30, 2023 $ 3,041,287 $ 1,775,510 $ — $ — $ 15,270 $ 4,832,067 Net book value Mineral properties Plant and equipment Assets under construction1 Development project2 Software intangible assets Total As at December 31, 2022 $ 2,711,492 $ 2,130,738 $ 236,056 $ 876,419 $ 20,981 $ 5,975,686 As at September 30, 2023 $ 2,740,253 $ 3,159,612 $ 359,483 $ 1,090,455 $ 20,081 $ 7,369,884 ¹ Represent assets under construction at the Company's operating mine sites which are currently non-depreciable. 2 Assets relate to the Josemaria Project which are currently non-depreciable. During the quarter ended September 30, 2023, the Company completed the Caserones acquisition (Note 3) acquiring $1,117.7 million of plant and equipment and assets under construction. ===== SIDA 59 ===== LUNDIN MINING CORPORATION Notes to condensed interim consolidated financial statements For the three and nine months ended September 30, 2023 and 2022 (Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 12 - During the second quarter of 2022, the Company completed the Josemaria Resources Inc. acquisition acquiring $668.8 million of mineral properties, plant and equipment related to the Josemaria Project. During the fourth quarter of 2022, the Company began to capitalize the Josemaria Project development costs. During the three and nine months ended September 30, 2023, the Company capitalized $5.8 million and $13.6 million, respectively, of finance costs to the Josemaria Project at a weighted average interest rate of 5.9%. During the three and nine months ended September 30, 2022, the Company capitalized $0.3 million and $2.1 million, respectively, of finance costs to assets under construction at a weighted average interest rate of 5.5%. During the three and nine months ended September 30, 2023, the Company capitalized $65.0 million (third quarter ("Q3") 2022 - $56.6 million) and $160.8 million (year-to-date ("YTD") Q3 2022 - $178.6 million), respectively, of deferred stripping costs to mineral properties. The depreciation expense related to deferred stripping for the three and nine months ended September 30, 2023, was $23.4 million (Q3 2022 - $37.9 million) and $75.8 million (YTD Q3 2022 - $104.2 million), respectively. Included in the mineral properties balance at September 30, 2023 is $235.4 million (December 31, 2022 - $681.7 million) related to deferred stripping at Candelaria and Caserones, which is currently non- depreciable. The Company leases various assets including power line infrastructure, buildings and storage facilities, rail cars, vehicles, machinery and equipment. The following table summarizes the changes in right-of-use assets within plant and equipment: Net book value As at December 31, 2021 $ 27,597 Josemaria acquisition 32 Additions 16,625 Depreciation (15,454) Effects of foreign exchange (618) As at September 30, 2022 28,182 Additions 5,446 Depreciation (5,834) Disposals (75) Effects of foreign exchange 204 As at December 31, 2022 27,923 Caserones Acquisition (Note 3) 257,655 Additions 38,284 Depreciation (31,355) Disposals (5,363) Effects of foreign exchange 254 As at September 30, 2023 $ 287,398 ===== SIDA 60 ===== LUNDIN MINING CORPORATION Notes to condensed interim consolidated financial statements For the three and nine months ended September 30, 2023 and 2022 (Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 13 - 8. TRADE AND OTHER PAYABLES Trade and other payables are comprised of the following: September 30, 2023 December 31, 2022 Trade payables $ 353,461 $ 315,948 Unbilled goods and services 173,442 122,390 Employee benefits payable 104,557 88,086 Pricing provisions on concentrate sales 21,099 8,484 Sinkhole provision 30,658 38,000 Royalties payable 25,305 16,283 Deferred consideration, current portion (Note 3) 10,000 — Other 23,521 23,774 $ 742,043 $ 612,965 Included in pricing provisions on concentrate sales are balances owing to customers and provisions arising from forward market price adjustments. The sinkhole provision relates to expected remediation costs and potential fines directly related to the sinkhole near the Company's Ojos del Salado operations. The deferred consideration relates to the current portion of the remaining deferred cash consideration arising from the Caserones Acquisition (Note 3), payable in installments over the next six years. The long-term portion of $104.5 million has been reported in Other Long-Term Liabilities. 9. DEBT AND LEASE LIABILITIES Debt and lease liabilities are comprised of the following: September 30, 2023 December 31, 2022 Revolving credit facility (a) $ 159,190 $ 13,730 Term loan (b) 798,396 — Candelaria and Chapada term loans (c) 169,298 127,400 Lease liabilities (d) 277,982 27,166 Commercial paper (e) 105,973 26,665 Line of credit 560 2,367 Debt and lease liabilities 1,511,399 197,328 Less: current portion 380,645 170,149 Long-term portion $ 1,130,754 $ 27,179 ===== SIDA 61 ===== LUNDIN MINING CORPORATION Notes to condensed interim consolidated financial statements For the three and nine months ended September 30, 2023 and 2022 (Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 14 - The changes in debt and lease liabilities are comprised of the following: Leases Debt Total As at December 31, 2021 $ 25,878 $ 5,125 $ 31,003 Josemaria acquisition 38 47,000 47,038 Additions 16,625 34,663 51,288 Payments (14,239) (63,416) (77,655) Disposals (2) — (2) Interest 1,047 — 1,047 Effects of foreign exchange (2,191) (1,148) (3,339) As at September 30, 2022 27,156 22,224 49,380 Additions 4,573 248,275 252,848 Payments (7,412) (97,408) (104,820) Disposals (24) — (24) Interest 387 — 387 Financing fee amortization — 656 656 Financing fee reclassification — (4,926) (4,926) Effects of foreign exchange 