Jack Lundin, President and CEO commented, "We are pleased to be reporting on another solid quarter of safety, and operational and financial performance. Copper production of approximately 80,000 tonnes at a consolidated cash cost of $1.66/lb, translated into our business generating $1,159 million in revenue and $380 million in free cash flow from operations, improving our net cash position to $250 million. The Company remains firmly on track to deliver on our full-year production and operational cost guidance.
"We also advanced key growth initiatives, including increasing our ownership in Caserones by 5%, adding to our attributable copper production profile at an attractive acquisition cost. At the same time, we acquired a 31% interest in the Los Helados Project, which is adjacent to our operating Caserones mine, further expanding our Mineral Resource base and providing long-term growth optionality.
"In addition, the previously announced sale of the Eagle mine to Talon Metals was completed in the period, marking the transition to a copper dominant mining company, with approximately 85% of our quarterly revenue now generated from copper.
"Finally, the Company published the results of the technical study for the Vicuña Project, the largest copper discovery in the last thirty years. The study underscores its potential as a Tier 1 asset and a top five copper, gold, and silver mine globally, with peak annual copper production exceeding 500,000 tonnes and peak gold production exceeding 800,000 ounces per annum. A major milestone as we work towards a sanctioning decision this year.
"At Lundin Mining, disciplined execution across high-margin, stable operations underpins our performance. Supported by an unrivaled growth strategy and a strong balance sheet, we are positioned to drive significant value for our stakeholders over the years ahead."
First Quarter Operational and Financial Highlights
Strong operational performance in the first quarter, supported by elevated metal prices, drove robust cash generation. The Company is reaffirming its production guidance and cash cost outlook for the year. The balance sheet strengthened over the period, ending in a net cash position of approximately $250 million. With the completion of an upsized credit facility and the current net cash position, the Company expects to be fully funded for the initial stage of construction at Vicuña.
Copper Production: 79,934 tonnes at a consolidated copper cash cost1 of $1.66 /lb.
Gold Production: During the quarter, 31,537 ounces of gold was produced.
Revenue: $1,158.8 million in the first quarter, with a realized copper price1 of $5.70 /lb and a realized gold price1 of $5,123 /oz.
Net Earnings and Adjusted Earnings1: Net earnings attributable to shareholders of the Company was $280.5 million ($0.33 per share) and adjusted earnings was $264.6 million ($0.31 per share).
Adjusted EBITDA1: $626.7 million for the quarter.
Capital Expenditures2: Sustaining capital expenditures2 were $125.8 million and expansionary capital expenditures2 were $54.3 million.
Cash Generation: Cash provided by operating activities in the quarter was $493.7 million, free cash flow from operations1 was $379.7 million.
Shareholder Returns: Under its normal course issuer bid, the Company repurchased 1,447,194 common shares for aggregate purchases of approximately $40 million and declared a dividend of C$0.0275 per share during the quarter.
Growth: The Company is continuing to advance its growth initiatives and completed several significant milestones in 2026 to achieve its long term goal of becoming a top ten copper producer:
On January 9, 2026, the Company completed the sale of Eagle mine to Talon Metals Corp. ("Talon"). In consideration, the Company received common shares of Talon which, along with the Company's existing 1.57% interest in Talon, resulted in the Company owning 19.86% of the issued and outstanding common shares of Talon.
On February 16, 2026, the Company announced the results of the Vicuña Project technical study, including an updated Mineral Resource estimate for the Vicuña Project (the "Updated Vicuña Mineral Resource") which highlighted a development project with robust economics and the potential to rank among the top five copper, gold, and silver mines globally. The results of the study were subsequently filed in a technical report which was released on March 30, 2026 (the "Vicuña Technical Report").
On April 7, 2026, the Company completed the acquisition from JX Advanced Metals Corporation and affiliates ("JX") of an additional 5% interest in the Caserones mine, along with a 30.9% interest in the Los Helados Project and a 0.62% smelter return royalty on Los Helados for total consideration of $215 million. Upon closing of the transaction, the Company's ownership interest in Caserones mine increased to 75%.
Net Cash1: As at March 31, the net cash position of the Company was $249.4 million. As at May 6, 2026, net cash was $51 million after funding the purchase of an additional 5% interest in Caserones and 30.9% interest in Los Helados for $215 million.
