Lundin Mining Slashes Candelaria Production Guidance

Lundin Mining Corporation (TSX: LUN) this morning reported that production guidance for 2021 at its Candelaria Copper Mining Complex in Chile has been reduced. The reduction is reportedly a result of changes being made related to the mining sequence at the operation.

In total, the company has reduced guidance to 85,000 to 90,000 ounces of gold and 150,000 to 155,000 tonnes of copper for 2021 production. Originally, the company had indicated that the mine was to produce 95,000 to 100,000 gold ounces this year, along with 172,000 to 182,000 tonnes of copper.

Lundin is reportedly implementing measures deemed necessary to manage the nominal risks in a localized area of Phase 10. These risks are said to have the potential to negatively impact activities on the main ramp and lower levels. The company has prioritized precautionary steps to reduce these risks, inclusive of a broader step out, smaller mining benches, and smaller blasts. Lundin has also mentioned that they will be delaying mining activities that are situated immediately below the fault zones to later phases.

The average copper mill feed grades for the complex in the second half of 2021 have been amended to show an average of 0.64% copper, with the full year figure falling to 0.59%. 2018’s technical report forecasted grading of 0.65% copper for this year. The complex’s mill throughput is expected to average roughly 76,800 tpd this year, with the remaining planned maintenance delays on the Candelaria mill in July and September included in that figure.

Lundin Mining Corporation last traded on the TSX at $11.33.

Information for this briefing was found via Sedar and Lundin Mining. 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.