Jack Lundin, President and CEO commented, "In 2025 we delivered our best performance in the history of the Company. We generated record revenue from continuing operations of $4.1 billion for the year, including $1.3 billion in the fourth quarter, alongside adjusted EBITDA of $1.9 billion for the year and $686 million in the quarter. These exceptional operational and financial results enabled us to exit the year in a net cash position, while purchasing over 15 million shares through our share buyback program. Additionally, we have made significant progress toward upsizing our Revolving Credit Facility to $4.5 billion, adding financial strength as we enter the next phase of growth for the Company.
"We continued to advance our growth initiatives including delivering the world's largest greenfield copper-gold-silver maiden resource in the last 30 years at Filo del Sol deposit, adding a significant amount of these metals to our Mineral Resource inventory. In the near-term, we improved our guidance forecast over the next two years, mainly driven by the improvements in cathode production at Caserones. Lastly, we have made good progress and continue to advance the development plan of Sauva at our Chapada operation and will look to sanction this project prior to year end.
"Earlier this week we announced the results of the integrated technical report on the Vicuña project, highlighting a project capable of producing over 500,000 tonnes of copper, 800,000 ounces of gold and 20 million ounces of silver which would position it in the top 5 copper, gold and silver mines in the world. At the end of 2025, Vicuña submitted its application for fiscal stability in Argentina under the RIGI scheme to support the development of the project, positioning Lundin Mining for long-term value creation. A final investment decision on the Vicuña project is targeted before the end of 2026." 1
Fourth Quarter and Full Year Operational and Financial Highlights
The Company completed three major transactions this year, improving its asset portfolio and long-term growth outlook while achieving strong operational and financial results. The Company exceeded its original copper guidance and met revised guidance across all metals. Record annual and quarterly revenue enabled the Company to exit the year in a net cash position. In parallel, the Company continued to advance its growth initiatives, Vicuña Corp. submitted a fiscal stability agreement application in Argentina ("RIGI PEELP") in the fourth quarter and announced the results of an integrated technical study (the Preliminary Economic Assessment "PEA" or "Study") on February 16, 2026.
Fourth Quarter Highlights
Copper Production2: Consolidated copper production of 87,032 tonnes at a consolidated copper cash cost3 of $1.88 /lb.
Other Production2: During the quarter, 34,129 ounces of gold and 2,174 tonnes of nickel were produced.
Revenue: $1,353.7 million in the fourth quarter, comprised of $1,301.5 million from continuing operations with a realized copper price3 of $5.89 /lb and a realized gold price3 of $4,412 /oz, and $52.2 million from discontinued operations4.
Net Earnings and Adjusted Earnings3: Net earnings attributable to shareholders of the Company was $767.2 million, comprised of $659.9 million ($0.77 per share) net earnings from continuing operations and $107.3 million net earnings from discontinued operations. Adjusted earnings was $370.4 million, comprised of $363.7 million ($0.42 per share) from continuing operations and $6.7 million from discontinued operations.
Adjusted EBITDA3: $700.6 million for the quarter, $686.4 million generated from continuing operations and $14.2 million generated from discontinued operations.
Cash Generation: Cash provided by operating activities in the quarter was $560.9 million, comprised of $533.0 million from continuing operations and $27.9 million from discontinued operations. Free cash flow from operations3 was $412.5 million, $388.3 million from continuing operations and $24.2 million from discontinued operations, which included a working capital build of $132.1 million from continuing operations.
Net cash3: As at December 31, the net cash position of the Company was $77.4 million which includes $22.0 million cash from discontinued operations.
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1 Adjusted EBITDA is a non-GAAP measure. Please refer to the Company's discussion of non-GAAP and other performance measures in its Management Discussion and Analysis ("MD&A") for the year ended December 31, 2025 and the Reconciliation of Non-GAAP Measures section at the end of this news release.
2 Production includes continuing operations and Eagle to align to 2025 production guidance.
3 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 ("MD&A") for the year ended December 31, 2025 and the Reconciliation of Non-GAAP Measures section at the end of this news release.
4 At December 31, 2025, the Eagle reporting segment met the criteria to be classified as held-for-sale and discontinued operations. Earnings (loss) from discontinued operations includes the financial results of Eagle, Neves-Corvo and Zinkgruvan reporting segments.
