lun-2024-12-31-en

Management’s Discussion and Analysis

For the year ended December 31, 2024

This management’s discussion and analysis (“MD&A”) has been prepared as of February 19, 2025 and should be read in

conjunction with the Company’s consolidated audited financial statements for the year ended December 31, 2024 ("the

Consolidated Financial Statements"). The Consolidated Financial Statements are prepared in accordance with International

Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”).

The Company’s presentation currency is United States (“US”) dollars. Reference herein of $ or USD is to United States

dollars, ARS is to Argentine pesos, BRL is to Brazilian reais, C$ is to Canadian dollars, CLP is to Chilean pesos, € refers to

euros, and SEK is to Swedish kronor. "This quarter" or "The quarter" means the fourth quarter ("Q4") of 2024. "This year" or

"The year" means the year ended December 31, 2024. Reference to "discontinued operations" is to Neves-Corvo and

Zinkgruvan.

About Lundin Mining

Lundin Mining Corporation (“Lundin Mining” or the “Company”) is a diversified Canadian base metals mining company with

projects or operations focused in the Americas and primarily producing copper, gold and nickel.

On December 9, 2024, the Company announced that it had entered into a definitive agreement with Boliden AB ("Boliden")

to sell its interest in the Neves-Corvo and Zinkgruvan mines located in Portugal and Sweden, respectively. The transaction is

expected to close in mid-2025 subject to customary conditions and regulatory approvals. These assets are reported as

assets held for sale and their associated liabilities as liabilities held for sale in the Company's Consolidated Financial

Statements and MD&A, and the results from their operations are reported as discontinued operations. For further

information refer to Note 3 of the Consolidated Financial Statements.

Table of Contents


Highlights ...................................................................................................................................................................................................	1
Outlook ......................................................................................................................................................................................................	6
Selected Fourth Quarter and Annual Financial Information ............................................................................................................	7
Selected Quarterly Financial Information ............................................................................................................................................	9
Summary of Quarterly Results ...............................................................................................................................................................	10
Revenue Overview ...................................................................................................................................................................................	11
Financial Results .......................................................................................................................................................................................	14
Fourth Quarter Financial Results ...........................................................................................................................................................	17
Mining Operations ...................................................................................................................................................................................	19
Vicuña Projects .........................................................................................................................................................................................	34
Exploration Update ..................................................................................................................................................................................	34
Liquidity and Capital Resources .............................................................................................................................................................	35
Non-GAAP and Other Performance Measures ...................................................................................................................................	39
Other Information and Advisories ........................................................................................................................................................	48
Outstanding Share Data ..........................................................................................................................................................................	50

Cautionary Statement on Forward-Looking Information

Certain of the statements made and information contained herein are “forward-looking information” within the meaning of applicable Canadian securities laws. All statements

other than statements of historical facts included in this document 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 amount of future production and its expectations regarding the results of operations;

expected costs; permitting requirements and timelines; timing and possible outcome of pending litigation; the results of any Preliminary Economic Assessment, Pre-Feasibility

Study, Feasibility Study, or Mineral Resource and Mineral Reserve estimations, life of mine estimates, and mine and mine closure plans; anticipated market prices of metals,

currency exchange rates and interest rates; the development and implementation of the Company’s Responsible Mining Management System; the Company’s ability to comply

with contractual and permitting or other regulatory requirements; anticipated exploration and development activities at the Company’s projects; the Company’s integration of

acquisitions and expansions and any anticipated benefits thereof, including the anticipated project development and other plans and expectations with respect to the 50/50

joint arrangement with BHP; the timing and completion of the sale of the Company’s European assets; and expectations for other economic, business, and/or competitive

factors. Words such as “believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “goal”, “aim”, “intend”, “continue”, “budget”, “estimate”, “may”, “will”, “can”, “could”,

“should”, “schedule” and similar expressions identify forward-looking information.

Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation, the expectations and beliefs of management, including

that the Company can access financing, appropriate equipment and sufficient labour; assumed and future price of copper, gold, zinc, nickel and other metals; anticipated costs;

ability to achieve goals; the prompt and effective integration of acquisitions and the realization of synergies and economies of scale in connection therewith; that the political

environment in which the Company operates will continue to support the development and operation of mining projects; and assumptions related to the factors set forth below.

While these factors and assumptions are considered reasonable by Lundin Mining as at the date of this document in light of management’s experience and perception of current

conditions and expected developments, such information is inherently 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 information and undue reliance should not be placed on such

information. Such factors include, but are not limited to: dependence on international market prices and demand for the metals that the Company produces; political, economic,

and regulatory uncertainty in operating jurisdictions, including but not limited to those related to permitting and approvals, nationalization or expropriation without fair

compensation, environmental and tailings management, labour, trade relations, and transportation; operating jurisdictions, including but not limited to those related to

permitting and approvals, nationalization or expropriation without fair compensation, environmental and tailings management, labour, trade relations, and transportation; risks

relating to mine closure and reclamation obligations; health and safety hazards; inherent risks of mining, not all of which related risk events are insurable; risks relating to tailings

and waste management facilities; risks relating to the Company’s indebtedness; challenges and conflicts that may arise in partnerships and joint operations; risks relating to

development projects; risks that revenue may be significantly impacted in the event of any production stoppages or reputational damage in Chile; the impact of global financial

conditions, market volatility and inflation; business interruptions caused by critical infrastructure failures; challenges of effective water management; exposure to greater foreign

exchange and capital controls, as well as political, social and economic risks as a result of the Company’s operation in emerging markets; risks relating to stakeholder opposition

to continued operation, further development, or new development of the Company’s projects and mines; any breach or failure information systems; risks relating to reliance on

estimates of future production; risks relating to litigation and administrative proceedings which the Company may be subject to from time to time; risks relating to acquisitions

or business arrangements; risks relating to competition in the industry; failure to comply with existing or new laws or changes in laws; challenges or defects in title or termination

of mining or exploitation concessions; the exclusive jurisdiction of foreign courts; the outbreak of infectious diseases or viruses; risks relating to taxation changes; receipt of and

ability to maintain all permits that are required for operation; minor elements contained in concentrate products; changes in the relationship with its employees and contractors;

the Company’s Mineral Reserves and Mineral Resources which are estimates only; payment of dividends in the future; compliance with environmental, health and safety laws

and regulations, including changes to such laws or regulations; interests of significant shareholders of the Company; asset values being subject to impairment charges; potential

for conflicts of interest and public association with other Lundin Group companies or entities; activist shareholders and proxy solicitation firms; risks associated with climate

change; the Company's common shares being subject to dilution; ability to attract and retain highly skilled employees; reliance on key personnel and reporting and oversight

systems; reliance on key personnel and reporting and oversight systems; risks relating to the Company's internal controls; counterparty and customer concentration risk; risks

associated with the use of derivatives; exchange rate fluctuations; the completion of the sale of the Company’s European assets; and other risks and uncertainties, including but

not limited to those described in the "Risks and Uncertainties” section of this MD&A and the “Risks and Uncertainties” section of the Company’s Annual Information Form for the

year ended December 31, 2024, which are available on SEDAR+ at www.sedarplus.ca under the Company’s profile.

All of the forward-looking information in this document is qualified by these cautionary statements. Although the Company has attempted to identify important factors that

could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated,

estimated, forecasted or intended and readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Should one or

more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking

information. Accordingly, there can be no assurance that forward-looking information will prove to be accurate and forward-looking information is not a guarantee of future

performance. Readers are advised 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 forward‐looking information or to explain any material difference between such and

subsequent actual events, except as required by applicable law.

1 This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.

Highlights

For the year ended December 31, 2024, the Company generated annual revenue from continuing operations of $3.4 billion

(2023 - $2.7 billion). Revenue from discontinued operations was $694.8 million (2023 - $648.6 million), and the combination

of revenue from continuing operations and discontinued operations ("all operations") was an annual record for the

Company of $4.1 billion (2023 - $3.4 billion). Revenue in 2024 benefited from increased realized copper and gold prices,

combined with record production of 369,067 tonnes of copper, record production of 191,704 tonnes of zinc, and 158

thousand ounces ("koz") of gold, which achieved the Company's most recently disclosed annual guidance for these metals.

Net loss in 2024 for all operations of $61.3 million (2023 - $315.2 million net earnings) included $153.4 million earnings

from continuing operations (2023 - $276.9 million) and were impacted by non-cash impairments totaling $254.2 million

($186.1 million net of tax) relating to Eagle, Suruca (Chapada) and Alcaparrosa (Ojos complex at Candelaria). Additionally,

net loss benefited from a $28.3 million ($18.7 million net of tax) non-cash partial reversal of a previous long-term ore

stockpile inventory write-down at Chapada. Net loss in 2024 also included a $214.7 million net loss from discontinued

operations which was impacted by a non-cash impairment of $291.2 million ($270.3 million net of tax) related to the sale of

Neves-Corvo. Excluding impairments and other items, strong annual production in 2024 resulted in adjusted earnings 1 (all

operations) of $358.9 million (2023 - $336.2 million) and adjusted EBITDA1 (all operations) of $1,707.0 million (2023 -

$1,363.5 million). Adjusted EBITDA1 — continuing operations in 2024 amounted to $1,461.8 million (2023 - $1,145.6

million).

In 2024, free cash flow from operations1 (all operations) of $873.0 million (2023 - $345.1 million) and free cash flow1 (all

operations) of $571.2 million (2023 - $13.5 million) benefited from increased revenue, positive working capital inflows and a

reduction in sustaining capital expenditure1.

For the quarter ended December 31, 2024, the Company generated revenue from continuing operations of $858.9 million

(Q4 2023 - $893.4 million) and from discontinued operations of $165.0 million (Q4 2023 - $166.6 million). Net loss in the

quarter from continuing operations was $159.6 million (Q4 2023 - net earnings of $40.4 million) and from discontinued

operations was $244.8 million (Q4 2023 - net earnings of $26.3 million), and in both cases were impacted by impairments.

Net loss in the quarter from continuing operations was also impacted by the non-cash partial reversal of a previous long-

term ore stockpile inventory write-down at Chapada. Excluding impairments and other items, adjusted earnings (all

operations) in the quarter was $119.2 million (Q4 2023 - $79.7 million) and adjusted EBITDA (all operations) was $425.6

million (Q4 2023 - $419.7 million). Adjusted earnings (all operations) during the quarter benefitted from higher gross profit

as well as a $41.5 million deferred tax recovery as a result of an annual recognition of deferred tax assets at Caserones to

utilize accumulated tax losses.

At December 31, 2024, the Company had net debt excluding lease liabilities1 of $1,332.3 million (December 31, 2023 -

$946.2 million).

1 This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.

Operational Performance

Candelaria (80% owned): Candelaria produced, on a 100% basis, 162,487 tonnes of copper, approximately 93,000 ounces

of gold and 2.0 million ounces of silver during the year. Copper and gold production benefited from planned higher grade

ore from Phase 11 and in the second half of the year, the operation produced 98,970 tonnes of copper which was one of its

best second-half performances in its 30 year history. In late 2024 production from Phase 11 shifted to lower average grades,

resulting in annual copper production slightly below the most recently published guidance range. In 2025 production will

continue to be sourced primarily from Phase 11 with a planned reduction in average copper grades from those realized in

the second half of 2024. Annual gold production was within the most recently disclosed annual guidance range. Copper

cash cost1 of $1.73/lb was within the most recently disclosed 2024 cash cost guidance range and benefitted from higher

sales volumes, favourable foreign exchange, and higher by-product credits.

Caserones (70% owned): Caserones produced, on a 100% basis, 124,761 tonnes of copper and 3,183 tonnes of

molybdenum, both within the most recently disclosed 2024 annual production guidance ranges. Production during the year

was impacted by labour action in August which reduced throughput to approximately 50% capacity over a 14-day period.

Mine sequencing changes as a result of hydrogeologic conditions in Phase 5 reduced grades and impacted recoveries in the

mill during the quarter. Copper cathode production was positively impacted by increased irrigation pattern on the dump

leach pad. Copper cash cost1 of $2.51/lb was below the low end of the most recently disclosed cash cost guidance range and

benefitted from higher by-product credits and favourable foreign exchange.

Chapada (100% owned): Chapada produced 43,261 tonnes of copper and approximately 65,000 ounces of gold during the

year, both metals were within the most recently disclosed 2024 production guidance ranges. An optimized mine plan led to

a significant reduction in overall material movement, including waste and ore, and contributed to lower production costs.

Increased processing of ore from the older low-grade stockpile and North pit resulted in lower copper production due to

lower grades and recoveries. Gold production benefited from higher grades and throughput as emphasis was placed on

gold in the current elevated gold price environment. Production costs during the year also benefited from a weakening of

the BRL against the USD. Copper cash cost1 of $1.58/lb was within the most recently disclosed 2024 cash cost guidance

range and benefited from higher by-product credits and favourable foreign exchange.

Eagle (100% owned): Eagle produced 7,486 tonnes of nickel and 6,366 tonnes of copper during the year. Production was

impacted by reduced mining rates following a fall of ground in the lower ramp in May, which limited access to Eagle East

while ramp rehabilitation was completed. During the quarter mining re-commenced at Eagle East and normal throughput is

expected to resume in Q1 2025. Both metals were within the most recently disclosed 2024 production guidance ranges.

Production costs decreased in line with lower production and sales. Nickel cash cost1 of $4.20/lb was above the most

recently disclosed 2024 cash cost guidance range due to mining rates not recovering as quickly as expected in the quarter.

Neves-Corvo (100% owned): Neves-Corvo produced 28,228 tonnes of copper and a record 109,571 tonnes of zinc during

the year. Copper production was within the most recently disclosed production guidance range and zinc production

benefited from higher throughput as a result of the zinc expansion project, although was slightly below the most recently

disclosed annual production guidance range. Production costs during the year decreased in line with sales volumes. Annual

copper cash cost1 of $2.19/lb benefited from higher by-product credits but exceeded the most recently disclosed 2024 cash

cost guidance range as a result of lower than expected sales volumes.

Zinkgruvan (100% owned): Record zinc production of 82,133 tonnes and lead production of 30,888 tonnes during the year

were driven by higher throughput, grades and recoveries. Annual zinc production was within the most recently disclosed

2024 production guidance range. Production costs during the year increased in line with higher zinc and lead production

and sales volumes. Zinc cash cost 1 of $0.41/lb was within the most recently disclosed 2024 cash cost guidance range.

2024 Production, Cash Cost and Capital Expenditure Summary

Total 2024 production, cash costs and capital expenditures are compared to the most recent 2024 guidance as follows:


		Production		Cash Cost ($/lb)a
(Contained metal in concentrate)		Actual	Guidanceb	Actual	Guidanceb
Copper (t)	Candelaria (100%)	162,487	165,000 - 173,000	1.73	1.60 – 1.80
	Caserones (100%)	124,761	121,000 - 125,000	2.51	2.60 – 2.80
	Chapada	43,261	43,000 - 48,000	1.58	1.55 – 1.65
	Eagle	6,366	6,000 - 8,000
	Total from continuing operations	336,875
	Neves-Corvo	28,228	27,000 - 30,000	2.19	1.95 – 2.15
	Zinkgruvan	3,964	4,000 - 5,000
	Total	369,067	366,000 - 389,000

Zinc (t)	Neves-Corvo	109,571	111,000 - 116,000
	Zinkgruvan	82,133	79,000 - 83,000	0.41	0.40 – 0.45
	Total from discontinued operations	191,704	190,000 - 199,000

Gold (koz)	Candelaria (100%)	93	92 - 102
	Chapada	65	63 - 68
	Total	158	155 - 170

Nickel (t)	Eagle	7,486	7,000 - 9,000	4.20	3.70 – 3.90

Molybdenum (t)	Caserones (100%)	3,183	2,800 - 3,300

2024 Capital Expenditurec


($ thousands)	Actual	Guidanceb
Candelaria (100%)	275,720	275,000
Caserones (100%)	143,965	135,000
Chapada	107,843	110,000
Eagle	21,222	25,000
Other	350	—
Total from continuing operations	549,100
Neves-Corvo	89,302	110,000
Zinkgruvan	65,658	65,000
Total Sustaining Capital	704,060	720,000
Expansionary - Josemariad	243,566	230,000
Total Capital Expenditures	947,626	950,000
a. Cash cost is a non-GAAP measure - see Section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
b. Guidance as disclosed in the Company's MD&A for the three and nine months ended September 30, 2024 with trending commentary in the MD&A for the three and nine months ended September 30, 2024.
c. Sustaining capital expenditure is a supplementary financial measure and expansionary capital expenditure is a non-GAAP measure – see Section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
d. Expansionary Capital Expenditure excludes capitalized interest.

Corporate Updates

• On February 12, 2025, the Company reported its Mineral Resource and Mineral Reserve estimates as at December 31,

2024 (or as otherwise specified).

• On January 30, 2025, the Company announced that it received notice from the Superintendencia del Medio Ambiente

("SMA") following investigative proceedings involving the sinkhole that occurred at the Alcaparrosa mine located in the

Candelaria complex in 2022. The notice levies a fine of $3.3 million and orders the continued closure of the Alcaparrosa

mine, based on four violations investigated. Mining operations at Alcaparrosa have been suspended since the incident

occurred in 2022 while operations at the Candelaria mine continue unaffected. As a result of the permanent mine

closure, a $55.9 million impairment ($41.6 million net of tax) was recorded in December 2024.

• On January 15, 2025, the Company announced the completion of the joint acquisition (the “Filo Acquisition”) with BHP

Investments Canada Inc. ("BHP") of all of the issued and outstanding common shares (the "Filo Shares") of Filo Corp.

("Filo") not already owned by Lundin Mining, BHP and their respective affiliates. Concurrently, Lundin Mining and BHP

have formed a 50/50 joint arrangement, Vicuña Corp. (the “Joint Arrangement” or “Vicuña”), holding the Filo del Sol

project (“FDS”) and the Josemaria project, collectively the ("Vicuña Projects"). On completion, BHP paid Lundin Mining

a cash consideration of $690 million for a 50% interest in the Josemaria project and Lundin Mining paid C$877.8 million

in cash and 94.1 million Lundin Mining shares to Filo shareholders for its 50% interest in Filo.

• On December 9, 2024, the Company announced that it signed a definitive agreement with Boliden to sell its Neves-

Corvo operation in Portugal and Zinkgruvan operation in Sweden to Boliden AB. Under the terms of the agreement,

Lundin Mining will receive upfront cash consideration of $1.37 billion upon closing, based on a cash-free and debt-free

enterprise value of $1.3 billion as of an August 31, 2024 lock box date. In addition, Lundin Mining will receive up to

$150 million in contingent cash consideration upon satisfaction of certain conditions. The transaction is not subject to

shareholder approval or any financing conditions. The transaction is anticipated to close in mid-2025, subject to the

completion of customary conditions and regulatory approvals.

• On July 2, 2024, the Company completed the exercise of its option to acquire an additional 19% interest in the issued

and outstanding equity of SCM Minera Lumina Copper Chile (“Lumina Copper”), bringing the Company's interest in

Caserones from 51% to 70%. The acquisition was initially financed by a $350 million draw from the Company's revolving

credit facility ("RCF"). On August 2, 2024 the draw was repaid with proceeds from a $350 million increase in the

Company's existing $800 million term loan (the "Term Loan"), currently maturing on July 27, 2027, and increasing the

principal amount to $1,150 million.

• On May 23, 2024, the Company amended the terms of the RCF and the Term Loan to establish sustainability

performance targets whereby the interest rate margin in the facilities will be adjusted based on the Company's

performance relative to the targets. In July 2024, the Company published its 2023 Sustainability Report which highlights

the Company's material environment, health & safety, governance and social performance during the year.

• On February 12, 2024, the Company reported an employee fatality at the Neves-Corvo Mine in Portugal. Operations

were voluntarily suspended and restarted on February 15, 2024.

2024 Financial Performance

• Gross profit from continuing operations for the year of $942.9 million was $341.3 million higher than in the prior year

comparable period of $601.5 million. The increase is primarily due to higher realized copper and gold prices, higher

production, the inclusion of Caserones results for the full year (acquired on July 13, 2023), and the non-cash partial

reversal of a previous long-term ore stockpile inventory write-down at Chapada. Gross profit from discontinued

operations was $94.2 million (2023 - $50.8 million).

• Net earnings from continuing operations for the year of $153.4 million decreased from the prior year comparable

period of $276.9 million. Net earnings were impacted by non-cash impairments recognized in the fourth quarter

including $104.9 million ($82.8 million net of tax) relating to the Eagle mine due to a decline in nickel prices and

prolonged rehabilitation of the Eagle East ramp, $93.4 million ($61.7 million net of tax) related to the Suruca gold

deposit near Chapada following the removal of reserves and $55.9 million ($41.6 million net of tax) due to the

continued closure of the Alcaparrosa mine within the Candelaria mining complex. Additionally, net earnings benefited

from a $28.3 million ($18.7 million net of tax) non-cash partial reversal of of a previous long-term ore stockpile

inventory write-down at Chapada. Net loss from discontinued operations was $214.7 million and include a non-cash

impairment of $291.2 million ($270.3 million net of tax) to align the carrying value of Neves-Corvo with expected cash

consideration for this asset. The reduction in carrying value for Neves-Corvo is expected to result in a gain on sale for

the disposal group as a whole, upon closing of the transaction.

• Adjusted earnings1 (all operations) for the year of $358.9 million, increased from the prior year comparable period of

$336.2 million as a result of higher gross profit, partially offset by reduced foreign exchange and trading gains on debt

and equity investments supporting capital funding for the Josemaria Project and higher interest expense as a result of

higher debt during the year.

• Cash provided by operating activities related to continuing operations for the year of $1,300.8 million represented an

increase of $473.6 million from the prior year comparable period of $827.2 million. The increase was primarily due to

higher gross profit and positive working capital inflows including net collections of trade receivables, timing of tax

payments and $45.0 million in payments received by Caserones relating to two shipments of copper concentrate

scheduled for December 2024 that were delayed to early January due to certain operational and weather-related

issues. Cash provided by operating activities related to discontinued operations for the year was $218.0 million (2023 -

$189.4 million).

• For the year, sustaining capital expenditures from continuing operations of $549.1 million were lower than in the prior

year comparable period of $571.2 million. The net reduction was primarily due to lower spending at Candelaria from

reduced deferred stripping in 2024 and lower spending on the Los Diques tailing storage facility. These reductions were

partially offset by increased deferred stripping and water management expenditures at Chapada, and the addition of

Caserones' sustaining capital expenditures for the full year. Expansionary capital expenditures1 of $243.6 million for

the year were lower than in the prior year comparable period of $275.9 million, as a result of optimized spending on

the Josemaria Project before formation of the Vicuña Joint Arrangement. Sustaining capital expenditures related to

Neves-Corvo and Zinkgruvan were $89.3 million and $65.7 million, respectively, for the year.

• Free cash flow1 (all operations) for the year of $571.2 million was higher than in the prior year comparable period of

$13.5 million primarily due to increased cash provided by operating activities. Free cash flow from discontinued

operations for the year was $63.0 million.

2 This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.

2024 Financial Position and Financing

• Cash and cash equivalents at continuing operations as at December 31, 2024 were $357.5 million. As indicated above,

cash provided by operating activities related to continuing operations of $1,300.8 million in the year was used to fund

investing activities from continuing operations of $855.4 million, which primarily includes $807.3 million investment in

mineral properties, plant and equipment, $41.7 million subscription for Filo shares to provide interim financing to Filo

and the final $25.0 million payment of contingent consideration for the acquisition of Chapada. Cash used in financing

activities related to continuing operations of $349.8 million was comprised primarily of funds used to exercise the

Company's option to acquire an additional 19% interest in Caserones for $350.0 million, which was funded by debt

proceeds, $202.5 million dividends paid to shareholders and $152.0 million in distributions paid to non-controlling

interests.

• As at December 31, 2024, the Company had net debt 2 of $1,597.8 million and net debt excluding lease liabilities of

$1,332.3 million.

• As at February 19, 2025, the Company had cash of approximately $407.1 million and net debt excluding lease liabilities

of approximately $1,322.4 million. Net cash in Vicuña is included on a 50% basis to represent Lundin Mining's

attributable share. Cash and net debt balances include assets and liabilities classified as held-for-sale.

2025 Outlook

On January 16, 2025, the Company announced its production, cash cost, capital expenditures and exploration investment

guidance for 2025.

2025 Production and Cash Cost Guidance


		Guidancea
(contained metal)		Production	Cash Cost ($/lb)b
Copper (t)	Candelaria (100%)	140,000 – 150,000	1.80 – 2.00c
	Caserones (100%)	115,000 – 125,000	2.40 – 2.60
	Chapada	40,000 – 45,000	1.80 – 2.00d
	Eagle	8,000 – 10,000
	Total	303,000 – 330,000	2.05 – 2.30
Gold (koz)	Candelaria (100%)	78 – 88
	Chapada	57 – 62
	Total	135 – 150
Nickel (t)	Eagle	8,000 – 11,000	3.05 – 3.25
a. Guidance as outlined in the news release 'Lundin Mining Announces Record Production Results for 2024 and Provides 2025 Guidance' dated January 16, 2025. b. 2025 cash costs are based on various assumptions and estimates, including but not limited to: production volumes, commodity prices (Cu: $4.40/lb, Au: $2,500/oz, Mo: $17.00/lb, Ag: $30.00/oz), foreign exchange rates (USD/CLP:900, USD/BRL:5.50) and operating costs. Cash cost is a non-GAAP measure - see section 'Non-GAAP and Other Performance Measures' of this MD&A for discussion. c. 68% of Candelaria's total gold and silver production are subject to a streaming agreement. Cash costs are calculated based on receipt of approximately $433/oz gold and $4.32/oz silver. d. Chapada's cash cost is calculated on a by-product basis and does not include the effects of its copper stream agreements. Effects of the copper stream

2025 Capital Expenditure Guidanceb


	($ millions)	Guidancea
	Candelaria (100% basis)	205
	Caserones (100% basis)	215
	Chapada	85
	Eagle	25
	Total Sustaining	530
	Expansionary - Candelaria (100% basis)	50
	Expansionary - Vicuña Joint Arrangement (50% basis)	155
	Total Capital Expenditures	735
a. Guidance as outlined in the news release 'Lundin Mining Announces Record Production Results for 2024 and Provides 2025 Guidance' dated January 16, 2025. b. Sustaining capital expenditure is a supplementary financial measure, and expansionary capital expenditure is a non-GAAP measure – see Section "Non- GAAP and Other Performance Measures" of this MD&A for discussion.

2025 Exploration Investment Guidance

Total exploration expenditure guidance for 2025 is $40 million.

2024 Selected Fourth Quarter and Annual Financial Information


	Three months ended December 31,		Year ended December 31,
($ millions continuing operations except where noted)	2024	2023	2024	2023	2022
Revenue	858.9	893.4	3,422.6	2,743.4	2,315.6
Costs of goods sold:
Production costs	(486.9)	(533.8)	(1,898.6)	(1,644.0)	(1,216.6)
Depreciation, depletion and amortization	(148.0)	(181.9)	(607.7)	(497.9)	(416.2)
Inventory (write-down) reversal	26.6	—	26.6	—	(62.5)
Gross profit	250.6	177.8	942.9	601.5	620.3

Net earnings from continuing operations attributable to:
Lundin Mining shareholders	(195.3)	12.5	11.1	203.2	277.2
Non-controlling interests	35.7	28.0	142.2	73.7	36.7
Net earnings (loss) from continuing operations	(159.6)	40.4	153.4	276.9	313.9

Net earnings (loss) from discontinued operations	(244.8)	26.3	(214.7)	38.4	149.7

Net earnings attributable to:
Lundin Mining shareholders	(440.2)	38.8	(203.5)	241.6	426.9
Non-controlling interests	35.7	28.0	142.2	73.7	36.7
Net earnings	(404.4)	66.8	(61.3)	315.2	463.6

Adjusted earnings1 (all operations)	119.2	79.7	358.9	336.2	482.8
Adjusted earnings1 — continuing operations	94.8	72.4	291.7	287.5	326.6
Adjusted earnings1 — discontinued operations	24.4	7.3	67.2	48.7	156.1
Adjusted EBITDA1 (all operations)	425.6	419.7	1,707.0	1,363.5	1,292.5
Adjusted EBITDA1 — continuing operations	368.2	367.6	1,461.8	1,145.6	953.6
Adjusted EBITDA1 — discontinued operations	57.4	52.1	245.2	217.9	338.9
Cash provided by operating activities (all operations)	620.3	306.1	1,518.9	1,016.6	876.9
Cash provided by operating activities related to continuing operations	547.3	249.9	1,300.8	827.2	616.0
Cash provided by operating activities related to discontinued operations	73.0	56.2	218.0	189.4	260.9
Adjusted operating cash flow1 (all operations)	313.9	362.0	1,302.6	1,024.2	992.9
Adjusted operating cash flow1 — continuing operations	251.8	305.4	1,080.0	847.3	740.1
Adjusted operating cash flow1 — discontinued operations	62.1	56.7	222.6	176.9	252.9
Free cash flow from operations1 (all operations)	466.0	116.8	873.0	345.1	381.4
Free cash flow from operations1 — continuing operations	423.6	95.7	797.1	300.0	230.7
Free cash flow from operations1 — discontinued operations	42.5	21.0	75.9	45.1	150.7
Free cash flow1 (all operations)	397.9	61.2	571.2	13.5	34.1
Free cash flow1 — continuing operations	360.0	43.6	508.2	(19.9)	(75.6)
Free cash flow1 — discontinued operations	37.9	17.6	63.0	33.4	109.6
Capital expenditures2 — continuing operations	191.3	205.3	807.3	857.1	691.6
Capital expenditures2 — discontinued operations	35.2	38.6	155.0	156.0	151.3
1 This is a non-GAAP measure - see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.
2 Capital expenditures are reported on a cash basis, as presented in the consolidated statement of cash flows.


	Three months ended December 31,		Year ended December 31,
	2024	2023	2024	2023	2022
Per share amounts:
Basic and diluted (loss) earnings from continuing operations per share ("EPS") attributable to shareholders	(0.25)	0.02	0.01	0.26	0.36
Basic and diluted (loss) earnings from discontinued operations per share ("EPS") attributable to shareholders	(0.32)	0.03	(0.27)	0.05	0.20
Basic and diluted (loss) total earnings per share ("EPS") attributable to shareholders	(0.57)	0.05	(0.26)	0.31	0.56
Adjusted EPS1 (all operations)	0.15	0.10	0.46	0.44	0.63
Adjusted EPS1 — continuing	0.12	0.09	0.38	0.37	0.43
Adjusted EPS1 — discontinued	0.03	0.01	0.09	0.06	0.20
Adjusted operating cash flow per share1 (all operations)	0.40	0.47	1.68	1.33	1.30
Adjusted operating cash flow per share1 — continuing	0.32	0.39	1.39	1.10	1.00
Adjusted operating cash flow per share1 — discontinued	0.08	0.08	0.29	0.23	0.30
Dividends declared (C$/share)	0.09	0.09	0.36	0.36	0.47

($ millions)			December 31, 2024	December 31, 2023	December 31, 2022
Total assets			10,406.7	10,861.2	8,172.8
Total debt and lease liabilities			2,006.2	1,485.8	197.3
Net debt excluding lease liabilities1			(1,332.3)	(946.2)	16.3

1 This is a non-GAAP measure - see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.

The Company's annual results have been impacted by the acquisition of the Josemaria Project in April 2022 and the

acquisition of the Caserones mine in July 2023. Project development costs for the Josemaria Project were initially included

in general exploration expenses but began to be capitalized from the fourth quarter of 2022, contributing to higher general

exploration expenses and lower capital expenditure in 2022 as compared to 2023. The acquisition of the Caserones mine in

July 2023 contributed to increases in total metal production, net earnings and capital expenditures in 2024 as compared to

2023 and 2022. Additionally, fair value adjustments of $39.9 million impacted production costs in 2023 to re-value the

concentrate and in-process inventory on hand at the acquisition of the Caserones mine.

Net earnings from continuing operations in 2024 were reduced by non-cash impairments including $104.9 million ($82.8

million net of tax) relating to the Eagle mine due to a decline in nickel prices and prolonged rehabilitation of the Eagle East

ramp, $93.4 million ($61.7 million net of tax) related to the Suruca gold deposit near Chapada following the removal of

reserves and $55.9 million ($41.6 million net of tax) due to the continued closure of the Alcaparrosa mine within the

Candelaria mining complex. In 2022, net earnings from continuing operations were also reduced by a $66.8 million non-cash

write-down of long-term ore stockpile inventory at Chapada. In 2024, $28.3 million of this write-down was reversed as a

result of higher market expectations for long-term copper and gold prices.

The $800 million Term Loan entered into in conjunction with the Caserones acquisition increased the Company's total debt

in mid-2023 and then was increased by $350 million to fund the acquisition of the additional 19% interest in 2024, and has

increased interest expense, reducing net earnings. From 2022, the Company has entered into derivative contracts for

foreign currency, diesel, and opportunistic copper and gold derivatives, as part of its risk management strategy, with

realized and unrealized gains and losses impacting net earnings. The Company has also realized foreign exchange and

trading gains on debt and equity investments from mid-2022 to support capital funding for the Josemaria Project.

Following the Company's announcement of a definitive agreement to sell its interest in the Neves-Corvo and Zinkgruvan

mines, results from these operations are reported as discontinued operations. Net loss from discontinued operations in

2024 was impacted by $291.2 million non-cash impairment to align the carrying value of Neves-Corvo with expected cash

consideration.

Summary of Quarterly Results1


($ millions, except per share data)	Q4-24	Q3-24	Q2-24	Q1-24	Q4-23	Q3-23	Q2-23	Q1-23
Revenue from continuing operations	858.9	873.1	878.3	812.3	893.4	798.7	490.4	560.9
Gross profit from continuing operations	250.6	266.2	228.6	197.5	177.8	166.9	81.2	175.7
Net (loss) earnings from continuing operations	(159.6)	110.6	119.4	83.0	40.4	10.4	90.9	135.1
- attributable to shareholders	(195.3)	84.0	84.3	38.3	12.5	(14.4)	88.7	116.4
Net (loss) earnings from discontinued operations	(244.8)	17.2	37.3	(24.4)	26.3	11.5	(29.6)	30.2
Adjusted (loss) earnings2 (all operations)	119.2	72.5	122.1	45.2	79.7	85.3	45.6	125.7
Adjusted (loss) earnings2 from continuing operations	94.8	57.2	83.4	56.4	72.4	57.8	64.9	92.4
Adjusted (loss) earnings2 from discontinued operations	24.4	15.3	38.7	(11.1)	7.3	27.5	(19.3)	33.3
Adjusted EBITDA2 (all operations)	425.6	457.7	460.9	362.9	419.7	415.1	191.8	336.9
Adjusted EBITDA2 - continuing operations	368.2	385.2	369.9	338.5	367.6	334.9	184.5	258.6
Adjusted EBITDA2 - discontinued operations	57.4	72.5	91.0	24.4	52.1	80.2	7.3	78.3
EPS - Basic and Diluted (all operations)	(0.57)	0.13	0.16	0.02	0.05	—	0.08	0.19
EPS - Basic and Diluted from continuing operations	(0.25)	0.11	0.11	0.05	0.02	(0.02)	0.12	0.15
EPS - Basic and Diluted from discontinued operations	(0.32)	0.02	0.05	(0.03)	0.03	0.02	(0.04)	0.04
Adjusted EPS2 (all operations)	0.15	0.09	0.16	0.06	0.10	0.11	0.06	0.16
Adjusted EPS2 - continuing operations	0.12	0.07	0.11	0.07	0.09	0.07	0.08	0.12
Adjusted EPS2 - discontinued operations	0.03	0.02	0.05	(0.01)	0.01	0.04	(0.02)	0.04
Cash provided by operating activities (all operations)	620.3	139.3	491.8	267.5	306.1	303.8	194.8	211.9
Cash provided by operating activities related to continuing operations	547.3	81.4	440.1	232.2	249.9	260.4	170.0	146.9
Cash provided by operating activities related to discontinued operations	73.0	57.9	51.7	35.4	56.2	43.4	24.8	65.0
Adjusted operating cash flow per share2 (all operations)	0.40	0.39	0.48	0.41	0.47	0.41	0.14	0.30
Adjusted operating cash flow per share2 — continuing operations	0.32	0.31	0.38	0.38	0.39	0.25	0.07	0.26
Adjusted operating cash flow per share2 — discontinued operations	0.08	0.08	0.10	0.03	0.08	0.16	0.07	0.04
Capital expenditure3 from continuing operations	191.3	163.6	217.2	235.2	205.3	203.5	241.8	206.6
Capital expenditure3 from discontinued operations	35.2	41.8	41.2	36.8	38.6	39.7	38.1	39.5

1 The sum of quarterly amounts may differ from year-to-date results due to rounding.

2 This is a non-GAAP measure - see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.

3 Capital expenditures are reported on a cash basis, as presented in the consolidated statement of cash flows.

On a quarterly basis the Company's revenue, gross profit and net earnings can be impacted by metal prices, sales volumes

as a result of the timing of concentrate shipments, and provisional pricing adjustments on current and prior period

shipments.

