Lundin Mining Q4 and Full Year 2012 Production Results
TORONTO, ONTARIO, Jan 22, 2013 (Menafn - MARKETWIRE via COMTEX) --Lundin Mining Corporation (omx:LUMI) ("Lundin Mining"or the "Company") reports the following production results for thefourth quarter and full year 2012:
-----------------------------------------------------------------------
-----
Metal ProductionFYQ4
(contained tonnes)20122012
----------------------------------------------------------------------------
Copper, wholly-owned operations63,87814,224
Tenke attributable (24%)38,17210,669
--------------------------------------------------------------------------
Total Copper102,05024,893
Zinc122,20429,161
Lead38,4648,353
Nickel2,3981,705
----------------------------------------------------------------------------
Paul Conibear, President and CEO commented, "We are pleased to achievethe high-end of our production guidance targets for 2012 at each ofour operations. Zinkgruvan had a particularly successful year withnew records set for production of zinc, lead and copper. Tenke alsoset new copper production records as Phase II expanded facilitiescame on line. All of our assets are very well positioned to deliver asolid performance again this year."
Segmented production and guidance is as follows:
-----------------------------------------------------------------------
-----
2013 Guidance
-------------------------
ProductionProductionC1 Cost
(contained tonnes)ResultsGuidanceProduction(b,c)
----------------------------------------------------------------------------
CopperNeves- Corvo58,55955,000-60,00050,000-55,0001.80/lb
Zinkgruvan3,0593,000-4,0002,500-3,500
Aguablanca2,2601,500-2,0004,500-5,000
------------------------------------------------------------------
Wholly-owned63,87859,500-66,00057,000-63,500
Tenke (@24%)38,17236,20044,650(a)1.03/lb
------------------------------------------------------------------
Total
attributable102,05095,700-102,200 101,650-108,150
ZincNeves-Corvo30,00625,000-30,00045,000-50,000
Zinkgruvan83,20977,000-83,00073,000-78,0000.20/lb
Galmoy (in ore)8,9898,500-9,000nil
------------------------------------------------------------------
Total122,204 110,500-122,000 118,000-128,000
LeadNeves-Corvo87nilnil
Zinkgruvan37,24634,000-39,00033,000-36,000
Galmoy (in ore)1,1311,000-1,100nil
------------------------------------------------------------------
Total38,46435,000-40,10033,000-36,000
NickelAguablanca2,3981,500-2,0005,000-5,5005.00/lb
----------------------------------------------------------------------------
a. Freeport has provided 2013 sales guidance which has been assumed to
approximate Tenke's production.
b. Cash costs remain dependent upon exchange rates (eur/usd:1.30)(usd/sek:6.75) and metal prices (cu:3.50)(zn:0.95)(ni:8.00)(co:12.00).
c. Cash cost is a non-GAAP measure reflecting the sum of direct costs less
by-product credits.
Operational Commentary
--Neves-Corvo: Total copper production exceeded the original guidance for
the year, however overall grade of copper ore was lower than planned due
to an exceptional quantity of lower grade but profitable "Out of
Reserve" ore that was encountered and mined but was not part of the
original mineral reserve estimate. Approximately 42% of the copper ore
mined in 2012 was Out of Reserve. In the new copper mining zone of
Lombador, 57% of the material mined was Out of Reserve. Overall for
2012, Out of Reserve material graded an average of 1.75% copper as
compared to the Reserve material mined which graded 3.28% copper. Net
benefits of mining and processing this Out of Reserve material include
an extended mine life and overall long term higher aggregate revenues.
Underground drilling will be increased significantly for 2013 to better
define the extent of mineralization not currently in the reserve
estimates and mine plans.
Despite the lower than planned feed grades, Neves-Corvo copper plant
performance was excellent with 88.2% recovery achieved. Ramp-up of the
zinc plant continued in the quarter, with throughput approximately 75%
higher than the prior quarter and record quarterly, and annual, zinc
metal production was generated.
--Zinkgruvan: As expected, lower zinc and lead grades were realized in the
fourth quarter, though the impact on metal production was partially
mitigated by higher volumes processed than the prior two quarters and
continued high recovery performance in the process plant. Zinc, copper
and lead grades and plant recoveries met and in some cases were better
than originally anticipated. Zinkgruvan finished the year with record
production of zinc, lead and copper metal in concentrate.
--Aguablanca: Processing operations re-commenced in August, with full
production achieved earlier than planned in the fourth quarter of 2012,
resulting in higher than expected nickel and copper metal in concentrate
production. Grades mined and plant recoveries achieved for both nickel
and copper were slightly better than expected.
--Galmoy: Mining production from remnant ores exceeded expectations for
the year. Mining ceased in the fourth quarter of 2012, though processing
of stockpiled ore, by a third party processing facility, will continue
into 2013. The mine closure plan has been approved by regulating
authorities.
--Tenke: During 2012, Tenke achieved record mining and production rates
facilitated by the staged commissioning of Phase II expansion
facilities. The Phase II expansion is substantially complete, on
schedule and on budget. By year end, the expanded facilities were
operating near full Phase II design capacity and as reported by Freeport
as Operator, overall fourth quarter production of 44,452 tonnes of
copper cathode was 91% of the expanded annual design capacity of 195,000
tpa copper cathode. Freeport has provided 2013 metal sales guidance of
186,000 tonnes of copper cathode and 13,600 tonnes of cobalt (contained
in cobalt hydroxide product).