Full Year 2025 Highlights
Copper Production2: Consolidated copper production of 331,232 tonnes of copper at a consolidated cash cost of $1.87/lb, including 8,906 tonnes from Eagle, was within the upper half of the most recent annual copper production guidance and exceeded the upper end of the original annual copper production guidance.
Other Production2: During the year, 141,859 ounces of gold and 9,907 tonnes of nickel were produced. Production for all metals was within or above all guidance ranges.
Record Revenue: $4,462.5 million for the full year, comprised of $4,053.2 million from continuing operations with a realized copper price3 of $4.91 /lb and a realized gold price3 of $3,662/oz, and $409.3 million from discontinued operations.
Adjusted EBITDA3: $2,037.3 million for the full year, $1,917.1 million from continuing operations and $120.2 million from discontinued operations.
Net Earnings and Adjusted Earnings3: Net earnings attributable to shareholders of the Company was $1,283.0 million, comprised of net earnings of $1,047.2 million ($1.22 per share) from continuing operations and net earnings of $235.8 million from discontinued operations. Adjusted earnings was $769.0 million, $687.9 million ($0.80 per share) from continuing operations and $81.1 million from discontinued operations.
Cash Generation: During the year, cash provided by operating activities was $1,342.6 million of which $1,207.9 million from continuing operations and $134.7 million from discontinued operations. Free cash flow from operations3 was $835.8 million of which $773.6 million was from continuing operations and $62.2 million was from discontinued operations, which included a non-cash working capital build of $414.0 million from continuing operations.
Growth: The Company is continuing to advance its growth initiatives and completed several significant milestones during the year to achieve its long term goal of becoming a top ten copper producer:
On January 15, 2025, the Company completed the joint acquisition of Filo Corp. with BHP and formed the 50/50 joint arrangement, Vicuña Corp. ("Vicuña"), to hold the Filo del Sol project and the Josemaria project.
On April 16, 2025, the Company completed the sale of Neves-Corvo and Zinkgruvan to Boliden AB for cash proceeds of $1,314.6 million, net of cash disposed and transaction costs.
On May 4, 2025, the Company announced an initial Mineral Resource estimate for the Filo del Sol sulphide deposit, an update to the Mineral Resource estimate for the Filo del Sol oxide deposit and an update to the Mineral Resource estimate for the Josemaria deposit, which highlighted the combined project ("Vicuña Project") as one of the largest copper, gold and silver discoveries in the last 30 years.
On December 11, 2025, Vicuña Corp. applied for a fiscal stability agreement in Argentina, RIGI PEELP.
On December 18, 2025, the Company entered into a definitive agreement to sell its 100% interest in Eagle mine to Talon Metals Corp. ("Talon") in return for 18.4% of Talon's issued and outstanding shares. The transaction was completed on January 9, 2026.
Shareholder Returns: A quarterly dividend of C$0.0275 per share has been declared in the quarter. During the year, the Company paid dividends totaling C$0.1725 per share. In addition, the Company purchased 2,029,380 common shares during the quarter at an average share price of C$26.08 for total consideration of $46.0 million under its normal course issuer bid. During the year, Lundin Mining acquired 15,088,180 common shares at a cost of $150.0 million at an average share price of C$14.05.
Outlook: Copper production is forecast to remain stable at approximately 310,000, 335,000 tonnes annually in 2026, consistent with 2025 production. Consolidated cash cost in 2026 is forecast to be within $1.90/lb to $2.10/lb of copper which is in line with 2025 guidance. As part of the Company's full potential programs, the focus will continue to be on cost reductions and process improvements.
