The company is assessing the extent of the damage to the engines, but early signs suggest the engines may need to be removed from the site and undergone extensive repair. The company has two spare motors. One is on-site and available and the second is performing rehabilitation off-site. The company is evaluating the potential for gradual resumption of processing with these two engines, but it is not expected that full processing rates will be achieved over an extended period of time. Accordingly, the full-year 2020 production, cash cost and investment projections for the Chapada Mine have been withdrawn.
In addition to assessing a gradual resumption of processing, the company will move forward to scheduled maintenance and refocus mining on waste disposal and development activities.
The company has taken out business interruption insurance and is examining the applicability of the insurance and the corresponding waiting times when deciding whether to assert a claim. There were no injuries or environmental damage.
The company will provide additional information and updates on the operational guidance for 2020 as appropriate.
About Lundin Mining
Lundin Mining is a diversified Canadian base metals mining company with activities in Brazil, Chile, Portugal, Sweden and the United States of Americawhich mainly produces copper, zinc, gold and nickel.
The information in this press release is subject to Lundin Mining’s disclosure requirements under the EU Market Abuse Regulation. The information was submitted for publication through the placement of the contact persons listed below on September 27, 2020 at the 6:45 p.m. Eastern Time.
Cautionary Statement in Forward-Looking Information
Certain statements and information contained herein constitute “forward-looking information” within the meaning of applicable Canadian securities laws. All statements contained in this document that are not historical facts constitute forward-looking information, including, but not limited to, statements regarding the company’s plans, prospects, and business strategies; the company’s guidance on the timing and extent of future production and its expectations for operating results; Expected costs; Approval requirements and deadlines; Time and possible outcome of pending legal disputes; the results of feasibility studies or mineral resource and mineral reserve estimates, the lifespan of the mine estimates, and mine and mine closure plans; expected market prices of metals, exchange rates and interest rates; developing and implementing the company’s responsible mining management system; the company’s ability to comply with contractual, regulatory or other regulatory requirements; anticipated exploration and development activities on the company’s projects; and the integration of acquisitions by the company and any anticipated benefits from them. Words like “believe”, “expect”, “anticipate”, “consider”, “aim”, “plan”, “aim”, “aim”, “intend”, “continue”, “budget”, “estimate”, “May,” “will,” “may,” “could,” “should,” “plan,” and similar expressions identify forward-looking statements.
Forward-looking information is necessarily based on various estimates and assumptions including, but not limited to, management’s expectations and beliefs, including the fact that the company has access to finance, adequate equipment and manpower; assumed and future price of copper, nickel, zinc, gold and other metals; estimated costs; Ability to achieve goals; the fast and effective integration of acquisitions; that the political environment in which the company operates will continue to support the development and operation of mining projects; and assumptions about the factors listed below. Although these factors and assumptions are believed by Lundin Mining to be reasonable at the time this document was published, given management’s experience and perception of current conditions and expected developments, these statements are by their nature subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, and no reliance should be placed on such statements and information. These factors include, but are not limited to: volatility and fluctuations in metal and commodity prices; global financial condition and inflation; mining-related risks including, but not limited to, risks to the environment, industrial accidents, catastrophic equipment failure, unusual or unexpected geological formations or unstable soil conditions, and natural phenomena such as earthquakes, floods or unusually severe weather; uninsurable risks; Changes in the company’s share price and volatility in the stock markets in general; the threat associated with virus and infectious disease outbreaks, including the novel COVID-19 virus; Risks associated with negative publicity about the company or the mining industry in general; Dependence on a single asset; The possibility of allegations of fraud and corruption involving the company, its customers, suppliers or employees, or of inappropriate or discriminatory employment practices or human rights abuses; actual ore and / or metal recoveries that differ from estimates of mineral resources and reserves, estimates of grade, tonnage, dilution, mine plans, and metallurgical and other characteristics; Risks associated with the estimation of mineral resources and reserves and the geology, grade and continuity of mineral deposits, including, but not limited to, models thereof; Ore processing efficiency; Risks associated with and / or associated with activities abroad and in emerging countries; Security in the operation of the company; changing tax systems; Health and safety risks; Exploration, development or mining results that are not as expected by the company; unavailable or inaccessible infrastructure and risks associated with aging infrastructure; Counterparty and credit risk and customer concentration; Risks related to environmental regulations and the environmental impact of the Company’s operations and products and their management; Exchange rate fluctuations; Trust in third parties and consultants in foreign legal systems; Opposition from community and stakeholders; civil disorder; the potential and impact of labor disputes or other unexpected difficulties or shortages in labor or production stoppages; uncertain political and economic environment; Litigation; government investigations, enforcement, sanctions and / or related or other litigation; Risks related to the structural stability of tailings or tailings deposits; Changes in any law, regulation or policy, including but not limited to those relating to mining regimes, permits and permits, environmental and spoil management, labor conditions, trade relationships and transportation; Climate change; Compliance with environmental, health and safety laws; Enforcement of legal rights in foreign jurisdictions; Information technology and cybersecurity risks; Estimates of future production and operations; Estimates of operating, cash and total cost estimates; Delays or inability to obtain, retain, or comply with permits; Compliance with foreign laws; Risks associated with mine closure activities and enclosed and historic sites; Challenges or defects of title; Price and availability of important resources or services; historical environmental liabilities and ongoing recovery obligations; Debt; Funding needs and availability of funding; Liquidity risks and limited financial resources; Risks associated with attracting and retaining highly qualified employees; Risks related to acquisitions and related integration efforts, including the ability to obtain expected benefits, unexpected difficulties or expenses related to the integration, and the diversion of administrative time in the integration; the estimate of the book values of assets; internal controls; Competition; Dilution; Existence of significant shareholders; Conflicts of interest; activist shareholders and proxy matters; Risks related to dividends; Risks associated with business agreements and partners over which the company does not have full control; and other risks and uncertainties including, but not limited to, those described in the “Risks and Uncertainties” section of the Annual Information Form and the “Managing Risks” section of the Company’s MD&A for the past year December 31, 2019available on SEDAR at www.sedar.com under the company’s profile. All forward-looking statements in this document are restricted by these cautionary statements. While the company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, other factors could cause results not to be as expected, estimated, forecast or intended, and Readers are cautioned that the above list is not exhaustive of all factors and assumptions that may have been used. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results could differ materially from those described in the forward-looking information. Accordingly, there can be no guarantee that forward-looking information will prove to be accurate and forward-looking information is not a guarantee of future performance. Readers are cautioned not to place undue reliance on forward-looking information. The forward-looking information contained herein speaks only as of the date of this document. The company disclaims any intention or obligation to update or revise any forward-looking information or to explain material differences between such and subsequent actual events, except as required by applicable law.
SOURCE Lundin Mining Corporation
For more information: Mark Turner, Director, Company Valuations and Investor Relations: +1 416 342 5565; Brandon Throop, Manager, Investor Relations: +1 416 342 5583; Robert Eriksson, Investor Relations Sweden: +46 8 440 54 50