Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Canada-based mining company, Lundin has revised its copper production guidance due to operational changes it has to make on the back of COVID-19 and temporary suspension of work at Zinc Expansion Project (ZEP), a company report said.


CopperPrevious Guidance (mt) Revised Guidance (mt)
Candelaria165,000 – 175,000160,000 – 175,000
Chapada51,000 – 56,00051,000 – 56,000
Eagle15,000 – 18,00015,000 – 18,000
Neves-Corvo38,000 – 43,00035,000 – 40,000
Zinkgruvan3,000 – 4,0003,000 – 4,000
ZincPrevious Guidance (mt)Revised Guidance (mt)
Neves-Corvo95,000 – 105,00070,000 – 75,000
Zinkgruvan77,000 – 82,00072,000 – 77,000
Nickel Previous Guidance (mt)Revised Guidance (mt)
Eagle15,000 – 18,00015,000 – 18,000


The company’s Candelaria mine produced 36,297mt of copper in Q1, higher than the prior year quarter due to better grades and ore sourced directly from the open pit and underground mines over stockpiles. Lundin’s Chapada mine produced 11,881mt while Eagle produced 4,378mt and Neves-Corvo produced 9,075mt of copper in the period.



Company’s Eagle mine produced 3,575mt of nickel during the period, lower than the prior year period due to lower grades and recoveries, which were partially offset by increased mill throughput.



Company’s Neves-Corvo and Zinkgruvan mine produced 17,948mt and 18,999mt of zinc, respectively, in Q1, lower than 40,446mt in the prior year due to lower grades and recoveries. Zinkgruvan’s lead output, however, was 8,013mt, better than the prior-year quarter due to higher throughput and recoveries 


Financial performance

In Q1 2020 (January to March), company posted a 9pc fall in revenue to $378mn from $416.4mn in Q1 2019. Lundin recorded a net loss of $113.6 in the March ending quarter as net earnings of $60.9 in the prior-year quarter. 



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