Summary Financial Results
Three months ended
December 31,
Year ended
December 31,
(US$ millions continuing operations except where noted, except per share amounts)
2025
2024
2025
2024
Revenue
1,301.5
833.3
4,053.2
3,270.1
Gross profit
496.8
254.4
1,398.0
935.8
Attributable net earnings (loss)a
659.9
(95.5)
1,047.2
125.4
Net earnings (loss)
912.3
(59.8)
1,417.7
267.6
Adjusted earningsa,b (all operations)
370.4
119.3
769.0
359.0
Adjusted earningsa,b -- continuing operations
363.7
102.9
687.9
294.9
Adjusted earningsa,b,c -- discontinued operations
6.7
16.4
81.1
64.1
Adjusted EBITDAb (all operations)
700.6
425.6
2,037.3
1,707.0
Adjusted EBITDAb -- continuing operations
686.4
366.5
1,917.1
1,426.9
Adjusted EBITDAb,c -- discontinued operations
14.2
59.1
120.2
280.1
Basic earnings per share ("EPS")a (all operations)
0.90
(0.57)
1.50
(0.26)
Diluted EPSa (all operations)
0.89
(0.57)
1.49
(0.26)
Basic and diluted EPSa -- continuing operations
0.77
(0.12)
1.22
0.16
Basic EPSa,c -- discontinued operations
0.13
(0.44)
0.28
(0.42)
Diluted EPSa,c -- discontinued operations
0.12
(0.44)
0.27
(0.42)
Adjusted EPSa,b (all operations)
0.43
0.15
0.90
0.46
Adjusted EPSa,b -- continuing operations
0.42
0.13
0.80
0.38
Adjusted EPSa,b,c -- discontinued operations
0.01
0.02
0.09
0.08
Cash provided by operating activities (all operations)
560.9
620.3
1,342.6
1,518.9
Cash provided by operating activities - continuing operations
533.0
567.9
1,207.9
1,311.4
Cash provided by operating activities - discontinued operationsc
27.9
52.4
134.7
207.5
Adjusted operating cash flowb (all operations)
677.6
313.9
1,732.5
1,302.6
Adjusted operating cash flowb -- continuing operations
665.1
263.5
1,621.9
1,089.9
Adjusted operating cash flowb,c -- discontinued operations
12.5
50.4
110.6
212.7
Adjusted operating cash flow per shareb (all operations)
0.79
0.40
2.02
1.68
Adjusted operating cash flow per shareb -- continuing operations
0.78
0.34
1.90
1.41
Adjusted operating cash flow per shareb,c -- discontinued operations
0.01
0.06
0.12
0.27
Free cash flowb (all operations)
355.9
398.0
594.2
571.2
Free cash flowb -- continuing operations
331.9
386.0
538.9
539.9
Free cash flowb,c -- discontinued operations
24.0
12.0
55.3
31.3
Free cash flow from operationsb (all operations)
412.5
466.0
835.8
872.9
Free cash flow from operationsb -- continuing operations
388.3
447.4
773.6
825.6
Free cash flow from operationsb,c-- discontinued operations
24.2
18.6
62.2
47.3
Cash and cash equivalents
296.2
357.5
296.2
357.5
Net cash (debt)b
77.4
(1,332.4)
77.4
(1,332.4)
a Attributable to shareholders of Lundin Mining Corporation.
b These are non-GAAP measures. Please refer to the Company's discussion of non-GAAP and other performance measures in its MD&A for the year ended December 31, 2025 and the Reconciliation of Non-GAAP Measures section at the end of this news release.
c Discontinued operations results include Eagle's annual financial results, Neves-Corvo and Zinkgruvan financial results to April 16, 2025 and the revaluation of contingent consideration as at December 31, 2025.
Quarterly Financial Results
The Company generated revenue from continuing operations of $1,301.5 million (Q4 2024 - $833.3 million) which benefitted from higher realized copper and gold prices.
Gross profit from continuing operations of $496.8 million was $242.4 million higher than in the prior year comparable period of $254.4 million. The increase was primarily due to higher realized copper and gold prices, lower treatment charges, and higher sales volumes at Caserones partially offset by a non-cash long-term ore stockpile inventory write-down at Chapada of $99.9 million ($65.9 million net of tax).
Net earnings from continuing operations increased to $912.3 million from $59.8 million net loss in the prior year comparable period primarily due to an increase in gross profit and a deferred tax recovery at Caserones of $517.0 million. Prior year impairments of Suruca and Alcaparrosa further contributed to the increase.
Adjusted earnings2 from continuing operations of $363.7 million increased from $102.9 million in the prior year comparable period primarily as a result of higher gross profit.
Cash provided by operating activities related to continuing operations of $533.0 million decreased from $567.9 million in the prior year comparable period largely due to a working capital build of $132.1 million in the quarter compared to $305.4 million working capital release in the prior year comparable period.
Sustaining capital expenditures5 from continuing operations of $157.6 million increased from $131.4 million in the prior year comparable period.
Expansionary capital expenditures6 of $43.5 million were in line with the prior year comparable period of $50.5 million.
Free cash flow2 from continuing operations of $331.9 million decreased from $386.0 million in the prior year comparable period due to working capital build and increased sustaining capital expenditure related to continuing operations.
