Lundin Mining Fourth Quarter and Full Year 2021 Results

TORONTO, Feb. 17, 2022 /CNW/ - (TSX: LUN) (Nasdaq Stockholm: LUMI) Lundin Mining Corporation ("Lundin Mining" or the "Company") today reported earnings attributable to Lundin Mining shareholders of $228.8 million ($0.31 per share) in the fourth quarter and $780.3 million ($1.06 per share) for the year ended December 31, 2021. Adjusted earnings¹ were $281.5 million ($0.38 per share) for the quarter and $820.6 million ($1.11 per share) for the year. Adjusted EBITDA¹ were $623.0 million for the quarter and $1,869.4 million for the year.

Lundin Mining Fourth Quarter and Full Year 2021 Results (CNW Group/Lundin Mining Corporation)

Peter Rockandel, President and CEO commented, "We were able to take advantage of the favourable base metal price environment and set many Lundin Mining all-time financial records in 2021 including generating net earnings of nearly $880 million, adjusted EBITDA of $1.9 billion, free cash flow of over $1 billion, and dividends paid of over $225 million.

Our operations finished the year strong with excellent fourth quarter performance, including significant improvement at Candelaria. The Zinc Expansion Project at Neves-Corvo was substantially complete at year-end and commissioning is now underway. Expansion study work evaluating future growth and mine life extensions were advanced for the Candelaria underground mines, Keel zone of Eagle East and at Chapada. We are very excited about the discovery of the high-grade copper-gold Saúva prospect and potential positive implications for the Chapada expansion alternatives. Acquisition of Josemaria Resources, for its world-class copper-gold project, remains on-track for closing in the second quarter of 2022."

Summary Financial Results

	Three months ended				Twelve months ended
	December 31,				December 31,
US$ Millions (except per share amounts)	2021		2020		2021		2020
Revenue	1,018.6		529.5		3,328.8		2,041.5
Gross profit	433.2		179.4		1,369.7		498.1
Attributable net earnings^2	228.8		119.2		780.3		168.8
Net earnings	266.1		120.8		879.3		189.1
Adjusted earnings ^1,2	281.5		106.7		820.6		225.2
Adjusted EBITDA^1	623.0		234.8		1,869.4		856.9
Basic and diluted earnings per share ("EPS")^2	0.31		0.16		1.06		0.23
Adjusted EPS^1,2	0.38		0.15		1.11		0.31
Cash flow from operations	384.2		172.7		1,485.0		565.9
Adjusted operating cash flow^1	481.5		175.7		1,487.1		644.6
Adjusted operating cash flow per share^1	0.65		0.24		2.02		0.88
Free cash flow^1	247.6		79.0		1,009.6		199.4
Cash and cash equivalents	594.1		141.4		594.1		141.4
Net cash (debt)^1	563.1		(63.2)		563.1		(63.2)

¹ These are non-GAAP measures. Please refer to the Company's discussion of non-GAAP and other performance measures in its Management's Discussion and Analysis for the year ended December 31, 2021 and the Reconciliation of Non-GAAP Measures section at the end of this news release.

² Attributable to shareholders of Lundin Mining Corporation.

Highlights

Operational Performance

Production of all metals met or exceeded the Company's most recent annual production guidance. Due to increased sales volumes, production costs were higher than the prior year, however on a per unit basis cash costs were better than the most recent annual guidance for each operation.

Candelaria (80% owned): Candelaria produced, on a 100% basis, 151,719 tonnes of copper, approximately 91,000 ounces of gold and 1.4 million ounces of silver in concentrate during the year. Copper production met, and gold production exceeded, most recent guidance. Production of both metals exceeded the prior year which was impacted by strike related work stoppages and ore hardness. Due to higher sales volumes, production costs were $120.6 million higher than the prior year. Copper cash cost¹ of $1.51/lb was better than annual guidance, but slightly higher than the prior year due to the impact of higher mining costs.

Chapada (100% owned): Chapada produced 52,019 tonnes of copper and approximately 76,000 ounces of gold, with copper production exceeding guidance and gold production achieving the higher end of guidance. A new annual mill throughput record of 24.1 Mt processed was set in 2021. Copper production was also higher than the prior year, though gold production was lower due to planned lower grades. Production costs were $114.4 million higher than the prior year due to a non-cash write-down of ore stockpile inventory and inflationary impacts on costs. Full year copper cash cost of $1.05/lb was better than guidance though higher than the previous year due to higher mining costs resulting from inflationary pressures and lower gold production and sales.

