candelaria lun - Lundin Mining

TSX: LUN
OMX: LUMI
Acquisition of Freeport’s 80% Interest in the Candelaria Mining Complex
October 6, 2014
A preliminary short form prospectus containing important information relating to the securities of the Company described in this document has not yet been filed with the securities regulatory authorities in each of
the provinces and territories of Canada. A copy of the preliminary short form prospectus is required to be delivered to any investor that received this document and expressed an interest in acquiring the securities.
There will not be any sale or any acceptance of an offer to buy securities until a receipt for the final short form prospectus has been issued.
This document does not provide full disclosure of all material facts relating to the securities offered. Investors should read the preliminary short form prospectus, final short form prospectus and any amendment, for
disclosure of those facts, especially risk factors relating to the securities offered, before making an investment decision.
Cautionary Statements
Caution Regarding Forward Looking Information:
This presentation contains forward-looking information, including, but not limited to, guidance on estimated annual production and cash costs and information
regarding the anticipated completion of the transaction described herein. This forward-looking information is not based on historical facts, but rather on current
expectations and projections about future events and is subject to risks and uncertainties. These risks and uncertainties could cause actual results to differ
materially from the future results expressed or implied in this document.
Such risks may include, without limitation: risks and uncertainties relating to the completion of the transactions as described herein, the ability to successfully
integrate operations and realize the anticipated benefits of the Candelaria acquisition, risks and uncertainties relating to foreign currency fluctuations; risks
inherent in mining including environmental hazards, unusual or unexpected geological formations, ground control problems and flooding; risks associated with
the estimation of mineral resources and reserves and the geology, grade and continuity of mineral deposits; the possibility that future exploration, development
or mining results will not be consistent with the Company’s expectations; the potential for and effects of labor disputes or other unanticipated difficulties with
or shortages of labor or interruptions in production; actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other
characteristics; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; and commodity price
fluctuations.
The forward looking information contained in this document is based on a number of assumptions including, but not limited to, the successful completion of the
transaction on the terms as described herein; foreign currency rates; metal prices; estimation of mineral resources and reserves and the geology; grade,
tonnage, dilution and metallurgical and other characteristics of ore; production capabilities and cost estimates.
The Company uses certain non-GAAP performance measures in this presentation. These performance measures have no meaning under IFRS and, therefore,
amounts presented may not be comparable to similar data presented by other mining companies. The data is intended to provide additional information and
should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Copper cash costs per pound is a nonGAAP measure that the Company uses as a key performance measure to monitor performance. Management uses these statistics to assess how well the
Company’s producing mines are performing compared to plan and to assess overall efficiency and effectiveness of the mining operations.
The Company provides cash cost information as it is a key performance indicator required by users of its financial information in order to assess its profit
potential and performance relative to its peers. The cash cost figure represents the total of all cash costs directly attributable to the related mining operations
after the deduction of credits in respect of by-product sales and royalties. Cash cost is not an IFRS measure and, although it is calculated according to accepted
industry practice, the Company’s disclosed cash costs may not be directly comparable to other base metal producers. By-product credits are an important factor
in determining the cash costs. The cost per pound experienced by the Company will be positively affected by rising prices for by-products and adversely affected
when prices for these metals are falling. The most direct comparable measure to cash costs calculated in accordance with IFRS is operating costs.
The information presented herein was approved by management of the Company on October 6, 2014.
For further details of other risks and uncertainties see Risk Factors Relating to the Company’s Business in the Company’s Annual Information Form and in each
Management ‘s Discussion and Analysis.
Note: All dollar amounts are in US dollars unless otherwise denoted.
2
Cautionary Statements Continued
Caution Regarding Forward Looking Information:
The disclosure in this presentation uses mineral reserve and mineral resource classification terms that comply with reporting standards in Canada, and certain
mineral resource estimates are made in accordance with Canadian National Instrument 43-101—Standards of Disclosure for Mineral Projects (“NI 43-101”). NI
43-101 establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. These standards differ
significantly from the mineral reserve disclosure requirements of the United States Securities Exchange Commission (the “SEC”) set forth in Industry Guide 7.
Consequently, information regarding mineralization contained in this presentation is not comparable to similar information that would generally be disclosed by
U.S. companies in accordance with the rules of the SEC.