As at February 19, 2026, the Company had cash of over $500 million and net cash of over $200 million.
At December 31, 2025, the Eagle reporting segment met the criteria to be classified as held-for-sale and discontinued operations. Accordingly, all assets and liabilities relating to Eagle have been classified as held for sale at December 31, 2025. Earnings (loss) from discontinued operations includes the financial results of Eagle, Neves-Corvo and Zinkgruvan reporting segments.
Operational Performance
Total Production
(Contained metal)a
2025
2024
YTD
Q4
Q3
Q2
Q1
Total
Q4
Q3
Q2
Q1
Continuing Operations
Copper (t)b
322,326
85,075
84,999
77,563
74,689
330,509
92,832
90,745
70,051
76,881
Gold (oz)b
141,859
34,129
37,763
38,118
31,849
158,436
46,456
46,712
32,439
32,829
Molybdenum (t)b
2,082
526
574
380
602
3,183
912
693
714
864
Discontinued OperationsC
Copper (t)
17,225
1,957
2,354
3,735
9,179
38,558
8,659
9,110
9,657
11,132
Nickel (t)
9,907
2,174
2,724
2,713
2,296
7,486
1,617
893
1,721
3,255
Zinc (t)
58,233
--
--
9,285
48,948
191,704
51,946
46,610
47,460
45,688
a - Tonnes (t) and ounces (oz).
b - Candelaria and Caserones production are on a 100% basis.
c - Discontinued operations results include Eagle's annual production, and Neves-Corvo and Zinkgruvan production to April 16, 2025.
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5 This is a supplementary financial measure. Please refer to the Company's discussion of non-GAAP and other performance measures in its MD&A for the year ended December 31, 2025 and the Reconciliation of Non-GAAP Measures section at the end of this news release.
6 These are non-GAAP measures. Please refer to the Company's discussion of non-GAAP and other performance measures in its MD&A for the year ended December 31, 2025 and the Reconciliation of Non-GAAP Measures section at the end of this news release.
Candelaria (80% owned): Candelaria produced, on a 100% basis, 145,471 tonnes of copper, 80,528 ounces of gold and 1.8 million ounces of silver during the year. Annual copper and gold production in 2025 was within the most recent guidance ranges. During the year, mining in the open pit was focused on Phase 11 with some contribution from higher grade areas of Phase 12. Production continued to benefit from higher throughput at the mill due to softer ore feed and finer ore size. Consistent with the mine plan, realized grades during the year were lower than the prior year, which led to lower production. Copper cash cost7 of $1.92/lb was within the most recent cash cost guidance range and benefitted from higher metal prices for by-product credits and was impacted by the lower average grades during the year. During the fourth quarter, early renewals of labour agreements were completed with five unions at Candelaria. The agreements are each for three-year terms and expire in 2029, replacing agreements expiring during 2026. The proactive early renewal of these agreements will contribute to labour stability and operational efficiency at Candelaria in the medium term.
Caserones (70% owned): Caserones produced, on a 100% basis, 132,881 tonnes of copper and 2,082 tonnes of molybdenum. Annual production for copper was at the top-end of the most recent production guidance range and fourth quarter copper production was the highest since the mine was acquired by the Company in mid-2023. Mining during the year focused on Phase 6 and copper production benefitted from higher throughput and recoveries. Copper cathode production during the year benefitted from increased material placed on the dump leach in previous periods. Copper cash cost of $2.17/lb was within the low-end of the most recent production guidance range and benefitted from strong production as a result of higher throughput and recoveries, reduced treatment charges, and reduced labour expenses.
Chapada (100% owned): Chapada produced 43,974 tonnes of copper and approximately 61,331 ounces of gold during the year. Production for both metals were within the most recent production guidance ranges. Mining in the year primarily focused on ore from South and North pits in line with the planned mine sequencing. Annual copper production benefitted from higher throughput. Gold production in the year was negatively impacted by reduced grades and recoveries relative to 2024. Copper cash cost of $0.75/lb was below the low end of the most recent guidance range and benefitted from increased by-product credits as a result of higher realized gold prices.
