Lundin Mining Second Quarter 2022 Results

2022-07-27 / @newswire

 

Lundin Mining Corporation (CNW Group/Lundin Mining Corporation)

TORONTO, July 27, 2022 /CNW/ - (TSX: LUN) (Nasdaq Stockholm: LUMI) Lundin Mining Corporation ("Lundin Mining" or the "Company") today reported net loss attributable to Lundin Mining shareholders of $52.6 million (($0.07) per share) in the second quarter and earnings of $292.5 million ($0.39 per share) for the six months ended June 30, 2022. Adjusted loss1 was $35.3 million (($0.05) per share) for the quarter and adjusted earnings were $260.3 million ($0.35 per share) for the six months ended June 30, 2022. Adjusted EBITDA1 for the three and six months ended June 30, 2022 were $148.6 million and $736.4 million, respectively.

"Despite challenging inflationary conditions in the second quarter, Lundin Mining generated over $365 million of cash from operating activities and $215 million of free cash flow. Unfortunately, our earnings were affected by significant provisional pricing adjustments given the late-quarter decline in base metal prices. Our balance sheet remains very strong with $470 million of net cash and total liquidity of roughly $2.3 billion at the end of the quarter," commented Peter Rockandel, President and CEO.

"Our operations continue to perform well with Candelaria, Eagle and Zinkgruvan all on-track to deliver annual production guidance. We have revised production guidance for Chapada given impacts of the very wet start to the year, and for Neves-Corvo zinc as we progress ramping the Zinc Expansion Project towards full capacity. We expect inflationary impacts on mining consumables to persist, which is reflected in our revised cash cost and capital expenditure guidance for Chapada and Candelaria. Chapada's Saúva discovery continues to deliver impressive results, expanding the mineralized footprint once again this quarter. We are excited to now have the Josemaria Project under Lundin Mining stewardship and are advancing the project in a deliberate and disciplined manner."

Summary Financial Results 


Three months ended

June 30,


Six months ended

June 30,

US$ Millions (except per share amounts)

2022

2021


2022

2021

Revenue

590.2

872.3


1,581.3

1,553.8

Gross profit

46.0

380.2


524.8

632.6

Attributable net (loss) earnings2

(52.6)

242.6


292.5

377.8

Net (loss) earnings

(48.6)

268.4


329.5

422.7

Adjusted (loss) earnings 1,2

(35.3)

226.3


260.3

370.7

Adjusted EBITDA1

148.6

480.7


736.4

835.2

Basic and diluted earnings per share ("EPS")2

(0.07)

0.33


0.39

0.51

Adjusted EPS1,2

(0.05)

0.31


0.35

0.50

Cash flow from operations

366.4

419.0


683.7

577.7

Adjusted operating cash flow1

49.7

431.6


522.6

711.5

Adjusted operating cash flow per share1

0.06

0.58


0.70

0.96

Free cash flow1

214.7

298.9


401.2

354.9

Cash and cash equivalents

498.2

294.9


498.2

294.9

Net cash1

469.9

153.4


469.9

153.4

These are non-GAAP measures. Please refer to the Company's discussion of non-GAAP and other performance measures in its Management's Discussion and Analysis for the three and six months ended June 30, 2022  and the Reconciliation of Non-GAAP Measures section at the end of this news release. 

Attributable to shareholders of Lundin Mining Corporation.

Highlights

Operational Performance 

Copper and zinc production during the current quarter was higher than the prior year quarter. Production cost and cash cost were higher this quarter than the comparable prior year quarter primarily due to the inflationary impacts on consumables, particularly diesel and electricity, as well as on contractor and maintenance costs. 

Candelaria (80% owned): Candelaria produced 40,949 tonnes of copper, and approximately 23,000 ounces of gold in concentrate on a 100% basis in the quarter. Copper production was higher than the comparable prior year quarter due to grades, while gold production was lower primarily due to lower gold recoveries. Production costs were higher in the current quarter reflecting higher consumable costs, partially offset by favourable foreign exchange. Copper cash cost of $1.86/lb for the current quarter was higher than the prior year quarter largely owing to the impact of higher mining costs and lower by-product credits.

