Corporate UpdateMay 2015
Caution Regarding Forward-Looking Information
This presentation contains forward-looking information, including, but not limited to, guidance on estimated annual production and cash costs. This forward-looking information is not based on historical facts, but rather on current expectations and projections about future events and is subject to risks and uncertainties. Any statements not including historical facts are forward-looking statements and may be identified by terminology such as “believe,” “budget,” “continue,” “can,” “estimate,”
Cautionary Statements
forward-looking statements and may be identified by terminology such as “believe,” “budget,” “continue,” “can,” “estimate,” “expect,” “intend,” “likely,” “should,” “target,” “will” and any similar expressions.
Forward-looking statements involve known and unknown risks and uncertainties, and as such, they are not guarantees of future performance. Actual results may differ materially from those projected in the forward-looking statements. Potential risks leading to differing results include, without limitation: fluctuation to foreign currency rates, change in commodity prices, industry risks, drilling results, labour disputes or difficulties resulting in labour shortages or interruptions in production, environmental risks, political risks including changes in national or local government legislation, taxation, or regulation, climate and weather related risks, diminishing quantities or grades of reserves, operating or technical difficulties with mining or development activities, and increased costs, delays or suspensions.
Readers are cautioned that many of the assumptions on which the Company’s forward-looking statements are based are likely to change. Lundin cautions that it does not have any intention to update forward-looking statements as a result of new information,future changes, or otherwise.
For further details of other risks and uncertainties see Risk Factors Relating to the Company’s Business in the Company’s Annual For further details of other risks and uncertainties see Risk Factors Relating to the Company’s Business in the Company’s Annual Information Form and Management ‘s Discussion and Analysis.
Note: All dollar amounts are in US dollars unless otherwise denoted.
2
Zinkgruvan (100%)Zinkgruvan (100%)
Diversified Assets: Americas, Europe and Africa
Freeport Cobalt (24%)Freeport Cobalt (24%)Zinc-Lead-Copper
(Sweden) Cobalt Refinery
(Finland)
Eagle (100%) Eagle (100%)
Aguablanca (100%) Aguablanca (100%) Neves-Corvo (100%)Neves-Corvo (100%)
Nickel-Copper
(USA)
Copper-Zinc
(Portugal)
Nickel-Copper
(Spain)
3
Tenke Fungurume (24%)Tenke Fungurume (24%)
Candelaria (80%) Candelaria (80%)
Copper-Gold-Silver
(Chile) Copper-Cobalt
(DRC)
• 7 underground mines and 1 large open pit
• Pacific port facility and desalination plant
• Equity stake in Tenke and Kokkola Refinery
Q1-15 Highlights – Excellent Start to Year
Production and Costs Outperformed Expectations
� Copper: Production achieved a new quarterly record and exceeded expectations
� Zinc: Production met expectations supported by higher zinc grades from the � Zinc: Production met expectations supported by higher zinc grades from the
Lombador deposit at Neves-Corvo
� Nickel: Production achieved a new quarterly record and exceeded expectations.
Eagle surpassed expectations on throughput, grades & recoveries
� Cash Costs: Outperformed expectations. Annual guidance has been improved at
all operations with the exception of Candelaria and Eagle which will be reviewed
and updated as appropriate at the end of Q2and updated as appropriate at the end of Q2
4
Q1 - 15 Operating Results – New Records Set
Record Quarterly Sales Levels for Copper and Nickel
5
Revenue Breakdown by Mine and Metal
For the quarter, 72% of Sales were from Candelaria and Eagle
Sales Breakdown by Mine Sales Breakdown by Metal
6
Cash Cost Summary
$1.00
$2.00
$3.00
$4.00
$/l
b C
u
2015 Cash Costs - Copper
Candelaria
$1.20Neves-Corvo
$1.39
Tenke
$1.26
Very Competitive Q1/15 Cash Costs Across All Operations
$0.00
$1.00
5%
15
%
19
%
24
%
36
%
43
%
52
%
56
%
63
%
66
%
70
%
74
%
76
%
78
%
80
%
84
%
86
%
90
%
92
%
93
%
94
%
96
%
98
%
99
%
$/l
b C
u
-$6.00
-$3.00
$0.00
$3.00
$6.00
$9.00
14
.0%
22
.1%
29
.1%
33
.0%
36
.5%
44
.2%
47
.4%
51
.1%
54
.1%
57
.5%
64
.7%
68
.6%
74
.3%
78
.2%
84
.9%
96
.7%
98
.4%
99
.7%
$/l
b N
i
2015 Cash Costs - Nickel
Aguablanca$0.91 Eagle $1.45
7
$0.00
$0.50
$1.00
$1.50
12
%
22
%
27
%
34
%
39
%
48
%
54
%
58
%
61
%
68
%
72
%
78
%
84
%
88
%
91
%
93
%
95
%
98
%
10
0%
$/l
b Z
n
2015 Cash Costs - Zinc
Zinkgruvan
$0.42
-$6.00
Source: Cost curves from Wood Mackenzie as of Q1 2015. Cash cost curves are based on the expected annual costs for 2015, whereas quarterly costs have been highlighted for LUN assets for illustrative purposes.
