Earnings release
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Lundin Mining Corporate Office 2800-1055 Dunsmuir St Vancouver , BC , V7X 1L2 Phone : +1 604.689.7842 lundinmining.com News Release Lundin Mining Reports Second Quarter 2026 Results ; Strong Operational Performance Generated Near - Record Revenue and Free Cash Flow Vancouver , August 5 , 2026 ( TSX : LUN ; Nasdaq Stockholm : LUMI ) Lundin Mining Corporation ( " Lundin Mining " or the " Company " ) today reported its second quarter 2026 financial results . Unless otherwise stated , results are from continuing operations and presented in US dollars on a 100 % basis . Jack Lundin , President and CEO commented , " We delivered another quarter of strong operational and financial performance , producing approximately 77,000 tonnes of copper and 33,000 ounces of gold while generating near - record revenue of $ 1.2 billion and adjusted EBITDA of $ 658 million . Our operations continued to perform well , with strong contributions from Caserones and improved recoveries at Chapada , while Candelaria was impacted by planned mine sequencing adjustments . " 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 . " We also continued to advance our growth strategy , progressing with approval for the construction of an additional ball mill at Chapada which is key to unlocking the Saúva project . Another important milestone at Vicuña Corp. was reached with the approval of RIGI PEELP status in Argentina , supporting our objective of reaching a Stage 1 sanction decision by year - end . Lastly , in the second quarter , we strengthened our ownership in the Vicuña district through the acquisition of an additional 5 % interest in Caserones and a 30.9 % interest in Los Helados , while maintaining a net cash position and continuing to return capital to shareholders through our share repurchase program . " Looking ahead , our priorities remain clear : operating safely , delivering consistent performance , advancing our organic growth opportunities and progressing Vicuña toward sanctioning . Supported by a portfolio of long - life , high - margin assets and one of the industry's strongest copper growth pipelines , Lundin Mining is well positioned to deliver long - term value for shareholders . " Second Quarter Operational and Financial Highlights Continued consistent operational performance , supported by elevated metal prices , drove strong cash flow generation during the quarter , enabling the Company to end the period with a net cash position of $ 79.0 million after completing the $ 215 million acquisition of an additional 5 % interest in Caserones and a 30.9 % interest in Los Helados . The Company continued to execute on its growth strategy with the approval of the additional ball mill at Chapada as part of the Saúva project in Brazil and the approval by the Argentinian government of the Incentive Regime for Large Investments ( " RIGI " ) for the Vicuña Project . The Company also returned capital to shareholders through the repurchase of approximately 2.2 million shares under its normal course issuer bid . . Copper Production : 76,877 tonnes at a consolidated cash cost¹ of $ 2.11 / lb . • Gold Production : 33,427 ounces of gold was produced . • • • • • Revenue : $ 1,212.7 million with a realized copper price of $ 6.51 / lb and a realized gold price of $ 4,385 / oz . Net Earnings and Adjusted Earnings¹ : Net earnings attributable to shareholders of the Company was $ 278.4 million ( $ 0.33 per share ) and adjusted earnings was $ 256.7 million ( $ 0.30 per share ) . Adjusted EBITDA¹ : $ 658.0 million for the quarter . Capital Expenditures¹ : Sustaining capital expenditures² were $ 110.7 million and expansionary capital expenditures¹ were $ 83.1 million . Cash Generation : Cash provided by operating activities in the quarter was $ 458.8 million , adjusted free cash flow from operations¹ was $ 395.9 million . Shareholder Returns : Under its normal course issuer bid , the Company repurchased 2,202,900 common shares for aggregate purchases of approximately $ 56.2 million and declared a dividend of C $ 0.0275 per share during the quarter . The Board has also approved an increase of up to $ 100 million to the share repurchase program for the remainder of 2026 . Growth : The Company is continuing to advance its growth initiatives and completed several significant milestones in the quarter to achieve its long term goal of becoming a top ten copper producer :
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◦ On April 7, 2026, the Company completed the acquisition from JX Advanced Metals Corporation and affiliates ("JX") of an additional 5% interest in the Caserones mine, along with a 30.9% interest in the Los Helados Project and a 0.62% smelter return royalty on Los Helados for total consideration of $215 million. Upon closing of the transaction, the Company's ownership interest in Caserones mine increased to 75%. ◦ During the quarter, Vicuña Corp. achieved a major milestone and received approval for the inclusion of the Josemaria and Filo del Sol deposits (collectively, the "Vicuña Project" or the "Project") to the RIGI under the Long-Term Strategic Export Projects designation ("PEELP") in Argentina. Vicuña is the first copper mining project in Argentina to be granted the more favourable RIGI PEELP status. The approval provides long -term fiscal stability and investment certainty, supporting progress toward a Stage 1 investment decision as early as year-end. ◦ Subsequent to the quarter, Vicuña secured a long -term royalty agreement and infrastructure trust (the "Provincial Agreement") with the Government of San Juan Province, Argentina (the "Province"), which will provide further economic stability for the project. An advanced infrastructure trust contribution of $250 million (Lundin Mining's attributable share: $125 million) is expected to be made in Q4 2026 providing upfront funding for provincial infrastructure and community initiatives, while granting the project a five -year payment holiday from first production from required infrastructure trust contributions. ◦ On June 17, 2026, the Company hosted a Capital Markets Day, which outlined medium -term, low -cost brownfield expansion opportunities alongside the Vicuña Project which offers transformational long -term growth potential. The Company also provided a financial outlook for the next five and ten years that outlined a clear investment thesis and the ability to fund future growth plans. ◦ As part of the Company's near-term growth strategy, it has approved the construction of an additional ball mill at Chapada to achieve higher recoveries as part of the Saúva growth project. Construction is expected to commence by year-end, with commissioning targeted for late 2027. • Net Cash 1: As at June 30, the net cash position of the Company was $79.0 million. As at August 5, net cash was approximately $75 million. • Outlook: Notwithstanding the impact of the severe winter storm, the Company anticipates 2026 consolidated production and cash cost to fall within the annual guidance ranges. Cash cost guidance at Chapada has been reduced to $0.75 - $0.95 /lb copper. The consolidated cash cost guidance remains unchanged from $1.90 - $2.10 /lb copper. Annual expansionary capital expenditure guidance has been updated from $50 million to $85 million to reflect the sanctioning of the ball mill construction at Chapada. 1 These are non -GAAP measures. Please refer to the Company's discussion of non -GAAP & other performance measures in its MD&A for the three and six months ended June 30, 2026 and the Reconciliation of Non-GAAP Measures section at the end of this news release. 2 Sustaining capital expenditures is a supplementary financial measure, see the Company's discussion of non -GAAP & other performance measures in its MD&A for the three and six months ended June 30, 2026 and the Reconciliation of Non-GAAP Measures section at the end of this news release.
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Summary Financial Results 2026 2025 ($ millions continuing operations) YTD1 Q2 Q1 Total1 Q4 Q3 Q2 Q1 Revenue and profit Revenue 2,371.5 1,212.7 1,158.8 4,053.2 1,301.5 953.9 878.2 919.6 Production costs (1,000.0) (513.0) (487.0) (1,948.1) (546.8) (455.3) (466.3) (479.8) Depreciation, depletion and amortization (268.8) (134.5) (134.3) (618.9) (169.7) (162.2) (153.4) (133.5) Gross profit 1,102.7 565.2 537.5 1,398.0 496.8 336.4 258.5 306.3 Net earnings 757.7 370.7 387.0 1,417.7 912.3 175.1 149.2 181.2 - attributable to shareholders 558.9 278.4 280.5 1,047.2 659.9 133.6 115.7 137.9 Adjusted earnings2 521.3 256.7 264.6 687.9 363.7 143.2 87.8 93.8 Adjusted EBITDA2 1,284.7 658.0 626.7 1,917.1 686.4 472.2 376.5 382.2 Cash flow Cash provided by operating activities 952.5 458.8 493.7 1,207.9 533.0 254.9 292.7 127.6 Adjusted operating cash flow2 944.6 494.5 450.1 1,621.9 665.1 366.4 261.1 329.5 Free cash flow from operations2 739.9 360.2 379.7 773.6 388.3 160.1 195.2 30.2 Free cash flow2 578.6 265.0 313.6 538.9 331.9 101.3 149.4 (43.4) Capital expenditures Sustaining capital expenditure3 236.5 110.7 125.8 477.8 157.6 102.5 109.6 108.1 Expansionary capital expenditure3 137.4 83.1 54.3 191.2 43.5 51.1 33.7 62.9 Per share amounts EPS - Basic ($/share) 0.65 0.33 0.33 1.22 0.77 0.16 0.14 0.16 EPS - Diluted ($/share) 0.65 0.32 0.33 1.22 0.77 0.16 0.13 0.16 Adjusted EPS2 ($/share) 0.61 0.30 0.31 0.80 0.42 0.17 0.10 0.11 Dividends declared (C$/share) 0.0550 0.0275 0.0275 0.1725 0.0275 0.0275 0.0275 0.09 1 The sum of quarterly amounts may differ from year-to-date and total results due to rounding. 2 These are non-GAAP measures. Please refer to the Company's discussion of non -GAAP & other performance measures in its MD&A for the three and six months ended June 30, 2026 and the Reconciliation of Non-GAAP Measures section at the end of this news release. 3 Capital expenditures are reported on a cash basis, as presented in the consolidated statement of cash flows and excluding cap italized interest. Sustaining capital expenditures is a supplementary financial measure and expansionary capital expenditures is a non -GAAP measure – please refer to the Company's discussion of non-GAAP & other performance measures in its MD&A for the three and six months ended June 30, 2026 and the Reconciliation of Non -GAAP Measures section at the end of this news release.