Chapada (100% owned): Chapada produced 10,345 tonnes of copper and approximately 16,000 ounces of gold in concentrate in the quarter. Copper and gold production was lower than the prior year quarter primarily due to processed ore types impacting throughput and metal recoveries. Production costs were higher due to higher consumable costs. Copper cash cost of $2.98/lb for the quarter was higher than the prior year quarter due mainly to higher mining costs from inflationary pressures, as well as lower sales volumes.

Eagle (100% owned): Eagle produced 4,719 tonnes of nickel and 4,400 tonnes of copper during the quarter, which was lower than the prior year quarter due to lower grades. Production costs were higher due to higher consumable costs. Nickel cash cost in the quarter of $0.90/lb was higher than the prior year quarter due primarily to lower by-product copper price and higher production costs.

Neves-Corvo (100% owned): Neves-Corvo produced 7,867 tonnes of copper for the quarter and 20,647 tonnes of zinc. Copper production was lower than the prior year comparable period, due to throughput. Zinc production was higher primarily due to increased throughput driven by the ramp-up of the Zinc Expansion Project ("ZEP"). Production costs were higher due to inflationary cost increases. Copper cash cost of $2.39/lb for the quarter was higher than the prior year quarter primarily due to inflationary increases, primarily electricity, as well as lower sales volumes.

Zinkgruvan (100% owned): Zinc production of 21,265 tonnes and lead production of 9,124 tonnes were both higher than the prior year comparable period due to higher throughput. Production costs were higher due to higher sales volumes, partially offset by favourable foreign exchange. Zinc cash cost of $0.44/lb was comparable to the prior year quarter.

Total Production

(Contained metal in concentrate)a

2022

2021

YTD

Q2

Q1

Total

Q4

Q3

Q2

Q1

Copper (t)b

129,177

64,096

65,081

262,884

76,996

65,077

63,457

57,354

Zinc (t)

74,303

41,912

32,391

143,797

36,830

38,769

34,833

33,365

Gold (koz)b

73

39

34

167

46

46

41

34

Nickel (t)

9,000

4,719

4,281

18,353

4,101

4,124

4,774

5,354

a. Tonnes (t) and thousands of ounces (koz)

b.  Candelaria's production is on a 100% basis.

Corporate Updates

  • On April 26, 2022, the Company executed a fourth amended and restated credit agreement that increased its revolving credit facility ("the Credit Facility") to $1,750.0 million (previously $800.0 million with a $200.0 million accordion option), reduced the cost of borrowing, and extended the term to April 2027, from August 2023. The amended Credit Facility bears interest on drawn funds at rates of Term Secured Overnight Financing Rate ("Term SOFR") + Credit Spread Adjustment ("CSA") + 1.45% to Term SOFR+CSA+2.50% depending upon the Company's net leverage ratio, reduced from LIBOR+1.75% to LIBOR+2.75%, previously. The amendment and restatement provides the Company with more favourable covenants, reduced security on assets and included other customary revisions.
  • On April 28, 2022, the Company completed the previously announced plan of arrangement (the "Arrangement") to acquire all of the issued and outstanding shares of Josemaria Resources Inc. ("Josemaria Resources"). Under the terms of the Arrangement, Josemaria Resources shareholders were provided with the right to elect to receive 0.1487 of a common share of Lundin Mining ("Lundin Mining Share") per Josemaria Resources common share ("Josemaria Resources Share") plus C$0.11 for each whole Lundin Mining Share issued to such shareholder or C$1.60 in cash for each Josemaria Resources Share or any combination thereof, subject to pro-ration of a total maximum number of Lundin Mining Shares and cash consideration.
  • On May 12, 2022, at the Annual Meeting, the Company announced the appointment of Mr. Adam Lundin as the Chair of the Board of Directors following the retirement of Mr. Lukas Lundin.

Financial Performance 

  • Gross profit for the quarter ended June 30, 2022 was $46.0 million, a decrease of $334.2 million in comparison to the prior year quarter due to lower metal prices net of price adjustments ($256.7 million) and higher production costs due to inflationary price increases. On a year-to-date basis, gross profit was also lower than the prior year comparative period due to the same impacts.   
  • For the three and six months ended June 30, 2022, net loss of $48.6 million and net earnings of $329.5 million were $317.1 million and $93.2 million lower than the prior year comparable periods, respectively. Lower net earnings were attributable to lower gross profit, partially offset by favourable foreign exchange.  
  • Adjusted loss of $35.3 million and adjusted earnings of $260.3 millionfor the three and six months ended June 30, 2022, respectively, and were lower than the prior year comparable periods due to lower net earnings.

