GoGold Resources Inc. press release

Lundin Mining Announces Record Production Results for 2024 and Provides 2025 Guidance

2025-01-16

TSX - Toronto Stock Exchange · Silver · Gold · Copper · Zinc · Lead · Canada · Production & Operations

Canada NewsWire

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VANCOUVER, BC , Jan. 16, 2025 /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, 2024 and provide production guidance for the three-year period of 2025 through 2027, as well as cash cost, capital and exploration expenditure guidance for 2025. Unless otherwise stated, all numbers are presented in US dollars.

Highlights

On a consolidated basis the Company achieved guidance on all metals 1 for the year and achieved record production levels for copper and zinc.

2024 Production Results (100% basis): Record copper production of 369,067 tonnes (t). Record zinc production of 191,704 t. Gold production of 158,436 ounces (oz). Nickel production at Eagle of 7,486 t.

2025 Outlook (100% basis) has been revised to reflect the divestiture of Neves-Corvo and Zinkgruvan: Copper production guidance of 303,000 – 330,000 t at a consolidated C1 cash cost of $2.05 /lb to $2.30 /lb copper 2 . Gold production guidance of 135,000 – 150,000 oz. Nickel production guidance of 8,000 – 11,000 t. Sustaining capital expenditures of $530 million and expansionary capital expenditures of $205 million 3 . Exploration expenditures are planned to be $40 million primarily for in-mine and near-mine targets.

Jack Lundin , President and CEO, commented "2024 was a transformative year for the Company. We announced three strategic transactions while maintaining operational performance to meet production guidance on a consolidated basis for copper and gold and within revised guidance for zinc and nickel. The Company was able to achieve record production for copper and zinc during the year. This is a testament to the great effort and focus of the entire team at Lundin Mining.

"The first transaction of 2024 was to increase our ownership at Caserones from 51% to 70%. This added approximately 24,000 tonnes of annualized attributable copper production to the Company.

| _ | | 1 Guidance as most recently disclosed in the Company's Management's Discussion and Analysis for the three and nine months ended September 30, 2024. | | 2 2025 cash costs guidance is based on various assumptions and estimates, including, production volumes, commodity prices (Cu: $4.40/lb, Mo: $17.00/lb, Au: $2,500/oz: Ag: $30.00/oz) and foreign currency exchange rates (Chilean Peso "CLP" CLP/USD:900, Brazilian Real "BRL" USD/BRL:5.50). Cash cost is a non-GAAP measure - see the Company's Management's Discussion and Analysis for the three and nine months ended September 30, 2024 and the Historical Non-GAAP Measure Comparatives at the end of this news release. | | 3 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, 2024 and the Historical Non-GAAP Measure Comparatives at the end of this news release. |

"Our two biggest assets, Candelaria and Caserones, both performed well in the year, Candelaria had one of its best second half performances in its 30-year history, producing just under 100,000 tonnes in H2 2024. Caserones continues to add to our growth story and produced 124,761 tonnes of copper in the year.

"Year over year, zinc production increased and set a record for the Company at 191,704 tonnes. In December, we announced the opportune sale of Neves-Corvo and Zinkgruvan to Boliden AB ("Boliden") for total consideration of up to $1.52 billion . This transaction is expected to close mid-year, which will further increase our financial flexibility and shift our revenue mix to be more heavily weighted towards copper.

"Finally, we announced the joint acquisition of Filo Corp. ("Filo") with BHP and the formation of Vicuña Corp. (Vicuña) to jointly develop the Filo del Sol ("FDS") project and Josemaria project. It is with great pleasure to announce already that this transaction closed on January 15th, 2025 .

"Looking ahead, we look forward to closing on the sale of the European assets in 2025 and will continue to focus on improving our operational performance at all our sites."

