TORONTO, March 25, 2020 /CNW/ - (TSX: LUN; Nasdaq
Stockholm: LUMI) Lundin Mining Corporation ("Lundin Mining" or
the "Company") announced today the Company and each of its
operations are continuing to manage and respond to COVID-19 within
the framework of the Company's Pandemic Response Plan,
recommendations of health authorities and local and national
regulatory requirements.
COVID-19 Readiness and Response Update
COVID-19 is a global threat which requires a united response
from governments, industry and our communities to ensure the
safety, health and well-being of all. Lundin Mining has taken
numerous steps to ensure needs are being addressed in the
communities and regions in which we operate. Our operations
have shared action plans and preventative measures being
implemented, while seeking and considering input from our
employees, unions, contractors, and communities to ensure we are
delivering responsive actions consistent with broader efforts.
Further, we are actively providing emergency support in the form of
community donations of emergency funding and supplies. These
efforts will continue to be focused on reducing the spread of the
virus and supporting local health infrastructure.
Across Lundin Mining we continue to identify and implement
measures to protect our workforce and communities. We have
implemented a number of measures including, but not limited to:
- All operations and offices have implemented travel
restrictions, surveillance, monitoring and response plans to reduce
the risk of COVID-19 exposure and outbreak, including health
screening of contractors, visitors and employees when
appropriate.
- Employees and contractors who have had incidental contact or
exposure to someone who has been diagnosed with the COVID-19 virus,
as well as those who have travelled internationally, and at some
operations domestically, have been instructed to stay at home for
14-days regardless of whether they are showing symptoms. Suspected
cases are being closely monitored and reported to health
authorities where appropriate.
- We are taking steps to limit visitors, contractors, and
employees to our operations, and where necessary temporarily
suspending activities. On March 15,
2020, we announced that construction and commissioning of
our Zinc Expansion Project at Neves-Corvo would be placed on hold
to reduce the risk to our local communities, employees and
contractors, as the workforce for the project includes many
contract employees who travel from other regions of Portugal and internationally. Additionally, at
several of our operations we have identified and curtailed
non-essential activities, such as waste mining and exploration to
reduce exposure risk with less people at and commuting to site.
- A portion of our workforce is working from home to reduce
interactions through commuting or close contact with co-workers.
This group, at certain operations, includes employees that fit
COVID-19 risk groups determined by public health authorities. We
have temporarily closed many of our community and satellite
offices, while continuing to provide services virtually.
- Across all operations we have limited access and implemented
new procedures for areas where large groups congregate like
canteens, cafeterias, and change rooms. We have also enacted
measures to promote social distancing including modifying
transportation and shift change routines. Awareness campaigns are
being carried out actively with our employees and contractors.
Operational & Guidance Update
There has been no material impact to production or shipment of
concentrate from any of the Company's operations to date as a
result of COVID-19. Additionally, there has been no significant
disruption to the supply chain of the Company's operations. Lundin
Mining and each of its operations continue to monitor and implement
business continuity measures to mitigate and minimize any potential
impacts of the pandemic that might emerge on our operations, supply
chain and commercial activities.
As previously announced on March 15,
2020, construction and commissioning activities directly
related to the Zinc Expansion Project at the Neves-Corvo operation
in Portugal have been temporarily
suspended until further notice. The Company is continuing to assess
the impacts of the temporary suspension of the project on the
timelines and budget and will provide an update once the
assessments have been completed. Previously provided zinc
production and capital cost guidance for the Neves-Corvo operation,
which includes the Zinc Expansion Project, should no longer be
relied upon.
Additionally, in preparing for what could be a sustained period
of depressed prices for our primary metals, the Company is actively
identifying and reviewing measures across our operations and
offices to reduce operating costs and defer discretionary capital
and exploration expenditures. The range of measures being assessed
include possible curtailment of non-essential projects and studies,
deferral of waste mining, reduction in exploration spending, and
mine and processing plan modifications. As such, current
production, C1 cash cost, exploration spending and capital cost
guidance for all operations is under review and may be amended to
reflect necessary modifications to our plans. The Company expects
to provide an update on these measures and any resulting revisions
to guidance not later than the release of First Quarter 2020
Results.
Lundin Mining is in a strong financial position. The Company's
net debt position as at March 23,
2020 was approximately $95 million, including $390
million of cash on hand. Included in the net debt position,
$375 million had been drawn on the
Company's secured revolving credit facility which has borrowing
capacity of $800 million, with a
$200 million accordion option to
total $1.0 billion, and term to
August 2023.
