FULLTEXT DEL 1 AV 3
Kvartalsrapport Q4 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 Fourth Quarter and Full Year 2024 Results
Vancouver, February 19, 2025 (TSX: LUN; Nasdaq Stockholm: LUMI) Lundin Mining Corporation (“Lundin Mining” or
the “Company”) today reported its fourth quarter and full year 2024 financial results. Unless otherwise stated, results are
presented in United States dollars on a 100% basis.
Jack Lundin, President and CEO commented, “ 2024 was highlighted by three transformative transactions, along with
achieving record copper and zinc production which generated strong revenue and operating cashflow for the Company .
Among these deals, the formation of Vicuña Corp. has positioned the Company on a clear path to becoming a top-tier copper
producer. Vicuña is targeting a new and updated mineral resource estimate at Filo del Sol and Josemaria within the second
quarter of 2025. These resource estimates will form the basis of an integrated technical report which will outline the
development plan for the phased construction of the district in Argentina.
“Operationally, we met copper guidance for the second consecutive year, translating to over $870 million in annual free cash
flow from operations1. Notwithstanding the $350 million purchase of an additional 19% at Caserones to bring our overall
ownership to 70%, our net debt 1 position at year end was just over $1.3 billion . Our debt is expected to be reduced
significantly within the first half of this year pending the finalization of the sale of our European assets, Zinkgruvan and
Neves-Corvo, making the Company net-debt free on a pro -forma basis . With our strong financial standing and well -
positioned asset base, our operations will continue to drive returns, fueling the growth opportunities within our current
portfolio of assets.
“Lastly, in 2024 we celebrated our 30 th anniversary, reflecting our longstanding legacy of creating value in the base metals
sector. We believe we are well positioned for the future at Lundin Mining and remain committed to executing within our
targeted guidance ranges, enhancing margins through sustainable cost control, while upholding the highest health and
safety standards to protect our workforce.”
Fourth Quarter and Full Year Operational and Financial Highlights
On December 9th, 2024, the Company announced the sale of its European assets, Zinkgruvan and Neves Corvo, to Boliden.
As a result of this, the financial results from these assets are reported as “discontinued operations” in the Company’s financial
statements and met the criteria to be classified as held -for-sale. The transaction is expected to close at the latest by mid -
year 2025, subject to the completion of customary conditions and regulatory approvals.
Fourth Quarter Highlights
• Copper Production: Consolidated production of 101,491 tonnes of copper in the fourth quarter.
• Other Production: During the quarter, a total of 51,946 tonnes of zinc, 1,617 tonnes of nickel and approximately
46,000 ounces of gold were produced.
• Revenue: $1,023.8 million in the fourth quarter, comprised of $858.9 million from continuing operations with a
realized copper price 1 of $3.75 /lb and a realized gold price 1 of $2,643 /oz, and $165.0 million from discontinued
operations.
• Net Earnings and Adjusted Earnings1: During the quarter, net loss attributable to shareholders of the Company was
$440.2 million, comprised of $195.3 million ($0.25 per share) net loss from continuing operations and $244.8 million
net loss from discontinued operations. Net loss attributable to shareholders of the Company was impacted by non -
cash impairments of goodwill and assets at Eagle, Suruca, Neves-Corvo and Alcaparossa. Adjusted earnings 1 were
$119.2 million, comprised of $94.8 million ($0.12 per share) from continuing operations and $24.4 million from
discontinued operations.
• Adjusted EBITDA1: $425.6 million for the quarter, $368.2 million from continuing operations and $57.4 million was
generated from discontinued operations during the quarter.
• Cash Generation: Cash provided by operating activities in the quarter was $620.3 million, comprised of $547.3 million
from continuing operations and $73.0 million from discontinued operations. Free cash flow from operations 1 was
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 year ended December 31, 2024 and the Reconciliation of Non-GAAP measures section at the end of this news release.
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$466.0 million , comprised of $423.6 million from continuing operations and $42.5 million from discontinued
operations, which was increased by a working capital release of $295.5 million from continuing operations.
Full Year 2024 Highlights
• Copper Production: Record copper production of 369,067 tonnes of copper for the full year which is within the 2024
annual copper production guidance.
• Other Production: During the year, record zinc production of 191,704 tonnes, 7,486 tonnes of nickel and
approximately 158,000 ounces of gold were produced. Production for all metals was within revised guidance ranges.
• Revenue: $4,117 million for the full year, comprised of $3,422.6 million from continuing operations with a realized
copper price1 of $4.18 /lb and a realized gold price1 of $2,532 /oz, and $694.8 million from discontinued operations.
• Adjusted EBITDA1: $1,707.0 million for the full year, comprised of $1,461.8 million from continuing operations and
$245.2 million from discontinued operations.
• Net Earnings and Adjusted Earnings 1: Net loss attributable to shareholders of the Company was $203.5 million,
comprised of $11.1 million ($0.01 per share) net earnings from continuing operations and $214.7 million net loss from
discontinued operations. Net earnings from continuing operations was impacted by non-cash impairments of goodwill
and assets relating to Eagle, Suruca, and Alcaparossa. Adjusted earnings was $358.9 million, $291.7 million ($0.38 per
share) from continuing operations and $67.2 million from discontinued operations.
• Cash Generation: During the year, cash provided by operating activities was $1,518.9 million, $1,300.8 million from
continuing operations and $218.0 million from discontinued operations. Free cash flow from operations 1 was $873.0
million, $797.1 million from continuing operations and $75.9 million from discontinued operations, which included a
working capital release of $220.9 million from continuing operations.
• Balance Sheet: To exercise the Caserones purchase option, the consideration of $350 million was fully funded through
an increase to the Company's term loan from $800 million to $1.15 billion. As at December 31, 2024, the Company had
a net debt1 balance of $1,332.3 million, excluding lease liabilities. Net debt1 is expected to reduce significantly with the
closing of the sale of Neves-Corvo and Zinkgruvan.
• Growth: During the year the Company announced three significant transactions:
◦ On July 2, 2024, the Company closed the option to increase ownership in Caserones to 70%, which adds
approximately 24,000 tonnes of additional attributable copper production to the Company’s production
profile2.
◦ On July 29, 2024, Lundin Mining and BHP announced the joint acquisition of Filo Corp. ("Filo") and the
concurrent formation of a 50/50 joint arrangement ("Joint Arrangement") to hold the Filo del Sol ("FDS") project
and the Josemaria project. The partnership will create a multi -generational mining district with world -class
potential that could support a globally ranked mining complex.
◦ On December 9, 2024, the Company announced the sale of Neves -Corvo and Zinkgruvan to Boliden for total
consideration of up to $1.52 billion. The proceeds from the transaction will strengthen the Company’s balance
sheet and support its growth plans in the Vicuña District.
• Assets and liabilities held for sale and discontinued operations: At December 31, 2024, the Neves -Corvo and
Zinkgruvan reporting segments met the criteria to be classified as held -for-sale and discontinued operations.
Accordingly, all assets and liabilities relating to the Neves -Corvo and Zinkgruvan reporting segments ha ve been
classified as current assets and current liabilities held for sale at December 31, 2024.
Total assets of $1,389.7 million and liabilities of $393.1 million have been classified as held for sale for this purpose. A
net loss from discontinued operations of $214.7 million represents the loss after tax of $278.6 million and earnings
after tax of $63.9 million from Neves-Corvo and Zinkgruvan, respectively, for the year ended December 31, 2024.
1 These are non-GAAP measures. Please refer to the Company's discussion of non-GAAP and other performance measures in its Management's Discussion and
Analysis ("MD&A") for the year ended December 31, 2024 and the Reconciliation of Non -GAAP measures section at the end of this news release.
2 Based on Caserones 2024 revised production guidance as outlined in the outlook section of the MD&A for the year ended Decembe r 31, 2024.
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Summary Financial Results
Three months ended
December 31,
Year ended
December 31,
(US$ millions continuing operations except where noted,
except per share amounts) 2024 2023 2024 2023
Revenue 858.9 893.4 3,422.6 2,743.4
Gross profit 250.6 177.8 942.9 601.5
Attributable net earningsa (195.3) 12.5 11.1 203.2
Net earnings (159.6) 40.4 153.4 276.9
Adjusted earningsa,b (all operations) 119.2 79.7 358.9 336.2
Adjusted earningsa,b — continuing operations 94.8 72.4 291.7 287.5
Adjusted earningsa,b — discontinued operations 24.4 7.3 67.2 48.7
Adjusted EBITDAb (all operations) 425.6 419.7 1,707.0 1,363.5
Adjusted EBITDAb — continuing operations 368.2 367.6 1,461.8 1,145.6
Adjusted EBITDAb — discontinued operations 57.4 52.1 245.2 217.9
Basic earnings per share ("EPS")a (all operations) (0.57) 0.05 (0.26) 0.31
Basic earnings per share ("EPS")a — continuing operations (0.25) 0.02 0.01 0.26
Basic earnings per share ("EPS")a — discontinued
operations
(0.32) 0.03 (0.27) 0.05
Adjusted EPSa,b (all operations) 0.15 0.10 0.46 0.44
Adjusted EPSa,b — continuing operations 0.12 0.09 0.38 0.37
Adjusted EPSa,b — discontinued operations 0.03 0.01 0.09 0.06
Cash provided by operating activities (all operations) 620.3 306.1 1,518.9 1,016.6
Cash provided by operating activities related to continuing
operations
547.3 249.9
1,300.8 827.2
Cash provided by operating activities related to
discontinued operations
73.0 56.2
218.0 189.4
Adjusted operating cash flowb (all operations) 313.9 362.0 1,302.6 1,024.2
Adjusted operating cash flowb — continuing operations 251.8 305.4 1,080.0 847.3
Adjusted operating cash flowb — discontinued operations 62.1 56.7 222.6 176.9
Adjusted operating cash flow per shareb (all operations) 0.40 0.47 1.68 1.33
Adjusted operating cash flow per shareb — continuing
operations
0.32 0.39
1.39 1.10
Adjusted operating cash flow per shareb — discontinued
operations
0.08 0.08
0.29 0.23
Free cash flowb (all operations) 397.9 61.2 571.2 13.5
Free cash flowb — continuing operations 360.0 43.6 508.2 (19.9)
Free cash flowb — discontinued operations 37.9 17.6 63.0 33.4
Free cash flow from operationsb (all operations) 466.0 116.8 873.0 345.1
Free cash flow from operationsb — continuing operations 423.6 95.7 797.1 300.0
Free cash flow from operationsb— discontinued operations 42.5 21.0 75.9 45.1
Cash and cash equivalents 357.5 268.8 357.5 268.8
Net debt excluding lease liabilitiesb (1,332.3) (946.2) (1,332.3) (946.2)
Net debtb
(1,597.8) (1,223.4) (1,597.8) (1,223.4)
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 year ended December 31, 2024 and the Reconciliation of Non -GAAP Measures section at the end of this news release.
• For the year ended December 31, 2024, the Company generated annual revenue from continuing operations of $3.4
billion (2023 - $2.7 billion). Revenue from discontinued operations was $694.8 million (2023 - $648.6 million), and the
combination of revenue from continuing operations and discontinued operations ("all operations") was an annual
record for the Company of $4.1 bi llion (2023 - $3.4 billion). The Company achieved record production of 369,067
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tonnes of copper, record production of 191,704 tonnes of zinc, and 158 thousand ounces ("koz") of gold, which
achieved the most recently disclosed annual guidance for all metals.
• For the quarter ended December 31, 2024, the Company generated revenue from continuing operations of $858.9
million (Q4 2023 - $893.4 million). Net loss in the quarter from continuing operations was $159.6 million (Q4 2023 -
net earnings of $40.4 million) and adjusted EBITDA1 (all operations) was $425.6 million (Q4 2023 - $419.7 million).
• Net loss for the year was $61.3 million, comprised of a net earnings of $153.4 million from continuing operations and
$214.7 million net loss from discontinued operations, a decrease in earnings from the prior year comparable period
of $276.9 million from continuing operations and a decrease from net earnings of $38.4 million from discontinued
operations, primarily due to non-cash impairments of goodwill and assets relating to Neves-Corvo, Eagle, Suruca and
Alcaparrosa during the year, partially offset by higher gross profit.
• Adjusted earnings 1 from continuing operations attributable to shareholders of the Company for the year were
$291.7 million or $0.38 per share. Adjusted earnings 1 from discontinued operations attributable to shareholders of
the Company for the year were $67.2 million or $0.09 per share.
• Cash and cash equivalents at continuing operations as at December 31, 2024 were $357.5 million. As indicated above,
cash provided by operating activities related to continuing operations of $1,300.8 million in the year was used to fund
investing activities from continuing operations of $855.4 million, which primarily includes $807.3 million investment
in mineral properties, plant and equipment, $41.7 million subscription for Filo shares to provide interim financing to
Filo and the final $25.0 million paymen t of contingent consideration for the acquisition of Chapada. Cash used in
financing activities related to continuing operations of $3 49.8 million 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 by debt proceeds, $202.5 million dividends paid to shareholders and $152.0 million in distributions paid to
non-controlling interests.
• Free cash flow 1 from continuing operations for the year was $508.2 million and free cash flow 1 from discontinued
operations for the year was $63.0 million.
• As at February 19, 2025, the Company had cash of approximately $407.1 million and net debt excluding lease liabilities
of approximately $1,322.4 million. Net cash in Vicuña is included on a 50% basis to represent Lundin Mining's
attributable share. Cash and net debt balances include assets and liabilities classified as held-for-sale.
Operational Performance
Total Production
(Contained metal)a 2024 2023
YTD Q4 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1
Copper (t)b 369,067 101,491 99,855 79,708 88,013 314,798 103,337 89,942 60,057 61,462
Zinc (t) 191,704 51,946 46,610 47,460 45,688 185,161 50,719 49,774 36,115 48,553
Nickel (t) 7,486 1,617 893 1,721 3,255 16,429 3,729 4,290 4,686 3,724
Gold (koz)b 158 46 47 32 33 149 44 35 34 36
Molybdenum (t)b 3,183 912 693 714 864 2,024 928 1,096 — —
a. Tonnes (t) and thousands of ounces (koz)
b. Candelaria and Caserones production is on a 100% basis. Caserones results are from July 13, 2023.
Candelaria (80% owned): Candelaria produced, on a 100% basis, 162,487 tonnes of copper, approximately 93,000 ounces
of gold and 2.0 million ounces of silver during the year. Copper and gold production benefited from planned higher grade
ore from Phase 11 and in the second half of the year, the operation produced 98,970 tonnes of copper which was one of its
best second-half performances in its 30-year history. In late 2024, production from Phase 11 shifted to lower average grades,
resulting in annual copper production slightly below the most recently published guidance range. In 2025 , production will
continue to be sourced primarily from Phase 11 with a planned reduction in average copper grades from those realized in
the second half of 2024. Annual gold production was within the most recently disclosed annual guidance range. Copper cash
cost2 of $1.73/lb was within the most recently disclosed 2024 cash cost guidance range and benefitted from higher sales
volumes, favourable foreign exchange, and higher by-product credits.
Caserones (70% owned): Caserones produced, on a 100% basis, 124,761 tonnes of copper and 3,183 tonnes of
molybdenum, both within the most recently disclosed 2024 annual production guidance ranges. Production during the year
was impacted by labour action in August which reduced throughput to approximately 50% capacity over a 14 -day period.
Mine sequencing changes as a result of hydrogeologic conditions in Phase 5 reduced grades and impacted recoveries in the
mill during the quarter. Copper cathode production was positively impacted by increased irrigation pattern on the dump
1 These are non-GAAP measures. Please refer to the Company's discussion of non -GAAP and other performance measures in its MD&A for the year ended
December 31, 2024 and the Reconciliation of Non-GAAP measures section at the end of this news release.
2 This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of the MD&A for discussion and the Reconciliation of Non-GAAP
measures section at the end of this news release .
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leach pad. Copper cash cost2 of $2.51/lb was below the low end of the most recently disclosed cash cost guidance range and
benefitted from higher by-product credits and favourable foreign exchange.
Chapada (100% owned): Chapada produced 43,261 tonnes of copper and approximately 65,000 ounces of gold during the
year, both metals were within the most recently disclosed 2024 production guidance ranges. An optimized mine plan led to
a significant reduction in overall material movement, including waste and ore, and contributed to lower produ ction costs.
Increased processing of ore from the older low -grade stockpile and North pit resulted in lower copper production due to
lower grades and recoveries. Gold p roduction benefited from higher grades and throughput as emphasis was placed on
gold in the current elevated gold price environment. Production costs during the year also benefited from a weakening of
the BRL against the USD. Copper cash cost 1 of $1.58/lb was within the most recently disclosed 2024 cash cost guidance
range and benefited from higher by-product credits and favourable foreign exchange.
Eagle (100% owned): Eagle produced 7,486 tonnes of nickel and 6,366 tonnes of copper during the year. Production was
impacted by reduced mining rates following a fall of ground in the lower ramp in May, which limited access to Eagle East
while ramp rehabilitation was complet ed. During the quarter mining re -commenced at Eagle East and normal throughput
is expected to resume in Q1 2025. Both metals were within the most recently disclosed 2024 production guidance ranges.
Production costs decreased in line with lower production and sales. Nickel cash cost1 of $4.20/lb was above the most recently
disclosed 2024 cash cost guidance range due to mining rates not recovering as quickly as expected in the quarter.
Neves-Corvo (100% owned): Neves-Corvo produced 28,228 tonnes of copper and a record 109,571 tonnes of zinc during the
year. Copper production was within the most recently disclosed production guidance range and zinc production benefited
from higher throughput as a result of the zinc expansion project, although was slightly below the most recently disclosed
annual production guidance range. Production costs during the year decreased in line with sales volumes. Annual copper
cash cost1 of $2.19/lb benefited from higher by -product credits but exceeded the most recently disclosed 2024 cash cost
guidance range as a result of lower than expected sales volumes.