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Production Overview 2026 2025 (contained metal) YTD Q2 Q1 Total Q4 Q3 Q2 Q1 Copper (t) Caserones (100%) 72,516 33,964 38,552 132,881 39,612 35,270 29,290 28,709 Candelaria (100%) 61,736 30,928 30,808 145,471 34,272 37,129 36,999 37,071 Chapada 22,559 11,985 10,574 43,974 11,191 12,600 11,274 8,909 Total 156,811 76,877 79,934 322,326 85,075 84,999 77,563 74,689 Gold (oz) Candelaria (100%) 35,582 17,843 17,739 80,528 19,055 19,899 20,574 21,000 Chapada 29,382 15,584 13,798 61,331 15,074 17,864 17,544 10,849 Total 64,964 33,427 31,537 141,859 34,129 37,763 38,118 31,849 Molybdenum (t) Caserones (100%) 967 378 589 2,082 526 574 380 602 Silver (koz) Candelaria (100%) 582 291 291 1,798 441 477 431 449 Chapada 133 66 67 258 66 73 69 50 Total 715 357 358 2,056 507 550 500 499 Sales Volumes 2026 2025 (payable metal) YTD Q2 Q1 Total Q4 Q3 Q2 Q1 Copper (t) Caserones (100%) 69,940 33,479 36,461 138,287 45,134 26,896 30,076 36,181 Candelaria (100%) 60,335 29,512 30,823 140,500 32,882 36,041 36,603 34,974 Chapada 21,454 11,083 10,371 42,040 9,413 13,997 10,284 8,346 Total 151,729 74,074 77,655 320,827 87,429 76,934 76,963 79,501 Gold (oz) Candelaria (100%) 34,278 17,025 17,253 76,537 17,700 19,041 20,021 19,775 Chapada 26,388 13,737 12,651 56,569 12,403 19,735 14,402 10,029 Total 60,666 30,762 29,904 133,106 30,103 38,776 34,423 29,804 Molybdenum (t) Caserones (100%) 984 354 630 1,976 451 508 389 628 Silver (koz) Candelaria (100%) 463 219 244 1,598 372 434 395 397 Chapada 62 33 29 129 26 48 30 25 Total 525 252 273 1,727 398 482 425 422
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Caserones (Chile) Operating Statistics 2026 2025 (100% Basis) YTD Q2 Q1 Total Q4 Q3 Q2 Q1 Ore mined (kt) 17,423 9,101 8,322 36,712 8,553 8,479 9,680 10,000 Ore milled (kt) 16,595 8,379 8,216 33,383 8,200 8,530 7,984 8,669 Ore placed on leach (kt) 7,396 3,868 3,528 16,777 3,142 3,910 4,962 4,763 Grade Copper (%) 0.44 0.41 0.47 0.40 0.47 0.43 0.37 0.33 Molybdenum (%) 0.016 0.017 0.015 0.011 0.013 0.011 0.008 0.011 Production (contained metal) Copper in concentrate (t) 58,250 27,629 30,621 107,064 32,324 29,010 23,490 22,240 Copper cathode (t) 14,266 6,335 7,931 25,817 7,288 6,260 5,800 6,469 Total copper (t) 72,516 33,964 38,552 132,881 39,612 35,270 29,290 28,709 Molybdenum (t) 967 378 589 2,082 526 574 380 602 Revenue ($ millions) 1,024.2 517.9 506.3 1,618.9 598.5 311.8 322.7 385.9 Production costs ($ millions) 411.7 212.4 199.3 854.5 247.3 158.5 204.7 243.9 Gross profit ($ millions) 525.8 261.2 264.6 552.2 290.8 103.8 61.5 96.1 Cash cost ($/lb copper)1 1.85 2.14 1.58 2.17 1.88 1.86 2.45 2.52 Sustaining capital ($ millions)1 97.1 42.2 54.9 156.3 56.8 29.4 31.9 38.2 All-in sustaining cost ("AISC") ($/lb copper)1 2.86 3.10 2.63 3.03 2.74 2.74 3.34 3.36 1AISC per pound sold and Cash cost per pound sold are non -GAAP measures and Sustaining capital is a supplementary financial measure, see the Company's discussion of non -GAAP & other performance measures in its MD&A for the three and six months ended June 30, 2026 and the Reconciliation of Non -GAAP Measures section at the end of this news release. Q2 2026 Performance During the quarter, mining activities were primarily focused on Phase 6, with some contribution from Phase 7. Copper concentrate production continued to benefit from high grades in Phase 6 and strong throughput as a result of initiatives unde r the Full Potential program, which focuses on achieving sustainable operational efficiencies and financial savings. Additional irrigated area in the dump leach continues to benefit copper cathode production. Molybdenum production in the quarter was impacted by lower recoveries as a result of ore characteristics in the current mine sequence of the open pit. YTD 2026 Compared to 2026 Guidance Copper production is in line with annual production guidance, reflecting the planned first -half weighting of the 2026 production profile supported by higher realized grades from Phase 6. Once Caserones is fully operational following the temporary suspension resulting from the severe winter storm in July, consistent copper cathode production and throughput are expected to continue for the remainder of the year. Growth Projects The Caserones cathode plant capacity is approximately 35,000 tonnes of copper cathode production per year, representing an opportunity to increase production from current levels through higher utilization rates. Additional oxide material placed on the dump leach and improved leaching practices led to stronger cathode production in 2025 and through the first half of 2026. An additional project to further increase cathode production is being executed in two phases. Phase 1 is focused on operational and leaching improvements, including increasing tonnage placed on the dump le ach, expanding irrigation areas, and increasing irrigation acidity, which are expected to support production reaching the plant's current capacity of 35,000 tonnes per year. Phase 2 is expected to further increase cathode production capacity to 40,000 tonnes per year through the repowering of the existing rectifiers. Exploration Update At Caserones, four rigs drilled 7,610 metres (eight completed holes, three in -progress) during the quarter, targeting high-grade copper breccias at Angelica, Centauro, and Caserones SW. The road to Cordillera is nearing completion, with two drill pads completed. Results from these drilling campaigns are pending.
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Candelaria (Chile) Operating Statistics 2026 2025 (100% Basis) YTD Q2 Q1 Total Q4 Q3 Q2 Q1 Ore mined (kt) 14,267 6,546 7,721 37,018 7,935 9,145 9,721 10,217 Ore milled (kt) 15,454 7,587 7,867 31,579 7,972 8,103 7,752 7,752 Grade Copper (%) 0.44 0.45 0.43 0.50 0.47 0.49 0.52 0.52 Gold (g/t) 0.10 0.10 0.10 0.12 0.11 0.11 0.12 0.12 Production (contained metal) Copper (t) 61,736 30,928 30,808 145,471 34,272 37,129 36,999 37,071 Gold (oz) 35,582 17,843 17,739 80,528 19,055 19,899 20,574 21,000 Revenue ($ millions) 929.6 476.2 453.4 1,769.0 518.5 426.8 404.6 419.1 Production costs ($ millions) 418.2 216.2 202.0 783.9 226.6 199.2 186.1 172.1 Gross profit ($ millions) 369.5 188.3 181.2 685.1 218.9 144.7 143.6 177.8 Cash cost ($/lb copper)1 2.38 2.63 2.15 1.92 2.29 1.87 1.81 1.75 Sustaining capital ($ millions)1 92.8 45.5 47.3 224.4 79.5 46.9 50.2 47.7 AISC ($/lb copper)1 3.22 3.48 2.98 2.75 3.51 2.55 2.53 2.46 1AISC per pound sold and Cash cost per pound sold are non -GAAP measures and Sustaining capital is a supplementary financial measure, see the Company's discussion of non -GAAP & other performance measures in its MD&A for the three and six months ended June 30, 2026 and the Reconciliation of Non -GAAP Measures section at the end of this news release. Q2 2026 Performance Open pit mining continued at Phase 11 during the quarter but due to temporary equipment unavailability, mining was accelerated at Phase 12 which resulted in slightly higher average grade compared to Q1. Cash cost during the quarter was impacted by increased mining at Phase 12 which has a higher strip ratio, therefore leading to increased costs of waste movement. Cash cost was also impacted by elevated diesel costs. YTD 2026 Compared to 2026 Guidance Production remains in line with annual guidance. Candelaria's production profile is weighted towards the second half of the year due to increased availability of higher -grade Phase 12 ore, combined with increased underground mining rates as the underground insourcing initiative nears completion. Cash cost continued to benefit from strong gold and silver prices. In H2 2026, cash cost is expected to decrease due to anticipated higher average grades with forecast full year cash cost anticipated to stabilize within the annual guidance range. Growth Projects The Candelaria underground expansion project is expected to increase underground throughput capacity to approximately 22,000 tonnes per day from current production levels, targeting a medium -term increase in annual copper production of 10% or approximately 14,000 tonnes of copper. The opportunity includes phased insourcing of the Company's underground mining contract and an increase in the number of active mining stopes. This opportunity is not included in Candelaria's three -year guidance figures. Candelaria’s first half 2026 results reflected lower underground mining rates as the Company insources the underground mining contract. Insourcing is nearing completion and mining rates are expected to increase in H2 2026 before stabilizing at 14,000 tonnes per day by the end of 2027. Planning is underway to support a gradual increase in underground mining rates, reaching approximately 22,000 tonnes per day by 2030. Projects are also ongoing to support the mine life extension under the 2040 Environmental Impact Assessment ("EIA"). Exploration Update At Candelaria, a total of 3,290 metres were drilled underground in the Mariana sector of Candelaria Sur (six completed, one in- progress) to follow the extension of known vein/breccia mineralization, and on surface at Española (one in progress), testing continuity of the known mineralized system.
