/EINPresswire.com/ -- TORONTO, ONTARIO -- (Marketwired) -- 01/21/16 -- Lundin Mining Corporation (TSX: LUN)(OMX: LUMI) ("Lundin Mining" or the "Company"), announces production results for the three and twelve months ended December 31, 2015. The Company also provides operating and capital guidance for 2016.

2015 Highlights:

--  Exceeded the high-end of annual production guidance for copper and
    nickel while meeting overall targets for zinc.
--  Candelaria outperformed the most recent copper production guidance due
    primarily to higher than expected mill throughput in Q4.
--  At Candelaria as previously announced, the successful exploration and
    mine plan optimization efforts resulted in total Mineral Reserves
    increasing by approximately 20% and resulted in the extension of the
    mine lives of all of the higher grade underground mines as well as the
    open pit.
--  Zinkgruvan achieved new annual records relating to tonnes of ore mined
    and milled. Annual zinc production also constituted a new record for the
    operation.
--  As at year end 2015, the Company had a net debt balance of $441 million,
    and did not have any amounts drawn on its $350 million revolving credit
    facility.

A summary of the Company's production results compared to the latest guidance is shown below and further details are provided in the tables at the end of the release.

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                                             Full Year
                                 Q4 2015          2015                  2015
                              Production    Production            Production
(contained tonnes)               Results       Results           Guidance(1)
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Copper Candelaria (80%)           31,875       144,832     138,000 - 141,000
       Eagle                       5,996        24,331       23,000 - 24,000
       Neves-Corvo                11,078        55,831       54,000 - 56,000
       Zinkgruvan                      5         2,044                 2,000
       Aguablanca                    466         6,221                 6,100
                          --------------------------------------------------
       Wholly-owned               49,420       233,259     223,100 - 229,100
       Tenke (24%)(2)                n/a           n/a                50,600
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       Total attributable            n/a           n/a     273,700 - 279,700
Nickel Eagle                       7,074        27,167       26,000 - 27,000
       Aguablanca                    514         7,213                 7,100
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       Total                       7,588        34,380       33,100 - 34,100
Zinc   Neves-Corvo                14,196        61,921       59,000 - 62,000
       Zinkgruvan                 25,339        83,451       82,000 - 85,000
       ---------------------------------------------------------------------
       Total                      39,535       145,372     141,000 - 147,000
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Mr. Paul Conibear, President and CEO commented: "The Company finished 2015 on a strong note and achieved or exceeded annual production guidance at each operation. In light of the current commodity price environment our operating and capital investment activities will continue to focus on financial flexibility and maximizing cash flows in order to preserve the Company's strong balance sheet."

2016 Production and Cost Guidance

--  All production guidance estimates for 2016 have remained unchanged from
    the figures previously disclosed on December 2, 2015.
--  The outlook below does not include guidance for the Aguablanca mine
    which remains under suspension pending further notice.
--  Our 2016 cash cost guidance reflects the results of cost review and
    reduction plans undertaken at each operation in order to help offset the
    cash cost impact of lower expected by-product credit metal prices.


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2016 Production and Cost Guidance(3)              Tonnes          C1 Cost(4)
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Copper        Candelaria (80%)         118,000 - 123,000            $1.55/lb
              Eagle                      20,000 - 23,000
              Neves-Corvo                50,000 - 55,000            $1.65/lb
              Zinkgruvan                   3,500 - 4,000
              Tenke (@24%)(5)             approx. 50,000                 n/a
              --------------------------------------------------------------
              Total attributable       241,500 - 255,000
Nickel        Eagle                      21,000 - 24,000            $2.25/lb
              --------------------------------------------------------------
              Total                      21,000 - 24,000
Zinc          Neves-Corvo                65,000 - 70,000
              Zinkgruvan                 80,000 - 85,000            $0.45/lb
              --------------------------------------------------------------
              Total                    145,000 - 155,000

2016 Capital Expenditure and Exploration Guidance

Capital expenditures for 2016 for mines operated by the Company are expected to be $220M, which includes:

--  $35M in capitalized stripping at Candelaria. This has significantly
    decreased from prior estimates due to a deferral of 30Mt of waste being
    mined from Phase 10, resulting in expected cost savings of approximately
    $65M in 2016.
--  At Candelaria spending on the Los Diques tailings facility is expected
    to amount to $70M in 2016. The total capex budget for the project is
    expected to total $325M between 2016 and 2018, in-line with prior
    estimates.
--  At Eagle sustaining capital costs are expected to total $10M in 2016,
    which represents a decrease of 50% compared to 2015 guidance levels.
--  At Neves-Corvo capital costs in 2016 are expected to total approximately
    $55M, in-line with guidance levels provided for 2015.
--  At Zinkgruvan the guidance amount of $35M for 2016 includes the spending
    of $8M on an expansion project which is aimed at increasing the overall
    mill capacity by approximately 10% by the end of 2017.
--  Exploration expenditures in 2016 are expected to total $40M, which
    represents a decrease of approximately $20M from 2015 guidance levels
    due to the deferral or cancelation of most greenfields exploration work.
--  The 2016 exploration budget comprises spending approximately $18M on
    exploration at Eagle East and $17M at Candelaria. All exploration
    activities remain discretionary and can be further reduced if necessary.


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Capital & Other Costs ($ millions)                  2016
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Candelaria (100% basis):
  Total Capitalized Stripping(6)                      35
  Los Diques Tailings Capex(7)                        70
  Other Sustaining Capex                              15
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Total Candelaria                                     120
Total Eagle                                           10
Total Neves-Corvo                                     55
Total Zinkgruvan                                      35
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Total Capital Costs                                  220

About Lundin Mining

Lundin Mining Corporation is a diversified Canadian base metals mining company with operations in Chile, Portugal, Sweden, Spain and the US, producing copper, nickel and zinc. In addition, Lundin Mining holds a 24% equity stake in the world-class Tenke Fungurume copper/cobalt mine in the Democratic Republic of Congo and in the Freeport Cobalt Oy business, which includes a cobalt refinery in Kokkola, Finland.

On Behalf of the Board,

Paul Conibear, President and CEO

The information in this release is subject to the disclosure requirements of Lundin Mining under the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. This information was publicly communicated on January 21, 2016 at 5:30 p.m. Eastern Time.

Forward-Looking Statements

Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the Ontario Securities Act. This release includes, but is not limited to, forward looking statements with respect to the Company's estimated annual metal production, C1 cash costs, and capital expenditures. These estimates and other forward-looking statements are based on a number of assumptions and are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to estimated operating and cash costs, foreign currency fluctuations; risks inherent in mining including environmental hazards, industrial accidents, unusual or unexpected geological formations, ground control problems and flooding; including risks associated with the estimation of mineral resources and reserves and the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; inability to successfully integrate the Candelaria operations or realize its anticipated benefits; uncertain political and economic environments; changes in laws or policies, foreign taxation, delays or the inability to obtain necessary governmental permits; and other risks and uncertainties, including those described under Risk Factors Relating to the Company's Business in the Company's Annual Information Form and in each management discussion and analysis. Forward-looking information is in addition based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of copper, nickel, zinc and other metals; that the Company can access financing, appropriate equipment and sufficient labour and that the political environment where the Company operates will continue to support the development and operation of mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements.

2015 Operating Statistics

Details of operating statistics by mine, by quarter and for the year are summarized below:

Candelaria

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                                                    2015
(100% Basis)                       Total       Q4       Q3       Q2       Q1
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Ore mined (000s tonnes)           33,922    8,012    8,240    9,022    8,648
Ore milled (000s tonnes)          29,694    7,504    7,933    7,327    6,930
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Grade
  Copper (%)                        0.64     0.53     0.61     0.68     0.78
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Recovery
  Copper (%)                        92.7     92.2     92.4     94.0     92.6
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Production (contained metal)
  Copper (tonnes)                181,040   39,844   45,195   46,651   49,350
  Gold (000 oz)                      102       23       25       27       28
  Silver (000 oz)                  1,874      394      433      464      583
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Eagle

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                                                    2015
                                   Total       Q4       Q3       Q2       Q1
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Ore mined (000s tonnes)              740      190      191      175      184
Ore milled (000s tonnes)             746      183      193      184      186
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Grade
  Nickel (%)                         4.3      4.3      3.9      4.2      4.7
  Copper (%)                         3.4      3.4      3.5      3.1      3.6
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Recovery
  Nickel (%)                        84.2     83.8     85.0     84.4     83.5
  Copper (%)                        97.0     97.9     97.3     96.4     96.4
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Production (contained metal)
  Nickel (tonnes)                 27,167    7,074    6,438    6,349    7,306
  Copper (tonnes)                 24,331    5,996    6,514    5,403    6,418
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Neves-Corvo

