VANCOUVER, BC, Feb. 21, 2024 /PRNewswire/ -- (TSX: LUN) (Nasdaq Stockholm: LUMI) Lundin Mining Corporation ("Lundin Mining" or the "Company") today reported its fourth quarter and full year 2023 financial results. Unless stated otherwise, results are presented on a 100% basis and Caserones results are from July 13, 2023.

Jack Lundin, President and CEO commented, "2023 was a milestone year for the Company. We finished the year generating a record $3.4 billion in revenues and achieved our best-ever quarterly and full year copper production which we forecast to further increase by over 15% in 2024. Our 2023 financial performance was strong with $1.4 billion in adjusted EBITDA¹, $345 million in free cash flow from operations¹ and we returned $206 million to our shareholders in dividends.

"The Company's record copper production was driven by our strategic acquisition of a majority interest in Chile's Caserones copper mine, as well as organically through our expansion project at Neves-Corvo, which also contributed to record fourth quarter zinc production for the Company. Going forward, we will be disciplined in our growth plans and capital allocation as we continue to optimize assets and operational efficiencies to drive down costs.

"At Josemaria, we're derisking the project via optimization and trade-off studies that aim to enhance the overall value of the Project. We are concurrently continuing to explore potential partnership opportunities and actively working towards establishing stability agreements in Argentina."

Fourth Quarter Highlights

Copper Production: Consolidated production of 103,337 tonnes of copper in the fourth quarter, a quarterly record for the Company and an increase of over 80% on the same quarter in the previous year.
Other Production: During the quarter, a total of 50,719 tonnes of zinc, 3,729 tonnes of nickel and approximately 44,000 ounces of gold were produced. The zinc expansion project ("ZEP") at Neves-Corvo contributed to record quarterly zinc volumes being produced.
Revenue: $1,060.0 million in the fourth quarter.
Adjusted EBITDA¹: $419.7 million generated during the quarter.
Adjusted Earnings¹: Net earnings attributable to shareholders of the Company were $38.8 million ($0.05 per share) in the fourth quarter with adjusted earnings of $79.7 million ($0.10 per share).
Cash Generation: Cash provided by operating activities¹ was $306.1 million and free cash flow from operations was $116.8 million, which included a working capital build of $56.0 million.

Full Year 2023 Highlights

Copper Production: Record copper production of 314,798 tonnes of copper for the full year which is above the midpoint of originally-published^² 2023 annual copper production guidance.
Revenue: $3,392.1 million for the full year.
Adjusted EBITDA: $1,363.5 million generated during the full year.
Adjusted Earnings: Net earnings attributable to shareholders of the Company were $241.6 million ($0.31 per share) in 2023 and adjusted earnings of $336.2 million ($0.44 per share).


     ___________________________



     
              (1)  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 ("MD&A") for the year ended December 31, 2023 and the Reconciliation of Non-GAAP measures section at the end of this news release.


                 (2) Guidance as outlined in the news release 'Lunding Mining Announces Closing of the Acquisition of Majority interest in the Caserones Mine in Chile and Commitments for New $800 Millon Term Loan' dated July 13, 2023 and 'Lundin Mining Announces 2022 Production Results & Provides 2023 Guidance" dated January 12, 2023.

Cash Generation: During the year, cash provided by operating activities¹ was $1,016.6 million and free cash flow from operations¹ amounted to $345.1 million, which included a working capital build of $7.6 million.
Balance Sheet: To fund the Caserones acquisition, the Company obtained a term loan in July 2023 of a principal amount of $800.0 million with an additional $400.0 million accordion option, maturing July 2026 ("Term Loan"). As at December 31, 2023, the Company had a net debt balance of $946.2 million, excluding lease liabilities.
Growth: The Company acquired a 51% interest in the Caserones copper mine on July 13, 2023 which added an additional 120,000 to 130,000 tonnes of copper² to the Company's production profile on a 100% basis. The acquisition adds another long-life asset in a tier one jurisdiction, which is strategically located in the Vicuña District.
Leadership: Jack Lundin assumed the role of CEO in the fourth quarter of 2023. During the year several senior leadership changes took place to add financial, technical and operational capacity to the team as the Company's head office relocated to Vancouver.

