Lundin Mining Announces 2025 Production Results and 2026 Guidance

2026-01-21

NYSE - New York Stock Exchange · Copper · Gold · Molybdenum · United States

Canada NewsWire

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VANCOUVER, BC, Jan. 21, 2026/CNW/ - (TSX: LUN) (Nasdaq Stockholm: LUMI) Lundin Mining Corporation("Lundin Mining" or the "Company") is pleased to announce production results for the year ended December 31, 2025. The Company achieved guidance on all metals for the year on a consolidated basis. This represents the third consecutive year that Lundin Mining has achieved consolidated production guidance, reinforcing the Company's commitment to operational and financial consistency.

In addition, the Company is pleased to release production guidance for the three-year period from 2026 through 2028, as well as cash cost, capital and exploration expenditure guidance for 2026. Unless otherwise stated, all numbers are in US dollars.

Jack Lundin, President and CEO, commented"I am proud to report that Lundin Mining has delivered production in line with guidance for the third consecutive year, reflecting the accuracy of our planning cycle and our disciplined focus on operational consistency. In the fourth quarter, we produced over 87,000 tonnes of copper and over 34,000 ounces of gold, capping a strong year across our three Latin American operations. Notably, Caserones produced over 15,000 tonnes of copper in December 2025, marking the best monthly performance since Lundin Mining took ownership of the operation.

"Looking ahead, our three-year production and one year cost outlook remains firmly on track with previously disclosed forecasts. Mine sequencing optimizations are expected to increase copper production by 20,000 tonnes in 2027, while the midpoint of 2026 has been adjusted by 5,000 tonnes, resulting in a net increase of approximately 15,000 tonnes over the two-year period. Operationally, we remain focused on delivering consistent performance through disciplined planning, which we believe will translate into stronger financial returns in a robust commodity price environment.

"Brownfield growth initiatives across our operations continue to progress, and the advancement of the Vicuña project remains on track. With the RIGI PEELP application submitted in December, the integrated technical report results forthcoming this quarter, and continued progress on upsizing our credit facility, 2026 is shaping up to be a pivotal year as Vicuña moves into an exciting new phase of development."

Highlights for 2025 Production and 2026 – 2028 Guidance

2025 Production Results

The Company beat original1copper production guidance and was within the revised copper, gold and nickel production guidance for the year.

2025 full year production results (100% basis): Copper production of 331,232 tonnes (t); Gold production of 141,859 ounces (oz); Nickel production at Eagle of 9,907 t;

During Q4 2025, Caserones achieved its highest quarterly consolidated copper production since the Company has owned the mine, producing 39,612 tonnes, driven by higher copper head grades and cathode production.

Guidance

Updated three-year production guidance remains in line with previous 2026 and 2027 guidance2.The company forecasts 2026 consolidated copper production of 310,000 to 335,000 tonnes and gold production of 134,000 to 149,000 ounces at a cash cost guidance3of $1.90/lb to $2.10/lb. Forecasted consolidated copper production of 315,000 to 340,000 tonnes in 2027 and 290,000 to 315,000 tonnes in 2028. Sustaining capital expenditures4of $550 millionand expansionary capital expenditures4 of $445 millionin 2026. Exploration expenditures are forecast to be $53 millionprimarily for in-mine and near-mine targets in 2026.

| | | 1Guidance as announced by news release "Lundin Mining Announces Record Production Results for 2024 & Provides 2025 Guidance" dated January 16, 2025. |

Summary of 2025 Production

The Company exceeded its original2full year consolidated copper production guidance and was within the increased5full year production guidance for 2025. Strong operational performance, particularly at Caserones drove production growth for the year.

Candelaria produced 145,471 tonnes of copper for the full year, benefiting from higher mill throughput due to softer ore.

Since Lundin Mining has owned the mine, Caserones achieved its highest quarterly copper production of 39,612 tonnes in the fourth quarter of 2025, supported by higher head grades and strong cathode production. For the full year, Caserones produced 132,881 tonnes surpassing original guidance.

Full year copper production at Chapada was 43,974 tonnes, which benefited from consistent grades and strong throughput during the year.

