Lundin Mining Corporation press release

Lundin Mining Reports Second Quarter 2026 Results; Strong Operational Performance Generated Near-Record Revenue and Free Cash Flow

2026-08-05

TSX - Toronto Stock Exchange · Copper · Gold · Silver · Iron · Molybdenum · Nickel · Canada · Corporate Finance

Canada NewsWire

VANCOUVER, BC, Aug. 5, 2026/CNW/ -- (TSX: LUN) (Nasdaq Stockholm: LUMI) Lundin Mining Corporation ("Lundin Mining" or the "Company") today reported its second quarter 2026 financial results. Unless otherwise stated, results are from continuing operations and presented in US dollars on a 100% basis.

Jack Lundin, President and CEO commented, "We delivered another quarter of strong operational and financial performance, producing approximately 77,000 tonnes of copper and 33,000 ounces of gold while generating near-record revenue of $1.2 billion and adjusted EBITDA of $658 million. Our operations continued to perform well, with strong contributions from Caserones and improved recoveries at Chapada, while Candelaria was impacted by planned mine sequencing adjustments.

"While higher diesel prices increased costs during the quarter and recent severe winter weather has temporarily disrupted operations at Caserones, we remain well positioned to achieve our annual copper production guidance of 310,000 to 335,000 tonnes and expect cash costs to finish within our guided range of $1.90 - $2.10/lb.

"We also continued to advance our growth strategy, progressing with approval for the construction of an additional ball mill at Chapada which is key to unlocking the Saúva project. Another important milestone at Vicuña Corp. was reached with the approval of RIGI PEELP status in Argentina, supporting our objective of reaching a Stage 1 sanction decision by year-end. Lastly, in the second quarter, we strengthened our ownership in the Vicuña district through the acquisition of an additional 5% interest in Caserones and a 30.9% interest in Los Helados, while maintaining a net cash position and continuing to return capital to shareholders through our share repurchase program.

"Looking ahead, our priorities remain clear: operating safely, delivering consistent performance, advancing our organic growth opportunities and progressing Vicuña toward sanctioning. Supported by a portfolio of long-life, high-margin assets and one of the industry's strongest copper growth pipelines, Lundin Mining is well positioned to deliver long-term value for shareholders."

Second Quarter Operational and Financial Highlights

Continued consistent operational performance, supported by elevated metal prices, drove strong cash flow generation during the quarter, enabling the Company to end the period with a net cash position of $79.0 million after completing the $215 million acquisition of an additional 5% interest in Caserones and a 30.9% interest in Los Helados. The Company continued to execute on its growth strategy with the approval of the additional ball mill at Chapada as part of the Saúva project in Brazil and the approval by the Argentinian government of the Incentive Regime for Large Investments ("RIGI") for the Vicuña Project. The Company also returned capital to shareholders through the repurchase of approximately 2.2 million shares under its normal course issuer bid.

