Q1 2024 Lundin Mining Corp Earnings Call

Good morning, ladies and gentlemen.

Operator: Good morning, ladies and gentlemen. And welcome to the Lundin Mining first quarter 2024 financial results and webcast conference call. This time, all lines are in listen-only mode.

And welcome to the London mining first quarter 2024 financial results and webcast conference call.

Operator: At this time.

Operator: All lines are in listen only mode.

Operator: Following the presentation, we will conduct a question and answer session. If at any time during this call, you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, May 2nd, 2024. I would now like to turn the conference over to Jack Lundin, President and CEO. Please go ahead.

Operator: Following the presentation, we will conduct a question and answer session.

Operator: If at any time during this call you require immediate assistance. Please press star zero for the operator.

Jack Lundin: This call is being recorded on Thursday may 2nd half 2024.

Jack Lundin: I would now like to turn the conference over to Jack London, President and CEO. Please go ahead.

Jack Lundin: Good morning, everyone, and thank you for joining Lundin Mining's first quarter 2024 conference call. Yesterday, we reported our operating and financial results for Q1. A copy of our press release and presentation are available on our website, where a replay will also be made available. All figures presented in this presentation are in US dollars unless otherwise noted. Before we begin our presentation, I would like to remind the audience that yesterday's results and certain comments on the call include forward-looking information and, by their nature, are subject to risks and uncertainties.

Jack Lundin: Good morning, everyone and thank you for joining Lundin Mining's first quarter 2020 for a conference call yesterday, we reported our operating and financial results for Q1, a copy of our press release and presentation are available on our website, where a repo.

Jack Lundin: They will also be made available all figures presented in this presentation are in U S dollars unless otherwise noted.

Jack Lundin: Before we begin our presentation I would like to remind the audience that yesterday's results and certain comments on the call include forward looking information and by their nature are subject to risks and uncertainties for further information I would draw your attention to the cautionary statements on slide two for referenced and our latest relevant filings on SEDAR.

Jack Lundin: For further information, I will draw your attention to the cautionary statements on slide 2 for reference and our latest relevant filings on CDAR. On the call with me today, I'm joined by other senior members of our executive team. Teitur Poulsen, our Executive Vice President and Chief Financial Officer, and Juan Andres Morel, our Executive Vice President and Chief Operating Officer.

Speaker Change: On the call with me today I'm joined by other senior members of our executive team tighter Paulson, our executive Vice President and Chief Financial Officer, and Juan Andres morale, our executive Vice President and Chief operating Officer.

Jack Lundin: Operationally, our assets performed in line with expectations during the quarter. Copper production is planned to be second-half weighted this year, as higher throughputs and improved grade profiles, specifically from Candelaria, our largest operation, which represents over 40% of our output, are anticipated. As a result, quarterly copper production for the company was 88,000 tons, and we are on track to meet our annual guidance, which is ranged between 366,000 tons and 400,000 tons. 46,000 tons of zinc were produced, and 33,000 ounces of gold were produced in the quarter.

Speaker Change: Operationally our assets performed in line with expectations during the quarter copper production is planned to be second half weighted this year as higher throughput and improved grade profiles, specifically from candle area, our largest expiration, which represents over 40% of our output is anticipated.

Jack Lundin: As a result quarterly copper production for the company was 88000 tons and we are on track to meet our annual guidance, which has ranged between 366000 tons to 400000 tonnes.

Jack Lundin: 46000 tons of zinc were produced 33000 ounces of gold were produced in the quarter.

Jack Lundin: Hire Zinc and Gold Production are planned to be back-half-weighted, and Juan Andres will touch on each asset in more detail shortly. This translated into $363 million in adjusted EBITDA and $68 million in free cash flow from operations during the quarter.

Jack Lundin: Higher zinc and gold production are planned to be back half weighted and one Andreas will touch on each asset in more detail shortly.

Jack Lundin: This translated into 363 million in adjusted EBITDA and $68 million in free cash flow from operations during the quarter.

Jack Lundin: The company continues to return capital to shareholders, and yesterday, our board of directors declared a regular quarterly dividend of $0.09 Canadian per share, which makes up part of the annualized dividend of $0.36 Canadian per share. Since we initiated our dividend policy back in 2017, we have distributed over 1.1 billion Canadian dollars to shareholders, inclusive of share buybacks. We also updated our mineral reserves and mineral resources estimates in Q1, which increased by 26% year over year to 10.6 million tons of copper, demonstrating that we continue to have drilling success at our assets and have been effective in generating shareholder value through the drill bit. I will now hand the call over to Juan Andres, our COO, to talk about our production results. Thank you, Jack, and good morning, everyone.

Speaker Change: The company continues also to return capital to shareholders and yesterday, our board of directors declared a regular quarterly dividend of nine cents Canadian per share, which makes up part of the annualized dividend of <unk> 36.

Juan Andres Morel: Canadian per share.

Juan Andres Morel: Since we initiated our dividend policy back in 2017, we have distributed over $1 $1 billion to shareholders inclusive of share buybacks.

Juan Andres Morel: We also updated our mineral reserves and mineral resources estimates in Q1, which have increased by 26% year over year to $10 6 million tonnes of copper demonstrating that we continue to have drilling success at our assets and have been effective in generating shareholder value through the drill bit.

Jack Lundin: I will now hand, the call over to Juan Andres, our COO to talk about our production results.

Juan Andres Morel: Thank you Jack and good morning, everyone. The company striking to budget and production guidance on a consolidated basis for all metals in 2024.

Juan Andres Morel: The company is tracking to budget and production guidance on a consolidated basis for all metals in 2024. As mentioned earlier, copper production will be second-half weighted, primarily driven by grades profiled at Candelaria, Chapada, and Neves Corbett. Copper production for the company was 88,000 tons for the quarter, which is a 43% increase over the same period last year. Gold production for the quarter was approximately 33,000 ounces

Juan Andres Morel: As mentioned earlier copper production will be second half weighted primarily driven by a great profile at Candelaria Chubb had a nervous portable cup.

Juan Andres Morel: Copper production for the company was 88000 tons for the quarter, which is up 43% increase over the same period last year.

Juan Andres Morel: Gold production for the quarter was approximately 33000 ounces as mentioned earlier, great profiles at Candelaria in Japan will contribute to a stronger second half of the year for both that's what.

Juan Andres Morel: As mentioned earlier, great profiles at Candelaria and Chapada will contribute to a stronger second half of the year for gold as well. At Candelaria, production was 33,000 tons of copper and 19,000 ounces of gold. Lower grades from the mine sequencing in the first quarter will increase in the second half of the year. We expect production at Candelaria to be approximately 60 percent weighted to the back half of the year, where grades will improve to 0.7 to 0.8 percent copper.

Juan Andres Morel: <unk> production was 30000 tonnes of copper and 19000 ounces of gold lower grade lower grades from the mine sequencing in the first quarter will increase in the second half of the year, we expect production at candelaria to be approximately 60% weighted to the back half of the year.

Juan Andres Morel: Where grades will improved two 7% two 8% copper.

Juan Andres Morel: Production at Candelaria is tracking to budget and still on target to meet guidance for the year. Cacerones performed well in the quarter and produced 34,000 tons of copper. Higher grades were partially offset by lower throughput and recoveries in the mill. During the quarter, the processing plant experienced some unscheduled shutdown times for a conveyor belt repair and weather-related events.

Juan Andres Morel: Production at Candelaria is tracking to budget and still on target to meet guidance for the year.

Juan Andres Morel: That's it honest has performed well in the quarter and produced 34000 tons of copper higher grades were partially offset by lower throughput and recoveries in the mill.

Juan Andres Morel: During the quarter processing plant experienced some unscheduled shutdown times for a conveyor belt repaired and weather related events higher copper cathode production was achieved from increased leaching rates during the summer months.

Juan Andres Morel: Higher copper cathodes production was achieved from increased leaching rates during the summer months. Production at Chapada will also be modestly weighted to the second half of the year. During the quarter, higher than anticipated recoveries were offset by lower mill throughput to produce 10,100 tons of copper, which is an increase over the comparable period of a year ago. Included in other copper production is Nevers Corvo, which produced 7,000 tons of copper, Eagle, which produced 2,500 tons, and Zingruben with 1,600 tons of copper for the border. Nevers Corvo copper production is expected to be on the lower end of the guidance range for the year. Zinc production was lower this quarter at 45,700 tons, impacted by the fatality at Neves Borgo in February.

Juan Andres Morel: Production at <unk> will also be modestly weighted to the second half of the year during the quarter and higher than anticipated recoveries offset by lower mill throughput to produce 10100 tons of copper, which is an increase over the comparable period a year ago.

Juan Andres Morel: Included in the other copper production is never squabble, which produce.

Juan Andres Morel: 7000 tonnes of copper Eagle, which produced 2000 pipe from Vitaros and <unk> with 1600 tons of copper for the quarter <unk> copper copper production is expected to be on the lower end of the guidance range for the year.

Juan Andres Morel: Zinc production was lower this quarter at 45700 tons impacted by the fatality I'd never spoke go in February Lowell.

Juan Andres Morel: Lower throughput and grades impacted production at Nebraskovo, which resulted in 26,500 tons of zinc. Copper production is expected to be in the lower end of the guidance range for the year, while zinc production is tracking to guidance. During the quarter, ZincGruben produced 19,200 tons of zinc, which was in line with the budget. We expect zinc prices to improve slightly over the remainder of the year. Nickel production was 3,300 tons for the quarter, which was in line with guidance. However, throughput was impacted by equipment challenges that led to lower development rates in the mine.

Juan Andres Morel: Lower throughput and grades impacted production members quotable, which resulted in 26500 tonnes of zinc.

Juan Andres Morel: Production for copper is expected to be in the lower end of the guidance range for the year, while zinc production is tracking to guidance.

Juan Andres Morel: During the quarter <unk> produced 19200 tons of zinc, which was in line with the budget, we expect zinc grades to improve slightly over the remainder of the year.

Juan Andres Morel: Nickel production was 3300 tons for the quarter, which was in line with guidance. However, throughput was impacted from equipment challenges that led to lower development rates in the mine. We expect this to improve in Q2.

Juan Andres Morel: We expect this to improve in Q2. Operationally, our assets perform well, and we are seeing the benefit from our improved planning cycle and operational philosophy. We're in a good position for the remainder of the year.

Juan Andres Morel: Operationally, our assets performed well and we're seeing the benefit from our improved planning cycle and operational philosophy.

Juan Andres Morel: We're in a good position for the remainder of the year production is striking to guidance with a strong second half for the year projected at several of our assets.

Juan Andres Morel: Production is tracking to guidance with a strong second half of the year projected at several of our plants. Our asset optimization efforts continue across our Latin American sites, and we will look to update the market later this year on those initiatives. The focus of these optimization efforts is productivity, process improvement, and efficiencies to drive down costs and increase margins over the life of our assets. In Chapada, we are already seeing results in lower mining costs, improvements in the mine plant, and insourcing some processes, to name a few. At Candelaria, the value identification phase is coming to an end, and implementation will begin shortly.

