Proactiveinvestors United Kingdom Lundin Mining https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Lundin Mining RSS feed en Tue, 16 Jul 2019 14:11:30 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Lundin Mining's Candelaria operations shut for the moment due to flooding ]]> https://www.proactiveinvestors.co.uk/companies/news/106093/lundin-minings-candelaria-operations-shut-for-the-moment-due-to-flooding-60674.html Lundin Mining (TSE:LUN) said that mining and milling operations at its Candelaria and Ojos del Salado mines in Chile have been temporarily suspended due to heavy rainfall, which has affected power and access to the site.

The Toronto-based base metals miner said there have been abnormal rains in central and northern Chile over the last 24 hours, with the region where its mines are located especially impacted. 

"The Copiapo River and lower lying communities down the valley from the mine have experienced heavy flooding in numerous locations," Lundin said in a statement.

"This flooding has closed provincial roads, disrupting access to the Candelaria Mine. No significant damage or injuries have been reported at the Candelaria mine site," it added. 

Lundin is a diversified base metals company with operations in Chile, Portugal, Sweden, Spain and the US, producing copper, zinc, lead and nickel. It also holds a 24 percent stake in the Tenke Fungurume mine in the Democratic Republic of Congo, and in the Freeport Cobalt business, which owns a cobalt refinery in Finland.

The company said it will provide another update once the impact of the Chilean flooding on regional infrastructure is better known. 

Shares fell 0.6 percent early Thursday, to trade at C$5.15 as of 10:05 am ET. The stock has declined almost 10 percent so far in 2015.

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Thu, 26 Mar 2015 10:25:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/106093/lundin-minings-candelaria-operations-shut-for-the-moment-due-to-flooding-60674.html
<![CDATA[News - Lundin Mining gets lift from Dundee Capital Markets: company "deserves a premium" ]]> https://www.proactiveinvestors.co.uk/companies/news/105594/lundin-mining-gets-lift-from-dundee-capital-markets-company-deserves-a-premium-59992.html Lundin Mining (TSE:LUN) got an encouraging boost from analysts at Dundee Capital Markets today, after the firm lifted its price target on the base metals miner to C$7.50 per share from C$7.00 per share previously.

"We believe Lundin deserves a premium given its strong financial condition and goal to eventually introduce a dividend," analyst David Charles wrote.

Adjusted earnings in the company's latest quarter came in at 10 cents per share, just above Dundee's estimate of 9 cents, and in line with consensus views.

The most recent quarter included operating earnings from the Candelaria copper mine in Chile, in which it acquired an 80 percent stake last November from Freeport-McMoRan for $1.85 billion. Although it only contributed for two months in 2014, Candelaria generated $215 million in revenues and $68 million in operating earnings, representing 23 percent and 22 percent of Lundin's entire revenues and operating earnings in 2014.

The mine is expected to more than double its 2014 copper production levels this year, with a five-year optimization plan underway.

Lundin also benefited from bringing its Eagle nickel mine into full scale production, ahead of schedule and under budget. "The mine generates good margins given the unit costs of $2.79/lb of nickel in Q4 with guidance of $2.00/lb in 2015. 

"We estimate Eagle could be Lundin's biggest free cash flow generator in 2015 and higher nickel prices should have significant impact on free cash flow generation," wrote Charles in a research note released to clients earlier today.

"There were lots of moving parts Q/Q and Y/Y due to the addition of Candelaria (a game changer) and the ramp-up at Eagle, but overall we were pleased with the results," he added.

As expected, Dundee said Lundin proactively reduced its exploration budget by 20 percent and capex by 15 percent for 2015, to $460 million versus $545 million previously. Updated operating costs guidance is expected with first quarter results.

The increased price target from Dundee is based on a rise in the broker's EBITDA estimate for Lundin this year, mainly on the back of better-than-expected performance at the Eagle mine and Candelaria. 

It also noted, however, that its 2015 earnings per share forecast was impacted by higher depreciation at Candelaria than originally forecasted.

Dundee highlighted the company's "solid balance sheet", even with net debt of $829 million at the end of the fourth quarter, which Charles said has already come down by $119 million, now sitting at $710 million. The company also has $350 million available on its revolving debt facility. It ended 2014 with $175 million in cash, around $1 billion in debt and a debt-to-capital ratio of 20 percent, which is "well below its peers", said Dundee.

Lundin has operations in Chile, Portugal, Sweden, Spain and the U.S. It holds a 24 percent stake in the Tenke Fungurume copper-cobalt mine in the Democratic Republic of Congo. Shares were up 1.7 percent at C$5.39 on Friday afternoon. 

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Fri, 20 Feb 2015 14:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/105594/lundin-mining-gets-lift-from-dundee-capital-markets-company-deserves-a-premium-59992.html
<![CDATA[News - Lundin posts Q4 profit drop, but cash flow jumps on Candelaria contribution ]]> https://www.proactiveinvestors.co.uk/companies/news/105566/lundin-posts-q4-profit-drop-but-cash-flow-jumps-on-candelaria-contribution-59961.html Lundin Mining (TSE:LUN)(OMX:LUMI) said fourth quarter net earnings fell from a year earlier, hit by a $32.3 million impairment charge tied to some Portuguese exploration assets.

For the three months to the end of December, the Toronto-based base metals miner, which reports in U.S. currency, posted net earnings of $25.8 million, or 4 cents per share, compared to $42.1 million, or 7 cents per share, in the year-earlier period.

