Lundin Mining's Strategic Divestment: Selling Neves-Corvo and Zinkgruvan for Up to $1.52 Billion

Lundin Mining Corporation, a diversified base metals mining company, has announced a strategic divestment of its Neves-Corvo and Zinkgruvan operations to Boliden AB for a total consideration of up to $1.52 billion. This move allows Lundin Mining to strengthen its balance sheet, optimize its portfolio, and focus on its growing South American assets, particularly in the Vicuña District.

The sale, not subject to shareholder approval or financing conditions, provides upfront cash consideration of $1.37 billion and up to $150 million in contingent consideration. The contingent payment structure incentivizes Boliden to maximize production and revenue from the acquired mines, with Lundin Mining receiving a share of the upside potential based on commodity price performance.

Neves-Corvo, located in Portugal, is a long-life copper and zinc mine with significant mineral reserves. Zinkgruvan, located in Sweden, is a zinc mine with a history of stable production. Both mines have been strategically divested to Boliden, which has extensive mining experience and operational expertise. This new ownership may lead to improved working conditions, career growth opportunities for employees, and enhanced environmental performance.

The divestment of Neves-Corvo and Zinkgruvan enables Lundin Mining to focus on its South American portfolio, particularly the Vicuña District. The $1.52 billion in proceeds strengthens Lundin's balance sheet, allowing it to invest in high-potential copper projects such as Josemaria and Candelaria. With copper demand surging due to electric vehicle (EV) adoption, Lundin can now concentrate on developing its copper-rich assets, positioning itself to become a top-tier copper-dominant mining company.

The sale also optimizes Lundin Mining's portfolio, allowing it to concentrate resources on high-potential assets and potentially enhance shareholder value in the long term. The strategic divestment of Neves-Corvo and Zinkgruvan demonstrates Lundin Mining's commitment to balancing risk and reward in its portfolio management decisions.

In conclusion, Lundin Mining's sale of Neves-Corvo and Zinkgruvan to Boliden AB for up to $1.52 billion is a strategic move that strengthens the company's balance sheet, optimizes its portfolio, and enables it to focus on its growing South American assets. The contingent payment structure incentivizes Boliden to maximize production and revenue, while Lundin Mining benefits from the upside potential of these assets. This divestment positions Lundin Mining to become a top-tier copper-dominant mining company, capitalizing on the growing demand for copper in the EV market.