Copper Production:76,877 tonnes at a consolidated cash cost1 of $2.11 /lb. Gold Production:33,427 ounces of gold was produced. Revenue:$1,212.7 million with a realized copper price1of $6.51 /lb and a realized gold price1of $4,385 /oz. Net Earnings and Adjusted Earnings1:Net earnings attributable to shareholders of the Company was $278.4 million ($0.33 per share) and adjusted earnings was $256.7 million ($0.30 per share). Adjusted EBITDA1:$658.0 million for the quarter. Capital Expenditures1:Sustaining capital expenditures2were $110.7 million and expansionary capital expenditures1were $83.1 million. Cash Generation:Cash provided by operating activities in the quarter was $458.8 million, adjusted free cash flow from operations1 was $395.9 million. Shareholder Returns:Under its normal course issuer bid, the Company repurchased 2,202,900 common shares for aggregate purchases of approximately $56.2 million and declared a dividend of C$0.0275 per share during the quarter. The Board has also approved an increase of up to $100 million to the share repurchase program for the remainder of 2026. Growth:The Company is continuing to advance its growth initiatives and completed several significant milestones in the quarter to achieve its long term goal of becoming a top ten copper producer: On April 7, 2026, the Company completed the acquisition from JX Advanced Metals Corporation and affiliates ("JX") of an additional 5% interest in the Caserones mine, along with a 30.9% interest in the Los Helados Project and a 0.62% smelter return royalty on Los Helados for total consideration of $215 million. Upon closing of the transaction, the Company's ownership interest in Caserones mine increased to 75%. During the quarter, Vicuña Corp. achieved a major milestone and received approval for the inclusion of the Josemaria and Filo del Sol deposits (collectively, the "Vicuña Project" or the "Project") to the RIGI under the Long-Term Strategic Export Projects designation ("PEELP") in Argentina. Vicuña is the first copper mining project in Argentina to be granted the more favourable RIGI PEELP status. The approval provides long-term fiscal stability and investment certainty, supporting progress toward a Stage 1 investment decision as early as year-end. Subsequent to the quarter, Vicuña secured a long-term royalty agreement and infrastructure trust (the "Provincial Agreement") with the Government of San Juan Province, Argentina (the "Province"), which will provide further economic stability for the project. An advanced infrastructure trust contribution of $250 million (Lundin Mining's attributable share: $125 million) is expected to be made in Q4 2026 providing upfront funding for provincial infrastructure and community initiatives, while granting the project a five-year payment holiday from first production from required infrastructure trust contributions. On June 17, 2026, the Company hosted a Capital Markets Day, which outlined medium-term, low-cost brownfield expansion opportunities alongside the Vicuña Project which offers transformational long-term growth potential. The Company also provided a financial outlook for the next five and ten years that outlined a clear investment thesis and the ability to fund future growth plans. As part of the Company's near-term growth strategy, it has approved the construction of an additional ball mill at Chapada to achieve higher recoveries as part of the Saúva growth project. Construction is expected to commence by year-end, with commissioning targeted for late 2027.

Net Cash1:As at June 30, the net cash position of the Company was $79.0 million. As at August 5, net cash was approximately $75 million. Outlook:Notwithstanding the impact of the severe winter storm, the Company anticipates 2026 consolidated production and cash cost to fall within the annual guidance ranges. Cash cost guidance at Chapada has been reduced to $0.75 - $0.95 /lb copper. The consolidated cash cost guidance remains unchanged from $1.90 - $2.10 /lb copper. Annual expansionary capital expenditure guidance has been updated from $50 million to $85 million to reflect the sanctioning of the ball mill construction at Chapada.

| 1These are non-GAAP measures. Please refer to the Company's discussion of non-GAAP & other performance measures in its MD&A for the three and six months ended June 30, 2026 and the Reconciliation of Non-GAAP Measures section at the end of this news release. | | 2 Sustaining capital expenditures is a supplementary financial measure, see the Company's discussion of non-GAAP & other performance measures in its MD&A for the three and six months ended June 30, 2026 and the Reconciliation of Non-GAAP Measures section at the end of this news release. |