The latest quarter included a non-cash charge of $32.3 million, reflecting the stoppage of greenfield exploration programs in Portugal, and the relinquishment of certain concessions.

The most recent fourth quarter also included operating earnings from the Candelaria copper mine in Chile, in which it acquired an 80 percent stake last November from Freeport-McMoRan for $1.85 billion. The mine is expected to contribute significantly to Lundin's earnings and cash flows going forward, it said.

Adjusted earnings came in at 10 cents per share, in line with consensus estimates.

Sales jumped to $443 million from $186.9 million in the fourth quarter of 2013. 

Cash flow from operations, a key industry metric, jumped to $68.4 million from $55.2 million.

Shares rose 2.5 percent to C$5.39 on Thursday, paring year-to-date losses to 5.7 percent.

"2014 was a very important year for Lundin Mining, as the company successfully executed on its strategy to rejuvenate its asset base," said president and chief executive officer Paul Conibear in a statement late Wednesday.

"Many milestones were achieved throughout the year including: bringing the Eagle nickel mine into full scale production ahead of schedule and under budget; successfully acquiring the high quality Candelaria copper operations in Chile; and recording zinc production records at our European operations."

The CEO said the company's focus for this year will be to improve its existing operations with the advancement of brownfield exploration programs at each of its mines.

Lundin said all of its operations in 2014 "substantially met or performed better" than what was forecast in terms of production, while total capital spending was below initial guidance.

For 2015, the company is guiding for total production of between 31,000 to 35,000 contained tonnes, which  includes copper, zinc, nickel and lead output. Lundin said that since its guidance was announced in December, metal prices have declined significantly, and as such, is assessing the impact on its forecasts, with updated unit cost guidance to be announced with its first quarter results.

So far, it has identified $70 million of savings, cutting its capital expenditure budget for the year to $400 million from $470 million previously. The company is also planning to cancel or defer about $15 million in exploration expenses.

Lundin, which had net debt of $829.2 million as at December 31, has operations in Chile, Portugal, Sweden, Spain and the U.S. It holds a 24 percent stake in the Tenke Fungurume copper-cobalt mine in the Democratic Republic of Congo.

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Thu, 19 Feb 2015 10:21:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/105566/lundin-posts-q4-profit-drop-but-cash-flow-jumps-on-candelaria-contribution-59961.html
<![CDATA[News - Lundin Mining still a top pick, says Dundee Capital, as fourth quarter delivers ]]> https://www.proactiveinvestors.co.uk/companies/news/105181/lundin-mining-still-a-top-pick-says-dundee-capital-as-fourth-quarter-delivers-59435.html Lundin Mining (TSE:LUN) remains a top pick at Dundee Capital Markets, after announcing fourth quarter and full year production results that were "excellent", according to the analysts. 

The base metals producer topped the higher end of its production guidance for zinc and nickel, and met the midpoint of guidance for both copper and lead, Dundee said.

"Whether Lundin ends up beating our Q4 EPS forecast will depend on how much of Candelaria’s production and Eagle pre-commercial production will be included in earnings rather than counted against capex," wrote analyst David Charles.

He said the bottom line is that Lundin had an operationally excellent fourth quarter and full year in 2014, as its new Eagle mine performed ahead of schedule, with Candelaria already contributing as expected. 

The company produced a total of 66,128 contained tonnes of copper at its wholly owned mines in 2014, compared to guidance of 61,000 to 69,000 tonnes. For 2015, the company is expecting copper output of 78,000 to 87,000 tonnes at its wholly owned operations, unchanged from its December guidance.

The company's entire 2015 outlook for both costs and production remained unchanged, but Lundin said it could announce some capex cut to the $470 million budgeted for this year when it releases its full financial results on February 18, citing the current metal price declines.

Dundee said that in 2014, "the Eagle mine had an excellent ramp-up year with commercial production declared in November and production of nickel and copper exceeding guidance as throughput, grades and recoveries were all higher than expected."

In addition, since the closing of the Candelaria acquisition in November, the mine produced some 28,600 tonnes of copper, 318,000 ounces of silver and 16,200 ounces of gold in concentrate, in line with estimates.

The company's zinc production also reached a record due to an increased proportion of zinc ore being derived from the Lombador deposit at Neves-Corvo.

Dundee has a buy rating and a target price of $7.00 per share on Lundin, which has operations in Chile, Portugal, Sweden, Spain and the US. It holds a 24 percent stake in the Tenke Fungurume copper-cobalt mine in the Democratic Republic of Congo and in the Freeport Cobalt Oy business, which includes a cobalt refinery in Finland.

It ended the year with a net debt balance of $830 million, better than Dundee's estimate of $1 billion, and still has the entire $350 million available on its revolving credit facility. 

Shares increased more than 3 percent to C$4.72 as of 3:00pm ET in Toronto, paring year to date losses to 17.5 percent.

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Thu, 22 Jan 2015 15:22:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/105181/lundin-mining-still-a-top-pick-says-dundee-capital-as-fourth-quarter-delivers-59435.html
<![CDATA[News - Lundin Mining buys controlling stake of Chile's Candelaria mine from Freeport-McMoRan ]]> https://www.proactiveinvestors.co.uk/companies/news/103561/lundin-mining-buys-controlling-stake-of-chiles-candelaria-mine-from-freeport-mcmoran-57263.html Base metals miner Lundin Mining (TSE:LUN)(OMX:LUMI) has agreed to buy up Freeport-McMoRan's (NYSE:FCX) controlling 80 percent stake in Chile's Candelaria copper mine for US$1.8 billion in cash, a move that will more than double Lundin's copper output.

