Lundin Mining Corp.

Lundin Mining Corp. is a mid-tier copper producer headquartered in Vancouver, Canada, operating primarily in South America. The company's portfolio consists of 8 projects, comprising 6 operating mines and 2 development projects, in addition to several early-stage exploration prospects. Key assets include Candelaria, Caserones, and Chapada. The organization operates as a diversified base metals mining company with a business model centered on the production and sale of concentrates and cathodes. Its operational approach integrates exploration, development, and production activities, supported by specialized in-house skills in geology, engineering, and metallurgy. Processing capabilities include conventional flotation concentrators and solvent extraction-electrowinning (SX-EW) facilities. Products are marketed globally to smelters and traders through a combination of long-term contracts, with commercial terms negotiated annually, and spot market sales. The enterprise competes for financially attractive mineral properties, skilled personnel, and on the basis of production cost and product quality. Its supply chain relies on a network of large national and multinational suppliers for machinery, equipment, and services, while also implementing local procurement programs where feasible. The company's success is dependent on its ability to develop mineral deposits and maintain a portfolio of high-quality, low-cost operations.

The company's strategy focuses on operating, upgrading, and expanding a portfolio of base metal assets, with a particular emphasis on a specific commodity that management believes offers the best long-term supply and demand fundamentals. Growth is pursued through a dual approach of organic development, leveraging in-house exploration expertise to make new discoveries, and accretive acquisitions of producing properties or development prospects. A key objective is to deliver leading returns for shareholders throughout the mining cycle by maintaining a portfolio of high-quality, low-cost operations situated in established jurisdictions. The organization consistently evaluates additional mining, exploration, and project opportunities through various partnership models, including earn-ins and joint ventures. Capital allocation is guided by a dividend policy designed to return a minimum target of 40% of operating cash flow to shareholders after accounting for capital investments, contingent payments, and distributions to partners, subject to board discretion and prevailing financial conditions.

Board governance is structured around a board of 8 directors, of whom 6 are independent, ensuring objective oversight. The board's work is facilitated by 4 standing committees: Audit; Corporate Governance and Nominating; Safety, Sustainability and Technical; and Human Resources/Compensation. The company's operating model delegates day-to-day responsibility to local management teams led by a Managing Director at each operational site, who reports directly to the corporate EVP and Chief Operating Officer. This structure is complemented by a matrix system where local functional leads have indirect reporting lines to their corporate counterparts, ensuring alignment with group-wide standards and strategies. Executive leadership and board members have extensive experience in emerging markets and conduct frequent site visits to maintain direct oversight. The human resources philosophy prioritizes the recruitment and promotion of national talent within host countries, with a majority of site-based leadership roles held by local citizens. A comprehensive Code of Conduct applies to all personnel and contractors to enforce ethical business practices across the organization.

The sustainability framework is anchored by a Responsible Mining Policy and a comprehensive Responsible Mining Management System (RMMS), which is guided by ISO 14001 and ISO 45001 standards. A core safety initiative is the Fatal Risk Management (FRM) program, which targets the prevention of serious injuries by managing 18 identified fatal risks through critical controls and systematic in-field verification. The organization is committed to implementing the Global Industry Standard on Tailings Management (GISTM) and has achieved full conformance for active facilities at several key operations. A key climate action goal is the reduction of absolute Scope 1 and Scope 2 greenhouse gas emissions by 35% by 2030, relative to a 2019 baseline, a target supported by contracts for 100% renewable electricity at certain major operations. The company's Human Rights Policy aligns with the UN Guiding Principles, with human rights impact assessments and corresponding action plans completed across all sites. A formal Diversity and Inclusion Policy sets a target to achieve and maintain at least 30% female representation on the board and in executive officer positions.

In January 2025, the company and BHP jointly acquired Filo Corp., subsequently forming a 50/50 joint arrangement named Vicuña Corp. to hold and advance the Filo del Sol and Josemaria projects. This followed the company's 2022 acquisition of Vicuña Resources Inc., which originally held the Josemaria asset. A significant portfolio reshaping was initiated in December 2024 with an agreement to sell the Neves-Corvo and Zinkgruvan operations to Boliden AB, a transaction expected to close in mid-2025. The company increased its ownership in Lumina Copper, owner of the Caserones operation, to 70% in July 2024 by exercising an option to acquire an additional 19% interest from its partner, JX, which retains the remaining 30%. The enterprise also holds an 80% interest in the entities that own the Candelaria operation, with Sumitomo holding the other 20%. A material streaming agreement with Franco-Nevada Corporation covers a portion of the gold and silver production from the Candelaria operation. Following the Filo Transaction, Nemesia S.a.r.l., a private entity, held 19.52% of the company's outstanding shares.