VANCOUVER, BC, Aug. 5, 2026 /CNW/ — (TSX: LUN) (Nasdaq Stockholm: LUMI) Lundin Mining Corporation ("Lundin Mining" or the "Company") today reported its second quarter 2026 financial results. Unless otherwise stated, results are from continuing operations and presented in US dollars on a 100% basis.

Jack Lundin, President and CEO commented, "We delivered another quarter of strong operational and financial performance, producing approximately 77,000 tonnes of copper and 33,000 ounces of gold while generating near-record revenue of $1.2 billion and adjusted EBITDA of $658 million. Our operations continued to perform well, with strong contributions from Caserones and improved recoveries at Chapada, while Candelaria was impacted by planned mine sequencing adjustments.

"While higher diesel prices increased costs during the quarter and recent severe winter weather has temporarily disrupted operations at Caserones, we remain well positioned to achieve our annual copper production guidance of 310,000 to 335,000 tonnes and expect cash costs to finish within our guided range of $1.90 – $2.10/lb.

"We also continued to advance our growth strategy, progressing with approval for the construction of an additional ball mill at Chapada which is key to unlocking the Saúva project. Another important milestone at Vicuña Corp. was reached with the approval of RIGI PEELP status in Argentina, supporting our objective of reaching a Stage 1 sanction decision by year-end. Lastly, in the second quarter, we strengthened our ownership in the Vicuña district through the acquisition of an additional 5% interest in Caserones and a 30.9% interest in Los Helados, while maintaining a net cash position and continuing to return capital to shareholders through our share repurchase program.

"Looking ahead, our priorities remain clear: operating safely, delivering consistent performance, advancing our organic growth opportunities and progressing Vicuña toward sanctioning. Supported by a portfolio of long-life, high-margin assets and one of the industry's strongest copper growth pipelines, Lundin Mining is well positioned to deliver long-term value for shareholders."

Second Quarter Operational and Financial Highlights

Continued consistent operational performance, supported by elevated metal prices, drove strong cash flow generation during the quarter, enabling the Company to end the period with a net cash position of $79.0 million after completing the $215 million acquisition of an additional 5% interest in Caserones and a 30.9% interest in Los Helados. The Company continued to execute on its growth strategy with the approval of the additional ball mill at Chapada as part of the Saúva project in Brazil and the approval by the Argentinian government of the Incentive Regime for Large Investments ("RIGI") for the Vicuña Project. The Company also returned capital to shareholders through the repurchase of approximately 2.2 million shares under its normal course issuer bid.

• Copper Production: 76,877 tonnes at a consolidated cash cost1 of $2.11 /lb.
• Gold Production: 33,427 ounces of gold was produced.
• Revenue: $1,212.7 million with a realized copper price1 of $6.51 /lb and a realized gold price1 of $4,385 /oz.
• Net Earnings and Adjusted Earnings1: Net earnings attributable to shareholders of the Company was $278.4 million ($0.33 per share) and adjusted earnings was $256.7 million ($0.30 per share).
• Adjusted EBITDA1: $658.0 million for the quarter.
• Capital Expenditures1: Sustaining capital expenditures2 were $110.7 million and expansionary capital expenditures1 were $83.1 million.
• Cash Generation: Cash provided by operating activities in the quarter was $458.8 million, adjusted free cash flow from operations1 was $395.9 million.
• Shareholder Returns: Under its normal course issuer bid, the Company repurchased 2,202,900 common shares for aggregate purchases of approximately $56.2 million and declared a dividend of C$0.0275 per share during the quarter. The Board has also approved an increase of up to $100 million to the share repurchase program for the remainder of 2026. 
• Growth: The Company is continuing to advance its growth initiatives and completed several significant milestones in the quarter to achieve its long term goal of becoming a top ten copper producer:
  • On April 7, 2026, the Company completed the acquisition from JX Advanced Metals Corporation and affiliates ("JX") of an additional 5% interest in the Caserones mine, along with a 30.9% interest in the Los Helados Project and a 0.62% smelter return royalty on Los Helados for total consideration of $215 million. Upon closing of the transaction, the Company's ownership interest in Caserones mine increased to 75%.
  • During the quarter, Vicuña Corp. achieved a major milestone and received approval for the inclusion of the Josemaria and Filo del Sol deposits (collectively, the "Vicuña Project" or the "Project") to the RIGI under the Long-Term Strategic Export Projects designation ("PEELP") in Argentina. Vicuña is the first copper mining project in Argentina to be granted the more favourable RIGI PEELP status. The approval provides long-term fiscal stability and investment certainty, supporting progress toward a Stage 1 investment decision as early as year-end.
  • Subsequent to the quarter, Vicuña secured a long-term royalty agreement and infrastructure trust (the "Provincial Agreement") with the Government of San Juan Province, Argentina (the "Province"), which will provide further economic stability for the project. An advanced infrastructure trust contribution of $250 million (Lundin Mining's attributable share: $125 million) is expected to be made in Q4 2026 providing upfront funding for provincial infrastructure and community initiatives, while granting the project a five-year payment holiday from first production from required infrastructure trust contributions.
  • On June 17, 2026, the Company hosted a Capital Markets Day, which outlined medium-term, low-cost brownfield expansion opportunities alongside the Vicuña Project which offers transformational long-term growth potential. The Company also provided a financial outlook for the next five and ten years that outlined a clear investment thesis and the ability to fund future growth plans.
  • As part of the Company's near-term growth strategy, it has approved the construction of an additional ball mill at Chapada to achieve higher recoveries as part of the Saúva growth project. Construction is expected to commence by year-end, with commissioning targeted for late 2027.
• Net Cash1: As at June 30, the net cash position of the Company was $79.0 million. As at August 5, net cash was approximately $75 million.
• Outlook: Notwithstanding the impact of the severe winter storm, the Company anticipates 2026 consolidated production and cash cost to fall within the annual guidance ranges. Cash cost guidance at Chapada has been reduced to $0.75 – $0.95 /lb copper. The consolidated cash cost guidance remains unchanged from $1.90 – $2.10 /lb copper. Annual expansionary capital expenditure guidance has been updated from $50 million to $85 million to reflect the sanctioning of the ball mill construction at Chapada.

