Culpeo Minerals Limited (“Culpeo” or the “Company”) (ASX:CPO, OTCQB:CPORF) is pleased to report significant widths of visible copper mineralisation have been intersected at very shallow depth at the El Quillay Prospect, Fortuna Project (the Project), Chile.
HIGHLIGHTS
Figure 1: Shallow visible copper mineralisation intersected over 40m in drillhole CMEQD002.
Culpeo Minerals’ Managing Director, Max Tuesley, commented:
“It is a fantastic result to immediately intersect visible copper so near to surface with our first two diamond holes at El Quillay North. This validates our initial work and confirms the prospectivity of this very exciting target. It also highlights the vast potential of the extensive El Quillay mineralised corridor, dominated by a wide, approximately 3km long zone, of outcropping copper mineralisation, the majority of which remains undrilled.”
We were always excited by what we saw on the ground at El Quillay North, which is now confirmed by the multiple zones of visible copper mineralisation in the drill core. Mineralisation is spatially associated with specular haematite and albite alteration, interpreted to be the part of an Iron Oxide Copper-Gold (IOCG) hydrothermal system.”
EL QUILLAY NORTH DRILLING PROGRAM
Broad 40m zone of copper mineralisation has been intersected from 15m, including an approximate 25m downhole zone of very strong copper sulphide mineralisation from 30m (CMEQD002). This provides visual confirmation that the high-grade copper-gold mineralisation recognised from historic underground sampling (refer ASX announcement 11 September 2023) extends down plunge and remains open in all directions.
Visual estimates of copper sulphides logged in CMEQD002 are presented in Table 1 (photos presented in Figures 2 and 3).
Figure 2: Examples of oxide copper mineralisation in drillhole CMEQD002 (15 – 30m downhole), A – Breccia hosted malachite and chrysocolla mineralisation 21.4m, B – Infill malachite and chrysocolla mineralisation 15.45m, C – Vein hosted malachite mineralisation 19.5m.
Figure 3: Examples of sulphide copper mineralisation in drillhole CMEQD002 (30 – 55m downhole). A – Infill chalcopyrite and pyrite mineralisation 51.5m, B – Vein hosted chalcopyrite mineralisation 43.8m, C – Disseminated chalcopyrite mineralisation 53.1m.
Culpeo notes this is based on a visual inspection only and the samples are yet to be assayed or analysed. The Company anticipates the release of assay results in respect of the visual estimates to occur on or around mid-January 2024.
Note: In relation to the disclosure of visual mineralisation, the Company cautions that visual estimates of mineral abundance should never be considered a proxy or substitute for laboratory analyses where concentrations or grades are the factor of principal economic interest. Assay results are required to determine the actual widths and grade of the visible mineralisation. Visual estimates also potentially provide no information regarding impurities or deleterious physical properties relevant to valuations.
A 23m zone of copper mineralisation from 20m down hole has also been intersected in diamond hole CMEQD001. Post mineralisation faulting was logged at 36m downhole and future drilling will target offsets to mineralisation to the east and west. Visual estimates of copper sulphides logged in CMEQD001 are presented in Table 2.
In both holes the near surface mineralisation was dominated by malachite and chrysocolla. In the primary zone the main copper mineralisation was in the form of chalcopyrite and to a lesser extent bornite.
Click here for the full ASX Release
This article includes content from Culpeo Minerals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Culpeo Minerals (ASX:CPO, OTCQB:CPORF) is a copper-focused Australian exploration and development company with a portfolio of Chilean assets. The company’s projects are focused on Chile’s Coastal Cordillera Belt, where the Lana Corina, Culpeo’s flagship asset, presents significant opportunities for further exploration with high-grade copper and molybdenum mineralization. ’–– The recent acquisition of the Fortuna Project just 10 kilometres north of Lana Corina has increased the company's exploration tenure by 400 percent and has enabled the company to identify multiple out-cropping copper targets.
Chile leads the world in copper production by a wide margin, contributing 28 percent of global copper production. Comparatively Peru, in second place, contributes less than half as much at 11 percent. Earning the top spot is partially a result of Chile’s natural deposits, but the country’s significant output is a testament to its mining-friendly regulations.
Exploration work at Lana Corina, to date, has returned high-grade assay results for both copper and molybdenum. Assays have indicated a grade of over 1 percent copper equivalent, and up to 15,000 parts per million (ppm) molybdenum. The presence of molybdenum creates an additional future revenue source and increases the value of the project.
Molybdenum is roughly ten times the value of copper by weight as it is a strategic metal used in industries that require durable steels, such as catalytic converters on vehicles and various military applications.
Lana Corina contains higher-than-average molybdenum grades, as is typically seen when co-occurring with copper, further enhancing the asset's potential. The company has already completed 7,000 meters of drilling on the project, with additional opportunities to increase the footprint of known mineralization.
Much of the company’s portfolio is within the Coastal Cordillera Belt, which hosts medium-sized, high-grade copper deposits estimated at 50 to 100 million tonnes at 1 percent copper equivalent. The copper within this belt is typically higher grade than the prolific copper porphyry deposits in the Andes.
In August 2023, Culpeo acquired an 80 percent interest in the Fortuna Project, approximately 10 kilometers north of its existing Lana Corina Copper and Molybdenum Project in the highly prospective Coastal Belt of Chile. The company later secured an additional tenement package at Fortuna, increasing its land package to 4,500 hectares.
A management team with expertise throughout the mining industry leads the company toward fully exploring its promising portfolio and increasing shareholder value.
The Lana Corina project is within the Coastal Cordillera region in Chile. This past-producing asset is highly prospective to become a world-class project as exploration continues. Culpeo has already completed its maiden drill campaign and is now moving towards its Phase 2 drill campaign.
Spanning 4,025 hectares, the Fortuna Project tenements are located 10 kilometers north of Lana Corina consisting of seven additional groups of prospects: La Florida, El Quillay North, El Quillay Central, Elquillay South, Vaca Muerta, Piedra Dura and Lucero. Extensive outcropping copper mineralisation and historic mining operations are present throughout the project area.
Historic channel sampling at drill-ready Vaca Muerta returned with 150 meters @ 1.31 percent copper equivalent (CuEq); 102 meters @ 1.25 percent CuEq; and 173 meters @ 0.86 percent CuEq. Fortuna also has four high-priority outcropping targets: Vaca Muerta, Piedra Dura, La Florida and El Quillay. Mine records show approximately 200,000 tonnes @ 2 percent copper extracted historically.
Max Tuesley is a geologist with 30 years of experience in base metal/gold exploration and mining. He has a proven track record of successful project and team management, both within Australia and Internationally, working on projects in Mongolia, Sudan, Laos, and the Philippines. Tuesley spent seven years with Xstrata in senior management roles with a focus on its Australian Copper Operations, including the Ernest Henry IOCG project.
He holds a Bachelor of Science from The Queensland University of Technology and an Honors Degree in economic geology from James Cook University. He is a member of the AusIMM.
Geoff McNamara has 30 years of international resource sector experience as a geologist, project manager, and fund manager. He previously worked in private equity (FUM US$800 million) and was director of Societe General’s mining finance team in New York. Operational roles included project manager, senior mine geologist, and mine geologist for Ivanhoe Mines, Lion Ore International, and Western Mining Corporation. McNamara is the co-founder of Tesoro Gold, where he also currently sits as non-executive director. Tesoro Gold discovered the El Zorro Gold Project in Chile.
Zeffron Reeves is a geologist with over 20 years of experience in the resource sector working on projects from greenfields exploration, discovery, definition and feasibility, construction, and production to closure.
Reeves is currently co-founder and managing director of Tesoro Resources, which recently discovered the highly prospective El Zorro gold project in Chile. He was also managing director of ASX-listed Kopore Metals (previously, Metallum), which also had some development and operational projects in Chile. He has held senior management positions with Cleveland Mining and Ashburton Minerals, developing projects in Brazil.
Reeves has a Bachelor of Applied Geology (Honors), and a Master of Business Administration from Curtin University, and is a member of the Australia Institute of Geoscientists.
Paul Schmiede is a mining engineer with over 25 years experience in mining, exploration and business and corporate development. He has had direct exposure to gold and base metal commodities in a range of jurisdictions, including Australia, Burkina Faso and the Democratic Republic of Congo (DRC). He is currently vice-president of corporate development for TSX-V-listed Sarama Resources, which has development-stage gold assets in Burkina Faso. Prior to that, he was vice-president of operations and project development at Moto Goldmines, where he managed the pre-feasibility, bankable and definitive feasibility study for the more-than-22-million-ounce DRC-based Moto Gold Project (now Kibali Gold). Before joining Moto Goldmines, he held senior operational and management positions with Gold Fields Ltd and WMC Resources Ltd where he was responsible for underground and open pit operations as well as project development and planning.
Schmiede holds a first-class mine managers certificate (Western Australia), a Bachelor of Engineering (Mining) degree, and is a fellow of the Australasian Institute of Mining and Metallurgy.
Sergio Uribe is an administrative, management and development professional with experience in Chile. He has worked on numerous resource projects from greenfield exploration, discovery, production, closure, retreatment, and tailings reclamation. Part of the development team with Fortescue Metals Group during the development of its Pilbara mining operations, he has 10 years of resource sector experience. Uribe has represented numerous foreign companies investing in resource projects in Chile and was the commercial manager of Metallum Chile, where he was involved in the acquisition and development of their operation in Chile. Before this, he was general manager of Acorn Mining Chile and country manager for Cleveland Mining Chile.
Uribe has a business management degree from Universidad del Desarrollo and is a member of the civil police and a military reserve officer.
