FULLTEXT DEL 1 AV 2
Kvartalsrapport Q3 2024
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Corporate Office
1055 Dunsmuir Street
Suite 2800, Bentall IV
Vancouver, BC V7X 1L2
Phone +1 604 689 7842
lundinmining.com
NEWS RELEASE
Lundin Mining Third Quarter 2024 Results
Vancouver, November 6, 2024 (TSX: LUN; Nasdaq Stockholm: LUMI) Lundin Mining Corporation (“Lundin Mining” or
the “Company”) today reported its third quarter 2024 financial results. Unless otherwise stated, results are presented in
United States dollars on a 100% basis.
Jack Lundin, President and CEO commented, “Our overall performance has contributed to another near record quarter
for revenue and copper production for the Company and we are on track to meeting full -year consolidated copper
guidance. Operationally, Candelaria had an excellent third quarter producing 50,000 tonnes of copper driven by planned
higher copper head grades. This was one of Candelaria's strongest quarters and materially contributed to our success.
"During the quarter the Company realized two significant growth opportunities. We increased our ownership at our
Caserones copper-molybdenum mine from 51% to 70%, which immediately added attributable copper production to the
Company. Caserones, located within the Vicuña District, is a long -life mine that yields strong cash flow generation. It is
within this District where we also announced a transformational transaction with BHP to jointly acquire Filo Corp. and
form a new joint arrangement incorporating the world-class Filo del Sol Project and the Josemaria Project in Argentina to
create a top -tier multi -generational mining complex. Filo shareholders have overwhelmingly voted in favour of the
transaction which is expected to close in the first quarter of 2025. Around the time of closing, we will also provide an
update to the market on the key milestones and next steps to advance these projects.
"On exploration we are ramping up for another drill season in the Vicuña District. We will continue the near-mine campaign
at Caserones and follow up on our Cumbre Verde target near Josemaria. During the quarter we continued to drill near -
mine targets at our other operations with the objective to replace resources, add mine life and seek out future expansion
opportunities, such as the Saúva resource located near our Chapada operation.
“As we enter the final quarter of 2024, we have tightened the production guidance ranges at our sites and are re-affirming
our full-year consolidated production guidance for copper and gold. For our other metals, we have marginally reduced
our full year guidance for zinc and are maintaining our revised nickel guidance.”
Third Quarter Operational and Financial Highlights
• Copper Production: Consolidated production of 99,855 tonnes of copper in the third quarter.
• Other Production: During the quarter, a total of 46,610 tonnes of zinc, 893 tonnes of nickel and approximately
47,000 ounces of gold were produced.
• Revenue: $1,073.0 million in the third quarter with a realized copper price1 of $4.29 /lb and a realized zinc price1 of
$1.29 /lb.
• Net Earnings and Adjusted Earnings 1: Net earnings attributable to shareholders of the Company were $101.2
million or $0.13 per share in the third quarter with adjusted earnings of $72.5 million or $0.09 per share.
• Adjusted EBITDA1: $457.7 million generated during the quarter.
• Cash Generation: Cash provided by operating activities was $139.3 million and adjusted operating cash flow 1 was
$305.2 million, excluding the impact of a working capital build of $165.9 million.
• Growth: During the quarter the Company announced two significant transactions:
◦ On July 2, 2024, the Company closed the option to increase ownership in Caserones to 70%, which adds
approximately 23,000 tonnes of additional attributable copper production to the Company’s production
profile2. The consideration of $350 million was fully funded through an increase to the Company’s term loan
from $800 million to $1.15 billion.
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 ("MD&A") for the three and nine months ended September 30, 2024 and the Reconciliation of Non -GAAP measures section at the end of this
news release.
2 Based on Caserones 2024 revised production guidance as outlined in the outlook section of the MD&A for the three and nine months ended September
30, 2024.
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◦ On July 29, 2024, Lundin Mining and BHP announced the joint acquisition of Filo Corp. Lundin Mining and
BHP will form a 50/50 joint arrangement to hold the Filo del Sol Project and Lundin Mining’s Josemaria
Project. The partnership will create a multi-generational mining district with world-class potential that could
support a globally ranked mining complex.
• Outlook: The Company's full year production and cash cost guidance update is as follows:
◦ Copper: Annual copper production guidance ranges have been tightened for several of the assets and the
new consolidated copper guidance for the year is now 366,000 to 389,000 tonnes compared to the previous
range of 366,000 to 400,000 tonnes. The Company is on tr ack to meet full year consolidated copper
guidance.
◦ Zinc: Annual production guidance for Zinkgruvan has been increased which was offset by adjustments to
zinc guidance at Neves-Corvo. New consolidated zinc guidance for the year has been adjusted to 190,000 to
199,000 tonnes from 195,000 tonnes to 215,000 tonnes.
◦ Gold: Annual gold guidance has remained unchanged incorporating an increase in guidance at Chapada
offset by a reduction at Candelaria.
◦ Cash Costs: Forecast annual cash cost guidance at Chapada and Zinkgruvan has improved while cash cost
guidance at Eagle has been adjusted upwards. All other sites remain unchanged.
◦ Sustaining Capital Expenditures1: Sustaining capital will be reduced by $75 million and is expected to total
$720 million (previously $795 million ) for the year, primarily due to reductions in planned spending at
Candelaria and Caserones. The Josemaria Project guidance has increased by $5 million to $230 million and
exploration guidance increased by $ 7 million to $55.0 million for 2024. The increase in exploration
expenditure is primarily due to accelerating exploration efforts at Caserones where drilling is targeting
higher-grade copper breccia bodies to improve grades in the resource, as well as follow -up drilling at
Cumbre Verde after positive results in the first half of 2024.
Summary Financial Results
Three months ended
September 30,
Nine months ended
September 30,
US$ Millions (except per share amounts) 2024 2023 2024 2023
Revenue 1,073.0 992.2 3,093.6 2,332.1
Gross profit 291.8 197.3 756.7 463.5
Attributable net earningsa 101.2 (3.0) 236.6 202.8
Net earnings 127.8 21.9 343.1 248.5
Adjusted earningsa,b 72.5 85.3 239.8 256.5
Adjusted EBITDAb 457.7 415.1 1,281.4 943.8
Basic earnings per share ("EPS")a 0.13 0.00 0.31 0.26
Diluted EPSa 0.13 0.00 0.30 0.26
Adjusted EPSa,b 0.09 0.11 0.31 0.33
Cash provided by operating activities 139.3 303.8 898.6 710.5
Adjusted operating cash flowb 305.2 316.5 988.7 662.2
Adjusted operating cash flow per shareb 0.39 0.41 1.28 0.86
Free cash flow from operationsb 1.7 136.5 406.9 228.3
Free cash flowb (61.8) 71.1 173.3 (47.7)
Cash and cash equivalents 295.5 357.3 295.5 357.3
Net debt excluding lease liabilitiesb 1,541.7 880.9 1,541.7 880.9
Net debtb
1,802.5 1,158.9 1,802.5 1,158.9
a Attributable to shareholders of Lundin Mining Corporation.
b These are non-GAAP measures. Please refer to the Company's discussion of non -GAAP and other performance measures in its Management's Discussion
and Analysis for the three and nine months ended September 30, 2024 and the Reconciliation of Non-GAAP Measures section at the end of this news release.
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 ("MD&A") for the three and nine months ended September 30, 2024 and the Reconciliation of Non -GAAP measures section at the end of this
news release.
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• The Company generated revenue of $1,073.0 million during the quarter, driven by 90,069 tonnes of copper sold at a
realized price of $4.29 /lb. Revenue benefited from higher realized copper, gold, and zinc prices, partially offset by
$5.3 million negative provisional pricing adjustments on prior period concentrate sales.
• Gross profit of $291.8 million and Adjusted EBITDA of $457.7 million in the quarter reflect higher realized copper, zinc
and gold prices partially offset by decreases in zinc and nickel sales volumes.
• Net earnings attributable to shareholders of the Company were $101.2 million or $0.13 per share in the quarter.
• Adjusted earnings attributable to shareholders of the Company for the quarter were $72.5 million or $0.09 per share
after removing $30.6 million unrealized gains on derivative contracts and adding $14.8 million in expenses relating to
the partial suspension of underground operations at Eagle, among other things.
• Cash and cash equivalents as at September 30, 2024 were $295.5 million. Cash provided by operating activities
amounted to $139.3 million and cash used to fund investing activities amounted to $264.5 million. The Company had
a net debt excluding lease liabi lities1 balance of $1,541.7 million as at September 30, 2024 (December 31, 2023 -
$946.2 million).
• Free cash flow1 for the quarter of $(61.8) million was impacted by $165.9 million of working capital outflows as a result
of timing of sales at Candelaria and Chapada.
• As at November 6, 2024, the Company had a cash balance of approximately $ 466.1 million and a net debt excluding
lease liabilities balance of approximately $1,362.6 million.
Operational Performance
Total Production
(Contained
metal)a
2024 2023
YTD Q3 Q2 Q1 Total Q4 Q3 Q2 Q1
Copper (t)b 267,576 99,855 79,708 88,013 314,798 103,337 89,942 60,057 61,462
Zinc (t) 139,758 46,610 47,460 45,688 185,161 50,719 49,774 36,115 48,553
Nickel (t) 5,869 893 1,721 3,255 16,429 3,729 4,290 4,686 3,724
Gold (koz)b 112 47 32 33 149 44 35 34 36
Molybdenum (t)b 2,271 693 714 864 2,024 928 1,096 — —
a. Tonnes (t) and thousands of ounces (koz)
b. Candelaria and Caserones production is on a 100% basis.
Candelaria (80% owned): Candelaria produced 50,018 tonnes of copper and approximately 29,000 ounces of gold in
concentrate on a 100% basis during the quarter. Production in the quarter was positively impacted by higher copper head
grades from Phase 11. Access to higher grade Phase 11 ore is anticipated to continue through most of the fourth quarter of
2024 as per the planned mine sequence. Production costs in the quarter were higher than in the prior year quarter due to
higher copper sales, but also partially offset by favourable foreign exchange. Cash cost of $1.55/lb was positively impacted
by higher sales volumes, favourable foreign exchange and favourable by-product credits.
Caserones (70% owned): Caserones produced 29,033 tonnes of total copper and 693 tonnes of molybdenum on a 100%
basis during the quarter. Copper and molybdenum production in the quarter was impacted by labour action in August
lasting 14 days which reduced throughput during that period to approximately 50% of capacity. Lower head grades were
realized during the quarter as a result of a higher proportion of ore from Phase 6 due to hydrogeologic conditions in Phase
5. Production costs in the quarter were lower than in the prior year comparable period due to lower copper concentrate
and molybdenum volumes and favourable foreign exchange. Cash cost of $2.96/lb was negatively impacted by lower sales
volumes as a result of the labour action.
Chapada (100% owned): Chapada produced 11,694 tonnes of copper and approximately 18,000 ounces of gold in
concentrate during the quarter. Copper production was positively impacted by higher throughput that was offset by lower
grades and recoveries as a result of processing of stockpiled ore as part of an optimized mine plan that significantly reduces
waste movement. Gold production reflected higher grades as a result of increased ore mined from the South and Central
pits replacing older low -grade stockpiles . Production costs increased due to higher sales volumes, partially offset by
favourable foreign exchange. Cash cost of $1.37/lb benefited from higher gold by -product credits and favourable foreign
exchange combined with mining cost decreases due to operational improvements.
Eagle (100% owned): Eagle produced 893 tonnes of nickel and 1,027 tonnes of copper in the quarter. Production has been
impacted by the fall of ground in the lower ramp in Eagle East during the second quarter of 2024 which restricted access to
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 ("MD&A") for the three and nine months ended September 30, 2024 and the Reconciliation of Non -GAAP measures section at the end of this
news release.
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Eagle East, and reduced mining rates until ramp rehabilitation is completed. Normal throughput rates are expected to
resume in late 2024. Production costs were reduced by lower sales and production volumes leading to reduced spend in
milling, transportation and lower royalty expense. Production costs in the quarter excluded approximately $14.8 million of
overhead costs that have been recorded in Other Income and Expense as a result of the partial suspension of underground
mining operations. Nickel cash cost1 of $7.24/lb was impacted by lower sales volumes, partially offset by higher by-product
credits as a result of higher realized copper prices.
Neves-Corvo (100% owned): Neves-Corvo produced 6,698 tonnes of copper and 29,509 tonnes of zinc during the quarter.
Copper production was impacted by lower throughput and grades. The decrease in throughput and grades is attributed to
changes in mine sequencing as a result of adjustments made to the mining method and cable bolting requirements.
Additional development wor k in Lombador North and rehabilitation work also limited ore availability. Zinc production
benefitted from higher throughput and recoveries as a result of the zinc e xpansion project. During the month of August,
there was a record in shaft hoisting of 440,000 tonnes over the month, in addition to record zinc production of 10,527 tonnes.
During the month of September, the daily shaft hoisting of 19,000 tonnes set a new record for the min e. Production costs
increased due to an increase in zinc and lead sales volumes and cash cost of $2.13/lb benefitted from higher by-product
credits.
Zinkgruvan (100% owned): Zinkgruvan produced 17,101 tonnes of zinc and 5,693 tonnes of lead in the quarter reflecting
lower grades and throughput which were driven by changes in mine sequencing from operational and maintenance
interruptions. Copper production of 1,385 tonnes in the quarter reflected higher throughput. Production costs decreased
due to lower sales volumes and zinc cash cost of $0.16/lb benefitted from higher copper by -product credits as a result of
higher realized copper prices.
Outlook
Annual guidance for 2024 has been updated from that disclosed in the Company's Management's Discussion and Analysis
for the three and six months ended June 30, 2024.
The Company remains on track to meet annual consolidated copper production guidance. The total production guidance
range for copper has been tightened with the top end of the range at Candelaria increased as a result of continued access
to higher grade ore in the second half of the year. Copper production guidance ranges at Caserones and Neves-Corvo have
been tightened and lowered slightly. At Caserones, this reflects the impact of the labour action during the quarter that
reduced operations for 14 days. At Neves-Corvo, changes in mine sequencing due to rehabilitation and development efforts
led to the change in guidance.
Total production guidance for zinc has been revised, guidance range for Zinkgruvan increased slightly and the guidance
range for Neves-Corvo reduced as a result of rehabilitation and development work impacting mine sequencing. Annual gold
guidance has remained unchanged, incorporating an increase in guidance at Chapada offset by a reduction at Candelaria.
For molybdenum, the guidance range has increased to reflect expected results according to the mine plan.
Cash cost guidance at Chapada and Zinkgruvan was lowered with cash costs continuing to benefit from increased realized
prices on by-product sales and weaker local currencies. Cash cost guidance at Eagle has increased due to reduced mining
rates following a fall of ground that continues to limit production.
Annual sustaining capital expenditure guidance has been lowered to $720 million from $795 million with reductions
primarily at Caserones and Candelaria. Expenditure guidance related to the Josemaria Project of $230 million and
exploration guidance of $55.0 million have been revised for 2024. The increase in exploration expenditure is primarily due
to accelerating exploration efforts at Caserones where drilling is targeting the higher-grade copper breccia bodies to improve
grades in the resource, as well as follow-up drilling at Cumbre Verde after positive results in the first half of 2024.
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2024 Production and Cash Cost Guidance
Previous Guidancea Revised Guidance
(contained metal) Production Cash Cost ($/lb)b Production Cash Cost ($/lb)b
Copper (t) Candelaria (100%) 160,000 – 170,000 1.60 – 1.80c 165,000 – 173,000 1.60 – 1.80c
Caserones (100%) 124,000 – 135,000 2.60 – 2.80 121,000 – 125,000 2.60 – 2.80
Chapada 43,000 – 48,000 1.95 – 2.15d 43,000 – 48,000 1.55 – 1.65d
Eagle 5,000 – 7,000 6,000 – 8,000
Neves-Corvo 30,000 – 35,000 1.95 – 2.15c 27,000 – 30,000 1.95 – 2.15c
Zinkgruvan 4,000 – 5,000 4,000 – 5,000
Total 366,000 – 400,000 366,000 – 389,000
Zinc (t) Neves-Corvo 120,000 – 130,000 111,000 – 116,000
Zinkgruvan 75,000 – 85,000 0.45 – 0.50c 79,000 – 83,000 0.40 – 0.45c
Total 195,000 – 215,000 190,000 – 199,000
Nickel (t) Eagle 7,000 – 9,000 3.20 – 3.40 7,000 – 9,000 3.70 – 3.90
Gold (koz) Candelaria (100%) 100 – 110 92 – 102
Chapada 55 – 60 63 – 68
Total 155 – 170 155 – 170
Molybdenum (t) Caserones (100%) 2,500 - 3,000 2,800 – 3,300
a. Guidance as outlined in the Company's Management Discussion and Analysis ("MD&A") for the three and six months ended June 30, 2024.
b. Cash costs are based on various assumptions and estimates, including but not limited to: production volumes, commodity prices (Cu: $3.75/lb, Zn:
$1.10/lb, Pb: $0.90/lb, Au: $1,800/oz, Mo: $20.00/lb, Ag: $23.00/oz), foreign exchange rates (€/USD:1.05, USD/SEK:10.50, USD/ CLP:850, USD/BRL:5.00) and
production costs. Cash cost is a non-GAAP measure - see the Company's Management Discussion and Analysis for the three and nine months ended
September 30, 2024 and the Reconciliation of Non-GAAP Measures at the end of this news release.
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 $ 429/oz gold and $4.28/oz to $4.68/oz silver.
d. Chapada's cash cost is calculated on a by-product basis and does not include the effects of its copper stream agreements. Effects of the copper stream
agreements are reflected in copper revenue and will impact realized price per pound.
2024 Capital Expenditure Guidanceb
($ millions) Previous Guidancea Revisions Revised Guidance
Candelaria (100% basis) 300 (25) 275
Caserones (100% basis) 175 (40) 135
Chapada 110 — 110
Eagle 25 — 25
Neves-Corvo 115 (5) 110
Zinkgruvan 70 (5) 65
Other — — —
Total Sustaining 795 (75) 720
Josemaria (Expansionary) 225 5 230
Total Capital Expenditures 1,020 (70) 950
a. Guidance as outlined in the Company's Management Discussion and Analysis ("MD&A") for the three and six months ended June 30,
2024.
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 nine months ended September 30, 2024 and the Reconcil iation of Non-GAAP
Measures at the end of this news release.