Up to another US$200 million could also be paid out, calculated as 5 percent of net copper revenues in any annual period over the next five years if the average realized copper price exceeds US$4.00 per pound, according to Lundin's statement released late Monday night.

The remainding 20 percent of the copper mine will continue to be held by Sumitomo Metal Mining and Sumitomo Corp.

Lundin said the acquisition delivers long-term copper output at attractive cash costs, while diversifying its operations into Chile, one of the world's largest copper producing regions. The project is expected to immediately add to earnings and operating cash flow, as well as the company's free cash flow per share.

"The acquisition of Candelaria is a unique opportunity to acquire a large scale, high quality copper operation with strong cash flows in an excellent mining jurisdiction," affirmed president and chief executive officer of Lundin, Paul Conibear.

"This transaction further enhances our company by providing increased operational and geographic diversification, using a balanced financing structure which allows us to maintain a strong balance sheet going forward."

The deal is to be financed with US$1.0 billion in new senior secured debt, Lundin said, as well as about US$600 million in equity financing. Lundin has also executed the sale of a stream on 68 percent of Candelaria's gold and silver production to Franco-Nevada Corp (TSE:FNV), for an upfront payment of US$648 million.

The gold and silver by-product credits from the project has allowed Lundin to get about 36 percent of the initial purchase price in exchange for less than 10 percent of revenues, it said.

Candelaria, located in Chile's Atacama province near the coastal port of Caldera, is expected to produce 156,000 tonnes of copper this year, as well as 97,000 ounces of gold and 1.9 million ounces of silver. Since the mine started open pit production in the mid 1990s, it has produced some 3.6 million tonnes of copper.

The operations include one large open-pit mine as well as three underground mine and fully-owned infrastructure, including a large deep water port, a desalination plant and a grid-supplied power contract in place until 2022.

Cash costs at the operations are anticipated at US$1.80 per pound in 2014, with average cash operating costs of US$1.69 per pound over the 14-year life of the mine, excluding the gold and silver stream adjustment.

The mine has current proven and probable mineral reserves of 380.4 million tonnes at an average grade of 0.54% copper, with additional exploration potential, said Lundin.

The Franco-Nevada stream will come into effect on closing of Lundin's purchase from Freeport, with the deal expected to close in the fourth quarter of this year, subject to regulatory approvals and other conditions.

Shares of Lundin fell 1.5 percent in Toronto to C$5.25, while Franco-Nevada shares rose almost 1 percent to C$53.88. In New York, Freeport's shares declined 0.8 percent to US$32.24.

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Tue, 07 Oct 2014 11:21:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/103561/lundin-mining-buys-controlling-stake-of-chiles-candelaria-mine-from-freeport-mcmoran-57263.html
<![CDATA[News - Lundin Mining starts production at Eagle mine, shares rise ]]> https://www.proactiveinvestors.co.uk/companies/news/103402/lundin-mining-starts-production-at-eagle-mine-shares-rise-57033.html Shares of Lundin Mining (TSE:LUN) (OMX:LUMI) rose on Wednesday after the company announced the start of concentrate production from its Eagle nickel-copper mine in Michigan. 

Construction at the Eagle mine is now mostly complete, the company said, with the project delivered on budget and ahead of its initial schedule.

The mine is planned to ship the first saleable copper and nickel concentrates during the first half of next month, and is expected to reach full design rates in the second quarter of 2015.

Shares climbed 2.5 percent to C$5.69 on Wednesday, stretching year-to-date gains to almost 24 percent. 

"The Eagle Mine is a significant new, high-quality, low-cost mine, that has been constructed to the highest of safety, environmental and social responsibility standards," said president and chief executive officer, Paul Conibear.

"Our team has done an exemplary job in bringing the mine into production, and we look forward to the operation becoming a significant cash flow generator for the company and a significant contributor to the local and regional economy."

The company said total capital costs from acquisition of the mine to full completion are estimated at just below $400 million.

Mill commissioning at the Eagle mine was completed earlier this month, with continuous production beginning at the end of last week. Production over the first three full years is expected to average about 23,000 tonnes of nickel and 20,000 tonnes of copper contained metal in concentrate, Lundin said.

The Toronto, Ontario-based base metals miner has operations and projects in Portugal, Sweden, Spain and the US. It produces copper, zinc, lead and nickel. 

The company also holds a 24 percent stake in the Tenke Fungurume copper-cobalt mine in the Democratic Republic of Congo. 

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Wed, 24 Sep 2014 11:40:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/103402/lundin-mining-starts-production-at-eagle-mine-shares-rise-57033.html
<![CDATA[News - Lundin Mining responds to media report, says progress made on potential acquisition ]]> https://www.proactiveinvestors.co.uk/companies/news/102283/lundin-mining-responds-to-media-report-says-progress-made-on-potential-acquisition-55407.html Lundin Mining (TSE:LUN), in response to media reports last week, says it has been "actively pursuing" the potential acquisition of advanced-stage projects or an operating mine, and that progress has been made on this front. 

