Lundin copper targets hit by severe weather in Chile

Lundin Mining Corp. [LUN-TSX; LUMI-Sweden] has released an update on its mining operations at Caserones and Candeleria following a second winter storm in Chile’s Atacama region, which began on August 13 and brought heavy rainfall at lower elevations, along with unusually heavy snowfall and high winds at higher altitudes.

“Northern Chile has experienced an unprecedented series of winter storms, with significant impacts on communities across the Atacama region and on our operations at Caserones,’’ said Lundin President and CEO Jack Lundin. “The safety of our people remains our highest priority, and I want to thank our employees, contractors and emergency response teams for their dedication and resilience throughout this challenging period,’’ he said.

“Following the first storm, we expected the impact on production to remain within the lower end of our original guidance range. Unfortunately, a second severe storm disrupted recovery efforts and delayed our planned return to full operations, leading to additional and unplanned downtime. As a result, we have revised our guidance to reflect the extended recovery period.’’

Lundin went on to say that teams continue to make strong progress restoring power, repairing infrastructure and reopening access routes. He said the company remains focused on safely returning Caserones to full production as quickly as possible.

Subsequent to the initial power outage at Caserones from July18 to July 30, a second outage occurred on August 14. The company said a recent inspection determined severe winds and heavy snowfall re-damaged a transmission tower that has been affected by the previous storm. It said repair crews have been mobilized and work is underway to restore the damaged infrastructure. Full power restoration is expected by the end of the week, followed by a gradual and safe ramp-up of operations. Meanwhile, the company said backup generators continue to support critical site infrastructure.

The cumulative impact of these weather events has affected the company’s full-year outlook at Caserones As a result, Caserones’ 2026 copper production guidance has been revised from 130,000 to 140,000 tonnes to 120,000 to 130,000 tonnes, along with cash cost guidance from US$2.05 a pound to US$2.25 a pound to US$2.15 a pound to US$2.35 a pound copper. The company continues to expect Candelaria to meet its full-year production guidance.

Consolidated production guidance for the company is now 300,000 to 325,000 tonnes, with cash cost guidance of US$1.95 a pound to US$2.15 a pound copper. That compares to the previous target of 310,000 to 335,000 tonnes at a cash cos of US$1.90 to US$2.10 a pound.

Caserones is a large-scale open pit copper molybdenum operation producing copper concentrate, copper cathode and molybdenum concentrate from Chile’s Atacama region. Candelaria is Lundin’s largest operation, consisting of both open pit and undergound mines, also located in the Atacama region.

On Wednesday, Lundin shares rose 0.96% or 34 cents to $35.87. The shares trade in a 52-week range of $45.64 and $14.88.