Lundin Mining Corporation press release

/C O R R E C T I O N -- Lundin Mining Corporation/

2026-06-17

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

Canada NewsWire

In the news release, Lundin Mining Capital Markets Day Highlights Strategic Vision for Leading Growth and Shareholder Returns, issued 16-Jun-2026 by Lundin Mining Corporation over CNW, we are advised by the company that changes have been made. The complete, corrected release follows with additional details at the end:

Lundin Mining Capital Markets Day Highlights Strategic Vision for Leading Growth and Shareholder Returns

VANCOUVER, BC, June 16, 2026/CNW/ - (TSX: LUN) (Nasdaq Stockholm: LUMI)Lundin Mining Corporation ("Lundin Mining" or the "Company") will host a Capital Markets Day on June 17, 2026, to outline its strategic vision to become a top-ten global copper producer. The Company's goal is to reach annual production of over 500,000 tonnes of copper and 550,000 ounces of gold. To support this vision, management will present on several growth initiatives across current operations as well as on the development plans for the Vicuña district. Unless otherwise stated, dollar amounts are presented in United States dollars on a real term 2026 basis.

Jack Lundin, President and CEO commented, "We are pleased to host our second annual Capital Markets Day and share our vision for Lundin Mining's next phase of growth. The foundation of our strategy is built on stable operational performance, disciplined planning, and a continuous focus on delivering strong returns for shareholders. Through consistent execution at our operations, low-risk brownfield expansion opportunities at Candelaria, Caserones, and Chapada, and the long-term transformational potential of the Vicuña Project, we have established a clear path for sustainable growth. At our Capital Markets Day event, we will provide a detailed look at our business projections over the next five and ten years, including the operational, financial, and growth outlook that underpins our vision of a compelling long-term trajectory for Lundin Mining."

Growth Initiatives

The Company has outlined medium-term brownfield expansion opportunities over the next two to four years to grow copper production through low capital intensity projects at Candelaria, Caserones and Chapada as described below.

Caserones: Following the leaching improvements highlighted at last year's Capital Markets Day, cathode production has incrementally increased by 7,000 to 10,000 tonnes of copper per year to approximately 25,000 tonnes. The cathode plant continues to be underutilized, and the Company expects to unlock a further 10,000 to 15,000 tonnes of annual cathode copper production by securing additional oxide material and expanding plant capacity. This would bring the total cathode plant capacity to approximately 40,000 tonnes per annum which partially offsets planned lower sulphide head grades in future years. Candelaria:Underground contractor insourcing at Candelaria is nearing completion which could enable an expansion to underground mining operations. The transition to in-house underground mining operations is expected to boost copper production through higher productivity and improved equipment availability, leading to faster development rates. In addition, another Phase to the open pit at Candelaria is being studied which could add additional production and mine life. Chapada:Engineering studies for the Saúva project have identified the potential to add approximately 15,000 tonnes of copper and 45,000 ounces of gold per year over a four-year period, representing production increases of approximately 30% for copper and 75% for gold at Chapada. This brownfield project involves installation of an additional ball mill at Chapada and development of the Saúva deposit, located roughly 15 km from the mine. The Company is pleased to announce it has sanctioned construction of the ball mill, which is expected to be completed by the end of 2027 with first ore from Saúva anticipated in early 2029.

In addition to the growth initiatives at its operations, Lundin Mining holds a 50% interest in the Vicuña Project (comprised of the Filo del Sol and Josemaria deposits), which has the potential to transform the Company's copper, gold and silver production profile.

Vicuña Project: The recently published integrated technical report (see press release dated February 16, 2026) outlines a Tier 1 asset that has the potential to rank among the top five copper, gold, and silver mines globally once in production. The Company continues to advance the Project in preparation for a sanctioning decision by the end of the year.

Financial Outlook

The Company continues to return capital to investors targeting an annual distribution of $220 million through a combination of regular dividends and share buybacks. The Company's 2026 production guidance remains unchanged and, based on the mid-point of the production guidance and on the Company's forecast copper price of $5.50/lb copper and forecast gold price of $4,000/oz, revenue for 2026 is expected to be approximately $4.5 billion with adjusted earnings before interest, taxes, depreciation and amortization (EBITDA)1of $2.3 billion and adjusted free cash flow from operations2of $1.2 billion.