The statement was made earlier today following an article in the Globe and Mail on Friday, which reported Canada's Lundin as the front-runner to buy a major Freeport-McMoRan Copper & Gold (NYSE:FCX) copper mine in Chile.

The article, which cited sources familiar with the matter, said Toronto-based Lundin would pay more than $2 billion for the Candelaria mine, and is reportedly to partner with Franco-Nevada (TSE:FNV) on the deal. Franco-Nevada would pay up to $1 billion for a stream of the mine's future gold production, according to the sources cited. 

An article in the Chilean newspaper, El Mercurio (Spanish), today reported Lundin already acquired the mine, with the $2 billion deal coming helping Freeport sort out its current debt load of $20.9 billion.

Lundin said Monday that the pursuit of potential acquisitions is part of a "long-standing growth initiative", but made no assurances that the company will proceed with a transaction, despite the progress made. The base metals miner offered no information on the terms or conditions of any agreement relating to a possible transaction, other than to say that as a general policy, it does not publicly comment on acquisition negotiations. 

It released a statement today at the request of Market Surveillance on behalf of the Nasdaq OMX Exchange, it said.

Lundin has been on the hunt for a copper acquisition for more than two years, with CEO Paul Conibear telling the Globe and Mail last year that ideal assets would have at least a 10-year mine life, and would be capable of producing some 50,000 tonnes of copper per year. 

The potential purchase of the Freeport Chilean mine would boost Lundin's copper output significantly. 

Lundin produces copper, zinc, nickel and lead from its properties in Europe, Africa and the United States. It already has partnerships with Arizona-based Freeport on the Tenke Fungurume copper mine in the Democratic Republic of Congo, as well as a refinery in Finland.

Shares of Lundin were up almost 1 percent on Monday in early afternoon trading, at C$6.33 in Toronto, stretching year-to-date gains to more than 37 percent. 

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Mon, 14 Jul 2014 13:01:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/102283/lundin-mining-responds-to-media-report-says-progress-made-on-potential-acquisition-55407.html
<![CDATA[News - Lundin Mining bulks up on low-risk, advanced assets with Eagle mine purchase ]]> https://www.proactiveinvestors.co.uk/companies/news/95603/lundin-mining-bulks-up-on-low-risk-advanced-assets-with-eagle-mine-purchase-44989.html Shares of Lundin Mining (TSE:LUN) were running 5 per cent higher on Thursday, a day after the company announced it agreed to buy the Eagle nickel-copper mine in Michigan from Rio Tinto (NYSE:RIO) for US$325 million in cash, bolstering its portfolio of advanced stage, low-risk assets. 

The consideration includes a US$250 million purchase price, along with roughly $75 million in project expenditures from January 1, 2013 until the close of the transaction. 

The project, located in the Upper Peninsula of Michigan, is at an advanced stage of development, with slightly more than 50 per cent of construction complete, according to a company statement. Initial output is projected to start in the fourth quarter of next year. 

Annual production over the first three full years is pegged to average approximately 23,000 tonnes of nickel and 20,000 tonnes of copper, with additional by-product credits of precious metals and cobalt. Lundin said that C1 cash costs for the first three years are expected to average $2.00 per pound of nickel - putting the asset in the lowest quartile of the nickel producer cost curve. 

 "The acquisition of the Eagle Mine fits ideally within Lundin Mining's asset base and is the result of the disciplined approach we have been focused on for some time to acquire high quality, advanced stage assets in low risk, mining oriented jurisdictions," said president and CEO of Lundin, Paul Conibear, in the release Thursday. 

Shares of Lundin advanced to as high as $4.24 in the session, lately standing at $4.15 - up by more than 4 per cent. Year-to-date, the company's stock has lost over 18 per cent. 

"The Eagle Mine represents a very unique opportunity to acquire a high-grade project which is under construction and expected to begin generating significant levels of metal production and cash flow prior to the end of next year," Conibear said. 

"Northern Michigan has an outstanding iron ore, gold and base metals mining history and consequently excellent regional power, road and rail infrastructure, with extensive mining expertise within local communities to support and staff Eagle Mine."

Along with the quick timeline to production and the ideal location, the company said the 8-year mine is projected to have a short payback period and strong cash flows, as well as exploration upside, with a potential for an increase in resources. 

Currently, the Eagle mine has probable ore reserves estimated at 5.18 million tonnes at 2.93% nickel and 2.49% copper.The planned mine production rate is 2,000 tonnes per day. 

The deposit was discovered back in 2002 by Rio Tinto, with the miner deciding to build the project in 2010 after completing economic studies. Total project capex is estimated at $770 million, of which around $355 million has already been spent as of the end of May. 

Lundin said that it will spend another $400 million for the remainder of this year and next to bring the project into production, adding to the acquisition price of $325 million. 

The funds for the acquisition will be taken from the company's current cash balance, as well as from a portion of its existing revolving credit facility. The deal, which is anticipated to wrap up by July, is not conditional on financing, the company said, but still needs regulatory approvals. 

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Thu, 13 Jun 2013 12:36:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/95603/lundin-mining-bulks-up-on-low-risk-advanced-assets-with-eagle-mine-purchase-44989.html
<![CDATA[News - Lundin Mining swings to Q4 loss on impairment charge ]]> https://www.proactiveinvestors.co.uk/companies/news/93220/lundin-mining-swings-to-q4-loss-on-impairment-charge-40912.html

Shares of Lundin Mining Corp (TSE:LUN)(OMX:LUMI) rose over 3% Friday, a day after reporting it swung to a net loss in its fourth quarter on an impairment charge. 