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Chapada (Brazil) Operating Statistics 2026 2025 (100% Basis) YTD Q2 Q1 Total Q4 Q3 Q2 Q1 Ore mined (kt) 11,229 5,258 5,971 19,934 6,485 5,444 4,725 3,280 Ore milled (kt) 12,266 6,001 6,265 23,687 6,021 6,171 5,675 5,820 Grade Copper (%) 0.24 0.26 0.22 0.25 0.24 0.26 0.27 0.22 Gold (g/t) 0.15 0.16 0.15 0.16 0.16 0.16 0.18 0.13 Production (contained metal) Copper (t) 22,559 11,985 10,574 43,974 11,191 12,600 11,274 8,909 Gold (oz) 29,382 15,584 13,798 61,331 15,074 17,864 17,544 10,849 Silver (koz) 133 66 67 258 66 73 69 50 Revenue ($ millions) 417.7 218.6 199.1 665.3 184.5 215.3 150.9 114.6 Production costs ($ millions) 169.4 84.1 85.3 306.8 71.9 96.4 75.0 63.5 Gross profit (loss) ($ millions) 208.5 116.2 92.3 164.1 (11.8) 89.2 54.0 32.8 Cash cost ($/lb copper)1 0.54 0.62 0.45 0.75 0.45 0.50 0.75 1.47 Sustaining capital ($ millions)1 45.7 22.1 23.6 96.8 21.1 26.1 27.4 22.2 AISC ($/lb copper)1 1.88 1.89 1.87 2.06 1.81 1.58 2.24 2.94 1AISC per pound sold and Cash cost per pound sold are non -GAAP measures and Sustaining capital is a supplementary financial measure, see the Company's discussion of non -GAAP & other performance measures in its MD&A for the three and six months ended June 30, 2026 and the Reconciliation of Non -GAAP Measures section at the end of this news release. Q2 2026 Performance Mining during the quarter remained focused on the South pit. Mill throughput continued to benefit from high operational availability from efficiencies achieved through the Full Potential program and a softer ore blend during the period. YTD 2026 Compared to 2026 Guidance Production remains in line with annual guidance. Average copper grades are expected to modestly increase during the second half of the year and throughput is expected to continue to benefit from operational efficiencies. Growth Projects The Saúva deposit is approximately 15 kilometres from the Chapada mine and represents a near mine opportunity to add approximately 15,000 tonnes of annual copper production and approximately 45,000 ounces of annual gold production. The project will include the installation of an additional ball mill at Chapada to process higher grade ore from Saúva , replacing lower grade material currently being mined at the Chapada open pit. As part of this project, the construction of an additiona l ball mill has been approved and is expected to increase copper and gold recoveries by approximately 5% with earthworks having begun in July 2026 and commissioning of the ball mill expected in late 2027. Further design and engineering work on this project will continue along with Saúva permitting. An updated technical report fo r the Chapada mine and Saúva Project is in progress and expected to be completed in Q4 2026. Exploration Update At Chapada, one drill completed five holes totaling 2,720 metres targeting a potential high-grade down-dip extension at Saúva.
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Vicuña Project (Argentina and Chile) The development of the Vicuña district is envisioned in a staged approach. Stage 1 encompasses a sulphide mill and the Josemaria deposit, establishing an initial open pit mine and concentrator designed for future expansion to accelerate first production and early cash flow. Stage 2 builds on this foundation by developing the Filo del Sol leachable oxides and a corresponding solvent extraction and electrowinning (SX/EW) plant for copper, gold and silver recovery. Stage 3 represents th e long-term maturation of the district through expansion of the concentrator and development of the Filo del Sol sulphide deposit, enabling peak, sustained production, positioning the Vicuña Project as a long -life, globally significant copper operation. Stage 3 also integrates key district infrastructure, including a desalination plant and associated pipeline, concentrate slurry pipel ine and concentrate treatment facility, to support expansion of the district. RIGI Approval In June 2026, Vicuña received approval for the inclusion of the Vicuña Project to RIGI under the PEELP designation. Argentina ’s RIGI regime is designed to attract and accelerate large -scale investment through long -term fiscal stability and transparent regulatory conditions. Vicuña is the first copper mining project in Argentina to be granted the more favourable RIGI PEELP status. RIGI offers regulatory stability, including lower corporate and dividend withholding tax rates, removal of export dut ies, value added tax offsets and repatriation of revenues. RIGI PEELP is designed to support large scale, long -term investments into Argentina and provides longer benefit periods (40 years vs 30 years) and accelerated timelines to repatriate revenues and export duty exemptions, as compared to the regular RIGI regime. Provincial Agreements Subsequent to the quarter, Vicuña secured a Provincial Agreement with the Government of San Juan Province, Argentina to provide further economic stability for the project. Vicuña and the Province have agreed to: • Consolidate all financial contributions for public works and infrastructure required under the Vicuña Project’s Declaration of Environmental Impact (mining permit) into a single 1.5% gross revenue infrastructure trust for the life of mine which simplifies the funding of the infrastructure contributions between the two deposits; • An advanced infrastructure trust contribution of $250 million (Lundin Mining's attributable share: $125 million). The $250 million advanced contribution will provide Vicuña with a 5 -year payment holiday from first production from infrastructure trust contributions, while providing upfront funds to the Province for infrastructure and community initiatives; and • A cap to the provincial mining royalty of 3% gross revenue for the life of mine. The Provincial Agreement remains subject to approval by the San Juan Legislature prior to being passed into law, and the advanced payment is expected to be completed in Q4 2026. Project Development During the quarter, the Company spent $74.4 million in capital expenditures compared to $32.2 million in Q2 2025, reflecting increased project readiness activities as the project advances towards a sanction decision. During the quarter, activities we re focused on detailed design and engineering, execution planning, and the ramp up of Stage 1 early earthworks. A 24 -truck fleet was mobilized during the quarter to initiate early earthworks with 1.1 million tonnes moved in the quarter. Drilling activities, including geotechnical drilling at Josemaria and Filo del Sol and exploration drilling at Filo del Sol, advanced with approximately 14,350 metres of exploration drilling completed during the quarter (29,150 metres year -to-date), progressing towards the drill target of 50,000 metres for 2026. On a year -to-date basis, the Company spent $126.6 million in capital expenditures compared to $74.9 million in year -to-date 2025. Capital expenditures increased due to expanded engineering and execution planning activities as the project advances towards a sanction decision. Subsequent to the quarter, Vicuña received approval from the National Gas and Electricity Regulatory Entity (ENRGE) to build the high voltage powerline and electrical infrastructure for the Vicuña Project along with securing capacity to meet the powe r demands of the operation. Upcoming Project Development Milestones The Company intends to continue to work with its partner, BHP , and the Vicuña Project team to advance the Vicuña Project to a sanctioning decision. Key upcoming activities and milestones include: • Engineering and mine design optimization activities for Stage 1. • Advancement of financing structure to fund construction. • Completion of Stage 1 capital cost estimate and construction schedule. • Trade off studies and optimization of Stages 2 & 3. Detailed design and engineering on the Vicuña Project is ongoing. The technical team is focused on advancing all aspects of t he project to target a sanctioning decision as early as the end of 2026. Technical Report Results The results of the Vicuña Project integrated study, including an updated Mineral Resource estimate for the Vicuña Project (th e "Updated Vicuña Mineral Resource"), were published on February 16, 2026 and highlighted a development project with the potential to rank among the top five copper, gold, and silver mines globally.