Eagle (100% owned): Eagle produced 9,907 tonnes of nickel and 8,906 tonnes of copper during the year. The ramp rehabilitation in Eagle East was completed in the first quarter of the year, allowing mining and processing activities to return to normal levels. Annual nickel production in 2025 was within the most recent production guidance range, while annual copper production was just below the low end of the most recent guidance range but was within the original guidance range. Nickel cash cost7 of $2.55/lb benefitted from higher throughput and improved recoveries. Annual cash cost per pound7 for the year exceeded the high end of the most recent production guidance range. Eagle results are reported as discontinued operations in the Company's consolidated financial statements and MD&A. As at December 31, 2025, the assets and liabilities of Eagle mine are reported as held for sale.
2026 Outlook
On January 21, 2026, the Company announced its production, cash cost, capital expenditures and exploration investment guidance for 2026.
2026 Production and Cash Cost Guidancea
Guidance
(contained metal)
Production
Cash Cost ($/lb)b
Copper (t)
Candelaria (100%)
135,000, 145,000
2.05, 2.25c
Caserones (100%)
130,000, 140,000
2.05, 2.25
Chapada
45,000, 50,000
1.00, 1.20d
Total
310,000 – 335,000
1.90, 2.10
Gold (oz)
Candelaria (100%)
77,000, 87,000
Chapada
57,000, 62,000
Total
134,000 – 149,000
a. Guidance as announced by news release "Lundin Mining Announces 2025 Production Results and 2026 Guidance" dated January 21, 2026.
b. 2026 cash cost is based on various assumptions and estimates, including, but not limited to: production volumes, commodity prices (2026 - Mo: $20.00/lb, Au: $4,000/oz: Ag: $80.00/oz) foreign currency exchange rates (2025 - CLP/USD:900, USD/BRL:5.50) and operating costs.
c. 68% of Candelaria's total gold and silver production are subject to a streaming agreement and as such cash costs are calculated based on receipt of $437/oz and $4.36/oz, respectively, on gold and silver sales in the year.
d. Chapada's cash cost is calculated on a by-product basis and does not include the effects of its copper stream agreements. Effects of the copper stream agreements are reflected in copper revenue and will impact realized price per pound.
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7 These are non-GAAP measures. Please refer to the Company's discussion of non-GAAP and other performance measures in its MD&A for the year ended December 31, 2025 and the Reconciliation of Non-GAAP Measures section at the end of this news release.
2026 Capital Expenditure Guidancea,b,c
($ millions)
Guidance
Candelaria (100% basis)
215
Caserones (100% basis)
235
Chapada
100
Total Sustaining
550
Expansionary Capital
50
Vicuña (50% basis)
395
Total Capital Expenditures
995
a. Guidance as announced by news release "Lundin Mining Announces 2025 Production Results and 2026 Guidance" dated January 21, 2026.
b. Sustaining capital expenditure is a supplementary financial measure, and expansionary capital expenditure is a non-GAAP measure, see section 'Non-GAAP and Other Performance Measures' of the Company's MD&A for the year ended December 31, 2025 and the Reconciliation of Non-GAAP Measures section at the end of this news release.
c. Capital expenditures are based on various assumptions and estimates, including, but not limited to foreign currency exchange rates (USD/CLP: 900, USD/BRL: 5.50).
2026 Exploration Investment Guidance
Total exploration expenditure guidance for 2026 is $53 million.
Exploration
In 2025, exploration activity focused on in-mine and near-mine targets at the Company's operations.
At Caserones, seven rigs drilled 10,329 metres during the quarter targeting high-grade copper breccias in the Caserones pit and copper sulphides at Angelica. Exploration drilling also commenced at the Centauro target. In total, 18,908 metres were drilled at Caserones during the year.
No exploration drilling was undertaken at Candelaria during the quarter. In total, 7,642 metres were drilled at Candelaria during the year focusing on Candelaria Norte, Candelaria South (Mariana) and La Portuguesa.
The annual drilling program at Chapada was completed during the quarter with 12,507 metres drilled during the year, primarily in the Saúva resource area.
Vicuña
Integrated Technical Study ResultsThe results of an integrated technical study were published on February 16, 2026 and highlighted the Vicuña Project as a development project with the potential to rank among the top five copper, gold, and silver mines globally. Highlights from the PEA are outlined below and more information is set out in the news release dated February 16, 2026.