In particular, the SEC’s Industry Guide 7 applies different standards in order to classify mineralization as a reserve. As a result, the definitions of proven and
probable reserves used in NI 43-101 differ from the definitions used by the SEC in Industry Guide 7. Under SEC standards, mineralization may not be classified as
a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve
determination is made. Among other things, all necessary permits would be required to be in hand or issuance imminent in order to classify mineralized
material as reserves under the SEC standards. Accordingly, mineral reserve estimates contained in this presentation may not qualify as “reserves” under SEC
standards.
In addition, this presentation uses the terms “measured mineral resources,” “indicated mineral resources” and “inferred mineral resources” to comply with the
reporting standards in Canada. The SEC does not recognize mineral resources and U.S. companies are generally not permitted to disclose mineral resources of
any category in documents they file with the SEC. Investors are specifically cautioned not to assume that any part or all of the mineral deposits in these
categories will ever be converted into mineral reserves as defined in NI 43-101 or Industry Guide 7. Further, “inferred mineral resources” have a great amount
of uncertainty as to their existence and as to whether they can be mined legally or economically. Therefore, investors are also cautioned not to assume that all
or any part of an inferred resource exists. It cannot be assumed that all or any part of “measured mineral resources,” “indicated mineral resources,” or “inferred
mineral resources” will ever be upgraded to a higher category. Investors are cautioned not to assume that any part of the reported “measured mineral
resources,” “indicated mineral resources,” or “inferred mineral resources” in this presentation is economically or legally mineable. For the above reasons,
information contained in this presentation containing descriptions of our mineral reserve and mineral resource estimates is not comparable to similar
information made public by U.S. companies subject to the reporting and disclosure requirements of the SEC.
All scientific and technical information relating to the Candelaria and Ojos del Salado projects are based on and derived from the NI 43-101 report, prepared for
the Company, entitled “Technical Report for the Compañia Minera Candelaria and Compañia Minera Ojos del Salado Copper Projects, Atacama Province, Region
III, Chile” dated October 6, 2014 (the “Technical Report”) prepared by “qualified persons” within the meaning of NI 43-101. The information contained herein is
subject to all of the assumptions, qualifications and procedures set out in the Technical Report and reference should be made to the full details of the Technical
Report which has been filed with the applicable regulatory authorities and is available on the Company’s profile at www.sedar.com. A copy of the preliminary
short form prospectus once filed may be obtained by contacting GMP Securities L.P. and will also be available on the Company’s profile at www.sedar.com
Stephen Gatley, Vice President - Technical Services of the Company, who is a "qualified person" as defined under NI 43- 101, has reviewed and approved the
technical information in this presentation. Mr. Gatley has verified the data disclosed in this presentation and no limitations were imposed on his verification
process.
This document is not an offer of securities for sale in the United States or in any other jurisdiction. Securities may not be offered or sold in the United States
absent registration or an exemption from registration under the U.S. Securities Act.
3
Presenters
Presenters
PAUL CONIBEAR
PRESIDENT & CEO
MARIE INKSTER
SR. VP & CFO
JULIE LEE HARRS
SR. VP CORP DEVELOPMENT
STEVE GATLEY
VP TECHNICAL SERVICES
4
Candelaria Acquisition – A Unique Opportunity
• Lundin is acquiring an 80% interest in the
high quality Candelaria mining complex
from Freeport for $1.8 billion in cash
• Total cost of $1.152 billion after upfront
payment of $648 million received on
sale of 68% of gold and silver stream to
Franco-Nevada
• Balance of purchase price is to be
funded with a combination of senior
secured debt and new equity
• Sumitomo will retain 20% interest
• Candelaria is located in Region III, Chile
at low elevation, near the coastal port
of Caldera
Note: All dollar amounts are in US dollars unless otherwise denoted.
• Opportunity to acquire a high quality copper producer in Chile
5
Candelaria Asset Overview
• Candelaria
• Large open pit mine with overall mining rate of
270,000tpd (LoM average strip ratio of 2.9:1)
• Underground mine – Candelaria Norte (6,000tpd)
• 75,000tpd concentrator
• Ojos del Salado
• Two underground mines – Alcaparrosa (4,000tpd) and
Santos (3,800tpd)
• 3,800tpd concentrator
• Supporting Infrastructure
• Wholly-owned large, underutilized modern port facility
• New desalination plant, providing water needs
• Long term competitive power supply contract in place
Candelaria – a well run asset with excellent infrastructure
6
Candelaria − High Quality Asset
Large, High Quality
Producer in Excellent
Jurisdiction
Proven Track Record with
Long Remaining
Mine Life
Mine Life Extension
Potential
(1)
Source: Wood Mackenzie. Based on 2013 production figures.