The acquisition of the Caserones mine in July 2023 contributed to an increase in gross profit and cash flow from operations

in Q3 2023 and in subsequent quarters. Additionally, fair value adjustments of $32.2 million and $7.8 million impacted

production costs in Q3 2023 and Q4 2023, respectively, as in-process and concentrate inventory measured at fair value at

the acquisition date was sold. An $800.0 million Term Loan was entered into in conjunction with the acquisition and was

subsequently increased by $350.0 million with funds used to acquire an additional 19% of Caserones in 2024. Increased

debt has increased the Company's interest expense from Q3 2023 through Q4 2024, reducing net earnings.

In May 2024, a fall of ground in the lower ramp at the Eagle mine reduced mining rates while ramp rehabilitation was

completed. This resulted in lower revenue as well as $9.8 million, $14.8 million, and $11.4 million of overhead costs

incurred in Q2 2024, Q3 2024 and Q4 2024, respectively, reducing net earnings.

As reported above, net earnings from continuing operations in Q4 2024 were reduced by non-cash impairments including

$104.9 million ($82.8 million net of tax) relating to the Eagle mine due to a decline in nickel prices and prolonged

rehabilitation of the Eagle East ramp, $93.4 million ($61.7 million net of tax) related to the Suruca gold deposit near

Chapada following the removal of reserves and $55.9 million ($41.6 million net of tax) due to the continued closure of the

Alcaparrosa mine within the Candelaria mining complex.

In Q4 2024, net earnings and gross profit from continuing operations benefited from a $28.3 million non-cash partial

reversal of a previous long-term ore stockpile inventory write-down at Chapada, as a result of higher market expectations

for long-term copper and gold prices.

In the quarters presented, the Company has entered into derivative contracts for foreign currency, diesel, copper prices and

gold prices as part of its risk management strategy. Realized and unrealized gains and losses on derivative contracts and

foreign exchange and trading gains on debt and equity investments are recorded in other income and expense and impact

the Company's net earnings.

As reported above, following the Company's announcement of a definitive agreement to sell its interest in the Neves-Corvo

and Zinkgruvan mines, results from these operations are reported as discontinued operations. Net loss from discontinued

operations in Q4 2024 was impacted by a $291.2 million non-cash impairment to align the carrying value of Neves-Corvo

with expected cash consideration.

In Q4 2024, a deferred tax recovery of $41.5 million was recorded at Caserones following a re-assessment of the estimated

future utilization of accumulated tax losses.

Revenue Overview

Sales Volumes by Payable Metal - Continuing Operations


	2024					2023
	Total	Q4	Q3	Q2	Q1	Total	Q4	Q3	Q2	Q1
Copper (t)
Candelaria (100%)	158,017	49,052	45,430	29,999	33,536	144,473	38,888	33,668	36,347	35,570
Caserones (100%)1	113,867	26,750	22,044	29,862	35,211	66,075	35,690	30,385	—	—
Chapada	39,615	10,200	12,380	8,293	8,742	43,761	13,080	11,445	10,164	9,072
Eagle	5,457	877	733	1,789	2,058	11,968	3,055	3,177	2,951	2,785
	316,956	86,879	80,587	69,943	79,547	266,277	90,713	78,675	49,462	47,427
Gold (koz)
Candelaria (100%)	89	27	26	17	19	87	23	19	23	22
Chapada	58	15	19	12	12	53	18	13	11	11
	147	42	45	29	31	140	41	32	34	33
Nickel (t)
Eagle	5,662	1,088	393	2,018	2,163	13,339	3,105	3,640	3,859	2,735
Molybdenum (t)
Caserones (100%)1	3,056	944	581	695	836	2,019	978	1,041	—	—
Silver (koz)
Candelaria (100%)	1,799	557	511	331	400	1,322	415	279	333	295
Chapada	96	21	24	30	21	129	37	32	29	31
Eagle	8	1	(1)	7	1	24	8	6	4	6
	1,903	579	534	368	422	1,475	460	317	366	332
1 Caserones 2023 results are from July 13, 2023.

Revenue Analysis


	Three months ended December 31,					Year ended December 31,
by Mine	2024		2023		Change	2024		2023		Change
($ thousands)	$	%	$	%	$	$	%	$	%	$
Candelaria (100%)	449,115	52	359,023	40	90,092	1,618,936	47	1,329,599	48	289,337
Caserones (100%)1	262,971	31	317,219	36	(54,248)	1,153,625	34	601,775	22	551,850
Chapada	121,206	14	143,439	16	(22,233)	497,576	15	461,175	17	36,401
Eagle	25,583	3	73,720	8	(48,137)	152,467	4	350,895	13	(198,428)
Continuing Operations	858,875		893,401		(34,526)	3,422,604		2,743,444		679,160
Neves-Corvo	97,511	59	115,823	—	(18,312)	438,053	—	425,042	—	13,011
Zinkgruvan	67,455	41	50,783	—	16,672	256,748	—	223,591	—	33,157
1 Caserones 2023 results are from July 13, 2023.


	Three months ended December 31,					Year ended December 31,
by Metal	2024		2023		Change	2024		2023		Change
($ thousands, continuing operations)	$	%	$	%	$	$	%	$	%	$
Copper1	688,745	80	721,998	81	(33,253)	2,807,053	82	2,121,295	77	685,758
Gold	93,582	11	74,098	8	19,484	304,538	9	235,857	9	68,681
Molybdenum1	39,579	5	28,825	3	10,754	131,021	4	77,523	3	53,498
Nickel	17,805	2	47,601	5	(29,796)	100,387	3	243,050	9	(142,663)
Silver	14,122	2	10,150	1	3,972	48,839	1	30,625	1	18,214
Other	5,042	—	10,729	2	(5,687)	30,766	1	35,094	1	(4,328)
	858,875		893,401		(34,526)	3,422,604		2,743,444		679,160
1 Caserones 2023 results are from July 13, 2023.

Revenue from continuing operations for the year of $3,422.6 million was an increase of $679.2 million over the prior year

comparable period. Revenue increases were primarily due to the inclusion of full year of Caserones copper and

molybdenum revenues, as the prior year period had contribution only from July 2023, and increases in realized copper and

gold prices partially offset by lower nickel sales volumes.

Revenue from gold and silver for the quarter and year includes the partial recognition of an upfront purchase price on the

sale of precious metals streams for Candelaria, Neves-Corvo, and Zinkgruvan as well as the cash proceeds which amount to

approximately $429/oz for gold at Candelaria and $4.28/oz for silver at Candelaria and between $4.50/oz and 4.68/oz for

silver at Neves-Corvo and Zinkgruvan, respectively. Chapada’s copper revenue includes the recognition of deferred revenue

from copper streams acquired with the Chapada mine, as well as the cash proceeds of 30% of the market price of the

copper sold under the streams, which is limited to 7.9% of Chapada's total copper production.

Revenue is recorded using the metal price received for sales that settle during the reporting period. For sales that have not

been settled, an estimate is used based on the expected month of settlement and the forward price of the metal at the end

of the reporting period. The difference between the estimate and the final price received is recognized by adjusting revenue

in the period in which the sale is settled. Settlement dates can range from one to six months after shipment.

Provisionally Valued Revenue from Continuing Operations as of December 31, 2024


Metal	Payable metal	Valued at
Copper	78,322 t	$3.96 /lb
Gold	35 koz	$2,638 /oz
Nickel	709 t	$6.87 /lb
Molybdenum	1,089 t	$21.07 /lb

Full-Year Reconciliation of Realized Prices - Continuing Operations


	Year ended December 31, 2024
($ thousands)	Copper	Gold	Nickel	Molybdenum	Other	Total
Revenue from contracts with customers1	2,922,616	361,086	97,320	136,820	82,860	3,600,702
Provisional pricing adjustments on current year concentrate sales	(21,053)	10,602	(2,410)	4,121	(590)	(9,330)
Provisional pricing adjustments on prior year concentrate sales	22,259	1,092	6,111	(9,919)	5,245	24,788
	2,923,822	372,780	101,021	131,022	87,515	3,616,160
Recognition of deferred revenue						60,599
Copper stream cash effect						(18,113)
Gold stream cash effect						(118,697)
Less: Treatment and refining charges						(117,345)
Total Net Sales						3,422,604

Payable Metal	316,956 t	147 koz	5,662 t	3,056 t

Current period sales 2	$4.15	$2,525	$7.60	$20.92
Provisional pricing adjustments on prior year concentrate sales	0.03	7	0.49	(1.47)
Realized prices 3,4	$4.18 /lb	$2,532 /oz	$8.09 /lb	$19.45 /lb

	Year ended December 31, 2023
	Copper	Gold	Nickel	Molybdenum	Other	Total
Revenue from contracts with customers1	2,266,693	277,682	296,900	82,069	75,465	2,998,807
Provisional pricing adjustments on current year concentrate sales	(40,309)	(560)	(13,031)	(4,593)	(1,397)	(59,889)
Provisional pricing adjustments on prior year concentrate sales	17,511	1,087	(37,636)	47	(1,212)	(20,203)
	2,243,895	278,208	246,233	77,523	72,856	2,918,715
Recognition of deferred revenue						53,823
Copper stream cash effect						(19,639)
Gold stream cash effect						(84,319)
Less: Treatment & refining charges						(125,136)
Total Revenue						2,743,444

Payable Metal	266,277 t	140 koz	13,339 t	2,019 t

Current period sales2	$3.79	$1,983	$9.65	$17.41
Provisional pricing adjustments on prior year concentrate sales	0.03	8	(1.28)	0.01
Realized prices3,4	$3.82 /lb	$1,991 /oz	$8.37 /lb	$17.42 /lb
1. Revenue from contracts with customers before recognition of deferred revenue, gold and copper stream cash effects and treatment and refining charges, each of which is presented separately in the table.
2. Includes revenue from contracts with customers and provisional pricing adjustments on current year concentrate sales.
3. This is a non-GAAP measure - see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.
4. The realized price for copper inclusive of the impact of streaming agreements for 2024 is $4.15/lb (2023: $3.79/lb). The realized price for gold inclusive of the impact of streaming agreements for 2024 is $1,726/oz (2023: $1,387/oz).

Annual Financial Results

Production Costs

Production costs from continuing operations for the year were $1,898.6 million, an increase from $1,644.0 million in the

prior year comparable period. The increase in production costs was primarily as a result of the inclusion of Caserones

results for a full year, as the prior year comparable period included production costs from the acquisition date, July 13,

2023. This was partially offset by lower sales volume at Eagle and Chapada and favourable foreign exchange, which reduced

the production costs at Candelaria, Caserones and Chapada. Production costs from discontinued operations were $445.2

million (2023 - $442.1 million).

Reversal of inventory write-down

At December 31, 2024, as a result of higher market expectations for long-term copper and gold prices, the Company

recognized a $28.3 million non-cash partial reversal of a previous long-term ore stockpile inventory net realizable value

write-down at Chapada (December 31, 2023 - $nil). $1.7 million of the partial reversal is included in depreciation, depletion

and amortization (December 31, 2023 - $nil).

Depreciation, Depletion and Amortization

Depreciation, depletion and amortization expense for continuing operations for the year increased compared to the prior

year comparative period. The increase is primarily attributable to a full year of Caserones results compared to the prior year

comparable period which had the results from acquisition in July 2023. In addition, increased deferred stripping

amortization at Candelaria and Chapada contributed to higher amortization expense in the year when compared to the

prior year comparative period, partially offset by lower amortization rates at Eagle due to fewer units of production.


Depreciation, depletion & amortization	Twelve months ended December 31,
($ thousands, continuing operations)	2024	2023	Change
Candelaria	313,058	272,377	40,681
Caserones	184,054	108,489	75,565
Chapada	76,524	63,480	13,044
Eagle	33,569	52,050	(18,481)
Josemaria	—	38	(38)
Other	539	1,439	(900)
	607,744	497,873	109,871

Finance Costs

Total finance costs, net, from continuing operations amounted to $141.5 million for the year and increased from $91.4

million in the prior year primarily due to higher interest expense in line with increased debt and lease liabilities.

Other Income and Expense

Net other expense from continuing operations for the year amounted to $24.1 million, compared to net other income of

$91.8 million in the prior year. The difference is primarily related to higher unrealized losses on foreign exchange and

commodity derivative contracts and reduced foreign exchange and trading gains on debt and equity investments to support

capital funding for the Josemaria Project, and non-cash write-downs of capital works in progress at the Josemaria project

that are no longer expected to be required. These decreases were partially offset by increased foreign exchange gains as a

result of weakening of the CLP and BRL against the USD and a $11.7 million gain on the revaluation of the Caserones

purchase option, prior to it being exercised during the year.

Period end exchange rates having a meaningful impact on foreign exchange recorded as at December 31, 2024 were:


	Year ended December 31,
	2024	2023	Change
Brazilian Real (USD:BRL)	6.19	4.84	1.35
Chilean Peso (USD:CLP)	992	877	115
Euro (USD:€)	0.96	0.91	0.05
Swedish Kronor (USD:SEK)	11.00	9.98	1.02
Argentine Peso (USD:ARS)	1,033	808	225


	Three months ended
	December 31, 2024	September 30, 2024	June 30, 2024	March 31, 2024
Brazilian Real (USD:BRL)	6.19	5.45	5.56	5.00
Chilean Peso (USD:CLP)	992	896	951	982
Euro (USD:€)	0.96	0.89	0.93	0.93
Swedish Kronor (USD:SEK)	11.00	10.10	10.65	10.69
Argentine Peso (USD:ARS)	1,033	971	912	857

The average exchange rates for each year and quarter were:


	Year ended December 31,
	2024	2023	Change
Brazilian Real (USD:BRL)	5.39	5.00	0.39
Chilean Peso (USD:CLP)	944	840	104
Euro (USD:€)	0.92	0.92	—
Swedish Kronor (USD:SEK)	10.57	10.60	(0.04)
Argentine Peso (USD:ARS)	916	296	620


	Three months ended
	December 31, 2024	September 30, 2024	June 30, 2024	March 31, 2024
Brazilian Real (USD:BRL)	5.84	5.55	5.22	4.95
Chilean Peso (USD:CLP)	963	931	935	946
Euro (USD:€)	0.94	0.91	0.93	0.92
Swedish Kronor (USD:SEK)	10.78	10.42	10.68	10.39
Argentine Peso (USD:ARS)	1,002	943	887	835

Impairment

Impairment of $254.2 million was recognized in earnings from continuing operations in the fourth quarter of 2024. This

included $104.9 million ($82.8 million net of tax) relating to the Eagle mine due to a decline in nickel prices and prolonged

rehabilitation of the Eagle East ramp, $93.4 million ($61.7 million net of tax) related to the Suruca gold deposit near

Chapada following the removal of reserves and $55.9 million ($41.6 million net of tax) due to the continued closure of the

Alcaparrosa mine within the Candelaria mining complex.

Mine Suspension Costs

Mine suspension costs of $36.1 million in 2024 represent overhead costs incurred at the Eagle mine due to a partial

suspension of underground mining operations since May 2024.

Discontinued Operations

Following the Company's announcement of a definitive agreement to sell its interest in the Neves-Corvo and Zinkgruvan

mines, results from these operations are reported as discontinued operations. Net loss from discontinued operations was

$214.7 million in 2024 and include a non-cash impairment of $291.2 million ($270.3 million net of tax) to align the carrying

value of Neves-Corvo with expected cash consideration for this asset. The reduction in carrying value for Neves-Corvo is

expected to result in a gain on sale for the disposal group as a whole, upon closing of the transaction.

Income Taxes


Income tax (expense)/ recovery	Year ended December 31,
($ thousands, continuing operations)	2024	2023	Change
Candelaria	(237,879)	(135,078)	(102,801)
Caserones1	4,314	(19,265)	23,579
Chapada	(59,059)	1,888	(60,947)
Eagle	28,839	(2,899)	31,738
Josemaria	50,086	(51,266)	101,352
Other	(16,274)	(7,746)	(8,528)
	(229,973)	(214,366)	(15,607)
1 Caserones 2023 results are from July 13, 2023.


Income taxes by classification	Year ended December 31,
($ thousands, continuing operations)	2024	2023	Change
Current income tax (expense)/recovery	(294,938)	(141,432)	(153,506)
Deferred income tax (expense)/ recovery	64,965	(72,934)	137,899
	(229,973)	(214,366)	(15,607)

Current income tax expense in the year was higher than in the prior year comparable period primarily due to higher taxable

earnings and the introduction of the mining royalty tax for Candelaria effective January 1, 2024.

Compared to the prior year, the deferred income tax expense has reversed to a deferred income tax recovery due to the

reversal of deferred tax liability in Josemaria as a result of tax inflation adjustments in Argentina and the decrease in

deferred tax liability at Eagle due to asset impairment. This reduction in net deferred tax liability was partially offset by the

effect of foreign exchange revaluation of non-monetary assets at Chapada due to the overall weakening of the BRL against

the USD for the year.

Fourth Quarter Financial Results

Gross Profit

Gross profit from continuing operations for the quarter was $250.6 million, an increase from $177.8 million in the prior year

comparable quarter. The increase was primarily attributable to higher realized gold, nickel and molybdenum prices,

favorable foreign exchange due to the weakening of the CLP and BRL against the USD, lower depreciation, and lower

treatment and refining charges. In addition, there was a reversal of a previous non-cash inventory write-down at Chapada

on the long-term ore stockpile in the amount of $28.3 million.These increases were partially offset by negative provisional

pricing adjustments for the current and prior periods of $31.7 million and $46.1 million, respectively, and reduced revenue

from Caserones due to two shipments of copper concentrate scheduled for December 2024 that were delayed to early

January due to certain operational and weather related issues. Gross profit from discontinued operations for the quarter

was $29.8 million (2023 - $11.2 million).

Net Earnings

Net loss from continuing operations for the quarter was $159.6 million, compared to net earnings of $40.4 million in the

prior year comparable period, and was impacted by the impairments of Eagle, Suruca and Alcaparrosa, which were partially

offset by a deferred tax recovery of $41.5 million at Caserones following a re-assessment of the estimated future utilization

of accumulated tax losses, and $28.3 million of reversal of a non-cash inventory write-down at Chapada on the long-term

stockpile. Net loss from discontinued operations for the quarter was $244.8 million, compared to net earnings of $26.3

million in the prior year comparable period, and was impacted by the impairment of Neves-Corvo.

Cash Flow from Operations

Cash provided by operating activities for the quarter was $547.3 million, compared to the prior year comparable quarter of

$249.9 million. The increase was largely due to positive working capital inflows including collection of trade receivables at

Candelaria and $45.0 million in payments received for the delayed shipments from Caserones.

Fourth Quarter Reconciliation of Realized Prices - Continuing Operations


	Three months ended December 31, 2024
($ thousands)	Copper	Gold	Nickel	Molybdenum	Other	Total
Revenue from contracts with customers1	800,179	114,791	16,577	41,018	16,666	989,231
Provisional pricing adjustments on current period concentrate sales	(32,830)	(1,641)	(270)	—	3,061	(31,679)
Provisional pricing adjustments on prior period concentrate sales	(49,663)	(1,050)	1,519	(1,439)	4,564	(46,069)
	717,686	112,101	17,826	39,579	24,291	911,483
Recognition of deferred revenue						18,349
Copper stream cash effect						(2,555)
Gold stream cash effect						(40,113)
Less: Treatment and refining charges						(28,289)
Total Net Sales						858,875

Payable Metal	86,879 t	42 koz	1,088 t	944 t

Current Period Sales2	$4.01	$2,668	$6.80	$19.71
Provisional pricing adjustments on prior period concentrate sales	(0.26)	(25)	0.63	(0.69)
Realized prices 3,4	$3.75 /lb	$2,643 /oz	$7.43 /lb	$19.02 /lb

	Three months ended December 31, 2023
	Copper	Gold	Nickel	Molybdenum	Other	Total
Revenue from contracts with customers1	759,788	84,851	54,672	33,929	32,850	966,091
Provisional pricing adjustments on current period concentrate sales	5,848	469	(622)	6,169	5,151	17,014
Provisional pricing adjustments on prior period concentrate sales	(3,088)	3,014	(6,964)	(11,273)	(15,760)	(34,071)
	762,548	88,334	47,086	28,825	22,241	949,034
Recognition of deferred revenue						13,771
Copper stream cash effect						(4,987)
Gold stream cash effect						(23,464)
Less: Treatment & refining charges						(40,953)
Total Revenue						893,401

Payable Metal	90,713 t	41 koz	3,105 t	978 t

Current period sales2	$3.83	$2,074	$7.90	$18.60
Provisional pricing adjustments on prior period concentrate sales	(0.02)	74	(1.02)	(5.23)
Realized prices3,4	$3.81 /lb	$2,148 /oz	$6.88 /lb	$13.37 /lb
1. Revenue from contracts with customers before recognition of deferred revenue, gold and copper stream cash effects and treatment and refining charges, each of which is presented separately in the table.
2. Includes revenue from contracts with customers and provisional pricing adjustments on current period concentrate sales.
3. This is a non-GAAP measure - see Section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
4. The realized price for copper inclusive of the impact of streaming agreements for 2024 is $3.74/lb (2023: $3.79/lb). The realized price for gold inclusive of the impact of streaming agreements for 2024 is $1,697/oz (2023: $1,577/oz).

1 Caserones 2023 results are from July 13, 2023.

Mining Operations

Production Overview


	2024					2023
	YTD	Q4	Q3	Q2	Q1	Total	Q4	Q3	Q2	Q1
Copper (t)
Candelaria (100%)	162,487	48,772	50,018	31,170	32,527	152,012	41,618	34,275	36,952	39,167
Caserones (100%) 1	124,761	31,737	29,033	29,775	34,216	65,210	35,389	29,821	—	—
Chapada	43,261	12,323	11,694	9,106	10,138	45,719	12,872	12,286	10,697	9,864
Eagle	6,366	1,262	1,027	1,563	2,514	13,600	3,334	3,245	3,881	3,140
Continuing Operations	336,875	94,094	91,772	71,614	79,395	276,541	93,213	79,627	51,530	52,171
Neves-Corvo	28,228	7,139	6,698	7,347	7,044	33,823	9,623	9,016	7,610	7,574
Zinkgruvan	3,964	258	1,385	747	1,574	4,434	501	1,299	917	1,717
Total	369,067	101,491	99,855	79,708	88,013	314,798	103,337	89,942	60,057	61,462
Zinc (t)
Neves-Corvo	109,571	27,879	29,509	25,696	26,487	108,812	31,035	25,807	24,177	27,793
Zinkgruvan	82,133	24,067	17,101	21,764	19,201	76,349	19,684	23,967	11,938	20,760
Total	191,704	51,946	46,610	47,460	45,688	185,161	50,719	49,774	36,115	48,553
Gold (koz)
Candelaria (100%)	93	28	29	17	19	90	25	20	21	24
Chapada	65	18	18	15	14	59	19	15	13	12
Total	158	46	47	32	33	149	44	35	34	36
Nickel (t)
Eagle	7,486	1,617	893	1,721	3,255	16,429	3,729	4,290	4,686	3,724
Molybdenum (t)
Caserones (100%)1	3,183	912	693	714	864	2,024	928	1,096	—	—
Lead (t)
Neves-Corvo	6,395	1,553	1,851	1,387	1,604	5,600	2,030	1,447	951	1,172
Zinkgruvan	30,888	9,481	5,693	8,966	6,748	26,284	6,418	8,643	3,816	7,407
Total	37,283	11,034	7,544	10,353	8,352	31,884	8,448	10,090	4,767	8,579
Silver (koz)
Candelaria (100%)	1,985	598	605	367	415	1,487	468	306	366	347
Chapada	245	69	63	55	58	258	73	67	62	56
Eagle	35	7	3	17	8	64	17	19	11	17
Continuing Operations	2,265	674	671	439	481	1,809	558	392	439	420
Neves-Corvo	1,876	494	425	433	524	1,902	573	486	407	436
Zinkgruvan	2,513	637	537	699	640	2,300	509	785	374	632
Total	6,654	1,805	1,633	1,571	1,645	6,011	1,640	1,663	1,220	1,488

Production Cost and Cash Cost Overview ($ thousand, $/lb)


	Three months ended December 31,		Year ended December 31,
($ thousands)	2024	2023	2024	2023
Candelaria
Production costs	$200,970	$178,088	$726,685	$726,493
Gross cost	1.93	2.24	2.19	2.46
By-product1	(0.40)	(0.46)	(0.46)	(0.39)
Cash Cost (Cu, $/lb)2	1.53	1.78	1.73	2.07
AISC (Cu, $/lb)2	2.12	2.76	2.62	3.34

Caserones3
Production costs	$200,229	$215,855	$776,192	$404,837
Gross cost	3.30	2.73	3.08	2.59
By-product1	(0.79)	(0.40)	(0.57)	(0.60)
Cash Cost (Cu, $/lb)2	2.51	2.33	2.51	1.99
AISC (Cu, $/lb)2	3.58	3.48	3.48	3.03

Chapada
Production costs	$64,352	$89,716	$282,633	$317,317
Gross cost	2.82	3.25	3.27	3.42
By-product1	(1.75)	(1.37)	(1.69)	(1.15)
Cash Cost (Cu, $/lb)2	1.07	1.88	1.58	2.27
AISC (Cu, $/lb)2	2.81	2.75	3.07	3.24

Eagle
Production cost	$21,131	$48,023	$111,919	$191,704
Gross cost	8.46	6.19	8.37	5.83
By-product1	(3.24)	(3.82)	(4.17)	(3.67)
Cash Cost (Ni, $/lb)2	5.22	2.37	4.20	2.16
AISC (Ni, $/lb)2	9.53	4.60	7.60	4.22

Neves-Corvo
Production costs	$73,154	$82,734	$323,163	$326,677
Gross cost	6.75	4.43	5.81	4.93
By-product1	(4.91)	(2.47)	(3.62)	(2.56)
Cash Cost (Cu, $/lb)2	1.84	1.96	2.19	2.37
AISC (Cu, $/lb)2	3.37	3.50	3.92	3.96

Zinkgruvan
Production costs	$29,146	$31,520	$122,064	$115,394
Gross cost	0.89	1.11	1.02	1.06
By-product1	(0.46)	(0.48)	(0.61)	(0.63)
Cash Cost (Zn, $/lb)2	0.43	0.63	0.41	0.43
AISC (Zn, $/lb)2	0.99	0.93	0.87	0.83
1 By-product is after related treatment and refining charges.
2 Cash Cost per pound sold and All-in Sustaining Cost per pound sold ("AISC") are non-GAAP measures, see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.
3 Caserones 2023 results are from July 13, 2023.

Capital Expenditures1


		Year ended December 31,
		2024				2023
	($ thousands)	Sustaining	Expansionary	Capitalized Interest	Total	Sustaining	Expansionary	Capitalized Interest	Total
	Candelaria	275,720	—	—	275,720	380,112	—	—	380,112
	Caserones2	143,965	—	—	143,965	83,880	—	—	83,880
	Chapada	107,843	—	—	107,843	72,291	—	—	72,291
	Eagle	21,222	—	—	21,222	22,201	—	—	22,201
	Josemaria	—	243,566	14,641	258,207	—	275,913	9,980	285,893
	Other	350	—	—	350	12,761	—	—	12,761
	Continuing Operations	549,100	243,566	14,641	807,307	571,245	275,913	9,980	857,138
	Neves-Corvo	89,302	—	—	89,302	102,621	—	—	102,621
	Zinkgruvan	65,658	—	—	65,658	53,358	—	—	53,358
	Total	704,060	243,566	14,641	962,267	727,224	275,913	9,980	1,013,117
1 Capital expenditures are reported on a cash basis, as presented in the consolidated statement of cash flows. Sustaining capital expenditures is a supplementary financial measure and expansionary capital expenditures is a non-GAAP measure – see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.
2 Caserones 2023 results are from July 13, 2023.

Candelaria (Chile)

The Candelaria operations consist of an open pit and underground mines providing copper ore to two on-site processing

plants located near Copiapó in the Atacama region of Chile, as well as a port facility and desalination plant located

approximately 100km from the mine facilities in the town of Caldera. The Company holds an indirect 80% ownership interest

in Candelaria with the remaining 20% interest indirectly held by Sumitomo Metal Mining Co., Ltd and Sumitomo

Corporation. The plants have a combined processing capacity of 28 million tonnes per annum (“mtpa”), producing copper in

concentrate. The primary metal is copper, with gold and silver as by-product metals.

Operating Statistics


		2024					2023
	(100% Basis)	Total	Q4	Q3	Q2	Q1	Total	Q4	Q3	Q2	Q1

	Ore mined (kt)	36,728	12,673	10,784	8,155	5,116	25,939	7,793	5,350	6,194	6,602
	Ore milled (kt)	29,186	7,600	7,183	7,094	7,309	28,903	7,609	7,168	6,924	7,202
	Grade
	Copper (%)	0.61	0.69	0.76	0.49	0.48	0.58	0.60	0.52	0.59	0.59
	Gold (g/t)	0.15	0.17	0.18	0.12	0.11	0.14	0.15	0.12	0.14	0.15
	Recovery
	Copper (%)	91.8	93.1	92.1	89.5	91.9	91.3	90.3	91.0	91.1	92.6
	Gold (%)	67.7	68.2	69.9	62.1	69.8	69.5	68.6	70.6	68.8	70.3
	Production (contained metal)
	Copper (t)	162,487	48,772	50,018	31,170	32,527	152,012	41,618	34,275	36,952	39,167
	Gold (koz)	93	28	29	17	19	90	25	20	21	24
	Silver (koz)	1,985	598	605	367	415	1,487	468	306	366	347
	Sales volume (payable metal)
	Copper (t)	158,017	49,052	45,430	29,999	33,536	144,473	38,888	33,668	36,347	35,570
	Gold (koz)	89	27	26	17	19	87	23	19	23	22
	Revenue ($000s)	1,618,936	449,115	473,049	366,363	330,409	1,329,599	359,023	299,745	290,426	380,405
	Production costs ($000s)	726,685	200,970	189,106	175,359	161,250	726,493	178,088	175,468	184,958	187,979
	Gross profit ($000s)	579,193	163,238	205,276	114,946	95,733	330,729	106,997	53,909	35,772	134,051
	Cash cost ($ per pound copper)1	1.73	1.53	1.55	2.18	1.89	2.07	1.78	2.19	2.14	2.21
	AISC ($ per pound copper)1	2.62	2.12	2.23	3.22	3.34	3.34	2.76	3.43	3.76	3.44
1All-in Sustaining Cost per pound sold ("AISC") and Cash cost per pound sold are non-GAAP measures, see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.

Production

During the quarter, ore mined increased due to mine sequencing and opportunities to obtain ore from Phase 12, in addition

to higher grade ore from Phase 11. The increase in mine movement and throughput helped to offset a decline in grade from

Phase 11 toward the end of the quarter. In 2025, the majority of production will continue to be sourced from Phase 11 with

a planned reduction in average copper grades from those realized in 2024.

Copper and gold production in the year and quarter was higher than in the prior year comparable periods primarily due to

planned higher grade ore from Phase 11. Annual copper production in 2024 increased from 2023 but was slightly below the

most recently disclosed production guidance range as a result of Phase 11 ore grade declining sooner than anticipated at

the end of the quarter. During the year, Candelaria produced 98,970 tonnes of copper in the second-half of the year which

is one of its best performances over a six month period in the history of the mine. Annual gold production was within the

recently disclosed production guidance range.

Production Costs and Cash Cost

Production costs in the quarter were higher than in the prior year quarter due to higher copper sales volumes and a write-

down of inventory items used in repair and maintenance of mineral property, plant, and equipment amounting to $14

million. These increases were partially offset by favourable foreign exchange due to a weakening of the CLP against the

USD. Production costs in the year are consistent with the prior year comparable period.

Cash cost per pound in the quarter and year were lower than in the prior year comparable periods. This was due to higher

grades which resulted in higher sales volumes, combined with favourable foreign exchange due to a weakening of the CLP

against the USD, particularly in the fourth quarter. These movements were partially offset by the write- downs of inventory

items totalling $14 million and $25 million in the quarter and year, respectively. Cash cost per pound in the year also

benefitted from favourable by-product credits.

All-in sustaining cost per pound ("AISC") in the quarter and year were lower than in the prior year comparable periods

primarily due to lower cash cost per pound, combined with lower sustaining capital expenditure. Sustaining capital

expenditures were lower in the quarter and the year due to reduced deferred stripping and higher spending on the Los

Diques tailings storage facility in the prior year. Annual cash cost per pound for the year was within the most recently-

disclosed guidance range.

In the year, approximately 60,000 oz of gold and 1,225,000 oz of silver were subject to terms of a streaming agreement

from which approximately $429/oz of gold and $4.28/oz of silver were received. This represents approximately 68% of

Candelaria's total gold and silver production.

Gross Profit and Net Earnings

Gross profit in the year increased from the prior year comparable period primarily due to higher realized copper and gold

prices, higher sales volumes, and favourable foreign exchange. Gross profit in the quarter was higher than in the prior year

comparable period primarily due to higher sales volumes and favourable foreign exchange.

Net earnings in the quarter and year were impacted by a non-cash impairment of $55.9 million ($41.6 million net of tax)

due to the closure of the Alcaparrosa mine within the Candelaria complex. Mining operations at Alcaparrosa have been

suspended since the incident occurred in 2022 and Mineral Reserve estimates for the Alcaparrosa mine have been removed

from the Company's reserve statement and have not been included in any future production estimates.

Caserones (Chile)

Caserones is an open pit copper-molybdenum mine which produces high-quality copper concentrate, copper cathode and

molybdenum concentrate. Lundin Mining is the operator after acquiring a 51% interest in Minera Lumina Copper Chile on

July 13, 2023, with JX Metals Corporation holding the remaining 49% interest. In July 2024, Lundin Mining increased its

ownership to 70%, with JX Metals Corporation holding the remaining 30% interest. In 2024, the copper concentrator treated

on average 4,130 tonnes per hour.The solvent extraction-electrowinning plant has a nominal capacity of 34.5 kilotonnes per

annum ("ktpa").