The development of the Vicuña district is envisioned in a staged approach. Stage 1 encompasses a sulphide mill and the Josemaria deposit, establishing an initial open pit mine and concentrator designed for future expansion to accelerate first production and early cash flow. Stage 2 builds on this foundation by developing the Filo del Sol leachable oxides and a corresponding SX/EW plant for copper, gold and silver recovery. Stage 3 represents the long-term maturation of the district through expansion of the concentrator and development of the Filo del Sol sulphide deposit, enabling peak, sustained production, positioning the Vicuña Project as a long-life, globally significant copper operation. Stage 3 also integrates key district infrastructure, including a desalination plant and associated pipeline, and return concentrate slurry pipeline, to support expansion of the district.
Potential to be a top five copper, gold, and silver mine: Average annual production of 400,000 tonnes copper, 700,000 oz gold and 22 million oz ("Moz") silver over the first 25 full years of operation.
Peak production of +500 ktpa copper: Average production over a ten-year period of over 500,000 tonnes copper, 800,000 oz gold and 20 Moz silver or 800,000 tonnes copper equivalent ("CuEq")8.
Multi-generational asset: Initial +70-year life of mine ("LOM"), producing approximately 22.3 million tonnes ("Mt") of copper, 37.2 Moz of gold and 763 Moz of silver.
Significant free cash flow: Average annual free cash flow of $2.2 billion per year (after expansionary capital) during the first 25 years.
Leveraged to copper and gold: LOM revenue contribution of 60% copper, 32% gold and 8% silver.
Capital intensity below $30,000/tonne CuEq: Stage 1 capital of $7.1 billion with an after-tax payback period of 8.49 years and an after-tax internal rate of return ("IRR") of 14.8%.
Resource growth: The updated Mineral Resource estimate for the Vicuña Project (the "Updated Vicuña Mineral Resource") grew significantly compared to the previous estimate10.
Contained copper11 of 14 Mt Measured and Indicated ("M&I") and 32 Mt Inferred. An increase of 12% contained M&I copper and 28% Inferred copper.
Contained gold11 of 36 Moz M&I and 61 Moz Inferred. An increase of 12% contained M&I gold and 26% Inferred gold.
Contained silver11 of 729 Moz M&I and 1,051 Moz Inferred. An increase of 11% M&I silver and 30% Inferred silver.
Base-case scenario: Net present value ("NPV8%") of $9.5 billion after-tax at $4.60/lb copper, $3,300/oz gold and $40/oz silver.
Stage 1 is clearly defined providing a blueprint for initial development, ongoing studies on Stages 2 and 3 are expected to deliver further optimization.
At spot copper, gold and silver prices ($6.00/lb copper, $5,000/oz gold & $80/oz silver), the NPV8% increases to $28.8 billion and the IRR to 25.5% with a payback of 5.4 years.
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8 Copper equivalent (CuEq) based on production after recoveries and metal prices of $4.60/lb Cu, $3,300/oz Au and $40/oz Ag.
The results of the Study, including the Updated Vicuña Mineral Resource, will be detailed in an updated technical report that will be filed under the Company's profile on SEDAR+ at www.sedarplus.ca. These results supersede the "NI 43-101 Technical Report on the Vicuña Project, Argentina and Chile" with an effective date of April 15, 2025, including the Mineral Resource estimate set out therein.
RIGI ApplicationDuring the quarter, Vicuña submitted an application to the Incentive Regime for Large Investments (RIGI) in Argentina for the inclusion of the Vicuña Project under the Long-Term Strategic Export Projects designation (PEELP). Argentina's RIGI regime is designed to attract and accelerate large-scale investment through long-term fiscal stability and transparent regulatory conditions.
RIGI offers regulatory stability, including lower corporate and dividend withholding tax rates, removal of export duties, value added tax offsets and repatriation of revenues. The Vicuña Project is the first mining project to apply for the RIGI PEELP, which is designed to support large scale, long-term investments into Argentina and provides longer benefit periods (40 years vs 30 years) and accelerated timelines to repatriate revenues and export duty exemptions, as compared to the regular RIGI regime.
Project DevelopmentIn 2025, parallel studies were advanced supporting a multi-phased development concept pertaining to the Josemaria and Filo del Sol deposits resulting in an integrated technical study, the results of which were published on February 16, 2026. These results, including the Updated Vicuña Mineral Resource estimate, will be detailed in an updated technical report that will be filed under the Company's profile on SEDAR+ at www.sedarplus.ca.
The Josemaria Environmental Impact Assessment advanced through review by the San Juan authorities with a site visit performed during the quarter.