Summary Financial Results

                                                                        Three months ended                 Twelve months ended

                                                                        December 31,                 December 31,



     US$ Millions (except per share amounts)              2023    2022             2023        2022



     Revenue                                           1,060.0   811.4          3,392.1     3,041.2



     Gross profit                                        188.9   155.2            652.4       762.6



     Attributable net earningsa                           38.8   145.6            241.6       426.9



     Net earnings                                         66.8   145.3            315.2       463.5



     Adjusted earnings a,b,c                              79.7   191.5            336.2       482.8



     Adjusted EBITDAb,c                                  419.7   353.7          1,363.5     1,292.5



     Basic and diluted earnings per share ("EPS")(1)      0.05    0.19             0.31        0.56



     Adjusted EPSa,b,c                                    0.10    0.25             0.44        0.63



     Cash provided by operating activities               306.1   156.9          1,016.6       876.9



     Adjusted operating cash flowb                       362.0   289.1          1,024.2       992.9



     Adjusted operating cash flow per shareb              0.47    0.38             1.33        1.30



     Free cash flow from operationsb                     116.8  (35.7)           345.1       381.4



     Free cash flowb                                      61.2 (124.3)            13.5        34.1



     Cash and cash equivalents                           268.8   191.4            268.8       191.4



     Net (debt) cash excluding lease liabilitiesb      (946.2)   16.3          (946.2)       16.3



     Net (debt) cash
              b                     (1,223.4) (10.9)       (1,223.4)     (10.9)


     a. Attributable to shareholders of Lundin Mining Corporation.



     b. 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 year ended December 31, 2023 and the Reconciliation of Non-GAAP Measures section at the end of this news release.



     c. Q2 2023 amounts have been adjusted from those presented in the Company's MD&A for the three and six months ended June 30, 2023.

For the year ended December 31, 2023 the Company generated revenue of $3,392.1 million (2022 - $3,041.2 million), gross profit of $652.4 million (2022 - $762.6 million) and adjusted EBITDA of $1,363.5 million (2022 - $1,292.5 million). Financial results include the contribution from the acquisition of the Caserones copper mine ("Caserones") located in Chile, from the closing date of the transaction on July 13, 2023.
Net earnings attributable to shareholders of the Company were $38.8 million ($0.05 per share) in the fourth quarter, and were impacted by higher interest expenses and increased deferred tax on foreign exchange revaluation of non-monetary assets at the Josemaria Project in Argentina.


     ________________________



     
                (1) 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 ("MD&A") for the year ended December 31, 2023 and the Reconciliation of Non-GAAP measures section at the end of this news release.



     
                (2) Represents Caserones 2024 production guidance as outlined in the news release 'Lundin Mining Provides 2024 Guidance & Announces 2023 Production Results' dated January 14, 2024.

Adjusted earnings¹ attributable to shareholders of the Company for the twelve months ended December 31, 2023 of $336.2 million ($0.44 per share) were $146.6 million lower than the prior year after adjusting for the non-cash revaluation of derivative contracts, fair value adjustments relating to the Caserones acquisition and deferred tax relating to foreign exchange translation and a Chilean mining royalty rate change, among other things.
Cash and cash equivalents as at December 31, 2023 were $268.8 million. Cash provided by operating activities of $1,016.6 million in the year ended December 31, 2023 was used to fund investing activities of $1,674.5 million. Investing activities in the year included $648.6 million net cash paid at closing for the acquisition of Caserones, consisting of $796.6 million upfront cash consideration after adjustments, net of $148 million cash and cash equivalents held by SCM Minera Lumina Copper Chile ("Lumina Copper") at closing on a 100% basis. Cash generated from financing activities was $728.6 million, which was comprised primarily of the proceeds from the Term Loan to finance the Caserones acquisition.
Free cash flow¹ for the three months ended December 31, 2023 of $61.2 million was $185.5 million higher than the prior year comparable period and benefited from the inclusion of Caserones cash flows as well as higher gross profit overall at the operations.
As at February 21, 2024, the Company had a cash balance of approximately $446.7 million and a net debt balance excluding lease liabilities of approximately $851.4 million.