Outlook: The Company reaffirms it is tracking to full year guidance for production, cash costs and capital expenditures.
________________________________
1 These are non-GAAP measures. Please refer to the Company's discussion of non-GAAP & other performance measures in its Management's Discussion and Analysis ("MD&A") for the three months ended March 31, 2026 and the Reconciliation of Non-GAAP Measures section at the end of this news release.
2 Sustaining capital expenditures is a supplementary financial measure, see the Company's discussion of non-GAAP & other performance measures in its MD&A for the three months ended March 31, 2026 and the Reconciliation of Non-GAAP Measures section at the end of this news release.
Summary Financial Results
Revenues and net earnings were driven by strong realized prices of $5.70 /lb and $5,123 /oz for copper and gold, respectively. Production costs were impacted by unfavourable foreign exchange at all sites with the impact of higher diesel prices at the end of March 2026 having a marginal impact on costs during the quarter. Cash generation in the quarter also benefitted from a $43.6 million release of working capital.
2026
2025
($ millions continuing operations)
Q1
Total2
Q4
Q3
Q2
Q1
Revenue and profit
Revenue
1,158.8
4,053.2
1,301.5
953.9
878.1
919.6
Production costs
(487.0)
(1,948.1)
(546.8)
(455.3)
(466.2)
(479.8)
Depreciation, depletion and amortization
(134.3)
(618.9)
(169.7)
(162.2)
(153.5)
(133.5)
Gross profit
537.5
1,398.0
496.8
336.4
258.4
306.3
Net earnings
387.0
1,417.7
912.3
175.1
149.2
181.2
- attributable to shareholders
280.5
1,047.2
659.9
133.6
115.9
137.9
Adjusted earnings1
264.6
687.9
363.7
143.2
87.7
93.8
Adjusted EBITDA1
626.7
1,917.1
686.4
472.2
376.5
382.2
Cash flow
Cash provided by operating activities
493.7
1,207.9
533.0
254.9
292.7
127.6
Adjusted operating cash flow1
450.1
1,621.9
665.1
366.4
261.1
329.5
Free cash flow from operations1
379.7
773.6
388.3
160.1
195.4
30.2
Free cash flow1
313.6
538.9
331.9
101.3
149.5
(43.4)
Capital expenditures
Sustaining capital expenditure3
125.8
477.8
157.6
102.5
109.5
108.1
Expansionary capital expenditure3
54.3
191.2
43.5
51.1
33.7
62.9
Per share amounts
EPS - Basic and diluted ($/share)
0.33
1.22
0.77
0.16
0.13
0.16
Adjusted EPS1 ($/share)
0.31
0.80
0.42
0.17
0.10
0.11
Dividends declared (C$/share)
0.0275
0.1725
0.0275
0.0275
0.0275
0.09
1 These are non-GAAP measures. Please refer to the Company's discussion of non-GAAP & other performance measures in its MD&A for the three months ended March 31, 2026 and the Reconciliation of Non-GAAP Measures section at the end of this news release.
2 The sum of quarterly amounts may differ from year-to-date results due to rounding.
3 Capital expenditures are reported on a cash basis, as presented in the consolidated statement of cash flows and excluding capitalized interest. Sustaining capital expenditures is a supplementary financial measure and expansionary capital expenditures is a non-GAAP measure, please refer to the Company's discussion of non-GAAP & other performance measures in its MD&A for the three months ended March 31, 2026 and the Reconciliation of Non-GAAP Measures section at the end of this news release.
