Lundin Mining (LUN) Q4 2025 earnings summary

Executive summary

• Achieved record revenue of $4.5 billion and adjusted EBITDA of $1.9 billion for 2025, driven by strong copper and gold production, high commodity prices, and portfolio optimization, including the sale of European assets and the Eagle Mine merger.

• Completed three major transactions: joint acquisition of Filo Corp. with BHP, sale of Neves-Corvo and Zinkgruvan, and sale/merger of Eagle Mine, streamlining the portfolio and focusing on South American copper assets.

• Launched a new brand identity and advanced growth initiatives, including the Vicuña Project and Saúva prefeasibility study, positioning for top-tier copper, gold, and silver production.

• Significant shareholder returns with $256 million distributed and 15.5 million shares repurchased.

Financial highlights

• Generated $1.4 billion in Q4 revenue and $4.5 billion for the year, including discontinued operations; $4.1 billion from continuing operations.

• Adjusted EBITDA from continuing operations reached $1.9 billion for the year and $686 million in Q4.

• Adjusted operating cash flow from continuing operations exceeded $1.6 billion for the year; free cash flow from operations was $774–$835.8 million.

• Net cash position at year-end was $77 million, reflecting strong cash generation and deleveraging.

• Adjusted earnings from continuing operations: $688–$769 million for the year.

Outlook and guidance

• 2026 copper production guidance: 310,000–335,000 tonnes; gold: 134,000–158,000 ounces.

• 2026 consolidated cash costs projected at $1.90–$2.10/lb copper; sustaining CapEx forecast at $550 million.

• Expansionary CapEx for 2026 is $395–$445 million, including Vicuña project joint venture spending.

• Exploration budget for 2026 is $53 million, targeting 70,000 meters of drilling and high-grade targets.

• Focus remains on cost reductions, process improvements, and advancing growth projects, including Vicuña and Saúva.