Juan Andres Morel: Our asset optimization efforts continue across our Latin American sites, and we will look to update the market. Later this year on those initiatives. The focus of these optimization efforts is productivity process improvements and efficiencies to drive down costs and increase margins over.

Juan Andres Morel: The life of our assets.

Juan Andres Morel: <unk>, we are already seeing results in lower mining cost improvements in the mine plan in sourcing of some processes to name a few.

Juan Andres Morel: I attend the idea the value of identification phase is coming to a name and implementation will begin shortly.

Juan Andres Morel: I'd captured only as we're in the process of identifying a number of opportunities and improvements we expect to wrap up this work and doing the next quarter, which will allow us to move into the immediate implementation of these ideas.

Teitur Poulsen: At Cacerones, we're in the process of identifying a number of opportunities and improvements. We expect to wrap up this work in the next quarter, which will allow us to move into the immediate implementation of this idea. I will now turn the call over to Teitur to provide a summary of our financial results. Thank you, Juan Andres, and good morning, everybody.

Teitur Poulsen: I will now turn the call over to tighter to provide a summary on our financial results.

Teitur Poulsen: Thank you Andreas and good morning, everybody.

Teitur Poulsen: So we're starting with the top line, where we generated 937 million in revenue for the first quarter. Our revenue remains predominantly leveraged to copper, with the metal generating 76% of the quarter's revenue. Zink and gold contributed 6% each, and nickel contributed 4%.

Teitur Poulsen: So we're starting with the top line, where we generated 937 million in revenue for the first quarter.

Teitur Poulsen: Our revenue remains predominantly leveraged to copper with domestic generating 7% to 6% of the quarter's revenue.

Teitur Poulsen: <unk> gold contributed 6% each and mix contributed 4%.

Teitur Poulsen: Approximately 8% of our revenue now comes from our South American assets, with Candelaria and Casa Rona being the largest contributors. Now turning to volume sold and the realized prices we achieved. During the quarter, we sold 86,200 tons of copper at a realized price of $3.98.

Teitur Poulsen: Approximately 80% of our revenue now comes from our South American assets.

Teitur Poulsen: <unk> costs are only being the largest contributors.

Teitur Poulsen: Now I'll turn into volume sold in the realized pricing we achieved.

Teitur Poulsen: During the quarter, we sold 86200 tonnes of copper at a realized price of $3 98.

Teitur Poulsen: Propel the copper.

Teitur Poulsen: [inaudible] and 37,000 tons of zinc at one dollar and two cents per ounce on the swing. This, coupled with the sale of our other metals, generated revenue of $937 million, which was slightly below last quarter, but up significantly from the prior comparable period and is the third consecutive quarter with revenue generation in the region of a billion dollars. As in previous quarters, a proportion of our revenue in the quarter is based on sold volumes which have been provisionally priced, and therefore, the final pricing of this volume remains subject to adjustments and will be determined at a later date, normally during the following quarter.

Teitur Poulsen: 37000 tells us sink at $1 <unk> per.

Teitur Poulsen: The same.

Teitur Poulsen: This coupled with the sale of our other metals generated revenue of 937 million.

Teitur Poulsen: Which was slightly below last quarter.

Teitur Poulsen: Significantly from the prior comparable period and is the third consecutive quarter with revenue generation in the region of $1 billion.

Teitur Poulsen: As in previous quarters, a proportion of our revenue in the quarter is based on sold volumes, which have been provisionally priced.

Teitur Poulsen: And therefore, the final pricing of this volume remains subject to adjustments that.

Teitur Poulsen: That will be determined at a later date normally during the following quarter.

Teitur Poulsen: At the end of the first quarter, approximately 96,900 tons of copper were provisionally priced at $4.02 per pound and remained open for final pricing adjustments. As did 26,800 tons of zinc at $1.09 per pound and 990 tons of nickel at $7.53 per pound. Production costs totaled $567 million for the first quarter.

Teitur Poulsen: At the end of the first quarter approximately 96900 tonnes of copper were provisionally priced.

Teitur Poulsen: Sure.

Teitur Poulsen: <unk> <unk> per pound.

Teitur Poulsen: And remains open for final pricing adjustments.

Teitur Poulsen: <unk> 6800 tonnes of zinc at $1.09 per pound and 900 and lifestyles of nickel at $7 53 per pound.

Teitur Poulsen: Production costs totaled $567 million for the first quarter.

Teitur Poulsen: Comparing to the same quarter last year and adjusting for the caserone costs during the first quarter this year, our production costs have fallen by around 12% on a like-for-like basis, mainly due to a weaker Chilean peso and lower mining costs at Candelaria and Chapata. Additionally, we have seen TCRCs come down substantially for the spot market sales contracts which were entered into during the first quarter. Although these lower TCRCs will not be recognized in our numbers until these sales occur during the balance of the year, other consumables such as grinding media, electricity, and fuel have remained fairly stable. The Przewalszko-Kosciuszko-Czapata mines have come down, with the quarterly production costs being materially lower compared to previously.

Teitur Poulsen: Comparing to the same quarter last year and adjusting for the costs around the costs during the first quarter this year.

Teitur Poulsen: Production costs have fallen by around 12% on a like for like basis.

Teitur Poulsen: Mainly due to a weaker Chilean peso and lower mining costs.

Teitur Poulsen: Area and Chaco.

Teitur Poulsen: We have seen key CRC has come down substantially for the spot market sales contracts, which were entered into during the first quarter.

Teitur Poulsen: These lower TCR seats will not be recognized in our numbers, obviously sales will occur during the balance of the year.

Teitur Poulsen: Other consumables, such as grinding meter electricity and fuel have remained fairly stable.

Teitur Poulsen: Production costs at Chipotle have come down.

Teitur Poulsen: <unk> with the quarterly production costs being materially lower compared to previously.

Teitur Poulsen: A large proportion of this cost reduction relates to our optimization efforts at Chapata and an improved mine plan which better balances fresh ore and stockpile, which has reduced the amount of material we have to mine and loot. As shown on the charts to the right, our unit cash costs are trending in line with our absolute production costs, with our annual production profile being second-half weighted. We are on track to meeting our unit cash cost guidance at all sites.

Teitur Poulsen: A large proportion of this cost reduction relates to our optimization efforts at chipotle, and unimproved lifestyle, which better balances fresh ore stockpile.

Teitur Poulsen: To reduce the amount of material we have to mine.

Teitur Poulsen: As shown on the charts to the right our unit cash costs are trending in line with our absolute production costs.

Teitur Poulsen: With our annual production profile being second half weighted.

Teitur Poulsen: We are on track to meeting our unit cash cost guidance at all sites.

Teitur Poulsen: The capital expenditure tracked well to our guidance with sustaining an expansionary capex of $269 million for the quarter, while the total guidance for the year is $840 million. Candelaria's Capex is rated to the first half of the year, while the remaining assets will be more evenly split through the quarters. During the first quarter, Candelaria incurred $100 million in sustaining capital.

Teitur Poulsen: The capital expenditure tracked well to our guidance with sustaining and expansionary capex of $269 million for the quarter.

Teitur Poulsen: While the total guidance for the year is $840 million.

Teitur Poulsen: Ancillary our Capex is related to the first half of the year, while the remaining assets will be more evenly split through the quarters here.

Teitur Poulsen: During the first quarter culinary anchored $100 million in sustaining capex.

Teitur Poulsen: Approximately half of the sustaining capex in the quarter was for stripping and underground development. At Jose Maria, we spent 56 million during the first quarter, which is approximately a quarter of the guided 225 million capsule guidance for the year. The capital expenditure in the first quarter was primarily related to field activities for hydrology programs and delivery of grinding mills and gearless mill drives that will be stored in our Sanpan Warehouse facility.

Teitur Poulsen: Approximately half of the sustaining capex in the quarter was for stripping and underground development.

Teitur Poulsen: At Tulsa Maria we spent 56 million during the first quarter, which is approximately.

Teitur Poulsen: A quarter off too.

Teitur Poulsen: $225 million a capsule.

Teitur Poulsen: For the year.

Teitur Poulsen: The capital expenditure in the first quarter, primarily related to field activities for hydrology programs.

Teitur Poulsen: Delivery of grinding mills, and gearless mill drives that will be stored in our <unk> warehouse facility.

Teitur Poulsen: The company has continued with its proactive hedging strategy during the first quarter. With the recent weakness in the Chilean peso, the company outed $950 million, the equivalent of Chilean peso hedges across the remainder of 2024 through to the end of 2026. We have also started adding to our Brazilian Real hedge position, with the majority of these hedges being executed in April. For the remainder of 2024, we have hedged 89% of our exposure to children's PSOs.

Teitur Poulsen: The company has continued with its proactive hedging strategy during the first quarter.

Teitur Poulsen: With the recent weakness in the Chilean peso the company after the $950 million.

Teitur Poulsen: Well as equivalent of Chilean peso hedges across the remainder of 2020 422 and 2026.

Teitur Poulsen: We have also started adding to our Brazilian real hedge position with the majority of these have just being executed in April.

Teitur Poulsen: For the remainder of 'twenty 'twenty, four we have hedged 89% of our exposure to Chilean pesos.

Teitur Poulsen: 74% of our exposure for 2025 and 50% of our Chilean pesos exposure for 2026. Our Brazilian Real hedging has a similar pattern, except for the remainder of 2024, where we have hedged 70% of our Brazilian Real exposure. These hedging rates compare favorably to the FX rates assumed for our 2024 guidance, with guidance being based on 850 Chilean pesos to the dollar and five Brazilian real to the dollar. Given that the company anticipates to be pricing a disproportionate volume of copper during May, we decided to lock in a pricing floor for part of this volume that will be priced during May.

Teitur Poulsen: 74% of our exposure for 2025.

Teitur Poulsen: And 50% of our Chilean pesos exposure perspective 2006.

Teitur Poulsen: Our Brazilian rial hedging has a similar pattern except for the remainder of 2024, where we have hedged 70 protect repower Caribbean Brazilian real exposure.

Teitur Poulsen: These hedging rates compare favorable favorably.

Teitur Poulsen: FX rates assumed four hour 24 guidance with guidance being based on 850 Chilean pesos to the dollar.

Teitur Poulsen: Fiber scenario to the dollar.

Teitur Poulsen: Given that the company anticipates to be pricing a disproportionate volume of copper during may we decided to lock in a pricing floor for part of this volume.

Teitur Poulsen: It can be priced security made.

Teitur Poulsen: The company has entered into a zero-cost color copper price hedge for 21,500 tons of copper with a pricing floor of $4.10 per pound and a pricing ceiling of $4.52 per pound. Our first quarter key financial metrics are presented on this slide 17. We generated adjusted EBITDA of $363 million and adjusted operating cash flow of $314 million, which included a cash tax payment of $49 million. The company built working capital of 46 million during the first quarter but expects to significantly reduce its working capital balance during the second quarter due to a change in payment terms for some of our sales contracts. Free cash flow from operations was 68 million, and adjusted earnings was 45 million for the quarter.