Operating Statistics


		2024					2023
	(100% Basis)	Total	Q4	Q3	Q2	Q1	Total2	Q4	Q32

	Ore mined (kt)	30,820	8,557	7,616	7,840	6,807	15,583	7,484	8,099
	Ore milled (kt)	32,141	8,759	8,136	7,556	7,690	15,424	8,262	7,162
	Ore placed on leach	10,230	3,563	1,885	2,868	1,914	5,541	3,234	2,307
	Grade
	Copper (%)	0.40	0.36	0.38	0.42	0.44	0.42	0.41	0.44
	Molybdenum (%)	0.015	0.015	0.016	0.015	0.016	0.020	0.019	0.022
	Recovery
	Copper (%)	78.6	81.9	76.7	75.9	79.7	86.1	88.2	83.9
	Molybdenum (%)	64.1	68.9	53.3	64.4	70.0	72.4	73.9	70.9
	Production (contained metal)
	Copper in concentrate (t)	100,837	25,717	23,708	24,246	27,166	55,191	29,496	25,695
	Copper cathode (t)	23,924	6,020	5,325	5,529	7,050	10,019	5,893	4,126
	Total copper (t)	124,761	31,737	29,033	29,775	34,216	65,210	35,389	29,821
	Molybdenum (t)	3,183	912	693	714	864	2,024	928	1,096
	Sales volume (payable metal)
	Copper (t)	113,867	26,750	22,044	29,862	35,211	66,075	35,690	30,385
	Molybdenum (t)	3,056	944	581	695	836	2,019	978	1,041
	Revenue ($000s)	1,153,625	262,971	227,896	336,547	326,211	601,775	317,219	284,556
	Production costs ($000s)	776,192	200,229	169,411	208,897	197,655	404,837	215,855	188,982
	Gross profit ($000s)	193,379	24,234	19,169	73,149	76,827	88,449	31,182	57,267
	Cash cost ($ per pound copper)1	2.51	2.51	2.96	2.60	2.14	1.99	2.33	1.60
	AISC ($ per pound copper)1	3.48	3.58	3.95	3.58	3.02	3.03	3.48	2.49
1 All-in Sustaining Cost per pound sold ("AISC") and Cash cost per pound sold are non-GAAP measures, see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.
2 Caserones 2023 results are from July 13, 2023.

Production

In the quarter, Caserones delivered copper and molybdenum production in line with the preceding quarters, driven by

increased mine movement, mill throughput and improved recoveries, which helped offset lower ore grades. A shift in the

mine sequencing during the third quarter, prompted by hydrogeologic conditions in Phase 5, resulted in a greater ore

contribution from the lower-grade Phase 6 area in the fourth quarter. Meanwhile, copper cathode production benefited

from an improved irrigation pattern on the dump leach pad, enhancing leaching efficiency.

Copper grades are expected to increase in the second half of 2025 as ore from Phase 6 and 7 is delivered. Grades in 2025

are expected to be similar to 2024.

Annual copper and molybdenum production were at the top-end of the most recently disclosed production guidance

ranges. Copper and molybdenum production in the quarter was lower than in the prior year comparable period primarily

due to lower grades and recoveries, offset by higher throughput. Production was also negatively impacted by the labour

action in August which lasted 14 days and reduced throughput during this period to approximately 50% capacity.

Production Costs and Cash Cost

Production costs in the quarter were lower than in the prior year comparable period due to lower sales volumes and

favourable foreign exchange as a result of a weaker Chilean peso. Production costs in the quarter were also impacted by

higher maintenance, contractors, and labour. During the year, there had been a build-up of concentrate inventory,

approximately 20,000 tonnes of copper concentrate was held in inventory at December 31, 2024, which has been

subsequently sold in the first quarter of 2025. Cash cost per pound in the quarter was higher due to lower production and

sales volumes partially offset by higher by-product credits. Lower grades in the quarter impacted production resulting in

higher cash cost per pound. Cash cost per pound in the year was higher than in the prior year comparable period due to

higher mine and mill costs as a result of maintenance, contractors and labour. Annual cash cost per pound for the year was

within the most recently disclosed guidance range. AISC per pound in the quarter and year were higher than in prior periods

primarily due to higher cash costs.

Gross Profit and Net Earnings

Gross profit in the quarter was lower than in the prior year comparable period due to lower sales volumes combined with

higher maintenance, contractor and salaries costs, which was partially offset primarily by lower depreciation and favourable

foreign exchange. Gross profit was impacted by a timing difference between the production and shipment date of

approximately 20,000 tonnes of copper concentrate. Two shipments of copper concentrate from Caserones scheduled for

December 2024 were delayed to early January due to certain operational and weather related issues. The related revenue is

expected to be recorded in the first quarter of 2025.

Net earnings during the quarter were impacted by a deferred tax recovery of $41.5 million (Q4 2023 - $4.1 million) and

associated with the recognition of deferred tax assets to utilize accumulated tax losses.

Chapada (Brazil)

The Chapada mine consists of four open pit mines and on-site processing facilities located in the northern Goiás State of

Brazil, approximately 270 km northwest of the national capital of Brasilia. The processing plant has a capacity of 24.0 mtpa,

producing high-quality gold-rich copper concentrate. The primary metal is copper, with gold and silver as by-product metals.

Operating Statistics


		2024					2023
	(100% Basis)	Total	Q4	Q3	Q2	Q1	Total	Q4	Q3	Q2	Q1

	Ore mined (kt)	21,949	5,084	5,889	5,851	5,125	29,508	7,803	8,062	7,522	6,121
	Ore milled (kt)	22,883	5,945	6,035	5,407	5,496	22,233	5,218	5,832	5,207	5,976
	Grade
	Copper (%)	0.25	0.28	0.25	0.23	0.23	0.26	0.29	0.26	0.26	0.23
	Gold (g/t)	0.17	0.18	0.18	0.18	0.14	0.15	0.18	0.15	0.14	0.13
	Recovery
	Copper (%)	77.3	76.2	78.1	74.2	81.1	80.2	85.9	80.8	80.3	73.3
	Gold (%)	52.2	53.4	51.5	49.3	55.3	55.0	61.1	55.3	54.1	48.0
	Production (contained metal)
	Copper (t)	43,261	12,323	11,694	9,106	10,138	45,719	12,872	12,286	10,697	9,864
	Gold (koz)	65	18	18	15	14	59	19	15	13	12
	Silver (koz)	245	69	63	55	58	258	73	67	62	56
	Sales volume (payable metal)
	Copper (t)	39,615	10,200	12,380	8,293	8,742	43,761	13,080	11,445	10,164	9,072
	Gold (koz)	58	15	19	12	12	53	18	13	11	11
	Revenue ($000s)	497,576	121,206	159,966	117,969	98,435	461,175	143,439	111,897	94,721	111,118
	Production costs ($000s)	282,633	64,352	84,450	69,246	64,585	317,317	89,716	78,854	80,113	68,634
	Gross profit (loss) ($000s)	165,045	67,262	48,658	30,355	18,770	80,378	30,126	20,230	(381)	30,403
	Cash cost ($ per pound copper)1	1.58	1.07	1.37	2.05	2.01	2.27	1.88	2.28	2.69	2.37
	AISC ($ per pound copper)1	3.07	2.81	2.34	3.72	3.79	3.24	2.75	3.15	3.80	3.42
1All-in Sustaining Cost per pound sold ("AISC") and Cash cost per pound sold are non-GAAP measures, see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.

Production

Chapada's operations performed well during the quarter with higher grade material from fresh ore from the South, North,

and Central pits. This led to a reduced volume of older low-grade stockpile material being processed during the quarter

compared to other quarters this year.

Annual copper and gold production was within the most recently disclosed production guidance ranges. Copper production

in the quarter and year was slightly lower than in the prior year comparable periods primarily due to lower grades and

recoveries, partially offset by higher throughput. Reduced grades and recoveries are a result of processing ore from the

older low-grade stockpile and North pit as part of an optimized mine plan that significantly reduces waste movement, and

emphasizes higher throughput. Gold production in the quarter was slightly lower than in the prior year comparable period

due to lower recoveries, partially offset by higher throughput. Gold production for the year was higher than in the prior

year comparable period due to higher grades and throughput, partially offset by lower recoveries. Higher gold grades were

generated from fresh ore from the South and Central pits replacing planned feed from the older low-grade stockpile in

order to prioritize gold production in light of the recent elevated gold price environment.

Production Costs and Cash Cost

Production costs in the quarter and year were lower than in the prior year comparable periods primarily as a result of lower

sales volumes and favourable foreign exchange, combined with lower mining costs.

Cash cost per pound in the quarter and year improved significantly from the prior year comparable periods primarily due to

higher by-product credits as a result of increased realized prices for gold as well as favourable foreign exchange. This

decrease was combined with lower mining costs as a result of a planned reduction in waste movement, and other cost

reduction initiatives as a result of the Chapada Full Potential program, which started in 2022 and focuses on various site

optimization activities. Annual copper cash cost was within the most recently disclosed guidance ranges. AISC per pound in

the quarter was higher than in the prior year comparable period primarily due to higher sustaining capital expenditure

driven by higher deferred stripping and water management expenditures. AISC per pound in the year was lower than in the

prior year comparable period due to lower cash cost per pound, partially offset by higher sustaining capital expenditure.

Gross Profit and Net Earnings

Gross profit in the quarter and year was higher than in the prior year comparable periods primarily due to higher realized

gold prices and favourable foreign exchange. Additionally, gross profit in the quarter and year benefited from a $28.3

million non-cash partial reversal of a previous long-term ore stockpile inventory write-down, as a result of higher market

expectations for long-term copper and gold prices. Gross profit in the year was also positively impacted by higher realized

copper prices.

Net earnings in the quarter and year were impacted by a non-cash impairment of mineral properties relating to the Suruca

gold deposit in the amount of $93.4 million ($61.7 million, net of tax).

Eagle (USA)

The Eagle mine consists of the Eagle underground mine, located approximately 53 km northwest of Marquette, Michigan,

U.S.A. and the Humboldt mill, located 61 km west of Marquette. The plant has a processing capacity of 0.7 mtpa, producing

nickel and copper in concentrates. The primary metal is nickel with copper, and minor amounts of cobalt, gold, and

platinum-group metals as by-product metals.

Operating Statistics


		2024					2023
	(100% Basis)	Total	Q4	Q3	Q2	Q1	Total	Q4	Q3	Q2	Q1

	Ore mined (kt)	480	117	91	107	165	725	188	192	189	156
	Ore milled (kt)	487	121	90	97	179	718	186	190	181	161
	Grade
	Nickel (%)	1.9	1.7	1.4	2.1	2.1	2.6	2.3	2.6	2.9	2.6
	Copper (%)	1.4	1.1	1.2	1.7	1.5	2.0	1.9	1.8	2.2	2.0
	Recovery
	Nickel (%)	82.0	78.7	72.3	85.0	85.2	87.4	86.1	86.2	88.8	88.5
	Copper (%)	95.1	94.1	94.3	95.9	95.3	96.8	96.5	96.4	97.0	97.2
	Production (contained metal)
	Nickel (t)	7,486	1,617	893	1,721	3,255	16,429	3,729	4,290	4,686	3,724
	Copper (t)	6,366	1,262	1,027	1,563	2,514	13,600	3,334	3,245	3,881	3,140
	Sales volume (payable metal)
	Nickel (t)	5,662	1,088	393	2,018	2,163	13,339	3,105	3,640	3,859	2,735
	Copper (t)	5,457	877	733	1,789	2,058	11,968	3,055	3,177	2,951	2,785
	Revenue ($000s)	152,467	25,583	12,217	57,444	57,223	350,895	73,720	102,505	105,250	69,420
	Production costs ($000s)	111,919	21,131	12,595	37,657	40,536	191,704	48,023	52,497	45,735	45,449
	Gross profit (loss) ($000s)	6,979	(3,804)	(6,547)	9,794	7,536	107,141	11,794	35,682	46,845	12,820
	Cash cost ($ per pound nickel)1	4.20	5.22	7.24	3.23	4.04	2.16	2.37	2.07	1.88	2.43
	AISC ($ per pound nickel)1	7.60	9.53	20.02	5.71	6.12	4.22	4.60	4.05	3.34	5.16
1All-in Sustaining Cost per pound sold ("AISC") and Cash cost per pound sold are non-GAAP measures, see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.

Production

In May 2024, a fall of ground in the lower ramp limited access to Eagle East and subsequently reduced mining rates while

ramp rehabilitation was completed. During the quarter, higher throughput began and normal throughput rates are

expected to resume in Q1 2025. Delivery of ore from Eagle East commenced during the quarter which led to improved

grades and recoveries. Due to the rehabilitation of the lower ramp, the extraction of the majority of ore from Eagle East was

deferred into 2025 and future years.

Nickel and copper production in the quarter and year was lower than in the prior year comparable periods due to lower

throughput and grades. Monitoring of the crown pillar continues at Eagle. Early indications of localized minor movement

were recorded, as the pillar settled on the cement rock filled headings in the upper levels of the Eagle deposit. As a

precautionary measure, the Company has increased the frequency of readings and the total number of monitoring devices,

and reduced the extraction rate from this area of the mine. Annual nickel and copper production were within the most

recently disclosed production guidance ranges.

Production Costs and Cash Cost

Production costs in the quarter and year were lower than in the prior year comparable periods primarily due to lower

production and sales volumes leading to reduced spend in milling, transportation and lower royalty expense. Production

costs in the quarter and year excluded approximately $11.4 million and $36.1 million, respectively, of overhead costs that

have been recorded as Other Income and Expense as a result of the partial suspension of underground mining operations.

Cash cost per pound in the quarter and the year was higher than in the prior year comparable periods due to the

prioritization of ramp rehabilitation which resulted in lower sales volumes. Cash cost per pound in the year was also

partially offset by higher by-product credits as a result of higher realized copper prices. AISC per pound in the quarter and

year was higher than in the prior year comparable periods primarily due to higher cash cost per pound. Cash cost per pound

for the year exceeded the high end of the most recently disclosed guidance range as mining rates did not recover as quickly

as expected during the quarter for all metals including by-products.

Gross Profit and Net Earnings

Gross profit in the quarter and year-to date periods was lower than in the prior year comparable periods primarily due to

lower sales volumes.

Net earnings were impacted in the quarter and the year as a result of a non-cash impairment loss recorded in December

2024. Impairment indicators including a decline in nickel prices and prolonged rehabilitation of the Eagle East ramp were

identified for the Eagle mine. As the recoverable amount determined for the cash generating unit ("CGU") was lower than

the carrying value, a non-cash impairment loss of $104.9 million ($82.8 million net of tax) was recognized.

Neves-Corvo (Portugal)

Neves-Corvo is located 200 km southeast of Lisbon, Portugal, in the western part of the Iberian Pyrite Belt and consists of an

underground mine and on-site processing facilities. The copper plant has a processing capacity of up to 2.8 mtpa, producing

copper in concentrate, and the zinc plant has an expanded capacity of 2.5 mtpa producing zinc and lead concentrates. The

primary metal is copper, with zinc, lead and silver as by-product metals. In December 2024, the Company announced the

sale of Neves-Corvo with the transaction expected to close in mid-2025.

Operating Statistics (Discontinued Operation)


		2024					2023
	(100% Basis) D	Total	Q4	Q3	Q2	Q1	Total	Q4	Q3	Q2	Q1

	Ore mined, copper (kt)	2,412	643	579	602	588	2,591	677	689	622	603
	Ore mined, zinc (kt)	2,127	539	571	499	518	1,989	549	459	470	511
	Ore milled, copper (kt)	2,426	643	583	601	599	2,588	682	674	628	604
	Ore milled, zinc (kt)	2,127	568	540	507	512	1,989	573	441	465	510
	Grade
	Copper (%)	1.5	1.4	1.5	1.6	1.5	1.7	1.9	1.8	1.6	1.6
	Zinc (%)	6.5	6.3	7.0	6.3	6.5	6.8	6.6	7.4	6.6	6.7
	Lead (%)	1.2	1.1	1.4	1.3	1.2	1.5	1.4	1.5	1.5	1.5
	Recovery
	Copper (%)	76.9	78.3	74.9	77.2	77.3	76.5	75.6	76.1	77.0	77.7
	Zinc (%)	77.3	76.0	76.9	78.2	78.4	78.0	79.9	76.1	76.8	78.7
	Lead (%)	24.6	25.4	24.8	21.7	26.5	19.2	25.2	21.3	14.0	15.7
	Production (contained metal)
	Copper (t)	28,228	7,139	6,698	7,347	7,044	33,823	9,623	9,016	7,610	7,574
	Zinc (t)	109,571	27,879	29,509	25,696	26,487	108,812	31,035	25,807	24,177	27,793
	Lead (t)	6,395	1,553	1,851	1,387	1,604	5,600	2,030	1,447	951	1,172
	Silver (koz)	1,876	494	425	433	524	1,902	573	486	407	436
	Sales volume (payable metal)
	Copper (t)	26,721	5,230	7,707	7,898	5,886	32,054	9,054	8,799	6,170	8,031
	Zinc (t)	88,731	21,357	25,730	20,440	21,204	91,115	25,491	21,957	20,125	23,542
	Lead (t)	5,700	1,323	1,811	1,242	1,324	4,970	1,830	1,220	881	1,039
	Revenue ($000s)	438,053	97,511	131,237	128,675	80,630	425,042	115,823	111,202	68,614	129,403
	Production costs ($000s)	323,163	73,154	95,168	83,129	71,712	326,677	82,734	82,137	76,080	85,726
	Gross (loss) profit ($000s)	(3,434)	(2,524)	1,344	15,874	(18,128)	(23,234)	642	(2,288)	(35,185)	13,597
	Cash cost ($ per pound copper)1	2.19	1.84	2.13	1.70	3.24	2.37	1.96	2.27	3.99	1.69
	AISC ($ per pound copper)1	3.92	3.37	3.84	3.46	5.13	3.96	3.50	3.82	5.73	3.29
1All-in Sustaining Cost per pound sold ("AISC") and Cash cost per pound sold are non-GAAP measures, see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.

Production

Copper production in the quarter and year was lower than in the prior year comparable periods primarily due to lower

grades and throughput. Annual copper production was within the most recently disclosed production guidance range. Zinc

production in the quarter was lower than in the prior year comparable period mainly due to lower grades and recoveries.

Zinc production for the year was an annual record for the operation primarily due to record throughput as a result of the

zinc expansion project, although slightly below the most recently disclosed annual production guidance range.

Production Costs and Cash Cost

Production costs in the quarter and year were lower than in the prior year comparable periods primarily due to decreases in

zinc and copper sales volumes partially offset by higher electricity and labour costs.

Cash cost per pound in the quarter was higher than in the prior year comparable period primarily due to lower sales

volume. Cash cost per pound in the year improved from the prior year comparable period primarily due to higher by-

product credits driven mainly by higher realized zinc prices. Annual copper cash cost per pound slightly exceeded the most

recently disclosed 2024 cash cost guidance range, primarily driven by lower sales volume. AISC per pound in the quarter and

year was in line with AISC from the prior year comparable periods.

Gross (Loss) Profit and Net Earnings

In the quarter, the gross loss was $2.5 million, compared to a gross profit of $0.6 million from the prior year comparable

period. This decrease was mainly due to lower copper and zinc sales volume and higher unit production costs primarily

driven by higher electricity and labour costs. Gross loss in the year was lower than the gross loss in the prior year

comparable period, primarily driven by higher realized copper and zinc prices.

Net earnings in the year and quarter were impacted by a pre-tax non-cash impairment charge of $291.2 million (after-tax

$270.3 million) that was recorded in December 2024 relating to the Neves-Corvo reporting segment to recognize goodwill,

mining rights and mineral properties at their estimated fair value, based on the expected sales price as established by the

definitive agreement. The pre-tax impairment charge includes $90.7 million allocated to the Neves-Corvo goodwill. These

charges are recorded in net earnings (loss) from discontinued operations

Zinkgruvan (Sweden)

The Zinkgruvan mine consists of an underground mine and on-site processing facilities, located approximately 200 km

southwest of Stockholm, Sweden. The plant has processing capacity of 1.6 mtpa. Products are zinc, lead and copper

concentrates. The primary metal is zinc, with lead, silver and copper as by-products. In December 2024, the Company

announced the sale of Zinkgruvan with the transaction expected to close in mid-2025.

Operating Statistics (Discontinued Operation)


		2024					2023
	(100% Basis)	Total	Q4	Q3	Q2	Q1	Total	Q4	Q3	Q2	Q1

	Ore mined, zinc (kt)	1,246	332	300	308	306	1,178	313	287	268	310
	Ore mined, copper (kt)	184	8	84	45	47	207	36	65	51	55
	Ore milled, zinc (kt)	1,239	311	302	313	313	1,179	327	326	211	315
	Ore milled, copper (kt)	207	14	76	42	75	198	28	58	34	78
	Grade
	Zinc (%)	7.3	8.4	6.3	7.7	6.7	7.3	6.7	8.2	6.6	7.4
	Lead (%)	3.1	3.7	2.4	3.7	2.7	2.9	2.5	3.5	2.4	2.9
	Copper (%)	2.2	2.0	2.1	2.0	2.4	2.5	2.0	2.5	3.1	2.4
	Recovery
	Zinc (%)	90.9	91.8	89.8	90.6	91.1	89.0	89.8	90.0	86.3	88.7
	Lead (%)	80.0	83.0	78.5	78.2	79.4	77.8	77.1	75.7	76.2	82.1
	Copper (%)	88.1	86.7	87.3	88.0	89.0	88.5	86.3	88.7	86.1	90.5
	Production (contained metal)
	Zinc (t)	82,133	24,067	17,101	21,764	19,201	76,349	19,684	23,967	11,938	20,760
	Lead (t)	30,888	9,481	5,693	8,966	6,748	26,284	6,418	8,643	3,816	7,407
	Copper (t)	3,964	258	1,385	747	1,574	4,434	501	1,299	917	1,717
	Silver (koz)	2,513	637	537	699	640	2,300	509	785	374	632
	Sales volume (payable metal)
	Zinc (t)	68,086	18,627	15,124	18,510	15,825	65,344	17,316	22,042	9,374	16,612
	Lead (t)	28,036	7,786	6,346	9,069	4,835	25,527	5,714	9,391	4,944	5,478
	Copper (t)	3,809	457	1,775	821	756	4,473	845	1,758	1,001	869
	Revenue ($000s)	256,748	67,455	68,633	76,587	44,073	223,591	50,783	82,290	29,520	60,998
	Production costs ($000s)	122,064	29,146	30,109	32,734	30,075	115,394	31,520	37,183	17,786	28,905
	Gross profit ($000s)	97,664	32,359	24,250	35,040	6,015	74,073	10,519	32,727	6,821	24,006
	Cash cost ($ per pound)1	0.41	0.43	0.16	0.39	0.65	0.43	0.63	0.28	0.24	0.54
	AISC ($ per pound)1	0.87	0.99	0.66	0.74	1.10	0.83	0.93	0.56	1.06	0.97
1All-in Sustaining Cost per pound sold ("AISC") and Cash cost per pound sold are non-GAAP measures, see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.

Production

Zinc and lead production for the quarter was higher than in the prior year comparable period due to higher grades and

recoveries. Zinc and lead production for the year was higher than in the prior year comparable period due to higher

throughput, grades and recoveries. Zinc production of 82,133 tonnes was an annual record for the operation. Annual zinc

production was within the most recently disclosed production guidance ranges. Throughput in 2023 was affected by the

installation of a zinc sequential flotation system, which limited mill availability. Copper production for the quarter was lower

than in the prior quarter comparable period due to lower throughput. Copper production for the year was lower than in the

prior year comparable period and slightly below the most recently disclosed annual production guidance range primarily

due to lower than planned grades.

Production Costs and Cash Cost

Production costs in the quarter were lower than in the prior year comparable period primarily due to lower labour and

contractor costs, partially offset by higher zinc and lead sales volumes. Production costs in the year were higher than in the

prior year comparable period primarily due to higher zinc and lead sales volumes.

Cash cost per pound for the quarter and year was lower than in the prior year comparable periods primarily due to higher

zinc sales volumes and lower treatment and refining charges. Annual cash cost was within the most recently disclosed

guidance range. AISC per pound in the quarter and year was higher than in the prior year comparable periods due to higher

sustaining capital expenditure.

Gross Profit

Gross profit for the quarter was higher than in the prior year comparable period primarily due to higher realized zinc prices,

lower treatment and refining charges and lower production costs. Gross profit for the year was higher than in the prior year

comparable period primarily due to higher realized zinc and copper prices, lower treatment and refining charges and higher

zinc and lead sales volume. These increases were partially offset by higher depreciation and operating costs.

Vicuña Projects (Argentina and Chile)

Project Development

During the quarter, the focus was on preparing for the completion of the Filo acquisition and formation of the 50/50 Joint

Arrangement with BHP announced on July 29, 2024. The work plan associated with the transaction with BHP progressed as

expected. Subsequent to year-end on January 15, 2025, the Company completed the Filo acquisition and the Joint

Arrangement with BHP, resulting in the Company indirectly holding a 50% interest in Vicuña, which owns the Filo del Sol

project and Josemaria project. BHP indirectly owns the remaining 50% interest in Vicuña.

As part of the Joint Arrangement, the 2024 work scope was changed to include incorporation of new studies and

preparation of a resource model relating to the Filo del Sol project, a joint development concept pertaining to the Josemaria

and Filo del Sol ore bodies as well as processing facilities and infrastructure. An action plan was developed for the combined

project, including a 2025 budget that included advancement of studies associated with the synergies between the Filo del

Sol and Josemaria projects, continuation of the drilling program and advancing the Josemaria project.

Josemaria activities were focused on continuing the Environmental Impact Assessment ("EIA") update and maintaining

progress on the water program. The field activities continued with the water program, geotechnical studies, road

maintenance, wetlands biodiversity offset and exploration drilling at Cumbre Verde.

Environmental and permitting work continued on several fronts. Work progressed on preparation of the Josemaria EIA

update which is forecast to be complete in Q1 2025. The incoming 500kV powerline and substation EIA was approved in

November, and the Northern Access Road EIA was approved in December. The ongoing technical review of the revised

tailings dam design is expected to be approved in early 2025.

Government relations activities continued with both the national and provincial governments. In conjunction, discussions

on provincial agreements continued to be advanced. A plan for preparation and submission of the Basis Law - Incentive

Regime for Large Investments ("RIGI") application was advanced.

Community relations programs continued in the fourth quarter with key developments being: a 2023 sustainability report, a

Google-certified IT job training program for youth in the community, initiation of the first-ever seed-capital program for

developing local suppliers, an internet connectivity project connecting community households was inaugurated, and a

women entrepreneurship program was completed.

During the year, the Company spent $243.6 million in capital expenditure compared to $275.9 million in 2023. Spending

exceeded the annual guidance of $230.0 million due to better progress being achieved on the advancement of various

Josemaria project initiatives in connection with the transaction with BHP.

Exploration Update

During the quarter, exploration activity focused on in-mine and near-mine targets at the Company's operations. Exploration

drilling at Candelaria was focused on Candelaria South, La Portuguesa and La Espanola.

At Caserones, exploration drilling was completed in the lower portion of the mineral resource in search of higher-grade

copper breccia bodies that could improve the average grade of the resource and potentially expand it. The drilling program

at Angelica, in search of copper sulphides, was also completed during the quarter.

Drilling at Chapada concentrated on adding high grade resources to Sauva and testing near-mine geochemical anomalies.

At Josemaria, the drilling campaign restarted at Cumbre Verde.

Drilling continued at Eagle during the quarter with one surface hole targeting a geophysical anomaly east of Eagle East. At

Neves-Corvo, the 2024 drilling program focused on extending inferred resources at Lombador North and near-mine drilling

at Neves Southwest concluded at the end of the quarter. Drilling at Zinkgruvan was focused on resource expansion.

All 2024 drilling campaigns were successfully completed by the end of the quarter.

Liquidity and Capital Resources

Consolidated Cash Flow


	Year ended December 31,
($ thousands, continuing operations unless otherwise noted)	2024	2023	Change
Cash provided by operating activities related to continuing operations	1,300,848	827,244	473,604
Cash provided by operating activities related to discontinued operations	218,009	189,368	28,641
Cash used in investing activities related to continuing operations	(855,369)	(1,518,812)	663,443
Cash used in investing activities related to discontinued operations	(151,537)	(155,722)	4,185
Cash (used in) provided by financing activities related to continuing operations	(349,774)	711,910	(1,061,684)
Cash provided by financing activities related to discontinued operations	5,547	16,676	(11,129)
Effect of foreign exchange on cash balances	(4,238)	6,742	(10,980)
Increase in cash and cash equivalents	163,486	77,406	86,080
Opening cash and cash equivalents	268,793	191,387	77,406
Less: Cash and cash equivalents included in assets held for sale	(74,801)	—	(74,801)
Closing cash and cash equivalents	357,478	268,793	88,685
Adjusted operating cash flow1 — continuing operations	1,079,968	847,276	232,692
Adjusted operating cash flow1 — discontinued operations	222,624	176,941	45,683
Free cash flow from operations1 — continuing operations	797,100	300,009	497,091
Free cash flow from operations1 — discontinued operations	75,892	45,071	30,821
Free cash flow1 — continuing operations	508,182	(19,914)	528,096
Free cash flow1 — discontinued operations	63,049	33,389	29,660
1This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.

Cash provided by operating activities related to continuing operations during the year was $473.6 million higher than in the

prior year primarily due to higher sales volumes combined with favourable realized copper and gold prices, including the

impacts of upward provisional pricing adjustments on prior year concentrate sales on an annual basis. The inclusion of full

year operating cash flows at Caserones also contributed to increased cash flow from operating activities year over year.

Additional cash was provided from $220.9 million of positive working capital changes primarily due to net collections of

trade receivables at Caserones, timing of tax payments at Candelaria, and $45.0 million in payments received by Caserones

relating to two shipments of copper concentrate scheduled for December 2024 that were delayed to early January due to

certain operational and weather related issues.

Cash used in investing activities related to continuing operations during the year was $663.4 million lower than in the prior

year primarily due to the acquisition of Caserones and a $49.8 million reduction in capital expenditures. Cash used in

investing activities related to continuing operations during the year also included a $41.7 million subscription for Filo shares

to provide interim financing to Filo.

Cash used in financing activities related to continuing operations during the year included net borrowings of $567.1 million,

part of which was used to finance the exercise of the option to acquire an additional 19% interest in Caserones for $350.0

million. The Company additionally paid $202.5 million dividends to shareholders in the year, paid $152.0 million in

distributions to partners holding minority interests in Candelaria and Caserones, and repurchased $24.4 million of its

common shares through an automatic share purchase plan, pursuant to its Normal Course Issuer Bid (“NCIB”).

Free cash flow from operations - continuing during the year was higher than in the prior year comparable period primarily

as a result of incremental cash flows from a full year of Caserones operations and favourable realized copper and gold

prices as discussed above. Free cash flow from operations - discontinued during the year was higher than the prior year

comparable period due to higher realized zinc prices combined with lower cash costs.

Free cash flow - continuing operations was higher than in the prior year comparable period as a result of the same factors

discussed above for Free cash flow from operations - continuing, in addition to lower spending on the Vicuña Projects

during the year.

Liquidity and Financial Position


($ thousands, continuing operations except for 2023 or otherwise noted)	December 31, 2024	December 31, 2023	Change
Cash and cash equivalents	357,478	268,793	88,685
Total assets	10,406,712	10,861,199	(454,487)
Debt1	1,756,972	1,208,600	548,372
Lease liabilities2	249,185	277,208	(28,023)
Net debt3	(1,597,800)	(1,223,389)	(374,411)
Net debt excluding lease liabilities3	(1,332,349)	(946,181)	(386,168)
1Debt includes both current and non-current portions related to continuing operations.
2 Lease liabilities includes both current and non-current portions.
3This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion. This includes discontinued operations.

The Company continues to expect to be able to fund all its contractual commitments with its operating cash flow, cash on

hand and available capital resources.

Net debt excluding lease liabilities3 at December 31, 2024 increased from December 31, 2023 primarily due to net proceeds

from debt, partially offset by increased cash balances.

During the quarter and year, 2,815,200 shares were purchased under the Company's NCIB (quarter and year ended

December 31, 2023 - nil shares).

Commodity prices, primarily copper, zinc, gold and nickel are key performance drivers and fluctuations in the prices of these

commodities can have a dramatic effect on the results of operations. Prices can fluctuate widely and are affected by

numerous factors beyond the Company’s control. The prices of metals are influenced by supply and demand, exchange

rates, interest rates and interest rate expectations, inflation or deflation and expectations with respect to inflation or

deflation, speculative activities, changes in global economies, and geopolitical, social and other factors. The supply of

metals consists of a combination of new mine production, recycling and existing stocks held by governments, producers and

consumers. The Company economically hedges certain of its operating currencies as well as metal prices and certain input

commodities (refer to "Financial Instruments" section below).

Contractual Obligations, Commitments and Contingencies

The Company has contractual obligations and capital commitments as described in Note 27 “Commitments and

Contingencies” in the Company’s Consolidated Financial Statements. From time to time, the Company may also be involved

in legal proceedings that arise in the ordinary course of its business.

The Company has the following contractual obligations and capital commitments as at December 31, 2024:


	Payments due by period1
($ thousands)	<1 year	1-5 years	Thereafter	Total
Continuing operations
Reclamation and closure provisions	20,876	87,930	587,017	695,823
Long-term debt and lease liabilities	409,811	1,571,993	130,866	2,112,670
Capital commitments	127,729	176,399	—	304,128
Defined pension obligations	—	—	3,546	3,546
Deferred consideration	10,000	130,000	—	140,000
	568,416	1,966,322	721,429	3,256,167
Discontinued operations
Reclamation and closure provisions	910	19,303	108,868	129,081
Long-term debt and lease liabilities	3,466	12,316	2,976	18,758
Capital commitments	29,821	—	—	29,821
Defined pension obligations	537	2,053	781	3,372
	34,734	33,672	112,625	181,032
Total	603,150	1,999,994	834,054	3,437,199
1Reported on an undiscounted basis, before inflation.

Capital Resources

As at December 31, 2024, the Company has a RCF of $1,750.0 million with $270.0 million outstanding (December 31, 2023 -

$250.0 million). The RCF bears interest on drawn funds at rates of Term Secured Overnight Financing Rate (“Term SOFR”)

plus Credit Spread Adjustment (“CSA”) of 0.10% plus an applicable margin of 1.45% to 2.50%, depending on the Company’s

net leverage ratio. The RCF is unsecured, save and except for a charge over certain assets in the United States of America,

and is subject to customary covenants. On April 26, 2024, the facility, which originally expired in April 2028, was amended

and extended to April 2029.

As at December 31, 2024, the Company's Term Loan has a principal amount of $1,150.0 million which includes the exercise

of $350.0 million of the accordion option in the year. The Team Loan bears interest at an annual rate equal to Term SOFR +

CSA + an applicable margin of 1.60% to 2.65%, depending on the Company’s net leverage ratio. Principal is payable at

maturity. On April 26, 2024, the Term Loan, originally maturing in July 2026, was extended to July 2027.

On May 23, 2024, both the RCF and the Term Loan were amended to establish sustainability performance targets whereby

the interest rate margin in the facilities will be adjusted based on the Company's performance relative to the targets.

As at December 31, 2024, the Company is in compliance with its debt covenants.

As at December 31, 2024, certain subsidiaries of the Company had outstanding unsecured term loans totalling $245.9

million (December 31, 2023 - $48.9 million) and accruing interest at rates ranging from 5.07% to 6.32% per annum with

interest payable upon maturity. The maturity dates range from January to May 2025.

The development of the Vicuña Projects requires significant capital commitments from the Company, and additional

funding, beyond debt, may be required to advance the projects to completion.

Financial Instruments

Revenue, cost of goods sold and capital expenditures are affected by certain external factors including fluctuations in metal

prices and changes in exchange rates between the CLP, BRL, ARS and the $.

During the year ended December 31, 2024, the Company continued to enter into derivative contracts as part of its risk

management strategy to mitigate exposure to foreign currency and commodities. At December 31, 2024, derivative

contracts consist of foreign currency forward and option contracts, and diesel and gold option contracts. The option

contracts consist of put and call contracts in a collar structure and all contracts have maturities ranging through 2025 and

2026.

The derivative contracts have not been designated as hedges for purposes of hedge accounting and are measured at fair

value as assessed by pricing models based on active market prices. Changes in fair value are recognized in other income and

expense in the consolidated statement of earnings.

The Company’s trade receivables also contain provisional pricing sales arrangements that are valued using quoted forward

market prices. The following table illustrates the sensitivity of the Company’s risk on final settlement of its provisionally

priced revenues as at December 31, 2024.


Metal	Payable Metal	Provisional price on December 31, 2024	Change	Effect on Revenue ($millions)
Copper	78,322 t	$3.96/lb	+/- 10 %	+/- $68.4
Gold	35 koz	$2,638/oz	+/- 10 %	+/- $9.2
Nickel	709 t	$6.87/lb	+/- 10 %	+/- $1.1
Molybdenum	1,089 t	$21.07/lb	+/- 10 %	+/- $5.1

For a detailed discussion of the Company’s financial instruments refer to Note 26 ‘Financial Instruments’ in the Company’s

Consolidated Financial Statements.