2,486 1,341 3,827 As at December 31, 2022 27,166 170,162 197,328 Caserones Acquisition (Note 3) 257,655 — 257,655 Additions 38,217 2,203,480 2,241,697 Payments (34,234) (1,135,179) (1,169,413) Disposals (6,221) — (6,221) Interest 6,609 — 6,609 Financing fee amortization — 764 764 Deferred financing fee — (2,908) (2,908) Effects of foreign exchange (11,210) (2,902) (14,112) As at September 30, 2023 277,982 1,233,417 1,511,399 Less: current portion 51,873 328,772 380,645 Long-term portion $ 226,109 $ 904,645 $ 1,130,754 a) The Company has a revolving credit facility of $1,750.0 million. On April 26, 2023, the credit facility was amended, extending the term by one year to April 2028 and bearing interest on drawn funds at rates of Term Secured Overnight Financing Rate (“Term SOFR”) + Credit Spread Adjustment (“CSA”) of 0.10% + 1.45% to Term SOFR + 0.10% + 2.50%, depending on the Company’s net leverage ratio. The revolving credit facility is subject to customary covenants. During the three and nine months ended September 30, 2023, the Company drew down $873.0 million (Q3 2022 - $nil) and $1.044 billion (YTD Q3 2022 - $nil), respectively, and repaid $885.0 million and $898.0 million, respectively (September 30, 2022 - $nil and $nil). Amounts drawn down from the revolving credit facility in the three months ended September 30, 2023 were used to fund the upfront cash consideration for the Caserones Acquisition (Note 3). As at September 30, 2023, a principal balance of $164.0 million (December 31, 2022 - $18.0 million) was outstanding, with unamortized deferred financing fees of $4.8 million (December 31, 2022 - $4.3 million) netted against borrowings. ===== SIDA 62 ===== LUNDIN MINING CORPORATION Notes to condensed interim consolidated financial statements For the three and nine months ended September 30, 2023 and 2022 (Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 15 - (b) In July 2023, the Company obtained a term loan of a principal amount of $800.0 million with an additional $400.0 million accordion option, maturing July 2026. The term loan bears interest at an annual rate equal to Term SOFR + CSA + an applicable margin of 1.60% to 2.65%, depending on the Company’s net leverage ratio. Principal is payable at maturity. The term loan is unsecured, save and except for a charge over certain assets in the USA, and has similar covenants to the Company’s existing $1,750.0 million revolving credit facility. The Company used the term loan to refinance the drawdown under the existing $1,750.0 million revolving credit facility used to fund the upfront cash consideration of $796.6 million for the Caserones acquisition (Note 3). As at September 30, 2023, a principal balance of $800 million was outstanding, with unamortized deferred financing fees of $1.6 million netted against borrowings. c) During 2022, Candelaria obtained an unsecured fixed term loan in the amount of $50.0 million which remains outstanding as at September 30, 2023 (December 31, 2022 - $50.0 million). The loan matures on December 20, 2023 and accrues interest at a rate of 6.13% per annum, with interest payable upon maturity. Mineração Maracá Indústria e Comércio S/A (“Chapada”), a subsidiary of the Company which owns the Chapada mine, obtained a series of unsecured fixed term loans totalling $55.3 million (Q3 2022 - $nil) and $185.8 million (YTD Q3 2022 - $nil) during the three and nine months ended September 30, 2023, respectively. Chapada repaid $35.1 million (Q3 2022 - $nil) and $143.9 million (YTD Q3 2022 - $nil) of the outstanding term loans during the three and nine months ended September 30, 2023, respectively. As at September 30, 2023, there were twenty-eight term loans outstanding at Chapada totalling $119.3 million (December 31, 2022 - nine term loans totalling $77.4 million). These outstanding term loans accrue interest at rates ranging from 6.67% to 7.24% per annum with interest payable upon maturity. The maturity dates range from October 2023 to March 2024. d) Lease liabilities relate to leases on power line infrastructure, buildings and storage facilities, rail cars, vehicles, machinery and equipment which have remaining lease terms of one to fourteen years and interest rates of 0.8% - 10.4% over the terms of the leases. Additionally, the Company acts as lessee in certain leases that contain variable lease payment terms that are primarily based on usage of the right-of-use assets. e) Sociedade Mineira de Neves-Corvo, S.A. (“Somincor”), a subsidiary of the Company which owns the Neves- Corvo mine, has a commercial paper program ("Commercial Paper Program 1") which matures in May 2025. The $26.5 million (€25.0 million) program bears interest on drawn funds at EURIBOR+0.50%. As at December 31, 2022, the Commercial Paper Program 1 was fully drawn at $26.7 million (€25.0 million). In June and July 2023, Somincor entered into a second and third commercial paper program ("Commercial Paper Program 2") and ("Commercial Paper Program 3"), respectively. Commercial Paper Program 2 has a borrowing capacity of $53.0 million (€50.0 million), matures in June 2028, and bears interest on drawn funds at EURIBOR+0.50%. Commercial Program 3 has a borrowing capacity of $42.4 million (€40.0 million), matures in July 2028, and bears interest on drawn funds at EURIBOR+0.30%. ===== SIDA 63 ===== LUNDIN MINING CORPORATION Notes to condensed interim consolidated financial statements For the three and nine months ended September 30, 2023 and 2022 (Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 16 - During the three and nine months ended September 30, 2023 and 2022, Somincor made the following withdrawals and payments from the respective programs: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Commercial