Teitur Poulsen: The company has entered into a <unk> color copper price hedge for 21500 tonnes of copper with a pricing floor of $4 10 per pound in the pricing ceiling of $4 52 per pound.

Teitur Poulsen: Yeah.

Teitur Poulsen: Our first quarter key financial metrics are presented on this slide 17.

Teitur Poulsen: We generated adjusted EBITDA of $263 million and adjusted operating cash flow of 314 billion, which includes a cash tax payment of $49 million.

Teitur Poulsen: Yes.

Teitur Poulsen: The company feels to working capital of 46 million during the first quarter, but expect to significantly reduce working capital balance during the second quarter due to a change in payment terms for some of our sales contracts.

Teitur Poulsen: Free cash flow from operation was $68 million and adjusted earnings was $45 million for the quarter.

Teitur Poulsen: We finished the quarter in a moderate net debt position of roughly $980 million, excluding capital leases, which equates to a leverage ratio of 0.7 times adjusted EBITDA. Our liquidity position remains strong, with our revolving credit facility having an availability of $1.45 billion as of the end of the first quarter. So all in all, the company remains in good financial health, with costs trending according to guidance and with some potential upside on the cost structure due to the weaker local currencies and anticipated lower TCRC costs for some of the volume being sold for the remainder of the year. And with that, I'll now hand back the call to Jack. Thank you, Teitur.

Teitur Poulsen: We finished the quarter in the moderate net debt position of roughly $918 million excluding capital leases.

Teitur Poulsen: Rich.

Teitur Poulsen: Our leverage ratio of seven times.

Jack Lundin: Adjusted EBITDA.

Jack Lundin: Our liquidity liquidity position remains strong with our revolving credit facility to have an availability of.

Speaker Change: 1.45 billion.

Jack Lundin: As of the end of first quarter.

Teitur Poulsen: So all in all the company remains in good financial health with cost trending according to guidance and with some potential upside on the cost structure due to the weaker local currencies and anticipated lower TCR seat costs.

Teitur Poulsen: First of all about volume being sold for the remainder of the year.

Teitur Poulsen: And with that I'll now hand back the call to Chuck.

Jack Lundin: Thank you Ted.

Jack Lundin: At Casa Ronis, we have the ability to increase our ownership from 51% to 70% over a five-year period beginning in July, which will mark the one-year anniversary since the acquisition. This 19% increase will add approximately 25,000 tons of attributable copper to the company's production profile per year. We have the existing borrowing capacity on our current line of credit to exercise the option as well as an additional $400 million accordion as part of the original acquisition term loan agreement subject to satisfaction of precedent conditions.

Jack Lundin: At <unk>, we have the ability to increase our ownership from 51% up to 70% over a five year period, beginning in July which will mark the one year anniversary since the acquisition.

Jack Lundin: This 19% increase will add approximately 25000 tons of attributable copper to the company's production profile per year.

Jack Lundin: We have the existing borrowing capacity on our current line of credit to exercise the option as well as an additional $400 million accordion as part of the original acquisition term loan agreement subject to satisfaction of precedent conditions.

Jack Lundin: Now that Casaronis is fully integrated into the company and operating within our asset planning cycle and optimization process, as touched on earlier by Juan Andres, we are analyzing this opportunity in detail and anticipate updating the market when a decision has been made internally in conjunction with our board of directors. Now, we touch on our flagship Jose Maria project. Studies continued in the quarter for the open pit mine plan, resulting in various production and plant throughput scenarios which would improve against the 2020 feasibility study metrics shown on this slide. Offsite tradeoffs have been performed as well, which include concentrate transportation routes and infrastructure design work. Field activities were mainly associated with well hydrology work and exploration programs.

Jack Lundin: Now that <unk> is fully integrated into the company and operating within our asset planning cycle and optimization process as touched on earlier bank. One Andreas we are analyzing this opportunity in detail and anticipate updating the market. When a decision has been made internally in conjunction with our board of directors.

Jack Lundin: Now touching on our flagship Jose Maria Project Studies continued in the quarter for the open pit mine plan, resulting in various production and plant throughput scenarios, which would improve against the 2020 feasibility study metrics shown on this slide.

Jack Lundin: Offsite tradeoffs have been performed as well which include concentrate transportation routes and infrastructure design work.

Jack Lundin: Field activities were mainly associated with well hydrology work and exploration programs work continues on pump test to update water models, which should be finalized around the midpoint of this year.

Jack Lundin: Work continues on pump tests to update water models, which should be finalized around the midpoint of this year. Components of the grinding mills and gearless motor drives continue to be delivered in-country and will be warehoused in our facility in San Juan for safe storage, as outlined by Teitur. Work continued on permitting with the technical review of the tailings dam design, the northern corridor access road, and off-site power line EIAs. Government relations continued at both the national and provincial levels.

Jack Lundin: Components of the grinding mills and gearless motor drives continue to be delivered in country and we'll be warehouses in our facility in San Juan for safe storage as outlined by tighter.

Jack Lundin: Work continued on permitting with the technical review of the tailings Dam design, the Northern corridor access road and Offsite power line Eia's.

Jack Lundin: Government relations continue at both the national and provincial levels at the National level. The project team is monitoring the new government's incentive regime for large investments referred to as <unk> and the associated financial impacts that it would be that it would bring to Jose Maria.

Jack Lundin: At the national level, the project team is monitoring the new government's incentive regime for large investments, referred to as RIGI, and the associated financial impacts that it would bring to Jose Maria. In conjunction, discussions on provincial royalties and fiscal stability with the authorities in San Juan progressed during the quarter. As mentioned by Teitur during the financial update, capital expenditures for the quarter at Jose Maria amounted to $56 million out of the annual forecasted $225 million and continue to trend in line with our budget. Now to exploration. The drill season at Cumbre Verde was in its final stages at the end of the quarter and concluded prior to the first snowfall of the season, which we experienced in April.

Jack Lundin: In conjunction discussions on provincial royalties and fiscal stability with the authorities in San Juan progress during the quarter.

Jack Lundin: As mentioned by tighter during the financial update capital expenditures for the quarter that Jose Maria amounted to $56 million out of the annual forecasted $225 million and continued to trend in line with our budget.

Jack Lundin: Yeah.

Jack Lundin: We managed to drill 6 holes targeting the same mineralized system and structures that hosted high-grade mineralization on the neighboring property to Jose Maria, known as Lunawasi, drill by NGX Minerals. Early indications show that we have hit mineralization and evidently are drilling higher up in the system. This data will continue to be gathered and analyzed and will help us in our drill plan and targeting our drill plan for next season. On the Chilean side of the district, several holes have been completed both at the Angelica Oxide and Sulfide Target and at Casaronis Deep, which is below the current pit shell of the Casaronis Deposit.

Jack Lundin: Now to exploration.

Jack Lundin: The drill season at <unk> was in its final stages at the end of the quarter and concluded prior to first snowfall of the season, which we experienced in April.

Jack Lundin: We managed to drill six holes targeting the same mineralized system and structures that hosted high grade mineralization on the neighboring property to Jose Maria known as Luna <unk> drilled by <unk> minerals.

Jack Lundin: Early indications show that we have hit mineralization and have evidently our drilling higher up in the system.

Jack Lundin: This data will continue to be gathered and analyzed and will help us in our drill plan.

Jack Lundin: <unk>, our drill time for next season.

Jack Lundin: On the Chilean side of the district several holes have been completed both at the end jellicoe oxide and sulphide target and at Casper owners deep, which is below the current pit shell of the Casoron as deposit.

Jack Lundin: These high-priority targets could add resources and mine life to the current operation. Drilling so far has been encouraging as we follow up on historical higher-grade intercepts that were drilled previously by our partners. The results from the geophysics surveying that was completed this season on Casaronis's land package will be analyzed and overlaid with our existing database to highlight new targets.

Jack Lundin: These high priority targets could add resources and mine life to the current operation drilling so far has been encouraging as we follow up on historical higher grade intercepts that were drilled previously.

Jack Lundin: <unk>.

Jack Lundin: The results from the geophysics, serving that was completed this season on <unk> land package will be analyzed and overlaid with our existing database to highlight new targets.

Jack Lundin: Our exploration initiatives within this highly prolific vicua district are still in the early stages, and the data we collected this season will help us pinpoint and refine our targets to advance our efforts. In conclusion, we are pleased to present this update on our performance for the first quarter of 2024. Our production guidance is showing a 15% increase in our copper production profile compared to the previous year on a 100% consolidated basis. On a net attributable basis, the potential exercise of the Casaronis option would add an additional 25,000 tons of attributable copper production per year.

Jack Lundin: Our exploration initiatives within this highly prolific recruiting district are still in the early stages and the data. We collected this season will help us vector in and refine our targets to advance our efforts.

Jack Lundin: In conclusion, we are pleased to present this update on our performance for the first quarter of 2024, our production guidance is showing a 15% increase in our copper production profile compared to the previous year on a 100% consolidated basis.

Jack Lundin: On a net attributable basis, the potential exercise of the Castros option would add an additional 25000 tons of attributable copper production per year.

Operator: Growth initiatives at Jose Maria and through our district exploration campaigns create an exciting opportunity for significant growth in copper and precious metals production at the company. Operationally and financially, we continue to deliver according to targets and remain on track to achieve our annual guidance ranges for copper, zinc, gold, and nickel. Thank you, operator. I would like to open the call for questions. Thank you. Ladies and gentlemen, we will now begin the question and answer session.

Jack Lundin: Growth initiatives at Jose Maria and through our district exploration campaigns created an exciting opportunity for significant growth in copper and precious metals production at the company ops.

Operator: Operationally and financially we continued to deliver according to targets and remain on track to achieve our annual guidance ranges copper zinc gold and nickel.

Speaker Change: Thank you operator, I would like to open the call for questions.

Speaker Change: Thank you.

Speaker Change: Ladies and gentlemen.

Speaker Change: We will now begin the question and answer session.

Operator: Should you have a question, please press star 1 on your touchtone phone. You will hear a three-tone prompt acknowledging your request and that your hand has been raised. Should you wish to decline from the polling process, please press start. If you are using a speakerphone, please lift the handset before pressing any key.

Speaker Change: So do you have a question. Please press star one on your Touchtone phone.

Operator: You will hear a three ton prompt.

Operator: And your request.

Operator: And that your hand has been raised.

Operator: Should you wish to decline from the polling process. Please press star two.

Operator: If you're using a speaker phone please lift the handset before pressing any.

Operator: One moment, please, for your first question. Your first question comes from Orest Wowkodaw of Deutsche Bank. Your line is already open. Good morning, it's actually Orest from Scotiabank.

Operator: One moment. Please for your first question.

Orest Wowkodaw: Your first question comes from Forest Wow Codell of Deutsche Bank.

Orest Wowkodaw: Line is already open.

Orest Wowkodaw: I wanted to get an update from you with respect to the expected timelines for some of the key milestones at Jose Maria. I'm just currently wondering, you know, what your expectation may be for timing for the updated technical report for the fiscal stability agreement and, tied with that, permits. Thank you.

Orest Wowkodaw: Hi, good morning, it's sourced from Scotiabank actually.