Foreign Currency Denominated Production Costs

For the year ended December 31, 2024, Candelaria and Caserones production costs are approximately 55% and 50% CLP

denominated respectively and Chapada production costs are approximately 80% BRL denominated. Production costs for

Eagle, Neves-Corvo and Zinkgruvan are substantially denominated in their functional currencies.

Non-GAAP and Other Performance Measures

The Company uses certain performance measures in its analysis and disclosure. These performance measures have no

standardized meaning within generally accepted accounting principles under IFRS and, therefore, amounts presented may

not be comparable to similar data presented by other mining companies. This data is intended to provide additional

information and should not be considered in isolation or as a substitute for measures of performance prepared in

accordance with IFRS. The following are non-GAAP measures that the Company uses as key performance indicators.


Non-GAAP financial measure or ratio	Definition	Most directly comparable IFRS measure	Why management uses the measure and why it may be useful to investors
Cash cost	Includes costs directly attributable to mining operations (including mining, processing and administration), treatment, refining and transportation charges, but excludes royalty expenses, expenses associated with non- cash fair value adjustments to inventory, depreciation and amortization and capital expenditures for deferred stripping. Revenue from sales of by-products, inclusive of adjustments for the terms of streaming agreements but excluding the recognition of any deferred revenue from the allocation of upfront streaming proceeds, reduce cash cost.	Production costs from continuing operations and Production costs from discontinued operations	Copper, zinc and nickel cash cost per pound sold are useful measures to assess the operating performance of the Company's mines and their ability to generate cash. The inclusion of by-product credits incorporates the benefit of other metals extracted in the production of the primary metal.
Cash cost per pound sold	This ratio is calculated by dividing cash cost by the sales volume of the primary metal (copper, zinc, or nickel).
All-in sustaining cost ("AISC")	Includes cash cost (as defined above), royalties, sustaining capital expenditure (including deferred stripping and underground mine development), reclamation and other closure cost accretion and amortization and lease payments (cash basis). As this measure seeks to reflect the full cost of production from current operations, expansionary capital and certain exploration costs are excluded as these are costs typically incurred to extend mine life or materially increase the productive capacity of existing assets, or for new operations. Corporate general and administrative expenses have also been excluded as any attribution of these costs to an operating site would not necessarily be reflective of costs directly attributable to the administration of the site. Certain other cash expenditures, including tax payments, financing charges (including capitalized interest) and costs related to business combinations, asset acquisitions and asset disposals are also excluded.	Production costs from continuing operations and Production costs from discontinued operations	Copper, zinc and nickel AISC and AISC per pound sold are useful measures to understand the full cost of producing and selling metal at the Company's mines, and each mine's ability to generate cash while sustaining production at current levels.
AlSC per pound sold	This ratio is calculated by dividing AISC by the sales volume of the primary metal (copper, zinc, or nickel).
Sustaining capital expenditures	This supplementary financial measure is defined as cash- basis expenditures which maintain existing operations and sustain production levels.	Investment in mineral properties, plant and equipment	Sustaining capital expenditures provide an understanding of costs required to maintain existing production levels. Expansionary capital expenditures provide information on costs required for future growth of existing or new assets.
Expansionary capital expenditures	This non-GAAP measure is defined as cash-basis expenditures which increase current or future production capacity, cash flow or earnings potential and are reported excluding capitalized interest. Where an expenditure both maintains and expands current operations, classification would be based on the primary decision for which the expenditure is being made.	Investment in mineral properties, plant and equipment


Non-GAAP financial measure or ratio	Definition	Most directly comparable IFRS measure	Why management uses the measure and why it is useful to investors
Realized price per pound and realized price per ounce 1	Defined as revenue from metal sales (copper, gold, nickel and molybdenum) adding back treatment and refining charges, cash effects of gold and copper streams, recognition of deferred revenue from the allocation of upfront streaming proceeds and sales of silver and other metals, divided by the volume of metal sold in the period.	Revenue from continuing operations	These measures provide an understanding of the price realized in each reporting period for metal sales.
Earnings before interest, taxes, depreciation and amortization (EBITDA) and Adjusted EBITDA	EBITDA represents net earnings or loss for the period before income tax expense or recovery, depreciation and amortization, and finance costs, net. Adjusted EBITDA removes the effects of items that do not reflect the Company's underlying operating performance and are not necessarily indicative of future operating results. These may include: unrealized foreign exchange, unrealized gains or losses from derivative contracts, revaluation gains or losses on marketable securities, derivative liabilities and purchase options, expenses for acquisition-related fair value adjustments to inventory, non-cash impairment charges and reversals, non-cash stockpile inventory or fixed asset write-downs or reversals, goodwill impairment, costs relating to the sinkhole near Ojos del Salado operations, costs relating to the suspension of underground operations at Eagle, gains or losses on disposals of subsidiaries, income from investments in associates, insurance proceeds and litigation and settlements.	Net earnings (loss) from continuing operations and from discontinued operations	EBITDA and Adjusted EBITDA are used to evaluate the Company's operational performance and its ability to generate cash from core operations.
Adjusted earnings (loss)	Defined as net earnings or loss attributable to shareholders of the Company excluding the effects (net of tax) of significant items that do not reflect the Company's underlying operating performance. In addition to the items listed for Adjusted EBITDA, these may also include: deferred tax recovery or expense arising from foreign exchange translation and deferred tax recovery or expense arising from changes in tax rates. Adjustments exclude amounts attributable to non-controlling interests.	Net earnings (loss) attributable to Lundin Mining Corporation shareholders and Net earnings (loss) from continuing operations attributable to Lundin Mining Corporation shareholders	In addition to conventional measures prepared in accordance with IFRS, adjusted earnings and adjusted earnings per share measure the underlying operating performance of the Company.
Adjusted earnings (loss) per share	This ratio is calculated by dividing adjusted net earnings or loss by the weighted average number of shares outstanding.
Free cash flow from operations	Defined as cash flow provided by operating activities, excluding general exploration and business development costs and deducting sustaining capital expenditures (as defined above).	Cash provided by operating activities related to continuing operations and Cash provided by operating activities related to discontinued operations	Free cash flow from operations is indicative of the Company's ability to generate cash from its operations after consideration of required sustaining capital expenditure necessary to maintain existing production levels. Free cash flow further considers expansionary capital expenditure.
Free cash flow	Defined as cash flow provided by operating activities, deducting sustaining capital expenditures and expansionary capital expenditures (both as defined above).


Adjusted operating cash flow	Defined as cash provided by operating activities, excluding changes in non-cash working capital items.	Cash provided by operating activities related to continuing operations and Cash provided by operating activities related to discontinued operations	These measures are indicative of the Company's ability to generate cash from its operations and remove the impact of working capital, which can experience volatility from period-to-period.
Adjusted operating cash flow per share	This ratio is calculated by dividing adjusted operating cash flow by the weighted average number of shares outstanding.
Net debt	Net debt is defined as total debt and lease liabilities excluding deferred financing fees, less cash and cash equivalents. Net debt excluding lease liabilities is defined as total debt excluding lease liabilities, deferred financing fees, less cash and cash equivalents.	Debt and lease liabilities, current portion of debt and lease liabilities, cash and cash equivalents. Additionally, the above items as included in assets held for sale, and liabilities held for sale	These measures are indicative of the Company's financial position.
Net debt excluding lease liabilities

1See the 'Revenue Overview' section of this MD&A for reconciliations to revenue, the most directly comparable IFRS measure.

Cash Cost per Pound and All-in Sustaining Cost (“AISC”) per Pound

Cash Cost per Pound and All-in Sustaining Costs per pound can be reconciled toProduction Costsas follows:


Three months ended December 31, 2024
Operations	Candelaria	Caserones	Chapada	Eagle	Total - continuing operations	Neves- Corvo	Zinkgruvan	Total - discontinued operations
($000s, unless otherwise noted)	(Cu)	(Cu)	(Cu)	(Ni)	Total - continuing operations	(Cu)	(Zn)	Total - discontinued operations
Sales volumes:
Tonnes	49,052	26,750	10,200	1,088		5,230	18,627
Pounds (000s)	108,141	58,973	22,487	2,399		11,531	41,066

Production costs					486,877			102,300
Less: Royalties and other					(27,839)			(20)
					459,038			102,280
Deduct: By-product credits					(137,021)			(75,716)
Add: Treatment and refining charges					27,483			12,128
Cash cost	165,039	147,826	24,107	12,528	349,500	21,230	17,462	38,692
Cash cost per pound ($/lb)	1.53	2.51	1.07	5.22		1.84	0.43

Add: Sustaining capital expenditure	55,526	42,988	32,916	5,224		12,680	22,470
Royalties	4,692	7,663	2,689	696		793	—
Reclamation and other closure accretion and depreciation	2,129	(4,457)	2,373	1,734		1,184	747
Leases and other	1,449	17,229	1,080	2,691		2,917	74
All-in sustaining cost	228,835	211,249	63,165	22,873		38,804	40,753
AISC per pound ($/lb)	2.12	3.58	2.81	9.53		3.37	0.99

Three months ended December 31, 2023
Operations	Candelaria	Caserones	Chapada	Eagle	Total - continuing operations	Neves- Corvo	Zinkgruvan	Total - discontinued operations
($000s, unless otherwise noted)	(Cu)	(Cu)	(Cu)	(Ni)	Total - continuing operations	(Cu)	(Zn)	Total - discontinued operations
Sales volumes:
Tonnes	38,888	35,690	13,080	3,105		9,054	17,316
Pounds (000s)	85,733	78,683	28,836	6,845		19,961	38,176

Production costs					533,783			114,254
Less: Royalties and other					(22,221)			(2,299)
Inventory fair value adjustment					(7,760)			—
					503,802			111,955
Deduct: By-product credits					(136,641)			(67,523)
Add: Treatment and refining charges					39,139			18,799
Cash cost	152,276	183,687	54,108	16,229	406,300	39,218	24,013	63,231
Cash cost per pound ($/lb)	1.78	2.33	1.88	2.37		1.96	0.63

Add: Sustaining capital expenditure	79,316	55,031	19,858	6,548		28,070	10,546
Royalties	—	8,270	2,174	5,003		1,081	—
Reclamation and other closure accretion and depreciation	2,158	1,427	2,047	2,620		1,305	933
Leases and other	2,901	25,715	1,131	1,101		106	103
All-in sustaining cost	236,651	274,130	79,318	31,501		69,780	35,595
AISC per pound ($/lb)	2.76	3.48	2.75	4.60		3.50	0.93


	Twelve months ended December 31, 2024
	Operations	Candelaria	Caserones1	Chapada	Eagle	Total - continuing operations	Neves- Corvo	Zinkgruvan	Total - discontinued operations
	($000s, unless otherwise noted)	(Cu)	(Cu)	(Cu)	(Ni)	Total - continuing operations	(Cu)	(Zn)	Total - discontinued operations
	Sales volumes:
	Tonnes	158,017	113,867	39,615	5,662		26,721	68,086
	Pounds (000s)	348,367	251,033	87,336	12,483		58,910	150,104

	Production costs					1,898,627			445,227
	Less: Royalties and other					(84,501)			(4,785)
						1,814,126			440,442
	Deduct: By-product credits					(504,431)			(305,479)
	Add: Treatment and refining charges					113,565			55,407
	Cash cost	603,533	629,582	137,714	52,431	1,423,260	129,128	61,242	190,370
	Cash cost per pound ($/lb)	1.73	2.51	1.58	4.20		2.19	0.41

	Add: Sustaining capital expenditure	275,720	143,965	107,843	21,222		89,302	65,658
	Royalties	15,730	32,106	8,580	7,442		3,961	—
	Reclamation and other closure accretion and depreciation	8,570	(1,262)	10,153	6,767		5,220	4,033
	Leases and other	9,133	69,002	3,576	6,949		3,322	309
	All-in sustaining cost	912,686	873,393	267,866	94,811		230,933	131,242
	AISC per pound ($/lb)	2.62	3.48	3.07	7.60		3.92	0.87

	Twelve months ended December 31, 2023
	Operations	Candelaria	Caserones1	Chapada	Eagle	Total - continuing operations	Neves- Corvo	Zinkgruvan	Total - discontinued operations
	($000s, unless otherwise noted)	(Cu)	(Cu)	(Cu)	(Ni)	Total - continuing operations	(Cu)	(Zn)	Total - discontinued operations
	Sales volumes:
	Tonnes	144,473	66,075	43,761	13,339		32,054	65,344
	Pounds (000s)	318,508	145,670	96,476	29,407		70,667	144,059

	Production costs					1,644,037			442,071
	Less: Royalties and other					(60,916)			(5,321)
	Inventory fair value adjustment					(39,945)			—
						1,543,176			436,750
	Deduct: By-product credits					(428,208)			(271,707)
	Add: Treatment and refining charges					118,480			64,848
	Cash cost	660,160	290,553	219,278	63,457	1,233,448	167,424	62,467	229,891
	Cash cost per pound ($/lb)	2.07	1.99	2.27	2.16		2.37	0.43

	Add: Sustaining capital expenditure	380,112	83,880	72,291	22,201		102,621	53,358
	Royalties	—	15,820	8,568	22,994		3,949	—
	Reclamation and other closure accretion and depreciation	9,258	2,560	7,836	11,331		5,387	3,744
	Leases and other2	13,325	47,944	4,999	4,100		553	427
	All-in sustaining cost	1,062,855	440,757	312,972	124,083		279,934	119,996
	AISC per pound ($/lb)	3.34	3.03	3.24	4.22		3.96	0.83
1 Caserones 2023 results are from July 13, 2023.

Adjusted EBITDA

Adjusted EBITDA can be reconciled to Net Earnings (Loss) as follows:


	Three months ended December 31,		Year ended December 31,
($thousands)	2024	2023	2024	2023	2022
Net earnings (loss) — continuing operations	(159,618)	40,444	153,354	276,850	316,772
Add back:
Depreciation, depletion and amortization	148,033	181,865	607,744	497,873	416,204
Finance costs, net	38,282	32,023	141,455	91,429	51,317
Income taxes expense	34,767	101,858	229,973	214,366	104,113
EBITDA — continuing operations	61,464	356,190	1,132,526	1,080,518	888,406
Unrealized foreign exchange loss (gain)	(10,808)	2,693	(10,994)	1,804	16,491
Unrealized losses (gains) on derivative contracts	85,986	(2,592)	85,168	8,464	(62,971)
Ojos del Salado sinkhole expenses (recoveries)	(10,042)	1,687	(9,492)	16,922	63,271
Revaluation loss (gain) on marketable securities	(911)	(1,393)	(7,383)	(1,846)	(5,201)
Caserones inventory fair value adjustment	—	7,760	—	39,945	—
Partial suspension of underground operations at Eagle	11,436	—	36,073	—	—
Revaluation of Caserones purchase option	—	2,556	(11,728)	2,556	—
Write-down of assets	4,160	—	22,129	—	5,783
Goodwill and asset impairment	254,218	—	254,218	—	4,280
Inventory write-down (reversal)	(26,626)	—	(26,626)	—	62,546
Gain on disposal of subsidiary	—	—	—	(5,718)	(16,828)
Other	(637)	732	(2,085)	2,958	(2,133)
Total adjustments — EBITDA	306,776	11,443	329,280	65,085	65,238
Adjusted EBITDA — continuing operations	368,240	367,633	1,461,806	1,145,603	953,644
Including discontinued operations:
Net earnings (loss) — discontinued operations	(244,816)	26,309	(214,671)	38,399	146,761
Add back:
Depreciation, depletion and amortization	32,831	41,191	155,344	155,723	138,546
Finance costs, net	1,813	2,868	9,793	11,270	12,868
Income taxes expense	(22,173)	758	(13,711)	2,233	30,515
EBITDA — discontinued operations	(232,345)	71,126	(63,245)	207,625	328,690
Unrealized foreign exchange loss (gain)	(960)	76	(200)	(580)	4,673
Unrealized losses (gains) on derivative contracts	(466)	(16,717)	18,597	13,468	—
Goodwill and asset Impairment	291,178	—	291,178	—	(19)
Other	(22)	(2,388)	(1,114)	(2,568)	5,518
Total adjustments — EBITDA discontinued operations	289,730	(19,029)	308,461	10,320	10,172
Adjusted EBITDA — discontinued operations	57,385	52,097	245,216	217,945	338,862
Adjusted EBITDA (all operations)	425,625	419,730	1,707,022	1,363,548	1,292,506

Adjusted Earnings and Adjusted EPS

Adjusted Earnings and Adjusted EPS can be reconciled to Net Earnings (Loss) Attributable to Lundin Mining Shareholders as

follows:


	Three months ended December 31,		Year ended December 31,
($thousands, except share and per share amounts)	2024	2023	2024	2023	2022
Net (loss) earnings attributable to Lundin Mining shareholders — continuing operations	(195,343)	12,488	11,144	203,163	277,198
Add back:
Total adjustments - EBITDA	306,776	11,443	329,280	65,085	65,238
Tax effect on adjustments	(57,600)	(2,987)	(59,519)	(26,925)	2,882
Deferred tax expense due to change in tax rate	—	14,500	—	40,200	—
Deferred tax arising from foreign exchange translation	45,065	41,168	12,712	28,841	(20,733)
Non-controlling interest on adjustments	(4,077)	(4,221)	(1,912)	(22,886)	2,026
Total adjustments	290,164	59,903	280,560	84,315	49,413
Adjusted earnings — continuing operations	94,821	72,391	291,704	287,478	326,611
Including discontinued operations:
Net earnings attributable to Lundin Mining shareholders - discontinued operations1	(244,816)	26,309	(214,671)	38,399	149,652
Add back:
Total adjustments - EBITDA - discontinued operations	289,730	(19,029)	308,461	10,320	10,172
Tax effect on adjustments	(20,544)	—	(26,547)	—	(3,679)
Total adjustments	269,186	(19,029)	281,914	10,320	6,493
Adjusted earnings — discontinued operations	24,370	7,280	67,243	48,719	156,145
Adjusted earnings (all operations)	119,191	79,671	358,947	336,197	482,756

Basic weighted average number of shares outstanding	776,720,828	773,476,216	774,825,230	772,532,260	762,518,753

Net (loss) earnings attributable to Lundin Mining shareholders - continuing operations	(0.25)	0.02	0.01	0.26	0.36
Total adjustments	0.37	0.08	0.36	0.11	0.06
Adjusted EPS — continuing operations	0.12	0.09	0.38	0.37	0.43

Net (loss) earnings attributable to Lundin Mining shareholders - discontinued operations	(0.32)	0.03	(0.28)	0.05	0.20
Total adjustments	0.35	(0.03)	0.36	0.01	0.01
Adjusted EPS — discontinued operations	0.03	0.01	0.09	0.06	0.20

Net (loss) earnings attributable to Lundin Mining shareholders	(0.57)	0.05	(0.26)	0.31	0.56
Total adjustments	0.72	0.05	0.73	0.13	0.07
Adjusted EPS (all operations)	0.15	0.10	0.46	0.44	0.63
1 Represents Net (loss) earnings attributable to Lundin Mining Corporation shareholders less Net earnings from continuing operations attributable to Lundin Mining Corporation shareholders.

Free Cash Flow from Operations and Free Cash Flow

Free Cash Flow from Operations and Free Cash Flow can be reconciled to Cash provided by Operating Activities on the

Company's Consolidated Statement of Cash Flows as follows:


	Three months ended December 31,		Year ended December 31,
($thousands)	2024	2023	2024	2023	2022
Cash provided by operating activities related to continuing operations	547,267	249,875	1,300,848	827,244	615,986
Sustaining capital expenditures	(136,674)	(165,211)	(549,100)	(571,245)	(520,465)
General exploration and business development	12,974	11,062	45,352	44,010	135,213
Free cash flow from operations — continuing operations	423,567	95,726	797,100	300,009	230,734
General exploration and business development	(12,974)	(11,062)	(45,352)	(44,010)	(135,213)
Expansionary capital expenditures	(50,607)	(41,082)	(243,566)	(275,913)	(171,094)
Free cash flow — continuing operations	359,986	43,582	508,182	(19,914)	(75,573)
Cash provided by operating activities related to discontinued operations	73,014	56,206	218,009	189,368	260,903
Sustaining capital expenditures	(35,150)	(38,616)	(154,960)	(155,979)	(119,366)
General exploration and business development	4,614	3,438	12,843	11,682	9,140
Free cash flow from operations — discontinued operations	42,478	21,028	75,892	45,071	150,677
General exploration and business development	(4,614)	(3,438)	(12,843)	(11,682)	(9,140)
Expansionary capital expenditures	—	—	—	—	(31,899)
Free cash flow — discontinued operations	37,864	17,590	63,049	33,389	109,638
Free cash flow from operations (all operations)	466,045	116,754	872,992	345,080	381,411
Free cash flow (all operations)	397,850	61,172	571,231	13,475	34,065

Adjusted Operating Cash Flow and Adjusted Operating Cash Flow per Share

Adjusted Operating Cash Flow and Adjusted Operating Cash Flow per Share can be reconciled to Cash Provided by

Operating Activities on the Company's Consolidated Statement of Cash Flows as follows:


	Three months ended December 31,		Year ended December 31,
($thousands, except share and per share amounts)	2024	2023	2024	2023	2022
Cash provided by operating activities related to continuing operations	547,267	249,875	1,300,848	827,244	615,986
Changes in non-cash working capital items	(295,508)	55,518	(220,880)	20,032	124,087
Adjusted operating cash flow — continuing operations	251,759	305,393	1,079,968	847,276	740,073
Cash provided by operating activities related to discontinued operations	73,014	56,206	218,009	189,368	260,903
Changes in non-cash working capital items	(10,895)	447	4,615	(12,427)	(8,031)
Adjusted operating cash flow — discontinued operations	62,119	56,653	222,624	176,941	252,872
Adjusted operating cash flow (all operations)	313,878	362,046	1,302,592	1,024,217	992,945
Basic weighted average number of shares outstanding	776,720,828	773,476,216	774,825,230	772,532,260	762,518,753
Adjusted operating cash flow per share — continuing operations	0.32	0.39	1.39	1.10	$1.00
Adjusted operating cash flow per share — discontinued operations	0.08	0.08	0.29	0.23	$0.30
Adjusted operating cash flow per share (all operations)	0.40	0.47	1.68	1.33	$1.30

Net Debt and Net Debt Excluding Lease Liabilities

Net debt and net debt excluding lease liabilities can be reconciled to Debt and Lease Liabilities, Current Portion of Debt and

Lease Liabilities and Cash and Cash Equivalents on the Company's Consolidated Balance Sheets as follows:


	As at December 31,
($ thousands), continuing operations	December 31, 2024	December 31, 2023	December 31, 2022
Debt and lease liabilities	(1,610,925)	(1,273,162)	(27,179)
Current portion of debt and lease liabilities	(395,232)	(212,646)	(170,149)
Less deferred financing fees (netted in above)	(7,656)	(6,374)	(4,926)
Add debt and lease liabilities related to liabilities classified as held- for-sale	(16,266)	—	—
	(2,030,079)	(1,492,182)	(202,254)
Cash and cash equivalents	357,478	268,793	191,387
Add cash and cash equivalents related to assets classified as held- for-sale	74,801	—	—
Net debt	(1,597,800)	(1,223,389)	(10,867)

Lease liabilities	249,185	277,208	27,166
Lease liabilities related to liabilities classified as held-for-sale	16,266	—	—
Net debt excluding lease liabilities	(1,332,349)	(946,181)	16,299

Other Information and Advisories

Related Party Transactions

The Company enters into related party transactions that are in the normal course of business and on an arm’s length basis.

Related party disclosures can be found in Note 29 of the Company’s Consolidated Financial Statements.

Changes in Accounting Policies and Critical Accounting Estimates and Judgments

The Company’s consolidated financial statements, including comparatives, have been prepared in compliance with IFRS.

The Company’s material accounting policies, including any changes in accounting policies, are described in Note 2 ‘Basis of

Presentation and Summary of Material Accounting Policies’ of the Company's Consolidated Financial Statements.

Critical Accounting Estimates and Judgments

The preparation of consolidated financial statements in conformity with IFRS requires management to make judgements,

estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities,

income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed

at each period end. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in

any future periods affected.

For further information on the Company’s significant accounting estimates and judgements, refer to Note 2 of the

Company’s Consolidated Financial Statements.

Disclosure Controls and Procedures

Disclosure controls and procedures have been designed to provide reasonable assurance that all material information

related to the Company is identified and communicated on a timely basis. Management of the Company, under the

supervision of the President and Chief Executive Officer and the Executive Vice President and Chief Financial Officer, is

responsible for the design and operation of disclosure controls and procedures. Management has evaluated the

effectiveness of the Company’s disclosure controls and procedures and has concluded that they were effective as at

December 31, 2024.

Internal Control over Financial Reporting (“ICFR”)

Management of the Company, under the supervision of the President and Chief Executive Officer and the Executive Vice

President and Chief Financial Officer, is responsible for establishing and maintaining adequate ICFR. The Company’s ICFR is

designed to provide reasonable assurance regarding the reliability of financial reporting and preparation of financial

statements for external purposes in accordance with IFRS. However, due to inherent limitations ICFR may not prevent or

detect all misstatements and fraud. Management will continue to monitor the effectiveness of its ICFR and may make

modifications from time to time as considered necessary.

Management assesses the effectiveness of the Company’s ICFR using the Internal Control – Integrated Framework (2013

Framework) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Management

conducted an evaluation of the effectiveness of ICFR and concluded that it was effective as at December 31, 2024.

There have been no changes in the Company’s ICFR during the three months ended December 31, 2024 that have

materially affected, or are reasonably likely to materially affect, the Company’s financial reporting.

Risks and Uncertainties

The Company’s business activities are subject to a variety and wide range of inherent risks and uncertainties. Any of these

risks could have an adverse effect on the Company, its business and prospects, and could cause actual outcomes and results

to differ materially from those described in forward-looking statements relating to the Company.

The development of the Vicuña Projects requires significant capital commitments from the Company, and additional

funding, beyond debt, may be required to advance the project to completion. Such additional funding may take the form of

a partnership, joint arrangement, royalty, stream or other arrangement (or a combination thereof) for the Vicuña Projects,

any of which would dilute the Company’s existing interest in the Vicuña Projects. The Company may also be required or

elect to pursue equity financing, which could have a dilutive effect on existing security holders if shares, options, warrants

or other convertible securities are issued.

The Company’s ability to obtain additional financing for the Vicuña Projects in the future will depend, in part, on prevailing

capital market conditions and the Company’s financial performance. Failure to secure adequate financing on a timely basis

may cause the Company to postpone, abandon, reduce or terminate its development activities in respect of the Vicuña

Projects and could have a material adverse effect on the Company’s business, results of operations, financial condition and

price of common shares.

In addition, the Company’s exploration, acquisition, development and operational activities generally require significant

investment of resources and capital. The Company allocates such resources and capital to support business objectives, and

the availability of required resources and capital is subject to market conditions and the Company’s financial position.

The Company has limited financial resources and there is no assurance that sufficient additional funding or financing will be

available to the Company or its direct and indirect subsidiaries on acceptable terms, or at all, for further exploration or

development of its properties, including the development of the Vicuña Projects, or to fulfill its obligations under any

applicable agreements.

The Company may incur substantial debt from time to time to finance working capital, capital expenditures, investments or

acquisitions or for other purposes. If the Company does so, the risks related to the Company’s indebtedness could intensify,

including, among other things: substantial interest and capital payments; increased difficulty in satisfying existing debt

obligations; limitations on the ability to obtain additional financing, or imposed requirements to make non-strategic

divestitures; imposed hedging requirements; explicit or implicit restrictions on the Company’s cash flows for capital

investment, dividends or distributions, opportunistic acquisitions and other business needs; increased vulnerability to

general adverse economic and industry conditions; interest rate risk exposure as borrowings may be at variable rates of

interest; decreased flexibility in planning for and reacting to changes in the industry in which it competes; reduced

competitiveness as compared to less leveraged competitors; and increased cost of additional borrowing.

The terms of the revolving credit facility and Term Loan agreements require the Company to satisfy various affirmative and

negative covenants and to meet certain financial ratios and tests. These covenants limit, among other things, the

Company’s ability to incur further indebtedness if doing so would cause it to fail to meet certain financial covenants, create

certain liens on assets or engage in certain types of transactions. A failure to comply with these covenants, including a

failure to meet the financial tests or ratios, would likely result in an event of default under the revolving credit facility and

Term Loan and would allow the lenders to restrict future loans or accelerate the debt, which could materially and adversely

affect the Company’s business, financial condition and results of operations, its ability to meet payment obligations under

its debt and the price of its common shares. The terms of the Term Loan entitle the Company to voluntarily prepay all or

any portion of the outstanding loan balance, without penalty. On certain occasions, a triggering event may meet the criteria

requiring mandatory prepayment. Any such prepayment made, mandatory or on the Company's accord, permanently

reduces the facility available to the Company on the Term Loan. As at December 31, 2024, the Company is in compliance

with its debt covenants.

The Company may issue additional securities to raise funds, to pay for acquisitions or for other reasons. The Company

cannot predict the size of future issuances of securities or the effect, if any, that future issuances and sales of securities will

have on the market price of common shares. Sales or issuances of substantial numbers of common shares, or the

expectation that such sales could occur, may adversely affect prevailing market prices of the Company’s common shares. In

connection with any issuance of common shares, investors will suffer dilution to their voting power and the Company may

experience dilution in its earnings per share.

The Company is exposed to various counterparty risks including, among others: financial institutions that hold the

Company’s cash; companies that have payables to the Company, including concentrate customers; the Company’s

insurance providers; counterparties to the Company's derivative contracts; the Company’s lenders and other banking

counterparties; companies that have received deposits from the Company for the future delivery of equipment; and third

parties that have agreed to indemnify the Company upon the occurrence of certain events.

The Company maintains relationships with various banking partners for its operating activities in the jurisdictions in which

the Company operates. The Company’s access to funds under its credit facilities or other debt arrangements is dependent

on the ability of the financial institutions that are counterparties to the facilities to meet their funding commitments.

Default by financial institutions could require the Company to take measures to conserve cash until the markets stabilize or

until alternative credit or other funding arrangements for the Company’s business needs can be obtained.

If market prices for metals fall below the Company’s full production costs and remain at such levels for any sustained period

of time, the Company may experience losses and may decide to discontinue mining operations or development of a project

at one or more of its properties. If the prices drop significantly, the economic prospects of the mines and projects in which

the Company has an interest could be significantly reduced or rendered uneconomic, in which case the Company may need

to restate its Mineral Resource and Mineral Reserve estimates. Low metal prices will affect the Company’s liquidity, and if

they persist for an extended period of time, the Company may have to look for other sources of cash flow to maintain

liquidity until metal prices recover. A sustained and material impact on the Company’s liquidity may also impact the

Company’s ability to comply with financial covenants under its credit facilities.

For additional discussion on Lundin Mining’s risks, refer to the “Risks and Uncertainties” section of the Company’s Annual

Information Form (“AIF”) for the year ended December 31, 2024 and the “Cautionary Statement on Forward-Looking

Information” section of this MD&A.

National Instrument 43-101 Compliance

The scientific and technical information in this document has been reviewed and approved in accordance with National

Instrument 43-101 ("NI 43-101") by Patrick Merrin, Executive Vice President, Technical Services, a "Qualified Person" under

NI 43-101. Mr. Merrin has verified the data disclosed in this document and no limitations were imposed on his verification

process.

Other Information

Additional information regarding the Company is included in the Company’s AIF which is filed with the Canadian securities

regulators. A copy of the Company’s AIF can be obtained on SEDAR+ (www.sedarplus.com) or on the Company’s website

(www.lundinmining.com).

Outstanding Share Data

The table below summarizes the Company’s common shares and securities convertible into common shares as at

February 19, 2025.


	February 19, 2025
Common shares issued and outstanding	867,777,426
Stock options outstanding (weighted average exercise price of C$10.21)	3,850,789
Time vesting share units1	1,406,034
Performance vesting share units2	1,023,125
1 Time vesting share units represent the right to receive one common share (subject to adjustments) issued from treasury.
2 Performance vesting share units (“PSU”) represent the right to receive a variable number of common shares (subject to adjustments) issued from treasury contingent upon achieving applicable performance vesting conditions. The number of common shares listed above in respect of PSU assumes that 100% of PSU granted (without change) will vest and be paid out in common shares on a one for one basis. However, as noted, the final number of PSU that may be earned and redeemed may be higher or lower than the PSU initially granted.

Consolidated Financial Statements of

Lundin Mining Corporation

December 31, 2024

Management’s Report

The accompanying consolidated financial statements of Lundin Mining Corporation ("Lundin Mining" or the “Company”)

and other information contained in the management’s discussion and analysis are the responsibility of management and

have been approved by the Board of Directors. The consolidated financial statements have been prepared by management

in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board

(“IFRS Accounting Standards”) as outlined in Part 1 of the Handbook of the Chartered Professional Accountants (“CPA”) of

Canada, and include some amounts that are based on management’s estimates and judgment.

The Board of Directors carries out its responsibility for the consolidated financial statements principally through its Audit

Committee, which is comprised solely of independent directors. The Audit Committee reviews the Company’s annual

consolidated financial statements and recommends its approval to the Board of Directors. The Company’s auditors have full

access to the Audit Committee, with and without management being present. These consolidated financial statements have

been audited by PricewaterhouseCoopers LLP, Chartered Professional Accountants.

(Signed) Jack Lundin(Signed) Teitur Poulsen

President and Chief Executive OfficerExecutive Vice President and Chief Financial Officer

Vancouver, British Columbia, Canada

February 19, 2025

PricewaterhouseCoopers LLP

PwC Place, 250 Howe Street, Suite 1400, Vancouver, British Columbia, Canada V6C 3S7

T.: +1 604 806 7000, F.: +1 604 806 7806, Fax to mail: ca_vancouver_main_fax@pwc.com

“PwC” refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership.

Independent auditor’s report

To the Shareholders of Lundin Mining Corporation

Our opinion

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects,

the financial position of Lundin Mining Corporation and its subsidiaries (together, the Company) as at

December 31, 2024 and 2023, and its financial performance and its cash flows for the years then ended in

accordance with International Financial Reporting Standards as issued by the International Accounting

Standards Board (IFRS Accounting Standards).

What we have audited

The Company’s consolidated financial statements comprise:

• the consolidated balance sheets as at December 31, 2024 and 2023;

• the consolidated statements of (loss) earnings for the years then ended;

• the consolidated statements of comprehensive (loss) income for the years then ended;

• the consolidated statements of changes in equity for the years then ended;

• the consolidated statements of cash flows for the years then ended; and

• the notes to the consolidated financial statements, comprising material accounting policy information and

other explanatory information.

Basis for opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities

under those standards are further described in the Auditor’s responsibilities for the audit of the consolidated

financial statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our

opinion.

Independence

We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of

the consolidated financial statements in Canada. We have fulfilled our other ethical responsibilities in accordance

with these requirements.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of

the consolidated financial statements for the year ended December 31, 2024. These matters were addressed in the

context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and

we do not provide a separate opinion on these matters.


