Lundin Mining (LUN) Status update summary

Project Overview and Development Plan

• Vicuña Project is a 50:50 joint venture integrating Filo del Sol and Josemaria, targeting staged development for disciplined capital deployment and risk management, aiming for top 5 global copper, gold, and silver producer status with a mine life exceeding 70 years.

• The project is structured in three stages: Stage 1 (Josemaria sulphide concentrator and open pit), Stage 2 (Filo del Sol oxide heap leach), and Stage 3 (Filo del Sol sulphide expansion), ultimately reaching up to 293,000 tpd processing capacity.

• Peak annual production is projected at over 500,000 tonnes copper, 800,000 oz gold, and 20 Moz silver, with average annual production over 25 years at 400,000 tonnes copper, 700,000 oz gold, and 22 Moz silver.

• Stage 1 CapEx is $7.1 billion, with total initial capital for all stages just over $18 billion; fully funded for initial construction with a $4.5 billion credit facility commitment.

• The project is expected to generate $2.2 billion in average annual free cash flow over the first 25 years.

Financial and Economic Metrics

• After-tax NPV (8%) is estimated at $28 billion at spot prices at construction start, rising to $45 billion at operations start, with IRR ranging from 10.4% to 25.5% depending on commodity prices.

• First quartile cost profile: average C1 cash cost of negative $0.20/lb copper and AISC of $0.47/lb over the first 25 years.

• LOM revenue split: 60% copper, 32% gold, 8% silver.

• The project is designed to generate positive free cash flow from the first year, funding future expansions internally.

• Stage 1 payback period is 8.4 years; NPV and IRR increase significantly at higher metal prices.

Mineral Resource Update and Production Profile

• Updated mineral resource: 14 Mt copper, 36 Moz gold, and 729 Moz silver (M&I); 32 Mt copper, 61 Moz gold, and 1,051 Moz silver (Inferred), reflecting a 12% increase in M&I copper and 28% increase in inferred copper.

• The resource remains open in all directions, with further drilling planned to optimize the mine plan and enhance early cash flows.

• Ongoing studies aim to refine the transition zone between ore types and improve grade profiles for earlier high-grade production.

• Metallurgical recoveries: up to 84% copper, 64% gold, 76% silver depending on deposit and process.

• Conventional open pit mining with shared fleet for both deposits; initial feed from Josemaria, transitioning to Filo del Sol.