Orest Wowkodaw: Wanted to get an update from you with respect to the expected timelines for some of the key milestones that Jose Maria.

Orest Wowkodaw: Currently wondering what your expectation maybe for timing for the updated technical report for the fiscal stability agreement.

Orest Wowkodaw: And tied with that would be permit.

Jack Lundin: Thanks for the question. Yeah, so, you know, we're still working on the timeline that we had at the beginning of the year. We've been concluding a lot of these trade-off studies, and I think, you know, within the next few months, we'll be able to really finalize them. The last one really coming in is water modeling, so that we can ensure we've got life of mine water production rates for the life of the mine and the operation.

Orest Wowkodaw: This is Jack here. Thanks, Thanks for the question yes.

Jack Lundin: So we're still working on the timeline that we that we had at the beginning of the year.

Jack Lundin: And concluding a lot of these tradeoff studies and I think within the next few months, we'll be able to really finalize the last one really coming in as water modeling. So that we can ensure we've got life of mine.

Jack Lundin: Production rates for the for the life of the mine of the operation. So we should be in a position to.

Jack Lundin: So, we should be in a position to conclude and update the technical report before the end of this year. And then, of course, as you know, we're working in parallel on a number of other initiatives. Government relations is one of them.

Jack Lundin: Conclude an update the technical report before the end of this year and then of course as known we're working in parallel on a number of another initiatives government relations is one of them. We've seen the rigi Bill which was part of the last bill that the.

Jack Lundin: We've seen the Rigi bill, which was part of the last bill that President Millet sent to Congress. So that bill was actually passed by the lower house and will make its way to the Senate at the end of this month to be voted on. So we're seeing progress at the national level as it pertains to incentivizing large investments. And at the local level, we're negotiating and looking to form a framework for fiscal stability still on target to achieve within this year. And then the third element, as known, is working on bringing in or forming a strategic partnership for the execution of Jose Maria. So we're still trending on the original timelines for us.

Jack Lundin: President <unk> sent to Congress.

Jack Lundin: That bill was actually passed by the lower house and makes its way to send it at the end of this month to be voted on so we're seeing progress at the national level as it pertains to incentivizing large investments and at the local level, we're negotiating and looking to form a framework for for fiscal stability still on <unk>.

Jack Lundin: I got to do within this year.

Jack Lundin: Establish that and then the third element is known is working on.

Jack Lundin: Bringing in are forming a strategic partnership for the execution of Jose Maria So we're still trending down.

Jack Lundin: The original timelines for us.

Jack Lundin: Okay, and just a quick follow-up question, should we anticipate that the strategic partner will come after everything else is sorted out? Or could that actually come first? Yeah, we're you know that we're running these three in parallel, and they could come at differing times. And I don't think one's required before the other.

Speaker Change: Okay, and just a quick follow up if I could should we anticipate that the strategic partner that would come after everything else is sorted out or could that actually come first.

Jack Lundin: Yes.

Jack Lundin: We're running these three in parallel and they could come at.

Jack Lundin: During times and I don't think one is required before the other so we could see a partner come in before forming fiscal stability.

Jack Lundin: So we could see a partner come in before forming fiscal stability. Of course, all of these different activities that we're working on influence how we execute the project. So having them come together at a similar time will be optimal, but you know, one doesn't inhibit the other.

Jack Lundin: Of course all of these different.

Jack Lundin: Activities that we're working on influence how we execute the project so having them come together at similar time will be optimal but.

Jack Lundin: One doesn't inhibit the other.

Speaker Change: Okay. Thank you.

Jack Lundin: Okay, thank you. Your next question comes from Jackie and Jeffrey Bielowski of BMO Capitals. Your line is already open.

Jack Lundin: Your next question comes from Jackie.

Speaker Change: Uh huh.

Speaker Change: Pre Bill allows key of BMO capitals Youre line is already open.

Jackie Przybylowski: Thank you very much and thanks for taking my questions, guys. Maybe I'll just follow up on the question that Orest just asked about Jose Maria. When it comes to the workflow here, say in the next year or so, I understand what you're saying would be optimal for all of these different processes to come together at the same time, but can you talk a little bit about the discussions you're having with potential strategic partners now and how much that may be already affecting the scope of the project as far as your feasibility studies anticipate?

Speaker Change: Thank you very much and thanks for taking my questions guys.

Speaker Change: I'll follow up on my question.

Jackie Przybylowski: That works.

Jackie Przybylowski: Im Jose Maria when it comes to the workflow here in the next say in the next year or so.

Jackie Przybylowski: I understand what youre, saying would be optimal for.

Jackie Przybylowski: For all of these.

Jackie Przybylowski: Different processes to come together at the same time, but can you talk a little bit about the discussions youre, having with potential strategic partners now and how.

Jackie Przybylowski: How much that may be.

Jackie Przybylowski: Already influencing the scope of the projects as far as your feasibility studies envisioning or.

Jackie Przybylowski: Or do you expect that when you settle or when you decide on who the strategic partner or partners are, those parties might want to have some influence on that scope? Thank you. Yeah, hi, Jackie.

Jackie Przybylowski: Do you expect that.

Jackie Przybylowski: When you settle or when you decide on who the strategic partner or partners are.

Jackie Przybylowski: Those parties might want to have some influence on on that scope.

Jack Lundin: Thanks for the question. So I think, you know, we've been studying the Jose Maria project for a long time, a number of years now, and I think when it comes to how you would execute a development for a large-scale open pit mining operation, there are not a lot of significant changes that you would have. It's quite a standard large-scale open pit.

Jackie Przybylowski: Yes, hi, Jackie Thanks for the question So I think.

Jack Lundin: We've been studying the Jose Maria project for a long time and the number of years now and I think when it comes to how you had executed development for a large scale open pit mining operation I mean, theres not a lot of significant changes that you would have its quite a standard large scale open pit so.

Jack Lundin: <unk> of infrastructure in term in terms of size of throughput.

Jack Lundin: So, you know, in terms of infrastructure, in terms of size of throughput, you know, we've basically pinned down and already ordered, as demonstrated in the call and as telegraphed, I think, by the company, that we have, you know, the large equipment already making its way into the country. So, you know, for us, the execution plan, bringing in a partner, it will be modified based on what that partnership looks But ultimately, I think the most technical parts of this execution are already set. And in any discussions that we've been having, you know, both publicly and internally, I think it's well understood how to build the mind.

Jack Lundin: We've basically pinned down and already ordered as as demonstrated in the call and as well telegraphed I think by the company that we have the large equipment already making its way into countries. So for us the execution plan, bringing in a partner it will be modified based on what that partnership looks like but.

Jack Lundin: <unk> I think.

Jack Lundin: The most.

Jack Lundin: Most technical parts of this execution are already set and in any discussions that we've been having.

Jack Lundin: Both publicly and internally I think it's well understood how to how to build the mine so for US we feel confident that.

Jack Lundin: So, you know, for us, we feel confident that, you know, advancing on the path that we're on while we control 100% of the asset is still going to be aligned with any future partner that would be coming in. And also, at the federal level and at the local level, discussing how we're planning to execute the development and ultimately operate Jose Maria is well understood. And what's exciting about Jose Maria is that it's the first development project that would be in the district.

Jack Lundin: Advancing on the path that we're on while we control 100% of the asset.

Jack Lundin: It is still going to be aligned with any future partner that would be coming in and also at the federal level and at the local level discussing how we're planning to execute the development and ultimately operate Jose Maria.

Jack Lundin: Well understood.

Jack Lundin: And what's exciting about Jose Maria is it's the first development project that would be in the district and so understanding that the infrastructure that gets put in place for Jose Maria would likely be shared by future developments is a key component.

Jack Lundin: And so understanding that the infrastructure that gets put in place for Jose Maria would likely be shared by, you know, future developments is a key component to how this project needs to come together. That's super helpful. Thank you very much for that answer. And on a second question, I can.

Jack Lundin: This project needs to come together.

Jack Lundin: That's super helpful. Thank you very much for that answer.

Jack Lundin: On the second question, if I if I can.

Jackie Przybylowski: In the release, you talked about Chapada having higher waste movement as you're moving, or sorry, reducing the waste movement as you're moving to different areas of the pit. And you talked about processing more stockpiled ore. I'm not I wasn't totally clear.

Jack Lundin: In the release you talked about Chipotle.

Jackie Przybylowski: Having higher waste movement as you're as you're moving.

Jackie Przybylowski: Sorry.

Jackie Przybylowski: Reducing the waste movement nature, and moving to different areas of the pit and and you talked about.

Jackie Przybylowski: Processing more stockpiled ore.

Jackie Przybylowski: It wasn't totally clear as I was hoping you could just clarify for me.

Jackie Przybylowski: Is the processing of stockpiled ore unique to Q1? Do you expect to get more into the higher-grade ores again for the rest of the year? Or is this going to be a function of this change to the mine plan overall? Is stockpiled ore going to continue to be present through the year? Hi Jackie

Jackie Przybylowski: Is the processing of stockpiled ore sort of unique to Q1 do you expect to get more into the higher.

Jackie Przybylowski: A higher grade ores again.

Jackie Przybylowski: For the rest of the year or is this still going to be a function of the change to be to the mine plan. Overall is stockpiled, we're going to continue to be present through the year. Thanks.

Jackie Przybylowski: Hi, Jackie.

Juan Andres Morel: This is Juan Andres. Thanks for the question. This is the result of the asset optimization program.

Jackie Przybylowski: This is one Andreas thanks for the question.

Juan Andres Morel: This is a result of the asset optimization program.

Juan Andres Morel: So we have optimized the mine plan, and we have significantly reduced the waste movement. And you can see that reflected in the operating cost in Chapada. And in order to do that, we have increased the amount of stockpile going to the mill. So we're roughly feeding 30% of the mill feed from the stockpile.

Juan Andres Morel: So we have optimized the mine plan and we have significantly reduced the waste movement and you can see that reflected on the operating cost in Chicago.

Juan Andres Morel: And in order to do that we have increased the amount of stockpile going to the mill. So we're roughly 30% of the mill feed from the stockpile and during last year, we did.

Juan Andres Morel: And last year, we did a sonic drilling campaign to understand the grade distribution of the ore in the stockpile. So now we have better control of the grades and the recoveries from the stockpile. And that gives us the assurance to feed that ore into the mill. So, sorry, are you expecting the grades to get better through Q2, through Q4 this year? Will it be better than Q1? Yes. Yes, we have a, as I said, a great model for the stockpile, and by doing that, we should be able to high-grade the extraction from the stockpile, and grades should improve slightly in the second half of the year. Thank you very much.

Juan Andres Morel: Sonic drilling campaign to understand the grade distribution in the ore in the stockpile. So now we have a better control of the grades and recoveries from the stockpile that gives us the assurance to feed that ore into the mill.

Speaker Change: So so sorry, just youre expecting the grades will get better through Q2 through Q4, this year will be better than Q1, yes.

Juan Andres Morel: Yes, we have as I say, we have a great model for the stockpile and by doing that we should be able to high grade.

Juan Andres Morel: <unk> from the stockpile.