•
•
•
Within top 20 largest producing copper mines(1)
Average production for next five years of 139ktpa Cu
> 0.5% copper grades with attractive by-product
credits (Au, Ag)
•
•
Current Mineral Reserves support 14 year mine life
Competitive cost profile over life of mine
•
Opportunity to extend mine life with pit optimization
and underground exploration
Large prospective regional mineral property position
•
7
Candelaria – Excellent Strategic Fit for Lundin
Immediately accretive on key operating and financial
metrics including cash flow and earnings per share
Increases and diversifies copper production making
Lundin a top 20 copper producer globally
Adds core strength of large open pit capability
Delivers scale and geographic diversification to Lundin
Operations have low technical and execution risk
Acquisition is consistent with Lundin’s growth strategy and builds on the
success of the Eagle acquisition last year
8
Lundin – Well Diversified Base Metals Producer
Copper dominant with base metals and geographic diversification
(80%)
9
Transaction & Financing
Overview
10
Candelaria − TransacNon Overview
Transaction
• Lundin to acquire 80% interest in Candelaria and Ojos del Salado from Freeport
• $1.8 billion in cash ($1.15 billion net of streaming agreement), subject to customary adjustments
Purchase
Price
• Contingent consideration calculated as 5.0% of net copper revenues is payable to Freeport when
average annual realized copper price in the prior 12-month period exceeds $4.00/lb, capped at $200
million in aggregate over 5 years
• Transaction effective date of June 30, 2014
• $1.0 billion senior secured debt backstopped by a committed bridge facility
• Lundin’s existing $250 million term loan to be repaid
Financing
• Existing $350 million revolving credit facility to be kept or replaced on pre-agreed terms
• $648 million upfront payment for sale of precious metals stream to Franco-Nevada
• $600 million equity bought deal financing (approximately C$675 million)
•
Conditions
Closing
Participation from the Lundin Family Trust for C$100 million and Franco-Nevada for up to C$50 million
• Limited to normal regulatory approvals and Spanish anti-trust review
• Closing of the transaction is expected in Q4/2014
11
Candelaria − TransacNon Sources & Uses
Sources of Funds
New Transaction Debt
Uses of Funds
$1,000
Purchase Price
$1,800
Stream Agreement
$648
Acquisition Adjustments (2)
(cash & working capital)
Equity Financing (1)
$600
Repayment of Existing Term Loan
$250
Estimated Transaction Costs and
Expenses (3)
$74
General Corporate Purposes
$42
Total Sources
$2,248
Total Uses
$82
$2,248
Note: All amounts in $ millions.
(1) Equity financing is expected to be approximately C$675 million (or approximately US$600 million).
(2) The acquisition adjustment amount reflects the effective date of June 30, 2014 and is comprised of $53 million for excess non-cash working capital and a cash adjustment amount of $29 million.
In addition a preferred dividend cash payment of approximately $2.4 million will also be paid to Freeport.
(3) Includes $23mm of estimated debt financing fees, $22mm related to the issuance of subscription receipts and $29mm of transaction fees to be expensed as incurred.
12
Debt and Precious Metal Stream Financing
Debt Financing
Precious Metals Stream
• $1.0 billion of debt expected to be financed
with senior secured notes, backstopped by
committed bridge facility
• Stream on 68% of gold and silver production
until 720 Koz of gold and 12 Moz of silver
have been delivered; reducing to 40%
thereafter
• Strong pro forma financial position, with
conservative leverage ratios
• $648 million upfront payment for precious
metals stream sold to Franco-Nevada,
subject to minor post-closing adjustments
upon confirmation of certain additional
reserves
• Ongoing payments: Lesser of (i) prevailing
market prices and (ii) $400/oz Au and
$4.00/oz Ag; subject to a 1% inflation
adjustment starting in year 3
13
Candelaria Mining Complex
Overview
14
Candelaria – Reserve Base Supporting Long Mine Life
Mineral Reserves & Resources, 31 Dec 2013
Candelaria Open Pit Reserves
• All Mineral Reserves estimated
using $2.00/lb Cu price (with
$1,000/oz Au and $15/oz Ag)
• Over 2.0 Mt of copper metal in
Mineral Reserves support a 14 year
remaining mine life
• Excellent exploration potential to
further expand resource base
Category
Open Pit Mine
Stockpile
(1)(2)(3)
(4)
Tonnes
(000s)
Cu
(%)
Au
(g/t)
Ag
(g/t)
275,907
0.57%
0.13
2.08
92,025
0.36%
0.09
1.46
Underground Mines Reserves (5)
Category
Tonnes
(000s)
Cu
(%)
Au
(g/t)
Ag
(g/t)
Santos
5,409
0.98%
0.23
4.01
Alcaparrosa
2,157
1.04%
0.23
3.54
Ojos del Salado
7,565
0.99%
0.23
3.87
Candelaria Norte
4,922
1.14%
0.26
5.47
Cu (kt)
Au (koz)
Ag (koz)
Contained Metal Reserves & Resources
Total Reserves
380,419
2,050
1,542
24,603
Total M&I Resources
500,984
2,697
2,055
33,163
11,334
67
57
1,018
Total Inferred Resources
Note:
(1) Mineral Resources are reported within the boundaries of the Candelaria and Ojos Del Salado properties. Mineral Resources include Mineral Reserves. Mineral Resources are not Mineral Reserves and
have not demonstrated economic viability.