Operational Performance

Total Production

      (Contained metal)a                                                                                2023                                     2022


                                YTD               Q4              Q3              Q2              Q1        Total     Q4      Q3       Q2          Q1



     Copper (t)b                            314,798          103,337           89,942           60,057        61,462 249,659   56,552    63,930      64,096 65,081



     Zinc (t)                               185,161           50,719           49,774           36,115        48,553 158,938   44,308    40,327      41,912 32,391



     Nickel (t)                              16,429            3,729            4,290            4,686         3,724  17,475    4,096     4,379       4,719  4,281



     Gold (koz)b                                149               44               35               34            36     154       36        45          39     34


      Molybdenum (t)b                          2,024              928            1,096



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



     bCandelariaandCaserones production is on a 100%basisCaserones results are from July 13, 2023

Candelaria (80% owned): Candelaria produced, on a 100% basis, 152,012 tonnes of copper, approximately 90,000 ounces of gold and 1.5 million ounces of silver in concentrate during the year. Copper production was consistent with the prior year due to higher throughput being offset by lower grades and recoveries. Gold production was higher than in the prior year due to higher throughput and grades. Both metals were within the most recently disclosed 2023 production guidance ranges. Total production costs were higher than the prior year primarily due to inflationary cost increases and unfavourable foreign exchange. Copper cash cost¹ of $2.07/lb was within the most recently disclosed 2023 cash cost guidance range.

Caserones (51% owned): Caserones produced 65,210 tonnes of copper and 2,024 tonnes of molybdenum on a 100% basis during the year, from the acquisition closing date of July 13, 2023 to the end of the year. Both metals met or exceeded the most recently disclosed 2023 production guidance ranges due to strong throughput, grade and recoveries. Copper cash cost of $1.99/lb was slightly below the low end of the most recently disclosed cash cost guidance range as a result of higher production.

Chapada (100% owned): Chapada produced 45,719 tonnes of copper and approximately 59,000 ounces of gold, with copper production remaining consistent to the prior year and gold production being negatively impacted by lower grade, throughput, and recoveries. Both metals were within the most recently disclosed 2023 production guidance ranges. Total production costs were lower than the prior year due to lower sales volumes. Full year copper cash cost of $2.27/lb was below the low end of the most recently disclosed cash cost guidance.


     ____________________________



     
                (1) 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 ("MD&A") for the year ended December 31, 2023 and the Reconciliation of Non-GAAP measures section at the end of this news release.

Eagle (100% owned): Eagle's production of 16,429 tonnes of nickel and 13,600 tonnes of copper were near the higher ends of recently disclosed 2023 production guidance ranges but lower than that in the prior year due to planned lower grades. Total production costs were lower than the prior year due to lower sales volumes. Nickel cash cost¹ of $2.16/lb was within the most recently disclosed 2023 cash cost guidance range but higher than the prior year as a result of lower grade, lower by-product credits and higher repair and maintenance costs.

Neves-Corvo (100% owned): Neves-Corvo produced 33,823 tonnes of copper and 108,812 tonnes of zinc during the year. Zinc production increased significantly from the prior year due to higher throughput as a result of the zinc expansion project ("ZEP"). Copper production also increased due to higher throughput and production of both metals was within the most recently disclosed 2023 production guidance ranges. Total production costs were lower than in the prior year despite higher sales, primarily due to lower input costs, in particular lower electricity and diesel prices, partially offset by unfavourable foreign exchange. Copper cash cost¹ of $2.37/lb for the year exceeded the most recently disclosed 2023 cash cost guidance range and was higher than in the prior year primarily due to lower zinc by-product credits, higher treatment and refining charges, and unfavourable foreign exchange.

Zinkgruvan (100% owned): Zinc production of 76,349 tonnes was consistent with the prior year, but slightly below the most recently disclosed 2023 production guidance range. Installation of a sequential flotation system during the year achieved improved recoveries, but a longer than anticipated ramp-up limited mill availability and reduced recoveries, limiting production of both lead and zinc. Lead production of 26,284 tonnes was also lower than in the prior year. Total production costs and sales volumes were consistent with the prior year and zinc cash cost¹ of $0.43/lb was below the most recently disclosed 2023 cash cost guidance range but higher than in the prior year, primarily due to lower by-product credits.