Zinkgruvan (100% owned): Record zinc production of 82,133 tonnes and lead production of 30,888 tonnes during the year
were driven by higher throughput, grades and recoveries. Annual zinc production was within the most recently disclosed
2024 production guidance range. Production costs during the year increased in line with higher zinc and lead production
and sales volumes. Zinc cash cost1 of $0.41/lb was within the most recently disclosed 2024 cash cost guidance range.
Outlook
On January 16, 2025, the Company announced its production, cash cost, capital expenditures and exploration investment
guidance for 2025.
2025 Production and Cash Cost Guidancea
Revised Guidance
(contained metal) Production Cash Cost ($/lb)b
Copper (t) Candelaria (100%) 140,000 – 150,000 1.80 – 2.00c
Caserones (100%) 115,000 – 125,000 2.40 – 2.60
Chapada 40,000 – 45,000 1.80 – 2.00d
Eagle 8,000 – 10,000
Total 303,000 – 330,000 2.05 – 2.30
Gold (koz) Candelaria (100%) 78 – 88
Chapada 57 – 62
Total 135 – 150
Nickel (t) Eagle 8,000 – 11,000 3.05 – 3.25
a. Guidance as outlined in the news release 'Lundin Mining Announces Record Production Results for 2024 and Provides 2025 Gui dance' dated January 16,
2025.
b. 2025 cash costs are based on various assumptions and estimates, including but not limited to: production volumes, commodity prices (Cu: $4.40/lb, Au:
$2,500/oz, Mo: $17.00/lb, Ag: $30.00/oz), foreign exchange rates (USD/CLP:900, USD/BRL:5.50) and operating costs. Cash cost i s a non-GAAP measure - see
section 'Non-GAAP and Other Performance Measures' of the Company's MD&A for the year ended December 31, 2024 and the Reconciliation of Non -GAAP
Measures section at the end of this news release.
c. 68% of Candelaria's total gold and silver production are subject to a streaming agreement. Cash costs are calculated based on receipt of approximately
$433/oz gold and $4.32/oz silver.
d. Chapada's cash cost is calculated on a by -product basis and does not include the effects of its copper stream agreements. Effects of the copper stream
agreements are reflected in copper revenue and will impact realized price per pound.
1 This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
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2025 Capital Expenditure Guidancea
($ millions) Guidanceb
Candelaria (100% basis) 205
Caserones (100% basis) 215
Chapada 85
Eagle 25
Total Sustaining 530
Expansionary - Candelaria (100% basis) 50
Expansionary - Vicuña Joint Arrangement (50% basis) 155
Total Capital Expenditures 735
a. Guidance as outlined in the news release 'Lundin Mining Announces Record Production Results for 2024 and Provides 2025 Guidance' dated January
16, 2025.
b. Sustaining capital expenditure is a supplementary financial measure, and expansionary capital expenditure is a non -GAAP measure – see section
'Non-GAAP and Other Performance Measures' of the Company's MD&A for the year ended December 31, 2024 and the Reconciliation of Non -GAAP
Measures section at the end of this news release.
2025 Exploration Investment Guidance
Total exploration expenditure guidance for 2025 is $40 million.
Exploration
During the quarter, exploration activity focused on in-mine and near-mine targets at the Company's operations. Exploration
drilling at Candelaria was focused on Candelaria South, La Portuguesa and La Espanola.
At Caserones, exploration drilling was completed 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. The drilling program
at Angelica, in search of copper sulphides, was also completed during the quarter.
Drilling at Chapada concentrated on adding high grade resources to Sauva and testing near-mine geochemical anomalies.
At Josemaria, the drilling campaign restarted at Cumbre Verde.
Drilling continued at Eagle during the quarter with one surface hole targeting a geophysical anomaly east of Eagle East. At
Neves-Corvo, the 2024 drilling program focused on extending inferred resources at Lombador North and near-mine drilling
at Neves Southwest concluded at the end of the quarter. Drilling at Zinkgruvan was focused on resource expansion.
All 2024 drilling campaigns were successfully completed by the end of the quarter.
Vicuña
During the quarter, the Company focused on preparing for the completion of the acquisition of Filo and formation of the
50/50 Joint Arrangement with BHP, initially announced on July 29, 2024. The work plan associated with the transaction with
BHP progressed as expected. Subsequent to year-end on January 15, 2025, the Company completed the Filo acquisition and
the Joint Arrangement with BHP , resulting in the Company indirectly holding a 50% interest in Vicuña Corp. (“Vicuña”), which
owns the FDS project and Josemaria project. BHP indirectly owns the remaining 50% interest in Vicuña.
As part of the Joint Arrangement, the 2024 work scope was changed to include incorporation of new studies and preparation
of a resource model relating to FDS, a joint development concept pertaining to the Josemaria and FDS ore bodies as well as
processing facilities and infrastructure. An action plan was developed for the combined project, including a 2025 budget
that included advancement of studies associated with the synergies between the FDS and Josemaria projects, continuation
of the drilling program and advancing the Josemaria project.
Capital expenditures for the Joint Arrangement are forecast to total $312 million on a 100% basis for 2025. The workplan
will focus on FDS drilling, FDS mineral resource estimation, Josemaria mineral resource estimation update, mine planning,
metallurgy, hydrology wells and studies, commencement of access road construction, and exploration at the Cumbre Verde
target. In parallel, engineering studies and trade off analysis will be completed in preparation for future permitting and a
technical report outlining an integrated project plan for development and operation.
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Vicuña is targeting a new mineral resource estimate at FDS and an update to the resource estimate at Josemaria within the
first half of 2025. These resource estimates will form the basis of an integrated technical report which will outline the
development plan for the phased construction of the district.
Drilling is currently underway at FDS and Cumbre Verde. Drilling at FDS will continue throughout the year. The drill program
at FDS will focus on resource growth with multiple step -out targets in all directions from zones of known mineralization,
including both the Bonita and Aurora Zones along with infill drilling to support an initial sulphide mineral resource estimate.
Drilling at Cumbre Verde will follow up on the initial results from last year and target the same mineralized system and
structures discovered to the north of the project.
During the quarter, Josemaria activities were focused on continuing the Environmental Impact Assessment ("EIA") update
and maintaining progress on the water program. Field activities continued with the water program, geotechnical studies,
road maintenance, wetlands biodiversity offset and exploration drilling at Cumbre Verde.
Senior Leadership Appointments
The Company would also like to announce the executive appointments of Eduardo Cortes as Vice President, Mining &
Mineral Resources and Andre Gagnon as Vice President, Geotechnics & Water.
Eduardo Cortes
Eduardo Cortés is the Vice President, Mining & Resources at Lundin Mining Corporate, leading mine planning, reserves,
geology, and metallurgy across the company’s global operations. With more than 12 years of experience across the
Americas, he has a strong track record of mine optimization, cost reduction, and strategic growth.
Previously, at Lundin Mining Corporate, he served as Director, Reserves & Mine Planning, overseeing reserve estimation and
technical assurance, and before that, as Senior Mining Engineer, leading high -impact optimization projects at Candelaria,
Caserones, and Chapada.
Before joining Lundin Mining, Eduardo was a core member of the Fruta del Norte project at Lundin Gold, developing the
mine from feasibility through commercial production. Following this, he served as Chief Engineer at Bluestone Resources,
overseeing mine p lanning efforts. Earlier, at NCL SPA, he worked on major underground projects for Codelco and Anglo
American.
Eduardo holds a Mining Engineering degree from Universidad de Santiago de Chile and is fluent in Spanish and English, with
intermediate Portuguese.
Andre Gagnon
Andre Gagnon was appointed Vice President, Geotechnics & Water. Mr. Gagnon joined Lundin Mining in 2017 and has served
in increasingly senior roles, starting as Senior Tailings & Geotechnical Engineer before progressing to Director, Tailings. Mr.
Gagnon is res ponsible for leading a team of functional experts focused on tailings, water, geotechnical engineering, and
hydrogeology. Mr. Gagnon has more than 18 years of experience in the mining industry.
Prior to joining Lundin Mining, he served as Manager, Tailings at Goldcorp and as a consultant focused on tailings and
geotechnical engineering, and water management.
Mr. Gagnon holds a B.A.Sc. in Geological Engineering from Queen’s University, and an M.Sc. in Engineering Geology from
Imperial College London. He is a registered Professional Engineer in Ontario and British Columbia.
About Lundin Mining
Lundin Mining is a diversified Canadian base metals mining company with projects or operations focused in the Americas
and primarily producing copper, gold and nickel.
The information in this release is subject to the disclosure requirements of Lundin Mining under the EU Market Abuse
Regulation. The information was submitted for publication, through the agency of the contact persons set out below on
February 19, 2025 at 18:35 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
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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 no t 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 MD&A the year ended ended
December 31, 2024 which is available on SEDAR+ at www.sedarplus.ca.
Cash Cost per Pound and All-in Sustaining Costs per pound can be reconciled to Production Costs as follows:
Three months ended December 31, 2024
Operations Candelaria Caserones Chapada Eagle Total -
continuing
operations
Neves-
Corvo
Zinkgruvan Total -
discontinued
operations ($000s, unless otherwise
noted)
(Cu) (Cu) (Cu) (Ni) (Cu) (Zn)
Sales volumes (Contained
metal):
Tonnes 49,052 26,750 10,200 1,088
5,230
18,627
Pounds (000s) 108,141 58,973 22,487 2,399 11,531
41,066
Production costs
486,877
102,300
Less: Royalties and other (27,839) (20)
459,038 102,280
Deduct: By-product credits (137,021) (75,716)
Add: Treatment and refining 27,483 12,128
Cash cost 165,039 147,826 24,107 12,528 349,500 21,230
17,462 38,692
Cash cost per pound ($/lb) 1.53 2.51 1.07 5.22 1.84
0.43
Add: Sustaining capital
55,526 42,988 32,916 5,224
12,680
22,470
Royalties 4,692 7,663 2,689 696 793
—
Reclamation and other
closure accretion and
depreciation
2,129 (4,457) 2,373 1,734 1,184
747
Leases & other 1,449 17,229 1,080 2,691 2,917
74
All-in sustaining cost 228,835 211,249 63,165 22,873 38,804
40,753
AISC per pound ($/lb) 2.12 3.58 2.81 9.53 3.37
0.99
===== SIDA 9 =====
Three months ended December 31, 2023
Operations Candelaria Caserones Chapada Eagle Total -
continuing
operations
Neves-
Corvo
Zinkgruvan Total -
discontinued
operations ($000s, unless otherwise
noted)
(Cu) (Cu) (Cu) (Ni) (Cu) (Zn)
Sales volumes (Contained
metal):
Tonnes 38,888 35,690 13,080 3,105
9,054 17,316
Pounds (000s) 85,733 78,683 28,836 6,845 19,961 38,176
Production costs
533,783
114,254
Less: Royalties and other (22,221) (2,299)
Inventory fair value
adjustment
(7,760)
—
503,802 111,955
Deduct: By-product credits (136,641) (67,523)
Add: Treatment and refining 39,139 18,799
Cash cost 152,276 183,687 54,108 16,229 406,300 39,218 24,013 63,231
Cash cost per pound ($/lb) 1.78 2.33 1.88 2.37 1.96 0.63
Add: Sustaining capital
79,316 55,031 19,858 6,548
28,070 10,546
Royalties — 8,270 2,174 5,003 1,081 —
Reclamation and other
closure accretion and
depreciation
2,158 1,427 2,047 2,620 1,305 933
Leases & other 2,901 25,715 1,131 1,101 106 103
All-in sustaining cost 236,651 274,130 79,318 31,501 69,780 35,595
AISC per pound ($/lb) 2.76 3.48 2.75 4.60 3.50 0.93
Year ended December 31, 2024
Operations Candelaria Caserones Chapada Eagle Total -
continuing
operations
Neves-
Corvo
Zinkgruvan Total -
discontinued
operations ($000s, unless otherwise
noted)
(Cu) (Cu) (Cu) (Ni) (Cu) (Zn)
Sales volumes (Contained
metal):
Tonnes 158,017 113,867 39,615 5,662
26,721 68,086
Pounds (000s) 348,367 251,033 87,336 12,483 58,910 150,104
Production costs
1,898,627
445,227
Less: Royalties and other (84,501) (4,785)
1,814,126 440,442
Deduct: By-product credits (504,431) (305,479)
Add: Treatment and refining 113,565 55,407
Cash cost 603,533 629,582 137,714 52,431 1,423,260 129,128 61,242 190,370
Cash cost per pound ($/lb) 1.73 2.51 1.58 4.20 2.19 0.41
Add: Sustaining capital
275,720 143,965 107,843 21,222
89,302 65,658
Royalties 15,730 32,106 8,580 7,442 3,961 —
Reclamation and other
closure accretion and
depreciation
8,570 (1,262) 10,153 6,767 5,220 4,033
Leases & other 9,133 69,002 3,576 6,949 3,322 309
All-in sustaining cost 912,686 873,393 267,866 94,811 230,933 131,242
AISC per pound ($/lb) 2.62 3.48 3.07 7.60 3.92 0.87
===== SIDA 10 =====
Year ended December 31, 2023
Operations Candelaria Caserones Chapada Eagle Total -
continuing
operations
Neves-
Corvo
Zinkgruvan Total -
discontinued
operations ($000s, unless otherwise noted) (Cu) (Cu) (Cu) (Ni) (Cu) (Zn)
Sales volumes (Contained
metal):
Tonnes 144,473 66,075 43,761 13,339
32,054 65,344
Pounds (000s) 318,508 145,670 96,476 29,407 70,667 144,059
Production costs
1,644,037
442,071
Less: Royalties and other (60,916) (5,321)
Inventory fair value adjustment
(39,945)
—
1,543,176 436,750
Deduct: By-product credits (428,208) (271,707)
Add: Treatment and refining 118,480 64,848
Cash cost 660,160 290,553 219,278 63,457 1,233,448 167,424 62,467 229,891
Cash cost per pound ($/lb) 2.07 1.99 2.27 2.16 2.37 0.43
Add: Sustaining capital 380,112 83,880 72,291 22,201
102,621 53,358
Royalties — 15,820 8,568 22,994 3,949 —
Reclamation and other
closure accretion and
depreciation
9,258 2,560 7,836 11,331 5,387 3,744
Leases & other 13,325 47,944 4,999 4,100 553 427
All-in sustaining cost 1,062,855 440,757 312,972 124,083 279,934 119,996
AISC per pound ($/lb) 3.34 3.03 3.24 4.22 3.96 0.83
===== SIDA 11 =====
Adjusted EBITDA can be reconciled to Net Earnings (Loss) as follows:
Three months ended
December 31,
Year ended
December 31,
($thousands) 2024 2023 2024 2023 2022
Net earnings (loss) — continuing operations (159,618) 40,444 153,354 276,850 316,772
Add back:
Depreciation, depletion and amortization 148,033 181,865 607,744 497,873 416,204
Finance costs, net 38,282 32,023 141,455 91,429 51,317
Income taxes expense 34,767 101,858 229,973 214,366 104,113
EBITDA — continuing operations 61,464 356,190 1,132,526 1,080,518 888,406
Unrealized foreign exchange loss (gain) (10,808) 2,693 (10,994) 1,804 16,491
Unrealized losses (gains) on derivative contracts 85,986 (2,592) 85,168 8,464 (62,971)
Ojos del Salado sinkhole expenses (recoveries) (10,042) 1,687 (9,492) 16,922 63,271
Revaluation loss (gain) on marketable securities (911) (1,393) (7,383) (1,846) (5,201)
Caserones inventory fair value adjustment — 7,760 — 39,945 —
Partial suspension of underground operations at
Eagle
11,436 —
36,073 — —
Revaluation of Caserones purchase option — 2,556 (11,728) 2,556 —
Write-down of assets 4,160 — 22,129 — 5,783
Goodwill and asset impairment 254,218 — 254,218 — 4,280
Inventory write-down (reversal) (26,626) — (26,626) — 62,546
Gain on disposal of subsidiary — — — (5,718) (16,828)
Other (637) 732 (2,085) 2,958 (2,133)
Total adjustments — EBITDA 306,776 11,443 329,280 65,085 65,238
Adjusted EBITDA — continuing operations 368,240 367,633 1,461,806 1,145,603 953,644
Including discontinued operations:
Net earnings (loss) — discontinued operations (244,816) 26,309 (214,671) 38,399 146,761
Add back:
Depreciation, depletion and amortization 32,831 41,191 155,344 155,723 138,546
Finance costs, net 1,813 2,868 9,793 11,270 12,868
Income taxes expense (22,173) 758 (13,711) 2,233 30,515
EBITDA — discontinued operations (232,345) 71,126 (63,245) 207,625 328,690
Unrealized foreign exchange loss (gain) (960) 76 (200) (580) 4,673
Unrealized losses (gains) on derivative contracts (466) (16,717) 18,597 13,468 —
Goodwill and asset Impairment 291,178 — 291,178 — (19)
Other (22) (2,388) (1,114) (2,568) 5,518
Total adjustments — EBITDA discontinued operations 289,730 (19,029) 308,461 10,320 10,172
Adjusted EBITDA — discontinued operations 57,385 52,097 245,216 217,945 338,862
Adjusted EBITDA (all operations) 425,625 419,730 1,707,022 1,363,548 1,292,506
===== SIDA 12 =====
Adjusted Earnings and Adjusted EPS can be reconciled to Net Earnings (Loss) Attributable to Lundin Mining Shareholders
as follows:
Three months ended
December 31,
Year ended
December 31,
($thousands, except share and per share amounts) 2024 2023 2024 2023 2022
Net (loss) earnings attributable to Lundin Mining
shareholders — continuing operations
(195,343) 12,488
11,144 203,163 277,198
Add back:
Total adjustments - EBITDA 306,776 11,443 329,280 65,085 65,238
Tax effect on adjustments (57,600) (2,987) (59,519) (26,925) 2,882
Deferred tax expense due to change in tax rate — 14,500 — 40,200 —
Deferred tax arising from foreign exchange
translation
45,065 41,168
12,712 28,841 (20,733)
Non-controlling interest on adjustments (4,077) (4,221) (1,912) (22,886) 2,026
Total adjustments 290,164 59,903 280,560 84,315 49,413
Adjusted earnings — continuing operations 94,821 72,391 291,704 287,478 326,611
Including discontinued operations:
Net earnings attributable to Lundin Mining
shareholders - discontinued operations1 (244,816) 26,309 (214,671) 38,399 149,652
Add back:
Total adjustments - EBITDA - discontinued operations 289,730 (19,029) 308,461 10,320 10,172
Tax effect on adjustments (20,544) — (26,547) — (3,679)
Total adjustments 269,186 (19,029) 281,914 10,320 6,493
Adjusted earnings — discontinued operations 24,370 7,280 67,243 48,719 156,145
Adjusted earnings (all operations) 119,191 79,671 358,947 336,197 482,756
Basic weighted average number of shares
outstanding
776,720,828
773,476,216
774,825,230
772,532,260 762,518,753
Net (loss) earnings attributable to Lundin Mining
shareholders - continuing operations
(0.25) 0.02
0.01 0.26 0.36
Total adjustments 0.37 0.08 0.36 0.11 0.06
Adjusted EPS — continuing operations 0.12 0.09 0.38 0.37 0.43
Net (loss) earnings attributable to Lundin Mining
shareholders - discontinued operations
(0.32) 0.03
(0.28) 0.05 0.20
Total adjustments 0.35 (0.03) 0.36 0.01 0.01
Adjusted EPS — discontinued operations 0.03 0.01 0.09 0.06 0.20
Net (loss) earnings attributable to Lundin Mining
shareholders
(0.57) 0.05
(0.26) 0.31 0.56
Total adjustments 0.72 0.05 0.73 0.12 0.07
Adjusted EPS (all operations) 0.15 0.10 0.46 0.44 0.63
1 Represents Net (loss) earnings attributable to Lundin Mining Corporation shareholders less Net earnings from continuing
operations attributable to Lundin Mining Corporation shareholders.