Paper Program 1 Withdrawals — $34,663 (€35 million) $86,060 (€80 million) $34,663 (€35 million) Payments — $14,856 (€15 million) $ 91,444 (€85 million) $14,856 (€15 million) Commercial Paper Program 2 Withdrawals $11,058 (€10 million) — $54,417 (€50 million) — Payments — — — — Commercial Paper Program 3 Withdrawals $33,174 (€30 million) — $33,174 (€30 million) — Payments — — — — As at September 30, 2023, Commercial Paper Program 1, Commercial Paper Program 2, and Commercial Paper Program 3 remain drawn at $21.2 million (€20 million), $53.0 million (€50.0 million), and $31.8 million (€30.0 million), respectively. The schedule of undiscounted lease payment and debt obligations is as follows: Leases Debt Total Less than one year $ 68,699 $ 328,772 $ 397,471 One to five years 163,413 911,059 1,074,472 More than five years 158,983 — 158,983 Total undiscounted obligations as at September 30, 2023 $ 391,095 $ 1,239,831 $ 1,630,926 ===== SIDA 64 ===== LUNDIN MINING CORPORATION Notes to condensed interim consolidated financial statements For the three and nine months ended September 30, 2023 and 2022 (Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 17 - 10. DEFERRED REVENUE The following table summarizes the changes in deferred revenue: As at December 31, 2021 $ 693,467 Recognition of revenue (57,396) Finance costs 28,224 Effects of foreign exchange (10,922) As at September 30, 2022 653,373 Recognition of revenue (16,337) Variable consideration adjustment 3,492 Finance costs 9,397 Effects of foreign exchange 4,181 As at December 31, 2022 654,106 Recognition of revenue (52,690) Finance costs 26,967 Effects of foreign exchange (1,628) As at September 30, 2023 626,755 Less: current portion 85,862 Long-term portion $ 540,893 Consideration received under the Company’s gold, silver and copper streaming agreements is deemed to be variable and can be subject to cumulative adjustments when the contractual volume to be delivered changes. In 2022, as a result of changes to the Company’s Mineral Resources and Mineral Reserves estimates, an adjustment was made to the deferred revenue liability which was recognized through revenue and finance costs. ===== SIDA 65 ===== LUNDIN MINING CORPORATION Notes to condensed interim consolidated financial statements For the three and nine months ended September 30, 2023 and 2022 (Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 18 - 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, 2021 $ 406,966 $ 39,089 $ 446,055 Accretion 10,679 — 10,679 Changes in estimate 12,766 8,675 21,441 Changes in discount rate (44,822) — (44,822) Payments (8,892) (3,727) (12,619) Effects of foreign exchange (18,773) (5,494) (24,267) Balance, September 30, 2022 357,924 38,543 396,467 Accretion 3,665 — 3,665 Changes in estimate 33,000 2,699 35,699 Changes in discount rate 1,155 — 1,155 Payments (2,283) (1,001) (3,284) Effects of foreign exchange 7,559 4,587 12,146 Balance, December 31, 2022 401,020 44,828 445,848 Acquisition of Caserones (Note 3) 92,440 — 92,440 Accretion 16,791 — 16,791 Changes in estimate (23,309) 7,639 (15,670) Changes in discount rate (14,314) — (14,314) Payments (6,436) (1,745) (8,181) Effects of foreign exchange (2,183) (2,856) (5,039) Balance, September 30, 2023 464,009 47,866 511,875 Less: current portion 10,206 5,158 15,364 Long-term portion $ 453,803 $ 42,708 $ 496,511 The Company expects these liabilities to be settled between 2023 and 2065. The reclamation provisions are discounted using current market pre-tax discount rates which range from 3.0% to 11.4% (December 31, 2022 - 2.0% to 13.5%). ===== SIDA 66 ===== LUNDIN MINING CORPORATION Notes to condensed interim consolidated financial statements For the three and nine months ended September 30, 2023 and 2022 (Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 19 - 12. SHARE CAPITAL a) Basic and diluted weighted average number of shares outstanding Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Basic weighted average number of shares outstanding 773,147,920 775,563,527 772,214,160 759,726,506 Effect of dilutive securities (i) — — 704,488 1,183,142 Diluted weighted average number of shares outstanding 773,147,920 775,563,527 772,918,648 760,909,648 Antidilutive securities 45,300 751,450 77,475 472,000 (i) As a result of the Company’s net loss position for the three months ended September 30, 2023, 1,013,385 shares (Q3 2022 - 675,079 shares) that would have been dilutive had the Company been in a net earnings position were excluded from diluted weighted average number of shares outstanding. The effect of dilutive securities relates to in-the-money outstanding stock options and share units ("SUs"). Upon closing the Josemaria Resources Inc. acquisition in April 2022, the Company issued 40,031,936 common shares to the former shareholders of Josemaria Resources Inc. with a fair value of $369.2 million. b) Stock options and SUs granted/issued Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Stock options 38,100 76,500 1,918,763 1,830,020 Replacement Options — — — 2,513,866 SUs 45,300 27,150 1,306,803 507,579 In April 2022, the Company issued 2,513,866 Replacement Options upon the acquisition of Josemaria Resources Inc. c) Dividends During the three and nine months ended September 30, 2023, the Company declared dividends in the amount of $52.2 million (Q3 2022 - $54.0 million) or C$0.09 per share (Q3 2022 - C$0.09), and $154.5 million (YTD Q3 2022 - $224.9 million) or C$0.27 per share (YTD Q3 2022 - C$0.38), respectively. d) Normal course issuer bid For the three and nine months ended September 30, 2023, no common 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"). For the three and nine months ended September 30, 