Given the Company's significant long-term production growth trajectory, including the Caserones cathode expansion, Phase 1 of the Saúva Project, and the Vicuña Project, the Company is providing a five- and ten-year financial outlook3. During the period from 2026 to 2030 cumulative adjusted EBITDA1is forecast to be approximately $13.2 billion while cumulative adjusted free cash flow from operations2is forecast to be approximately $8.1 billion1. During the period from 2031 to 2035, based on long-term commodity prices of $5.50/lb copper and $3,700/oz gold, cumulative adjusted EBITDA1is forecast to be approximately $22.3 billion, and cumulative adjusted free cash flow from operations2is forecast to be approximately $15.5 billion.

2026 Guidance Updates

In addition, the Company is providing an update on its cash cost and capital expenditure guidance. The Company remains on track to meet annual consolidated production guidance for copper and gold for 2026.

Cash cost guidance at Chapada has been reduced as cash costs continue to benefit from increased realized prices on by-product gold sales, cash cost guidance for the other assets remains unchanged. The consolidated cash cost4guidance remains unchanged from $1.90 - $2.10/lb copper. Annual expansionary capital expenditure5guidance has been updated from $50 million to $85 million to reflect the sanctioning of the ball mill construction at Chapada.

Updated 2026 Production and Cash Cost Guidance

| | | | Guidancea | | Revised Guidance | | | | | (contained metal) | Production | Cash Cost ($/lb)b | | Production | Cash Cost ($/lb)b,c | | | | Copper (t) | Candelaria (100%) | 135,000 – 145,000 | 2.05 – 2.25 | | 135,000 – 145,000 | 2.05 – 2.25 | | | | Caserones (100%) | 130,000 – 140,000 | 2.05 – 2.25 | | 130,000 – 140,000 | 2.05 – 2.25 | | | | Chapada | 45,000 – 50,000 | 1.00 – 1.20d | | 45,000 – 50,000 | 0.75 – 0.95d | | | | Total | 310,000 – 335,000 | 1.90 – 2.10 | | 310,000 – 335,000 | 1.90 – 2.10 | | | Gold (koz) | Candelaria (100%)e | 77 – 87 | | | 77 – 87 | | | | | Chapada | 57 – 62 | | | 57 – 62 | | | | | Total | 134 – 149 | | | 134 – 149 | |

| a. Guidance as outlined in the news release "Lundin Mining Announces 2025 Production Results and 2026 Guidance" dated January 21, 2026. Please refer to the January 21, 2026 news release for related assumptions and estimates.

b. Cash cost is a non-GAAP measure. For equivalent historical non-GAAP 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, 2025, and the three months ended March 31, 2026. | | c. 2026 revised projected cash costs are based on various assumptions and estimates, including but not limited to: production volumes, commodity prices (Cu: $5.50/lb, Au: $3,700/oz, Ag: $50.00/oz), foreign exchange rates (USD/CLP:900, USD/BRL:5.25) and operating costs.

d. 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. | | e. 68% of Candelaria's total gold and silver production are subject to a streaming agreement. Cash costs are calculated based on receipt of approximately $437/oz gold and $4.36/oz silver. |

2026 Capital Expenditure Guidanceb,c

| | ($ millions) | Guidancea | Revisions | Revised Guidance | | | Candelaria (100% basis) | 215 | - | 215 | | | Caserones (100% basis) | 235 | - | 235 | | | Chapada | 100 | - | 100 | | | Total Sustaining | 550 | - | 550 | | | Expansionary - (100% basis) | 50 | 35 | 85 | | | Expansionary - Vicuña Joint Arrangement (50% basis) | 395 | - | 395 | | | Total Capital Expenditures | 995 | 35 | 1,030 |

| a. Guidance as outlined in the news release "Lundin Mining Announces 2025 Production Results and 2026 Guidance" dated January 21, 2026. Please refer to the January 21, 2026 news release for related assumptions and estimates. | | b. Sustaining capital expenditure is a supplementary financial measure, and expansionary capital expenditure is a non-GAAP measure. For more information and 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, 2025 and three months ended March 31, 2026 for discussion of non-GAAP measures. | | c. Capital expenditures are based on various assumptions and estimates, including, but not limited to foreign currency exchange rates (2026 - CLP/USD:900, USD/BRL:5.25). |

