FULLTEXT DEL 3 AV 3
Kvartalsrapport Q4 2025
Contingent liabilities - Contingent liabilities are possible obligations that arise from past events which will be
confirmed by the occurrence or non-occurrence of future events. These contingencies are not recognized in the
consolidated financial statements when the obligation is not probable or if the obligation cannot be measured
reliably. The Company exercises significant judgment when determining the probability of the future outcome
and with regard to any required disclosure of contingencies, and measuring the liability is a significant estimate.
Joint arrangements - The Company is party to Vicuña, an arrangement over which it does not have control.
Significant judgment is required in determining whether joint control over the arrangement exists and, if so,
which parties have joint control, and whether the arrangement is a joint venture or a joint operation. In assessing
whether the Company has joint control, management analyzes the activities of an arrangement to determine
which activities most significantly affect the returns of the arrangement over its life. If joint control over the
arrangement exists, an assessment of whether the arrangement is a joint venture or a joint operation is required.
This assessment is based on whether the Company retains rights to the assets, and obligations for the liabilities,
relating to the arrangement or the Company only has the rights to the net assets of the arrangement is more
applicable. In making this determination, management reviews the legal form of the arrangement, the terms of
the contractual arrangement, and other facts and circumstances. In a situation where the legal form and the
terms of the contractual arrangement do not give the Company rights to the assets and obligations for the
liabilities, an assessment of other facts and circumstances is required, including whether the activities of the
arrangement are primarily designed for the provision of output to the parties and whether the parties are
substantially the only source of cash flows contributing to the arrangement. These assessments require judgment
and are specific to each arrangement.
3. ASSETS AND LIABILITIES HELD FOR SALE AND DISCONTINUED OPERATIONS
Disposal of Eagle mine
On December 18, 2025, the Company entered into a definitive agreement to sell its 100% interest in the Eagle mine to
Talon (the "Definitive Agreement"). The transaction completed on January 9, 2026. Under the terms of the agreement,
the Company received 275.2 million common shares of Talon which, along with the Company's existing 1.57% interest
in Talon, resulted in the Company owning 19.86% of the issued and outstanding common shares of Talon on
completion of the transaction. The Company will also receive ore delivery payments of $1.00 per tonne for any non-
Eagle ore processed through the Humboldt mill, to a maximum of $20.0 million. The transaction consideration is
subject to customary working capital adjustments.
As at December 31, 2025, the Eagle mine reporting segment met the criteria to be classified as held for sale and
discontinued operations. The results of this operation have been re-presented for the current and comparative years
to reclassify the earnings (loss) as earnings (loss) from discontinued operations. All assets and liabilities relating to the
Eagle mine reporting segment have been classified as current assets and current liabilities held for sale at December
31, 2025.
The Company is required to assess the Eagle mine CGU for impairment or impairment reversal immediately prior to its
reclassification as held for sale. On December 31, 2025 , the recoverable amount of the Eagle mine CGU exceeded its
carrying value and a partial impairment reversal of $88.4 million ($69.8 million net of tax) was recorded in net earnings
(loss) from discontinued operations. The recoverable amount was based on consideration as established by the
Definitive Agreement. An impairment charge of $104.9 million ($82.8 million net of tax) was previously recorded for
the Eagle mine at December 31, 2024 due to a decline in nickel prices and prolonged rehabilitation of the Eagle East
ramp.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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===== SIDA 109 =====
Disposal of European operations
On December 9, 2024, the Company entered into a definitive agreement to sell its 100% interests in the Neves-Corvo
and Zinkgruvan mines to Boliden AB ("Boliden"). The transaction constitutes the sale of all of the Company's European
operating assets allowing the Company to focus on its copper-dominant assets in South America. The transaction
completed on April 16, 2025 and the Company received cash consideration of $1.4 billion.
The Company may also receive up to $150.0 million in contingent cash consideration if certain metal price thresholds
are met. These include a percentage of incremental revenue realized at the Neves-Corvo mine in each of the three
calendar years between 2025 and 2027 and at the Zinkgruvan mine between 2025 and 2026. The estimated fair value
of the contingent consideration on April 16, 2025 was $44.1 million (Note 26). Contingent consideration is revalued at
each reporting period with changes recorded in net earnings (loss) from discontinued operations. At December 31,
2025, the fair value of the contingent consideration was $85.7 million, of which $42.9 million is included in other
current assets and $42.8 million is included in contingent consideration and other non-current assets (Note 8) in the
consolidated balance sheet. For the year ended December 31, 2025, a realized and unrealized gain on the revaluation
of the contingent consideration of $5.5 million and $41.5 million, respectively were recorded in net earnings (loss)
from discontinued operations.
On completion of the disposal of the European operations, the Company recognized a gain on disposal of $106.4
million, net of income tax, calculated as follows:
Neves-Corvo mine Zinkgruvan mine Total
Cash consideration $ 773.6 $ 628.5 $ 1,402.1
Fair value of contingent consideration 41.7 2.4 44.1
Transaction costs (4.7) (3.8) $ (8.5)
Net proceeds $ 810.6 $ 627.1 $ 1,437.7
Net assets Neves-Corvo mine Zinkgruvan mine Total
Cash and cash equivalents $ 20.0 $ 59.0 $ 79.0
Trade and other receivables 77.5 9.7 87.2
Inventories 45.9 22.8 68.7
Restricted funds 52.4 — 52.4
Mineral properties, plant and equipment 840.2 344.9 1,185.1
Trade and other payables (85.8) (36.5) (122.3)
Income taxes receivable (payable) 0.9 (8.2) (7.3)
Lease liabilities (16.4) (0.6) (17.0)
Deferred revenue (27.2) (44.0) (71.2)
Reclamation and other closure provisions (98.7) (50.1) (148.8)
Other long-term liabilities (8.4) (4.4) (12.8)
Deferred tax liabilities — (30.9) (30.9)
800.4 261.7 1,062.1
Gain on disposal before reclassification of foreign currency translation
reserve 10.2 365.4 375.6
Reclassification of foreign currency translation reserve to earnings (161.4) (107.8) (269.2)
Net gain (loss) on disposal $ (151.2) $ 257.6 $ 106.4
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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===== SIDA 110 =====
The net earnings (loss) from discontinued operations for the years ended December 31, 2025 and 2024, are as follows:
For the year ended December 31, 2025 Neves-Corvo 1 Zinkgruvan 1 Eagle Total
Revenue $ 128.3 $ 72.4 $ 208.6 $ 409.3
Production costs (90.2) (36.9) (150.7) (277.8)
Depreciation, depletion and amortization — — (22.3) (22.3)
Exploration and business development (2.0) (3.4) (1.5) (6.9)
Finance (costs) income (3.9) (0.8) (4.3) (9.0)
Other income (expense) 41.3 (1.2) — 40.1
Asset (impairment) reversal (65.7) — 88.4 22.7
Earnings before income taxes 7.8 30.1 118.2 156.1
Income tax (expense) recovery (0.1) (2.9) (0.3) (3.3)
Deferred tax (expense) recovery 0.2 (2.6) (20.9) (23.3)
Net earnings before gain (loss) on disposal $ 7.9 $ 24.6 $ 97.0 $ 129.5
Gain (loss) on disposal of subsidiaries (151.2) 257.5 — 106.3
Net earnings (loss) from discontinued operations $ (143.3) $ 282.1 $ 97.0 $ 235.8
1 Includes financial results from January 1, 2025 to April 16, 2025 and the revaluation of contingent consideration at December 31, 2025.
For the year ended December 31, 2024 Neves-Corvo Zinkgruvan Eagle Total
Revenue $ 438.1 $ 256.7 $ 152.5 $ 847.3
Production costs (323.2) (122.1) (111.9) (557.2)
Depreciation, depletion and amortization (118.3) (37.0) (33.6) (188.9)
Exploration and business development (2.8) (10.0) (3.2) (16.0)
Finance (costs) income (4.8) (4.9) (3.6) (13.4)
Other (expense) income (4.8) (4.0) (2.2) (11.0)
Goodwill and asset impairment (291.2) — (104.9) (396.1)
Partial suspension of underground mining operations — — (36.1) (36.1)
(Loss) earnings before income taxes (307.0) 78.7 (143.0) (371.4)
Income tax (expense) recovery 0.8 (15.5) — (14.7)
Deferred tax recovery 27.7 0.7 28.8 57.2
Net (loss) earnings from discontinued operations $ (278.5) $ 63.9 $ (114.2) $ (328.9)
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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===== SIDA 111 =====
The assets and liabilities that are included in the held for sale categories as at December 31, 2025 are summarized
below:
Eagle mine
Assets classified as held for sale
Cash and cash equivalents $ 22.0
Trade and other receivables 10.4
Inventories 20.9
Mineral properties, plant and equipment 175.8
$ 229.1
Liabilities classified as held for sale
Trade and other payables $ 19.5
Lease liabilities 9.0
Reclamation and other closure provisions 73.8
Other long-term liabilities 1.0
Deferred tax liabilities 23.5
$ 126.8
The assets and liabilities that are included in the held for sale categories as at December 31, 2024 are summarized
below:
Neves-Corvo mine Zinkgruvan mine Total
Assets classified as held for sale
Cash and cash equivalents $ 23.9 $ 50.9 $ 74.8
Trade and other receivables 90.2 22.9 113.1
Income taxes receivable 0.8 — 0.8
Inventories 39.7 16.5 56.2
Restricted funds 49.6 — 49.6
Mineral properties, plant and equipment 810.6 284.6 1,095.2
$ 1,014.8 $ 374.9 $ 1,389.7
Liabilities classified as held for sale
Trade and other payables $ 99.8 $ 32.4 $ 132.2
Income taxes payable — 7.8 7.8
Lease liabilities 15.7 0.6 16.3
Deferred revenue 25.1 39.2 64.3
Reclamation and other closure provisions 89.9 44.2 134.1
Other long-term liabilities 7.7 4.5 12.2
Deferred tax liabilities — 26.2 26.2
$ 238.2 $ 154.9 $ 393.1
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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===== SIDA 112 =====
4. ACQUISITION OF FILO AND FORMATION OF VICUÑA
On January 15, 2025, the Company, together with BHP Investments Canada Inc. ("BHP"), completed the acquisition of
Filo Corp. ("Filo") through a plan of arrangement (the “Arrangement”). The Company’s share of the consideration for
the Arrangement was $610.7 million (C$877.8 million) in cash and 94.1 million of the Company’s shares to Filo
shareholders, along with its existing 1.7% interest in Filo (prior to completion). BHP's share of the consideration for the
Arrangement was $1.4 billion (C$2.0 billion) in cash, along with its existing 7.0% interest in Filo (prior to completion).
Concurrently, BHP paid the Company cash consideration of $689.5 million for a 50% interest in the Josemaria project,
and the Company and BHP formed the Vicuña 50/50 independently managed joint arrangement holding interests in
the Filo del Sol project and the Josemaria project (the "Vicuña Project").
