FULLTEXT DEL 2 AV 2
Kvartalsrapport Q3 2023
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