2022, 7,710,900 and 8,900,100 shares were purchased by the Company's broker under the ASPP or at management's discretion pursuant to its NCIB at an average price of C$7.09 and C$7.30 per share for total consideration of $42.1 million and $50.2 million, respectively. All common shares purchased were cancelled. As at September 30, 2022, the Company had recorded an accrual of $9.2 million in trade and other payables representing the contractual maximum share purchases remaining under the ASPP . ===== SIDA 67 ===== LUNDIN MINING CORPORATION Notes to condensed interim consolidated financial statements For the three and nine months ended September 30, 2023 and 2022 (Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 20 - 13. NON-CONTROLLING INTERESTS The continuity of the Company's non-wholly owned subsidiaries with material non-controlling interest ("NCI") is as follows: Candelaria mine Ojos mine Caserones mine Total NCI in subsidiary at September 30, 2023 20% 20% 49 % As at December 31, 2021 $ 511,326 $ 36,254 $ — $ 547,580 Share of net comprehensive income (loss) 31,713 5,231 — 36,944 Distributions (10,000) (10,000) — (20,000) As at September 30, 2022 533,039 31,485 — 564,524 Share of net comprehensive income (loss) 6,312 (6,747) — (435) Distributions — — — — As at December 31, 2022 539,351 24,738 — 564,089 Caserones Acquisition (Note 3) — — 873,767 873,767 Share of net comprehensive income (loss) 26,274 455 18,924 45,653 Distributions (4,000) — — (4,000) As at September 30, 2023 $ 561,625 $ 25,193 $ 892,691 $ 1,479,509 Summarized financial information for the Company's non-wholly owned subsidiaries on a 100% basis, before inter- company eliminations is as follows: Summarized Balance Sheets Candelaria mine Ojos mine Caserones As at Sep. 30, 2023 As at Dec. 31, 2022 As at Sep. 30, 2023 As at Dec. 31, 2022 As at Sep. 30, 2023 As at Dec. 31, 2022 Total current assets $ 441,686 $ 557,565 $ 76,279 $ 77,177 $ 741,552 $ — Total non-current assets $ 2,964,039 $ 2,818,053 $ 168,884 $ 169,985 $ 1,624,846 $ — Total current liabilities $ 258,699 $ 299,605 $ 72,943 $ 83,083 $ 268,794 $ — Total non-current liabilities $ 575,373 $ 564,228 $ 40,596 $ 39,463 $ 276,526 $ — Summarized Statements of Earnings and Comprehensive Income (Loss) Candelaria mine Ojos mine Caserones For the nine months ended September 30, 2023 2022 2023 2022 2023 2022 Total revenue $ 1,010,419 $ 1,012,242 $ 106,290 $ 143,795 $ 284,556 $ — Net earnings (loss) $ 104,932 $ 152,110 $ 7,008 $ 26,155 $ 37,801 $ — Net comprehensive income (loss) $ 104,854 $ 152,105 $ 7,008 $ 26,155 $ 37,801 $ — ===== SIDA 68 ===== LUNDIN MINING CORPORATION Notes to condensed interim consolidated financial statements For the three and nine months ended September 30, 2023 and 2022 (Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 21 - 14. REVENUE The Company's analysis of revenue from contracts with customers, segmented by product, is as follows: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Revenue from contracts with customers: Copper $ 707,347 $ 452,223 $ 1,628,489 $ 1,588,878 Nickel 75,701 73,770 236,813 267,037 Zinc 85,292 87,780 234,613 290,124 Gold 53,602 63,450 156,953 167,064 Molybdenum 48,142 — 48,142 — Lead 21,863 13,554 45,166 44,506 Silver 13,983 7,745 33,084 32,766 Other 10,832 14,142 27,147 37,668 1,016,762 712,664 2,410,407 2,428,043 Provisional pricing adjustments on concentrate sales (24,567) (64,166) (78,337) (198,245) Revenue $ 992,195 $ 648,498 $ 2,332,070 $ 2,229,798 The Company's geographical analysis of revenue from contracts with customers, segmented based on the destination of product, is as follows: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Revenue from contracts with customers: China $ 315,910 $ 49,992 $ 511,192 $ 166,173 Spain 188,542 125,503 449,259 321,103 Japan 100,830 145,536 428,576 629,696 Canada 105,759 108,400 321,589 387,277 Finland 81,907 90,792 189,564 240,870 Sweden 48,518 35,935 117,510 130,754 Germany 37,299 68,688 111,013 199,958 Other 137,997 87,818 281,704 352,212 1,016,762 712,664 2,410,407 2,428,043 Provisional pricing adjustments on concentrate sales (24,567) (64,166) (78,337) (198,245) Revenue $ 992,195 $ 648,498 $ 2,332,070 $ 2,229,798 ===== SIDA 69 ===== LUNDIN MINING CORPORATION Notes to condensed interim consolidated financial statements For the three and nine months ended September 30, 2023 and 2022 (Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 22 - 15. PRODUCTION COSTS The Company's production costs are comprised of the following: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Direct mine and mill costs $ 559,989 $ 387,806 $ 1,311,151 $ 1,084,687 Transportation 36,988 30,461 92,117 91,470 Royalties 18,132 7,547 34,803 34,274 Total production costs $ 615,109 $ 425,814 $ 1,438,071 $ 1,210,431 16. EMPLOYEE BENEFITS The Company's employee benefits recognized in the consolidated statement of earnings are comprised of the following: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Production costs Wages and benefits $ 97,307 $ 65,904 $ 255,615 $ 211,094 Retirement benefits 468 407 1,529 1,244 Share-based compensation 441 517 1,421 1,789 98,216 66,828 258,565 214,127 General and administrative expenses Wages and benefits 7,641 4,991 19,208 16,048 Retirement benefits 192 228 793 680 Share-based compensation 1,508 307 4,351 4,366 Termination benefits 3,813 1,891 7,011 1,891 13,154 7,417 31,363 22,985 General exploration and business development Wages and benefits 1,033 2,442 3,933 6,855 Retirement benefits 6 12 29 25 Share-based compensation 15 72 213 276 Termination benefits — — 313 — 1,054 2,526 4,488 7,156 Total employee benefits $ 112,424 $ 76,771 $ 294,416 $ 244,268 ===== SIDA 70 ===== LUNDIN MINING CORPORATION