1 These are non-GAAP measures. Please refer to the Company's discussion of non-GAAP & other performance measures in its MD&A for the three and six months ended June 30, 2026 and the Reconciliation of Non-GAAP Measures section at the end of this news release.

2 Sustaining capital expenditures is a supplementary financial measure, see the Company's discussion of non-GAAP & other performance measures in its MD&A for the three and six months ended June 30, 2026 and the Reconciliation of Non-GAAP Measures section at the end of this news release.

Summary Financial Results

	2026				2025
($ millions continuing operations)	YTD1	Q2	Q1	Total1	Q4	Q3	Q2	Q1
Revenue and profit
Revenue	2,371.5	1,212.7	1,158.8	4,053.2	1,301.5	953.9	878.2	919.6
Production costs	(1,000.0)	(513.0)	(487.0)	(1,948.1)	(546.8)	(455.3)	(466.3)	(479.8)
Depreciation, depletion and amortization	(268.8)	(134.5)	(134.3)	(618.9)	(169.7)	(162.2)	(153.4)	(133.5)
Gross profit	1,102.7	565.2	537.5	1,398.0	496.8	336.4	258.5	306.3
Net earnings	757.7	370.7	387.0	1,417.7	912.3	175.1	149.2	181.2
– attributable to shareholders	558.9	278.4	280.5	1,047.2	659.9	133.6	115.7	137.9
Adjusted earnings2	521.3	256.7	264.6	687.9	363.7	143.2	87.8	93.8
Adjusted EBITDA2	1,284.7	658.0	626.7	1,917.1	686.4	472.2	376.5	382.2
Cash flow
Cash provided by operating activities	952.5	458.8	493.7	1,207.9	533.0	254.9	292.7	127.6
Adjusted operating cash flow2	944.6	494.5	450.1	1,621.9	665.1	366.4	261.1	329.5
Free cash flow from operations2	739.9	360.2	379.7	773.6	388.3	160.1	195.2	30.2
Free cash flow2	578.6	265.0	313.6	538.9	331.9	101.3	149.4	(43.4)
Capital expenditures
Sustaining capital expenditure3	236.5	110.7	125.8	477.8	157.6	102.5	109.6	108.1
Expansionary capital expenditure3	137.4	83.1	54.3	191.2	43.5	51.1	33.7	62.9
Per share amounts
EPS – Basic ($/share)	0.65	0.33	0.33	1.22	0.77	0.16	0.14	0.16
EPS – Diluted ($/share)	0.65	0.32	0.33	1.22	0.77	0.16	0.13	0.16
Adjusted EPS2 ($/share)	0.61	0.30	0.31	0.80	0.42	0.17	0.10	0.11
Dividends declared (C$/share)	0.0550	0.0275	0.0275	0.1725	0.0275	0.0275	0.0275	0.09

1 The sum of quarterly amounts may differ from year-to-date and total results due to rounding.

2 These are non-GAAP measures. Please refer to the Company's discussion of non-GAAP & other performance measures in its MD&A for the three and six months ended June 30, 2026 and the Reconciliation of Non-GAAP Measures section at the end of this news release.