Exploration
During the quarter, exploration activity focused on in-mine and near-mine targets at the Company's operations. Exploration
drilling at Zinkgruvan was focused on resource expansion and drilling at Candelaria was focused on Soplona, La Portuguesa
and La Española . Drilling at Chapada concentrated on adding high grade resources to Saúva and testing near -mine
geochemical and geophysical anomalies in Cava Norte, Santa Cruz, Castanhal and Jatoba.
At Caserones, exploration activity remains lower during the winter season. Exploration drilling continues in the lower portion
of the mineral resource in search of higher -grade copper breccia bodies that could improve the average grade of the
===== SIDA 6 =====
resource, and potentially expand it. Preparations to restart near -mine drilling at Angelica were made at the end of the
quarter.
At Josemaria, preparations are underway to recommence the drilling campaign at Cumbre Verde.
Drilling started at Eagle during the quarter with two surface holes targeting a geophysical anomaly east of Eagle East. Drilling
also commenced during the quarter at Neves -Corvo and focused on extending inferred resources at Lombador North and
near-mine drilling at Neves Southwest.
About Lundin Mining
Lundin Mining is a diversified Canadian base metals mining company with projects or operations in Argentina, Brazil, Chile,
Portugal, Sweden and the United States of America, primarily producing copper, zinc, nickel and gold.
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 6, 2024 at 14:30 Vancouver Time.
For further information, please contact:
Stephen Williams, Vice President, Investor Relations +1 604 806 3074
Robert Eriksson, Investor Relations Sweden: +46 8 440 54 40
Technical Information
The scientific and technical information in this press release has been prepared in accordance with the disclosure standards
of National Instrument 43 -101 (“NI 43 -101”) and has been reviewed by Patrick Merrin, P .Eng., Executive Vice President,
Technical Services, a "Qualified Person" under NI 43 -101. Mr. Merrin has verified the data disclosed in this release and no
limitations were imposed on his verification process.
Reconciliation of Non-GAAP Measures
The Company uses certain performance measures in its analysis. These performance measures have no standardized
meaning within generally accepted accounting principles under International Financial Reporting Standards and,
therefore, amounts presented may not be comparable to similar data presented by other mining companies. For
additional details please refer to the Company’s discussion of non-GAAP and other performance measures in its
Management’s Discussion and Analysis for the three and nine months ended September 30, 2024 which is available on
SEDAR+ at www.sedarplus.com.
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Cash Cost per Pound and All-in Sustaining Costs per pound can be reconciled to Production Costs on the Company's
Condensed Interim Consolidated Statement of Earnings as follows:
Three months ended September 30, 2024
Operations Candelaria Caserones Chapada Eagle Neves-
Corvo
Zinkgruvan
($000s, unless otherwise
noted)
(Cu) (Cu) (Cu) (Ni) (Cu) (Zn) Total
Sales volumes (Contained
metal):
Tonnes 45,430 22,044 12,380 393 7,707 15,124
Pounds (000s) 100,155 48,599 27,293 866 16,991 33,342
Production costs
581,117
Less: Royalties and other (19,133)
561,984
Deduct: By-product credits (221,753)
Add: Treatment and refining 43,833
Cash cost 155,069 144,062 37,302 6,273 36,159 5,199 384,064
Cash cost per pound ($/lb) 1.55 2.96 1.37 7.24 2.13 0.16
Add: Sustaining capital 60,118 22,895 20,487 7,940 26,288 15,546
Royalties 4,519 6,354 2,643 162 1,226 —
Reclamation and other
closure accretion and
depreciation
2,416 1,061 2,374 1,473 1,381 1,149
Leases & other 1,625 17,773 956 1,489 147 79
All-in sustaining cost 223,747 192,145 63,762 17,337 65,201 21,973
AISC per pound ($/lb) 2.23 3.95 2.34 20.02 3.84 0.66
Three months ended September 30, 2023
Operations Candelaria Caserones Chapada Eagle Neves-
Corvo
Zinkgruvan
($000s, unless otherwise
noted)
(Cu) (Cu) (Cu) (Ni) (Cu) (Zn) Total
Sales volumes (Contained
metal):
Tonnes 33,668 30,385 11,445 3,640 8,799 22,042
Pounds (000s) 74,225 66,987 25,232 8,025 19,398 48,594
Production costs
615,109
Less: Royalties and other (21,662)
Inventory fair value
adjustment
(32,185)
561,262
Deduct: By-product credits (216,150)
Add: Treatment and refining 56,261
Cash cost 162,672 106,866 57,501 16,598 44,043 13,693 401,373
Cash cost per pound ($/lb) 2.19 1.60 2.28 2.07 2.27 0.28
Add: Sustaining capital 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 22,229 865 797 131 86
All-in sustaining cost 254,555 166,627 79,365 32,511 74,048 27,140
AISC per pound ($/lb) 3.43 2.49 3.15 4.05 3.82 0.56
===== SIDA 8 =====
Nine months ended September 30, 2024
Operations Candelaria Caserones Chapada Eagle Neves-
Corvo
Zinkgruvan
($000s, unless otherwise
noted)
(Cu) (Cu) (Cu) (Ni) (Cu) (Zn) Total
Sales volumes (Contained
metal):
Tonnes 108,965 87,117 29,415 4,574 21,491 49,459
Pounds (000s) 240,226 192,060 64,849 10,084 47,379 109,038
Production costs
1,754,677
Less: Royalties and other (61,427)
1,693,250
Deduct: By-product credits (597,173)
Add: Treatment and refining 129,361
Cash cost 438,494 481,756 113,607 39,903 107,898 43,780 1,225,438
Cash cost per pound ($/lb) 1.83 2.51 1.75 3.96 2.28 0.40
Add: Sustaining capital 220,194 100,977 74,927 15,998 76,622 43,188
Royalties 11,038 24,443 5,891 6,746 3,168 —
Reclamation and other
closure accretion and
depreciation
6,441 3,195 7,780 5,033 4,036 3,286
Leases & other 7,684 51,773 2,496 4,258 405 235
All-in sustaining cost 683,851 662,144 204,701 71,938 192,129 90,489
AISC per pound ($/lb) 2.85 3.45 3.16 7.13 4.06 0.83
Nine months ended September 30, 2023
Operations Candelaria Caserones Chapada Eagle Neves-
Corvo
Zinkgruvan
($000s, unless otherwise
noted)
(Cu) (Cu) (Cu) (Ni) (Cu) (Zn) Total
Sales volumes (Contained
metal):
Tonnes 105,585 30,385 30,681 10,234 23,000 48,028
Pounds (000s) 232,775 66,987 67,640 22,562 50,706 105,883
Production costs
1,438,071
Less: Royalties and other (41,717)
Inventory fair value
adjustment
(32,185)
1,364,169
Deduct: By-product credits (495,751)
Add: Treatment and refining 125,390
Cash cost 507,884 106,866 165,170 47,228 128,206 38,454 993,808
Cash cost per pound ($/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 22,229 3,002 2,441 437 288
All-in sustaining cost 825,418 166,627 232,788 92,024 210,144 84,365
AISC per pound ($/lb) 3.55 2.49 3.44 4.08 4.14 0.80
===== SIDA 9 =====
Adjusted EBITDA can be reconciled to Net Earnings (Loss) on the Company's Condensed Interim Consolidated Statement
of Earnings as follows:
Three months ended
September 30,
Nine months ended
September 30,
($thousands) 2024 2023 2024 2023
Net earnings 127,829 21,883 343,117 248,496
Add back:
Depreciation, depletion and amortization 200,074 179,788 582,224 430,540
Finance income and costs 39,152 36,212 111,153 67,808
Income taxes 96,940 84,891 203,668 113,983
463,995 322,774 1,240,162 860,827
Unrealized foreign exchange loss (gain) 12,901 9,096 574 (1,545)
Unrealized losses (gains) on derivative contracts (30,613) 47,504 18,245 41,241
Ojos del Salado sinkhole (recoveries) expenses 871 (1,247) 550 15,235
Revaluation loss (gain) on marketable securities (3,957) 3,449 (6,472) (453)
Caserones inventory fair value adjustment — 32,185 — 32,185
Partial suspension of underground operations at Eagle 14,813 — 24,637 —
Revaluation of Chapada derivative liability — 370 307 2,166
Revaluation of Caserones purchase option — — (11,728) —
Write-down of capital works in progress 781 — 17,969 —
Gain on disposal of subsidiary — — — (5,718)
Other (1,108) 990 (2,847) (120)
Total adjustments - EBITDA (6,312) 92,347 41,235 82,991
Adjusted EBITDA 457,683 415,121 1,281,397 943,818
Adjusted Earnings and Adjusted EPS can be reconciled to Net Earnings (Loss) Attributable to Lundin Mining Shareholders on
the Company's Condensed Interim Consolidated Statement of Earnings as follows:
Three months ended
September 30,
Nine months ended
September 30,
($thousands, except share and per share amounts) 2024 2023 2024 2023
Net earnings attributable to Lundin Mining shareholders 101,160 (2,964) 236,632 202,765
Add back:
Total adjustments - EBITDA (6,312) 92,347 41,235 82,991
Tax effect on adjustments (8,135) (20,758) (7,921) (23,938)
Deferred tax expense due to change in tax rate — 25,700 — 25,700
Deferred tax arising from foreign exchange translation (12,387) 12,317 (32,353) (15,972)
Non-controlling interest on adjustments (1,867) (18,734) 2,164 (18,665)
Other (1) (2,648) — 3,645
Total adjustments (28,702) 88,224 3,125 53,761
Adjusted earnings 72,458 85,260 239,757 256,526
Basic weighted average number of shares outstanding 776,794,756 773,147,920 774,574,731 772,214,160
Net earnings (loss) attributable to shareholders 0.13 — 0.31 0.26
Total adjustments (0.04) 0.11 — 0.07
Adjusted earnings per share 0.09 0.11 0.31 0.33
===== SIDA 10 =====
Free Cash Flow from Operations and Free Cash Flow can be reconciled to Cash provided by Operating Activities on the
Company's Condensed Interim Consolidated Statement of Cash Flows as follows:
Three months ended
September 30,
Nine months ended
September 30,
($thousands) 2024 2023 2024 2023
Cash provided by operating activities 139,275 303,812 898,576 710,531
Sustaining capital expenditures (151,173) (180,013) (532,236) (523,397)
General exploration and business development 13,620 12,734 40,607 41,192
Free cash flow from operations 1,722 136,533 406,947 228,326
General exploration and business development (13,620) (12,734) (40,607) (41,192)
Expansionary capital expenditures (49,926) (52,662) (193,027) (234,831)
Free cash flow (61,824) 71,137 173,313 (47,697)
Adjusted Operating Cash Flow and Adjusted Operating Cash Flow per Share can be reconciled to Cash Provided by Operating
Activities on the Company's Condensed Interim Consolidated Statement of Cash Flows as follows:
Three months ended
September 30,
Nine months ended
September 30,
($thousands, except share and per share amounts) 2024 2023 2024 2023
Cash provided by operating activities 139,275 303,812 898,576 710,531
Changes in non-cash working capital items 165,901 12,655 90,140 (48,360)
Adjusted operating cash flow 305,176 316,467 988,716 662,171
Basic weighted average number of shares outstanding 776,794,756 773,147,920 774,574,731 772,214,160
Adjusted operating cash flow per share $ 0.39 0.41 1.28 0.86
Net debt and net debt excluding lease liabilities can be reconciled to Debt and Lease Liabilities, Current Portion of Debt and
Lease Liabilities and Cash and Cash Equivalents on the Company's condensed interim consolidated balance sheet as follows:
($thousands) September 30, 2024 December 31, 2023
Debt and lease liabilities (1,692,718) (1,273,162)
Current portion of total debt and lease liabilities (397,141) (212,646)
Less deferred financing fees (netted in above) (8,230) (6,374)
(2,098,089) (1,492,182)
Cash and cash equivalents 295,540 268,793
Net debt (1,802,549) (1,223,389)
Lease liabilities 260,895 277,208
Net debt excluding lease liabilities (1,541,654) (946,181)
===== SIDA 11 =====
Cautionary Statement on Forward-Looking Information
Certain of the statements made and information contained herein are “forward -looking information” within the meaning of applicable Canadian securities laws. All
statements other than statements of historical facts included in this document constitute forward-looking information, including but not limited to statements regarding
the Company’s plans, prospects 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, Pre -Feasibility Study, Feasibility Study, or Mineral Resource and Mineral Reserve estimations, li fe of mine estimates, and 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 Mining Management
System; the Company’s ability to compl y with contractual and permitting or other regulatory requirements; anticipated exploration and development activities at the
Company’s projects; expansion projects and the realization of additional value; expectations regarding, including the ability and timing to complete, the acquisition of
Filo Corp. and the establishment and operation of a 50/50 joint arrangement with BHP and the anticipated project development and other plans and expectations with
respect to such acquisition and joint arrangement; the Company’s integration of acquisitions and expansions and any anticipated benefits thereof; and expectations for
other economic, business, and/or competitive factors. Words such as “believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “goal”, “aim”, “intend”, “continue”,
“budget”, “estimate”, “may”, “will”, “can”, “could”, “should”, “schedule” and similar expressions identify forward -looking information.
Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation, the expectatio ns and beliefs of management,
including that the Company can access financing, appropriate equipment and sufficient labour; assumed and future price of copper, zinc, gold, nickel and other metals;
anticipated costs; ability to achieve goals; the prompt and effective integration of acquisitions, including the completion of the acquisition of Filo Corp., the establishment
of the 50/50 joint arrangement with BHP and the realization of synergies and economies of scale in connection therewith; that the po litical environment in which the
Company operates will continue to support the development and operation of mining projects; and a ssumptions 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 e xperience and perception of current
conditions and expected developments, these statements are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known
and unknown factors could cause actual results to differ materially from those projected in the forward -looking information and undue reliance should not be placed
on such information. Such factors include, but are not limited to: global financial conditions, market volatility and inflati on, including pricing and availability of key
supplies and services; risks inherent in m ining including but not limited to risks to the environment, industrial accidents, catastrophic equipment failures, unusual o r
unexpected geological formations or unstable ground conditions, and natural phenomena such as earthquakes, flooding or unusually severe weather; uninsurable risks;
volatility and fluctuations in metal and commodity demand and prices; significant reliance on assets in Chile; reputation ris ks related to negative publicity with respect
to the Company or the mining industry in general; delays or the inability to obtain, retain or comply with permits; risks relating to the development of the Josemaria
Project; health and safety laws and regulations; risks associated with climate change; risks relating to indebtedness; 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, nationalization or expropriation without
fair compensation, environmental and tailings manage ment, labour, trade relations, and transportation; inability to attract and retain highly skilled employees; risks
inherent in and/or associated with operating in foreign countries and emerging markets, including with respect to foreign exchange and capital controls; project financing
risks, liquidity risks and limited financial resources; health and safety risks; compliance with environmental, unavailable o r inaccessible infrastructure, infrastructure
failures, and risks related to ageing infrastructure; c hanging taxation regimes; the inability to effectively compete in the industry; the inability to currently control Filo
Corp. and the ability to satisfy the relevant conditions and complete the acquisition of Filo Corp. and establish the 50/50 j oint arrangement with BHP on the proposed
terms and schedule; risks associated with acquisitions, expansions 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; 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 cybersecurity 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 process ing efficiency; community and stakeholder
opposition; regulatory investigations, enforcement, sanctions and/or related or other litigation; financial projections, including estimates of future expenditures and cash
costs, and estimates of future production may not be reliabl e; enforcing legal rights in foreign jurisdictions; risks associated with the use of derivatives; risks relating to
joint ventures, joint arrangements and operations; environmental and regulatory risks associated with the structural stabilit y of waste rock dumps or tailings storage
facilities; exchange rate fluctuations; compliance with foreign laws; potential for the allegation of fraud and corruption in volving the Company, its customers, suppliers
or employees, or the allegation of improper or discriminat ory employment practices, or human rights violations; risks relating to dilution; risks relating to payment of
dividends; counterparty and customer concentration risks; activist shareholders and proxy solicitation matters; estimation of asset carrying valu es; relationships with
employees and contractors, and the potential for and effects of labour disputes or other unanticipated difficulties with or s hortages of labour or interruptions in
production; conflicts of interest; existence of significant sharehold ers; challenges or defects in title; internal controls; risks relating to minor elements contained in
concentrate products; the threat associated with outbreaks of viruses and infectious diseases; mining rates and rehabilitatio n projects; mill shut downs; and other risks
and uncertainties, including but not limited to those described in the "Risks and Uncertainties” section of the Company’s MD& A for the three and nine months ended
September 30, 2024 and the “Risks and Uncertainties” section of the Company’s Annual Information Form for the year ended December 31, 2023, which are available
on SEDAR+ at www.sedarplus.com under the Company’s profile.
All of the forward-looking information 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, forecasted or intended and readers are cautioned that the foregoing list is not exhaustive of all fac tors and assumptions which may have been
used. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those
described in forward -looking information. Accordingly, there can be no assurance that forward -looking i nformation 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 12 =====
Management’s Discussion and Analysis
For the three and nine months ended September 30, 2024
This management’s discussion and analysis (“MD&A”) has been prepared as of November 6, 2024 and should be read in
conjunction with the Company’s condensed interim consolidated financial statements for the three and nine months ended
September 30, 2024. Those financial statements are prepared in accordance with International Financial Reporting
Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”) and which the Canadian
Accounting Standards Board has approved for incorporation into Part 1 of the CPA Canada Handbook - Accounting,
including IAS 34 Interim Financial Reporting. The Company’s presentation currency is United States (“US”) dollars.
Reference herein of $ or USD is to United States dollars, ARS is to Argentine pesos, BRL is to Brazilian reais, C$ is to Canadian
dollars, CLP is to Chilean pesos, € refers to euros, and SEK is to Swedish kronor. "This quarter" or "The quarter" means the
third quarter ("Q3") of 2024. "Year-to-date" or "Year-to-date period" means the nine months ended September 30, 2024.
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, nickel and gold.
