Lundin Mining Corporation

Ladies and gentlemen, thank you for standing by. Welcome to Lundin Mining's second quarter 2026 financial results call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. And to ask a question during the session, you would need to press star 11 on your telephone. You would then hear an automated message of us and your hand is raised. and to withdraw your question please press star 11 again. Please be advised that today's conference is being recorded. I would like now to turn the conference over to Jack Lundin, President and Chief Executive Officer. Please go ahead.

Good morning and welcome to Lundin Mining's second quarter 2026 conference call. Thank you for joining us today. A press release and presentation summarizing the quarter's results are available on our website where a replay of this call will also be made available. Before we begin, I would like to remind everyone that today's presentation and certain comments during the call, including our Q&A, will include forward-looking information that is subject to risks and uncertainties. I draw your attention to the cautionary statements on slide two and encourage you to review our MD&A and related filings available on CDAR for a full description of the relevant risk factors. As a reminder, all amounts discussed on today's call are in US dollars unless otherwise noted. Joining me on the call today is Juan Andres Morel, our Chief Operating Officer, and Teitur Poulsen, our Chief Financial Officer. Turning to slide four, the second quarter was another productive period for the company, operationally, financially, and strategically. In line with our corporate vision, we completed the acquisition of an additional 5% interest in Caceronas from our partner, JX Advanced Metals, bringing our total ownership to 75%. We also acquired a 31% interest in the Los Salados project, all for total consideration of $215 million. Los Helados is a large copper gold deposit located approximately 17 kilometers south of Casarones. This transaction strengthens our mineral resource base while providing compelling long-term growth optionality in a district we know well. On June 17th, we hosted our second annual Capital Markets Day, where we built on our strategic vision from last year and updated our financial outlook for the next five and 10 years. We highlighted multiple low capital intensive brownfield expansion opportunities at our three existing operations, Candelaria, Casaronas, and Chapada, alongside the transformational long-term growth potential of the Vicuña project. These opportunities collectively underpin our path to becoming a top 10 global copper producer. At the CMD, we approved the construction of an additional ball mill at Chapada which will result in improved recoveries at the operation in anticipation of the SAUVA growth project. Another tangible step in converting our brownfield pipeline into production. Construction is expected to commence by year end with commissioning targeted for late 2027. At Vicuña, a significant milestone was achieved during the quarter with the approval of the inclusion of the Jose Maria and Filo del Sol deposits under Argentina's RIGI PELTS program. Vicuña is the first copper mining project in Argentina to receive this more favorable designation. The approval provides long-term fiscal stability and investment certainty and is a meaningful step forward as we advance towards a stage one sanctioning decision. Subsequent to the quarter, Vicuña announced a long-term royalty and infrastructure trust agreement with the San Juan province over the life of mine, which consolidates pre-existing provincial royalties on the Filo del Sol and Jose Maria deposits into one framework. This includes a 3% mining royalty and a 1.5% gross revenue royalty to form a provincial infrastructure trust. The agreement provides long-term economic certainty and enhances the stability of the operating framework as we continue to progress toward a sanctioning decision. Lastly, on this slide, we repurchased approximately 2.2 million shares during the quarter, bringing our total year to date up to 6.1 million, which is consistent with our confidence in the intrinsic value of the company and the strength of our balance sheet. Since 2017, We have returned over $1.8 billion to shareholders through dividends and buybacks. Operationally, the quarter was very consistent, benefiting from disciplined execution across our operations and a supportive copper price environment. Copper production of approximately 76,900 tons at a consolidated cash cost of $2.11 per pound translated into $1.2 billion in revenue and $360 million of free cash flow from operations, further strengthening our balance sheet and providing the financial flexibility to continue investing in our growth pipeline while returning capital to shareholders. Despite the storm event after the quarter, which Juan Andres will talk to in more detail in the operations section, at the halfway point of the year, we continue to remain on track to achieve our annual production guidance range. Our operations have performed well, giving us confidence in our ability to deliver on our full year objectives. Operational costs during the quarter were impacted by higher diesel prices. Should current pricing persist throughout the remainder of the year, we do still expect to be within our guidance cost outlook, our guided cost outlook, excuse me. Looking ahead, our focus continues to be on safety performance, delivering operational excellence, advancing our portfolio of organic growth opportunities and progressing the Vicuña project toward a sanctioning decision. Supported by high margin, long life assets, a disciplined capital allocation strategy, and one of the strongest copper profiles in the industry, we believe Lundin Mining is well positioned to deliver sustainable long-term value for our shareholders. I will now hand it over to Juan Andres to walk through the operational results in more detail.