Production Overview
2026
2025
Q1
Total
Q4
Q3
Q2
Q1
Copper (t)
Candelaria (100%)
30,808
145,471
34,272
37,129
36,999
37,071
Caserones (100%)
38,552
132,881
39,612
35,270
29,290
28,709
Chapada
10,574
43,974
11,191
12,600
11,274
8,909
Total
79,934
322,326
85,075
84,999
77,563
74,689
Gold (oz)
Candelaria (100%)
17,739
80,528
19,055
19,899
20,574
21,000
Chapada
13,798
61,331
15,074
17,864
17,544
10,849
Total
31,537
141,859
34,129
37,763
38,118
31,849
Molybdenum (t)
Caserones (100%)
589
2,082
526
574
380
602
Silver (koz)
Candelaria (100%)
291
1,798
441
477
431
449
Chapada
67
258
66
73
69
50
Total
358
2,056
507
550
500
499
Sales Volumes
2026
2025
Q1
Total
Q4
Q3
Q2
Q1
Copper (t)
Candelaria (100%)
30,823
140,500
32,882
36,041
36,603
34,974
Caserones (100%)
36,461
138,287
45,134
26,896
30,076
36,181
Chapada
10,371
42,040
9,413
13,997
10,284
8,346
77,655
320,827
87,429
76,934
76,963
79,501
Gold (oz)
Candelaria (100%)
17,253
76,537
17,700
19,041
20,021
19,775
Chapada
12,651
56,569
12,403
19,735
14,402
10,029
29,904
133,106
30,103
38,776
34,423
29,804
Molybdenum (t)
Caserones (100%)
630
1,976
451
508
389
628
Silver (koz)
Candelaria (100%)
244
1,598
372
434
395
397
Chapada
29
129
26
48
30
25
Total
273
1,727
398
482
425
422
Candelaria (Chile)
Operating Statistics
2026
2025
(100% Basis)
Q1
Total
Q4
Q3
Q2
Q1
Ore mined (kt)
7,721
37,018
7,935
9,145
9,721
10,217
Ore milled (kt)
7,867
31,579
7,972
8,103
7,752
7,752
Grade
Copper (%)
0.43
0.50
0.47
0.49
0.52
0.52
Gold (g/t)
0.10
0.12
0.11
0.11
0.12
0.12
Production (contained metal)
Copper (t)
30,808
145,471
34,272
37,129
36,999
37,071
Gold (oz)
17,739
80,528
19,055
19,899
20,574
21,000
Revenue ($ millions)
453.4
1,769.0
518.5
426.8
404.6
419.1
Production costs ($ millions)
202.0
783.9
226.6
199.2
186.1
172.1
Gross profit ($ millions)
181.2
685.1
218.9
144.7
143.6
177.8
Cash cost ($ per pound copper)1
2.15
1.92
2.29
1.87
1.81
1.75
Sustaining capital ($ millions)1
47.3
224.4
79.5
46.9
50.2
47.7
All-in sustaining cost ("AISC") ($ per pound copper)1
2.98
2.75
3.51
2.55
2.53
2.46
1AISC per pound sold and Cash cost per pound sold are non-GAAP measures and Sustaining capital is a supplementary financial measure, see the Company's discussion of non-GAAP & other performance measures in its MD&A for the three months ended March 31, 2026 and the Reconciliation of Non-GAAP Measures section at the end of this news release.
Q1 2026 Performance
Open pit mining was focused on Phase 11 with some contribution from Phase 12, and throughput was impacted by unplanned maintenance on the SAG mill resulting in an unplanned shutdown of approximately three days. Production was slightly lower than in recent quarters primarily as a result of planned lower grades.
Q1 2026 Compared to 2026 Guidance
Production remains in line with annual guidance. Certain maintenance work scheduled for later in the year was accelerated and completed during the unplanned shutdown keeping full year throughput on track to guidance. Candelaria's production profile is weighted towards the second half of the year due to higher expected grades from Phase 12.
Cash cost benefitted from strong gold and silver prices and also remains within the annual cash cost guidance range.
Growth Projects
The 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. This opportunity is not included in Candelaria's three-year guidance figures. 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. Activities commenced in mid-2025 and are continuing through 2026.
Projects are also ongoing to support the mine life extension under the 2040 Environmental Impact Assessment ("EIA").
Exploration Update
At Candelaria, 2,402 metres were drilled from ten underground drill sites (nine completed, one in-progress) in the Mariana sector of Candelaria Sur. Drilling in this sector is focused on extending higher grade copper-gold veins to the south following exploration indicators.
Caserones (Chile)
Operating Statistics
2026
2025
(100% Basis)
Q1
Total
Q4
Q3
Q2
Q1
Ore mined (kt)
8,322
36,712
8,553
8,479
9,680
10,000
Ore milled (kt)
8,216
33,383
8,200
8,530
7,984
8,669
Ore placed on leach
3,528
16,777
3,142
3,910
4,962
4,763
Grade
