LUNDIN MINING Q4 AND FULL YEAR 2013 PRODUCTION RESULTS

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| Source: Lundin Mining Corporation
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Toronto, January 23, 2014 (TSX: LUN; OMX: LUMI) Lundin Mining Corporation (“Lundin Mining” or the “Company”) reports the following production results for the fourth quarter and full year 2013:

(contained tonnes) Q4 2013 Production Results Full Year 2013 Production
Results
 
2013 Revised1,2 Production Guidance
 
2013 Original1,3 Production Guidance
Copper Neves-Corvo            15,499            56,544          50,000 – 55,000          50,000 – 55,000
  Zinkgruvan                  894               3,460               3,500 – 4,000               2,500 – 3,500
  Aguablanca               1,685               6,242               5,500 – 6,000               4,500 – 5,000
  Wholly-owned            18,078            66,246          59,000 – 65,000          57,000 – 63,500
  Tenke (@24%)            12,155            50,346                            50,000                            47,000
  Total attributable            30,233          116,592      109,000 – 115,000      104,000 – 110,500
Zinc Neves-Corvo            14,456            53,382          50,000 – 55,000          45,000 – 50,000
  Zinkgruvan            18,340            71,366          73,000 – 78,000          73,000 – 78,000
  Total            32,796          124,748      123,000 – 133,000      118,000 – 128,000
Lead Neves-Corvo                  849               1,496                                    nil                                    nil
  Zinkgruvan               7,119            32,874          33,000 – 36,000          33,000 – 36,000
  Total               7,968            34,370          33,000 – 36,000          33,000 – 36,000
Nickel Aguablanca               2,113               7,574               6,500 – 7,000               5,000 – 5,500

 

1.  Production guidance is based on certain estimates and assumptions, including but not limited to; mineral resource and reserves, geological formations, grade and continuity of deposits and metallurgical characteristics, amount and timing of costs, foreign exchange and commodity prices. 

2. Guidance as presented in the Company’s Management Discussion and Analysis as at September 30, 2013.

3. Original production guidance was disclosed on December 5, 2012 in a news release entitled “Lundin Mining Provides Operating Outlook for 2013-2015”.

 

Paul Conibear, President and CEO commented, “We are very pleased, once again, with our performance as we have exceeded the high-end of our annual production guidance targets for copper and nickel while meeting our overall zinc and lead targets in 2013. At Tenke an annual production record was set once again in 2013, and looking forward we expect the operation will continue to provide significant cash distributions back to the Company. 

For 2014, we remain very well positioned to deliver another year of strong operating results at all our operations and we continue to look forward to bringing the high grade Eagle Project into production in the fourth quarter.“

 

2014 production guidance1 has been updated to reflect recent guidance from Freeport on Tenke production and costs, but remains otherwise unchanged from that presented in our “Lundin Mining Provides Operating Outlook for 2014-2016” news release dated December 4, 2013 and is as follows:

    2014 Guidance1
(contained tonnes) Production C1 Cost3,4        
Copper Neves-Corvo         50,000 – 55,000 $1.90/lb
  Zinkgruvan             3,000 – 4,000  
  Aguablanca             5,000 – 6,000  
  Eagle             2,000 – 3,000  
  Wholly-owned         60,000 – 68,000  
  Tenke (@24%)                        48,4002 $1.28/lb
  Total attributable    108,400 – 116,400  
Zinc Neves-Corvo         60,000 – 65,000  
  Zinkgruvan         75,000 – 80,000 $0.35/lb
  Total    135,000 – 145,000  
Lead Neves-Corvo             2,000 – 2,500  
  Zinkgruvan         27,000 – 30,000  
  Total         29,000 – 32,500  
Nickel Aguablanca             6,000 – 7,000 $4.50/lb
  Eagle             2,000 – 3,000  
  Total           8,000 – 10,000  

 

1.  Production and C1 Cash Cost guidance is based on certain estimates and assumptions, including but not limited to; mineral resource and reserves, geological formations, grade and continuity of deposits and metallurgical characteristics, amount and timing of costs, foreign exchange and commodity prices. 

2. Freeport provided 2014 sales guidance which has been assumed to approximate Tenke’s production.

3. Cash costs remain dependent upon exchange rates (€/USD: 1.30, USD/SEK: 6.50) and metal prices (Cu: $3.15, Zn: $0.87, Pb: $1.00, Ni: $6.50, Co: $12.00).

4. Cash cost is a non-GAAP measure reflecting the sum of direct costs less by-product credits.

 

Operational Commentary

  • Neves-Corvo: Total copper production exceeded the original guidance for the year, largely as a result of higher than expected throughput.

Mining of the Lombador ore bodies commenced, as planned during 2013, resulting in higher zinc grades and record annual zinc production. With a full year of production from Lombador in 2014, zinc metal production is expected to reach 60,000-65,000 tonnes.

