Lundin Mining (LUN) CMD 2026 summary

Strategic transformation and growth focus

• Shifted to a copper-focused growth strategy, acquiring major South American assets and forming a 50:50 Vicuña JV with BHP, aiming for top-ten global copper producer status and targeting over 500,000 tons/year copper production over the next decade.

• Portfolio transformed through acquisitions (Josemaria, Caserones, Filo Corp) and divestitures, increasing copper's share of revenue from 63% in 2022 to 85% in 2025, with revenue rising from $3B to $4.1B and EBITDA margins improving from 40% to 46%.

• Achieved 19% growth in copper production per share and 330% growth in gold mineral resources per share from 2022 to 2026.

• Operational discipline and safety performance improved, with industry-leading safety metrics, zero fatalities, and record low TRIF of 0.15 in Q1 2026.

• Sustainability initiatives include 100% renewable power sourcing, first CSRD-compliant report, emissions reduction, and community engagement.

Operational excellence and efficiency

• Full Potential program implemented across all sites, delivering cost reductions (e.g., Chapada: $11.8 to $10.6/tonne, Caserones: $20 to $17.9/tonne, Candelaria: $19.9 to $19.03/tonne) and up to 11% mine site cost reduction.

• Chapada achieved 11% cost reduction, improved fuel efficiency, and reduced strip ratio by 29%; Candelaria and Caserones saw similar operational gains.

• Saúva project at Chapada sanctioned, adding 15,000 tons copper and 45,000 oz gold annually from 2029, with CapEx reduced to $110M.

• Caserones cathode plant utilization increased from 55% to 80%, targeting 30,000–40,000 tons cathode in 2026, with further debottlenecking planned.

• Candelaria’s underground expansion and insourcing expected to boost free cash flow by $56M–$90M/year and enhance productivity and mine life.

Vicuña District and major growth projects

• Vicuña District, a 50:50 JV with BHP, is a supergiant copper-gold-silver system, targeting peak annual output of 500,000 tons copper, 800,000 oz gold, and 20M oz silver, with a 25-year average of 400,000 tons copper and 700,000 oz gold.

• Multi-stage development: Josemaria (stage 1), Filo del Sol oxides (stage 2), and Filo sulfides (stage 3), with Stage 1 capex at $7.1B and Stages 2 & 3 adding $11.1B.

• RIGI application approved, granting 40 years of stability and export benefits; project sanction decision expected by year-end.

• Los Helados acquisition (31%) adds high-grade resource and synergy potential with Caserones; scoping study underway.

• Exploration ongoing across district, with significant upside from underexplored targets and further resource growth potential.