Filo (FIL) Corporate Presentation summary

Acquisition and transaction overview

• BHP and Lundin Mining to jointly acquire all outstanding Filo shares for C$33.00/share, valuing Filo at C$4.5 billion, with a 32.2% premium to the 30-day VWAP and 12.2% to the last closing price as of July 29, 2024.

• Interim financing of C$115 million provided equally by BHP and Lundin Mining, with transaction closing expected in Q1 2025.

• A joint venture will be formed, combining Filo del Sol and the Josemaria project, with completion of each transaction interdependent.

Project and resource highlights

• Filo del Sol is a high-sulphidation epithermal copper-gold-silver deposit in the Vicuña district, straddling Argentina and Chile.

• The project features large-scale, continuous mineralization over 5km strike, 0.8km width, and up to 1.5km depth, with significant high-grade zones.

• 2023 PFS (oxides only) shows after-tax NPV (8%) of US$1.3bn, IRR of 20%, initial capital US$1.8bn, and payback in 3.4 years.

• Proven and probable reserves: 259.6 Mt at 0.39% Cu, 0.34 g/t Au, 16.0 g/t Ag, containing 2.2 Blbs Cu, 2.87 Moz Au, and 133 Moz Ag.

• Indicated resources: 432.6 Mt at 0.33% Cu, 0.33 g/t Au, 11.5 g/t Ag; inferred: 211.6 Mt at 0.27% Cu, 0.31 g/t Au, 7.4 g/t Ag.

Exploration and growth potential

• Outstanding drill results include intercepts such as 858m @ 1.80% CuEq and 1,338m @ 1.33% CuEq, with a high-grade silver zone (64m @ 1,214 g/t Ag).

• 2024 exploration program targets 30,000–35,000m of drilling with 9 rigs, focusing on step-outs and new discoveries across 11 target zones.

• Magnetotelluric surveys confirm ~5km of continuous mineralization, supporting further resource growth.