  • Zinkgruvan: Zinc and lead production were slightly below guidance levels largely as a result of lower than planned throughput levels caused by paste backfill and local ground control issues particularly early in the year. Despite steady production at rates of over 18kt of zinc production per quarter in the last three quarters of 2014, the mine was not able to catch up by the end of the year on the shortfall resulting from poor first quarter production.
  • Aguablanca: Excellent production performance from the Aguablanca open pit throughout the year resulted in throughput, nickel and copper grades and metallurgical recoveries all being above expectations. Production of copper and nickel were well above guidance as a result.
  • Eagle: At Eagle, the project is proceeding well and remains on schedule, on budget, for commissioning and first concentrate sales during the fourth quarter of this year.
  • Tenke: During 2013, Tenke achieved record mining and production rates facilitated by new Phase II expansion facilities that outperformed above design tonnage of 14,000 tpd. Throughput averaged approximately 14,900 metric tonnes of ore per day over the year, with November and December exceeding 16,000 metric tonnes of ore per day. As a result, attributable copper production was above guidance.  During the third quarter of 2013, Tenke experienced power interruptions, which impacted operating rates. Power availability improved during the fourth quarter and Tenke continues to work with its power provider and authorities to establish more consistent and reliable power availability.

 

2013 Operating Statistics

Details of operating statistics by mine, by quarter and for the year follow in the attached table:

 

    Total       Q4       Q3       Q2       Q1
Neves-Corvo          
Ore mined, copper (000 tonnes) 2,535     674     618     648     595
Ore mined, zinc (000 tonnes)     968     236     255     266     211
Ore milled, copper (000 tonnes) 2,525     664     628     654     579
Ore milled, zinc (000 tonnes)     974     232     265 264     213
Grade per tonne                                     
  Copper (%)       2.6       2.8       2.4       2.5       2.7
  Zinc (%)       7.1       8.1       7.3       6.6       6.2
Recovery                                     
  Copper (%)    84.5    80.7    81.1    86.0    90.8
  Zinc (%)    74.1    74.0    73.2    76.1    73.2
Concentrate grade                                     
  Copper (%)                    23.6    23.7    23.7    23.5    23.6
  Zinc (%)    47.7    46.8    48.0    48.5    47.5
Production (contained metal)                 
  Copper (tonnes) 56,544 15,499 12,629 14,102 14,314
  Zinc (tonnes) 53,382 14,456 14,723 13,940 10,263
  Lead (tonnes) 1,496     849     416     231           -

 

    Total       Q4       Q3       Q2       Q1  
Zinkgruvan          
Ore mined, zinc (000 tonnes)     911     216     230     222     243
Ore mined, copper (000 tonnes)     214        61        58        43        52
Ore milled, zinc (000 tonnes)     924     217     229     248     230
Ore milled, copper (000 tonnes)     222        59        58        49        56
Grade per tonne                                     
 Zinc (%) 8.5 9.1 9.0 8.5 7.5
 Lead (%) 4.2 3.9 4.5 4.9 3.4
 Copper (%) 1.7 1.6 1.9 1.1 2.2
Recovery                                     
 Zinc (%) 90.7 92.7 90.9 88.5 90.6
 Lead (%) 84.8 83.6 84.5 85.5 85.2
 Copper (%) 89.8 91.7 88.2 82.6 92.9
Concentrate grade                                     
  Zinc (%) 53.7 54.8 53.3 53.1 53.7
  Lead (%) 73.4 75.1 73.5 74.1 70.4
  Copper (%) 25.4 26.2 24.7 23.8 26.1
Production (contained metal)                 
  Zinc (tonnes) 71,366 18,340 18,743 18,599 15,684  
  Lead (tonnes) 32,874 7,119 8,703 10,461 6,591  
  Copper (tonnes) 3,460     894     973     447 1,146  
 
Aguablanca
           
Ore mined (000 tonnes) 1,785 459 539 409 378  
Ore milled (000 tonnes) 1,606     438     378     387 403  
Grade per tonne                              
 Nickel (%) 0.6 0.6 0.6 0.6 0.5  
 Copper (%) 0.4 0.4 0.4                   0.4                   0.4  
Recovery
 
         
 Nickel (%) 82.8 81.8 82.6 83.8 82.4  
 Copper (%) 93.8 94.2 94.2                 93.9                 93.2  
Concentrate grade                     
  Nickel (%) 6.8 6.7 6.7 6.9 6.8  
  Copper (%) 5.6 5.3 5.6                   5.6                   6.0  
Production (contained metal)                     
  Nickel (tonnes)     7,574 2,113 1,788 1,876 1,797  
Copper (tonnes) 6,242 1,685 1,485              1,516              1,556  
                                       

 

Further information will be published in the Company's report on operating and financial results for year which is scheduled for release on February 20, 2014.

 

About Lundin Mining

Lundin Mining Corporation is a diversified base metals mining company with operations in Portugal, Sweden, Spain and the United States, 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 located in Kokkola, Finland.

 

On Behalf of the Board,

Paul Conibear

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 full year metal production and C1 cash costs, as noted in the Segmented Guidance section and elsewhere in this document. 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 the estimated cash costs, the timing and amount of production from the Eagle Project, the 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’s discussion and analysis. Forward-looking information may also be based on other various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of copper, zinc, lead and nickel; 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.

 

         For further information, please contact:
         Sophia Shane, Investor Relations North America: +1-604-689-7842
         John Miniotis, Senior Manager Corp Development & Investor Relations: +1-416-342-5565
         Robert Eriksson, Investor Relations Sweden: +46 8 545 015 50