Summary of 2024 Production

| | | Q4 2024

Production | Full Year 2024

Production | 2024 Original

Guidance 4 | 2024 Revised Guidance 5 | | | | | | | | | | | | | | | | | | | | | | | | | | Copper (t) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Candelaria (100% basis) | 48,772 | 162,487 | 160,000 | - | 170,000 | 165,000 | - | 173,000 | | | | | | | | | | | | | | | | | | | | | | | Caserones (100% basis) | 31,737 | 124,761 | 120,000 | - | 130,000 | 121,000 | - | 125,000 | | | | | | | | | | | | | | | | | | | | | | | Chapada | 12,323 | 43,261 | 43,000 | - | 48,000 | 43,000 | - | 48,000 | | | | | | | | | | | | | | | | | | | | | | | Eagle | 1,262 | 6,366 | 9,000 | - | 12,000 | 6,000 | - | 8,000 | | | | | | | | | | | | | | | | | | | | | | | Neves-Corvo | 7,139 | 28,228 | 30,000 | - | 35,000 | 27,000 | - | 30,000 | | | | | | | | | | | | | | | | | | | | | | | Zinkgruvan | 258 | 3,964 | 4,000 | - | 5,000 | 4,000 | - | 5,000 | | | | | | | | | | | | | | | | | | | | | | | Total Copper | 101,491 | 369,067 | 366,000 | - | 400,000 | 366,000 | - | 389,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Zinc (t) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Neves-Corvo | 27,879 | 109,571 | 120,000 | - | 130,000 | 111,000 | - | 116,000 | | | | | | | | | | | | | | | | | | | | | | | Zinkgruvan | 24,067 | 82,133 | 75,000 | - | 85,000 | 79,000 | - | 83,000 | | | | | | | | | | | | | | | | | | | | | | | Total Zinc | 51,946 | 191,704 | 195,000 | - | 215,000 | 190,000 | - | 199,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Gold (oz) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Candelaria (100% basis) | 27,842 | 93,021 | 100,000 | - | 110,000 | 92,000 | - | 102,000 | | | | | | | | | | | | | | | | | | | | | | | Chapada | 18,614 | 65,415 | 55,000 | - | 60,000 | 63,000 | - | 68,000 | | | | | | | | | | | | | | | | | | | | | | | Total Gold | 46,456 | 158,436 | 155,000 | - | 170,000 | 155,000 | - | 170,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nickel (t) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Eagle | 1,617 | 7,486 | 10,000 | - | 13,000 | 7,000 | - | 9,000 | | | | | | | | | | | | | | | | | | | | | | | Total Nickel | 1,617 | 7,486 | 10,000 | - | 13,000 | 7,000 | - | 9,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Molybdenum (t) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Caserones (100% basis) | 912 | 3,183 | 2,500 | - | 3,000 | 2,800 | - | 3,300 | | | | | | | | | | | | | | | | | | | | | | | | | 912 | 3,183 | 2,500 | - | 3,000 | 2,800 | - | 3,300 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| _ | | 4 Guidance as announced by news release "Lundin Mining Announces 2023 Production Results & Provides 2024 Guidance" dated January 14, 2024. | | 5 Guidance as most recently disclosed in the Company's Management's Discussion and Analysis for the three and nine months ended September 30, 2024. |

Three-Year Production Outlook 2025 - 2027

Copper production is forecast to be 303,000 - 330,000 t on a consolidated basis in 2025. Higher consolidated copper production is forecast for 2026, mainly due to mine sequencing and the copper grade profile at Candelaria and Caserones. Compared to last year's three-year outlook, the Company's European assets have been removed and mine plan updates and optimization efforts at the Company's Chilean operations have resulted in changes to the copper production guidance. At Candelaria, a reduction in overall mine movement from the open pit and underground has led to changes in head grades for 2025 and at Caserones a more conservative estimate on mill throughput has been forecast to be consistent with throughput rates in 2024. Consolidated gold production is forecast to be 135,000 - 150,000 oz in 2025. A slight increase in gold production in 2026 is mainly due to mine sequencing and the planned gold grade profile at Candelaria. Nickel production is forecast to be 8,000 - 11,000 t in 2025 and then taper over the three-year period. The production profile is driven by the planned mine sequencing and the nickel grade. Deferred tonnes and grades from last year have improved the production profile in 2025.

Production Outlook 6

| | | 2025 | | 2026 | | 2027 | | | | | | | | Copper (t) | | | | | | | | | | | | | | | Candelaria (100% basis) | 140,000 | - | 150,000 | | 145,000 | - | 155,000 | | 150,000 | - | 160,000 | | | Caserones (100% basis) | 115,000 | - | 125,000 | | 130,000 | - | 140,000 | | 105,000 | - | 115,000 | | | Chapada | 40,000 | - | 45,000 | | 40,000 | - | 45,000 | | 40,000 | - | 45,000 | | | Eagle | 8,000 | - | 10,000 | | 5,000 | - | 8,000 | | 5,000 | - | 8,000 | | | Total Copper | 303,000 | - | 330,000 | | 320,000 | - | 348,000 | | 300,000 | - | 328,000 | | | | | | | | | | | | | | | | Gold (oz) | | | | | | | | | | | | | | | Candelaria (100% basis) 7 | 78,000 | - | 88,000 | | 87,000 | - | 97,000 | | 85,000 | - | 95,000 | | | Chapada | 57,000 | - | 62,000 | | 57,000 | - | 62,000 | | 47,000 | - | 52,000 | | | Total Gold | 135,000 | - | 150,000 | | 144,000 | - | 159,000 | | 132,000 | - | 147,000 | | | | | | | | | | | | | | | | Nickel (t) | | | | | | | | | | | | | | | Eagle | 8,000 | - | 11,000 | | 6,000 | - | 9,000 | | 4,000 | - | 7,000 | | | Total Nickel | 8,000 | - | 11,000 | | 6,000 | - | 9,000 | | 4,000 | - | 7,000 | | | | | | | | | | | | | | |