Juan Andres Morel: Stockpile and grades should improve slightly in the second half of the year.

Speaker Change: Thank you very much thanks, Jason and Jackfish one thank you.

Jack Lundin: Thanks, Juan, Andres, and Jack for your time. Your next question comes from Bryce Adams of CIBC Capital Markets. Your line is already open.

Juan Andres Morel: Your next question comes from Bryce Adams of CIBC capital markets. Your line is already open.

Bryce Adams: Thank you, Jack and team, for the presentation. Again, this question is probably for Juan Andres. So, I understand the grade profile shouldn't improve at Candelaria and at Chapada, but this question relates to the grade profile at Caceronas and the outlook there. The grade profile was quite strong in Q1. Is that sustainable for Q2? At the minute, I've got the rest of the year grade as 0.40%.

Bryce Adams: Thank you Jack and team for the presentation again. This question is probably for one Andreas.

Bryce Adams: Is that fair, or is there some variability to be expected, and maybe the grade profile can do a bit better than that? Yeah, thank you, Bryce. You're right.

Bryce Adams: So I understand the grade profile should improve it can deliver and Jakarta, but this question relates to the great profile of cats are I understand the outlook there.

Bryce Adams: First of all was quite strong in Q1 is that sustainable for Q2 at the minute I've got the rest of the year grade as 0.40% is that fair or is there some variability to be expected and maybe the great profile can do a bit better than that.

Juan Andres Morel: We expect the grades to improve throughout the year. Although we're slightly weighted to the first quarter, we still have some opportunities to bring higher grades for the remaining of the year in Casa Grona. Okay, so Q2 could be better than Q1? I would say the second half will be better than Q1.

Speaker Change: Yes, Thank you Bryce.

Speaker Change: Youre right.

Juan Andres Morel: We expect the grades to improve along the year.

Juan Andres Morel: Although we're slightly weighted to the first quarter, we still have some opportunities to bring a higher grades for the remaining of the year in concert on it.

Juan Andres Morel: Okay, So Q2 could be better than Q1.

Juan Andres Morel: I would say second half will be better than Q1.

Bryce Adams: Okay, thanks for that. That's useful. Your next question comes from Ralph Profiti of 8 Capital. Your line is already open.

Speaker Change: Okay. Thanks for that that's useful.

Bryce Adams: Okay.

Ralph M. Profiti: Your next question comes from Ralph <unk> of eight capital your line is already open.

Bryce Adams: Yeah.

Ralph M. Profiti: Thanks, Operator. Jack, you talked about preconditions. Just wondering, you know, if there are any that are perhaps sort of a cause for concern that may say delay? Page PAGE of NUMPAGES www.verbalink.com Page PAGE of NUMPAGES, Thanks, Ralph.

Ralph M. Profiti: Thanks, operator, good morning, everyone.

Ralph M. Profiti: Jack you talked about the pre conditions.

Ralph M. Profiti: Cause erroneous Optionality decision and just wondering if.

Ralph M. Profiti: If there are any that are perhaps sort of cause for concern that may say delay or maybe need to be addressed on mundane part or as these things largely in consideration of sort of administrative in nature.

Jack Lundin: Yeah, I think, you know, good question. We've had now, I guess, 10 months of operatorship under our belt with Casaronis. Now that it's integrated into the company, and as I mentioned in the presentation, it makes its way into our normal annual asset business planning cycle. And so, therefore, we're just wanting to make sure that we can give it the rigor that it deserves, both from an operator standpoint in the field, and as it makes its way through our regular cycle, to ensure that we have confidence in exercising that call option. I mean, there's no indication that we wouldn't want to be doing that at this time.

Jack Lundin: Thanks, Ralph Yes, I think good question, we've had now I guess 10 months of operator ship.

Jack Lundin: Our eight months of operator ship under our belt with <unk> and now that it's integrated into the company and as I mentioned in the presentation. It makes its way into our normal annual asset business planning cycle.

Jack Lundin: Therefore, we're just wanting to make sure that we can get the rigor that it deserves both from an operator standpoint in the field and as it makes its way through our regular cycle to ensure that we have confidence in and exercising that that call option I mean, there is no.

Jack Lundin: Indication that we wouldn't want to be doing that at this time, but of course, we just need to follow a proper process before making a call option for that size. So I think it's trending in the right direction, we haven't seen anything in the operation that is.

Jack Lundin: But of course, we just need to follow the proper process before making a call option for that size. So, I think, you know, it's trending in the right direction. We haven't seen anything in the operation that is, you know, making us feel less confident in the acquisition. It's actually performing better than expected, and we've been getting good rates from the ground water wells that provide the water required to operate the mine. And, you know, even with the conditions at altitude, we've had some extreme weather events with snowfall and high winds, and we see that it's a strong operating group there.

Jack Lundin: Making us feel less confident in the acquisition, it's been actually performing better than expectation and we've been getting good rates from the groundwater wells that provide the water required to operate mine.

Jack Lundin: So, overall, I think we're very confident in Casaronis, and we're confident in its ability to actually get better as we look to optimize through various planning processes and once we really update the life of mine plan for 2025. So, I would say it's going very well for us so far.

Jack Lundin: And even with the conditions at altitude, we've had some extreme weather events with snowfall.

Jack Lundin: Hi wins, and we see that it's a strong operator operating group there. So overall I think we're very confident in <unk> and we're confident in its ability to actually.

Jack Lundin: Get better as we look to optimize through various.

Jack Lundin: Planning processes and once we really updated life of mine plan for 2025, So I would say.

Jack Lundin: It's growing very well for us so far.

Jack Lundin: Jack that's great to hear I appreciate that.

Jack Lundin: And I wanted to come back to the synergies between candle area in color on us.

Jack Lundin: 5% to 30 million or.

Jack Lundin: Somewhere around that range. Can you sort of bring us up to date on that type of work, whether or not that is reflected in the guidance? and many more to come over the 24 and 25 and whether or not potentially you have another run where we could see ups. Yeah, I'll quickly hand it over to Juan Andres. But just before that, I think, you know, one area for us to focus on, and one area that we are focusing in on is operating costs and looking at, you know, bringing down the operating costs at Casa Ronas as much as possible, lower grade nature, And so you do have some associated costs with that operation that would be different at Candelaria.

Jack Lundin: Somewhere around that range was previously thought can you sort of bring us up to date.

Juan Andres Morel: That type of work, whether or not that is reflected in the guidance, where there perhaps could be more to come over the course of 'twenty, four 'twenty, five and whether or not potentially you have another run.

Juan Andres Morel: Where we could see upside to that number.

Jack Lundin: Yes, I'll quickly hand, it over to Juan Andres, but just before that I think one area for us is to and one area that we are focusing in on is operating cost and looking at.

Juan Andres Morel: <unk> down on the operating cost at <unk> as much as possible.

Juan Andres Morel: Lower grade nature high in altitude and so you do have some associated costs to that operation that would be different at candelaria, but there are also a number of initiatives, where you can consolidate costs and ultimately.

Juan Andres Morel: Bring bring the operating cost down so that's been a focus for us.

Jack Lundin: But there are also a number of initiatives where you can consolidate costs and ultimately, you know, bring operating costs down. So that's been a focus for us. And I'll hand it over to Juan Andres. But I think it's just important to say that, you know, overall, having the presence that we do in Chile and in the Atacama region really does give us a great opportunity to find more synergies. Good

Jack Lundin: I'll hand, it over to Juan Andres, but I think it's just important to say that overall, having the presence that we do in Chile in Indiana camera region really does give us a big opportunity to to find more synergies.

Juan Andres Morel: This is Juan Andres. During Q1, we completed the creation of what we call the regional office in Chile. So that is a group that brings together the support functions from both companies, finance, procurement, HR, and IT. So as you said, there's more to come. In 2023, we were able to capture between $12 to $14 million of savings from some low-hanging fruit opportunities.

Jack Lundin: Good morning, Ralph This is Juan Andres.

Juan Andres Morel: During Q1, we completed the creation of what we call the regional office in Chile. So that is a group that brought together.

Juan Andres Morel: Our support functions from both companies.

Juan Andres Morel: He knows procurement HR it.

Juan Andres Morel: So as you said there is more to come in 2023, we were able to capture between $12 million to $14 million of savings from some low hanging fruit opportunities, but these new group is looking at all the opportunities going forward and we know that there are a lot of opportunities that will be reflected later.

Juan Andres Morel: But this new group is looking at all the opportunities going forward. And we know that there are a lot of opportunities that will be reflected later in our cost guidance. For 2024, we have already reflected some of those, but we still think that there's more to come. Excellent to hear. Thanks very much.

Juan Andres Morel: <unk> on our cost guidance for 2024, we have reflected some of those but we still think that there is more to come.

Juan Andres Morel: Excellent to hear thanks very much.

Juan Andres Morel: Your next question comes from Ioannis Masvoulas of Morgan Stanley. Your line is already open. Hello, thank you very much for the presentation. There are a few questions left on my side.

Speaker Change: Your next question comes from.

Ioannis Masvoulas: <unk> must voice of Morgan Stanley Your line is already open.

Ioannis Masvoulas: First one, given the tightness we've seen in the copper concentrate market and the recent rise in the copper price, have you seen a greater number of parties reaching out when it comes to the strategic partnership at Josemaría? And have you seen a different nature of those parties in terms of having more potential offtakers or have these discussions and parties haven't really changed in the past few months? Yeah, I think, you know, given the recent run up in both base and precious metals, and, you know, I think the world is starting to wake up and understand that there's a struggle to meet the demand that's growing for base metals, we have seen, you know, significant inbounds and interested parties, you know, no, no, I think, new players to the game that we haven't spoken to in the past, but maybe the, you know, the level of interactions have have definitely ramped up.

Ioannis Masvoulas: Yes, Hello, Thank you very much for the presentation a few questions left from my side first one gig.

Ioannis Masvoulas: Given the tightness, we've seen the copper concentrate market and and the recent rise in the copper price have you seen a greater number of parties, reaching out when it comes to strategic partnership.

Ioannis Masvoulas: Jose Maria and have you seen a different nature of those partners in terms of having more potential off takers or have these discussions and partners havent really changed in the past few months.

Ioannis Masvoulas: Yes, I think given the recent run up in both base and precious metals and I think the world is starting to wake up and understand that there is struggled to meet the demand thats growing.

Ioannis Masvoulas: For base metals, we have seen a significant inbounds and interested parties.

Speaker Change: No I think.

Ioannis Masvoulas: New players to the game that we haven't spoken to in the past, but maybe the.

Ioannis Masvoulas: The level of interactions have definitely ramped up and I think.

Ioannis Masvoulas: And I think, you know, seeing what the opportunity is with Jose Maria and what that project means to Argentina, but what it also means to building out the greater Vicuna district, definitely receiving, you know, more inbounds, and more at a frequent pace than the last kind of earlier in Q1. Very clear, thanks for that. And the second question, you've talked in the past about the potential for cross-border aspects of Jose Maria when it comes to water, power, and concentrate shipments. Can you perhaps give us an update on the timing on this?

Ioannis Masvoulas: What the opportunity is with Jose Maria and what that project means to Argentina, but what it also means to building out the.