Table of Contents
Highlights ................................................................................................................................................................................ 1
Outlook ................................................................................................................................................................................... 6
Selected Quarterly Financial Information .............................................................................................................................. 8
Summary of Quarterly Results ............................................................................................................................................... 9
Revenue Overview .................................................................................................................................................................. 10
Financial Results ..................................................................................................................................................................... 14
Mining Operations .................................................................................................................................................................. 17
Production Overview ........................................................................................................................................................ 17
Production Cost and Cash Cost Overview ........................................................................................................................ 18
Capital Expenditures ......................................................................................................................................................... 19
Candelaria ......................................................................................................................................................................... 20
Caserones .......................................................................................................................................................................... 21
Chapada ............................................................................................................................................................................ 22
Eagle .................................................................................................................................................................................. 23
Neves-Corvo ...................................................................................................................................................................... 24
Zinkgruvan ......................................................................................................................................................................... 25
Josemaria Project ................................................................................................................................................................... 26
Exploration Update ................................................................................................................................................................. 26
Liquidity and Capital Resources .............................................................................................................................................. 27
Non-GAAP and Other Performance Measures ....................................................................................................................... 30
Other Information and Advisories .......................................................................................................................................... 37
Outstanding Share Data ......................................................................................................................................................... 38
===== SIDA 13 =====
Cautionary Statement on Forward-Looking Information
Certain of the statements made and information contained herein are “forward-looking information” within the meaning of applicable Canadian securities laws. All statements
other than statements of historical facts included in this document constitute forward-looking information, including but not limited to statements regarding the Company’s
plans, prospects 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, Pre-Feasibility
Study, Feasibility Study, or Mineral Resource and Mineral Reserve estimations, life of mine estimates, and mine and mine closure plans; anticipated market prices of metals,
currency exchange rates and interest rates; the development and implementation of the Company’s Responsible Mining 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; expansion projects and the
realization of additional value; expectations regarding, including the ability and timing to complete, the acquisition of Filo Corp. and the establishment and operation of a 50/50
joint arrangement with BHP and the anticipated project development and other plans and expectations with respect to such acquisition and joint arrangement; the Company’s
integration of acquisitions and expansions and any anticipated benefits thereof; and expectations for other economic, business, and/or competitive factors. Words such as
“believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “goal”, “aim”, “intend”, “continue”, “budget”, “estimate”, “may”, “will”, “can”, “could”, “should”, “schedule”
and similar expressions identify forward-looking information.
Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation, the expectations and beliefs of management, including
that the Company can access financing, appropriate equipment and sufficient labour; assumed and future price of copper, zinc, gold, nickel and other metals; anticipated costs;
ability to achieve goals; the prompt and effective integration of acquisitions, including the completion of the acquisition of Filo Corp., the establishment of the 50/50 joint
arrangement with BHP and the realization of synergies and economies of scale in connection therewith; 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. Known and unknown factors could cause actual
results to differ materially from those projected in the forward-looking information and undue reliance should not be placed on such information. Such factors include, but are
not limited to: 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 failures, unusual or unexpected geological formations or unstable ground conditions, and
natural phenomena such as earthquakes, flooding or unusually severe weather; uninsurable risks; volatility and fluctuations in metal and commodity demand and prices;
significant reliance on assets in Chile; reputation risks related to negative publicity with respect to the Company or the mining industry in general; delays or the inability to
obtain, retain or comply with permits; risks relating to the development of the Josemaria Project; health and safety laws and regulations; risks associated with climate change;
risks relating to indebtedness; 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, nationalization or expropriation without fair compensation, environmental and tailings management, labour, trade relations, and
transportation; inability to attract and retain highly skilled employees; risks inherent in and/or associated with operating in foreign countries and emerging markets, including
with respect to foreign exchange and capital controls; project financing risks, liquidity risks and limited financial resources; health and safety risks; compliance with
environmental, unavailable or inaccessible infrastructure, infrastructure failures, and risks related to ageing infrastructure; changing taxation regimes; the inability to effectively
compete in the industry; the inability to currently control Filo Corp. and the ability to satisfy the relevant conditions and complete the acquisition of Filo Corp. and establish the
50/50 joint arrangement with BHP on the proposed terms and schedule; risks associated with acquisitions, expansions 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; 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 cybersecurity 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; regulatory investigations, enforcement, sanctions and/or related or other litigation; financial projections, including estimates of future expenditures and
cash costs, and estimates of future production may not be reliable; enforcing legal rights in foreign jurisdictions; risks associated with the use of derivatives; risks relating to joint
ventures, joint arrangements and operations; environmental and regulatory risks associated with the structural stability of waste rock dumps or tailings storage facilities;
exchange rate fluctuations; compliance with foreign laws; potential for the allegation of fraud and corruption involving the Company, its customers, suppliers or employees, or
the allegation of improper or discriminatory employment practices, or human rights violations; risks relating to dilution; risks relating to payment of dividends; counterparty and
customer concentration risks; activist shareholders and proxy solicitation matters; estimation of asset carrying values; 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
significant shareholders; challenges or defects in title; internal controls; risks relating to minor elements contained in concentrate products; the threat associated with outbreaks
of viruses and infectious diseases; mining rates and rehabilitation projects; mill shut downs; and other risks and uncertainties, including but not limited to those described in the
"Risks and Uncertainties” section of this MD&A and the “Risks and Uncertainties” section of the Company’s Annual Information Form for the year ended December 31, 2023,
which are available on SEDAR+ at www.sedarplus.com under the Company’s profile.
All of the forward-looking information in this document is qualified by these cautionary statements. Although the Company has attempted to identify important factors that
could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated,
estimated, forecasted or intended and readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Should one or
more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking
information. Accordingly, there can be no assurance that forward-looking information will prove to be accurate and forward-looking information is not a guarantee of future
performance. Readers are advised not to place undue reliance on forward-looking information. The forward-looking information contained herein speaks only as of the date of
this document. The Company disclaims any intention or obligation to update or revise forward-looking information or to explain any material difference between such and
subsequent actual events, except as required by applicable law.
===== SIDA 14 =====
Highlights
During the quarter, the Company produced 99,855 tonnes of copper, 46,610 tonnes of zinc, and 47 thousand ounces ("koz")
of gold. This production coupled with other metals produced and sold during the quarter, generated strong quarterly
revenue of $1,073.0 million (Q3 2023 - $992.2 million), gross profit of $291.8 million (Q3 2023 - $197.3 million) and adjusted
EBITDA1 of $457.7 million (Q3 2023 - $415.1 million).
The Company had a net debt excluding lease liabilities1 balance of $1,541.7 million as at September 30, 2024 (December 31,
2023 - $946.2 million).
The Company expects to achieve annual production guidance for copper, nickel, gold, and molybdenum as published in the
MD&A for the three and six months ended June 30, 2024 and has tightened guidance ranges for several of the assets. Total
production guidance for zinc has been revised with the guidance range for Zinkgruvan increased slightly and the guidance
range for Neves-Corvo reduced as a result of rehabilitation and development work impacting mine sequencing.
Operational Performance
Candelaria (80% owned): Candelaria produced 50,018 tonnes of copper and approximately 29,000 ounces of gold in
concentrate on a 100% basis during the quarter. Production in the quarter was positively impacted by planned higher
grades from Phase 11. Access to higher grade Phase 11 ore is anticipated to continue through most of the fourth quarter of
2024 as per the planned mine sequence. Production costs in the quarter were higher than in the prior year quarter due to
higher copper sales, but also partially offset by favourable foreign exchange. Cash cost1 of $1.55/lb was positively impacted
by higher sales volumes, favourable foreign exchange and favourable by-product credits.
Caserones (70% owned): Caserones produced 29,033 tonnes of total copper and 693 tonnes of molybdenum on a 100%
basis during the quarter. Copper and molybdenum production in the quarter was impacted by labour action in August
lasting 14 days which reduced throughput during that period to approximately 50% of capacity. Lower head grades were
realized during the quarter as a result of a higher proportion of ore from Phase 6 due to hydrogeologic conditions in Phase
5. Production costs in the quarter were lower than in the prior year comparable period due to lower copper concentrate
and molybdenum volumes and favourable foreign exchange. Cash cost of $2.96/lb was negatively impacted by lower sales
volumes as a result of the labour action.
Chapada (100% owned): Chapada produced 11,694 tonnes of copper and approximately 18,000 ounces of gold in
concentrate during the quarter. Copper production was positively impacted by higher throughput that was offset by lower
grades and recoveries as a result of processing of stockpiled ore as part of an optimized mine plan that significantly reduces
waste movement. Gold production reflected higher grades as a result of increased ore mined from the South and Central
pits replacing older low-grade stockpiles. Production costs increased due to higher sales volumes, partially offset by
favourable foreign exchange. Cash cost of $1.37/lb benefitted from higher gold by-product credits and favourable foreign
exchange combined with mining cost decreases due to operational improvements.
Eagle (100% owned): Eagle produced 893 tonnes of nickel and 1,027 tonnes of copper in the quarter. Production has been
impacted by the fall of ground in the lower ramp in Eagle East during the second quarter of 2024 which restricted access to
Eagle East, and reduced mining rates until ramp rehabilitation is completed. Normal throughput rates are expected to
resume in late 2024. Production costs were reduced by lower sales and production volumes leading to reduced spend in
milling, transportation and lower royalty expense. Production costs in the quarter excluded approximately $14.8 million of
overhead costs that have been recorded in Other Income and Expense as a result of the partial suspension of underground
mining operations. Nickel cash cost of $7.24/lb was impacted by lower sales volumes, partially offset by higher by-product
credits as a result of higher realized copper prices1.
Neves-Corvo (100% owned): Neves-Corvo produced 6,698 tonnes of copper and 29,509 tonnes of zinc during the quarter.
Copper production was impacted by lower throughput and grades. The decrease in throughput and grades is attributed to
changes in mine sequencing as a result of adjustments made to the mining method and cable bolting requirements.
Additional development work in Lombador North and rehabilitation work also limited ore availability. Zinc production
benefitted from higher throughput and recoveries as a result of the zinc expansion project. During the month of August,
there was a record in shaft hoisting of 440,000 tonnes over the month, in addition to record zinc production of 10,527
tonnes. During the month of September, the daily shaft hoisting of 19,000 tonnes set a new record for the mine. Production
1
1 This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
===== SIDA 15 =====
costs increased due to an increase in zinc and lead sales volumes . Cash cost during the quarter of $2.13/lb benefitted from
higher by-product credits.
Zinkgruvan (100% owned): Zinkgruvan produced 17,101 tonnes of zinc and 5,693 tonnes of lead in the quarter impacted by
lower grades and throughput which were driven by changes in mine sequencing from operational and maintenance
disruptions. Copper production of 1,385 tonnes in the quarter reflected higher throughput. Production costs decreased due
to lower sales volumes. Zinc cash cost of $0.16/lb benefitted from higher copper by-product credits as a result of higher
realized copper prices.
Total Productiona
2024 2023
YTD Q3 Q2 Q1 Total Q4 Q3 Q2 Q1
Copper (t)b 267,576 99,855 79,708 88,013 314,798 103,337 89,942 60,057 61,462
Zinc (t) 139,758 46,610 47,460 45,688 185,161 50,719 49,774 36,115 48,553
Nickel (t) 5,869 893 1,721 3,255 16,429 3,729 4,290 4,686 3,724
Gold (koz)b 112 47 32 33 149 44 35 34 36
Molybdenum (t)b 2,271 693 714 864 2,024 928 1,096 — —
a - Tonnes(t) and thousands of ounces (koz).
b - Candelaria and Caserones production are on a 100% basis. Caserones results in 2023 are from July 13, 2023.
2
===== SIDA 16 =====
Corporate Updates
• On July 29, 2024, the Company entered into an agreement with BHP and Filo Corp (“Filo”) to jointly acquire all the
issued and outstanding shares of Filo (the “Arrangement”) not already owned by Lundin Mining and BHP. Under the
terms of the Arrangement, Filo shareholders may choose to receive in exchange for each Filo share C$33.00 in cash,
2.3578 Lundin Mining shares or any combination thereof, subject to aggregate caps. Lundin Mining’s share of the
consideration for the Arrangement is approximately C$2,148 million ($1,550 million), consisting of up to C$859 million
in cash and C$1,289 million in Lundin Mining shares. The Arrangement was approved by Filo shareholders on
September 26, 2024. Closing is expected to occur in the first quarter of 2025 subject to regulatory approvals and other
customary closing conditions for transactions of this nature. Concurrently with the completion of the Arrangement,
Lundin Mining and BHP will form a 50/50 joint arrangement (the “Joint Arrangement”) to hold the Filo del Sol project
and Lundin Mining’s Josemaria project. BHP will pay Lundin Mining cash consideration of $690 million, subject to
certain adjustments, as consideration for Lundin Mining contributing the Josemaria project to the Joint Arrangement.
• On July 2, 2024, the Company completed the exercise of its option to acquire an additional 19% interest in the issued
and outstanding equity of SCM Minera Lumina Copper Chile (“Lumina Copper”), bringing the Company's ownership in
Caserones from 51% to 70%. The acquisition was initially financed by a $350 million draw from the Company's revolving
credit facility ("RCF"). On August 2, 2024 the draw was repaid with proceeds from a $350 million increase in the
Company's existing $800 million term loan (the "Term Loan"), currently maturing on July 27, 2027, and increasing the
principal amount to $1,150 million.
• On May 23, 2024, the Company amended the terms of the RCF and the Term Loan to establish sustainability
performance targets whereby the interest rate margin in the facilities will be adjusted based on the Company's
performance relative to the targets. In July 2024, the Company published its 2023 Sustainability Report which highlights
the Company's material environment, health & safety, governance and social performance during the year.
• On February 12, 2024, the Company reported an employee fatality at the Neves-Corvo Mine in Portugal. Operations
were voluntarily suspended and restarted on February 15, 2024.
• On February 8, 2024, the Company reported its Mineral Resource and Mineral Reserve estimates as at December 31,
2023 (or as otherwise specified) and on January 14, 2024, the Company provided its 2024 production and cost guidance
and reaffirmed the three year production outlook.
3
===== SIDA 17 =====
Financial Performance
• Gross profit for the quarter was $291.8 million which was $94.5 million higher than in the prior year comparable period
of $197.3 million. The increase in the quarter is due to higher realized copper, gold and zinc prices. On a year-to-date
basis, gross profit was $756.7 million, an increase of $293.2 million from the prior year comparable period of $463.5
million. The increases in the year-to-date period were primarily a result of the acquisition of Caserones in July 2023 and
higher realized copper, gold and zinc prices.
• For the quarter and year-to-date periods, net earnings of $127.8 million and $343.1 million, respectively, were higher
than in the prior year comparable periods primarily due to higher gross profit.
• Adjusted earnings1 of $72.5 million for the quarter were $12.8 million lower than in the prior year comparable period of
$85.3 million as a result of higher income taxes as a result of higher taxable earnings, the introduction of the mining
royalty tax for Candelaria, and utilization of tax losses at Caserones. Adjusted earnings for the nine months ended
September 30, 2024 amounted to $239.8 million, a decrease of $16.7 million from the prior year comparable period of
$256.5 million, also due to higher income taxes as a result of the same factors mentioned for the quarter.
• Cash provided by operating activities of $139.3 million for the quarter was $164.5 million lower than in the prior year
comparable period of $303.8 million. On a year-to-date basis, cash provided by operating activities of $898.6 million
represented an increase of $188.1 million from the prior year comparable period of $710.5 million. The decrease in the
quarter compared to the prior period is due to large outflows of working capital as a result of the timing of sales at
Candelaria and Chapada during the current period. The increase in the year-to-date compared to the prior period was
primarily due to higher realized copper, gold and zinc prices, inclusion of Caserones operating cash flows, partially
offset by larger outflows of working capital.
• For the quarter, sustaining capital expenditures1 of $151.2 million were $28.8 million lower than in the prior year
comparable period of $180.0 million primarily as a result of lower sustaining capital expenditure at Candelaria due to
timing and lower deferred stripping. On a year-to-date basis, sustaining capital expenditures of $532.2 million were
higher than in the prior year comparable period of $523.4 million primarily due to the addition of Caserones' sustaining
capital expenditures which includes prior year expenditures incurred from the acquisition date in July 2023, and higher
sustaining capital expenditures at Chapada partially offset by Candelaria's lower sustaining capital expenditures.
Expansionary capital expenditures 1 of $49.9 million for the quarter and $193.0 million for the year-to-date were lower
than in the prior year comparable periods of $52.7 million and $234.8 million, respectively, as a result of reduced
spending on the Josemaria Project.
• Free cash flow from operations 1 for this quarter of $1.7 million was lower than in the prior year comparable period of
$136.5 million primarily due to $165.9 million of outflows of working capital as a result of the timing of sales at
Candelaria and Chapada during the current period. Free cash flow from operations for the year-to-date of $406.9
million was higher than in the prior year comparable period of $228.3 million primarily as a result of higher realized
copper, gold and zinc prices and the inclusion of Caserones operating cash flows partially offset by larger working
capital outflows.
Financial Position and Financing
• Cash and cash equivalents as at September 30, 2024 were $295.5 million, a decrease during the quarter of $157.3
million. Cash provided by operating activities amounted to $139.3 million, which was impacted by $165.9 million of
negative working capital as a result of the timing of sales at Candelaria and Chapada during the current period. Cash
used to fund investing activities amounted to $264.5 million, including the $41.7 million payment for the acquisition of
Filo shares and the $25.0 million settlement for the Chapada derivative liability. Cash used in financing activities was
comprised primarily of funds used to exercise the Company's option to acquire an additional 19% interest in Caserones
for $350.0 million, which was funded from debt proceeds, $63.0 million in distributions paid to non-controlling
interests, and the $10.0 million payment of Caserones deferred consideration.
4
1 This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
===== SIDA 18 =====
• As at September 30, 2024, the Company had a net debt1 balance of $1,802.5 million and a net debt excluding lease
liabilities1 balance of $1,541.7 million.
• As at November 6, 2024 , the Company had a cash balance of approximately $ 466.1 million and a net debt excluding
lease liabilities balance of approximately $1,362.6 million.
5
===== SIDA 19 =====
Outlook
Annual guidance for 2024 has been updated from that disclosed in the Company's Management's Discussion and Analysis
for the three and six months ended June 30, 2024.
The Company remains on track to meet annual consolidated copper production guidance as published in the MD&A for the
three and six months ended June 30, 2024. Additionally, the total production guidance range for copper has been tightened
with the top end of the range at Candelaria increased as a result of continued access to higher grade ore in the second half
of the year. Copper production guidance ranges at Caserones and Neves-Corvo have been tightened and lowered slightly.