===== SIDA 13 =====
Free Cash Flow from Operations and Free Cash Flow can be reconciled to Cash provided by Operating Activities on the
Company's Consolidated Statement of Cash Flows as follows:
Three months ended
December 31,
Year ended
December 31,
($thousands) 2024 2023 2024 2023 2022
Cash provided by operating activities related to
continuing operations
547,267 249,875
1,300,848 827,244 615,986
Sustaining capital expenditures (136,674) (165,211) (549,100) (571,245) (520,465)
General exploration and business development 12,974 11,062 45,352 44,010 135,213
Free cash flow from operations — continuing
operations
423,567 95,726
797,100 300,009 230,734
General exploration and business development (12,974) (11,062) (45,352) (44,010) (135,213)
Expansionary capital expenditures (50,607) (41,082) (243,566) (275,913) (171,094)
Free cash flow — continuing operations 359,986 43,582 508,182 (19,914) (75,573)
Cash provided by operating activities related to
discontinued operations
73,014 56,206
218,009 189,368 260,903
Sustaining capital expenditures (35,150) (38,616) (154,960) (155,979) (119,366)
General exploration and business development 4,614 3,438 12,843 11,682 9,140
Free cash flow from operations —
discontinued operations
42,478 21,028
75,892 45,071 150,677
General exploration and business development (4,614) (3,438) (12,843) (11,682) (9,140)
Expansionary capital expenditures — — — — (31,899)
Free cash flow — discontinued operations 37,864 17,590 63,049 33,389 109,638
Free cash flow from operations (all operations) 466,045 116,754 872,992 345,080 381,411
Free cash flow (all operations) 397,850 61,172 571,231 13,475 34,065
Adjusted Operating Cash Flow and Adjusted Operating Cash Flow per Share can be reconciled to Cash Provided by
Operating Activities on the Company's Consolidated Statement of Cash Flows as follows:
Three months ended
December 31,
Year ended
December 31,
($thousands, except share and per share
amounts)
2024 2023
2024 2023 2022
Cash provided by operating activities related to
continuing operations
547,267 249,875
1,300,848 827,244 615,986
Changes in non-cash working capital items (295,508) 55,518 (220,880) 20,032 124,087
Adjusted operating cash flow — continuing
operations
251,759 305,393
1,079,968 847,276 740,073
Cash provided by operating activities related to
discontinued operations
73,014 56,206
218,009 189,368 260,903
Changes in non-cash working capital items (10,895) 447 4,615 (12,427) (8,031)
Adjusted operating cash flow — discontinued
operations
62,119 56,653
222,624 176,941 252,872
Adjusted operating cash flow (all operations) 313,878 362,046 1,302,592 1,024,217 992,945
Basic weighted average number of shares
outstanding
776,720,828 773,476,216
774,825,230 772,532,260 762,518,753
Adjusted operating cash flow per share —
continuing operations
$ 0.32 0.39
1.39 1.10 1.00
Adjusted operating cash flow per share —
discontinued operations
$ 0.08 0.08
0.29 0.23 0.30
Adjusted operating cash flow per share (all
operations)
$ 0.40 0.47
1.68 1.33 1.30
===== SIDA 14 =====
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 Consolidated Balance Sheets as follows:
($ thousands), continuing operations December 31, 2024 December 31, 2023 December 31, 2022
Debt and lease liabilities (1,610,925) (1,273,162) (27,179)
Current portion of debt and lease liabilities (395,232) (212,646) (170,149)
Less deferred financing fees (netted in above) (7,656) (6,374) (4,926)
Add debt and lease liabilities related to liabilities
classified as held-for-sale (16,266) - -
(2,030,079) (1,492,182) (202,254)
Cash and cash equivalents 357,478 268,793 191,387
Add cash and cash equivalents related to assets
classified as held-for-sale 74,801 - -
Net debt (1,597,800) (1,223,389) (10,867)
Lease liabilities 249,185 277,208 27,166
Lease liabilities related to liabilities classified as held-
for-sale 16,266 - -
Net debt excluding lease liabilities (1,332,349) (946,181) 16,299
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 pe rmitting or other
regulatory requirements; anticipated exploration and development activities at the Company’s proj ects; the Company’s integration of acquisitions and
expansions and any anticipated benefits thereof, including the anticipated project development and other plans and expectatio ns with respect to the 50/50
joint arrangement with BHP; the timing and complet ion of the sale of the Company’s European assets; 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, gold, zinc,
nickel and other metals; anticipated costs; ability to achieve goals; the prompt and effective integration of acquisitions an d the realization of synergies and
economies of scale in connection therewith; tha t 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, such information
is 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: dependence on international market prices and demand for the metals that the Company produces; political, economic, and regulatory
uncertainty in operating jurisdictions, including but not limited to those related to permitting and approvals, nationalizati on or exp ropriation without fair
compensation, environmental and tailings management, labour, trade relations, and transportation; risks relating to mine closure and reclamation obligations;
health and safety hazards; inherent risks of mining, not all of which related risk events are insurable; risks relating to tailings and waste management facilities;
risks relating to the Company’s indebtedness; challenges and conflicts that may arise in partnerships and joint operations; r isks relating to development
projects; r isks that revenue may be significantly impacted in the event of any production stoppages or reputational damage in Chile; the impact of global
financial conditions, market volatility and inflation; business interruptions caused by critical infrastructure f ailures; challenges of effective water management;
exposure to greater foreign exchange and capital controls, as well as political, social and economic risks as a result of the Company’s operation in emerging
markets; risks relating to stakeholder opposition to continued operation, further development, or new development of the Company’s projects and mines; any
breach or failure information systems; risks relating to reliance on estimates of future production; risks relating to litiga tion and administrative proceedings
which the Company may be subject to from time to time; risks relating to acquisitions or business arrangements; risks relatin g to competition in the industry;
failure to comply with existing or new laws or changes in laws; challenges or defect s in title or termination of mining or exploitation concessions; the exclusive
jurisdiction of foreign courts; the outbreak of infectious diseases or viruses; risks relating to taxation changes; receipt of and ability to maintain all permits that
are required for operation; minor elements contained in concentrate products; changes in the relationship with its employees and contr actors; the Company’s
Mineral Reserves and Mineral Resources which are estimates only; payment of dividends in the future; complian ce with environmental, health and safety laws
and regulations, including changes to such laws or regulations; interests of significant shareholders of the Company; asset v alues being subject to impairment
charges; potential for conflicts of interest and pu blic association with other Lundin Group companies or entities; activist shareholders and proxy solicitation
firms; risks associated with climate change; the Company's common shares being subject to dilution; ability to attract and re tain highly skilled em ployees;
reliance on key personnel and reporting and oversight systems; risks relating to the Company's internal controls; counterpart y and customer concentration
risk; risks associated with the use of derivatives; exchange rate fluctuations; the completio n of the sale of the Company’s European assets; and other risks and
uncertainties, including but not limited to those described in the "Risks and Uncertainties” section of the Company’s MD&A fo r the year ended December 31,
2024 and the “Risks and Uncertain ties” section of the Company’s Annual Information Form for the year ended December 31, 2024, which are available on
SEDAR+ at www.sedarplus.ca under the Company’s profile.
All of the forward -looking information in this document are qualified by these cautionary statements. Although the Company has attempted to iden tify
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 i s not exhaustive of all factors and
assumptions which may have been used. Should o ne 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 o f 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 15 =====
Management’s Discussion and Analysis
For the year ended December 31, 2024
This management’s discussion and analysis (“MD&A”) has been prepared as of February 19, 2025 and should be read in
conjunction with the Company’s consolidated audited financial statements for the year ended December 31, 2024 ("the
Consolidated Financial Statements"). The Consolidated Financial Statements are prepared in accordance with International
Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”).
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 fourth quarter ("Q4") of 2024. "This year" or
"The year" means the year ended December 31, 2024. Reference to "discontinued operations" is to Neves-Corvo and
Zinkgruvan.
About Lundin Mining
Lundin Mining Corporation (“Lundin Mining” or the “Company”) is a diversified Canadian base metals mining company with
projects or operations focused in the Americas and primarily producing copper, gold and nickel.
On December 9, 2024, the Company announced that it had entered into a definitive agreement with Boliden AB ("Boliden")
to sell its interest in the Neves-Corvo and Zinkgruvan mines located in Portugal and Sweden, respectively. The transaction is
expected to close in mid-2025 subject to customary conditions and regulatory approvals. These assets are reported as
assets held for sale and their associated liabilities as liabilities held for sale in the Company's Consolidated Financial
Statements and MD&A, and the results from their operations are reported as discontinued operations. For further
information refer to Note 3 of the Consolidated Financial Statements.
Table of Contents
Highlights ............................................................................................................................................................................... 1
Outlook .................................................................................................................................................................................. 6
Selected Fourth Quarter and Annual Financial Information ................................................................................................. 7
Selected Quarterly Financial Information .............................................................................................................................. 9
Summary of Quarterly Results ............................................................................................................................................... 10
Revenue Overview ................................................................................................................................................................. 11
Financial Results ..................................................................................................................................................................... 14
Fourth Quarter Financial Results ........................................................................................................................................... 17
Mining Operations ................................................................................................................................................................. 19
Vicuña Projects ....................................................................................................................................................................... 34
Exploration Update ................................................................................................................................................................ 34
Liquidity and Capital Resources ............................................................................................................................................. 35
Non-GAAP and Other Performance Measures ...................................................................................................................... 39
Other Information and Advisories ......................................................................................................................................... 48
Outstanding Share Data ......................................................................................................................................................... 50
===== SIDA 16 =====
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; the Company’s integration of
acquisitions and expansions and any anticipated benefits thereof, including the anticipated project development and other plans and expectations with respect to the 50/50
joint arrangement with BHP; the timing and completion of the sale of the Company’s European assets; and expectations for other economic, business, and/or competitive
factors. Words such as “believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “goal”, “aim”, “intend”, “continue”, “budget”, “estimate”, “may”, “will”, “can”, “could”,
“should”, “schedule” and similar expressions identify forward-looking information.
Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation, the expectations and beliefs of management, including
that the Company can access financing, appropriate equipment and sufficient labour; assumed and future price of copper, gold, zinc, nickel and other metals; anticipated costs;
ability to achieve goals; the prompt and effective integration of acquisitions and the realization of synergies and economies of scale in connection therewith; that the political
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, such information is 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: dependence on international market prices and demand for the metals that the Company produces; political, economic,
and regulatory uncertainty in operating jurisdictions, including but not limited to those related to permitting and approvals, nationalization or expropriation without fair
compensation, environmental and tailings management, labour, trade relations, and transportation; operating jurisdictions, including but not limited to those related to
permitting and approvals, nationalization or expropriation without fair compensation, environmental and tailings management, labour, trade relations, and transportation; risks
relating to mine closure and reclamation obligations; health and safety hazards; inherent risks of mining, not all of which related risk events are insurable; risks relating to tailings
and waste management facilities; risks relating to the Company’s indebtedness; challenges and conflicts that may arise in partnerships and joint operations; risks relating to
development projects; risks that revenue may be significantly impacted in the event of any production stoppages or reputational damage in Chile; the impact of global financial
conditions, market volatility and inflation; business interruptions caused by critical infrastructure failures; challenges of effective water management; exposure to greater foreign
exchange and capital controls, as well as political, social and economic risks as a result of the Company’s operation in emerging markets; risks relating to stakeholder opposition
to continued operation, further development, or new development of the Company’s projects and mines; any breach or failure information systems; risks relating to reliance on
estimates of future production; risks relating to litigation and administrative proceedings which the Company may be subject to from time to time; risks relating to acquisitions
or business arrangements; risks relating to competition in the industry; failure to comply with existing or new laws or changes in laws; challenges or defects in title or termination
of mining or exploitation concessions; the exclusive jurisdiction of foreign courts; the outbreak of infectious diseases or viruses; risks relating to taxation changes; receipt of and
ability to maintain all permits that are required for operation; minor elements contained in concentrate products; changes in the relationship with its employees and contractors;
the Company’s Mineral Reserves and Mineral Resources which are estimates only; payment of dividends in the future; compliance with environmental, health and safety laws
and regulations, including changes to such laws or regulations; interests of significant shareholders of the Company; asset values being subject to impairment charges; potential
for conflicts of interest and public association with other Lundin Group companies or entities; activist shareholders and proxy solicitation firms; risks associated with climate
change; the Company's common shares being subject to dilution; ability to attract and retain highly skilled employees; reliance on key personnel and reporting and oversight
systems; reliance on key personnel and reporting and oversight systems; risks relating to the Company's internal controls; counterparty and customer concentration risk; risks
associated with the use of derivatives; exchange rate fluctuations; the completion of the sale of the Company’s European assets; 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, 2024, which are available on SEDAR+ at www.sedarplus.ca under the Company’s profile.
All of the forward-looking information in this document is qualified by these cautionary statements. Although the Company has attempted to identify important factors that
could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated,
estimated, forecasted or intended and readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Should one or
more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking
information. Accordingly, there can be no assurance that forward-looking information will prove to be accurate and forward-looking information is not a guarantee of future
performance. Readers are advised not to place undue reliance on forward-looking information. The forward-looking information contained herein speaks only as of the date of
this document. The Company disclaims any intention or obligation to update or revise forward-looking information or to explain any material difference between such and
subsequent actual events, except as required by applicable law.
===== SIDA 17 =====
Highlights
For the year ended December 31, 2024, the Company generated annual revenue from continuing operations of $3.4 billion
(2023 - $2.7 billion). Revenue from discontinued operations was $694.8 million (2023 - $648.6 million), and the combination
of revenue from continuing operations and discontinued operations ("all operations") was an annual record for the
Company of $4.1 billion (2023 - $3.4 billion). Revenue in 2024 benefited from increased realized copper and gold prices,
combined with record production of 369,067 tonnes of copper, record production of 191,704 tonnes of zinc, and 158
thousand ounces ("koz") of gold, which achieved the Company's most recently disclosed annual guidance for these metals.
Net loss in 2024 for all operations of $61.3 million (2023 - $315.2 million net earnings) included $153.4 million earnings
from continuing operations (2023 - $276.9 million) and were impacted by non-cash impairments totaling $254.2 million
($186.1 million net of tax) relating to Eagle, Suruca (Chapada) and Alcaparrosa (Ojos complex at Candelaria). Additionally,
net loss benefited from a $28.3 million ($18.7 million net of tax) non-cash partial reversal of a previous long-term ore
stockpile inventory write-down at Chapada. Net loss in 2024 also included a $214.7 million net loss from discontinued
operations which was impacted by a non-cash impairment of $291.2 million ($270.3 million net of tax) related to the sale of
Neves-Corvo. Excluding impairments and other items, s trong annual production in 2024 resulted in adjusted earnings 1 (all
operations) of $358.9 million (2023 - $336.2 million) and adjusted EBITDA1 (all operations) of $1,707.0 million (2023 -
$1,363.5 million). Adjusted EBITDA1 — continuing operations in 2024 amounted to $1,461.8 million (2023 - $1,145.6
million).
In 2024, f ree cash flow from operations 1 (all operations) of $873.0 million (2023 - $345.1 million) and free cash flow 1 (all
operations) of $571.2 million (2023 - $13.5 million) benefited from increased revenue, positive working capital inflows and a
reduction in sustaining capital expenditure1.
For the quarter ended December 31, 2024, the Company generated revenue from continuing operations of $858.9 million
(Q4 2023 - $893.4 million) and from discontinued operations of $165.0 million (Q4 2023 - $166.6 million). Net loss in the
quarter from continuing operations was $159.6 million (Q4 2023 - net earnings of $40.4 million) and from discontinued
operations was $244.8 million (Q4 2023 - net earnings of $26.3 million), and in both cases were impacted by impairments.