(2) Mineral resource and mineral reserve estimates also include a contribution from various operational work-in-progress stockpiles.
(3) All figures are rounded to reflect the relative accuracy of the estimates.
(4) Open pit Mineral Resources are reported at a cut-off grade of 0.2% copper. Underground Mineral Resources are reported at a cut-off grade of 0.6% copper.
(5) Underground Mineral Reserves are reported at various cut-off grades and mining costs. Mineral Reserves for open pit, underground and stockpiles/work-in-progress for the Candelaria property are
reported at cut-off grades of 0.25%, 0.81% and 0.24% copper, respectively. Underground Mineral Reserves for the Ojos del Salado property (Santos and Alcaparrosa) are reported at cut-off grades of
0.84% and 0.75%, respectively.
(6) Refer to slide to Combined Mineral Resources slide in Appendix for a breakdown of Measured and Indicated Resources
15
Candelaria – Large-Scale, Long-Life Asset
• Average LoM production
100%
80%
126 ktpa Cu
101ktpa Cu
77koz Au
62koz Au
1.4Moz Ag
Total Copper Production (ktpa) – 100% basis
191
175
174
156
147
1.1Moz Ag
125
126
Note:
(1) Production figures sourced from Freeport’s historical year-end results
Au: 77 koz
Ag: 1.4 Moz
Au: 97 koz
Ag: 1.9 Moz
2012A(1) 2013A(1) 2014E
Au: 73 koz
Ag: 1.5 Moz
2011A(1)
Au: 106 koz
Ag: 2.0 Moz
• Sumitomo will remain a strategic 20%
partner with concentrate off-take
agreements at market terms
Au: 101 koz
• High grade (30% Cu) quality copper
concentrates with low impurities
Au: 83 koz
• 14 year remaining life based on 2P
reserves
Au: 101 koz
• Average Cu production over next 5
years of 139ktpa (100% basis)
2015E
2016E
Remaining
LOM Avg.
16
Candelaria – Competitive Cost Profile
• Competitive C1 cash cost position of
$1.69/lb LoM average prior to precious
metals stream adjustment
Copper C1 Cash Costs (US$/lb)(1)
• Significant precious metals by-products
(Au, Ag)
$2.14
$2.06
$1.93
$1.88
$1.89
$1.80
• Magnetite credit from sale of tailings to
3rd party (~$33 million in 2013)
$1.69
$1.63
• Low cost power of $0.12/kWh (2013)
2014E
2015E
2016E
Pre-Stream (2)
Note: Waste stripping is expensed and included in C1 operating cost forecasts.
(1) Includes full year impact of precious metals stream in 2014 for illustrative purposes.
(2) Pre-stream C1 cash costs are based on metal price assumptions of $1,200/oz gold and $20/oz silver.
LoM Avg.
