Lundin Mining (LUN) Q1 2026 earnings summary

Executive summary

• Achieved strong operational and financial performance in Q1 2026, with copper production of 79,934 tonnes at a consolidated cash cost of $1.66/lb and revenue of $1,159 million, generating $380 million in free cash flow and improving net cash to $250 million.

• Completed sale of Eagle Mine, increasing copper revenue share to 85% and gold to 10%, transitioning to a copper-dominant portfolio.

• Advanced growth initiatives, including acquiring an additional 5% in Caserones and 31% in Los Helados, expanding the copper production profile and Mineral Resource base.

• Significant progress on Vicuña project, with technical study completed, early works ramping up, and Tier 1 status confirmed.

• Filed inaugural CSRD report, reinforcing ESG commitments.

Financial highlights

• Revenue for Q1 2026 was $1,159 million, with adjusted EBITDA of $627 million and adjusted earnings of $265 million ($0.31/share).

• Free cash flow from operations was $380 million, and adjusted operating cash flow was $450 million.

• Ended Q1 with $249 million in net cash, up from $77 million at year-end, and upsized revolving credit facility to $4.5 billion.

• Adjusted EBITDA margin reached 54%.

• Declared Q1 dividend and repurchased 1.45 million shares (~$40 million).

Outlook and guidance

• Remain on track to meet full-year production guidance of 310–335 kt copper and 134–149 koz gold, with cash cost guidance of $1.90–$2.10/lb; Q1 achieved $1.66/lb.

• Full-year sustaining CapEx and Vicuña spend guidance unchanged; total CapEx guidance $995 million.

• Input cost increases (diesel, sulphuric acid, ocean freight) are not expected to materially impact the cost base.

• Expect stronger gold production in H2 2026 due to grade profiles.

• Fully funded for initial Vicuña construction stage, supported by upsized credit facility and net cash position.