Lundin Mining Corporation

Good day and thank you for standing by. Welcome to London Mining first quarter 2022 results call and webcast. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. If you require any further assistance, please press star 0. I would now like to hand the conference over to your first speaker today, Peter Rockendale, President and CEO. Please go ahead, sir.

Thank you, Operator, and thank you, everyone, for joining Lending Mining's first quarter 2022 results call. I will draw your attention to the cautionary statements on slide two, as we will be making several forward-looking comments throughout the prepared remarks and likely during the Q&A as well. On the call to assist me with the presentation and answer questions are Jinhee McGee, our Senior Vice President and Chief Financial Officer, and Peter Richardson, our Senior Vice President and Chief Operating Officer. Safety is the foremost of our values, along with respect, integrity, and excellence. We hold health and safety as our top priority in everything we do, with our goal being zero harm. We will continue to pursue this goal and truly believe that all work-related injuries are preventable. Unfortunately, there was a fatal accident at our Neves Corvo operation in the first quarter. We continue to support the family and our colleagues at Neves Corvo, and initial safety lessons learned have been shared across our other sites. I would like to recognize and thank our employees and contractors for their dedication to our strong safety culture, work safe, home safe. Progressing our efforts for responsible mining, we have begun the accreditation process for our largest mine, Candelaria, to the copper mark. The Copper Mark is the leading assurance framework promoting responsible production of copper. Our mission statement says, copper is vital to society, and in our view, its role in the transition to a low-carbon economy cannot be overstated. Our participation in the Copper Mark will provide further assurance to our customers and our many stakeholders that we are living up to our commitments of response to mining. I will now turn the call over to Jinhee to review our financial results.

Thank you, Peter. Moving to slide five, in aggregate, our operations performed well during the quarter. Copper and gold production exceeded the prior year quarter, while zinc production was in line and nickel production was lower, though ahead of plan. We produced nearly 110,000 tons of base metals and approximately 34,000 ounces of gold. We also sold over 100,000 tons of base metals and approximately 36,000 ounces of gold on a payable basis, generating revenue of nearly $1 billion for the quarter. We remain predominantly leveraged to copper with the metal generating nearly 70% of the first quarter's revenue. Zinc and nickel both contributed 11% greater than the prior year quarter on increased realized prices. Slide six presents a summary of our first quarter 2022 financial results compared to the same quarter last year. We benefited from significantly higher base metal prices in the first quarter of this year compared to the first quarter of last year. We realized a copper price of $4.94 per pound, which includes a $0.25 per pound of prior period adjustments. The overall impact on first quarter revenue from the settling of prior period sales was nearly $50 million, with a large portion attributable to copper settlements. Prior period price adjustments for zinc, nickel, and gold were also all positive, and details of these adjustments are in our MD&A. First quarter revenue approached $1 billion and was 45% above that of the same quarter last year, primarily due to higher metal prices and price adjustments. Attributed net earnings were 47 cents per share and adjusted earnings were 40 cents per share, both substantially higher than the same quarter last year and new quarterly records. You'll find details of these adjustments broken down in our MD&A. We generated adjusted EBITDA of nearly $590 million and cash flow from operations of nearly $320 million. Adjusted operating cash flow before changes in non-cash working capital items was over $470 million, or $0.64 per share. Capital expenditures on a cash basis were $145 million in the first quarter. Capital expenditures at Eagle, Nevis Corvo, and Zingrubin are all tracking well to annual guidance. Candelaria and Chapada capital expenditures are trending above annual guidance given inflationary cost increases on capitalized stripping, including diesel, explosives, and other consumables. We generated over $185 million of free cash flow in the quarter. Lundin Mining is in a very strong financial position with cash and equivalents approaching $735 million at quarter end and a net cash position of over $700 million. Further, as announced earlier this week, our current undrawn revolving credit facility has been increased to $1.75 billion. This low-cost facility will help us maintain significant financial liquidity and flexibility as we look towards the development of Jose Maria and our other growth projects. Lastly, our Board of Directors declared a regular quarterly dividend yesterday of $0.09 Canadian per share. We believe a regular quarterly dividend is sustainable throughout the metal price cycle and considers our sustaining and growth capital requirements. I will now turn the call back to Peter.