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Lundin Mining says production of all metals up in 2021, net earnings jump 365%

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(Kitco News) - Lundin Mining (TSX: LUN) announced Thursday that production of all metals in 2021 met or exceeded the company's most recent annual production guidance.

The company produced 262,884 tonnes of copper (2020: 230,781 tonnes), 143,797 tonnes of zinc (2020: 142,744 tonnes), 167 koz of gold (2020: 163 koz) and 18,353 tonnes of nickel (2020: 16,718 tonnes).

Lundin added that due to increased sales volumes, production costs were higher than the prior year, however on a per unit basis cash costs were better than the most recent annual guidance for each operation.

The company's gross profit for the year ended December 31, 2021 was $1,369.7 million, an increase of $871.6 million in comparison to the prior year due primarily to higher realized metal prices ($1,030.6 million), partially offset by higher production costs due to inflationary price increases.

For the year ended December 31, 2021, the company's net earnings of $879.3 million were $690.2 million higher than the prior year and adjusted earnings of $820.6 million were higher than the prior year primarily due to higher gross profit and higher income from investment in associates partially offset by higher income tax expense.


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President and CEO Peter Rockandel commented, "We were able to take advantage of the favourable base metal price environment and set many Lundin Mining all-time financial records in 2021 including generating net earnings of nearly $880 million, adjusted EBITDA of $1.9 billion, free cash flow of over $1 billion, and dividends paid of over $225 million."

He added that the company's operations finished the year strong with "excellent" fourth quarter performance, including significant improvement at Candelaria, and that the Zinc Expansion Project at Neves-Corvo was substantially complete at year-end with commissioning is now underway.

Importantly, he said that acquisition of Josemaria Resources, for its world-class copper-gold project, remains on-track for closing in the second quarter of 2022.

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.

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