Post-Stream
17
Candelaria – Open Pit
• Iron Oxide Copper and Gold deposit
(IOCG) with chalcopyrite and
magnetite
• Conventional owner operated, drill
and blast, load and haul open pit
Material Mined (ore & waste)
Milled Ore
Average Remaining LoM
Copper Grade
LoM Strip Ratio (ex. Stockpiles)
270 ktpd
66 ktpd
0.57% Cu
2.9 : 1
• Good pit geotechnical conditions
18
Underground Mines With Exploration Potential
• Three underground mines
• Candelaria Norte (6,000tpd)
• Alcaparrosa (4,000tpd)
• Santos (3,800tpd)
• All underground mining with sub-level open
stoping
• Large vertical stopes
• All mining operations by contractors
• Good geotechnical conditions
• Ongoing exploration program has led to new
significant discoveries which are expected to
extend mine lives
• Mineral Reserve grades of ~1.0% Cu or higher
19
Candelaria Complex − Processing FaciliNes
Candelaria and Ojos Processing Plants
• Two conventional crush/grind floatation plants
• Quality concentrate production:
• High grade concentrate with low penalties
• Magnetite recovery from tailings by third party
2 –SAG Mills, 36 x 15 ft
4 –Ball Mills, 20 x 30 ft
Candelaria Plant (2 lines)
25mtpa
Pedro Aguirre (PAC) Plant
1.4mtpa
Copper Recovery
≈92%
Gold Recovery
≈75%
Copper Concentrate
≈30% Cu
Gold in Concentrate
≈6 g/t
Silver in Concentrate
≈90 g/t
10 –4500 Flotation Cells
14 –3000 Flotation Cells
20
Candelaria – Tailings
•
•
•
•
Existing tailings management
facility (“TMF”) has permitted
capacity to 2017
Permitting for new Los Diques
tailings storage underway as a part
of “Candelaria 2030” with EIA
submitted in 2013
Los Diques design capacity - 600mt
tailings (390mt needed)
Estimated Los Diques capital spend
of ~$310M over next five years
Potential Total Tailings Capacity (with required permits and land position)
= 6 billion tonnes
21
Candelaria – Excellent Infrastructure and Capacity
100%-Owned Port with Excess Capacity:
•
Punta Padrones port facility located ~100km from mine
•
Storage capacity of 45,000 wmt
•
Significant spare capacity: currently ship a maximum of
600k wmt per year– max capacity of 3.5M wmt per year
Low Cost Grid Power:
•
Mine connected to Chilean HV grid
•
10 year power contract in place until 2022
•
Current total demand from Candelaria and Ojos is
~110MW while contract allows up to 135MW
•
2013 power cost of $0.12/kWh
Water and Desalination Plant:
•
Historically, water sourced from groundwater wells in
Copiapo valley
•
500 l/s desalination plant at Punta Padrones and pipeline
to Candelaria
•
Commissioned in Q1/13
22
Corporate Citizenship
Lundin is committed to becoming a valuable
and long standing resident of the Copiapo
region:
• We aim to create sustainable value from our
presence in host communities wherever we
operate
• Lundin’s reputation as a good corporate
citizen is critical to our long-term success
Candelaria – Community Involvement:
• Facilities are located adjacent to the town of
Tierra Amarilla and the port city of Caldera
• Majority of work force live in Copiapo
• Intent is to advance existing social and
community improvement programs
Lundin is committed to maintaining strong stakeholder relationships
23
Lundin Pro-Forma
24
Enhances Lundin's Copper Exposure
Impact to Copper Production (kt)
Candelaria (80%)
350
Impact to Copper 2P Reserves (Mt)
Lundin Standalone
Percentage Increase over 2013:
+103%
Candelaria (80%)
+129%
Lundin Standalone
4.5
4.0
300
3.7
267
250
3.5
237
3.0
1.6
200
139
2.5
125
2.0
2.0
150
1.6
117
112
1.5
100
1.0
50
117
112
112
2.0
128
0.5
--
--
2013 Actual 2014E Guidance
2014E
(1)
Pro-Forma
2015E
Pro-Forma
Lundin
Candelaria
Pro-Forma
(2)
Source: Company filings.
Notes: Lundin production profile based on mid-point of 3-yr guidance provided in December 2013. Copper profile does not include any future expansions at Tenke. Includes attributable production from Tenke
Fungurume and Candelaria (where applicable).
(1) Reflects full year production from Candelaria for illustrative purposes.
(2) Refer to the Appendix for Lundin’s Pro Forma Mineral Reserve Statement
25
Enhances Lundin's Financial Metrics
Impact to H1 2014 Op. Cash Flow1 (US$M)
Candelaria (80%)
$250
Impact to H1 2014 Earnings (US$M)
Lundin Standalone
Percentage Increase:
Candelaria (80%)
+147%
$150
Lundin Standalone
Percentage Increase:
+137%
$126
$208
$120
$200
$150
$124
$90
$73
$124
$100
$73
$60
$84
$53
$124
$50
$84
$73
$84
$30
$53
$53
$0
$0
Lundin
Candelaria
Pro-Forma
Lundin
Candelaria
Highly accretive to cash flow and earnings
1.
