Lundin Mining Files Vicuna Project Technical Report

Executive Summary

• Lundin Mining filed a NI 43‑101 technical report for the Vicuña Project, confirming that the results are identical to those disclosed in its February 16 2026 PEA release.
• The study outlines a staged development plan targeting up to 500 ktpa copper production and an initial 70‑year mine life with average annual output of 400 kt copper, 700 k oz gold and 22 M oz silver.
• Economic highlights include an after‑tax NPV (8% discount) of $9.5 billion (rising to $28.8 billion at higher metal prices) and an IRR of 14.8% (up to 25.5% under spot price assumptions), with projected average free cash flow of $2.2 billion per year for the first 25 years.

Key Details

• Technical Report: “Vicuña Project, Argentina and Chile NI 43‑101 Technical Report on Preliminary Economic Assessment” (effective date Feb 16 2026). No material differences from prior PEA release.
• Project Structure: 50/50 joint venture between Lundin Mining and BHP; comprises the Josemaría sulphide deposit and the Filo del Sol oxide/sulphide deposits.
• Staged Development:
• Stage 1: Sulphide mill & open‑pit mine at Josemaría; capital $7.1 bn, payback 8.4 yr (start of 2030).
• Stage 2: Leachable oxides at Filo del Sol with SX/EW plant for Cu‑Au‑Ag recovery.
• Stage 3: Expansion of concentrator and development of Filo del Sol sulphide deposit; includes desalination, pipeline, and concentrate slurry infrastructure.
• Production Targets:
• Average 400 kt copper, 700 k oz gold, 22 M oz silver per year (first 25 yr).
• Peak >500 kt copper annually; average over ten years: 500 kt Cu, 800 k oz Au, 20 M oz Ag.
• Life‑of‑Mine (LOM): ~70 years; total resources ≈22.3 Mt Cu, 37.2 Moz Au, 763 Moz Ag.
• Cost Profile:
• Cash cost (net of by‑product credits): –$0.20/lb Cu.
• All‑in sustaining cost (AISC): $0.47/lb Cu.
• Capital intensity < $30k/tonne CuEq.
• Financial Metrics:
• After‑tax NPV (8%): $9.5 bn; rises to $28.8 bn at spot prices ($6.00/lb Cu, $5,000/oz Au, $80/oz Ag).
• IRR: 14.8%; increases to 25.5% under spot price scenario.
• Average annual free cash flow (first 25 yr): $2.2 bn after expansionary capex.
• Next Steps: Detailed design & engineering for Stage 1, ramp‑up of project readiness activities, and site access road upgrades; sanctioning decision possible by year‑end.

Notable Quotes

(No direct quotes provided in the release.)