Lundin Mining Provides 2024 Guidance & Announces 2023 Production Results


Lundin Mining Provides 2024 Guidance & Announces 2023 Production Results

January 14, 2024

VANCOUVER, BC, Jan. 14, 2024 /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, 2023 and provides production guidance for the three-year period of 2024 through 2026, as well as cash cost, capital and exploration expenditure forecasts for 2024. View PDF version

Highlights

2023 production results:

On a consolidated basis the Company achieved guidance1. Production for all metals was at the midpoint or above for all guidance ranges.
On a 100% basis consolidated copper production was a record for the Company at 314,798 tonnes (t), and copper-equivalent consolidated production was over 550,000 t.2
Candelaria achieved guidance. Copper production was 152,012 t and gold production was 89,700 ounces (oz).
Caserones copper production was 65,210 t for the second half of the year which exceeded original guidance3, and on a full year basis was 139,520 t.
Chapada achieved guidance. Copper production was 45,719 t, and gold production was on the upper end of guidance at 59,268 oz for the year.
Consolidated zinc production was 185,161 t, which was at the midpoint of the guidance. Production at Neves-Corvo was on the upper end of zinc guidance while Zinkgruvan was slightly below zinc guidance. 
Consolidated gold production was 148,968 oz which was on the upper end of guidance.
Nickel production at Eagle was 16,429 t and copper production was 13,600 t both of which exceeded original guidance.
 

2024 guidance on a consolidated basis is largely in line with last year’s production guidance:             

Copper production guidance of 366,000 – 400,000 t.
Zinc production guidance of 195,000 – 215,000 t.
Gold production guidance of 155,000 – 170,000 oz.
Nickel production guidance of 10,000 – 13,000 t.

____________________________________________

1 Guidance as most recently disclosed in the Company’s Management Discussion and Analysis for the three and nine months ended September 30, 2023.

2 Calculated based on the ratios of 2023 average metal prices of Cu: $3.85/lb, Zn: $1.20/lb, Ni: $9.74/lb, Mo: $24.19/lb, Pb: $0.97/lb Ag: $23.50/oz and Au: $1,941/oz.

3 Caserones guidance is for the second half of 2023. See “Lundin Mining Announces Closing of the Acquisition of Majority Interest in the Caserones Copper-Molybdenum Mine in Chile and Commitments for New $800 Million Term Loan” dated July 13, 2023.

 

This news release contains non-GAAP measures and forward-looking information about expected future events and financial and operating performance of the Company. Please refer to the Historical Non-GAAP Measure Comparatives section and the risks and assumptions set out in our Cautionary Statement on Forward-Looking Information section of this press release. All dollar amounts are expressed in U.S. dollars, unless otherwise noted.

Jack Lundin, President and CEO, commented “2023 was a significant year for Lundin Mining and we are well positioned for growth in 2024. The 51% acquisition of Caserones led to a record in annual copper production. We have initiated comprehensive value optimization efforts across our Latin American sites. We are beginning to execute on some of these initiatives at Chapada and Candelaria and the kickoff of optimization work at Caserones will begin this quarter. An exciting exploration program has begun on both the Chilean and Argentinian side of the Vicuña district. We will look to drive value from the drill bit as this has proven to be a key contributor to the overall value creation at Lundin Mining.

“Across our critical metals portfolio, the zinc expansion project at Neves Corvo, otherwise known as ZEP, is coming to fruition, leading to back-to-back quarterly record zinc production at this operation. At Zinkgruvan in 2023, improved recoveries from the sequential flotation project were achieved, however, a longer than anticipated ramp up resulted in a slight miss on guidance. Our nickel operation, Eagle, continues to perform and hit the upper end of guidance.

“During the year, the cumulative result was over 550,000 tonnes of consolidated copper equivalent production. This year’s guidance shows an increase of over 20% for copper production and 10% for zinc production over 2023. As we turn the page on a transformational year for the Company, our focus remains on achieving operational excellence by consistently maintaining elevated safety standards, all while meeting production guidance at competitive costs.”

Summary of 2023 Production

 
 

Q4 2023

Production

Full Year
2023

Production

2023 Original

Guidance4

 

2023 Revised
Guidance5

 

Copper (t)

 
 
 
 
 
 
 
 
 

 

Candelaria (100% basis)

41,618

152,012

145,000

155,000

147,000

153,000

 

 

Caserones (100% basis H2) 6

35,389

65,210

60,000

64,000

65,000

69,000

 

 

Chapada

12,872

45,719

43,000

48,000

45,000

48,000

 

 

Eagle

3,334

13,600

12,000

15,000

12,000

15,000

 

 

Neves-Corvo

9,623

33,823

33,000

38,000

33,000

36,000

 

 

Zinkgruvan

501

4,434

3,000

4,000

3,000

4,000

 

 

Total Copper

103,337

314,798

296,000

325,000

305,000

325,000

 

 
 
 
 
 
 
 
 
 
 

 
 

Zinc (t)

 
 
 
 
 
 
 
 
 

 

Neves-Corvo

31,035

108,812

100,000

110,000

103,000

110,000

 

 

Zinkgruvan

19,684

76,349

80,000

85,000

78,000

82,000

 