Net loss in the quarter from continuing operations was also impacted by the non-cash partial reversal of a previous long-
term ore stockpile inventory write-down at Chapada. E xcluding impairments and other items, adjusted earnings (all
operations) in the quarter was $119.2 million (Q4 2023 - $79.7 million) and adjusted EBITDA (all operations) was $425.6
million (Q4 2023 - $419.7 million). Adjusted earnings (all operations) during the quarter benefitted from higher gross profit
as well as a $41.5 million deferred tax recovery as a result of an annual recognition of deferred tax assets at Caserones to
utilize accumulated tax losses.
At December 31, 2024, the Company had net debt excluding lease liabilities1 of $1,332.3 million (December 31, 2023 -
$946.2 million).
1
1 This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
===== SIDA 18 =====
Operational Performance
Candelaria (80% owned): Candelaria produced, on a 100% basis, 162,487 tonnes of copper, approximately 93,000 ounces
of gold and 2.0 million ounces of silver during the year. Copper and gold production benefited from planned higher grade
ore from Phase 11 and in the second half of the year, the operation produced 98,970 tonnes of copper which was one of its
best second-half performances in its 30 year history. In late 2024 production from Phase 11 shifted to lower average grades,
resulting in annual copper production slightly below the most recently published guidance range. In 2025 production will
continue to be sourced primarily from Phase 11 with a planned reduction in average copper grades from those realized in
the second half of 2024. Annual gold production was within the most recently disclosed annual guidance range. Copper
cash cost1 of $1.73/lb was within the most recently disclosed 2024 cash cost guidance range and benefitted from higher
sales volumes, favourable foreign exchange, and higher by-product credits.
Caserones (70% owned): Caserones produced , on a 100% basis, 124,761 tonnes of copper and 3,183 tonnes of
molybdenum, both within the most recently disclosed 2024 annual production guidance ranges. Production during the year
was impacted by labour action in August which reduced throughput to approximately 50% capacity over a 14-day period.
Mine sequencing changes as a result of hydrogeologic conditions in Phase 5 reduced grades and impacted recoveries in the
mill during the quarter. Copper cathode production was positively impacted by increased irrigation pattern on the dump
leach pad. Copper cash cost1 of $2.51/lb was below the low end of the most recently disclosed cash cost guidance range and
benefitted from higher by-product credits and favourable foreign exchange.
Chapada (100% owned): Chapada produced 43,261 tonnes of copper and approximately 65,000 ounces of gold during the
year, both metals were within the most recently disclosed 2024 production guidance ranges. An optimized mine plan led to
a significant reduction in overall material movement, including waste and ore, and contributed to lower production costs.
Increased processing of ore from the older low-grade stockpile and North pit resulted in lower copper production due to
lower grades and recoveries. Gold production benefited from higher grades and throughput as emphasis was placed on
gold in the current elevated gold price environment. Production costs during the year also benefited from a weakening of
the BRL against the USD. Copper cash cost1 of $1.58/lb was within the most recently disclosed 2024 cash cost guidance
range and benefited from higher by-product credits and favourable foreign exchange.
Eagle (100% owned): Eagle produced 7,486 tonnes of nickel and 6,366 tonnes of copper during the year. Production was
impacted by reduced mining rates following a fall of ground in the lower ramp in May, which limited access to Eagle East
while ramp rehabilitation was completed. During the quarter mining re-commenced at Eagle East and normal throughput is
expected to resume in Q1 2025. Both metals were within the most recently disclosed 2024 production guidance ranges.
Production costs decreased in line with lower production and sales. Nickel cash cost1 of $4.20/lb was above the most
recently disclosed 2024 cash cost guidance range due to mining rates not recovering as quickly as expected in the quarter.
Neves-Corvo (100% owned): Neves-Corvo produced 28,228 tonnes of copper and a record 109,571 tonnes of zinc during
the year. Copper production was within the most recently disclosed production guidance range and zinc production
benefited from higher throughput as a result of the zinc expansion project, although was slightly below the most recently
disclosed annual production guidance range. Production costs during the year decreased in line with sales volumes. Annual
copper cash cost1 of $2.19/lb benefited from higher by-product credits but exceeded the most recently disclosed 2024 cash
cost guidance range as a result of lower than expected sales volumes.
Zinkgruvan (100% owned): Record zinc production of 82,133 tonnes and lead production of 30,888 tonnes during the year
were driven by higher throughput, grades and recoveries. Annual zinc production was within the most recently disclosed
2024 production guidance range. Production costs during the year increased in line with higher zinc and lead production
and sales volumes. Zinc cash cost1 of $0.41/lb was within the most recently disclosed 2024 cash cost guidance range.
2
1 This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
===== SIDA 19 =====
2024 Production, Cash Cost and Capital Expenditure Summary
Total 2024 production, cash costs and capital expenditures are compared to the most recent 2024 guidance as follows:
Production Cash Cost ($/lb)a
(Contained metal in concentrate) Actual Guidanceb Actual Guidanceb
Copper (t) Candelaria (100%) 162,487 165,000 - 173,000 1.73 1.60 – 1.80
Caserones (100%) 124,761 121,000 - 125,000 2.51 2.60 – 2.80
Chapada 43,261 43,000 - 48,000 1.58 1.55 – 1.65
Eagle 6,366 6,000 - 8,000
Total from continuing operations 336,875
Neves-Corvo 28,228 27,000 - 30,000 2.19 1.95 – 2.15
Zinkgruvan 3,964 4,000 - 5,000
Total 369,067 366,000 - 389,000
Zinc (t) Neves-Corvo 109,571 111,000 - 116,000
Zinkgruvan 82,133 79,000 - 83,000 0.41 0.40 – 0.45
Total from discontinued
operations 191,704 190,000 - 199,000
Gold (koz) Candelaria (100%) 93 92 - 102
Chapada 65 63 - 68
Total 158 155 - 170
Nickel (t) Eagle 7,486 7,000 - 9,000 4.20 3.70 – 3.90
Molybdenum (t) Caserones (100%) 3,183 2,800 - 3,300
2024 Capital Expenditurec
($ thousands) Actual Guidanceb
Candelaria (100%) 275,720 275,000
Caserones (100%) 143,965 135,000
Chapada 107,843 110,000
Eagle 21,222 25,000
Other 350 —
Total from continuing operations 549,100
Neves-Corvo 89,302 110,000
Zinkgruvan 65,658 65,000
Total Sustaining Capital 704,060 720,000
Expansionary - Josemariad 243,566 230,000
Total Capital Expenditures 947,626 950,000
a. Cash cost is a non-GAAP measure - see Section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
b. Guidance as disclosed in the Company's MD&A for the three and nine months ended September 30, 2024 with trending commentary in the MD&A
for the three and nine months ended September 30, 2024.
c. 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.
d. Expansionary Capital Expenditure excludes capitalized interest.
3
===== SIDA 20 =====
Corporate Updates
• On February 12, 2025, the Company reported its Mineral Resource and Mineral Reserve estimates as at December 31,
2024 (or as otherwise specified).
• On January 30, 2025, t he Company announced that it received notice from the Superintendencia del Medio Ambiente
("SMA") following investigative proceedings involving the sinkhole that occurred at the Alcaparrosa mine located in the
Candelaria complex in 2022. The notice levies a fine of $3.3 million and orders the continued closure of the Alcaparrosa
mine, based on four violations investigated. Mining operations at Alcaparrosa have been suspended since the incident
occurred in 2022 while operations at the Candelaria mine continue unaffected. As a result of the permanent mine
closure, a $55.9 million impairment ($41.6 million net of tax) was recorded in December 2024.
• On January 15, 2025, the Company announced the completion of the joint acquisition (the “Filo Acquisition”) with BHP
Investments Canada Inc. ("BHP") of all of the issued and outstanding common shares (the "Filo Shares") of Filo Corp.
("Filo") not already owned by Lundin Mining, BHP and their respective affiliates. Concurrently, Lundin Mining and BHP
have formed a 50/50 joint arrangement, Vicuña Corp. (the “Joint Arrangement” or “Vicuña”), holding the Filo del Sol
project (“FDS”) and the Josemaria project, collectively the ("Vicuña Projects"). On completion, BHP paid Lundin Mining
a cash consideration of $690 million for a 50% interest in the Josemaria project and Lundin Mining paid C$877.8 million
in cash and 94.1 million Lundin Mining shares to Filo shareholders for its 50% interest in Filo.
• On December 9, 2024, the Company announced that it signed a definitive agreement with Boliden to sell its Neves-
Corvo operation in Portugal and Zinkgruvan operation in Sweden to Boliden AB. Under the terms of the agreement,
Lundin Mining will receive upfront cash consideration of $1.37 billion upon closing, based on a cash-free and debt-free
enterprise value of $1.3 billion as of an August 31, 2024 lock box date. In addition, Lundin Mining will receive up to
$150 million in contingent cash consideration upon satisfaction of certain conditions. The transaction is not subject to
shareholder approval or any financing conditions. The transaction is anticipated to close in mid-2025, subject to the
completion of customary conditions and regulatory approvals.
• 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 interest 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.
2024 Financial Performance
• Gross profit from continuing operations for the year of $942.9 million was $341.3 million higher than in the prior year
comparable period of $601.5 million. The increase is primarily due to higher realized copper and gold prices, higher
production, the inclusion of Caserones results for the full year (acquired on July 13, 2023), and the non-cash partial
reversal of a previous long-term ore stockpile inventory write-down at Chapada. Gross profit from discontinued
operations was $94.2 million (2023 - $50.8 million).
• Net earnings from continuing operations for the year of $153.4 million decreased from the prior year comparable
period of $276.9 million. Net earnings were impacted by non-cash impairments recognized in the fourth quarter
including $104.9 million ($82.8 million net of tax) relating to the Eagle mine due to a decline in nickel prices and
prolonged rehabilitation of the Eagle East ramp, $93.4 million ($61.7 million net of tax) related to the Suruca gold
deposit near Chapada following the removal of reserves and $55.9 million ($41.6 million net of tax) due to the
continued closure of the Alcaparrosa mine within the Candelaria mining complex . Additionally, net earnings benefited
4
===== SIDA 21 =====
from a $28.3 million ($18.7 million net of tax) non-cash partial reversal of of a previous long-term ore stockpile
inventory write-down at Chapada. Net loss from discontinued operations was $214.7 million and include a non-cash
impairment of $291.2 million ($270.3 million net of tax) to align the carrying value of Neves-Corvo with expected cash
consideration for this asset. The reduction in carrying value for Neves-Corvo is expected to result in a gain on sale for
the disposal group as a whole, upon closing of the transaction.
• Adjusted earnings 1 (all operations) for the year of $358.9 million, increased from the prior year comparable period of
$336.2 million as a result of higher gross profit, partially offset by reduced foreign exchange and trading gains on debt
and equity investments supporting capital funding for the Josemaria Project and higher interest expense as a result of
higher debt during the year.
• Cash provided by operating activities related to continuing operations for the year of $1,300.8 million represented an
increase of $473.6 million from the prior year comparable period of $827.2 million. The increase was primarily due to
higher gross profit and positive working capital inflows including net collections of trade receivables, timing of tax
payments and $45.0 million in payments received by Caserones relating to two shipments of copper concentrate
scheduled for December 2024 that were delayed to early January due to certain operational and weather-related
issues. Cash provided by operating activities related to discontinued operations for the year was $218.0 million (2023 -
$189.4 million).
• For the year, sustaining capital expenditures from continuing operations of $549.1 million were lower than in the prior
year comparable period of $571.2 million. The net reduction was primarily due to lower spending at Candelaria from
reduced deferred stripping in 2024 and lower spending on the Los Diques tailing storage facility. These reductions were
partially offset by increased deferred stripping and water management expenditures at Chapada, and the addition of
Caserones' sustaining capital expenditures for the full year. Expansionary capital expenditures 1 of $243.6 million for the
year were lower than in the prior year comparable period of $275.9 million, as a result of optimized spending on the
Josemaria Project before formation of the Vicuña Joint Arrangement. Sustaining capital expenditures related to Neves-
Corvo and Zinkgruvan were $89.3 million and $65.7 million, respectively, for the year.
• Free cash flow 1 (all operations) for the year of $571.2 million was higher than in the prior year comparable period of
$13.5 million primarily due to increased cash provided by operating activities. Free cash flow from discontinued
operations for the year was $63.0 million.
2024 Financial Position and Financing
• Cash and cash equivalents at continuing operations as at December 31, 2024 were $357.5 million. As indicated above,
cash provided by operating activities related to continuing operations of $1,300.8 million in the year was used to fund
investing activities from continuing operations of $855.4 million, which primarily includes $807.3 million investment in
mineral properties, plant and equipment, $41.7 million subscription for Filo shares to provide interim financing to Filo
and the final $25.0 million payment of contingent consideration for the acquisition of Chapada. Cash used in financing
activities related to continuing operations of $349.8 million 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 by debt
proceeds, $202.5 million dividends paid to shareholders and $152.0 million in distributions paid to non-controlling
interests.
• As at December 31, 2024, the Company had net debt1 of $1,597.8 million and net debt excluding lease liabilities of
$1,332.3 million.
• As at February 19, 2025, the Company had cash of approximately $407.1 million and net debt excluding lease liabilities
of approximately $1,322.4 million. Net cash in Vicuña is included on a 50% basis to represent Lundin Mining's
attributable share. Cash and net debt balances include assets and liabilities classified as held-for-sale.
5
1 This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
===== SIDA 22 =====
2025 Outlook
On January 16, 2025, the Company announced its production, cash cost, capital expenditures and exploration investment
guidance for 2025.
2025 Production and Cash Cost Guidance
Guidancea
(contained metal) Production Cash Cost ($/lb)b
Copper (t) Candelaria (100%) 140,000 – 150,000 1.80 – 2.00c
Caserones (100%) 115,000 – 125,000 2.40 – 2.60
Chapada 40,000 – 45,000 1.80 – 2.00d
Eagle 8,000 – 10,000
Total 303,000 – 330,000 2.05 – 2.30
Gold (koz) Candelaria (100%) 78 – 88
Chapada 57 – 62
Total 135 – 150
Nickel (t) Eagle 8,000 – 11,000 3.05 – 3.25
a. Guidance as outlined in the news release 'Lundin Mining Announces Record Production Results for 2024 and Provides 2025 Guidance' dated January
16, 2025.
b. 2025 cash costs are based on various assumptions and estimates, including but not limited to: production volumes, commodity prices (Cu: $4.40/lb,
Au: $2,500/oz, Mo: $17.00/lb, Ag: $30.00/oz), foreign exchange rates (USD/CLP:900, USD/BRL:5.50) and operating costs. Cash cost is a non-GAAP
measure - see section 'Non-GAAP and Other Performance Measures' of this MD&A for discussion.
c. 68% of Candelaria's total gold and silver production are subject to a streaming agreement. Cash costs are calculated based on receipt of approximately
$433/oz gold and $4.32/oz silver.
d. Chapada's cash cost is calculated on a by-product basis and does not include the effects of its copper stream agreements. Effects of the copper stream
agreements are reflected in copper revenue and will impact realized price per pound.
2025 Capital Expenditure Guidanceb
($ millions) Guidancea
Candelaria (100% basis) 205
Caserones (100% basis) 215
Chapada 85
Eagle 25
Total Sustaining 530
Expansionary - Candelaria (100% basis) 50
Expansionary - Vicuña Joint Arrangement (50% basis) 155
Total Capital Expenditures 735
a. Guidance as outlined in the news release 'Lundin Mining Announces Record Production Results for 2024 and Provides 2025 Guidance' dated January
16, 2025.
b. Sustaining capital expenditure is a supplementary financial measure, and expansionary capital expenditure is a non-GAAP measure – see Section "Non-
GAAP and Other Performance Measures" of this MD&A for discussion.
2025 Exploration Investment Guidance
Total exploration expenditure guidance for 2025 is $40 million.