Key audit matter	How our audit addressed the key audit matter
Chapada cash-generating unit (CGU) goodwill impairment assessment Refer to note 2 – Basis of presentation and summary of material accounting policies and note 11 – Goodwill and asset impairment to the consolidated financial statements. The Company’s total carrying amount of goodwill as at December 31, 2024 was $134 million, which related to the Chapada CGU. The Company’s goodwill is required to be tested annually for impairment or when events or changes in circumstances indicate that the related carrying amount may not be recoverable. When the recoverable amount of the CGU is less than the carrying amount of that CGU, an impairment loss is recognized. The recoverable amount of the Chapada CGU was based on a fair value less cost of disposal method using a discounted cash flow model and market-based approach. Management applied significant judgment in estimating the recoverable amount of the Chapada CGU. Significant assumptions used by management to determine the recoverable amounts include future metal prices, production based on estimated quantities of mineral reserves and mineral resources, production and capital expenditures, foreign exchange rate, in-situ multiples and discount rate. The recoverable amount of the Chapada CGU determined by management exceeded its carrying value, and as a result, no impairment loss was recorded.	Our approach to addressing the matter included the following procedures, among others: • Tested how management estimated the recoverable amount of the Chapada CGU, which included the following: – Tested the underlying data used by management in the discounted cash flow model, market-based valuation. – Evaluated the reasonableness of significant assumptions such as future metal prices, foreign exchange rate and production and capital expenditures by (i) comparing future metal prices and foreign exchange rate with external market and industry data; (ii) comparing future production and capital expenditures against current and past performance; and (iii) assessing whether these assumptions were consistent with evidence obtained in other areas of the audit. – The work of management’s experts was used in performing the procedures to evaluate the reasonableness of the estimates associated with the production based on estimated quantities of mineral reserves and mineral resources. As a basis for using this work, the competence, capabilities and objectivity of management’s experts were evaluated, the work performed was understood and the appropriateness of the work as audit evidence was evaluated.

Management’s estimates of production based on

estimated quantities of mineral reserves and

mineral resources are based on information

compiled by qualified persons (management’s

experts).

We considered this a key audit matter due to the

significant auditor effort, subjectivity and significant

judgment in performing procedures to test

significant assumptions used by management in

determining the fair value of the Chapada CGU.

Professionals with specialized skill and knowledge

in the field of valuation assisted us in performing

our procedures.

The procedures performed also included

evaluation of the methods and assumptions

used by management’s experts, tests of the

data used by management’s experts and an

evaluation of their findings.

– Professionals with specialized skill and

knowledge in the field of valuation assisted

in assessing the following:

(i) appropriateness of the discounted cash

flow model and market-based approach to

determine the recoverable amount of the

Chapada CGU; and (ii) the reasonableness

of the discount rate and in-situ multiples.

Other information

Management is responsible for the other information. The other information comprises the Management’s

Discussion and Analysis.

Our opinion on the consolidated financial statements does not cover the other information and we do not express

any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other

information identified above and, in doing so, consider whether the other information is materially inconsistent

with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be

materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other

information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of management and those charged with governance for the consolidated

financial statements

Management is responsible for the preparation and fair presentation of the consolidated financial

statements in accordance with IFRS Accounting Standards, and for such internal control as management

determines is necessary to enable the preparation of consolidated financial statements that are free from

material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Company’s ability

to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going

concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or

has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Auditor’s responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as

a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s

report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a

guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards

will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and

are considered material if, individually or in the aggregate, they could reasonably be expected to influence

the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise

professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements,

whether due to fraud or error, design and perform audit procedures responsive to those risks, and

obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of

not detecting a material misstatement resulting from fraud is higher than for one resulting from error,

as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of

internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures

that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the

effectiveness of the Company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and,

based on the audit evidence obtained, whether a material uncertainty exists related to events or

conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If

we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report

to the related disclosures in the consolidated financial statements or, if such disclosures are

inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to

the date of our auditor’s report. However, future events or conditions may cause the Company to

cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the consolidated financial statements,

including the disclosures, and whether the consolidated financial statements represent the underlying

transactions and events in a manner that achieves fair presentation.

• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial

information of the entities or business units within the Company as a basis for forming an opinion on

the consolidated financial statements. We are responsible for the direction, supervision and review of

the audit work performed for purposes of the group audit. We remain solely responsible for our audit

opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope

and timing of the audit and significant audit findings, including any significant deficiencies in internal

control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant

ethical requirements regarding independence, and to communicate with them all relationships and other

matters that may reasonably be thought to bear on our independence, and where applicable, related

safeguards.

From the matters communicated with those charged with governance, we determine those matters that

were of most significance in the audit of the consolidated financial statements of the current period and

are therefore the key audit matters. We describe these matters in our auditor’s report unless law or

regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we

determine that a matter should not be communicated in our report because the adverse consequences of

doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditor’s report is Mark Patterson.

/s/PricewaterhouseCoopers LLP

Chartered Professional Accountants

Vancouver, British Columbia

February 19, 2025

- 1 -


LUNDIN MINING CORPORATION
CONSOLIDATED BALANCE SHEETS	As at
(in thousands of US dollars)	December 31, 2024	December 31, 2023
	December 31, 2024	December 31, 2023
ASSETS
Cash and cash equivalents (Note 5)	$357,478	$268,793
Trade and other receivables (Note 6)	510,854	828,871
Income taxes receivable	14,520	34,542
Inventories (Note 7)	590,685	599,407
Marketable securities (Note 8 )	50,105	—
Current portion of derivative assets (Note 26)	964	38,114
Other current assets	22,667	21,421
Assets held for sale (Note 3)	1,389,670	—
Total current assets	2,936,943	1,791,148
Restricted funds	8,665	59,979
Long-term inventory (Note 7)	871,885	797,597
Derivative assets (Note 26)	665	9,397
Other non-current assets (Note 9)	18,382	67,090
Mineral properties, plant and equipment (Note 10)	6,244,634	7,725,169
Deferred tax assets (Note 25)	191,254	170,203
Goodwill (Note 11)	134,284	240,616
	7,469,769	9,070,051
Total assets	$10,406,712	$10,861,199
LIABILITIES
Trade and other payables (Note 12)	$674,204	$805,763
Income taxes payable	128,251	62,926
Current portion of derivative liabilities (Note 26)	39,416	26,389
Current portion of debt and lease liabilities (Note 13)	395,232	212,646
Current portion of deferred revenue (Note 14)	60,604	87,867
Current portion of reclamation and other closure provisions (Note 15)	20,876	14,442
Liabilities held for sale (Note 3)	393,109	—
Total current liabilities	1,711,692	1,210,033
Derivative liabilities (Note 26)	24,487	3,148
Debt and lease liabilities (Note 13)	1,610,925	1,273,162
Deferred revenue (Note 14)	447,133	535,363
Reclamation and other closure provisions (Note 15)	323,310	529,734
Deferred consideration and other long-term liabilities (Note 16)	128,783	133,199
Provision for pension obligations	768	6,752
Deferred tax liabilities (Note 25)	643,850	751,688
	3,179,256	3,233,046
Total liabilities	4,890,948	4,443,079
SHAREHOLDERS' EQUITY
Share capital (Note 17)	4,585,607	4,574,830
Contributed surplus	51,308	55,201
Accumulated other comprehensive loss	(375,837)	(296,617)
Retained earnings	161,063	627,903
Equity attributable to Lundin Mining Corporation shareholders	4,422,141	4,961,317
Non-controlling interests (Note 18)	1,093,623	1,456,803
Total shareholders' equity	5,515,764	6,418,120
Total liabilities and shareholders' equity	$10,406,712	$10,861,199
Commitments and contingencies (Note 27)
Subsequent events (Note 4, 8, 26)

The accompanying notes are an integral part of these consolidated financial statements.
APPROVED BY THE BOARD OF DIRECTORS
(Signed) Adam I. Lundin - Director	(Signed) Dale C. Peniuk - Director

- 2 -


LUNDIN MINING CORPORATION
CONSOLIDATED STATEMENTS OF (LOSS) EARNINGS
For the years ended December 31, 2024 and 2023
(in thousands of US dollars, except for shares and per share amounts)

	2024	2023
Continuing Operations:
Revenue (Note 19)	$3,422,604	$2,743,444
Cost of goods sold
Production costs (Note 20)	(1,898,627)	(1,644,037)
Depreciation, depletion and amortization	(607,744)	(497,873)
Reversal of inventory write-down (Note 7 )	26,626	—
Gross profit	942,859	601,534
General and administrative expenses (Note 21)	(58,349)	(66,723)
Exploration and business development (Note 22)	(45,352)	(44,010)
Finance income (Note 23)	16,689	10,879
Finance costs (Note 23)	(158,144)	(102,308)
Other (expense) income (Note 24)	(24,085)	91,844
Goodwill and asset impairment (Note 11)	(254,218)	—
Mine suspension costs	(36,073)	—
Earnings before income taxes from continuing operations	383,327	491,216
Current tax expense (Note 25)	(294,938)	(141,432)
Deferred tax recovery (expense) (Note 25)	64,965	(72,934)
Net earnings from continuing operations	$153,354	$276,850
Net (loss) earnings from discontinued operations, net of taxes (Note 3)	(214,671)	38,399
Net (loss) earnings	$(61,317)	$315,249

Net earnings from continuing operations attributable to:
Lundin Mining Corporation shareholders	$11,144	$203,163
Non-controlling interests	142,210	73,687
Net earnings from continuing operations	$153,354	$276,850

Net (loss) earnings attributable to
Lundin Mining Corporation shareholders	$(203,527)	$241,562
Non-controlling interests	142,210	73,687
Net (loss) earnings	$(61,317)	$315,249

Basic and diluted earnings per share from continuing operations attributable to Lundin Mining Corporation shareholders:	$0.01	$0.26

Basic and diluted (loss) earnings per share from discontinued operations attributable to Lundin Mining Corporation shareholders:	$(0.27)	$0.05

Basic and diluted (loss) earnings per share attributable to Lundin Mining Corporation shareholders:	$(0.26)	$0.31

Weighted average number of shares outstanding (Note 17)
Basic	774,825,230	772,532,260
Diluted	777,569,041	773,292,895

The accompanying notes are an integral part of these consolidated financial statements.

- 3 -


LUNDIN MINING CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
For the years ended December 31, 2024 and 2023
(in thousands of US dollars)

	2024	2023
Net (loss) earnings	$(61,317)	$315,249

Other comprehensive (loss) income, net of taxes
Item that will not be reclassified to net earnings:
Remeasurements for post-employment benefit plans	573	2,320
Item that may be reclassified subsequently to net earnings:
Effects of foreign exchange	(79,684)	43,710
Other comprehensive (loss) income	(79,111)	46,030
Total comprehensive (loss) income	$(140,428)	$361,279

Comprehensive (loss) income attributable to:
Lundin Mining Corporation shareholders	$(282,747)	$287,232
Non-controlling interests	142,319	74,047
Total comprehensive (loss) income	$(140,428)	$361,279

Total comprehensive income (loss) attributable to Lundin Mining Corporation shareholders arising from:
Continuing operations	$22,061	$197,723
Discontinued operations	(304,808)	89,509
Comprehensive (loss) income attributable to Lundin Mining Corporation shareholders	$(282,747)	$287,232

The accompanying notes are an integral part of these consolidated financial statements.

- 4 -


LUNDIN MINING CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the years ended December 31, 2024 and 2023
(in thousands of US dollars, except for shares)

	Number of shares	Share capital	Contributed surplus	Accumulated other comprehensive (loss) income	Retained earnings	Non- controlling interests	Total
Balance, December 31, 2023	773,667,789	$4,574,830	$55,201	$(296,617)	$627,903	$1,456,803	$6,418,120
Distributions	—	—	—	—	—	(152,000)	(152,000)
Exercise of Caserones purchase option (Note 9)	—	—	—	—	(52,667)	(353,499)	(406,166)
Exercise of share-based awards	3,250,382	31,181	(10,158)	—	—	—	21,023
Share-based compensation	—	—	6,265	—	—	—	6,265
Dividends declared (Note 17(f))	—	—	—	—	(202,962)	—	(202,962)
Shares purchased (Note 17(g))	(2,815,200)	(16,690)	—	—	(7,684)	—	(24,374)
Accrued liability for automatic share purchase plan commitment (Note 17(g))	—	(3,714)	—	—	—	—	(3,714)
Net (loss) earnings	—	—	—	—	(203,527)	142,210	(61,317)
Other comprehensive (loss) income	—	—	—	(79,220)	—	109	(79,111)
Total comprehensive (loss) income	—	—	—	(79,220)	(203,527)	142,319	(140,428)
Balance, December 31, 2024	774,102,971	$4,585,607	$51,308	$(375,837)	$161,063	$1,093,623	$5,515,764

Balance, December 31, 2022	770,746,531	$4,555,125	$55,769	$(342,287)	$592,425	$564,089	$5,425,121
Distributions	—	—	—	—	—	(55,100)	(55,100)
Caserones acquisition	—	—	—	—	—	873,767	873,767
Exercise of share-based awards	2,921,258	19,705	(8,329)	—	—	—	11,376
Share-based compensation	—	—	7,761	—	—	—	7,761
Dividends declared	—	—	—	—	(206,084)	—	(206,084)
Net earnings	—	—	—	—	241,562	73,687	315,249
Other comprehensive income	—	—	—	45,670	—	360	46,030
Total comprehensive income	—	—	—	45,670	241,562	74,047	361,279
Balance, December 31, 2023	773,667,789	$4,574,830	$55,201	$(296,617)	$627,903	$1,456,803	$6,418,120

The accompanying notes are an integral part of these consolidated financial statements.

- 5 -


LUNDIN MINING CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended December 31, 2024 and 2023
(in thousands of US dollars)
Cash provided by (used in)	2024	2023
Operating activities
Net earnings	$153,354	$276,850
Items not involving cash and other adjustments
Depreciation, depletion and amortization	607,744	497,873
Share-based compensation	6,422	7,301
Unrealized foreign exchange (gain) loss	(10,994)	1,804
Finance costs, net (Note 23)	141,455	91,429
Recognition of deferred revenue (Note 14)	(78,083)	(64,698)
Deferred tax (recovery) expense	(64,965)	72,934
Revaluation of Caserones purchase option (Note 24)	(11,728)	5,150
Goodwill and asset impairment (Note 11)	254,218	—
Revaluation of foreign currency and diesel derivatives (Note 26)	87,218	(16,624)
Reversal of inventory write-down (Note 7)	(26,626)	—
Write-down of assets (Note 24)	22,129	—
Inventory write-down	19,445	49,793
Other	7,220	7,893
Reclamation payments (Note 15)	(17,061)	(9,823)
Pension payments	(2,618)	(690)
Changes in long-term inventory	(7,162)	(71,916)
Changes in non-cash working capital items (Note 32)	220,880	(20,032)
Cash provided by operating activities related to continuing operations	1,300,848	827,244
Cash provided by operating activities related to discontinued operations	218,009	189,368
	1,518,857	1,016,612
Investing activities
Investment in mineral properties, plant and equipment	(807,307)	(857,138)
Acquisition of Caserones, net of cash acquired	—	(648,569)
Purchase of marketable securities (Note 8)	(41,686)	—
Cash received from disposal of subsidiary (Note 24)	—	5,718
Payment of Chapada derivative liability (Note 26)	(25,000)	(25,000)
Interest received	16,135	10,328
Other	2,489	(4,151)
Cash used in investing activities related to continuing operations	(855,369)	(1,518,812)
Cash used in investing activities related to discontinued operations	(151,537)	(155,722)
	(1,006,906)	(1,674,534)
Financing activities
Proceeds from debt (Note 13)	1,500,551	2,490,597
Principal repayments of debt (Note 13)	(944,330)	(1,449,488)
Principal payments of lease liabilities	(66,529)	(46,400)
Interest paid	(119,234)	(57,140)
Payment of Caserones deferred consideration (Note 26)	(10,000)	—
Exercise of Caserones purchase option (Note 9)	(350,000)	—
Dividends paid to shareholders	(202,497)	(206,540)
Shares purchased (Note 17)	(24,374)	—
Proceeds from common shares issued	21,023	11,376
Distributions paid to non-controlling interests	(152,000)	(55,100)
Net proceeds from settlement of foreign currency and commodity derivatives	(520)	24,062
Other	(1,864)	543
Cash (used in) provided by financing activities related to continuing operations	(349,774)	711,910
Cash provided by financing activities related to discontinued operations	5,547	16,676
	(344,227)	728,586
Effect of foreign exchange on cash balances	(4,238)	6,742
Increase in cash and cash equivalents during the year	163,486	77,406
Cash and cash equivalents, beginning of year	268,793	191,387
Less: Cash and cash equivalents included in assets held for sale, end of year (Note 3)	(74,801)	—
Cash and cash equivalents, end of year	$357,478	$268,793
Supplemental cash flow information (Note 32)

The accompanying notes are an integral part of these consolidated financial statements.

- 6 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

1.NATURE OF OPERATIONS

Lundin Mining Corporation ("Lundin Mining" or the "Company") is a diversified Canadian base metals mining company

primarily producing copper, zinc, nickel and gold. The Company owns 80% of the Candelaria and Ojos del Salado

mining complex ("Candelaria") located in Chile. On July 2, 2024, the Company completed the exercise of its option to

acquire an additional 19% interest in the issued and outstanding equity of SCM Minera Lumina Copper Chile ("Lumina

Copper"), bringing the Company's ownership of the Caserones copper-molybdenum mine (“Caserones”) in Chile from

51% to 70%. The Company’s wholly-owned operating assets include the Chapada mine located in Brazil, the Eagle mine

located in the United States of America (“USA”), the Neves-Corvo mine located in Portugal, and the Zinkgruvan mine

located in Sweden. In addition, the Company owns the large scale copper-gold Josemaria project ("Josemaria Project"),

located in Argentina.

In December 2024, the Company announced that it had entered into a definitive agreement to sell its 100% interest in

Somincor-Sociedade Mineira de Neves-Corvo, S.A. ("Neves-Corvo Mine") and its 100% interests in each of Zinkgruvan

Mining AB and North Atlantic Natural Resources AB (together "Zinkgruvan Mine") to Boliden AB ("Boliden"). As a

result, the Company determined that the Neves-Corvo and Zinkgruvan reporting segments met the criteria to be

considered assets held for sale. The assets of the Neves-Corvo Mine and the Zinkgruvan Mine have been classified as

current assets held for sale, the liabilities of the Neves-Corvo Mine and the Zinkgruvan Mine have been classified as

current liabilities associated with assets held for sale, and re-presented the operating results of these segments as a

single line item of earnings (loss) from discontinued operations on the consolidated statement of (loss) earnings (Note

3).

The Company’s common shares are listed on the Toronto Stock Exchange (“TSX”) in Canada and the Nasdaq Stockholm

Exchange in Sweden. The Company is incorporated under the Canada Business Corporations Act. The Company is

domiciled in Canada and its principal place of business is 1055 Dunsmuir Street, Suite 2800, Vancouver, British

Columbia, Canada.

2. BASIS OF PRESENTATION AND SUMMARY OF MATERIAL ACCOUNTING POLICIES

(i) Basis of presentation and measurement

The consolidated financial statements have been prepared in accordance with International Financial Reporting

Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards") and which

the Canadian Accounting Standards Board has approved for incorporation into Part 1 of the CPA Canada

Handbook – Accounting.

The consolidated financial statements have been prepared on a historical cost basis except for certain financial

instruments which have been measured at fair value.

The Company's presentation currency is United States (“US”) dollars. Reference herein of $ or USD is to US

dollars, C$ or CAD is to Canadian dollars, SEK is to Swedish krona, € refers to the Euro, CLP refers to the Chilean

peso, BRL refers to the Brazilian real, and ARS refers to the Argentine peso.

These consolidated financial statements were approved by the Board of Directors of the Company for issue on

February 19, 2025.

- 7 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

(ii)Material accounting policies

The Company has consistently applied the accounting policies to all the years presented. The material accounting

policies applied in these consolidated financial statements are set out below.

(a) Basis of consolidation

The financial statements consist of the consolidation of the financial statements of the Company and its

subsidiaries.

Subsidiaries are entities over which the Company has control, including the power to govern the financial

and operating policies in order to obtain benefits from their activities. The existence and effect of potential

voting rights that are currently exercisable or convertible are considered when assessing whether the

Company controls another entity. Subsidiaries are fully consolidated from the date on which control is

obtained by the Company and are de-consolidated from the date that control ceases.

Where necessary, adjustments are made to the results of the subsidiaries and associates to bring their

accounting policies in line with those used by the Company. Intra-group transactions, balances, income and

expenses are eliminated on consolidation.

For non wholly-owned subsidiaries, the net assets attributable to outside equity shareholders are presented

as non-controlling interests in the equity section of the consolidated balance sheet. Net earnings for the

period that are attributable to non-controlling interests are calculated based on the ownership of the

minority shareholders in the subsidiary.

(b) Translation of foreign currencies

The functional currency of each entity within the Company is the currency of the primary economic

environment in which it operates. The Company’s presentation currency is US dollars.

Transactions denominated in currencies other than the functional currency are recorded using the exchange

rates prevailing on the dates of the transactions. At each balance sheet date, monetary items denominated

in foreign currencies are translated at the rates prevailing on the balance sheet date. Non-monetary items

that are measured at historical cost in a foreign currency are translated using the exchange rate at the date

of the transaction. Non-monetary items measured at fair value in a foreign currency are translated at the

rates prevailing on the date when the fair value was determined. Foreign currency translation differences on

deferred foreign tax liabilities and assets are reported in deferred tax expense/recovery in the consolidated

statement of (loss) earnings.

Exchange differences arising on the settlement of monetary items, and on the translation of monetary

items, are recognized in the consolidated statement of (loss) earnings in the period in which they arise.

Exchange differences arising on the translation of non-monetary items carried at fair value are included in

the consolidated statement of (loss) earnings.

For the purpose of presenting the consolidated financial statements, the assets and liabilities of the

Company’s foreign operations are translated into US dollars, which is the presentation currency of the

group, at the rate of exchange prevailing at the end of the reporting period. Income and expenses are

translated at the average exchange rates for the period where these approximate the rates on the dates of

transactions.

On disposal of a foreign operation, the historical, cumulative amount of exchange differences recognized as

a separate component of equity is reclassified and recognized in the consolidated statement of (loss)

earnings.

- 8 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

Cash and cash equivalents comprise cash on deposit with banks and highly liquid short-term interest-

bearing investments with a term to maturity at the date of purchase of 90 days or less which are subject to

an insignificant risk of change in value.

(d) Restricted funds

Restricted funds include reclamation funds and cash on deposit that have been pledged for reclamation and

closure activities which are not available for immediate disbursement.

(e) Inventories

Ore and concentrate stockpiles and cathode inventory are valued at the lower of production cost and net

realizable value (“NRV”). Production costs include costs of materials and labour related directly to mining

and processing activities, including production phase stripping costs, depreciation and amortization of

mineral property, plant and equipment directly involved in the related mining and production process,

amortization of any stripping costs previously capitalized and directly attributable overhead costs.

Dump leach pad inventory represents ore that has been mined and placed on leach pads where a solution is

applied to the surface of the heap to dissolve the copper and by-products. The resulting solution is further

processed in a plant to recover the copper. The cost of dump leach inventory is derived from current mining

and leaching costs and is removed at the weighted average cost per recoverable pound ("lb") of copper on

the leach pads as lbs of copper are recovered. Estimates of recoverable copper on the dump leach are

calculated based on the quantities of ore placed on the leach pads (measured in tonnes added to the leach

pads), the grade of ore placed on the leach pads (based on assay data), and an estimated recovery

percentage (based on estimated recovery assumptions from the block model). The nature of the leaching

process inherently limits the ability to precisely monitor inventory levels. As a result, estimates are refined

based on actual results and engineering studies over time. The final recovery of copper from the dump leach

will not be known until the leaching process is concluded at the end of the mine life. Ore on the dump leach

that is not expected to be recovered within the next twelve months is classified as non-current.

Materials and supplies inventories are valued at the lower of average cost less allowances for obsolescence

and NRV.

If the carrying value of inventories exceeds NRV, a write-down is recognized. The write-down may be

reversed in a subsequent period if the circumstances which caused the write-down no longer exist.

(f) Mineral properties

Mineral properties are carried at cost, less accumulated depletion and any accumulated impairment

charges. Expenditures on mineral properties include:

i. Acquisition costs which consist of payments for property rights and leases, including the

estimated fair value of exploration properties acquired as part of a business combination or the

acquisition of a group of assets.

ii. Exploration, evaluation and project investigation costs incurred on an area of interest once a

determination has been made that a property has economically recoverable Mineral Resources

and Mineral Reserves (“R&R”) and there is a reasonable expectation that costs can be

recovered by future exploitation or sale of the property. Exploration, evaluation and project

investigation expenditures made prior to a determination that a property has economically

recoverable R&R are expensed as incurred.

- 9 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

iii. Deferred stripping costs which represent the costs incurred to remove overburden and other

waste materials to access ore in an open pit mine. Stripping costs incurred prior to the

production phase of the mine are capitalized and included as part of the carrying value of the

mineral property. During the production phase, stripping costs which provide probable future

economic benefits, identifiable improved access to the ore body and which can be measured

reliably are capitalized to mineral properties. Capitalized stripping costs are amortized using a

unit-of-production basis over the Proven and Probable Mineral Reserve to which they relate.

iv. Development costs incurred in an area of interest, once management has determined the

technical feasibility and commercial viability of a project, the project presents an appropriate

rate of return on investment, and the Board of Directors has demonstrated commitment to

advance the project. When additional development expenditures are made on a property after

commencement of production, the expenditure is capitalized as mineral property when it is

probable that additional economic benefit will be derived from future operations. Development

costs are amortized using a unit-of-production basis over the Proven and Probable Mineral

Reserve to which they relate.

v. Interest and financing costs on debt or other liabilities that are directly attributed to the

acquisition, construction and development of a qualifying asset. All other borrowing costs are

expensed as incurred.

vi. Easement costs incurred to support access to the Company's operating sites and the Josemaria

Project.

(g) Plant and equipment

Plant and equipment are carried at cost less accumulated depreciation and any accumulated impairment

charges. For production plant and equipment, depreciation is recorded on a units-of-production basis.

Depreciation on all other plant and equipment is recorded on a straight-line basis over the estimated useful

life of the asset or over the estimated remaining life of the mine, if shorter. Residual values and useful lives

are reviewed annually. Gains and losses on disposals are calculated as proceeds received less the carrying

amount and are recognized in the consolidated statement of (loss) earnings.

Useful lives are as follows:


	Number of years
Buildings	8-20
Plant and machinery	3-20
Equipment	3-8

(h) Intangible assets

Separately acquired intangible assets are initially measured at cost which comprises of its purchase price

and any directly attributable costs of preparing the asset for its intended use. The Company depreciates

intangible assets with finite useful lives on a straight-line basis over the estimated useful life of the asset.

For intangibles with an indefinite useful life, no amortization is calculated.

(i) Impairment and impairment reversals

At the end of each reporting period, the Company assesses whether there is an indication that an asset or

group of assets within a cash generating unit (“CGU”) may be impaired. When impairment indicators exist,

the Company estimates the recoverable amount of the asset or CGU and compares it against the asset or

CGU’s carrying amount. The recoverable amount is the higher of the fair value less cost of disposal

(“FVLCD”) and the asset or CGU’s value in use (“VIU”). If the carrying value exceeds the recoverable amount,

an impairment loss is recorded in the consolidated statement of (loss) earnings during the period. If either

- 10 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

FVLCD or VIU exceeds the asset or CGU’s carrying amount, the asset or CGU is not impaired, and the

Company does not estimate the other amount.

In assessing VIU, the estimated future cash flows are discounted to their present value using a pre-tax

discount rate that reflects current market assessments of the time value of money and the risks specific to

the CGU for which the estimates of future cash flows have not been adjusted. The cash flows are based on

best estimates of expected future cash flows from the continued use of the asset or the CGU and its

eventual disposal.

FVLCD is the price that would be received to sell an asset or paid to transfer a liability in an orderly

transaction between market participants, which is best evidenced if obtained from an active market or

binding sale agreement. Where neither exists, the fair value is based partly on a discounted cash flow

projections model. Costs of disposal, other than those that have been recognized as liabilities, are deducted

in measuring FVLCD.

Reversals of impairment are assessed at each reporting period where there is an indication that an

impairment loss recognized previously may no longer exist or has decreased. If an impairment reversal

indicator exists, the recoverable amount is calculated. If the recoverable amount exceeds the carrying

amount, the carrying value of the CGU is increased to the recoverable amount net of depreciation. The

increased carrying amount cannot exceed the carrying amount that would have been determined had no

impairment loss been recognized for the CGU in prior years. A reversal of an impairment loss is recognized

as a gain in the consolidated statement of (loss) earnings in the period it is determined.

(j) Business combinations and goodwill

Acquisitions of businesses are accounted for using the purchase method of accounting whereby all

identifiable assets and liabilities are recorded at their fair values as at the date of acquisition. Any excess

purchase price over the aggregate fair value of net assets is recorded as goodwill. Goodwill is identified and

allocated to CGUs, or groups of CGUs, that are expected to benefit from the synergies of the acquisition.

Goodwill is not amortized. Any excess of the aggregate fair value of net assets over the purchase price is

recognized in the consolidated statement of (loss) earnings.

A CGU to which goodwill has been allocated is tested for impairment at least annually or when events or

changes in circumstances indicate that the related carrying amount may not be recoverable. For goodwill

arising on an acquisition in a financial year, the CGU to which the goodwill has been allocated is tested for

impairment before the end of that financial year.

When the recoverable amount of the CGU is less than the carrying amount of that CGU, the impairment loss

is allocated to reduce the carrying amount of any goodwill allocated to that CGU first, and then to the other

assets of that CGU on a pro-rata basis of the carrying amount of each asset in the CGU. Any impairment loss

for goodwill is recognized directly in the consolidated statement of (loss) earnings. An impairment loss for

goodwill is not reversed in subsequent periods.

On disposal of a subsidiary, the attributable amount of goodwill is included in the determination of the gain

or loss on disposal.

(k) Leases

At inception of a contract, the Company assesses whether the contract is, or contains a lease. A contract is,

or contains a lease, if the contract conveys the right to control the use of an identified asset for a period of

time in exchange for consideration.

The Company has elected not to recognize right-of-use assets and lease liabilities for short-term leases that

have a lease term of 12 months or less, and leases of low-value assets. For these leases, the Company

- 11 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

recognizes the lease payments as an expense in the consolidated statement of (loss) earnings on a straight-

line basis over the term of the lease.

The Company recognizes a lease liability and a right-of-use asset at the lease commencement date.

The lease liability is initially measured as the present value of future lease payments discounted using the

interest rate implicit in the lease or, if that rate cannot be readily determined, each operation’s applicable

incremental borrowing rate. The incremental borrowing rate is the rate which the operation would have to

pay to borrow, over a similar term and with a similar security, the funds necessary to obtain an asset of

similar value to the right-of-use asset in a similar economic environment.

Lease payments included in the measurement of the lease liability comprise the following:

-fixed payments, including in-substance fixed payments, less any lease incentives receivable;

-variable lease payments that depend on an index or a rate, initially measured using the index or

rate as at the commencement date;

-amounts expected to be payable by the Company under residual value guarantees;

-the exercise price of a purchase option if the Company is reasonably certain to exercise that option;

and

-payments of penalties for terminating the lease, if the Company expects to exercise an option to

terminate the lease.

The lease liability is subsequently measured by:

-increasing the carrying amount to reflect interest on the lease liability;

-reducing the carrying amount to reflect lease payments made; and

-remeasuring the carrying amount to reflect any reassessment or lease modifications.

Variable lease payments that do not depend on an index or rate are not included in the measurement of the

lease liability.

The lease liability is remeasured when there is a change in future lease payments arising from a change in an

index or rate, if there is a change in the Company’s estimate of the amount expected to be payable under a

residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase,

extension or termination option.

Each lease payment is allocated between the lease liability and finance cost. The finance cost is recorded as

an expense in the consolidated statement of (loss) earnings over the lease period to produce a constant

periodic rate of interest on the remaining balance of the liability for each period.

The right-of-use asset is initially measured at cost, which comprises the following:

-the amount of the initial measurement of the lease liability;

-any lease payments made at or before the commencement date, less any lease incentives received;

-any initial direct costs incurred by the Company; and

-an estimate of costs to be incurred by the Company in dismantling and removing the underlying

asset, restoring the site on which it is located or restoring the underlying asset to the condition

required by the terms and conditions of the lease, unless those costs are incurred to produce

inventories.

The right-of-use asset is subsequently measured at cost, less any accumulated depreciation and any

accumulated impairment losses, and adjusted for any remeasurement of the lease liability. It is depreciated

in accordance with the Company’s accounting policy for plant and equipment, from the commencement

date to the earlier of the end of its useful life or the end of the lease term.

On the consolidated balance sheet, right-of-use assets and lease liabilities are reported in mineral

properties, plant and equipment and debt and lease liabilities, respectively.

- 12 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

(l) Non-current assets held for sale and discontinued operations

Assets and businesses are classified as held for sale if their carrying amount will be recovered or settled

principally through a sale transaction rather than through continuing use. The asset or business must be

available for immediate sale and the sale must be highly probable within one year.

Assets and businesses classified as held for sale are measured at the lower of carrying amount and fair value

less costs to sell ("FVLCS"). Immediately prior to reclassification to assets held for sale, the Company is

required to assess for impairment of assets of CGU's under its normal impairment policies. If the carrying

value related to a specific asset or business classified as held for sale exceeds its FVLCS an impairment loss is

recognized in the consolidated statement of (loss) earnings. No depreciation is charged on assets and

businesses classified as held for sale. Assets and liabilities classified as held for sale are presented separately

as current items in the consolidated balance sheet.

A discontinued operation is a component of the Company’s business that represents a separate major line

of business or geographical area of operations that has been disposed of, has been abandoned, or meets

the criteria to be classified as held for sale. Discontinued operations are excluded from the results of

continuing operations and are presented as a single amount as profit or loss after tax from discontinued

operations in the consolidated statement of (loss) earnings.

(m) Reclamation and other closure provisions

The Company incurs reclamation and other closure costs related to its mining properties such as facility

decommissioning and dismantling, end of mine life severance, site restoration and ongoing environmental

monitoring. These costs are a normal consequence of mining and are dependent on the requirements of the

Company’s legal and constructive obligations, as well as any other commitments made to stakeholders. The

majority of these expenditures will be incurred at the end of the life of mine and are dependent upon a

number of factors such as the life and nature of the asset, the operating license conditions and the

environment in which the mine operates.

The future obligations for mine closure activities are estimated by the Company using mine closure plans or

other similar studies which outline the activities to be undertaken to meet regulatory and internal

requirements. Since the obligations are dependent on the laws and regulations of the countries in which the

mines operate, they are regularly evaluated by management and external experts. Costs included in the

obligations encompass all reclamation and other closure activities expected to occur progressively over the

life of the operation at the time of closure and post-closure in connection with disturbances as at the

reporting date.

Obligations may change as a result of amendments in laws and regulations relating to environmental

protection and/or other legislation affecting resource companies. Included in the estimated obligations are

a number of significant assumptions made by management in determining closure provisions. Accordingly,

closure provisions are more uncertain the further into the future mine closure activities are expected to be

carried out.

The Company records the present value of its reclamation and other closure provisions as a liability with a

corresponding increase in the carrying value of the related asset. The provision is discounted to its net

present value using a country specific, current market, pre-tax discount rate. The unwinding of the discount,

referred to as an accretion expense, is included in finance costs in the consolidated statement of (loss)

earnings and results in an increase in the carrying amount of the liability. Reclamation obligations settled in

the year are offset against the corresponding liability. Unplanned reclamation costs are reported as either

part of the cost of inventory or recognized as a cost in the consolidated statement of (loss) earnings, if they

relate to either production activities or a closed site.

The capitalized cost of the reclamation and other closure activities is recognized in the mineral property and

plant & equipment and depreciated on a unit-of-production basis over the expected mine life of the

- 13 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

operation or asset to which it relates. Depreciation costs are included in the consolidated statement of (loss)

earnings as part of cost of goods sold.

Changes in obligations resulting from revisions to the timing or amount of expenditures, discount rate or

foreign exchange rate are recognized as an increase or decrease in the reclamation and other closure

provision liability, and a corresponding change in the carrying amount of the related assets.

(n) Revenue recognition

Revenue from contracts with customers is recognized when a customer obtains control of the promised

asset and the Company satisfies its performance obligation. Revenue is allocated to each performance

obligation. The Company considers the terms of the contract in determining the transaction price. The

transaction price is based upon the amount the entity expects to be entitled to in exchange for the

transferring of promised goods. The Company earns revenue from contracts with customers related to its

concentrate and copper cathode sales, and its copper, gold and silver streaming arrangements.

