Lundin Mining Corp. [LUN-TSX; LUMI-Sweden] is well positioned for growth in 2024 after achieving record copper production in 2023, the company said in a press release.
The company achieved guidance by producing 314,798 tonnes of copper on a consolidated basis, or over 550,000 tonnes of copper equivalent in 2023.
Lundin Mining is a diversified Canadian base metals company with operations and projects in Argentina, Brazil, Chile, Portugal and Sweden and the U.S., primarily producing copper, zinc, gold and nickel.
On Monday, the shares eased 0.33% or $0.035 to $10.63. The shares currently trade in a 52-week range of $11.93 and $7.35.
Lundin said the 51% acquisition of the Caserones open pit copper-molybdenum mine in Chile led to a record annual copper production in 2023.
Caserones is located in Chile’s Atacama region, approximately 125 kilometres south of Copiapo, and approximately 100 kilometres from Lundin Mining’s Candelaria Copper Mining Complex in Chile and 20 kilometres from the company’s Josemaria project in Argentina.
Lundin said it expects to produce between 366,000 and 400,000 tonnes of copper this year. “This year’s guidance shows an increase of over 20% for copper production and 10% for zinc production over 2023. Zinc production is expected to be between 195,000 and 215,000 tonnes in 2024, increasing further over the three-year period to reach 220,000 to 240,000 in 2025 and 2026.
“Across our critical metals portfolio, the zinc expansion project at Neves Corvo, otherwise known as ZEP, is coming to fruition, leading to back-to-back quarterly record zinc production at this operation,’’ said Lundin President and CEO Jack Lundin. Neves Corvo is mainly a copper and zinc mine, located in Portugal and producing copper, zinc and lead concentrates. The ZEP increases zinc mining and processing nameplate capacity to 3.5 million tonnes per year. Mine infrastructure of the ZEP included a new crusher station, a conveyor system connecting the 700 shaft hoisting facilities, an upgrade to the main hosting shaft together with extensions to the mines’ ventilation, pumping and electrical distribution systems.
Higher consolidated copper production is forecast for 2024, mainly due to mine sequencing and the mine plan copper grade profile at Candelaria. Caserones copper production guidance has been increased to 120,000 to 130,000 tonnes on an annual basis to reflect higher planned throughput rates in the mill.
Candelaria by far the largest copper mining operation in the Lundin portfolio.
The Candelaria Copper Mining Complex consists of two adjacent copper mines, Candelaria and Ojos del Salado. Ojos del Salado contains two underground mines, Santos and Alcaparrosa.
They produce copper concentrates from open pit and underground mines. The operation is held 80% by Lundin and 20% by Sumitomo of Japan.