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Highlights1: • Potential to be a top five copper, gold, and silver mine: Average annual production of 400,000 tonnes copper, 700,000 oz gold and 22 Moz silver over the first 25 full years of operation. • Peak production of +500 ktpa copper: Average production over a ten -year period of over 500,000 tonnes copper, 800,000 oz gold and 20 Moz silver or 800,000 tonnes CuEq2. • Multi-generational asset: Initial +70-year LOM, producing approximately 22.3 Mt of copper, 37.2 Moz of gold and 763 Moz of silver. • Significant free cash flow: Average annual free cash flow of $2.2 billion per year (after expansionary capital) during the first 25 years. • Leveraged to copper and gold: LOM revenue contribution of 60% copper, 32% gold and 8% silver. • Capital intensity below $30,000/tonne CuEq: Stage 1 capital of $7.1 billion with an after -tax payback period of 8.4 3 years and an after-tax IRR of 14.8%. • Resource growth: The Updated Vicuña Mineral Resource grew significantly compared to the previous estimate4. • Base-case scenario: NPV8% of $9.5 billion after-tax at $4.60/lb copper, $3,300/oz gold and $40/oz silver. • Value accretion at higher metal prices: $6.00/lb copper, $5,000/oz gold & $80/oz silver increases the NPV8% to $28.8 billion and the IRR to 25.5% with a payback of 5.4 years. The results of the integrated study were subsequently filed in a technical report ("Vicuña Technical Report") entitled "Vicuñ a Project, Argentina and Chile NI 43 -101 Technical Report on Preliminary Economic Assessment", available on SEDAR+ at www.sedarplus.ca. The Vicuña Project integrated study is preliminary in nature and provides only an initial, high -level review of the Vicuña Project's potential and design options; there is no certainty that the results of the Vicuña Project integrated st udy will be realized. It includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that t he preliminary economic assessment will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. About Vicuña On January 15, 2025, the Company and BHP completed the acquisition of Filo Corp. through a plan of arrangement and concurrently formed a 50/50 independently managed joint arrangement, Vicuña, holding the Josemaria deposit in Argentina and the Filo del Sol deposit in Argentina and Chile. The Company accounts for Vicuña as a joint operation and accordingly records its 50% share of the assets, liabilities, revenue, expenses and cash flows. Los Helados Project (Chile) On April 7, 2026, the Company acquired from JX a 30.9% interest in the Los Helados Project, a large copper -gold deposit, located in Chile's Atacama Region, approximately 17 kilometres to the south of Caserones and approximately 10 kilometres to the north of the Vicuña Project. Los Helados strengthens the Company's Mineral Resource base, increasing measured and indicated copper Mineral Resources by 15% and gold Mineral Resources by 11%, on an attributable basis 5. NGEx Minerals Ltd. holds the remaining 69.1% interest in the Los Helados Project and is the operator. Los Helados provides compelling long -term growth optionality including potential synergies with the Caserones operation. Potential scenarios include throughput expansion, a stand alone operation, or transportation of mineralization from Los Helad os to Caserones, accelerating higher grade material. A total of 96,448 metres of drilling has been completed on the Los Helados Project in 110 holes with a Mineral Resource estimate updated in 2023 which highlighted a significant inventory of contained copper, gold and silver. 1 Vicuña Project integrated study results and highlights, including the Updated Vicuña Mineral Resource, are presented on a 100 % basis. The Company's attributable share is 50%. 2 CuEq based on production after recoveries and metal prices of $4.60/lb Cu, $3,300/oz Au and $40/oz Ag. Recoveries for product ion are disclosed within the Vicuña Technical Report. 3 Initial capital from the start of 2027 and payback period from the start of 2030. 4 See news release dated May 4, 2025 and previous technical report entitled “NI 43 -101 Technical Report on the Vicuña Project, Argentina and Chile”, with an effective date of April 15, 2025 for information with respect to the previous Mineral Resource estimate. Lundin Mining’s attr ibutable interest in the Mineral Resource estimate is 50%. 5 Refer to the Lundin Mining news release entitled “Lundin Mining Increases M&I Copper Mineral Resources by 37% and Updates Min eral Reserves” dated February 18, 2026 and the NGEX Metals Ltd. news release entitled “NGEx Announces Updated Mineral Resource Estimate at Los Helados Incl uding High-Grade Fenix and Alicanto Zones; Indicated Mineral Resources Exceed 2.0 Billion at 0.51% Copper Equivalent” dated December 5, 2023.
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Revenue Analysis The revenue increase during the quarter was primarily due to an increase in realized copper prices, partially offset by lower copper sales volumes. The year-to-date increase in revenue was primarily due to an increase in realized copper and gold prices, partially offset by lower copper and gold sales volumes. Three months ended June 30, Six months ended June 30, Revenue by mine 2026 2025 Change 2026 2025 Change ($ millions) $ % $ % $ $ % $ % $ Caserones (100%) 517.9 43 322.7 37 195.2 1,024.2 43 708.6 39 315.6 Candelaria (100%) 476.2 39 404.6 46 71.6 929.6 39 823.7 46 105.9 Chapada 218.6 18 150.9 17 67.7 417.7 18 265.5 15 152.2 Total 1,212.7 878.2 334.5 2,371.5 1,797.8 573.7 Three months ended June 30, Six months ended June 30, Revenue by metal 2026 2025 Change 2026 2025 Change ($ millions) $ % $ % $ $ % $ % $ Copper 1,063.0 88 739.4 84 323.6 2,034.4 86 1,532.3 85 502.1 Gold 99.8 8 99.5 11 0.3 222.9 9 186.6 10 36.3 Molybdenum 29.9 2 18.9 2 11.0 69.9 3 40.7 2 29.2 Silver 12.0 1 12.9 2 (0.9) 29.4 0.0 27.1 0.0 2.3 Other 8.0 1 7.5 1 0.5 14.9 1 11.1 1 3.8 Total 1,212.7 878.2 334.5 2,371.5 1,797.8 573.7 Three months ended June 30, Six months ended June 30, Realized prices 2026 2025 2026 2025 Copper $6.51 /lb $4.40 /lb $6.09 /lb $4.51 /lb Gold $4,385 /oz $3,419 /oz $4,751 /oz $3,287 /oz Molybdenum $38.33 /lb $22.03 /lb $32.23 /lb $18.19 /lb Capital Expenditures1 Sustaining capital expenditures during both periods were primarily related to open pit waste stripping, underground mine development, tailings storage facility upgrades, and investments in new mining equipment. A portion of capital expenditures a t Candelaria and Caserones was deferred to the second half of 2026, with no change to 2026 capital expenditure guidance. Three months ended June 30, Six months ended June 30, ($ millions) 2026 2025 2026 2025 Caserones 42.2 31.9 97.1 70.1 Candelaria 45.5 50.2 92.8 98.0 Chapada 22.1 27.4 45.7 49.6 Other 0.9 0.1 0.9 0.1 Sustaining capital expenditures 110.7 109.6 236.5 217.8 Caserones 2.4 — 2.4 — Candelaria 1.8 1.5 3.0 21.7 Chapada 4.5 — 5.4 — Vicuña 74.4 32.2 126.6 74.9 Expansionary capital expenditures 83.1 33.7 137.4 96.6 Total capital expenditures 193.8 143.3 373.9 314.4 1 Capital expenditures are reported on a cash basis, as presented in the consolidated statement of cash flows and excluding cap italized interest. Sustaining capital expenditures is a supplementary financial measure and expansionary capital expenditures is a non -GAAP measure – please refer to the Company's discussion of non-GAAP & other performance measures in its MD&A for the three and six months ended June 30, 2026 and the Reconciliation of Non-GAAP Measures section at the end of this news release.
