Lundin Mining (LUN) Q3 2024 earnings summary

Executive summary

• Achieved strong operational and financial results in Q3 2024, with copper production of 100,000 tons and revenue exceeding $1.1 billion, highlighted by a major JV with BHP for Filo del Sol and Josemaria and increased Casarones ownership to 70%.

• On track to meet full-year consolidated copper guidance, with tightened and slightly increased guidance for Candelaria and reduced guidance for Casarones due to labor action.

• Announced two significant transactions to enhance near- and long-term copper growth profile, including the joint acquisition of Filo Corp. with BHP.

• Exploration ramping up in the Vicuña District and other near-mine targets to extend mine life.

Financial highlights

• Q3 2024 revenue reached $1,073 million, with copper accounting for 75% of the metal mix.

• Adjusted EBITDA was $458 million and adjusted operating cash flow was $305 million for the quarter.

• Adjusted earnings for Q3 were $73 million; net earnings attributable to shareholders were $101.2 million.

• Free cash flow from operations was $2 million, impacted by a $166 million working capital build.

• Net debt stood at $1.5 billion, with liquidity of $1.4 billion available on the revolving credit facility.

Outlook and guidance

• Consolidated copper production guidance for 2024 is 366,000–389,000 tons, with Candelaria's range tightened and increased, and Casarones guidance reduced due to labor action.

• Zinc guidance revised to 190,000–199,000 tons; gold guidance unchanged at 155,000–170,000 ounces.

• Sustaining capital expenditure guidance for 2024 reduced to $720 million.

• Exploration budget increased to $55 million, focusing on Casarones and Cumbre Verde.

• Cash cost guidance improved at Chapada and Zinkgruvan, increased at Eagle due to operational issues.