Canadian base metals miner Lundin Mining (TSX: LUN) has provided a production guidance for the three-year period from 2020 to 2022, as well as cash cost, capital and exploration expenditure forecasts for next year.
The company anticipates copper production to increase more than 20% in 2020, with full-year contributions from the Chapada copper-gold mine, which Lundin acquired this year, and higher grades at the Candelaria mine in Chile. The three-year outlook has improved primarily on the inclusion of Chapada and the refinement of Candelaria’s production profile.
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Zinc production is forecast to increase over 15% in 2020 compared to 2019, as the Neves-Corvo zinc expansion project (ZEP) in Portugal continues to advance on schedule for phased ramp-up in 2020. Output is estimated to increase a further 30% in 2021 with a full-year contribution from the ZEP.
Nickel production is expected to grow by more than 25% in 2020 and remain at this increased level over the three-year period due to higher ore grade from the company’s Eagle operations.
Lundin Mining’s capital expenditure guidance for 2020 is set at $620 million, of which $155 million is earmarked for the remining preproduction capital for the ZEP.
The company also announced an anticipated 33% increase in its quarterly dividend and renewal of its normal course issuer bid to buy back approximately 63.8 million shares, both pending final approvals.