| | | Q4 2025

Production | FY 2025

Production | 2025 Original

Guidance2 | 2025 Revised

Guidance5 | | | | | | | | | | | | | | | | Copper (t) | | | | | | | | | | | | | | | | | | | | | | Candelaria (100% basis) | 34,272 | 145,471 | 140,000 | - | 150,000 | 143,000 | - | 149,000 | | | | | | | | | | | | | Caserones (100% basis) | 39,612 | 132,881 | 115,000 | - | 125,000 | 127,000 | - | 133,000 | | | | | | | | | | | | | Chapada | 11,191 | 43,974 | 40,000 | - | 45,000 | 40,000 | - | 45,000 | | | | | | | | | | | | | Eagle | 1,957 | 8,906 | 8,000 | - | 10,000 | 9,000 | - | 10,000 | | | | | | | | | | | | | Total Copper | 87,032 | 331,232 | 303,000 | - | 330,000 | 319,000 | - | 337,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Gold (oz) | | | | | | | | | | | | | | | | | | | | | | Candelaria (100% basis)6 | 19,055 | 80,528 | 78,000 | - | 88,000 | 78,000 | - | 84,000 | | | | | | | | | | | | | Chapada | 15,074 | 61,331 | 57,000 | - | 62,000 | 57,000 | - | 62,000 | | | | | | | | | | | | | Total Gold | 34,129 | 141,859 | 135,000 | - | 150,000 | 135,000 | - | 146,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nickel (t) | | | | | | | | | | | | | | | | | | | | | | Eagle | 2,174 | 9,907 | 8,000 | - | 11,000 | 9,000 | - | 11,000 | | | | | | | | | | | | | Total Nickel | 2,174 | 9,907 | 8,000 | - | 11,000 | 9,000 | - | 11,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| _ | | | 2 | Guidance as announced by news release "Lundin Mining Announces Record Production Results for 2024 & Provides 2025 Guidance" dated January 16, 2025. | | 3 | This is a non-GAAP measure. For equivalent historical non-GAAP financial measure comparatives see the Historical Non-GAAP Measure Comparatives section of this press release. Please also see the Management's Discussion and Analysis for the year ended December 31, 2024 and nine months ended September 30, 2025. | | 4 | Sustaining capital expenditure is a supplementary financial measure and expansionary capital expenditure is a non-GAAP measure - see the Company's Management's Discussion and Analysis for the three and nine months ended September 30, 2025 and the Historical Non-GAAP Measure Comparatives at the end of this news release. | | 5 | Guidance as most recently disclosed in the Company's Management Discussion and Analysis for the three and nine months ended September 30, 2025. |

Three-Year Production Guidance 2026 - 2028

Copper production is forecast to remain stable at approximately 310,000 to 335,000 tonnes annually in 2026, consistent with 2025 production, after accounting for the sale of the Eagle Mine to Talon Metals Corp. (see press release dated January 9, 2026entitled "Lundin Mining Completes the Sale of the Eagle Mine and Humboldt Mill to Talon Metals").

Mine plan updates at the Company's Candelaria operation result in modifications to the previous 2026 guidance. At Candelaria, 2026 copper and gold production guidance reflects lower underground mining rates in the first half of the year as the Company insources the underground mining contract.

The outlook for consolidated copper production in 2027 increases compared to the previous 2027 guidance from higher forecast production at Candelaria, Caserones and Chapada resulting in an increase to the cumulative consolidated copper production over 2026 and 2027 by 15,000 tonnes when compared to the previous guidance during the same period and based on the midpoint of the guidance ranges, after accounting for the sale of the Eagle Mine.

Gold guidance for 2026 is forecast to be 134,000 to 149,000 ounces which reflects lower underground mining rates at Candelaria as mentioned previously. In 2027, gold production is expected to increase by approximately 10,000 ounces year-on-year, driven by higher production at Chapada, resulting in the cumulative consolidated gold production over 2026 and 2027 to remain essentially flat when compared to the previous guidance and based on the midpoint of the guidance ranges.

| | Production Guidance | 2026 | | 2027 | | 2028 | | | | | | | | Copper (t) | | | | | | | | | | | | | | | Candelaria (100% basis) | 135,000 | - | 145,000 | | 157,000 | - | 167,000 | | 135,000 | - | 145,000 | | | Caserones (100% basis) | 130,000 | - | 140,000 | | 115,000 | - | 125,000 | | 115,000 | - | 125,000 | | | Chapada | 45,000 | - | 50,000 | | 43,000 | - | 48,000 | | 40,000 | - | 45,000 | | | Total Copper | 310,000 | - | 335,000 | | 315,000 | - | 340,000 | | 290,000 | - | 315,000 | | | | | | | | | | | | | | | | Gold (oz) | | | | | | | | | | | | | | | Candelaria (100% basis)6 | 77,000 | - | 87,000 | | 85,000 | - | 95,000 | | 75,000 | - | 85,000 | | | Chapada | 57,000 | - | 62,000 | | 58,000 | - | 63,000 | | 57,000 | - | 62,000 | | | Total Gold | 134,000 | - | 149,000 | | 143,000 | - | 158,000 | | 132,000 | - | 147,000 | | | | | | | | | | | | | | |

Candelaria:Annual fluctuations in copper and gold production forecasts for the next three years are primarily due to variations in the grade profile of Candelaria.

