Filo (FIL) Corporate Presentation summary

Acquisition and transaction overview

• BHP and Lundin Mining will jointly acquire all outstanding Filo shares not already owned, valuing Filo at C$4.5 billion, or C$33.00 per share, with a 32.2% premium to the 30-day VWAP and 12.2% to the last close before announcement.

• BHP's consideration is up to C$1,908 million in cash; Lundin Mining's is up to C$859 million in cash and C$1,289 million in shares.

• Interim financing of C$115 million was provided equally by BHP and Lundin Mining.

• The acquisition and formation of a joint venture with the Josemaria project are inter-conditional, with closing expected in Q1 2025.

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 hosts indicated resources of 3.2 billion lbs Cu, 4.6 million oz Au, and 160.4 million oz Ag; inferred resources add 1.3 billion lbs Cu, 2.1 million oz Au, and 50.3 million oz Ag.

• Proven and probable reserves total 259.6 Mt at 0.39% Cu, 0.34 g/t Au, and 16.0 g/t Ag.

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

• Average annual production: 66 kt Cu, 168 koz Au, 9.26 Moz Ag over a 13-year mine life; C1 cash cost of US$1.54/lb CuEq.

Exploration and growth potential

• Drilling has extended continuous mineralization over 5km strike, 0.8km width, and up to 1.5km depth.

• Highlight drill holes include 858m @ 1.80% CuEq (FSDH041), 1,224m @ 1.26% CuEq (FSDH054), and 1,338m @ 1.33% CuEq (FSDH055C).

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

• The Aurora Zone and surrounding areas show bulk porphyry-style mineralization with high-grade intercepts and significant silver zones.