Lundin Mining Reports Fourth Quarter and Full Year 2025 Results

2026-02-19

NYSE - New York Stock Exchange · Copper · Gold · Silver · Zinc · Lead · Nickel · Cobalt · Platinum · Palladium · Vanadium · United States

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VANCOUVER, BC, Feb. 19, 2026/CNW/ - (TSX: LUN) (Nasdaq Stockholm: LUMI)Lundin Mining Corporation("Lundin Mining" or the "Company") today reported its fourth quarter and full year 2025 financial results. Unless otherwise stated, results are presented in United States dollars on a 100% basis.

Jack Lundin, President and CEO commented, "In 2025 we delivered our best performance in the history of the Company. We generated record revenue from continuing operations of $4.1 billion for the year, including $1.3 billion in the fourth quarter, alongside adjusted EBITDA of $1.9 billion for the year and $686 million in the quarter. These exceptional operational and financial results enabled us to exit the year in a net cash position, while purchasing over 15 million shares through our share buyback program. Additionally, we have made significant progress toward upsizing our Revolving Credit Facility to $4.5 billion, adding financial strength as we enter the next phase of growth for the Company.

"We continued to advance our growth initiatives including delivering the world's largest greenfield copper-gold-silver maiden resource in the last 30 years at Filo del Sol deposit, adding a significant amount of these metals to our Mineral Resource inventory. In the near-term, we improved our guidance forecast over the next two years, mainly driven by the improvements in cathode production at Caserones. Lastly, we have made good progress and continue to advance the development plan of Sauva at our Chapada operation and will look to sanction this project prior to year end.

"Earlier this week we announced the results of the integrated technical report on the Vicuña project, highlighting a project capable of producing over 500,000 tonnes of copper, 800,000 ounces of gold and 20 million ounces of silver which would position it in the top 5 copper, gold and silver mines in the world. At the end of 2025, Vicuña submitted its application for fiscal stability in Argentina under the RIGI scheme to support the development of the project, positioning Lundin Mining for long-term value creation. A final investment decision on the Vicuña project is targeted before the end of 2026."1

Fourth Quarter and Full Year Operational and Financial Highlights

The Company completed three major transactions this year, improving its asset portfolio and long-term growth outlook while achieving strong operational and financial results. The Company exceeded its original copper guidance and met revised guidance across all metals. Record annual and quarterly revenue enabled the Company to exit the year in a net cash position. In parallel, the Company continued to advance its growth initiatives, Vicuña Corp. submitted a fiscal stability agreement application in Argentina ("RIGI PEELP") in the fourth quarter and announced the results of an integrated technical study (the Preliminary Economic Assessment "PEA" or "Study") on February 16, 2026.

Fourth Quarter Highlights

Copper Production2:Consolidated copper production of 87,032 tonnes at a consolidated copper cash cost3of $1.88 /lb. Other Production2:During the quarter, 34,129 ounces of gold and 2,174 tonnes of nickel were produced. Revenue: $1,353.7 million in the fourth quarter, comprised of $1,301.5 million from continuing operations with a realized copper price3of $5.89 /lb and a realized gold price3of $4,412 /oz, and $52.2 million from discontinued operations4. Net Earnings and Adjusted Earnings3: Net earnings attributable to shareholders of the Company was $767.2 million, comprised of $659.9 million ($0.77 per share) net earnings from continuing operations and $107.3 million net earnings from discontinued operations. Adjusted earnings was $370.4 million, comprised of $363.7 million ($0.42 per share) from continuing operations and $6.7 million from discontinued operations. Adjusted EBITDA3: $700.6 million for the quarter, $686.4 million generated from continuing operations and $14.2 million generated from discontinued operations. Cash Generation:Cash provided by operating activities in the quarter was $560.9 million, comprised of $533.0 million from continuing operations and $27.9 million from discontinued operations. Free cash flow from operations3 was $412.5 million, $388.3 million from continuing operations and $24.2 million from discontinued operations, which included a working capital build of $132.1 million from continuing operations. Net cash3:As at December 31, the net cash position of the Company was $77.4 million which includes $22.0 million cash from discontinued operations.