(all amounts in US dollars, unless otherwise noted)
Ero Copper Corp. (TSX: ERO, NYSE: ERO) ("Ero" or the "Company") is pleased to announce its operating and financial results for the three months ended March 31, 2024. Management will host a conference call tomorrow, Wednesday, May 8, 2024, at 11:30 a.m. eastern time to discuss the results. Dial-in details for the call can be found near the end of this press release.
HIGHLIGHTS
(*) These are non-IFRS measures and do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. Please refer to the Company's discussion of Non-IFRS measures in its Management's Discussion and Analysis for the three months ended March 31, 2024 and the Reconciliation of Non-IFRS Measures section at the end of this press release.
"The Xavantina Operations continued to exceed our expectations during the first quarter, achieving record gold production driven by favorable grade reconciliations that have continued into the second quarter," said David Strang, Chief Executive Officer. "This trend has allowed us to increase our full-year gold production guidance, which we expect will translate to achieving the lower end of our 2024 gold cost guidance.
"Our first quarter financial results also showcase Xavantina's strong performance and reflect the sale of copper concentrate inventories carried over from the fourth quarter of 2023 at the Caraíba Operations. Combined with a strengthening gold and copper price environment, we are off to a solid start to 2024.
"I am also delighted to report that commissioning is advancing ahead of schedule at the Tucumã Project, and we expect to achieve first production early in the third quarter. With copper fundamentals stronger than ever, we are committed to maintaining our momentum and are excited as we near a significant inflection point in our growth trajectory."
FIRST QUARTER REVIEW
Figure 1: The Tucumã Project's flotation circuit and tailings thickener (May 2024).
Figure 2: Tailings thickener at the Tucumã Project (May 2024).
Figure 3: Exposed sulphide ore at the Tucumã Project (May 2024).
SUBSEQUENT EVENTS
To support the commencement of production and associated working capital needs at the Tucumã Project, the Company entered into a $50.0 million non-priced copper prepayment facility in May 2024, structured by the Bank of Montreal and with participation by CIBC Capital Markets. This facility will be repaid over 27 equal monthly installments, beginning in October 2024, through the delivery of 272 tonnes of copper each month. Should any delivery exceed the monthly amortization payment of $2.1 million based on prevailing market prices, the excess value will be repaid to the Company.
Through the end of 2024, the Company has the option to increase the size of the non-priced copper prepayment facility from $50.0 million to $75.0 million.
OPERATING AND FINANCIAL HIGHLIGHTS
| 2024 - Q1 | 2023 - Q4 | 2023 - Q1 | ||||||||||
| Operating Information | ||||||||||||
| Copper (Caraíba Operations) | ||||||||||||
| Ore Processed (tonnes) | 853,371 | 812,202 | 772,548 | |||||||||
| Grade (% Cu) | 1.08 | 1.59 | 1.33 | |||||||||
| Cu Production (tonnes) | 8,091 | 11,760 | 9,327 | |||||||||
| Cu Production (000 lbs) | 17,838 | 25,926 | 20,564 | |||||||||
| Cu Sold in Concentrate (tonnes) | 9,461 | 11,429 | 9,464 | |||||||||
| Cu Sold in Concentrate (000 lbs) | 20,859 | 25,197 | 20,865 | |||||||||
| Cu C1 cash cost (1)(2) | $ | 2.30 | $ | 1.75 | $ | 1.89 | ||||||
| Gold (Xavantina Operations) | ||||||||||||
| Ore Processed (tonnes) | 37,834 | 34,416 | 35,763 | |||||||||
| Grade (g / tonne) | 16.38 | 17.18 | 11.85 | |||||||||
| Au Production (oz) | 18,234 | 16,867 | 12,443 | |||||||||
| Au C1 cash cost (1) | $ | 395 | $ | 413 | $ | 436 | ||||||
| Au AISC (1) | $ | 797 | $ | 991 | $ | 946 | ||||||
| Financial Highlights ($ in millions, except per share amounts) | ||||||||||||
| Revenues | $ | 105.8 | $ | 116.4 | $ | 101.0 | ||||||
| Gross profit | 31.2 | 41.9 | 40.1 | |||||||||
| EBITDA (1) | 17.8 | 73.7 | 48.1 | |||||||||
| Adjusted EBITDA (1) | 43.3 | 50.3 | 44.5 | |||||||||
| Cash flow from operations | 17.2 | 49.4 | 16.4 | |||||||||
| Net (loss) income | (6.8 | ) | 37.1 | 24.5 | ||||||||
| Net (loss) income attributable to owners of the Company | (7.1 | ) | 36.5 | 24.2 | ||||||||
| Per share (basic) | (0.07 | ) | 0.37 | 0.26 | ||||||||
| Per share (diluted) | (0.07 | ) | 0.37 | 0.26 | ||||||||
| Adjusted net income attributable to owners of the Company (1) | 16.8 | 20.7 | 22.5 | |||||||||
| Per share (basic) | 0.16 | 0.21 | 0.24 | |||||||||
| Per share (diluted) | 0.16 | 0.21 | 0.24 | |||||||||
| Cash, cash equivalents, and short-term investments | 51.7 | 111.7 | 236.6 | |||||||||
| Working (deficit) capital (1) | (28.6 | ) | 25.7 | 218.8 | ||||||||
| Net debt (1) | 415.1 | 314.5 | 174.2 | |||||||||
(1) EBITDA, adjusted EBITDA, adjusted net income (loss) attributable to owners of the Company, adjusted net income (loss) per share attributable to owners of the Company, net (cash) debt, working capital, copper C1 cash cost, copper C1 cash cost including foreign exchange hedges, gold C1 cash cost and gold AISC are non-IFRS measures. These measures do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. Please refer to the Company's discussion of Non-IFRS measures in its Management's Discussion and Analysis for the three months ended March 31, 2024 and the Reconciliation of Non-IFRS Measures section at the end of this press release.
(2) Copper C1 cash cost including foreign exchange hedges (per lb) in Q1 2024 was $2.28, compared to $1.84 in Q1 2023.
2024 PRODUCTION AND COST GUIDANCE (*)
Following record operating performance at the Xavantina Operations during the quarter, the Company is increasing its 2024 gold production guidance from 55,000 to 60,000 ounces to a range of 60,000 to 65,000 ounces. The Company expects mined and processed gold grades to remain above plan through the remainder of H1 2024, as positive grade reconciliations have continued into Q2 2024. While this trend may continue beyond Q2 2024, the Company is projecting a reversion to long-term block model grades for planned mining areas in H2 2024. As a result of higher full-year production expectations, the Company is guiding towards the low end of its full-year cost guidance for the Xavantina Operations.
Consolidated copper production of 59,000 to 72,000 tonnes in concentrate is expected to be weighted towards H2 2024, largely due to the anticipated commencement of production at the Tucumã Project in early Q3 2024. Consequently, consolidated copper C1 cash costs are projected to be lower in H2 2024 versus H1 2024.
The Company's updated cost guidance for 2024 assumes a foreign exchange rate of 5.00 BRL per USD, a gold price of $1,900 per ounce and a silver price of $23.00 per ounce.
| Previous Guidance | Updated Guidance | |||
| Consolidated Copper Production (tonnes) | ||||
| Caraíba Operations | 42,000 - 47,000 | Unchanged | ||
| Tucumã Operations | 17,000 - 25,000 | Unchanged | ||
| Total | 59,000 - 72,000 | Unchanged | ||
| Consolidated Copper C1 Cash Costs (1) Guidance | ||||
| Caraíba Operations | $1.80 - $2.00 | Unchanged | ||
| Tucumã Operations | $0.90 - $1.10 | Unchanged | ||
| Total | $1.50 - $1.75 | Unchanged | ||
| The Xavantina Operations | ||||
| Au Production (ounces) | 55,000 - 60,000 | 60,000 - 65,000 | ||
| Gold C1 Cash Cost (1) Guidance | $550 - $650 | Low End of Range | ||
| Gold AISC (1) Guidance | $1,050 - $1,150 | Low End of Range |
* Guidance is based on certain estimates and assumptions, including but not limited to, mineral reserve estimates, grade and continuity of interpreted geological formations and metallurgical performance. Please refer to the Company's most recent Annual Information Form and Management of Risks and Uncertainties in the MD&A for complete risk factors.
(1) Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within the MD&A.
2024 CAPITAL EXPENDITURE GUIDANCE (*)
Full-year capital expenditures are projected to range from $299 to $349 million, including an estimated $30 to $40 million allocated to consolidated exploration programs. As the Company nears completion of the Tucumã Project, capital expenditures are expected to decrease in Q2 2024 compared to Q1 2024 and be weighted towards H1 2024.
Capital expenditure guidance assumes an exchange rate of 5.10 USD:BRL for the Tucumã Project based on designated foreign exchange hedges with a weighted average ceiling and floor of 5.10 and 5.23 USD:BRL, respectively. All other capital expenditures assume an exchange rate of 5.00 USD:BRL. Figures presented below are in USD millions.
| Caraíba Operations | ||
| Growth | $80 - $90 | |
| Sustaining | $100 - $110 | |
| Total, Caraíba Operations | $180 - $200 | |
| Tucumã Project | ||
| Growth | $65 - $75 | |
| Capitalized Ramp-Up Costs | $4 - $6 | |
| Sustaining | $2 - $5 | |
| Total, Tucumã Project | $71 - $86 | |
| Xavantina Operations | ||
| Growth | $3 - $5 | |
| Sustaining | $15 - $18 | |
| Total, Xavantina Operations | $18 - $23 | |
| Consolidated Exploration Programs | $30 - $40 | |
| Company Total | ||
| Growth | $148 - $170 | |
| Capitalized Ramp-Up Costs | $4 - $6 | |
| Sustaining | $117 - $133 | |
| Exploration | $30 - $40 | |
| Total, Company | $299 - $349 |
(*) Guidance is based on certain estimates and assumptions, including but not limited to, mineral reserve estimates, grade and continuity of interpreted geological formations and metallurgical performance. Please refer to the Company's most recent Annual Information Form and Management of Risks and Uncertainties in the MD&A for complete risk factors.
