TORONTO, April 27, 2022 /CNW/ - (TSX: LUN) (Nasdaq Stockholm: LUMI) Lundin Mining Corporation (“Lundin Mining” or the “Company”) today reported earnings attributable to Lundin Mining shareholders of $345.1 million ($0.47 per share) in its first quarter 2022. Adjusted earnings1 were $295.6 million ($0.40 per share) and adjusted EBITDA1 were $587.8 million for the quarter. View PDF.
Peter Rockandel, President and CEO commented, “We delivered strong financial results in the first quarter, highlighted by adjusted EBITDA of $588M, generation of $473M of adjusted operating cash flow1, and record adjusted EPS1 of $0.40.
Overall, our operations performed well, particularly as we adapted to new challenges of the fast-spreading COVID Omicron variant, which had the greatest impact on absences since the onset of the pandemic. Candelaria, Eagle, Zinkgruvan and Neves-Corvo operations, including ramp up of the Zinc Expansion Project, are all on plan for the year. Chapada has had a slow start as abnormally high rainfall and COVID-related absences impacted our mining activities, though opportunities to catch up on waste stripping and production plans are being reviewed.
On the growth front, exploration at Chapada’s Saúva discovery continues to deliver impressive results expanding the mineralized footprint, we are working to include the Upper Keel zone at Eagle into next year’s update of the life-of-mine plan with the aim of first ore in 2024, and we are excited to soon be closing our acquisition of Josemaria Resources, meaningfully increasing our copper and gold growth profile.”
Summary Financial Results
Three months ended March 31,
US$ Millions (except per share amounts)
2022. 2021
Revenue 991.1 681.5
Gross profit 478.8 252.5
Attributable net earnings 2. 345.1 135.2
Net earnings 378.1 154.2
Adjusted earnings1 295.6 144.4
Adjusted EBITDA1 587.8 354.4
Basic and diluted earnings per share2 0.47 0.18
Basic adjusted earnings per share1 0.40 0.20
Cash flow from operations 317.3 158.7
Adjusted operating cash flow1 472.8. 279.8
Adjusted operating cash flow per share1 0.64 0.38
Free cash flow1 186.5 56.0
Cash and cash equivalents 733.9 181.3
Net cash (debt)1 704.9 (8.1)
1 These are non-GAAP measures. Please refer to the Company’s discussion of Non-GAAP and other performance measures in its Management’s Discussion and Analysis for the three months ended March 31, 2022 and the Reconciliation of Non-GAAP Measures section at the end of this news release.
2 Attributable to shareholders of Lundin Mining Corporation.
Highlights
Operational Performance
Overall, operations performed well during the quarter and the Company remains on track to achieve overall production guidance. Operations adapted to new challenges of the fast-spreading COVID Omicron variant, which had the greatest impact on absences since the onset of the pandemic, as the Company continued to adhere to precautionary measures necessary to protect the safety of the workforce and communities. Copper and gold production exceeded the prior year quarter, while zinc production was in-line and nickel production was lower than the prior year quarter, as expected. Cash costs1 for the quarter were better than the prior year quarter at all sites except Eagle and Chapada, where cash costs were in accordance with expectations.
Candelaria (80% owned): Candelaria produced 39,503 tonnes of copper, and approximately 22,000 ounces of gold in concentrate on a 100% basis in the quarter, in-line with expectations. Copper and gold production were higher than the prior year quarter primarily due to better grades. Copper cash cost of $1.58/lb for the current quarter was better than the prior year quarter due mainly to positive foreign exchange effects and higher sales volumes.
Chapada (100% owned): Chapada produced 10,100 tonnes of copper and approximately 12,000 ounces of gold in concentrate in the quarter. First quarter production was less than planned as ore release and mining activities were impacted by abnormally high rainfall and COVID related absences necessitating a greater portion of the mill feed to be sourced from stockpile; however copper production was higher than the prior year quarter due to higher recoveries. Copper cash cost of $1.82/lb for the quarter was higher than the prior year quarter due mainly to higher mining costs resulting from inflation.
Eagle (100% owned): Eagle produced 4,281 tonnes of nickel and 4,420 tonnes of copper during the quarter. While production was better than planned, it was lower than the prior year quarter, primarily due to lower head grades. Nickel cash cost of negative $1.25/lb was unfavourable compared to the prior year quarter due to lower sales volumes, partially offset by increased by-product credits, and remained in the first quartile of industry cash cost.
Neves-Corvo (100% owned): Neves-Corvo produced 9,860 tonnes of copper for the quarter and 14,751 tonnes of zinc. Higher copper production in the current quarter compared to the prior year quarter resulted from better grades and throughput. Zinc production was higher in the quarter over prior year quarter largely driven by the recent start-up of the Zinc Expansion Project (“ZEP”), though partially offset by lower recoveries. A voluntary temporary suspension of operations took place following a fatal accident on March 30, 2022. Initial lessons learned from the fatality have been shared across the Company’s operations, and Lundin Mining remains committed to safe production. Copper cash cost of $1.70/lb for the quarter was better than the prior year quarter due to favourable zinc by-product credits.
Zinkgruvan (100% owned): Zinc production of 17,640 tonnes was lower than the prior year comparable period but in-line with expected volumes. Lead production of 6,728 tonnes was higher than the prior year quarter due to better grades and recoveries. Zinc cash cost of $0.27/lb was better than the prior year quarter largely due to higher by-product credits.
Total Production
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