| | | 1Adjusted EBITDA is a non-GAAP measure. Please refer to the Company's discussion of non-GAAP and other performance measures in its Management Discussion and Analysis ("MD&A") for the year ended December 31, 2025 and the Reconciliation of Non-GAAP Measures section at the end of this news release. | | 2Production includes continuing operations and Eagle to align to 2025 production guidance. | | 3These are non-GAAP measures. Please refer to the Company's discussion of non-GAAP and other performance measures in its Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2025 and the Reconciliation of Non-GAAP Measures section at the end of this news release. | | 4At December 31, 2025, the Eagle reporting segment met the criteria to be classified as held-for-sale and discontinued operations. Earnings (loss) from discontinued operations includes the financial results of Eagle, Neves-Corvo and Zinkgruvan reporting segments. |

Full Year 2025 Highlights

Copper Production2: Consolidated copper production of 331,232 tonnes of copper at a consolidated cash cost of $1.87/lb, including 8,906 tonnes from Eagle, was within the upper half of the most recent annual copper production guidance and exceeded the upper end of the original annual copper production guidance. Other Production2:During the year, 141,859 ounces of gold and 9,907 tonnes of nickel were produced. Production for all metals was within or above all guidance ranges. Record Revenue:$4,462.5 million for the full year, comprised of $4,053.2 million from continuing operations with a realized copper price3of $4.91 /lb and a realized gold price3of $3,662/oz, and $409.3 million from discontinued operations. Adjusted EBITDA3:$2,037.3 million for the full year, $1,917.1 million from continuing operations and $120.2 million from discontinued operations. Net Earnings and Adjusted Earnings3: Net earnings attributable to shareholders of the Company was $1,283.0 million, comprised of net earnings of $1,047.2 million ($1.22 per share) from continuing operations and net earnings of $235.8 million from discontinued operations. Adjusted earnings was $769.0 million, $687.9 million ($0.80 per share) from continuing operations and $81.1 million from discontinued operations. Cash Generation:During the year, cash provided by operating activities was $1,342.6 million of which $1,207.9 million from continuing operations and $134.7 million from discontinued operations. Free cash flow from operations3was $835.8 million of which $773.6 million was from continuing operations and $62.2 million was from discontinued operations, which included a non-cash working capital build of $414.0 million from continuing operations. Growth: The Company is continuing to advance its growth initiatives and completed several significant milestones during the year to achieve its long term goal of becoming a top ten copper producer: On January 15, 2025, the Company completed the joint acquisition of Filo Corp. with BHP and formed the 50/50 joint arrangement, Vicuña Corp. ("Vicuña"), to hold the Filo del Sol project and the Josemaria project. On April 16, 2025, the Company completed the sale of Neves-Corvo and Zinkgruvan to Boliden AB for cash proceeds of $1,314.6 million, net of cash disposed and transaction costs. On May 4, 2025, the Company announced an initial Mineral Resource estimate for the Filo del Sol sulphide deposit, an update to the Mineral Resource estimate for the Filo del Sol oxide deposit and an update to the Mineral Resource estimate for the Josemaria deposit, which highlighted the combined project ("Vicuña Project") as one of the largest copper, gold and silver discoveries in the last 30 years. On December 11, 2025, Vicuña Corp. applied for a fiscal stability agreement in Argentina, RIGI PEELP. On December 18, 2025, the Company entered into a definitive agreement to sell its 100% interest in Eagle mine to Talon Metals Corp. ("Talon") in return for 18.4% of Talon's issued and outstanding shares. The transaction was completed on January 9, 2026.