At Caserones, this reflects the impact of the labour action during the quarter that reduced operations for 14 days. At Neves-
Corvo, changes in mine sequencing due to rehabilitation and development efforts led to the change in guidance.
Total production guidance for zinc has been revised with the guidance range for Zinkgruvan increased slightly and the
guidance range for Neves-Corvo reduced as a result of rehabilitation and development work impacting mine sequencing.
Annual gold guidance has remained unchanged, incorporating an increase in guidance at Chapada offset by a reduction at
Candelaria. For molybdenum, the guidance range has increased to reflect expected results according to the mine plan.
Cash cost guidance at Chapada and Zinkgruvan was lowered with cash costs continuing to benefit from increased realized
prices on by-product sales and weaker local currencies. Cash cost guidance at Eagle has increased due to reduced mining
rates following a fall of ground that continues to limit production.
Annual sustaining capital expenditure guidance has been lowered to $720 million from $795 million with reductions
primarily at Caserones and Candelaria. Expenditure guidance related to the Josemaria Project of $ 230 million and
exploration guidance of $55.0 million have been revised for 2024. The increase in exploration expenditure is primarily due
to accelerating exploration efforts at Caserones where drilling is targeting the higher-grade copper breccia bodies to
improve grades in the resource, as well as follow-up drilling at Cumbre Verde after positive results in the first half of 2024 at
Josemaria.
2024 Production and Cash Cost Guidance
Guidancea Revised Guidance
(contained metal) Production Cash Cost ($/lb)b Production Cash Cost ($/lb)b
Copper (t) Candelaria (100%) 160,000 – 170,000 1.60 – 1.80c 165,000 – 173,000 1.60 – 1.80c
Caserones (100%) 124,000 – 135,000 2.60 – 2.80 121,000 – 125,000 2.60 – 2.80
Chapada 43,000 – 48,000 1.95 – 2.15d 43,000 – 48,000 1.55 – 1.65d
Eagle 5,000 – 7,000 6,000 – 8,000
Neves-Corvo 30,000 – 35,000 1.95 – 2.15c 27,000 – 30,000 1.95 – 2.15c
Zinkgruvan 4,000 – 5,000 4,000 – 5,000
Total 366,000 – 400,000 366,000 – 389,000
Zinc (t) Neves-Corvo 120,000 – 130,000 111,000 – 116,000
Zinkgruvan 75,000 – 85,000 0.45 – 0.50c 79,000 – 83,000 0.40 – 0.45c
Total 195,000 – 215,000 190,000 – 199,000
Nickel (t) Eagle 7,000 – 9,000 3.20 – 3.40 7,000 – 9,000 3.70 – 3.90
Gold (koz) Candelaria (100%) 100 – 110 92 – 102
Chapada 55 – 60 63 – 68
Total 155 – 170 155 – 170
Molybdenum (t) Caserones (100%) 2,500 - 3,000 2,800 – 3,300
a. Guidance as outlined in the MD&A for the three and six months ended June 30, 2024.
b. Cash costs are based on various assumptions and estimates, including but not limited to: production volumes, commodity prices (Cu: $3.75/lb, Zn:
$1.10/lb, Pb: $0.90/lb, Au: $1,800/oz, Mo: $20.00/lb, Ag: $23.00/oz), foreign exchange rates (€/USD:1.05, USD/SEK:10.50, USD/CLP:850, USD/BRL:5.00)
and production costs. Cash cost is a non-GAAP measure - see section 'Non-GAAP and Other Performance Measures' of this MD&A for discussion.
c. 68% of Candelaria's total gold and silver production are subject to a streaming agreement, and silver production at Zinkgruvan and Neves-Corvo are also
subject to streaming agreements. Cash costs are calculated based on receipt of approximately $429/oz gold and $4.28/oz to $4.68/oz silver.
d. Chapada's cash cost is calculated on a by-product basis and does not include the effects of its copper stream agreements. Effects of the copper stream
agreements are reflected in copper revenue and will impact realized price per pound.
6
===== SIDA 20 =====
2024 Capital Expenditure Guidanceb
($ millions) Guidancea Revisions Revised Guidance
Candelaria (100% basis) 300 (25) 275
Caserones (100% basis) 175 (40) 135
Chapada 110 — 110
Eagle 25 — 25
Neves-Corvo 115 (5) 110
Zinkgruvan 70 (5) 65
Other — — —
Total Sustaining 795 (75) 720
Expansionary - Josemaria 225 5 230
Total Capital Expenditures 1,020 (70) 950
a. Guidance as outlined in the MD&A for the three and six months ended June 30, 2024.
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.
2024 Exploration Investment Guidance
Total exploration expenditure guidance for 2024 is $55.0 million, which has been increased from previous guidance of $48.0
million.
7
===== SIDA 21 =====
Selected Quarterly Financial Information
Three months ended
September 30,
Nine months ended
September 30,
($ millions, except share and per share amounts) 2024 2023 2024 2023
Revenue 1,073.0 992.2 3,093.6 2,332.1
Costs of goods sold:
Production costs (581.1) (615.1) (1,754.7) (1,438.1)
Depreciation, depletion and amortization (200.1) (179.8) (582.2) (430.5)
Gross profit 291.8 197.3 756.7 463.5
Net earnings (loss) attributable to:
Lundin Mining shareholders 101.2 (3.0) 236.6 202.8
Non-controlling interests 26.7 24.8 106.5 45.7
Net earnings 127.8 21.9 343.1 248.5
Adjusted earnings1,2 72.5 85.3 239.8 256.5
Adjusted EBITDA1 457.7 415.1 1,281.4 943.8
Cash provided by operating activities 139.3 303.8 898.6 710.5
Adjusted operating cash flow1 305.2 316.5 988.7 662.2
Free cash flow from operations1 1.7 136.5 406.9 228.3
Free cash flow1 (61.8) 71.1 173.3 (47.7)
Capital expenditures3 205.4 243.2 735.8 769.2
Per share amounts:
Basic earnings (loss) per share ("EPS") attributable to
shareholders 0.13 0.00 0.31 0.26
Diluted earnings (loss) per share ("EPS") attributable to
shareholders 0.13 0.00 0.30 0.26
Adjusted EPS1,2 0.09 0.11 0.31 0.33
Adjusted operating cash flow per share1 0.39 0.41 1.28 0.86
Dividends declared (C$/share) 0.09 0.09 0.27 0.27
September 30,
2024
December 31,
2023
Total assets 11,077.7 10,861.2
Total debt and lease liabilities 2,089.9 1,485.8
Net debt excluding lease liabilities1
1,541.7 946.2
1 This is a non-GAAP measure - see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.
2 2023 amounts have been adjusted from those presented in the Company's MD&A for the three and nine months ended September 30, 2023.
3 Capital expenditures are reported on a cash basis, as presented in the consolidated statement of cash flows.
8
===== SIDA 22 =====
Summary of Quarterly Results1
($ millions, except per share data) Q3-24 Q2-24 Q1-24 Q4-23 Q3-23 Q2-23 Q1-23 Q4-22
Revenue 1,073.0 1,083.6 937.0 1,060.0 992.2 588.5 751.3 811.4
Gross profit 291.8 279.5 185.4 188.9 197.3 52.8 213.3 155.2
Net earnings profit (loss) 127.8 156.7 58.6 66.8 21.9 61.3 165.3 145.3
- attributable to shareholders 101.2 121.6 13.9 38.8 (3.0) 59.1 146.6 145.6
Adjusted (loss) earnings2 72.5 122.1 45.2 79.7 85.3 45.6 125.7 191.5
Adjusted EBITDA2 457.7 460.9 362.9 419.7 415.1 191.8 336.9 353.7
EPS - Basic and Diluted 0.13 0.16 0.02 0.05 0.00 0.08 0.19 0.19
Adjusted EPS2 0.09 0.16 0.06 0.10 0.11 0.06 0.16 0.25
Cash flow from operations 139.3 491.8 267.5 306.1 303.8 194.8 211.9 156.9
Adjusted operating cash flow per share2 0.39 0.48 0.41 0.47 0.41 0.14 0.30 0.38
Capital expenditure3
205.4 258.5 271.9 243.9 243.2 279.9 246.1 281.2
1 The sum of quarterly amounts may differ from year-to-date results due to rounding.
2 This is a non-GAAP measure - see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.
3 Capital expenditures are reported on a cash basis, as presented in the consolidated statement of cash flows.
On a quarterly basis the Company's revenue, gross profit and net earnings can be impacted by metal prices, sales volumes
as a result of the timing of concentrate shipments, and provisional pricing adjustments on current and prior period
shipments.
The acquisition of the Caserones mine in July 2023 contributed to an increase in gross profit and cash flow from operations
in Q3 2023 and in subsequent quarters. Additionally, fair value adjustments of $32.2 million and $7.8 million were recorded
in production costs in Q3 2023 and Q4 2023, respectively, as in-process and concentrate inventory measured at fair value at
the acquisition date was sold. The $800 million three-year Term Loan entered into in conjunction with the acquisition as
well as the $350 million accordion as part of the purchase of the remaining 19% has increased the Company's interest
expense in Q3 2023 through Q3 2024, reducing net earnings.
In May 2024, a fall of ground in the lower ramp at the Eagle mine reduced mining rates while ramp rehabilitation was
completed. This resulted in lower revenue as well as $9.8 million and $14.8 million of overhead costs incurred in Q2 2024
and Q3 2024, respectively, reducing net earnings.
During 2022, inflationary price increases were experienced for electricity, diesel and consumables. In 2023 and continuing
into Q3 2024, input prices stabilized, and in some cases lowered. These trends impacted gross profit and net earnings in the
quarters presented above.
A non-cash write-down, including depreciation, of long-term ore stockpile inventory at Chapada of $66.8 million was
recognized in Q4 2022, reducing net earnings.
In the quarters presented, the Company has entered into derivative contracts for foreign currency, diesel, and copper prices
as part of its risk management strategy. Realized and unrealized gains and losses on derivative contracts and foreign
exchange and trading gains on debt and equity investments are recorded in other income and impact the Company's net
earnings.
9
===== SIDA 23 =====
Revenue Overview
Sales Volumes by Payable Metal
2024 2023
YTD Q3 Q2 Q1 Total Q4 Q3 Q2 Q1
Copper (t)
Candelaria (100%) 108,965 45,430 29,999 33,536 144,473 38,888 33,668 36,347 35,570
Caserones (100%)1 87,117 22,044 29,862 35,211 66,075 35,690 30,385 — —
Chapada 29,415 12,380 8,293 8,742 43,761 13,080 11,445 10,164 9,072
Eagle 4,580 733 1,789 2,058 11,968 3,055 3,177 2,951 2,785
Neves-Corvo 21,491 7,707 7,898 5,886 32,054 9,054 8,799 6,170 8,031
Zinkgruvan 3,352 1,775 821 756 4,473 845 1,758 1,001 869
254,920 90,069 78,662 86,189 302,804 100,612 89,232 56,633 56,327
Zinc (t)
Neves-Corvo 67,374 25,730 20,440 21,204 91,115 25,491 21,957 20,125 23,542
Zinkgruvan 49,459 15,124 18,510 15,825 65,344 17,316 22,042 9,374 16,612
116,833 40,854 38,950 37,029 156,459 42,807 43,999 29,499 40,154
Nickel (t)
Eagle 4,574 393 2,018 2,163 13,339 3,105 3,640 3,859 2,735
Gold (koz)
Candelaria (100%) 62 26 17 19 87 23 19 23 22
Chapada 43 19 12 12 53 18 13 11 11
105 45 29 31 140 41 32 34 33
Molybdenum (t)
Caserones (100%)1 2,112 581 695 836 2,019 978 1,041 — —
Lead (t)
Neves-Corvo 4,377 1,811 1,242 1,324 4,970 1,830 1,220 881 1,039
Zinkgruvan 20,250 6,346 9,069 4,835 25,527 5,714 9,391 4,944 5,478
24,627 8,157 10,311 6,159 30,497 7,544 10,611 5,825 6,517
Silver (koz)
Candelaria (100%) 1,242 511 331 400 1,322 415 279 333 295
Chapada 75 24 30 21 129 37 32 29 31
Eagle 7 (1) 7 1 24 8 6 4 6
Neves-Corvo 627 188 215 224 821 265 227 158 171
Zinkgruvan 1,386 492 597 297 1,892 449 713 331 399
3,337 1,214 1,180 943 4,188 1,174 1,257 855 902
1 Caserones 2023 results are from July 13, 2023.
10
===== SIDA 24 =====
Revenue Analysis
Three months ended September 30, Nine months ended September 30,
by Mine 2024 2023 Change 2024 2023 Change
($ thousands) $ % $ % $ $ % $ % $
Candelaria (100%) 473,049 44 299,745 31 173,304 1,169,821 38 970,576 42 199,245
Caserones (100%)1 227,896 22 284,556 29 (56,660) 890,654 29 284,556 12 606,098
Chapada 159,966 15 111,897 11 48,069 376,370 12 317,736 14 58,634
Eagle 12,217 1 102,505 10 (90,288) 126,884 4 277,175 12 (150,291)
Neves-Corvo 131,237 12 111,202 11 20,035 340,542 11 309,219 13 31,323
Zinkgruvan 68,633 6 82,290 8 (13,657) 189,293 6 172,808 7 16,485
1,072,998 992,195 80,803 3,093,564 2,332,070 761,494
1 Caserones 2023 results are from July 13, 2023.
Three months ended September 30, Nine months ended September 30,
by Metal 2024 2023 Change 2024 2023 Change
($ thousands) $ % $ % $ $ % $ % $
Copper1 810,979 75 682,918 70 128,061 2,328,391 74 1,603,552 70 724,839
Zinc 98,565 9 86,901 9 11,664 257,530 8 220,853 9 36,677
Molybdenum1 23,828 2 48,698 5 (24,870) 91,442 3 48,698 2 42,744
Gold 94,972 9 53,684 5 41,288 211,040 7 161,759 7 49,281
Nickel 6,214 1 73,188 7 (66,974) 82,582 3 195,449 8 (112,867)
Lead 15,005 1 22,328 2 (7,323) 47,984 2 44,836 2 3,148
Silver 17,490 2 13,670 1 3,820 48,150 2 32,558 1 15,592
Other 5,945 1 10,808 1 (4,863) 26,445 1 24,365 1 2,080
1,072,998 992,195 80,803 3,093,564 2,332,070 761,494
1 Caserones 2023 results are from July 13, 2023.
Revenue for the quarter was $1,073.0 million which was higher than the prior year comparable period due to higher
realized copper, gold, and zinc prices, partially offset by $5.3 million in negative provisional pricing adjustments on prior
period concentrate sales . On a year-to-date basis, revenue of $3,093.6 million was an increase of $761.5 million over the
prior year comparable period. Revenue increases were primarily due to the inclusion of Caserones copper and molybdenum
revenues and increases in realized copper, gold and zinc prices, partially offset by lower nickel sales volumes.
Revenue from gold and silver for the quarter and year-to-date 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 $429/oz for gold and between $4.28/oz and $4.68/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.
Provisionally Valued Revenue as of September 30, 2024
Metal Payable metal Valued at
Copper 90,231 t $4.44 /lb
Zinc 16,808 t $1.39 /lb
Nickel 414 t $7.86 /lb
Gold 34 koz $2,652 /oz
Molybdenum 825 t $20.47 /lb
11
===== SIDA 25 =====
Quarterly Reconciliation of Realized Prices
Three months ended September 30, 2024
($ thousands) Copper Zinc Nickel Gold Molybdenum Other Total
Revenue from contracts with
customers1 837,730 112,104 6,253 110,832 25,479 48,448 1,140,846
Provisional pricing adjustments on
current period concentrate sales 19,222 4,431 360 4,962 16 (6,216) 22,775
Provisional pricing adjustments on prior
period concentrate sales (4,925) (686) (406) 3,292 (1,666) (874) (5,265)
852,027 115,849 6,207 119,086 23,829 41,358 1,158,356
Recognition of deferred revenue 16,173
Copper stream cash effect (4,783)
Gold stream cash effect (36,557)
Less: Treatment and refining charges (60,191)
Total Revenue 1,072,998
Payable Metal 90,069 t 40,854 t 393 t 45 koz 581 t
Current period sales ($/lb)2 $4.32 $1.29 $7.63 $2,588 $19.90
Provisional pricing adjustments on prior
period concentrate sales ($/lb) $(0.03) $0.00 $(0.47) $73.00 $(1.30)
Realized prices3,4 $4.29 /lb $1.29 /lb $7.16 /lb $2,661 /oz $18.60 /lb
Three months ended September 30, 2023
Copper Zinc Nickel Gold Molybdenum Other Total
Revenue from contracts with
customers1 731,635 120,356 73,318 61,238 46,971 72,616 1,106,134
Provisional pricing adjustments on
current period concentrate sales (13,287) 13,151 (3,150) (1,645) (2,384) (11,154) (18,469)
Provisional pricing adjustments on prior
period concentrate sales 10,544 (17,672) 4,058 177 4,111 (7,315) (6,098)
728,891 115,835 74,226 59,770 48,698 54,147 1,081,567
Recognition of deferred revenue 11,990
Copper stream cash effect (3,889)
Gold stream cash effect (19,336)
Less: Treatment & refining charges (78,137)
Total Revenue 992,195
Payable Metal 89,232 t 43,999 t 3,640 t 32 koz 1,041 t
Current period sales ($/lb)2 $3.72 $1.24 $9.14 $1,907 $ 20.47
Provisional pricing adjustments on prior
period concentrate sales ($/lb) $ (0.01) $ (0.05) $ 0.11 $ (45.00) $ 0.75
Realized prices3,4 $3.71 /lb $1.19 /lb $9.25 /lb $1,862 /oz $21.22 /lb
1. Revenue from contracts with customers before recognition of deferred revenue, gold and copper stream cash effects and treatment and refining
charges, each of which is presented separately in the table.
2. Includes revenue from contracts with customers and provisional pricing adjustments on current period concentrate sales.
3. This is a non-GAAP measure - see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.
4. The realized price for copper inclusive of the impact of streaming agreements for the three months ended September 30, 2024 is $ 4.27/lb (2023:
$3.69/lb). The realized price for gold inclusive of the impact of streaming agreements for the three months ended September 30, 2024 is $ 1,844/oz
(2023: $1,259/oz).
Due to volatility in commodity prices, significant variances may arise between average market prices and realized prices due
to the timing of sales in the period.