For the three months that ended December 31, the base metals miner reported a net loss of $17.1 million, or 3 cents per basic share, compared to a net profit of $36.1 million, or 6 cents per share, in the year-ago period. 

The company, with operations in Portugal, Sweden, Spain and Ireland, said the latest period reflected a non-cash impairment charge of $67.3 million tied to a write down of mineral properties, plant and equipment and goodwill at the Aguablanca mine. 

Excluding the charge, earnings were $45.0 million or 8 cents per share. 

Cash flow from operations was $49.4 million, down from $113.9 million in the fourth quarter of 2011. 

Sales also slumped to $176.4 million from $242.1 million a year ago. 

The company said its Neves-Corvo mine met its production goals for both zinc and copper. A significant amount of incremental lower grade, but profitable, copper ore was mined, compared to the reserve models, as additional volumes of mineralization on the periphery of stopes was encountered. 

Cash costs per pound of copper sold were $2.17 for the quarter as a result of the processing of more tonnes of ore at lower grades, it said.

Its Zinkgruvan mine finished the year with "record production" of zinc, lead and copper in concentrate, the company said, with cash costs per pound of zinc sold of $0.12 for the quarter.

Aguablanca's processing operations were restarted in August, with full production achieved earlier than planned, resulting in higher than expected nickel and copper metal output. 

Cash costs per pound of nickel sold were $6.19 for the quarter, which was the first quarter of full production since mining was suspended in the fourth quarter of 2010.

Lundin also said that Galmoy's mining production from remnant ores exceeded expectations for the year. Although mining stopped in the fourth quarter, processing of stockpiled ore by a third party processing facility will continue into 2013.

"Our operations continue to consistently perform. Especially pleasing this last quarter was the performance of Zinkgruvan, with record production of zinc, lead and copper in concentrate and maintaining a cash cost of 12 cents per pound of zinc for the quarter and 13 cents per pound for the year," said president and CEO, Paul Conibear. 

"With the staged commissioning and substantial completion of Tenke's Phase II expansion achieved by year end 2012, we also saw record copper production at Tenke and continue to be very pleased with how this operation is running and the cash flow being generated."

Lundin holds a 24% equity stake in the Tenke Fungurume copper/cobalt mine in the Democratic Republic of Congo.

Looking forward, the company said it expects its total 2013 production and operating costs to be "substantially in line" with 2012, with hopes of "surplus cash flows" from Tenke contributing materially to its balance sheet. 

Lundin expects to spend $285 million in capital expenditures for 2013, an increase of $15 million from its previous guidance in December due to increased costs at Tenke. 

It ended the period with $275.1 million of cash. 

Shares of the miner were up 3.8% this morning to $4.78 in Toronto. 

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Fri, 22 Feb 2013 10:22:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/93220/lundin-mining-swings-to-q4-loss-on-impairment-charge-40912.html
<![CDATA[News - Lundin Mining sees higher zinc, copper production in 2013, 2014 ]]> https://www.proactiveinvestors.co.uk/companies/news/82113/lundin-mining-sees-higher-zinc-copper-production-in-2013-2014-22362.html Lundin Mining (TSE:LUN) said Monday that higher grades of ore and a ramp up of production is expected to boost zinc and copper production in 2013 and 2014.

The base metals miner has operations in Portugal, Sweden, Spain and Ireland, producing copper, zinc, lead and Nickel. It also has an equity stake in the Tenke Fungurume copper/cobalt mine in the Democratic Republic of Congo.

Lundin expects to ramp up production at its zinc plant in Neves-Corvo, Portugal, which will result in zinc production rising to 125,000-135,000 tonnes in 2013 and 145,000-155,000 tonnes in 2014 from the 109,000-125,500 tonnes expected in 2012, the company said.

Meanwhile, the miner sees copper production rising about 25 percent to 107,000-117,000 tonnes in 2013 from 2012 levels.

Nickel production will also increase in 2013, Lundin said, as Spain's Aguablanca Nickel-copper mine resumes full-scale production in late 2012, the company added.

For next year, Nickel production is seen at between 500-1,000 tonnes, rising to 5,000-7000 tonnes in 2013 and then 6,000-7,000 tonnes in 2014.

For lead, however, the company forecasts total 2012 output of 34,500-40,000 tonnes and 32,000-35,000 tonnes in 2013 and 2014 as production at its Galmoy mine ends.

Lundin Mining president and CEO, Paul Conibear, said: "We are very focused on improving our performance and meeting and improving on current production and cost targets. We have added depth both corporately and at the operations to facilitate better reliability from our mines.

"Lundin Mining is in a unique position as we offer meaningful near-term production growth to copper, zinc and Nickel, all of which is expected to be fully-funded from operational cash flow going forward."

The company earlier trimmed its 2011 copper output forecast by 5.2 percent to 71,500 tonnes. It had also marginally lowered its zinc and lead output guidance for the year.

Guidance for 2011 now remains unchanged.

Capital expenditures for 2012 are expected to be $410 million, while exploration expenditures are anticipated to increase from around $43 million in 2011 to $50 million in 2012.