Impact to Copper Production (kt)
Transformational Production Growth - Copper
Percentage Increase over 2013: 125 % 109% 101%
Candelaria is Expected to More Than Double our Copper Production Profile in 2015
132113
105
138
264
245235
150
200
250
300
Lundin excl. Candelaria Candelaria (80%)
Percentage Increase over 2013: 125 % 109% 101%
102117 115
132 132 130
23102
117
0
50
100
150
2012 Actual 2013 Actual 2014 Actual 2015 Estimate 2016 Estimate 2017 Estimate
Notes: Production estimate for 2015 based on mid-point of guidance range provided in Q1/2015 MD&A. Production estimates for 2016 and 2017 based on mid-point of guidance ranges provided in the
Company’s 3-yr operating outlook announced on Dec. 4, 2014. Copper profile includes attributable production from Tenke Fungurume and Candelaria (where applicable).8
(2)
Increase in Zinc Production (kt)
Significant Production Growth - Zinc & Nickel
Percentage Increase over 2013: 21% 18% 23%
Increase in Nickel Production (kt)
Percentage Increase over 2013: 325% 250% 200%
Excellent Production Growth Expected For Both Zinc and Nickel
145 151 147154
80
100
120
140
160
Total Zinc Production
Percentage Increase over 2013: 21% 18% 23%
34
20.0
25.0
30.0
35.0
40.0
Total Nickel Production
Percentage Increase over 2013: 325% 250% 200%
122 125
145
0
20
40
60
2012 Actual 2013 Actual 2014 Actual 2015
Estimate
2016
Estimate
2017
Estimate
9
2
8
13
34
28
24
0.0
5.0
10.0
15.0
2012 Actual 2013 Actual 2014 Actual 2015
Estimate
2016
Estimate
2017
Estimate
Notes: Production estimate for 2015 based on mid-point of guidance range provided in Q1/2015 MD&A. Production estimates for 2016 and 2017 based on mid-point of guidance ranges provided in the
Company’s 3-yr operating outlook announced on Dec. 4, 2014.
Strong Financial Position & Outlook
US$ M
Net Debt Balance 1 (Apr 29, 2015) $630
Available Credit Facilities $350
Net Cash Balance Expected to Grow Rapidly From Strong Free Cash Flows
Available Credit Facilities $350
(1) The Company’s Senior Secured Notes comprise of: $550 million at 7.5% due in 2020, and $450 million at 7.875% due in 2022
(2) Consensus estimates sourced from Bloomberg on May 5, 2015
10
Continued Focus on Cash Generation & Asset Optimization
• Continue successful production ramp-up at Eagle
• Optimize mine plan at Candelaria with aim of improving 5-year
Priorities for 2015 – Strong Focus on Operations
• Optimize mine plan at Candelaria with aim of improving 5-year
production profile
• Foster improved margins at European operations
• Aggressive exploration focus at Candelaria and Eagle and continue
exploration at European operations
• Maintain a strong balance sheet with a growing net cash balance• Maintain a strong balance sheet with a growing net cash balance
11
Operations & Outlook
Candelaria (80%)
Eagle (100%)
Neves-Corvo (100%)
Zinkgruvan (100%)Zinkgruvan (100%)
Aguablanca (100%)
Tenke Fungurume (24%)
12
Candelaria (Cu/Au/Ag), Chile
13Atacama Province, Region III, approximately 650 km north of Santiago
Location Chile
Ownership 80%
2015 Production Guidance (80%)