About Lundin Mining
Lundin Mining is a diversified Canadian base metals mining
company with operations in Brazil,
Chile, Portugal, Sweden and the
United States of America, primarily producing copper, zinc,
gold and nickel.
The information in this release is subject to the disclosure
requirements of Lundin Mining under the EU Market Abuse Regulation.
The information was submitted for publication, through the agency
of the contact persons set out below on March 25, 2020 at 20:30
Eastern Time.
Cautionary Statement in Forward-Looking Information
Certain of the statements made and information contained
herein is "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, 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;
and the Company's integration of acquisitions (such as the Chapada
mine) and any anticipated benefits thereof. 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 statements.
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, nickel, zinc, gold and other
metals; anticipated costs; ability to achieve goals; the prompt and
effective integration of acquisitions; that the political
environment in which the Company operates will continue to support
the development and operation of mining projects; and assumptions
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, these
statements are 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 statements and undue reliance
should not be placed on such statements and information. Such
factors include, but are not limited to: risks inherent in and/or
associated with operating in foreign countries; uncertain political
and economic environments; community activism, shareholder activism
and risks related to negative publicity with respect to the Company
or the mining industry in general; changes in laws, regulations or
policies including but not limited to those related to permitting
and approvals, environmental and tailings management, labour, trade
relations, and transportation; delays or the inability to obtain
necessary governmental approvals and/or permits; regulatory
investigations, enforcement, sanctions and/or related or other
litigation; risks associated with business arrangements and
partners over which the Company does not have full control; risks
associated with acquisitions and related integration efforts
(including with respect to the Chapada mine), including the ability
to achieve anticipated benefits, unanticipated difficulties or
expenditures relating to integration and diversion of management
time on integration; competition; development or mining results not
being consistent with the Company's expectations; estimates of
future production and operations; operating, cash and all-in
sustaining cost estimates; allocation of resources and capital;
litigation; uninsurable risks; volatility and fluctuations in metal
and commodity prices; the estimation of asset carrying values;
funding requirements and availability of financing; indebtedness;
foreign currency fluctuations; interest rate volatility; changes in
the Company's share price, and equity markets, in general; changing
taxation regimes; counterparty and credit risks; health and safety
risks; risks related to the environmental impact of the Company's
operations and products and management thereof; unavailable or
inaccessible infrastructure and risks related to ageing
infrastructure; risks inherent in mining including but not limited
to risks to the environment, industrial accidents, catastrophic
equipment failures, unusual or unexpected geological formations or
unstable ground conditions; actual ore mined varying from estimates
of grade, tonnage, dilution and metallurgical and other
characteristics; ore processing efficiency; risks relating to
attracting and retaining of highly skilled employees; ability to
retain key personnel; the potential for and effects of labour
disputes or other unanticipated difficulties with or shortages of
labour or interruptions in production; the price and availability
of energy and key operating supplies or services; the inherent
uncertainty of exploration and development, and the potential for
unexpected costs and expenses including, without limitation, for
mine closure and reclamation at current and historical operations;
risks associated with the estimation of Mineral Resources and
Mineral Reserves and the geology, grade and continuity of mineral
deposits including but not limited to models relating thereto;
actual ore mined and/or metal recoveries varying from Mineral
Resource and Mineral Reserve estimates; mine plans, and life of
mine estimates; the possibility that future exploration,
development or mining results will not be consistent with
expectations; natural phenomena such as earthquakes, flooding, and
unusually severe weather; potential for the allegation of fraud and
corruption involving the Company, its customers, suppliers or
employees, or the allegation of improper or discriminatory
employment practices, or human rights violations; security at the
Company's operations; breach or compromise of key information
technology systems; materially increased or unanticipated
reclamation obligations; risks related to mine closure activities;
risks related to closed and historical sites; title risk and the
potential of undetected encumbrances; risks associated with the
structural stability of waste rock dumps or tailings storage
facilities; and other risks and uncertainties, including but not
limited to those described in the "Risk and Uncertainties" section
of the Annual Information Form for the year ended December 31, 2018 and the "Managing Risks"
section of the Company's MD&A for the year ended December 31, 2019, which are available on SEDAR
at www.sedar.com under the Company's profile. All of the
forward-looking statements made in this document are 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, forecast 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.
Mark Turner, Director, Business
Valuations and Investor Relations: +1 416 342 5565; Brandon Throop, Manager, Investor Relations: +1
416 342 5583; Robert Eriksson,
Investor Relations Sweden: +46 8 440 54 50