The Company has concluded the Vicuña joint arrangement is a joint operation upon considering other facts and
circumstances, such as the right and the obligation to take a share of the output of the arrangement. Accordingly, the
Company includes its 50% share of the respective assets, liabilities, expenses, and cash flows of Vicuña in the
consolidated financial statements of the Company.
The purchase price of Filo (50% share) is as follows:
Cash consideration $ 610.7
Fair value of 94,074,959 common shares issued by the Company (a) (b) 799.8
Transaction costs 10.1
The Company's previously held common shares in Filo (b) 49.9
Total purchase price $ 1,470.5
a) The fair value of the common shares issued was determined using the Company’s share price of C$12.22 and
foreign exchange rate of USD/CAD: 1.437 at the close of business on January, 15, 2025.
b) Immediately prior to the acquisition of Filo, the Company held 2,264,924 Filo shares with a fair value of $49.9
million (December 31, 2024 - $50.2 million).
The Company's initial interest in Vicuña as at January 15, 2025, including transaction costs, is comprised of the
following:
50% interest
in Filo
50% interest
in Josemaria
50% share of
Vicuña on
formation
Cash and cash equivalents $ 17.3 $ 7.0 24.3
Receivables and other assets 0.5 $ 1.2 1.7
Mineral properties, plant and equipment 1,456.7 701.1 2,157.8
Total assets 1,474.5 709.3 2,183.8
Trade and other payables (4.0) (19.8) (23.8)
Total liabilities (4.0) (19.8) (23.8)
Total net assets $ 1,470.5 $ 689.5 $ 2,160.0
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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===== SIDA 113 =====
5. CASH AND CASH EQUIVALENTS
Cash and cash equivalents are comprised of the following:
December 31, 2025 December 31, 2024
Cash $ 274.4 $ 197.2
Short-term deposits 21.8 160.3
$ 296.2 $ 357.5
6. TRADE AND OTHER RECEIVABLES
Trade and other receivables are comprised of the following:
December 31, 2025 December 31, 2024
Trade receivables $ 673.6 $ 347.8
Value added tax 68.7 53.0
Prepaid expenses 22.3 42.6
Other receivables 60.0 67.5
$ 824.6 $ 510.9
The Company does not have any significant balances that are past due nor any significant expected credit losses. The
Company's credit risk is discussed in Note 30.
The carrying amounts of trade and other receivables are denominated as follows:
Currency December 31, 2025 December 31, 2024
USD 683.3 365.0
CLP 95,661.1 93,826.7
CAD 19.4 37.8
SEK — 100.0
BRL 121.4 94.6
ARS 97.5 621.6
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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===== SIDA 114 =====
7. INVENTORIES
Inventories are comprised of the following:
December 31, 2025 December 31, 2024
Materials and supplies $ 297.1 $ 279.4
Ore stockpiles and dump leach 222.8 188.8
Finished goods - concentrate stockpiles 48.7 116.6
Finished goods - copper cathode and other 19.0 22.6
$ 587.6 $ 607.4
Long-term inventories are comprised of the following:
December 31, 2025 December 31, 2024
Ore stockpiles at Candelaria $ 502.8 $ 480.9
Ore stockpiles at Chapada 217.6 299.9
Dump leach at Caserones 81.7 91.1
$ 802.1 $ 871.9
As at December 31, 2025, primarily as a result of mine plan changes deprioritizing the timing of processing of
stockpiles, the Company recognized a net realizable value write-down of $99.9 million of the long-term ore stockpile at
Chapada (December 31, 2024 - partial reversal of previous write-down of $28.3 million). Included in the write-down
was $11.7 million of depreciation, depletion and amortization ( December 31, 2024 - $1.7 million reversal of
depreciation, depletion and amortization).
8. CONTINGENT CONSIDERATION AND OTHER NON-CURRENT ASSETS
Other non-current assets are comprised of the following:
December 31, 2025 December 31, 2024
Contingent consideration (Note 3) $ 42.8 $ —
Marketable securities, non-current portion 22.8 10.0
Other 9.9 9.1
$ 75.5 $ 19.1
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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===== SIDA 115 =====
9. MINERAL PROPERTIES, PLANT AND EQUIPMENT
Mineral properties, plant and equipment ("MPP&E") are comprised of the following:
Cost
Mineral
properties
Plant and
equipment
Assets under
construction1
Development
project2
Software
intangible
assets Total
As at December 31, 2023 $ 6,014.8 $ 5,308.0 $ 330.3 $ 1,130.1 $ 63.6 $ 12,846.8
Additions 239.2 100.0 367.9 265.5 0.7 973.3
Impairment (Note 10) (331.2) (111.7) (1.1) — — (444.0)
Write-downs — — (4.1) (18.0) — (22.1)
Disposals — (91.5) — — — (91.5)
Transfers 68.6 285.6 (355.8) — 1.6 —
Reclassification to assets
held for sale (Note 3) (1,720.5) (1,009.2) (79.3) — (7.2) (2,816.2)
Effects of foreign
exchange (134.4) (72.8) (6.3) — (0.5) (214.0)
As at December 31, 2024 4,136.5 4,408.4 251.6 1,377.6 58.2 10,232.3
Formation of Vicuña3
(Note 4) — (16.5) — 785.7 — 769.2
Additions 176.7 33.7 356.2 204.0 1.7 772.3
Impairment reversal
(Note 3) 80.4 8.0 — — — 88.4
Disposals (6.9) (251.8) (0.3) — — (259.0)
Transfers 46.1 129.0 (175.2) — 0.1 —
Reclassification to assets
held for sale (Note 3) (470.4) (535.1) (3.8) — (4.3) (1,013.6)
As at December 31, 2025 $ 3,962.4 $ 3,775.7 $ 428.5 $ 2,367.3 $ 55.7 $ 10,589.6
Accumulated depreciation,
depletion and amortization
Mineral
properties
Plant and
equipment
Assets under
construction1
Development
project2
Software
intangible
assets Total
As at December 31, 2023 $ 3,194.1 $ 1,910.4 $ — $ — $ 17.0 $ 5,121.5
Depreciation 368.2 419.6 — — 9.3 797.1
Disposals — (85.2) — — — (85.2)
Reclassification to assets
held for sale (Note 3) (1,187.6) (530.0) — — (3.3) (1,720.9)
Effects of foreign exchange (88.2) (36.3) — — (0.3) (124.8)
As at December 31, 2024 2,286.5 1,678.5 — — 22.7 3,987.7
Formation of Vicuña3
(Note 4) — (4.0) — — — (4.0)
Depreciation 304.5 332.0 — — 8.3 644.8
Disposals (2.8) (234.7) — — — (237.5)
Reclassification to assets
held for sale (Note 3) (376.3) (459.1) — — (2.4) (837.8)
As at December 31, 2025 $ 2,211.9 $ 1,312.7 $ — $ — $ 28.6 $ 3,553.2
1 Represent assets under construction at the Company's operating mine sites which are currently non-depreciable.
2 Assets relate to the Company's share of the Vicuña Project assets which are currently non-depreciable.
3 Formation of Vicuña movements in cost of $769.1 million and accumulated depreciation of $4.0 million, totaling $773.1 million, includes the 50%
interest in Filo of $1,456.7 million less the 50% interest in Josemaria sold to BHP of $683.6 million and are inclusive of capitalized borrowing and
transaction costs.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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===== SIDA 116 =====
Net book value
Mineral
properties
Plant and
equipment
Assets under
construction
Development
project
Software
intangible
assets Total
As at December 31, 2024 $ 1,850.0 $ 2,729.9 $ 251.6 $ 1,377.6 $ 35.5 $ 6,244.6
As at December 31, 2025 $ 1,750.5 $ 2,463.0 $ 428.5 $ 2,367.3 $ 27.1 $ 7,036.4
During the year ended December 31, 2025, the Company capitalized $25.8 million (December 31, 2024 - $37.4 million),
of finance costs related to the Vicuña Project at a weighted average interest rate of 5.8% (December 31, 2024 - 6.0%).
During the year ended December 31, 2025, the Company capitalized $166.4 million (December 31, 2024 - $226.2
million), of deferred stripping costs to mineral properties. The depreciation expense related to deferred stripping for
the year ended December 31, 2025 was $197.4 million (December 31, 2024 - $187.0 million). Included in the mineral
properties balance at December 31, 2025 is $0.8 million related to deferred stripping at Chapada (December 31, 2024 -
$436.3 million at Candelaria and Caserones), which is currently non-depreciable.
The Company leases various assets including power line infrastructure, buildings and storage facilities , vehicles,
machinery and equipment. The following table summarizes the changes in right-of-use assets within plant and
equipment:
Net book value
As at December 31, 2023 $ 284.0
Additions 70.8
Depreciation (76.4)
Disposals (2.7)
Effects of foreign exchange (0.3)
Reclassification to assets held for sale (Note 3) (16.1)
As at December 31, 2024 259.3
Additions 25.3
Depreciation (65.3)
Contribution to Vicuña (Note 4) (1.6)
Reclassification to assets held for sale (Note 3) (8.9)
As at December 31, 2025 $ 208.8
10. GOODWILL AND ASSET IMPAIRMENT
a) Goodwill
The Company recognized goodwill on the acquisition of Chapada, Neves-Corvo and Ojos del Salado (“Ojos”). Goodwill
is allocated to the following CGUs:
Chapada Neves-Corvo Ojos1 Total
Balance at December 31, 2023 $ 134.3 $ 95.6 $ 10.7 $ 240.6
Impairment charges — (90.7) (10.7) (101.4)
Effects of foreign exchange — (4.9) — (4.9)
Balance at December 31, 2024 134.3 — — 134.3
Balance at December 31, 2025 $ 134.3 $ — $ — $ 134.3
1 Ojos is included in the Candelaria reporting segment.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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===== SIDA 117 =====
The Company performs an impairment assessment annually, or more frequently if there are impairment indicators, for
the carrying amount of its CGUs where goodwill is allocated.
The recoverable value of a CGU is determined using the FVLCD method applied by using a discounted cash flow model
based on life-of-mine financial plans, and a market-based approach. Significant assumptions used by management to
determine the recoverable amount include future metal prices, production based on estimated quantities of R&R,
production and capital expenditures, foreign exchange rates, pricing of in-situ mineral resources implied by the market
value of selected comparable transactions involving the sale of similar companies and mineral properties, and discount
rates.
For the 2025 assessment, future metal prices and foreign exchange rates used in the discounted cash flow models are
determined with reference to market consensus estimates observed during the fourth quarter of 2025. The valuation
of recoverable amount is most sensitive to changes in metal prices, exchange rates, discount rates and pricing of in-
situ mineral resources.
Production costs and capital expenditures included in the discounted cash flow models are based on operating plans
which consider past and estimated future performance.
Inputs utilized in the discounted cash flow models were based on level 3 fair value measurements (Note 26), which
were not based on observable market data. The R&R were based on the Company’s last published estimate dated
December 31, 2025. Incorporated in the FVLCD are fair value estimates developed by the Company for mineral
resources not captured in the cash flow projections model. These estimates are valued using third-party market
information, which includes pricing of in-situ mineral resources implied by the market value of selected comparable
transactions involving the sale of similar companies and mineral properties.