3 Capital expenditures are reported on a cash basis, as presented in the consolidated statement of cash flows and excluding capitalized interest. Sustaining capital expenditures is a supplementary financial measure and expansionary capital expenditures is a non-GAAP measure – please refer to the Company's discussion of non-GAAP & other performance measures in its MD&A for the three and six months ended June 30, 2026 and the Reconciliation of Non-GAAP Measures section at the end of this news release.

Production Overview

		2026			2025
	(contained metal)	YTD	Q2	Q1	Total	Q4	Q3	Q2	Q1
	Copper (t)
	Caserones (100%)	72,516	33,964	38,552	132,881	39,612	35,270	29,290	28,709
	Candelaria (100%)	61,736	30,928	30,808	145,471	34,272	37,129	36,999	37,071
	Chapada	22,559	11,985	10,574	43,974	11,191	12,600	11,274	8,909
	Total	156,811	76,877	79,934	322,326	85,075	84,999	77,563	74,689
	Gold (oz)
	Candelaria (100%)	35,582	17,843	17,739	80,528	19,055	19,899	20,574	21,000
	Chapada	29,382	15,584	13,798	61,331	15,074	17,864	17,544	10,849
	Total	64,964	33,427	31,537	141,859	34,129	37,763	38,118	31,849
	Molybdenum (t)
	Caserones (100%)	967	378	589	2,082	526	574	380	602
	Silver (koz)
	Candelaria (100%)	582	291	291	1,798	441	477	431	449
	Chapada	133	66	67	258	66	73	69	50
	Total	715	357	358	2,056	507	550	500	499

Sales Volumes

	2026			2025
(payable metal)	YTD	Q2	Q1	Total	Q4	Q3	Q2	Q1
Copper (t)
Caserones (100%)	69,940	33,479	36,461	138,287	45,134	26,896	30,076	36,181
Candelaria (100%)	60,335	29,512	30,823	140,500	32,882	36,041	36,603	34,974
Chapada	21,454	11,083	10,371	42,040	9,413	13,997	10,284	8,346
Total	151,729	74,074	77,655	320,827	87,429	76,934	76,963	79,501
Gold (oz)
Candelaria (100%)	34,278	17,025	17,253	76,537	17,700	19,041	20,021	19,775
Chapada	26,388	13,737	12,651	56,569	12,403	19,735	14,402	10,029
Total	60,666	30,762	29,904	133,106	30,103	38,776	34,423	29,804
Molybdenum (t)
Caserones (100%)	984	354	630	1,976	451	508	389	628
Silver (koz)
Candelaria (100%)	463	219	244	1,598	372	434	395	397
Chapada	62	33	29	129	26	48	30	25
Total	525	252	273	1,727	398	482	425	422

Caserones (Chile)

Operating Statistics

…

		2026			2025
	(100% Basis)	YTD	Q2	Q1	Total	Q4	Q3	Q2	Q1
	Ore mined (kt)	17,423	9,101	8,322	36,712	8,553	8,479	9,680	10,000
	Ore milled (kt)	16,595	8,379	8,216	33,383	8,200	8,530	7,984	8,669
	Ore placed on leach (kt)	7,396	3,868	3,528	16,777	3,142	3,910	4,962	4,763
	Grade
	Copper (%)	0.44	0.41	0.47	0.40	0.47	0.43	0.37	0.33
	Molybdenum (%)	0.016	0.017	0.015	0.011	0.013	0.011	0.008	0.011
	Production (contained metal)
	Copper in concentrate (t)	58,250	27,629	30,621	107,064	32,324	29,010	23,490	22,240
	Copper cathode (t)	14,266	6,335	7,931	25,817	7,288	6,260	5,800	6,469
	Total copper (t)	72,516	33,964	38,552	132,881	39,612	35,270	29,290	28,709
	Molybdenum (t)

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