Notes to condensed interim consolidated financial statements For the three and nine months ended September 30, 2023 and 2022 (Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 23 - 17. GENERAL EXPLORATION AND BUSINESS DEVELOPMENT The Company's general exploration and business development costs are comprised of the following: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 General exploration $ 11,613 $ 9,080 $ 32,568 $ 26,340 Corporate development 37 36 5,228 36 Project development 1,084 63,330 3,396 105,883 Total general exploration and business development $ 12,734 $ 72,446 $ 41,192 $ 132,259 For the three and nine months ended September 30, 2023, corporate development expenses include $nil and $5.2 million, respectively, in transaction costs incurred related to the Caserones Acquisition (Note 3). Project development expenses include study costs related to potential expansion projects at the Company's operating sites. During the fourth quarter of 2022, the Company began to capitalize the Josemaria Project development costs. 18. FINANCE INCOME AND COSTS The Company's finance income and costs are comprised of the following: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Interest income $ 3,767 $ 1,112 $ 5,939 $ 2,596 Interest expense and bank fees (18,142) (2,525) (31,339) (6,594) Deferred revenue finance costs (6,983) (9,030) (17,508) (26,146) Accretion expense on reclamation provisions (6,314) (3,541) (16,791) (10,679) Lease liability interest (5,876) (363) (6,609) (1,047) Other (2,664) (893) (1,500) (5,651) Total finance costs, net $ (36,212) $ (15,240) $ (67,808) $ (47,521) Finance income $ 3,767 $ 1,112 $ 5,939 $ 2,596 Finance costs (39,979) (16,352) (73,747) (50,117) Total finance costs, net $ (36,212) $ (15,240) $ (67,808) $ (47,521) ===== SIDA 71 ===== LUNDIN MINING CORPORATION Notes to condensed interim consolidated financial statements For the three and nine months ended September 30, 2023 and 2022 (Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 24 - 19. OTHER INCOME AND EXPENSE The Company's other income and expense are comprised of the following: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Foreign exchange and trading gains on debt and equity investments (a) $ 14,963 $ 38,602 $ 67,708 $ 67,695 Realized gains on derivative contracts (Note 21) 12,851 — 40,703 — Foreign exchange gain (loss) 7,943 (4,297) 10,388 (4,926) Gain on disposal of subsidiary (b) — — 5,718 16,828 Revaluation of marketable securities (3,449) (554) 453 1,712 Unrealized losses on derivative contracts (Note 21) (47,504) — (41,241) — Ojos del Salado sinkhole expenses (c) 1,247 (11,405) (15,235) (11,405) Revaluation of Chapada derivative liability (370) 1,558 (2,166) (990) (Loss) income from equity investment in associate (6) (78) (60) 3,297 Other expense (7,809) (4,370) (8,796) (7,103) Total other (expense) income, net $ (22,134) $ 19,456 $ 57,472 $ 65,108 a) 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. b) Pursuant to the terms of the original sale agreement of Rio Narcea Recursos, S.A. in 2016, the Company received a $16.8 million payment during the first quarter of 2022, and a further $5.7 million payment in the first quarter of 2023, which were contingent on historical tax assessments which have now been closed. c) Ojos del Salado sinkhole expenses include idle costs, maintenance, and remediation work related to the sinkhole near the Company's Ojos del Salado operations. For the three and nine months ended September 30, 2022, sinkhole expenses included a $3.6 million write-down of mineral properties, plant and equipment. 20. INCOME TAXES The new mining royalty law in Chile, which includes a 1% ad-valorem tax on sales, was enacted in the third quarter of 2023 and will become effective January 1, 2024 for Candelaria and January 1, 2028 for Caserones when their respective tax invariability agreements expire. In addition to the ad-valorem tax, both operations in Chile are expected to pay mining tax of approximately 8% - 15% on net mining income (currently approximately 5%). The deferred mining tax liability has been revalued using the enacted rates, resulting in additional deferred mining tax expense of $25.7 million. Caserones has approximately $4.3 billion in net operating losses which can be applied to future taxable income over the mine life. A deferred tax asset has been recognized to the extent that the Company expects to realize sufficient taxable profit in the foreseeable future. ===== SIDA 72 ===== LUNDIN MINING CORPORATION Notes to condensed interim consolidated financial statements For the three and nine months ended September 30, 2023 and 2022 (Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 25 - 21. FINANCIAL INSTRUMENTS Derivative instruments From time to time, the Company uses derivative contracts as part of its risk management strategy to mitigate exposure to foreign currencies and commodities. During 2022, the Company entered into EUR, BRL, CLP , SEK and CAD foreign currency options and forward contracts intended to limit the foreign exchange exposure of its forecasted foreign currency denominated after-tax attributable operating and capital expenditures. The foreign exchange contracts have not been designated as hedges for purposes of hedge accounting and are measured at fair value with changes in fair value recognized in the consolidated statement of earnings. During the third quarter of 2023, the Company entered into SEK forward contracts in the total amount of SEK 845.7 million at prices ranging from USD:SEK 10.76 to USD:SEK 10.92, expiring in the remainder of 2023 through 2025. Additionally, the Company entered into zero cost collar contracts in the total amounts of SEK 396 million, CLP 303 