Summary Financial Results

| | 2026 | | 2025 | | | | | | | ($ millions continuing operations) | YTD1 | Q2 | Q1 | Total1 | Q4 | Q3 | Q2 | Q1 | | Revenue and profit | | | | | | | | | | Revenue | 2,371.5 | 1,212.7 | 1,158.8 | 4,053.2 | 1,301.5 | 953.9 | 878.2 | 919.6 | | Production costs | (1,000.0) | (513.0) | (487.0) | (1,948.1) | (546.8) | (455.3) | (466.3) | (479.8) | | Depreciation, depletion and amortization | (268.8) | (134.5) | (134.3) | (618.9) | (169.7) | (162.2) | (153.4) | (133.5) | | Gross profit | 1,102.7 | 565.2 | 537.5 | 1,398.0 | 496.8 | 336.4 | 258.5 | 306.3 | | Net earnings | 757.7 | 370.7 | 387.0 | 1,417.7 | 912.3 | 175.1 | 149.2 | 181.2 | | - attributable to shareholders | 558.9 | 278.4 | 280.5 | 1,047.2 | 659.9 | 133.6 | 115.7 | 137.9 | | Adjusted earnings2 | 521.3 | 256.7 | 264.6 | 687.9 | 363.7 | 143.2 | 87.8 | 93.8 | | Adjusted EBITDA2 | 1,284.7 | 658.0 | 626.7 | 1,917.1 | 686.4 | 472.2 | 376.5 | 382.2 | | | | | | | | | | | | Cash flow | | | | | | | | | | Cash provided by operating activities | 952.5 | 458.8 | 493.7 | 1,207.9 | 533.0 | 254.9 | 292.7 | 127.6 | | Adjusted operating cash flow2 | 944.6 | 494.5 | 450.1 | 1,621.9 | 665.1 | 366.4 | 261.1 | 329.5 | | Free cash flow from operations2 | 739.9 | 360.2 | 379.7 | 773.6 | 388.3 | 160.1 | 195.2 | 30.2 | | Free cash flow2 | 578.6 | 265.0 | 313.6 | 538.9 | 331.9 | 101.3 | 149.4 | (43.4) | | | | | | | | | | | | Capital expenditures | | | | | | | | | | Sustaining capital expenditure3 | 236.5 | 110.7 | 125.8 | 477.8 | 157.6 | 102.5 | 109.6 | 108.1 | | Expansionary capital expenditure3 | 137.4 | 83.1 | 54.3 | 191.2 | 43.5 | 51.1 | 33.7 | 62.9 | | | | | | | | | | | | Per share amounts | | | | | | | | | | EPS - Basic ($/share) | 0.65 | 0.33 | 0.33 | 1.22 | 0.77 | 0.16 | 0.14 | 0.16 | | EPS - Diluted ($/share) | 0.65 | 0.32 | 0.33 | 1.22 | 0.77 | 0.16 | 0.13 | 0.16 | | Adjusted EPS2 ($/share) | 0.61 | 0.30 | 0.31 | 0.80 | 0.42 | 0.17 | 0.10 | 0.11 | | Dividends declared (C$/share) | 0.0550 | 0.0275 | 0.0275 | 0.1725 | 0.0275 | 0.0275 | 0.0275 | 0.09 |

| 1The sum of quarterly amounts may differ from year-to-date and total results due to rounding. | | 2 These are non-GAAP measures. Please refer to the Company's discussion of non-GAAP & other performance measures in its MD&A for the three and six months ended June 30, 2026 and the Reconciliation of Non-GAAP Measures section at the end of this news release. | | 3 Capital expenditures are reported on a cash basis, as presented in the consolidated statement of cash flows and excluding capitalized interest. Sustaining capital expenditures is a supplementary financial measure and expansionary capital expenditures is a non-GAAP measure – please refer to the Company's discussion of non-GAAP & other performance measures in its MD&A for the three and six months ended June 30, 2026 and the Reconciliation of Non-GAAP Measures section at the end of this news release. |