Chapada
For the Chapada CGU impairment review, the Company used a FVLCD model (level 3 measurement). For the years
ended December 31, 2025 and 2024, the Company determined that the recoverable amount of the Chapada CGU was
higher than its carrying value, and therefore no impairment was recognized. Management applied significant
judgement in estimating the recoverable amount of the Chapada CGU.
Sensitivity analysis was performed on the cash flow model for Chapada. At December 31, 2025, changes in key inputs
such as metal prices (+/-5%), foreign exchange rates (+/-5%) and the discount rate (+/-1%) did not have a material
impact on the result of the Company’s goodwill impairment assessment.
Key assumptions for Chapada
2025 2024
Copper price $/lb 4.50 - 4.95 4.30 - 4.70
Gold price $/oz 3,200 - 3,800 2,150 - 2,575
After-tax discount rate 8.0% 7.5%
BRL/$ exchange rate 5.50 5.50
Life of mine 27 years 26 years
Neves-Corvo
An impairment charge of $291.2 million ($270.3 million net of tax) 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 sale to Boliden (level 2 measurement). The impairment
charge includes $90.7 million allocated to the Neves-Corvo goodwill.
Ojos
In January 2025 the Company received a notice from the Superintendencia del Medio Ambiente (“SMA”), following its
investigative proceedings involving the sinkhole that occurred at the Alcaparrosa mine in 2022. The Alcaparrosa mine
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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===== SIDA 118 =====
is included in the Ojos CGU. The notice levied a fine of $3.3 million and ordered the continued closure of the
Alcaparrosa mine, at which mining operations have been suspended since the incident occurred in 2022. As a result,
an impairment charge of $55.9 million ($41.6 million net of tax) was recorded in December 2024 relating to the Ojos
CGU to write off goodwill and the remaining carrying values of underground development and mine infrastructure.
The impairment charge includes $10.7 million allocated to the Ojos goodwill.
b) Other Asset Impairment
At every reporting period, the Company assesses whether there is an indication that an asset or group of assets may
be impaired. When impairment indicators exist, the Company estimates the recoverable amount of the asset and
compares it against the asset's carrying amount.
Suruca
In February 2025, the Company removed the Suruca gold deposit from Mineral Reserves as development is not
contemplated in the current life-of-mine plan. The Suruca gold deposit is included in the Chapada segment. This was
considered an indicator of impairment for the Suruca mineral property asset. An impairment of $ 93.4 million ($ 61.7
million net of tax) was recorded in earnings in December 2024 to reduce the carrying value of the mineral property
asset to nil.
11. TRADE AND OTHER PAYABLES
Trade and other payables are comprised of the following:
December 31, 2025 December 31, 2024
Trade payables $ 363.0 $ 297.7
Unbilled goods and services 193.8 175.2
Employee benefits payable 72.9 68.8
Sinkhole provision (a) 23.2 16.9
Royalties payable 15.7 24.5
Deferred consideration, current portion (b) 10.0 10.0
Pricing provisions on concentrate sales (c) 4.5 15.5
Prepayment from customers — 45.0
Automatic share purchase plan commitment (d) — 3.7
Other 17.1 16.9
$ 700.2 $ 674.2
a) Relates to expected remediation costs and fines directly related to the sinkhole near the Company's Ojos del
Salado operations. During the year ended December 31, 2025 , the Company increased the provision following
the notice received from Chilean State Defense Council (CDE) regarding the civil claim related to the sinkhole
(Note 24).
b) Relates to the current portion of the remaining deferred cash consideration arising from the Caserones
acquisition, payable in installments in 2026 through 2029.
c) Includes balances owing to customers and provisions arising from forward market price adjustments.
d) As at December 31, 2024, the Company recorded an accrual for the repurchase of shares on the last trading day
of the year that were settled during January 2025.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 29 -
===== SIDA 119 =====
12. DEBT
Debt facilities are comprised of the following:
December 31, 2025 December 31, 2024
Candelaria and Chapada term loans (a) $ 180.8 $ 245.9
Revolving credit facility (b) 56.3 264.7
Term loan (c) — 1,147.7
Commercial paper (d) — 98.7
Debt 237.1 1,757.0
Less: current portion 180.8 344.6
Long-term portion $ 56.3 $ 1,412.4
The changes in the Company's debt facilities are comprised of the following:
As at December 31, 2023 $ 1,208.6
Additions 1,500.6
Payments (944.4)
Deferred financing fee (3.6)
Financing fee amortization 2.4
Effects of foreign exchange (6.6)
As at December 31, 2024 1,757.0
Additions 1,714.9
Payments (3,245.2)
Deferred financing fee (0.2)
Financing fee amortization 4.1
Effects of foreign exchange 6.5
As at December 31, 2025 237.1
Less: current portion 180.8
Long-term portion $ 56.3
a) Compañia Contractual Minera Candelaria S.A. ("Candelaria mine"), a subsidiary owned 80% by the Company,
which owns the Candelaria mine, holds a series of unsecured fixed term loans. During the year ended
December 31, 2025, Candelaria mine obtained loans totaling $100.0 million (December 31, 2024 - $215.0
million) and repaid $150.0 million (December 31, 2024 - $115.0 million) of the outstanding loans. As at
December 31, 2025, there was one term loan outstanding of $50.0 million (December 31, 2024 - two term loans
totaling $100.0 million). The outstanding term loan accrues interest at a rate of 4.30% per annum with interest
payable upon maturity in May 2026.
Mineração Maracá Indústria e Comércio S.A. (“Chapada”), a subsidiary of the Company, which owns the
Chapada mine, holds a series of export-linked unsecured fixed term loans. During the year ended December 31,
2025, Chapada obtained loans totaling $316.8 million (December 31, 2024 - $324.2 million), and repaid $331.9
million (December 31, 2024 - $227.1 million) of the outstanding loans. As at December 31, 2025, there were 24
term loans outstanding at Chapada totalling $130.8 million (December 31, 2024 - 41 term loans totalling $145.9
million). These outstanding term loans accrue interest at rates ranging from 4.63% to 5.19% per annum with
interest payable upon their maturities, ranging from January to March 2026.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 30 -
===== SIDA 120 =====
b) The Company has a revolving credit facility of $1,750.0 million, maturing in April 2029. The credit facility bears
interest on drawn funds at rates of Term Secured Overnight Financing Rate (“Term SOFR”) plus Credit Spread
Adjustment (“CSA”) of 0.10% plus an applicable margin of 1.40% to 2.55%, depending on the Company’s net
leverage ratio and progress against sustainability performance targets. The facility is subject to customary
covenants. During the year ended December 31, 2025, the Company drew down $1,050.0 million (December
31, 2024 - $340.0 million), and repaid $ 1,260.0 million (December 31, 2024 - $320.0 million). As at December
31, 2025, a principal balance of $60.0 million (December 31, 2024 - $270.0 million) was outstanding, with
unamortized deferred financing fees of $3.7 million (December 31, 2024 - $5.3 million) netted against
borrowings.
c) In April 2025, the Company repaid in full the $1,150.0 million outstanding balance of its term loan using the
proceeds from sale of the Neves-Corvo and Zinkgruvan mines (Note 3). As a result of the repayment, the term
loan has been extinguished and cannot be redrawn. During the year ended December 31, 2025, the remaining
unamortized deferred financing fees of $2.3 million, were recognized in finance costs.
d) Neves-Corvo was party to three unsecured commercial paper programs with maturities ranging from May 2025
to July 2028. Pursuant to the terms of the transaction with Boliden, the Company repaid the $102.7 million
(€95.0 million) outstanding balance of the commercial papers immediately prior to the sale of Neves-Corvo and
this balance was not included in the net assets disposed (Note 3). During April 2025, the program was cancelled
and therefore as at December 31, 2025 , $nil principal balance (December 31, 2024 - $ 98.7 million
(€95.0 million)) was outstanding.
During the year ended December 31, 2025 , Neves-Corvo drew down $248.1 million (€235.0 million) from the
commercial paper program (December 31, 2024 - $271.3 million (€250.0 million)), and repaid $353.3 million
(€310.0 million) (December 31, 2024 - $282.3 million (€260.0 million)).
The schedule of undiscounted debt obligations is as follows:
Less than one year $ 180.8
One to five years 60.0
More than five years —
Total undiscounted obligations as at December 31, 2025 $ 240.8
Related to continuing operations $ 240.8
Related to discontinued operations $ —
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 31 -
===== SIDA 121 =====
13. LEASE LIABILITIES
The following table summarizes the changes in the Company's lease liabilities:
As at December 31, 2023 $ 277.2
Additions 69.9
Payments (93.5)
Disposals (2.0)
Interest 24.1
Reclassified to liabilities held for sale (Note 3) (16.3)
Effects of foreign exchange (10.2)
As at December 31, 2024 249.2
Contribution to Vicuña (Note 4) (1.1)
Additions 24.7
Payments (82.4)
Interest 22.6
Reclassified to liabilities held for sale (Note 3) (9.0)
Effects of foreign exchange 8.5
As at December 31, 2025 212.5
Less: current portion 45.6
Long-term portion $ 166.9
Lease liabilities relate to leases on power line infrastructure, buildings and storage facilities, vehicles, machinery and
equipment, which have remaining lease terms of one to twelve years and interest rates of 1.0% - 10.0% over the terms
of the leases.
Certain leases relating to mine development, exploration, production and transportation equipment contain variable
lease expenses based on tonnage or drilling metres. Variable lease expense for the year ended December 31, 2025 was
$87.4 million (December 31, 2024 - $111.7 million). The Company has short-term leases related to mining equipment
and office space. Short-term lease expense for the year ended December 31, 2025 was $24.5 million (December 31,
2024 - $27.0 million).
The schedule of undiscounted lease obligations is as follows:
Less than one year $ 61.6
One to five years 129.8
More than five years 113.4
Total undiscounted obligations as at December 31, 2025 $ 304.8
Related to continuing operations $ 294.0
Related to discontinued operations $ 10.8
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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===== SIDA 122 =====
14. DEFERRED REVENUE
The following table summarizes the changes in deferred revenue:
As at December 31, 2023 $ 623.2
Recognition of revenue (78.3)
Variable consideration adjustment (1.6)
Finance costs 34.3
Reclassified to liabilities held for sale (Note 3) (64.3)
Effects of foreign exchange (5.6)
As at December 31, 2024 507.7
Recognition of revenue (67.1)
Variable consideration adjustment (6.5)
Finance costs 26.4
As at December 31, 2025 460.5
Less: current portion 56.3
Long-term portion $ 404.2
Consideration received under the Company’s gold, silver and copper streaming agreements is deemed to be variable
and can be subject to cumulative adjustments when the contractual volume to be delivered changes. As a result of
changes to the Company’s R&R, adjustments have been made to the deferred revenue liability for 2024 and 2025
which were recognized through revenue and finance costs.