Ioannis Masvoulas: The greater Vicuna district.

Ioannis Masvoulas: Definitely receiving.

Ioannis Masvoulas: More inbounds and more at a frequent pace than the last kind of earlier in Q1.

Ioannis Masvoulas: Very clear thanks for that and then the second question you've.

Ioannis Masvoulas: You've talked in the past about a potential for a cross border aspects.

Ioannis Masvoulas: Jose Maria when it comes to water power concentrate shipments.

Jack Lundin: Do you expect to get visibility this year, or could it take a bit longer for some of these aspects to materialize? Yeah, I think certain elements within that will take longer to materialize. But, you know, the first one for us being how we intend to transport our production, our concentrate. We originally were looking at moving our product east. However, now, based on recent engagements and understanding the project better and knowing that we have infrastructure built out in the West and we have a port and infrastructure to, you know, sufficient capacity to basically transport concentrate from Jose Maria out West through Chile, this very much does make more sense for us to be pursuing. And of course, we've had discussions both in Chile and Argentina, locally and at the federal level on, you know, our logistics planning. So I think phase one is looking at the transportation of concentrate.

Ioannis Masvoulas: Can you, perhaps give us an update on timing.

Jack Lundin: Timing on this do you expect to get visibility this year or could you take a bit longer for some of these aspects to materialize.

Jack Lundin: Yes, I think certain elements within that will take longer to materialize, but the first one for us being how we intend to transport our production our concentrates.

Jack Lundin: And then ultimately, when you scale up and look at the sequence of how you can continue to add further value to the district, looking at things like, you know, water or power. I mean, these are initiatives that we are looking at now, but I think might take a bit longer to mature. So right now, the focus is on looking at transportation of concentrates and going West through Chile. Very clear. Thank you.

Jack Lundin: Originally we were looking at moving our product east.

Jack Lundin: However, now based on recent engagements and understanding the project better and knowing that we have infrastructure built out in the west and we have a port.

Jack Lundin: And infrastructure to sufficient capacity to basically transport concentrate from Jose Maria out West through Chile, that's very much does.

Jack Lundin: Make more sense for us to be pursuing and of course, we've had discussions both in Chile, and Argentina locally and at the federal level on our logistics planning.

Jack Lundin: Phase one is looking at the transportation of concentrate and then ultimately when you scale up and looking at the sequence of how you can continue to add further value to the district looking at things like <unk>.

Jack Lundin: Our power I mean these are initiatives that we are looking at now, but I think might take a bit longer too.

Jack Lundin: Mature so.

Jack Lundin: Now the focus is on looking at transportation of concentrate and going west virtually.

Jack Lundin: And last question: on the copper hedging you announced, which is opportunistic in nature, do you expect to ramp up this kind of activity? And could you potentially look at the other base metals that you're exposed to?

Speaker Change: Very clear thank you and last question.

Jack Lundin: On the corporate hedging you announced which is opportunistic in nature did you expect to ramp up the kind of activity and could you potentially look at the other base metals that you're exposed to.

Teitur Poulsen: Yeah, good morning. Yeah, on the Copper Hedge, it's right, as you say, it was an opportunistic move. I mean, we look every month at how much volume we are likely to price in any given month. And what we saw in sort of March and April was that May looked to be a disproportionate amount of volume with the run-up in copper prices we saw at that time.

Speaker Change: Yes, good morning on the copper hedge as right as you say it was an opportunistic move I mean, we look every month.

Teitur Poulsen: How much volume, we are likely to price in any given month.

Teitur Poulsen: And what we saw in sort of March April was that may look to be.

Teitur Poulsen: Pricing, a disproportionate amount of volume and with the run up in copper prices, we saw at that time.

Teitur Poulsen: We just felt it was prudent to put a floor on some of that volume in that month, just to protect so that the average price for the full year wouldn't be disproportionately penalized in the event that we saw a big reduction in copper prices during May. So it's very much opportunistic in nature. And we do not intend to systematically hedge copper as we move forward; it will be measured on a case by case basis. And if you see similar opportunities, we might do some, but it would not be part of the base plan as such. Very clear. Thanks again.

Teitur Poulsen: Just felt it was prudent to put a floor on some of that pricing volume and the amount.

Teitur Poulsen: Just to protect the average pricing for the full year wouldnt be disproportionately penalized in the event, we saw a big reduction in copper prices. During made so it's very much opportunistic in nature, and we do not intend to systematically hedge copper as we move forward. It will be measured on a case by case basis, and if you see similar opportunities.

Teitur Poulsen: We might do some book.

Teitur Poulsen: It would not be part of the based on the search.

Teitur Poulsen: Very clear thanks again.

Stefan Ioannou: Your next question comes from Steven Ioannou of Cormark Securities. Your line is already open. Thanks very much, everybody. I'm just curious about Coomber Verde. You mentioned, obviously, you got six spill holes into it, that's great. And that it looked like you may have hit the system higher than what was intersected over on the neighboring Lunawasi. Just wondering, can I infer from that you sort of hit the targeted structures, but you were maybe just higher up in them, where you may not see the grade that you might expect lower down?

Teitur Poulsen: Your next question comes from Steven.

Stefan Ioannou: Yeah.

Stefan Ioannou: <unk> of core Mark Securities. Your line is already open.

Stefan Ioannou: Okay. Thanks, very much everybody and this just curious on <unk> you mentioned, obviously got six drill holes into its great and then it looked like you may have hit the system are higher than what was intersected over in the neighboring I'm Gonna YC. Just wondering does that can I infer from that that you sort of hit the targeted structures that were maybe just high wrapping them, where you may not.

Stefan Ioannou: See the grade that you might expect lower down.

Stefan Ioannou: Or is there some other sort of aspect to it that we should consider? And will we eventually see these results? Or should we not? Or should we anticipate we probably won't see them until next season's drilling along with those additional results that come six to 12 months from now? Hey there, good morning.

Stefan Ioannou: Or is there some other sort of aspect to it that we should consider and when we eventually see these results are or should we not or should we anticipate we probably wouldn't see them until next season's drilling on along with those additional drill results that come.

Stefan Ioannou: Six to 12 months from now.

Stefan Ioannou: Yeah, great question. And you know, for the questions related to exploration in the Vicua District, we brought our VP of Exploration, Tim Walmsley, and he's in the room with us, so he'll be able to talk about that. Hi, Steven.

Speaker Change: Hey, there good morning, Yeah, Great question and further questions related to exploration at in the Vicuna District, we brought our VP of exploration, Tim will honestly and he's in the room with us so it will be able to talk to that.

Stefan Ioannou: Great.

Tim Walmsley: Yeah, we've hit in a number of holes; we're hitting highly mineralized veins and structures with grains approaching that of our neighbor to the north, but at thinner widths to date. But they appear to be similar in nature and extremely promising, so we're hopeful that as we get further west in our drilling, further north and slightly deeper, we're going to see more exciting results. And those will probably come with longer drill holes in future campaigns.

Tim Walmsley: Hi, Steven.

Tim Walmsley: Yes, we've hit.

Tim Walmsley: In a number of holes were hitting a highly mineralized veins and structures.

Tim Walmsley: With with grades approaching that of to our neighbor to the north but over a thinner width to date, but there.

Tim Walmsley: There appear to be similar in nature and the extremely promising so we're hopeful that as we get further west in our drilling further north and slightly deeper we're going to see more exciting results and those will probably come with longer drill holes.

Tim Walmsley: Future campaigns.

Tim Walmsley: Okay, okay, that's that's very helpful. Great to hear. Yeah, thanks very much, guys. Your next question comes from Dalton Baretto of Canaccord. Your line is already open. Thanks, good morning, Jack and team. Back to Jose Maria.

Speaker Change: Okay. Okay. That's that's that's a very helpful. Great to hear thanks, very much guys.

Tim Walmsley: Okay.

Tim Walmsley: Your next question comes from Dalton Barreto of Canaccord. Your line is already open.

Dalton Baretto: Jack, given what you said earlier about sort of the infrastructure being in place and, you know, shared across the broader Petunia district, I'm just wondering, you know, as you pull the Jose Maria project design together, how much of the return metrics on this thing are actually going to matter in terms of greenlighting this? And is there sort of a minimum IRR, let's say you want to accept on this project on a standalone basis? Hey, Dalton, thanks for the question.

Dalton Baretto: Thanks, Hey, good morning, Jack and team back to Jose Maria Jack given what you said earlier about sort of the infrastructure being in place and shared across the broader picture of the district I'm just wondering as you pull the Jose Maria project designed together how much of the return metrics on this thing actually going to matter in terms of <unk>.

Dalton Baretto: In lighting and is there sort of a minimum IRR, let's say you want to accept on this project on a standalone basis.

Jack Lundin: Yeah, I mean, what we're working on at Lundin Mining is making sure that Jose Maria stands on its own and that it can be built as a standalone asset. And so, you know, we've been working hard on looking at optimizations, on looking at, you know, flexing the mine plan and seeing what we can get in terms of optimal run rates, knowing that we've got three SAG mills and seeing if we can go from 150,000 tons per day up to, you know, anywhere around 200,000 tons per day. And really trying to get into the high-grade core of the deposit as soon as possible to bring the payback, you know, or shorten that payback, and therefore increase the economics of the project.

Dalton Baretto: Hey, Doug Thanks.

Dalton Baretto: Thanks for the question, Yes, I mean, what we're working on that Lundin mining is making sure that Jose Maria stands on its own and that it can be built as a standalone aspect and so we've been working hard on looking at optimizations on looking at.

Jack Lundin: Flexing the mine plan and seeing what we can get in terms of optimal run rates knowing that we've got three Sag mills and seeing if we can go from 150000 tons per day up to anywhere around 200000 tons per day, and really trying to get into the high grade core of the deposit as soon as possible to bring the payback.

Jack Lundin: Shorten that payback and therefore increase the economics of the project. So for US we know that Jose Maria is one asset in the broader district, we've already got the operating mine on the Chilean side of the Vicuna district and for US to do the same on Jose Maria which would be in the argentinean side of the district.

Jack Lundin: So, you know, for us, we know that Jose Maria is one asset in the broader district. We've already got the operating mine on the Chilean side of the Vicua district, and for us to do the same on Jose Maria, which would be on the Argentinian side of the district, everything that we're working on is making sure that it stands well on its own.

Jack Lundin: Of course, we want to make sure, though, that we build this mine so that it can add future lines, or it can be expanded to take on more capacity. And that capacity could come from anywhere else in the district on the Argentinian side, hence why we're also hitting hard on exploration efforts near Jose Maria, you know. But for us to control what we have today and maximize the value of Jose Maria is the focus for us, Dalton. Great, thanks for that, Jack. And then just on the Argentine side, I know a lot of your peers as well have been meeting with Millet.

Jack Lundin: Everything that we're working on is making sure that it stands well on its own of course, we want to make sure though that we build this mind so that it can add future lines or it can be expanded to take on more capacity and that capacity could come from anywhere else in the district on the Argentinean side, Hence why we're also hidden.