Shareholder Returns:A quarterly dividend of C$0.0275 per share has been declared in the quarter. During the year, the Company paid dividends totaling C$0.1725 per share. In addition, the Company purchased 2,029,380 common shares during the quarter at an average share price of C$26.08 for total consideration of $46.0 million under its normal course issuer bid. During the year, Lundin Mining acquired 15,088,180 common shares at a cost of $150.0 million at an average share price of C$14.05. Outlook:Copper production is forecast to remain stable at approximately 310,000 – 335,000 tonnes annually in 2026, consistent with 2025 production. Consolidated cash cost in 2026 is forecast to be within $1.90/lb to $2.10/lb of copper which is in line with 2025 guidance. As part of the Company's full potential programs, the focus will continue to be on cost reductions and process improvements.

Summary Financial Results

| | Three months ended

December 31, | | Yearended

December 31, | | | | (US$ millions continuing operations except where noted, except per share amounts) | 2025 | 2024 | | 2025 | 2024 | | Revenue | 1,301.5 | 833.3 | | 4,053.2 | 3,270.1 | | Gross profit | 496.8 | 254.4 | | 1,398.0 | 935.8 | | Attributable net earnings (loss)a | 659.9 | (95.5) | | 1,047.2 | 125.4 | | Net earnings (loss) | 912.3 | (59.8) | | 1,417.7 | 267.6 | | Adjusted earningsa,b (all operations) | 370.4 | 119.3 | | 769.0 | 359.0 | | Adjusted earningsa,b-- continuing operations | 363.7 | 102.9 | | 687.9 | 294.9 | | Adjusted earningsa,b,c-- discontinued operations | 6.7 | 16.4 | | 81.1 | 64.1 | | Adjusted EBITDAb (all operations) | 700.6 | 425.6 | | 2,037.3 | 1,707.0 | | Adjusted EBITDAb-- continuing operations | 686.4 | 366.5 | | 1,917.1 | 1,426.9 | | Adjusted EBITDAb,c-- discontinued operations | 14.2 | 59.1 | | 120.2 | 280.1 | | Basic earnings per share ("EPS")a (all operations) | 0.90 | (0.57) | | 1.50 | (0.26) | | Diluted EPSa (all operations) | 0.89 | (0.57) | | 1.49 | (0.26) | | Basic and diluted EPSa-- continuing operations | 0.77 | (0.12) | | 1.22 | 0.16 | | Basic EPSa,c-- discontinued operations | 0.13 | (0.44) | | 0.28 | (0.42) | | Diluted EPSa,c-- discontinued operations | 0.12 | (0.44) | | 0.27 | (0.42) | | Adjusted EPSa,b (all operations) | 0.43 | 0.15 | | 0.90 | 0.46 | | Adjusted EPSa,b-- continuing operations | 0.42 | 0.13 | | 0.80 | 0.38 | | Adjusted EPSa,b,c-- discontinued operations | 0.01 | 0.02 | | 0.09 | 0.08 | | Cash provided by operating activities (all operations) | 560.9 | 620.3 | | 1,342.6 | 1,518.9 | | Cash provided by operating activities - continuing operations | 533.0 | 567.9 | | 1,207.9 | 1,311.4 | | Cash provided by operating activities - discontinued operationsc | 27.9 | 52.4 | | 134.7 | 207.5 | | Adjusted operating cash flowb (all operations) | 677.6 | 313.9 | | 1,732.5 | 1,302.6 | | Adjusted operating cash flowb-- continuing operations | 665.1 | 263.5 | | 1,621.9 | 1,089.9 | | Adjusted operating cash flowb,c-- discontinued operations | 12.5 | 50.4 | | 110.6 | 212.7 | | Adjusted operating cash flow per shareb (all operations) | 0.79 | 0.40 | | 2.02 | 1.68 | | Adjusted operating cash flow per shareb-- continuing operations | 0.78 | 0.34 | | 1.90 | 1.41 | | Adjusted operating cash flow per shareb,c-- discontinued operations | 0.01 | 0.06 | | 0.12 | 0.27 | | Free cash flowb (all operations) | 355.9 | 398.0 | | 594.2 | 571.2 | | Free cash flowb-- continuing operations | 331.9 | 386.0 | | 538.9 | 539.9 | | Free cash flowb,c-- discontinued operations | 24.0 | 12.0 | | 55.3 | 31.3 | | Free cash flow from operationsb (all operations) | 412.5 | 466.0 | | 835.8 | 872.9 | | Free cash flow from operationsb-- continuing operations | 388.3 | 447.4 | | 773.6 | 825.6 | | Free cash flow from operationsb,c-- discontinued operations | 24.2 | 18.6 | | 62.2 | 47.3 | | Cash and cash equivalents | 296.2 | 357.5 | | 296.2 | 357.5 | | Net cash (debt)b | 77.4 | (1,332.4) | | 77.4 | (1,332.4) |