For the year ended December 31, 2025, the Company recognized finance costs at a weighted average rate of 5.2%
(2024 - 5.5%) on the deferred revenue balances.
a) Candelaria
The Company entered into a stream agreement with Franco-Nevada Corporation (“FN”), whereby the Company
has agreed to sell 68% of all the gold and silver contained in production from Candelaria until 720,000 ounces
("oz") of gold and 12 million oz of silver have been delivered. Thereafter, FN will be entitled to purchase 40% of the
gold and silver production from Candelaria. The Company received an up-front payment of $648 million which is
being recognized as gold and silver are delivered to FN under the contract.
For each ounce of gold and silver delivered, FN makes payments equal to the lesser of the prevailing market prices
and approximately $433/oz of gold and $4.32/oz of silver (2024 - $429/oz of gold and $4.28/oz of silver), subject to
a 1% annual inflationary adjustment. In 2025, approximately 51,000 oz of gold and 1,101,000 oz of silver ( 2024 -
approximately 59,000 oz of gold and 1,225,000 oz of silver) were subject to the terms of the streaming agreement.
As at December 31, 2025, approximately 654,000 oz of gold and 11,092,000 oz of silver have cumulatively been
subject to the terms of the streaming agreement (2024 - 603,000 oz of gold and 9,991,000 oz of silver).
The deferred revenue balance as at December 31, 2025 at Candelaria is $330.2 million (December 31, 2024 -
$368.0 million).
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 33 -
===== SIDA 123 =====
b) Chapada mine
The Company assumed the following streaming agreements with Sandstorm Gold Ltd., now International Royalty
Corporation ("IRC"), a subsidiary of Royal Gold, Inc., and Altius Minerals Corporation (“Altius”) when the Chapada
mine was acquired.
IRC is entitled to purchase the lesser of 3.9 million pounds (“Mlbs”) or 4.2% of the payable copper produced
annually from Chapada at 30% of the market price. The percentage of payable copper is subject to two reduction
thresholds. Once an aggregate of 39 Mlbs has been delivered, the percentage of payable copper reduces to 3.0%.
Upon delivery of 50 Mlbs of copper in aggregate, the percentage of payable copper reduces to 1.5% for the
remaining life of mine. In 2025, approximately 4.2 Mlbs (2024 - 3.6 Mlbs) were delivered under this agreement. As
at December 31, 2025, approximately 37.4 Mlbs (2024 - 33.2 Mlbs) have cumulatively been delivered under this
agreement.
Altius is entitled to purchase 3.7% of the payable copper produced from Chapada at 30% of the market price. The
percentage of payable copper is subject to two reduction thresholds. In the event of a specified expansion at
Chapada, the percentage of payable copper reduces to 2.65%. Also, upon delivery of 75 Mlbs of copper in
aggregate, the percentage of payable copper reduces to 1.5% for the remaining life of mine. In 2025,
approximately 3.5 Mlbs (2024 - 3.3 Mlbs) were delivered under this agreement. As at December 31, 2025,
approximately 36.8 Mlbs (2024 - 33.3 Mlbs) have cumulatively been delivered under this agreement.
The deferred revenue balance as at December 31, 2025 at Chapada is $130.4 million (December 31, 2024 - $139.7
million).
15. RECLAMATION AND OTHER CLOSURE PROVISIONS
Reclamation and other closure provisions relating to the Company's mining operations are as follows:
Reclamation
provisions
Other closure
provisions Total
Balance, December 31, 2023 $ 497.2 $ 47.0 $ 544.2
Accretion 25.5 — 25.5
Changes in estimate (31.3) 6.7 (24.6)
Changes in discount rate (34.1) — (34.1)
Payments (11.7) (6.0) (17.7)
Reclassification to liabilities held for sale (Note 3) (125.5) (8.6) (134.1)
Effects of foreign exchange (9.7) (5.3) (15.0)
Balance, December 31, 2024 310.4 33.8 344.2
Accretion 19.4 — 19.4
Changes in estimate (5.6) 5.9 0.3
Changes in discount rate 4.9 — 4.9
Payments (7.1) (3.3) (10.4)
Reclassification to liabilities held for sale (Note 3) (73.8) — (73.8)
Effects of foreign exchange — 3.6 3.6
Balance, December 31, 2025 248.2 40.0 288.2
Less: current portion 6.4 5.7 12.1
Long-term portion $ 241.8 $ 34.3 $ 276.1
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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===== SIDA 124 =====
The Company expects these liabilities to be settled between 2026 and 2111. The reclamation provisions are
discounted using current market pre-tax discount rates which range fro m 3.5% to 14.5% (December 31, 2025 - 4.3% to
14.4%).
The schedule of undiscounted reclamation and other closure payments is as follows:
Less than one year $ 15.7
One to five years 100.7
More than five years 678.1
Total undiscounted obligations as at December 31, 2025 $ 794.5
Related to continuing operations $ 715.1
Related to discontinued operations $ 79.4
16. DEFERRED CONSIDERATION AND OTHER LONG-TERM LIABILITIES
Deferred consideration and other long-term liabilities are comprised of the following:
December 31, 2025 December 31, 2024
Deferred consideration, non-current portion $ 99.3 $ 102.8
Other 19.6 26.8
$ 118.9 $ 129.6
Deferred consideration represents the non-current portion of the remaining cash consideration for the acquisition of
the Caserones mine. The remaining deferred consideration is to be paid in three annual installments of $10.0 million
and $100 million to be paid in July 2029.
17. SHARE CAPITAL
(a) Authorized and issued shares
Authorized share capital consists of an unlimited number of voting common shares with no par value. As at
December 31, 2025, there were 854,347,591 fully paid voting common shares issued (2024 - 774,102,971 shares).
(b) Share units
The Company has a share unit (“SU”) plan which provides for share unit awards to be granted by the Board of
Directors to certain employees of the Company. The maximum number of SUs that are issuable under the SU plan
is 14,000,000. A SU is a unit representing the right to receive one common share (subject to adjustments) issued
from treasury.
The number and terms of SUs awarded will be determined by the Board of Directors based on the closing market
price on the TSX of the Company’s common shares on the date of the grant.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 35 -
===== SIDA 125 =====
i) Time-vesting SUs
During 2025, the Company granted 456,015 time-vesting SUs to employees and officers that expire in 2028.
These SUs vest three years from the grant date with the number of SUs being fixed, and with no vesting
conditions other than service. The fair value of the time-vesting SUs are based on the market value of the
shares on the date of the grant and an estimated forfeiture rate of approximately 11% (2024 - 11%). The
weighted average fair value per time-vesting SU granted during 2025 was C$12.03 (2024 - C$10.71). The
Company incurred share-based compensation related expenditures of $3.0 million for 2025 (2024 - $2.9
million) with a corresponding credit to contributed surplus related to time-vesting SUs. As at December 31,
2025, there was $3.2 million (2024 - $4.3 million) of unamortized stock-based compensation expense
related to time-vesting SUs.
ii) Performance-vesting SUs
During 2025, the Company granted 434,167 performance-vesting SUs to officers that expire in 2028. These
SUs vest three years from the grant date with the number of SUs being variable, which can range from zero
to 868,334 contingent upon achieving predetermined performance criteria related to the Company's share
price over the three-year period. The fair value of the performance-vesting SUs are based on a Monte Carlo
model and an estimated forfeiture rate of approximately 11% (2024 - 11%). The weighted average fair value
per performance-vesting SU granted during 2025 was C$11.74 (2024 - C$10.71). The Company incurred
share-based compensation related expenditures of $2.6 million for 2025 (2024 - $2.0 million) with a
corresponding credit to contributed surplus related to performance-vesting SUs. As at December 31, 2025,
there was $2.8 million (2024 - $3.2 million) of unamortized stock-based compensation expense related to
performance-vesting SUs.
During 2025, 327,364 common shares (2024 - 318,679) were issued as a result of SUs being vested.
(c) Stock options
The Company’s Stock Option Plan provides for stock option awards to be granted by the Board of Directors to
certain employees of the Company. The term of any stock options granted under the Stock Option Plan may not
exceed seven years from the date of grant. The maximum number of stock options that are issuable under the
Stock Option Plan is 42,000,000. The vesting requirements are established by the Board of Directors.
The Company uses the fair value method of accounting for the recording of stock options. Under this method, the
Company incurred share-based compensation related expenditures of $5.5 million for 2025 (2024 - $1.4 million)
with a corresponding credit to contributed surplus.
During 2025, the Company granted 1,808,370 stock options to employees and officers that expire in 2032. The
stock options vest over three years from the grant date. The Black-Scholes option pricing model used to
determine the fair value of the stock options at the date of the grant assumed a dividend yield of 3%, risk-free
interest rate of 2.29% to 3.70% (2024 - 2.29% to 3.70%), expected life of 3.3 years (2024 - 4.7 years) and expected
price volatility of 45% (2024 - 46% to 48%). Volatility is determined using the historical daily volatility over the
expected life of the options. A forfeiture rate of approximately 11% was applied (2024 - 11%). The weighted
average fair value per stock option granted during 2025 was C$3.39 (2024 - C$2.24). As at December 31, 2025,
there was $2.3 million of unamortized stock-based compensation expense ( 2024 - $0.5 million) related to stock
options.
During 2025, 1,257,659 and 102,617 common shares were issued as a result of stock options and replacement
options, respectively, being exercised (2024 - 2,822,650 and 109,077).
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 36 -
===== SIDA 126 =====
The continuity of share-based payments outstanding is as follows:
Number of SUs
Number of
Replacement
options1
Weighted
average
exercise price
(C$)
Number of
options
Weighted
average
exercise price
(C$)
Outstanding, December 31, 2023 1,820,941 280,854 4.91 5,508,802 10.29
Granted 1,041,450 — — 1,498,160 10.71
Forfeited (97,683) (10,189) 5.86 (422,539) 12.51
Exercised (318,679) (109,077) 4.84 (2,822,650) 9.95
Outstanding, December 31, 2024 2,446,029 161,588 4.90 3,761,773 10.46
Granted 890,182 — — 1,808,370 12.91
Forfeited (208,191) (3,631) 6.46 (570,638) 13.23
Exercised (327,364) (102,617) 4.84 (1,257,659) 11.51
Outstanding, December 31, 2025 2,800,656 55,340 4.91 3,741,846 10.87
1 During 2022, the Company issued 2,513,866 replacement options upon completion of the Josemaria Resources Inc.
acquisition.
The following table summarizes options outstanding as at December 31, 2025:
Outstanding Options Exercisable Options
Range of exercise prices (C$)
Number of
Options
Outstanding1
Weighted
Average
Remaining
Contractual
Life (Years)
Weighted
Average
Exercise
Price (C$)
Number of
Options
Exercisable1
Weighted
Average
Remaining
Contractual
Life (Years)
Weighted
Average
Exercise
Price (C$)
4 to 6.99 55,340 0.2 5.05 55,340 0.2 5.05
7 to 9.99 748,201 3.8 7.99 318,803 3.9 7.99
10 to 12.99 2,864,375 5.5 11.37 417,179 4.1 11.11
13 to 16.99 129,270 4.3 15.78 67,500 2.1 14.90
3,797,186 5.0 10.76 858,822 3.6 9.86
1 Includes Replacement options
(d) Deferred share units
The Company has a DSU plan under which DSUs are granted by the Board of Directors quarterly to eligible non-
employee Directors. During 2025, 41,772 (2024 - 33,076) DSUs were granted and 5,618 (2024 - nil) were
exercised under the plan. As at December 31, 2025, there were 59,775 DSUs outstanding (2024 - 23,621).