Eagle (100% owned): Eagle's production of 18,353 tonnes of nickel and 18,419 tonnes of copper met guidance. Nickel production was higher than the prior year due to increased mining of high-grade Eagle East ore, while copper production was in-line with the prior year. Production costs were $25.4 million higher than the prior year primarily due to higher sales volumes. Nickel cash cost of negative $1.24/lb was better than guidance and the prior year due primarily to higher copper by-product prices.

Neves-Corvo (100% owned): Neves-Corvo produced 37,941 tonnes of copper for the year, meeting guidance and exceeding the prior year. Zinc production of 66,031 tonnes was below guidance and the prior year due to lower grades. Production costs were $71.1 million higher than the prior year due to inflationary increases and higher net sales volumes. Copper cash cost of $1.89/lb for the year was better than guidance and prior year due to higher zinc by-product prices and sales volumes.

The Zinc Expansion Project ("ZEP") continues to progress on schedule and on budget. In January 2021, ZEP officially restarted after a temporary suspension due to the COVID-19 pandemic. The ZEP was substantially completed at the end of 2021, and commissioning of the mine materials handling system and the expanded zinc processing plant commenced.

Zinkgruvan (100% owned): Zinc production of 77,766 tonnes exceeded guidance as well as the previous year due to higher grades. Lead production (22,183 tonnes) was lower than the prior year, impacted by grades and recoveries. Production costs were $9.4 million higher than the prior year, but on a per unit basis zinc cash cost of $0.53/lb for the current year was better than guidance and in-line with the prior year.

Total Production

(Contained metal in concentrate)	2021					2020
	Total	Q4	Q3	Q2	Q1	Total	Q4	Q3	Q2		Q1
Copper (t)^a	262,884	76,996	65,077	63,457	57,354	230,781	41,885	61,444	65,285		62,167
Zinc (t)	143,797	36,830	38,769	34,833	33,365	142,744	41,428	32,787	31,582		36,947
Gold (koz)^a	167	46	46	41	34	163	35	45	44		39
Nickel (t)	18,353	4,101	4,124	4,774	5,354	16,718	4,909	4,854	3,380		3,575
a.    Candelaria's production is on a 100% basis.

Corporate Highlights

• On February 18, 2021, the Company announced an increase in its quarterly cash dividend to C$0.06 per share, or C$0.24 per share annualized, compared to the quarterly dividend paid in 2020. On July 28, 2021, the Company further increased the quarterly cash dividend to C$0.09 per share, or C$0.36 per share annualized. In addition, the Company declared an inaugural semi-annual variable performance dividend of C$0.09 per share. Total dividends declared has increased more than 140% over the previous year.
• On July 6, 2021, the Company published its annual Sustainability Report which provides updates on the economic, safety, environmental and social issues that are of greatest interest to communities near the Company's operations, employees, investors, and other stakeholders.
• On July 27, 2021, the Company announced that its 24% owned associate, Koboltti Chemicals Holdings Limited, had entered into an agreement to sell its specialty cobalt business to Jervois Mining Limited ("Jervois"). The consideration at closing was $208.0 million with the right to receive up to $40.0 million in contingent cash consideration based on future performance of the business. The Company's share of net proceeds were comprised of $45.0 million in cash and approximately $8.0 million in Jervois shares. The transaction closed in the third quarter of 2021.
• On September 9, 2021, the Company announced that the President and Chief Executive Officer, Ms. Marie Inkster, would be stepping down and that Mr. Peter Rockandel, previously Senior Vice President, Corporate Development and Investor Relations would assume the role of President and Chief Executive Officer. Mr. Rockandel assumed this role as of November 1, 2021. Ms. Inkster remained on the Company's Board of Directors until December 31, 2021, at which time she stepped down and Mr. Rockandel was appointed in her place.
• On September 13, 2021, the Company reported its Mineral Resource and Mineral Reserve estimates as at June 30, 2021.
• On December 20, 2021, the Company announced it had entered into a definitive agreement to acquire all of the issued and outstanding shares of Josemaria Resources Inc. ("Josemaria Resources") for an implied equity value of approximately $485 million. The consideration will be subject to a total maximum cash consideration of approximately C$183 million and a total maximum share consideration of approximately 39.7 million Lundin Mining shares, equating to 30% of the consideration payable in cash and 70% payable in Lundin Mining shares. The Company will acquire 100% of the Josemaria copper-gold project located in the San Juan Province of Argentina.
• On February 10, 2022, the Company announced the discovery of a new copper-gold mineralized system called Saúva, located approximately 15 kilometres north of the Chapada mine. Following the initial discovery of Sauva in September 2021, an aggressive exploration drilling campaign was commenced with five drill rigs to better define the potential size of the discovery.