CONFERENCE CALL DETAILS
The Company will hold a conference call on Wednesday, May 8, 2024 at 11:30 am Eastern time (8:30 am Pacific time) to discuss these results.
| Date: | Wednesday, May 8, 2024 |
| Time: | 11:30 am Eastern time (8:30 am Pacific time) |
| Dial in: | Canada/USA: 1-844-763-8274, International: +1-647-484-8814 please dial in 5-10 minutes prior and ask to join the call |
| Pre-Register: | Registration link (https://dpregister.com/DiamondPassRegistration/register?confirmationNumber=10023373&linkSecurityString=f82a87e37a) (pre-register to bypass the live operator queue) |
| Replay: | Canada/USA: 1-855-669-9658, International: +1-604-674-8052 |
| Replay Passcode: | 0848 |
Reconciliation of Non-IFRS Measures
Financial results of the Company are presented in accordance with IFRS. The Company utilizes certain alternative performance (non-IFRS) measures to monitor its performance, including copper C1 cash cost, copper C1 cash cost including foreign exchange hedges, gold C1 cash cost, gold AISC, EBITDA, adjusted EBITDA, adjusted net income attributable to owners of the Company, adjusted net income per share, net (cash) debt, working capital and available liquidity. These performance measures have no standardized meaning prescribed within generally accepted accounting principles under IFRS and, therefore, amounts presented may not be comparable to similar measures presented by other mining companies. These non-IFRS measures are intended to provide supplemental information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
For additional details please refer to the Company's discussion of non-IFRS and other performance measures in its Management's Discussion and Analysis for the three months ended March 31, 2024 which is available on SEDAR+ at www.sedarplus.ca, and on EDGAR at www.sec.gov.
Copper C1 cash cost and copper C1 cash cost including foreign exchange hedges
The following table provides a reconciliation of copper C1 cash cost to cost of production, its most directly comparable IFRS measure.
| Reconciliation: | 2024 - Q1 | 2023 - Q4 | 2023 - Q1 | |||||||||
| Cost of production | $ | 42,227 | $ | 39,790 | $ | 36,285 | ||||||
| Add (less): | ||||||||||||
| Transportation costs & other | 1,252 | 1,853 | 1,339 | |||||||||
| Treatment, refining, and other | 5,170 | 7,332 | 6,463 | |||||||||
| By-product credits | (2,440 | ) | (3,394 | ) | (2,810 | ) | ||||||
| Incentive payments | (1,199 | ) | (1,693 | ) | (1,237 | ) | ||||||
| Net change in inventory | (3,893 | ) | 1,434 | (1,185 | ) | |||||||
| Foreign exchange translation and other | (7 | ) | 20 | 15 | ||||||||
| C1 cash costs | 41,110 | 45,342 | 38,870 | |||||||||
| (Gain) loss on foreign exchange hedges | (276 | ) | (4,185 | ) | (932 | ) | ||||||
| C1 cash costs including foreign exchange hedges | $ | 40,834 | $ | 41,157 | $ | 37,938 | ||||||
| Mining | $ | 25,256 | $ | 26,646 | $ | 23,210 | ||||||
| Processing | 7,177 | 8,177 | 6,554 | |||||||||
| Indirect | 5,947 | 6,581 | 5,453 | |||||||||
| Production costs | 38,380 | 41,404 | 35,217 | |||||||||
| By-product credits | (2,440 | ) | (3,394 | ) | (2,810 | ) | ||||||
| Treatment, refining and other | 5,170 | 7,332 | 6,463 | |||||||||
| C1 cash costs | 41,110 | 45,342 | 38,870 | |||||||||
| (Gain) loss on foreign exchange hedges | (276 | ) | (4,185 | ) | (932 | ) | ||||||
| C1 cash costs including foreign exchange hedges | $ | 40,834 | $ | 41,157 | $ | 37,938 | ||||||
| Costs per pound | ||||||||||||
| Payable copper produced (lb, 000) | 17,838 | 25,926 | 20,564 | |||||||||
| Mining | $ | 1.42 | $ | 1.03 | $ | 1.13 | ||||||
| Processing | $ | 0.40 | $ | 0.32 | $ | 0.32 | ||||||
| Indirect | $ | 0.33 | $ | 0.25 | $ | 0.27 | ||||||
| By-product credits | $ | (0.14 | ) | $ | (0.13 | ) | $ | (0.14 | ) | |||
| Treatment, refining and other | $ | 0.29 | $ | 0.28 | $ | 0.31 | ||||||
| Copper C1 cash costs | $ | 2.30 | $ | 1.75 | $ | 1.89 | ||||||
| (Gain) loss on foreign exchange hedges | $ | (0.02 | ) | $ | (0.16 | ) | $ | (0.05 | ) | |||
| Copper C1 cash costs including foreign exchange hedges | $ | 2.28 | $ | 1.59 | $ | 1.84 | ||||||
Gold C1 cash cost and gold AISC
The following table provides a reconciliation of gold C1 cash cost and gold AISC to cost of production, its most directly comparable IFRS measure.
| Reconciliation: | 2024 - Q1 | 2023 - Q4 | 2023 - Q1 | |||||||||
| Cost of production | $ | 7,255 | $ | 7,122 | $ | 6,107 | ||||||
| Add (less): | ||||||||||||
| Incentive payments | (443 | ) | (386 | ) | (407 | ) | ||||||
| Net change in inventory | 264 | 65 | (352 | ) | ||||||||
| By-product credits | (189 | ) | (248 | ) | (176 | ) | ||||||
| Smelting and refining | 90 | 113 | 76 | |||||||||
| Foreign exchange translation and other | 232 | 296 | 176 | |||||||||
| C1 cash costs | $ | 7,209 | $ | 6,962 | $ | 5,424 | ||||||
| Site general and administrative | 1,353 | 1,492 | 1,232 | |||||||||
| Accretion of mine closure and rehabilitation provision | 92 | 111 | 105 | |||||||||
| Sustaining capital expenditure | 3,254 | 5,499 | 3,013 | |||||||||
| Sustaining lease payments | 2,122 | 1,861 | 1,660 | |||||||||
| Royalties and production taxes | 510 | 785 | 338 | |||||||||
| AISC | $ | 14,540 | $ | 16,710 | $ | 11,772 | ||||||
| Costs | ||||||||||||
| Mining | $ | 3,820 | $ | 3,430 | $ | 2,567 | ||||||
| Processing | 2,259 | 2,315 | 1,905 | |||||||||
| Indirect | 1,229 | 1,352 | 1,052 | |||||||||
| Production costs | 7,308 | 7,097 | 5,524 | |||||||||
| Smelting and refining costs | 90 | 113 | 76 | |||||||||
| By-product credits | (189 | ) | (248 | ) | (176 | ) | ||||||
| C1 cash costs | $ | 7,209 | $ | 6,962 | $ | 5,424 | ||||||
| Site general and administrative | 1,353 | 1,492 | 1,232 | |||||||||
| Accretion of mine closure and rehabilitation provision | 92 | 111 | 105 | |||||||||
| Sustaining capital expenditure | 3,254 | 5,499 | 3,013 | |||||||||
| Sustaining leases | 2,122 | 1,861 | 1,660 | |||||||||
| Royalties and production taxes | 510 | 785 | 338 | |||||||||
| AISC | $ | 14,540 | $ | 16,710 | $ | 11,772 | ||||||
| Costs per ounce | ||||||||||||
| Payable gold produced (ounces) | 18,234 | 16,867 | 12,443 | |||||||||
| Mining | $ | 209 | $ | 203 | $ | 206 | ||||||
| Processing | $ | 124 | $ | 137 | $ | 153 | ||||||
| Indirect | $ | 67 | $ | 80 | $ | 85 | ||||||
| Smelting and refining | $ | 5 | $ | 7 | $ | 6 | ||||||
| By-product credits | $ | (10 | ) | $ | (14 | ) | $ | (14 | ) | |||
| Gold C1 cash cost | $ | 395 | $ | 413 | $ | 436 | ||||||
| Gold AISC | $ | 797 | $ | 991 | $ | 946 | ||||||
Earnings before interest, taxes, depreciation and amortization (EBITDA) and Adjusted EBITDA
The following table provides a reconciliation of EBITDA and Adjusted EBITDA to net income, its most directly comparable IFRS measure.
| Reconciliation: | 2024 - Q1 | 2023 - Q4 | 2023 - Q1 | |||||||||
| Net (Loss) Income | $ | (6,830 | ) | $ | 37,052 | $ | 24,500 | |||||
| Adjustments: | ||||||||||||
| Finance expense | 4,634 | 5,284 | 6,526 | |||||||||
| Finance income | (1,468 | ) | (1,989 | ) | (4,138 | ) | ||||||
| Income tax (recovery) expense | (1,853 | ) | 8,415 | 4,666 | ||||||||
| Amortization and depreciation | 23,296 | 24,980 | 16,506 | |||||||||
| EBITDA | $ | 17,779 | $ | 73,742 | $ | 48,060 | ||||||
| Foreign exchange loss (gain) | 18,996 | (24,871 | ) | (8,621 | ) | |||||||
| Share based compensation | 6,545 | 477 | 5,017 | |||||||||
| Unrealized (gain) loss on copper derivatives | (64 | ) | 955 | — | ||||||||
| Adjusted EBITDA | $ | 43,256 | $ | 50,303 | $ | 44,456 | ||||||
Adjusted net income attributable to owners of the Company and Adjusted net income per share attributable to owners of the Company
The following table provides a reconciliation of Adjusted net income attributable to owners of the Company and Adjusted EPS to net income attributable to the owners of the Company, its most directly comparable IFRS measure.