Jack Lundin: Hard exploration efforts near Jose Maria but for us to control, what we have today and maximizing the value of Jose Maria is the focus for us Dalton.

Jack Lundin: And I'm just wondering, you know, is there the opportunity for you guys to sort of carve out your own terms, specifically as it relates to the project? Or is it just the stuff that's basically going to the legislature at this point in time? Now, you negotiate the fiscal stability framework at the provincial level, and what we're looking at is forming a framework for fiscal stability for Jose Maria and the region around Jose Maria. What would influence that fiscal stability framework, of course, is what's happening at the federal level.

Dalton Baretto: Great. Thanks for that Jack and then just on the Argentine side I know a lot of your peers as well have been meeting with my life and.

Jack Lundin: And I'm just wondering.

Jack Lundin: Is there the opportunity for you guys.

Jack Lundin: Sort of carve out your own terms, specifically as it relates to the project or is it just the stuff. That's basically go into the legislature at this point in time.

Jack Lundin: So you.

Jack Lundin: Negotiate the fiscal stability framework at the provincial level and what we're looking at is forming a framework for fiscal stability for Jose Maria in the region around Jose Maria.

Jack Lundin: Influenced that fiscal stability framework of course is what's happening at the federal level and so this.

Jack Lundin: And so this large project investment incentive regime that Ile and his team have put through to Congress will influence the overall framework for how we look at Jose Maria, for how the effective tax rate and offtakes for the project will look. So, you know, we are looking at working on this asset, not with a group of mining peers in Argentina but Lundin Mining alone, and looking at Jose Maria and the region around it for fiscal stability and how we can, you know, achieve optimal terms for moving that forward. Great, thanks.

Jack Lundin: Large project investment incentive regime that delay and his team have put through to Congress will influence. The overall framework for how we look at and Jose Maria for how the effective tax rate and off takes for the project will look.

Jack Lundin: So we are looking at working on this asset not with a group of mining peers in Argentina, but lundin mining alone and looking at Jose Maria in the region around it for fiscal stability and how we can achieve optimal terms for moving that forward.

Dalton Baretto: And then just one last one on the partnership process. Is it still your intention to keep control of the project? And is there any sort of key criteria you're looking for in a partner, whether it be technical or balance sheet?

Speaker Change: Great. Thanks, and then just one last one on the on the partnership process is it still your intention to keep control of the project and is there any sort of one key criteria youre looking for in a partner whether it would be tactical on our balance sheet.

Dalton Baretto: Okay.

Jack Lundin: Yeah, I think, you know, right now when it comes to partnership for us, we want to have a seat at the table. We want to make sure that we can have a significant influence over the development and, ultimately, the operation because we know that Jose Maria is going to be something that ignites the broader Vicua district to be developed. And we are focused on growing and being significant players in the district for the long term.

Speaker Change: Yes, I think.

Dalton Baretto: Now when it comes to partnership for US we want to have a seat at the table, we want to make sure that we can have a significant influence over the development and ultimately the operation because we know that.

Jack Lundin: Maria is going to be something that ignites the broader vicuna district to be developed and we are focused on growing and being.

Jack Lundin: Significant players in the district for the long term. So that's a key requirement for us in any any.

Jack Lundin: So that's a key requirement for us in any future or potential partnership that we would form. And so, you know, given the fact that the Lundin group has been involved in Argentina for the better part of 30 years, I think we have the team and the capabilities in the country, and also from a project standpoint, we've got a very strong project team in Jose Maria that's capable of leading the development.

Jack Lundin: Future potential partnership that we would form.

Jack Lundin: And so I.

Jack Lundin: I think as well given the fact that the lending group has been involved in Argentina for the better part of 30 years.

Jack Lundin: We have the team and the capabilities in country and also from a project standpoint, we've got a very strong project team on Jose Maria that's capable of leading the development.

Jack Lundin: So it remains to be seen yet on what that arrangement looks like for the partnership. But for us, you know, having support for technical and financial backing and for making sure that we have a sound execution plan all come together in influencing how we form that arrangement. Great. Thanks, Jack.

Jack Lundin: So remains to be seen yet on what that arrangement looks like for the partnership but for us having support for technical and financial backing and for making sure that we have a sound execution plan all come together in influencing how we how we form that arrangement.

Greg Barnes: Good luck to you guys. Your next question comes from Greg Barnes of TD Security. Your line is already open in Q4 this year, but that's basically for the second half of the year, H2.

Speaker Change: Great. Thanks, Jack and good luck to you guys.

Greg Barnes: Thank you.

Greg Barnes: Your next question comes from Greg Barnes of TD Securities Your.

Greg Barnes: Your line is already open.

Greg Barnes: A couple of quick questions for one Andreas I think you said, you anticipated and seven 8% grade candle area.

Greg Barnes: In Q4 this year.

Greg Barnes: That's.

Greg Barnes: Basically poor second half of the year.

Greg Barnes: Two.

Greg Barnes: Okay, great. Thank you.

Greg Barnes: Okay, great. Thank you. Secondary, I also think you said for Candelaria that you have completed the asset optimization studies that you were doing and are ready to implement them. Wondering what impact you expect on the asset as a result of that or any costs or cost reduction that you might. Yes, as I said before, we're looking at all aspects, reducing costs, increasing productivity, and efficiency across all the processes in our assets. So, as I said before, we're finalizing the details. Thank you very much.

Greg Barnes: Secondary I also think you said for Ken Larry you have completed the asset optimization studies that you were you're doing in ready to implement them.

Greg Barnes: Wondering what impact you expect on the asset as a result of that ore costs saw cost reductions that you might see.

Greg Barnes: Yes.

Greg Barnes: <unk> said before were looking at.

Greg Barnes: All aspects reducing costs increasing productivity.

Greg Barnes: You can see across all the processes in our assets so.

Greg Barnes: As I said before we're finalizing the.

Greg Barnes: Detail.

Greg Barnes: Design of these initiatives and we will be moving into implementation shortly and we're looking at updating the market at the end of the year on the impact of these initiatives, okay, Okay and okay. Great. Thank you.

Greg Barnes: Great, thank you. Thanks, Greg. Your next question comes from Daniel Major of UBS. Your line is already open.

Daniel Edward Major: Thanks, Craig.

Daniel Edward Major: Your next.

Greg Barnes: Next question comes from Daniel Major of UBS. Your line is already open.

Daniel Edward Major: Great, thanks for the questions. Your first question just relates to tax somewhat. It has two parts to it.

Daniel Edward Major: Great. Thanks, Thanks for the questions.

Daniel Edward Major: Your first.

Daniel Edward Major: Question, just relates to tack somewhat it has two parts to it.

Teitur Poulsen: You've been recognizing P&L tax from Casarones since you started consolidating the asset, I think $22 million of corporation tax in the first quarter. But my understanding was that because of deferred tax allowances, you're not paying a huge amount of cash tax on this asset. Can you give us an outlook on cash tax and the overall tax rate at Casarones? And then, secondly, on the group level, where would you expect the group effective tax rate on P&L and cash to be for 2024-2025?

Daniel Edward Major: You've been recognizing.

Daniel Edward Major: Recognizing P&L tax from pass around us.

Teitur Poulsen: Obviously since you started consolidates and the asset I think $22 million of corporation tax in the first quarter.

Teitur Poulsen: My understanding was that because of deferred tax allowances, you're not paying a huge amount of cash tax at this asset can you give us.

Teitur Poulsen: Outlook on the cash tax.

Teitur Poulsen: And the overall tax rate.

Teitur Poulsen: Our cost awareness and then the second question just a.

Teitur Poulsen: On the group level.

Teitur Poulsen: Why would you expect group effective tax rate P&L and cash to be for 2020 for 2025.

Teitur Poulsen: Yeah, thanks for the question. I mean, on Casa Rona, we have significant tax losses, as you point out, on corporation tax to the tune of $4 billion. So, you know, unless things go extraordinarily well or copper prices go to very elevated levels, we do not actually anticipate to pay any cash corporate tax on that asset. And if we do, it'll be a very nice problem to have.

Speaker Change: Yeah. Thanks for the question I mean on customer only we have cigna.

Teitur Poulsen: Significant tax losses, as you point out on Corporation tax.

Teitur Poulsen: To the tune of $4 billion.

Teitur Poulsen: So you know unless things go extraordinarily well or copper prices go very elevated levels, we do actually not anticipate to pay any.

Teitur Poulsen: Gosh Corporation tax on that asset.

Teitur Poulsen: And if we do it'll be a very nice problem to have.

Teitur Poulsen: But obviously, the mining royalty tax will still apply to Casa Rona as it does to Candelaria, and on Casa Rona, we are grandfathered in on the old regime on Casa Rona too. 20 out to 2027, I believe it is, or from 2028, we will switch into the recently approved new mining royalty tax regime, and, in Chile, just as Candelaria is already under that new regime as we speak. So that will be the thesis going forward. So there will be some cash tax on Casarona, but it will not be in the form of corporation tax; it will be in the form of mining royalty tax.

Teitur Poulsen: But obviously the mining royalty tax will still apply to casserole NASA does too.

Teitur Poulsen: To Candelaria and <unk> Sirona, we are grandfathered on the old regime on cost around the two.

Teitur Poulsen: The outlook 2027, I believe it is so from 2028, we will switch into the recently approved new mining grown to tax regime.

Teitur Poulsen: And children Justice malaria is already on the adapt new regime as we speak.

Teitur Poulsen: So that would be the so that will be the thesis going forward. So there will be some cash tax on casserole, nobody will not be in the form of corporation tax it will be in the form of the mining royalty tax.

Teitur Poulsen: And I think, you know, going forward on the group consolidated tax rate. I mean, we typically hovered around 35 to 40 percent of the sort of effective rate. Obviously, it's a progressive mining royalty tax in Chile, so the higher our margins, the higher that effective tax rate will be.

Teitur Poulsen: And I think going forward on the group consolidated tax rate.

Teitur Poulsen: We would typically hovered around 35% to 42% sort of effective rate, obviously, it's a progressive mining royalty tax in Chile, So the higher our margins do you hired up to <unk>.

Teitur Poulsen: The tax rate will be but I would expect it to be in that.

Teitur Poulsen: But I would expect it to be in that ballpark moving forward. Okay, thanks. And so just to be clear on the Casarenas, you will continue to book P&L tax like you have, you know, Quoted 22 corporation tax. That gets netted out, and you don't pay much from a cash tax perspective.

Teitur Poulsen: Ballpark.

Teitur Poulsen: Sure.

Speaker Change: Okay, Thanks, and sorry, just to be clear on the Kessler on US you will continue to book P&L tax.

Teitur Poulsen: Like you have.

Teitur Poulsen: You quoted 22 cooperation has just that gets netted out and you don't pay much from a cash tax perspective.

Speaker Change: Yes, we pay no corporation tax so that are sold to depart.

Teitur Poulsen: We believe we can utilize losses.

Speaker Change: Okay. Thanks.

