Lundin Mining Ends 2021 With US$3.33 Billion In Revenue

Lundin Mining Corporation (TSX: LUN) announced on Thursday its Q4 and full-year financial results for 2021. The mining firm earned US$3.33 billion in revenue for the year, up from 2020’s US$2.04 billion.

“We were able to take advantage of the favourable base metal price environment and set many Lundin Mining all-time financial records in 2021,” said Lundin Mining CEO Peter Rockandel.

Gross margin for the year came in at 41.1%, up from last year’s 24.4%. Further, the company ended with net earnings of US$879.3 million, also an increase from last year’s US$189.1 million. The annual net earnings translate to US$1.06 per share.

Calibrating for financial items, adjusted EBITDA for the year ended at US$1.87 billion, also a jump from last year’s US$856.9 million.

For Q4, the firm recorded quarterly revenue of US$1.02 billion, up from both Q3 2021’s US$756.4 million and Q4 2020’s US$529.5 million. Quarterly net earnings also increased to US$266.1 million from last quarter’s US$190.6 million and last year’s US$120.8 million. Meanwhile, quarterly adjusted EBITDA came in at US$623.0 million compared to US$411.3 million from the previous quarter and US$234.8 million from the year-ago period.

Cash flow from operations for the year came in at US$1.49 billion with free cash flow generated coming in at US$1.01 billion. These are significant jumps from 2020’s US$565.9 million and US$199.4 million, respectively.

The mining firm also ended with US$594.1 million in cash and cash equivalents. This puts the balance of the current assets at US$1.53 billion while current liabilities ended at US$787.5 million.

Rockandel also reiterated that the plan to acquire Josemaria Resources (TSX: JOSE) for $625 million is still on track to close in Q2 2022. Josemaria and Lundin Mining are both part of the Lundin Group of Companies.

The mining company also announced on Thursday a regular quarterly dividend of $0.09 per share and a semi-annual performance dividend of $0.11 per share, for a combined total of CAD$0.20 per share. In connection to this, Josemaria Resources CEO Adam Lundin also announced that Josemaria shareholders who will receive Lundin Mining shares after the closing of the acquisition will also get a $0.11 per share dividend as part of the transaction agreement.

The firm also announced on Thursday the retirement of Lundin Mining chairman of the board Lukas Lundin, who’s been battling a two-year-long fight against brain cancer.

The copper miner previously announced its production guidance for 2022-2024, highlighted by a copper production guidance of 258,000 – 282,000 tonnes for 2022. For 2021, the firm produced 262,884 copper tonnes, hitting above the midpoint of its guidance of 255,000 – 267,000 tonnes.

Lundin Mining last traded at $12.07 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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