(e) Basic and diluted weighted average number of shares outstanding
December 31, 2025 December 31, 2024
Basic weighted average number of shares outstanding 855,632,088 774,825,230
Effect of dilutive securities 3,104,442 2,743,811
Diluted weighted average number of shares outstanding 858,736,530 777,569,041
Antidilutive securities 35,319 705,931
The effect of dilutive securities relates to in-the-money outstanding stock options and SUs.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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===== SIDA 127 =====
(f) Dividends
The Company declared dividends in the amount of $105.6 million (2024 - $203.0 million), or C$0.17 per share, for
the year ended December 31, 2025 (2024 - C$0.36 per share).
(g) Normal course issuer bid
In December 2024, the Company obtained approval from the TSX for the renewal of its normal course issuer bid
("NCIB") to purchase up to 57,597,388 common shares between December 16, 2024 and December 15, 2025.
Daily purchases (other than pursuant to a block purchase exemption) on the TSX under the NCIB are limited to a
maximum of 560,989 common shares. In connection with the NCIB renewal, the Company entered into an
automatic share purchase plan ("ASPP") with its broker to allow for the purchase of common shares at times
when the Company ordinarily would not be active in the market due to trading blackout periods, insider trading
rules or otherwise.
In December 202 5, the Company obtained approval from the TSX for the renewal of its NCIB to purchase up to
67,723,868 common shares between December 16, 2025 and December 15, 2026. Daily purchases (other than
pursuant to a block purchase exemption) on the TSX under the NCIB are limited to a maximum of 624,337
common shares. In connection with the NCIB renewal, the Company entered into an ASPP with its broker under
the same terms as the ASPP entered in December 2024.
During the year ended December 31, 2025 , 15,088,180 shares ( 2024 - 2,815,200 shares) were purchased under
the NCIB at an average price of C$14.05 per share ( 2024 - C$12.33 per share) for total consideration of $ 150.0
million (2024 - $24.4 million). All of the common shares purchased were cancelled in 2025 and 2024. As at
December 31, 2024, the Company recorded an accrual of $3.7 million in trade and other payables due to the
timing of settlement of the repurchase of 429,800 shares on the last trading day of the year which were settled
during January 2025.
18. NON-CONTROLLING INTERESTS AND JOINT OPERATIONS
a) Non-controlling interests
Set out below is summarized financial information for each subsidiary with non-controlling interest ("NCI") that is
material to the group. As part of its Candelaria segment, the Company owns 80% of the Candelaria mine and
Compañia Contractual Minera Ojos del Salado S.A.’s ("Ojos") copper mining operations and supporting
infrastructure in Chile (together the "Candelaria complex").
On July 2, 2024, the Company exercised its option to acquire an additional 19% interest in the issued and
outstanding equity of SCM Minera Lumina Copper Chile ("Lumina Copper"), bringing the Company's ownership in
Caserones from 51% to 70% and reducing the NCI to 30%.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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===== SIDA 128 =====
The continuity of the Company's non-wholly owned subsidiaries with material NCI is as follows:
Candelaria complex Caserones mine Total
NCI in subsidiary at December 31, 2025 20% 30%1
As at December 31, 2023 $ 594.8 $ 862.0 $ 1,456.8
Acquisition of additional interest in Caserones — (353.5) (353.5)
Share of net comprehensive income 71.4 70.9 142.3
Distributions (86.0) (66.0) (152.0)
As at December 31, 2024 580.2 513.4 1,093.6
Share of net comprehensive income 96.2 274.5 370.7
Distributions (60.0) (78.0) (138.0)
As at December 31, 2025 $ 616.4 $ 709.9 $ 1,326.3
1 Prior to July 2, 2024, NCI in Caserones was 49%.
Summarized financial information for the Company's non-wholly owned subsidiaries on a 100% basis, before inter-
company eliminations is as follows:
Summarized Balance Sheets
Candelaria complex Caserones mine
As at Dec. 31, 2025 As at Dec. 31, 2024 As at Dec. 31, 2025 As at Dec. 31, 2024
Total current assets $ 824.4 $ 627.0 $ 760.7 $ 600.3
Total non-current assets $ 3,002.0 $ 3,070.3 $ 2,043.8 $ 1,563.1
Total current liabilities $ 406.2 $ 452.6 $ 326.4 $ 298.4
Total non-current liabilities $ 643.0 $ 611.1 $ 218.0 $ 231.9
Summarized Statements of Earnings and Comprehensive Income
Candelaria complex Caserones mine
For the year ended
December 31, 2025 2024 2025 2024
Total revenue $ 2,081.4 $ 1,858.9 $ 1,533.3 $ 1,147.7
Net earnings $ 479.2 $ 355.2 $ 915.2 $ 171.9
Net comprehensive income $ 479.4 $ 355.3 $ 915.2 $ 171.9
Summarized Statement of Cash Flows
Candelaria complex Caserones mine
For the year ended
December 31, 2025 2024 2025 2024
Cash provided by operating
activities $ 360.5 $ 745.2 $ 643.8 $ 438.1
Cash used in investing activities (239.8) (269.0) (152.8) (136.7)
Cash used in financing activities (120.6) (377.0) (141.8) (313.5)
Increase (decrease) in cash and
cash equivalents during the period $ 0.1 $ 99.2 $ 349.2 $ (12.1)
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 39 -
===== SIDA 129 =====
b) Joint operations
Set out below is summarized financial information for the Vicuña joint operation on a 50% basis:
Summarized Balance Sheets (50% share)
December 31, 2025 January 15, 2025
Total current assets $ 30.6 $ 25.7
Total non-current assets $ 2,327.0 $ 2,148.2
Total current liabilities $ 43.5 $ 20.7
Total non-current liabilities $ 7.6 $ 3.1
Summarized Statements of Loss and Comprehensive Loss (50% share)
20251
Net loss $ (3.9)
Net comprehensive loss $ (3.9)
Summarized Statement of Cash Flows (50% share)
20251
Cash provided by operating activities $ 0.3
Cash used in investing activities (164.2)
Cash used in financing activities (1.2)
Decrease in cash and cash equivalents during the period $ (165.1)
1 Includes financial results between the date of formation, January 15, 2025 and December 31, 2025.
19. REVENUE
The Company's analysis of revenue from contracts with customers, segmented by product, is as follows:
2025 2024
Revenue from contracts with customers:
Copper $ 3,161.7 $ 2,754.3
Gold 407.1 295.3
Molybdenum 90.2 136.8
Silver 64.4 47.4
Other 18.0 28.5
3,741.4 3,262.3
Provisional pricing adjustments on current year concentrate sales 268.8 (9.1)
Provisional pricing adjustments on prior year concentrate sales 43.0 16.9
Revenue $ 4,053.2 $ 3,270.1
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 40 -
===== SIDA 130 =====
The Company's geographical analysis of revenue from contracts with customers, segmented based on the destination
of product, is as follows:
2025 2024
Revenue from contracts with customers:
Japan $ 1,222.0 $ 1,122.7
China 1,143.4 1,066.2
Spain 679.7 557.0
USA 265.5 —
Germany 184.7 129.8
Finland 125.2 100.0
Chile — 169.4
Other 120.9 117.2
3,741.4 3,262.3
Provisional pricing adjustments on current year concentrate sales 268.8 (9.1)
Provisional pricing adjustments on prior year concentrate sales 43.0 16.9
Revenue $ 4,053.2 $ 3,270.1
Revenue from contracts with customers related to continuing operations for the year ended December 31, 2025
includes an increase of $5.0 million (2024 - increase of $4.2 million) due to variable consideration adjustments.
Provisional pricing adjustments on prior year concentrate sales include adjustments on pricing from sales during 2024.
During the three months ended December 31, 2025, provisional pricing adjustments on current and prior period
concentrate sales were $90.2 million positive and $82.5 million positive, respectively.
20. PRODUCTION COSTS
The Company's production costs are comprised of the following:
2025 2024
Direct mine and mill cost $ 1,780.7 $ 1,639.0
Transportation 95.3 91.3
Royalties 72.1 56.4
Total production costs $ 1,948.1 $ 1,786.7
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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===== SIDA 131 =====
21. GENERAL AND ADMINISTRATIVE EXPENSES
The Company's general and administrative expenses are comprised of the following:
2025 2024
Salaries and benefits $ 26.7 $ 23.9
Office related expenses 11.5 14.0
Consulting 11.0 10.6
Stock-based compensation 12.4 6.6
Insurance 0.9 1.3
Other 1.4 1.9
Total general and administrative expenses $ 63.9 $ 58.3
22. EXPLORATION AND BUSINESS DEVELOPMENT
The Company's exploration and business development costs are comprised of the following:
2025 2024
General exploration $ 38.1 $ 35.5
Project development 4.6 5.3
Corporate development 0.8 1.3
Total exploration and business development $ 43.5 $ 42.1
23. FINANCE INCOME AND COSTS
The Company's finance income and costs are comprised of the following:
2025 2024
Interest income $ 14.6 $ 16.1
Interest expense and bank fees (47.0) (100.9)
Accretion expense on reclamation provisions (15.5) (18.7)
Lease liability interest (21.7) (22.7)
Deferred revenue finance costs (14.8) (4.9)
Other (6.1) (6.6)
Total finance costs, net $ (90.5) $ (137.7)
Finance income $ 14.6 $ 16.1
Finance costs (105.1) (153.8)
Total finance costs, net $ (90.5) $ (137.7)
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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===== SIDA 132 =====
24. OTHER INCOME AND EXPENSE
The Company's other income and expense are comprised of the following:
2025 2024
Realized losses on derivative contracts (Note 26) $ (37.2) $ (2.1)
Unrealized gains (losses) on derivative contracts (Note 26) 29.0 (85.2)
Loss on disposal of assets (20.9) (8.3)
Foreign exchange (loss) gain (a) (15.5) 32.8
Revaluation of marketable securities 14.9 7.4
Ojos del Salado sinkhole (expenses) recovery (b) (10.9) 9.5
Foreign exchange and trading gains on debt and equity investments (c) 3.4 28.3
Gain on partial disposal and contribution to Vicuña 3.0 —
Revaluation of Caserones purchase option (d) — 11.7
Write-down of assets — (22.1)
Other (expense) income (18.2) 6.1
Total other expense, net $ (52.4) $ (21.9)
a) Foreign exchange (loss) gain during the year ended December 31, 2025 and 2024, primarily relate to the foreign
exchange revaluation of trade payables and lease liabilities held in foreign currencies.
b) Ojos del Salado sinkhole (expenses) recovery during the year ended December 31, 2025 and 2024 include
adjustments to expenses previously accrued, as a result of updated information related to the sinkhole near the
Company's Ojos del Salado operations.
c) Foreign exchange and trading gains on debt and equity investments include the changes in fair value of debt and
equity instruments supporting capital funding for the Josemaria project prior to the formation of Vicuña.
d) The Caserones purchase option was revalued at each reporting period up to the date of exercise, with changes in
fair value recorded in Other Income and Expense. The purchase option was exercised on July 2, 2024.
