Lundin Mining (LUN) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached $937M, driven by strong copper and gold production, with a strategic focus on near-term growth at existing operations and long-term Vicuña project development.

• Completed $1.4B sale of European assets (Neves-Corvo and Zinkgruvan), reducing net debt to $135M and transforming the asset portfolio.

• Achieved lowest TRIF in 10 years (0.33) and published 2024 Sustainability Report, with Candelaria now sourcing 100% renewable electricity.

• Advanced Vicuña project with significant mineral resource estimates, ongoing development milestones, and a 50/50 joint venture with BHP.

• Shareholder returns balanced between dividends and buybacks, with $0.11/share dividend and 12.6M shares repurchased YTD ($104M).

Financial highlights

• Q2 2025 revenue from continuing operations: $937M; adjusted EBITDA: $395M (42% margin); adjusted operating cash flow: $277M; adjusted earnings: $98M ($0.11/share).

• Free cash flow from operations: $211M, despite $165M in cash tax payments.

• Net debt reduced from $1.44B to $135M in Q2 2025, with $1.3B net proceeds from asset sale used to repay $1.15B term loans and $170M revolving credit facility.

• Consolidated C1 cash cost: $1.92/lb, below revised guidance.

• Liquidity: $1.5B undrawn on $1.75B revolving credit facility; cash and cash equivalents: $279.3M at quarter-end.

Outlook and guidance

• On track to meet 2025 annual copper production guidance (303,000–330,000 t), gold (135,000–150,000 oz), and nickel (8,000–11,000 t).

• Consolidated copper cash cost guidance revised to $1.95–$2.15/lb; Chapada C1 cost guidance reduced to $1.10–$1.30/lb.

• Full-year capital expenditure guidance reaffirmed at $795M, with expansionary capital increased mainly for Vicuña.

• Long-term growth targets: over 500,000 t/year copper and 550,000 oz/year gold by 2028–2030.

• Exploration budget for 2025 remains at $40M, with potential increase pending Boulderdash results.