Lundin Mining: Cash Flow Craters Despite Posting Revenue, Net Earnings Jump In Q2 2025

Lundin Mining (TSX: LUN) posted its Q2 2025, with revenue edging 7% higher YoY to $937 million from last year’s $878 million.

Gross profit expanded 19% to $271 million on stronger copper volumes and lower treatment charges. Net earnings climbed 34% to $160 million from Q2 2024’s $119 million (or $0.27 per share from $0.16 per share).

Adjusted earnings from continuing operations rose 18% to $98 million, but adjusted EPS held flat at $0.11—suggesting dilution from last year’s 10% share count increase. Adjusted EBITDA improved 7% to $395 million, but company-wide adjusted EBITDA actually fell 14% to $396 million as discontinued operations rolled off.

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Consolidated copper cash costs dropped to $1.92 per pound, and AISC also fell at Chapada (to $2.24 per pound), Candelaria (to $2.53 per pound), and Caserones (to $3.34 per pound).

Operating cash flow fell 29% to $315 million as Candelaria’s cash tax bill ballooned to $168 million from Q2 2024’s $47 million and working capital inflows shrank 75%. Free cash flow also slid 27% to $165 million, despite a $64 million cut in sustaining and expansionary capex.

Lundin’s balance sheet looks leaner after April’s $1.3 billion sale of Neves-Corvo and Zinkgruvan. Net debt excluding leases dropped 85% to $135 million, and total net debt now sits at an inverse $380 million—effectively net cash once lease liabilities are stripped out. Management deployed part of the windfall to repurchase 4.6 million shares for $36 million and reaffirmed its token quarterly dividend of $0.0275.

Operationally, the portfolio delivered 80,073 copper tonnes, up 12% from 71,614 tonnes last year; 38,118 gold ounces, up 18% from 32,439 ounces; 2,713 nickel tonnes, up from 1,721 tonnes; and 380 molybdenum tonnes, down from 714 tonnes.

Chapada’s cash cost guidance was trimmed again to $1.10–$1.30 per pound on bullion tailwinds, but Candelaria’s cost band crept higher to $1.80–$2.00 per pound as grades drift. Full-year output target of 303,000–330,000 copper tonnes remain intact.

Lundin Mining last traded at $14.16 on the TSX.


Information for this briefing was found via the sources 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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