The Company satisfies its performance obligations for its concentrate and copper cathode sales per

specified contract terms which are generally upon shipment or delivery of an individual parcel. Revenue

from concentrate and copper cathode sales is recorded based upon forward market prices of the expected

final sales price date. The Company typically recognizes revenue when concentrate or copper cathodes have

been placed on board a vessel for shipment or delivered to a location specified by the customer.

Deferred revenue arises from up-front payments received by the Company or obligations acquired in

consideration for future commitments as specified in its various streaming arrangements. The accounting

for streaming arrangements is dependent on the facts and terms of each of the arrangements. Revenue

from streaming arrangements is recognized when the customer obtains control of the copper, gold and/or

silver metal and the Company has satisfied its performance obligations.

The Company identified significant financing components related to its streaming arrangements resulting

from a difference in the timing of the up-front consideration received and delivery of the promised goods.

Interest expense on deferred revenue is recognized in finance costs, or in mineral properties, plant and

equipment if directly attributable to the acquisition, construction and development of a qualifying asset.

The interest rate is determined based on the rate implicit in each streaming agreement at the date of

inception or acquisition.

The initial consideration received from the streaming arrangements is considered variable, subject to

changes in the total copper, gold and silver volumes to be delivered. Changes to variable consideration are

reflected in revenue in the consolidated statement of (loss) earnings.

(o) Share-based compensation

The Company grants share-based awards in the form of share options and share units to certain employees

in exchange for the provision of services. The share options and share units are equity-settled awards. The

Company determines the fair value of the awards on the date of grant. This fair value is charged to the

consolidated statement of (loss) earnings using a graded vesting attribution method over the vesting period

of the awards, with a corresponding credit to contributed surplus. When the share options or share units

are exercised, the applicable amounts of contributed surplus are transferred to share capital. At the end of

the reporting period, the Company updates its estimate of the number of awards that are expected to vest

and adjusts the total expense to be recognized over the vesting period. The Company also grants share-

based awards to non-employee Directors in the form of deferred share units (“DSUs”) in exchange for the

provision of services. DSUs are liability awards settled in cash and measured at the quoted market price at

the grant date. The corresponding liability is adjusted for changes in fair value at each subsequent reporting

date until the awards are settled. The fair value of the DSUs are expensed at the grant date and subsequent

changes to fair value are charged to the consolidated statement of (loss) earnings.

- 14 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

(p) Current and deferred income taxes

Income tax expense represents the sum of current and deferred tax. Current taxes payable is based on

taxable earnings for the year. Taxable earnings may differ from earnings before income tax as reported in

the consolidated statement of (loss) earnings because it may exclude items of income or expense that are

taxable or deductible in other years and it may further exclude items of income or expense that are never

taxable or deductible. The Company’s liability for current tax is calculated using tax rates that have been

enacted or substantively enacted at the balance sheet date.

Income tax assets and liabilities are offset when there is a legally enforceable right to offset the assets and

liabilities and when they relate to income taxes levied by the same tax authority on either the same taxable

entity or different taxable entities where there is an intention to settle the balance on a net basis.

Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the

financial statements and the corresponding tax bases used in the computation of taxable earnings. Deferred

tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are

recognized to the extent that it is probable that future taxable profits will be available against which

deductible temporary differences or tax loss carryforwards can be utilized. Such assets and liabilities are not

recognized if the temporary difference arises from goodwill or from the initial recognition (other than in a

business combination) of other assets and liabilities in a transaction that affects neither the taxable earnings

nor the accounting earnings. Deferred tax liabilities are recognized for taxable temporary differences arising

on investments in subsidiaries and investments in associates, except where the Company is able to control

the reversal of the temporary differences and it is probable that the temporary differences will not reverse

in the foreseeable future. The carrying amount of deferred tax assets is reviewed at each balance sheet date

and reduced to the extent that it is no longer probable that sufficient taxable earnings will be available to

allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is

settled or the asset realized, based on tax rates and tax laws that have been enacted or substantively

enacted by the balance sheet date. Deferred tax is charged or credited to earnings, except when it relates to

items charged or credited directly to equity, in which case the deferred tax is reflected in equity.

(q) Earnings per share

Basic earnings per share is calculated using the weighted average number of common shares outstanding

during each reporting period. Diluted earnings per share is calculated assuming the proceeds from the

exercise of “in-the-money” share-based arrangements are used to purchase common shares at the average

market price during the period.

(r) Accounting for debt and equity investments

As part of the capital funding process for ongoing activities at the Josemaria Project, the Company purchases

debt and equity instruments via a third-party investment broker. The instruments are held for a pre-

determined period and then sold. The Company only purchases equity instruments with high trading

volumes and low volatilities. The instruments are designated as held-for-trading, and as such all changes in

the fair value of the underlying instruments are recognized through the consolidated statement of (loss)

earnings.

Upon receipt of the transferred equity instruments, or in the case of bonds the sale, by the local investment

broker, the Company realizes an immediate foreign exchange impact. This foreign exchange impact is

incurred directly as a result of holding debt and equity instruments with the intention of trading, and as such

the foreign exchange impact is also recognized through the consolidated statement of (loss) earnings in

Other income.

- 15 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

(s) Financial instruments

Financial instruments are recognized on the consolidated balance sheet on the trade date, the date on

which the Company becomes a party to the contractual provisions of the financial instrument. The Company

classifies its financial instruments in the following categories:

Financial Assets at Amortized Cost

Assets that are held for collection of contractual cash flows where those cash flows represent solely

payments of principal and interest are measured at amortized cost. The Company intends to hold these

receivables until cash flows are collected. Receivables are recognized initially at fair value, net of any

transaction costs incurred and subsequently measured at amortized cost using the effective interest

method. The Company recognizes a loss allowance for expected credit losses on a financial asset that is

measured at amortized cost.

Financial Assets at Fair Value through Profit or Loss (“FVTPL”)

Financial assets measured at FVTPL are assets which do not qualify as financial assets at amortized cost or

those not designated in hedge relationships.

Provisionally priced trade receivables are measured at FVTPL as some or all of the cash flows are dependent

on commodity prices. These receivables are initially measured at their transaction price. Subsequent

changes to provisionally priced trade receivables are recorded in the consolidated statement of (loss)

earnings as revenue from other sources.

Marketable securities, equity investments, and derivative assets not designated in hedge relationships are

classified as FVTPL. These financial assets are initially recognized at their fair value with changes to fair

values recognized in the consolidated statement of (loss) earnings.

Financial Liabilities at Amortized Cost

Financial liabilities are measured at amortized cost using the effective interest method, unless they are

required to be measured at FVTPL, or the Company has opted to measure them at FVTPL. Long-term debt is

recognized initially at fair value, net of any transaction costs incurred, and subsequently at amortized cost

using the effective interest method.

Financial Liabilities at FVTPL

Financial liabilities at FVTPL are liabilities which include embedded derivatives and cannot be classified as

amortized cost or derivative liabilities not designated in hedge relationships. Financial liabilities at FVTPL are

initially recognized at fair value with changes to fair values recognized in the consolidated statement of

(loss) earnings.

The Company derecognizes financial assets only when the contractual rights to cash flows from the financial

assets expire, or when it transfers the financial assets and substantially all of the associated risks and

rewards of ownership. Gains and losses on derecognition are generally recognized in the consolidated

statement of (loss) earnings.

The Company derecognizes financial liabilities only when its obligations under the financial liabilities are

discharged, cancelled or expelled. The difference between the carrying amount of the financial liability

derecognized and the consideration paid and payable, including any non-cash assets transferred or liabilities

assumed, is recognized in the consolidated statement of (loss) earnings.

- 16 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

The Company may enter into derivative instruments to mitigate exposures to commodity price and currency

exchange rate fluctuations, among other exposures. Unless the derivative instruments qualify for hedge

accounting, and management undertakes appropriate steps to designate them as such, they are classified as

financial assets or liabilities at FVTPL and recorded at their fair value with realized and unrealized gains or

losses arising from changes in the fair value recorded in the consolidated statement of (loss) earnings in the

period they occur. Fair values for derivative instruments are determined using valuation techniques. The

valuations use assumptions based on prevailing market conditions on the reporting date.

(iii)New standards and interpretations adopted January 1, 2024

Amendments to IAS 1 - Classification of Liabilities as Current or Non-Current

In January 2020, the International Accounting Standards Board ("IASB") issued Classification of Liabilities as

Current or Non-Current (Amendments to IAS 1) providing a more general approach to the classification of

liabilities under IAS 1 based on the contractual arrangements in place at the reporting date. Under pre-existing

requirements, a liability was current if an entity expected to settle it in the normal operating cycle or

unconditional right to defer settlement of the liability for at least twelve months after the reporting period did

not exist. With the introduction of the two amendments to IAS 1 in 2024, for a liability to be classified as non-

current, a company must have the right to defer settlement of the liability for at least twelve months after the

reporting period. The right must have substance and exist at the end of the reporting period, and the

classification of the liability must be unaffected by the likelihood that the company will exercise that right. The

amendments apply retrospectively for annual reporting periods beginning on or after 1 January 2024, with early

application permitted and have been applied with no material impact on the Company in the current reporting

period.

Amendments to IAS 12 - International Tax Reform - Pillar Two Model Rules

In May 2023, the IASB issued amendments to IAS 12 – Income Taxes. The amendments provide an exception to

the requirements regarding the recognition of deferred tax assets and liabilities related to the Pillar Two global

minimum tax rules and were effective immediately. The Company has applied the exception to recognizing and

disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes.

Additionally, the amendments to IAS 12 require disclosure of the Company's current tax expense or income

related to Pillar Two income taxes and disclosure of known or reasonably estimable information regarding the

Company's exposure to Pillar Two income taxes. Among the jurisdictions where the Company operates, Pillar Two

legislation is enacted in Sweden, the Netherlands, Portugal and Canada. On October 3, 2024, Brazil issued a

Provisional Measure introducing Qualified Domestic Minimum Top-Up Tax to be effective from 2025 onwards.

The Company has performed an analysis of the country-by-country reporting (CbCR) safe harbour test, and

concluded that no top-up tax was required in 2024.

(iv)New standards and interpretations not yet adopted

IFRS 18 - Presentation and Disclosure in Financial Statements

In April 2024, the IASB issued IFRS 18 - Presentation and Disclosure in Financial Statements, which replaces IAS 1 -

Presentation of Financial Statements. IFRS 18 introduces a specified structure for the income statement by

requiring income and expenses to be presented into three defined categories (operating, investing, and

financing) and by specifying certain defined totals and subtotals. Where company-specific measures related to

the income statement are provided ("management-defined performance measures"), IFRS 18 requires disclosure

of the explanations around those measures. IFRS 18 also provides additional guidance on principles of

aggregation and disaggregation which apply to the primary financial statements and notes. IFRS 18 will not

impact the recognition and measurement of items in the financial statements, nor will it impact which items are

classified in other comprehensive income and how these items are classified. The standard is effective for

reporting periods beginning on or after January 1, 2027, including for interim financial statements. Retrospective

application is required and early application is permitted. The Company is currently assessing the effect of this

new standard on its financial statements.

- 17 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

IFRS 9 - Financial Instruments and IFRS 7 – Financial Instruments: Disclosures

In May 2024, the IASB issued amendments to the classification and measurement of financial instruments. These

amendments updated classification and measurement requirements in IFRS 9 Financial Instruments and related

disclosure requirements in IFRS 7 Financial Instruments: disclosures. The IASB clarified the recognition and

derecognition date of certain financial assets and liabilities, and amended the requirements related to settling

financial liabilities using an electronic payment system. Moreover, the amendments clarify the assessment of the

contractual cash flow characteristics of financial assets in determining whether they meet the solely payments of

principal and interest (SPPI) criterion, including financial assets that have environmental, social and corporate

governance (ESG)-linked features and other similar contingent features. The IASB added disclosure requirements

for financial instruments with contingent features that do not relate directly to basic lending risks and costs, and

amended disclosures relating to equity instruments designated at fair value through other comprehensive

income.

Additionally in December 2024, the IASB published amendments to IFRS 9 and IFRS 7 - Contracts Referencing

Nature dependent Electricity. The amendments clarify the application of the ‘own-use’ requirements for in-scope

contracts, amend the designation requirements for a hedged item in a cash flow hedging relationship for in-scope

contracts, and add new disclosure requirements.

These amendments apply retrospectively for annual reporting periods beginning on or after 1 January 2026, with

early application permitted. The Company is currently evaluating the impact of these amendments on its

consolidated financial statements.

(v)Estimation uncertainty and judgements in applying the entity’s accounting policies

The preparation of consolidated financial statements in accordance with IFRS Accounting Standards requires the

use of certain critical accounting estimates and judgements. These estimates and judgements are based on

management’s best knowledge of the relevant facts and circumstances taking into account previous experience,

but actual results may differ materially from the amounts included in the financial statements.

Areas where estimation uncertainty have the most significant effect on the amounts recognized in the

consolidated financial statements include:

Depreciation, depletion and amortization of mineral properties, plant and equipment - Mineral properties,

plant and equipment comprise a large component of the Company’s assets and as such, the depreciation,

depletion and amortization of these assets have a significant effect on the Company’s financial statements. Upon

commencement of commercial production, the Company depletes mineral property over the life of the mine

based on the depletion of the mine’s Proven and Probable Mineral Reserves. In the case of mining equipment or

other assets, if the useful life of the asset is shorter than the life of the mine, the asset is amortized over its

expected useful life.

Proven and Probable Mineral Reserves are determined based on a professional evaluation using accepted

international standards for the estimation of Mineral Reserves. The assessment involves geological and

geophysical studies, economic data and the reliance on a number of assumptions. The estimates of the Mineral

Reserves may change based on additional knowledge gained subsequent to the initial assessment. This may

include additional data available from continuing exploration, results from the reconciliation of actual mining

production data against the original Mineral Reserve estimates, or the impact of economic factors such as

changes in the price of commodities or the cost of components of production.

A change in the original estimate of Mineral Reserves would result in a change in the rate of depreciation,

depletion and amortization of the related mineral assets. The effect of a change in the estimates of Mineral

Reserves would have a relatively greater effect on the amortization of the current mining operations at Eagle

because of the relatively short mine life of this operation. A short mine life results in a higher rate of amortization

and depreciation, and mineral assets may exist at these sites that have a useful life in excess of the revised life of

the related mine.

- 18 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

Valuation of long-term inventory - The Company carries its long-term inventory at the lower of production cost

and NRV. If the carrying value exceeds the net realizable amount, a write-down is required. The write-down may

be reversed in a subsequent period if the circumstances which caused it no longer exist.

The Company reviews NRV at least annually. In particular, for the NRV of long-term inventory, the Company

makes significant estimates in its use of a discounted NRV model related to future production plans, forecasted

commodity prices, foreign exchange rates, R&R quantities, future capital and production costs to complete,

estimates of recoverable copper in leach pads, and the discount rate. These estimates are subject to various risks

and uncertainties and may have an effect on the NRV estimate and the carrying value of the long-term inventory.

Valuation of mineral properties - The Company carries its mineral properties at cost less accumulated depletion

and any accumulated provision for impairment. The Company expenses exploration costs which are related to

specific projects until technical feasibility and commercial viability of extracting a mineral resource are

demonstrable. The costs of each property and related capitalized development expenditures are depleted over

the economic life of the property on a unit‐of‐production basis. Costs are charged to the consolidated statement

of (loss) earnings when a property is abandoned or when there is a recognized impairment in value.

The Company undertakes a review of the carrying values of mineral properties and related expenditures

whenever events or changes in circumstances indicate that their carrying values may exceed their estimated net

recoverable amounts determined by reference to estimated future operating results and discounted net cash

flows. An impairment loss is recognized when the carrying value of those assets is not recoverable. Where a

previous impairment has been recorded, the Company analyzes any reverse impairment indicators. Impairment

reversals are recognized in subsequent periods when there has been a change in the estimates used to determine

the asset’s recoverable amount since the last impairment loss was recognized. In undertaking this review,

management of the Company is required to make significant estimates of, amongst other things, future

production and sale volumes, metal prices, foreign exchange rates, R&R quantities, future capital and production

costs and reclamation costs to the end of the mine’s life. These estimates are subject to various risks and

uncertainties which may ultimately have an effect on the expected recoverability of the carrying values of the

mineral properties and related expenditures.

Goodwill - The amount by which the purchase price of a business acquisition exceeds the fair value of identifiable

assets and liabilities acquired is recorded as goodwill. Goodwill is allocated to the CGUs acquired based on the

assessment of which CGU would be expected to benefit from the synergies of the acquisition. Estimates of

recoverable value may be impacted by changes in future metal prices, foreign exchange rates, production based

on estimated quantities of R&R, production and capital expenditures, pricing of in-situ mineral resources implied

by the market value of selected comparable transactions involving the sale of similar companies and mineral

properties, discount rates, and other factors that may be different from those used in determining fair value.

Changes in estimates could have a material impact on the carrying value of the goodwill. Management's

estimates of production based on quantities of R&R are based on information compiled by qualified persons

(management's experts).

Reclamation and other closure provisions - The Company incurs reclamation and other closure costs related to

its mining properties. The future obligations for mine closure activities are estimated by the Company using mine

closure plans or other similar studies which outline the activities to be undertaken to meet regulatory and

internal requirements. Since the obligations are dependent on the laws and regulations of the countries in which

the mines operate, they are regularly reviewed by management and external experts, and could change as a

result of amendments to the laws and regulations. Included in the estimated obligations are a number of

significant assumptions made by management in determining closure provisions. Accordingly, closure provisions

are more uncertain the further into the future the mine closure activities are to be carried out.

- 19 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

The Company’s policy for recording reclamation and other closure provisions is to establish provisions for future

mine closure costs based on the present value of the future cash flows required to satisfy the obligations. This

provision is updated as the estimate for future closure costs change. The amount of the present value of the

provision is added to the cost of the related mineral property and plant & equipment and depreciated over the

life of the mine. The provision is accreted to its future value over the life of mine through a charge to finance

costs.

Areas where accounting policy judgements have the most significant effect on the amounts recognized in the

consolidated financial statements include:

Income taxes - Deferred tax assets and liabilities are determined based on differences between the financial

statement carrying values of assets and liabilities and their respective income tax bases (“temporary differences”)

and losses carried forward.

The determination of the ability of the Company to utilize tax loss carry‐forwards and deductible temporary

differences to offset deferred tax liabilities requires management to exercise judgment and make certain

assumptions about the future performance of the Company. Management is required to assess whether it is

“probable” that the Company will benefit from these prior losses and other deductible temporary differences.

Changes in economic conditions, metal prices and other factors could result in revisions to the estimates of the

benefits to be realized or the timing of utilization of the losses.

Assessment of impairment and reverse impairment indicators - Management applies significant judgement in

assessing whether indicators of impairment or reversal of impairment exist for a CGU which would necessitate

impairment testing. Internal and external factors used by management to determine whether indicators exist

include, but are not limited to, significant changes in the use of the asset, commodity prices, foreign exchange

rates, the Company's market capitalization, capital and production forecasts, R&R quantities, and discount rates.

Contingent liabilities - Contingent liabilities are possible obligations that arise from past events which will be

confirmed by the occurrence or non-occurrence of future events. These contingencies are not recognized in the

consolidated financial statements when the obligation is not probable or if the obligation cannot be measured

reliably. The Company exercises significant judgment when determining the probability of the future outcome

and with regard to any required disclosure of contingencies, and measuring the liability is a significant estimate.

Joint arrangements - The Company is party to an arrangement over which it does not have control. Judgment is

required in determining whether joint control over the arrangement exists and, if so, which parties have joint

control, and whether the arrangement is a joint venture or a joint operation. In assessing whether the Company

has joint control, management analyzes the activities of an arrangement to determine which activities most

significantly affect the returns of the arrangement over its life. If joint control over the arrangement exists, an

assessment of whether the arrangement is a joint venture or a joint operation is required. This assessment is

based on whether the Company retains rights to the assets, and obligations for the liabilities, relating to the

arrangement or the Company only has the rights to the net assets of the arrangement is more applicable. In

making this determination, management reviews the legal form of the arrangement, the terms of the contractual

arrangement, and other facts and circumstances. In a situation where the legal form and the terms of the

contractual arrangement do not give the Company rights to the assets and obligations for the liabilities, an

assessment of other facts and circumstances is required, including whether the activities of the arrangement are

primarily designed for the provision of output to the parties and whether the parties are substantially the only

source of cash flows contributing to the arrangement. Consideration of other facts and circumstances may result

in the conclusion that a joint arrangement is a joint operation. Such conclusions require judgment and are specific

to each arrangement. Other facts and circumstances, such as the right and the obligation to take a share of the

output of the arrangement have led management to conclude the arrangement formed on January 15, 2025 is a

joint operation (Note 4).

- 20 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

3.ASSETS AND LIABILITIES HELD FOR SALE AND DISCONTINUED OPERATIONS

On December 9, 2024, the Company announced that it had entered into a definitive agreement to sell its 100%

interest in the Neves-Corvo Mine and its 100% interest in the Zinkgruvan Mine to Boliden, with the transaction

expected to close in the first half of 2025 ("Definitive Agreement"). The transaction constitutes the sale of all of the

Company's European operating assets allowing the Company to focus on its copper-dominant assets in South America.

Under the terms of the agreement, the Company will receive at least $1.37 billion in upfront cash consideration, which

increases at a rate of 5% per annum from August 31, 2024 up to closing, and is payable to the Company at closing. The

Company may also receive up to $150.0 million in contingent cash consideration if certain metal price thresholds are

met. These include a percentage of incremental revenue realized at the Neves-Corvo Mine in each of the three

calendar years between 2025 and 2027 and at the Zinkgruvan Mine between 2025 and 2026. The upfront

consideration assumes a normalized level of working capital and is subject to customary working capital adjustments.

Following the date of the definitive agreement, on December 9, 2024, the Neves-Corvo Mine and Zinkgruvan Mine

reporting segments met the criteria to be classified as held-for-sale and discontinued operations. The results of these

operations have been restated for the current and comparative years to reclassify the earnings (loss) as earnings (loss)

from discontinued operations. All assets and liabilities relating to the Neves-Corvo and Zinkgruvan reporting segments

have been classified as current assets and current liabilities held for sale at December 31, 2024.

The Company is required to assess for impairment of the CGU's separately immediately prior to reclassifying the

assets held for sale. An impairment charge of $291.2 million ($270.3 million net of tax) was recorded in December

2024 relating to the Neves-Corvo reporting segment to recognize goodwill, mining rights and mineral properties at

their estimated fair value, based on the expected sales price as established by the Definitive Agreement (level 2

measurement). The impairment charge includes $90.7 million allocated to the Neves-Corvo goodwill (Note 11).

The net loss from discontinued operations from the Neves-Corvo reporting segment, which include the results of

operating activities for the years ended December 31, 2024 and 2023, are as follows:


	2024	2023
Revenues	$438,053	$425,042
Production costs	(323,163)	(326,677)
Depreciation, depletion and amortization	(118,324)	(121,599)
General exploration and business development	(2,810)	(7,122)
Finance income	2,961	231
Finance costs	(7,810)	(6,313)
Other (expense) income	(4,829)	2,927
Goodwill and asset impairment	(291,178)	—
Loss before income taxes	(307,100)	(33,511)
Current tax recovery (expense)	829	(3,001)
Deferred tax recovery	27,667	11,691
Net loss	$(278,604)	$(24,821)

- 21 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

The net earnings from discontinued operations from the Zinkgruvan reporting segment, which include the results of

operating activities for the years ended December 31, 2024 and 2023 are as follows:


	2024	2023
Revenues	$256,748	$223,591
Production costs	(122,064)	(115,394)
Depreciation, depletion and amortization	(37,020)	(34,124)
General exploration and business development	(10,033)	(4,560)
Finance income	1,576	27
Finance costs	(6,520)	(5,215)
Other (expense) income	(3,969)	9,818
Earnings before income taxes	78,718	74,143
Current tax expense	(15,450)	(9,983)
Deferred tax recovery (expense)	665	(940)
Net earnings	$63,933	$63,220

As at December 31, 2024, the assets and liabilities that are included in the held for sale categories are summarized

below:


	Neves-Corvo Mine	Zinkgruvan Mine	Total
Assets classified as held-for-sale
Cash and cash equivalents	$23,901	$50,900	$74,801
Trade and other receivables	90,160	22,867	113,027
Income taxes receivable	823	—	823
Inventories	39,689	16,496	56,185
Restricted funds	49,590	—	49,590
Mineral properties, plant and equipment	810,587	284,551	1,095,138
Other non-current assets	—	106	106
	$1,014,750	$374,920	$1,389,670
Liabilities classified as held-for-sale
Trade and other payables	$99,805	$32,357	$132,162
Income taxes payable	—	7,796	7,796
Debt and lease liabilities	15,702	564	16,266
Deferred revenue	25,078	39,227	64,305
Reclamation and other closure provisions	89,852	44,230	134,082
Other long-term liabilities	7,740	127	7,867
Provision for pension obligations	—	4,441	4,441
Deferred tax liabilities	—	26,190	26,190
	$238,177	$154,932	$393,109

- 22 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

4. ACQUISITION OF FILO AND FORMATION OF VICUÑA

On January 15, 2025, the Company, together with BHP Investments Canada Inc. ("BHP"), completed the acquisition of

Filo Corp (“Filo”) through a plan of arrangement (the “Arrangement”). The Company’s share of the consideration for

the Arrangement was $612.4 million (C$877.8 million) in cash and 94.1 million of the Company’s shares to Filo

shareholders, along with its existing 1.7% interest in Filo (prior to completion). BHP's share of the consideration for the

Arrangement was $1.4 billion (C$2.0 billion) in cash, along with its existing 7.0% interest in Filo (prior to completion).

Concurrently, the Company and BHP formed a 50/50 joint arrangement, Vicuña Corp. (the “Joint Arrangement” or

"Vicuña") holding the Filo del Sol project and the Josemaria project. BHP paid the Company a cash consideration of

$690 million for a 50% interest in the Josemaria project.

Commencing in 2025 the Company expects to account for Vicuña as a joint operation, and accordingly will include its

50% share of the respective assets, liabilities, revenue, expenses and cash flows of Vicuña in the consolidated financial

statements of the Company. The Company determined that its interest in the Josemaria project did not meet the

criteria to be classified as held for sale as at December 31, 2024.

5. CASH AND CASH EQUIVALENTS

Cash and cash equivalents are comprised of the following:


	December 31, 2024	December 31, 2023
Cash	$197,189	$197,537
Short-term deposits	160,289	71,256
	$357,478	$268,793

6.TRADE AND OTHER RECEIVABLES

Trade and other receivables are comprised of the following:


	December 31, 2024	December 31, 2023
Trade receivables	$347,820	$643,722
Value added tax	52,959	80,088
Prepaid expenses	42,621	48,901
Other receivables	67,454	56,160
	$510,854	$828,871

The Company does not have any significant balances that are past due nor any significant expected credit losses. The

Company's credit risk is discussed in Note 30.

The carrying amounts of trade and other receivables are mainly denominated as follows:


Currency	December 31, 2024	December 31, 2023
USD1	365,006	678,680
CLP	93,826,669	77,982,061
CAD	37,788	22,423
EUR1	8	22,924
SEK1	100,011	114,144
BRL	94,581	34,538
ARS	621,565	341,180

1 As at December 31, 2024, trade and other receivables denominated in the foreign currencies held at discontinued operations have been classified

as assets held for sale.

- 23 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

7.INVENTORIES

Inventories are comprised of the following:


	December 31, 2024	December 31, 2023
Materials and supplies	$279,446	$313,966
Ore stockpiles and dump leach	188,812	207,602
Finished goods - concentrate stockpiles	116,567	72,515
Finished goods - copper cathode	5,860	5,324
	$590,685	$599,407

Long-term inventories are comprised of the following:


	December 31, 2024	December 31, 2023
Ore stockpiles at Candelaria	$480,885	$427,075
Ore stockpiles at Chapada	299,899	270,570
Dump leach at Caserones	91,101	99,952
	$871,885	$797,597

As at December 31, 2024, as a result of higher market expectations for long-term copper and gold prices, the Company

recognized a partial reversal of $28.3 million of previous net realizable value write-downs of the long-term ore stockpile

at Chapada (December 31, 2023 - $nil), $1.7 million of the reversal is included in depreciation, depletion and

amortization (December 31, 2023 - $nil).

8.MARKETABLE SECURITIES

Pursuant to the terms of the Arrangement, in August 2024 the Company subscribed for 1,742,424 Filo shares at a price

of C$33.00 per share. As at December 31, 2024, the Company held 2,264,924 Filo shares with a fair value of the

securities held for trading purposes of $50.1 million (December 31, 2023 - $nil). Subsequent to December 31, 2024, the

Company announced the completion of the Arrangement and the formation of Vicuña (Note 4).

9.OTHER NON-CURRENT ASSETS

Other non-current assets are comprised of the following:


	December 31, 2024	December 31, 2023
Marketable securities, non-current portion	$9,955	$14,268
Caserones purchase option (a)	—	44,438
Other	8,427	8,384
	$18,382	$67,090

a) Pursuant to the terms of the purchase agreement to acquire 51% of Lumina Copper, the Company in July 2024

exercised its right to purchase an additional 19% interest in the Caserones mine for $350.0 million ("Caserones

Purchase Option"). Prior to exercise on July 2, 2024, the Caserones Purchase Option was recorded at fair value

with changes in fair value recorded in Other Income and Expense. Following the exercise, the Caserones

Purchase Option was derecognized with a corresponding reduction of $52.7 million to retained earnings.

- 24 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

10.MINERAL PROPERTIES, PLANT AND EQUIPMENT

Mineral properties, plant and equipment are comprised of the following:


Cost	Mineral properties	Plant and equipment	Assets under construction1	Development project2	Software intangible assets	Total
As at December 31, 2022	$5,546,923	$3,752,177	$236,056	$876,419	$32,626	$10,444,201
Caserones acquisition	—	1,243,432	94,110	—	—	1,337,542
Additions	280,100	96,281	406,540	253,648	82	1,036,651
Disposals	—	(82,632)	(843)	—	(323)	(83,798)
Transfers	117,462	260,712	(409,084)	—	30,910	—
Effects of foreign exchange	70,269	38,027	3,482	—	274	112,052
As at December 31, 2023	6,014,754	5,307,997	330,261	1,130,067	63,569	12,846,648
Additions	239,220	100,009	367,924	265,500	712	973,365
Impairment (Note 11)	(331,231)	(111,710)	(1,066)	—	—	(444,007)
Write-downs	—	—	(4,110)	(18,019)	—	(22,129)
Disposals	—	(91,513)	—	—	—	(91,513)
Transfers	68,593	285,636	(355,823)	—	1,594	—
Effects of foreign exchange	(134,367)	(72,804)	(6,299)	—	(527)	(213,997)
Reclassification to assets held for sale (Note 3)	(1,720,451)	(1,009,154)	(79,266)	—	(7,220)	(2,816,091)
As at December 31, 2024	$4,136,518	$4,408,461	$251,621	$1,377,548	$58,128	$10,232,276


Accumulated depreciation, depletion and amortization	Mineral properties	Plant and equipment	Assets under construction1	Development project2	Software intangible assets	Total
As at December 31, 2022	$2,835,431	$1,621,439	$—	$—	$11,645	$4,468,515
Depreciation	313,900	346,669	—	—	5,270	665,839
Disposals	—	(74,790)	—	—	—	(74,790)
Effects of foreign exchange	44,744	17,063	—	—	108	61,915
As at December 31, 2023	3,194,075	1,910,381	—	—	17,023	5,121,479
Depreciation	368,178	419,642	—	—	9,313	797,133
Disposals	—	(85,235)	—	—	—	(85,235)
Effects of foreign exchange	(88,218)	(36,304)	—	—	(260)	(124,782)
Reclassification to assets held for sale (Note 3)	(1,187,574)	(530,038)	—	—	(3,341)	(1,720,953)
As at December 31, 2024	$2,286,461	$1,678,446	$—	$—	$22,735	$3,987,642


Net book value	Mineral properties	Plant and equipment	Assets under construction1	Development project2	Software intangible assets	Total
As at December 31, 2023	$2,820,679	$3,397,616	$330,261	$1,130,067	$46,546	$7,725,169
As at December 31, 2024	$1,850,057	$2,730,015	$251,621	$1,377,548	$35,393	$6,244,634
¹ Represent assets under construction at the Company's operating mine sites which are currently non-depreciable.
2 Assets relate to the Josemaria Project which are currently non-depreciable.

- 25 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

The Company completed the Caserones acquisition on July 13, 2023, acquiring $1,337.5 million of plant and

equipment and assets under construction during the year ended December 31, 2023.

During the year ended December 31, 2024, the Company capitalized $37.4 million (December 31, 2023 - $20.4 million)

of finance costs to the Josemaria Project at a weighted average interest rate of 6.0% (December 31, 2023 - 6.2%).

During the year ended December 31, 2024, the Company capitalized $226.2 million (December 31, 2023 - $222.4

million) of deferred stripping costs to mineral properties. The depreciation expense related to deferred stripping for

the year was $187.0 million (December 31, 2023 - $109.0 million). Included in the mineral properties balance at

December 31, 2024 is $436.3 million (December 31, 2023 - $277.5 million) related to deferred stripping at Candelaria

and Caserones, which is currently non-depreciable.

The Company leases various assets including power line infrastructure, buildings and storage facilities, rail cars,

vehicles, machinery and equipment. The following table summarizes the changes in right-of-use assets within plant

and equipment:


		Net book value
	As at December 31, 2022	$27,923
	Caserones acquisition	257,655
	Additions	54,809
	Depreciation	(51,391)
	Disposals	(5,363)
	Effects of foreign exchange	364
	As at December 31, 2023	283,997
	Additions	70,844
	Depreciation	(76,449)
	Disposals	(2,672)
	Effects of foreign exchange	(258)
	Reclassification to assets held for sale (Note 3)	(16,141)
	As at December 31, 2024	$259,321

11. GOODWILL AND ASSET IMPAIRMENT

a) Goodwill

The Company recognized goodwill on the acquisition of Chapada, Neves-Corvo, and Ojos del Salado (“Ojos”). Goodwill

is allocated to the following CGUs:


	Chapada	Neves-Corvo	Ojos¹	Total
Balance at December 31, 2022	$134,284	$92,297	$10,713	$237,294
Additions	—	—	—	—
Impairment charges	—	—	—	—
Effects of foreign exchange	—	3,322	—	3,322
Balance at December 31, 2023	134,284	95,619	10,713	240,616
Effects of foreign exchange	—	(4,942)	—	(4,942)
Impairment charges (Note 3)	—	(90,677)	(10,713)	(101,390)
Balance at December 31, 2024	$134,284	$—	$—	$134,284
¹ Ojos is included in the Candelaria reporting segment.

- 26 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

The Company performs an impairment assessment annually, or more frequently if there are impairment indicators, for

the carrying amount of its CGUs where goodwill is allocated.

The recoverable value of a CGU is determined using the FVLCD method applied by using a discounted cash flow model

based on life-of-mine financial plans, and a market-based approach. Significant assumptions used by management to

determine the recoverable amount include future metal prices, production based on estimated quantities of R&R,

production and capital expenditures, foreign exchange rates, pricing of in-situ mineral resources implied by the market

value of selected comparable transactions involving the sale of similar companies and mineral properties, and discount

rates.

For the 2024 assessment, future metal prices and foreign exchange rates used in the discounted cash flow models are

based on market consensus estimates observed during the fourth quarter of 2024. The valuation of recoverable

amount is most sensitive to changes in metal prices, exchange rates, discount rates and pricing of in-situ mineral

resources.

Production costs and capital expenditures included in the discounted cash flow models are based on operating plans

which consider past and estimated future performance.

Inputs utilized in the discounted cash flow models were based on level 3 fair value measurements (Note 26), which

were not based on observable market data. The R&R were based on the Company’s last published estimate dated

December 31, 2024. Incorporated in the FVLCD are fair value estimates developed by the Company for mineral

resources not captured in the cash flow projections model. These estimates are valued using third-party market

information, which includes pricing of in-situ mineral resources implied by the market value of selected comparable

transactions involving the sale of similar companies and mineral properties.

