Mr. Jack Lundin reports

LUNDIN MINING FIRST QUARTER 2024 RESULTS

Lundin Mining Corp. has released its first quarter 2024 financial results. Unless otherwise stated, results are presented in U.S. dollars on a 100-per-cent basis.

Jack Lundin, president and chief executive officer, commented: "Our strategic acquisition of a majority interest in the Caserones copper mine continues to drive revenue and production growth. First quarter revenue and copper production increased 25 per cent and 43 per cent, respectively, compared to the same quarter last year, and was in line with our expectations. Production at Candelaria will be second half weighted due to higher grades as a result of planned mine sequencing. We remain on track to meet our annual production and cash cost guidance."

First quarter operational and financial highlights:

• Copper production: consolidated production of 88,013 tonnes of copper in the first quarter;
• Other production: during the quarter, a total of 45,688 tonnes of zinc, 3,255 tonnes of nickel and approximately 33,000 ounces of gold were produced; all metals are tracking to meet full-year guidance;
• Revenue: $937.0-million in the first quarter with a realized copper price of $3.98 per pound;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization): $362.9-million generated during the quarter;
• Adjusted earnings: net earnings attributable to shareholders of the company were $13.9-million or two cents per share in the first quarter with adjusted earnings of $45.2-million or six cents per share;
• Cash generation: cash provided by operating activities was $267.5-million, and free cash flow from operations was $67.7-million, which was reduced by a working capital build of $46.1-million;
• Resource growth: earlier in the quarter, the company updated mineral reserve and mineral resource estimates, and increased overall proven and probable copper reserves by 26 per cent on a 100-per-cent basis;
• Outlook: with first quarter 2024 production and cash costs being in line with expectations, the company's full-year guidance remains unchanged:
  • Copper production guidance of 366,000 to 400,000 tonnes;
  • Zinc production guidance of 195,000 to 215,000 tonnes;
  • Gold production guidance of 155,000 to 170,000 ounces;
  • Nickel production guidance of 10,000 to 13,000 tonnes.

• For the three months ended March 31, 2024, the company generated revenue of $937.0-million (Q1 2023: $751.3-million), including 86,189 tonnes of copper sold at a realized price of $3.98 per pound. The increase from the prior-year comparable period is primarily due to the inclusion of Caserones revenue and is somewhat offset by lower sales volumes at most mines and lower realized copper and zinc prices.
• Gross profit of $185.4-million (2023: $213.3-million) and adjusted EBITDA of $362.9-million (Q1 2023: $336.9-million) benefited from the inclusion of Caserones, favourable foreign exchange and operational improvements at Chapada.
• Net earnings attributable to shareholders of the company were $13.9-million or two cents per share in the three months ended March 31, 2024, which were lower than in the prior-year comparable period primarily due to non-cash unrealized losses related to the mark-to-market valuation of unexpired foreign exchange contracts, lower gross profit and higher financing costs.
• Adjusted earnings attributable to shareholders of the company for the three months ended March 31, 2024, of $45.2-million or six cents per share were $80.5-million lower than in the prior-year comparable period primarily due to lower net attributable earnings.
• Cash and cash equivalents as at March 31, 2024, were $365.5-million. Cash provided by operating activities amounted to $267.5-million, and cash used to finance investing activities amounted to $269.7-million.
• Free cash flow for the three months ended March 31, 2024, of negative $1.7-million was $32.5-million higher than in the prior-year comparable period as a result of reduced spending relating to the Josemaria project.
• For the three months ended March 31, 2024, the company recognized a non-cash unrealized loss of approximately $53-million on a pretax basis related to the mark-to-market valuation of the company's unexpired foreign exchange and diesel derivative contracts. For the three months ended March 31, 2024, the company entered into zero-cost collar contracts in the total amounts of $24-million (equivalent to 121 million Brazilian reais) and $950-million (equivalent to 926 billion Colombian pesos) with collar ranges of 5.10 reais to 6.07 reais and 900 pesos to 1,085 pesos, respectively.
• As at May 1, 2024, the company had a cash balance of approximately $395.0-million and a net debt excluding lease liabilities balance of approximately $1.02-billion.

Outlook

Over all, operations performed well in the first quarter of 2024, and the company is expected to meet annual production and cash cost guidance as disclosed in the company's management's discussion and analysis for the year ended Dec. 31, 2023.

Metal production continues to be weighted to the second half of the year at Candelaria, Chapada and Neves-Corvo due to mine sequencing and resultant forecasted grade profiles. As a result of production challenges at Neves-Corvo in the first quarter of 2024, copper production at that operation is tracking to the lower end of its annual production guidance range. Production challenges at Neves-Corvo, Eagle and Zinkgruvan in the first quarter of 2024 led to higher-than-expected cash costs per pound, which are expected to improve later in 2024.

Capital expenditure guidance also remains consistent as disclosed in the company's MD&A for the year ended Dec. 31, 2023, including $840-million sustaining capital expenditure and $225-million of expenditure related to the Josemaria project. Similarly, exploration expenditure of $48-million remains on target for 2024.

Exploration

During the quarter ended March 31, 2024, exploration activity focused on in-mine and near-mine targets at the company's operations. Exploration drilling at Zinkgruvan was focused on resource expansion, Candelaria drilling was focused on Candelaria Norte and Chapada drilling concentrated on delineating the high-grade, near-mine trend at Corpo Sul.

At Caserones, exploration remains in the early stages. Geophysical surveys were recently carried out on the land package, and the data collected will help to refine targets and advance efforts. Exploration drilling was completed in the lower portion of the mineral resource, and at the Angelica oxide and sulphide targets, both near-mine targets that would add potential mineral resources and extend the life of the operation.

At Josemaria, seasonal exploration drilling is coming to a close at the Cumbre Verde target near the Josemaria orebody. Six holes were drilled targeting the same mineralized system and structures that hosted high-grade mineralization on the neighbouring property that run toward Josemaria. Exploration remains in its early stages, and initial results highlight copper/gold/silver mineralization. The data obtained will help further refine and target this mineralization. Work will continue throughout the rest of 2024 although it will be minimized during the winter season.

There was no exploration drilling at Neves-Corvo and Eagle in the quarter.

About Lundin Mining Corp.

Lundin Mining is a diversified Canadian base metal mining company with projects and operations in Argentina, Brazil, Chile, Portugal, Sweden and the United States, primarily producing copper, zinc, nickel and gold.

Technical information

The scientific and technical information in this press release has been prepared in accordance with the disclosure standards of National Instrument 43-101, and has been reviewed by Arman Barha, PEng, vice-president, technical services, a qualified person under NI 43-101. Mr. Barha has verified the data disclosed in this release, and no limitations were imposed on his verification process.

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