     _________________________



     
                (1) 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 ("MD&A") for the year ended December 31, 2023 and the Reconciliation of Non-GAAP measures section at the end of this news release.

Outlook

Production, cash cost, capital expenditures and exploration investment guidance for 2024 remains unchanged from the most recently reported guidance as outlined in the news release 'Lundin Mining Provides 2024 Guidance & Announces 2023 Production Results" dated January 14, 2024.

2024 Production and Cash Cost Guidance

                                                                    Guidancea


     (contained                                      Production                   Cash Cost
      metal)                                                                       ($/lb)b


                Copper (t)       Candelaria                 160,000           1.60 - 1.80
                                  (100%)                   -170,000                   c


                                 Caserones (100%)          120,000
                                                           -130,000           2.60 - 2.80


                                 Chapada                     43,000           1.95 - 2.15
                                                            -48,000                   d


                               
     Eagle                        9,000
                                                            -12,000


                                 Neves-Corvo                 30,000           1.95 - 2.15
                                                            -35,000                   c


                                 Zinkgruvan                   4,000
                                                             -5,000


                                              Total         366,000
                                                           -400,000


                Zinc (t)         Neves-Corvo                120,000
                                                           -130,000


                                 Zinkgruvan                  75,000           0.45 - 0.50
                                                            -85,000                   c


                                              Total         195,000
                                                           -215,000


                Nickel (t)                    Eagle          10,000
                                                            -13,000           2.80 - 3.00


                Gold (koz)       Candelaria                     100
                                  (100%)                       -110


                                 Chapada            55
               -
                                                                 60


                                              Total             155
                                                               -170


                Molybdenum (t)   Caserones (100%)            2,500
                                                             -3,000


     a. Guidance as outlined in the news release 'Lundin Mining Provides 2024 Guidance & Announces 2023 Production Results" dated January 14, 2024.

      b. Cash costs are based on various assumptions and estimates, including but not limited to: production volumes, commodity prices (Cu: $3.75/lb, Zn: $1.10/lb,Pb: $0.90/lb, Au: $1,800/oz, Mo: $20.00/lb, Ag: $23.00/oz ), foreign exchange rates (EUR/USD:1.05, USD/SEK:10.50, USD/CLP:850, USD/BRL:5.00) and
       production costs. Cash cost is a non-GAAP measure - see section 'Non-GAAP and Other Performance Measures' of the Company's Management's Discussion and Analysis for the year ended December 31, 2023 and the Reconciliation of Non-GAAP Measures section at the end of this news release.


     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 $429/oz gold and $4.28/oz to $4.68/oz silver.


     d. Chapada's 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.

2024 Capital Expenditure Guidance^a,b

                                                  ($
                                               millions)


       Candelaria (100% basis)                       300


       Caserones (100% basis)                        205


     
     Chapada                                       110


     
     Eagle                                          25


     
     Neves-Corvo                                   125


     
     Zinkgruvan                                     75


     
     Other


                    Total Sustaining                 840


       Josemaria (expansionary)                      225


                    Total Capital Expenditures     1,065

     a. Guidance as outlined in the news release 'Lundin Mining Provides 2024 Guidance & Announces 2023 Production Results"
      dated January 14, 2024.

     b. Sustaining capital expenditure is a supplementary financial measure, and expansionary capital expenditure is a non-
      GAAP measure - see section 'Non-GAAP and Other Performance Measures' of the Company's Management's Discussion and
      Analysis for the year ended December 31, 2023 and the Reconciliation of Non-GAAP Measures section at the end of this
      news release.

2024 Exploration Investment Guidance

Total exploration expenditure guidance for 2024 is $48.0 million.

