Lundin Mining (LUN.TO) has disclosed it produced a total of almost 370,000 tonnes of copper in 2024 while the zinc production came in at almost 192,000 tonnes, resulting in record production levels for both metals. On top of those two base metals, Lundin also produced just over 16 million pounds of nickel as well as just over 158,000 ounces of gold.
As the company is working towards selling its Neves-Corvo and Zinkgruvan mines in Europe, its guidance for 2025 no longer includes those two mines. This still results in an attractive production profile of 303,000-330,000 tonnes of copper for the year, as well as 135,000-150,000 ounces of gold. The C1 cash cost is anticipated to be $2.05-2.30 per pound of copper. The anticipated full-year sustaining capex is expected to come in at $530M which works out to approximately $0.70 per produced pound of copper. A portion of the sustaining capex will of course also be attributable to the Eagle nickel mine, which means the AISC per pound of copper should stay below $3/pound.
The company has also updated its three year production plan which is adjusted for the sale of Neves-Corvo and Zinkgruvan. The copper production is expected to increase in 2025 on the back of a strong result at Caserones and Candelaria before the Caserones production profile decreases going into 2027 while the Candelaria mine should continue to see a small single digit production increase.
Disclosure: The author has no position in Lundin Mining. Please read the disclaimer.