| Reconciliation: | 2024 - Q1 | 2023 - Q4 | 2023 - Q1 | |||||||||
| Net (loss) income as reported attributable to the owners of the Company | $ | (7,141 | ) | $ | 36,549 | $ | 24,154 | |||||
| Adjustments: | ||||||||||||
| Share based compensation | 6,545 | 477 | 5,017 | |||||||||
| Unrealized foreign exchange loss (gain) on USD denominated balances in MCSA | 11,257 | (10,308 | ) | (4,753 | ) | |||||||
| Unrealized foreign exchange loss (gain) on foreign exchange derivative contracts | 9,304 | (9,852 | ) | (3,152 | ) | |||||||
| Unrealized (gain) loss on copper derivative contracts | (64 | ) | 951 | — | ||||||||
| Tax effect on the above adjustments | (3,128 | ) | 2,932 | 1,208 | ||||||||
| Adjusted net income attributable to owners of the Company | $ | 16,773 | $ | 20,749 | $ | 22,474 | ||||||
| Weighted average number of common shares | ||||||||||||
| Basic | 102,769,444 | 98,099,791 | 92,294,045 | |||||||||
| Diluted | 103,242,437 | 98,482,755 | 93,218,281 | |||||||||
| Adjusted EPS | ||||||||||||
| Basic | $ | 0.16 | $ | 0.21 | $ | 0.24 | ||||||
| Diluted | $ | 0.16 | $ | 0.21 | $ | 0.24 | ||||||
Net (Cash) Debt
The following table provides a calculation of net (cash) debt based on amounts presented in the Company's condensed consolidated interim financial statements as at the periods presented.
| March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||
| Current portion of loans and borrowings | $ | 16,059 | $ | 20,381 | $ | 9,221 | |||||
| Long-term portion of loans and borrowings | 450,743 | 405,852 | 401,595 | ||||||||
| Less: | |||||||||||
| Cash and cash equivalents | (51,692 | ) | (111,738 | ) | (209,908 | ) | |||||
| Short-term investments | — | — | (26,739 | ) | |||||||
| Net debt (cash) | $ | 415,110 | $ | 314,495 | $ | 174,169 | |||||
Working Ca pital and Available Liquidity
The following table provides a calculation for these based on amounts presented in the Company's condensed consolidated interim financial statements as at the periods presented.
| March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||
| Current assets | $ | 129,960 | $ | 199,487 | $ | 331,241 | |||||
| Less: Current liabilities | (158,565 | ) | (173,800 | ) | (112,448 | ) | |||||
| Working (deficit) capital | $ | (28,605 | ) | $ | 25,687 | $ | 218,793 | ||||
| Cash and cash equivalents | 51,692 | 111,738 | 209,908 | ||||||||
| Short-term investments | — | — | 26,739 | ||||||||
| Available undrawn revolving credit facilities | 105,000 | 150,000 | 150,000 | ||||||||
| Available liquidity | $ | 156,692 | $ | 261,738 | $ | 386,647 | |||||
ABOUT ERO COPPER CORP
Ero is a high-margin, high-growth, low carbon-intensity copper producer with operations in Brazil and corporate headquarters in Vancouver, B.C., Canada. The Company's primary asset is a 99.6% interest in the Brazilian copper mining company, Mineração Caraíba S.A. ("MCSA"), 100% owner of the Company's Caraíba Operations (formerly known as the MCSA Mining Complex), which are located in the Curaçá Valley, Bahia State, Brazil and include the Pilar and Vermelhos underground mines and the Surubim open pit mine, and the Tucumã Project (formerly known as Boa Esperança), an IOCG-type copper project located in Pará, Brazil. The Company also owns 97.6% of NX Gold S.A. ("NX Gold") which owns the Xavantina Operations (formerly known as the NX Gold Mine), comprised of an operating gold and silver mine located in Mato Grosso, Brazil. Additional information on the Company and its operations, including technical reports on the Caraíba Operations, Xavantina Operations and Tucumã Project, can be found on the Company's website (www.erocopper.com), on SEDAR+ (www.sedarplus.ca), and on EDGAR (www.sec.gov). The Company's shares are publicly traded on the Toronto Stock Exchange and the New York Stock Exchange under the symbol "ERO".
FOR MORE INFORMATION, PLEASE CONTACT
Courtney Lynn, SVP, Corporate Development, Investor Relations & Sustainability
(604) 335-7504
info@erocopper.com
CAUTION REGARDING FORWARD LOOKING INFORMATION AND STATEMENTS
This press release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation (collectively, "forward-looking statements"). Forward-looking statements include statements that use forward-looking terminology such as "may", "could", "would", "will", "should", "intend", "target", "plan", "expect", "budget", "estimate", "forecast", "schedule", "anticipate", "believe", "continue", "potential", "view" or the negative or grammatical variation thereof or other variations thereof or comparable terminology. Forward-looking statements may include, but are not limited to, statements with respect to the Company's expected production, operating costs and capital expenditures at the Caraíba Operations, the Tucumã Project and the Xavantina Operations; estimated completion dates for certain milestones, including the commissioning timeline and initial production at the Tucumã Project; a continuation of elevated gold grades at the Xavantina Operations; and any other statement that may predict, forecast, indicate or imply future plans, intentions, levels of activity, results, performance or achievements.
Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual results, actions, events, conditions, performance or achievements to materially differ from those expressed or implied by the forward-looking statements, including, without limitation, risks discussed in this press release and in the Company's Annual Information Form for the year ended December 31, 2023 ("AIF") under the heading "Risk Factors". The risks discussed in this press release and in the AIF are not exhaustive of the factors that may affect any of the Company's forward-looking statements. Although the Company has attempted to identify important factors that could cause actual results, actions, events, conditions, performance or achievements to differ materially from those contained in forward-looking statements, there may be other factors that cause results, actions, events, conditions, performance or achievements to differ from those anticipated, estimated or intended.
Forward-looking statements are not a guarantee of future performance. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements involve statements about the future and are inherently uncertain, and the Company's actual results, achievements or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to herein and in the AIF under the heading "Risk Factors".
The Company's forward-looking statements are based on the assumptions, beliefs, expectations and opinions of management on the date the statements are made, many of which may be difficult to predict and beyond the Company's control. In connection with the forward-looking statements contained in this press release and in the AIF, the Company has made certain assumptions about, among other things: favourable equity and debt capital markets; the ability to raise any necessary additional capital on reasonable terms to advance the production, development and exploration of the Company's properties and assets; future prices of copper, gold and other metal prices; the timing and results of exploration and drilling programs; the accuracy of any mineral reserve and mineral resource estimates; the geology of the Caraíba Operations, the Xavantina Operations and the Tucumã Project being as described in the respective technical report for each property; production costs; the accuracy of budgeted exploration, development and construction costs and expenditures; the price of other commodities such as fuel; future currency exchange rates and interest rates; operating conditions being favourable such that the Company is able to operate in a safe, efficient and effective manner; work force continuing to remain healthy in the face of prevailing epidemics, pandemics or other health risks, political and regulatory stability; the receipt of governmental, regulatory and third party approvals, licenses and permits on favourable terms; obtaining required renewals for existing approvals, licenses and permits on favourable terms; requirements under applicable laws; sustained labour stability; stability in financial and capital goods markets; availability of equipment; positive relations with local groups and the Company's ability to meet its obligations under its agreements with such groups; and satisfying the terms and conditions of the Company's current loan arrangements. Although the Company believes that the assumptions inherent in forward-looking statements are reasonable as of the date of this press release, these assumptions are subject to significant business, social, economic, political, regulatory, competitive and other risks and uncertainties, contingencies and other factors that could cause actual actions, events, conditions, results, performance or achievements to be materially different from those projected in the forward-looking statements. The Company cautions that the foregoing list of assumptions is not exhaustive. Other events or circumstances could cause actual results to differ materially from those estimated or projected and expressed in, or implied by, the forward-looking statements contained in this press release. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Forward-looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or results or otherwise, except as and to the extent required by applicable securities laws.
CAUTIONARY NOTES REGARDING MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES
Unless otherwise indicated, all reserve and resource estimates included in this press release and the documents incorporated by reference herein have been prepared in accordance with National Instrument 43-101, Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") — CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the "CIM Standards"). NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission (the "SEC"), and reserve and resource information included herein may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, this press release and the documents incorporated by reference herein use the terms "measured resources," "indicated resources" and "inferred resources" as defined in accordance with NI 43-101 and the CIM Standards.
Further to recent amendments, mineral property disclosure requirements in the United States (the "U.S. Rules") are governed by subpart 1300 of Regulation S-K of the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") which differ from the CIM Standards. As a foreign private issuer that is eligible to file reports with the SEC pursuant to the multi-jurisdictional disclosure system (the "MJDS"), Ero is not required to provide disclosure on its mineral properties under the U.S. Rules and will continue to provide disclosure under NI 43-101 and the CIM Standards. If Ero ceases to be a foreign private issuer or loses its eligibility to file its annual report on Form 40-F pursuant to the MJDS, then Ero will be subject to the U.S. Rules, which differ from the requirements of NI 43-101 and the CIM Standards.