Production Overview

| | | 2026 | 2025 | | | | | | | | | (contained metal) | YTD | Q2 | Q1 | Total | Q4 | Q3 | Q2 | Q1 | | | Copper (t) | | | | | | | | | | | Caserones (100%) | 72,516 | 33,964 | 38,552 | 132,881 | 39,612 | 35,270 | 29,290 | 28,709 | | | Candelaria (100%) | 61,736 | 30,928 | 30,808 | 145,471 | 34,272 | 37,129 | 36,999 | 37,071 | | | Chapada | 22,559 | 11,985 | 10,574 | 43,974 | 11,191 | 12,600 | 11,274 | 8,909 | | | Total | 156,811 | 76,877 | 79,934 | 322,326 | 85,075 | 84,999 | 77,563 | 74,689 | | | Gold (oz) | | | | | | | | | | | Candelaria (100%) | 35,582 | 17,843 | 17,739 | 80,528 | 19,055 | 19,899 | 20,574 | 21,000 | | | Chapada | 29,382 | 15,584 | 13,798 | 61,331 | 15,074 | 17,864 | 17,544 | 10,849 | | | Total | 64,964 | 33,427 | 31,537 | 141,859 | 34,129 | 37,763 | 38,118 | 31,849 | | | Molybdenum (t) | | | | | | | | | | | Caserones (100%) | 967 | 378 | 589 | 2,082 | 526 | 574 | 380 | 602 | | | Silver (koz) | | | | | | | | | | | Candelaria (100%) | 582 | 291 | 291 | 1,798 | 441 | 477 | 431 | 449 | | | Chapada | 133 | 66 | 67 | 258 | 66 | 73 | 69 | 50 | | | Total | 715 | 357 | 358 | 2,056 | 507 | 550 | 500 | 499 |

Sales Volumes

| | 2026 | 2025 | | | | | | | | (payable metal) | YTD | Q2 | Q1 | Total | Q4 | Q3 | Q2 | Q1 | | Copper (t) | | | | | | | | | | Caserones (100%) | 69,940 | 33,479 | 36,461 | 138,287 | 45,134 | 26,896 | 30,076 | 36,181 | | Candelaria (100%) | 60,335 | 29,512 | 30,823 | 140,500 | 32,882 | 36,041 | 36,603 | 34,974 | | Chapada | 21,454 | 11,083 | 10,371 | 42,040 | 9,413 | 13,997 | 10,284 | 8,346 | | Total | 151,729 | 74,074 | 77,655 | 320,827 | 87,429 | 76,934 | 76,963 | 79,501 | | Gold (oz) | | | | | | | | | | Candelaria (100%) | 34,278 | 17,025 | 17,253 | 76,537 | 17,700 | 19,041 | 20,021 | 19,775 | | Chapada | 26,388 | 13,737 | 12,651 | 56,569 | 12,403 | 19,735 | 14,402 | 10,029 | | Total | 60,666 | 30,762 | 29,904 | 133,106 | 30,103 | 38,776 | 34,423 | 29,804 | | Molybdenum (t) | | | | | | | | | | Caserones (100%) | 984 | 354 | 630 | 1,976 | 451 | 508 | 389 | 628 | | Silver (koz) | | | | | | | | | | Candelaria (100%) | 463 | 219 | 244 | 1,598 | 372 | 434 | 395 | 397 | | Chapada | 62 | 33 | 29 | 129 | 26 | 48 | 30 | 25 | | Total | 525 | 252 | 273 | 1,727 | 398 | 482 | 425 | 422 |

Caserones (Chile)

