Lundin Mining Pre-Announces Items Impacting the Third Quarter 2026 Results

Lundin Mining Corporation (LUN) issued a pre-announcement regarding specific items that will impact its unaudited third-quarter 2026 financials. The company reported an unaudited positive pre-tax provisional pricing adjustment of approximately $51 million on prior-period concentrate sales, driven primarily by upward adjustments on prior-period copper sales.

Severe storms in the Atacama region caused power outages and temporary suspensions at the Caserones mine, as previously referenced in releases on July 26 and August 18, 2026. Lundin classified approximately $66 million as mine standby costs, comprising $21 million in incremental storm costs and $45 million of fixed overhead reclassified as standby. This $66 million will be excluded from adjusted EBITDA, adjusted earnings, and adjusted EPS.

The company also noted approximately $9 million in unaudited realized losses on gold collar contracts, while realized foreign exchange derivative gains are not expected to be significant. Similarly, realized and unrealized foreign exchange gains are not expected to be significant.

Regarding discontinued operations, Lundin received a $23 million cash payment from Boliden tied to Neves-Corvo contingent consideration, based on first-half 2026 performance. This amount was already recognized as income in the second quarter of 2026, resulting in no incremental third-quarter income benefit. No CEO or CFO quotes were included in the release.

Lundin Mining Corporation reported a net pre-tax impact of approximately minus $24 million following a storm event at its Caserones mine. The company quantified the storm’s effect with $66 million in standby costs, split between $21 million in incremental expenses and $45 million in fixed overhead. This was partially offset by a $51 million positive pricing adjustment and a $9 million loss on a gold collar.

The negative core of the release, consisting of lost production and higher costs, was already reflected in the August 18/19, 2026 guidance revisions. Consequently, the company did not change its production or cost ranges. The specific quantification of the storm impact, the pricing adjustment, and the gold collar loss represent the new elements in this update.

The treatment of the $9 million collar loss in adjusted metrics was not specified. If the loss is excluded from adjusted figures, the adjusted EBITDA impact is roughly $51 million; if included, it is roughly $42 million. Prior pre-announcements for Q1 2026 and Q4 2025 listed gold collar losses as standalone items of significant impact, suggesting their inclusion in reported rather than adjusted earnings is the more likely reading, though this remains unclarified.

Management excluded the full $45 million of fixed overhead—described as costs it "would ordinarily incur"—from adjusted metrics, rather than limiting exclusions to the $21 million of truly incremental storm costs. This approach flatters adjusted EBITDA and earnings relative to the true economic cost of the outage. With no fresh guidance cut and a positive pricing adjustment, the update represents a low-surprise event. The market has already de-rated the stock approximately 13% from its early-August level, indicating the storm’s impact is largely priced in.

Lundin Mining Corporation (TSX: LUN / Nasdaq Stockholm: LUMI) is a base-metals producer that has repositioned itself as a pure-play copper company following the sale of its Eagle Mine. The company retains gold, silver, and molybdenum as by-products. Its producing assets include the Candelaria mine in Chile, which produces copper, gold, and silver and is subject to binary and other royalties; the Caserones mine in Chile, which produces copper and molybdenum, with ownership raised to 75% in April 2026 for US$215 million; and the Chapada mine in Brazil, which produces copper and gold and has a ball mill sanctioned.

The company’s growth portfolio includes a 50/50 joint venture with BHP, the Vicuña project, which encompasses the Josemaría and Filo del Sol deposits in Argentina and Chile. Additionally, Lundin Mining holds a 30.9% stake plus a 0.62% net smelter return (NSR) in the Los Helados Project, acquired in April 2026.

In 2025, the company sold its Neves-Corvo and Zinkgruvan assets to Boliden. The sale of the Eagle Mine and Humboldt Mill to Talon Metals was completed in January 2026. Jack Lundin serves as President and CEO, and Teitur Poulsen is the CFO. No strategic-shareholder stake is disclosed in the provided materials.