TORONTO, ONTARIO--(Marketwired - Dec. 2, 2015) - Lundin Mining Corporation (TSX:LUN)(OMX:LUMI) ("Lundin Mining" or the "Company") provides the following production guidance for the three-year period of 2016 through 2018. Key highlights are as follows:
Given current depressed market conditions, the Company continues to refine planned investments in capital programs and exploration. The Company is also conducting a further review of operating costs and considering actions required in order to preserve healthy operating margins under a sustained period of low commodity prices. The 2016 outlook for cash costs, capital spending and exploration programs will be disclosed towards the end of January 2016.
Mr. Paul Conibear, President and CEO commented: "The Company's near term strategy is focused on stable production with low capital investment and improving operating costs, in order to maximize profitability and cash flows, preserving a strong balance sheet. The stability of our producing assets combined with the strength of our balance sheet, ideally positions the Company to generate leading returns to shareholders in any commodity price environment."
Attributable Production Outlook 2016 - 2018(1): |
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2016 | 2017 | 2018 | ||
Copper: | Tonnes | Tonnes | Tonnes | |
Candelaria (80%) | 118,000 - 123,000 | 120,000 - 125,000 | 113,000 - 120,000 | |
Eagle | 20,000 - 23,000 | 17,000 - 20,000 | 14,000 - 17,000 | |
Neves-Corvo | 50,000 - 55,000 | 50,000 - 55,000 | 50,000 - 55,000 | |
Zinkgruvan | 3,500 - 4,000 | 3,500 - 4,000 | 3,000 - 3,500 | |
Wholly-owned operations | 191,500 - 205,000 | 190,500 - 204,000 | 180,000 - 195,500 | |
Tenke(2) (24%) | ~50,000 | ~50,000 | ~50,000 | |
Total Attributable Copper | 241,500 - 255,000 | 240,500 - 254,000 | 230,000 - 245,500 | |
Nickel: | ||||
Eagle | 21,000 - 24,000 | 18,000 - 21,000 | 15,000 - 18,000 | |
Total Nickel | 21,000 - 24,000 | 18,000 - 21,000 | 15,000 - 18,000 | |
Zinc: | ||||
Neves-Corvo | 65,000 - 70,000 | 65,000 - 70,000 | 65,000 - 70,000 | |
Zinkgruvan | 80,000 - 85,000 | 80,000 - 85,000 | 90,000 - 95,000 | |
Total Zinc | 145,000 - 155,000 | 145,000 - 155,000 | 155,000 - 165,000 | |
(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 Inc. ("Freeport"). Lundin Mining anticipates future production from Tenke to be comparable to expected 2015 production.
About Lundin Mining
Lundin Mining Corporation is a diversified Canadian base metals mining company with operations in Chile, Portugal, Sweden and the US, producing copper, nickel and zinc. 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,
Paul Conibear, President and CEO
The information in this release is subject to the disclosure requirements of Lundin Mining under the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. This information was publicly communicated on December 2, 2015 at 5:00 p.m. Eastern Time.
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, foreign currency fluctuations; risks inherent in mining including environmental hazards, industrial accidents, unusual or unexpected geological formations, ground control problems and flooding; including 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; inability to successfully integrate the Candelaria operations or realize its anticipated benefits; 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, zinc and other metals; 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.
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