Financial Position and Financing  

  • Cash and cash equivalents as at June 30, 2022 were $498.2 million, a decrease during the quarter of $235.6 million. Cash flow from operations of $366.4 million was used to fund investing activities of $333.0 million which includes the Josemaria Resources acquisition. In addition, financing activities included shareholder dividends of $171.2 million , distributions of $20.0 million to non-controlling interests and $47.0 million in Josemaria debentures which were paid in the quarter.
  • On a year-to-date basis, cash and cash equivalents decreased by $95.8 million. Cash flow from operations of $683.7 million was used to fund investing activities of $505.5 million, and financing activities described above.
  • As at June 30, 2022, the Company had a net cash balance of $469.9 million. As at July 27, 2022, the Company had cash and net cash balances of approximately $485.0 million and $460.0 million, respectively.

Outlook 

The Company continues to experience continuing risks associated with global inflation as well as supply chain delivery. To date, there have been no significant impacts on our operations relating to supply chain availability; however, inflationary impacts on diesel, electricity and contractor costs are expected to continue to increase operating costs for the remainder of the year. The Company has implemented procurement strategies to try to mitigate the impact and continues to monitor these risks.

Chapada production guidance has been revised to reflect delayed access to planned ore types primarily as a result of above average rainfall experienced in the first half of the year which impacted planned waste stripping activities. Neves-Corvo zinc production guidance has been revised to reflect ZEP ramp-up progress achieved to date and expected underground mining rates.

Cash cost guidance for Candelaria and Chapada has been updated to reflect anticipated inflationary impacts.

2022 Production and Cash Cost Guidance




Previous Guidancea

Revised Guidance


(contained metal in concentrate)

Production

Cash Cost ($/lb)

Production

Cash Cost ($/lb)b


Copper (t)

Candelaria (100%)

155,000 - 165,000

1.55

155,000 - 165,000

1.75c



Chapada

53,000 - 58,000

1.60

45,000 - 50,000

2.25d



Eagle

15,000 - 18,000


15,000 - 18,000




Neves-Corvo

33,000 - 38,000

1.80

33,000 - 38,000

1.80c



Zinkgruvan

2,000 - 3,000


2,000 - 3,000




Total

258,000 - 282,000


250,000 - 274,000



Zinc (t)

Neves-Corvo

110,000 - 120,000


90,000 - 100,000




Zinkgruvan

78,000 - 83,000

0.55

78,000 - 83,000

0.55c



Total

188,000 - 203,000


168,000 - 183,000



Gold (koz)

Candelaria (100%)

83 - 88


83 - 88




Chapada

70 - 75


62 - 67




Total

153 - 163


145 - 155



Nickel (t)

Eagle

15,000 - 18,000

(0.25)

15,000 - 18,000

(0.25)

a. Guidance as outlined in the MD&A for the year ended December 31, 2021.

b. Cash costs are based on various assumptions and estimates, including but not limited to: production volumes, commodity prices (Cu: $3.75/lb, Zn: $1.50/lb, Pb: $0.90/lb, Au: $1,850/oz), foreign exchange rates (€/USD:1.10, USD/SEK:9.00, USD/CLP:900, USD/BRL:5.00) and production costs.

c. 68% of Candelaria's total gold and silver production are subject to a streaming agreement and silver production at Zinkgruvan and Neves-Corvo are also subject to streaming agreements. Cash costs are calculated based on receipt of approximately $420/oz gold and $4.20/oz to $4.52/oz silver.

d. Chapada cash cost is calculated on a by-product basis and does not include the effects of its copper stream agreements. Effects of the copper stream agreements are reflected in copper revenue and will impact realized price per pound.

2022 Capital Expenditure

Capital expenditure guidance has been updated for Candelaria and Chapada and reflects higher expected capitalized deferred stripping costs due to inflationary impacts on energy and other mining consumables.