Revisions to Candelaria's 2026 copper and gold production guidance incorporates lower underground mining rates in the first half of the year as the Company insources the underground mining contract. The production profile is forecast to be modestly weighted towards the second half of the year due to higher expected grades from Phase 12.

Higher copper production of approximately 7,000 tonnes in 2027 when compared to the previous 2027 guidance, results from revised ore sequencing and additional higher-grade ore from Phase 11.

Over the three-year guidance period, total mill throughput averages approximately 29 million tonnes per annum ("Mtpa"), slightly higher than previous years due to an improved ore hardness model that accounts for softer ore from Phase 11.

Caserones:Copper production in 2026 is modestly weighted toward the first half of the year due to the planned grade profile. As part of the mine sequencing, 2027 and 2028 production profiles reflect anticipated lower copper head-grades following the completion of Phase 6 in early 2027.

| | | | 6 | 68% of Candelaria's total gold and silver production is subject to a streaming agreement. |

Caserones copper guidance in 2027 increases by ~10,000 tonnes to 115,000 to 125,000 tonnes when compared to the previous 2027 guidance, as a result of higher cathode production and increased mill throughput.

Over the guidance period, mill throughput is expected to rise to approximately 34–36 Mtpa, supported by ongoing Full Potential initiatives. Cathode production is expected to improve from optimization efforts implemented in 2025 and is forecast to be 26,000–28,000 tonnes per annum ("tpa") over the period, an improvement of 6,000–8,000 tpa from prior levels.

Chapada: Copper production guidance increases by ~5,000 tonnes in 2026 to 45,000 to 50,000 tonnes and gold guidance is increased by approximately 10,000 ounces in 2027 as compared to the previous 2026 and 2027 guidance, respectively. Annual variations largely reflect mine sequencing and forecasted copper and gold grade profiles. An updated mine plan has reduced the proportion of stockpile material in mill feed from ~25% to ~10%, improving copper and gold recoveries over the three-year period.

2026 Cash Cost7Guidance

Consolidated cash cost in 2026 is forecast to be within $1.90to $2.10per pound of copper, net of by-product credits. As part of the company's Full Potential programs, the focus will continue to be on cost reductions and process improvements. Total cash cost guidance for 2026 is in line with 2025 guidance.

2026 cash cost guidance reflects higher by-product credits primarily from an increase in gold and molybdenum commodity price assumptions offset by a stronger Chilean Peso.

| | | | | | | Cash Cost | 20268 | | | | | Copper | | | | | | | Candelaria9 | $2.05/lb | - | $2.25/lb | | | Caserones | $2.05lb | - | $2.25/lb | | | Chapada10 | $1.00/lb | - | $1.20/lb | | Consolidated C1 Cash Cost | $1.90/lb | - | $2.10/lb | |

Candelaria: Cash cost guidance is forecast to be $2.05/lb – $2.25/lb of copper, after by-product credits. Lower production volumes and foreign exchange rates led to a slight increase in cash cost compared to 2025 guidance.

During the fourth quarter 2025, Lundin Mining successfully negotiated a new three-year labour agreement with the unions at Candelaria, a negotiation which originally was scheduled for 2026.

Caserones: Cash cost is expected to decline in 2026 (as compared to the revised 2025 guidance) and are forecast to be $2.05/lb – $2.25/lb of copper, after by-product credits, reflecting higher low-cost cathode production.

Chapada:Cash cost is forecast to be $1.00/lb – $1.20/lb of copper in 2026, after by-product credits, a slight increase from the prior year. This is the result of higher mining rates in 2026, partially offset by higher by-product credits.

| _ | | | 7 | This is a non-GAAP measure. For equivalent historical non-GAAP financial measure comparatives see the Historical Non-GAAP Measure Comparatives section of this press release. Please also see the Management's Discussion and Analysis for the year ended December 31, 2024 and nine months ended September 30, 2025. | | 8 | 2026 cash cost is based on various assumptions and estimates, including, but not limited to: production volumes, commodity prices (2026 - Mo: $20.00/lb, Au: $4,000/oz: Ag: $80.00/oz) foreign currency exchange rates (2025 - CLP/USD:900, USD/BRL:5.50) and operating costs. | | 9 | 68% of Candelaria's total gold and silver production are subject to a streaming agreement and as such cash costs are calculated based on receipt of $437/oz and $4.36/oz, respectively, on gold and silver sales in the year. | | 10 | Chapada's cash cost is calculated on a by-product basis and does not include the effects of its copper stream agreements. Effects of the copper stream agreements are reflected in copper revenue and will impact realized price per pound. |