Exploration: Exploration drilling campaigns are underway at Caserones, Josemaria, Chapada and Zinkgruvan. Drilling at Caserones is targeting the Angelica target and Caserones sulphide deep target with three rigs. Initial holes are underway at Josemaria's Cumbre Verde target, and additional roads are being developed to gain access to higher priority areas. At Chapada, drilling is focused on higher grade corridors within known areas of mineralization that could contribute higher grades to the mine plan. At Zinkgruvan, drilling with six rigs is focused on extending multiple deposits, with the priority on the high-grade Borta Barkom area.

Senior Leadership Appointments

The Company would also like to announce the executive appointments of Patrick Merrin as Executive Vice President, Technical Services and Joel Adams as Vice President, Commercial.

Patrick Merrin

Mr. Merrin was appointed Executive Vice President, Technical Services and brings over 25 years of international experience in mining and metals including 10 years in executive and senior technical, project and operating roles. Mr. Merrin was appointed CEO of Copper Mountain Mining prior to its acquisition in 2024. He has also worked as Senior Vice President Canadian Operations with Newcrest Mining, COO of Mining with the Washington Companies and Senior Vice President of Canadian Operations with Goldcorp. Earlier in his career he also held positions with Hudbay Minerals, Xstrata and Anglo American.

Mr. Merrin holds a Bachelor of Chemical Engineering from McGill University, a Master of Business Administration from the Rotman School of Business at the University of Toronto and is a registered Professional Engineer (Ontario).

Joel Adams

Mr. Adams was appointed Vice President, Commercial and will lead Lundin Mining's commercial strategy. He has more than 15 years of experience as a base metal trader and in logistics management.

Prior to joining Lundin Mining, Joel was a Portfolio Manager with Balyasny Asset Management where he was focused on commodity trading. In addition, Mr. Adams was a senior base metals trader at Trafigura and prior to that held diverse roles within Glencore's base metals business from 2010 to 2020 as a senior member of the copper division in Switzerland.

Joel holds a Bachelor's degree in International Business from the University of Colorado.

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, nickel and gold.

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 February 21, 2024 at 15:30 Pacific Standard 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 by Arman Barha, P.Eng., Vice President, Technical Services, a "Qualified Person" under NI 43-101. Mr. Barha has verified the data disclosed in this release and no limitations were imposed on his verification process.

Reconciliation of 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 year ended December 31, 2023 which is available on SEDAR+ at www.sedarplus.ca.

Cash Cost per Pound and All-in Sustaining Costs can be reconciled to Production Costs on the Company's Consolidated Statement of Earnings as follows:

                                                                             Twelve months ended December 31, 2023



              
                Operations                 Candelaria Caserones                       Chapada          Eagle    Neves-Corvo     Zinkgruvan



              ($000s, unless otherwise noted)            (Cu)       (Cu)                           (Cu)           (Ni)         (Cu)           (Zn)             Total



              Sales volumes (Contained metal):



              Tonnes                                     144,473     66,075                         43,761          13,339          32,054          65,344



              Pounds (000s)                              318,508    145,670                         96,476          29,407          70,667         144,059



              Production costs                                                                                                                             2,086,108



              Less: Royalties and other                                                                                                                     (66,237)



              Inventory fair value adjustment                                                                                                               (39,945)


                                                                                                                                                            1,979,926



              Deduct: By-product credits                                                                                                                   (699,915)



              Add: Treatment and refining                                                                                                                    183,328



              Cash cost                                  660,160    290,553                        219,278          63,457         167,424          62,467       1,463,339



              
                Cash cost per pound ($/lb)       2.07       1.99                           2.27            2.16            2.37            0.43



              Add: Sustaining capital                    380,112     83,880                         72,291          22,201         102,621          53,358



              Royalties                                             15,820                          8,568          22,994           3,949



              Reclamation and                              9,258      2,560                          7,836          11,331           5,387           3,744
    other closure
    accretion and depreciation



              Leases & other                              13,325     47,944                          4,999           4,100             553             427



              All-in sustaining cost                   1,062,855    440,757                        312,972         124,083         279,934         119,996



              
                AISC per pound ($/lb)            3.34       3.03                           3.24            4.22            3.96            0.83

                                                                                       Twelve months ended December 31, 2022



     
                Operations                                  Candelaria Caserones(1)                       Chapada         Eagle   Neves-Corvo    Zinkgruvan