Drilling activities at Filo del Sol advanced with 16,619 metres completed during the quarter, bringing the year-to-date total to 65,611 metres.
During the year, the Company spent $167.2 million in capital expenditures compared to $243.6 million in 2024. Capital expenditures included the project development activities noted above and were impacted by the formation of Vicuña on January 15, 2025. From this date, the Company's expansionary capital expenditures include 50% of Vicuña's capital expenditures compared to 100% funded for Josemaria prior to the formation of Vicuña.
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9 Initial capital from the start of 2027 and payback period from the start of 2030.
10 See news release dated May 4, 2025 and previous technical report entitled "NI 43-101 Technical Report on the Vicuña Project, Argentina and Chile", with an effective date of April 15, 2025 for information with respect to the previous Mineral Resource estimate. The Project is a 50:50 joint venture between Lundin Mining and BHP Canada. Lundin Mining's attributable interest in the Mineral Resource estimate is 50%.
11 M&I contained metal is based on estimated tonnes of 4,181Mt and estimated grades of 0.34% Cu, 0.27g/t Au and 5.4g/t Ag. Inferred contained metal is based on estimated tonnes of 10,641Mt at estimated grades of 0.30% Cu, 0.18g/t Au and 3.1g/t Ag.
The Company intends to continue with to work with its partner, BHP, and Vicuña on a work plan to advance the Vicuña Project to production. Key activities and milestones include:
Ongoing detailed engineering and design activities for Stage 1.
Trade off studies and optimization of Stages 2 & 3.
Initiate construction of the North Access Road.
Further advancement of project readiness in preparation for early earthworks.
Advancement of financing structure within Vicuña to fund construction.
Approval of the Incentive Regime for Large Investments under the Long-Term Strategic Export Projects designation (RIGI PEELP) application in Argentina.
Receipt of the Project permit amendment.
The next phase for the Vicuña Project is detailed design and engineering. The technical team will focus on advancing engineering in order to prepare procurement and other activities to support an efficient project start-up and mitigate risks of increasing lead times and variable international logistics.
About VicuñaOn January 15, 2025, the Company completed the Filo Acquisition and the Joint Arrangement, resulting in the Company indirectly holding a 50% interest in Vicuña, an independently managed joint operation which owns the Josemaria deposit in Argentina and the Filo del Sol deposit in Argentina and Chile. BHP indirectly owns the remaining 50% interest in Vicuña.
Expansionary Projects
The Company has a number of brownfield low-capital intensity expansionary projects that are expected to contribute to medium-term growth in its existing operating asset portfolio.
Candelaria Underground ExpansionThe Candelaria underground expansion project is expected to increase underground throughput capacity to approximately 22,000 tonnes per day from prior levels of approximately 12,000 to 14,000 tonnes per day, targeting a medium-term increase in annual copper production of approximately 14,000 tonnes of copper which adds roughly 10% to current production levels. The opportunity includes phased insourcing of the Company's underground mining contract and an increase in the number of active mining stopes. Candelaria's 2026 copper and gold production guidance incorporates lower underground mining rates in the first half of the year as the Company insources the underground mining contract. Internal recruitment commenced in mid-2025 with blasting, loading and hauling activities insourced at the end of the year. Insourcing of additional activities are expected to continue through 2026.
Projects are also ongoing to support the mine life extension under the Environmental Impact Assessment ("2040 EIA").
Caserones Cathode Plant UtilizationThe Caserones cathode plant capacity is approximately 35,000 tonnes of copper cathode production per year, representing an opportunity to increase production from prior levels through higher utilization rates.
Additional oxide material placed on the dump leach, together with improved leaching practices, increased copper cathode production to 25,817 tonnes in 2025. As a result of these optimization efforts, annual copper cathode production is forecast to increase to approximately 26,000 to 28,000 tonnes in 2026 through 2028, an improvement of 6,000–8,000 tonnes from prior levels.
Chapada - Saúva DepositThe Saúva deposit is approximately 15 kilometres from the Chapada mine and represents a near mine opportunity to add approximately 10,000 to 15,000 tonnes of copper production per year and 35,000 to 45,000 ounces of gold production per year. The project would include the installation of additional grinding capacity and higher grade ore from Saúva to offset lower grade material currently being mined at Chapada.
An internal prefeasibility study was completed on Saúva phase 1 during the quarter. A sanctioning decision on the installation of additional grinding ...
