Lundin Mining (TSE:LUN) used its fourth-quarter 2025 earnings call to highlight a record year for financial performance, a sharpened strategic focus on copper, and an accelerating growth pipeline in South America anchored by its Vicuña district project. Management also introduced a new corporate brand identity, which it said reflects the company’s copper-focused strategy and “momentum and growth” following portfolio changes over the last two years.
Portfolio reshaping and resource update
President and CEO Jack Lundin said 2025 was a “milestone year” marked by three transformative transactions aimed at streamlining the company’s portfolio around its South American copper assets. He pointed to the January merger of the Eagle Mine with Talon Metals to create a “pure-play American nickel company,” with Lundin Mining retaining a 20% ownership interest. Lundin said he and COO Juan Andrés Morel joined the board of the combined company, and former Eagle managing director Darby Stacey became CEO of Talon.
Record financial performance and shareholder returns
Management said 2025 produced the best financial performance in the company’s history. Lundin cited record revenue of more than $4.1 billion and Adjusted EBITDA of $1.9 billion for the year from continuing operations (excluding Eagle). CFO Teitur Poulsen later said total revenue for the year reached a record $4.5 billion including discontinued operations, with $409 million attributed to discontinued operations.
In the fourth quarter, the company generated close to $1.4 billion in revenue, including $52 million from discontinued operations. Poulsen said robust copper and gold production, the unwinding of concentrate inventory, and high commodity prices supported results. He also noted that the sales mix was increasingly weighted to copper, with copper accounting for 87% of revenue in the fourth quarter versus 75% in the prior year period comparison he cited.
Lundin highlighted capital returns, saying the company declared its 39th regular quarterly dividend, paid $106 million in dividends during 2025, and repurchased 15.1 million shares. In total, he said $256 million was returned to shareholders through dividends and buybacks.
On cash flow, Poulsen reported free cash flow from continuing operations of $774 million for the year and $388 million for the quarter. He added that operating cash flow was offset by a negative working capital build of $414 million for the year and $132 million for the fourth quarter. Poulsen said the company ended 2025 with a net cash position of $77 million, excluding capital leases, and characterized the balance sheet as “significantly strengthened,” citing the sale of European assets as pivotal.
Poulsen also pointed to a non-cash deferred tax recovery at Caserones of $517 million in the quarter, tied to recognizing a larger portion of a $3.9 billion tax loss at Caserones.
2025 operational performance and cost drivers
COO Juan Andrés Morel said the company exceeded original copper guidance and met revised guidance across all metals. Including Eagle, consolidated copper production was 331,000 tons for the year and 87,000 tons in the fourth quarter. Gold production was about 34,000 ounces in the fourth quarter and 142,000 ounces for the year, which he said was in line with guidance. Eagle produced 2,200 tons of nickel in the quarter and 10,000 tons for the year, which he said was at the midpoint of guidance.
- Candelaria: Morel said Candelaria maintained steady operations with 95% mill availability, processing roughly 7.8 million to 8.1 million tons of ore each quarter and 32 million tons for the year. It produced 145,000 tons of copper in 2025. Fourth-quarter copper production was 34,000 tons, slightly lower due to planned lower head grades.
- Caserones: Morel said Caserones produced 133,000 tons of copper in 2025 and 40,000 tons in the fourth quarter, with Q4 the highest quarterly copper production since Lundin acquired the mine in 2023. He attributed higher output to higher head grades and strong cathode production. He said improved leaching practices and added oxide material lifted copper cathode production to 25,800 tons in 2025, and the company now forecasts roughly 26,000 to 28,000 tons per year in 2026 through 2028.
- Chapada: Morel said Chapada’s production was “slightly second half weighted.” Fourth-quarter throughput was 6 million tons, producing 11,200 tons of copper. Full-year copper production was 44,000 tons, at the upper end of guidance.
On costs, Poulsen said fourth-quarter consolidated production costs were $585 million including discontinued operations, higher than prior quarters due to elevated sales volumes and certain one-off costs. He said Candelaria finalized labor renewal agreements with five unions ahead of schedule in the fourth quarter, leading to a one-time increase in costs tied to signing payments. In Q&A, he said the company does not disclose the amount of those bonus payments and explained they are expensed in the quarter paid.
Poulsen also said higher fourth-quarter sales volumes at Caserones increased absolute production costs because costs are reported on sold volume rather than produced volume. On a unit basis, he said Caserones costs were as low as in Q3, and he noted Caserones’ full-year cash cost of $2.17 per pound was toward the bottom end of guidance. Chapada’s full-year cash cost of $0.75 per pound beat its revised guidance range of $0.90 to $1.00 per pound, which he attributed in part to favorable gold pricing improving byproduct credits. Consolidated full-year cash costs were $1.87 per pound, below the bottom end of original guidance and toward the bottom end of revised guidance, despite the accelerated union payment at Candelaria.
Vicuña, Saúva, and 2026 guidance
Lundin said the company recently released results from an Integrated Technical Report on the Vicuña project, describing it as capable of producing more than 500,000 tons of copper, 800,000 ounces of gold, and more than 20 million ounces of silver during peak years. He said the company also committed to upsizing its revolving credit facility to $4.5 billion to fund the next phase of growth.
For 2026, Lundin said consolidated copper production is forecast at 310,000 to 335,000 tons, with consolidated gold production of 134,000 to 149,000 ounces. Consolidated cash costs are projected at $1.90 to $2.10 per pound of copper after byproduct credits. Sustaining capex is forecast at $550 million, while expansionary capex is expected to be $445 million, including 50% of spending related to the 50/50 Vicuña arrangement with BHP. He said the spending ramp positions the company for a potential Vicuña sanction decision as early as the end of 2026.
Morel provided an update on the Saúva satellite deposit at Chapada and an additional ball mill project. He said the Saúva pre-feasibility study is complete and a feasibility study has begun, with a sanction decision targeted for the second half of 2026. Construction of the ball mill is expected to begin by the end of 2026 or early 2027, with commissioning near the end of 2027. First ore from Saúva could be seen in 2029, subject to permitting timelines. Morel said the pre-feasibility study outlined an average production increase of 17,000 tons per year of copper and 32,000 ounces per year over a five-year period for Phase 1, and he said the profile could improve as mine planning incorporates Phase 2.
Analyst Q&A: grades, costs, TC/RCs, and financing options
In questions, management addressed Caserones grades and guidance, saying performance and Q4 volumes were in line with the mine plan and that improved cathode performance helps offset expected grade declines. Poulsen reiterated that fourth-quarter cost increases were largely explained by Candelaria’s one-off union signing payments and by Caserones’ higher sold volumes.
On treatment and refining charges (TC/RCs), management said market indicators were “trending very well.” Poulsen said Lundin’s 2026 cost guidance assumes 25 and 2.5 (as stated on the call), adding that results could land ahead of assumptions depending on contract mix and regional pricing.
Regarding financing for Vicuña, Lundin said the upsized revolving credit facility would position the company to fund its portion of the build while preserving optionality to consider other financing structures, including streaming. He said streaming is “lower down on the probability list” for Lundin, but the company is monitoring market structures and noted that any divergent financing approach between JV partners would require alignment.
Management also said it is testing operational opportunities tied to concentrate market dynamics, including potential trade-offs between concentrate grade and recovery, though Morel said these are not yet fully reflected in guidance.
About Lundin Mining (TSE:LUN)
Lundin Mining Corp is a diversified Canadian base metals mining company with operations in Brazil Chile Portugal Sweden and the United States of America producing copper zinc gold and nickel. Its material mineral properties include Candelaria Chapada Eagle and Neves-Corvo.
