Lundin Mining Q2 2025 presentation: Net debt slashed to $135M, copper production on track

Introduction & Market Context

Lundin Mining (OTC:LUNMF) Corporation (TSX:LUN) released its Q2 2025 financial results on August 7, 2025, highlighting a transformative quarter marked by significant debt reduction and steady production performance. The company continues to advance its strategic goal of becoming a global top 10 copper producer, capitalizing on strong copper market fundamentals.

The quarter was defined by the completion of the European asset sale, which dramatically improved the company’s balance sheet position while allowing management to sharpen focus on its copper-rich operations in the Americas.

Quarterly Performance Highlights

Lundin Mining reported solid production figures for Q2 2025, with 80 kt of copper and 38 koz of gold produced. The company’s nickel production from the Eagle mine reached 2.7 kt during the quarter. These results keep Lundin on track to meet its full-year guidance ranges of 303-330 kt for copper and 135-150 koz for gold.

As shown in the following production results chart, the company has maintained relatively consistent copper output over recent quarters:

Revenue for the quarter totaled $937 million, with copper remaining the dominant contributor at 82% of total revenue. Gold accounted for 11%, while nickel, molybdenum, and other metals made up the remaining 7%. By operation, Candelaria contributed 43% of revenue, followed by Caserones at 34%, Chapada at 16%, and Eagle at 6%.

The following chart illustrates the revenue breakdown by metal and mine:

Detailed Financial Analysis

Lundin Mining delivered strong financial results in Q2 2025, reporting adjusted EBITDA of $395 million and adjusted operating cash flow of $277 million. The company achieved a consolidated C1 cash cost of $1.92/lb for copper, demonstrating effective cost management across its operations.

The company’s volume sold and realized pricing trends are illustrated in the following chart, showing the relationship between production volumes, metal prices, and revenue:

The most significant financial development was the dramatic improvement in Lundin’s balance sheet position. Net debt was reduced from $1,442 million as of March 31, 2025, to just $135 million by June 30, 2025. This transformation was primarily driven by the $1,315 million in net cash proceeds from the sale of the company’s European assets (Neves-Corvo and Zinkgruvan).

The following waterfall chart demonstrates the company’s debt reduction journey during Q2:

With a total credit facility of $1.75 billion and only $235 million drawn as of June 30, Lundin Mining now enjoys substantial liquidity headroom of $1.5 billion, providing significant financial flexibility for future growth initiatives.

Strategic Initiatives

Lundin Mining continues to advance its Vicuña project, which represents a cornerstone of the company’s growth strategy. The recently completed Mineral Resource Estimate for Vicuña revealed substantial resources of 38 Mt copper, 81 Moz gold, and 1.4 Boz silver, underscoring the project’s world-class potential.

The high-grade core of the Vicuña resource is particularly impressive, as detailed in the following resource estimate:

The company is making steady progress with the Vicuña project, with ongoing drilling at Filo del Sol, updated environmental impact assessment for Josemaria submitted in Q2, and preparations underway for RIGI (Régimen de Incentivo para Grandes Inversiones) application in Argentina. An integrated technical report for the project is expected in Q1 2026.

Beyond Vicuña, Lundin Mining is targeting organic growth from its existing operations, projecting an additional 30-40 kt of annual copper production and 60-70 koz of gold production over the next 3-5 years. This growth trajectory is illustrated in the following chart:

Forward-Looking Statements

Lundin Mining reaffirmed its production guidance for 2025, with copper production expected to range between 303-330 kt and gold production between 135-150 kt. The company’s year-to-date production figures suggest it is well-positioned to meet these targets.

Management expressed confidence in the company’s operational discipline and financial position, emphasizing that Lundin Mining is well-positioned for the future. The company’s strategic vision remains focused on becoming a top-tier copper producer of global scale, leveraging its existing asset base and the transformative potential of the Vicuña project.

The following conclusion slide summarizes the company’s current position and outlook:

With copper prices remaining robust and the company’s significantly improved balance sheet, Lundin Mining appears well-positioned to execute its growth strategy while maintaining financial flexibility. The completion of the European asset sale marks a pivotal moment in the company’s evolution toward becoming a premier copper producer with a concentrated portfolio of high-quality assets in the Americas.

Full presentation:

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