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                                                    2015
                                   Total       Q4       Q3       Q2       Q1
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Ore mined, copper (000 tonnes)     2,501      583      614      673      631
Ore mined, zinc (000 tonnes)       1,000      241      255      254      250
Ore milled, copper (000 tonnes)    2,542      584      619      699      640
Ore milled, zinc (000 tonnes)      1,014      240      257      258      259
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Grade
  Copper (%)                         2.7      2.4      2.8      2.7      2.9
  Zinc (%)                           8.0      7.5      8.1      7.9      8.5
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Recovery
  Copper (%)                        80.6     79.6     79.1     81.1     82.4
  Zinc (%)                          71.8     75.6     63.3     73.6     74.9
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Production (contained metal)
  Copper (tonnes)                 55,831   11,078   13,917   15,348   15,488
  Zinc (tonnes)                   61,921   14,196   14,363   16,022   17,340
  Lead (tonnes)                    3,077      311      366    1,080    1,320
  Silver (000 oz)                  1,329      270      310      359      390
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Zinkgruvan

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                                                    2015
                                   Total       Q4       Q3       Q2       Q1
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Ore mined, zinc (000 tonnes)       1,126      313      257      289      267
Ore mined, copper (000 tonnes)       137      nil       40       52       45
Ore milled, zinc (000 tonnes)      1,096      307      260      267      262
Ore milled, copper (000 tonnes)      139      nil       52       43       44
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Grade
  Zinc (%)                           8.3      9.0      7.7      8.6      7.6
  Lead (%)                           3.8      4.2      4.0      3.4      3.4
  Copper (%)                         1.7      nil      1.1      2.4      1.5
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Recovery
  Zinc (%)                          92.1     91.5     91.5     92.8     92.6
  Lead (%)                          82.9     83.0     83.7     82.4     82.6
  Copper (%)                        88.1      nil     80.1     91.9     89.0
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Production (contained metal)
  Zinc (tonnes)                   83,451   25,339   18,458   21,237   18,417
  Lead (tonnes)                   34,120   10,733    8,609    7,379    7,399
  Copper (tonnes)                  2,044        5      475      974      590
  Silver (000 oz)                  2,542      729      627      622      564
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Aguablanca

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                                                    2015
                                   Total       Q4       Q3       Q2       Q1
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Ore mined (000s tonnes)              616      nil       51      187      378
Ore milled (000s tonnes)           1,292      100      376      392      424
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Grade
  Nickel (%)                        0.68     0.65     0.58     0.70     0.77
  Copper (%)                        0.52     0.50     0.48     0.54     0.54
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Recovery
  Nickel (%)                        81.1     77.0     78.4     82.0     83.7
  Copper (%)                        93.1     90.6     93.0     93.4     93.4
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Production (contained metal)
  Nickel (tonnes)                  7,213      514    1,708    2,245    2,746
  Copper (tonnes)                  6,221      466    1,658    1,975    2,122
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(1) Guidance as presented in the Company's Management Discussion and Analysis for the three and nine months ended September 30, 2015.

(2) Production results for Tenke have not yet been released by operator Freeport-McMoRan Inc. ("Freeport").

(3) Production guidance is based on certain estimates and assumptions, including but not limited to; mineral resources and reserves, geological formations, grade and continuity of deposits and metallurgical characteristics.

(4) Cash costs remain dependent upon exchange rates (forecast at EUR/USD: 1.10, USD/SEK: 8.50, USD/CLP: 700) and metal prices (forecast at Cu: $2.05/lb, Ni: $4.15/lb, Zn: $0.70/lb, Pb: $0.70/lb, Au: $1,100/oz, Ag: $15.00/oz, Co: $13.00/lb).

(5) Tenke guidance has not yet been provided by operator, Freeport. Lundin Mining anticipates production from Tenke in 2016 to be comparable to expected 2015 production.

(6) During the production phase, waste stripping costs which provide probable future economic benefits and improved access to the orebody are capitalized to mineral properties. The Company capitalizes waste costs when experienced strip ratios are above the average planned strip ratio for each open pit phase under development.

(7) The Los Diques project capex is based on project review estimates completed in 2015 which assumed an USD/CLP exchange rate of 625.

Contacts:
Lundin Mining Corporation
John Miniotis
Senior Manager, Corporate Development & Investor Relations
+1-416-342-5565

Lundin Mining Corporation
Sonia Tercas
Senior Associate, Investor Relations
+1-416-342-5583

Lundin Mining Corporation
Robert Eriksson
Investor Relations, Sweden
+46 8 545 015 50