6
===== SIDA 23 =====
2024 Selected Fourth Quarter and Annual Financial Information
Three months ended
December 31,
Year ended
December 31,
($ millions continuing operations except where
noted)
2024 2023 2024 2023 2022
Revenue 858.9 893.4 3,422.6 2,743.4 2,315.6
Costs of goods sold:
Production costs (486.9) (533.8) (1,898.6) (1,644.0) (1,216.6)
Depreciation, depletion and amortization (148.0) (181.9) (607.7) (497.9) (416.2)
Inventory (write-down) reversal 26.6 — 26.6 — (62.5)
Gross profit 250.6 177.8 942.9 601.5 620.3
Net earnings from continuing operations
attributable to:
Lundin Mining shareholders (195.3) 12.5 11.1 203.2 277.2
Non-controlling interests 35.7 28.0 142.2 73.7 36.7
Net earnings (loss) from continuing operations (159.6) 40.4 153.4 276.9 313.9
Net earnings (loss) from discontinued
operations (244.8) 26.3 (214.7) 38.4 149.7
Net earnings attributable to:
Lundin Mining shareholders (440.2) 38.8 (203.5) 241.6 426.9
Non-controlling interests 35.7 28.0 142.2 73.7 36.7
Net earnings (404.4) 66.8 (61.3) 315.2 463.6
Adjusted earnings1 (all operations) 119.2 79.7 358.9 336.2 482.8
Adjusted earnings1 — continuing operations 94.8 72.4 291.7 287.5 326.6
Adjusted earnings1 — discontinued operations 24.4 7.3 67.2 48.7 156.1
Adjusted EBITDA1 (all operations) 425.6 419.7 1,707.0 1,363.5 1,292.5
Adjusted EBITDA1 — continuing operations 368.2 367.6 1,461.8 1,145.6 953.6
Adjusted EBITDA1 — discontinued operations 57.4 52.1 245.2 217.9 338.9
Cash provided by operating activities (all
operations) 620.3 306.1 1,518.9 1,016.6 876.9
Cash provided by operating activities related to
continuing operations 547.3 249.9 1,300.8 827.2 616.0
Cash provided by operating activities related to
discontinued operations 73.0 56.2 218.0 189.4 260.9
Adjusted operating cash flow1 (all operations) 313.9 362.0 1,302.6 1,024.2 992.9
Adjusted operating cash flow1 — continuing
operations 251.8 305.4 1,080.0 847.3 740.1
Adjusted operating cash flow1 — discontinued
operations 62.1 56.7 222.6 176.9 252.9
Free cash flow from operations1 (all
operations) 466.0 116.8 873.0 345.1 381.4
Free cash flow from operations1 — continuing
operations 423.6 95.7 797.1 300.0 230.7
Free cash flow from operations1 —
discontinued operations 42.5 21.0 75.9 45.1 150.7
Free cash flow1 (all operations) 397.9 61.2 571.2 13.5 34.1
Free cash flow1 — continuing operations 360.0 43.6 508.2 (19.9) (75.6)
Free cash flow1 — discontinued operations 37.9 17.6 63.0 33.4 109.6
Capital expenditures2 — continuing operations 191.3 205.3 807.3 857.1 691.6
Capital expenditures2 — discontinued
operations 35.2 38.6 155.0 156.0 151.3
1 This is a non-GAAP measure - see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.
2 Capital expenditures are reported on a cash basis, as presented in the consolidated statement of cash flows.
7
===== SIDA 24 =====
Three months ended
December 31,
Year ended
December 31,
2024 2023 2024 2023 2022
Per share amounts:
Basic and diluted (loss) earnings from
continuing operations per share ("EPS")
attributable to shareholders (0.25) 0.02 0.01 0.26 0.36
Basic and diluted (loss) earnings from
discontinued operations per share ("EPS")
attributable to shareholders (0.32) 0.03 (0.27) 0.05 0.20
Basic and diluted (loss) total earnings per
share ("EPS") attributable to shareholders (0.57) 0.05 (0.26) 0.31 0.56
Adjusted EPS1 (all operations) 0.15 0.10 0.46 0.44 0.63
Adjusted EPS1 — continuing 0.12 0.09 0.38 0.37 0.43
Adjusted EPS1 — discontinued 0.03 0.01 0.09 0.06 0.20
Adjusted operating cash flow per share1 (all
operations) 0.40 0.47 1.68 1.33 1.30
Adjusted operating cash flow per share1 —
continuing 0.32 0.39 1.39 1.10 1.00
Adjusted operating cash flow per share1 —
discontinued 0.08 0.08 0.29 0.23 0.30
Dividends declared (C$/share) 0.09 0.09 0.36 0.36 0.47
($ millions)
December 31,
2024
December 31,
2023
December 31,
2022
Total assets 10,406.7 10,861.2 8,172.8
Total debt and lease liabilities 2,006.2 1,485.8 197.3
Net debt excluding lease liabilities1
(1,332.3) (946.2) 16.3
1 This is a non-GAAP measure - see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.
The Company's annual results have been impacted by the acquisition of the Josemaria Project in April 2022 and the
acquisition of the Caserones mine in July 2023. Project development costs for the Josemaria Project were initially included
in general exploration expenses but began to be capitalized from the fourth quarter of 2022, contributing to higher general
exploration expenses and lower capital expenditure in 2022 as compared to 2023. The acquisition of the Caserones mine in
July 2023 contributed to increases in total metal production, net earnings and capital expenditures in 2024 as compared to
2023 and 2022. Additionally, fair value adjustments of $39.9 million impacted production costs in 2023 to re-value the
concentrate and in-process inventory on hand at the acquisition of the Caserones mine.
Net earnings from continuing operations in 2024 were reduced by non-cash impairments including $104.9 million ($82.8
million net of tax) relating to the Eagle mine due to a decline in nickel prices and prolonged rehabilitation of the Eagle East
ramp, $93.4 million ($61.7 million net of tax) related to the Suruca gold deposit near Chapada following the removal of
reserves and $55.9 million ($41.6 million net of tax) due to the continued closure of the Alcaparrosa mine within the
Candelaria mining complex. In 2022, net earnings from continuing operations were also reduced by a $66.8 million non-cash
write-down of long-term ore stockpile inventory at Chapada. In 2024, $28.3 million of this write-down was reversed as a
result of higher market expectations for long-term copper and gold prices.
The $800 million Term Loan entered into in conjunction with the Caserones acquisition increased the Company's total debt
in mid-2023 and then was increased by $350 million to fund the acquisition of the additional 19% interest in 2024, and has
increased interest expense, reducing net earnings. From 2022, the Company has entered into derivative contracts for
foreign currency, diesel, and opportunistic copper and gold derivatives, as part of its risk management strategy, with
realized and unrealized gains and losses impacting net earnings. The Company has also realized foreign exchange and
trading gains on debt and equity investments from mid-2022 to support capital funding for the Josemaria Project.
Following the Company's announcement of a definitive agreement to sell its interest in the Neves-Corvo and Zinkgruvan
mines, results from these operations are reported as discontinued operations. Net loss from discontinued operations in
2024 was impacted by $291.2 million non-cash impairment to align the carrying value of Neves-Corvo with expected cash
consideration.
8
===== SIDA 25 =====
Summary of Quarterly Results1
($ millions, except per share data) Q4-24 Q3-24 Q2-24 Q1-24 Q4-23 Q3-23 Q2-23 Q1-23
Revenue from continuing operations 858.9 873.1 878.3 812.3 893.4 798.7 490.4 560.9
Gross profit from continuing operations 250.6 266.2 228.6 197.5 177.8 166.9 81.2 175.7
Net (loss) earnings from continuing operations (159.6) 110.6 119.4 83.0 40.4 10.4 90.9 135.1
- attributable to shareholders (195.3) 84.0 84.3 38.3 12.5 (14.4) 88.7 116.4
Net (loss) earnings from discontinued
operations
(244.8) 17.2 37.3 (24.4) 26.3 11.5 (29.6) 30.2
Adjusted (loss) earnings2 (all operations) 119.2 72.5 122.1 45.2 79.7 85.3 45.6 125.7
Adjusted (loss) earnings2 from continuing
operations
94.8 57.2 83.4 56.4 72.4 57.8 64.9 92.4
Adjusted (loss) earnings2 from discontinued
operations
24.4 15.3 38.7 (11.1) 7.3 27.5 (19.3) 33.3
Adjusted EBITDA2 (all operations) 425.6 457.7 460.9 362.9 419.7 415.1 191.8 336.9
Adjusted EBITDA2 - continuing operations 368.2 385.2 369.9 338.5 367.6 334.9 184.5 258.6
Adjusted EBITDA2 - discontinued operations 57.4 72.5 91.0 24.4 52.1 80.2 7.3 78.3
EPS - Basic and Diluted (all operations) (0.57) 0.13 0.16 0.02 0.05 — 0.08 0.19
EPS - Basic and Diluted from continuing
operations
(0.25) 0.11 0.11 0.05 0.02 (0.02) 0.12 0.15
EPS - Basic and Diluted from discontinued
operations
(0.32) 0.02 0.05 (0.03) 0.03 0.02 (0.04) 0.04
Adjusted EPS2 (all operations) 0.15 0.09 0.16 0.06 0.10 0.11 0.06 0.16
Adjusted EPS2 - continuing operations 0.12 0.07 0.11 0.07 0.09 0.07 0.08 0.12
Adjusted EPS2 - discontinued operations 0.03 0.02 0.05 (0.01) 0.01 0.04 (0.02) 0.04
Cash provided by operating activities (all
operations)
620.3 139.3 491.8 267.5 306.1 303.8 194.8 211.9
Cash provided by operating activities related to
continuing operations
547.3 81.4 440.1 232.2 249.9 260.4 170.0 146.9
Cash provided by operating activities related to
discontinued operations
73.0 57.9 51.7 35.4 56.2 43.4 24.8 65.0
Adjusted operating cash flow per share2 (all
operations)
0.40 0.39 0.48 0.41 0.47 0.41 0.14 0.30
Adjusted operating cash flow per share2 —
continuing operations
0.32 0.31 0.38 0.38 0.39 0.25 0.07 0.26
Adjusted operating cash flow per share2 —
discontinued operations
0.08 0.08 0.10 0.03 0.08 0.16 0.07 0.04
Capital expenditure3 from continuing
operations
191.3 163.6 217.2 235.2 205.3 203.5 241.8 206.6
Capital expenditure3 from discontinued
operations
35.2 41.8 41.2 36.8 38.6 39.7 38.1 39.5
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.
9
===== SIDA 26 =====
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 impacted
production costs in Q3 2023 and Q4 2023, respectively, as in-process and concentrate inventory measured at fair value at
the acquisition date was sold. An $800.0 million Term Loan was entered into in conjunction with the acquisition and was
subsequently increased by $350.0 million with funds used to acquire an additional 19% of Caserones in 2024. Increased
debt has increased the Company's interest expense from Q3 2023 through Q4 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, $14.8 million, and $11.4 million of overhead costs
incurred in Q2 2024, Q3 2024 and Q4 2024, respectively, reducing net earnings.
As reported above, net earnings from continuing operations in Q4 2024 were reduced by non-cash impairments including
$104.9 million ($82.8 million net of tax) relating to the Eagle mine due to a decline in nickel prices and prolonged
rehabilitation of the Eagle East ramp, $93.4 million ($61.7 million net of tax) related to the Suruca gold deposit near
Chapada following the removal of reserves and $55.9 million ($41.6 million net of tax) due to the continued closure of the
Alcaparrosa mine within the Candelaria mining complex.
In Q4 2024, net earnings and gross profit from continuing operations benefited from a $28.3 million non-cash partial
reversal of a previous long-term ore stockpile inventory write-down at Chapada, as a result of higher market expectations
for long-term copper and gold prices.
In the quarters presented, the Company has entered into derivative contracts for foreign currency, diesel, copper prices and
gold prices as part of its risk management strategy. Realized and unrealized gains and losses on derivative contracts and
foreign exchange and trading gains on debt and equity investments are recorded in other income and expense and impact
the Company's net earnings.
As reported above, following the Company's announcement of a definitive agreement to sell its interest in the Neves-Corvo
and Zinkgruvan mines, results from these operations are reported as discontinued operations. Net loss from discontinued
operations in Q4 2024 was impacted by a $291.2 million non-cash impairment to align the carrying value of Neves-Corvo
with expected cash consideration.
In Q4 2024, a deferred tax recovery of $41.5 million was recorded at Caserones following a re-assessment of the estimated
future utilization of accumulated tax losses.
10
===== SIDA 27 =====
Revenue Overview
Sales Volumes by Payable Metal - Continuing Operations
2024 2023
Total Q4 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1
Copper (t)
Candelaria (100%) 158,017 49,052 45,430 29,999 33,536 144,473 38,888 33,668 36,347 35,570
Caserones (100%)1 113,867 26,750 22,044 29,862 35,211 66,075 35,690 30,385 — —
Chapada 39,615 10,200 12,380 8,293 8,742 43,761 13,080 11,445 10,164 9,072
Eagle 5,457 877 733 1,789 2,058 11,968 3,055 3,177 2,951 2,785
316,956 86,879 80,587 69,943 79,547 266,277 90,713 78,675 49,462 47,427
Gold (koz)
Candelaria (100%) 89 27 26 17 19 87 23 19 23 22
Chapada 58 15 19 12 12 53 18 13 11 11
147 42 45 29 31 140 41 32 34 33
Nickel (t)
Eagle 5,662 1,088 393 2,018 2,163 13,339 3,105 3,640 3,859 2,735
Molybdenum (t)
Caserones (100%)1 3,056 944 581 695 836 2,019 978 1,041 — —
Silver (koz)
Candelaria (100%) 1,799 557 511 331 400 1,322 415 279 333 295
Chapada 96 21 24 30 21 129 37 32 29 31
Eagle 8 1 (1) 7 1 24 8 6 4 6
1,903 579 534 368 422 1,475 460 317 366 332
1 Caserones 2023 results are from July 13, 2023.
Revenue Analysis
Three months ended December 31, Year ended December 31,
by Mine 2024 2023 Change 2024 2023 Change
($ thousands) $ % $ % $ $ % $ % $
Candelaria (100%) 449,115 52 359,023 40 90,092 1,618,936 47 1,329,599 48 289,337
Caserones (100%)1 262,971 31 317,219 36 (54,248) 1,153,625 34 601,775 22 551,850
Chapada 121,206 14 143,439 16 (22,233) 497,576 15 461,175 17 36,401
Eagle 25,583 3 73,720 8 (48,137) 152,467 4 350,895 13 (198,428)
Continuing
Operations
858,875 893,401 (34,526) 3,422,604 2,743,444 679,160
Neves-Corvo 97,511 59 115,823 — (18,312) 438,053 — 425,042 — 13,011
Zinkgruvan 67,455 41 50,783 — 16,672 256,748 — 223,591 — 33,157
1 Caserones 2023 results are from July 13, 2023.
11
===== SIDA 28 =====
Three months ended December 31, Year ended December 31,
by Metal 2024 2023 Change 2024 2023 Change
($ thousands,
continuing
operations) $ % $ % $ $ % $ % $
Copper1 688,745 80 721,998 81 (33,253) 2,807,053 82 2,121,295 77 685,758
Gold 93,582 11 74,098 8 19,484 304,538 9 235,857 9 68,681
Molybdenum1 39,579 5 28,825 3 10,754 131,021 4 77,523 3 53,498
Nickel 17,805 2 47,601 5 (29,796) 100,387 3 243,050 9 (142,663)
Silver 14,122 2 10,150 1 3,972 48,839 1 30,625 1 18,214
Other 5,042 — 10,729 2 (5,687) 30,766 1 35,094 1 (4,328)
858,875 893,401 (34,526) 3,422,604 2,743,444 679,160
1 Caserones 2023 results are from July 13, 2023.
Revenue from continuing operations for the year of $3,422.6 million was an increase of $679.2 million over the prior year
comparable period. Revenue increases were primarily due to the inclusion of full year of Caserones copper and
molybdenum revenues, as the prior year period had contribution only from July 2023, and increases in realized copper and
gold prices partially offset by lower nickel sales volumes.
Revenue from gold and silver for the quarter and year 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 at Candelaria and $4.28/oz for silver at Candelaria and between $4.50/oz and 4.68/oz for
silver at Neves-Corvo and Zinkgruvan, respectively. Chapada’s copper revenue includes the recognition of deferred revenue
from copper streams acquired with the Chapada mine, as well as the cash proceeds of 30% of the market price of the
copper sold under the streams, which is limited to 7.9% of Chapada's total copper production.
Revenue is recorded using the metal price received for sales that settle during the reporting period. For sales that have not
been settled, an estimate is used based on the expected month of settlement and the forward price of the metal at the end
of the reporting period. The difference between the estimate and the final price received is recognized by adjusting revenue
in the period in which the sale is settled. Settlement dates can range from one to six months after shipment.
Provisionally Valued Revenue from Continuing Operations as of December 31, 2024
Metal Payable metal Valued at
Copper 78,322 t $3.96 /lb
Gold 35 koz $2,638 /oz
Nickel 709 t $6.87 /lb
Molybdenum 1,089 t $21.07 /lb
12
===== SIDA 29 =====
Full-Year Reconciliation of Realized Prices - Continuing Operations
Year ended December 31, 2024
($ thousands) Copper Gold Nickel Molybdenum Other Total
Revenue from contracts with customers1 2,922,616 361,086 97,320 136,820 82,860 3,600,702
Provisional pricing adjustments on current year
concentrate sales (21,053) 10,602 (2,410) 4,121 (590) (9,330)
Provisional pricing adjustments on prior year
concentrate sales 22,259 1,092 6,111 (9,919) 5,245 24,788
2,923,822 372,780 101,021 131,022 87,515 3,616,160
Recognition of deferred revenue 60,599
Copper stream cash effect (18,113)
Gold stream cash effect (118,697)
Less: Treatment and refining charges (117,345)
Total Net Sales 3,422,604
Payable Metal 316,956 t 147 koz 5,662 t 3,056 t
Current period sales 2 $4.15 $2,525 $7.60 $20.92
Provisional pricing adjustments on prior year
concentrate sales 0.03 7 0.49 (1.47)
Realized prices 3,4 $4.18 /lb $2,532 /oz $8.09 /lb $19.45 /lb
Year ended December 31, 2023
Copper Gold Nickel Molybdenum Other Total
Revenue from contracts with customers1 2,266,693 277,682 296,900 82,069 75,465 2,998,807
Provisional pricing adjustments on current year
concentrate sales (40,309) (560) (13,031) (4,593) (1,397) (59,889)
Provisional pricing adjustments on prior year
concentrate sales 17,511 1,087 (37,636) 47 (1,212) (20,203)
2,243,895 278,208 246,233 77,523 72,856 2,918,715
Recognition of deferred revenue 53,823
Copper stream cash effect (19,639)
Gold stream cash effect (84,319)
Less: Treatment & refining charges (125,136)
Total Revenue 2,743,444
Payable Metal 266,277 t 140 koz 13,339 t 2,019 t
Current period sales2 $3.79 $1,983 $9.65 $17.41
Provisional pricing adjustments on prior year
concentrate sales 0.03 8 (1.28) 0.01
Realized prices3,4 $3.82 /lb $1,991 /oz $8.37 /lb $17.42 /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 $4.15/lb (2023: $3.79/lb). The realized price for gold
inclusive of the impact of streaming agreements for 2024 is $1,726/oz (2023: $1,387/oz).
13
===== SIDA 30 =====
Annual Financial Results
Production Costs
Production costs from continuing operations for the year were $1,898.6 million, an increase from $1,644.0 million in the
prior year comparable period. The increase in production costs was primarily as a result of the inclusion of Caserones
results for a full year, as the prior year comparable period included production costs from the acquisition date, July 13,
2023. This was partially offset by lower sales volume at Eagle and Chapada and favourable foreign exchange, which reduced
the production costs at Candelaria, Caserones and Chapada. Production costs from discontinued operations were $445.2
million (2023 - $442.1 million).