billion and BRL 206 million with collar ranges of SEK 10.35 to SEK 11.15, CLP 800 to CLP 1,035, and BRL 5.00 to BRL 6.00, respectively. The contracts expire throughout 2023 to 2025. The following table shows the foreign exchange contract positions and their expiry dates: Expired in Expiring throughout: Foreign currency forward contracts 2023 remainder of 2023 2024 2025 EUR/USD forwards Average contract price 1.01 1.01 1.02 — Position (EUR millions) 187 62 155 — USD/SEK forwards Average contract price 11.1 11.0 10.9 10.8 Position (SEK millions) 960 342 922 758 Expired in Expiring throughout: Foreign currency zero cost collar contracts 2023 remainder of 2023 2024 2025 USD/BRL collars Average contract price 5.00/6.40 5.00/6.40 5.00/6.40 5.00/6.00 Position (BRL millions) 857 286 974 206 USD/CLP collars Average contract price 895/1,043 865/1,016 859/1,016 808/969 Position (CLP millions) 193,743 92,244 253,947 152,584 USD/CAD collars Average contract price 1.34/1.38 1.33/1.38 1.30/1.40 — Position (CAD millions) 27 9 19 — USD/SEK collars Average contract price — — 10.35/11.15 — Position (SEK millions) — — 396 — ===== SIDA 73 ===== LUNDIN MINING CORPORATION Notes to condensed interim consolidated financial statements For the three and nine months ended September 30, 2023 and 2022 (Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 26 - Subsequent to September 30, 2023, the Company entered into BRL 185 million of BRL zero cost collar contracts with a collar range of BRL 5.10 to BRL 6.12 expiring throughout 2025. In April 2023, the Company entered into forward swap contracts intended to limit exposure to changes in the price of diesel fuel purchases at Candelaria. Expired in Expiring throughout: Diesel forward swap contracts 2023 remainder of 2023 2024 Average contract price ($/L) 0.690 0.690 0.667 Position (USD millions) 18 10 27 The Company’s net unrealized and realized (loss)/gain on foreign currency and diesel derivative contracts are as follows: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Unrealized (loss)/gain on derivative financial instruments: Foreign currency contracts $ (55,425) $ — $ (45,974) $ — Diesel forward swap contracts 7,921 — 4,733 — (47,504) — (41,241) — Realized gain on derivative financial instruments: Foreign currency contracts 11,310 — 39,795 — Diesel forward swap contracts 1,541 — 908 — 12,851 — 40,703 — Total unrealized and realized (loss)/gain on derivative contracts: $ (34,653) $ — $ (538) $ — A summary of the fair values of unsettled derivative contracts recorded on the consolidated balance sheet is as follows: September 30, 2023 December 31, 2022 Foreign currency contracts: Current asset position $ 18,809 $ 43,521 Non-current asset position 5,911 25,111 Current liability position 2,017 — Non-current liability position 5,603 5,524 Diesel forward swap contracts: Current asset position 4,272 — Non-current asset position 461 — Other contracts: Chapada derivative current liability 23,941 24,423 Chapada derivative non-current liability — 22,352 ===== SIDA 74 ===== LUNDIN MINING CORPORATION Notes to condensed interim consolidated financial statements For the three and nine months ended September 30, 2023 and 2022 (Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 27 - 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 September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Level Carrying value Fair value Carrying value Fair value Financial assets Fair value through profit or loss Restricted funds 1 $ 52,103 $ 52,103 $ 50,195 $ 50,195 Trade receivables (provisional) 2 490,967 490,967 403,300 403,300 Marketable securities, and debt & equity investments 1 12,520 12,520 12,075 12,075 Foreign currency contracts 2 24,720 24,720 68,632 68,632 Diesel forward swap contracts 2 4,733 4,733 — — Caserones purchase option (Note 3) 3 46,994 46,994 — — $ 632,037 $ 632,037 $ 534,202 $ 534,202 Financial liabilities Amortized cost Debt 3 $ 1,233,417 $ 1,233,417 $ 170,162 $ 170,162 Fair value through profit or loss Pricing provisions on concentrate sales 2 $ 12,761 $ 12,761 $ 5,006 $ 5,006 Chapada derivative liability 2 23,941 23,941 46,775 46,775 Caserones deferred consideration (Note 3) 2 114,530 114,530 — — Foreign currency contracts 2 7,620 7,620 5,524 5,524 $ 158,852 $ 158,852 $ 57,305 $ 57,305 Fair values of financial instruments are determined by valuation methods depending on hierarchy levels as defined below: Level 1 – Quoted market price in active markets for identical assets or liabilities. Level 2 – Inputs other than quoted market prices included within Level 1 that are observable for the assets or liabilities, either directly (i.e. observed prices) or indirectly (i.e. derived from prices). Level 3 – Inputs for the assets or liabilities are not based on observable market data. The Company calculates fair values based on the following methods of valuation and assumptions: Marketable securities/debt and equity investments/restricted funds – The fair value of investments in shares and bonds is determined based on the quoted market price. Trade receivables/pricing provisions on concentrate sales – The fair value of trade receivables that contain provisional pricing sales arrangements are valued using quoted forward market prices. The Company recognized negative pricing adjustments of $24.6 million in revenue during the three months ended September 30, 2023 (Q3 2022 - $64.2 million negative pricing adjustments) and negative pricing adjustments of $78.3 million in revenue during the nine months ended September 30, 2023 (YTD Q3 2022 - $198.2 million negative pricing adjustments). ===== SIDA 75 ===== LUNDIN MINING CORPORATION Notes to condensed interim consolidated financial statements For the three and nine