The company said it was evaluating several optimization projects and expansions of current operations that could further increase production over the next few years.

Cash costs at Neves-Corvo in Portugal are estimated at $1.80 per pound after zinc by-product credits in 2012, while at the Zinkgruvan mine in Sweden, estimated cash costs are expected to approximate $0.25 per pound after copper and lead by-product credits.

Zinkgruvan is expected to remain as one of the lower cost zinc producers for the foreseeable future, Lundin said.

"As we enter 2012, we are very well positioned to continue to increase output with a good balance sheet, several internal optimization opportunities and a strong exploration focus," Conibear concluded.

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Mon, 12 Dec 2011 09:07:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/82113/lundin-mining-sees-higher-zinc-copper-production-in-2013-2014-22362.html
<![CDATA[News - Lundin Mining shares plummet after no suitable takeover offers in the cards ]]> https://www.proactiveinvestors.co.uk/companies/news/77779/lundin-mining-shares-plummet-after-no-suitable-takeover-offers-in-the-cards-14939.html Lundin Mining's (TSE:LUN) shares plunged 17% on Thursday after it said none of the takeover offers it has received were in the company’s best interest.

The copper explorer said its board of directors concluded that none of the potential takeover bids it received were adequate, and did not appropriately value the company or its assets, which include a 24% interest in the Tenke Fungurume copper mine in the Democratic Republic of Congo and mines in Portugal, Sweden, Spain and Ireland that produce copper, zinc, lead and nickel.

The company also stated that the best way to create shareholder value would be to continue to manage and develop the company’s assets and to actively seek growth opportunities. Although, the Toronto-based company said it is still open to higher bids.

Lundin did not mention who the potential bidders were, or the value of their offers in its statement.

The company did say, however, that it has no plans to re-visit an earlier proposed merger with Inmet Mining this year. That deal collapsed after a hostile bid for Lundin came from Equinox Minerals in February.

Last month, after agreeing to a friendly takeover of $7.3 billion by Barrick Gold, Equinox dropped its Lundin bid.

Separately, Lundin also said that Phil Wright will retire at the end of June, having served as CEO since January 2008. Paul Conibear, Senior Vice President, will serve as Interim CEO until a permanent replacement has been found.

The board has appointed a search committee to recruit a permanent CEO and an executive recruiting firm has been retained, it added.

Shares for the company were down 17% on the day trading at $7.07 as of Thursday 3:45 p.m. EST.

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Thu, 26 May 2011 16:24:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/77779/lundin-mining-shares-plummet-after-no-suitable-takeover-offers-in-the-cards-14939.html
<![CDATA[News - Lundin rejects Equinox's $4.8bn bid, proposed debt considered too risky ]]> https://www.proactiveinvestors.co.uk/companies/news/76749/-lundin-rejects-equinoxs-48bn-bid-proposed-debt-considered-too-risky-13085.html Copper-focused Lundin Mining Corp (TSE:LUN)(OMX:LUMI) has recommended that its shareholders reject the hostile takeover bid from Equinox Minerals (TSE:EQN) (ASX:EQN), citing "extensive conditions" and an "inadequate price" as reasons for concern.

Last month, Equinox offered to buy Vancouver-based Lundin in a deal valued at C$4.8 billion, or C$8.10 per share, threatening the previously announced merger between Lundin and Inmet Mining (TSE:IMN) in January.

Lundin said the deal price is too low, as it offers just a 6% premium to the 20-day volume weighted average share price of the company ending the day before the bid was announced, a premium that is "substantially below premiums paid in other unsolicited metals and mining transactions".

Equinox also proposed to finance its bid with a US$3.2 billion bridge facility, led by Goldman Sachs and Credit Suisse, which Lundin believes to be risky.

"The offer has such extensive conditions that even if the amount of the offer was not so financially inadequate, the Board would not recommend that shareholders accept the offer because we have no confidence that it would ever close," said Lundin chairman, Lukas Lundin.

Under the terms of the Equinox offer, Lundin shareholders would receive either $8.10 in cash or 1.2903 Equinox shares plus one cent for each Lundin share. Equinox would shell out a maximum of C$2.4 billion in cash, and issue as much as 380 million shares.

Lundin CEO Phil Wright said that taking on US$3.2 billion in debt on "partially undisclosed" terms is of particular concern, as Equinox plans on repaying the loan over four years based on copper price forecasts for that period - a strategy that could go terribly wrong if the economic climate warrants, and could lead to distressed asset sales.

Lundin, based in Vancouver, produces copper, nickel, lead and zinc and holds expansion projects at its Zinkgruvan mine in Sweden and Neves Corvo project in Portugal, along with its stake in the Tenke Fungurume copper/cobalt project in the Democratic Republic of Congo.

Equinox, with offices in Toronto and Perth, Australia, is said to be particularly interested in Lundin's 24% holding in the DRC property. Aside from Equinox's  Saudi Arabia project currently under construction, the combination of Equinox and Lundin would consist of five producing operations by mid 2012, including Equinox’s Lumwana mine in Zambia.

But Lundin said in its statement that the offer would result in a company with "increased exposure to geopolitical risks due to the location of Equinox assets in Zambia and Saudi Arabia."

"The acquisition results in a company with high Africa and Middle East concentration and few, if any synergies with Lundin Mining's business."

Lundin also cited reservations regarding the experience of Equinox's management, which the company does not believe is sufficient to operate a multi-mine entity with projects spread across seven countries.

