TORONTO, ONTARIO — (Marketwired) — 10/30/13 — Lundin Mining Corporation (TSX: LUN)(OMX: LUMI) („Lundin Mining“ or the „Company“) today reported net earnings of $27.9 million ($0.05 per share) for the quarter ended September 30, 2013. Cash flows of $27.4 million were generated from operations, not including the Company-s attributable cash flows of $42.2 million from Tenke Fungurume.
Paul Conibear, President and CEO commented, „Our European operations continued to perform generally in-line with expectations and as we enter into the fourth quarter we are pleased to be able to modestly increase production guidance for copper, zinc and nickel.
Tenke experienced another excellent quarter, despite power interruptions in September, which highlights the excellent operating performance of the asset. Year-to-date cash distributions received from Tenke now total over $110 million.
At Eagle, construction has ramped up very well, with commissioning expected in the fourth quarter of 2014. We look forward to ending the year with a strong operating performance, well positioned for the future with our conservative balance sheet further improved by capital cost constraint measures and the recent completion of a flexible, low cost debt financing package.“
Operational Highlights
Wholly-owned operations: Copper, zinc, and lead production were largely in-line with expectations for the quarter, with total zinc production at its highest levels in years. Production costs at Neves-Corvo were higher than planned. At Zinkgruvan, excellent cash costs in the quarter brought year-to-date results back in line with expectations. At Aguablanca, both metal production and costs continued to be better than expectations. As a result, production guidance has been updated to increase nickel and copper production at Aguablanca. As well, guidance for copper production at Zinkgruvan and zinc production at Neves-Corvo have also been increased. Cash cost guidance for Neves-Corvo has been increased to $1.90/lb1 of copper (from $1.80/lb) and for Aguablanca, it has been reduced to $4.50/lb of nickel (from $5.00/lb).
Tenke: Tenke continued to perform well, achieving the second best quarter on record for milling volumes, despite experiencing power interruptions in September which impacted operating rates. While the situation has improved, Freeport-McMoRan Copper & Gold Inc. („Freeport“) is working closely with its power provider and DRC authorities to address the situation.
Total production from the Company-s assets including attributable share of Tenke:
Financial Highlights
Financial Performance
2013 Capital Expenditure Guidance
Capital expenditures for 2013, excluding Eagle, are expected to be $210 million, a $75 million reduction from original guidance. The Company and Freeport have implemented initiatives to reduce or defer capital investments until metal markets improve. Capital expenditures for the Eagle Project in 2013 are expected to be $110 million (from date of acquisition). Details of the total estimated capital expenditures of $320 million for 2013 are described below:
2013 Exploration Guidance
Total exploration expenditures for 2013 (excluding Tenke) are estimated to be $33 million, including Eagle exploration expenditures of $3 million (original guidance, without Eagle – $38 million).
About Lundin Mining
Lundin Mining Corporation is a diversified Canadian base metals mining company with operations in Portugal, Sweden and Spain and an advanced development project in the US, 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 Freeport Cobalt Oy business, which includes a cobalt refinery located in Kokkola, 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. This document includes, but is not limited to, forward looking statements with respect to the Company-s estimated full year metal production, C1 cash costs and capital expenditures. These estimates and other forward -looking statements are based on a number of assumptions and 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 the estimated cash costs, the timing and amount of production from the Eagle Project, the cost estimates for the Eagle Project, 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 may also be based on other 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 +1 416 348 0303 (FAX)
Lundin Mining Corporation Robert Eriksson Investor Relations Sweden +46 8 545 015 50
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