Lundin Mining Corporation has provided the production guidance for the three-year period of 2022 through 2024, as well as cash cost, capital and exploration expenditure forecasts for 2022.

Highlights

Copper production is to increase to 258 000 – 282 000 t on a consolidated basis in 2022.

Zinc production is forecast to increase to 188 000 – 203 000 t in 2022 as the Neves-Corvo Zinc Expansion Project (ZEP) ramps up and on an improved near-term production profile at Zinkgruvan.

Gold production is forecast to be 153 000 – 163 000 oz in 2022, of which approximately 85 000 oz, at the midpoint of guidance, are unencumbered and to receive full market pricing.

Nickel production is moderate to 15 000 – 18 000 t in 2022 with priority on increasing Eagle East ore.

Production outlook 2022 – 2024

Candelaria

Copper production for the next three years is forecast to increase over that of 2021, primarily on improved copper head grades and achievement of planned processing rates as initiatives to debottleneck the Candelaria plant pebble crushing circuit are realised in early 2023. From the Candelaria opencast, ore mining is to continue primarily from the Phase 10 pushback in 2022, with initial ore production from the Phase 11 pushback during the year. In 2023 and 2024, ore is to be mined primarily from Phase 11. Over the guidance period, total mill throughput is forecast to range between 27 – 28 million tpy. Debottlenecking initiatives of the Candelaria plant pebble crushing circuit will increase mill capacity starting in early 2023 and, based on the planned mill feed blend and the ore hardness throughput model, annual throughput is expected to exceed 28 million tpy, commencing in 2025.

In 2022 and 2023, Candelaria opencast ore is forecast to contribute approximately 16 million tpy to the mill feed, increasing to approximately 18 million tpy in 2024. The underground mines are forecast to contribute approximately 8 million tpy of ore, with stockpile ore comprising the balance of the mill feed.

Chapada

Copper production guidance is consistent with the prior outlook, while gold production guidance has been increased for 2022 on refinement of near-term operating plans. Production expectations are based on the current 24 million tpy throughput capacity over the guidance period with annual changes driven primarily by the forecast grade profile. Chapada’s copper production is forecast to increase in 2022 to 53 000 – 58 000 t. Copper production is expected to be modestly greater in 2H22, primarily due to the forecast grade profile and seasonal operating considerations. Gold production guidance is 70 000 – 75 000 oz for 2022 and, similarly, modestly weighted to 2H22 due to the forecast grade profile and seasonal operating considerations. All of Chapada’s gold production remains unencumbered and is to receive full market pricing.

Eagle

Nickel production guidance is modestly lower for 2022 and consistent for 2023, compared to the prior outlook, while copper production guidance is consistent for 2022 and for 2023. Eagle’s nickel production is forecast to be 15 000 – 18 000 t in 2022. Nickel production is expected to be greater in 2H22, primarily due to the forecast grade profile. Copper production guidance is 15 000 – 18 000 t for 2022, modestly weighted to 2H22 on the forecast grade profile.

Neves-Corvo

Copper production guidance has increased for 2022 and 2023 compared to the prior outlook, on refinement of the near-term mine plan positively impacting the forecast copper head grade. Zinc production guidance is modestly lower in 2022 and 2023 compared to the prior outlook, on the metal recovery assumption for these years. Construction of the ZEP is progressing on schedule and on budget to be substantially complete by the end of 2021. Neves-Corvo’s copper production is forecast to increase to 33 000 – 38 000 t in 2022, modestly weighted to 1H21 owing to the forecast grade profile. Zinc production is guided to increase over 65% in 2022, to 110 000 – 120 000 t, as production ramp up from the ZEP is completed in 1H22. With the ZEP contributing a full year of production at design throughput, 2023 zinc production is forecast to be 142 000 – 152 000 t.

Zinkgruvan

Zinc production guidance has increased 14% for 2022 and 11% for 2023, at the midpoint of the ranges compared to the prior outlook, with minor refinement of operating plans forecasting higher head grades and improved metal recoveries. Copper production guidance for 2022 and 2023 is generally consistent with the prior outlook. Zinc production is forecast to increase in 2022 to 78 000 – 83 000 t.

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