Chapada

For the Chapada CGU impairment review, the Company used a FVLCD model (level 3 measurement). For the years

ended December 31, 2024 and 2023, the Company determined that the recoverable amount of the Chapada CGU was

higher than its carrying value, and therefore no impairment was recognized. Management applied significant judgment

in estimating the recoverable amount of the Chapada CGU.

Sensitivity analysis was performed on the cash flow model for Chapada. At December 31, 2024, the discount rate

(+/-1%) did not have a material impact on the result of the Company’s goodwill impairment assessment. Changes in

key inputs such as a 5% weaker foreign exchange rate or 5% lower copper and gold prices would result in impairment.

Key assumptions for Chapada


	2024	2023
Copper price $/lb	4.30 - 4.70	3.80 - 4.20
Gold price $/oz	2,150 - 2,575	1,750 - 2,000
After-tax discount rate	7.5%	7.5%
BRL/$ exchange rate	5.50	5.00
Life of mine	26 years	28 years

Ojos

In January 2025 the Company received a notice from the Superintendencia del Medio Ambiente (“SMA”), following its

investigative proceedings involving the sinkhole that occurred at the Alcaparrosa mine in 2022. The Alcaparrosa mine

is included in the Ojos CGU. The notice levies a fine of $3.3 million and orders the continued closure of the Alcaparrosa

mine, at which mining operations have been suspended since the incident occurred in 2022 (Note 27(d)). As a result,

an impairment charge of $55.9 million ($41.6 million net of tax) was recorded in December 2024 relating to the Ojos

CGU to write off goodwill and the remaining carrying values of underground development and mine infrastructure.

The impairment charge includes $10.7 million allocated to the Ojos goodwill.

- 27 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

b) Other Asset Impairment

Eagle

At every reporting period, the Company assesses whether there is an indication that an asset or group of assets may

be impaired. When impairment indicators exist, the Company estimates the recoverable amount of the asset and

compares it against the asset's carrying amount.

During the fourth quarter of 2024, factors including a decline in nickel prices and prolonged rehabilitation of the Eagle

East ramp were identified as an impairment indicator for the Eagle mine.

For the Eagle mine CGU impairment review, the Company used a FVLCD model (level 3 measurement). As the

recoverable amount determined for the CGU was lower than the carrying value, an impairment of $104.9 million

($82.8 million net of tax) was recorded to reduce the carrying value of underground development, plant and other

infrastructure to its recoverable value.

Key assumptions for Eagle Mine


	2024
Nickel price $/lb	8.50-9.00
Copper price $/lb	4.30-4.70
After-tax discount rate	9.0%
Life of mine	5 years

Suruca

In February 2025, the Company removed the Suruca gold deposit from Mineral Reserves as development is not

contemplated in the current life-of-mine plan. The Suruca gold deposit is included in the Chapada segment. This was

considered an indicator of impairment for the Suruca mineral property asset. An impairment of $93.4 million ($61.7

million net of tax) was recorded in earnings in December 2024 to reduce the carrying value of the mineral property

asset to nil.

12.TRADE AND OTHER PAYABLES

Trade and other payables are comprised of the following:


	December 31, 2024	December 31, 2023
Trade payables	$297,687	$393,829
Unbilled goods and services	175,152	176,444
Employee benefits payable	68,801	114,514
Prepayment from customers	45,027	21,963
Royalties payable	24,548	23,773
Sinkhole provision1	16,918	29,827
Automatic share purchase plan commitment (Note 17)	3,714	—
Pricing provisions on concentrate sales2	15,541	13,201
Deferred consideration, current portion3	10,000	10,000
Other	16,816	22,212
	$674,204	$805,763
1 Relates to expected remediation costs and potential fines directly related to the sinkhole near the Company's Ojos del Salado operations.
2 Includes balances owing to customers and provisions arising from forward market price adjustments.
3 Relates to the current portion of the remaining deferred cash consideration arising from the Caserones acquisition, payable in installments over the next five years.

- 28 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

13.DEBT AND LEASE LIABILITIES

Debt and lease liabilities are comprised of the following:


	December 31, 2024	December 31, 2023
Revolving credit facility (a)	$264,659	$245,084
Term loan (b)	1,147,685	798,542
Candelaria and Chapada term loans (c)	245,932	48,850
Lease liabilities (d)	249,185	277,208
Commercial paper (e)	98,696	116,025
Line of credit	—	99
Debt and lease liabilities	2,006,157	1,485,808
Less: current portion	395,232	212,646
Long-term portion	$1,610,925	$1,273,162

The changes in debt and lease liabilities are comprised of the following:


	Leases	Debt	Total
As at December 31, 2022	$27,166	$170,162	$197,328
Caserones acquisition	257,655	—	257,655
Additions	54,392	2,490,597	2,544,989
Payments	(59,841)	(1,451,804)	(1,511,645)
Disposals	(6,221)	—	(6,221)
Interest	12,521	—	12,521
Financing fee amortization	—	846	846
Deferred financing fee	—	(2,950)	(2,950)
Effects of foreign exchange	(8,464)	1,749	(6,715)
As at December 31, 2023	277,208	1,208,600	1,485,808
Additions	69,881	1,500,551	1,570,432
Payments	(93,461)	(944,428)	(1,037,889)
Disposals	(2,028)	—	(2,028)
Interest	24,053	—	24,053
Financing fee amortization	—	2,360	2,360
Deferred financing fee	—	(3,643)	(3,643)
Reclassified to liabilities held for sale (Note 3)	(16,266)	—	(16,266)
Effects of foreign exchange	(10,202)	(6,468)	(16,670)
As at December 31, 2024	249,185	1,756,972	2,006,157
Less: current portion	50,604	344,628	395,232
Long-term portion	$198,581	$1,412,344	$1,610,925

- 29 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

a)The Company has a revolving credit facility of $1,750.0 million. On April 26, 2024, the credit facility, which

originally matured in April 2028, was amended and extended to April 2029. The credit facility bears interest on

drawn funds at rates of Term Secured Overnight Financing Rate (“Term SOFR”) plus Credit Spread Adjustment

(“CSA”) of 0.10% plus an applicable margin of 1.45% to 2.50%, depending on the Company’s net leverage ratio.

The revolving credit facility is unsecured, save and except for a charge over certain assets in the USA, and is

subject to customary covenants. During the year ended December 31, 2024, the Company drew down $ 340.0

million (December 31, 2023 - $1.21 billion), and repaid $320.0 million (December 31, 2023 - $977.0 million). As

at December 31, 2024, a principal balance of $270.0 million (December 31, 2023 - $250.0 million) was

outstanding, with unamortized deferred financing fees of $5.3 million (December 31, 2023 - $4.9 million) netted

against borrowings.

b) In July 2023, the Company obtained a term loan of a principal amount of $800.0 million with an additional

$400.0 million accordion, maturing July 2026. On April 26, 2024, the Company amended the terms to extend

maturity to July 2027. The term loan bears interest at an annual rate equal to Term SOFR + CSA + an applicable

margin of 1.60% to 2.65%, depending on the Company’s net leverage ratio. Principal is payable at maturity. The

term loan is unsecured, save and except for a charge over certain assets in the USA, and has similar covenants

to the Company’s existing $1,750.0 million revolving credit facility. In August 2024 the Company exercised the

accordion option and drew down an additional $350.0 million. As at December 31, 2024, a principal balance of

$1,150.0 million (December 31, 2023 - $800.0 million) was outstanding, with unamortized deferred financing

fees of $2.3 million (December 31, 2023 - $1.5 million) netted against borrowings.

c)Compañia Contractual Minera Candelaria S.A. ("Candelaria Mine"), a subsidiary owned 80% by the Company

which owns the Candelaria mine, obtained a series of unsecured fixed term loans during the year ended

December 31, 2024 totalling $215.0 million (December 31, 2023 - $nil). Candelaria Mine repaid $115.0 million

of the outstanding loans during the year ended December 31, 2024 (December 31, 2023 - 50.0 million). As at

December 31, 2024, there were two term loans outstanding at Candelaria Mine totalling $100.0 million

(December 31, 2023 - $nil). The outstanding term loans accrue interest at rates ranging from 5.07% to 5.30%

per annum with interest payable upon maturity, for which $50 million matures in February 2025 and the

remaining $50 million matures in May 2025.

Mineração Maracá Indústria e Comércio S.A. (“Chapada”), a subsidiary of the Company which owns the

Chapada mine, obtained a series of unsecured fixed term loans during the year ended December 31, 2024

totalling $324.2 million (December 31, 2023 - $205.7 million). Chapada repaid $227.1 million of the outstanding

term loans during the year ended December 31, 2024 (December 31, 2023 - $234.3 million). As at December 31,

2024, there were 41 term loans outstanding at Chapada totalling $145.9 million (December 31, 2023 - 16 term

loans totalling $48.9 million). These outstanding term loans accrue interest at rates ranging from 5.66% to

6.32% per annum with interest payable upon maturity. The maturity dates range from January to May 2025.

d)Lease liabilities relate to leases on power line infrastructure, buildings and storage facilities, rail cars, vehicles,

machinery and equipment which have remaining lease terms of one to thirteen years and interest rates of 1.0%

- 10.0% over the terms of the leases.

Certain leases relating to mine development, exploration, production and transportation equipment contain

variable lease expenses based on tonnage or drilling metres. Variable lease expense for the year ended

December 31, 2024 was $113.7 million (December 31, 2023 - $111.7 million). The Company has short-term

leases related to mining equipment and office space. Short-term lease expense for the period ended December

31, 2024 was $27.9 million (December 31, 2023 - $27.3 million).

e)Neves-Corvo entered into three unsecured commercial paper programs during 2022 and 2023. Total borrowing

capacity available is €115.0 million collectively, with maturities ranging from May 2025 to July 2028. The

commercial papers bear interest on drawn funds at rates of EURIBOR plus an applicable margin of 0.30% to

0.50% .

- 30 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

During the year ended December 31, 2024, Neves-Corvo drew down $271.3 million (€250.0 million) from the

commercial paper programs (December 31, 2023 - $275.9 million (€255.0 million)) and repaid $282.2 million

(€260.0 million) (December 31, 2023 - $188.2 million (€175.0 million)).

As at December 31, 2024, a principal balance of $98.7 million (€95.0 million) (December 31, 2023 - $116.0

million (€105.0 million)) was outstanding and pursuant to the terms of the Definitive Agreement have not been

classified as held for sale.

The schedule of undiscounted lease payment and debt obligations is as follows:


	Leases	Debt	Total
Less than one year	$68,649	$344,628	$413,277
One to five years	164,309	1,420,000	1,584,309
More than five years	133,842	—	133,842
Total undiscounted obligations as at December 31, 2024	$366,800	$1,764,628	$2,131,428
Related to continuing operations	$348,042	$1,764,628	$2,112,670
Related to discontinued operations	$18,758	$—	$18,758

14.DEFERRED REVENUE

The following table summarizes the changes in deferred revenue:


	As at December 31, 2022	$654,106
	Recognition of revenue	(72,743)
	Variable consideration adjustment	3,018
	Finance costs	36,004
	Effects of foreign exchange	2,845
	As at December 31, 2023	623,230
	Recognition of revenue	(78,267)
	Variable consideration adjustment	(1,550)
	Finance costs	34,331
	Reclassified to liabilities held for sale (Note 3)	(64,305)
	Effects of foreign exchange	(5,702)
	As at December 31, 2024	507,737
	Less: current portion	60,604
	Long-term portion	$447,133

Consideration received under the Company’s gold, silver and copper streaming agreements is deemed to be variable

and can be subject to cumulative adjustments when the contractual volume to be delivered changes. As a result of

changes to the Company’s R&R, adjustments have been made to the deferred revenue liability for 2023 and 2024

which were recognized through revenue and finance costs.

For the year ended December 31, 2024, the Company recognized finance costs at a weighted average rate of 5.5%

(2023 - 5.5%) on the deferred revenue balances.

- 31 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

a) Candelaria

The Company entered into a stream agreement with Franco-Nevada Corporation (“FN”), whereby the Company

has agreed to sell 68% of all the gold and silver contained in production from Candelaria until 720,000 Ounces

("oz") of gold and 12 million oz of silver have been delivered. Thereafter, FN will be entitled to purchase 40% of the

gold and silver production from Candelaria. The Company received an up-front payment of $648 million which is

being recognized as gold and silver are delivered to FN under the contract.

For each ounce of gold and silver delivered, FN makes payments equal to the lesser of the prevailing market prices

and approximately $429/oz of gold and $4.28/oz of silver (2023 - $425/oz of gold and $4.24/oz of silver), subject to

a 1% annual inflationary adjustment. In 2024, approximately 59,000 oz of gold and 1,225,000 oz of silver (2023 -

approximately 56,000 oz of gold and 889,000 oz of silver) were subject to the terms of the streaming agreement.

As at December 31, 2024, approximately 603,000 oz of gold and 9,991,000 oz of silver have cumulatively been

subject to the terms of the streaming agreement (2023 - 543,000 oz of gold and 8,765,000 oz of silver).

The deferred revenue balance as at December 31, 2024 at Candelaria is $368.0 million (December 31, 2023 -

$409.7 million).

b) Chapada Mine

The Company assumed the following streaming agreements with Sandstorm Gold Ltd. (“Sandstorm”) and Altius

Minerals Corporation (“Altius”) when the Chapada mine was acquired:

Sandstorm is entitled to purchase the lesser of 3.9 million pounds (“Mlbs”) or 4.2% of the payable copper produced

annually from Chapada at 30% of the market price. The percentage of payable copper is subject to two reduction

thresholds. Once an aggregate of 39 Mlbs has been delivered, the percentage of payable copper reduces to 3.0%.

Upon delivery of 50 Mlbs of copper in aggregate, the percentage of payable copper reduces to 1.5% for the

remaining life of mine. In 2024, approximately 3.6 Mlbs (2023 – 3.5 Mlbs) were delivered under this agreement. As

at December 31, 2024, approximately 33.2 Mlbs (2023 - 29.6 Mlbs) have cumulatively been delivered under this

agreement.

Altius is entitled to purchase 3.7% of the payable copper produced from Chapada at 30% of the market price. The

percentage of payable copper is subject to two reduction thresholds. In the event of a specified expansion at

Chapada, the percentage of payable copper reduces to 2.65%. Also, upon delivery of 75 Mlbs of copper in

aggregate, the percentage of payable copper reduces to 1.5% for the remaining life of mine. In 2024,

approximately 3.3 Mlbs (2023 – 3.4 Mlbs) were delivered under this agreement. As at December 31, 2024,

approximately 33.3 Mlbs (2023 - 30.0 Mlbs) have cumulatively been delivered under this agreement.

The deferred revenue balance as at December 31, 2024 at Chapada is $139.7 million (December 31, 2023 - $146.2

million).

c) Assets Held for Sale and Discontinued Operations

The Neves-Corvo Mine and Zinkgruvan Mine each have an agreement to deliver all of the silver contained in

concentrate produced to Wheaton Precious Metals Corporation (“Wheaton”). Each received an up-front payment

which was deferred and is being recognized in revenue as silver is delivered under the contracts. The assets held

for sale and discontinued operations receive the lesser of a fixed payment (subject to annual inflationary

adjustments) and the market price per ounce of silver. During 2024, Neves-Corvo Mine received approximately

$4.50/oz of silver (2023 - $4.46/oz). The agreement extends to the earlier of September 2057 and the end of mine

life. An aggregate total of approximately 11.5 million oz has been delivered since the inception of the contract.

During 2024, Zinkgruvan Mine received approximately $4.68/oz of silver (2023 - $4.60/oz). The agreement includes

a guaranteed minimum delivery of 40.0 million oz of silver over an initial 25 year term. If at the end of the initial

term the Company has not met its minimum obligation, it must pay $1.00 for each ounce of silver not delivered. An

aggregate total of approximately 35.1 million oz has been delivered since the inception of the contract in 2004.

- 32 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

As at December 31, 2024, Neves-Corvo Mine and Zinkgruvan Mine met the criteria to be classified as held for sale

and discontinued operations (Note 3). The deferred revenue balance as at December 31, 2024 related to assets

held for sale and discontinued operations is $64.3 million (December 31, 2023 - $67.4 million).

15.RECLAMATION AND OTHER CLOSURE PROVISIONS

Reclamation and other closure provisions relating to the Company's mining operations are as follows:


	Reclamation provisions	Other closure provisions	Total
Balance, December 31, 2022	$401,020	$44,828	$445,848
Acquisition of Caserones	92,440	—	92,440
Accretion	23,169	—	23,169
Changes in estimate	(30,507)	5,572	(24,935)
Changes in discount rate	14,584	—	14,584
Payments	(8,842)	(1,649)	(10,491)
Effects of foreign exchange	5,281	(1,720)	3,561
Balance, December 31, 2023	497,145	47,031	544,176
Accretion	25,528	—	25,528
Changes in estimate	(31,362)	6,740	(24,622)
Changes in discount rate	(34,056)	—	(34,056)
Payments	(11,672)	(6,046)	(17,718)
Reclassification to liabilities held for sale (Note 3)	(125,490)	(8,592)	(134,082)
Effects of foreign exchange	(9,748)	(5,292)	(15,040)
Balance, December 31, 2024	310,345	33,841	344,186
Less: current portion	16,125	4,751	20,876
Long-term portion	$294,220	$29,090	$323,310

The Company expects these liabilities to be settled between 2025 and 2110. The reclamation provisions on continuing

operations are discounted using current market pre-tax discount rates which range from 4.3% to 14.4% ( 2023 - 2.0% to

10.4%)

Reclamation and other closure provisions related to discontinued operations are discounted between 2.3% and 2.8%

(2023 - 2.0% and 2.8%) and are expected to be settled between 2025 and 2062. As at December 31, 2024, the

reclamation and closure provision balance related to discontinued operations is $134.1 million.

- 33 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

16. DEFERRED CONSIDERATION AND OTHER LONG-TERM LIABILITIES

Deferred consideration and other long-term liabilities are comprised of the following:


	December 31, 2024	December 31, 2023
Deferred consideration, non-current portion	$102,833	$106,210
Other	25,950	26,989
	$128,783	$133,199

Deferred consideration represents the non-current portion of the remaining cash consideration for the acquisition of

51% of Lumina Copper, completed July 13, 2023. The deferred consideration is payable in installments as follows:

$50.0 million to be paid in five installments of $10.0 million on the anniversary of the transaction closing date in each

of 2024, 2025, 2026, 2027, and 2028; and $100 million to be paid on the anniversary of the closing date in 2029. The

Company paid the first $10.0 million installment in July 2024.

17.SHARE CAPITAL

(a) Authorized and issued shares

Authorized share capital consists of an unlimited number of voting common shares with no par value. As at

December 31, 2024, there were 774,102,971 fully paid voting common shares issued (2023 - 773,667,789 shares).

(b) Share units

The Company has a Share Unit Plan (“SU Plan”) which provides for share unit awards (“SUs”) to be granted by the

Board of Directors to certain employees of the Company. The maximum number of SUs that are issuable under

the SU Plan is 14,000,000. A SU is a unit representing the right to receive one common share (subject to

adjustments) issued from treasury.

The number and terms of SUs awarded will be determined by the Board of Directors based on the closing market

price on the TSX of the Company’s common shares on the date of the grant. The Company uses the fair value

method of accounting for the recording of SU grants to employees and officers.

i) Time-vesting SUs

During 2024, the Company granted 624,250 time-vesting SUs to employees and officers that expire in 2027.

These SUs vest three years from the grant date with the number of SUs being fixed, and with no vesting

conditions other than service. The fair value of the time-vesting SUs are based on the market value of the

shares on the date of the grant and an estimated forfeiture rate of approximately 11% (2023 - 11%). The

weighted average fair value per time-vesting SU granted during 2024 was C$10.71 (2023 - C$8.23). The

Company incurred share-based compensation related expenditures of $2.9 million for 2024 (2023 - $2.9

million) with a corresponding credit to contributed surplus related to time-vesting SUs. As at December 31,

2024, there was $4.3 million (2023 - $3.8 million) of unamortized stock-based compensation expense

related to time-vesting SUs.

ii) Performance-vesting SUs

During 2024, the Company granted 417,200 performance-vesting SUs to officers that expire in 2027. These

SUs vest three years from the grant date with the number of SUs being variable, which can range from zero

to 834,400 contingent upon achieving predetermined performance criteria related to the Company's share

price over the three-year period. The fair value of the performance-vesting SUs are based on a Monte Carlo

model and an estimated forfeiture rate of approximately 11% (2023 - 11%). The weighted average fair value

per performance-vesting SU granted during 2024 was C$10.71 (2023 - C$7.94). The Company incurred

share-based compensation related expenditures of $2.0 million for 2024 (2023 - $1.3 million) with a

- 34 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

corresponding credit to contributed surplus related to performance-vesting SUs. As at December 31, 2024,

there was $3.2 million (2023 - $2.7 million) of unamortized stock-based compensation expense related to

performance-vesting SUs.

During 2024, 318,679 common shares (2023 - 722,822) were issued as a result of SUs being vested.

The Company’s Stock Option Plan provides for stock option awards to be granted by the Board of Directors to

certain employees of the Company. The term of any stock options granted under the Stock Option Plan may not

exceed seven years from the date of grant. The maximum number of stock options that are issuable under the

Stock Option Plan is 42,000,000. The vesting requirements are established by the Board of Directors.

The Company uses the fair value method of accounting for the recording of stock options. Under this method, the

Company incurred share-based compensation related expenditures of $1.4 million for 2024 (2023 - $3.6 million)

with a corresponding credit to contributed surplus.

During 2024, the Company granted 1,498,160 stock options to employees and officers that expire in 2031. The

stock options vest over three years from the grant date. The Black-Scholes option pricing model used to

determine the fair value of the stock options at the date of the grant assumed a dividend of $0.36/share, risk-free

interest rate of 2.29% to 3.70% (2023 - 3.09% to 3.96%), expected life of 4.7 years (2023 - 4.4 years) and expected

price volatility of 46% to 48% (2023 - 47% to 48%). Volatility is determined using the historical daily volatility over

the expected life of the options. A forfeiture rate of approximately 11% was applied (2023 - 11%). The weighted

average fair value per stock option granted during 2024 was C$2.24 (2023 - C$2.51). As at December 31, 2024,

there was $0.5 million of unamortized stock-based compensation expense (2023 - $1.9 million) related to stock

options.

During 2024, 2,822,650 and 109,077 common shares were issued as a result of stock options and replacement

options, respectively, being exercised (2023 - 2,044,059 and 154,377).

The continuity of share-based payments outstanding is as follows:


	Number of SUs	Number of Replacement options1	Weighted average exercise price (C$)	Number of options	Weighted average exercise price (C$)
Outstanding, December 31, 2022	1,313,056	435,231	5.09	6,458,997	10.08
Granted	1,380,803	—	—	1,918,733	8.06
Forfeited	(150,096)	—	—	(824,869)	11.53
Exercised	(722,822)	(154,377)	5.42	(2,044,059)	7.04
Outstanding, December 31, 2023	1,820,941	280,854	4.91	5,508,802	10.29
Granted	1,041,450	—	—	1,498,160	10.71
Forfeited	(97,683)	(10,189)	5.86	(422,539)	12.51
Exercised	(318,679)	(109,077)	4.84	(2,822,650)	9.95
Outstanding, December 31, 2024	2,446,029	161,588	4.90	3,761,773	10.46
1 During 2022, the Company issued 2,513,866 replacement options upon completion of the Josemaria Resources Inc. acquisition.

- 35 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

The following table summarizes options outstanding as at December 31, 2024:


	Outstanding Options			Exercisable Options
Range of exercise prices (C$)	Number of Options Outstanding1	Weighted Average Remaining Contractual Life (Years)	Weighted Average Exercise Price (C$)	Number of Options Exercisable1	Weighted Average Remaining Contractual Life (Years)	Weighted Average Exercise Price (C$)
4 to 6.99	161,588	0.8	4.89	161,588	0.8	4.89
7 to 9.99	1,275,216	4.8	7.96	243,426	3.4	7.79
10 to 12.99	2,030,957	5.5	10.94	271,705	3.7	11.53
13 to 15.99	455,600	2.2	14.95	455,600	2.2	14.95
	3,923,361	4.7	10.19	1,132,319	2.6	11.15
1 Includes Replacement options

(d)Deferred share units

During the year ended December 31, 2023, the Company adopted a Deferred Share Unit ("DSU") Plan effective

January 1, 2024 under which DSUs are granted by the Board of Directors quarterly to eligible non-employee

Directors. During 2024, 33,076 (2023 - nil) DSUs were granted, and 9,455 (2023, nil) DSUs were forfeited under

the plan. As at December 31, 2024, there were 23,621 DSUs outstanding (2023 - nil).

(e) Basic and diluted weighted average number of shares outstanding


	December 31, 2024	December 31, 2023
Basic weighted average number of shares outstanding	774,825,230	772,532,260
Effect of dilutive securities	2,743,811	760,635
Diluted weighted average number of shares outstanding	777,569,041	773,292,895
Antidilutive securities	705,931	137,900

The effect of dilutive securities relates to in-the-money outstanding stock options and SUs.

(f)Dividends

The Company declared dividends in the amount of $203.0 million (2023 - $206.1 million), or C$0.36 per share, for

the year ended December 31, 2024 (2023 - C$0.36 per share).

(g)Normal course issuer bid

In December 2023, the Company obtained approval from the TSX for the renewal of its normal course issuer bid

("NCIB") to purchase up to 52,538,870 common shares between December 11, 2023 and December 10, 2024.

Daily purchases (other than pursuant to a block purchase exemption) on the TSX under the NCIB were limited to

a maximum of 564,097 common shares. In connection with the NCIB renewal, the Company entered into an

automatic share purchase plan (“ASPP”) with its broker to allow for the purchase of common shares at times

when the Company ordinarily would not be active in the market due to trading blackout periods, insider trading

rules or otherwise.

In December 2024, the Company obtained approval from the TSX for the renewal of its NCIB to purchase up to

57,597,388 common shares between December 16, 2024 and December 15, 2025. Daily purchases (other than

pursuant to a block purchase exemption) on the TSX under the NCIB are limited to a maximum of 560,989

common shares. In connection with the NCIB renewal, the Company entered into an ASPP with its broker under

the same terms as the ASPP entered in December 2023.

- 36 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

During the year ended December 31, 2024, 2,815,200 shares were purchased under the NCIB at an average price

of C$12.33 per share for total consideration of $24.4 million. All of the common shares purchased were

cancelled. As at December 31, 2024, the Company recorded an accrual of $3.7 million in trade and other payables

due to the timing of settlement of the repurchase of 429,800 shares that on the last trading day of the year which

were settled during January 2025.

No shares were purchased under the NCIB during the year ended December 31, 2023.

18.NON-CONTROLLING INTERESTS

Set out below is summarized financial information for each subsidiary with non-controlling interest ("NCI") that is

material to the group. As part of its Candelaria segment, the Company owns 80% of the Candelaria Mine and

Compañia Contractual Minera Ojos del Salado S.A.’s ("Ojos") copper mining operations and supporting infrastructure

in Chile (together the "Candelaria complex").

On July 2, 2024, the Company exercised its option to acquire an additional 19% interest in the issued and outstanding

equity of Lumina Copper, bringing the Company's ownership in Caserones from 51% to 70% and reducing the NCI to

30%.

The continuity of the Company's non-wholly owned subsidiaries with material NCI is as follows:



	Candelaria complex	Caserones mine	Total
NCI in subsidiary at December 31, 2024	20%	30%1
As at December 31, 2022	$564,089	$—	$564,089
Caserones acquisition	—	873,767	873,767
Share of net comprehensive income (loss)	41,753	32,294	74,047
Distributions	(11,000)	(44,100)	(55,100)
As at December 31, 2023	594,842	861,961	1,456,803
Share of net comprehensive income (loss)	71,434	70,885	142,319
Distributions	(86,000)	(66,000)	(152,000)
Acquisition of additional interest in Caserones1	—	(353,499)	(353,499)
As at December 31, 2024	$580,276	$513,347	$1,093,623
1 Prior to July 2, 2024, NCI in Caserones was 49%.

- 37 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

Summarized financial information for the Company's non-wholly owned subsidiaries on a 100% basis, before

inter-company eliminations is as follows:


Summarized Balance Sheets
	Candelaria complex		Caserones mine1
	As at Dec. 31, 2024	As at Dec. 31, 2023	As at Dec. 31, 2024	As at Dec. 31, 2023
Total current assets	$627,020	$512,217	$600,270	$708,927
Total non-current assets	$3,070,339	$3,140,799	$1,563,113	$1,629,052
Total current liabilities	$452,576	$266,314	$298,374	$323,797
Total non-current liabilities	$611,134	$646,189	$231,921	$267,263
1Caserones results from July 13, 2023
Summarized Statements of Earnings and Comprehensive Income
	Candelaria complex		Caserones mine1
For the year ended December 31,	2024	2023	2024	2023
Total revenue	$1,858,920	$1,529,583	$1,147,654	$601,775
Net earnings	$355,225	$181,984	$171,857	$63,349
Net comprehensive income	$355,334	$182,344	$171,857	$63,349
1Caserones results from July 13, 2023
Summarized Statement of Cash Flows
	Candelaria complex		Caserones mine1
For the year ended December 31,	2024	2023	2024	2023
Cash provided by operating activities	$745,217	$504,464	$438,098	$179,371
Cash used in investing activities	(269,047)	(379,946)	(136,659)	(129,266)
Cash used in financing activities	(376,952)	(131,127)	(313,493)	(131,807)
Increase (decrease) in cash and cash equivalents during the period	$99,218	$(6,609)	$(12,054)	$(81,702)

1Caserones results from July 13, 2023

- 38 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

19.REVENUE

The Company's analysis of revenue from contracts with customers, segmented by product, is as follows:


	2024	2023
Revenue from contracts with customers:
Copper	$2,801,428	$2,145,132
Gold	294,364	234,318
Molybdenum	136,820	82,069
Nickel	97,167	291,169
Silver	47,236	31,184
Other	30,131	39,664
	3,407,146	2,823,536
Provisional pricing adjustments on current year concentrate sales	(9,330)	(59,889)
Provisional pricing adjustments on prior year concentrate sales	24,788	(20,203)
Revenue	$3,422,604	$2,743,444

The Company's geographical analysis of revenue from contracts with customers, segmented based on the destination of product, is as follows:

	2024	2023
Revenue from contracts with customers:
Japan	$1,122,739	$661,410
China	1,066,198	809,594
Spain	557,012	498,012
Canada	213,660	402,235
Chile	169,384	131,059
Germany	129,752	88,957
Finland	100,028	102,917
Other	48,373	129,352
	3,407,146	2,823,536
Provisional pricing adjustments on current year concentrate sales	(9,330)	(59,889)
Provisional pricing adjustments on prior year concentrate sales	24,788	(20,203)
Revenue	$3,422,604	$2,743,444

Revenue from contracts with customers related to continuing operations for the year ended December 31, 2024

includes a increase of $4.2 million (2023 - decrease of $0.8 million) due to variable consideration adjustments.

Provisional pricing adjustments on prior year concentrate sales include adjustments on pricing from sales during 2023.

During the three months ended December 31, 2024, provisional pricing adjustments on current and prior period

concentrate sales were $31.7 million negative and $46.1 million negative, respectively.

- 39 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

20.PRODUCTION COSTS

The Company's production costs are comprised of the following:


	2024	2023
Direct mine and mill cost	$1,729,956	$1,491,867
Transportation	104,813	104,788
Royalties	63,858	47,382
Total production costs	$1,898,627	$1,644,037

During the year ended December 31, 2024, the Company incurred $15.8 million related to union negotiation

settlements within operations in Chile, which were reported in direct mine and mill costs (2023 - $6.3 million).

During the year ended December 31, 2024, direct mine and mill costs include a write down totaling $32.7 million

related to inventory items used in repair and maintenance of mineral properties, plant and equipment.

21.GENERAL AND ADMINISTRATIVE EXPENSES

The Company's general and administrative expenses recognized in the consolidated statement of (loss) earnings are

comprised of the following:


	2024	2023
Salaries and benefits	$23,899	$33,257
Office related expenses	14,104	12,143
Consulting	10,616	10,322
Stock-based compensation	6,552	7,761
Insurance	1,300	685
Other	1,878	2,555
Total general and administrative expenses	$58,349	$66,723

22.EXPLORATION AND BUSINESS DEVELOPMENT

The Company's exploration and business development costs are comprised of the following:


	2024	2023
General exploration	$38,698	$33,048
Project development	5,331	4,814
Corporate development	1,323	6,148
Total exploration and business development	$45,352	$44,010

- 40 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

23.FINANCE INCOME AND COSTS

The Company's finance income and costs are comprised of the following:


	2024	2023
Interest income	$16,689	$10,879
Interest expense and bank fees	(101,046)	(47,150)
Accretion expense on reclamation provisions	(22,286)	(19,736)
Lease liability interest	(23,301)	(12,491)
Deferred revenue finance costs	(4,888)	(19,571)
Other	(6,623)	(3,360)
Total finance costs, net	$(141,455)	$(91,429)


Finance income	$16,689	$10,879
Finance costs	(158,144)	(102,308)
Total finance costs, net	$(141,455)	$(91,429)

24. OTHER INCOME AND EXPENSE

The Company's other income and expense are comprised of the following:


	Year ended December 31,
	2024	2023
Foreign exchange gain (a)	$32,861	$4,796
Foreign exchange and trading gains on debt and equity investments (b)	28,292	86,784
Revaluation of Caserones purchase option (c)	11,728	(2,556)
Revaluation of marketable securities	7,383	1,846
Realized (losses) gains on derivative contracts (Note 26)	(2,050)	25,088
Ojos del Salado sinkhole recovery (expenses) (d)	9,492	(16,922)
Unrealized losses on derivative contracts (Note 26)	(85,168)	(8,464)
Write-down of assets (e)	(22,129)	—
Revaluation of Chapada derivative liability	(631)	(2,594)
Gain on disposal of subsidiary	—	5,718
Other expense	(3,863)	(1,852)
Total other (expense) income, net	$(24,085)	$91,844

a) Foreign exchange gains during the year ended December 31, 2024 and 2023, relate to the foreign exchange

revaluation of trade payables and lease liabilities held in foreign currencies.

b) Foreign exchange and trading gains on debt and equity investments include the changes in fair value of debt and

equity instruments supporting capital funding for the Josemaria Project.

c)The Caserones purchase option is revalued at each reporting period up to the date of exercise, with changes in

fair value recorded in Other Income and Expense. The purchase option was exercised on July 2, 2024 and

resulting impact during the year ended December 31, 2024 remained in Other Income and Expense.

- 41 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

d)Ojos del Salado sinkhole recovery during the year ended December 31, 2024 include adjustments of expenses

originally accrued for as a result of updated information obtained related to the sinkhole near the Company's

Ojos del Salado operations.

e)Write-down of assets during the year ended December 31, 2024 include a non-cash write-down of capital works

in progress at the Josemaria Project that are no longer expected to be required.

