TORONTO, ONTARIO — (Marketwire) — 10/24/12 — Lundin Mining Corporation („Lundin Mining“ or the „Company“) (TSX: LUN)(OMX: LUMI) today reported net earnings of $37.9 million ($0.07 per share) for the three months ended September 30, 2012 compared to $16.4 million ($0.03 per share) for the three months ended September 30, 2011.
Sales volumes in the current quarter were directly impacted by labour action of dock workers in Portugal and Sweden resulting in lower sales volumes than the prior quarter, with the offsetting positive impact to be realized in the fourth quarter. Unit cash costs(1) of $1.87/lb for copper were in line with expectations after taking into account planned maintenance, and were much lower than the $2.35/lb realized the third quarter of 2011. Unit cash costs for zinc were $0.08/lb for the quarter compared to $0.13/lb in the third quarter of last year.
Paul Conibear, President and CEO, commented, „Our operations performed well this quarter, building on the production increases of the past two quarters of 2012. The Company continues to expect to deliver a strong fourth quarter operationally, with production from all metals now anticipated to be near the high-end of our guidance ranges.
In addition, we continue to be very pleased with the performance at Tenke. For the quarter, production at Tenke achieved another all-time record high for both copper and cobalt, while the Phase II Expansion Project remains on budget and is expected to be substantially completed by year end.
The sustained execution by our operating teams continues to underpin our ability to add value by consistently achieving strong operational performance at all of our mines.“
Operational Highlights
Wholly-owned operations: The Company continued to perform well in the third quarter with production and operational results that were in line with expectations. Financial results for the quarter were affected by labour action by dock workers in Portugal and Sweden. This resulted in a disruption to concentrate shipments in the latter part of September and some of the quarter-s sales were pushed into the fourth quarter.
Tenke: The mine and mill continue to perform very well, achieving record mining, milling and copper production rates. Construction activities on the Phase II expansion are expected to be on budget and substantially completed by the end of 2012; currently, the expansion is approximately 90% complete. The addition of a second sulphuric acid plant is expected to be completed in 2015.
Financial Highlights
Tenke Fungurume
Financial Position and Financing
Corporate Highlights
Outlook
2012 Capital Expenditure Guidance
Capital expenditures for 2012 are expected to be $380 million, $30 million lower than previous guidance as a result of reduced estimated Tenke requirements. Estimated capital investment for the year is as follows:
2012 Production and Cost Guidance
About Lundin Mining
Lundin Mining Corporation is a diversified base metals mining company with operations in Portugal, Sweden, Spain and Ireland, producing copper, zinc, lead and nickel. In addition, Lundin Mining holds a development project pipeline which includes expansion projects at its Neves-Corvo mine, along with a 24% equity stake in the world-class Tenke Fungurume copper/cobalt mine in the Democratic Republic of Congo, which is undergoing expansion to 195,000 tonnes per annum copper cathode production.
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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