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2026 Outlook Subsequent to quarter -end, the Atacama region of Chile experienced severe winter storms, resulting in regional flooding and significant snowfall. Operations at Caserones were temporarily suspended due to heavy snowfall, which restricted site access and disrupted power supply for 13 days. Power has been restored at site and the restart of operations at Caserones is currently underway. As a result, the Company is now anticipating annual production for Caserones to be at the lower half of the annual production guidance range of 130,000 to 140,000 tonnes. Mining operations at Candelaria were briefly impacted by heavy rainfall; however, the mill continued to operate using existing ore stockpiles with no impact to annual production guidance. Notwithstanding the impact of the severe winter storm, the Company anticipates 2026 consolidated copper and gold production to be within the annual consolidated production guidance range. In light of increased realized prices on by -product gold sales, cash cost guidance at Chapada has been reduced (see news release dated June 17, 2026). Cash cost guidance for the other assets and consolidated cash cost guidance remains unchanged from that announced on January 21, 2026. Consistent with the June 17 news release, expansionary capital expenditure guidance has been increased by $35.0 million to fund the first stages of the ball mill construction as part of the Saúva project in Brazil. The Company continues to assess the impact of the current macroeconomic environment and its subsequent effect on key input costs including diesel, sulphuric acid, and ocean freight. While these input costs have increased, the increases are not expected to have a material impact on the overall cost base of the Company at this time. We continue to actively monitor the situation for changes that could impact the Company's financial results. See below for current 2026 Guidance: 2026 Production and Consolidated Cash Cost1 Guidance Guidance2 Copper (kt) - contained metal 310 – 335 Gold (koz) - contained metal 134 – 149 Consolidated cash cost ($/lb) 1.90 – 2.10 1 Consolidated Cash cost is a non -GAAP measure - see the Company's discussion of non -GAAP & other performance measures in its MD&A for the three and six months ended June 30, 2026 and the Reconciliation of Non-GAAP Measures section at the end of this news release. 2 Guidance as outlined in the news release "Lundin Mining Announces 2025 Production Results and Provides 2026 Guidance" dated J anuary 21, 2026. 2026 Production and Cash Cost1 Guidance by Operation Guidance2 Revised Guidance3 Copper (kt) Caserones (100%) 130 – 140 130 – 140 (contained metal) Candelaria (100%) 135 – 145 135 – 145 Chapada 45 – 50 45 – 50 Total copper 310 – 335 310 – 335 Gold (koz) Candelaria (100%) 77 – 87 77 – 87 (contained metal) Chapada 57 – 62 57 – 62 Total gold 134 – 149 134 – 149 Cash Cost ($/lb) Caserones (100%) 2.05 – 2.25 2.05 – 2.25 Candelaria (100%) 2.05 – 2.25 2.05 – 2.25 Chapada 1.00 – 1.20 0.75 – 0.95 Consolidated cash cost1 1.90 – 2.10 1.90 – 2.10 1 Cash cost and Consolidated cash cost per pound are non -GAAP measure - see the Company's discussion of non -GAAP & other performance measures in its MD&A for the three and six months ended June 30, 2026 and the Reconciliation of Non-GAAP Measures section at the end of this news release. 2 Guidance as outlined in the news release "Lundin Mining Announces 2025 Production Results and Provides 2026 Guidance" dated J anuary 21, 2026. 3 Revised Guidance as outlined in the news release "Lundin Mining Capital Markets Day Highlights Strategic Vision for Leading G rowth and Shareholder Returns" dated June 17, 2026. 2026 Capital Expenditure Guidance1 Annual expansionary capital guidance has been updated to reflect the sanctioning of an additional ball mill to be constructed at Chapada to achieve higher recoveries as part of the Saúva project (see news release dated June 17, 2026).
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($ millions) Guidance2 Revisions Revised Guidance3 Caserones (100% basis) 235 235 Candelaria (100% basis) 215 — 215 Chapada 100 — 100 Total Sustaining 550 — 550 Expansionary Capital 50 35 85 Vicuña (50% basis) 395 — 395 Total Capital Expenditures 995 35 1,030 1 Sustaining capital expenditure is a supplementary financial measure, and expansionary capital expenditure is a non -GAAP measure - see the Company's discussion of non -GAAP & other performance measures in its MD&A for the three and six months ended June 30, 2026 and the Reconciliation of Non -GAAP Measures section at the end of this news release. 2 Guidance as outlined in the news release "Lundin Mining Announces 2025 Production Results and Provides 2026 Guidance" dated J anuary 21, 2026. 3 Revised Guidance as outlined in the news release "Lundin Mining Capital Markets Day Highlights Strategic Vision for Leading G rowth and Shareholder Returns" dated June 17, 2026. 2026 Exploration Investment Guidance Total exploration expenditure guidance for 2026 is $53 million. 2026 Revised Guidance Key Assumptions Revised cash cost guidance is based on various assumptions and estimates, including but not limited to: production volumes, commodity prices (Au: $4,000 /oz, Ag: $70.00 /oz), foreign exchange rates (USD/CLP: 900, USD/BRL: 5.00) and operating costs. Candelaria is subject to a streaming agreement which currently streams 68% of the total gold and silver production. Candelari a's cash cost is calculated based on receipt of approximately $437 /oz gold and $4.36 /oz silver on streamed ounces. Chapada's cash cost is calculated on a by -product basis and does not include the effects of its copper stream agreements which are reflected in copper revenue. Capital expenditure guidance is based on various assumptions and estimates, including, but not limited to foreign currency exchange rates (USD/CLP: 900, USD/BRL: 5.00).
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About Lundin Mining Lundin Mining is a Canadian mining company headquartered in Vancouver, Canada with three operating mines in Brazil and Chile. We produce metals that underpin global development, supporting infrastructure, electrification, technological innovati on, and economic resilience. Our strategic vision is to become a top ten global copper producer. To get there, we are executing a clear growth strategy, which includes advancing one of the world’s largest copper, gold, and silver projects in the Vicuña Di strict on the border of Argentina and Chile, where we hold a 50% interest. We also hold a 31% interest in the Los Helados project, located adjacent to our operating Caserones mine, providing longer term growth optionality. Lundin Mining has a proven track record of value creation through resource growth, operational excellence, and responsible development. The Company’s shares trade on the Toronto Stock Exchange (LUN) and Nasdaq Stockholm (LUMI). Learn more at www.lundinmining.com. The information in this release is subject to the disclosure requirements of Lundin Mining under the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below on August 5, 2026 at 4:00 Vancouver Time. For further information, please contact: Stephen Williams, Vice President, Investor Relations +1 604 806 3074 Robert Eriksson, Investor Relations Sweden: +46 8 440 54 40 Technical Information The Vicuña Technical Report summarizing the results of the integrated study, including the Updated Vicu ña Mineral Resource was prepared in accordance with National Instrument 43 -101 - Standards for Disclosure for Mineral Projects (" NI 43-101") and may be found under the Company's profile on SEDAR+ at www.sedarplus.ca in accordance with applicable securities rules. The Qualified Persons (as defined by NI 43 -101) named below have reviewed and verified the scientific and technical information in respect of the Vicuña Technical Report and approve the written disclosure of such information. Each of the Qualified Persons named below, other than Dustin Smiley, is independent of Lundin Mining. The Qualified Persons are: Mr. Luke Evans, P .Eng., SLR Consulting (Canada) Ltd. Mr. Paul Daigle, P .Geo., AGP Mining Consultants Inc. Mr. Sean Horan, P .Geo., Resource Modelling Solutions Ltd. Mr. Jeffery Austin, P .Eng., International Metallurgical and Environmental Inc. Mr. Rod Clary, P .E., Design, Fluor Enterprises Inc. Mr. Kirk Hanson, P .E., KH Mining LLC Mr. Dustin Smiley, P .Eng., Vicuña Corp. Mr. Daniel Ruane, P .Eng., Knight Piesold Ltd. For further information related to the Vicuña Technical Report, see the Company’s news release dated March 30, 2026. The reader is advised that the Vicuña integrated study summarized herein is only a conceptual study of the potential viabilit y of the Vicuña Project, and the economic and technical viability of the Vicuña Project and its estimated Mineral Resources has no t been demonstrated. The Vicuña integrated study is preliminary in nature and provides only an initial, high -level review of the Vicuña Project's potential and design options; there is no certainty that the results of the Vicuña integrated study will be realized. The Vicuña integrated study conceptual mine plan and economic model include numerous assumptions and Mineral Resource estimates including Inferred Mineral Resource estimates. Inferred Mineral Resource estimates are considered to be too speculative geologically to have any economic considerations applied to such estimates. There is no guarantee that Inferred Mineral Resource estimates will be converted to Indicated or Measured Mineral Resources, or that Indicated or Measured Mineral Resources can be c onverted to Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability, and as such there is no guarantee the Vicuña Project economics described herein will be achieved. Mineral Resource estimates may be materially affected by environmental, permitting, legal, title, taxation, socio - political, marketing, or other relevant risks, uncertainties and other factors, as more particularly described herein and in the Vicuña Technical Report. The scientific and technical information in this news release other than that pertaining to the Vicuña Technical Report has been reviewed and approved in accordance with NI 43 -101 by Eduardo Cortés, Registered Member (Comisión Calificadora de Competencias en Recursos y Reservas Mineras (Chilean Mining Commission)), Vice President, Mining & Resources at Lundin Mining, a "Qualified Person" under NI 43-101. Mr. Cortés has verified the scientific and technical information pertaining to the Los Helados Project by reviewing public disclosure of NGEx Minerals Ltd. pertaining to the project; however, he has not had access to any underlying data or other information beyond what is publicly disclosed by NGEx Minerals Ltd. Mr. Cortés has verified all scientific and technical information disclosed in this document other than with respect to the Vicuña Technical Report and no limitations were imposed on his verification process, other than as described for the Los Helados Project.