Financial Performance

• Gross profit for the year ended December 31, 2021 was $1,369.7 million, an increase of $871.6 million in comparison to the prior year due primarily to higher realized metal prices ($1,030.6 million), partially offset by higher production costs due to inflationary price increases.
• For the year ended December 31, 2021, net earnings of $879.3 million were $690.2 million higher than the prior year and adjusted earnings of $820.6 million were higher than the prior year primarily due to higher gross profit and higher income from investment in associates partially offset by higher income tax expense.

Financial Position and Financing 

• Cash and cash equivalents increased by $452.6 million during 2021, ending the year at $594.1 million. Cash flow from operations of $1,485.0 million was used to fund capital expenditures of $532.1 million and financing activities of $496.6 million, including debt repayments, distributions of dividends to shareholders ($227.4 million) and to non-controlling interests ($56.0 million).
• As at December 31, 2021, the Company had a net cash position of $563.1 million. As at February 17, 2022, the Company had cash and net cash balances of approximately $650.0 million and $620.0 million, respectively.

Outlook

Production, cash cost and exploration investment guidance for 2022 remains unchanged from that provided on November 22, 2021 (see news release "Lundin Mining Provides Operational Outlook & Update"). Capital expenditure guidance for the operations has not changed, but the Company has approved a global Enterprise Resource Planning ("ERP") software upgrade project to optimize and standardize systems which is included in other capital expenditures in the guidance below.

2022 Production and Cash Cost Guidance

			Production			Cash Costs^a
Copper (t)	Candelaria (100%)		155,000	-	165,000	$1.55/lb^b
	Chapada		53,000	-	58,000	$1.60/lb^c
	Eagle		15,000	-	18,000
	Neves-Corvo		33,000	-	38,000	$1.80/lb^b
	Zinkgruvan		2,000	-	3,000
	Total		258,000	-	282,000
Zinc (t)	Neves-Corvo		110,000	-	120,000
	Zinkgruvan		78,000	-	83,000	$0.55/lb^b
	Total		188,000	-	203,000
Gold (oz)	Candelaria (100%)		83,000	-	88,000
	Chapada		70,000	-	75,000
	Total		153,000	-	163,000
Nickel (t)	Eagle		15,000	-	18,000	$(0.25)/lb

a. Cash costs are based on various assumptions and estimates, including but not limited to: production volumes, as noted above, commodity prices (Cu: $3.90/lb, Zn: $1.15/lb, Pb: $0.90/lb, Au: $1,800/oz), foreign exchange rates (€/USD:1.20, USD/SEK:8.20, USD/CLP:700, USD/BRL:5.10) and production costs.
b.  68% of Candelaria's total gold and silver production are subject to a streaming agreement and silver production at Zinkgruvan and Neves-Corvo are also subject to streaming agreements. Cash costs are calculated based on receipt of approximately $420/oz gold and $4.20/oz to $4.52/oz silver.
c. Chapada cash costs is calculated on a by-product basis and do not include the effects of its copper stream agreements. Effects of copper stream agreements are reflected in copper revenue and will impact realized revenue per pound.

2022 Capital Expenditure Guidance

	($ millions)
Candelaria (100% basis)	370
Chapada	65
Eagle	10
Neves-Corvo	95
Zinkgruvan	60
Other	25
Total Sustaining Capital^a	625
Zinc Expansion Project (Neves-Corvo)	30
Total Capital Expenditures	655

a.		This is supplementary financial measure. Please refer to the Company's discussion of non-GAAP and other performance measures in its Management's Discussion and Analysis for the year ended December 31, 2021.

