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Lundin Mining: LUNDIN MINING REPORTS THIRD QUARTER 2011 RESULTS

Publicerad 2011-10-27 08:27

Toronto, October 26, 2011 (TSX: LUN; OMX: LUMI) Lundin Mining Corporation
(?Lundin Mining? or the ?Company?) today reported net income of $12.4 million
($0.02 per share) for the third quarter of 2011 and year-to-date net income
of $141.3 million ($0.24 per share).

Paul Conibear, President and CEO commented, ?At Neves-Corvo, mining and
milling volumes continued at high levels, but lower overall grades in the
quarter resulted in reduced metal production and consequently higher cash
costs on a per pound basis. These higher costs as well as declining metal
prices significantly impacted our operating earnings.During late September we
moved into higher grade stopes and this contributed to improved production
compared to the previous period. Significant increases in production are
expected in the fourth quarter as we continue mining in high grade areas.

Zinkgruvan incurred operating issues with both its zinc and copper grinding
mills which affected production. The copper mill gearbox was repaired and was
back on line in September and a zinc mill vibration issue is expected to be
resolved by the end of October to get back up to full production.

Our investment in Tenke achieved new important milestones during the quarter,
with the Phase 2 expansion feasibility study being completed by Freeport. The
project paid off the remaining $32.0 million on the Excess Overrun Cost
facility and Lundin Mining also received its first cash distribution of $7.8
million for total benefit of $39.8 million during the quarter. Both these
milestones illustrate the important contribution that Tenke is making to the
Company's future."

(For table, see attached file)

Highlights

* Copper and zinc production improved over the previous quarter; however,
production at both Neves-Corvo and Zinkgruvan was curtailed due to a number
of issues. We continued to mine low grade stockwork ores at Neves-Corvo and
consequently plant recoveries were lower than planned. At Zinkgruvan,
production shortfalls were experienced due to grinding mill related issues
in both circuits. Action has been taken to resolve these issues to enhance
fourth quarter production.

(For table, see attached file)

* Operating earnings1 for the current quarter of $48.7 million was lower than
the $121.5 million reported in the third quarter of 2010. Unfavourable
price and price adjustments ($22.9 million effect), lower volume ($11.4
million effect), higher per unit costs ($18.7 million effect), suspension
of mining activities at Aguablanca ($19.2 million effect) and foreign
exchange ($7.6 million effect) all contributed to the negative variance. *
Net income of $12.4 million ($0.02 per share) was $53.6 million lower than
the $66.0 million ($0.11 per share) reported for the third quarter of
2010.The decrease was largely the result of lower operating earnings ($72.8
million), losses on marketable securities of $11.8 million and an
unfavourable tax assessment in Spain for the 2004 to 2006 taxation years
($12.5 million tax plus $2.7 million interest).This was partially offset by
foreign exchange gains of $36.5 million. * Cash flow from operations,
before changes in non-cash working capital items, for the current quarter
was an inflow of $23.7 million, compared to an inflow of $94.2 million for
the corresponding period in 2010.The decrease of $70.5 million relates
mainly to lower earnings.Cash flow from operations does not include cash
flow related to Tenke. During the quarter, our share of available cash from
Tenke contributed to a $32.0 million final repayment, discharging the
Excess Overrun Cost (?EOC?) facility for the completed Phase 1 project, and
we received an additional $7.8 million cash distribution. * The Neves-Corvo
Zinc Expansion plant was started up on time and on budget in July. Given
the continued high ratio between copper and zinc price, in August this new
circuit was converted to copper ore processing and the Company plans to run
the new circuit on copper ore until year-end to achieve higher margins. *
In August, a new mine contractor was mobilized to the Aguablanca
nickel/copper mine to commence pit push-backs and reinstatement of the pit
haul ramp. The restart of Aguablanca concentrate production remains on
schedule for the third quarter of 2012. An underground mining study was
also initiated, intended to define potential high grade underground feed to
supplement open pit production. * In September, the Company released the
results of a Feasibility Study on the Lombador Phase I development
demonstrating that the exploitation of the upper portions of the Lombador
zinc/copper ore bodies could extend the mine life to at least 2026 and
create a platform for further extensions. The optimal development plan for
Lombador is being examined further in conjunction with assessing
exploitation concepts for the Semblana copper discovery. The Company has
initiated the Neves-Corvo Future Underground Materials Handling Study to
assess medium and long-term underground deposit access and extraction
infrastructure, including potential benefits of a second deeper shaft. *
During the quarter, the analysis of an extensive 3D seismic geophysics
survey across the Neves-Corvo concessions yielded the identification of 19
new drill targets all within the depth horizon of existing mine workings,
and at similar elevations to Semblana and Lombador. Exploration budgets
were increased and these targets will be progressively tested over the year
ahead. * Exploration programs on the Company?s own assets are being
increased in response to drilling success at all current programs including
our Irish exploration projects.

1 Operating earnings is a non-IFRS measure defined as sales, less operating
costs and general and administration costs.

Financial Position and Financing

* Net cash1 at September 30, 2011 was $208.7 million compared to $125.7
million at September 30, 2010 and $308.2 million at June 30, 2011.

The decrease in net cash during the quarter is primarily attributable to
income tax payments ($57.5 million), royalty payments ($18.6 million),
investment in mineral property, plant and equipment ($35.1 million), the
acquisition of Belmore Resources (Holdings) plc ($9.5 million) and net
investment costs in Tenke Fungurume expansion and sustaining capital works
($6.4 million).

