TORONTO, ONTARIO — (Marketwired) — 04/24/13 — Lundin Mining Corporation (TSX: LUN)(OMX: LUMI) („Lundin Mining“ or the „Company“) today reported net earnings of $50.1 million ($0.09 per share) for the quarter ended March 31, 2013. Cash flows of $45.8 million were generated from operations, not including the Company-s attributable cash flows of $43.6 million from Tenke Fungurume.
Paul Conibear, President and CEO commented, „Our focus on operational execution continues in 2013. We remain on track to meet our annual production guidance targets and are well positioned to continue to improve our strong balance sheet throughout the year.
Tenke was clearly the highlight of the quarter, as copper production set another quarterly record and we received cash returns of $45 million from the operation. Based on current metal prices and operating conditions, we expect to continue to receive meaningful amounts of cash distributions from Tenke throughout the remainder of the year.
We are also pleased to announce the closing of the acquisition of the Kokkola cobalt refinery during the quarter. The acquisition will enable immediate entry and value-added vertical integration to the refined cobalt market and will help maximize the value of the cobalt resources at Tenke.“
Operational Highlights
Wholly-owned operations: Production and costs were in line with expectations for copper and nickel for the quarter. Zinc and lead production were lower than expected and Zinkgruvan-s cash costs were higher than expected for the quarter; however, the Company expects to make up for this shortfall in the balance of the year.
Tenke: Tenke achieved a quarterly record in mining, milling and copper production.
Financial Highlights
Tenke Fungurume
Corporate Highlights
The Company holds an effective 24% ownership interest in the joint venture, with Freeport holding a 56% ownership interest and being the operator of the joint venture, and La Generale des Carrieres et des Mines, the Congolese state mining company, holding a 20% interest in Kokkola.
The initial consideration paid was $355 million, which included $34 million of acquired cash. Under the terms of the agreement, there is the potential for additional consideration of up to $110 million over a period of three years, contingent upon the achievement of revenue-based performance targets. Lundin Mining-s share of initial acquisition costs, including acquired cash, was $116.3 million based on a 30%/70% split with Freeport, which amounts will be repaid prior to any shareholder advances.
Financial Position and Financing
Outlook
2013 Production and Cost Guidance
2013 Capital Expenditure Guidance
Capital expenditures for 2013 are expected to be $285 million (unchanged from previous guidance), as described below:
About Lundin Mining
Lundin Mining Corporation is a diversified base metals mining company with operations in Portugal, Sweden and Spain, producing copper, zinc, lead and nickel. In addition, Lundin Mining holds a 24% equity stake in the world-class Tenke Fungurume copper/cobalt mine in the Democratic Republic of Congo and in the Kokkola cobalt refinery located in Finland.
On Behalf of the Board,
Paul Conibear, President and CEO
Forward Looking Statements
Certain of the statements made and information contained herein is „forward-looking information“ within the meaning of the Ontario Securities Act. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to foreign currency fluctuations; risks inherent in mining including environmental hazards, industrial accidents, unusual or unexpected geological formations, ground control problems and flooding; risks associated with the estimation of mineral resources and reserves and the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the Company-s expectations; the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; commodity price fluctuations; uncertain political and economic environments; changes in laws or policies, foreign taxation, delays or the inability to obtain necessary governmental permits; and other risks and uncertainties, including those described under Risk Factors Relating to the Company-s Business in the Company-s Annual Information Form and in each management-s discussion and analysis. Forward-looking information is, in addition, based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long-term price of copper, zinc, lead and nickel; that the Company can access financing, appropriate equipment and sufficient labour and that the political environment where the Company operates will continue to support the development and operation of mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements.
Contacts: Lundin Mining Corporation Sophia Shane Investor Relations North America +1-604-689-7842
Lundin Mining Corporation John Miniotis Senior Business Analyst +1-416-342-5565
Lundin Mining Corporation Robert Eriksson Investor Relations Sweden +46 8 545 015 50
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