Lundin Mining Production Outlook 2016-2018

Screen Shot 2015-12-03 at 11.29.33.png

(1) Production guidance is based on certain estimates and assumptions, including but not limited to; mineral resources and reserves, geological formations, grade and continuity of deposits and metallurgical characteristics.
(2) Tenke guidance has not yet been provided by operator, Freeport McMoRan Inc. (“Freeport”). Lundin Mining anticipates future production from Tenke to be comparable to expected 2015 production.

In a press release (Marketwired – Dec. 2, 2015) Lundin Mining Corporation (TSX:LUN)(OMX:LUMI) (“Lundin Mining” or the “Company”) provides the following production guidance for the three-year period of 2016 through 2018. Key highlights are as follows:

  • Annual attributable copper production guidance for 2016 and 2017 has improved from last year’s three year production guidance due primarily to the improved production profile at Candelaria.
  • Zinc production is expected to increase by 2018 due to a low-cost plant improvement project at Zinkgruvan.
  • This outlook does not include guidance for the Aguablanca nickel/copper mine. The mine is under suspension and recommencement of operations will depend on timing of receipt of environmental approval for underground operations and the outlook for nickel and copper prices.
  • This production profile does not incorporate any expansions for the zinc plant at Neves-Corvo or further debottlenecking at Tenke, each of which could further increase the Company’s production profile.
    Given current depressed market conditions, the Company continues to refine planned investments in capital programs and exploration.

The Company is also conducting a further review of operating costs and considering actions required in order to preserve healthy operating margins under a sustained period of low commodity prices. The 2016 outlook for cash costs, capital spending and exploration programs will be disclosed towards the end of January 2016.

Mr. Paul Conibear, President and CEO commented: “The Company’s near term strategy is focused on stable production with low capital investment and improving operating costs, in order to maximize profitability and cash flows, preserving a strong balance sheet. The stability of our producing assets combined with the strength of our balance sheet, ideally positions the Company to generate leading returns to shareholders in any commodity price environment.”

Portuguese 49% stake in SM Lucapa sold

The Portuguese Government just reached an agreement with ENDIAMA (state-owned Angolan diamond company) to sell SPE’s 49% share in SML – Sociedade Mineira do Lucapa (not to be confused with Lucapa Diamond Company – Lulo Project).

The 49% share was sold by $ 130 million (121 M €). The Portuguese Government has an 81% share in SPE, the balance being held by many private shareholders.

Check the news (in Portuguese) here.

The social and economic impacts of gold mining

World Gold Council logoWorld Gold Council just published a new report on the social and economic impacts of gold mining. The report examines the wider footprint of gold mining and its implications for growth and development. To obtain the full report, just click: the-social-and-economic-impacts-of-gold-mining. You may also visit World Gold Council.

Key findings

  • Total contribution of over US$171bn to the global economy.
  • Total number of jobs that result from commercial gold mining rises to around 4.2 million globally.
  • In most gold producing countries, over 90% of the industry’s employees are local workers.
  • Over 60% of the countries covered in the report are low or lower-middle income with substantial socio-economic development needs.
  • 70% of the value that gold mining companies distribute within an economy relates to payments to local suppliers and employees.
  • Gold mining’s direct economic contribution to the global economy has increased seven-fold from 2000 to 2013.

World Gold Council infographic_1

DE BEERS’ ROUGH DIAMOND PRICES DECREASE

According to http://www.bloomberg.com,

De Beers lowered prices by about 3 percent, with bigger reductions for certain categories, at a sale this week in Botswana, according to the people, who asked not to be identified as the information isn’t public. The miner offered about $450 million of rough diamonds at the sale, the people said.

Full story here: http://www.bloomberg.com/news/articles/2015-05-06/de-beers-said-to-cut-diamond-prices-in-surprise-blow-to-anglo