($ millions)

Previous Guidancea

Revisions

Revised Guidance


Candelaria (100% basis)

370

30

400


Chapada

65

15

80


Eagle

10

10


Neves-Corvo

95

95


Zinkgruvan

60

60


Other

25

25


Total Sustaining Capital

625

45

670


Zinc Expansion Project (Neves-Corvo)

30

30


Total Capital Expenditures

655

45

700

a.

Guidance as outlined in MD&A for the year ended December 31, 2021.

Josemaria Project Guidance

The large scale copper-gold Josemaria project ("Josemaria Project") was acquired on April 28, 2022 through the acquisition of Josemaria Resources. The Company had previously estimated Josemaria Project spend of $300 million to advance the project which included engineering, commitments for long lead items, pre-construction activities and drilling, as outlined in the news release dated April 28, 2022, entitled "Lundin Mining Announces Closing of Acquisition of Josemaria Resources and Provides Update on Josemaria Project". The expected project spend remains unchanged.

2022 Exploration Investment Guidance

Total planned exploration expenditures are expected to be $45.0 million in 2022, unchanged from previous guidance. Approximately $40.0 million will be spent supporting significant in-mine and near-mine targets at our operations ($14.0 million at Candelaria, $11.0 million at Chapada, $7.0 million at Neves-Corvo, $4.0 million at Zinkgruvan and $4.0 million at Eagle). The remaining amounts are planned to advance activities on exploration stage and new business development projects.

About Lundin Mining 

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

The information in this release is subject to the disclosure requirements of Lundin Mining under the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below on July 27, 2022 at 17:30 Eastern Time.

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 ("NI 43-101") and has been reviewed and approved by Jeremy Weyland, P.Eng., Director, Studies of the Company, a "Qualified Person" under NI 43-101. Mr. Weyland has verified the data disclosed in this release and no limitations were imposed on his verification process.

Reconciliation on Non-GAAP Measures  

The Company uses certain performance measures in its analysis. These performance measures have no standardized meaning within generally accepted accounting principles under International Financial Reporting Standards and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. For additional details please refer to the Company's discussion of non-GAAP and other performance measures in its Management's Discussion and Analysis for the three and six months ended June 30, 2022 which is available on SEDAR at www.sedar.com.

Adjusted EBITDA can be reconciled to the Company's Consolidated Statement of Earnings as follows:


Three months ended

June 30,


Six months ended

June 30,

($thousands)

2022

2021


2022

2021

Net (loss) earnings

(48,626)

268,432


329,483

422,651

Add back:






Depreciation, depletion and amortization                                     

142,042

130,850


271,879

256,760

Finance income and costs

17,309

9,078


32,281

20,174

Income taxes

49,003

62,614


126,209

132,516


159,728

470,974


759,852

832,101

Unrealized foreign exchange

2,721

5,296


10,574

6,258

Unrealized foreign exchange and trading gains on equity investments

(18,848)


(18,848)

Revaluation of derivative liability

(745)

5,084


2,548

(2,019)

Revaluation of marketable securities

1,626

(3,513)


(2,266)

(4,062)

Income from investment in associates

1,321

(773)


(3,375)

(1,146)

Gain on disposal of subsidiary


(16,828)

Other

2,840

3,659


4,760

4,034

Total adjustments - EBITDA

(11,085)

9,753


(23,435)

3,065

Adjusted EBITDA

148,643

480,727


736,417

835,166

Adjusted earnings and adjusted earnings per share can be reconciled to the Company's Consolidated Statement of Earnings as follows:


Three months ended

June 30,


Six months ended

June 30,

($thousands, except share and per share amounts)

2022

2021


2022

2021

Net (loss) earnings attributable to Lundin Mining shareholders

(52,577)

242,643


292,501

377,828

Add back:






Total adjustments - EBITDA

(11,085)

9,753


(23,435)

3,065

Tax effect on adjustments

5,035

(2,302)


3,001

827

Deferred tax arising from foreign exchange translation

23,091

(24,133)


(11,863)

(11,225)

Other

260

320


128

155

Total

17,301

(16,362)


(32,169)

(7,178)

Adjusted (loss) earnings                                                              

(35,276)