25. CURRENT AND DEFERRED INCOME TAXES
2025 2024
Current Tax Expense:
Current tax on net taxable earnings $ 304.4 $ 290.4
Adjustments in respect of prior years (4.7) 4.5
Current tax expense 299.7 294.9
Deferred tax recovery (569.7) (36.1)
Total tax (recovery) expense $ (270.0) $ 258.8
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 43 -
===== SIDA 133 =====
The tax on the Company's earnings before income tax differs from the amount that would arise using the weighted
average rate applicable to earnings of the consolidated entities as follows:
2025 2024
Earnings excluding income taxes $ 1,147.7 $ 526.5
Combined basic federal and provincial rates 27.0 % 27.0 %
Income taxes based on Canadian statutory income tax rates $ 309.9 $ 142.2
Effect of different tax rates in foreign jurisdictions 2.9 26.9
Tax calculated at domestic tax rates applicable to earnings in the respective
countries 312.8 169.1
Tax effects of:
Mining Royalty Tax 71.7 72.3
Non-deductible and non-taxable items (a) 1.9 17.0
Changes in estimates on Chilean royalty tax rate (b) (37.8) 15.0
Adjustments in respect of prior years 5.2 (2.4)
Unrecognized deferred tax assets (c) 42.4 44.8
Foreign exchange impact on temporary differences and other
translation amounts (d) (34.2) 12.7
Recognition of previously unrecognized temporary differences (e) (650.9) (71.7)
Outside basis difference on investment in subsidiaries 10.9 —
Net withholding tax on accrued interest and dividends received 6.5 5.5
Other 1.5 (3.5)
Total tax (recovery) expense $ (270.0) $ 258.8
The Company operates in tax jurisdictions that have tax rates (including mining royalty tax) ranging from 15.0% to
37.7%.
a) Includes non-deductible environmental expenses incurred at Caserones of $51.6 million (2024 - $47.6 million),
partially offset by tax deductible interest on equity payments in Chapada of $30.9 million (2024 - $6.4 million)
that are not reflected in the Company's earnings.
b) The mining royalty law in Chile, which includes a 1% ad-valorem tax on sales applies to Candelaria and will
become applicable for Caserones in 2028 when its tax stability agreement expires. In addition to the ad-valorem
tax, both operations in Chile are expected to pay mining tax of approximately 8% - 15% on net mining income.
The maximum effective tax rate for the combined mining royalty, corporate income tax and final taxes in Chile is
set at 46.5%.
Due to changes in future production and mining operating margin estimates, the Company recognized $31.2
million of deferred tax recovery at Candelaria (2024 - $23.3 million deferred tax expense) and $6.6 million of
deferred tax recovery at Caserones (2024 - $8.3 million).
c) Deferred tax expense associated with temporary differences for which no deferred tax assets were recognized
includes $10.6 million at Candelaria (2024 - $29.7 million), $3.5 million in Canada (2024 - $14.1 million), $11.5
million in Bermuda (2024 - $nil) and $7.8 million in Switzerland (2024 - $nil).
d) The revaluation of non-monetary assets in Brazil from the local currency BRL to USD resulted in a deferred tax
recovery of $34.2 million at Chapada (2024 - $51.3 million deferred tax expense).
e) Includes the recognition of $665.0 million of previously unrecognized deferred tax assets at Caserones (2024 -
$64.8 million), primarily related to tax losses and property plant & equipment.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 44 -
===== SIDA 134 =====
Global Minimum Top-up Tax - Pillar Two
The Company is within the scope of OECD Pillar Two model rules. Among the jurisdictions where the Company
operates, Pillar Two legislation has been enacted in Sweden, Canada, Brazil and the Netherlands.
The Company applies the exception to recognizing and disclosing information about deferred tax assets and liabilities
as provided by the amendments to IAS 12 in May 2023. The Company also accounts for any top up taxes as a current
tax when it is incurred. The Company has performed an analysis of the Global Minimum Tax rules including country-by-
country reporting (CbCR) safe harbour test, and concluded that no top-up tax was required in 2025.
Deferred tax assets (liabilities)
December 31, 2025 December 31, 2024
Deferred tax assets $ 719.6 $ 191.3
Deferred tax liabilities (611.6) (643.8)
Deferred tax assets (liabilities) $ 108.0 $ (452.5)
The movement in deferred income tax assets and liabilities during the year, without taking into consideration the
offsetting of balances within the same jurisdiction, is as follows:
As at
December 31,
2024
(Expensed)/
recovered
Discontinued
Operations
Effects of
foreign
exchange
As at
December 31,
2025
Deferred tax assets:
Loss carryforwards $ 153.3 $ 516.5 $ (6.2) $ — $ 663.6
Reclamation & other
closure provisions 48.8 (7.3) — 2.3 43.8
Leases 25.6 1.2 (2.8) — 24.0
Sinkhole provision 6.6 1.9 — — 8.5
Provisional pricing provision &
other fair value gain/losses 18.4 (67.9) — (0.1) (49.6)
Deferred tax liabilities:
Mineral properties, plant &
equipment (444.8) 39.5 9.0 (12.1) (408.4)
Right-of-use assets (32.5) 5.6 3.1 (0.1) (23.9)
Provisions (65.9) 19.0 — 1.1 (45.8)
Mining royalty taxes (33.2) 8.0 — — (25.2)
Long-term inventory (119.8) 46.0 (0.6) (4.0) (78.4)
Foreign currency contracts (7.6) 4.4 — — (3.2)
Other (1.4) 2.8 — 1.2 2.6
$ (452.5) $ 569.7 $ 2.5 $ (11.7) $ 108.0
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 45 -
===== SIDA 135 =====
As at
December 31,
2023
(Expensed)/
recovered
Discontinued
Operations
Balance Sheet/
Equity
adjustment
Effects of
foreign
exchange
As at
December 31,
2024
Deferred tax assets:
Loss carryforwards $ 58.1 $ 96.2 $ — $ — $ (1.0) $ 153.3
Reclamation & other
closure provisions 62.0 5.7 (15.3) — (3.6) 48.8
Deferred revenue 12.8 — (12.8) — — —
Future tax credits 4.3 — (4.3) — — —
Leases 5.9 20.0 (0.3) — — 25.6
Sinkhole provision 6.6 — — — — 6.6
Other 4.9 22.0 7.6 — 1.6 36.1
Deferred tax liabilities:
Mineral properties,
plant & equipment (496.1) (10.4) 44.6 — 17.1 (444.8)
Right-of-use assets (31.3) (1.5) 0.4 — (0.1) (32.5)
Provisions (88.3) (5.5) 30.7 — (2.2) (65.3)
Mining royalty taxes (9.6) (23.6) — — — (33.2)
Long-term inventory (88.2) (34.5) 9.5 — (6.6) (119.8)
Fair value gains (12.8) 1.6 — — — (11.2)
Foreign currency
contracts (9.2) — — — (9.2)
Pension provision (0.6) (4.8) (1.7) 0.3 (0.1) (6.9)
$ (581.5) $ 65.2 $ 58.4 $ 0.3 $ 5.1 $ (452.5)
Deferred tax assets are recognized for tax loss carry-forwards and other temporary differences to the extent that the
realization of the related tax benefit through future taxable profits is probable. The Company determined that it is
probable that sufficient future taxable profits will be available to allow the benefit of the deferred tax assets to be
utilized.
The Company did not recognize deferred tax assets of $486.0 million (2024 - $1,058.7 million) in respect of losses
amounting to $1,815.6 million (2024 - $3,924.3 million) that can be applied against future taxable income.
Caserones has approximately $3.9 billion in tax losses which can be applied to future taxable income over the mine
life. A deferred tax asset of $665.4 million has been recognized at Caserones in respect of these losses and deductible
temporary differences.
Sensitivity analysis was performed on the underlying forecast taxable profits model for Caserones. A 5% reduction to
forecast metal prices would decrease the deferred tax asset by approximately $134.4 million and a 5% weakening of
USD:CLP foreign exchange rate would increase the deferred tax asset by $40.1 million.
Deferred tax liabilities have not been recognized on $1.2 billion of taxable temporary differences from unremitted
earnings of foreign subsidiaries and joint arrangements, because the Company controls when these differences
reverse and does not expect them to reverse in the foreseeable future.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 46 -
===== SIDA 136 =====
26. FINANCIAL INSTRUMENTS
Derivative instruments
From time to time, the Company uses derivative contracts as part of its risk management strategy to mitigate exposure
to foreign currencies and commodities. The Company maintains foreign currency forward and option contracts on
CAD, BRL, and CLP foreign currencies intended to limit the foreign exchange exposure of its forecasted foreign
currency denominated after-tax attributable operating and capital expenditures. Additional commodity forward swap
and option contracts are used from time to time to limit exposure to changes in the price of diesel fuel purchases at
Candelaria, and to limit exposure to changes in the price of gold.
The foreign exchange and commodities contracts have not been designated as hedges for purposes of hedge
accounting and are measured at fair value with changes in fair value recognized in the consolidated statements of
earnings.