130,000-135,000 t Cu
Candelaria – Q1 2015 Results & Outlook
• Production (49.4kt Cu) surpassed expectations
aided by high throughput and excellent
recoveriesGuidance (80%)
2015 Cost Guidance
$1.55/lb Cu
Expected Mine Life
+15 years Cu
• Cash costs averaged $1.20/lb Cu due to lower
mining and milling costs, favourable FX rates
and higher production levels
• Focus also remains on continuing to contribute
to flood relief efforts in a meaningful way
• Construction of new tailings facility expected
to start in H2/15, following receipt of permits
49.4
1.20
1.40
1.60
1.80
2.00
40
50
60
Ca
sh C
ost
($
/lb
Cu
)
ton
ne
s)1
to start in H2/15, following receipt of permits
• Five year mine plan optimization is underway
with results due to be announced in Q3/15
14
28.6
0.00
0.20
0.40
0.60
0.80
1.00
1.20
0
10
20
30
Q1-14 Q2-14 Q3-14 Q4-14 Q1-15
Ca
sh C
ost
($
/lb
Cu
)
Pro
du
ctio
n (
k t
on
ne
s
Copper Cash Cost (right axis)
1Production in the chart for Q4/14 is shown solely for the period of LUN ownership from Nov. 3 – Dec. 31st.
Eagle Mine (Ni/Cu), Michigan, U.S.A.
50 km northwest of Marquette in the Upper Peninsula of Michigan15
Location Michigan, USA
Ownership 100%
2015Production
25,000–28,000 t Ni20,000–23,000 t Cu
Eagle Mine – Q1 2015 Results & Outlook
• Nickel and copper production (7.3kt Ni,
6.4kt Cu) exceeded expectations due to
high throughput, grades and recoveriesProduction Guidance
20,000–23,000 t Cu
2015 CostGuidance
$2.00/lb Ni
Mine Life 8 years
• Performing consistently at design rates
or above on all key parameters
• Costs averaged $1.45/lb Ni due to strong
production figures and targeted cost
savings
• Exploration focussed on Eagle East
7.3
6.4
2.00
2.50
3.00
5
6
7
8
Ca
sh C
ost
($
/lb
Ni)
Pro
du
ctio
n (
k t
on
ne
s)
16
0.2
4.1
0.3
3.6
0.00
0.50
1.00
1.50
0
1
2
3
4
5
Q1-14 Q2-14 Q3-14 Q4-14 Q1-15
Ca
sh C
ost
($
/lb
Ni)
Pro
du
ctio
n (
k t
on
ne
s)
Nickel Copper Cash Cost (right axis)
Neves-Corvo (Cu/Zn), Portugal
Situated 220 km southeast of Lisbon 17
Location Portugal
Ownership 100%
2015 Production Guidance
50,000–55,000 t Cu68,000–73,000 t Zn
Neves-Corvo – Q1 2015 Results & Outlook
• Strong copper production (15.5kt) reflects high
grades and recoveries achieved from bulk
stopesGuidance
68,000–73,000 t Zn4,000-5,000 t Pb
2015 Cost Guidance
$1.60/lb Cu
Mine Life +10 years Cu + Zn
• Zinc production (17.3kt) increased as +50% of
ore is sourced from the higher grade
Lombador deposit
• Cash costs of $1.39/lb Cu were better than
expected and annual guidance has been
improved
• Feasibility study on zinc expansion scheduled
12.813.5
10.9
14.215.5
14.2
17.9 17.917.3 17.3
$1.50
$2.00
$2.50
12
14
16
18
20
Ca
sh C
ost
($
/lb
Cu
)
Pro
du
ctio
n (
k t
on
ne
s)
• Feasibility study on zinc expansion scheduled
for completion mid-2015
18
10.9
$-
$0.50
$1.00
$1.50
0
2
4
6
8
10
12
Q1-14 Q2-14 Q3-14 Q4-14 Q1-15
Ca
sh C
ost
($
/lb
Cu
)
Pro
du
ctio
n (
k t
on
ne
s)
Copper Zinc Cash Cost (right axis)
Zinkgruvan (Zn/Pb/Cu), Sweden
Situated 200 km southwest of Stockholm19
Location Sweden
Ownership 100%
2015 Production