25.CURRENT AND DEFERRED INCOME TAXES


	2024	2023
Current tax expense:
Current tax on net taxable earnings	$290,405	$139,652
Adjustments in respect of prior years	4,533	1,779
	294,938	141,431
Deferred tax (recovery) expense:
Origination and reversal of temporary differences	(40,467)	49,778
Change in tax rate	—	39,376
Utilization and recognition of previously unrecognized tax losses and temporary differences	(6,863)	(11,628)
Temporary differences for which no deferred asset was recognized	(17,635)	(4,592)
	(64,965)	72,934
Total tax expense	$229,973	$214,365

The tax on the Company's earnings before income tax differs from the amount that would arise using the weighted

average rate applicable to earnings of the consolidated entities as follows:


	2024	2023
Earnings excluding income taxes	$383,327	$491,216
Combined basic federal and provincial rates	27.0%	27.0%
Income taxes based on Canadian statutory income tax rates	$103,498	$132,628
Effect of different tax rates in foreign jurisdictions	107,825	33,147
Tax calculated at domestic tax rates applicable to earnings in the respective countries	211,323	165,775
Tax effects of:
Non-deductible and non-taxable items (a)	14,917	3,645
Change in tax rates (b)	—	39,376
Changes in estimates on Chilean royalty tax rate (c)	14,970
Adjustments in respect of prior years (d)	(3,384)	(18,919)
Tax losses and temporary differences for which no deferred income tax asset was recognized (e)	(17,635)	(4,591)
Foreign exchange impact on temporary differences and other translation amounts (f)	12,704	29,128
Utilization and recognition of previously unrecognized temporary differences	(6,863)	(11,628)
Tax recovery associated with government grants and other tax credits	(2,749)	(4,265)
Net withholding tax on accrued interest and dividends received	5,498	16,652
Other	1,192	(808)
Total tax expense	$229,973	$214,365

- 42 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

The Company operates in tax jurisdictions that have tax rates (including mining royalty tax) ranging from 20.6% to

37.9%.

a)Includes non-deductible environmental expenses incurred at Caserones of $47.6 million.

b)The new mining royalty law in Chile, which includes a 1% ad-valorem tax on sales, was enacted in the third

quarter of 2023 and became effective January 1, 2024 for Candelaria and will become effective in 2028 for

Caserones when its tax stability agreement expires. In addition to the ad-valorem tax, both operations in Chile

are expected to pay mining tax of approximately 8% - 15% on net mining income. The maximum effective tax

rate for the combined mining royalty, corporate income tax and final taxes in Chile is set at 46.5%.

c) Additional deferred royalty tax impact of $23.3 million in Candelaria and an offsetting $8.3 million of deferred tax

recovery in Caserones were recorded due to increased mining operating margin anticipated in future production

estimates.

d)Adjustments in respect of prior years includes temporary difference of $5.0 million deferred tax expense in

Candelaria associated with adjustments to the severance accrual (2023 - $6.4 million deferred tax recovery),

offset by $8.2 million deferred tax recovery in Chapada related to the reversal of stockpile adjustments booked in

the prior period (2023 - $2.8 million).

e)Deferred tax expense associated with temporary differences not recognized includes $29.7 million in Candelaria

(2023 - $1.6 million), $14.1 million in Canada (2023 - $1.3 million) and $2.4 million in Eagle (2023- $0) offset by

deferred tax recovery of $64.8 million associated with the reversal of deferred tax assets previously not

recognized in Caserones (2023 - $9.2 million).

f)The effects of tax inflation adjustment and revaluation of non-monetary assets in Argentina from the local

currency ARS to USD resulted in a $38.6 million tax recovery (2023 - $53.6 million tax expense) in Josemaria. The

revaluation of non-monetary assets in Brazil from the translation of deferred tax liabilities from the local currency

BRL to USD resulted in a net increase to deferred tax expense of $51.3 million in Brazil (2023 - $24.5 million

decrease to deferred tax expense).

Global Minimum Top-up Tax - Pillar Two

The Company is within the scope of OECD Pillar Two model rules. Among the jurisdictions where the Company

operates, Pillar Two legislation has been enacted in Sweden, Canada, Portugal and the Netherlands. On October 3,

2024, Brazil issued a Provisional Measure introducing Qualified Domestic Minimum Top-Up Tax to be effective from

2025 onwards.

The Company applies the exception to recognizing and disclosing information about deferred tax assets and liabilities

as provided by the amendments to IAS 12 in May 2023. The Company also accounts for any top up taxes as a current

tax when it is incurred. The Company has performed an analysis of the country-by-country reporting (CbCR) safe

harbour test, and concluded that no top-up tax was required in 2024.


Deferred tax liabilities, net
	December 31, 2024	December 31, 2023
Deferred tax assets	$191,254	$170,203
Deferred tax liabilities	(643,850)	(751,688)
Deferred tax liabilities, net	$(452,596)	$(581,485)

Net deferred tax liabilities of $430.8 million (2023 - $555.0 million) are expected to be settled after 12 months and net

deferred tax liabilities of $21.8 million (2023 - $26.5 million net deferred tax assets) are expected to be settled within

12 months.

- 43 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

The movement in deferred income tax assets and liabilities during the year, without taking into consideration the

offsetting of balances within the same jurisdiction, is as follows:


	As at December 31, 2023	(Expensed)/ recovered	Discontinued Operations	Balance sheet/ Equity adjustment	Effects of foreign exchange	As at December 31, 2024
Deferred tax assets:
Loss carryforwards	$58,062	$96,155	—	$—	$(915)	$153,302
Reclamation and other closure provisions	62,018	5,672	(15,263)	—	(3,633)	48,794
Deferred revenue	12,791	—	(12,791)	—	—	—
Future tax credits	4,315	—	(4,315)	—	—	—
Leases	5,936	19,988	(304)	—	(39)	25,581
Sinkhole provision	6,631	—	—	—	—	6,631
Fair value gains/ losses	(12,804)	22,022	7,615	—	1,549	18,382
Deferred tax liabilities:
Mineral properties, plant & equipment	(496,140)	(10,431)	44,580	—	17,160	(444,831)
Right-of-use assets	(31,304)	(1,547)	385	—	(27)	(32,493)
Provisions	(88,284)	(5,538)	30,689	—	(2,117)	(65,250)
Mining royalty taxes	(9,589)	(23,618)	—	—	—	(33,207)
Long-term inventory	(88,197)	(34,504)	9,499	—	(6,584)	(119,786)
Foreign currency contracts	(9,162)	1,552	—	—	—	(7,610)
Pension provision	(580)	—	—	—	—	(580)
Other	4,822	(4,786)	(1,650)	290	(205)	(1,529)
	$(581,485)	$64,965	$58,445	$290	$5,189	$(452,596)

- 44 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)


	As at December 31, 2022	(Expensed)/ recovered	Balance Sheet/ Equity adjustment	Effects of foreign exchange	As at December 31, 2023
Deferred tax assets:
Loss carryforwards	$5,624	$52,438	$—	$—	$58,062
Reclamation and other closure provisions	65,130	(3,623)	—	511	62,018
Deferred revenue	12,129	152	—	510	12,791
Future tax credits	6,563	(2,432)	—	184	4,315
Leases	5,265	657	—	14	5,936
Sinkhole provision	6,631	—	—	—	6,631
Other	4,502	1,074	629	(1,383)	4,822
Deferred tax liabilities:
Mineral properties, plant and equipment	(656,975)	(34,712)	197,550	(2,003)	(496,140)
Right-of-use assets	(5,208)	(1,758)	(24,321)	(17)	(31,304)
Provisions	(23,633)	(64,651)	—	—	(88,284)
Mining royalty taxes	(22,370)	(13,141)	25,922	—	(9,589)
Long-term inventory	(73,366)	(4,046)	(10,785)	—	(88,197)
Fair value gains	(15,095)	2,291	—	—	(12,804)
Foreign currency contracts	(14,170)	5,376		(368)	(9,162)
Pension provision	(792)	192	—	20	(580)
	$(705,765)	$(62,183)	$188,995	$(2,532)	$(581,485)

Deferred tax assets are recognized for tax loss carry-forwards and other temporary differences to the extent that the

realization of the related tax benefit through future taxable profits is probable. The Company determined that it is

probable that sufficient future taxable profits will be available to allow the benefit of the deferred tax assets to be

utilized.

The Company did not recognize deferred tax assets of $1,058.7 million (2023 - $1,116.9 million) in respect of losses

amounting to $3,924.3 million (2023 - $4,141.0 million) that can be carried forward against future taxable income.

Caserones has approximately $4.2 billion in net operating losses which can be applied to future taxable income over

the mine life. A deferred tax asset has been recognized to the extent that the Company expects to realize sufficient

taxable profit in the foreseeable future.

The deferred mining tax liability in Candelaria has been revalued based on changes in future production estimates for

the mining royalty in Chile, resulting in a net additional deferred mining tax expense of $23.3 million (2023 -$39.4

million).

- 45 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

26.FINANCIAL INSTRUMENTS

Derivative instruments

From time to time, the Company uses derivative contracts as part of its risk management strategy to mitigate exposure

to foreign currencies and commodities. The Company maintains foreign currency forward and option contracts on

EUR, CAD, BRL, CLP, and SEK foreign currencies intended to limit the foreign exchange exposure of its forecasted

foreign currency denominated after-tax attributable operating and capital expenditures. Additional commodity

forward swap and option contracts are maintained to limit exposure to changes in the price of diesel fuel purchases at

Candelaria, and limit its exposure to changes in the price of copper and gold.

The foreign exchange and commodities contracts have not been designated as hedges for purposes of hedge

accounting and are measured at fair value with changes in fair value recognized in the consolidated statement of (loss)

earnings.

During the years ended December 31, 2024 and 2023, the Company entered into various foreign currency and

commodity contracts continuing its risk mitigation strategy. These include:

a) Foreign currency forward contracts

During the year ended December 31, 2024, the Company entered into USD/CAD foreign currency forward

contracts with a notional value of $499 million and average contract rates of CAD 1.40. These are set to expire

during 2025 with the majority being settled upon the completion of the Arrangement (Note 4).

During 2023, the Company entered into USD/SEK forward contracts with a notional value of SEK 845.7 million

and contract rates ranging from SEK 10.76 to SEK 10.92. These contracts partially expired through 2024 with

SEK 758 million expiring through 2025. During 2022, the Company also entered into EUR/USD forward

contracts.

b)Foreign currency option contracts

During the year ended December 31, 2024, the Company entered into zero cost collar contracts in USD/BRL

and USD/CLP currency pairs totaling $246 million (equivalent to BRL 1.3 billion) and $950 million (equivalent to

CLP 926 billion), respectively. The collar ranges on the respective contracts are an average of BRL 5.00 to BRL

6.11 and CLP 900 to CLP 1,085 and remaining contracts are set to expire through 2025 and 2026.

During 2023, the company entered into zero cost collar contracts in USD/BRL, USD/CLP, and USD/SEK currency

pairs totaling $321 million (equivalent to BRL 1.7 billion), $347 million (equivalent to CLP 303 billion), and SEK

396 million, respectively. The collar ranges on the respective contracts range from BRL 5.00 to BRL 6.12, CLP

800 to CLP 1,035, and SEK 10.35 to SEK 11.15. Remaining contracts are set to expire through 2025. During

2022, the Company also entered into CAD foreign currency option contracts.

c)Commodity contracts

During the year ended December 31, 2024, the Company entered into copper and gold collar contracts with

notional amounts of 21,500 metric tonnes of copper and 105,200 oz of gold. The average collar range for

copper was set between $4.10/lb to $4.52/lb and expired in May 2024. The average collar range for gold is set

between $2,500 to $3,261 per oz and are set to expire through 2025 and 2026.

An additional position was taken on diesel, with collar contracts in the amount of 67.5 million litres ("L"), with

average collar ranges of $0.50/L to $0.65/L. During the year, 13.5 million L expired, with the remainder

expiring through 2025.

During 2023, the Company entered into diesel forward swaps with a notional value of $55 million and average

contract rates of $0.68/L. As at December 31, 2024, the diesel forward swaps are fully expired.

- 46 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

As at December 31, 2024, all EUR forwards have expired, while SEK options and forwards are set to expire through

2025 and remain a component of continuing operations.

The following tables outline the foreign currency and commodity derivative notional contract positions and their

expiry dates:


	Expired in	Expiring throughout:
Foreign currency forward contracts	2024		2025	2026
USD/CAD forwards1
Average contract price	—		1.40	—
Position (USD millions)	—		499	—
USD/SEK forwards2
Average contract price	10.89		10.83	—
Position (SEK millions)	322		758	—
EUR/USD forwards2
Average contract price	1.02		—	—
Position (EUR millions)	52		—	—

1 Subsequent to December 31, 2024, $463 million of the USD/CAD forwards were settled to facilitate the acquisition of Filo (Note 4)
2 EUR/USD and USD/SEK forwards expired in 2024 and expiring throughout 2025 reflect the position of continuing operations


	Expired in	Expiring throughout:
Foreign currency option contracts	2024		2025	2026
USD/BRL collars
Average contract price	5.01/6.33		5.06/6.04	5.07/6.04
Position (USD millions)	213		185	114
USD/CLP collars
Average contract price	882/1,040		872/1,032	904/1,060
Position (USD millions)	552		511	342
USD/CAD collars
Average contract price	1.30/1.40		—	—
Position (CAD millions)	19		—	—
USD/SEK collars1
Average contract price	10.35/11.15		—	—
Position (SEK millions)	132		—	—

1 USD/SEK collars expired in 2024 reflect only the position of continuing operations

- 47 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)


	Expired in	Expiring throughout:
Commodity hedge contracts	2024		2025	2026
Copper collars
Average contract price ($/lb)	4.10/4.52		—	—
Position (millions lbs)	47		—	—
Gold collars
Average contract price ($/oz)	—		2,500/3,125	2,500/3,455
Position (oz)	—		62,000	43,200
Diesel collars
Average contract price ($/L)	0.50/0.65		0.50/0.65	—
Position (millions litres)	14		54	—
Diesel forward swaps
Average contract price ($/L)	0.667		—	—
Position (USD millions)	27		—	—

The Company’s net unrealized and realized (loss)/gain on foreign currency and commodity derivative contracts are as

follows:


	2024	2023
Unrealized loss on derivative financial instruments:
Foreign currency contracts	$(87,692)	$(7,568)
Commodity hedge contracts	2,524	(896)
	(85,168)	(8,464)
Realized (loss)/gain on derivative financial instruments:
Foreign currency contracts	2,589	23,302
Commodity hedge contracts	(4,639)	1,786
	(2,050)	25,088
Total unrealized and realized (loss)/gain on derivative contracts:	$(87,218)	$16,624

- 48 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

A summary of the fair values of unsettled derivative contracts recorded on the consolidated balance sheet is as

follows:


	December 31, 2024	December 31, 2023
Foreign currency contracts:
Current asset position	$—	$38,114
Non-current asset position	—	9,397
Current liability position	39,416	1,124
Non-current liability position	24,487	3,148

Commodity contracts:
Current asset position	964	—
Non-current asset position	665	—
Current liability position	—	896

Other contracts:
Chapada derivative current liability	—	24,369

Fair values of financial instruments

The Company’s financial assets and financial liabilities have been classified into categories that determine their basis of

measurement. The following table shows the carrying values, fair values and fair value hierarchy of the Company’s

financial instruments as at December 31, 2024 and December 31, 2023:


		December 31, 2024		December 31, 2023
	Level	Carrying value	Fair value	Carrying value	Fair value
Financial assets
Fair value through profit or loss
Restricted funds	1	$8,665	$8,665	$59,979	$59,979
Trade receivables (provisional)	2	337,081	337,081	605,644	605,644
Marketable securities	1	60,060	60,060	14,268	14,268
Foreign currency contracts	2	—	—	47,511	47,511
Commodity contracts	2	1,629	1,629	—	—
Caserones purchase option	3	—	—	44,438	44,438
		$407,435	$407,435	$771,840	$771,840

Financial liabilities
Amortized cost
Debt	3	$1,756,972	$1,756,972	$1,208,600	$1,208,600
Caserones deferred consideration	2	112,833	112,833	116,210	116,210

Fair value through profit or loss
Pricing provisions on concentrate sales	2	$7,149	$7,149	$1,840	$1,840
Chapada derivative liability	2	—	—	24,369	24,369
Foreign currency contracts	2	63,903	63,903	4,272	4,272
Diesel contracts	2	—	—	896	896
		$71,052	$71,052	$31,377	$31,377

- 49 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

Fair values of financial instruments are determined by valuation methods depending on hierarchy levels as defined

below:

Level 1 – Quoted market price in active markets for identical assets or liabilities.

Level 2 – Inputs other than quoted market prices included within Level 1 that are observable for the assets or

liabilities, either directly (i.e. observed prices) or indirectly (i.e. derived from prices).

Level 3 – Inputs for the assets or liabilities are not based on observable market data.

The Company calculates fair values based on the following methods of valuation and assumptions:

Marketable securities/debt and equity investments/restricted funds – The fair value of investments in shares and

bonds is determined based on the quoted market price.

Trade receivables/pricing provisions on concentrate sales – The fair value of trade receivables that contain

provisional pricing sales arrangements are valued using quoted forward market prices. The Company recognized

negative pricing adjustments of $77.7 million in revenue during the three months ended December 31, 2024

(December 31, 2023 - $17.1 million negative pricing adjustments). The Company recognized positive pricing

adjustments of $15.5 million in revenue during the year ended December 31, 2024 (December 31, 2023 - $80.1

million negative pricing adjustments).

Foreign currency and commodity contracts – The fair value of these derivatives are determined by the

counterparties to the contracts and are assessed by Management using pricing models based on active market

prices.

Caserones purchase option – The fair value of the Caserones purchase option was determined using a valuation

model that incorporates such factors as the mine's discounted cash flow projections, metal price volatility, expiry

date, and risk-free interest rate. The Company exercised the Caserones purchase option in July 2024. Upon

exercise, the asset was derecognized into equity of the Company.

Chapada derivative liability – The fair value of this derivative was determined using a valuation model that

incorporates such factors as metal prices, metal price volatility, expiry date, and risk-free interest rate. The

Company paid the final $25.0 million tranche related to the Chapada derivative liability in August 2024.

Caserones deferred consideration – The fair value of the Caserones deferred consideration has been discounted

at the estimated credit adjusted risk free rate applicable to future payments.

Debt – The fair values approximate carrying values as the interest rates are comparable to current market rates.

The carrying values of certain financial instruments maturing in the short-term approximate their fair values.

These financial instruments include cash and cash equivalents, trade and other receivables other than those

provisionally priced, and trade and other payables other than those provisionally priced, which are classified as

amortized cost.

- 50 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

27. COMMITMENTS AND CONTINGENCIES

a)The Company has capital commitments of $333.9 million on various initiatives of which $304.1 million and $29.8

million relate to continuing and discontinued operations, respectively. Capital commitments of $157.6 million are

expected to be paid during 2025 of which $127.7 million is related to continuing operations.

b)The Chapada acquisition included contingent consideration of up to $125.0 million payable over five years from

the acquisition date if certain gold price thresholds are met. The Company paid $25.0 million tranches in each of

2020, 2021, 2022, 2023, and 2024. The final contingent consideration payment was made in 2024.

The Company has been provided with an indemnity for any tax liabilities that may arise for periods prior to the

date of the Chapada acquisition. For identified tax claims existing at the date of acquisition, the Company has

agreed to be liable for up to the first $21.0 million (BRL 101.5 million). While it is uncertain, no material liabilities

have been accrued as the Company believes material payment is not likely due to the nature of the tax claims.

c)The following summarizes total tax exposure under two contradictory assessments received from the Chilean

Internal Revenue Service (“IRS”). Given that the assessments relate to the same issue, the Company’s potential

exposure is expected to be limited to one of the below scenarios:

i)For taxation years 2014 through 2019, the IRS issued tax assessments denying tax deductions related to

interest expenses arising from an intercompany debt. The total of all assessments amounts to $265.3

million ($145.6 million in taxes plus interest and penalties of $119.7 million). If the Company loses the

dispute, it may be liable for an additional $96.3 million in accrued interest as of December 2024. All tax

refunds arising from the tax deductions related to the intercompany debt have been received up to

December 2024. The Company maintains its position that the assessments are inconsistent with Chilean tax

law and, therefore, without merit.

ii)On the same intercompany debt for taxation years 2016 through 2019, the Company has also received

assessments from the IRS seeking additional withholding taxes, including interest and penalties, on interest

payments made. The total of all assessments amounts to $246.6 million ($114.2 million in taxes plus interest

and penalties of $132.4 million). The Company may be liable for an additional $90.7 million in accrued

interest as of December 2024. All tax refunds arising from the tax deductions related to the intercompany

debt have been received up to December 2024. The Company maintains its position that the assessments

are inconsistent with Chilean tax law and, therefore, without merit.

The Company has filed claims against the tax assessments related to taxation years 2014 to 2019. No tax expense

has been accrued for these assessments as the Company believes its original filing position is in compliance with

tax regulations and intends to vigorously defend its position. The Company does not expect further assessments

to be issued related to this tax matter as the intercompany loan was amended in 2020 with an interest rate

accepted by the IRS.

d)In July 2022, a sinkhole was detected near the Company's Ojos del Salado operations in Chile. In October 2022,

the Company received an infraction notice from the environmental regulators covering four alleged violations of

its environmental permit for the Alcaparrosa underground mine, which forms part of the Company's Ojos del

Salado operations. In January 2025, the Company received a notice from the environmental regulators levying a

fine of $3.3 million and ordering the continued closure of the Alcaparrosa mine. The Company will review the

notification and determine the next steps relating to the charges that it allegedly breached its environmental

permit at its at Minera Ojos del Salado operation.

In addition, in May 2023, the Company received a civil environmental damage claim along with an injunction to

close the Alcaparrosa mine, from the state defence counsel, alleging that the Company did not fulfill its

environmental obligations under its environmental resolution. With respect to the environmental damage claim,

the Company is contesting the allegations that it allegedly breached its obligations under its environmental

resolution at its at Minera Ojos del Salado operation.

- 51 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

e)The Company may be involved in legal proceedings arising in the ordinary course of business, including the

actions described below. The potential amount of the liability with respect to such legal proceedings is not

expected to materially affect the Company’s financial position. The Company believes the claims to be without

merit and the loss, if any, cannot be determined at this time for all contingencies. The Company has accordingly

not accrued any amounts related to the litigations below (unless otherwise noted). The Company intends to

vigorously defend these claims.

Two proposed class actions were filed against the Company and certain officers and directors. The first, in the

province of Ontario, on December 7, 2017 (Markowich v. Lundin Mining Corporation et al) and a second

overlapping action in the province of Québec on January 18, 2018 (Prévreau v. Lundin Mining Corporation et al).

Both proposed class actions seek damages of $132.3 million (C$175.0 million) and punitive damages of $7.6

million (C$10.0 million) and assert various statutory and other claims related to, among other things, alleged

misrepresentations and/or failure to make timely disclosure of material information about the Company’s

business and operations and, in particular, the operations of the Candelaria Mine and a rock slide at the

Candelaria Mine on October 31, 2017. The proposed Ontario class action asserts claims on behalf of a putative

class comprising persons who acquired securities of the Company between October 25, 2017, and November 29,

2017, whereas the proposed Québec class action asserts claims on behalf of only such persons who are resident

or domiciled in Québec. In June 2018, counsel to the plaintiffs in the Québec action agreed to a stay (i.e.,

indefinite cessation) of that proceeding in light of the Ontario action. On August 30, 2018, the Québec Superior

Court, on consent of the parties, stayed the Québec action indefinitely. On September 2, 2020, the plaintiff in the

Ontario action served motion materials for leave and certification with the Ontario Superior Court of Justice. On

January 6, 2022, the Ontario Superior Court of Justice denied the leave application and declined the motion for

certification. On May 24, 2023, the Ontario Court of Appeal granted the plaintiff’s appeal of this decision. In

August 2023, the defendants filed an application for leave to appeal the Ontario Court of Appeal decision to the

Supreme Court of Canada , which leave to appeal was granted on March 25, 2024. The Supreme Court of Canada

heard the appeal on January 15, 2025. Its decision is under reserve and is expected to be released in 2025.

28. SEGMENTED INFORMATION

The Company is engaged in mining, exploration and development of mineral properties at four operating sites located

in Chile, Brazil, and USA, and at the Josemaria Project located in Argentina. Operating segments are reported in a

manner consistent with the internal reporting provided to the executive leadership team who act as the operating

decision-makers. The chief operating decision makers consider the business from a site and project-level perspective.

Executive management are responsible for allocating resources and assessing performance of the operating segments.

The Company has identified five reportable segments which include four operating sites, and the Josemaria Project.

Discontinued operations includes results from the Neves-Corvo and Zinkgruvan segments (Note 3).

- 52 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)


For the year ended December 31, 2024
	Candelaria	Caserones	Chapada	Eagle	Josemaria	Other	Total Continuing Operations	Discontinued Operations	Total
	Chile	Chile	Brazil	USA	Argentina		Total Continuing Operations	Discontinued Operations
Revenue	$1,618,936	$1,153,625	$497,576	$152,467	$—	$—	$3,422,604	$694,801	$4,117,405
Cost of goods sold
Direct mine and mill costs	(679,906)	(709,383)	(248,500)	(90,969)	—	(1,198)	(1,729,956)	(410,093)	(2,140,049)
Transportation	(31,049)	(34,703)	(25,553)	(13,508)	—	—	(104,813)	(31,173)	(135,986)
Royalties	(15,730)	(32,106)	(8,580)	(7,442)	—	—	(63,858)	(3,961)	(67,819)
Depreciation, depletion and amortization	(313,058)	(184,054)	(76,524)	(33,569)	—	(539)	(607,744)	(155,344)	(763,088)
Reversal of inventory write-down	—	—	26,626	—	—	—	26,626	—	26,626
Gross profit (loss)	579,193	193,379	165,045	6,979	—	(1,737)	942,859	94,230	1,037,089
General and administrative expenses	—	—	—	—	—	(58,349)	(58,349)	—	(58,349)
Exploration and business development	(10,124)	(14,846)	(5,636)	(3,208)	(8,307)	(3,231)	(45,352)	(12,843)	(58,195)
Finance (costs) income	(26,922)	(17,318)	(25,673)	(3,678)	21,510	(89,374)	(141,455)	(9,793)	(151,248)
Other income (expense)	14,860	37,575	3,768	(2,265)	7,319	(85,342)	(24,085)	(8,798)	(32,883)
Goodwill and asset impairment	(55,918)	—	(93,443)	(104,857)	—	—	(254,218)	(291,178)	(545,396)
Partial suspension of underground operations cost	—	—	—	(36,073)	—	—	(36,073)	—	(36,073)
Income tax (expense) recovery	(237,879)	(877)	(62,211)	28,839	50,086	(7,931)	(229,973)	13,711	(216,262)
Net earnings (loss)	$263,210	$197,913	$(18,150)	$(114,263)	$70,608	$(245,964)	$153,354	$(214,671)	$(61,317)
Capital expenditures	$275,720	$143,965	$107,843	$21,222	$258,207	$350	$807,307	$154,960	$962,267
Total non-current assets1	$3,063,812	$1,374,683	$1,289,965	$107,516	$1,408,246	$6,581	$7,250,803	$—	$7,250,803

1 Non-current assets include long-term inventory, mineral properties, plant and equipment, and goodwill.

- 53 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)


For the year ended December 31, 2023
	Candelaria	Caserones	Chapada	Eagle	Josemaria	Other	Total Continuing Operations	Discontinued Operations	Total
	Chile	Chile	Brazil	USA	Argentina		Total Continuing Operations	Discontinued Operations
Revenue	$1,329,599	$601,775	$461,175	$350,895	$—	$—	$2,743,444	$648,633	$3,392,077
Cost of goods sold
Direct mine and mill costs	(695,734)	(367,467)	(278,692)	(146,299)	—	(3,675)	(1,491,867)	(405,917)	(1,897,784)
Transportation	(30,759)	(21,550)	(30,057)	(22,411)	—	(11)	(104,788)	(32,205)	(136,993)
Royalties	—	(15,820)	(8,568)	(22,994)	—	—	(47,382)	(3,949)	(51,331)
Depreciation, depletion and amortization	(272,377)	(108,489)	(63,480)	(52,050)	(38)	(1,439)	(497,873)	(155,723)	(653,596)
Gross profit (loss)	330,729	88,449	80,378	107,141	(38)	(5,125)	601,534	50,839	652,373
General and administrative expenses	—	—	—	—	—	(66,723)	(66,723)	—	(66,723)
Exploration and business development	(14,589)	(622)	(10,460)	(5,691)	(2,751)	(9,897)	(44,010)	(11,682)	(55,692)
Finance (costs) income	(32,214)	(7,901)	(22,996)	(4,336)	18,726	(42,708)	(91,429)	(11,270)	(102,699)
Other (expense) income	(402)	6,391	6,229	(597)	84,316	(4,093)	91,844	12,745	104,589
Income tax (expense) recovery	(135,078)	(19,265)	1,888	(2,899)	(51,266)	(7,746)	(214,366)	(2,233)	(216,599)
Net earnings (loss)	$148,446	$67,052	$55,039	$93,618	$48,987	$(136,292)	$276,850	$38,399	$315,249
Capital expenditures	$380,112	$83,880	$72,291	$22,201	$285,893	$12,761	$857,138	$155,979	$1,013,117
Total non-current assets1	$3,134,028	$1,405,852	$1,391,417	$204,776	$1,161,771	$5,097	$7,302,941	$1,460,441	$8,763,382

1 Non-current assets include long-term inventory, mineral properties, plant and equipment, and goodwill.

- 54 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

29.RELATED PARTY TRANSACTIONS

a)Key management personnel - The Company has identified its directors and senior officers as its key management

personnel. Employee benefits for key management personnel are as follows:


	2024	2023
Wages and salaries	$7,281	$7,454
Pension benefits	94	130
Share-based compensation	2,246	2,983
Termination benefits	—	5,760
	$9,621	$16,327

b)Other related parties - For the year ended December 31, 2024, the Company incurred $8.4 million (2023 – $4.9

million), and received a refund amounting to $2.1 million (2023 – $nil) for services provided by companies owned

by members of key management personnel primarily relating to office rental, renovation costs, and related

services. For the year ended December 31, 2024, the Company incurred $2.6 million (2023 – $2.1 million) for

services provided by the Lundin Foundation, a not-for-profit organization supporting community economic

development programs and related initiatives in the regions in which the Company operates.

30.MANAGEMENT OF FINANCIAL RISK

The Company’s financial instruments are exposed to certain financial risks, including credit risk, liquidity risk, foreign

exchange risk, commodity price risk and interest rate risk.

(a)Credit risk

The exposure to credit risk arises through the failure of a customer or another third party to meet its contractual

obligations to the Company. The Company believes that its maximum exposure to credit risk as at December 31,

2024 is the carrying value of its trade and other receivables.

Concentrate and cathodes produced at the Company’s Candelaria, Caserones, Chapada, and Eagle mines is sold

to a number of strategic customers with whom the Company has established long-term relationships. Limited

amounts of concentrate are occasionally sold to commodity traders, under prevailing market conditions.

Payment terms vary and provisional payments are normally received when concentrate or copper cathodes have

been placed on board a vessel for shipment or delivered to a location specified by the customer, in accordance

with industry practice, with final settlement up to six months following the date of shipment. Sales to commodity

traders are made against secure payment terms such as a letter of credit, pre-payment or payment against

scanned shipping documents. Credit worthiness of customers is reviewed by the Company on an annual basis or

more frequently, if warranted, and those not meeting certain credit criteria may be asked to make 100%

provisional payment up-front or provide an acceptable payment instrument such as a letter of credit. The failure

of any of the Company’s strategic customers could have a material adverse effect on the Company’s financial

position. For the year ended December 31, 2024, the Company has four customers that individually account for

more than 10% of the Company’s total sales. The Company's largest customers represent approximately 20%,

14%, 13%, and 11% of total sales (2023 - four customers representing 23%, 16%, 14%, and 13% of total sales).

With respect to credit risk arising from the other financial assets of the Company, which comprise cash and cash

equivalents, restricted funds, marketable securities and equity investments, and foreign currency contracts, the

Company’s exposure to credit risk arises from default of the counterparty, with a maximum exposure equal to

the carrying amount of these instruments. The Company limits material counterparty credit risk on these assets

by dealing with financial institutions with long-term credit ratings with Standard & Poor’s of at least A, or the

equivalent thereof with Moody’s, or those which have been otherwise approved.

- 55 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

(b)Liquidity risk

The Company has in place a planning and forecasting process to help determine the funds required to support

the Company’s normal operating requirements on an ongoing basis. The Company ensures that there is sufficient

available capital to meet its short-term business requirements, taking into account its anticipated cash flows from

operations and its holdings of cash and cash equivalents. The Company has a revolving credit facility in place to

assist with meeting its cash flow needs as required (Note 13).

The maturities of the Company’s non-current liabilities are disclosed in Note 13 and Note 27. All current liabilities

are due to be settled within one year.

(c)Foreign exchange risk

The Company operates internationally and is exposed to foreign exchange risk arising from various currencies,

primarily with respect to CLP, BRL, and ARS.

The Company’s risk management strategy is to manage cash flow risk related to foreign denominated cash flows.

The Company is exposed to currency risk related to changes in rates of exchange between foreign denominated

balances and the functional currencies of the Company’s principal operating subsidiaries. The Company’s

revenues are denominated in US dollars, while most of the Company’s operating and capital expenditures are

denominated in the local currencies. The Company may, at its discretion, use forward or derivative contracts to

manage its exposure to foreign currencies, the use of which is subject to appropriate approval procedures. A

significant change in the currency exchange rates between the US dollar and foreign currencies could have a

material effect on the Company’s net earnings and other comprehensive income.

The following table illustrates the estimated impact a 10% US dollar change against the €, CLP, SEK and BRL would

have on pre-tax earnings as a result of translating the Company's foreign denominated financial instruments as at

December 31, 2024 before the impact of derivative contracts:


Currency	Change	Effect on Pre-Tax Earnings	Change	Effect on Pre-Tax Earnings
€	+10%	$8,033	-10%	$(8,033)
CLP	+10%	$(18,095)	-10%	$18,095
SEK	+10%	$5,241	-10%	$(5,241)
BRL	+10%	$(2,143)	-10%	$2,143

(d)Commodity price risk

The Company is subject to price risk associated with fluctuations in the market prices for metals. A significant

change in metal prices could have a material effect on the Company’s revenues.

The Company may, at its discretion, use forward or derivative contracts to manage its exposure to changes in

commodity prices, the use of which is subject to appropriate approval procedures. The Company is also subject to

price risk on the final settlement of its provisionally priced trade receivables.

The following table illustrates the sensitivity of the Company’s risk on final settlement of its provisionally priced

trade receivables:


Metal	Payable metal	Provisional price on December 31, 2024	Change	Effect on Revenue ($millions)
Copper	78,322t	$3.96/lb	+/-10%	+/-68.4
Gold	35koz	$2,638/oz	+/-10%	+/-9.2
Nickel	709t	$6.87/lb	+/-10%	+/-1.1

- 56 -

LUNDIN MINING CORPORATION

Notes to consolidated financial statements

For the years ended December 31, 2024 and 2023

(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

(e)Interest rate risk

The Company’s exposure to interest rate risk arises from the interest rate impact on its cash and cash

equivalents, restricted funds, and debt facilities. Certain of the Company's debt facilities include a variable rate

component such as references to Term SOFR on various term loans and credit facilities, as well as applicable

credit spreads depending on the Company's net leverage ratio. The interest rates on the Company’s revolving

credit facility and non-revolving term loan reference Term SOFR.

As at December 31, 2024, holding all other variables constant, a 1% change in the interest rate would result in an

approximate $12.5 million change in interest expense on an annualized basis (2023 - $4.2 million).

31.MANAGEMENT OF CAPITAL RISK

The Company’s objectives when managing its capital include ensuring a sufficient combination of positive operating

cash flows and debt and equity financing in order to meet its ongoing capital development and exploration programs

in a way that maximizes the shareholder return given the assumed risks of its operations while, at the same time,

safeguarding the Company’s ability to continue as a going concern. The Company considers the following items as

capital: excess cash balances, debt and lease liabilities, and share capital reserve.

Through the ongoing management of its capital, the Company will modify the structure of its capital based on

changing economic conditions in the jurisdictions in which it operates. In doing so, the Company may issue new shares

or debt, buy back issued shares, or pay off any outstanding debt. The Company continuously monitors its capital

structure to determine the appropriateness of paying dividends.

Planning, including life-of-mine plans, annual budgeting and controls over major investment decisions are the primary

tools used to manage the Company’s capital. Updates are made as necessary to both capital expenditure and

operational budgets in order to adapt to changes in risk factors of proposed expenditure programs and market

conditions within the mining industry.

32. SUPPLEMENTARY CASH FLOW INFORMATION


	2024	2023
Changes in non-cash working capital items consist of:
Trade and income taxes receivable, inventories, and other current assets	$100,751	$(2,580)
Trade and income taxes payable, and other current liabilities	120,129	(17,452)
	$220,880	$(20,032)

Operating activities included the following cash payments:
Income taxes paid	$184,378	$110,482