Reversal of inventory write-down
At December 31, 2024, as a result of higher market expectations for long-term copper and gold prices, the Company
recognized a $28.3 million non-cash partial reversal of a previous long-term ore stockpile inventory net realizable value
write-down at Chapada (December 31, 2023 - $nil). $1.7 million of the partial reversal is included in depreciation, depletion
and amortization (December 31, 2023 - $nil).
Depreciation, Depletion and Amortization
Depreciation, depletion and amortization expense for continuing operations for the year increased compared to the prior
year comparative period. The increase is primarily attributable to a full year of Caserones results compared to the prior year
comparable period which had the results from acquisition in July 2023. In addition, increased deferred stripping
amortization at Candelaria and Chapada contributed to higher amortization expense in the year when compared to the
prior year comparative period, partially offset by lower amortization rates at Eagle due to fewer units of production.
Depreciation, depletion & amortization Twelve months ended December 31,
($ thousands, continuing operations) 2024 2023 Change
Candelaria 313,058 272,377 40,681
Caserones 184,054 108,489 75,565
Chapada 76,524 63,480 13,044
Eagle 33,569 52,050 (18,481)
Josemaria — 38 (38)
Other 539 1,439 (900)
607,744 497,873 109,871
Finance Costs
Total finance costs, net, from continuing operations amounted to $141.5 million for the year and increased from $91.4
million in the prior year primarily due to higher interest expense in line with increased debt and lease liabilities.
Other Income and Expense
Net other expense from continuing operations for the year amounted to $24.1 million, compared to net other income of
$91.8 million in the prior year. The difference is primarily related to higher unrealized losses on foreign exchange and
commodity derivative contracts and reduced foreign exchange and trading gains on debt and equity investments to support
capital funding for the Josemaria Project, and non-cash write-downs of capital works in progress at the Josemaria project
that are no longer expected to be required. These decreases were partially offset by increased foreign exchange gains as a
result of weakening of the CLP and BRL against the USD and a $11.7 million gain on the revaluation of the Caserones
purchase option, prior to it being exercised during the year.
Period end exchange rates having a meaningful impact on foreign exchange recorded as at December 31, 2024 were:
14
===== SIDA 31 =====
Year ended December 31,
2024 2023 Change
Brazilian Real (USD:BRL) 6.19 4.84 1.35
Chilean Peso (USD:CLP) 992 877 115
Euro (USD:€) 0.96 0.91 0.05
Swedish Kronor (USD:SEK) 11.00 9.98 1.02
Argentine Peso (USD:ARS) 1,033 808 225
Three months ended
December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024
Brazilian Real (USD:BRL) 6.19 5.45 5.56 5.00
Chilean Peso (USD:CLP) 992 896 951 982
Euro (USD:€) 0.96 0.89 0.93 0.93
Swedish Kronor (USD:SEK) 11.00 10.10 10.65 10.69
Argentine Peso (USD:ARS) 1,033 971 912 857
The average exchange rates for each year and quarter were:
Year ended December 31,
2024 2023 Change
Brazilian Real (USD:BRL) 5.39 5.00 0.39
Chilean Peso (USD:CLP) 944 840 104
Euro (USD:€) 0.92 0.92 —
Swedish Kronor (USD:SEK) 10.57 10.60 (0.04)
Argentine Peso (USD:ARS) 916 296 620
Three months ended
December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024
Brazilian Real (USD:BRL) 5.84 5.55 5.22 4.95
Chilean Peso (USD:CLP) 963 931 935 946
Euro (USD:€) 0.94 0.91 0.93 0.92
Swedish Kronor (USD:SEK) 10.78 10.42 10.68 10.39
Argentine Peso (USD:ARS) 1,002 943 887 835
Impairment
Impairment of $254.2 million was recognized in earnings from continuing operations in the fourth quarter of 2024. This
included $104.9 million ($82.8 million net of tax) relating to the Eagle mine due to a decline in nickel prices and prolonged
rehabilitation of the Eagle East ramp, $93.4 million ($61.7 million net of tax) related to the Suruca gold deposit near
Chapada following the removal of reserves and $55.9 million ($41.6 million net of tax) due to the continued closure of the
Alcaparrosa mine within the Candelaria mining complex.
Mine Suspension Costs
Mine suspension costs of $36.1 million in 2024 represent overhead costs incurred at the Eagle mine due to a partial
suspension of underground mining operations since May 2024.
15
===== SIDA 32 =====
Discontinued Operations
Following the Company's announcement of a definitive agreement to sell its interest in the Neves-Corvo and Zinkgruvan
mines, results from these operations are reported as discontinued operations. Net loss from discontinued operations was
$214.7 million in 2024 and include a non-cash impairment of $291.2 million ($270.3 million net of tax) to align the carrying
value of Neves-Corvo with expected cash consideration for this asset. The reduction in carrying value for Neves-Corvo is
expected to result in a gain on sale for the disposal group as a whole, upon closing of the transaction.
Income Taxes
Income tax (expense)/ recovery Year ended December 31,
($ thousands, continuing operations) 2024 2023 Change
Candelaria (237,879) (135,078) (102,801)
Caserones1 4,314 (19,265) 23,579
Chapada (59,059) 1,888 (60,947)
Eagle 28,839 (2,899) 31,738
Josemaria 50,086 (51,266) 101,352
Other (16,274) (7,746) (8,528)
(229,973) (214,366) (15,607)
1 Caserones 2023 results are from July 13, 2023.
Income taxes by classification Year ended December 31,
($ thousands, continuing operations) 2024 2023 Change
Current income tax (expense)/recovery (294,938) (141,432) (153,506)
Deferred income tax (expense)/ recovery 64,965 (72,934) 137,899
(229,973) (214,366) (15,607)
Current income tax expense in the year was higher than in the prior year comparable period primarily due to higher taxable
earnings and the introduction of the mining royalty tax for Candelaria effective January 1, 2024.
Compared to the prior year, the deferred income tax expense has reversed to a deferred income tax recovery due to the
reversal of deferred tax liability in Josemaria as a result of tax inflation adjustments in Argentina and the decrease in
deferred tax liability at Eagle due to asset impairment. This reduction in net deferred tax liability was partially offset by 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.
16
===== SIDA 33 =====
Fourth Quarter Financial Results
Gross Profit
Gross profit from continuing operations for the quarter was $250.6 million, an increase from $177.8 million in the prior year
comparable quarter. The increase was primarily attributable to higher realized gold, nickel and molybdenum prices,
favorable foreign exchange due to the weakening of the CLP and BRL against the USD, lower depreciation, and lower
treatment and refining charges. In addition, there was a reversal of a previous non-cash inventory write-down at Chapada
on the long-term ore stockpile in the amount of $28.3 million.These increases were partially offset by negative provisional
pricing adjustments for the current and prior periods of $31.7 million and $46.1 million, respectively, and reduced revenue
from Caserones due to two shipments of copper concentrate scheduled for December 2024 that were delayed to early
January due to certain operational and weather related issues. Gross profit from discontinued operations for the quarter
was $29.8 million (2023 - $11.2 million).
Net Earnings
Net loss from continuing operations for the quarter was $159.6 million, compared to net earnings of $40.4 million in the
prior year comparable period, and was impacted by the impairments of Eagle, Suruca and Alcaparrosa, which were partially
offset by a deferred tax recovery of $41.5 million at Caserones following a re-assessment of the estimated future utilization
of accumulated tax losses, and $28.3 million of reversal of a non-cash inventory write-down at Chapada on the long-term
stockpile. Net loss from discontinued operations for the quarter was $244.8 million, compared to net earnings of $26.3
million in the prior year comparable period, and was impacted by the impairment of Neves-Corvo.
Cash Flow from Operations
Cash provided by operating activities for the quarter was $547.3 million, compared to the prior year comparable quarter of
$249.9 million. The increase was largely due to positive working capital inflows including collection of trade receivables at
Candelaria and $45.0 million in payments received for the delayed shipments from Caserones.
17
===== SIDA 34 =====
Fourth Quarter Reconciliation of Realized Prices - Continuing Operations
Three months ended December 31, 2024
($ thousands) Copper Gold Nickel Molybdenum Other Total
Revenue from contracts with customers1 800,179 114,791 16,577 41,018 16,666 989,231
Provisional pricing adjustments on current
period concentrate sales (32,830) (1,641) (270) — 3,061 (31,679)
Provisional pricing adjustments on prior period
concentrate sales (49,663) (1,050) 1,519 (1,439) 4,564 (46,069)
717,686 112,101 17,826 39,579 24,291 911,483
Recognition of deferred revenue 18,349
Copper stream cash effect (2,555)
Gold stream cash effect (40,113)
Less: Treatment and refining charges (28,289)
Total Net Sales 858,875
Payable Metal 86,879 t 42 koz 1,088 t 944 t
Current Period Sales2 $4.01 $2,668 $6.80 $19.71
Provisional pricing adjustments on prior period
concentrate sales (0.26) (25) 0.63 (0.69)
Realized prices 3,4 $3.75 /lb $2,643 /oz $7.43 /lb $19.02 /lb
Three months ended December 31, 2023
Copper Gold Nickel Molybdenum Other Total
Revenue from contracts with customers1 759,788 84,851 54,672 33,929 32,850 966,091
Provisional pricing adjustments on current
period concentrate sales 5,848 469 (622) 6,169 5,151 17,014
Provisional pricing adjustments on prior period
concentrate sales (3,088) 3,014 (6,964) (11,273) (15,760) (34,071)
762,548 88,334 47,086 28,825 22,241 949,034
Recognition of deferred revenue 13,771
Copper stream cash effect (4,987)
Gold stream cash effect (23,464)
Less: Treatment & refining charges (40,953)
Total Revenue 893,401
Payable Metal 90,713 t 41 koz 3,105 t 978 t
Current period sales2 $3.83 $2,074 $7.90 $18.60
Provisional pricing adjustments on prior period
concentrate sales (0.02) 74 (1.02) (5.23)
Realized prices3,4 $3.81 /lb $2,148 /oz $6.88 /lb $13.37 /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 Section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
4. The realized price for copper inclusive of the impact of streaming agreements for 2024 is $3.74/lb (2023: $3.79/lb). The realized price for gold
inclusive of the impact of streaming agreements for 2024 is $1,697/oz (2023: $1,577/oz).
18
===== SIDA 35 =====
Mining Operations
Production Overview
2024 2023
YTD Q4 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1
Copper (t)
Candelaria (100%) 162,487 48,772 50,018 31,170 32,527 152,012 41,618 34,275 36,952 39,167
Caserones (100%)1 124,761 31,737 29,033 29,775 34,216 65,210 35,389 29,821 — —
Chapada 43,261 12,323 11,694 9,106 10,138 45,719 12,872 12,286 10,697 9,864
Eagle 6,366 1,262 1,027 1,563 2,514 13,600 3,334 3,245 3,881 3,140
Continuing Operations 336,875 94,094 91,772 71,614 79,395 276,541 93,213 79,627 51,530 52,171
Neves-Corvo 28,228 7,139 6,698 7,347 7,044 33,823 9,623 9,016 7,610 7,574
Zinkgruvan 3,964 258 1,385 747 1,574 4,434 501 1,299 917 1,717
Total 369,067 101,491 99,855 79,708 88,013 314,798 103,337 89,942 60,057 61,462
Zinc (t)
Neves-Corvo 109,571 27,879 29,509 25,696 26,487 108,812 31,035 25,807 24,177 27,793
Zinkgruvan 82,133 24,067 17,101 21,764 19,201 76,349 19,684 23,967 11,938 20,760
Total 191,704 51,946 46,610 47,460 45,688 185,161 50,719 49,774 36,115 48,553
Gold (koz)
Candelaria (100%) 93 28 29 17 19 90 25 20 21 24
Chapada 65 18 18 15 14 59 19 15 13 12
Total 158 46 47 32 33 149 44 35 34 36
Nickel (t)
Eagle 7,486 1,617 893 1,721 3,255 16,429 3,729 4,290 4,686 3,724
Molybdenum (t)
Caserones (100%)1 3,183 912 693 714 864 2,024 928 1,096 — —
Lead (t)
Neves-Corvo 6,395 1,553 1,851 1,387 1,604 5,600 2,030 1,447 951 1,172
Zinkgruvan 30,888 9,481 5,693 8,966 6,748 26,284 6,418 8,643 3,816 7,407
Total 37,283 11,034 7,544 10,353 8,352 31,884 8,448 10,090 4,767 8,579
Silver (koz)
Candelaria (100%) 1,985 598 605 367 415 1,487 468 306 366 347
Chapada 245 69 63 55 58 258 73 67 62 56
Eagle 35 7 3 17 8 64 17 19 11 17
Continuing Operations 2,265 674 671 439 481 1,809 558 392 439 420
Neves-Corvo 1,876 494 425 433 524 1,902 573 486 407 436
Zinkgruvan 2,513 637 537 699 640 2,300 509 785 374 632
Total 6,654 1,805 1,633 1,571 1,645 6,011 1,640 1,663 1,220 1,488
19
1 Caserones 2023 results are from July 13, 2023.
===== SIDA 36 =====
Production Cost and Cash Cost Overview ($ thousand, $/lb)
Three months ended
December 31,
Year ended
December 31,
($ thousands) 2024 2023 2024 2023
Candelaria
Production costs $200,970 $178,088 $726,685 $726,493
Gross cost 1.93 2.24 2.19 2.46
By-product1 (0.40) (0.46) (0.46) (0.39)
Cash Cost (Cu, $/lb)2 1.53 1.78 1.73 2.07
AISC (Cu, $/lb)2 2.12 2.76 2.62 3.34
Caserones3
Production costs $200,229 $215,855 $776,192 $404,837
Gross cost 3.30 2.73 3.08 2.59
By-product1 (0.79) (0.40) (0.57) (0.60)
Cash Cost (Cu, $/lb)2 2.51 2.33 2.51 1.99
AISC (Cu, $/lb)2 3.58 3.48 3.48 3.03
Chapada
Production costs $64,352 $89,716 $282,633 $317,317
Gross cost 2.82 3.25 3.27 3.42
By-product1 (1.75) (1.37) (1.69) (1.15)
Cash Cost (Cu, $/lb)2 1.07 1.88 1.58 2.27
AISC (Cu, $/lb)2 2.81 2.75 3.07 3.24
Eagle
Production cost $21,131 $48,023 $111,919 $191,704
Gross cost 8.46 6.19 8.37 5.83
By-product1 (3.24) (3.82) (4.17) (3.67)
Cash Cost (Ni, $/lb)2 5.22 2.37 4.20 2.16
AISC (Ni, $/lb)2 9.53 4.60 7.60 4.22
Neves-Corvo
Production costs $73,154 $82,734 $323,163 $326,677
Gross cost 6.75 4.43 5.81 4.93
By-product1 (4.91) (2.47) (3.62) (2.56)
Cash Cost (Cu, $/lb)2 1.84 1.96 2.19 2.37
AISC (Cu, $/lb)2 3.37 3.50 3.92 3.96
Zinkgruvan
Production costs $29,146 $31,520 $122,064 $115,394
Gross cost 0.89 1.11 1.02 1.06
By-product1 (0.46) (0.48) (0.61) (0.63)
Cash Cost (Zn, $/lb)2 0.43 0.63 0.41 0.43
AISC (Zn, $/lb)2 0.99 0.93 0.87 0.83
1 By-product is after related treatment and refining charges.
2 Cash Cost per pound sold and All-in Sustaining Cost per pound sold ("AISC") are non-GAAP measures, see the "Non-GAAP and Other Performance
Measures" section of this MD&A for discussion.
3 Caserones 2023 results are from July 13, 2023.
20
===== SIDA 37 =====
Capital Expenditures1
Year ended December 31,
2024 2023
($ thousands) Sustaining Expansionary
Capitalized
Interest Total Sustaining Expansionary
Capitalized
Interest Total
Candelaria 275,720 — — 275,720 380,112 — — 380,112
Caserones2 143,965 — — 143,965 83,880 — — 83,880
Chapada 107,843 — — 107,843 72,291 — — 72,291
Eagle 21,222 — — 21,222 22,201 — — 22,201
Josemaria — 243,566 14,641 258,207 — 275,913 9,980 285,893
Other 350 — — 350 12,761 — — 12,761
Continuing
Operations
549,100 243,566 14,641 807,307 571,245 275,913 9,980 857,138
Neves-Corvo 89,302 — — 89,302 102,621 — — 102,621
Zinkgruvan 65,658 — — 65,658 53,358 — — 53,358
Total 704,060 243,566 14,641 962,267 727,224 275,913 9,980 1,013,117
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.
21
===== SIDA 38 =====
Candelaria (Chile)
The Candelaria operations consist of an open pit and underground mines providing copper ore to two on-site processing
plants located near Copiapó in the Atacama region of Chile, as well as a port facility and desalination plant located
approximately 100km from the mine facilities in the town of Caldera. The Company holds an indirect 80% ownership interest
in Candelaria with the remaining 20% interest indirectly held by Sumitomo Metal Mining Co., Ltd and Sumitomo
Corporation. The plants have a combined processing capacity of 28 million tonnes per annum (“mtpa”), producing copper in
concentrate. The primary metal is copper, with gold and silver as by-product metals.