Webcast / Conference Call details

Date: Wednesday, June 17, 2026 Time: 9:00 AM ET | 2:00 PM BST Webcast: WEBCAST LINKor https://lundin-mining.videosync.fi/2026-06-17-cmd

An archive of the webcast will be available at www.lundinmining.comafter the event.

Qualified Persons

The scientific and technical information in this press release has been prepared in accordance with the disclosure standards of National Instrument 43-101 ("NI 43-101") and has been reviewed and approved by Eduardo Cortés, Registered Member (Comisión Calificadora de Competencias en Recursos y Reservas Mineras (Chilean Mining Commission)), Vice President, Mining & Resources at Lundin Mining, who is a "Qualified Person" under NI 43-101. Mr. Cortés has verified the data disclosed in this release and no limitations were imposed on his verification process.

About Lundin Mining

Lundin Mining is a Canadian mining company headquartered in Vancouver, Canada with three operating mines in Brazil and Chile. We produce metals that underpin global development, supporting infrastructure, electrification, technological innovation, and economic resilience. 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 Argentina and Chile, where we hold a 50% interest. We also hold a 31% interest in the Los Helados project, located adjacent to our operating Caserones mine, providing longer term growth optionality. 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.

The information in this release is subject to the disclosure requirements of Lundin Mining under the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below on June 17, 2026 at 5:15 AM Eastern Time.

Correction:2026 adjusted EBITDA forecast has been corrected to $2.3 billion and total sustaining capital expenditure in the 2026 Capital Expenditure Guidance table has been corrected to $550 million.

Historical Non-GAAP Measure Comparatives

Cash cost, cash cost per pound, consolidated cash cost per pound, free cash flow from operations, adjusted free cash flow from operations, EBITDA, adjusted EBITDA, and expansionary capital expenditures are non-GAAP financial measures and sustaining capital expenditures is a supplementary financial measure. These are not standardized financial measures under generally accepted accounting principles under IFRS and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. These amounts are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Please refer to the section titled "Non-GAAP and Other Performance Measures" in Lundin Mining's Management's Discussion and Analysis for the year ended December 31, 2025 and for the three months ended March 31, 2026, which are incorporated by reference herein and which are available on SEDAR+ at www.sedarplus.ca.

Cash Cost per Pound and Consolidated Cash Cost per Pound – Year Ended December 31, 2025

| Operations | Candelaria | Caserones | Chapada | Consolidated | Total – Continuing Operations | | ($ millions, unless otherwise noted) | (Cu) | (Cu) | (Cu) | (Cu) | | | Sales volumes (Contained metal): | | | | | | | Tonnes | 140,500 | 138,287 | 42,040 | 320,827 | | | Pounds (000s) | 309,749 | 304,870 | 92,682 | 707,301 | | | Production costs | 783.9 | 854.5 | 306.8 | 1,945.2 | 1,948.1 | | Less: Royalties and other | (18.6) | (52.4) | (22.3) | (93.3) | (96.2) | | | 765.3 | 802.1 | 284.5 | 1,851.9 | 1,851.9 | | Deduct: By-product credits | (193.1) | (149.8) | (220.4) | (563.3) | (563.3) | | Add: Treatment and refining | 22.9 | 8.3 | 5.0 | 36.2 | 36.2 | | Cash cost | 595.1 | 660.6 | 69.1 | 1,324.8 | 1,324.8 | | Cash cost per pound ($/lb) | 1.92 | 2.17 | 0.75 | 1.87 | |

