The following is a summary of the Lundin Mining Corporation (LUNMF) Q1 2024 Earnings Call Transcript:
Financial Performance:
Lundin Mining reported quarterly copper production of 88,000 tons, with $363 million in adjusted EBITDA and $68 million in free cash flow from operations.
A regular quarterly dividend of CAD0.09 per share was declared, contributing to the over $1.1 billion in total dividends since 2017.
The company reported an increase in mineral reserves estimates by 26% year-over-year to 10.6 million tons of copper, indicating potential for increased revenues.
Lundin Mining has seen improved cost due to reduced waste movement and effective mine plan optimization.
A net cash cost between 195 to 215 for the year was guided, placing it likely in the upper half of that range.
The RIGI Bill is expected to reduce the company's effective tax rate by more than 10%.
Business Progress:
Following successful drilling, copper production is expected to increase in the second half of the year due to improved grade profiles at Candelaria, Chapada, and Neves-Corvo.
With hedges placed for a significant proportion of exposure to Chilean pesos and Brazilian reais, the company continues its proactive risk management strategy.
The company is considering an increase in ownership at Caserones, which could add approximately 25,000 tons of attributable copper to the annual production profile.
Infrastructure investments are being made with Caserones and Candelaria contributing the most.
Initiatives aimed at reducing costs and improving margins are being implemented across its Latin American sites.
Lundin's Vicuña District project Josemaria is developing well with the potential for strategic partnerships.
The company is exploring cross-border aspects for Josemaria including water, power and concentrate shipments.
Despite challenges at Neves-Corvo, full year production guidance is deemed achievable.
More details: LUNDIN MINING CORP IR
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