Operating Statistics
2024 2023
(100% Basis) Total Q4 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1
Ore mined (kt) 36,728 12,673 10,784 8,155 5,116 25,939 7,793 5,350 6,194 6,602
Ore milled (kt) 29,186 7,600 7,183 7,094 7,309 28,903 7,609 7,168 6,924 7,202
Grade
Copper (%) 0.61 0.69 0.76 0.49 0.48 0.58 0.60 0.52 0.59 0.59
Gold (g/t) 0.15 0.17 0.18 0.12 0.11 0.14 0.15 0.12 0.14 0.15
Recovery
Copper (%) 91.8 93.1 92.1 89.5 91.9 91.3 90.3 91.0 91.1 92.6
Gold (%) 67.7 68.2 69.9 62.1 69.8 69.5 68.6 70.6 68.8 70.3
Production (contained metal)
Copper (t) 162,487 48,772 50,018 31,170 32,527 152,012 41,618 34,275 36,952 39,167
Gold (koz) 93 28 29 17 19 90 25 20 21 24
Silver (koz) 1,985 598 605 367 415 1,487 468 306 366 347
Sales volume (payable metal)
Copper (t) 158,017 49,052 45,430 29,999 33,536 144,473 38,888 33,668 36,347 35,570
Gold (koz) 89 27 26 17 19 87 23 19 23 22
Revenue ($000s) 1,618,936 449,115 473,049 366,363 330,409 1,329,599 359,023 299,745 290,426 380,405
Production costs ($000s) 726,685 200,970 189,106 175,359 161,250 726,493 178,088 175,468 184,958 187,979
Gross profit ($000s) 579,193 163,238 205,276 114,946 95,733 330,729 106,997 53,909 35,772 134,051
Cash cost ($ per pound copper)1 1.73 1.53 1.55 2.18 1.89 2.07 1.78 2.19 2.14 2.21
AISC ($ per pound copper)1 2.62 2.12 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
During the quarter, ore mined increased due to mine sequencing and opportunities to obtain ore from Phase 12, in addition
to higher grade ore from Phase 11. The increase in mine movement and throughput helped to offset a decline in grade from
Phase 11 toward the end of the quarter. In 2025, the majority of production will continue to be sourced from Phase 11 with
a planned reduction in average copper grades from those realized in 2024.
Copper and gold production in the year and quarter was higher than in the prior year comparable periods primarily due to
planned higher grade ore from Phase 11. Annual copper production in 2024 increased from 2023 but was slightly below the
most recently disclosed production guidance range as a result of Phase 11 ore grade declining sooner than anticipated at
the end of the quarter. During the year, Candelaria produced 98,970 tonnes of copper in the second-half of the year which
is one of its best performances over a six month period in the history of the mine. Annual gold production was within the
recently disclosed production guidance range.
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 $14
million. These increases were partially offset by favourable foreign exchange due to a weakening of the CLP against the
USD. Production costs in the year are consistent with the prior year comparable period.
Cash cost per pound in the quarter and year were lower than in the prior year comparable periods. This was due to higher
grades which resulted in higher sales volumes, combined with favourable foreign exchange due to a weakening of the CLP
against the USD, particularly in the fourth quarter . These movements were partially offset by the write- downs of inventory
22
===== SIDA 39 =====
items totalling $14 million and $25 million in the quarter and year, respectively. Cash cost per pound in the year also
benefitted from favourable by-product credits.
All-in sustaining cost per pound ("AISC") in the quarter and year were lower than in the prior year comparable periods
primarily due to lower cash cost per pound, combined with lower sustaining capital expenditure . Sustaining capital
expenditures were lower in the quarter and the year due to reduced deferred stripping and higher spending on the Los
Diques tailings storage facility in the prior year. Annual cash cost per pound for the year was within the most recently-
disclosed guidance range.
In the year, approximately 60,000 oz of gold and 1,225,000 oz of silver were subject to terms of a streaming agreement
from which approximately $429/oz of gold and $4.28/oz of silver were received. This represents approximately 68% of
Candelaria's total gold and silver production.
Gross Profit and Net Earnings
Gross profit in the year increased from the prior year comparable period primarily due to higher realized copper and gold
prices, higher sales volumes, and favourable foreign exchange. Gross profit in the quarter was higher than in the prior year
comparable period primarily due to higher sales volumes and favourable foreign exchange.
Net earnings in the quarter and year were impacted by a non-cash impairment of $55.9 million ($41.6 million net of tax)
due to the closure of the Alcaparrosa mine within the Candelaria complex. Mining operations at Alcaparrosa have been
suspended since the incident occurred in 2022 and Mineral Reserve estimates for the Alcaparrosa mine have been removed
from the Company's reserve statement and have not been included in any future production estimates.
23
===== SIDA 40 =====
Caserones (Chile)
Caserones is an open pit copper-molybdenum mine which produces high-quality copper concentrate, copper cathode and
molybdenum concentrate. Lundin Mining is the operator after acquiring a 51% interest in Minera Lumina Copper Chile on
July 13, 2023, with JX Metals Corporation holding the remaining 49% interest. In July 2024, Lundin Mining increased its
ownership to 70%, with JX Metals Corporation holding the remaining 30% interest. In 2024, the copper concentrator treated
on average 4,130 tonnes per hour.The solvent extraction-electrowinning plant has a nominal capacity of 34.5 kilotonnes per
annum ("ktpa").
Operating Statistics
2024 2023
(100% Basis) Total Q4 Q3 Q2 Q1 Total2 Q4 Q32
Ore mined (kt) 30,820 8,557 7,616 7,840 6,807 15,583 7,484 8,099
Ore milled (kt) 32,141 8,759 8,136 7,556 7,690 15,424 8,262 7,162
Ore placed on leach 10,230 3,563 1,885 2,868 1,914 5,541 3,234 2,307
Grade
Copper (%) 0.40 0.36 0.38 0.42 0.44 0.42 0.41 0.44
Molybdenum (%) 0.015 0.015 0.016 0.015 0.016 0.020 0.019 0.022
Recovery
Copper (%) 78.6 81.9 76.7 75.9 79.7 86.1 88.2 83.9
Molybdenum (%) 64.1 68.9 53.3 64.4 70.0 72.4 73.9 70.9
Production (contained metal)
Copper in concentrate (t) 100,837 25,717 23,708 24,246 27,166 55,191 29,496 25,695
Copper cathode (t) 23,924 6,020 5,325 5,529 7,050 10,019 5,893 4,126
Total copper (t) 124,761 31,737 29,033 29,775 34,216 65,210 35,389 29,821
Molybdenum (t) 3,183 912 693 714 864 2,024 928 1,096
Sales volume (payable metal)
Copper (t) 113,867 26,750 22,044 29,862 35,211 66,075 35,690 30,385
Molybdenum (t) 3,056 944 581 695 836 2,019 978 1,041
Revenue ($000s) 1,153,625 262,971 227,896 336,547 326,211 601,775 317,219 284,556
Production costs ($000s) 776,192 200,229 169,411 208,897 197,655 404,837 215,855 188,982
Gross profit ($000s) 193,379 24,234 19,169 73,149 76,827 88,449 31,182 57,267
Cash cost ($ per pound copper)1 2.51 2.51 2.96 2.60 2.14 1.99 2.33 1.60
AISC ($ per pound copper)1 3.48 3.58 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
In the quarter, Caserones delivered copper and molybdenum production in line with the preceding quarters, driven by
increased mine movement, mill throughput and improved recoveries, which helped offset lower ore grades. A shift in the
mine sequencing during the third quarter, prompted by hydrogeologic conditions in Phase 5, resulted in a greater ore
contribution from the lower-grade Phase 6 area in the fourth quarter. Meanwhile, copper cathode production benefited
from an improved irrigation pattern on the dump leach pad, enhancing leaching efficiency.
Copper grades are expected to increase in the second half of 2025 as ore from Phase 6 and 7 is delivered. Grades in 2025
are expected to be similar to 2024.
Annual copper and molybdenum production were at the top-end of the most recently disclosed production guidance
ranges. Copper and molybdenum production in the quarter was lower than in the prior year comparable period primarily
due to lower grades and recoveries, offset by higher throughput. Production was also negatively impacted by the labour
action in August which lasted 14 days and reduced throughput during this period to approximately 50% capacity.
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. Production costs in the quarter were also impacted by
24
===== SIDA 41 =====
higher maintenance, contractors, and labour . During the year, there had been a build-up of concentrate inventory,
approximately 20,000 tonnes of copper concentrate was held in inventory at December 31, 2024, which has been
subsequently sold in the first quarter of 2025. Cash cost per pound in the quarter was higher due to lower production and
sales volumes partially offset by higher by-product credits. Lower grades in the quarter impacted production resulting in
higher cash cost per pound. Cash cost per pound in the year was higher than in the prior year comparable period due to
higher mine and mill costs as a result of maintenance, contractors and labour. Annual cash cost per pound for the year was
within the most recently disclosed guidance range. AISC per pound in the quarter and year were higher than in prior periods
primarily due to higher cash costs.
Gross Profit and Net Earnings
Gross profit in the quarter was lower than in the prior year comparable period due to lower sales volumes combined with
higher maintenance, contractor and salaries costs, which was partially offset primarily by lower depreciation and favourable
foreign exchange. Gross profit was impacted by a timing difference between the production and shipment date of
approximately 20,000 tonnes of copper concentrate. Two shipments of copper concentrate from Caserones scheduled for
December 2024 were delayed to early January due to certain operational and weather related issues. The related revenue is
expected to be recorded in the first quarter of 2025.
Net earnings during the quarter were impacted by a deferred tax recovery of $41.5 million (Q4 2023 - $4.1 million) and
associated with the recognition of deferred tax assets to utilize accumulated tax losses.
25
===== SIDA 42 =====
Chapada (Brazil)
The Chapada mine consists of four open pit mines and on-site processing facilities located in the northern Goiás State of
Brazil, approximately 270 km northwest of the national capital of Brasilia. The processing plant has a capacity of 24.0 mtpa,
producing high-quality gold-rich copper concentrate. The primary metal is copper, with gold and silver as by-product metals.
Operating Statistics
2024 2023
(100% Basis) Total Q4 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1
Ore mined (kt) 21,949 5,084 5,889 5,851 5,125 29,508 7,803 8,062 7,522 6,121
Ore milled (kt) 22,883 5,945 6,035 5,407 5,496 22,233 5,218 5,832 5,207 5,976
Grade
Copper (%) 0.25 0.28 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 0.18 0.14 0.15 0.18 0.15 0.14 0.13
Recovery
Copper (%) 77.3 76.2 78.1 74.2 81.1 80.2 85.9 80.8 80.3 73.3
Gold (%) 52.2 53.4 51.5 49.3 55.3 55.0 61.1 55.3 54.1 48.0
Production (contained metal)
Copper (t) 43,261 12,323 11,694 9,106 10,138 45,719 12,872 12,286 10,697 9,864
Gold (koz) 65 18 18 15 14 59 19 15 13 12
Silver (koz) 245 69 63 55 58 258 73 67 62 56
Sales volume (payable metal)
Copper (t) 39,615 10,200 12,380 8,293 8,742 43,761 13,080 11,445 10,164 9,072
Gold (koz) 58 15 19 12 12 53 18 13 11 11
Revenue ($000s) 497,576 121,206 159,966 117,969 98,435 461,175 143,439 111,897 94,721 111,118
Production costs ($000s) 282,633 64,352 84,450 69,246 64,585 317,317 89,716 78,854 80,113 68,634
Gross profit (loss) ($000s) 165,045 67,262 48,658 30,355 18,770 80,378 30,126 20,230 (381) 30,403
Cash cost ($ per pound copper)1 1.58 1.07 1.37 2.05 2.01 2.27 1.88 2.28 2.69 2.37
AISC ($ per pound copper)1 3.07 2.81 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
Chapada's operations performed well during the quarter with higher grade material from fresh ore from the South, North,
and Central pits. This led to a reduced volume of older low-grade stockpile material being processed during the quarter
compared to other quarters this year.
Annual copper and gold production was within the most recently disclosed production guidance ranges. Copper production
in the quarter and year was slightly lower than in the prior year comparable periods primarily due to lower grades and
recoveries, partially offset by higher throughput. Reduced grades and recoveries are a result of processing ore from the
older low-grade stockpile and North pit as part of an optimized mine plan that significantly reduces waste movement, and
emphasizes higher throughput. Gold production in the quarter was slightly lower than in the prior year comparable period
due to lower recoveries, partially offset by higher throughput. Gold production for the year was higher than in the prior
year comparable period due to higher grades and throughput, partially offset by lower recoveries. Higher gold 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 the recent elevated gold price environment.
Production Costs and Cash Cost
Production costs in the quarter and year were lower than in the prior year comparable periods primarily as a result of lower
sales volumes and favourable foreign exchange, combined with lower mining costs.
Cash cost per pound in the quarter and year improved significantly from the prior year comparable periods primarily due to
higher by-product credits as a result of increased realized prices for gold 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 Chapada Full Potential program, which started in 2022 and focuses on various site
26
===== SIDA 43 =====
optimization activities. Annual copper cash cost was within the most recently disclosed guidance ranges. AISC per pound in
the quarter was higher than in the prior year comparable period primarily due to higher sustaining capital expenditure
driven by higher deferred stripping and water management expenditures. AISC per pound in the year was lower than in the
prior year comparable period due to lower cash cost per pound, partially offset by higher sustaining capital expenditure.
Gross Profit and Net Earnings
Gross profit in the quarter and year was higher than in the prior year comparable periods primarily due to higher realized
gold prices and favourable foreign exchange. Additionally, gross profit in the quarter and year benefited from a $28.3
million non-cash partial reversal of a previous long-term ore stockpile inventory write-down, as a result of higher market
expectations for long-term copper and gold prices. Gross profit in the year was also positively impacted by higher realized
copper prices.
Net earnings in the quarter and year were impacted by a non-cash impairment of mineral properties relating to the Suruca
gold deposit in the amount of $93.4 million ($61.7 million, net of tax).
27
===== SIDA 44 =====
Eagle (USA)
The Eagle mine consists of the Eagle underground mine, located approximately 53 km northwest of Marquette, Michigan,
U.S.A. and the Humboldt mill, located 61 km west of Marquette. The plant has a processing capacity of 0.7 mtpa, producing
nickel and copper in concentrates. The primary metal is nickel with copper, and minor amounts of cobalt, gold, and
platinum-group metals as by-product metals.
Operating Statistics
2024 2023
(100% Basis) Total Q4 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1
Ore mined (kt) 480 117 91 107 165 725 188 192 189 156
Ore milled (kt) 487 121 90 97 179 718 186 190 181 161
Grade
Nickel (%) 1.9 1.7 1.4 2.1 2.1 2.6 2.3 2.6 2.9 2.6
Copper (%) 1.4 1.1 1.2 1.7 1.5 2.0 1.9 1.8 2.2 2.0
Recovery
Nickel (%) 82.0 78.7 72.3 85.0 85.2 87.4 86.1 86.2 88.8 88.5
Copper (%) 95.1 94.1 94.3 95.9 95.3 96.8 96.5 96.4 97.0 97.2
Production (contained metal)
Nickel (t) 7,486 1,617 893 1,721 3,255 16,429 3,729 4,290 4,686 3,724
Copper (t) 6,366 1,262 1,027 1,563 2,514 13,600 3,334 3,245 3,881 3,140
Sales volume (payable metal)
Nickel (t) 5,662 1,088 393 2,018 2,163 13,339 3,105 3,640 3,859 2,735
Copper (t) 5,457 877 733 1,789 2,058 11,968 3,055 3,177 2,951 2,785
Revenue ($000s) 152,467 25,583 12,217 57,444 57,223 350,895 73,720 102,505 105,250 69,420
Production costs ($000s) 111,919 21,131 12,595 37,657 40,536 191,704 48,023 52,497 45,735 45,449
Gross profit (loss) ($000s) 6,979 (3,804) (6,547) 9,794 7,536 107,141 11,794 35,682 46,845 12,820
Cash cost ($ per pound nickel)1 4.20 5.22 7.24 3.23 4.04 2.16 2.37 2.07 1.88 2.43
AISC ($ per pound nickel)1 7.60 9.53 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
In May 2024, a fall of ground in the lower ramp limited access to Eagle East and subsequently reduced mining rates while
ramp rehabilitation was completed. During the quarter, higher throughput began and normal throughput rates are
expected to resume in Q1 2025. Delivery of ore from Eagle East commenced during the quarter which led to improved
grades and recoveries. Due to the rehabilitation of the lower ramp, the extraction of the majority of ore from Eagle East was
deferred into 2025 and future years.
Nickel and copper production in the quarter and year was lower than in the prior year comparable periods due to lower
throughput and grades. Monitoring of the crown pillar continues at Eagle. Early indications of localized minor movement
were 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. Annual nickel and copper production were within the most
recently disclosed production guidance ranges.
Production Costs and Cash Cost
Production costs in the quarter and year were lower than in the prior year comparable periods primarily due to lower
production and sales volumes leading to reduced spend in milling, transportation and lower royalty expense. Production
costs in the quarter and year excluded approximately $11.4 million and $36.1 million, respectively, of overhead costs that
have been recorded as Other Income and Expense as a result of the partial suspension of underground mining operations.
Cash cost per pound in the quarter and the year was higher than in the prior year comparable periods due to the
prioritization of ramp rehabilitation which resulted in lower sales volumes. Cash cost per pound in the year was also
partially offset by higher by-product credits as a result of higher realized copper prices. AISC per pound in the quarter and
year was higher than in the prior year comparable periods primarily due to higher cash cost per pound. Cash cost per pound
28
===== SIDA 45 =====
for the year exceeded the high end of the most recently disclosed guidance range as mining rates did not recover as quickly
as expected during the quarter for all metals including by-products.
Gross Profit and Net Earnings
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.
Net earnings were impacted in the quarter and the year as a result of a non-cash impairment loss recorded in December
2024. Impairment indicators including a decline in nickel prices and prolonged rehabilitation of the Eagle East ramp were
identified for the Eagle mine. As the recoverable amount determined for the cash generating unit ("CGU") was lower than
the carrying value, a non-cash impairment loss of $104.9 million ($82.8 million net of tax) was recognized.