2022 Exploration Investment Guidance

Total planned exploration expenditures are expected to be $45.0 million in 2022, unchanged from previous guidance. Approximately $40.0 million will be spent supporting significant in-mine and near-mine targets at our operations ($15.0 million at Candelaria, $10.0 million at Chapada, $8.0 million at Neves-Corvo, $5.0 million at Zinkgruvan and $2.0 million at Eagle). The remaining amounts are planned to advance activities on exploration stage and new business development projects.

About Lundin Mining

Lundin Mining is a diversified Canadian base metals mining company with operations in Brazil, Chile, Portugal, Sweden and the United States of America, primarily producing copper, zinc, gold and nickel.

The information in this release is subject to the disclosure requirements of Lundin Mining under the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below on February 17, 2022 at 17:30 Eastern Time.

Technical Information

The scientific and technical information in this press release has been prepared in accordance with the disclosure standards of National Instrument 43-101 ("NI 43-101") and has been reviewed and approved by Jeremy Weyland, P.Eng., Senior Manager of Studies of the Company, a "Qualified Person" under NI 43-101. Mr. Weyland has verified the data disclosed in this release and no limitations were imposed on his verification process.

Reconciliation of Non-GAAP Measures

The Company uses certain performance measures in its analysis. These performance measures have no standardized meaning within generally accepted accounting principles under International Financial Reporting Standards and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. For additional details please refer to the Company's discussion of non-GAAP and other performance measures in its Management's Discussion and Analysis for the year ended December 31, 2021 which is available on SEDAR at www.sedar.com.

Adjusted EBITDA can be reconciled to the Company's Consolidated Statement of Earnings as follows:

		Three months ended December 31,					Twelve months ended December 31,
($thousands)			2021		2020		2021		2020
Net earnings			266,070		120,772		879,301		189,057
Add back:
Depreciation, depletion and amortization			145,367		85,338		522,764		447,474
Finance income and costs			11,070		8,403		41,387		46,624
Income taxes			127,495		18,393		365,686		152,421
			550,002		232,906		1,809,138		835,576
Unrealized foreign exchange			24,121		(280)		27,648		(12,582)
Revaluation gain on derivative liability			4,581		(1,405)		3,836		21,812
Revaluation of marketable securities			(2,795)		778		(7,094)		707
Income from investment in associates			(2,661)		(322)		(24,895)		(3,302)
Ore stockpile inventory write-down			65,025		-		65,025		-
Business interruption insurance settlement			(16,000)		-		(16,000)		-
Project standby and suspension costs			-		3,702		-		10,043
Labour action costs			-		5,133		-		5,133
Other			681		(5,715)		11,758		(518)
Total adjustments - EBITDA			72,952		1,891		60,278		21,293
Adjusted EBITDA			622,954		234,797		1,869,416		856,869

Adjusted earnings and adjusted earnings per share can be reconciled to the Company's Consolidated Statement of Earnings as follows:

		Three months ended December 31,				Twelve months ended December 31,
($thousands, except share and per share amounts)			2021	2020		2021	2020
Net earnings attributable to:
Lundin Mining shareholders			228,780	119,199		780,348	168,798
Add back:
Total adjustments - EBITDA			72,952	1,891		60,278	21,293
Tax effect on adjustments			(19,088)	(33)		(21,817)	11,886
Deferred tax arising from foreign exchange on non-monetary balances			1,171	(1,653)		6,115	57,962
Deferred tax arising from foreign exchange translation			(2,652)	(10,265)		(4,385)	(18,278)
Tax asset revaluations			-	-		-	5,675
Prior period tax refund and interest			-	-		-	(19,161)
Other			368	(2,419)		64	(2,934)
Total			52,751	(12,479)		40,255	56,443
Adjusted earnings			281,531	106,720		820,603	225,241
Basic weighted average number of shares outstanding			735,233,287	734,346,812		736,789,666	734,074,514
Net earnings attributable to shareholders			0.31	0.16		1.06	0.23
Total adjustments			0.07	(0.01)		0.05	0.08
Adjusted earnings per share			0.38	0.15		1.11	0.31