226,281


260,332

370,650







Basic weighted average number of shares outstanding

766,775,032

738,612,506


751,676,764

737,756,508







Net (loss) earnings attributable to shareholders  

(0.07)

0.33


0.39

0.51

Total adjustments  

0.02

(0.02)


(0.04)

(0.01)

Adjusted earnings per share                                                      

(0.05)

0.31


0.35

0.50

Adjusted operating cash flow and adjusted operating cash flow per share can be reconciled to cash provided by operating activities as follows:


Three months ended

June 30,


Six months ended

June 30,

($thousands, except share and per share amounts)

2022

2021


2022

2021

Cash provided by operating activities

366,411

418,998


683,668

577,673

Changes in non-cash working capital items

(316,665)

12,629


(161,117)

133,799

Adjusted operating cash flow                                                    

49,746

431,627


522,551

711,472







Basic weighted average number of shares outstanding

766,775,032

738,612,506


751,676,764

737,756,508

Adjusted operating cash flow per share                                 

$               0.06

0.58


0.70

0.96

Free cash flow can be reconciled to cash provided by operating activities as follows:


Three months ended

June 30,


Six months ended

June 30,

($thousands)

2022

2021


2022

2021

Cash provided by operating activities

366,411

418,998


683,668

577,673

Sustaining capital expenditures

(151,665)

(120,100)


(282,423)

(222,744)

Free cash flow                                                                                

214,746

298,898


401,245

354,929

Net cash can be reconciled as follows:

($thousands)

June 30, 2022

June 30, 2021

Cash and cash equivalents

498,243

294,914

Current portion of total debt and lease liabilities           

(14,344)

(119,780)

Debt and lease liabilities

(13,959)

(21,752)


(28,303)

(141,532)

Net cash                                                                                           

469,940

153,382

Cash and All-in Sustaining Costs can be reconciled to the Company's operating costs as follows:


Three months ended June 30, 2022



Operations

Candelaria

Chapada

Eagle

Neves-Corvo

Zinkgruvan


($000s, unless otherwise noted)

(Cu)

(Cu) 

(Ni)

 (Cu)

(Zn)

Total

Sales volumes (Contained metal in concentrate):






Tonnes                    

39,655

7,905

4,206

8,183

18,525


Pounds (000s)

87,424

17,427

9,273

18,040

40,841


Production costs   






402,190

Less: Royalties and other






(13,657)







388,533

Deduct: By-product credits






(134,728)

Add: Treatment and refining






29,960

Cash cost

162,240

51,872

8,341

43,198

18,114

283,765

Cash cost per pound ($/lb)

1.86

2.98

0.90

2.39

0.44


Add: Sustaining capital       

86,107

29,760

2,923

13,760

14,083


Royalties

2,442

10,633

(616)


Interest expense

1,348

1,720

401

35

21


Leases & other

3,392

1,254

4,913

279

1,095


All-in sustaining cost

253,087

87,048

27,211

56,656

33,313


AISC per pound ($/lb)

2.89

5.00

2.93

3.14

0.82


 


Three months ended June 30, 2021



Operations

Candelaria

Chapada

Eagle

Neves-Corvo

Zinkgruvan


($000s, unless otherwise noted)

(Cu)

(Cu) 

(Ni)

 (Cu)

(Zn)

Total

Sales volumes (Contained metal in concentrate):






Tonnes                    

35,537

12,247

4,258

10,314

14,305


Pounds (000s)

78,346

27,000

9,387

22,738

31,537


Production costs   






361,317

Less: Royalties and other






(22,564)







338,753

Deduct: By-product credits






(180,782)

Add: Treatment and refining






28,915

Cash cost

119,000

35,731

(18,827)

37,611

13,371

186,886

Cash cost per pound ($/lb)

1.52

1.32

(2.01)

1.65

0.42


Add: Sustaining capital       

81,573

12,461

5,346

11,211

9,415


Royalties

3,567

8,629

3,033


Interest expense

1,165

859

177

19

18


Leases & other

3,096

827

2,470

1,417

1,175


All-in sustaining cost

204,834

53,445

(2,205)

53,291

23,979


AISC per pound ($/lb)