2026 Capital Expenditure Guidance

Total sustaining capital expenditures11are forecast to be $550 million, consistent with prior years' guidance. Candelaria and Caserones account for approximately 80% of the sustaining capital budget, with the majority of expenditures directed to open pit waste stripping, underground mine development, tailings storage facility ("TSF") and mining equipment. Expansionary capital expenditures11are forecast to be $445 millionand includes 50% of the expenditure related to the 50/50 joint arrangement between the Company and BHP for the Vicuña Project.

| | | | | Capital Expenditures ($ millions) | 202611,12 | | | Sustaining Capital | | | | | Candelaria (100% basis) | $215 | | | Caserones (100% basis) | $235 | | | Chapada | $100 | | | Total Sustaining Capital | $550 | | | | | | Expansionary Capital | $50 | | | Vicuña(50% basis) | $395 | | | | | | | Total Capital Expenditures | $995 | |

Candelaria ($215 million):Capitalized waste stripping and underground mine development is forecast to be $60 millionand TSF expenditures are forecast to be $40 million. Capital expenditure for mobile and mine equipment is forecast to be $20 million, and the remaining sustaining capital requirements are estimated at $95 million.

Expansionary capital is estimated to be $35 million, which includes approximately $25 millionfor pre-production stripping related to Phase 13.

Caserones ($235 million): Includes approximately $70 millionfor capitalized waste stripping, $50 millionfor TSF and water management projects, and $50 millionfor mine and mobile equipment. Sustaining capital requirements beyond these items are estimated at approximately $65 million.

Chapada ($100 million): Includes approximately $30 millionfor capitalized waste, $38 millionfor TSF and water management projects, and $16 millionfor mine and mobile equipment.

Vicuña ($395 million): Capital expenditures for the Vicuña project are forecast to total $395 millionon a 50% basis for 2026. The 2026 workplan includes activities such as ongoing resource and infill drilling, equipment purchases for Josemaria to support earthworks, procurement of long lead equipment and the advancement of the Northern Access Road. Indirect activities, primarily related to Josemaria, include detailed engineering, construction management and preconstruction work associated with camp expansion, construction facilities, permitting and other owner's costs to support continued project de-risking. Additional engineering studies will advance Filo leaching, Filo sulfides, desalinated water infrastructure and concentrate transportation to further refine project definition and support permitting activities.

A 50,000 metre (m) drill program is planned at Filo del Sol, the program will focus on resource conversion and growth, as well as drilling to support upcoming technical studies.

| _ | | | 11 | Expansionary capital expenditure is a non-GAAP measure and sustaining capital expenditure is a supplementary financial measure. For historical comparatives see the Historical Non-GAAP Measure Comparatives section of this press release. Please also see the Management's Discussion and Analysis for the year ended December 31, 2024 and nine months ended September 30, 2025 for discussion of non-GAAP measures. | | 12 | Capital expenditures are based on various assumptions and estimates, including, but not limited to foreign currency exchange rates (2026 - CLP/USD:900, USD/BRL:5.50). |

Vicuña is targeting completion of an integrated technical report in Q1 2026 which will outline the district's development plan and include updated mineral resource estimates for both Filo del Sol and Josemaria.

2026 Exploration Investment Guidance

Exploration expenditures are planned to be $53 millionin 2026, primarily for resource expansion at in-mine and near-mine targets at our operations. The largest portion of the planned expenditure will be at Caserones where drilling (39,800 m) and geophysical programs are planned. The drill program at Caserones will primarily focus on defining the size of the Angelica deposit, both in terms of leachable copper resources and the underlying copper/molybdenum sulphide mineralization, with a planned 26,900 mof drilling. Additional drilling at Caserones will be directed towards growing the size of the Caserones deposit laterally and testing at least two new district exploration targets (Centauro and Cordillera). Significant drilling programs are also planned at Candelaria (16,000 m), and Chapada (13,700 m) with the goal of growing resources. At Candelaria drilling is designed to continue expanding the underground resources, while also growing the shallow La Española deposit and neighboring La Portuguesa target area. At Chapada additional drilling at Saúva will continue to further define higher grade resources that will be incorporated into an updated resource estimate later this year.

About Lundin Mining

Lundin Mining is a Canadian mining company headquartered in Vancouver, Canadawith three operating mines in Braziland Chile. We produce commodities that support modern infrastructure and electrification. Our strategic vision is to become a top ten global copper producer. To get there, we are executing a clear growth strategy, which includes advancing one of the world's largest copper, gold, and silver projects in the Vicuña District on the border of Argentinaand Chile, where we hold a 50% interest. Lundin Mining has a proven track record of value creation through resource growth, operational excellence, and responsible development. The Company's shares trade on the Toronto Stock Exchange (LUN) and Nasdaq Stockholm (LUMI). Learn more at www.lundinmining.com.