     ($000s, unless otherwise noted)                             (Cu)        (Cu)                             (Cu)          (Ni)        (Cu)          (Zn)            Total



     Sales volumes (Contained metal):



     Tonnes                                                      147,251                                      45,563         14,427         31,592         65,684



     Pounds (000s)                                               324,633                                     100,449         31,806         69,648        144,808



     Production costs                                                                                                                                             1,661,358



     Less: Royalties and other                                                                                                                                     (53,785)


                                                                                                                                                                   1,607,573



     Deduct: By-product                                                                                                                                           (656,534)



     Add: Treatment and refining                                                                                                                                    124,841



     Cash cost                                                   637,486                                     209,238         25,168        158,351         45,637      1,075,880



     
                Cash cost per pound ($/lb)                        1.96                                        2.08           0.79           2.27           0.32



     Add: Sustaining capital                                     389,731                                     104,711         16,413         71,222         48,144



     Royalties                                                                                               12,298         33,281          4,169



     Reclamation and other closure accretion and depreciation      8,001                                       7,388         18,512          1,562          3,937



     Leases & other                                               11,313                                       3,988          2,404          1,404            665



     All-in sustaining cost                                    1,046,531                                     337,623         95,778        236,708         98,383



     
                AISC per pound ($/lb)                             3.22                                        3.36           3.01           3.40           0.68


     
     (1) Caserones results are from July 13, 2023 to December 31, 2023.

                                                                                     Three months ended December 31, 2023



     
                Operations                                  Candelaria Caserones                      Chapada          Eagle    Neves-Corvo     Zinkgruvan



     ($000s, unless otherwise noted)                             (Cu)       (Cu)                          (Cu)           (Ni)         (Cu)           (Zn)             Total



     Sales volumes (Contained metal):



     Tonnes                                                       38,888     35,690                        13,080           3,105           9,054          17,316



     Pounds (000s)                                                85,733     78,683                        28,836           6,845          19,961          38,176



     Production costs                                                                                                                                               648,037



     Less: Royalties and other                                                                                                                                     (24,520)



     Inventory fair value adjustment                                                                                                                                (7,760)


                                                                                                                                                                     615,757



     Deduct: By-product                                                                                                                                           (204,164)



     Add: Treatment and refining                                                                                                                                     57,938



     Cash cost                                                   152,276    183,687                        54,108          16,229          39,218          24,013         469,531



     
                Cash cost per pound                               1.78       2.33                          1.88            2.37            1.96            0.63



     Add: Sustaining capital                                      79,316     55,031                        19,858           6,548          28,070          10,546



     Royalties                                                               8,270                         2,174           5,003           1,081



     Reclamation and other closure accretion and depreciation      2,158      1,427                         2,047           2,620           1,305             933



     Leases & other                                                2,901     25,715                         1,131           1,101             106             103



     All-in sustaining cost                                      236,651    274,130                        79,318          31,501          69,780          35,595



     
                AISC per pound ($/lb)                             2.76       3.48                          2.75            4.60            3.50            0.93

                                                                                    Three months ended December 31, 2022



     
                Operations                                  Candelaria Caserones                     Chapada          Eagle   Neves-Corvo    Zinkgruvan



     ($000s, unless otherwise noted)                             (Cu)       (Cu)                         (Cu)           (Ni)        (Cu)          (Zn)            Total



     Sales volumes (Contained metal):



     Tonnes                                                       33,561                                 12,037           3,239          6,351         17,635



     Pounds (000s)                                                73,990                                 26,537           7,141         14,001         38,878



     Production costs                                                                                                                                           450,927



     Less: Royalties and other                                                                                                                                 (15,664)


                                                                                                                                                                 435,263



     Deduct: By-product                                                                                                                                       (168,620)



     Add: Treatment and refining                                                                                                                                 33,897



     Cash cost                                                   186,628                                 51,782          17,169         32,462         12,499        300,540



     
                Cash cost per pound                               2.52                                   1.95            2.40           2.32           0.32



     Add: Sustaining capital                                     117,174                                 41,299           5,968         22,086         16,607



