Lundin Mining (LUN.TO) aims to reach annual production of over 500,000 tonnes of copper and 550,000 ounces of gold and intends to present growth initiatives across current operations during a Capital Markets Day on Wednesday, the company said Tuesday.
At Caserones, cathode production has increased by 7,000 to 10,000 tonnes of copper per year to about 25,000 tonnes. The company expects to unlock a further 10,000 to 15,000 tonnes of annual cathode copper production by securing additional oxide material and expanding plant capacity.
At Candelaria, underground contractor insourcing is nearing completion, which could enable an expansion to underground mining operations. This is expected to boost copper production through higher productivity and improved equipment availability.
At Chapada, engineering studies for the Sauva project have identified the potential to add about 15,000 tonnes of copper and 45,000 ounces of gold per year over four years, representing production increases of about 30% for copper and 75% for gold.
Lundin has sanctioned construction of an additional ball mill at Chapada, which is expected to be completed by the end of 2027, with first ore from Sauva expected in early 2029.
At the Vicuna project, in which Lundin holds a 50% interest composed of the Filo del Sol and Josemaria deposits, a recent integrated technical report outlines a Tier 1 asset that has the potential to rank among the top five copper, gold and silver mines globally once in production.
The company expects a sanctioning decision for the Vicuna project by the end of the year.
Lundin's 2026 production guidance remains unchanged at 310,000 - 335,000 tonnes for copper and 134 - 149 koz for gold. The company remains on track to meet annual consolidated production guidance for copper and gold.
Revenue for 2026 is expected to be about $4.5 billion with adjusted EBITDA of US$2.3 billion and adjusted free cash flow from operations of $1.2 billion.
During the period from 2026 to 2030, cumulative adjusted EBITDA is forecast to be about $13.2 billion, and cumulative adjusted free cash flow from operations is forecast to be about $8.1 billion.
During the period from 2031 to 2035, cumulative adjusted EBITDA is forecast to be about $22.3 billion, and cumulative adjusted free cash flow from operations is forecast to be about $15.5 billion.