Lundin Mining Second Quarter Results

TORONTO, July 29, 2020

Marie Inkster, President and CEO commented, "Our operations performed well in the second quarter, particularly in light of adapting many business processes and implementing preventative measures to protect our workforce and communities from the ongoing risk of COVID-19. We have refocused our efforts and are providing proactive assistance and resources to our local communities to best address needs as the pandemic continues to evolve differently in each region.

Our operations are set for an improved second half of the year. While we have reduced Candelaria's full year production guidance, Eagle's copper production has been increased, and cash cost guidance for both Chapada and Eagle have been improved. The 2020 capital expenditure guidance for ZEP has increased slightly as minor project works are continuing that will help facilitate a smooth restart and ramp-up of construction activities when that occurs.

Lastly, we are proud to announce the issuance of our 2019 Sustainability Report. We believe you will find the report once again provides a comprehensive disclosure of our ESG performance, commitments and strategies for the future."

 Summary Financial Results

		Three months ended					Six months ended ARIVA.DE Börsen-Geflüster Kurse Lundin Mining 11,12 $ -0,63%
		June 30,					June 30,
	US$ Millions (except per share amounts)	2020		2019			2020		2019
	Revenue	533.3		369.3			911.3		785.6
	Gross profit	142.1		25.1			119.4		166.3
	Attributable net earnings (loss)1	38.7		(7.8)			(72.7)		43.9
	Net earnings (loss)	48.3		(8.6)			(65.3)		52.3
	Adjusted earnings (loss)1,2	52.8		(11.1)			11.7		51.9
	Adjusted EBITDA2	231.5		75.6			321.8		252.6
	Basic and diluted net earnings (loss) per share1	0.05		(0.01)			(0.10)		0.06
	Adjusted basic and diluted earnings (loss) per share1,2	0.07		(0.02)			0.02		0.07
	Cash flow from operations	37.6		204.5			121.0		266.6
	Adjusted operating cash flow2	179.0		49.9			206.9		189.1
	Adjusted operating cash flow per share2	0.24		0.07			0.28		0.26
	Cash and cash equivalents	283.9		735.1			283.9		735.1
	Net (debt) cash2	(220.0)		661.1			(220.0)		661.1
1 Attributable to shareholders of Lundin Mining Corporation.
2 These are non-GAAP measures. Please refer to the Company's discussion of non-GAAP measures in its Management's Discussion and Analysis for the three and six months ended June 30, 2020.

Highlights

Operational Performance

Operations performed well in the quarter with copper production at all operations higher than the prior year comparable quarter and record combined throughput of over 1.0 million tonnes at Neves-Corvo. With the exception of Candelaria, production at all mines remain on target to achieve previously disclosed annual guidance, despite challenges of the COVID-19 pandemic.  Furthermore, cash costs at all operations were in-line or better than expected. For Chapada and Eagle, annual cash cost guidance is improving by 24% and 15%, respectively.

As the Company adapts to a new way of operating under COVID-19, Lundin Mining continues to manage and respond to the pandemic within the framework of its Crisis Management and Pandemic Response Plan, along with recommendations of health authorities and local and national regulatory requirements. The Company has implemented preventive measures to ensure the safety of its workforce, local communities and other key stakeholders. The Zinc Expansion Project ("ZEP") at Neves-Corvo continues to be temporarily suspended and business continuity measures have been implemented at all of our sites in an effort to mitigate and minimize potential future impacts of this pandemic, particularly with travel and contractors from outside the immediate mine regions.

During the second quarter of 2020, the fast-growing infection rates in Brazil, Chile and the USA have increased the risk of outbreaks in the communities near Chapada, Candelaria and Eagle whereas rates of infection in the areas near our operations in Sweden and Portugal remained relatively stable. In the event of a localized outbreak in any of our operating jurisdictions, there may be a need to implement increased isolation and containment measures to prevent the spread of the virus. These actions could impact production levels, delay maintenance activities and disrupt supply chains.

To date, production disruptions have been minimal and there has been no significant disruption in the delivery or receipt of goods at our operations as a result of COVID-19.

Candelaria (80% owned): Candelaria produced 35,060 tonnes of copper, and approximately 21 thousand ounces of gold in concentrate on a 100% basis. Copper production for the quarter was higher than the prior year quarter primarily due to higher copper head grades and recoveries as more higher-grade open pit and underground ore was mined. However, throughput was lower than planned due to ore hardness, operational issues and an unplanned maintenance stop. In addition, COVID-19 has further delayed the Candelaria Mill Optimization Project ("CMOP") and installation of the final ball mill motor is now planned for January 2021; accordingly, full year production guidance has been reduced. Copper cash costs¹ of $1.36/lb for the quarter were better than the prior year comparable quarter largely owing to the impact of favourable foreign exchange.

Chapada (100% owned): Chapada produced 13,799 tonnes of copper and approximately 23 thousand ounces of gold in-line with plan. Copper cash costs of $0.21/lb were better than expected benefitting from favourable foreign exchange and higher gold by-product prices.

Eagle (100% owned): Eagle produced 3,380 tonnes of nickel and 4,102 tonnes of copper during the quarter. Nickel production was comparable to the prior year comparable quarter. Copper production was higher than the prior year quarter as a result of higher grades. Nickel cash costs of $1.13/lb for the quarter were lower than the prior year comparable quarter due primarily to lower treatment and refining costs.

Neves-Corvo (100% owned): Neves-Corvo produced 10,559 tonnes of copper and 18,986 tonnes of zinc for the quarter. Copper production was higher than the prior year quarter benefitting from record throughput and better recoveries, while zinc production was higher due to higher grades. Copper cash costs of $1.75/lb for the quarter were lower than the prior year quarter due to favourable foreign exchange which was partially offset by lower by-product credits stemming from lower realized zinc prices.

Major construction and commissioning of ZEP continues to be temporarily suspended to reduce the risk of the spread of COVID-19 to employees, contractors and local communities.

Zinkgruvan (100% owned): Zinc production of 12,596 tonnes and lead production of 3,799 tonnes was lower than the prior year quarter due to grades and lower throughput as a result of the sequencing of copper production. Zinc cash costs of $0.56/lb were higher than the prior year quarter as a result of lower sales volumes and by-product credit metal prices.

Total Production

(Contained metal in concentrate)	2020			2019
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