Lundin Mining Provides Update on Chile Operations Following Severe Winter Storm

Lundin Mining Corporation (LUN) reported that its Chilean assets, Candelaria and Caserones, have been impacted by a severe winter storm in the Atacama Region, which brought heavy snowfall and flooding. While mining operations at Candelaria were affected, the mill continued to operate using existing surface stockpiles.

Operations at Caserones were fully suspended on July 18 due to heavy snowfall, limited access, and power outages. Backup generators are currently supporting critical activities at the site. The company retains its full-year 2026 production guidance and expects to resume Caserones operations once power and access are restored.

Weather conditions are weakening, with minor follow-on systems expected but significantly less severe than the initial storm.

Lundin Mining Corporation (LUN) stated that the recent storm caused a temporary physical disruption rather than a structural change to its operations or economics. The Caserones mine was suspended on July 18 and is expected to restart within days, while the Candelaria mill never ceased operations.

The market had already priced in some recent softness, with the stock declining from $42 in early June to $34. There is no indication that this event will diverge from the prior market-implied range, as it represents a routine operational hiccup for a company with multi-asset diversification.

Pre-Q2 results, due on Aug 5, are unaffected except for a slightly lower Q2 exit rate, which was largely telegraphed by the pre-announcement of concentrate shipment timing and derivative impacts. Overall, the news is neutral to slightly negative for sentiment but non-material to valuation.

Lundin Mining Corporation (LUN) is a pure-play copper producer following the sale of its Eagle mine in January 2026. The company operates three core mines: Candelaria, an 80%-owned copper-gold-silver asset with a long mine life in Chile; Caserones, a 75%-owned copper-gold operation in Chile producing cathode and concentrate; and Chapada, a 100%-owned copper-gold mine in Brazil.

The company’s flagship growth engine is the Vicuña Project, a 50/50 joint venture with BHP that combines the Josemaria and Filo del Sol deposits. The project targets over 500,000 tonnes per annum of copper and 550,000 ounces of gold at maturity, with a projected 70-year mine life.

Additional assets include a 30.9% interest plus a 0.62% net smelter return in Los Helados, acquired in April 2026, and an approximately 19.9% stake in Talon Metals, received as consideration for the Eagle mine sale.