Pursuant to the new U.S. Rules, the SEC recognizes estimates of "measured mineral resources", "indicated mineral resources" and "inferred mineral resources". In addition, the definitions of "proven mineral reserves" and "probable mineral reserves" under the U.S. Rules are now "substantially similar" to the corresponding standards under NI 43-101. Mineralization described using these terms has a greater amount of uncertainty as to its existence and feasibility than mineralization that has been characterized as reserves. Accordingly, U.S. investors are cautioned not to assume that any measured mineral resources, indicated mineral resources, or inferred mineral resources that Ero reports are or will be economically or legally mineable. Further, "inferred mineral resources" have a greater amount of uncertainty as to their existence and as to whether they can be mined legally or economically. Under Canadian securities laws, estimates of "inferred mineral resources" may not form the basis of feasibility or pre-feasibility studies, except in rare cases. While the above terms under the U.S. Rules are "substantially similar" to the standards under NI 43-101 and CIM Standards, there are differences in the definitions under the U.S. Rules and CIM Standards. Accordingly, there is no assurance any mineral reserves or mineral resources that Ero may report as "proven mineral reserves", "probable mineral reserves", "measured mineral resources", "indicated mineral resources" and "inferred mineral resources" under NI 43-101 would be the same had Ero prepared the reserve or resource estimates under the standards adopted under the U.S. Rules.
Figures accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/513b9f06-c814-4f6b-9950-a06e33b34540
https://www.globenewswire.com/NewsRoom/AttachmentNg/c9d5ede1-7233-4061-b519-42a445637b59
https://www.globenewswire.com/NewsRoom/AttachmentNg/11f4eba4-600f-464b-ab33-9040d376868c
News Provided by GlobeNewswire via QuoteMedia
As previously advised, the Company secured a drill rig at short notice and completed a single RC drill hole at the high-priority Blackfriars prospect, within the Gidji JV Project (“Gidji”).
GJRC028 was drilled beneath aircore hole GJAC627 (1m @ 11.8g/t Au and 6g/t Ag EOH) and planned to intersect the dolerite footwall contact but was abandoned at 130m due to difficult drilling conditions associated with running sands in the overlying Gidji Paleochannel.
The hole intersected a quartz-dolerite unit, similar to the >2 million ounce Paddington gold deposit along strike to the north, with significant sulphide mineralisation and quartz-carbonate stringer veins from 113m downhole (Figure 1).
Samples of the last three metres before the hole was abandoned contain anomalous gold, silver and antimony along with the increase in sulphide mineralisation (Table 2).
Figure 1. Examples of quartz-dolerite with sulphides (field of view ~20mm).
Miramar’s Executive Chairman, Mr Allan Kelly, said the Blackfriars target remained untested at this stage.
“Frustratingly, we had to abandon the hole just when it was starting to look interesting,” he said.
“The reason that the Gidji Project has remained underexplored for so long, despite its prime location on a major highway between two major gold camps, is due in large part to the presence of extensive transported cover and the Gidji Paleochannel,” Mr Kelly said.
“This makes drilling more challenging than in other parts of the Goldfields but also means that any potentially significant bedrock gold mineralisation remains undiscovered,” he said.
“Given the favourable geology and structural setting, and the amount of shallow gold we have outlined from aircore drilling so far, we still believe Gidji has the potential to host significant bedrock gold mineralisation in one or more deposits,” he added.
Click here for the full ASX Release
This article includes content from Miramar Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Governments worldwide have ambitious goals to reach net-zero emissions, putting renewable energy in the spotlight. Every emerging clean technology has one material in common: copper. Thanks to its highly conductive properties, the base metal has been a standard component in existing electronics, and global electrification will increase demand drastically. As a result, copper consumption is forecasted to reach 36.6 million metric tons by 2031.
Western Copper and Gold Corporation (TSX:WRN,NYSE American:WRN) is ideally positioned to leverage this trend. It is currently focused on developing Canada’s premier copper-gold project - the Casino project. The deposit is located in the Yukon Territory, which ranks among the world's most attractive mining jurisdictions.
The Yukon is known for its rich mineral deposits, including copper, gold, iron, silver and lead. It has attracted the attention of numerous major mining companies over the last few years, and recent infrastructure funding from the regional and federal governments has spurred additional investment in the territory. Miners in the Yukon, including Western Copper and Gold, are poised to benefit from this spate of new investments. The Carmacks Bypass, for example, is currently being constructed and will play an integral role in the Casino project.
In June 2022, Western Copper and Gold released the results of its feasibility study, which incorporated an updated mineral resource. The updated estimate includes 14.8 million ounces (Moz) of gold in the measured and indicated category, and 6.3 Moz of gold in the inferred category, in addition to 7.6 billion lbs of copper in the measured and indicated category, and 3.1 billion lbs of copper in the inferred category.
Western Copper and Gold’s positive feasibility study on the Casino project indicates a 27-year mine life and cash flow over the first four years of C$951 million per year at base case prices. In addition, the company has provided estimates for potential economic changes in copper prices and indicated the project will remain profitable even if the spot price decreases.
“Casino is a rare asset in that it is sizable, economic, well-advanced and located in a great jurisdiction. Casino is the key asset in the emerging Yukon gold district,” said Paul West-Sells, Western Copper and Gold’s president.
Western Copper and Gold’s 2023 diamond drilling program involvedapproximately 2,244 meters of drilling in seven drill holes, ranging from 130 meters to 556 meters in depth located inside the current pit boundaries. Results from the program showed relatively higher grades encountered from DDH23-05, which intersected 158.5 meters of supergene mineralization, in part oxidized, with 0.82 percent copper equivalent. Fifteen composite samples that represent supergene and hypogene mineralization at various grades will be tested and results will be used to develop a more detailed geometallurgical model of the deposit.
Rio Tinto (NYSE:RIO) made a strategic C$25.6-million investment in 2021 to advance the Casino project. The placement, which was completed in 2024, allowed Rio Tinto to acquire 239,528 common shares of the company for C$1.35 per share for a total of C$323,363, resulting in approximately 9.7 percent ownership.
Additionally, the company announced the completion of a C$21.3 million strategic equity investment by Mitsubishi Materials Corporation to further advance the company's copper-gold Casino project in the Yukon. Mitsubishi Materials acquired 8,091,390 common shares of the company for C$2.63 per share, resulting in Mitsubishi Materials owning approximately 5 percent of Western's issued and outstanding shares.
Western Copper and Gold has entered into an amended agreement with Eight Capital, in which Eight Capital will buy 21,055,000 common shares for $1.90 per common share for gross proceeds of C$40 million. Net proceeds from the sale will be used to advance permitting and engineering activity at the Casino project.
A highly knowledgeable management team with a proven record of success leads Western Copper and Gold and is supported by a highly qualified team of engineers dedicated to bringing Casino into production.
The Casino project is a large porphyry-type copper-gold-molybdenum deposit located 560 kilometers from the year-round port of Skagway, Alaska and 380 kilometers from the capital city of Whitehorse in the Yukon Territory of Canada.
Skagway’s construction of a marine services platform (MSP) to support ore export for the Yukon mining industry.
The company released its positive PFS for the Casino project in June 2022, which considered the project being constructed as an open-pit mine, with a concentrator processing 120,000 tonnes per day (td) to recover copper, gold, molybdenum and silver, as well as a 25,000 td oxide heap leach facility to recover gold, silver and copper.
The PFS examined the development of the Casino project, which includes the processing of 1.43 billion tons of mineral reserve for both the mill and heap leach, with deposition of mill tailings and mine waste in the tailings management facility consistent with the design concepts considered during the best available tailings technology study as a base case development.
The PFS indicated a $2.3-billion after-tax NPV (8 percent) at base case metal prices with an after-tax IRR of 18.1 percent. The cash flow over the first four years is C$951 million per year contemplating a 27-year mine life.
Results from the company’s 2023 drill program, which consisted of seven holes for 2,244 meters ranging from 130 meters to 556 meters in length, show the importance of the core zone wherein relatively higher grades are encountered. A metallurgical test program is underway to develop a more detailed geometallurgical model of the deposit.Dr. Paul West-Sells has more than 30 years of experience in the mining industry. After obtaining his Ph.D. from the University of British Columbia in metallurgical engineering, he worked with BHP, Placer Dome and Barrick in increasingly senior roles in research and development and project development. West-Sells has worked for Western Copper and Gold since 2006, where he held a number of technical and executive positions and is now the president and CEO overseeing the day-to-day operations of the company. West-Sells sits on the Yukon Minerals Advisory Board, the Board of the Yukon Mining Alliance and is also the chair of the Centre for Northern Innovation in Mining Governing Council.
Bill Williams is an economic geologist with nearly 40 years of experience related to the exploration and development of mining and oil & gas projects, as well as oversight of mining operations. He provides consulting services to the mining industry with a focus on company/project (e)valuations, M&A analyses, risk analysis, project management, and permitting strategies. Most recently, he served as the interim CEO and director of Detour Gold Corporation and was a director and COO of Zinc One Resources Inc., with whom he led the team that made the discovery of the Mina Chica zinc-oxide deposit in the Bongará district, north-central Peru. He is the former CEO, president, and director of Orvana Minerals, prior to which he was a vice-president for Phelps Dodge Exploration overseeing activity in the Americas, which included the discovery of the Haquira porphyry copper deposit in Peru, and working on M&A opportunities. He holds a Ph.D. in economic geology from the University of Arizona and is a certified professional geologist.
Sandeep Singh is a highly respected mining professional with 20 years of sector expertise. He was previously the president and CEO of Osisko Gold Royalties, where he led the successful turnaround of the company. For the fifteen years prior, Singh was an investment banker focusing on the North American metals and mining sector with BMO Capital Markets, Dundee Securities, and ultimately co-founding Maxit Capital, a leading independent M&A firm. He has advised numerous mining companies on financing alternatives and strategic matters as well as having acted on some of the most complex and value-enhancing M&A transactions in the mining sector. Singh holds a Bachelor of Mechanical Engineering from Concordia University and a Master of Business Administration from Oxford University.
