Lundin Mining: Record Production and Strategic Growth in 2024

Lundin Mining Corporation (LUN:CA) concluded 2024 on a high note, reporting record production levels and strategic growth initiatives that position the company as a top-tier copper producer. The Vancouver-based miner achieved record copper and zinc production, generating strong revenue and operating cash flow, and set the stage for continued success in 2025.

In 2024, Lundin Mining achieved record copper production of 369,067 tonnes and zinc production of 191,704 tonnes, surpassing its production guidance for the year. This impressive performance was driven by operational excellence at key assets such as Candelaria and Caserones, as well as strategic transactions that added to the company's growth story. The company's record production translated to over US$870 million in annual free cash flow from operations, reflecting its strong operational performance and cost control measures.

Lundin Mining's strategic initiatives and growth opportunities within its current portfolio of assets contribute to its long-term value creation. The company increased its ownership at the Caserones copper-molybdenum mine from 51% to 70% in 2024, adding approximately 24,000 tonnes of annualized attributable copper production to the Company. This transaction immediately boosted Lundin Mining's copper production and cash flow generation, as Caserones is a long-life mine that yields strong cash flow.

Additionally, Lundin Mining and BHP formed Vicuña Corp. to jointly develop the Filo del Sol and Josemaria projects in Argentina. This partnership creates a multi-generational mining district with world-class potential, which could support a globally ranked mining complex. Vicuña Corp. is targeting a new and updated mineral resource estimate at Filo del Sol and Josemaria within the second quarter of 2025, forming the basis of an integrated technical report outlining the development plan for the phased construction of the district.



Lundin Mining's increased ownership at Caserones and the formation of Vicuña Corp. have positioned the company as a top-tier copper producer by enhancing its copper production profile and securing access to world-class copper projects. These transactions have benefited the company by increasing its copper production, strengthening its cash flow generation, and providing access to BHP's extensive experience and resources in developing and operating large-scale copper projects.

Looking ahead to 2025, Lundin Mining has revised its production guidance to reflect the divestiture of Neves-Corvo and Zinkgruvan. The company is targeting copper production of 303,000 to 330,000 tonnes at a consolidated C1 cash cost of US$2.05/lb to $2.30/lb. Additionally, the company is planning sustaining capital expenditures of US$530 million and expansionary capital expenditures of US$205 million. These investments, along with continued exploration expenditures of US$40 million, primarily for in-mine and near-mine targets, will help the company maintain its strong production performance and drive growth opportunities within its current portfolio of assets.

In conclusion, Lundin Mining's record production and strategic growth initiatives in 2024 have positioned the company as a top-tier copper producer with a strong production profile and access to world-class copper projects. The company's commitment to operational excellence, cost control, and strategic portfolio moves supports its positive long-term narrative. As Lundin Mining continues to execute within its targeted guidance ranges and enhance margins, investors can expect the company to maintain its strong production momentum and create value for shareholders in 2025 and beyond.