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Abbreviations AISC All-in sustaining cost g/t Grams per tonne ARS Argentine pesos IRR Internal rate of return BRL Brazilian reais LOM Life of mine C$ Canadian dollars NPV Net present value CLP Chilean pesos lb Pound Cu Copper oz, koz, Moz Troy ounces, thousand ounces, million ounces CuEq Copper equivalent t, kt, Mt Tonnes, thousand tonnes, million tonnes EPS Earnings per share $ or USD US dollars Reconciliation of Non-GAAP Measures The Company uses certain performance measures in its analysis. These performance measures have no standardized meaning within generally accepted accounting principles under International Financial Reporting Standards and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. For additional details please refer to t he Company’s discussion of non-GAAP and other performance measures in its Management’s Discussion and Analysis for the three and six months ended June 30, 2026 which is available on SEDAR+ at www.sedarplus.ca. Cash Cost per Pound and AISC per Pound Cash Cost per Pound, Consolidated Cash Cost per Pound, and AISC per Pound can be reconciled to Production costs on the Company's condensed interim consolidated Statements of Earnings as follows: Three months ended June 30, 2026 Caserones Candelaria Chapada Consolidated Total1 ($ millions, unless otherwise noted) (Cu) (Cu) (Cu) (Cu) Sales volumes (payable metal): Tonnes 33,479 29,512 11,083 74,074 Pounds (000s) 73,808 65,063 24,434 163,305 Production costs 212.4 216.2 84.1 512.7 513.0 Less: Royalties and other (15.2) (6.1) (6.9) (28.2) (28.5) Add: Treatment and refining charges 0.5 (0.9) (0.2) (0.6) (0.6) Gross cost 197.7 209.2 77.0 483.9 483.9 Deduct: By-product2 (39.7) (38.3) (61.9) (139.9) (139.9) Cash cost 158.0 170.9 15.1 344.0 344.0 Gross cost per pound ($/lb) 2.68 3.22 3.15 2.96 By-product per pound ($/lb) (0.54) (0.59) (2.53) (0.85) Cash cost per pound ($/lb) 2.14 2.63 0.62 2.11 Cash cost 158.0 170.9 15.1 Add: Sustaining capital expenditure 42.2 45.5 22.1 Royalties 14.7 4.8 5.5 Reclamation and other closure accretion and depreciation 0.2 1.1 2.0 Leases and other 13.9 3.5 1.5 All-in sustaining cost 229.0 225.8 46.2 AISC per pound ($/lb) 3.10 3.48 1.89 1 Includes immaterial amounts related to other segments. 2 The impact of by-product is presented net of the associated treatment and refining charges.
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Three months ended June 30, 2025 Continuing operations Caserones Candelaria Chapada Consolidated Total1 ($ millions, unless otherwise noted) (Cu) (Cu) (Cu) (Cu) Sales volumes (payable metal): Tonnes 30,076 36,603 10,284 76,963 Pounds (000s) 66,307 80,696 22,672 169,675 Production costs 204.7 186.1 75.0 465.8 466.3 Less: Royalties and other (9.8) (3.9) (6.3) (20.0) (20.5) Add: Treatment and refining charges (0.5) 6.6 0.2 6.3 6.3 Gross cost 194.4 188.8 68.9 452.1 452.1 Deduct: By-product2 (31.8) (42.8) (51.8) (126.4) (126.4) Cash cost 162.6 146.0 17.1 325.7 325.7 Gross cost per pound ($/lb) 2.93 2.34 3.04 2.66 By-product per pound ($/lb) (0.48) (0.53) (2.29) (0.74) Cash cost per pound ($/lb) 2.45 1.81 0.75 1.92 Cash cost 162.6 146.0 17.1 Add: Sustaining capital expenditure 31.9 50.2 27.4 Royalties 8.5 4.0 3.6 Reclamation and other closure accretion and depreciation 1.3 2.0 1.7 Leases and other 17.1 1.6 1.0 All-in sustaining cost 221.4 203.8 50.8 AISC per pound ($/lb) 3.34 2.53 2.24 1 Includes immaterial amounts related to other segments. 2 The impact of by-product is presented net of the associated treatment and refining charges. Six months ended June 30, 2026 Continuing operations Caserones Candelaria Chapada Consolidated Total1 ($ millions, unless otherwise noted) (Cu) (Cu) (Cu) (Cu) Sales volumes (payable metal): Tonnes 69,940 60,335 21,454 151,729 Pounds (000s) 154,191 133,016 47,298 334,505 Production costs 411.7 418.2 169.4 999.3 1,000.0 Less: Royalties and other (30.4) (12.3) (13.6) (56.3) (57.0) Add: Treatment and refining charges 0.3 0.7 0.3 1.3 1.3 Gross cost 381.6 406.6 156.1 944.3 944.3 Deduct: By-product2 (96.5) (89.6) (130.7) (316.8) (316.8) Cash cost 285.1 317.0 25.4 627.5 627.6 Gross cost per pound ($/lb) 2.47 3.06 3.30 2.82 By-product per pound ($/lb) (0.62) (0.68) (2.76) (0.94) Cash cost per pound ($/lb) 1.85 2.38 0.54 1.88 Cash cost 285.1 317.0 25.4 Add: Sustaining capital expenditure 97.1 92.8 45.7 Royalties 29.8 9.6 11.1 Reclamation and other closure accretion and depreciation 0.6 2.7 4.1 Leases and other 28.2 6.3 2.7 All-in sustaining cost 440.8 428.4 89.0 AISC per pound ($/lb) 2.86 3.22 1.88 1 Includes immaterial amounts related to other segments. 2 By-product credits are presented net of the associated treatment and refining charges.
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Six months ended June 30, 2025 Continuing operations Caserones Candelaria Chapada Consolidated Total1 ($ millions, unless otherwise noted) (Cu) (Cu) (Cu) (Cu) Sales volumes (payable metal): Tonnes 66,257 71,577 18,630 156,464 Pounds (000s) 146,072 157,800 41,072 344,944 Production costs 448.7 358.2 138.5 945.4 946.1 Less: Royalties and other (23.4) (5.0) (11.3) (39.7) (40.4) Add: Treatment and refining charges 6.7 13.8 3.1 23.6 23.6 Gross cost 432.0 367.0 130.3 929.3 929.3 Deduct: By-product2 (68.4) (86.3) (86.1) (240.8) (240.8) Cash cost 363.6 280.7 44.2 688.5 688.5 Gross cost per pound ($/lb) 2.96 2.33 3.17 2.69 By-product credit per pound ($/lb) (0.47) (0.55) (2.09) (0.69) Cash cost per pound ($/lb) 2.49 1.78 1.08 2.00 Cash cost 363.6 280.7 44.2 Add: Sustaining capital expenditure 70.1 98.0 49.6 Royalties 18.4 7.5 5.6 Reclamation and other closure accretion and depreciation 2.6 4.1 3.4 Leases and other 34.6 3.1 2.1 All-in sustaining cost 489.3 393.4 104.9 AISC per pound ($/lb) 3.35 2.49 2.55 1 Includes immaterial amounts related to other segments. 2 By-product credits are presented net of the associated treatment and refining charges.
