Lundin Mining Corporation

Thank you, operator, and thank you, everyone, for joining Lending Mining's first quarter 2021 call. I would like to draw your attention to the cautionary statements on slide two, and we will be making several forward-looking statements throughout the course of this presentation. On the call to assist 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. Across Lumine Mining, we continue our efforts to stop the spread of COVID-19 and to aid our local communities to recover from the socio-economic impacts of the pandemic. The photo on this slide shows representatives from Candelaria. It's Humberto Espejo and Christian Matus who lead our health and safety team here being recognized last month by the Chilean Safety Association for the team's high performance in occupational health and hygiene during 2019 and 2020. On slide four, as the year begins, we are continuing the trend of strong and improving safety performance on almost all leading and lagging indicators. This includes continued strong performance in total recordable injury frequency rate as presented in the chart on this page. We are particularly proud of this achievement as our operations actively managed through second and third waves of the pandemic. I would also like to highlight several areas in which London Mining has further advanced our commitment to responsible mining over this past quarter, which include updates to our human rights standard and diversity policy, as well as action on board renewal. I encourage those interested in additional detail and more information on our approach to visit our website and read our core documents, including our recently issued management information circular. And as always, please reach out to us with any questions. Our 2020 sustainability report, which will provide a full update on all of our activities during the year, is currently being assembled, and we expect to publish this report in late June. I will now turn the call over to Jinhee to run through the summary results of the quarter.

Thank you, Marie. During the quarter, our operations produced nearly 102,000 tons of base metals and approximately 34,000 ounces of gold. We sold over 91,000 tons of payable base metals and approximately 33,000 ounces of payable gold, generating revenue of over $680 million. As the market price for our core metals we produce continued to increase, there was an aggregate positive pricing adjustment this quarter. The positive impact on revenue from settling a prior period sales was over $22 million. A large portion of the settlements occurred earlier in the quarter, meaning that the pricing was skewed to this time. First quarter revenue was also impacted by the timing of sales, with the delay of a vessel at Chapada resulting in a shipment that was scheduled for March, sailing in the first week of April. At Chapada, we ended the quarter with over 18,500 tons of finished concentrate. Copper generated 70% of the quarter's revenue. This is up from 64% in the same quarter last year on a relative basis, primarily driven by increasing copper prices. Nickel contributed 10% up from 6% in the same period last year on increasing production and prices. As seen in the two pie charts on this slide, we remain predominantly leveraged to copper and well diversified geographically. Slide six presents a summary of our quarter's results. We've benefited significantly from higher base level prices this quarter compared to the same period last year, which reflected the onset of the COVID-19 pandemic. In the first quarter of this year, we realized a copper price of $4.20 per pound. This is above the average market price, reflecting the 22 cents per pound of prior period adjustments. First quarter revenue of over $680 million was 80% above that of the same quarter last year. And this is despite the delayed sales at Chapada, which held higher than normal inventories at quarter end. Attributable net earnings from operations were 18 cents per share. Adjusted earnings were 20 cents per share for the quarter, substantially above the net loss in the same quarter last year. Details of the adjustments are broken down in our MD&A. With our operations performing well and improved base metal prices, we generated adjusted EBITDA of approximately $355 million, nearly a 300% increase from the same quarter last year. Cash flow from operations was nearly $160 million and was impacted by a building capital increase given the lower than typical shipments in the fourth quarter last year and related receipts this quarter. Adjusted operating cash flow before changes in non-cash flowing capital with $280 million or $0.38 per share. Our Board of Directors declared a regular quarterly dividend of $0.06 Canadian per share or $0.24 Canadian per share on an annualized basis, an increase of 50% as announced earlier this year. Lundin Mining is in a very strong financial position with cash and equivalents of approximately $180 million at quarter end and net debt of only $8 million. The company's financial position has further improved since the end of the quarter and is now in a net cash position of approximately $25 million with cash and equivalents of $215 million. I will now turn the call back to Marie to discuss our operations and projects.