Pro-Forma
(2)
Before change in net working capital
Source: Lundin Mining Management’s Discussion and Analysis for the three and six months ended June 30, 2014, Compañia Contractual Minera Candelaria Interim Unaudited Financial Statements as of and
for the six-month periods ended June 30, 2014, Compañia Contractual Minera Ojos Del Salado Interim Unaudited Financial Statements as of and for the six-month periods ended June 30, 2014 and Lundin
Mining Corporation Pro Forma Financial Statements. Candelaria OCF calculated as 80% of Candelaria and Ojos Del Salado OCF before change in net working capital less 100% of the pro forma cash
adjustments to reflect impact the of stream, finance costs and business development costs associated with the acquisition.
26
Increases Geographic Diversification
2015E Attributable Cu Eq. Production by Country (1)(2)(3)
Current
Pro Forma
Spain
6%
Sweden
15%
Spain
Sweden 4%
10%
USA
28%
Chile
33%
DRC
15%
DRC
23%
Portugal
28%
Portugal
19%
USA
19%
Chile becomes Lundin’s largest producing region
(1)
(2)
(3)
Based on midpoint of 2015E production guidance provided by Lundin. Only includes commodities for which Lundin provides public guidance. Excludes gold and silver. Based on 80% interest in Candelaria.
Equivalency calculated according to the following prices: $3.00/lb Cu, $1.00/lb Zn, $8.00/lb Ni, $12.00/lb Co and $1.05/lb Pb.
Cobalt guidance for 2015E assumed equal to 2014E guidance.
27
Well-Diversified Base Metals Exposure
2015E Attributable Cu Eq. Production by Commodity (1)(2)(3)
Current
Pro Forma
Cobalt Lead
3% 3%
Lead
Cobalt
4%
5%
Zinc
13%
Zinc
19%
Copper
46%
Nickel
17%
Copper
64%
Nickel
26%
Enhanced copper exposure and strong leverage to nickel and zinc maintained
(1)
(2)
(3)
Based on midpoint of 2015E production guidance provided by Lundin. Only includes commodities for which Lundin provides public guidance. Excludes gold and silver. Based on 80% interest in Candelaria.
Equivalency calculated according to the following prices: $3.00/lb Cu, $1.00/lb Zn, $8.00/lb Ni, $12.00/lb Co and $1.05/lb Pb.
Cobalt guidance for 2015E assumed equal to 2014E guidance.
28
Lundin – with Candelaria
Enhances earnings and cash flow on a per share basis with the addition
of an established, large scale, low risk operation
Diversifies geographic and base metals portfolio; provides added copper
exposure while maintaining excellent leverage to zinc and nickel
Further strengthens asset base of high quality and long-life mines, with strong growth
potential
Financing plan enables Lundin to maintain a strong balance sheet post
acquisition
Secures Lundin’s position as a leading intermediate base metals
producer with significant scale and competitive costs
29
TSX: LUN
OMX: LUMI
Questions & Answers
Appendix
31
Combined Mineral Reserves
Note: Refer to slide 15 for Candelaria’s Mineral Reserve statement details
o
Lundin wholly-owned operations as of 30 June 2014, Tenke Fungurume and Candelaria as at 31 December 2013.
o
Except as noted below, Mineral Reserves have been calculated using metal prices of $2.50/lb copper, $1.00/lb zinc, $1.00/lb lead, $8.50 nickel and exchange rates of EUR/USD 1.25 and USD/SEK 6.75.
•
Tenke Mineral Reserves based on $2.00/lb copper and $10.00/lb cobalt.
o
Refer to the Company’s news release dated September 4, 2014 for further details including parameters assumptions and methods.
32
Combined Mineral Resources - Copper
Note: Refer to slide 15 for Candelaria’s Mineral Reserve statement
o
Lundin wholly-owned operations as of 30 June 2014, Tenke Fungurume and Candelaria as at 31 December 2013.
33
Combined Mineral Resources - Continued
Note: Refer to slide 15 for Candelaria’s Mineral Reserve statement
o
Lundin wholly-owned operations as of 30 June 2014, Tenke Fungurume and Candelaria as at 31 December 2013.
34