Free Cash Flow from Operations and Adjusted Free Cash Flow from Operations – Year Ended December 31, 2025

| | | | ($ millions) | Total | | Cash provided by operating activities from continuing operations | 1,207.9 | | Sustaining capital expenditures | (477.8) | | General exploration and business development | 43.5 | | Free cash flow from operations – continuing operations | 773.6 | | Add back: Changes in non-cash working capital items | 414.0 | | Adjusted free cash flow from operations – continuing operations | 1,187.6 |

EBITDA and Adjusted EBITDA – Year Ended December 31, 2025

| | | | ($ millions) | Total | | Net earnings from continuing operations | 1,417.7 | | Add back: | | | Depreciation, depletion and amortization | 618.9 | | Finance costs, net | 90.5 | | Income taxes expense (recovery) | (270.0) | | EBITDA – continuing operations | 1,857.1 | | Unrealized foreign exchange loss | 5.2 | | Unrealized gains on derivative contracts | (29.0) | | Revaluation gain on marketable securities | (14.9) | | Inventory write-down | 88.2 | | Ojos del Salado sinkhole expenses | 10.9 | | Gain on partial disposal and contribution to Vicuña | (3.0) | | Other | 2,6 | | Total adjustments – EBITDA | 60.0 | | Adjusted EBITDA – continuing operations | 1,917.1 |

Capital Expenditures – Year Ended December 31, 2025

| | | | ($ millions) | Total | | Candelaria | 21.6 | | Chapada | 2.4 | | Vicuña | 167.2 | | Expansionary capital expenditures from continuing operations | 191.2 | | Candelaria | 224.4 | | Caserones | 156.3 | | Chapada | 96.8 | | Other | 0.3 | | Sustaining capital expenditures from continuing operations | 477.8 | | Total capital expenditures from continuing operations | 669.0 | | Capitalized interest | 15.6 | | Total investment in mineral properties, plant and equipment from continuing operations | 684.6 |

Preliminary Economic Assessment

The reader is advised that the Vicuña preliminary economic assessment ("Vicuña PEA" or the "PEA") set out in the Technical Report entitled "Vicuña Project, Argentina and Chile NI 43-101 Technical Report on Preliminary Economic Assessment", dated effective February 16, 2026 is only a conceptual study of the potential viability of the Vicuña Project, and the economic and technical viability of the project and its estimated Mineral Resources has not been demonstrated. The Vicuña PEA is preliminary in nature and provides only an initial, high-level review of the Vicuña Project's potential and design options; there is no certainty that the PEA will be realized. The PEA conceptual mine plan and economic model include numerous assumptions and Mineral Resource estimates including Inferred Mineral Resource estimates. Inferred Mineral Resource estimates are considered to be too speculative geologically to have any economic considerations applied to such estimates. There is no guarantee that Inferred Mineral Resource estimates will be converted to Indicated or Measured Mineral Resources, or that Indicated or Measured Mineral Resources can be converted to Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability, and as such there is no guarantee the Project economics described herein or on which projections or outlook are based will be achieved. Mineral Resource estimates may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant risks, uncertainties and other factors, as more particularly described herein and in the corresponding Technical Report. For further information related to the Vicuña PEA, including the key assumptions and parameters see the Company's News Release "Lundin Mining Announces Vicuña Integrated Technical Study Results Demonstrating a World-Class Mining Complex" dated February 16, 2026 and the current Technical Report.

Cautionary Statement on Forward-Looking Information

Certain of the statements made and information contained herein are "forward-looking information", "future oriented financial information" and "financial outlook" (collectively referred to as "forward-looking information" herein) within the meaning of applicable Canadian securities laws. The purpose of disclosing future oriented financial information and financial outlook is to provide a general overview of management's expectations regarding the anticipated results of operations including earnings and cash generated therefrom and costs thereof during and following the planned development and construction of the Vicuña Project, and readers are cautioned that future oriented financial information and financial outlook may not be appropriate for other purposes, including investment decision-making without reference to the Company's full disclosure record. Future-oriented financial information and financial outlook contained herein are subject to the same assumptions, risk factors, limitations and qualifications as the forward-looking information on which they are based and are presented solely for the purpose described herein. Management believes the assumptions underlying the financial outlook are reasonable as of the date hereof and reflect management's best estimates. Actual results may differ materially from the future-oriented financial information and financial outlook presented herein, and there can be no assurance that such information will prove to be accurate. Such information should not be relied upon as necessarily indicative of future results and is not a guarantee of future performance.