Varun Prasad has been with Western Copper and Gold since 2011 and most recently served as interim CFO. Prior to that, he was corporate controller for the company. He has extensive experience in financial reporting and regulatory matters. Prasad holds a B.A. Technology (accounting) from British Columbia Institute of Technology and is a member of the Chartered Professional Accountants of BC.
Cameron Brown has 45 years of experience in mineral processing and has been responsible for plant maintenance, project engineering and project management of major base and precious metal projects. He was formerly project manager for Western Silver Corporation and worked for 22 years for Bechtel Mining & Metals in various capacities including: project manager, project engineering manager, and manager of engineering for Bechtel Mining & Metals (Global). He was Western Copper and Gold's project manager from 2006 to 2010, served as vice-president, engineering from 2010 to 2023, and is currently special technical advisor.
Shena Shaw has been managing projects and contributing to environmental assessments across the North for nearly 20 years and she is supporting the Casino Project through the first ever panel review process in the Yukon. Her knowledge and advice helps the company make strategic and effective decisions when planning and implementing Indigenous and community consultation and engagement. After graduating from the University of Victoria with a Bachelor of Arts in anthropology focusing on First Nations studies and geography, Shaw joined the Yukon Chamber of Commerce supporting community-based entrepreneurship programs and services. A relocation to Yellowknife, NWT introduced her to the mining industry for the first time when she joined DeBeers Canada’s Snap Lake Project. Following that, she embarked on a lengthy career in environmental consulting in Yellowknife and Whitehorse, focusing on responsible development of resource extraction through the environmental assessment and Indigenous engagement processes of large-scale projects in the Yukon, NWT, Alaska and across Canada. Shaw participated in the consultation and socio-economic impact assessment work for the Kaminak Coffee Gold Project, Victoria Gold’s Eagle Gold Project and the Casino Project, all based in the Yukon. She is deeply familiar with the Yukon Environmental and Socio-economic Assessment Act process and was involved in the Mackenzie Gas Project Joint Review Panel process in the NWT. Shaw is currently a director for the Yukon Chamber of Mines.
Dr. Klaus Zeitler was the founder and CEO of Inmet from 1987 to 1996. Zeitler was senior vice-president of Teck Cominco Limited from 1997 until 2002, and previously was on the board of directors of Teck Corp. from 1981 to 1997, and Cominco Limited from 1986 to 1996. Zeitler is currently director and executive chairman of Amerigo Resources Ltd. and lead director of Rio2 Limited.
Tara Christie has over 20 years of experience in the exploration and mining business. Currently the president and CEO of Banyan Gold, Christie serves on the boards of Constantine Metal Resources and Klondike Gold. She was formerly the president of privately owned Gimlex Gold Mines, one of the Yukon’s largest placer mining operations. Christie has been a board member of PDAC, AMEBC and other industry associations and was a founding board member of the Yukon environmental and socioeconomic assessment board. She is active in non-profits and charities, including being president of a registered charity “Every Student, Every Day” that works to improve attendance in Yukon schools.
Michael Vitton is the former executive managing director, head, US Equity Sales, Bank of Montreal Capital Markets (BMO Capital Markets), where he originated and placed more than US$200 billion through public and secondary offerings and M&A transactions across all sectors. In the metals and mining sector, Vitton has acted as seed investor, lead/co-lead underwriter or in a M&A capacity in some of the most important deals in the sector, including African Platinum , Arequipa Resources, Bema Gold Brancotte Resources, Comaplex Minerals, Detour Gold, Diamond Fields Resources, Echo Bay Mines, Francisco Gold, Franco-Nevada Gammon Gold, Getchell Gold, among many others. Vitton was also the co-founder of MMX Minerals e Metalicos SA and LLX Logistica SA (Brazil). MMX sold Minas Rio and Amapa assets to Anglo American Corporation for US$5.5 billion in cash in December 2008, returning US$8.8 billion in cash or stock distributions to MMX shareholders, offering six times return from IPO. Additionally, he co-founded Petro Rio SA, one of the leading Brazilian public oil and gas producers, producing over 35,000 bbls per day. Recently, Vitton acted as seed investor and capital markets advisor to Newmarket Gold, which was sold to Kirkland Lake Gold Ltd. for C$1 billion, combining to form a C$2.4-billion company. He acted as investor and capital markets advisor to ASX-listed Gold Road Resources Ltd., raising AU$57 million, and bringing the Gruyere gold mine into production jointly with Gold Fields SA. Vitton is a graduate of the University of Michigan Business School, former seat holder, NYSE, and former president, New York Society of Metals Analysts. Vitton is focused on the energy, infrastructure, industrial and mining sectors.
Western Copper and Gold is a public company that trades in the top stock exchanges in the world, in both the New York Stock Exchange American and the Toronto Stock Exchange under the symbol "WRN".
Western Copper and Gold is an exploration and development mining company advancing its world-class Casino project, one of the largest copper-gold projects in Canada, located in the Yukon. The Casino deposit hosts a significant resource of almost 21 Moz of gold and 11 billion lbs of copper (M+I+I), and robust economics. According to its feasibility study which considered the project being constructed as an open pit mine, Casino has a 27-year mine life, with $2.33 billion NPV after tax, and 3 years payback period. Casino has also attracted strategic investments from Rio Tinto and Mitsubishi Materials, providing Western Copper and Gold access to additional operational funding and technical knowledge.
Western Copper and Gold’s president Paul West-Sells, says, “Casino is a rare asset in that it is sizable, economic, well-advanced and located in a great jurisdiction. Casino is the key asset in the emerging Yukon gold district.” Canada’s Yukon territory ranks among the world's top most attractive mining investment jurisdictions, with major miners like Rio Tinto, Newmont, Agnico-Eagle and Kinross developing projects in Casino's neighbouring areas.
Western Copper and Gold is committed to developing the Casino Project guided by the following four objectives: protect public health and safety; minimize, mitigate or prevent adverse environmental impacts; reclaim the site to a land use state consistent with surrounding conditions; and ensure long-term stability of the spent ore and waste rock storage area and site water quality.
TSX: LUN) (Nasdaq Stockholm: LUMI) Lundin Mining Corporation ("Lundin Mining" or the "Company") today reported its first quarter 2024 financial results. Unless otherwise stated, results are presented in United States dollars on a 100% basis. View PDF
Jack Lundin , President and CEO commented, "Our strategic acquisition of a majority interest in the Caserones copper mine continues to drive revenue and production growth. First quarter revenue and copper production increased 25% and 43%, respectively, compared to the same quarter last year, and was in line with our expectations. Production at Candelaria will be second half weighted due to higher grades as a result of planned mine sequencing. We remain on track to meet our annual production and cash cost guidance."
First Quarter Operational and Financial Highlights
____________________________ |
1 These are non-GAAP measures. Please refer to the Company's discussion of non-GAAP and other performance measures in its Management's Discussion and Analysis ("MD&A") for the three months ended March 31, 2024 and the Reconciliation of Non-GAAP measures section at the end of this news release. |
Summary Financial Results
Three months ended March 31, | ||
US$ Millions (except per share amounts) | 2024 | 2023 |
Revenue | 937.0 | 751.3 |
Gross profit | 185.4 | 213.3 |
Attributable net earnings a | 13.9 | 146.6 |
Net earnings | 58.6 | 165.3 |
Adjusted earnings a,b | 45.2 | 125.7 |
Adjusted EBITDA b | 362.9 | 336.9 |
Basic and diluted earnings per share ("EPS") a | 0.02 | 0.19 |
Adjusted EPS a,b | 0.06 | 0.16 |
Cash provided by operating activities | 267.5 | 211.9 |
Adjusted operating cash flow b | 313.7 | 235.1 |
Adjusted operating cash flow per share b | 0.41 | 0.30 |
Free cash flow from operations b | 67.7 | 71.1 |
Free cash flow b | (1.7) | (34.2) |
Cash and cash equivalents | 365.5 | 184.2 |
Net debt excluding lease liabilities b | 981.4 | 9.1 |
Net debt b | 1,241.9 | 34.6 |
a Attributable to shareholders of Lundin Mining Corporation. | ||
b These are non-GAAP measures. Please refer to the Company's discussion of non-GAAP and other performance measures in its Management's Discussion and Analysis for the three months ended March 31, 2024 and the Reconciliation of Non-GAAP Measures section at the end of this news release. |
___________________________ |
1 These are non-GAAP measures. Please refer to the Company's discussion of non-GAAP and other performance measures in its Management's Discussion and Analysis ("MD&A") for the three months ended March 31, 2024 and the Reconciliation of Non-GAAP measures section at the end of this news release. |
Operational Performance
Total Production
(Contained metal) a | 2024 | 2023 | ||||
Q1 | Total | Q4 | Q3 | Q2 | Q1 | |
Copper (t) b | 88,013 | 314,798 | 103,337 | 89,942 | 60,057 | 61,462 |
Zinc (t) | 45,688 | 185,161 | 50,719 | 49,774 | 36,115 | 48,553 |
Nickel (t) | 3,255 | 16,429 | 3,729 | 4,290 | 4,686 | 3,724 |
Gold (koz) b | 33 | 149 | 44 | 35 | 34 | 36 |
Molybdenum (t) b | 864 | 2,024 | 928 | 1,096 | — | — |
a. Tonnes (t) and thousands of ounces (koz) | ||||||
b. Candelaria and Caserones production is on a 100% basis. | ||||||
Candelaria (80% owned): Candelaria produced 32,527 tonnes of copper and approximately 19,000 ounces of gold in concentrate on a 100% basis in the three months ended March 31, 2024 . Copper and gold production was lower than in the prior year comparable period, primarily due to lower grades as a result of planned mine sequencing. Production costs were lower than in the prior year comparable period largely owing to favourable foreign exchange as a result of the Chilean Peso weakening against the US dollar, and lower sales volumes. Copper cash cost of $1.89 /lb improved from the prior year comparable period due to favourable foreign exchange and higher by-product credits. Copper and gold production in 2024 are forecast to be weighted to the second half of the year, primarily owing to mine sequencing and the resultant grade profiles.