Candelaria: Annual fluctuations in copper and gold production forecasts for the next three years are primarily due to sequencing of the Candelaria underground and open pit. An updated optimized mine plan has led to a reduction in mine movement of 26% which has impacted copper production guidance by 6% in 2025 compared to the mid-point of last year's outlook. In 2026 grades are expected to increase from ore in Phase 12.

Over the three-year guidance period, total mill throughput is forecast to range between 27 - 29 million tonnes per annum ("Mtpa"). Based on the planned mill feed blend and the ore hardness, annual throughput is expected to be approximately 29 Mtpa in 2025.

Candelaria's 2025 copper and gold production is forecasted to be modestly weighted to the second half of the year, primarily owing to mine sequencing and the resultant grade profiles.

| | | 6 Production guidance is based on certain estimates and assumptions, including but not limited to Mineral Resources and Mineral Reserves, geological formations, grade and continuity of deposits and metallurgical characteristics. | | 7 68% of Candelaria's total gold and silver production are subject to a streaming agreement. |

Caserones: During 2025, ore to the concentrator will come from Phases 5, 6 and 7 and is expected to have a similar grade profile compared to 2024. Annual ore throughput over the guidance period is projected to be approximately 32 – 34 Mtpa and cathode production will range between 14 – 18 ktpa . Copper production is expected to be evenly weighted over the year with a slightly stronger fourth quarter.

Chapada: Production guidance is in line with previous estimates and based on the current throughput capacity of approximately 23.5 Mtpa over the three-year period with annual fluctuations primarily due to mine sequencing and the forecasted copper and gold grade profiles.

Ore mining is planned from the North, Southwest, South and Northeast pits through 2025 and 2026, followed by South, Southwest and Baru pits in 2027.

Eagle: Ramp rehabilitation has been completed at Eagle and throughput is expected to be similar to 2024 levels prior to the fall of ground. Metal production is modestly weighted to the first half of the year driven by the higher-grade zone on the lower levels of Eagle East. Development of the Upper Eagle East zone referred to as the 'Keel Zone' will progress to enable access to those zones with production ramp up in 2025/26.

European Assets: Lundin Mining announced the sale of Neves-Corvo and Zinkgruvan to Boliden for total consideration of up to $1.52 billion as per the press release dated December 9, 2024 . The transaction is expected to close in mid-2025, as a result the Company will not provide guidance on the assets. 8

2025 Cash Cost 9 Guidance

2025 cash cost guidance is based on various assumptions and estimates, including, production volumes as per 2025 guidance, commodity prices (Cu: $4.40 /lb, Mo: $17.00 /lb, Au: $2,500 /oz: Ag: $30.00 /oz) and foreign currency exchange rates (CLP/USD:900, USD/BRL:5.50).

2025 cash cost guidance is estimated to be:

| Cash Cost | 2025 10 | | | | | | Copper | | | | | | | | Candelaria 11 | $1.80/lb | - | $2.00/lb | | | | Caserones | $2.40lb | - | $2.60/lb | | | | Chapada 12 | $1.80/lb | - | $2.00/lb | | | Consolidated C1 Cash Cost | $2.05/lb | - | $2.30/lb | | | | Nickel | | | | | | | | Eagle | $3.05/lb | - | $3.25/lb | | | | | | | | |

| _ | | 8 Neves-Corvo is expected to be slightly above the cash cost guidance range for 2024 from lower by-product credits. Zinkgruvan is expected to be inline with cash cost guidance for 2024. Capital expenditures for 2024 for both assets are expected to be inline with guidance. | | 9 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, 2023 and nine months ended September 30, 2024. | | 10 2025 cash costs are based on various assumptions and estimates, including, but not limited to: production volumes, commodity prices (2025 - Cu: $4.40/lb, Mo: $17.00/lb, Au: $2,500/oz: Ag: $30.00/oz) foreign currency exchange rates (2025 - CLP/USD:900, USD/BRL:5.50) and operating costs. | | 11 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 $433/oz and $4.32/oz, respectively, on gold and silver sales in the year. | | 12 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. |