78,000–82,000 t Zn27,000–30,000 t Pb
Zinkgruvan – Q1 2015 Results & Outlook
• Zinc production (18.4kt) met expectations as
higher throughput and recoveries were
offset by lower gradesProduction Guidance
27,000–30,000 t Pb2,000–3,000 t Cu
2015 Cost Guidance
$0.35/lb Zn
Mine Life +10 years
• Lead and copper production (7.4kt Pb, 0.6kt
Cu) were impacted by low head grades
• Cash costs of $0.42/lb Zn were in-line with
guidance, as higher unit costs were offset by
favourable FX rates
• Cash cost guidance has been modestly
improved for the year
19.2 19.320.1
19.118.4
$0.50
$0.60
$0.70
$0.80
15
20
25
Ca
sh C
ost
($
/lb
Zn
)
Pro
du
ctio
n (
k t
on
ne
s)
improved for the year
20
9.1 9.2
6.57.5 7.4
$-
$0.10
$0.20
$0.30
$0.40
$0.50
0
5
10
15
Q1-14 Q2-14 Q3-14 Q4-14 Q1-15
Ca
sh C
ost
($
/lb
Zn
)
Pro
du
ctio
n (
k t
on
ne
s)
Zinc Lead Cash Cost (right axis)
Aguablanca (Ni/Cu), Spain
Situated 80 km north of Seville21
Location Spain
Ownership 100%
2015 Production Guidance
7,000–7,500 t Ni5,500–6,000 t Cu
Aguablanca – Q1 2015 Results & Outlook
• Nickel and copper production (2.7kt Ni,
2.1kt Cu) achieved a historical quarterly
recordGuidance
5,500–6,000 t Cu
2015 Cost Guidance
$3.75/lb Ni
Mine Life ~4 years
• Production from the open pit was
completed in April
• Underground stope production is
expected to commence in Q2
• Cash costs of $0.91/lb Ni were
significantly better than expected1.7
1.8 1.92.0
2.12.0
2.2
2.0
2.5
2.7
$4.00
$5.00
$6.00
$7.00
2
2.5
3
Ca
sh C
ost
($
/lb
Ni)
Pro
du
ctio
n (
k t
on
ne
s)
• Production and cost guidance have all
been improved for the year
22
1.7
$-
$1.00
$2.00
$3.00
$4.00
0
0.5
1
1.5
Q1-14 Q2-14 Q3-14 Q4-14 Q1-15
Ca
sh C
ost
($
/lb
Ni)
Pro
du
ctio
n (
k t
on
ne
s)
Copper Nickel Cash Cost (right axis)
Tenke Fungurume (Cu/Co), DRC
Situated 175 km northwest of Lubumbashi23
LocationDemocratic Republic of
Congo
Ownership 24%
2015 Production Guidance (attributable share)
49,500 t Cu
Tenke – Q1 2015 Results & Outlook
• Production (100% basis) of 52.7kt copper
was positively impacted by high grades
and milling exceeding design capacity
• Cash costs averaged $1.26/lb Cu (attributable share)
2015 Costs $1.26/lb Cu
Expected Mine Life
+40 years
• Cash costs averaged $1.26/lb Cu
• Construction of 2nd sulphuric acid plant
on schedule for completion in 2016
• 2015 cash distribution is now expected
to be approximately $20 million 49.551.9 52.9
48.4
52.7
$1.00
$1.20
$1.40
$1.60
40
50
60
Ca
sh C
ost
($
/lb
Cu
)
Pro
du
ctio
n (
k t
on
ne
s)
24
3.0 3.4 3.5 3.4 3.3
$-
$0.20
$0.40
$0.60
$0.80
0
10
20
30
Q1-14 Q2-14 Q3-14 Q4-14 Q1-15
Ca
sh C
ost
($
/lb
Cu
)
Pro
du
ctio
n (
k t
on
ne
s)
Copper Cobalt Cash Cost (right axis)
Geographic and base metal diversificationGeographic and base metal diversification
Lundin Mining Summary
Exploration potential at all existing assets
Portfolio of high quality, long-life mines Portfolio of high quality, long-life mines
No high risk capital projectsNo high risk capital projects
Priorities for 2015 – optimize current operations Priorities for 2015 – optimize current operations
25