29
===== SIDA 46 =====
Neves-Corvo (Portugal)
Neves-Corvo is located 200 km southeast of Lisbon, Portugal, in the western part of the Iberian Pyrite Belt and consists of an
underground mine and on-site processing facilities. The copper plant has a processing capacity of up to 2.8 mtpa, producing
copper in concentrate, and the zinc plant has an expanded capacity of 2.5 mtpa producing zinc and lead concentrates. The
primary metal is copper, with zinc, lead and silver as by-product metals. In December 2024, the Company announced the
sale of Neves-Corvo with the transaction expected to close in mid-2025.
Operating Statistics (Discontinued Operation)
2024 2023
(100% Basis) D Total Q4 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1
Ore mined, copper (kt) 2,412 643 579 602 588 2,591 677 689 622 603
Ore mined, zinc (kt) 2,127 539 571 499 518 1,989 549 459 470 511
Ore milled, copper (kt) 2,426 643 583 601 599 2,588 682 674 628 604
Ore milled, zinc (kt) 2,127 568 540 507 512 1,989 573 441 465 510
Grade
Copper (%) 1.5 1.4 1.5 1.6 1.5 1.7 1.9 1.8 1.6 1.6
Zinc (%) 6.5 6.3 7.0 6.3 6.5 6.8 6.6 7.4 6.6 6.7
Lead (%) 1.2 1.1 1.4 1.3 1.2 1.5 1.4 1.5 1.5 1.5
Recovery
Copper (%) 76.9 78.3 74.9 77.2 77.3 76.5 75.6 76.1 77.0 77.7
Zinc (%) 77.3 76.0 76.9 78.2 78.4 78.0 79.9 76.1 76.8 78.7
Lead (%) 24.6 25.4 24.8 21.7 26.5 19.2 25.2 21.3 14.0 15.7
Production (contained metal)
Copper (t) 28,228 7,139 6,698 7,347 7,044 33,823 9,623 9,016 7,610 7,574
Zinc (t) 109,571 27,879 29,509 25,696 26,487 108,812 31,035 25,807 24,177 27,793
Lead (t) 6,395 1,553 1,851 1,387 1,604 5,600 2,030 1,447 951 1,172
Silver (koz) 1,876 494 425 433 524 1,902 573 486 407 436
Sales volume (payable metal)
Copper (t) 26,721 5,230 7,707 7,898 5,886 32,054 9,054 8,799 6,170 8,031
Zinc (t) 88,731 21,357 25,730 20,440 21,204 91,115 25,491 21,957 20,125 23,542
Lead (t) 5,700 1,323 1,811 1,242 1,324 4,970 1,830 1,220 881 1,039
Revenue ($000s) 438,053 97,511 131,237 128,675 80,630 425,042 115,823 111,202 68,614 129,403
Production costs ($000s) 323,163 73,154 95,168 83,129 71,712 326,677 82,734 82,137 76,080 85,726
Gross (loss) profit ($000s) (3,434) (2,524) 1,344 15,874 (18,128) (23,234) 642 (2,288) (35,185) 13,597
Cash cost ($ per pound copper)1 2.19 1.84 2.13 1.70 3.24 2.37 1.96 2.27 3.99 1.69
AISC ($ per pound copper)1 3.92 3.37 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 was lower than in the prior year comparable periods primarily due to lower
grades and throughput. Annual copper production was within the most recently disclosed production guidance range. Zinc
production in the quarter was lower than in the prior year comparable period mainly due to lower grades and recoveries.
Zinc production for the year was an annual record for the operation primarily due to record throughput as a result of the
zinc expansion project, although slightly below the most recently disclosed annual production guidance range.
Production Costs and Cash Cost
Production costs in the quarter and year were lower than in the prior year comparable periods primarily due to decreases in
zinc and copper sales volumes partially offset by higher electricity and labour costs.
Cash cost per pound in the quarter was higher than in the prior year comparable period primarily due to lower sales
volume. Cash cost per pound in the year improved from the prior year comparable period primarily due to higher by-
product credits driven mainly by higher realized zinc prices. Annual copper cash cost per pound slightly exceeded the most
recently disclosed 2024 cash cost guidance range, primarily driven by lower sales volume. AISC per pound in the quarter and
year was in line with AISC from the prior year comparable periods.
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===== SIDA 47 =====
Gross (Loss) Profit and Net Earnings
In the quarter , the gross loss was $ 2.5 million, compared to a gross profit of $ 0.6 million from the prior year comparable
period. This decrease was mainly due to lower copper and zinc sales volume and higher unit production costs primarily
driven by higher electricity and labour costs. Gross loss in the year was lower than the gross loss in the prior year
comparable period, primarily driven by higher realized copper and zinc prices.
Net earnings in the year and quarter were impacted by a pre-tax non-cash impairment charge of $291.2 million (after-tax
$270.3 million) that was recorded in December 2024 relating to the Neves-Corvo reporting segment to recognize goodwill,
mining rights and mineral properties at their estimated fair value, based on the expected sales price as established by the
definitive agreement. The pre-tax impairment charge includes $90.7 million allocated to the Neves-Corvo goodwill. These
charges are recorded in net earnings (loss) from discontinued operations
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===== SIDA 48 =====
Zinkgruvan (Sweden)
The Zinkgruvan mine consists of an underground mine and on-site processing facilities, located approximately 200 km
southwest of Stockholm, Sweden. The plant has processing capacity of 1.6 mtpa. Products are zinc, lead and copper
concentrates. The primary metal is zinc, with lead, silver and copper as by-products. In December 2024, the Company
announced the sale of Zinkgruvan with the transaction expected to close in mid-2025.
Operating Statistics (Discontinued Operation)
2024 2023
(100% Basis) Total Q4 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1
Ore mined, zinc (kt) 1,246 332 300 308 306 1,178 313 287 268 310
Ore mined, copper (kt) 184 8 84 45 47 207 36 65 51 55
Ore milled, zinc (kt) 1,239 311 302 313 313 1,179 327 326 211 315
Ore milled, copper (kt) 207 14 76 42 75 198 28 58 34 78
Grade
Zinc (%) 7.3 8.4 6.3 7.7 6.7 7.3 6.7 8.2 6.6 7.4
Lead (%) 3.1 3.7 2.4 3.7 2.7 2.9 2.5 3.5 2.4 2.9
Copper (%) 2.2 2.0 2.1 2.0 2.4 2.5 2.0 2.5 3.1 2.4
Recovery
Zinc (%) 90.9 91.8 89.8 90.6 91.1 89.0 89.8 90.0 86.3 88.7
Lead (%) 80.0 83.0 78.5 78.2 79.4 77.8 77.1 75.7 76.2 82.1
Copper (%) 88.1 86.7 87.3 88.0 89.0 88.5 86.3 88.7 86.1 90.5
Production (contained metal)
Zinc (t) 82,133 24,067 17,101 21,764 19,201 76,349 19,684 23,967 11,938 20,760
Lead (t) 30,888 9,481 5,693 8,966 6,748 26,284 6,418 8,643 3,816 7,407
Copper (t) 3,964 258 1,385 747 1,574 4,434 501 1,299 917 1,717
Silver (koz) 2,513 637 537 699 640 2,300 509 785 374 632
Sales volume (payable metal)
Zinc (t) 68,086 18,627 15,124 18,510 15,825 65,344 17,316 22,042 9,374 16,612
Lead (t) 28,036 7,786 6,346 9,069 4,835 25,527 5,714 9,391 4,944 5,478
Copper (t) 3,809 457 1,775 821 756 4,473 845 1,758 1,001 869
Revenue ($000s) 256,748 67,455 68,633 76,587 44,073 223,591 50,783 82,290 29,520 60,998
Production costs ($000s) 122,064 29,146 30,109 32,734 30,075 115,394 31,520 37,183 17,786 28,905
Gross profit ($000s) 97,664 32,359 24,250 35,040 6,015 74,073 10,519 32,727 6,821 24,006
Cash cost ($ per pound)1 0.41 0.43 0.16 0.39 0.65 0.43 0.63 0.28 0.24 0.54
AISC ($ per pound)1 0.87 0.99 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 for the quarter was higher than in the prior year comparable period due to higher grades and
recoveries. Zinc and lead production for the year was higher than in the prior year comparable period due to higher
throughput, grades and recoveries. Zinc production of 82,133 tonnes was an annual record for the operation. Annual zinc
production was within the most recently disclosed production guidance ranges. Throughput in 2023 was affected by the
installation of a zinc sequential flotation system, which limited mill availability. Copper production for the quarter was lower
than in the prior quarter comparable period due to lower throughput. Copper production for the year was lower than in the
prior year comparable period and slightly below the most recently disclosed annual production guidance range primarily
due to lower than planned grades.
Production Costs and Cash Cost
Production costs in the quarter were lower than in the prior year comparable period primarily due to lower labour and
contractor costs, partially offset by higher zinc and lead sales volumes. Production costs in the year were higher than in the
prior year comparable period primarily due to higher zinc and lead sales volumes.
Cash cost per pound for the quarter and year was lower than in the prior year comparable periods primarily due to higher
zinc sales volumes and lower treatment and refining charges. Annual cash cost was within the most recently disclosed
guidance range. AISC per pound in the quarter and year was higher than in the prior year comparable periods due to higher
sustaining capital expenditure.
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===== SIDA 49 =====
Gross Profit
Gross profit for the quarter was higher than in the prior year comparable period primarily due to higher realized zinc prices,
lower treatment and refining charges and lower production costs. Gross profit for the year was higher than in the prior year
comparable period primarily due to higher realized zinc and copper prices, lower treatment and refining charges and higher
zinc and lead sales volume. These increases were partially offset by higher depreciation and operating costs.
33
===== SIDA 50 =====
Vicuña Projects (Argentina and Chile)
Project Development
During the quarter, the focus was on preparing for the completion of the Filo acquisition and formation of the 50/50 Joint
Arrangement with BHP announced on July 29, 2024. The work plan associated with the transaction with BHP progressed as
expected. Subsequent to year-end on January 15, 2025, the Company completed the Filo acquisition and the Joint
Arrangement with BHP, resulting in the Company indirectly holding a 50% interest in Vicuña, which owns the Filo del Sol
project and Josemaria project. BHP indirectly owns the remaining 50% interest in Vicuña.
As part of the Joint Arrangement, the 2024 work scope was changed to include incorporation of new studies and
preparation of a resource model relating to the Filo del Sol project, a joint development concept pertaining to the Josemaria
and Filo del Sol ore bodies as well as processing facilities and infrastructure. An action plan was developed for the combined
project, including a 2025 budget that included advancement of studies associated with the synergies between the Filo del
Sol and Josemaria projects, continuation of the drilling program and advancing the Josemaria project.
Josemaria activities were focused on continuing the Environmental Impact Assessment ("EIA") update and maintaining
progress on the water program. The field activities continued with the water program, geotechnical studies, road
maintenance, wetlands biodiversity offset and exploration drilling at Cumbre Verde.
Environmental and permitting work continued on several fronts. Work progressed on preparation of the Josemaria EIA
update which is forecast to be complete in Q1 2025. The incoming 500kV powerline and substation EIA was approved in
November, and the Northern Access Road EIA was approved in December. The ongoing technical review of the revised
tailings dam design is expected to be approved in early 2025.
Government relations activities continued with both the national and provincial governments. In conjunction, discussions
on provincial agreements continued to be advanced. A plan for preparation and submission of the Basis Law - Incentive
Regime for Large Investments ("RIGI") application was advanced.
Community relations programs continued in the fourth quarter with key developments being: a 2023 sustainability report, a
Google-certified IT job training program for youth in the community, initiation of the first-ever seed-capital program for
developing local suppliers, an internet connectivity project connecting community households was inaugurated, and a
women entrepreneurship program was completed.
During the year, the Company spent $243.6 million in capital expenditure compared to $275.9 million in 2023. Spending
exceeded the annual guidance of $230.0 million due to better progress being achieved on the advancement of various
Josemaria project initiatives in connection with the transaction with BHP.
Exploration Update
During the quarter, exploration activity focused on in-mine and near-mine targets at the Company's operations. Exploration
drilling at Candelaria was focused on Candelaria South, La Portuguesa and La Espanola.
At Caserones, exploration drilling was completed in the lower portion of the mineral resource in search of higher-grade
copper breccia bodies that could improve the average grade of the resource and potentially expand it. The drilling program
at Angelica, in search of copper sulphides, was also completed during the quarter.
Drilling at Chapada concentrated on adding high grade resources to Sauva and testing near-mine geochemical anomalies.
At Josemaria, the drilling campaign restarted at Cumbre Verde.
Drilling continued at Eagle during the quarter with one surface hole targeting a geophysical anomaly east of Eagle East. At
Neves-Corvo, the 2024 drilling program focused on extending inferred resources at Lombador North and near-mine drilling
at Neves Southwest concluded at the end of the quarter. Drilling at Zinkgruvan was focused on resource expansion.
All 2024 drilling campaigns were successfully completed by the end of the quarter.
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===== SIDA 51 =====
Liquidity and Capital Resources
Consolidated Cash Flow
Year ended December 31,
($ thousands, continuing operations unless otherwise noted) 2024 2023 Change
Cash provided by operating activities related to continuing operations 1,300,848 827,244 473,604
Cash provided by operating activities related to discontinued operations 218,009 189,368 28,641
Cash used in investing activities related to continuing operations (855,369) (1,518,812) 663,443
Cash used in investing activities related to discontinued operations (151,537) (155,722) 4,185
Cash (used in) provided by financing activities related to continuing
operations (349,774) 711,910 (1,061,684)
Cash provided by financing activities related to discontinued operations 5,547 16,676 (11,129)
Effect of foreign exchange on cash balances (4,238) 6,742 (10,980)
Increase in cash and cash equivalents 163,486 77,406 86,080
Opening cash and cash equivalents 268,793 191,387 77,406
Less: Cash and cash equivalents included in assets held for sale (74,801) — (74,801)
Closing cash and cash equivalents 357,478 268,793 88,685
Adjusted operating cash flow1 — continuing operations 1,079,968 847,276 232,692
Adjusted operating cash flow1 — discontinued operations 222,624 176,941 45,683
Free cash flow from operations1 — continuing operations 797,100 300,009 497,091
Free cash flow from operations1 — discontinued operations 75,892 45,071 30,821
Free cash flow1 — continuing operations 508,182 (19,914) 528,096
Free cash flow1 — discontinued operations 63,049 33,389 29,660
1This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
Cash provided by operating activities related to continuing operations during the year was $473.6 million higher than in the
prior year primarily due to higher sales volumes combined with favourable realized copper and gold prices, including the
impacts of upward provisional pricing adjustments on prior year concentrate sales on an annual basis. The inclusion of full
year operating cash flows at Caserones also contributed to increased cash flow from operating activities year over year.
Additional cash was provided from $220.9 million of positive working capital changes primarily due to net collections of
trade receivables at Caserones, timing of tax payments at Candelaria, and $45.0 million in payments received by Caserones
relating to two shipments of copper concentrate scheduled for December 2024 that were delayed to early January due to
certain operational and weather related issues.
Cash used in investing activities related to continuing operations during the year was $663.4 million lower than in the prior
year primarily due to the acquisition of Caserones and a $49.8 million reduction in capital expenditures. Cash used in
investing activities related to continuing operations during the year also included a $41.7 million subscription for Filo shares
to provide interim financing to Filo.
Cash used in financing activities related to continuing operations during the year included net borrowings of $567.1 million,
part of which was used to finance the exercise of the option to acquire an additional 19% interest in Caserones for $350.0
million. The Company additionally paid $202.5 million dividends to shareholders in the year, paid $152.0 million in
distributions to partners holding minority interests in Candelaria and Caserones, and repurchased $24.4 million of its
common shares through an automatic share purchase plan, pursuant to its Normal Course Issuer Bid (“NCIB”).
Free cash flow from operations - continuing during the year was higher than in the prior year comparable period primarily
as a result of incremental cash flows from a full year of Caserones operations and favourable realized copper and gold
prices as discussed above. Free cash flow from operations - discontinued during the year was higher than the prior year
comparable period due to higher realized zinc prices combined with lower cash costs.
Free cash flow - continuing operations was higher than in the prior year comparable period as a result of the same factors
discussed above for Free cash flow from operations - continuing, in addition to lower spending on the Vicuña Projects
during the year.
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===== SIDA 52 =====
Liquidity and Financial Position
($ thousands, continuing operations except for 2023 or otherwise
noted) December 31, 2024 December 31, 2023 Change
Cash and cash equivalents 357,478 268,793 88,685
Total assets 10,406,712 10,861,199 (454,487)
Debt1 1,756,972 1,208,600 548,372
Lease liabilities2 249,185 277,208 (28,023)
Net debt3 (1,597,800) (1,223,389) (374,411)
Net debt excluding lease liabilities3 (1,332,349) (946,181) (386,168)
1Debt includes both current and non-current portions related to continuing operations.
2 Lease liabilities includes both current and non-current portions.
3This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion. This includes discontinued
operations.
The Company continues to expect to be able to fund all its contractual commitments with its operating cash flow, cash on
hand and available capital resources.
Net debt excluding lease liabilities3 at December 31, 2024 increased from December 31, 2023 primarily due to net proceeds
from debt, partially offset by increased cash balances.
During the quarter and year, 2,815,200 shares were purchased under the Company's NCIB (quarter and year ended
December 31, 2023 - nil shares).
Commodity prices, primarily copper, zinc, gold and nickel are key performance drivers and fluctuations in the prices of these
commodities can have a dramatic effect on the results of operations. Prices can fluctuate widely and are affected by
numerous factors beyond the Company’s control. The prices of metals are influenced by supply and demand, exchange
rates, interest rates and interest rate expectations, inflation or deflation and expectations with respect to inflation or
deflation, speculative activities, changes in global economies, and geopolitical, social and other factors. The supply of
metals consists of a combination of new mine production, recycling and existing stocks held by governments, producers and
consumers. The Company economically hedges certain of its operating currencies as well as metal prices and certain input
commodities (refer to "Financial Instruments" section below).
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===== SIDA 53 =====