Thank you, Janine. So moving on to operations in Candelaria on slide seven. Candelaria performed well in the quarter. It produced over 34,200 tons of copper and 21,000 ounces of gold at a cash cost of $1.65 per pound of copper. Tons milled, ore grades, and metal recovery rates were all in line with our plan. Ore process was over 6.9 million tons, and this included the impact of maintenance downtime in February on the crushing and the mill circuits. As discussed on previous calls, the mill seed grade was similar to that of the second half of last year as expected. We continue to forecast increased production over the remainder of the year, primarily on increasing mill seed grades. The first quarter cash cost of $1.55 per pound of copper, while above our guidance for the year, was better than our plan. Similar to production, the cash cost is forecast to significantly improve over the remainder of the year. We have reiterated Kindle Area's 2021 production guidance at 172,000 to 182,000 tons of copper and 95 to 100,000 ounces of gold at a cash cost of $1.35 per pound of copper. Our byproduct gold price assumption is unchanged at $1,700 per ounce of gold, while we have weakened our U.S. dollar Chilean peso assumption to 700 from 675 previously. Candelaria remains well positioned to deliver meaningful production growth this year on improving copperhead grades and achievement of planned processing rates. Looking ahead, we continue to advance internal feasibility level studies on the Candelaria underground expansion project. These studies are evaluating an increase in the mining rate of the two Candelaria underground mines to a combined 26,000 tons per day from the current 14,000 tons per day. We aim to complete these internal studies this year. Moving on to Chapada on slide eight, first quarter production totalled over 9,800 tons of copper and 13,000 ounces of gold at a cash cost of $1.33 per pound of copper. The operation performed well in the quarter with tons mined and tons milled in line with the plan, demonstrating our return to full production capacity. Mill throughput of 5.8 million tons is the second highest quarterly throughput since acquisition. There is some seasonality at Chapada, and first quarter production was expected to be the lowest of the year, given the planned grade profile and recovery expectations of the mill feed blend. Heavier-than-normal rains also meant that more ore was sourced from the stockpile than planned, which impacted our grades and recoveries. Growth and per-ton milled operating costs were better than planned. However, the cash costs and financial results were impacted by lower sales volumes due to the timing of sales, as discussed previously by Jenny Heath. and this was partially offset by our favorable foreign exchange rates. We have reiterated Tupata's 2021 guidance of 48,000 to 53,000 tons of copper and 75,000 to 80,000 ounces of gold at a cash cost of $1.10 per pound of copper. Our gold price assumption for 2021 remains unchanged at $1,700 per ounce, while we have weakened the Brazilian real assumption to $5.10 to the US dollar from $4.75 previously. On the exploration front, we have had an excellent first few months of 2021. We completed nearly 11,000 meters of drilling and had an average of six rigs on site in the first quarter. We're on track to complete our budgeted 60,000 meters for the year. We were very successful in the government land auction that concluded in early April. We were able to acquire 23 highly prospective near mine exploration licenses, and that represents an 80% increase in our exploration land area. These lands included all of our high-priority licenses and cost approximately $6 million. Chapada's 2021 exploration expenditure guidance has increased to $14 million, up from $8 million, reflecting the acquisition costs of the licenses. Looking on slide 9, this view of Chapada outlines some of the near-mine exploration drilling results. On the slide, you can see the surface expression of last year's measured and indicated mineral resources, which includes the proven and probable reserves as a subset. You can also see the inferred mineral resource and other areas we've determined to be highly prospective and priority for near-mine exploration. The assay results are from select drilling all outside of the current mineral resource estimates, with the exception of One Hole and Sarupa to the north. Our primary focus remains on near-mine exploration to better understand and define the mineral resource potential and inform our ongoing expansion studies. On slide 10, I said we were highly successful in the government land auctions, and the left-hand side of this slide illustrates why. We acquired 23 highly prospective near-mine exploration licenses, and as I mentioned, an 80% increase in the licensed land area. The new licensed areas are shown in green. We were able to acquire all of those that we determined to be our high-priority licenses. On the right-hand side of the slide are select assays from drilling completed on the Formiga target on our existing license. This exciting license is located approximately 15 kilometers to the north of the current plant. And with that, I will turn the call over to Peter to discuss European operations and the ZIG expansion project.