Lundin Mining (TSX: LUN) has cut its 2026 copper guidance after a second severe winter storm tore through Chile’s Atacama region, undoing much of the recovery work at its Caserones operation and pushing a full restart further out.
The storm arrived on Aug. 13, dropping heavy rain at lower elevations and unusually heavy snow, driven by high winds, at altitude. A day later, those winds toppled a transmission tower that had already been damaged in the previous storm, knocking out power at Caserones for the second time in a month.
Caserones had only just come off a power outage that ran from July 18 to July 30, and crews were in the middle of a staged return to full production when the weather turned again.
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Backup generators are keeping critical infrastructure running. The company expects full power to be restored by the end of the week, followed by a gradual ramp-up. Repair crews have been mobilized to the damaged tower, and access routes are progressively reopening.
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Caserones is now guided to produce 120,000 to 130,000 tonnes of copper this year, down from 130,000 to 140,000 tonnes. Cash costs move up to a range of $2.15 to $2.35 a pound. On a consolidated basis, Lundin now sees 300,000 to 325,000 tonnes of copper at $1.95 to $2.15 a pound.
Candelaria, the company’s other Chilean mine, has come through in better shape. It kept its mill running on stockpiled ore during the first storm and returned to full mining capacity shortly after. Its guidance is unchanged at 135,000 to 145,000 tonnes of copper and $2.05 to $2.25 a pound.
RELATED: Lundin’s Caserones Mine Expected To Be Offline For Weeks After Severe Storm
“Northern Chile has experienced an unprecedented series of winter storms, with significant impacts on communities across the Atacama region and on our operations at Caserones,” said Jack Lundin, president and chief executive officer.
He said the company had expected the first storm to keep production at the low end of the original range, but that the second “disrupted recovery efforts and delayed our planned return to full operations.”
Caserones produced 132,881 tonnes of copper in 2025, beating its original guidance.
Lundin Mining last traded at $35.53 on the TSX.