months ended September 30, 2023 and 2022 (Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 28 - Foreign currency and diesel forward swap contracts – The fair value of these derivatives are determined by the counterparties to the contracts and are assessed by Management using pricing models based on active market prices. Caserones purchase option – The fair value of the Caserones purchase option is determined using a valuation model that incorporates such factors as the mine's discounted cash flow projections, metal price volatility, expiry date, and risk-free interest rate. Chapada derivative liability – The fair value of this derivative is determined using a valuation model that incorporates such factors as metal prices, metal price volatility, expiry date, and risk-free interest rate. Caserones deferred consideration – The fair value of the Caserones deferred consideration has been discounted at the estimated credit adjusted risk free rate applicable to future payments. Debt – The fair values approximate carrying values as the interest rates are comparable to current market rates. The carrying values of certain financial instruments maturing in the short-term approximate their fair values. These financial instruments include cash and cash equivalents, trade and other receivables other than those provisionally priced, and trade and other payables other than those provisionally priced, which are classified as amortized cost. Interest rate risk The Company's exposure to interest rate risk arises from the interest rate impact on its cash and cash equivalents, restricted funds, and debt facilities. Certain debt facilities include a variable rate component such as references to Term SOFR on various term loans and credit facilities, as well as applicable credit spreads depending on the Company's net leverage ratio. The Somincor commercial paper programs additionally reference EURIBOR. As at September 30, 2023, holding all other variables constant, a 1% change in the interest rate would result in an approximate $1.8 million change in interest expense over the nine months ended September 30, 2023 (September 30, 2022 - nil). 22. COMMITMENTS AND CONTINGENCIES a) The Company has capital commitments of $479.6 million on various initiatives, of which $129.8 million is expected to be paid during 2023. b) The Company may be involved in legal proceedings arising in the ordinary course of business, including the action described below. The potential amount of the liabilities with respect to such legal proceedings is not expected to materially affect the Company's financial position. c) Significant changes to commitments and contingencies, since those reported at December 31, 2022, are described below: i. In August 2023, the Company paid $25.0 million under the Chapada gold price contingent consideration structure. The maximum contingent consideration has since been reduced to $25.0 million. ii. With respect to the Ontario class action, the Ontario Court of Appeal overturned the decision of the Ontario Superior Court of Justice on May 24, 2023, and allowed the plaintiff’s appeal and granted the leave application. The Company filed an application for leave to appeal to the Supreme Court of Canada in August 2023. ===== SIDA 76 ===== LUNDIN MINING CORPORATION Notes to condensed interim consolidated financial statements For the three and nine months ended September 30, 2023 and 2022 (Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 29 - 23. SEGMENTED INFORMATION The Company is engaged in mining, exploration and development of mineral properties, primarily in Chile, Brazil, USA, Argentina, Portugal and Sweden. Operating segments are reported in a manner consistent with the internal reporting provided to executive management who act as the chief operating decision-maker. Executive management are responsible for allocating resources and assessing performance of the operating segments. ===== SIDA 77 ===== LUNDIN MINING CORPORATION Notes to condensed interim consolidated financial statements For the three and nine months ended September 30, 2023 and 2022 (Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 30 - For the three months ended September 30, 2023 Candelaria Caserones Chapada Eagle Josemaria Neves-Corvo Zinkgruvan Other Total Chile Chile Brazil USA Argentina Portugal Sweden Revenue $ 299,745 $ 284,556 $ 111,897 $ 102,505 $ — $ 111,202 $ 82,290 $ — $ 992,195 Cost of goods sold Production costs (175,468) (188,982) (78,854) (52,497) — (82,137) (37,183) 12 (615,109) Depreciation, depletion and amortization (70,368) (38,307) (12,813) (14,326) — (31,353) (12,380) (241) (179,788) Gross profit (loss) 53,909 57,267 20,230 35,682 — (2,288) 32,727 (229) 197,298 General and administrative expenses — — — — — — — (19,444) (19,444) General exploration and business development (2,341) (237) (3,940) (2,212) (255) (2,387) (550) (812) (12,734) Finance (costs) income (8,842) (4,031) (5,536) (1,080) 5,373 (3,439) (1,063) (17,594) (36,212) Other (expense) income (11,434) 15,110 (10,191) 545 15,788 (8,762) 1,797 (24,987) (22,134) Income tax (expense) recovery (39,727) (30,122) (11,380) (569) — 2,295 (6,850) 1,462 (84,891) Net (loss) earnings $ (8,435) $ 37,987 $ (10,817) $ 32,366 $ 20,906 $ (14,581) $ 26,061 $ (61,604) $ 21,883 Capital expenditures $ 86,693 $ 28,849 $ 16,716 $ 4,989 $ 63,194 $ 27,357 $ 12,350 $ 3,059 $ 243,207 For the nine months ended September 30, 2023 Candelaria Caserones Chapada Eagle Josemaria Neves-Corvo Zinkgruvan Other Total Chile Chile Brazil USA Argentina Portugal Sweden Revenue $ 970,576 $ 284,556 $ 317,736 $ 277,175 $ — $ 309,219 $ 172,808 $ — $ 2,332,070 Cost of goods sold Production costs (548,405) (188,982) (227,601) (143,681) — (243,943) (83,874) (1,585) (1,438,071) Depreciation, depletion and amortization (198,439) (38,307) (39,883) (38,147) (38) (89,152) (25,380) (1,194) (430,540) Gross profit (loss) 223,732 57,267 50,252 95,347 (38) (23,876) 63,554 (2,779) 463,459 General and administrative expenses — — — — — — — (49,452) (49,452) General exploration and business development (11,293) (237) (8,511) (4,241) (255) (5,720) (2,524) (8,411) (41,192) Finance (costs) income (25,138) (4,031) (17,252) (3,250) 12,178 (5,152) (3,250) (21,913) (67,808) Other (expense) income (14,231) 15,110 6,473 (458) 67,320 (5,809) (3,658) (7,275) 57,472 Income tax (expense) recovery (86,006) (30,122) 9,833 (4,115) (678) 11,640 (13,115) (1,420) (113,983) Net earnings (loss) $ 87,064 $ 37,987 $ 40,795 $ 83,283 $ 78,527 $ (28,917) $ 41,007 $ (91,250) $ 248,496 Capital expenditures $ 300,796 $ 28,849 $ 52,433 $ 15,653 $ 245,842 $ 74,551 $ 42,812 $ 8,303 $ 769,239 Total non-current assets1 $ 3,124,467 $ 1,187,661 $ 1,386,502 $ 208,040 $ 1,086,540 $ 1,125,232 $ 248,608 $ 37,703 $ 8,404,753 1 Non-current assets include long-term inventory, mineral properties, plant and equipment, and goodwill. ===== SIDA 78 ===== LUNDIN MINING CORPORATION Notes to condensed interim consolidated financial statements For the three and nine months ended September 30, 2023 and 2022 (Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 31 - For the three months ended September 30, 2022 Candelaria Chapada Eagle Josemaria Neves-Corvo Zinkgruvan Other Total Chile Brazil USA Argentina Portugal Sweden Revenue $ 255,330 $ 118,734 $ 106,715 $ — $ 102,865 $ 64,854 $ — $ 648,498 Cost of goods sold Production costs (168,602) (88,665) (47,736) — (94,572) (25,709) (530) (425,814) Depreciation, depletion and amortization (74,772) (12,218) (21,650) (335) (25,299) (5,442) (445) (140,161) Gross profit (loss) 11,956 17,851 37,329 (335) (17,006) 33,703 (975) 82,523 General and administrative expenses — — — — — — (14,772) (14,772) General exploration and business development (4,005) (3,564) (1,515) (60,965) (1,306) (295) (796) (72,446) Finance costs (6,644) (4,524) (480) (620) (1,153) (719) (1,100) (15,240) Other (expense) income (10,995) 1,066 (83) 29,278 (261) 3,410 (2,959) 19,456 Income tax recovery (expense) 379 (7,565) (1,461) 1,181 8,150 (11,408) (42) (10,766) Net (loss) earnings $ (9,309) $ 3,264 $ 33,790 $ (31,461) $ (11,576) $ 24,691 $ (20,644) $ (11,245) Capital expenditures $ 103,486 $ 19,197 $ 3,062 $ 43,264 $ 19,362 $ 8,415 $ 2,702 $ 199,488 For the nine months ended September 30, 2022 Candelaria Chapada Eagle Josemaria Neves-Corvo Zinkgruvan Other Total Chile Brazil USA Argentina Portugal Sweden Revenue $ 974,875 $ 335,599 $ 363,412 $ — $ 330,970 $ 224,942 $ — $ 2,229,798 Cost of goods sold Production costs (489,575) (239,849) (142,422) — (250,830) (85,963) (1,792) (1,210,431) Depreciation, depletion and amortization (218,792) (31,808) (60,403) (623) (70,123) (28,951) (1,340) (412,040) Gross profit (loss) 266,508 63,942 160,587 (623) 10,017 110,028 (3,132) 607,327 General and administrative expenses — — — — — — (37,442) (37,442) General exploration and business development (10,286) (8,349) (2,439) (101,243) (5,110) (2,015) (2,817) (132,259) Finance costs (20,539) (13,622) (1,421) (785) (5,303) (2,462) (3,389) (47,521) Other (expense) income (9,413) (2,900) (73) 53,547 1,873 10,776 11,298 65,108 Income tax (expense) recovery (78,011) (7,149) (17,619) 199 3,444 (34,659) (3,180) (136,975) Net earnings (loss) $ 148,259 $ 31,922 $ 139,035 $ (48,905) $ 4,921 $ 81,668 $ (38,662) $ 318,238 Capital expenditures $ 272,557 $ 63,412 $ 10,445 $ 98,198 $ 77,461 $ 31,537 $ 8,058 $ 561,668 Total non-current assets1 $ 2,903,931 $ 1,355,447 $ 253,991 $ 793,336 $ 1,039,626 $ 222,431 $ 25,212 $ 6,593,974 1 Non-current assets include long-term inventory, mineral properties, plant and equipment, investment in associates and goodwill. ===== SIDA 79 ===== LUNDIN MINING CORPORATION Notes to condensed interim consolidated financial statements For the three and nine months ended September 30, 2023 and 2022 (Unaudited - Tabular amounts in thousands of US dollars, except for shares and per share amounts) - 32 - 24. RELATED PARTY TRANSACTIONS a) Transactions with associates - The Company may enter into transactions related to its investment in associate. These transactions are entered into in the normal course of business and on an arm’s length basis. b) 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 September 30, Nine months ended September 30, 2023 2022 2023 2022 Wages and salaries $ 1,947 $ 2,064 $ 5,368 $ 5,323 Pension benefits 28 49 105 136 Share-based compensation 816 55 2,282 2,192 Termination benefits 3,966 1,891 5,760 1,891 $ 6,757 $ 4,059 $ 13,515 $ 9,542 c) Other related parties - For the three and nine months ended September 30, 2023, the Company incurred $0.8 million (Q3 2022 - $nil) and $1.5 million (YTD Q3 2022 – $nil), respectively, for services provided by a company owned by a member of key management personnel. 25. SUPPLEMENTARY CASH FLOW INFORMATION Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Changes in non-cash working capital items consist of: Trade and income taxes receivable, inventories, and other current assets $ 67,696 $ (125,790) $ 125,405 $ 37,218 Trade and income taxes payable, and other current liabilities (80,351) (19,216) (77,045) (21,107) $ (12,655) $ (145,006) $ 48,360 $ 16,111 Operating activities included the following cash payments: Income taxes paid $ 21,247 $ 58,250 $ 94,187 $ 271,587 ===== SIDA 80 ===== Registered Office 40 Temperance Street, Suite 3200, Toronto ON M5H 0B4 Canada Mailing Address 885 West Georgia Street, Suite 2000, Vancouver, BC V6C 3E8 Tel: +1.604.806.3081 lundinmining.com