Adjusted operating cash flow and adjusted operating cash flow per share can be reconciled to cash provided by operating activities as follows:

		Three months ended December 31,				Twelve months ended December 31,
($thousands, except share and per share amounts)		2021		2020		2021		2020
Cash provided by operating activities		384,177		172,665		1,484,954		565,888
Changes in non-cash working capital items		97,326		3,071		2,136		78,714
Adjusted operating cash flow		481,503		175,736		1,487,090		644,602
Basic weighted average number of shares outstanding		735,233,287		734,346,812		736,789,666		734,074,514
Adjusted operating cash flow per share		0.65		0.24		2.02		0.88

Free cash flow can be reconciled to cash provided by operating activities as follows:

		Three months ended December 31,				Twelve months ended December 31,
($thousands)		2021		2020		2021		2020
Cash provided by operating activities		384,177		172,665		1,484,954		565,888
Sustaining capital expenditures		(136,560)		(93,657)		(475,373)		(366,501)
Free cash flow		247,617		79,008		1,009,581		199,387

Net cash (debt) can be reconciled as follows:

($thousands)		December 31, 2021		December 31, 2020
Cash and cash equivalents		594,069		141,447
Current portion of total debt and lease liabilities		14,617		116,942
Debt and lease liabilities		16,386		86,106
		31,003		203,048
Deferred financing fees (netted in above)		-		1,622
		31,003		204,670
Net cash (debt)		563,066		(63,223)

Cash and All-in Sustaining Costs can be reconciled to the Company's operating costs as follows:

Twelve months ended December 31, 2021
Operations		Candelaria		Chapada		Eagle		Neves-Corvo		Zinkgruvan
($000s, unless otherwise noted)		(Cu)		(Cu)		(Ni)		(Cu)		(Zn)		Total
Sales volumes (Contained metal in concentrate):
Tonnes		148,213		47,123		15,012		36,618		64,056
Pounds (000s)		326,753		103,888		33,096		80,729		141,219
Production costs												1,436,278
Less: Royalties and other												(57,887)
Ore stockpile inventory write-down												(65,025)
												1,313,366
Deduct: By-product credits												(646,950)
Add: Treatment and refining charges												122,330
Cash cost		494,213		108,782		(40,883)		152,416		74,218		788,746
Cash cost per pound ($/lb)		1.51		1.05		(1.24)		1.89		0.53
Add: Sustaining capital expenditure		312,388		52,275		16,279		52,552		41,325
Royalties		-		13,858		28,241		9,856		-
Interest expense		4,818		3,436		708		75		71
Leases & other		10,487		3,463		9,202		5,408		5,499
All-in sustaining cost		821,906		181,814		13,547		220,307		121,113
AISC per pound ($/lb)		2.52		1.75		0.41		2.73		0.86
($000s, unless otherwise noted)		2022 Guidance
Cash cost		570,000		200,000		(10,000)		150,000		100,000
Cash cost per pound($/lb)		1.55		1.60		(0.25)		1.80		0.55
Twelve months ended December 31, 2020
Operations		Candelaria		Chapada		Eagle		Neves-Corvo		Zinkgruvan
($000s, unless otherwise noted)		(Cu)		(Cu)		(Ni)		(Cu)		(Zn)		Total
Sales volumes (Contained metal in concentrate):
Tonnes		123,183		47,119		12,481		30,799		62,150
Pounds (000s)		271,572		103,879		27,516		67,900		137,017
Production cost												1,095,911
Less: Royalties and other												(47,906)
Labour action cost												(5,133)
												1,042,872
Deduct: By-product credits												(516,436)
Add:  Treatment and refining charges												115,243
Cash cost		394,919		30,399		2,620		141,945		71,796		641,679
Cash cost per pound ($/lb)		1.45		0.29		0.10		2.09		0.52
Add: Sustaining capital expenditure		216,018		38,646		11,259		63,360		36,946
Royalties		-		11,550		18,401		2,146		-
Interest expense		4,242		4,440		1,250		363		68
Leases & other		6,945		2,588		8,082		6,818		2,974
All-in sustaining cost		622,124		87,623		41,612		214,632		111,784
AISC per pound ($/lb)		2.29		0.84		1.51		3.16		0.82

