TORONTO, ONTARIO--(Marketwired - Jan. 12, 2017) - Lundin Mining Corporation (TSX:LUN) (OMX:LUMI) ("Lundin Mining" or the "Company") announces production results for the three and twelve months ended December 31, 2016. The Company also provides a capital project update and announces the disposal of Aguablanca Mine.
2016 Highlights:
(contained tonnes) |
Q4 2016 Production Results | Full Year 2016 Production Results | 2016 Production Guidance1 | |
Copper | Candelaria (80%) | 39,258 | 133,274 | 130,000 - 132,000 |
Eagle | 5,742 | 23,417 | 22,000 - 24,000 | |
Neves-Corvo | 10,975 | 46,557 | 48,000 - 51,000 | |
Zinkgruvan | 0 | 1,906 | 1,900 - 2,000 | |
Wholly-owned | 55,975 | 205,154 | 201,900 - 209,000 | |
Tenke (24%)2 | n/a | n/a | 52,800 | |
Total attributable | n/a | n/a | 254,700 - 261,800 | |
Nickel | Eagle | 5,249 | 24,114 | 23,000 - 25,000 |
Total | 5,249 | 24,114 | 23,000 - 25,000 | |
Zinc | Neves-Corvo | 15,886 | 69,527 | 70,000 - 73,000 |
Zinkgruvan | 19,773 | 78,523 | 80,000 - 85,000 | |
Total | 35,659 | 148,050 | 150,000 - 158,000 |
(1) Guidance as presented in the Company's Management Discussion and Analysis for the three and nine months ended September 30, 2016.
(2) Production results for Tenke have not yet been released by the operator.
Mr. Paul Conibear, President and CEO commented: "We are pleased with our aggregate performance across all of our mines in the challenging metal price environment of 2016 and expect to build upon this performance in the year ahead. Responding to market conditions that persisted over the majority of last year, the Company focused on discretionary spending restraint, deferring of non-essential sustaining capital and maximizing cash flow. Lundin Mining is in the desirable position of having one of the strongest balance sheets in our sector enabling us great financial flexibility to advance our internal growth projects, return capital to shareholders, and take advantage of potential external growth opportunities."
Operational Commentary
Production guidance for the three-year period of 2017 through 2019, and 2017 cash cost guidance remain unchanged from figures previously disclosed on November 30, 2016.
Capital Projects Update
Expected capital expenditure and the exploration budget for 2017 remain unchanged from figures previously disclosed on November 30, 2016.
Additionally, during the fourth quarter, the Company disposed of the Aguablanca Mine in Spain through the transfer of all of the shares of Rio Narcea Recursos S.A. ("RNR") to Valoriza Mineria, a subsidiary of Grupo Sacyr. The assets of RNR included the Aguablanca mine and other exploration licenses. Grupo Sacyr is a multinational infrastructures and services company, operating in 29 countries and headquartered in Madrid, Spain. The Company transferred approximately EUR30 million to RNR prior to the transfer in order to ensure that all of the environmental, employee and other liabilities were fully funded.
About Lundin Mining
Lundin Mining is a diversified Canadian base metals mining company with operations in Chile, the USA, Portugal, and Sweden, primarily producing copper, nickel and zinc. In addition, until its announced sale has been concluded, Lundin Mining holds an indirect 24% equity stake in the world-class Tenke Fungurume copper/cobalt mine in the Democratic Republic of Congo and in the Freeport Cobalt Oy business, which includes a cobalt refinery located in Kokkola, Finland.
On Behalf of the Board,
Paul Conibear, President and CEO
The information in this release is subject to the disclosure requirements of Lundin Mining under the EU Market Abuse Regulation and the Swedish Securities Market Act. This information was publicly communicated on January 12, 2017 at 5:30 p.m. Eastern Time.
Forward Looking Statements
Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the applicable Canadian securities legislation including, without limitation, with respect to the timing and amount of future dividends. Forward-looking information includes, but is not limited to information with respect to the Company's strategy, plans or future financial or operating performance. Forward-looking statements are characterized by words such as "plan," "expect", "budget", "target", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur.
Forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: uncertain political and economic environments; foreign currency fluctuations; risks inherent in mining including environmental hazards, industrial accidents, unusual or unexpected geological formations, ground control problems and flooding; risks associated with the estimation of mineral resources and reserves and the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; changes in laws or policies, foreign taxation, delays or the inability to obtain necessary governmental permits; and other risks and uncertainties, including those described under Risk Factors Relating to the Company's Business in the Company's Annual Information Form and in each management discussion and analysis. Forward-looking information is in addition based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of copper, nickel, lead and zinc; that the Company can access financing, appropriate equipment and sufficient labour and that the political environment where the Company operates will continue to support the development and operation of mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements.
2016 Operating Statistics
Details of operating statistics by mine, by quarter and for the year are summarized in the tables that can be found by following this link: http://media3.marketwire.com/docs/Lundin%20Tables.pdf
For further information, please contact:
Mark Turner
Director, Business Valuations and Investor Relations
+1-416-342-5565
Sonia Tercas
Senior Associate, Investor Relations
+1-416-342-5583
Robert Eriksson
Investor Relations Sweden
+46 8 545 015 50