Lundin shares slip on weaker 2026 copper, gold guidance

Canada’s Lundin Mining (TSX: LUN) shares dropped greater than 10% on Thursday after cutting guidance for copper and gold production on reduced below ground mining prices at its Candelaria procedure in Chile.

The miner claimed it anticipates to generate 310,000-335,000 tonnes of copper and 134,000-149,000 ounces of gold this year, below previous assistance of 320,000-348,000 tonnes of copper and 144,000-159,000 ounces of gold.

Lundin claimed fourth-quarter manufacturing went beyond 87,000 tonnes of copper and greater than 34,000 ounces of gold, topping a year in which combined copper result went beyond initial assistance and landed within the business’s changed full-year variety.

Its Caserones mine in Chile was a standout, creating greater than 15,000 tonnes of copper in December, its ideal regular monthly outcome given that Lundin took ownership in 2023, and completing the year at 132,881 tonnes, over preliminary assumptions.

Head Of State and chief executive officer Jack Lundin claimed the business’s close to- and medium-term expectation continues to be undamaged, with mine sequencing modifications anticipated to raise copper manufacturing by a web 15,000 tonnes throughout 2026 and 2027. Those modifications are anticipated to include concerning 20,000 tonnes in 2027, partially balanced out by a 5,000-tonne middle change in 2026.

Candelaria, likewise in Chile, generated 145,471 tonnes of copper in 2025, sustained by greater mill throughput connected to softer ore. Throughout its 3 Latin American procedures, the business claimed operating efficiency stayed solid throughout the year.

Top-ten aspirations

For 2026, Lundin anticipates combined copper manufacturing of 310,000 to 335,000 tonnes and gold result of 134,000 to 149,000 ounces, with cash money expenses in between $1.90 and $2.10 per extra pound. Copper manufacturing is anticipated to increase to 315,000 to 340,000 tonnes in 2027 prior to relieving to 290,000 to 315,000 tonnes in 2028.

Capital expense will certainly stay raised as Lundin presses development jobs onward. Maintaining capital investment are predicted at $550 million in 2026, while expansionary capital expense is anticipated to get to $445 million. Expedition investing is anticipated at $53 million, concentrated mostly on in-mine and near-mine targets.

Lundin intends to turn into one of the globe’s leading 10 copper manufacturers, targeting yearly manufacturing of concerning 500,000 tonnes of copper and approximately 550,000 ounces of gold within 2 to 4 years.

The strategy centres on brownfield developments at Candelaria and Caserones in Chile and Chapada in Brazil, together with brand-new growths in the Vicuñan area on the Chile– Argentina boundary, consisting of the Josemaría and Filo del Sol jobs.

Lundin supply was last trading 10.77% reduced at C$ 32.72 by midday neighborhood time, leaving the business with a market capitalization of concerning C$ 28 billion ($ 20 billion).