Wednesday, October 8, 2025

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Lundin Mining Sells Zinc Operations For $1.52 Billion In Cash

Lundin Mining (TSX: LUN) is divesting assets as it works to focus its efforts on growth within South America, with an emphasis on the Vicuna district.

The assets to be sold consist of the Zinkgruvan operation in Sweden and the Neves-Corvo operation in Portugal, which will be sold to Boliden AB for a combined $1.52 billion in consideration.

Consideration is to consist of $1.37 billion in cash upon closing, while $150 million will be subject to contingent consideration, based on the price of copper and zinc exceeding specified thresholds. At Neves-Corvo, up to $100 million in contingent consideration will be paid, consisting of 60% of the incremental revenue from 2025 to 2027 when the average price of zinc exceeds $1.30 per pound, and the price of copper exceeds $4.50 per pound. At Zinkgruvan, up to $50 million in contingent payments will be made, based on 50% of the incremental revenue when zinc exceeds $1.40 per pound in 2025 and 2026.

Neves-Corvo in the third quarter produced 6,698 tonnes of copper and 29,509 tonnes of zinc, while Zinkgruvan produced 17,101 tonnes of zinc and 5,693 tonnes of lead. The two mines collectively represented 100% of Lundin’s zinc production in the third quarter, and 6.7% of copper production.

READ: Lundin Sells 125,887 Gold Ounces In Q3 At Average Price Of $2,615

“The sale will further strengthen our balance sheet to support the Company’s growing portfolio in South America and enable management to concentrate our focus in an area which will provide the greatest long-term value for our shareholders. It is an opportune time to optimize our portfolio through this divestiture as we drive towards becoming a top-tier copper-dominant mining company,” commented Jack Lundin, CEO of Lundin Mining.

The sale is currently slated to close in mid-2025, subject to regulatory approvals.

Lundin Mining last traded at $13.74 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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