Toronto, December 4, 2013 (TSX: LUN; OMX: LUMI) Lundin Mining Corporation (“Lundin Mining” or the “Company”), provides the following production guidance for the three-year period of 2014 through 2016. Key highlights are as follows:
“For 2014, we anticipate continuing our strong execution at the current operations and completing construction of the Eagle Mine on target. Our assets continue to offer attractive, low risk, near-term production growth with relatively modest levels of capital requirements, which ideally positions us to continue to add significant shareholder value over the next several years," said Mr. Paul Conibear, President & CEO.
Production Outlook 2014 - 20161:
|Neves-Corvo||50,000 – 55,000||50,000 – 55,000||50,000 – 55,000|
|Zinkgruvan||3,000 – 4,000||2,000 – 3,000||2,000 – 3,000|
|Aguablanca||5,000 – 6,000||3,000 – 4,000||4,000 – 5,000|
|Eagle||2,000 – 3,000||17,000 – 22,000||17,000 – 22,000|
|Copper wholly-owned operations||60,000 – 68,000||72,000 – 84,000||73,000 – 85,000|
|Total Attributable Copper||110,000 – 118,000||122,000 – 134,000||123,000 – 135,000|
|Neves-Corvo||60,000 – 65,000||75,000 - 80,000||75,000 – 80,000|
|Zinkgruvan||75,000 – 80,000||80,000 – 85,000||75,000 – 80,000|
|Total Zinc||135,000 – 145,000||155,000 – 165,000||150,000 – 160,000|
|Neves-Corvo||2,000 – 2,500||2,000 - 2,500||2,000 – 2,500|
|Zinkgruvan||27,000 – 30,000||30,000 – 34,000||30,000 – 34,000|
|Total Lead||29,000 – 32,500||32,000 – 36,500||32,000 – 36,500|
|Aguablanca||6,000 – 7,000||4,000 – 5,000||4,000 – 5,000|
|Eagle||2,000 – 3,000||20,000 – 25,000||20,000 – 25,000|
|Total Nickel||8,000 – 10,000||24,000 – 30,000||24,000 – 30,000|
2014 Cash Costs3
2014 Capital Expenditure Guidance
Capital expenditures for 2014 are expected to be $460 million including Eagle and excluding Tenke (compared to an estimated $255 million in 2013, on the same basis) which includes:
2014 Exploration Investment
Exploration expenditures are expected to be in the range of $40 million in 2014 (2013 - estimated at $33 million). These expenditures are expected to be directed primarily towards Neves-Corvo, Zinkgruvan and Eagle, where drilling programs will advance exploration on various in and near mine targets. A portion of 2014 exploration budgets are allocated to South American and Eastern European exploration work.
About Lundin Mining
Lundin Mining Corporation is a diversified Canadian base metals mining company with operations in Portugal, Sweden, Spain and the US, producing copper, zinc, lead and nickel. In addition, Lundin Mining holds a 24% equity stake in the world-class Tenke Fungurume copper/cobalt mine in the Democratic Republic of Congo and in the Freeport Cobalt Oy business, which includes a cobalt refinery in Kokkola, Finland.
On Behalf of the Board,
President and CEO
Forward Looking Statements
Certain of the statements made and information contained herein is “forward-looking information” within the meaning of the Ontario Securities Act. This release includes, but is not limited to, forward looking statements with respect to the Company’s estimated annual metal production, C1 cash costs and capital expenditures. These estimates and other forward-looking statements are based on a number of assumptions and are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to estimated operating and cash costs, timing and quantities of production from the Eagle Project, cost estimates for the Eagle Project, foreign currency fluctuations; risks inherent in mining including environmental hazards, industrial accidents, unusual or unexpected geological formations, ground control problems and flooding; risks associated with the estimation of mineral resources and reserves and the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; uncertain political and economic environments; changes in laws or policies, foreign taxation, delays or the inability to obtain necessary governmental permits; and other risks and uncertainties, including those described under Risk Factors Relating to the Company’s Business in the Company’s Annual Information Form and in each management discussion and analysis. Forward-looking information is in addition based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of copper, nickel, lead and zinc; that the Company can access financing, appropriate equipment and sufficient labour and that the political environment where the Company operates will continue to support the development and operation of mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements.
1. Production guidance is based on certain estimates and assumptions, including but not limited to; mineral resources and reserves, geological formations, grade and continuity of deposits and metallurgical characteristics.
2. Tenke guidance has not yet been provided by operator, Freeport McMoRan Copper and Gold Inc. ("Freeport"). Lundin Mining anticipates production from Tenke in 2014 to be comparable to expected 2013 production.
3. Cash Costs and C1 cash costs are based on various assumptions and estimates, including, but not limited to; production volumes, as noted above, commodity prices (2014 - Cu: $3.15, Zn: $0.87, Pb: $1.00, Ni: $6.50) foreign currency exchange rates (2014 - €/USD:1.30, USD/SEK:6.50) and operating costs.
For further information, please contact:
Sophia Shane, Investor Relations North America: +1-604-689-7842
John Miniotis, Senior Business Analyst: +1-416-342-5565
Robert Eriksson, Investor Relations Sweden: +46 8 545 015 50