Lundin Mining Corporation

Ladies and gentlemen, thank you for standing by and welcome to today's Lundeen Mining fourth quarter results. All participants at this time are in a listen only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this time, simply press star then the number one on your telephone keypad. If you require any further assistance, please press star zero. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Marie Inkster, President and CEO. Please go ahead.

Thank you, operator, and thank you, everyone, for joining Lundin Mining's fourth quarter and full year 2020 results call. I would like to draw your attention to the cautionary statements on slide two, as we will be making several forward-looking statements throughout the course of this presentation. On the call to assist me with the presentation and answering questions are Jinhee McGee, our Senior Vice President and Chief Financial Officer, and Peter Richardson, our Senior Vice President and Chief Operating Officer. On slide four, I want to take some time to touch on several of London Mining's achievements in 2020 as they placed us in an excellent position to perform well in 2021 and the years ahead. While responding to COVID-19 required that we adjust some of our plans earlier in the year, We had our share of challenges in the fourth quarter. We acted quickly and decisively to overcome these. The loss of our colleague at Navish Corvo in the third quarter remains top of mind within our organization. A fatality is a rare event within London Mining because of the dedication and focus of our workforce when it comes to safety. In 2020, we achieved the best ever safety performance as measured by the total injury frequency rate and several other indicators. This achievement is particularly notable in a year filled with the distraction, both personally and professionally, of a global pandemic. We achieved our most recent production guidance for all metals with cash costs in line or better than our guidance, including notably low first quartile cash costs at Chapada and Eagle. This led to the generation of nearly $860 million of adjusted EBITDA in a volatile metal price environment over the course of the year. We were able to complete our Candelaria Mill Optimization Project in the fourth quarter and make progress on growth initiatives. We were achieving excellent progress advancing the zinc expansion project at Nevis-Corville prior to our proactive decision to temporarily suspend the project to protect the operation and the local communities from the onset of COVID-19. Minor works continued throughout the year and the project officially restarted in January of this year. At Chapada, following a brief suspension of the exploration program in March, we were able to ramp back up quickly and safely and completed nearly 42,000 meters of drilling that will help inform our expansion studies. And at Candelaria, we progressed our internal studies evaluating medium-term opportunities to expand the underground mines. Lastly, we remain focused on value creation through disciplined allocation of our shareholders' capital. In late November, we announced an anticipated 50% increase to our regular dividend. This increase to an annualized $0.24 per share was approved by the board yesterday. We continue to pursue actionable M&A while remaining disciplined to our strategy and our criteria. In short, we are very well positioned to deliver on our strategy and drive shareholder returns. With that, I will turn the call over to Jinhee to highlight the full year 2020 financial results. Jinhee.

Thank you, Marie. Looking at a summary of our results on slide 5, our operations in aggregate produced nearly 420,000 tons of base metals in 2020, including over 96,000 tons in the fourth quarter. In addition, we produced 163,000 ounces of gold in 2020, an increase of 15% year-over-year, with a full year's contribution from Japata. For the year, we sold over 380,000 tons of payable base metals and generated revenue of over $2 billion. Fourth quarter revenue totals $530 million, including positive price adjustment for prior period sales. Prior period price adjustments had a negative $50 million impact on revenue or $0.08 per share for the year. However, with strengthening metal prices, the fourth quarter impact was a positive $48 million or $0.065 per share. A detailed breakdown is available in our MD&A. Consistent with the prior year, 65% of our revenue was generated from copper sales in 2020. Gold contributed 12% to revenue, up from 9% in the prior year, with a full-year contribution from Chapada and the increase in the gold price. Zinc, nickel, and lead contributed a combined 19% to total revenue in 2020, down from 23% the prior year, largely a dilution effect with the first full year of copper and gold sales from Chapada. We remain predominantly leveraged to copper and well diversified geographically. Slide six presents a summary of the full year financial results. I will also touch on our fourth quarter results. 2020 revenue was 8% greater than last year, mainly attributable to the first full year contribution of the Chapada mine following acquisition as well as higher realized copper and gold prices. Gross profit was 13% higher, reflecting the Chapada acquisition and offset by higher depreciation. Attributable net earnings from operations were 23 cents per share for the year in line with the prior year and 16 cents per share for the fourth quarter. Fourth quarter earnings were higher than the comparable period in 2019, primarily due to higher realized metal prices, partially offset by lower copper sales volumes. Adjusted earnings were $0.31 per share for the year and $0.15 per share for the fourth quarter. Fourth quarter adjustments include $5 million of costs associated with the labor action at Candelaria and nearly $4 million for project standby and suspension costs. Details of the adjustments are broken down in our MD&A issued last night. We generated adjusted EBITDA of $857 million in 2020, a 21% increase over 2019, including $235 million generated in the fourth quarter. 2020 cash flow from operations were $566 million, in line with that of 2019. When adjusting for non-cash working capital changes, operating cash flow was $645 million, or 88 cents per share, 17% greater than last year. Fourth quarter capital expenditures on a cash basis were $100 million, bringing the total spend for 2020 to $431 million, marginally lower than the most recent guidance of $445 million. We ended the year with $141 million in cash and equivalents and net debt of $63 million. As of February 18th, these numbers had further improved to $165 million in cash equivalents and $50 million of net debt. Lastly, our Board of Directors declared regular quarterly dividends of $0.04 Canadian per share, totaling $0.16 Canadian per share in 2020. And yesterday, our Board approved an increase in the next quarterly dividend to $0.06 Canadian per share, or $0.24 Canadian per share on an annualized basis, an increase of 50%. I will now turn the call back to Marie to discuss her operations and projects.