Lundin Mining (TSX: LUN) posted its earnings for the first quarter of 2025, with revenue at $963.9 million, an 18.7% increase over Q1 2024’s $812.3 million. This is attributed to higher realized prices for copper ($4.63 per pound vs $4.20 per pound last year) and gold ($3,349 per ounce vs $2,400 per ounce last year), as well as solid volumes from Candelaria and Caserones. Total revenue, including discontinued operations, hit $1.14 billion, a jump from last year’s $937.0 million.
Gross profit from continuing operations jumped 56.4% to $308.9 million from $197.5 million a year earlier. Discontinued operations also swung into profitability with a $69.9 million gross profit, versus a $12.1 million loss in Q1 2024—though no depreciation was recorded due to their held-for-sale classification.
Net earnings from continuing operations surged 118% to $181.4 million vs. Q1 2024’s $83.0 million, while total net earnings soared to $138.1 million, a 260% increase from $38.3 million last year. Adjusted earnings from continuing operations rose to $93.9 million, up 66.5% from $56.4 million.
Adjusted EBITDA from continuing operations reached $387.9 million, up 15% from $338.5 million last year, with consolidated EBITDA up to $450.8 million from $362.9 million. Adjusted EPS from continuing operations climbed to $0.11 from $0.07.
Cash provided by operating activities from continuing operations fell a steep 47.3% to $122.3 million from Q1 2024’s $232.2 million, mainly due to a massive $214.7 million negative change in working capital. The company cited shipment timing at Caserones and increased trade receivables at quarter-end as key drivers.
Free cash flow from continuing operations cratered to just $21.6 million—down 67.5% from $66.5 million last year—while total free cash flow turned deeply at an outflow of $47.5 million compared to an outflow of $1.7 million last year.
As of March 31, 2025, net debt excluding lease liabilities stood at $1.44 billion, significantly up from $981.4 million in Q1 2024. Including leases, net debt reached $1.70 billion, versus $1.24 billion a year ago.
However, subsequent to quarter-end, Lundin used proceeds from its $1.4 billion sale of Neves-Corvo and Zinkgruvan to pay off a $1.15 billion term loan, reducing net debt excluding leases to approximately $279.6 million as of May 7, 2025.
Cash and cash equivalents stood at $341.6 million at quarter-end, down from $365.5 million last year. The company reclassified $1.44 billion of assets and $407.2 million of liabilities as “held for sale.”
Copper production from continuing operations came in at 76,774 tonnes, slightly down from 79,395 tonnes in Q1 2024. Gold output was flat at 32,000 ounces. Nickel production fell sharply to 2,296 tonnes from 3,255 tonnes.
In terms of costs, Candelaria improved cash cost to $1.75 per pound from $1.89 per pound in the same period last year. Chapada lowered its cash cost to $1.47 per pound from $2.01 per pound. In contrast, Caserones’ cost performance deteriorated, rising to $2.52 per pound from $2.14 per pound due to increased contractor and maintenance expenses. Meanwhile, Eagle’s nickel cash cost edged down slightly to $3.94 per pound from $4.04 per pound.
AISC for copper across operations remained elevated, with Caserones hitting $3.36 per pound and Chapada at $2.94 per pound. Candelaria improved to $2.46 per pound from $3.34 per pound last year.
Lundin’s bet on long-term growth now hinges on the Vicuña joint venture with BHP, combining the Josemaria and Filo del Sol projects—recently declared one of the world’s largest untapped copper-gold-silver deposits.
Shareholder returns were bolstered with a new $220 million annual distribution policy, potentially risky in light of negative free cash flow and ongoing capex burdens.
Lundin Mining last traded at $11.84 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.
