Lundin Mining Pre-Announces Items Impacting the Fourth Quarter and Full Year 2025 Results

The January 28, 2026, news release provides a pre-announcement of significant items impacting the fourth quarter and full-year 2025 financial results. Key highlights include an $83 million pre-tax positive provisional pricing adjustment on concentrate sales, primarily due to rising copper and gold prices. More significantly, the company flagged a $450 million net positive impact to earnings from continuing operations, largely driven by a non-cash deferred tax recovery at the Caserones mine. Discontinued operations (the sale of the Eagle Mine and Humboldt Mill) added another $100 million. While derivative losses of $16 million were realized, these were offset by unrealized mark-to-market gains of $8 million. The full results are scheduled for release on February 19, 2026.

This news is Material - Positive as it signals a substantial beat on GAAP earnings per share (EPS), even if much of the gain is non-cash. - Financial Positioning: The $83 million pricing adjustment is a direct cash-positive impact reflecting the company’s leverage to rising metal prices. The $450 million tax recovery, while non-cash, significantly strengthens the balance sheet and book value. - Strategic Execution: The $100 million gain from discontinued operations confirms the successful exit from non-core assets (Eagle Mine), transforming Lundin into a "pure-play" copper producer with a focus on Latin America. - Operational Momentum: This follows the January 21, 2026, report where Lundin met production guidance for the third consecutive year and saw record monthly performance at Caserones (15,000 tonnes in Dec 2025). The company is successfully transitioning from a diversified base metal player to a high-margin copper producer.

Lundin Mining is a diversified Canadian base metals company with operations in Chile, Brazil, and the USA. Following the 2025 sale of Neves-Corvo (Portugal) and Zinkgruvan (Sweden) to Boliden, and the 2026 sale of the Eagle Mine to Talon Metals, the company is now concentrated on copper. - Flagship Project: The Vicuña District (50% interest, JV with BHP). It includes the Josemaria and Filo del Sol deposits in Argentina/Chile. It is recognized as one of the world's largest undeveloped copper-gold-silver resources. - Other Key Assets: Candelaria (80%), Caserones (70%), and Chapada (100%).