Operating Statistics

| | | 2026 | 2025 | | | | | | | | | (100% Basis) | YTD | Q2 | Q1 | Total | Q4 | Q3 | Q2 | Q1 | | | | | | | | | | | | | | Ore mined (kt) | 17,423 | 9,101 | 8,322 | 36,712 | 8,553 | 8,479 | 9,680 | 10,000 | | | Ore milled (kt) | 16,595 | 8,379 | 8,216 | 33,383 | 8,200 | 8,530 | 7,984 | 8,669 | | | Ore placed on leach (kt) | 7,396 | 3,868 | 3,528 | 16,777 | 3,142 | 3,910 | 4,962 | 4,763 | | | Grade | | | | | | | | | | | Copper (%) | 0.44 | 0.41 | 0.47 | 0.40 | 0.47 | 0.43 | 0.37 | 0.33 | | | Molybdenum (%) | 0.016 | 0.017 | 0.015 | 0.011 | 0.013 | 0.011 | 0.008 | 0.011 | | | Production (contained metal) | | | | | | | | | | | Copper in concentrate (t) | 58,250 | 27,629 | 30,621 | 107,064 | 32,324 | 29,010 | 23,490 | 22,240 | | | Copper cathode (t) | 14,266 | 6,335 | 7,931 | 25,817 | 7,288 | 6,260 | 5,800 | 6,469 | | | Total copper (t) | 72,516 | 33,964 | 38,552 | 132,881 | 39,612 | 35,270 | 29,290 | 28,709 | | | Molybdenum (t) | 967 | 378 | 589 | 2,082 | 526 | 574 | 380 | 602 | | | Revenue ($ millions) | 1,024.2 | 517.9 | 506.3 | 1,618.9 | 598.5 | 311.8 | 322.7 | 385.9 | | | Production costs ($ millions) | 411.7 | 212.4 | 199.3 | 854.5 | 247.3 | 158.5 | 204.7 | 243.9 | | | Gross profit ($ millions) | 525.8 | 261.2 | 264.6 | 552.2 | 290.8 | 103.8 | 61.5 | 96.1 | | | Cash cost ($/lb copper)1 | 1.85 | 2.14 | 1.58 | 2.17 | 1.88 | 1.86 | 2.45 | 2.52 | | | Sustaining capital ($ millions)1 | 97.1 | 42.2 | 54.9 | 156.3 | 56.8 | 29.4 | 31.9 | 38.2 | | | All-in sustaining cost ("AISC") ($/lb copper)1 | 2.86 | 3.10 | 2.63 | 3.03 | 2.74 | 2.74 | 3.34 | 3.36 |

| 1AISC per pound sold and Cash cost per pound sold are non-GAAP measures and Sustaining capital is a supplementary financial measure, see the Company's discussion of non-GAAP & other performance measures in its MD&A for the three and six months ended June 30, 2026 and the Reconciliation of Non-GAAP Measures section at the end of this news release. |

Q2 2026 Performance

During the quarter, mining activities were primarily focused on Phase 6, with some contribution from Phase 7. Copper concentrate production continued to benefit from high grades in Phase 6 and strong throughput as a result of initiatives under the Full Potential program, which focuses on achieving sustainable operational efficiencies and financial savings. Additional irrigated area in the dump leach continues to benefit copper cathode production.

Molybdenum production in the quarter was impacted by lower recoveries as a result of ore characteristics in the current mine sequence of the open pit.

YTD 2026 Compared to 2026 Guidance

Copper production is in line with annual production guidance, reflecting the planned first-half weighting of the 2026 production profile supported by higher realized grades from Phase 6. Once Caserones is fully operational following the temporary suspension resulting from the severe winter storm in July, consistent copper cathode production and throughput are expected to continue for the remainder of the year.

Growth Projects

The Caserones cathode plant capacity is approximately 35,000 tonnes of copper cathode production per year, representing an opportunity to increase production from current levels through higher utilization rates. Additional oxide material placed on the dump leach and improved leaching practices led to stronger cathode production in 2025 and through the first half of 2026. An additional project to further increase cathode production is being executed in two phases. Phase 1 is focused on operational and leaching improvements, including increasing tonnage placed on the dump leach, expanding irrigation areas, and increasing irrigation acidity, which are expected to support production reaching the plant's current capacity of 35,000 tonnes per year. Phase 2 is expected to further increase cathode production capacity to 40,000 tonnes per year through the repowering of the existing rectifiers.

Exploration Update

At Caserones, four rigs drilled 7,610 metres (eight completed holes, three in-progress) during the quarter, targeting high-grade copper breccias at Angelica, Centauro, and Caserones SW. The road to Cordillera is nearing completion, with two drill pads completed. Results from these drilling campaigns are pending.