12
===== SIDA 26 =====
Year-to-Date Reconciliation of Realized Prices
Nine months ended September 30, 2024
($ thousands) Copper Zinc Nickel Gold Molybdenum Other Total
Revenue from contracts with
customers1 2,341,249 314,234 80,743 246,294 95,800 143,804 3,222,124
Provisional pricing adjustments on
current year concentrate sales 68,190 16,289 (2,140) 13,895 201 (21,952) 74,483
Provisional pricing adjustments on prior
year concentrate sales 28,637 (3,696) 4,592 490 (4,559) 7,897 33,361
2,438,076 326,827 83,195 260,679 91,442 129,749 3,329,968
Recognition of deferred revenue 42,249
Copper stream cash effect (15,558)
Gold stream cash effect (78,584)
Less: Treatment and refining charges (184,511)
Total Net Sales 3,093,564
Payable Metal 254,920 t 116,833 t 4,574 t 105 koz 2,112 t
Current period sales 2 $4.29 $1.28 $7.79 $2,483 $20.62
Provisional pricing adjustments on prior
year concentrate sales $0.05 $(0.01) $0.46 $4 $(0.98)
Realized prices 3,4 $4.34 /lb $1.27 /lb $8.25 /lb $2,487 /oz $19.64 /lb
Nine months ended September 30, 2023
Copper Zinc Nickel Gold Molybdenum Other Total
Revenue from contracts with
customers1 1,679,402 292,262 216,648 188,632 46,971 205,468 2,629,383
Provisional pricing adjustments on
current year concentrate sales (53,266) 13,151 (3,150) (1,645) (2,384) (44,911) (92,205)
Provisional pricing adjustments on prior
year concentrate sales 80,843 (12,329) (14,350) 2,888 4,111 (47,294) 13,868
1,706,978 293,085 199,147 189,875 48,698 113,263 2,551,046
Recognition of deferred revenue 40,052
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 10,234 t 98 koz 1,041 t
Current period sales2 $3.77 $1.17 $9.60 $1,913 $20.47
Provisional pricing adjustments on prior
year concentrate sales $0.06 $0.00 $(0.77) $12 $0.75
Realized prices3,4 $3.83 /lb $1.17 /lb $8.83 /lb $1,925 /oz $21.22 /lb
1. Revenue from contracts with customers before recognition of deferred revenue, gold and copper stream cash effects and treatment and refining
charges, each of which is presented separately in the table.
2. Includes revenue from contracts with customers and provisional pricing adjustments on current year concentrate sales.
3. This is a non-GAAP measure - see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.
4. The realized price for copper inclusive of the impact of streaming agreements for 2024 is $4.31/lb (2023: $3.80/lb). The realized price for gold
inclusive of the impact of streaming agreements for 2024 is $1,738/oz (2023: $1,308/oz).
13
===== SIDA 27 =====
Financial Results
Production Costs
Production costs for the quarter were $581.1 million, a decrease from $615.1 million in the prior year comparable period
primarily as a result of the fact that the prior year comparable period had $32.2 million in fair value adjustments recorded
to re-value concentrate and in-process inventory on hand at the acquisition date of Caserones. On a year-to-date basis,
production costs were $1,754.7 million, an increase from $1,438.1 million in the prior year comparable period. This increase
is primarily attributable to the acquisition of Caserones, with the prior year comparable production costs included only from
July 13, 2023. Additionally, the increase in year-to-date production costs was partially offset by favourable foreign
exchange, which reduced production costs at Candelaria, Caserones and Chapada, and lower nickel production at Eagle.
Depreciation, Depletion and Amortization
Depreciation, depletion and amortization expense for the quarter and year-to-date periods increased compared to the prior
year comparative periods. The year-to-date increase is primarily attributable to the acquisition of Caserones compared to
the prior year comparable period. In addition, increased deferred stripping amortization at Candelaria and Chapada
contributed to higher amortization expense in both the quarter and year-to-date periods when compared to the prior year
comparative periods, partially offset by lower amortization rates at Eagle due to fewer units of production.
Depreciation, depletion & amortization Three months ended September 30, Nine months ended September 30,
($ thousands) 2024 2023 Change 2024 2023 Change
Candelaria 78,667 70,368 8,299 228,151 198,439 29,712
Caserones1 39,316 38,307 1,009 145,546 38,307 107,239
Chapada 26,858 12,813 14,045 60,306 39,883 20,423
Eagle 6,169 14,326 (8,157) 25,313 38,147 (12,834)
Josemaria — — — — 38 (38)
Neves-Corvo 34,725 31,353 3,372 91,443 89,152 2,291
Zinkgruvan 14,274 12,380 1,894 31,070 25,380 5,690
Other 65 241 (176) 395 1,194 (799)
200,074 179,788 20,286 582,224 430,540 151,684
1 Caserones 2023 results are from July 13, 2023.
Finance Income and Costs
Total finance costs, net, of $39.2 million and $111.2 million for the quarter and year-to-date periods respectively, increased
from $36.2 million and $67.8 million in the prior year comparable periods primarily due to higher interest expense related
to higher outstanding debt through the quarter and year-to date period and increased lease liability interest expense in the
year-to-date period as a result of the acquisition of Caserones.
14
===== SIDA 28 =====
Other Income and Expense
Net other expense of nil for the quarter decreased from $22.1 million in other expense in the prior year comparable period
primarily related to increased unrealized gains related to the mark-to-market valuation of unexpired foreign exchange,
particularly for the CLP, and diesel derivative contracts. Net other income and expense in the quarter also included $14.8
million of overhead costs incurred at the Eagle mine due to a partial suspension of underground operations.
Net other expense for the year-to-date period amounted to $14.0 million, a reduction from net other income of $57.5
million in the prior year comparable period. The decrease is primarily due to reduced foreign exchange and trading gains on
debt and equity instruments supporting capital funding for the Josemaria Project following the devaluation of the ARS in
December 2023. Net other income and expense for year-to-date period also included a $18.0 million non-cash write-down
of capital works in progress at the Josemaria Project that are no longer expected to be required and $24.6 million of
overhead costs incurred at the Eagle mine due to a partial suspension of underground operations. These losses were
partially offset by the year-to-date gain recorded on the Caserones purchase option which amounted to $11.7 million and
positively impacted other income and expense.
A foreign exchange loss of $17.6 million and a foreign exchange gain of $6.4 million recorded in the quarter and year-to-
date periods, respectively, in other income and expense resulted from foreign exchange revaluation of working capital and
leases denominated in foreign currencies. Foreign exchange losses in the quarter are primarily due to the strengthening of
both the CLP and the BRL against the USD. Foreign exchange gains in the year-to-date period are primarily due to the
weakening of the CLP against the USD that occurred in the first quarter. Period end exchange rates having a meaningful
impact on foreign exchange recorded at September 30, 2024 were:
September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023
Brazilian Real (USD:BRL) 5.45 5.56 5.00 4.84
Chilean Peso (USD:CLP) 896 951 982 877
Euro (USD:€) 0.89 0.93 0.93 0.91
Swedish Kronor (USD:SEK) 10.10 10.65 10.69 9.98
Argentine Peso (USD:ARS) 971 912 857 808
The average exchange rates for each quarter and year-to-date were:
Three months ended
September 30, 2024 June 30, 2024 March 31, 2024
Brazilian Real (USD:BRL) 5.55 5.22 4.95
Chilean Peso (USD:CLP) 931 935 946
Euro (USD:€) 0.91 0.93 0.92
Swedish Kronor (USD:SEK) 10.42 10.68 10.39
Argentine Peso (USD:ARS) 943 887 835
Three months ended September 30, Nine months ended September 30,
2024 2023 Change 2024 2023 Change
Brazilian Real (USD:BRL) 5.55 4.88 0.66 5.24 5.01 0.23
Chilean Peso (USD:CLP) 931 851 80 937 821 116
Euro (USD:€) 0.91 0.92 (0.01) 0.92 0.92 —
Swedish Kronor (USD:SEK) 10.42 10.81 (0.39) 10.50 10.58 (0.09)
Argentine Peso (USD:ARS) 943 313 630 888 246 642
15
===== SIDA 29 =====
Income Taxes
Income tax expense (recovery) Three months ended September 30, Nine months ended September 30,
($ thousands) 2024 2023 Change 2024 2023 Change
Candelaria 86,933 39,727 47,206 169,514 86,006 83,508
Caserones1 1,298 30,122 (28,824) 41,890 30,122 11,768
Chapada 5,054 11,380 (6,326) 33,668 (9,833) 43,501
Eagle (3,025) 569 (3,594) (4,901) 4,115 (9,016)
Josemaria 2,432 — 2,432 (48,156) 678 (48,834)
Neves-Corvo 1,020 (2,295) 3,315 (1,898) (11,640) 9,742
Zinkgruvan 4,713 6,850 (2,137) 10,360 13,115 (2,755)
Other (1,485) (1,462) (23) 3,191 1,420 1,771
96,940 84,891 12,049 203,668 113,983 89,685
1 Caserones 2023 results are from July 13, 2023.
Income taxes by classification Three months ended September 30, Nine months ended September 30,
($ thousands) 2024 2023 Change 2024 2023 Change
Current income tax expense 119,575 40,115 79,460 224,955 126,829 98,126
Deferred income tax expense (recovery) (22,635) 44,776 (67,411) (21,287) (12,846) (8,441)
96,940 84,891 12,049 203,668 113,983 89,685
Current income tax expense in the quarter and year-to-date periods was higher than in the prior year comparable periods
primarily due to higher taxable earnings, the introduction of the mining royalty tax for Candelaria effective January 1, 2024
and the inclusion of Caserones following its acquisition.
Deferred income tax recovery in the quarter improved compared to the deferred income tax expense in the prior year
quarter due to the reversal of deferred tax expense in the current quarter resulting from the effect of foreign exchange
revaluation of non-monetary assets at Chapada as a result of the strengthening of BRL against USD compared to the prior
quarter ending June 30, 2024. Additionally, the prior year quarter included deferred tax expenses associated with the
inclusion of Caserones deferred tax liabilities following its acquisition and the recognition of deferred tax liability in
Candelaria associated with the newly enacted mining royalty law in Chile. Deferred income tax recovery for the year-to-date
period was higher than in the prior comparable period primarily due to the reversal of deferred tax liability in Josemaria due
to tax inflation adjustments in Argentina. This increase in year-to-date deferred tax recovery was partially offset by the
increase in deferred tax expense due to the utilization of tax losses at Caserones and the effect of foreign exchange
revaluation of non-monetary assets at Chapada due to the overall weakening of the BRL against the USD for the year-to-
date period.
16
===== SIDA 30 =====
Mining Operations
Production Overview
2024 2023
YTD Q3 Q2 Q1 Total Q4 Q3 Q2 Q1
Copper (t)
Candelaria (100%) 113,715 50,018 31,170 32,527 152,012 41,618 34,275 36,952 39,167
Caserones (100%)1 93,024 29,033 29,775 34,216 65,210 35,389 29,821 — —
Chapada 30,938 11,694 9,106 10,138 45,719 12,872 12,286 10,697 9,864
Eagle 5,104 1,027 1,563 2,514 13,600 3,334 3,245 3,881 3,140
Neves-Corvo 21,089 6,698 7,347 7,044 33,823 9,623 9,016 7,610 7,574
Zinkgruvan 3,706 1,385 747 1,574 4,434 501 1,299 917 1,717
267,576 99,855 79,708 88,013 314,798 103,337 89,942 60,057 61,462
Zinc (t)
Neves-Corvo 81,692 29,509 25,696 26,487 108,812 31,035 25,807 24,177 27,793
Zinkgruvan 58,066 17,101 21,764 19,201 76,349 19,684 23,967 11,938 20,760
139,758 46,610 47,460 45,688 185,161 50,719 49,774 36,115 48,553
Nickel (t)
Eagle 5,869 893 1,721 3,255 16,429 3,729 4,290 4,686 3,724
Gold (koz)
Candelaria (100%) 65 29 17 19 90 25 20 21 24
Chapada 47 18 15 14 59 19 15 13 12
112 47 32 33 149 44 35 34 36
Molybdenum (t)
Caserones (100%)1 2,271 693 714 864 2,024 928 1,096 — —
Lead (t)
Neves-Corvo 4,842 1,851 1,387 1,604 5,600 2,030 1,447 951 1,172
Zinkgruvan 21,407 5,693 8,966 6,748 26,284 6,418 8,643 3,816 7,407
26,249 7,544 10,353 8,352 31,884 8,448 10,090 4,767 8,579
Silver (koz)
Candelaria (100%) 1,387 605 367 415 1,487 468 306 366 347
Chapada 176 63 55 58 258 73 67 62 56
Eagle 28 3 17 8 64 17 19 11 17
Neves-Corvo 1,382 425 433 524 1,902 573 486 407 436
Zinkgruvan 1,876 537 699 640 2,300 509 785 374 632
4,849 1,633 1,571 1,645 6,011 1,640 1,663 1,220 1,488
17
1 Caserones 2023 results are from July 13, 2023.
===== SIDA 31 =====
Production Cost and Cash Cost Overview ($ thousand, $/lb)
Three months ended
September 30,
Nine months ended
September 30,
($ thousands) 2024 2023 2024 2023
Candelaria
Production costs $189,106 $175,468 $525,715 $548,405
Gross cost 2.01 2.54 2.31 2.54
By-product1 (0.46) (0.35) (0.48) (0.36)
Cash Cost (Cu, $/lb)2 1.55 2.19 1.83 2.18
AISC (Cu, $/lb)2 2.23 3.43 2.85 3.55
Caserones3
Production costs $169,411 $188,982 $575,963 $188,982
Gross cost 3.50 2.42 3.02 2.42
By-product1 (0.54) (0.82) (0.51) (0.82)
Cash Cost (Cu, $/lb)2 2.96 1.60 2.51 1.60
AISC (Cu, $/lb)2 3.95 2.49 3.45 2.49
Chapada
Production costs $84,450 $78,854 $218,281 $227,601
Gross cost 3.19 3.25 3.42 3.49
By-product1 (1.82) (0.97) (1.67) (1.05)
Cash Cost (Cu, $/lb)2 1.37 2.28 1.75 2.44
AISC (Cu, $/lb)2 2.34 3.15 3.16 3.44
Eagle
Production cost $12,595 $52,497 $90,788 $143,681
Gross cost 14.18 5.72 8.35 5.72
By-product1 (6.94) (3.65) (4.39) (3.63)
Cash Cost (Ni, $/lb)2 7.24 2.07 3.96 2.09
AISC (Ni, $/lb)2 20.02 4.05 7.13 4.08
Neves-Corvo
Production costs $95,168 $82,137 $250,009 $243,943
Gross cost 5.93 4.62 5.58 5.13
By-product1 (3.80) (2.35) (3.30) (2.60)
Cash Cost (Cu, $/lb)2 2.13 2.27 2.28 2.53
AISC (Cu, $/lb)2 3.84 3.82 4.06 4.14
Zinkgruvan
Production costs $30,109 $37,183 $92,918 $83,874
Gross cost 1.03 1.02 1.07 1.04
By-product1 (0.87) (0.74) (0.67) (0.68)
Cash Cost (Zn, $/lb)2 0.16 0.28 0.40 0.36
AISC (Zn, $/lb)2 0.66 0.56 0.83 0.80
1 By-product is after related treatment and refining charges.
2 Cash Cost per pound sold and All-in Sustaining Cost per pound sold ("AISC") are non-GAAP measures, see the "Non-GAAP and Other Performance
Measures" section of this MD&A for discussion.
3 Caserones 2023 results are from July 13, 2023.
18
===== SIDA 32 =====
Capital Expenditures1
Three months ended September 30,
2024 2023
($ thousands) Sustaining Expansionary
Capitalized
Interest Total Sustaining Expansionary
Capitalized
Interest Total
Candelaria 60,118 — — 60,118 86,693 — — 86,693
Caserones2 22,895 — — 22,895 28,849 — — 28,849
Chapada 20,487 — — 20,487 16,716 — — 16,716
Eagle 7,940 — — 7,940 4,989 — — 4,989
Josemaria — 49,926 4,313 54,239 — 52,662 10,532 63,194
Neves-Corvo 26,288 — — 26,288 27,357 — — 27,357
Zinkgruvan 15,546 — — 15,546 12,350 — — 12,350
Other (2,101) — — (2,101) 3,059 — — 3,059
151,173 49,926 4,313 205,412 180,013 52,662 10,532 243,207
Nine months ended September 30,
2024 2023
($ thousands) Sustaining Expansionary
Capitalized
Interest Total Sustaining Expansionary
Capitalized
Interest Total
Candelaria 220,194 — — 220,194 300,796 — — 300,796
Caserones2 100,977 — — 100,977 28,849 — — 28,849
Chapada 74,927 — — 74,927 52,433 — — 52,433
Eagle 15,998 — — 15,998 15,653 — — 15,653
Josemaria — 193,027 10,522 203,549 — 234,831 11,011 245,842
Neves-Corvo 76,622 — — 76,622 74,551 — — 74,551
Zinkgruvan 43,188 — — 43,188 42,812 — — 42,812
Other 330 — — 330 8,303 — — 8,303
532,236 193,027 10,522 735,785 523,397 234,831 11,011 769,239
1 Capital expenditures are reported on a cash basis, as presented in the consolidated statement of cash flows. Sustaining capital expenditures is a
supplementary financial measure and expansionary capital expenditures is a non-GAAP measure – see the "Non-GAAP and Other Performance
Measures" section of this MD&A for discussion.