Caserones (51% owned): During the three months ended March 31, 2024 , Caserones produced 34,216 tonnes of copper and 864 tonnes of molybdenum on a 100% basis. Copper and molybdenum production was slightly lower than expected due to reduced throughput caused by unplanned maintenance, combined with lower recoveries due to mine sequencing. Production costs and cash costs per pound in the three months ended March 31, 2024 were lower than planned primarily due to favourable foreign exchange as a result of the Chilean peso weakening against the US dollar.
Chapada (100% owned): Chapada produced 10,138 tonnes of copper and approximately 14,000 ounces of gold in concentrate in the three months ended March 31, 2024 . Copper and gold production were higher than in the prior year comparable period primarily due to higher recoveries. Production costs were lower than in the prior year comparable period primarily due to lower sales volumes and lower mining costs as a result of a planned reduction in waste movement. Copper cash cost of $2.01 /lb for the three months ended March 31, 2024 improved from the prior year comparable period due to higher by-product credits combined with mining cost decreases due to operational improvements.
Eagle (100% owned): During the three months ended March 31, 2024 , Eagle produced 3,255 tonnes of nickel and 2,514 tonnes of copper which were lower than in the prior year comparable period due to lower planned grades and recoveries. Production costs were lower than in the prior year comparable period due to lower sales volumes. Nickel cash cost of $4.04 /lb was higher than in the prior year comparable period and was impacted by lower sales volumes and lower by-product credits.
Neves-Corvo (100% owned): Neves-Corvo produced 7,044 tonnes of copper and 26,487 tonnes of zinc in the three months ended March 31, 2024 . Both copper and zinc production was lower than in the prior year comparable period due to lower grades and recoveries. Throughput was lower than planned in the three months ended March 31, 2024 due to a voluntary three-day shutdown and subsequent ramp-up following the fatality that occurred in February 2024 . Production costs during the quarter were lower than in the prior year comparable period due to lower sales volumes and lower unit production costs. Copper cash cost per pound of $3.24 /lb was higher than prior year comparable period as a result of lower production volumes, lower by-product credits and unfavorable foreign exchange.
Zinkgruvan (100% owned): Zinc production of 19,201 tonnes was lower than in the prior year comparable period primarily due to lower grades. Lead production of 6,748 tonnes and copper production of 1,574 tonnes were lower than in the prior year comparable period primarily due to lower grades as a result of delays in mining high-grade stopes. Production costs were slightly higher than in the prior year comparable period and zinc cash cost per pound of $0.65 /lb was higher than in the prior year comparable period primarily due to lower production volumes.
Outlook
Overall, operations performed well in the first quarter of 2024 and the Company is expected to meet annual production and cash cost guidance as disclosed in the Company's MD&A for the year ended December 31, 2023 .
Metal production continues to be weighted to the second half of the year at Candelaria, Chapada and Neves-Corvo due to mine sequencing and resultant forecasted grade profiles. As a result of production challenges at Neves-Corvo in the first quarter of 2024, copper production at that operation is tracking to the lower end of its annual production guidance range. Production challenges at Neves-Corvo, Eagle and Zinkgruvan in the first quarter of 2024 led to higher-than-expected cash costs per pound, which are expected to improve later in 2024.
Capital expenditure guidance also remains consistent as disclosed in the Company's MD&A for the year ended December 31, 2023 including $840 million sustaining capital expenditure and $225 million of expenditure related to the Josemaria Project. Similarly, exploration expenditure of $48 million remains on target for 2024.
Exploration
During the quarter ended March 31, 2024 , exploration activity focused on in-mine and near-mine targets at the Company's operations. Exploration drilling at Zinkgruvan was focused on resource expansion, Candelaria drilling was focused on Candelaria Norte , and Chapada drilling concentrated on delineating the high-grade, near-mine trend at Corpo Sul.
At Caserones, exploration remains in the early stages. Geophysical surveys were recently carried out on the land package and the data collected will help to refine our targets and advance our efforts. Exploration drilling was completed in the lower portion of the mineral resource and at the Angelica oxide and sulphide targets, both near-mine targets that would add potential mineral resources and extend the life of the operation.
At Josemaria, seasonal exploration drilling is coming to a close at the Cumbre Verde target near the Josemaria ore body. Six holes were drilled targeting the same mineralized system and structures that hosted high grade mineralization on the neighbouring property that run towards Josemaria. Exploration remains in its early stages and initial results highlight copper/gold/silver mineralization. The data obtained will help further refine and target this mineralization. Work will continue throughout the remainder of 2024, although it will be minimized during the winter season.
There was no exploration drilling at Neves-Corvo and Eagle in the quarter.
About Lundin Mining
Lundin Mining is a diversified Canadian base metals mining company with projects and operations in Argentina , Brazil , Chile , Portugal , Sweden and the United States of America , primarily producing copper, zinc, nickel and gold.
The information in this release is subject to the disclosure requirements of Lundin Mining under the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below on May 1, 2024 at 14:30 Pacific Standard Time .
Technical Information
The scientific and technical information in this press release has been prepared in accordance with the disclosure standards of National Instrument 43-101 ("NI 43-101") and has been reviewed by Arman Barha , P.Eng., Vice President, Technical Services, a "Qualified Person" under NI 43-101. Mr. Barha has verified the data disclosed in this release and no limitations were imposed on his verification process.
Reconciliation of Non-GAAP Measures
The Company uses certain performance measures in its analysis. These performance measures have no standardized meaning within generally accepted accounting principles under International Financial Reporting Standards and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. For additional details please refer to the Company's discussion of non-GAAP and other performance measures in its Management's Discussion and Analysis for the three months ended March 31, 2024 which is available on SEDAR+ at www.sedarplus.com .
Cash Cost per Pound and All-in Sustaining Costs per pound can be reconciled to Production Costs on the Company's Condensed Interim Consolidated Statement of Earnings as follows:
Three months ended March 31, 2024 | |||||||
Operations | Candelaria | Caserones | Chapada | Eagle | Neves-Corvo | Zinkgruvan | |
($000s, unless otherwise noted) | (Cu) | (Cu) | (Cu) | (Ni) | (Cu) | (Zn) | Total |
Sales volumes (Contained metal): | |||||||
Tonnes | 33,536 | 35,211 | 8,742 | 2,163 | 5,886 | 15,825 | |
Pounds (000s) | 73,934 | 77,627 | 19,273 | 4,769 | 12,976 | 34,888 | |
Production costs | 567,134 | ||||||
Less: Royalties and other | (19,970) | ||||||
547,164 | |||||||
Deduct: By-product credits | (165,308) | ||||||
Add: Treatment and refining | 46,951 | ||||||
Cash cost | 139,490 | 166,439 | 38,735 | 19,249 | 42,057 | 22,837 | 428,807 |
Cash cost per pound | 1.89 | 2.14 | 2.01 | 4.04 | 3.24 | 0.65 | |
Add: Sustaining capital | 99,532 | 42,754 | 29,199 | 4,078 | 22,413 | 14,341 | |
Royalties | 2,968 | 8,814 | 1,617 | 2,678 | 735 | — | |
Reclamation and other closure accretion and depreciation | 2,167 | 1,040 | 2,679 | 1,968 | 1,335 | 1,186 | |
Leases & other | 3,033 | 15,381 | 765 | 1,236 | 64 | 78 | |
All-in sustaining cost | 247,190 | 234,428 | 72,995 | 29,209 | 66,604 | 38,442 | |
AISC per pound ($/lb) | 3.34 | 3.02 | 3.79 | 6.12 | 5.13 | 1.10 | |
Three months ended March 31, 2023 | |||||||
Operations | Candelaria | Caserones | Chapada | Eagle | Neves-Corvo | Zinkgruvan | |
($000s, unless otherwise noted) | (Cu) | (Cu) | (Cu) | (Ni) | (Cu) | (Zn) | Total |
Sales volumes (Contained metal): | |||||||
Tonnes | 35,570 | — | 9,072 | 2,735 | 8,031 | 16,612 | |
Pounds (000s) | 78,418 | — | 20,000 | 6,030 | 17,705 | 36,623 | |
Production costs | 417,764 | ||||||
Less: Royalties and other | (12,086) | ||||||
405,678 | |||||||
Deduct: By-product credits | (156,965) | ||||||
Add: Treatment and refining | 36,615 | ||||||
Cash cost | 173,692 | — | 47,318 | 14,640 | 29,892 | 19,786 | 285,328 |
Cash cost per pound | 2.21 | — | 2.37 | 2.43 | 1.69 | 0.54 | |
Add: Sustaining capital | 90,686 | — | 16,027 | 7,102 | 25,061 | 14,468 | |
Royalties | — | — | 2,223 | 5,686 | 1,730 | — | |
Reclamation and other closure accretion and depreciation | 2,307 | — | 1,801 | 2,958 | 1,324 | 1,061 | |
Leases & other | 3,143 | — | 966 | 747 | 158 | 102 | |
All-in sustaining cost | 269,828 | — | 68,335 | 31,133 | 58,165 | 35,417 | |
AISC per pound ($/lb) | 3.44 | — | 3.42 | 5.16 | 3.29 | 0.97 | |
Adjusted EBITDA can be reconciled to Net Earnings (Loss) on the Company's Condensed Interim Consolidated Statement of Earnings as follows:
Three months ended March 31, | ||
($thousands) | 2024 | 2023 |
Net earnings | 58,555 | 165,311 |
Add back: | ||
Depreciation, depletion and amortization | 184,492 | 120,247 |
Finance income and costs | 35,694 | 15,699 |
Income taxes | 50,566 | 48,693 |
329,307 | 349,950 | |
Unrealized foreign exchange loss (gain) | (15,500) | 8,644 |
Unrealized losses (gains) on derivative contracts | 52,832 | (20,666) |
Ojos del Salado sinkhole (recoveries) expenses | (1,031) | 4,582 |
Revaluation loss (gain) on marketable securities | (2,430) | (438) |
Gain on disposal of subsidiary | — | (5,718) |
Other | (322) | 589 |
Total adjustments - EBITDA | 33,549 | (13,007) |
Adjusted EBITDA | 362,856 | 336,943 |
Adjusted Earnings and Adjusted EPS can be reconciled to Net Earnings (Loss) Attributable to Lundin Mining Shareholders on the Company's Condensed Interim Consolidated Statement of Earnings as follows:
Three months ended March 31, | ||