Three months ended December 31, 2021
Operations		Candelaria		Chapada		Eagle		Neves-Corvo		Zinkgruvan		Total
($000s, unless otherwise noted)		(Cu)		(Cu)		(Ni)		(Cu)		(Zn)
Sales volumes (Contained metal in concentrate):
Tonnes		43,417		13,628		3,390		10,668		18,005
Pounds (000s)		95,718		30,045		7,474		23,519		39,694
Production costs												440,032
Less: Royalties and other												(15,192)
Ore stockpile inventory write-down												(65,025)
												359,815
Deduct: By-product credits												(180,394)
Add: Treatment and refining charges												35,963
Cash cost		125,630		32,255		(1,623)		36,065		23,057		215,384
Cash cost per pound ($/lb)		1.31		1.07		(0.22)		1.53		0.58
Add: Sustaining capital expenditure		85,747		14,419		3,865		19,204		13,013
Royalties		-		4,061		6,307		4,280		-
Interest expense		1,271		859		177		18		17
Leases & other		2,557		980		1,968		1,244		1,251
All-in sustaining cost		215,205		52,574		10,694		60,811		37,338
AISC per pound ($/lb)		2.25		1.75		1.43		2.59		0.94
Three months ended December 31, 2020
Operations		Candelaria		Chapada		Eagle		Neves-Corvo		Zinkgruvan		Total
($000s, unless otherwise noted)		(Cu)		(Cu)		(Ni)		(Cu)		(Zn)
Sales volumes (Contained metal in concentrate):
Tonnes		16,574		10,966		3,714		4,708		22,399
Pounds (000s)		36,539		24,176		8,188		10,379		49,381
Production costs												264,829
Less: Royalties and other												(20,691)
Labour action cost												(5,133)
												239,005
Deduct: By-product credits												(143,194)
Add: Treatment and refining charges												25,858
Cash cost		79,329		(4,382)		(7,317)		29,591		24,448		121,669
Cash cost per pound ($/lb)		2.17		(0.18)		(0.89)		2.85		0.50
Add: Sustaining capital expenditure		36,289		18,659		2,331		23,612		12,764
Royalties		-		3,676		5,201		325		-
Interest expense		1,040		1,113		312		137		21
Leases & other		1,849		662		2,068		1,855		1,430
All-in sustaining cost		118,507		19,728		2,595		55,520		38,663
AISC per pound ($/lb)		3.24		0.82		0.32		5.35		0.78

Cautionary Statement on Forward-Looking Information

Certain of the statements made and information contained herein is "forward-looking information" within the meaning of applicable Canadian securities laws. All statements other than statements of historical facts included in this document constitute forward-looking information, including but not limited to statements regarding the Company's plans, prospects and business strategies; the Company's guidance on the timing and amount of future production and its expectations regarding the results of operations; expected costs; permitting requirements and timelines; timing and possible outcome of pending litigation; the results of any Preliminary Economic Assessment, Feasibility Study, or Mineral Resource and Mineral Reserve estimations, life of mine estimates, and mine and mine closure plans; anticipated market prices of metals, currency exchange rates, and interest rates; the development and implementation of the Company's Responsible Mining Management System; the Company's ability to comply with contractual and permitting or other regulatory requirements; anticipated exploration and development activities at the Company's projects; expectations and ability to complete the Josemaria Resources Inc. transaction; the Company's integration of acquisitions and any anticipated benefits thereof, including the Josemaria Resources Inc. transaction; and expectations for other economic, business, and/or competitive factors. Words such as "believe", "expect", "anticipate", "contemplate", "target", "plan", "goal", "aim", "intend", "continue", "budget", "estimate", "may", "will", "can", "could", "should", "schedule" and similar expressions identify forward-looking statements.

Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation, the expectations and beliefs of management, including that the Company can access financing, appropriate equipment and sufficient labor; assumed and future price of copper, nickel, zinc, gold and other metals; anticipated costs; ability to achieve goals; the prompt and effective integration of acquisitions; that the political environment in which the Company operates will continue to support the development and operation of mining projects; and assumptions related to the factors set forth below. While these factors and assumptions are considered reasonable by Lundin Mining as at the date of this document in light of management's experience and perception of current conditions and expected developments, these statements are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements and undue reliance should not be placed on such statements and information. Such factors include, but are not limited to: risks inherent in mining including but not limited to risks to the environment, industrial accidents, catastrophic equipment failures, unusual or unexpected geological formations or unstable ground conditions, and natural phenomena such as earthquakes, flooding or unusually severe weather; uninsurable risks; global financial conditions and inflation; changes in the Company's share price, and volatility in the equity markets in general; volatility and fluctuations in metal and commodity demand and prices; changing taxation regimes; delays or the inability to obtain, retain or comply with permits; reliance on a single asset; unavailable or inaccessible infrastructure, infrastructure failures, and risks related to ageing infrastructure; risks related to negative publicity with respect to the Company or the mining industry in general; health and safety risks; pricing and availability of key supplies and services; the threat associated with outbreaks of viruses and infectious diseases, including the COVID-19 virus; the inability to currently control Josemaria Resources Inc. and the ability to satisfy the conditions and consummate the Josemaria Resources Inc. transaction on the proposed terms and expected schedule; exchange rate fluctuations; risks relating to attracting and retaining of highly skilled employees; risks inherent in and/or associated with operating in foreign countries and emerging markets; climate change; regulatory investigations, enforcement, sanctions and/or related or other litigation; existence of significant shareholders; uncertain political and economic environments, including in Brazil and Chile; risks associated with acquisitions and related integration efforts, including the ability to achieve anticipated benefits, unanticipated difficulties or expenditures relating to integration and diversion of management time on integration; indebtedness; liquidity risks and limited financial resources; funding requirements and availability of financing; exploration, development or mining results not being consistent with the Company's expectations; risks related to the environmental regulation and environmental impact of the Company's operations and products and management thereof; activist shareholders and proxy solicitation matters; reliance on key personnel and reporting and oversight systems, as well as third parties and consultants in foreign jurisdictions; historical environmental liabilities and ongoing reclamation obligations; information technology and cybersecurity risks; risks related to mine closure activities, reclamation obligations, and closed and historical sites; social and political unrest, including civil disruption in Chile; the inability to effectively compete in the industry; financial projections, including estimates of future expenditures and cash costs, and estimates of future production may be unreliable; actual ore mined and/or metal recoveries varying from Mineral Resource and Mineral Reserve estimates, estimates of grade, tonnage, dilution, mine plans and metallurgical and other characteristics; ore processing efficiency; risks associated with the estimation of Mineral Resources and Mineral Reserves and the geology, grade and continuity of mineral deposits including but not limited to models relating thereto; enforcing legal rights in foreign jurisdictions; community and stakeholder opposition; changes in laws, regulations or policies including but not limited to those related to mining regimes, permitting and approvals, environmental and tailings management, labor, trade relations, and transportation; risks associated with the structural stability of waste rock dumps or tailings storage facilities; dilution; risks relating to dividends; conflicts of interest; counterparty and credit risks and customer concentration; the estimation of asset carrying values; challenges or defects in title; internal controls; relationships with employees and contractors, and the potential for and effects of labor disputes or other unanticipated difficulties with or shortages of labor or interruptions in production; compliance with foreign laws; potential for the allegation of fraud and corruption involving the Company, its customers, suppliers or employees, or the allegation of improper or discriminatory employment practices, or human rights violations; compliance with environmental, health and safety regulations and laws; and other risks and uncertainties, including but not limited to those described in the "Risk and Uncertainties" section of this AIF and the "Managing Risks" section of the Company's MD&A for the year ended December 31, 2021, which are available on SEDAR at www.sedar.com under the Company's profile. All of the forward-looking statements made in this document are qualified by these cautionary statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, forecast or intended and readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information. Accordingly, there can be no assurance that forward-looking information will prove to be accurate and forward-looking information is not a guarantee of future performance. Readers are advised not to place undue reliance on forward-looking information. The forward-looking information contained herein speaks only as of the date of this document. The Company disclaims any intention or obligation to update or revise forward–looking information or to explain any material difference between such and subsequent actual events, except as required by applicable law.

SOURCE Lundin Mining Corporation

Mark Turner, Vice President, Business Valuations and Investor Relations: [phone]; Irina Kuznetsova, Manager, Investor Relations: [phone]; Robert Eriksson, Investor Relations Sweden: [phone]