Lundin Mining Announces Production Guidance For The Next Three Years

Lundin Mining Corporation (TSX: LUN) provided on Monday the production guidance for 2022-2024. Total annual copper production is expected to increase to 258,000 – 282,000 tonnes for next year.

Total annual production for copper is expected to slow down to 250,000 – 274,000 tonnes in 2023 then increase to 262,000 – 286,000 tonnes in 2024. From its flagship Candelaria mine, “ore mining is to continue primarily from the Phase 10 pushback in 2022, with initial ore production from the Phase 11 pushback during the year”. The firm expects that ore is to be mined primarily from Phase 11 in 2023 and 2024.

The announcement also included production guidances for zinc, gold, and nickel:

Production Guidance202220232024
Zinc188,000 – 203,000 tonnes227,000 – 242,000 tonnes225,000 – 240,000 tonnes
Gold153,000 – 163,000 ounces155,000 – 165,000 ounces153,000 – 163,000 ounces
Nickel15,000 – 18,000 tonnes13,000 – 16,000 tonnes9,000 – 12,000 tonnes

Cash costs for copper in 2022 are expected to be $1.55 per pound in the Candelaria mine, $1.60 per pound in the Chapada mine, and $1.08 per pound in the Nerves-Corvo mine. The cash costs for zinc in 2022 are guided to be $0.55 per pound in the Zinkgruvan mine while cash costs for nickel are expected to maintain a negative value–$0.25 per pound–considering significant by-product copper credits.

On the other hand, the total capital expenditure guidance for 2022 is $630 million, including the $30 million expected for the zinc expansion project in the Nerves-Corvo mine. Exploration costs in 2022 are planned to be $45 million, with $40 million for in-mine and near-mine targets.

Lundin Mining last traded at $10.70 on the TSX.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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