The following tables outline the foreign currency and commodity derivative notional contract positions and their
expiry dates:
Expired in Expiring throughout:
Foreign currency forward contracts 2025 2026
USD/CAD forwards
Average contract price 1.40 —
Position (USD millions) 499 —
USD/SEK forwards
Average contract price 10.83 —
Position (SEK millions) 758 —
Expired in Expiring throughout:
Foreign currency option contracts 2025 2026
USD/BRL collars
Average contract price 5.06/6.04 5.07/6.04
Position (USD millions) 185 114
USD/CLP collars
Average contract price 872/1,032 904/1,060
Position (USD millions) 511 342
Expired in Expiring throughout:
Commodity hedge contracts 2025 2026
Gold collars
Average contract price ($/oz) 2,500/3,125 2,500/3,455
Position (koz) 62 43
Diesel collars
Average contract price ($/L) 0.50/0.65 —
Position (millions of litres) 54 —
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 47 -
===== SIDA 137 =====
The Company’s net unrealized and realized gain/(loss) on foreign currency and commodity derivative contracts are as
follows:
2025 2024
Unrealized gain (loss) on derivative financial instruments:
Foreign currency contracts $ 71.4 (87.7)
Commodity hedge contracts (42.4) 2.5
29.0 (85.2)
Realized (loss) gain on derivative financial instruments:
Foreign currency contracts (13.7) 2.6
Commodity hedge contracts (23.5) (4.6)
(37.2) (2.0)
Total unrealized and realized loss on derivative contracts: $ (8.2) $ (87.2)
A summary of the fair values of unsettled derivative contracts recorded on the consolidated balance sheet is as
follows:
December 31, 2025 December 31, 2024
Foreign currency contracts:
Current asset position $ 9.8 $ —
Current liability position 2.3 39.4
Non-current liability position — 24.5
Commodity contracts:
Current asset position $ — $ 1.0
Non-current asset position — 0.7
Current liability position 40.7 —
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 48 -
===== SIDA 138 =====
Fair values of financial instruments
The Company’s financial assets and financial liabilities have been classified into categories that determine their basis of
measurement. The following table shows the carrying values, fair values and fair value hierarchy of the Company’s
financial instruments as at December 31, 2025 and December 31, 2024:
December 31, 2025 December 31, 2024
Level
Carrying
value Fair value
Carrying
value Fair value
Financial assets
Fair value through profit or loss
Restricted funds 1 $ 16.4 $ 16.4 $ 8.6 $ 8.6
Trade receivables (provisional) 2 624.2 624.2 337.1 337.1
Marketable securities 1 30.9 30.9 60.1 60.1
Foreign currency contracts 2 9.8 9.8 — —
Contingent consideration (Note 3) 3 85.7 85.7 — —
Commodity contracts 2 — — 1.6 1.6
$ 767.0 $ 767.0 $ 407.4 $ 407.4
Financial liabilities
Amortized cost
Debt 3 $ 237.1 $ 237.1 $ 1,757.0 $ 1,757.0
Caserones deferred consideration 2 109.3 109.3 112.8 112.8
Fair value through profit or loss
Pricing provisions on concentrate sales 2 $ 2.4 $ 2.4 $ 7.1 $ 7.1
Foreign currency contracts 2 2.3 2.3 63.9 63.9
Commodity contracts 2 40.7 40.7 — —
$ 45.4 $ 45.4 $ 71.0 $ 71.0
Fair values of financial instruments are determined by valuation methods depending on hierarchy levels as defined
below:
Level 1 – Quoted market price in active markets for identical assets or liabilities.
Level 2 – Inputs other than quoted market prices included within Level 1 that are observable for the assets or
liabilities, either directly (i.e. observed prices) or indirectly (i.e. derived from prices).
Level 3 – Inputs for the assets or liabilities are not based on observable market data.
The Company estimates fair values based on the following methods of valuation and assumptions:
Marketable securities/debt and equity investments/restricted funds – The fair value of investments in shares and
bonds is determined based on the quoted market price.
Trade receivables/pricing provisions on concentrate sales – The fair value of trade receivables that contain
provisional pricing sales arrangements are valued using quoted forward market prices. The Company recognized
positive pricing adjustments of $311.8 million in revenue during the year ended December 31, 2025 (December
31, 2024 - $7.8 million positive pricing adjustments).
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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===== SIDA 139 =====
Foreign currency and commodity contracts – The fair value of these derivatives are determined by the
counterparties to the contracts and are assessed by Management using pricing models based on active market
prices.
Contingent consideration – The fair value of the contingent consideration was estimated by calculating the
present value of the future expected cash flows from the contingent copper and zinc payments related to the
Neves-Corvo mine and Zinkgruvan mine based on probability-weighted scenarios of future copper and zinc
prices.
Caserones deferred consideration – The fair value of the Caserones deferred consideration has been discounted
at the estimated credit adjusted risk free rate applicable to future payments.
Debt – The fair values approximate carrying values as the interest rates are comparable to current market rates.
The carrying values of certain financial instruments maturing in the short-term approximate their fair values.
These financial instruments include cash and cash equivalents, trade and other receivables other than those
provisionally priced, and trade and other payables other than those provisionally priced, which are classified as
amortized cost.
27. COMMITMENTS AND CONTINGENCIES
a) The Company has capital commitments of $327.0 million on various initiatives of which $323.7 million and $3.3
million relate to continuing and discontinued operations, respectively. Capital commitments of $197.0 million are
expected to be paid during 2026 of which $193.7 million is related to continuing operations.
b) T he Company has been provided with an indemnity for any tax liabilities that may arise for periods prior to the
date of the Chapada acquisition in July 2019. For identified tax claims existing at the date of acquisition, the
Company has agreed to be liable for up to the first $21.0 million (BRL 101.5 million). While the outcome of these
tax claims is uncertain, no material liabilities have been accrued as the Company believes material payment is not
likely due to the nature of the tax claims.
c) In respect of the 2017 taxation year, the Canada Revenue Agency ("CRA") issued a reassessment denying the
Company’s 2007 election to increase the tax cost of its investment in a subsidiary. The reassessment proposes an
increase in taxable income of approximately $456 million, which would result in additional income taxes payable
of approximately $114.1 million and interest of approximately $46.2 million. The Company filed a Notice of
Objection on January 28, 2026 and will vigorously and expeditiously defend its tax filing position through CRA's
Appeals Division and, if required, court proceedings. No provision has been recognized as the Company believes
its filing position is in compliance with Canadian tax law.
d) The following summarizes total tax exposure under two contradictory assessments received from the Chilean
Internal Revenue Service ("IRS"). Given that the assessments relate to the same issue, the Company’s potential
exposure is expected to be limited to one of the below scenarios:
i) For taxation years 2014 through 2019, the IRS issued tax assessments denying tax deductions related to
interest expenses arising from an intercompany debt. The total of all assessments amounts to $145.6 million
in taxes plus estimated interest and penalties of $131.7 million. All tax refunds arising from the tax
deductions related to the intercompany debt have been received up to December 2025.
ii) On the same intercompany debt for taxation years 2016 through 2019, the Company has also received
assessments from the IRS seeking additional withholding taxes, including interest and penalties, on interest
payments made. The total of all assessments amounts to $114.2 million in taxes plus estimated interest and
penalties of $142.2 million.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 50 -
===== SIDA 140 =====
In November 2025, the Company received final rulings from the Second Tax and Customs Court of the
Metropolitan Region of Santiago in respect of the assessments summarized above. The rulings were all in favour
of the Company. Subsequently, in December 2025, the Chilean IRS filed an appeal. The Company maintains its
position that the assessments are inconsistent with Chilean tax law and, therefore, without merit. The Company
does not expect further assessments to be issued related to this tax matter, as the intercompany loan was
amended in 2020 with an interest rate accepted by the IRS.
e) The Company may be involved in legal proceedings arising in the ordinary course of business, including the
actions described below. The potential amount of the liability with respect to such legal proceedings is not
expected to materially affect the Company’s financial position. The Company believes the claims to be without
merit and the loss, if any, cannot be determined at this time for all contingencies. The Company has accordingly
not accrued any amounts related to the litigations below (unless otherwise noted). The Company intends to
vigorously defend these claims.
Two proposed class actions were filed against the Company and certain officers and directors. The first, in the
province of Ontario, on December 7, 2017 (Markowich v. Lundin Mining Corporation et al) and a second
overlapping action in the province of Québec on January 18, 2018 (Prévreau v. Lundin Mining Corporation et al).
Both proposed class actions seek damages of $132.3 million (C$175.0 million) and punitive damages of $7.6
million (C$10.0 million) and assert various statutory and other claims related to, among other things, alleged
misrepresentations and/or failure to make timely disclosure of material information about the Company’s
business and operations and, in particular, the operations of the Candelaria mine and a rock slide at the
Candelaria mine on October 31, 2017. The proposed Ontario class action asserts claims on behalf of a putative
class comprising persons who acquired securities of the Company between October 25, 2017, and November 29,
2017, whereas the proposed Québec class action asserts claims on behalf of only such persons who are resident
or domiciled in Québec. In June 2018, counsel to the plaintiffs in the Québec action agreed to a stay (i.e.,
indefinite cessation) of that proceeding in light of the Ontario action. On August 30, 2018, the Québec Superior
Court, on consent of the parties, stayed the Québec action indefinitely. On September 2, 2020, the plaintiff in the
Ontario action served motion materials for leave and certification with the Ontario Superior Court of Justice. On
January 6, 2022, the Ontario Superior Court of Justice denied the leave application and declined the motion for
certification. On May 24, 2023, the Ontario Court of Appeal granted the plaintiff’s appeal of this decision. In
August 2023, the defendants filed an application for leave to appeal the Ontario Court of Appeal decision to the
Supreme Court of Canada, which leave to appeal was granted on March 25, 2024. On November 28, 2025, the
Supreme Court of Canada upheld the 2023 Ontario Court of Appeal decision allowing the certified class action to
proceed before the Ontario Superior Court of Justice. There has been no decision on the merits of the case, and
the Company intends to vigorously defend the action.
f) Pursuant to the Definitive Agreement (Note 3), the Company provides financial assurances for the reclamation
and closure of Eagle mine.
28. SEGMENTED INFORMATION
The Company is engaged in mining, exploration and development of mineral properties at three operating sites
located in Chile and Brazil, and at Vicuña in Argentina and Chile. Operating segments are reported in a manner
consistent with the internal reporting provided to the executive leadership team who act as the operating decision-
makers. The chief operating decision makers consider the business from a site and project-level perspective. Executive
management are responsible for allocating resources and assessing performance of the operating segments. The
Company has identified four reportable segments which include three operating sites, and the Vicuña Project. The
Vicuña segment is an independently managed joint arrangement and includes the legacy Josemaria segment for
periods up until January 15, 2025 and the Company's 50% share of the Josemaria project and Filo del Sol project after
that date (Note 4). Discontinued operations include results from the Eagle, Neves-Corvo and Zinkgruvan segments
(Note 3).
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
- 51 -
===== SIDA 141 =====
For the year ended December 31, 2025 Candelaria Caserones Chapada Vicuña1 Other Total
Continuing
Operations
Discontinued
Operations
Total
Chile Chile Brazil
Argentina &
Chile
Revenue $ 1,769.0 $ 1,618.9 $ 665.3 $ — $ — $ 4,053.2 $ 409.3 $ 4,462.5
Cost of goods sold
Direct mine and mill costs (738.0) (777.1) (262.7) — (2.9) (1,780.7) (236.8) (2,017.5)
Transportation (30.2) (35.5) (29.6) — — (95.3) (27.2) (122.5)
Royalties (15.7) (41.9) (14.5) — — (72.1) (13.8) (85.9)
Depreciation, depletion and amortization (300.0) (212.2) (106.2) — (0.5) (618.9) (22.3) (641.2)
Inventory write-down — — (88.2) — — (88.2) — (88.2)
Gross profit (loss) 685.1 552.2 164.1 — (3.4) 1,398.0 109.2 1,507.2
General and administrative expenses — — — — (63.9) (63.9) — (63.9)
Exploration and business development (8.4) (21.9) (4.7) (4.2) (4.3) (43.5) (6.9) (50.4)
Finance (costs) income (19.4) (20.1) (23.3) 1.0 (28.7) (90.5) (9.0) (99.5)
Other (expense) income (55.0) (19.0) (9.0) — 30.6 (52.4) 40.1 (12.3)
Gain on disposal of subsidiaries — — — — — — 106.3 106.3
Asset impairment — — — — — — 22.7 22.7
Income tax (expense) recovery (235.1) 497.8 — (12.2) 19.5 270.0 (26.6) 243.4
Net earnings (loss) $ 367.2 $ 989.0 $ 127.1 $ (15.4) $ (50.2) $ 1,417.7 $ 235.8 $ 1,653.5
Capital expenditures $ 246.0 $ 156.3 $ 99.2 $ 182.8 $ 0.3 $ 684.6 $ 79.2 $ 763.8
Total non-current assets(2) $ 2,997.8 $ 1,336.2 $ 1,240.2 $ 2,392.6 $ 6.0 $ 7,972.8 $ — $ 7,972.8
1 The Vicuña segment includes the legacy Josemaria segment for periods up until January 15, 2025 and the Company's 50% share of the Vicuña Project after that date (Note 4).