2.61

1.98

(0.23)

2.34

0.76


 


Six months ended June 30, 2022



Operations

 Candelaria

Chapada

Eagle

Neves-Corvo

Zinkgruvan


($000s, unless otherwise noted)

(Cu)

(Cu) 

(Ni)

 (Cu)

(Zn)

Total

Sales volumes (Contained metal in concentrate):






Tonnes                    

78,103

20,709

7,473

16,667

34,327


Pounds (000s)

172,187

45,655

16,475

36,744

75,678


Production costs   






784,617

Less: Royalties and other






(29,528)







755,089

Deduct: By-product credits






(315,735)

Add: Treatment and refining






62,115

Cash cost

296,225

103,309

(638)

75,001

27,572

501,469

Cash cost per pound ($/lb)

1.72

2.26

(0.04)

2.04

0.36


Add: Sustaining capital       

169,071

44,215

7,383

33,276

23,122


Royalties

6,106

18,424

2,197


Interest expense

2,781

3,441

802

71

43


Leases & other

5,896

2,346

9,780

776

2,428


All-in sustaining cost

473,973

159,417

35,751

111,321

53,165


AISC per pound ($/lb)

2.75

3.49

2.17

3.03

0.70


($000s, unless otherwise noted)


2022 Revised Guidance




Cash cost

620,000

230,000

(10,000)

140,000

80,000


Cash cost per pound($/lb)

1.75

2.25

(0.25)

1.80

0.55


 


Six months ended June 30, 2021



Operations

Candelaria

Chapada

Eagle

Neves-

Zinkgruvan


($000s, unless otherwise noted)

(Cu)

(Cu) 

(Ni)

 (Cu)

(Zn)

Total

Sales volumes (Contained metal in concentrate):






Tonnes                    

71,053

19,626

8,376

16,879

30,008


Pounds (000s)

156,645

43,268

18,466

37,212

66,156


Production costs   






664,430

Less: Royalties and other






(29,069)







635,361

Deduct: By-product credits






(306,162)

Add: Treatment and refining






57,908

Cash cost

248,071

57,430

(33,557)

75,364

39,799

387,107

Cash cost per pound ($/lb)

1.58

1.33

(1.82)

2.03

0.60


Add: Sustaining capital       

152,315

21,431

8,875

20,157

19,826


Royalties

5,640

15,475

3,737


Interest expense

2,284

1,718

354

39

36


Leases & other

5,152

1,496

5,061

2,963

2,556


All-in sustaining cost

407,822

87,715

(3,792)

102,260

62,217


AISC per pound ($/lb)

2.60

2.03

(0.21)

2.75

0.94


Cautionary Statement on Forward-Looking Information

Certain of the statements made and information contained herein is "forward-looking information" within the meaning of applicable Canadian securities laws. All statements other than statements of historical facts included in this document constitute forward-looking information, including but not limited to statements regarding the Company's plans, prospects and business strategies; the Company's guidance on the timing and amount of future production and its expectations regarding the results of operations; expected costs; permitting requirements and timelines; timing and possible outcome of pending litigation; the results of any Preliminary Economic Assessment, Feasibility Study, or Mineral Resource and Mineral Reserve estimations, life of mine estimates, and mine and mine closure plans; anticipated market prices of metals, currency exchange rates, and interest rates; the development and implementation of the Company's Responsible Mining Management System; the Company's ability to comply with contractual and permitting or other regulatory requirements; anticipated exploration and development activities at the Company's projects; the Company's integration of acquisitions and any anticipated benefits thereof; and expectations for other economic, business, and/or competitive factors. Words such as "believe", "expect", "anticipate", "contemplate", "target", "plan", "goal", "aim", "intend", "continue", "budget", "estimate", "may", "will", "can", "could", "should", "schedule" and similar expressions identify forward-looking statements.

Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation, the expectations and beliefs of management, including that the Company can access financing, appropriate equipment and sufficient labor; assumed and future price of copper, nickel, zinc, gold and other metals; anticipated costs; ability to achieve goals; the prompt and effective integration of acquisitions; that the political environment in which the Company operates will continue to support the development and operation of mining projects; and assumptions related to the factors set forth below. While these factors and assumptions are considered reasonable by Lundin Mining as at the date of this document in light of management's experience and perception of current conditions and expected developments, these statements are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements and undue reliance should not be placed on such statements and information. Such factors include, but are not limited to: risks inherent in mining including but not limited to risks to the environment, industrial accidents, catastrophic equipment failures, unusual or unexpected geological formations or unstable ground conditions, and natural phenomena such as earthquakes, flooding or unusually severe weather; uninsurable risks; global financial conditions and inflation; changes in the Company's share price, and volatility in the equity markets in general; volatility and fluctuations in metal and commodity demand and prices; changing taxation regimes; delays or the inability to obtain, retain or comply with permits; reliance on a single asset; unavailable or inaccessible infrastructure, infrastructure failures, and risks related to ageing infrastructure; risks related to negative publicity with respect to the Company or the mining industry in general; health and safety risks; pricing and availability of key supplies and services; the threat associated with outbreaks of viruses and infectious diseases, including the COVID-19 virus; exchange rate fluctuations; risks relating to attracting and retaining of highly skilled employees; risks inherent in and/or associated with operating in foreign countries and emerging markets; climate change; regulatory investigations, enforcement, sanctions and/or related or other litigation; existence of significant shareholders; uncertain political and economic environments, including in Argentina, Brazil and Chile; risks associated with acquisitions and related integration efforts, including the ability to achieve anticipated benefits, unanticipated difficulties or expenditures relating to integration and diversion of management time on integration; indebtedness; liquidity risks and limited financial resources; funding requirements and availability of financing; exploration, development or mining results not being consistent with the Company's expectations; risks related to the environmental regulation and environmental impact of the Company's operations and products and management thereof; activist shareholders and proxy solicitation matters; reliance on key personnel and reporting and oversight systems, as well as third parties and consultants in foreign jurisdictions; historical environmental liabilities and ongoing reclamation obligations; information technology and cybersecurity risks; risks related to mine closure activities, reclamation obligations, and closed and historical sites; social and political unrest, including civil disruption in Chile; the inability to effectively compete in the industry; financial projections, including estimates of future expenditures and cash costs, and estimates of future production may be unreliable; actual ore mined and/or metal recoveries varying from Mineral Resource and Mineral Reserve estimates, estimates of grade, tonnage, dilution, mine plans and metallurgical and other characteristics; ore processing efficiency; risks associated with the estimation of Mineral Resources and Mineral Reserves and the geology, grade and continuity of mineral deposits including but not limited to models relating thereto; enforcing legal rights in foreign jurisdictions; community and stakeholder opposition; changes in laws, regulations or policies including but not limited to those related to mining regimes, permitting and approvals, environmental and tailings management, labor, trade relations, and transportation; risks associated with the structural stability of waste rock dumps or tailings storage facilities; dilution; risks relating to dividends; conflicts of interest; counterparty and credit risks and customer concentration; the estimation of asset carrying values; challenges or defects in title; internal controls; relationships with employees and contractors, and the potential for and effects of labor disputes or other unanticipated difficulties with or shortages of labor or interruptions in production; compliance with foreign laws; potential for the allegation of fraud and corruption involving the Company, its customers, suppliers or employees, or the allegation of improper or discriminatory employment practices, or human rights violations; compliance with environmental, health and safety regulations and laws; and other risks and uncertainties, including but not limited to those described in the "Risk and Uncertainties" section of the Company's AIF and the "Managing Risks" section of the Company's MD&A for the year ended December 31, 2021, which are available on SEDAR at www.sedar.com under the Company's profile. All of the forward-looking statements made in this document are qualified by these cautionary statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, forecast or intended and readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. 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 information. Accordingly, there can be no assurance that forward-looking information will prove to be accurate and forward-looking information is not a guarantee of future performance. Readers are advised not to place undue reliance on forward-looking information. The forward-looking information contained herein speaks only as of the date of this document. The Company disclaims any intention or obligation to update or revise forward‐looking information or to explain any material difference between such and subsequent actual events, except as required by applicable law.

Lundin Mining Second Quarter 2022 Results (CNW Group/Lundin Mining Corporation)

SOURCE Lundin Mining Corporation

Cision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/July2022/27/c1825.html

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