All statements other than statements of historical facts included in this document constitute forward-looking information, including but not limited to statements regarding the Company's plans, prospects, business strategies and strategic vision, targets and aspirations, and their achievement and timing, including the Company's goals to become a top-ten global copper producer, and to reach annual production of over 500,000 tonnes of copper and 550,000 ounces of gold; the Company's guidance on the timing and amount of future production and its expectations regarding the results of operations; financial outlook and expected financial performance, including expected revenue, costs and expenditures, earnings and EBITDA, cash flows and other financial metrics; expected tax rates; the Company's growth initiatives and opportunities, and the potential costs, outcomes, results and impacts thereof and timing thereof; the Company's funding capacity; forecasted metal prices, foreign exchange rates and interest rates; permitting requirements and timelines; iming and possible outcome of pending litigation; the results of any Preliminary Economic Assessment, including the Vicuña PEA, Pre-Feasibility Study, Feasibility Study, or Mineral Resource and Mineral Reserve estimations, life of mine estimates, and mine and mine closure plans; Mineral Resource estimation for the Vicuña Project, including the parameters and assumptions related thereto; the Company's shareholder distribution policy, including with respect to share buybacks and the payment and amount of dividends and the timing thereof; the Company's ability to comply with contractual and permitting or other regulatory requirements; anticipated exploration and development activities, including potential outcomes, results, impacts and timing thereof; the Company's integration of acquisitions and expansions and any anticipated benefits thereof, including the anticipated project development and other plans and expectations with respect to the Vicuña Project and the 50/50 joint arrangement with BHP; the operation of Vicuña with BHP; the realization of synergies and economies of scale in the Vicuña district; the development and future operation of the Vicuña Project; the size and scale of the Vicuña Project, and the potential for the Vicuña Project to be a world-class project ranking among the top five copper, gold and silver mines globally; commencement of production; mining methods; estimated workforce and equipment requirements; production estimates and production profile; processing estimates; mining rates; metal grades and recovery rates; process flowsheet; detailed cost measures including cash costs and AISC and the timing thereof; economic metrics and sensitivities; more detailed estimated economic results and the related assumptions and parameters; geological and mineralization interpretations; timelines and statements relating to overall project economic viability; tailings management; detailed project infrastructure requirements (including tailings storage facilities, water, power, roasting facilities, pipelines, transportation systems and desalination infrastructure); project development and construction plans including staged development, sequencing, timing and related benefits; community and social engagement and corporate social responsibility matters; economic, fiscal and other benefits to local communities, host countries, shareholders and stakeholders; broader project studies including environmental and social studies; detailed credit facility matters (including upsizing, terms, pricing, maturity, availability, amendments and conditions); the use of the credit facility; specific funding strategy details including collaboration with BHP; explicit reference to tax disputes; growth optimization initiatives and expansionary projects; expected processing capacities and related infrastructure development; timing and expectations for future regulatory applications; and anticipated economic and fiscal benefits to Argentina and Chile (including taxes, royalties, employment and infrastructure impacts); project permitting, consents and permits and the effects thereof; the timing and expectations for future studies and initiatives with respect to the Company's operations and projects, including at the Vicuña Project and the Chapada mine (including the Saúva project); the potential for resource expansion, including exploration at sites and underground insourcing and expansion at Candelaria; the step down of the Company's streaming agreement at Candelaria and the resulting impacts; brownfield expansion initiatives at existing operations and expected production increases and timing thereof; and expectations for other economic, business, and/or competitive factors. Words such as "believe", "expect", "anticipate", "contemplate", "target", "plan", "goal", "aim", "intend", "continue", "budget", "estimate", "may", "will", "can", "could", "should", "schedule" and similar expressions identify forward-looking information.