Lundin Mining (TSX: LUN) posted near record revenue in the second quarter, though a heavier cost base and a thinner cash balance took some of the shine off an otherwise steady operational showing.
Revenue reached $1.21 billion, up from $1.16 billion in the first quarter and among the highest the copper producer has ever reported. Net earnings came in at $278.4 million, or $0.32 per share on a diluted basis, broadly in line with the $280.5 million, or $0.33 a share, booked three months earlier. Adjusted earnings worked out to $0.30 per share, a touch below the first quarter’s $0.31.
Adjusted EBITDA climbed to $658.0 million from $626.7 million, helped along by firm metals prices. The company realized $6.51 a pound for copper and $4,385 an ounce for gold over the quarter.
Sponsored · PTX Metals Inc.
Cash generation held up well. Operating cash flow was $458.8 million and free cash flow from operations reached $360.2 million. The balance sheet told a more cautious story, with net cash falling to $79.0 million at June 30 from $249.4 million at the end of March, a decline the company attributes largely to acquisitions closed during the period.
Copper output totaled 76,877 tonnes, down from 79,934 tonnes in the first quarter, with the Caserones, Candelaria and Chapada operations all contributing. Gold production moved the other way, rising to 33,427 ounces from 31,537. Molybdenum and silver rounded out the by-product mix at 378 tonnes and 357,000 ounces, respectively.
Costs were the quarter’s sore point, with consolidated cash costs rising to $2.11 a pound of copper from $1.66 in the first quarter, a shade above the top of the company’s $1.90 to $2.10 full-year guidance range. Management pointed to higher diesel prices as the main driver. All in sustaining costs meanwhile moved from $2.63 to $3.10 a pound.
Against annual targets, the company remains on course. Its 2026 guidance calls for 310,000 to 335,000 tonnes of copper and 134,000 to 149,000 ounces of gold. Year to date copper production sits at 156,811 tonnes, while gold production sits at 64,964 ounces. Consolidated guidance remains unchanged on both a production and cost basis, despite the impacts of a severe winter storm.
The company also nudged up its capital spending plans, adding $35 million for a new ball mill at Chapada.
“While higher diesel prices increased costs during the quarter and recent severe winter weather has temporarily disrupted operations at Caserones, we remain well positioned to achieve our annual copper production guidance of 310,000 to 335,000 tonnes and expect cash costs to finish within our guided range of $1.90 – $2.10/lb.,” President and Chief Executive Jack Lundin said.
Lundin Mining last traded at $38.77 on the TSX.