     Royalties                                                                                           3,137           9,152          3,185



     Reclamation and other closure accretion and depreciation      1,999                                  1,855           4,403            481            902



     Leases & other                                                4,360                                    932             638            835            118



     All-in sustaining cost                                      310,161                                 99,005          37,330         59,049         30,126



     
                AISC per pound ($/lb)                             4.19                                   3.73            5.23           4.22           0.77

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

                                                                            Three months ended                 Twelve months ended

                                                                            December 31,                 December 31,



     ($thousands)                                           2023      2022            2023         2022



     Net earnings                                         66,753   145,295         315,249      463,533



     Add back:



     Depreciation, depletion and amortization            223,056   142,710         653,596      554,750



     Finance income and costs                             34,891    16,664         102,699       64,185



     Income taxes                                        102,616   (2,347)        216,599      134,628


                                                          427,316   302,322       1,288,143    1,217,096



     Unrealized foreign exchange loss                      2,769   (3,836)          1,224       21,164



     Unrealized losses (gains) on derivative contracts  (19,309) (62,971)         21,932     (62,971)



     OjosdelSalado sinkhole expenses                       1,687    55,482          16,922       63,271



     Loss (income) from equity investment in associates                               60      (3,297)



     Caserones inventory fair value adjustment             7,760                   39,945



     Ore stockpile inventory write-down                            62,546                      62,546



     Gain on disposal of subsidiary                                              (5,718)    (16,828)



     Other                                                 (493)      173           1,040       11,525



     Total adjustments - EBITDA                          (7,586)   51,394          75,405       75,410



     
                Adjusted EBITDA                        419,730   353,716       1,363,548    1,292,506

Adjusted earnings and adjusted earnings per share can be reconciled to Net Earnings Attributable to Lundin Mining Shareholders on the Company's Consolidated Statement of Earnings as follows:

                                                                                              Three months ended                      Twelve months ended

                                                                                              December 31,                      December 31,



     ($thousands, except share and per share amounts)                          2023        2022               2023        2022



     Net earnings
               attributable to Lundin Mining shareholders      38,797     145,562            241,562     426,851



     Add back:



     Total adjustments - EBITDA                                             (7,586)     51,394             75,405      75,410



     Tax effect on adjustments                                              (2,987)      8,214           (26,925)      (797)



     Deferred tax expense due to change in tax rate                          14,500                        40,200



     Deferred tax arising from foreign exchange translation                  41,168    (14,469)            28,841    (20,733)



     Non-controlling interest on adjustments                                (4,221)        829           (22,886)      2,026



     Total adjustments                                                       40,874      45,967             94,635      55,906



     
                Adjusted earnings                                          79,671     191,529            336,197     482,757





     
                Basic weighted average number of shares outstanding   773,476,216 770,804,446        772,532,260 762,518,753





     Net earnings
               attributable to shareholders                      0.05        0.19               0.31        0.56



     Total adjustments                                                         0.05        0.06               0.13        0.07



     
                Adjusted earnings per share                                  0.10        0.25               0.44        0.63

Free Cash Flow from Operations and Free Cash Flow can be reconciled to Cash provided by Operating Activities on the Company's Consolidated Statement of Earnings as follows:

                                                                       Three months ended                  Twelve months ended

                                                                       December 31,                  December 31,



     ($thousands)                                      2023      2022             2023         2022



     Cash provided by operating activities          306,081   156,890        1,016,612      876,889



     Sustaining capital expenditures              (203,827) (204,686)        (727,224)   (639,831)



     General exploration and business development    14,500    12,094           55,692      144,353



     
                Free cash flow from operations    116,754  (35,702)         345,080      381,411



     General exploration and business development  (14,500) (12,094)        (55,692)   (144,353)



     Expansionary capital expenditures             (41,082) (76,485)       (275,913)   (202,993)



     
                Free cash flow                     61,172 (124,281)           13,475       34,065

Adjusted Operating Cash Flow and Adjusted Operating Cash Flow per Share can be reconciled to Cash Provided by Operating Activities on the Company's Consolidated Statement of Earnings as follows:

                                                                             Three months ended                        Twelve months ended

                                                                             December 31,                        December 31,



     ($thousands, except share and per share amounts)           2023        2022               2023        2022



     Cash provided by operating activities                   306,081     156,890          1,016,612     876,889



     Changes in non-cash working capital items                55,965     132,167              7,605     116,056



     
                Adjusted operating cash flow               362,046     289,057          1,024,217     992,945





     Basic weighted average number of shares outstanding 773,476,216 770,804,446        772,532,260 762,518,753



     
                Adjusted operating cash flow per share       $0.47        0.38               1.33        1.30

Net (debt) cash and Net (debt) cash excluding lease liabilities can be reconciled to Debt and Lease Liabilities, Current Portion of Debt and Lease Liabilities and Cash and Cash Equivalents on the Company's Consolidated Statement of Earnings as follows:


     ($thousands)                                             December 31, 2023 December 31,
                                                                                  2022



     Debt and lease liabilities                                     (1,273,162)     (27,179)



     Current portion of total debt and lease liabilities              (212,646)    (170,149)



     Less deferred financing fees (netted in above)                     (6,374)      (4,926)


                                                                     (1,492,182)    (202,254)



     Cash and cash equivalents                                          268,793       191,387



     
                Net (debt) cash                                   (1,223,389)     (10,867)



     Lease liabilities                                                  277,208        27,166



     
                Net (debt) cash excluding lease liabilities         (946,181)       16,299

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 labour; 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: global financial conditions, market volatility and inflation, including pricing and availability of key supplies and services; 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; volatility and fluctuations in metal and commodity demand and prices; significant reliance on assets in Chile; reputation risks related to negative publicity with respect to the Company or the mining industry in general; delays or the inability to obtain, retain or comply with permits; risks relating to the development of the Josemaria Project; health and safety laws and regulations; risks associated with climate change; risks relating to indebtedness; economic, political and social instability and mining regime changes in the Company's operating jurisdictions, including but not limited to those related to permitting and approvals, nationalization or expropriation without fair compensation, environmental and tailings management, labour, trade relations, and transportation; inability to attract and retain highly skilled employees; risks inherent in and/or associated with operating in foreign countries and emerging markets, including with respect to foreign exchange and capital controls; project financing risks, liquidity risks and limited financial resources; health and safety risks; compliance with environmental, unavailable or inaccessible infrastructure, infrastructure failures, and risks related to ageing infrastructure; changing taxation regimes; the inability to effectively compete in the industry; 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; risks related to mine closure activities, reclamation obligations, environmental liabilities and closed and historical sites; reliance on key personnel and reporting and oversight systems, as well as third parties and consultants in foreign jurisdictions; information technology and cybersecurity risks; 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; 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; community and stakeholder opposition; regulatory investigations, enforcement, sanctions and/or related or other litigation; financial projections, including estimates of future expenditures and Cash Costs, and estimates of future production may not be reliable; enforcing legal rights in foreign jurisdictions; risks associated with the use of derivatives; risks relating to joint ventures and operations; environmental and regulatory risks associated with the structural stability of waste rock dumps or tailings storage facilities; exchange rate fluctuations; 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; risks relating to dilution; risks relating to payment of dividends; counterparty and customer concentration risks; activist shareholders and proxy solicitation matters; estimation of asset carrying values; relationships with employees and contractors, and the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; conflicts of interest; existence of significant shareholders; challenges or defects in title; internal controls; risks relating to minor elements contained in concentrate products; the threat associated with outbreaks of viruses and infectious diseases; and other risks and uncertainties, including but not limited to those described in the "Risks and Uncertainties" section of the Company's Annual Information Form for the year ended December 31, 2023 and the "Managing Risks" section of the Company's MD&A for the year ended December 31, 2023, which are available on SEDAR+ at www.sedarplus.ca 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.

CONTACT: Stephen Williams, Vice President, Investor Relations +1 604 806 3074; Robert Eriksson, Investor Relations Sweden: +46 8 440 54 40

View original content:https://www.prnewswire.co.uk/news-releases/lundin-mining-fourth-quarter-and-full-year-2023-results-302068124.html

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