($thousands, except share and per share amounts) | 2024 | 2023 |
Net earnings attributable to Lundin Mining shareholders | 13,883 | 146,620 |
Add back: | ||
Total adjustments - EBITDA | 33,549 | (13,007) |
Tax effect on adjustments | (1,767) | (3,126) |
Deferred tax arising from foreign exchange translation | (6,300) | (6,007) |
Non-controlling interest on adjustments | 5,852 | 1,202 |
Total adjustments | 31,335 | (20,938) |
Adjusted earnings | 45,218 | 125,682 |
Basic weighted average number of shares outstanding | 773,048,710 | 771,216,060 |
Net earnings attributable to shareholders | 0.02 | 0.19 |
Total adjustments | 0.04 | (0.03) |
Adjusted earnings per share | 0.06 | 0.16 |
Free Cash Flow from Operations and Free Cash Flow can be reconciled to Cash provided by Operating Activities on the Company's Condensed Interim Consolidated Statement of Cash Flows as follows:
Three months ended March 31, | ||
($thousands) | 2024 | 2023 |
Cash provided by operating activities | 267,531 | 211,875 |
Sustaining capital expenditures | (213,260) | (155,564) |
General exploration and business development | 13,451 | 14,765 |
Free cash flow from operations | 67,722 | 71,076 |
General exploration and business development | (13,451) | (14,765) |
Expansionary capital expenditures | (55,981) | (90,519) |
Free cash flow | (1,710) | (34,208) |
Adjusted Operating Cash Flow and Adjusted Operating Cash Flow per Share can be reconciled to Cash Provided by Operating Activities on the Company's Condensed Interim Consolidated Statement of Cash Flows as follows:
Three months ended March 31, | ||
($thousands, except share and per share amounts) | 2024 | 2023 |
Cash provided by operating activities | 267,531 | 211,875 |
Changes in non-cash working capital items | 46,135 | 23,192 |
Adjusted operating cash flow | 313,666 | 235,067 |
Basic weighted average number of shares outstanding | 773,048,710 | 771,216,060 |
Adjusted operating cash flow per share | $ 0.41 | 0.30 |
Net debt and net debt excluding lease liabilities can be reconciled to Debt and Lease Liabilities, Current Portion of Debt and Lease Liabilities and Cash and Cash Equivalents on the Company's condensed interim consolidated balance sheet as follows:
($thousands) | March 31, 2024 | December 31, 2023 |
Debt and lease liabilities | (1,417,892) | (1,273,162) |
Current portion of total debt and lease liabilities | (183,702) | (212,646) |
Less deferred financing fees (netted in above) | (5,729) | (6,374) |
(1,607,323) | (1,492,182) | |
Cash and cash equivalents | 365,451 | 268,793 |
Net debt | (1,241,872) | (1,223,389) |
Lease liabilities | 260,463 | 277,208 |
Net debt excluding lease liabilities | (981,409) | (946,181) |
Cautionary Statement on Forward-Looking Information
Certain of the statements made and information contained herein is "forward-looking information" within the meaning of applicable Canadian securities laws. All statements other than statements of historical facts included in this document constitute forward-looking information, including but not limited to statements regarding the Company's plans, prospects and business strategies; the Company's guidance on the timing and amount of future production and its expectations regarding the results of operations; expected costs; permitting requirements and timelines; timing and possible outcome of pending litigation; the results of any Preliminary Economic Assessment, Feasibility Study, or Mineral Resource and Mineral Reserve estimations, life of mine estimates, and mine and mine closure plans; anticipated market prices of metals, currency exchange rates, and interest rates; the development and implementation of the Company's Responsible Mining Management System; the Company's ability to comply with contractual and permitting or other regulatory requirements; anticipated exploration and development activities at the Company's projects; the Company's integration of acquisitions and any anticipated benefits thereof; and expectations for other economic, business, and/or competitive factors. Words such as "believe", "expect", "anticipate", "contemplate", "target", "plan", "goal", "aim", "intend", "continue", "budget", "estimate", "may", "will", "can", "could", "should", "schedule" and similar expressions identify forward-looking statements.
Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation, the expectations and beliefs of management, including that the Company can access financing, appropriate equipment and sufficient labour; assumed and future price of copper, nickel, zinc, gold and other metals; anticipated costs; ability to achieve goals; the prompt and effective integration of acquisitions; that the political environment in which the Company operates will continue to support the development and operation of mining projects; and assumptions related to the factors set forth below. While these factors and assumptions are considered reasonable by Lundin Mining as at the date of this document in light of management's experience and perception of current conditions and expected developments, these statements are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements and undue reliance should not be placed on such statements and information. Such factors include, but are not limited to: global financial conditions, market volatility and inflation, including pricing and availability of key supplies and services; risks inherent in mining including but not limited to risks to the environment, industrial accidents, catastrophic equipment failures, unusual or unexpected geological formations or unstable ground conditions, and natural phenomena such as earthquakes, flooding or unusually severe weather; uninsurable risks; volatility and fluctuations in metal and commodity demand and prices; significant reliance on assets in Chile ; reputation risks related to negative publicity with respect to the Company or the mining industry in general; delays or the inability to obtain, retain or comply with permits; risks relating to the development of the Josemaria Project; health and safety laws and regulations; risks associated with climate change; risks relating to indebtedness; economic, political and social instability and mining regime changes in the Company's operating jurisdictions, including but not limited to those related to permitting and approvals, nationalization or expropriation without fair compensation, environmental and tailings management, labour, trade relations, and transportation; inability to attract and retain highly skilled employees; risks inherent in and/or associated with operating in foreign countries and emerging markets, including with respect to foreign exchange and capital controls; project financing risks, liquidity risks and limited financial resources; health and safety risks; compliance with environmental, unavailable or inaccessible infrastructure, infrastructure failures, and risks related to ageing infrastructure; changing taxation regimes; the inability to effectively compete in the industry; risks associated with acquisitions and related integration efforts, including the ability to achieve anticipated benefits, unanticipated difficulties or expenditures relating to integration and diversion of management time on integration; risks related to mine closure activities, reclamation obligations, environmental liabilities and closed and historical sites; reliance on key personnel and reporting and oversight systems, as well as third parties and consultants in foreign jurisdictions; information technology and cybersecurity risks; risks associated with the estimation of Mineral Resources and Mineral Reserves and the geology, grade and continuity of mineral deposits including but not limited to models relating thereto; actual ore mined and/or metal recoveries varying from Mineral Resource and Mineral Reserve estimates, estimates of grade, tonnage, dilution, mine plans and metallurgical and other characteristics; ore processing efficiency; community and stakeholder opposition; regulatory investigations, enforcement, sanctions and/or related or other litigation; financial projections, including estimates of future expenditures and cash costs, and estimates of future production may not be reliable; enforcing legal rights in foreign jurisdictions; risks associated with the use of derivatives; risks relating to joint ventures and operations; environmental and regulatory risks associated with the structural stability of waste rock dumps or tailings storage facilities; exchange rate fluctuations; compliance with foreign laws; potential for the allegation of fraud and corruption involving the Company, its customers, suppliers or employees, or the allegation of improper or discriminatory employment practices, or human rights violations; risks relating to dilution; risks relating to payment of dividends; counterparty and customer concentration risks; activist shareholders and proxy solicitation matters; estimation of asset carrying values; relationships with employees and contractors, and the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; conflicts of interest; existence of significant shareholders; challenges or defects in title; internal controls; risks relating to minor elements contained in concentrate products; the threat associated with outbreaks of viruses and infectious diseases; and other risks and uncertainties, including but not limited to those described in the "Managing Risks" section of the Company's MD&A and the "Risks and Uncertainties" section of the Company's Annual Information Form for the year ended December 31, 2023 , which are available on SEDAR+ at www.sedarplus.com under the Company's profile.
All of the forward-looking statements made in this document are qualified by these cautionary statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, forecast or intended and readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information. Accordingly, there can be no assurance that forward-looking information will prove to be accurate and forward-looking information is not a guarantee of future performance. Readers are advised not to place undue reliance on forward-looking information. The forward-looking information contained herein speaks only as of the date of this document. The Company disclaims any intention or obligation to update or revise forward‐looking information or to explain any material difference between such and subsequent actual events, except as required by applicable law.
SOURCE Lundin Mining Corporation
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/May2024/01/c7931.html
News Provided by Canada Newswire via QuoteMedia