2 Non-current assets include long-term inventory, mineral properties, plant and equipment, and goodwill.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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===== SIDA 142 =====
For the year ended December 31, 2024 Candelaria Caserones Chapada Vicuña1 Other Total
Continuing
Operations
Discontinued
Operations
Total
Chile Chile Brazil
Argentina &
Chile
Revenue $ 1,618.9 $ 1,153.6 $ 497.6 $ — $ — $ 3,270.1 $ 847.3 $ 4,117.4
Cost of goods sold
Direct mine and mill costs (679.9) (709.4) (248.5) — (1.2) (1,639.0) (501.1) (2,140.1)
Transportation (31.0) (34.7) (25.6) — — (91.3) (44.7) (136.0)
Royalties (15.7) (32.1) (8.6) — — (56.4) (11.4) (67.8)
Depreciation, depletion and amortization (313.1) (184.1) (76.5) — (0.5) (574.2) (188.9) (763.1)
Reversal of inventory write-down — — 26.6 — — 26.6 — 26.6
Gross profit (loss) 579.2 193.3 165.0 — (1.7) 935.8 101.2 1,037.0
General and administrative expenses — — — — (58.3) (58.3) — (58.3)
Exploration and business development (10.2) (14.8) (5.6) (8.3) (3.2) (42.1) (16.0) (58.1)
Finance (costs) income (26.9) (17.3) (25.7) 21.5 (89.3) (137.7) (13.4) (151.1)
Other (expense) income 14.9 37.6 3.8 7.3 (85.5) (21.9) (11.0) (32.9)
Goodwill and asset impairment (55.9) — (93.5) — — (149.4) (396.1) (545.5)
Partial suspension of underground operations cost — — — — — — (36.1) (36.1)
Income tax (expense) recovery (237.9) (0.9) (62.2) 50.1 (7.9) (258.8) 42.5 (216.3)
Net earnings (loss) $ 263.2 $ 197.9 $ (18.2) $ 70.6 $ (245.9) $ 267.6 $ (328.9) $ (61.3)
Capital expenditures $ 275.7 $ 144.0 $ 107.8 $ 258.2 $ 0.4 $ 786.1 $ 176.2 $ 962.3
Total non-current assets(2) $ 3,063.8 $ 1,374.7 $ 1,290.0 $ 1,408.2 $ 6.6 $ 7,143.3 $ 107.5 $ 7,250.8
1 The Vicuña segment includes the legacy Josemaria segment for periods up until January 15, 2025 and the Company's 50% share of the Vicuña Project after that date (Note 4).
2 Non-current assets include long-term inventory, mineral properties, plant and equipment, and goodwill.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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===== SIDA 143 =====
29. RELATED PARTY TRANSACTIONS
a) Key management personnel - The Company has identified its directors and senior officers as its key management
personnel. Employee benefits for key management personnel are as follows:
2025 2024
Wages, salaries and pension benefits $ 7.8 $ 7.4
Share-based compensation 4.2 2.2
$ 12.0 $ 9.6
b) Other related parties - For the year ended December 31, 2025, the Company incurred $7.3 million (December 31,
2024 – $8.4 million), and no receipt of refunds (December 31, 2024 – $2.1 million) for services provided by
companies owned by members of key management personnel primarily relating to office rental and
transportation. For the year ended December 31, 2025, the Company incurred $2.2 million (December 31, 2024 –
$2.6 million), for services provided by the Lundin Foundation, a not-for-profit organization supporting community
economic development programs and related initiatives in the regions in which the Company operates.
30. MANAGEMENT OF FINANCIAL RISK
The Company’s financial instruments are exposed to certain financial risks, including credit risk, liquidity risk, foreign
exchange risk, commodity price risk and interest rate risk.
(a) Credit risk
The exposure to credit risk arises through the failure of a customer or another third party to meet its contractual
obligations to the Company. The Company believes that its maximum exposure to credit risk as at December 31,
2025 is the carrying value of its trade and other receivables.
Concentrate and cathodes produced at the Company’s mines is sold to a number of strategic customers with
whom the Company has established long-term relationships. Limited amounts of concentrate are occasionally
sold to commodity traders, under prevailing market conditions. Payment terms vary and provisional payments
are normally received when concentrate or copper cathodes have been placed on board a vessel for shipment or
delivered to a location specified by the customer, in accordance with industry practice, with final settlement up
to six months following the date of shipment. Sales to commodity traders are made against secure payment
terms such as a letter of credit, pre-payment or payment against shipping documents. Credit worthiness of
customers is reviewed by the Company on an annual basis or more frequently, if warranted, and those not
meeting certain credit criteria may be asked to make 100% provisional payment up-front or provide an
acceptable payment instrument such as a letter of credit. The failure of any of the Company’s strategic customers
could have a material adverse effect on the Company’s financial position. For the year ended December 31, 2025,
the Company has four customers that individually account for 10% or more of the Company’s total sales. The
Company's largest customers represent approximately 16%, 16%, 14%, and 10% of total sales (2024 - four
customers representing 20%, 14%, 13%, and 11% of total sales).
With respect to credit risk arising from the other financial assets of the Company, which comprise cash and cash
equivalents, restricted funds, marketable securities and equity investments, and foreign currency contracts, the
Company’s exposure to credit risk arises from default of the counterparty, with a maximum exposure equal to
the carrying amount of these instruments. The Company limits material counterparty credit risk on these assets
by dealing with financial institutions with long-term credit ratings with Standard & Poor’s of at least A, or the
equivalent thereof with Moody’s, or those which have been otherwise approved.
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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===== SIDA 144 =====
(b) Liquidity risk
The Company has in place a planning and forecasting process to help determine the funds required to support
the Company’s normal operating requirements on an ongoing basis. The Company ensures that there is sufficient
available capital to meet its short-term business requirements, taking into account its anticipated cash flows from
operations and its holdings of cash and cash equivalents. The Company has a revolving credit facility in place to
assist with meeting its cash flow needs as required (Note 12).
The maturities of the Company’s non-current liabilities are disclosed in Note 12 and Note 27. All current liabilities
are due to be settled within one year.
(c) Foreign exchange risk
The Company operates internationally and is exposed to foreign exchange risk arising from various currencies,
primarily with respect to CLP, BRL, and ARS.
The Company’s risk management strategy is to manage cash flow risk related to foreign denominated cash flows.
The Company is exposed to currency risk related to changes in rates of exchange between foreign denominated
balances and the functional currencies of the Company’s principal operating subsidiaries. The Company’s
revenues are denominated in US dollars, while most of the Company’s operating and capital expenditures are
denominated in the local currencies. The Company may, at its discretion, use forward or derivative contracts to
manage its exposure to foreign currencies, the use of which is subject to appropriate approval procedures. A
significant change in the currency exchange rates between the US dollar and foreign currencies could have a
material effect on the Company’s net earnings and other comprehensive income.
The following table illustrates the estimated impact a 10% US dollar change against the CLP and BRL would have
on pre-tax earnings as a result of translating the Company's foreign denominated financial instruments as at
December 31, 2025 before the impact of derivative contracts:
Currency Change Effect on Pre-Tax Earnings Change Effect on Pre-Tax Earnings
CLP +10% $(23.9) -10% $23.9
BRL +10% $(2.4) -10% $2.4
(d) Commodity price risk
The Company is subject to price risk associated with fluctuations in the market prices for metals. A significant
change in metal prices could have a material effect on the Company’s revenues.
The Company may, at its discretion, use forward or derivative contracts to manage its exposure to changes in
commodity prices, the use of which is subject to appropriate approval procedures. The Company is also subject to
price risk on the final settlement of its provisionally priced trade receivables.
The following table illustrates the sensitivity of the Company’s risk on final settlement of its provisionally priced
trade receivables:
Metal Payable metal Provisional price on
December 31, 2025 Change Effect on Revenue
($millions)
Copper 80,435 t $5.64/lb +/-10% +/-100.0
Gold 32 koz $4,343/oz +/-10% +/-13.8
Molybdenum 619 t $23.30/lb +/-10% +/-3.2
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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===== SIDA 145 =====
(e) Interest rate risk
The Company’s exposure to interest rate risk arises from the interest rate impact on its cash and cash
equivalents, restricted funds, and debt facilities. Certain of the Company's debt facilities include a variable rate
component such as references to Term SOFR on the revolving credit facility, as well as applicable credit spreads
depending on the Company's net leverage ratio.
As at December 31, 2025, holding all other variables constant, a 1% change in the interest rate would result in an
approximate $2.4 million change in interest expense on an annualized basis (2024 - $12.5 million).
31. MANAGEMENT OF CAPITAL RISK
The Company’s objectives when managing its capital include ensuring a sufficient combination of positive operating
cash flows and debt and equity financing in order to meet its ongoing capital development and exploration programs
in a way that maximizes the shareholder return given the assumed risks of its operations while, at the same time,
safeguarding the Company’s ability to continue as a going concern. The Company considers the following items as
capital: excess cash balances, debt, lease liabilities, and share capital.
Through the ongoing management of its capital, the Company will modify the structure of its capital based on
changing economic conditions in the jurisdictions in which it operates. In doing so, the Company may issue new shares
or debt, buy back issued shares, or pay off any outstanding debt. The Company continuously monitors its capital
structure to determine the appropriateness of paying dividends.
Planning, including life-of-mine plans, annual budgeting and controls over major investment decisions are the primary
tools used to manage the Company’s capital. Updates are made as necessary to both capital expenditure and
operational budgets in order to adapt to changes in risk factors of proposed expenditure programs and market
conditions within the mining industry.
32. SUPPLEMENTARY CASH FLOW INFORMATION
2025 2024
Changes in non-cash working capital items consist of:
Trade and income taxes receivable, and other current assets $ (348.9) $ 160.0
Inventories (39.1) (72.0)
Trade and income taxes payable, and other current liabilities (26.0) 133.7
$ (414.0) $ 221.7
Operating activities included the following cash payments:
Income taxes paid $ 396.4 $ 184.4
33. SUBSEQUENT EVENT
On January 9, 2026, the Company completed the sale of Eagle mine to Talon (Note 3).
LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2025 and 2024
(Tabular amounts in millions of US dollars, except for shares and per share amounts)
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