Details of operating statistics by mine, by quarter and for the yearfollow in the attached table:
2012 Operating Statistics
----------------------------------------------------------------------------
TotalQ4Q3Q2Q1
----------------------------------------------------------------------------
Neves-Corvo
----------------------------------------------------------------------------
Ore mined, copper
(000 tonnes)2,507648577638644
Ore mined, zinc (000
tonnes)530178107132113
Ore milled, copper
(000 tonnes)2,512648597634633
Ore milled, zinc (000
tonnes)543181104135123
----------------------------------------------------------------------------
Grade per tonne
Copper (%)2.62.22.72.82.9
Zinc (%)7.37.17.27.27.6
----------------------------------------------------------------------------
Recovery
Copper (%)88.285.686.090.091.1
Zinc (%)71.070.571.272.869.6
----------------------------------------------------------------------------
Concentrate grade
Copper (%)23.923.624.223.924.0
Zinc (%)47.347.046.648.147.3
----------------------------------------------------------------------------
Production (contained
metal)
Copper (tonnes)58,55911,98814,01215,95016,609
Zinc (tonnes)30,0069,5335,8347,6197,020
Lead (tonnes)873948--
Zinkgruvan
----------------------------------------------------------------------------
Ore mined, zinc (000
tonnes)954251189251263
Ore mined, copper
(000 tonnes)15740464427
Ore milled, zinc (000
tonnes)998254216241287
Ore milled, copper
(000 tonnes)14529484919
----------------------------------------------------------------------------
Grade per tonne
Zinc (%)9.18.210.110.77.7
Lead (%)4.43.84.74.84.3
Copper (%)2.32.52.02.23.0
----------------------------------------------------------------------------
Recovery
Zinc (%)91.789.291.993.591.8
Lead (%)85.484.888.085.383.8
Copper (%)91.892.690.691.693.4
----------------------------------------------------------------------------
Concentrate grade
Zinc (%)54.154.554.654.553.0
Lead (%)74.773.474.076.274.9
Copper (%)25.124.724.325.925.7
----------------------------------------------------------------------------
Production (contained
metal)
Zinc (tonnes)83,20918,70320,05324,02220,431
Lead (tonnes)37,2468,1988,9539,74710,348
Copper (tonnes)3,059673864986536
Galmoy
----------------------------------------------------------------------------
Ore mined (000
tonnes)1421543579
Ore milled (000
tonnes)18819616939
----------------------------------------------------------------------------
Production (contained
metal)
Zinc (tonnes)8,9899252,5653315,168
Lead (tonnes)1,13111636433618
----------------------------------------------------------------------------
Operating Statistics
----------------------------------------------------------------------------
TotalQ4Q3Q2Q1
----------------------------------------------------------------------------
Aguablanca
----------------------------------------------------------------------------
Ore mined (000
tonnes)75536819814841
Ore milled (000
tonnes)577368209--
----------------------------------------------------------------------------
Grade per tonne
Nickel (%)0.50.50.4--
Copper (%)0.40.50.4--
----------------------------------------------------------------------------
Recovery
Nickel (%)81.382.878.1--
Copper (%)91.492.987.7--
----------------------------------------------------------------------------
Concentrate grade
Nickel (%)6.86.86.7--
Copper (%)6.46.36.8--
----------------------------------------------------------------------------
Production (contained
metal)
Nickel (tonnes)2,3981,705693--
Copper (tonnes)2,2601,563697--
About Lundin Mining
Lundin Mining Corporation is a diversified base metals mining companywith operations in Portugal, Sweden, Spain and Ireland, producingcopper, zinc, lead and nickel. In addition, Lundin Mining holds a 24%equity stake in the world-class Tenke Fungurume copper/cobalt mine inthe Democratic Republic of Congo.
On Behalf of the Board,
Paul Conibear, President and CEO
Forward Looking Statements
Certain of the statements made and information contained herein is"forward-looking information" within the meaning of the OntarioSecurities Act. Forward-looking statements are subject to a varietyof risks and uncertainties which could cause actual events or resultsto differ from those reflected in the forward-looking statements,including, without limitation, risks and uncertainties relating toforeign currency fluctuations; risks inherent in mining includingenvironmental hazards, industrial accidents, unusual or unexpectedgeological formations, ground control problems and flooding; risksassociated with the estimation of mineral resources and reserves andthe geology, grade and continuity of mineral deposits; thepossibility that future exploration, development or mining resultswill not be consistent with the Company's expectations; the potentialfor and effects of labour disputes or other unanticipateddifficulties with or shortages of labour or interruptions inproduction; actual ore mined varying from estimates of grade,tonnage, dilution and metallurgical and other characteristics; theinherent uncertainty of production and cost estimates and thepotential for unexpected costs and expenses, commodity pricefluctuations; uncertain political and economic environments; changesin laws or policies, foreign taxation, delays or the inability toobtain necessary governmental permits; and other risks anduncertainties, including those described under Risk Factors Relatingto the Company's Business in the Company's Annual Information Formand in each management discussion and analysis. Forward-lookinginformation is in addition based on various assumptions including,without limitation, the expectations and beliefs of management, theassumed long term price of copper, nickel, lead and zinc; that theCompany can access financing, appropriate equipment and sufficientlabour and that the political environment where the Company operateswill continue to support the development and operation of miningprojects. Should one or more of these risks and uncertaintiesmaterialize, or should underlying assumptions prove incorrect, actualresults may vary materially from those described in forward-lookingstatements. Accordingly, readers are advised not to place unduereliance on forward-looking statements.
Contacts:
Lundin Mining Corporation
Sophia Shane
Investor Relations North America
1-604-689-7842
Lundin Mining Corporation
John Miniotis
Senior Business Analyst
1-416-342-5565
Lundin Mining Corporation
Robert Eriksson
Investor Relations Sweden
46 8 545 015 50
SOURCE: Lundin Mining Corporation
Copyright 2013 Marketwire, Inc., All rights reserved.