| aAttributable to shareholders of Lundin Mining Corporation. | | bThese are non-GAAP measures. Please refer to the Company's discussion of non-GAAP and other performance measures in its MD&A for the year ended December 31, 2025 and the Reconciliation of Non-GAAP Measures section at the end of this news release. | | c Discontinued operations results include Eagle's annual financial results, Neves-Corvo and Zinkgruvan financial results to April 16, 2025 and the revaluation of contingent consideration as at December 31, 2025. |

Quarterly Financial Results

The Company generated revenue from continuing operations of $1,301.5 million (Q4 2024 - $833.3 million) which benefitted from higher realized copper and gold prices. Gross profit from continuing operations of $496.8 million was $242.4 million higher than in the prior year comparable period of $254.4 million. The increase was primarily due to higher realized copper and gold prices, lower treatment charges, and higher sales volumes at Caserones partially offset by a non-cash long-term ore stockpile inventory write-down at Chapada of $99.9 million ($65.9 million net of tax). Net earnings from continuing operations increased to $912.3 million from $59.8 million net loss in the prior year comparable period primarily due to an increase in gross profit and a deferred tax recovery at Caserones of $517.0 million. Prior year impairments of Suruca and Alcaparrosa further contributed to the increase. Adjusted earnings2from continuing operations of $363.7 million increased from $102.9 million in the prior year comparable period primarily as a result of higher gross profit. Cash provided by operating activities related to continuing operations of $533.0 million decreased from $567.9 million in the prior year comparable period largely due to a working capital build of $132.1 million in the quarter compared to $305.4 million working capital release in the prior year comparable period. Sustaining capital expenditures5from continuing operations of $157.6 million increased from $131.4 million in the prior year comparable period. Expansionary capital expenditures6of $43.5 million were in line with the prior year comparable period of $50.5 million. Free cash flow2 from continuing operations of $331.9 million decreased from $386.0 million in the prior year comparable period due to working capital build and increased sustaining capital expenditure related to continuing operations. As at February 19, 2026, the Company had cash of over $500 million and net cash of over $200 million. At December 31, 2025, the Eagle reporting segment met the criteria to be classified as held-for-sale and discontinued operations. Accordingly, all assets and liabilities relating to Eagle have been classified as held for sale at December 31, 2025. Earnings (loss) from discontinued operations includes the financial results of Eagle, Neves-Corvo and Zinkgruvan reporting segments.

Operational Performance

Total Production

| (Contained metal)a | 2025 | 2024 | | | | | | | | | | YTD | Q4 | Q3 | Q2 | Q1 | Total | Q4 | Q3 | Q2 | Q1 | | | | | | | | | | | | | | | Continuing Operations | | | | | | | | | | | | Copper (t)b | 322,326 | 85,075 | 84,999 | 77,563 | 74,689 | 330,509 | 92,832 | 90,745 | 70,051 | 76,881 | | Gold (oz)b | 141,859 | 34,129 | 37,763 | 38,118 | 31,849 | 158,436 | 46,456 | 46,712 | 32,439 | 32,829 | | Molybdenum (t)b | 2,082 | 526 | 574 | 380 | 602 | 3,183 | 912 | 693 | 714 | 864 | | | | | | | | | | | | | | Discontinued OperationsC | | | | | | | | | | | | Copper (t) | 17,225 | 1,957 | 2,354 | 3,735 | 9,179 | 38,558 | 8,659 | 9,110 | 9,657 | 11,132 | | Nickel (t) | 9,907 | 2,174 | 2,724 | 2,713 | 2,296 | 7,486 | 1,617 | 893 | 1,721 | 3,255 | | Zinc (t) | 58,233 | -- | -- | 9,285 | 48,948 | 191,704 | 51,946 | 46,610 | 47,460 | 45,688 |