Candelaria (Chile)

Operating Statistics

| | | 2026 | 2025 | | | | | | | | | (100% Basis) | YTD | Q2 | Q1 | Total | Q4 | Q3 | Q2 | Q1 | | | | | | | | | | | | | | Ore mined (kt) | 14,267 | 6,546 | 7,721 | 37,018 | 7,935 | 9,145 | 9,721 | 10,217 | | | Ore milled (kt) | 15,454 | 7,587 | 7,867 | 31,579 | 7,972 | 8,103 | 7,752 | 7,752 | | | Grade | | | | | | | | | | | Copper (%) | 0.44 | 0.45 | 0.43 | 0.50 | 0.47 | 0.49 | 0.52 | 0.52 | | | Gold (g/t) | 0.10 | 0.10 | 0.10 | 0.12 | 0.11 | 0.11 | 0.12 | 0.12 | | | Production (contained metal) | | | | | | | | | | | Copper (t) | 61,736 | 30,928 | 30,808 | 145,471 | 34,272 | 37,129 | 36,999 | 37,071 | | | Gold (oz) | 35,582 | 17,843 | 17,739 | 80,528 | 19,055 | 19,899 | 20,574 | 21,000 | | | Revenue ($ millions) | 929.6 | 476.2 | 453.4 | 1,769.0 | 518.5 | 426.8 | 404.6 | 419.1 | | | Production costs ($ millions) | 418.2 | 216.2 | 202.0 | 783.9 | 226.6 | 199.2 | 186.1 | 172.1 | | | Gross profit ($ millions) | 369.5 | 188.3 | 181.2 | 685.1 | 218.9 | 144.7 | 143.6 | 177.8 | | | Cash cost ($/lb copper)1 | 2.38 | 2.63 | 2.15 | 1.92 | 2.29 | 1.87 | 1.81 | 1.75 | | | Sustaining capital ($ millions)1 | 92.8 | 45.5 | 47.3 | 224.4 | 79.5 | 46.9 | 50.2 | 47.7 | | | AISC ($/lb copper)1 | 3.22 | 3.48 | 2.98 | 2.75 | 3.51 | 2.55 | 2.53 | 2.46 |

| 1AISC per pound sold and Cash cost per pound sold are non-GAAP measures and Sustaining capital is a supplementary financial measure, see the Company's discussion of non-GAAP & other performance measures in its MD&A for the three and six months ended June 30, 2026 and the Reconciliation of Non-GAAP Measures section at the end of this news release. |

Q2 2026 Performance

Open pit mining continued at Phase 11 during the quarter but due to temporary equipment unavailability, mining was accelerated at Phase 12 which resulted in slightly higher average grade compared to Q1.

Cash cost during the quarter was impacted by increased mining at Phase 12 which has a higher strip ratio, therefore leading to increased costs of waste movement. Cash cost was also impacted by elevated diesel costs.

YTD 2026 Compared to 2026 Guidance

Production remains in line with annual guidance. Candelaria's production profile is weighted towards the second half of the year due to increased availability of higher-grade Phase 12 ore, combined with increased underground mining rates as the underground insourcing initiative nears completion.

Cash cost continued to benefit from strong gold and silver prices. In H2 2026, cash cost is expected to decrease due to anticipated higher average grades with forecast full year cash cost anticipated to stabilize within the annual guidance range.

Growth Projects

The Candelaria underground expansion project is expected to increase underground throughput capacity to approximately 22,000 tonnes per day from current production levels, targeting a medium-term increase in annual copper production of 10% or approximately 14,000 tonnes of copper. The opportunity includes phased insourcing of the Company's underground mining contract and an increase in the number of active mining stopes. This opportunity is not included in Candelaria's three-year guidance figures. Candelaria's first half 2026 results reflected lower underground mining rates as the Company insources the underground mining contract. Insourcing is nearing completion and mining rates are expected to increase in H2 2026 before stabilizing at 14,000 tonnes per day by the end of 2027. Planning is underway to support a gradual increase in underground mining rates, reaching approximately 22,000 tonnes per day by 2030.