2 Caserones 2023 results are from July 13, 2023.
19
===== SIDA 33 =====
Candelaria (Chile)
Operating Statistics
2024 2023
(100% Basis) YTD Q3 Q2 Q1 Total Q4 Q3 Q2 Q1
Ore mined (000s tonnes) 24,055 10,784 8,155 5,116 25,939 7,793 5,350 6,194 6,602
Ore milled (000s tonnes) 21,586 7,183 7,094 7,309 28,903 7,609 7,168 6,924 7,202
Grade
Copper (%) 0.58 0.76 0.49 0.48 0.58 0.60 0.52 0.59 0.59
Gold (g/t) 0.14 0.18 0.12 0.11 0.14 0.15 0.12 0.14 0.15
Recovery
Copper (%) 91.3 92.1 89.5 91.9 91.3 90.3 91.0 91.1 92.6
Gold (%) 67.6 69.9 62.1 69.8 69.5 68.6 70.6 68.8 70.3
Production (contained metal)
Copper (tonnes) 113,715 50,018 31,170 32,527 152,012 41,618 34,275 36,952 39,167
Gold (000 oz) 65 29 17 19 90 25 20 21 24
Silver (000 oz) 1,387 605 367 415 1,487 468 306 366 347
Revenue ($000s) 1,169,821 473,049 366,363 330,409 1,329,599 359,023 299,745 290,426 380,405
Production costs ($000s) 525,715 189,106 175,359 161,250 726,493 178,088 175,468 184,958 187,979
Gross profit ($000s) 415,955 205,276 114,946 95,733 330,729 106,997 53,909 35,772 134,051
Cash cost ($ per pound copper)1 1.83 1.55 2.18 1.89 2.07 1.78 2.19 2.14 2.21
AISC ($ per pound copper)1 2.85 2.23 3.22 3.34 3.34 2.76 3.43 3.76 3.44
1All-in Sustaining Cost per pound sold ("AISC") and Cash cost per pound sold are non-GAAP measures, see the "Non-GAAP and Other Performance
Measures" section of this MD&A for discussion.
Production
Copper production in the quarter and year-to-date periods was higher than in the prior year comparable periods primarily
due to contribution from the expected higher grade ore from Phase 11 during the quarter . Access to higher grade Phase 11
ore is anticipated to continue through most of the fourth quarter of 2024 as per the planned mine sequence. Gold
production in the quarter also benefited from the higher grade ore.
Production Costs and Cash Cost
Production costs in the quarter were higher than in the prior year quarter due to higher copper sales volumes and a write
down of inventory items used in repair and maintenance of mineral property, plant, and equipment amounting to $11.1
million. These increases were partially offset by lower unit costs as a result of lower contractor costs and favourable foreign
exchange due to a weaker Chilean peso. Production costs in the year-to-date period were lower than in the prior year
comparable period as a result of favourable foreign exchange due to a weaker Chilean peso, and lower maintenance and
contractor costs partially offset by higher copper sales volume.
Cash cost per pound in the quarter and year-to-date periods was lower than in the prior year comparable periods due to
higher sales volumes, favourable foreign exchange, and favourable by-product credits. All-in sustaining cost per pound
("AISC") in the quarter and year-to-date periods was lower than in the prior year comparable periods primarily due to lower
sustaining capital expenditure.
In the year-to-date period, approximately 41,000 oz of gold and 846,000 oz of silver were subject to terms of a streaming
agreement from which approximately $429/oz of gold and $4.28/oz of silver will be received. This represents approximately
68% of Candelaria's total gold and silver production.
Gross Profit
Gross profit in the quarter and year-to-date periods was higher than in the prior year comparable periods, primarily due to
higher realized copper and gold prices, and favourable foreign exchange. Gross profit in the quarter also benefitted from
lower unit costs as a result of lower contractor costs.
20
===== SIDA 34 =====
Caserones (Chile)
Operating Statistics
2024 2023
(100% Basis) YTD Q3 Q2 Q1 Total2 Q4 Q32
Ore mined (000s tonnes) 22,263 7,616 7,840 6,807 15,583 7,484 8,099
Ore milled (000s tonnes) 23,382 8,136 7,556 7,690 15,424 8,262 7,162
Ore placed on leach 6,667 1,885 2,868 1,914 5,541 3,234 2,307
Grade
Copper (%) 0.41 0.38 0.42 0.44 0.42 0.41 0.44
Molybdenum (%) 0.016 0.016 0.015 0.016 0.020 0.019 0.022
Recovery
Copper (%) 77.5 76.7 75.9 79.7 86.1 88.2 83.9
Molybdenum (%) 62.4 53.3 64.4 70.0 72.4 73.9 70.9
Production (tonnes)
Copper in concentrate 75,120 23,708 24,246 27,166 55,191 29,496 25,695
Copper cathode 17,904 5,325 5,529 7,050 10,019 5,893 4,126
Total copper 93,024 29,033 29,775 34,216 65,210 35,389 29,821
Molybdenum 2,271 693 714 864 2,024 928 1,096
Revenue ($000s) 890,654 227,896 336,547 326,211 601,775 317,219 284,556
Production costs ($000s) 575,963 169,411 208,897 197,655 404,837 215,855 188,982
Gross profit ($000s) 169,145 19,169 73,149 76,827 88,449 31,182 57,267
Cash cost ($ per pound copper)1 2.51 2.96 2.60 2.14 1.99 2.33 1.60
AISC ($ per pound copper)1 3.45 3.95 3.58 3.02 3.03 3.48 2.49
1 All-in Sustaining Cost per pound sold ("AISC") and Cash cost per pound sold are non-GAAP measures, see the "Non-GAAP and Other Performance
Measures" section of this MD&A for discussion.
2 Caserones 2023 results are from July 13, 2023.
Production
Copper and molybdenum production in the quarter was lower than in the prior year comparable period primarily due to
labour action in August lasting 14 days which reduced throughput during that period to approximately 50% of capacity.
Additionally, grades were reduced from the prior year comparable period due to a higher proportion of lower grade ore
sourced from Phase 6, due to hydrogeologic conditions in Phase 5. Copper cathode production in the quarter continued to
benefit from changes to the irrigation pattern on the dump leach pad and higher than planned ore placement due to
favourable weather conditions.
Production Costs and Cash Cost
Production costs in the quarter were lower than in the prior year comparable period due to lower sales volumes and
favourable foreign exchange as a result of a weaker Chilean peso. Additionally, the prior year comparable period was
negatively impacted by a $32.2 million fair value adjustment related to inventory sold. Production costs in the quarter were
partially offset by higher labour and contractor, maintenance and administration costs. Cash cost per pound in the quarter
and year-to-date periods was higher than in the prior year comparable periods due to lower sales volume, higher
contractor, labour and input costs, and lower by-product credits. AISC per pound in the quarter and year-to-date periods
was higher than the prior periods due to higher cash costs.
Gross Profit
Gross profit in the quarter was lower than in the prior year comparable period due to lower sales volumes, which was
partially offset by higher realized copper and molybdenum prices and favourable foreign exchange. Gross profit in the year-
to-date period benefitted from higher sales volumes, higher realized copper prices and favourable foreign exchange.
21
===== SIDA 35 =====
Chapada (Brazil)
Operating Statistics
2024 2023
(100% Basis) YTD Q3 Q2 Q1 Total Q4 Q3 Q2 Q1
Ore mined (000s tonnes) 16,865 5,889 5,851 5,125 29,508 7,803 8,062 7,522 6,121
Ore milled (000s tonnes) 16,938 6,035 5,407 5,496 22,233 5,218 5,832 5,207 5,976
Grade
Copper (%) 0.23 0.25 0.23 0.23 0.26 0.29 0.26 0.26 0.23
Gold (g/t) 0.17 0.18 0.18 0.14 0.15 0.18 0.15 0.14 0.13
Recovery
Copper (%) 77.8 78.1 74.2 81.1 80.2 85.9 80.8 80.3 73.3
Gold (%) 51.8 51.5 49.3 55.3 55.0 61.1 55.3 54.1 48.0
Production (contained metal)
Copper (tonnes) 30,938 11,694 9,106 10,138 45,719 12,872 12,286 10,697 9,864
Gold (000 oz) 47 18 15 14 59 19 15 13 12
Silver (000 oz) 176 63 55 58 258 73 67 62 56
Revenue ($000s) 376,370 159,966 117,969 98,435 461,175 143,439 111,897 94,721 111,118
Production costs ($000s) 218,281 84,450 69,246 64,585 317,317 89,716 78,854 80,113 68,634
Gross profit (loss) ($000s) 97,783 48,658 30,355 18,770 80,378 30,126 20,230 (381) 30,403
Cash cost ($ per pound copper)1 1.75 1.37 2.05 2.01 2.27 1.88 2.28 2.69 2.37
AISC ($ per pound copper)1 3.16 2.34 3.72 3.79 3.24 2.75 3.15 3.80 3.42
1All-in Sustaining Cost per pound sold ("AISC") and Cash cost per pound sold are non-GAAP measures, see the "Non-GAAP and Other Performance
Measures" section of this MD&A for discussion.
Production
Copper production in the quarter and year-to-date periods was lower than in the prior year comparable periods primarily
due to lower grades as a result of mine sequencing, and lower recoveries driven by processing ore from the older low-grade
stockpile and North pit as part of an optimized mine plan that significantly reduces waste movement. Gold production in
the quarter and year-to-date periods was higher than in the prior year comparable periods primarily due to higher grades
and throughput, partially offset by lower recoveries. The higher grades were generated from fresh ore from the South and
Central pits replacing planned feed from the older low-grade stockpile in order to prioritize gold production in light of
elevated gold prices.
Production Costs and Cash Cost
Production costs in the quarter were higher than in the prior year comparable period primarily as a result of higher copper
and gold sales volumes, partially offset by favourable foreign exchange. Production costs in the year-to-date period were
lower than in the prior year comparable period due to lower copper sales volumes and favourable foreign exchange. During
the quarter a long-term strategic agreement was reached to purchase renewable electricity at favourable pricing. The
agreement is effective from 2025 and is expected to reduce future electricity costs.
Cash cost per pound in the quarter and year-to date periods improved from the prior year comparable periods primarily
due to higher by-product credits as a result of increased realized prices for gold sales as well as favourable foreign
exchange. This decrease was combined with lower mining costs as a result of a planned reduction in waste movement, and
other cost reduction initiatives as a result of the Full Potential program. Cash cost in the quarter also benefitted from higher
copper sales volume. AISC per pound in the quarter and year-to-date periods was lower than in the prior year comparable
periods mainly due to lower cash cost per pound, partially offset by higher sustaining capital expenditure.
Gross Profit
Gross profit in the quarter and year-to date periods was higher than in the prior year comparable periods primarily due to
higher realized copper and gold prices and favourable foreign exchange.
22
===== SIDA 36 =====
Eagle (USA)
Operating Statistics
2024 2023
(100% Basis) YTD Q3 Q2 Q1 Total Q4 Q3 Q2 Q1
Ore mined (000s tonnes) 363 91 107 165 725 188 192 189 156
Ore milled (000s tonnes) 366 90 97 179 718 186 190 181 161
Grade
Nickel (%) 1.9 1.4 2.1 2.1 2.6 2.3 2.6 2.9 2.6
Copper (%) 1.5 1.2 1.7 1.5 2.0 1.9 1.8 2.2 2.0
Recovery
Nickel (%) 82.9 72.3 85.0 85.2 87.4 86.1 86.2 88.8 88.5
Copper (%) 95.3 94.3 95.9 95.3 96.8 96.5 96.4 97.0 97.2
Production (contained metal)
Nickel (tonnes) 5,869 893 1,721 3,255 16,429 3,729 4,290 4,686 3,724
Copper (tonnes) 5,104 1,027 1,563 2,514 13,600 3,334 3,245 3,881 3,140
Revenue ($000s) 126,884 12,217 57,444 57,223 350,895 73,720 102,505 105,250 69,420
Production costs ($000s) 90,788 12,595 37,657 40,536 191,704 48,023 52,497 45,735 45,449
Gross profit (loss) ($000s) 10,783 (6,547) 9,794 7,536 107,141 11,794 35,682 46,845 12,820
Cash cost ($ per pound nickel)1 3.96 7.24 3.23 4.04 2.16 2.37 2.07 1.88 2.43
AISC ($ per pound nickel)1 7.13 20.02 5.71 6.12 4.22 4.60 4.05 3.34 5.16
1All-in Sustaining Cost per pound sold ("AISC") and Cash cost per pound sold are non-GAAP measures, see the "Non-GAAP and Other Performance
Measures" section of this MD&A for discussion.
Production
Nickel and copper production in the quarter and year-to date periods were lower than in the prior year comparable periods
due to lower throughput and grades. In May 2024, a fall of ground in the lower ramp restricted access to Eagle East and has
subsequently reduced mining rates while ramp rehabilitation is completed. Normal throughput rates are expected to
resume in late 2024, with the extraction of ore from Eagle East deferred into future years. Monitoring of the crown pillar
continues at Eagle. There were some early indications of localized minor movement recorded, as the pillar settled on the
cement rock filled headings in the upper levels of the Eagle deposit. As a precautionary measure, the Company has
increased the frequency of readings and the total number of monitoring devices, and reduced the extraction rate from this
area of the mine. Concentrate and rail shipments resumed in late July after the mill shutdown to complete planned
maintenance.
Production Costs and Cash Cost
Production costs in the quarter and year-to date periods were lower than in the prior year comparable periods primarily
due to lower sales and production volumes leading to reduced spend in milling, transportation and lower royalty expense.
Production costs in the quarter exclude d approximately $14.8 million of overhead costs that have been recorded in Other
Income and Expense as a result of the partial suspension of underground mining operations.
Cash cost per pound in the quarter and year-to date periods was higher than in the prior year comparable periods due to
the prioritization of ramp rehabilitation which resulted in lower sales volumes, partially offset by higher by-product credits
as a result of higher realized copper prices . AISC per pound in the quarter and year-to date periods was higher than in the
prior year comparable periods primarily due to higher cash cost per pound. AISC in the quarter was also impacted by higher
sustaining capital expenditures.
Gross Profit
Gross profit in the quarter and year-to date periods was lower than in the prior year comparable periods primarily due to
lower sales volumes.
23
===== SIDA 37 =====
Neves-Corvo (Portugal)
Operating Statistics
2024 2023
(100% Basis) YTD Q3 Q2 Q1 Total Q4 Q3 Q2 Q1
Ore mined, copper (000s tonnes) 1,769 579 602 588 2,591 677 689 622 603
Ore mined, zinc (000s tonnes) 1,588 571 499 518 1,989 549 459 470 511
Ore milled, copper (000s tonnes) 1,783 583 601 599 2,588 682 674 628 604
Ore milled, zinc (000s tonnes) 1,559 540 507 512 1,989 573 441 465 510
Grade
Copper (%) 1.5 1.5 1.6 1.5 1.7 1.9 1.8 1.6 1.6
Zinc (%) 6.6 7.0 6.3 6.5 6.8 6.6 7.4 6.6 6.7
Lead (%) 1.3 1.4 1.3 1.2 1.5 1.4 1.5 1.5 1.5
Recovery
Copper (%) 76.5 74.9 77.2 77.3 76.5 75.6 76.1 77.0 77.7
Zinc (%) 77.8 76.9 78.2 78.4 78.0 79.9 76.1 76.8 78.7
Lead (%) 24.3 24.8 21.7 26.5 19.2 25.2 21.3 14.0 15.7
Production (contained metal)
Copper (tonnes) 21,089 6,698 7,347 7,044 33,823 9,623 9,016 7,610 7,574
Zinc (tonnes) 81,692 29,509 25,696 26,487 108,812 31,035 25,807 24,177 27,793
Lead (tonnes) 4,842 1,851 1,387 1,604 5,600 2,030 1,447 951 1,172
Silver (000 oz) 1,382 425 433 524 1,902 573 486 407 436
Revenue ($000s) 340,542 131,237 128,675 80,630 425,042 115,823 111,202 68,614 129,403
Production costs ($000s) 250,009 95,168 83,129 71,712 326,677 82,734 82,137 76,080 85,726
Gross (loss) profit ($000s) (910) 1,344 15,874 (18,128) (23,234) 642 (2,288) (35,185) 13,597
Cash cost ($ per pound copper)1 2.28 2.13 1.70 3.24 2.37 1.96 2.27 3.99 1.69
AISC ($ per pound copper)1 4.06 3.84 3.46 5.13 3.96 3.50 3.82 5.73 3.29
1All-in Sustaining Cost per pound sold ("AISC") and Cash cost per pound sold are non-GAAP measures, see the "Non-GAAP and Other Performance
Measures" section of this MD&A for discussion.
Production
Copper production in the quarter and year-to-date periods was lower than in the prior year comparable periods primarily
due to lower throughput and grades. Grades were impacted by changes in mine sequencing as a result of adjustments to
the mining method and cable bolting requirements. Additional development work in Lombador North also limited ore
availability, which impacted throughput. Zinc production in the quarter and year-to-date periods was higher than in the
prior year comparable periods due to higher throughput and recoveries as a result of the zinc expansion project, partially
offset by lower grades. During the month of August, there was a record in shaft hoisting of 440,000 tonnes over the month,
in addition to record zinc production of 10,527 tonnes. During the month of September, the daily shaft hoisting of 19,000
tonnes set a new record for the mine.
Production Costs and Cash Cost
Production costs in the quarter were higher than in the prior year comparable period primarily due to increases in zinc and
lead sales volumes and higher unit production costs mainly driven by higher electricity, labour costs and inflation on main
contracts. Production costs in the year-to-date period were higher than in the prior year comparable period primarily due to
higher zinc and lead sales volumes.
Cash cost per pound in the quarter and year-to-date periods improved from the prior year comparable periods mainly due
to higher by-product credits . AISC per pound in the quarter was higher than in the prior year comparable period primarily
due to higher sustaining capital expenditures. AISC per pound in the year-to-date period was lower than in the prior year
comparable period due to lower cash costs, partially offset by higher sustaining capital expenditure.
Gross (Loss) Profit
Gross profit in the quarter improved compared to a gross loss in the prior year comparable period, primarily driven by
higher realized copper and zinc prices and lower zinc treatment and refining charges, partially offset by higher operating
costs. For the year-to-date period, gross loss was $ 0.9 million, a reduction from the prior year comparable period gross loss
of $23.9 million. This decrease was mainly due to higher realized copper and zinc prices.