"Equinox is essentially asking shareholders to grant them an option to acquire Lundin Mining, at their discretion, and their lenders discretion, at a price that is inadequate and containing substantial risks if implemented," said Wright.

According to reports, Lundin has decided to pursue the friendly merger with Inmet, which promises to create a new force in the copper industry, to be known as Symterra Corporation, in which each Inmet shareholder will receive 3.4918 shares and each Lundin shareholder will receive 0.3333 shares. In a statement released today, both companies announced that their  special meeting of shareholders to vote on the merger has been postponed from March 28th to April 4th.

As mineral prices reach all-time highs, especially copper, consolidation has become an ever-increasing trend in the industry as companies scramble to attain new mineral properties and more importantly, added resources. The Equinox bid, which could still thwart the merger between Inmet and Lundin, could put all three companies into play as potential targets.

Lundin's rejection of Equinox's offer was based on opinions received from advisors Haywood Securities and Scotia Capital.

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Mon, 21 Mar 2011 08:56:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/76749/-lundin-rejects-equinoxs-48bn-bid-proposed-debt-considered-too-risky-13085.html
<![CDATA[News - Inmet Mining and Lundin to merge in $9 billion deal ]]> https://www.proactiveinvestors.co.uk/companies/news/75700/inmet-mining-and-lundin-to-merge-in-9-billion-deal-11408.html As copper prices hit record highs, Canadian miners Inmet Mining  (TSX:IMN) and Lundin Mining (TSX:LUN)(OMX:LUMI) announced today that the two companies will merge to create a new copper force in the industry.

The C$9 billion deal promises to create Symterra Corporation, a new company that will have the potential to produce over 500,000 tonnes of copper annually by 2017. The merged entity will have five low-cost, long-life mines in Europe under its belt and two copper development properties, as well as a cash balance of $1.3 billion and no debt.

Consolidation has become a popular trend in the mining industry, as commodity prices have surged recently and companies scramble to attain new mineral properties.

Toronto-based Inmet produces copper, zinc and gold and has interests in four mining operations: Çayeli in Turkey, Las Cruces in Spain, Pyhäsalmi in Finland and Ok Tedi in Papua New Guinea. It also has a 100% stake in Cobre Panama, a copper development property in Panama.

Lundin, based in Vancouver, produces copper, nickel, lead and zinc and holds expansion projects at its Zinkgruvan mine in Sweden and Neves Corvo project in Portugal, along with its stake in the Tenke Fungurume copper/cobalt project in the Democratic Republic of Congo.

Under the terms of the deal that has already been approved by both companies' boards, each Inmet shareholder will receive 3.4918 shares of Symterra, and each Lundin shareholder will receive 0.3333 shares of the new company, for each share held.

The exchange ratio represents no premium to either party based on the 30-day volume-weighted average price of both Inmet and Lundin to January 11, 2011, the companies said.

Symterra will be listed on both the TSX and OMX Nordic exchange, with chairman of Lundin Lukas Lundin as the new non-exec chairman, and head of Inmet Jochen Tilk as the new president and CEO.

"The long-term fundamentals for copper are compelling. With solid operating assets and the ability to fund its world class growth projects, Symterra provides one of the best growth profiles for copper amongst major mining companies, combined with attractive exposure to zinc and other metals," said Lundin.

The merger transaction has a break fee of C$120 million, should the deal not complete under certain circumstances. The transaction is conditional on the approval of Inmet and Lundin shareholders, as well as regulatory and other approvals, with the shareholder meeting due to take place in mid-March.

The largest shareholder of both companies have already agreed to vote in favour of the merger, including Leucadia, which represents 17.94% of Inmet shares, and Lundin, representing 12.32% of Lundin shares.

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Thu, 13 Jan 2011 15:34:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/75700/inmet-mining-and-lundin-to-merge-in-9-billion-deal-11408.html
<![CDATA[News - Lundin Mining ups copper reserves by 2.3% ]]> https://www.proactiveinvestors.co.uk/companies/news/68999/lundin-mining-ups-copper-reserves-by-23-8056.html By Dorothy Kosich, Mineweb.com

Lundin Mining Tuesday published updated reserve and resource estimates of copper, zinc, lead, nickel cobalt and silver.

The Toronto-based miner said continued investment in exploration "has resulted in the replacement of depletion at both Neves-Corvo and Zinkgruvan and a further increase in the copper mineral resources and reserves at Neves-Corvo."

Copper reserves were up 1.35% for a total 2.14 million tonnes, while total copper resource was up 2.3% totaling 5.6 million tonnes of copper.

Zinc reserves were reported at 4.24 million tonnes, a decline of 13.1% due to a decision by Lundin to include zinc tonnages within a 20-year mining timeframe. Total attributable resource was 8.8 million tonnes of zinc.

Nickel reserves were down 13.1% to 4.26 million tonnes, while total attributable nickel resource was reported at 78,000 tonnes of nickel.

Cobalt reserves were reported at 110,000 tonnes, while total attributable resource was reported at 344,000 tonnes of cobalt.

Total attributable silver resource was up 3.8% at 351 million ounces of silver.

All reserves and resources were estimated as of June 30, 2010.

