Lundin Mining Corporation

Good morning, ladies and gentlemen, and welcome to the London Mining Second Quarter 2023 Results Call and Webcast. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, August 3, 2023. I would now like to turn the conference over to CEO, Peter Rockendale. Please go ahead, sir.

Thank you, operator, and thank you, everyone, for joining today. I will draw your attention to the cautionary statements on slide two, as we will be making several forward-looking statements during the prepared remarks and likely during the Q&A as well. On the call to assist with the presentation and answer questions are Titor Poulsen, our SVP and CFO, and Juan Andres Morel, our SVP and COO. Beginning with the key highlights for the second quarter on slide four. We delivered solid operating results across the portfolio, producing nearly 95,000 tons of copper equivalent metals. As planned, production continues to be modestly weighted to the second half of the year, and we are tracking at or above the midpoint of guidance for copper, gold, and nickel, and at the lower end for zinc. We completed the Casaroni's acquisition early in the third quarter. The operation had a strong first half of the year, producing 70,000 tons of copper on a 100% basis, and generating approximately $120 million in cash. Casarones is off to a solid start for Q3. The winter season in Chile usually runs from late May to late August, and so far, Casarones has yet to experience any seasonal or winter weather impacts. With the second quarter results, we have improved cash cost guidance for Chapada and Zinc Rubin from realized savings, lower consumable pricing, and byproduct credits. We generated a trivial net earnings for our shareholders of nearly $60 million and adjusted EBITDA of over $160 million. These results were achieved concerning lower metal prices during the quarter and impacts of adjusted realized pricing. Adjusted operating cash flow was over $110 million, including the release of working capital. Operating cash flow totals nearly $195 million. Our balance sheet means very strong with approximately $1.6 billion of liquidity today. As Tyler will speak to, we continue to realize the benefits from our foreign exchange hedging program, with approximately $14 million of gains realized in the second quarter. In addition, the mark-to-market value of the remaining hedges has a current value of over $70 million. In April, we also initiated a diesel hedging program to protect the operating cost structure at Candelaria. With yesterday's financial results, our board of directors maintained our peer-leading regular dividend of Canadian $0.09 per share for the quarter, or $0.36 on an annualized basis, which is roughly a 3.1% yield. As announced, we are very excited to have closed the Casaroni's acquisition early in the third quarter. Immediately after announcement in March, we established an integration team which has been extremely effective and has allowed us to have a very smooth transition during closing. The same team has also been outlining the numerous synergies which we believe we will start to capture this year. It is clear that many opportunities exist for synergies, especially with our current operation at Candelaria and in the future with Jose Maria. We continue to advance our Jose Maria Copper Gold project with much of the focus in the second quarter on several optimization and trade-off studies, while on-site also upgrading roads and completing the camp facilities. Discussions with a number of parties continue with respect to potential future partnerships. At Candelaria, study work evaluating the expansion of the underground mine to add roughly 20,000 tons of copper per year has been completed. We do require approval of our 2040 EIAH proceed, at which time we'll ensure the economic study is reflective of any changes. In short, we delivered a solid operating quarter and are pleased with the improved operational stability of our assets. We have been able to lower our cash cost guidance in a number of assets and are extremely focused on bringing down our costs at our remaining assets. I will now turn the call over to Juan Andres to speak to a summary of our production results.

Juan Andres Thank you, Peter. As planned, our production continues to be slightly weighted to the second half of the year. Copper production was essentially flat from the first quarter and going forward will include our recent acquisition of Cacerones. Overall, we produced approximately 95,000 tons of copper equivalent in the second quarter. Let's now look at copper. Copper production was 60,056 tons, which is essentially flat compared to the first quarter of the year. Candelaria had a good quarter, processing 6.9 million tons of ore. Slightly better grades and softer ore from phase 11 contributed to the production. We expect the second half of the year to maintain these slightly better grades from lower benches in the pit. Unscheduled downtime of the ball mill at Chapada limited throughput during the month of April. These issues have been resolved and we should see a stronger second half of the year. We expect higher grade material as we will reduce the use of stockpile and prioritize the feed of fresh ore. Copper production is tracking well to annual guidance of 296 to 325,000 tons, and this is including Cacerones production. Let's now look at zinc. Zinc production was lower quarter over quarter at 36,115 tons. Additional downtime of 11 days at Zinc Ruben was taken to the tie-in of the new sequential flotation circuit. Commissioning is progressing well, and we expect full ramp-up this year. Zinc recoveries are improving from the upper 80s into the lower 90s. At Neves Corvo, after a strong first quarter during Q2 and planned downtime at the sag mill, together with higher grade variability impacted zinc production. Ramp-up of zinc expansion project at Neves Corvo progressed in line with plans. Production is expected to increase over the course of the year with initiatives to enable ZEPP to consistently achieve nameplate capacity that will result in throughput and metal recovery improvements. For now, we see zinc production tracking to the lower end of the annual guidance of 180 to 195,000 tons. Let's now move to nickel. Nickel production of over 4,686 tons was 25% higher quarter over quarter from higher throughputs and grade profile at Eagle. Both copper and nickel production at Eagle were impacted in the first quarter by rehabilitation works at the main ramp, mechanical issues in one of the ball mills, and weather events. With a slower than planned start in Q1, but a strong second quarter, nickel production is tracking well to our annual guidance of 13,000 to 16,000 tons. Finally, gold. Production was approximately 34,000 ounces from the second quarter. As mentioned earlier, Chapada had additional maintenance downtime that impacted throughput. We continue to track well to our annual guidance for gold of 140,000 to 150,000 ounces. All in all, a good first half of the year, as Peter mentioned before. Production will be modestly weighted to the second half as we are tracking well to meet guidance on all metals. Thank you. I will now turn the call to Teir, who will provide summary of financial results.