24
===== SIDA 38 =====
Zinkgruvan (Sweden)
Operating Statistics
2024 2023
(100% Basis) YTD Q3 Q2 Q1 Total Q4 Q3 Q2 Q1
Ore mined, zinc (000s tonnes) 914 300 308 306 1,178 313 287 268 310
Ore mined, copper (000s tonnes) 176 84 45 47 207 36 65 51 55
Ore milled, zinc (000s tonnes) 928 302 313 313 1,179 327 326 211 315
Ore milled, copper (000s tonnes) 193 76 42 75 198 28 58 34 78
Grade
Zinc (%) 6.9 6.3 7.7 6.7 7.3 6.7 8.2 6.6 7.4
Lead (%) 2.9 2.4 3.7 2.7 2.9 2.5 3.5 2.4 2.9
Copper (%) 2.2 2.1 2.0 2.4 2.5 2.0 2.5 3.1 2.4
Recovery
Zinc (%) 90.5 89.8 90.6 91.1 89.0 89.8 90.0 86.3 88.7
Lead (%) 78.7 78.5 78.2 79.4 77.8 77.1 75.7 76.2 82.1
Copper (%) 88.2 87.3 88.0 89.0 88.5 86.3 88.7 86.1 90.5
Production (contained metal)
Zinc (tonnes) 58,066 17,101 21,764 19,201 76,349 19,684 23,967 11,938 20,760
Lead (tonnes) 21,407 5,693 8,966 6,748 26,284 6,418 8,643 3,816 7,407
Copper (tonnes) 3,706 1,385 747 1,574 4,434 501 1,299 917 1,717
Silver (000 oz) 1,876 537 699 640 2,300 509 785 374 632
Revenue ($000s) 189,293 68,633 76,587 44,073 223,591 50,783 82,290 29,520 60,998
Production costs ($000s) 92,918 30,109 32,734 30,075 115,394 31,520 37,183 17,786 28,905
Gross profit ($000s) 65,305 24,250 35,040 6,015 74,073 10,519 32,727 6,821 24,006
Cash cost ($ per pound)1 0.40 0.16 0.39 0.65 0.43 0.63 0.28 0.24 0.54
AISC ($ per pound)1 0.83 0.66 0.74 1.10 0.83 0.93 0.56 1.06 0.97
1All-in Sustaining Cost per pound sold ("AISC") and Cash cost per pound sold are non-GAAP measures, see the "Non-GAAP and Other Performance
Measures" section of this MD&A for discussion.
Production
Zinc and lead production in the quarter were lower than in the prior year comparable periods primarily due to lower grades
and throughput. Throughput was primarily impacted by weather related power outages and unplanned maintenance while
grades were impacted by changes in mine plan sequencing as a result of challenges with paste delivery and wet ore. Zinc
and lead production in the year-to-date periods were higher than in the prior year comparable periods due to higher
throughput and recoveries, partially offset by lower grades. Throughput in the year-to-date comparable period in 2023 was
affected by the installation of a zinc sequential flotation system, which limited mill availability.
Copper production in the quarter was higher than in the prior year comparable period due to higher throughput, partially
offset by lower grades and recoveries. Copper production in the year-to-date period was lower than in the prior year
comparable period due to lower grades and recoveries, partially offset by higher throughput.
Production Costs and Cash Cost
Production costs in the quarter were lower than in the prior year comparable period primarily due to lower zinc and lead
sales volumes. Production costs in the year-to date period were higher than in the prior year comparable period primarily
due to higher contractor costs and higher zinc and lead sales volumes.
Cash cost per pound in the quarter was lower than in the prior year comparable period primarily due to higher by-product
credits and lower treatment and refining charges. On the year-to-date basis, cash cost was higher than in the prior year
comparable period mainly due to due to higher mine and mill costs. AISC per pound in the quarter was higher than in the
prior year comparable period due to higher sustaining capital expenditure. AISC per pound in the year-to-date period was
higher than in the prior year comparable period due to higher cash costs.
Gross Profit
Gross profit in the quarter was lower than in the prior year comparable period primarily due to lower zinc and lead sales
volumes, higher depreciation and operating costs, partially offset by higher realized zinc and copper prices, and lower
treatment and refining charges. Gross profit in the year-to date period was slightly higher than in the prior year comparable
period primarily due to higher realized zinc and copper prices and lower treatment and refining charges, partially offset by
higher depreciation and operating costs.
25
===== SIDA 39 =====
Josemaria Project (Argentina)
Project Development
During the quarter, with minimal winter site activities, efforts were focused on completing the EIA ("Environmental Impact
Assessment") update and maintaining progress on the critical water program. Furthermore, management shifted to
reviewing and studying activities and programs for the Filo del Sol project as a result of the Joint Arrangement announced
during the quarter. In anticipation of the Joint Arrangement, the 2024 program was changed to incorporate new studies
relating to the Filo del Sol project, and a joint development concept pertaining to the Josemaria and Filo ore bodies. The
Joint Arrangement includes a work plan and budget to continue to advance the Filo del Sol project and commence studies
and other activities for the combined project. Until closing, Filo will continue to operate independently and maintain its
independent drill and testing program.
The Josemaria Project's field activities were associated with the water, road maintenance and exploration programs. Work
on the water program continues to advance with the completion of water source pump testing at wellfields A and B and
obtaining data to update water supply and usage models. Water exploration drilling and single-well pump testing
commenced in the La Majadita area. Additionally, the exploration campaign will restart at the Cumbre Verde target near
the Josemaria orebody in November, with activities focused on preparing and mobilizing for the start of drilling including
the removal of snow for roads and platforms.
The delivery of the Gearless Mill Drive (GMDs) components at the San Juan Warehouse Facility are complete, and 90% of
the mill's components have also been received. The remaining mill components are expected at the warehouse before the
end of 2024.
Work continues on environmental and permitting, the technical review of the tailings dam design, and the offsite power
line EIAs, which were submitted in 2023. The Josemaria biennial EIA update was submitted in April. The permits for the
most northern sections of the Northern Access Road were received, whilst the EIA for other sections which were also
submitted in 2023, continue to be under government evaluation.
Government relations continue to be maintained with both the national and provincial governments. At the national level,
the Company is closely monitoring the government's implementation of the Basis Law - Incentive Regime for Large
Investments ("RIGI") as it was officially published on July 9, 2024. At the provincial level, San Juan adhered to the RIGI on
August 15, 2024. This confirms the province's commitment to the foreign investment regime. In conjunction, discussions on
provincial royalties, infrastructure offset, and trust fund agreements continue. Work has commenced on analyzing the RIGI
regulations and preparing a plan for submission of the application.
During the quarter, the Company spent $49.9 million in capital expenditure compared to $52.7 million in the prior year
comparable period. On a year-to-date basis, the Company spent $193.0 million compared to $234.8 million in the prior year
comparable period. The annual guidance for the spend on the project has increased to $230.0 million from the previous
guidance amount of $225.0 million as the project advances.
Exploration Update
During the quarter, exploration activity focused on in-mine and near-mine targets at the Company's operations. Exploration
drilling at Zinkgruvan was focused on resource expansion and drilling at Candelaria was focused on Soplona , La Portuguesa
and La Espanola. Drilling at Chapada concentrated on adding high grade resources to Sauva and testing near-mine
geochemical and geophysical anomalies in Cava Norte, Santa Cruz, Castanhal and Jatoba.
At Caserones, exploration activity remains lower during the winter season. Exploration drilling continues in the lower
portion of the mineral resource in search of higher-grade copper breccia bodies that could improve the average grade of
the resource, and potentially expand it. Preparations to restart near-mine drilling at Angelica were made at the end of the
quarter.
At Josemaria, preparations are underway to recommence the drilling campaign at Cumbre Verde.
Drilling started at Eagle during the quarter with two surface holes targeting a geophysical anomaly east of Eagle East.
Drilling also commenced during the quarter at Neves-Corvo and focused on extending inferred resources at Lombador
North and near-mine drilling at Neves Southwest.
26
===== SIDA 40 =====
Liquidity and Capital Resources
Consolidated Cash Flow
Three months ended September 30,
($ thousands) 2024 2023 Change
Cash provided by operating activities 139,275 303,812 (164,537)
Cash used in investing activities (264,539) (908,756) 644,217
Cash (used in) provided by financing activities (31,562) 773,190 (804,752)
Effect of foreign exchange on cash balances (443) (1,091) 648
Increase (decrease) in cash and cash equivalents (157,269) 167,155 (324,424)
Opening cash and cash equivalents 452,809 190,182 262,627
Closing cash and cash equivalents 295,540 357,337 (61,797)
Adjusted operating cash flow1 305,176 316,467 (11,291)
Free cash flow from operations1 1,722 136,533 (134,811)
Free cash flow1 (61,824) 71,137 (132,961)
Nine months ended September 30,
($ thousands) 2024 2023 Change
Cash provided by operating activities 898,576 710,531 188,045
Cash used in investing activities (786,409) (1,432,290) 645,881
Cash (used in) provided by financing activities (85,220) 892,618 (977,838)
Effect of foreign exchange on cash balances (200) (4,909) 4,709
Increase (decrease) in cash and cash equivalents 26,747 165,950 (139,203)
Opening cash and cash equivalents 268,793 191,387 77,406
Closing cash and cash equivalents 295,540 357,337 (61,797)
Adjusted operating cash flow1 988,716 662,171 326,545
Free cash flow from operations1 406,947 228,326 178,621
Free cash flow1 173,313 (47,697) 221,010
1This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
Cash provided by operating activities in the quarter ended September 30, 2024 was $164.5 million lower than in the prior
year comparable period. This was primarily due to $165.9 million negative working capital changes in the quarter as a result
of the timing of sales at Candelaria and Chapada. Cash provided by operating activities was also impacted by lower nickel
sales in the quarter due to reduced production at the Eagle mine while ramp rehabilitation is completed. For the year-to-
date period ended September 30, 2024, cash provided by operating activities was $188.0 million higher than in the
comparable prior year comparable period, primarily due to higher copper and gold prices and the inclusion of Caserones
operating activities.
Cash used in investing activities in the quarter ended September 30, 2024 was $644.2 million lower than in the prior year
comparable period. This was primarily due to the absence of the acquisition of Caserones in July 2023. Excluding the
acquisition, cash used in investing activities was $4.4 million higher, due in part to the purchase of Filo shares offset by
lower sustaining capital expenditures at Candelaria in the quarter from reduced capitalized stripping. For the year-to-date
period ended September 30, 2024 cash used in investing activities was lower than in the prior year comparable period
despite Caserones investing cash flows being included. This was primarily due to rescheduling certain capital projects to late
2024 and 2025.
Cash used in financing activities in the quarter ended September 30, 2024 was $31.6 million compared to cash provided
during the prior year comparable period of $773.2 million. The net change of $804.8 million relates to lower net proceeds
from debt by $386.0 million in addition to the exercise of the option to acquire an additional 19% interest in Caserones. For
the year-to-date period ended September 30, 2024, the net change in cash from financing activities was $977.8 million year
over year as a result of the same factors that impacted the quarter ended September 30, 2024.
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===== SIDA 41 =====
Free cash flow from operations and free cash flow in the quarter ended September 30, 2024 were lower than in the prior
year comparable period primarily as a result of lower cash provided by operating activities. Free cash flow from operations
and free cash flow for the year-to-date period ended September 30, 2024 were higher than in the prior year comparable
period primarily due to increased cash provided by operating activities.
Liquidity and Financial Position
($ thousands) September 30, 2024 December 31, 2023 Change
Cash and cash equivalents 295,540 268,793 26,747
Total assets 11,077,657 10,861,199 216,458
Debt1 1,828,964 1,208,600 620,364
Lease liabilities2 260,895 277,208 (16,313)
Net debt3 (1,802,549) (1,223,389) (579,160)
Net debt excluding lease liabilities3 (1,541,654) (946,181) (595,473)
1Debt includes both current and non-current portions.
2 Lease liabilities includes both current and non-current portions.
2This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
The Company continues to expect to be able to fund all its contractual commitments with its operating cash flow, cash on
hand and available capital resources.
Net debt excluding lease liabilities at September 30, 2024 increased from December 31, 2023 due to net proceeds from
debt, combined with decreased cash balances resulting from negative working capital adjustments.
During the quarter and year-to-date periods ended September 30, 2024 , no shares were purchased under the Company's
Normal Course Issuer Bid (“NCIB”) (quarter and year-to-date periods ended September 30, 2023 - nil shares).
Contractual Obligations, Commitments and Contingencies
The Company has contractual obligations and capital commitments as described in Note 23 “Commitments and
Contingencies” in the Company’s condensed interim consolidated financial statements for the three and nine months
ended September 30, 2024. From time to time, the Company may also be involved in legal proceedings that arise in the
ordinary course of its business.
Capital Resources
As at September 30, 2024, the Company has a RCF of $1,750.0 million with $340.0 million outstanding (December 31, 2023 -
$250.0 million). The RCF bears interest on drawn funds at rates of Term Secured Overnight Financing Rate (“Term SOFR”)
plus Credit Spread Adjustment (“CSA”) of 0.10% plus an applicable margin of 1.45% to 2.50%, depending on the Company’s
net leverage ratio. The RCF is unsecured, save and except for a charge over certain assets in the United States of America,
and is subject to customary covenants. On April 26, 2024, the facility, which originally expired in April 2028, was amended
and extended to April 2029.
As at September 30, 2024, the Company's Term Loan has a principal amount of $1,150.0 million which includes the exercise
of $350.0 million of the accordion option in the quarter. The Team 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. On April 26, 2024, the Term Loan, originally maturing in July 2026, was extended to July 2027.
On May 23, 2024, both the RCF and the Term Loan were amended to establish sustainability performance targets whereby
the interest rate margin in the facilities will be adjusted based on the Company's performance relative to the targets.
As at September 30, 2024, the Company also has unsecured commercial paper programs maturing in 2025 through 2028 of
which $106.4 million (December 31, 2023 - $116.0 million) were drawn. As at September 30, 2024 , certain subsidiaries of
the Company had outstanding unsecured term loans totalling $240.8 million (December 31, 2023 - $48.9 million) and
accruing interest at rates ranging from 5.30% to 6.65% per annum with interest payable upon maturity. The maturity dates
range from October 2024 to February 2025.
The development of the Joint Arrangement requires significant capital commitments from the Company, and additional
funding, beyond debt, may be required to advance the project to completion.
28
===== SIDA 42 =====
Financial Instruments
Revenue, cost of goods sold and capital expenditures are affected by certain external factors including fluctuations in metal
prices, energy prices, and changes in exchange rates between the €, the SEK, the CLP, the BRL, the ARS and the $.
During the quarter ended September 30, 2024, the Company entered into additional derivative contracts as part of its risk
management strategy to mitigate exposure to foreign currency and commodities. These included diesel collar contracts in
the amount of 67.5 million litres ("L") with collar ranges of $0.49/L to $0.65/L expiring through the remainder of 2024 to
December 2025. At September 30, 2024 , derivative contracts consist of foreign currency forward and option contracts as
well as diesel swap forward and option contracts. The foreign currency and diesel option contracts consist of put and call
contracts in a collar structure.
The derivative contracts have not been designated as hedges for purposes of hedge accounting and are measured at fair
value as assessed by pricing models based on active market prices. Changes in fair value are recognized in other income and
expense in the consolidated statement of earnings.
The Company’s trade receivables also contain provisional pricing sales arrangements that are valued using quoted forward
market prices. The following table illustrates the sensitivity of the Company’s risk on final settlement of its provisionally
priced revenues as at September 30, 2024.
Metal Payable Metal
Provisional price on
September 30, 2024 Change
Effect on Revenue
($millions)
Copper 90,231 t $4.44/lb +/- 10 % +/- $88.3
Zinc 16,808 t $1.39/lb +/- 10 % +/- $5.2
Nickel 414 t $7.86/lb +/- 10 % +/- $0.7
Gold 34 koz $2,652/oz +/- 10 % +/- $9.0
Molybdenum 825 t $20.47/lb +/- 10 % +/- $3.7
For a detailed discussion of the Company’s financial instruments, refer to Note 22 "Financial Instruments" in the Company’s
condensed interim consolidated financial statements for the three and nine months months ended September 30, 2024.
29
===== SIDA 43 =====
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.
Non-GAAP financial
measure or ratio Definition
Most directly
comparable IFRS
measure
Why management uses the
measure and why it may be
useful to investors
Cash cost Includes costs directly attributable to mining operations
(including mining, processing and administration),
treatment, refining and transportation charges, but
excludes royalty expenses, expenses associated with non-
cash fair value adjustments to inventory, depreciation and
amortization and capital expenditures for deferred
stripping. Revenue from sales of by-products, inclusive of
adjustments for the terms of streaming agreements but
excluding the recognition of any deferred revenue from the
allocation of upfront streaming proceeds, reduce cash
costs.
Production costs Copper, zinc and nickel cash
cost per pound sold are useful
measures to assess the
operating performance of the
Company's mines, and their
ability to generate cash. The
inclusion of by-product credits
incorporates the benefit of
other metals extracted in the
production of the primary
metal.
Cash cost per pound
sold
This ratio is calculated by dividing cash cost by the sales
volume of the primary metal (copper, zinc, or nickel).
All-in sustaining cost
("AISC")
Includes cash cost (as defined above), royalties, sustaining
capital expenditure (including deferred stripping and
underground mine development), reclamation and other
closure cost accretion and amortization and lease
payments (cash basis). As this measure seeks to reflect the
full cost of production from current operations,
expansionary capital and certain exploration costs are
excluded as these are costs typically incurred to extend
mine life or materially increase the productive capacity of
existing assets, or for new operations. Corporate general
and administrative expenses have also been excluded as
any attribution of these costs to an operating site would
not necessarily be reflective of costs directly attributable to
the administration of the site. Certain other cash
expenditures, including tax payments, financing charges
(including capitalized interest) and costs related to
business combinations, asset acquisitions and asset
disposals are also excluded.
Production costs Copper, zinc and nickel AISC
and ASIC per pound sold are
useful measures to understand
the full cost of producing and
selling metal at the Company's
mines, and each mine's ability
to generate cash while
sustaining production at current
levels.
AlSC per pound sold This ratio is calculated by dividing AISC by the sales volume
of the primary metal (copper, zinc, or nickel).
Sustaining capital
expenditures
This supplementary financial measure is defined as cash-
basis expenditures which maintain existing operations and
sustain production levels.
Investment in
mineral properties,
plant and
equipment
Sustaining capital expenditures
provide an understanding of
costs required to maintain
existing production levels.
Expansionary capital
expenditures provide
information on costs required
for future growth of existing or
new assets.
Expansionary capital
expenditures
This non-GAAP measure is defined as cash-basis
expenditures which increase current or future production
capacity, cash flow or earnings potential and are reported
excluding capitalized interest. Where an expenditure both
maintains and expands current operations, classification
would be based on the primary decision for which the
expenditure is being made.
30
===== SIDA 44 =====
Non-GAAP financial
measure or ratio Definition
Most directly
comparable IFRS
measure
Why management uses the
measure and why it is useful to
investors
Realized price per
pound and realized
price per ounce1
Defined as revenue from metal sales (copper, zinc, gold,
nickel and molybdenum) adding back treatment and
refining charges, cash effects of gold and copper streams,
recognition of deferred revenue from the allocation of
upfront streaming proceeds and sales of silver and other
metals, divided by the volume of metal sold in the period.