| a - Tonnes (t) and ounces (oz). | | b - Candelaria and Caserones production are on a 100% basis. | | c - Discontinued operations results include Eagle's annual production, and Neves-Corvo and Zinkgruvan production to April 16, 2025. |

| | | 5This is a supplementary financial measure. Please refer to the Company's discussion of non-GAAP and other performance measures in its MD&A for the year ended December 31, 2025 and the Reconciliation of Non-GAAP Measures section at the end of this news release. | | 6These are non-GAAP measures. Please refer to the Company's discussion of non-GAAP and other performance measures in its MD&A for the year ended December 31, 2025 and the Reconciliation of Non-GAAP Measures section at the end of this news release. |

_Candelaria (80% owned):_Candelaria produced, on a 100% basis, 145,471 tonnes of copper, 80,528 ounces of gold and 1.8 million ounces of silver during the year. Annual copper and gold production in 2025 was within the most recent guidance ranges. During the year, mining in the open pit was focused on Phase 11 with some contribution from higher grade areas of Phase 12. Production continued to benefit from higher throughput at the mill due to softer ore feed and finer ore size. Consistent with the mine plan, realized grades during the year were lower than the prior year, which led to lower production. Copper cash cost7of $1.92/lb was within the most recent cash cost guidance range and benefitted from higher metal prices for by-product credits and was impacted by the lower average grades during the year. During the fourth quarter, early renewals of labour agreements were completed with five unions at Candelaria. The agreements are each for three-year terms and expire in 2029, replacing agreements expiring during 2026. The proactive early renewal of these agreements will contribute to labour stability and operational efficiency at Candelaria in the medium term.

_Caserones_(70% owned):Caserones produced, on a 100% basis, 132,881 tonnes of copper and 2,082 tonnes of molybdenum. Annual production for copper was at the top-end of the most recent production guidance range and fourth quarter copper production was the highest since the mine was acquired by the Company in mid-2023. Mining during the year focused on Phase 6 and copper production benefitted from higher throughput and recoveries. Copper cathode production during the year benefitted from increased material placed on the dump leach in previous periods. Copper cash cost of $2.17/lb was within the low-end of the most recent production guidance range and benefitted from strong production as a result of higher throughput and recoveries, reduced treatment charges, and reduced labour expenses.

_Chapada (100% owned):_Chapada produced 43,974 tonnes of copper and approximately 61,331 ounces of gold during the year. Production for both metals were within the most recent production guidance ranges. Mining in the year primarily focused on ore from South and North pits in line with the planned mine sequencing. Annual copper production benefitted from higher throughput. Gold production in the year was negatively impacted by reduced grades and recoveries relative to 2024. Copper cash cost of $0.75/lb was below the low end of the most recent guidance range and benefitted from increased by-product credits as a result of higher realized gold prices.

_Eagle (100% owned):_Eagle produced 9,907 tonnes of nickel and 8,906 tonnes of copper during the year. The ramp rehabilitation in Eagle East was completed in the first quarter of the year, allowing mining and processing activities to return to normal levels. Annual nickel production in 2025 was within the most recent production guidance range, while annual copper production was just below the low end of the most recent guidance range but was within the original guidance range. Nickel cash cost7 of $2.55/lb benefitted from higher throughput and improved recoveries. Annual cash cost per pound7for the year exceeded the high end of the most recent production guidance range. Eagle results are reported as discontinued operations in the Company's consolidated financial statements and MD&A. As at December 31, 2025, the assets and liabilities of Eagle mine are reported as held for sale.