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Adjusted EBITDA Adjusted EBITDA can be reconciled to Net earnings (loss) from continuing operations on the Company's condensed interim consolidated Statements of Earnings as follows: Three months ended June 30, Six months ended June 30, ($ millions continuing operations) 2026 2025 2026 2025 Net earnings from continuing operations 370.7 149.2 757.7 330.4 Add (deduct): Depreciation, depletion and amortization 134.5 153.4 268.8 287.0 Finance costs, net 16.4 19.3 28.0 61.9 Income tax expense 159.0 69.0 246.2 119.9 EBITDA 680.6 390.9 1,300.7 799.2 Unrealized foreign exchange (gain) loss 1.5 (1.4) (1.6) 7.9 Unrealized gains on derivative contracts (29.2) (10.7) (19.3) (46.7) Revaluation (gain) loss on marketable securities 2.2 (2.1) (1.6) (1.6) Ojos del Salado sinkhole expenses 2.1 0.1 8.4 1.2 Share of net earnings of associate — — (2.9) — Other 0.8 (0.3) 1.0 (1.3) Total adjustments - EBITDA (22.6) (14.4) (16.0) (40.5) Adjusted EBITDA 658.0 376.5 1,284.7 758.7 Adjusted Earnings and Adjusted EPS Adjusted earnings and Adjusted EPS can be reconciled to Net earnings (loss) from continuing operations attributable to Lundin Mining Shareholders on the Company's condensed interim consolidated Statements of Earnings as follows: Three months ended June 30, Six months ended June 30, ($ millions continuing operations, except share and per share amounts) 2026 2025 2026 2025 Net earnings from continuing operations attributable to Lundin Mining shareholders 278.4 115.7 558.9 253.6 Add (deduct): Total adjustments - EBITDA (22.6) (14.4) (16.0) (40.5) Tax effect on adjustments (1.1) 0.2 (2.6) (4.5) Deferred tax arising from foreign exchange translation 2.4 (13.5) (19.1) (34.7) Deferred tax arising from partial disposal and contribution to Vicuña — — — 9.0 Non-controlling interest on adjustments (0.4) (0.4) 0.1 (1.5) Other — 0.2 — — Total adjustments (21.7) (27.9) (37.6) (72.2) Adjusted earnings 256.7 87.8 521.3 181.5 Basic weighted average number of shares outstanding 855,344,018 856,788,215 856,281,250 854,532,557 Basic EPS attributable to shareholders 0.33 0.14 0.65 0.30 Total adjustments per share (0.03) (0.04) (0.04) (0.09) Adjusted EPS 0.30 0.10 0.61 0.21
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Sustaining and Expansionary Capital Expenditures Capital Expenditures can be reconciled to Investment in mineral properties, plant and equipment, a component of Cash used in investing activities, on the Company's condensed interim consolidated Statements of Cash Flows as follows: Three months ended June 30, Six months ended June 30, ($ millions) 2026 2025 2026 2025 Investment in mineral properties, plant and equipment 196.7 151.2 379.3 322.8 Less: Capitalized interest (2.9) (7.9) (5.4) (8.4) Total capital expenditures 193.8 143.3 373.9 314.4 Sustaining capital expenditures 110.7 109.6 236.5 217.8 Expansionary capital expenditures 83.1 33.7 137.4 96.6 Free Cash Flow from Operations and Adjusted Free Cash Flow from Operations Free Cash Flow from Operations and Adjusted Free Cash Flow from Operations can be reconciled to Cash provided by operating activities on the Company's condensed interim consolidated Statements of Cash Flows as follows: Three months ended June 30, Six months ended June 30, ($ millions continuing operations) 2026 2025 2026 2025 Cash provided by operating activities from continuing operations 458.8 292.7 952.5 420.3 Sustaining capital expenditures (110.7) (109.6) (236.5) (217.8) General exploration and business development 12.1 12.1 23.9 22.9 Free cash flow from operations 360.2 195.2 739.9 225.4 Changes in non-cash working capital items 60.0 (113.9) 74.8 93.7 Changes in net income taxes payable (24.3) 82.3 (82.7) 76.6 Adjusted free cash flow from operations 395.9 163.6 732.0 395.7 Free Cash Flow and Adjusted Free Cash Flow Free Cash Flow and Adjusted Free Cash Flow can be reconciled to Cash provided by operating activities from continuing operations on the Company's condensed interim consolidated Statements of Cash Flows as follows: Three months ended June 30, Six months ended June 30, ($ millions continuing operations) 2026 2025 2026 2025 Cash provided by operating activities from continuing operations 458.8 292.7 952.5 420.3 Sustaining capital expenditures (110.7) (109.6) (236.5) (217.8) Expansionary capital expenditures (83.1) (137.4) 74.8 (96.6) Free cash flow 265.0 149.4 578.6 105.9 Changes in non-cash working capital items 60.0 (113.9) 74.8 93.7 Changes in net income taxes payable (24.3) 82.3 (82.7) 76.6 Adjusted free cash flow 300.7 117.8 570.7 276.2 Adjusted Operating Cash Flow Adjusted Operating Cash Flow can be reconciled to Cash provided by operating activities on the Company's condensed interim consolidated Statements of Cash Flows as follows: Three months ended June 30, Six months ended June 30, ($ millions continuing operations) 2026 2025 2026 2025 Cash provided by operating activities from continuing operations 458.8 292.7 952.5 420.3 Changes in non-cash working capital items 60.0 (113.9) 74.8 93.7 Changes in net income taxes payable (24.3) 82.3 (82.7) 76.6 Adjusted operating cash flow 494.5 261.1 944.6 590.6
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Net Cash Net cash can be reconciled to Debt, Current portion of debt and Cash and cash equivalents on the Company's condensed interim consolidated Balance Sheets as follows: ($ millions continuing operations) June 30, 2026 December 31, 2025 Debt — (56.3) Current portion of debt (186.8) (180.8) Less deferred financing fees (netted in above)1 — (3.7) (186.8) (240.8) Cash and cash equivalents 265.8 296.2 Add cash and cash equivalents related to assets classified as held for sale — 22.0 Net cash 79.0 77.4 1 Unamortized deferred financing fees of $12.9 million as at June 30, 2026 associated with the revolving credit facility have been reclassified from Debt to other non - current assets on the Company's condensed interim consolidated balance sheets.
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Cautionary Statement on Forward-Looking Information Certain of the statements made and information contained herein are “forward -looking information” within the meaning of applicable Canadian securities laws. All statements other than statements of historical facts included in this document const itute forward-looking information, including but not limited to statements regarding the Company’s plans, prospects and business strategies and strategic vision, targets and aspirations and their achievement and timing; the Company’s guidance on the timi ng and amount of future production and its expectations regarding the results of operations; the Company’s financial guidance and expected financial performance, including expected earnings, revenue, cash flow, EBITDA, costs and expenditures and other financial metrics; the results of the Vicuña integrated study, including but not limited to the Vicuña Mineral Resource estimate and the parameters and assumptions used to estimate the Mineral Resources, future expansion of the Mineral Resource estimates and the Vicuña Pro ject, the life of mine, the life of mine plan, commencement of production, mining methods, estimated workforce, supply, materials and equipment requirements, production estimates and production profile, processing estimates, mining rates, metal grades and production and recovery rates, process flowsheet, costs and expenditures (including capital, sustaining and operating costs, cash costs and AISC) and the timing thereof, economic metrics and sensitivities, estimated economic results (including project econ omics, economic metrics, financial performance, revenues, cash flows, earnings, NPV and IRR) and the parameters and assumptions used to estimate the economic results, geological and mineralization interpretations, exploration and development activities, timelines and similar statements relating to the economic viability of the Vicuña Project, tailings management, Vicuña Project infrastructure requirements (including tailings storage facilities, water , power, copper concentrate roasting facilities, pipelines , transportation systems and desalination plant and pipeline), Vicuña Project development and construction plans (including staged development, project stages, sequencing, timing, costs and the effects and benefits), Vicuña Project permitting (including timelines and expected receipts of approvals, consents and permit s, and the effects thereof), sanctioning of the Vicuña Project and the timing thereof, community and social engagement and corporate social responsibility matters, economic, fiscal and other be nefits of the Vicuña Project to local communities, host - countries, shareholders and other stakeholders, and the updated Vicuña Technical Report and the contents thereof; project studies (including technical, environmental and social studies); the RIGI regime and benefits thereof; the size and scale of the Vicuña Project, and the potential for the Vicuña Project to be a world -class project ranking among the top five copper, gold and silver mines globally; the development and future operation of the Vicuña Pr oject; the Provincial Agreement and anticipated approval and benefits; the Company’s revolving credit facility and the anticipated increases in capacity of the revolving cre dit facility upon satisfaction of conditions and project milestones; the use of the credit facility; Vicuña Project funding and t he Company’s expectations regarding its funding capacity and strategy and its work with BHP; the production profile of Caserones and economics resulting from the Company's acquisition of additional interest in SCM Minera Lumina Copper Chile and the Los Helados project (including cash costs), the Mineral Resource estimate for Los Helados and the parameters and assumptions used to estimate the Mineral Resources; the potential synergies between Caserones and Los Helados ; the Company’s growth and optimization initiatives and opportunities, and expansionary projects, and the potential costs, outcomes, results, impact s and timing thereof; permitting requirements and timelines; the Company’s ability to comply with contractual and permitting or oth er regulatory requirements; timing and possible outcomes of pending litigation and disputes, including tax disputes; the timing and expectations of future studies; the results of any Preliminary Economic Assessment (including the Vic uña integrated study set out in the Vicuña Technical Report), Pre -Feasibility Study, Feasibility Study, or Mineral Resource and Mineral Reserve estimations, life of mine estimates, and mine and mine closure plans; potential for future Mineral Resource expansion; remediation and reclamation obligations, including their anticipated costs and timing; anticipated market prices of metals, currency exchange rates and interest rates; the Company’s liquidity, contractual obligations, commitments and contingencies, and the Company’s capital resources and adequacy thereof; the Company’s tax obligations and expected tax rates; anticipated exploration and development activities at the Company’s projects and assets, including potential outcomes, results, impacts a nd timing thereof; the Company’s integration of acquisitions and expansions and any anticipated benefits thereof, including the anticipated project development and associated costs and timing, and other plans and expectations with respect to the Vicuña Project and the 50/50 joint arrangement with BHP; the realization of synergies and economies of scale in the Vicuña district; the potential for resource expansion; the operation of Vicuña with BHP; expected processing capacities and infrastructure development; the timing and expectations for future regulatory applications, studies and technical reports with respect to th e Company’s operations and projects, including the Vicuña Project and the Saúva Project; the anticipated economic and fiscal benefits to Argentina and Chile, including expected tax, royalty, employment and infrastructure impacts; the terms of the contingent payments in respect of the completion of the sale of the Company’s European and US assets and expectations related thereto; the Company’s shareholder distribution policy, including with respect to share buybacks and the payment and amount of dividends and the timing thereof; the step down of the Company’s streaming agreement at Can delaria and the resulting impacts; the Company's goals to become a top -ten global copper producer, and to reach annual production of over 500,000 tonnes of copper and 550,000 ounces of gold; the impacts from the severe winter storm and inclement weather affecting northern and central Chile, including impacts on the Company's operations and supporting infrastructure and their anticipated severity and duration; the expected timing for the Company to resume operations at Caserones ; the Company's production and financial guidance and results and potential impacts thereto from the inclement weather events; and expectations for other economic, business, and/or competitive factors. Words such as “believe”, “expect”, “anticipate”, “contemplate”, “target”, “pl an”, “goal”, “aim”, “intend”, “continue”, “budget”, “estimate”, “may”, “will”, “can”, “could”, “should”, “schedule” and similar ex pressions identify forward-looking information. Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation, the expectations and beliefs of management, including with respect to the Company’s business, operations, strategies and growth and expansion plans; that no significant event will occur outside of the Company’s normal course of business and operations (other than as set out herein); the seamless integration of Los Helados into the Company's operations; assumed and future prices of copper, gold, silver and other metals; anticipated costs; commodity prices; currency exchange rates and interest ra tes; ability to achieve goals; the impacts of the winter storm in Chile and subsequent winter storms and inclement weather events; that the Company can access financing, appropriate equipment and sufficient labour (including for example (and without limitation) those required for necessary infrastructure repairs, and those necessary to restart operations at Caserones); the