* Cash on hand at September 30, 2011 was $256.2 million.

1 Net cash is a Non-IFRS measure defined as available unrestricted cash less
financial debt, including capital leases and other debt-related obligations.

(For full report, see attached file)

About Lundin Mining

Lundin Mining Corporation is a diversified base metals mining company with
operations in Portugal, Sweden, Spain and Ireland, producing copper, zinc,
lead and nickel. In addition, Lundin Mining holds a development project
pipeline which includes an expansion project at its Neves?Corvo mine along
with its equity stake in the world class Tenke Fungurume copper/cobalt
project in the Democratic Republic of Congo.

On Behalf of the Board,

Paul Conibear

President and CEO

For further information, please contact:

Sophia Shane, Investor Relations North America: +1-604-689-7842

John Miniotis, Senior Business Analyst: +1-416-342-5565

Robert Eriksson, Investor Relations Sweden: +46 8 545 015 50

Forward Looking Statements

Certain of the statements made and information contained herein is
?forward-looking information? within the meaning of the Ontario Securities
Act. Forward-looking statements are subject to a variety of risks and
uncertainties which could cause actual events or results to differ from those
reflected in the forward-looking statements, including, without limitation,
risks and uncertainties relating to foreign currency fluctuations; risks
inherent in mining including environmental hazards, industrial accidents,
unusual or unexpected geological formations, ground control problems and
flooding; risks associated with the estimation of mineral resources and
reserves and the geology, grade and continuity of mineral deposits; the
possibility that future exploration, development or mining results will not
be consistent with the Company?s expectations; the potential for and effects
of labour disputes or other unanticipated difficulties with or shortages of
labour or interruptions in production; actual ore mined varying from
estimates of grade, tonnage, dilution and metallurgical and other
characteristics; the inherent uncertainty of production and cost estimates
and the potential for unexpected costs and expenses, commodity price
fluctuations; uncertain political and economic environments; changes in laws
or policies, foreign taxation, delays or the inability to obtain necessary
governmental permits; and other risks and uncertainties, including those
described under Risk Factors Relating to the Company?s Business in the
Company?s Annual Information Form and in each management discussion and
analysis. Forward-looking information is in addition based on various
assumptions including, without limitation, the expectations and beliefs of
management, the assumed long term price of copper, nickel, lead and zinc;
that the Company can access financing, appropriate equipment and sufficient
labour and that the political environment where the Company operates will
continue to support the development and operation of mining projects. 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 statements. Accordingly, readers are
advised not to place undue reliance on forward-looking statements.

Om Lundin Mining

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LUNDIN MINING ANNOUNCES AGREEMENT TO PURCHASE FREEPORT'S 80% INTEREST IN THE CANDELARIA MINING COMPLEX
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Om Lundin Mining

Affärsvärlden
2014-10-08
Cormark: Köp Lundin Mining
2014-10-07
Lundin Mining stiger efter Candelaria-affär
2014-10-07
Lundin Mining i miljardaffär
2014-09-24
Lundin Mining har påbörjat produktion vid Eagle Mine
2014-08-14
Aktiespararens triss i köpråd
2014-08-01
Lundin Minings gruvköp i Chile kan gå i stöpet
2014-07-31
Lundin Mining höjer kopparprognos
2014-07-31
Ökad vinst för Lundin Mining
SIX
2014-10-24
Lundin Mining: BMO Capital återupptar bevakning med outperform
2014-10-23
Lundin Mining: Slutför finansiering till förvärv 80 % av Candelaria
2014-10-13
Lundin Mining: Prissätter 8-årig obligation till 7,875 % ränta
2014-10-09
Lundin Mining: Blackrock ökar till 10,1 % av kapital och röster
2014-10-08
Lundin Mining: Cormark höjer till köp (market perform)
2014-10-08
Lundin Mining: Swedbank höjer rekommendation till köp (neutral)
2014-10-08
Lundin Mining: SEB höjer rekommendation till behåll (sälj)
2014-10-07
Lundin Mining: Koppar får ökad betydelse efter förvärv av Candelaria
2014-10-07
Lundin Mining: Raymond James höjer rekommendation till starkt köp
2014-10-07
Lundin Mining: S&P sätter betyget B+ med stabila utsikter
Pressmeddelanden
2014-10-24
Lundin Mining to Release Third Quarter 2014 Results Wednesday, October 29, 2014
2014-10-23
Lundin Mining Closes C$674 Million Bought Deal Financing
2014-10-13
LUNDIN MINING ANNOUNCES PRICING OF US$1.0 BILLION OF SENIOR SECURED NOTES
2014-10-06
LUNDIN MINING ANNOUNCES AGREEMENT TO PURCHASE FREEPORT'S 80% INTEREST IN THE CANDELARIA MINING COMPLEX
2014-09-24
LUNDIN MINING COMMENCES PRODUCTION AT EAGLE MINE
2014-09-05
LUNDIN REPORTS 2014 MINERAL RESERVE & RESOURCE ESTIMATE UPDATE
2014-07-31
LUNDIN MINING SECOND QUARTER RESULTS
2014-07-28
Lundin Mining to Release Second Quarter 2014 Results Wednesday, July 30, 2014
2014-07-17
LUNDIN MINING ANNOUNCES FIRST ORE SHIPMENT AT EAGLE MINE
2014-07-14
LUNDIN MINING FURTHER RESPONDS TO MEDIA SPECULATION