Revenue These measures provide an
understanding of the price
realized in each reporting
period for metal sales.
Earnings before
interest, taxes,
depreciation and
amortization
(EBITDA) and
Adjusted EBITDA
EBITDA represents net earnings or loss for the period
before income tax expense or recovery, depreciation and
amortization, interest income and finance costs. Adjusted
EBITDA removes the effects of items that do not reflect the
Company's underlying operating performance and are not
necessarily indicative of future operating results. These
may include: unrealized foreign exchange, unrealized gains
or losses from derivative contracts, revaluation gains or
losses on marketable securities, derivative liabilities and
purchase options, expenses for acquisition-related fair
value adjustments to inventory, non-cash impairment
charges and reversals, non-cash stockpile inventory or
fixed asset write-downs, costs relating to the sinkhole near
Ojos del Salado operations, income from investments in
associates, gains or losses on disposals of subsidiaries,
insurance proceeds and litigation and settlements.
Net earnings (loss) EBITDA and Adjusted EBITDA
are used to evaluate the
Company's operational
performance and its ability to
generate cash from core
operations.
Adjusted earnings
(loss)
Defined as net earnings or loss attributable to shareholders
of the Company excluding the effects (net of tax) of
significant items that do not reflect the Company's
underlying operating performance. In addition to the items
listed for Adjusted EBITDA, these may also include:
deferred tax recovery or expense arising from foreign
exchange translation and deferred tax recovery or expense
arising from changes in tax rates. Adjustments exclude
amounts attributable to non-controlling interests.
Net earnings (loss)
attributable to
Lundin Mining
Corporation
shareholders
In addition to conventional
measures prepared in
accordance with IFRS, adjusted
earnings and adjusted earnings
per share measure the
underlying operating
performance of the Company.
Adjusted earnings
(loss) per share
This ratio is calculated by dividing adjusted net earnings or
loss by the weighted average number of shares
outstanding.
Free cash flow from
operations
Defined as cash flow provided by operating activities,
excluding general exploration and business development
costs and deducting sustaining capital expenditures (as
defined above).
Cash provided by
operating activities
Free cash flow from operations
is indicative of the Company's
ability to generate cash from its
operations after consideration
of required sustaining capital
expenditure necessary to
maintain existing production
levels.
Free cash flow Defined as cash flow provided by operating activities,
deducting sustaining capital expenditures and
expansionary capital expenditures (both as defined above).
Adjusted operating
cash flow
Defined as cash provided by operating activities, excluding
changes in non-cash working capital items.
Cash provided by
operating activities
These measures are indicative
of the Company's ability to
generate cash from its
operations and remove the
impact of working capital,
which can experience volatility
from period-to-period.
Adjusted operating
cash flow per share
This ratio is calculated by dividing adjusted operating cash
flow by the weighted average number of shares
outstanding.
Net debt Net debt is defined as total debt and lease liabilities
excluding deferred financing fees, less cash and cash
equivalents. Net debt excluding lease liabilities is defined
as total debt excluding lease liabilities, deferred financing
fees, less cash and cash equivalents.
Debt and lease
liabilities, current
portion of debt and
lease liabilities,
cash and cash
equivalents
These measures are indicative
of the Company's financial
position.
Net debt excluding
lease liabilities
1See the 'Revenue Overview' section of this MD&A for reconciliations to revenue, the most directly comparable IFRS measure.
31
===== SIDA 45 =====
Cash Cost per Pound and All-in Sustaining Cost (“AISC”) per Pound
Cash Cost per Pound and All-in Sustaining Costs per pound can be reconciled to Production Costs on the Company's
Condensed Interim Consolidated Statement of Earnings as follows:
Three months ended September 30, 2024
Operations Candelaria Caserones Chapada Eagle
Neves-
Corvo Zinkgruvan
($000s, unless otherwise noted) (Cu) (Cu) (Cu) (Ni) (Cu) (Zn) Total
Sales volumes:
Tonnes 45,430 22,044 12,380 393 7,707 15,124
Pounds (000s) 100,155 48,599 27,293 866 16,991 33,342
Production costs 581,117
Less: Royalties and other (19,133)
561,984
Deduct: By-product credits (221,753)
Add: Treatment and refining charges 43,833
Cash cost 155,069 144,062 37,302 6,273 36,159 5,199 384,064
Cash cost per pound ($/lb) 1.55 2.96 1.37 7.24 2.13 0.16
Add: Sustaining capital expenditure 60,118 22,895 20,487 7,940 26,288 15,546
Royalties 4,519 6,354 2,643 162 1,226 —
Reclamation and other closure
accretion and depreciation 2,416 1,061 2,374 1,473 1,381 1,149
Leases and other 1,625 17,773 956 1,489 147 79
All-in sustaining cost 223,747 192,145 63,762 17,337 65,201 21,973
AISC per pound ($/lb) 2.23 3.95 2.34 20.02 3.84 0.66
Three months ended September 30, 2023
Operations Candelaria Caserones1 Chapada Eagle
Neves-
Corvo Zinkgruvan
($000s, unless otherwise noted) (Cu) (Cu) (Cu) (Ni) (Cu) (Zn) Total
Sales volumes:
Tonnes 33,668 30,385 11,445 3,640 8,799 22,042
Pounds (000s) 74,225 66,987 25,232 8,025 19,398 48,594
Production costs 615,109
Less: Royalties and other (21,662)
Inventory fair value adjustment (32,185)
561,262
Deduct: By-product credits (216,150)
Add: Treatment and refining charges 56,261
Cash cost 162,672 106,866 57,501 16,598 44,043 13,693 401,373
Cash cost per pound ($/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 other2 2,841 22,229 865 797 131 86
All-in sustaining cost 254,555 166,627 79,365 32,511 74,048 27,140
AISC per pound ($/lb) 3.43 2.49 3.15 4.05 3.82 0.56
1 Caserones 2023 results are from July 13, 2023.
2 Q3 2023 amounts have been adjusted from those presented in the Company's MD&A for the three and nine months ended September
30, 2023.
32
===== SIDA 46 =====
Nine months ended September 30, 2024
Operations Candelaria Caserones Chapada Eagle
Neves-
Corvo Zinkgruvan
($000s, unless otherwise noted) (Cu) (Cu) (Cu) (Ni) (Cu) (Zn) Total
Sales volumes:
Tonnes 108,965 87,117 29,415 4,574 21,491 49,459
Pounds (000s) 240,226 192,060 64,849 10,084 47,379 109,038
Production costs 1,754,677
Less: Royalties and other (61,427)
1,693,250
Deduct: By-product credits (597,173)
Add: Treatment and refining charges 129,361
Cash cost 438,494 481,756 113,607 39,903 107,898 43,780 1,225,438
Cash cost per pound ($/lb) 1.83 2.51 1.75 3.96 2.28 0.40
Add: Sustaining capital expenditure 220,194 100,977 74,927 15,998 76,622 43,188
Royalties 11,038 24,443 5,891 6,746 3,168 —
Reclamation and other closure
accretion and depreciation 6,441 3,195 7,780 5,033 4,036 3,286
Leases and other 7,684 51,773 2,496 4,258 405 235
All-in sustaining cost 683,851 662,144 204,701 71,938 192,129 90,489
AISC per pound ($/lb) 2.85 3.45 3.16 7.13 4.06 0.83
Nine months ended September 30, 2023
Operations Candelaria Caserones1 Chapada Eagle
Neves-
Corvo Zinkgruvan
($000s, unless otherwise noted) (Cu) (Cu) (Cu) (Ni) (Cu) (Zn) Total
Sales volumes:
Tonnes 105,585 30,385 30,681 10,234 23,000 48,028
Pounds (000s) 232,775 66,987 67,640 22,562 50,706 105,883
Production costs 1,438,071
Less: Royalties and other (41,717)
Inventory fair value adjustment (32,185)
1,364,169
Deduct: By-product credits (495,751)
Add: Treatment and refining charges 125,390
Cash cost 507,884 106,866 165,170 47,228 128,206 38,454 993,808
Cash cost per pound ($/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 other2 9,638 22,229 3,002 2,441 437 288
All-in sustaining cost 825,418 166,627 232,788 92,024 210,144 84,365
AISC per pound ($/lb) 3.55 2.49 3.44 4.08 4.14 0.80
1 Caserones 2023 results are from July 13, 2023.
2 Q3 2023 amounts have been adjusted from those presented in the Company's MD&A for the three and nine months ended September
30, 2023.
33
===== SIDA 47 =====
Adjusted EBITDA
Adjusted EBITDA can be reconciled to Net Earnings (Loss) on the Company's Condensed Interim Consolidated Statement of
Earnings as follows:
Three months ended
September 30,
Nine months ended
September 30,
($thousands) 2024 2023 2024 2023
Net earnings 127,829 21,883 343,117 248,496
Add back:
Depreciation, depletion and amortization 200,074 179,788 582,224 430,540
Finance income and costs 39,152 36,212 111,153 67,808
Income taxes expense (recovery) 96,940 84,891 203,668 113,983
463,995 322,774 1,240,162 860,827
Unrealized foreign exchange loss (gain) 12,901 9,096 574 (1,545)
Unrealized losses (gains) on derivative contracts (30,613) 47,504 18,245 41,241
Ojos del Salado sinkhole (recoveries) expenses 871 (1,247) 550 15,235
Revaluation loss (gain) on marketable securities (3,957) 3,449 (6,472) (453)
Caserones inventory fair value adjustment — 32,185 — 32,185
Partial suspension of underground operations at Eagle 14,813 — 24,637 —
Gain on disposal of subsidiary — — — (5,718)
Write-down of capital works in progress 781 — 17,969 —
Revaluation of Chapada derivative liability — 370 307 2,166
Revaluation of Caserones purchase option — — (11,728) —
Other (1,108) 990 (2,847) (120)
Total adjustments - EBITDA (6,312) 92,347 41,235 82,991
Adjusted EBITDA 457,683 415,121 1,281,397 943,818
34
===== SIDA 48 =====
Adjusted Earnings and Adjusted EPS
Adjusted Earnings and Adjusted EPS can be reconciled to Net Earnings (Loss) Attributable to Lundin Mining Shareholders on
the Company's Condensed Interim Consolidated Statement of Earnings as follows:
Three months ended
September 30,
Nine months ended
September 30,
($thousands, except share and per share amounts) 2024 20231 2024 20231
Net earnings attributable to Lundin Mining shareholders 101,160 (2,964) 236,632 202,765
Add back:
Total adjustments - EBITDA (6,312) 92,347 41,235 82,991
Tax effect on adjustments (8,135) (20,758) (7,921) (23,938)
Deferred tax expense due to change in tax rate — 25,700 — 25,700
Deferred tax arising from foreign exchange translation (12,387) 12,317 (32,353) (15,972)
Non-controlling interest on adjustments (1,867) (18,734) 2,164 (18,665)
Other (1) (2,648) — 3,645
Total adjustments (28,702) 88,224 3,125 53,761
Adjusted earnings 72,458 85,260 239,757 256,526
Basic weighted average number of shares outstanding 776,794,756 773,147,920 774,574,731 772,214,160
Net (loss) earnings attributable to Lundin Mining
shareholders 0.13 — 0.31 0.26
Total adjustments (0.04) 0.11 — 0.07
Adjusted EPS 0.09 0.11 0.31 0.33
1 2023 amounts have been adjusted from those presented in the Company's MD&A for the three and nine months ended September 30,
2023.
Free Cash Flow from Operations and Free Cash Flow
Free Cash Flow from Operations and Free Cash Flow can be reconciled to Cash provided by Operating Activities on the
Company's Condensed Interim Consolidated Statement of Cash Flows as follows:
Three months ended
September 30,
Nine months ended
September 30,
($thousands) 2024 2023 2024 2023
Cash provided by operating activities 139,275 303,812 898,576 710,531
General exploration and business development 13,620 12,734 40,607 41,192
Sustaining capital expenditures (151,173) (180,013) (532,236) (523,397)
Free cash flow from operations 1,722 136,533 406,947 228,326
General exploration and business development (13,620) (12,734) (40,607) (41,192)
Expansionary capital expenditures (49,926) (52,662) (193,027) (234,831)
Free cash flow (61,824) 71,137 173,313 (47,697)
35
===== SIDA 49 =====
Adjusted Operating Cash Flow and Adjusted Operating Cash Flow per Share
Adjusted Operating Cash Flow and Adjusted Operating Cash Flow per Share can be reconciled to Cash Provided by
Operating Activities on the Company's Condensed Interim Consolidated Statement of Cash Flows as follows:
Three months ended
September 30,
Nine months ended
September 30,
($thousands, except share and per share amounts) 2024 2023 2024 2023
Cash provided by operating activities 139,275 303,812 898,576 710,531
Changes in non-cash working capital items 165,901 12,655 90,140 (48,360)
Adjusted operating cash flow 305,176 316,467 988,716 662,171
Basic weighted average number of shares outstanding 776,794,756 773,147,920 774,574,731 772,214,160
Adjusted operating cash flow per share 0.39 0.41 1.28 0.86
Net Debt and Net Debt Excluding Lease Liabilities
Net debt and net debt excluding lease liabilities can be reconciled to Debt and Lease Liabilities, Current Portion of Debt and
Lease Liabilities and Cash and Cash Equivalents on the Company's condensed interim consolidated balance sheet as follows:
($thousands) September 30, 2024 December 31, 2023
Debt and lease liabilities (1,692,718) (1,273,162)
Current portion of debt and lease liabilities (397,141) (212,646)
Less deferred financing fees (netted in above) (8,230) (6,374)
(2,098,089) (1,492,182)
Cash and cash equivalents 295,540 268,793
Net debt (1,802,549) (1,223,389)
Lease liabilities 260,895 277,208
Net debt excluding lease liabilities (1,541,654) (946,181)
36
===== SIDA 50 =====
Other Information and Advisories
Related Party Transactions
The Company enters into related party transactions that are in the normal course of business and on an arm’s length basis.
Related party disclosures can be found in Note 25 of the Company’s condensed interim consolidated financial statements
for the three and nine months ended September 30, 2024.
Changes in Accounting Policies
The accounting policies applied in the Company’s condensed interim consolidated financial statements for the three and
nine months ended September 30, 2024 are the same as those applied in the Company’s consolidated financial statements
for the year ended December 31, 2023.
Certain amendments to standards were effective for annual periods beginning on or after January 1, 2024, including
amendments to IAS 1 – Presentation of Financial Statements and IAS 12 – Income Taxes. There was no material impact on
the Company’s condensed interim consolidated financial statements from the adoption of these amendments.
In April 2024, the IASB issued IFRS 18, Presentation and Disclosure of Financial Statements which replaces IAS 1,
Presentation of Financial Statements. The standard is effective for reporting periods beginning on or after January 1, 2027,
including for interim financial statements. The Company is currently assessing the effect of this new standard on its financial
statements.
Critical Accounting Estimates and Judgments
The preparation of consolidated financial statements in conformity with IFRS requires management to make judgements,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities,
income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed
at each period end. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in
any future periods affected.
For further information on the Company’s significant accounting estimates and judgements, refer to Note 2 of the
Company’s consolidated financial statements for the year ended December 31, 2023. There have been no subsequent
material changes to these significant accounting estimates and judgements.
Disclosure Controls and Procedures
Disclosure controls and procedures have been designed to provide reasonable assurance that all material information
related to the Company is identified and communicated on a timely basis. Management of the Company, under the
supervision of the President and Chief Executive Officer and the Executive Vice President and Chief Financial Officer, is
responsible for the design and operation of disclosure controls and procedures. Management has evaluated the
effectiveness of the Company’s disclosure controls and procedures and has concluded that they were effective as at
December 31, 2023.
There have been no changes in the Company’s disclosure controls and procedures during the three months ended
September 30, 2024 that have materially affected, or are reasonably likely to materially affect, the Company’s financial
reporting.
Internal Control over Financial Reporting (“ICFR”)
Management of the Company, under the supervision of the President and Chief Executive Officer and Executive Vice
President and Chief Financial Officer, is responsible for establishing and maintaining adequate ICFR. The Company’s ICFR is
designed to provide reasonable assurance regarding the reliability of financial reporting and preparation of financial
statements for external purposes in accordance with IFRS. However, due to inherent limitations ICFR may not prevent or
detect all misstatements and fraud. Management will continue to monitor the effectiveness of its ICFR and may make
modifications from time to time as considered necessary.
37
===== SIDA 51 =====
Management assesses the effectiveness of the Company’s ICFR using the Internal Control – Integrated Framework (2013
Framework) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Management
conducted an evaluation of the effectiveness of ICFR and concluded that it was effective as at December 31, 2023.
There have been no changes in the Company’s ICFR during the three months ended September 30, 2024 that have
materially affected, or are reasonably likely to materially affect, the Company’s financial reporting.
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, 2023 and the “Cautionary Statement on Forward-Looking
Information” of this MD&A.
National Instrument 43-101 Compliance
The scientific and technical information in this document has been reviewed and approved in accordance with the
disclosure standards of National Instrument 43-101 ("NI 43-101") by Patrick Merrin, Executive Vice President, Technical
Services, a "Qualified Person" under NI 43-101. Mr. Merrin has verified the data disclosed in this document and no
limitations were imposed on his verification process.
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.com) or on the Company’s website
(www.lundinmining.com).
Outstanding Share Data
The table below summarizes the Company’s common shares and securities convertible into common shares as at
November 6, 2024.
November 6,
2024
Common shares issued and outstanding 776,876,973
Stock options outstanding
(weighted average exercise price of C$10.11) 3,992,130
Time vesting share units1 1,467,835
Performance vesting share units2 1,035,825
1 Time vesting share units represent the right to receive one common share (subject to adjustments) issued from treasury.
2 Performance vesting share units (“PSU”) represent the right to receive a variable number of common shares (subject to adjustments) issued from
treasury contingent upon achieving applicable performance vesting conditions. The number of common shares listed above in respect of PSU
assumes that 100% of PSU granted (without change) will vest and be paid out in common shares on a one for one basis. However, as noted, the final
number of PSU that may be earned and redeemed may be higher or lower than the PSU initially granted.
38
===== SIDA 52 =====
Condensed Interim Consolidated Financial Statements of
Lundin Mining Corporation
September 30, 2024
(Unaudited)
===== SIDA 53 =====