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prompt and effective integration of acquisitions and the realization of synergies and economies of scale in connection therew ith; that the political, economic, permitting and legal environment in which the Company operates will continue to support the development and operation of mining projects; timing and receipt of governmental, regulatory and third party approvals, consents, licenses and permits and their renewals; the geopolitical, economic, permitting and legal climate that the Company operates in; le gal and regulatory requirements; positive relations with local groups; sanctioning, construction, development, commissioning and ramp-up timelines; access to sufficient infrastructure (including water and power), equipment and labour; the accuracy of Mineral Resource and Mineral Reserve estimates and related information, analyses and interpretations; the accuracy of cost and expenditure estimates (including capital, sustaining and operating costs, cash costs and AISC), economic metrics and sensitivities, and of economic results (including project economics, economic metrics, financial performance, revenues, cash flows, earnings, NPV and IRR) and the parameters and assumptions used to estimate the foregoing; assumptions underlying life -of-mine plans; geotechnical and hydrogeological conditions; assumptions underlying economic analyses (including economic analysis of the Vicuña Technical Report); the Company’s ability to comply with contractual and permitting or other regulatory requirements; operating conditions, capital and operating cost estimates; production and processing estimates; the results, costs and timing of future exploration activities; economic viability of the Company’s operations and development projects; the Company’s abi lity to satisfy the terms and conditions of its debt obligations; the adequacy of the Company’s financial resources, and its ability to raise any necessary additional capital on reasonable terms; favourable equity and debt capital markets; stability in financial capital markets; the ability of the Company to access committed amounts of t he upsized credit facility, including on the anticipated schedule and upon the satisfaction of certain conditions such as sancti oning Stage 1 of the Vicuña Project; the successful sanctioning, permitting and development of the Company’s Projects (including th e Vicuña Project) and commencement of production; successful completion of the Company’s projects and initiatives (including the Vicuña Project) within budget and expected timelines; and such other assumptions as set out herein, in the Vicuña Technical Report, and in other applicable public disclosure documents of the Company, as well as those related to the factors set forth below. While these factors and assumptions are considered reasonable by Lundin Mining as at the date of this document in ligh t of management’s experience and perception of current conditions and expected developments, such information is inherently subject to significant business, social, economic, political, regulatory, competitive and other risks, uncertainties and contingencies that could cause actual actions, events, conditions, results, performance or achievements to be materially different from those projected in the forward -looking information. The Company cautions that the foregoing list of assumptions is not exhaustive. Known and unknown factors could cause actual results to differ materially from those projected in the forward - looking information and undue reliance should not be placed on such information. Such factors include, but are not limited to: dependence on international market prices and demand for the metals that the Company produces; political, economic, and regulatory uncertainty in operating jurisdictions, including but not limited to those related to permitting and approvals, nationalization or expropriation without fair compensation, environmental and tailings management, labour, trade relations, and transportation; uncertainty with respect to the fiscal, geopolitical, economic, permitting and legal climate that the Company operates in; risks related to the RIGI regime, including if the RIGI regime does not function as expected and risks arising f rom such circumstances; risks relating to mine closure and reclamation obligations; health and safety hazards; inherent risks of mining, not all of which related risk events are insurable; geotechnical incidents; risks relating to the dev elopment, permitting, construction, commissioning and ramp-up of the Company’s projects and operations (including the Vicuña Project); risks relating to tailings and waste rock and leach management facilities; risks relating to the Company’s indebtedness; risks relating to p roject financing; the Company’s ability to access capital on acceptable terms if at all; risks related to the credit facility amendm ent commitments, including the Company’s ability to satisfy conditions to access additional tranches; cha llenges and conflicts that may arise in partnerships and joint operations, including risks relating to the Company’s partnership with BHP and risks associated with joint venture governance, including risks associated with deadlock, differing strategic priorities, the abili ty to reach timely decisions on material matters affecting the Vicuña Project, and the ability to fund cash calls when due; risks t hat revenue may be significantly impacted in the event of any production stoppages or reputational damage in Chile, Brazil or Argentina; risks relating to development projects, including (without limitation) capital cost escalation, labour shortages, contractor performance, equipment delivery delays and supply chain disruptions; risks related to water availability, water ri ghts, desalination infrastructure, groundwater permitting and changing water -use regulations; risks relating to community relations, indigenous consultation and participation processes, social license to operate and the ability to obtain and maintain communi ty support; the impact of global financial conditions, market volatility and inflation; pricing and availability of k ey supplies, equipment, labour and services; business interruptions caused by critical infrastructure failures or damage; challenges of effective water management; exposure to greater foreign exchange and capital controls, as well as political, social and econo mic risks as a result of the Company’s operation in emerging markets; risks relating to stakeholder opposition to continued opera tion, further development, or new development of the Company’s projects and mines; reputational risks related to negative publicity with respect to the Company, its joint venture partner or the mining industry in general; any breach or failure of information systems; risks relating to reliance on estimates of future production; risks relating to litigation and administrative procee dings which the Company may be subject to from time to time (including tax disputes); risks relating to competition in the industry ; failure to comply with existing or new laws or changes in laws; challenges or defects in title or termination of mining or exploitation concessions ; risks relating to taxation changes; receipt of and ability to maintain all permits that are required for operation; the Company’s Mineral Reserves and Mineral Resources which are estimates only; uncertainties relating to Inferred Mineral Resources being converted into Measured or Indicated Mineral Resources as well as uncertainties regarding the conversion of Mineral Resources into Mineral Reserves and the ability to realize estimated Mineral Resources or Mineral Reserves; risks that metallurgical testing , recoveries or process assumptions may differ from expectations; risks associated with climate change and inclement weather events; physical climate risks, including drought, flooding, extreme weather and water scarcity, and transition risks associated with evolving climate -related laws, regulations, emissions standards and stakeholder expectations; risks relating to acquisitions or business arrangements; the exclusive jurisdiction of foreign courts; changes in the relationship with its employees and contr actors; risks relating to dividend payments to shareholders in the future; compliance with environmental, health and safety laws and regulations, including changes to such laws or regulations; interests of signi ficant shareholders of the Company; potential for the allegation of fraud and corruption involving the Company, its respective customers, suppliers or employees, or the allegation of improper or discriminatory employment practices, or human rights
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violations; asset values being subject to impairment charges; potential for conflicts of interest and public association with other Lundin Group companies or entities; activist shareholders and proxy solicitation firms; the outbreak of infectious diseases o r viruses; the Company’s common shares being subject to dilution; ability to attract and retain highly skilled employees; relia nce on key personnel and reporting and oversight systems; risks relating to the Company’s internal controls; counterparty and customer concentration risk; minor elements contained in concentrate products; risks associated with the use of derivatives; exchange rate fluctuations; the terms of contingent payments in respect of the completion of the sale of the Company’s European assets and expectations related thereto; risks associated with military conflicts, including those associated with t he conflict in the Middle East, which has contributed to heightened volatility in global energy markets, commodity supply chains and maritime shipping uncertainty; risks around the severity and extent of the impacts on the Company's operations and supporting infrastructure as a result of the winter storm in Chile, and uncertainty around the timing of repairs and for the Company to resume operations at Caserones; risks associated with additional winter storms and inclement weather events; and other risks and uncertainties, including but not limited to those described in the "Risks and Uncertainties” section of the Company's MD& A for the three and six months ended June 30, 2026, the "Risks and Uncertainties" section of the Company's MD&A for the year ended December 31, 2025 and the “Risks and Uncertainties” section of the Company’s most recent Annual Information Form, which are available on SEDAR+ at www.sedarplus.ca under the Company’s profile. All of the forward -looking information in this document is qualified by these cautionary statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward -looking information, there may be other factors that cause results not to be as anticipated, estimated, forecasted or intended and readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Should on e or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward -looking information. Accordingly, there can be no assurance that forward -looking information will prove to be accurate and forward -looking information is not a guarantee of future performance. Readers are advised not to place undue reliance on forward -looking information. The forward -looking information contained herein speaks only as of the date of this document. The Company disclaims any intention or obligation to update or revise forward ‐looking information or to explain any material difference between such and subsequent actual events, except as required by applicable law.