Candelaria: Cash cost is forecast to be $1.80 /lb – $2.00 /lb of copper, after by-product credits. The cash cost reflects lower metal production that is partially offset by reduced treatment and refining costs and higher by-product credits. By-product credits have been adjusted for the terms of the gold streaming agreement. Caserones: Cash cost is forecast to be $2.40 /lb – $2.60 /lb of copper, after by-product credits, reflecting lower treatment and refining costs along with expected savings from the Caserones full potential program. Chapada: Cash cost is forecast to be $1.80 /lb – $2.00 /lb of copper in 2025, after by-product credits and captures lower treatment and refining charges. Effects of copper stream agreements are reflected in the realized copper revenue. Eagle: Cash cost is forecast to be $3.05 /lb – $3.25 /lb of nickel in 2025, after by-product credits. Cash costs reflect a full year at a run rate of 2,000 tpd for 2025 after a period of reduced throughput in the second half of 2024 from ramp rehabilitation work.

2025 Capital Expenditure Guidance

Capital expenditures are forecast to total $735 million of which $530 million relates to sustaining capital and $205 million relates to expansionary capital expenditures 13 , including 50% of the expenditure relating to the Vicuña Joint Arrangement. The majority of sustaining capital expenditures are for open pit waste stripping, underground mine development, tailings storage facility ("TSF") and water management works.

| Capital Expenditures ($ millions) | 2025 13, 14 | | | Sustaining Capital | | | | | Candelaria (100% basis) | $205 | | | Caserones (100% basis) | $215 | | | Chapada | $85 | | | Eagle | $25 | | | Total Sustaining Capital | $530 | | | | | | Candelaria Expansionary Capital | $50 | | | Vicuña Joint Arrangement | $155 | | | | | | | Total Capital Expenditures | $735 | |

| | | 13 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, 2023 and nine months ended September 30, 2024 for discussion of non-GAAP measures. | | 14 Capital expenditures are based on various assumptions and estimates, including, but not limited to foreign currency exchange rates (2025 - CLP/USD:900, USD/BRL:5.50). |

Candelaria ( $205 million ): Capitalized waste stripping and underground mine development is forecast to be $59 million and $37 million respectively and underground mine projects, including ramp works, of approximately $10 million. As mentioned previously, the optimized mine plan at Candelaria reduced total mine movement which led to a reduction in capitalized waste stripping. Compared to last year, sustaining capital expenditures at Candelaria have been reduced by $70 million . Capital expenditure for mobile and mine equipment is forecast to be $20 million, and $32 million is estimated for the continued building of the Los Diques TSF. Other sustaining capital requirements are estimated at $45 million .

Expansionary capital is estimated to be $50M , which includes approximately $25 million for a powerline move and upgrade and other 2040 EIA initiatives.

Caserones ( $215 million ): This includes approximately $70 million for capitalized waste stripping, $75 million for TSF and water management systems, and $25 million for mine and mobile equipment. Other sustaining capital requirements are estimated at $45 million .

Chapada ( $85 million ): Capitalized waste stripping is estimated at approximately $30 million, $23 million for TSF and water management systems, and $14 million for mine and mobile equipment.

Eagle ( $25 million ): Approximately $14 million is for mine development and growth projects which includes the development of the Upper Keel zone, and $9 million for mobile and mine equipment.

Vicuña Joint Arrangement ( $155 million ): Capital expenditures for the Joint Arrangement are forecast to total $155 million on a 50% basis for 2025. The workplan will focus on FDS drilling, FDS mineral resource estimation, Josemaria mineral resource estimation update, mine planning, metallurgy, hydrology wells and studies, commencement of access road construction, and exploration at the Cumbre Verde target. In parallel, engineering studies and trade off analysis will be completed in preparation for future permitting and a technical report outlining an integrated project.

Vicuña is targeting a new mineral resource estimate at FDS and an update to the resource estimate at Josemaria within the first half of 2025. These resource estimates will form the basis of an integrated technical report which will outline the development plan for the phased construction of the district.

2025 Exploration Investment Guidance

Exploration expenditures are planned to be $40 million in 2025 primarily for in-mine and near-mine targets at our operations. The largest portion of the planned expenditure will be at Caserones where drilling (18,000 meters (m)) and geophysical programs are planned. Significant drilling programs are also planned at Candelaria ( 18,000 m ), and Chapada ( 20,000 m ) with the goal to grow resources. The drill program at Caserones will focus on deeper in-pit drilling to better define higher grade breccia zones and exploration drilling to continue testing the sulphide mineral potential below the Angelica oxide deposit. 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 Sauva will continue to further define higher grade resources that will be incorporated into an updated resource estimate.