Thank you, Jack, and good morning, everyone. Our operations performed consistently in the second quarter, and we remain on track to meet our annual production guidance for both copper and gold. Subsequent to the end of the quarter, the storm in Chile impacted operations at Cacerones, and I will provide more detail on this later on in the presentation. For the quarter, copper production from our three operations totaled 76,900 tons as mentioned previously. And for the first half of the year, we produced approximately 157,000 tons of copper. Gold production for the quarter was 33,000 ounces, bringing our year-to-date gold production to approximately 65,000 ounces. When we compare our first half copper production to our full year guidance range of 310,000 to 335,000 tons, We are tracking to guidance despite the weather related events mentioned earlier, which is consistent with our expectations that production will be second half waiter, particularly at Candelaria. For gold, we're also well positioned to achieve our full year guidance of 134,000 to 149,000 ounces. Overall, the portfolio is performing in line with our planning assumptions. and our operations are delivering the consistency we need to meet our targets. Moving to each operation individually, at Cacerones copper production for the quarter was approximately 34,000 tons with higher grades from phase six and strong throughput continuing to benefit from our full potential program initiatives. Year-to-date production is 73,000 tons. Cover production at Candelaria for the quarter was approximately 31,000 tons, with mining rates somewhat lower than the first quarter, reflecting additional shovel maintenance and ramp work in phase 11 of the open pit. We remain confident that Candelaria is on track to meet its full year guidance. Candelaria's production profile remains second half weighted, with higher grades planned, expected in the third and fourth quarter as we continue advancing phase 12. Gold production for the quarter was approximately 18,000 ounces in line with expectations. At Chapada, we had a good quarter with strong throughput and copper grades slightly better than recent periods as we access higher grade portions in the South Pit. Copper production for the quarter was approximately 12,000 tons and gold production was 16,000 ounces. We anticipate production levels to remain consistent with Q2 through the second half of the year. Subsequent to the quarter, Chile's Atacama region suffered severe winter storms that caused regional floodings and significant snowfall. Candelaria saw over 35 millimeters of rain and Cacedones had 3.4 meters of snow. The country reported 13 fatalities and over 2,200 injuries associated with the storm, a truly tragic event that impacted several regions in Chile. I want to acknowledge the Cacerones and Candelaria teams for all their hard work and proactively taking precautionary measures to protect employees and a special thank you to the crew at Cacerones that were isolated at the site during the storm for their dedication. We're fortunate that everyone was safe and no injuries were reported at our operations. Mining operations at Candelaria were briefly impacted by heavy rainfall. However, the mill was able to continue to operate using existing ore stockpiles. Mining operations have since returned to full capacity, and the company remains on track to meet its full-year production guidance. At Cacerones, operations were disrupted due to the heavy snowfall and high winds, which limited access to site and knocked out power for 12 days. Backup power generators supported critical activities during this time. Winds reached over 125 kilometers per hour, and ice buildup damaged two power line towers that required repairs. Crews worked all last week to remove the damaged structure and replace it. The photo on the right highlights the damage to the upper tower and cross arm of one of the towers. Power has been restored at site, and the restart of operations at Cacerones is currently underway. Initial concentrate production is expected by the end of the week and full capacity early next week. Prior to the storm, Cacerones was tracking to the upper end of the copper guidance, producing 73,000 tons in the first half of the year against the range of 130,000 tons to 140,000 tons. We account for some weather-related disruptions during our planning process but not to this magnitude. After reviewing the mine plan for the remainder of the year and making some adjustments, we now anticipate coming in on the lower half of the guidance range at Cacerones. This assumes that the weather cooperates with us for the rest of the year and operations perform well in the third and fourth quarters. Cash cost guidance at Cacerones remains the same. Year-to-date, we're tracking below the guidance range at $1.85 per pound, and we now anticipate being within the cost guidance range of Cacerones, which is $2.05 per pound to $2.25 per pound. Candelaria and Chapada continue to perform well, and we reiterate our full-year consolidated production guidance range of $310,000 to 335,000 tons of copper and 134,000 to 149,000 ounces of coal for the year. I will now turn the call over to Teitur to provide a summary on our financial results.