VANCOUVER, BC, April 17, 2024 /PRNewswire/ -- (TSX: LUN) (Nasdaq
Stockholm: LUMI) Lundin Mining Corporation ("Lundin Mining"
or the "Company") is pre-announcing certain items impacting the
Company's quarterly earnings, adjusted earnings before interest,
taxes, depreciation and amortization ("adjusted
EBITDA")1, adjusted earnings1 and adjusted
earnings per share1.
Foreign Exchange and Derivatives
Items of significant impact in the first quarter 2024 are
expected to include unaudited foreign exchange and trading gains on
debt and equity investments supporting the capital funding for the
Josemaria Project of approximately $8
million on a pre-tax basis, unaudited realized gains on
foreign exchange and diesel derivative contracts of approximately
$4 million on a pre-tax basis and
unaudited realized gains on foreign exchange of approximately
$11 million on a pre-tax basis,
primarily relating to payments in Chilean pesos during the
quarter.
In the first quarter 2024 the Company is also expected to
recognize certain non-cash items that will impact the Company's
earnings but not adjusted EBITDA, adjusted earnings or adjusted
earnings per share. These include an unaudited non-cash unrealized
gain on foreign exchange of approximately $16 million on a pre-tax basis, primarily due to
the weakening of the Chilean peso during the quarter, and an
unaudited non-cash unrealized loss of approximately $53 million on a pre-tax basis related to the
mark-to-market valuation of the Company's unexpired foreign
exchange and diesel derivative contracts. Unexpired foreign
exchange derivative contracts include zero cost collar contracts of
$921 million (equivalent to 898
billion Chilean pesos) entered into during the first quarter 2024
and expiring in the remainder of 2024 through 2026.
Provisional Pricing Adjustments
Revenue in the first quarter 2024 is expected to be positively
impacted by unaudited provisional pricing adjustments on prior
period concentrate sales of approximately $2
million on a pre-tax basis. These adjustments primarily
include upward adjustments in relation to copper and nickel sales,
partially offset by downward adjustments on molybdenum and zinc
sales.
The financial results for the three months ended March 31, 2024, will be published on Wednesday,
May 1, 2024.
About Lundin Mining
Lundin Mining is a diversified Canadian base metals mining
company with operations and projects in Argentina, Brazil, Chile, Portugal, Sweden and the
United States of America, primarily producing copper, zinc,
gold and nickel.
The information was submitted for publication, through the
agency of the contact persons set out below on April 17, 2024
at 14:30 Pacific Time.
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1 These measures are
non-GAAP measures. 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.com.
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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 "Managing Risks" section of the Company's MD&A and the
"Risks and Uncertainties" section of the Company's Annual
Information Form for the year ended December
31, 2023, which are available on SEDAR+ at www.sedarplus.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.
Stephen Williams, Vice President,
Investor Relations: +1 604 806 3074; Robert
Eriksson, Investor Relations Sweden: +46 8 440 54 50
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