 

Total Zinc

50,719

185,161

180,000

195,000

181,000

192,000

 

 
 
 
 
 
 
 
 
 
 
 

Gold (oz)

 
 
 
 
 
 
 
 
 

 

Candelaria (100% basis)

24,787

89,700

85,000

92,000

87,000

92,000

 

 

Chapada

19,025

59,268

55,000

60,000

55,000

60,000

 

 

Total Gold

43,812

148,968

140,000

150,000

142,000

152,000

 

 
 
 
 
 
 
 
 
 
 
 
 

Nickel (t)

 
 
 
 
 
 
 
 
 

 

Eagle

3,729

16,429

13,000

16,000

15,000

17,000

 

 

Total Nickel

3,729

16,429

13,000

17,000

15,000

18,000

 

 
 
 
 
 
 
 
 
 
 
 

Molybdenum (t)

 
 
 
 
 
 
 
 
 

      Caserones (100% basis H2)6

928

2,024

1,500

2,000

1,500

2,000

 

 

Total Molybdenum

928

2,024

1,500

2,000

1,500

2,000

 

 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

____________________________________________

4 Guidance as announced by news release “Lundin Mining Announces 2022 Production Results & Provides 2023 Guidance” dated January 12, 2023, and “Lundin Mining Announces Closing of the Acquisition of Majority Interest in the Caserones Copper-Molybdenum Mine in Chile and Commitments for New $800 Million Term Loan” dated July 13, 2023.

5 Guidance as most recently disclosed in the Company’s Management Discussion and Analysis for the three and nine months ended September 30, 2023.

6 Caserones guidance is for the second half of 2023. As per previous disclosure, revised production guidance for the second half of 2023 was 65,000 t to 69,000 t and molybdenum was 1,500 t to 2,000 t.

Three-Year Production Outlook 2024 – 2026

2024 updated guidance outlook is in line with previously disclosed production ranges. Consolidated copper production in 2024 has stayed consistent with previous estimates, consolidated zinc production ranges have been slightly adjusted and consolidated gold production ranges have increased for 2024. In 2025 consolidated copper and gold ranges have increased while zinc guidance has stayed in line with previous disclosure.
 
Copper production is forecast to be 366,000 – 400,000 t on a consolidated basis in 2024. Higher consolidated copper production is forecast for 2024, mainly due to mine sequencing and the mine plan copper grade profile at Candelaria. Caserones copper production guidance has been increased to 120,000 – 130,000 t on an annual basis to reflect higher planned throughput rates in the mill.
 
Zinc production is forecast to increase to 195,000 – 215,000 t on a consolidated basis in 2024, increasing further over the three-year period to reach 220,000 – 240,000 t in 2025 and 2026.
 
Consolidated gold production is forecast to be 155,000 – 170,000 oz in 2024 and then taper through the three-year outlook period. Higher consolidated gold production in 2024 is due mainly to mine sequencing and the planned gold grade profile at Candelaria.
 
Nickel production is forecast to be 10,000 – 13,000 t in 2024 and then taper over the three-year period. The production profile is driven by the planned mine sequencing and nickel grade as the Eagle East and Upper Keel orebodies at Eagle are nearing the end of their mine life.

Production Outlook7

 
 

2024

 

2025

 

2026

Copper (t)

 
 
 
 
 
 
 
 
 
 
 

 

Candelaria (100% basis)

160,000

170,000

 

150,000

160,000

 

150,000

160,000

 

Caserones (100% basis)

120,000

130,000

 

125,000

135,000

 

125,000

135,000

 

Chapada

43,000

48,000

 

40,000

45,000

 

40,000

45,000

 

Eagle

9,000

12,000

 

5,000

8,000

 

5,000

8,000

 

Neves-Corvo

30,000

35,000

 

35,000

40,000

 

33,000

38,000

 

Zinkgruvan

4,000

5,000

 

3,000

4,000

 

3,000

4,000

 

Total Copper

366,000

400,000

 

358,000

392,000

 

356,000

390,000

 
 
 
 
 
 
 
 
 
 
 
 
 

Zinc (t)

 
 
 
 
 
 
 
 
 
 
 

 

Neves-Corvo

120,000

130,000

 

140,000

150,000

 

140,000

150,000

 

Zinkgruvan

75,000

85,000

 

80,000

90,000

 

80,000

90,000

 

Total Zinc

195,000

215,000

 

220,000

240,000

 

220,000

240,000

 
 
 
 
 
 

Gold (oz)

 
 
 
 
 
 
 
 
 
 
 

 

Candelaria (100% basis) 8

100,000

110,000

 

90,000

100,000

 

85,000

95,000

 

Chapada

55,000

60,000

 

55,000

60,000

 

55,000

60,000

 

Total Gold

155,000

170,000

 

145,000

160,000

 

140,000

155,000

 
 
 
 
 
 
 
 
 
 
 
 
 

Nickel (t)

 
 
 
 
 
 
 
 
 
 
 

 

Eagle

10,000

13,000

 

5,000

8,000

 

4,000

7,000

 

Total Nickel

10,000



This article was originally published by a lundinmining.com . Read the Original article here. .