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Wed, 01 Sep 2010 13:29:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/68999/lundin-mining-ups-copper-reserves-by-23-8056.html
<![CDATA[News - Lundin Mining increases copper resources by 44% ]]> https://www.proactiveinvestors.co.uk/companies/news/69316/lundin-mining-increases-copper-resources-by-44-4425.html By Dorothy Kosich, Mineweb.com

Toronto and London-based Lundin Mining Monday reported a 44% increase in measured and indicated copper resources at the end of 2009 that will yield 160,000 tonnes of contained copper or the equivalent of two years of production.

The company also reported that three new deposits have been added to the mineral reserves of the Tenke Fungurume joint venture in the Democratic Republic of the Congo, resulting in an increase in Lundin's share of proven and probable reserves of 1.1 million tonnes of contained copper for a total of 4.2 million tonnes.

Lundin owns 24.75% of Tenke, which is operated by Freeport-McMoRan Copper & Gold. Lundin's share of Tenke cobalt reserves were reported to be 444,000 tonnes.

Phil Wright, CEO of Lundin said, "Our goal this past year was to increase copper resources at Neves-Corvo and the increases we have seen continue to justify this on-going investment, and our belief that Neves-Corvo remains under-explored."

Neves-Corvo is an operating underground copper and zinc mine in Portugal. At the end of 2008, the mine produced 89,206 tonnes of copper, 22,567 tonnes of zinc, and 926,740 ounces of silver.

Proven and probable reserves at Neves-Corvo were reported to be 753,000 tonnes of copper, 190,000 tonnes of zinc, 68,000 tonnes of lead and 29 million ounces of silver

"Equally pleasing is the growth of the mineral reserves at Tenke and the significant increase in the contained copper and cobalt in reserves," Wright said.

Company-wide Lundin reported proven and probable reserves of 2.1 million tonnes of copper, 4.9 million tonnes of zinc, 1.4 million tonnes of lead, 169 million ounces of silver, 48,000 tonnes of nickel and 110 tonnes of cobalt.

Total Lundin measured and indicated mineral resources were reported at 3.9 million tonnes of copper, 6.9 million tonnes of zinc, 2 million tonnes of lead, 261 million ounces of silver, 75 tonnes of nickel, and 231 million tonnes of cobalt.

The company is scheduled to release its quarterly results Thursday.

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Wed, 24 Feb 2010 12:20:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/69316/lundin-mining-increases-copper-resources-by-44-4425.html
<![CDATA[News - Lundin Mining sells stake in Ozernoe zinc project to MBC for US$35 million ]]> https://www.proactiveinvestors.co.uk/companies/news/71060/lundin-mining-sells-stake-in-ozernoe-zinc-project-to-mbc-for-us35-million-2454.html Lundin Mining Corp (TSX: LUN) said completed the sale of its 49 percent stake in the Ozernoe zinc project in Russia to its former partner, MBC Resources Ltd, for US$35 million, terminating all of Lundin Mining's rights and obligations related to the project.

The company has received US$3.5 million, and the remainder is payable over 10 months. It expects a write-down of approximately US$17 million on the disposal.

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Fri, 18 Sep 2009 15:41:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/71060/lundin-mining-sells-stake-in-ozernoe-zinc-project-to-mbc-for-us35-million-2454.html
<![CDATA[News - Lundin Mining results hit badly by drop in base metal prices ]]> https://www.proactiveinvestors.co.uk/companies/news/69964/lundin-mining-results-hit-badly-by-drop-in-base-metal-prices-1022.html
Lundin Mining Corp reported net loss for the fourth quarter widening to US$728.5 million from US$ 436.6 million a year earlier, saying the magnitude and speed of the fall in base metal prices since September resulted in a very difficult fourth quarter to the end of December 2008.

In the fourth quarter, sales plummeted to US$43.5 million from US$253.1 million a year earlier.  For the full year, net loss widened to US$957.1 million from a US$154.2 million loss in 2007.

However, it has taken the necessary measures to re-align its operations and it is focusing on its three core assets: Neves-Corvo, Zinkgruvan and Tenke, Lundin said in a statement.

"Neves-Corvo and Zinkgruvan continue to deliver good operational results with steady, low-cost production. We have reduced capital and operating costs, taking care not to impair future production capacity, and expect Neves-Corvo, Zinkgruvan and Aguablanca to be free cash flow positive at today's prices. Tenke is ramping up and will begin producing in the second quarter of 2009, generating cash from operations and only requiring limited capital contributions in 2009,” Lundin said in a statement.

The company is in discussions with its banks to establish a suitable restructured credit facility and believes that once this is established, the company will be well placed to weather the current conditions and respond when the inevitable upturn matwerialises.

 Production for 2009 is expected to be lower than 2008 taking into account the Storliden and Galmoy mine closures in May 2009, increased throughput at Zinkgruvan and slightly lower copper head-grade at Neves-Corvo.  As a result of deferral of capital expenditure, the forecast for first copper ore production from the Zinkgruvan copper deposit of 2010 is under review and may be delayed.

The market outlook remains uncertain with an estimated 80 percent of zinc and over 40 percent of copper producers losing money after taking into account sustaining capital expenditures.

Metal prices are expected to stabilize during 2009 with some potential for minor increases. The longer-term outlook for metal prices remains strong and supply difficulties are expected once world growth resumes, Lundin said.

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Thu, 26 Feb 2009 00:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/69964/lundin-mining-results-hit-badly-by-drop-in-base-metal-prices-1022.html