Teitur Poulsen: Yeah, we pay no corporation tax, so that's all deferred to the extent we believe we can utilize losses. The second question, you detailed the issues at Nevis Corvo in the first quarter, the fatality and the grade, etc. Net cash cost of $3.25 in the first quarter makes the guidance for the full year look a stretch from a cost perspective and also from a production perspective from some standpoint.

Speaker Change: Yes, the second question.

Teitur Poulsen: You detailed the issues.

Teitur Poulsen: Nice quarter in the first quarter the fatality.

Teitur Poulsen: Great et cetera.

Teitur Poulsen: But.

Teitur Poulsen: Net cash cost of $3 25 in the first quarter makes the guidance for the full year look.

Teitur Poulsen: Yeah look a stretch from a cost perspective, and also from a production perspective.

Teitur Poulsen: From some.

Teitur Poulsen: So is the guidance still achievable at Nevis Corbo for this year? Yes, it's a short answer. We believe it is achievable. We've guided between 1.95 to 2.15 for cash costs for the year. And we, you know, at the moment, it's fair to say we will probably be in the upper half of that range, but still within the range is our current forecast. And on production, we're tracking well to meet the zinc guidance, and as we said before, for copper, we'll probably be on the low end of the guidance. Okay, thank you. Just as a clarification on the last question, I think I didn't quite catch it. Were we expecting a great profile at Candelaria in the second half?

Teitur Poulsen: Standpoint, so is the guidance still achievable at <unk> quarter for this year.

Daniel Edward Major: I think the second half is around 0.6, 0.7 for the second half of the year at Candelaria. Got it. Thanks a lot.

Teitur Poulsen: Yes is the short answer is we believe it is achievable we've guided between 195 to $2 15.

Daniel Edward Major: For cash costs.

Daniel Edward Major: For the year.

Daniel Edward Major: And we at the moment is fair to say, we would be probably in the upper half of that range, but still within the range is our current forecast.

Daniel Edward Major: Okay and on production.

Daniel Edward Major: We're tracking well to meet the zinc guidance.

Daniel Edward Major: As we've said before for copper will be probably on the low end of their guidance.

Daniel Edward Major: Okay.

Daniel Edward Major: Super.

Daniel Edward Major: Clarification from the last question I think having just quite catch it what are we expecting the great profile at Candelaria in the second half.

Daniel Edward Major: I think the second half is around <unk> $6 seven for the second half of the year at Candelaria.

Speaker Change: Got it thanks a lot.

Pierre D. Vaillancourt: Your next question comes from Pierre Vilencourt of Haywood Securities. Your line is already open. Jack, I was wondering if you could be a little more specific on the REHE bill, what benefits it has for the project, and just what kind of impact that's going to have on the project and on timing because you announced that the technical study is to be out at year-end. So does that come out one way or another? Yeah, just looking for a little more clarification on that.

Daniel Edward Major: Your next question comes from Pierre Vaillancourt of Haywood Securities. Your line is already open.

Pierre D. Vaillancourt: Jack I was wondering if you could be a little more.

Pierre D. Vaillancourt: Specific on the reheat Bill what what are the.

Pierre D. Vaillancourt: Benefits too to the project.

Pierre D. Vaillancourt: Just what kind of impact that's going to have.

Pierre D. Vaillancourt: Well on the project and on timing, because you announced that.

Pierre D. Vaillancourt: Technical study.

Pierre D. Vaillancourt: As to be out at at year end, So does that come out one way or another.

Pierre D. Vaillancourt: Just looking for a little more clarity on that.

Pierre D. Vaillancourt: Yeah, so... You know, what we're seeing right now with the, uh, Rigi bill that was, um, as part of the larger set of bills that went to Congress, the overall effective tax rate would go down by more than 10%. We would have a VAT tax holiday, there would be no export tax on concentrate, and copper concentrate sales.

Jack Lundin: Yes so.

Pierre D. Vaillancourt: What we're seeing right now with the <unk> build that was as part of the larger set of bills that went to Congress.

Pierre D. Vaillancourt: The overall effective tax rate would go down by <unk>.

Pierre D. Vaillancourt: More than 10%, we would have a tax holiday there would be.

Pierre D. Vaillancourt: No export tax on concentrate copper concentrate sales.

Jack Lundin: And so the overall effective tax rate would be reduced significantly, which, of course, influences our economic model and the project economics and therefore, you know, has a bearing on certain elements of how we would plan to execute Jose Maria. So, you know, those two elements kind of go hand in hand here, I would say, but they wouldn't change significantly. As I was mentioning earlier in the call, we kind of do have, you know, the main route that we want to go in terms of developing Jose Maria.

Pierre D. Vaillancourt: And so the overall effective tax rate would be reduced significantly which of course.

Jack Lundin: Influences are.

Jack Lundin: Our economic model and the project economics and therefore.

Jack Lundin: Have a bearing on certain elements of how we would plan to execute Jose Maria.

Jack Lundin: So you know those two <unk>.

Jack Lundin: Elements kind of go hand in hand.

Jack Lundin: Yes, I would say, but it wouldn't change significantly as I was mentioning earlier on the call.

Jack Lundin: We do have the main route that we want to go in terms of how to develop Jose Maria but it would have a.

Jack Lundin: But it would have, you know, positive, significant, positive impacts and benefits for Jose Maria if we were able to form fiscal stability with the Rigi bill influencing the overall government offtake. Okay, thanks. So one way or another, the technical study comes out by year end. Is that safe to assume? And I would say that there's a with or without a partner as well.

Jack Lundin: Positive significant positive impacts and benefits to Jose Maria if we were able to form fiscal stability with the rigi bill influencing the overall.

Jack Lundin: <unk> offtake.

Speaker Change: Okay. Thanks so.

Jack Lundin: One way or another.

Jack Lundin: Clinical study comes out by year end does that is that safe to assume.

Jack Lundin: And I would say that there is or with or without a partner as well. So it sounds like youre, a little flexible on on timing for our partner relative to the study it sounds like they're kind of independent almost.

Pierre D. Vaillancourt: It sounds like you're a little flexible on timing for a partner relative to the study. It sounds like they're kind of independent almost. Is that a safe assumption in there? Yeah, I mean, depending on where all of these are coming together towards the end of the year, they can influence each other. You know, we're in a position where we can close out some of these tradeoffs that would influence the technical report.

Pierre D. Vaillancourt: Is that a safe assumption to make.

Pierre D. Vaillancourt: Yes, I mean, I think depending on where all of these are coming together towards the end of the year. They can they can influence each other.

Pierre D. Vaillancourt: In a position where we can close out some of these trade offs that would influence the technical report and so we're very much keen to advance with Jose Maria, but we need to be pragmatic in how we approach. It's a large scale project and so therefore.

Pierre D. Vaillancourt: And so we're very keen to advance with Jose Maria, but we need to be pragmatic in how we approach it. It's a large-scale project. And so, therefore, determining that bringing in a partnership makes sense for this and for the longer-term vision that we have in the district. We want to make sure that that technical report is sound in nature and can be used as a blueprint for development.

Pierre D. Vaillancourt: Terminating that bringing in the partnership makes sense for this and for the longer term vision that we have in the district.

Pierre D. Vaillancourt: We want to make sure that that technical report.

Pierre D. Vaillancourt: It is found in nature and can be used as a blueprint for development and so.

Jack Lundin: And so any prospective partner would want to have, you know, some influence on the execution plan. And therefore, if we were to update a technical report before bringing in a partner, there may be updates required, but we will be in a position, I would say, in the second half of this year to have a technical report updated. Okay, thanks. And last thing, with politics being what they are, this reheat, I mean, like, is there any kind of timeline on that? Or if you are just kind of, to be determined.

Jack Lundin: Any prospective partner would want to have.

Jack Lundin: Some influence on the execution plan and therefore, if we were to updated technical report before bringing in a partner there may be updates required, but we will be in a position I would say in the second half of this year.

Jack Lundin: The technical report updated.

Jack Lundin: Okay. Thanks, and then last thing so politics being what they are this week.

Speaker Change: Let me just.

Jack Lundin: Is there any kind of timeline on that or if you just kind of.

Speaker Change: To be determined.

Pierre D. Vaillancourt: Well, as I was mentioning, we've seen that this week, the lower house approved the bill that included the investment incentive regime or the RIGI component. And now, at the end of May, it will go to the Senate for a full formal vote on this basket of articles. And within that, if the RIGI does get approved, then that would influence us for our fiscal stability. So it would actually, you know, accelerate our timeline in terms of forming a framework for fiscal stability.

Jack Lundin: Well as I was mentioning.

Jack Lundin: <unk> seen that.

Pierre D. Vaillancourt: This week the lower house approved the Bill that included the investment incentive regime or the rigi component and now in the end of May It will go to the Senate floor.

Pierre D. Vaillancourt: For a full formal vote on this.

Pierre D. Vaillancourt: <unk>.

Pierre D. Vaillancourt: Articles and within that if the <unk> does get approved then that would influence us for our fiscal stability. So it would actually accelerate our timeline in terms of forming a framework for fiscal stability. So this month is going to be a critical months at the federal level for for millet, and obviously it will impact.

Pierre D. Vaillancourt: So this month is going to be a critical month at the federal level for Miele, and obviously, it will impact our project. All right. Thanks, Jack. Thank you. Your next question comes from Orest Wowkodaw of Deutsche Bank. Your line is already open.

Orest Wowkodaw: Our project.

Orest Wowkodaw: Okay, Alright, thanks, guys.

Orest Wowkodaw: Thank you.

Orest Wowkodaw: Your next question comes from Aurist.

Orest Wowkodaw: Well Codell of Deutsche Bank. Your line is already open.

Orest Wowkodaw: Hi, thanks for taking the follow up. And again, it's Scotiabank. Just a quick one for me, with large-scale M&A returning to the copper business with Anglo American apparently going into play, I'm just wondering if that is having any impact on any of your discussions with potential majors from a JV perspective around the Vicuna District and Jose Maria. I'm just wondering if there's been a shift of priorities in terms of going after producing assets rather than interest in development assets. Hey Orest, thanks for the question.

Orest Wowkodaw: Alright, thanks for taking the follow up and again at Scotiabank.

Orest Wowkodaw: A quick one for me just with large scale M&A returning to the copper business with Anglo American.

Orest Wowkodaw: Apparently going into play Im just wondering if that is having any impact on any of your discussions with potential majors from a JV perspective around the virtue in a district and Jose Maria I'm, just wondering if theres been a shift of priorities in terms of going after producing assets rather than.

Speaker Change: Interest and development assets.

Jack Lundin: I think, you know, given what we've seen, that there's going to be an uptick in M&A, I think both in companies that have operating assets and in large-scale project developers. And so, as I was mentioning, our conversations and discussions with prospective partners, I mean, they've only been heating up because of the fact that, yes, there are companies in play that are currently producing copper today. Only the issue with supply is that there are not enough coming online over the next 3, 5, 10 years.

Orest Wowkodaw: Thanks for the thanks for the question I think.

Jack Lundin: Given what we've seen that there is going to be an uptick in M&A I think both in.

Jack Lundin: Companies that have.

Jack Lundin: Operating assets and in large scale project developers and so.

Jack Lundin: As I was mentioning our conversations and discussions with perspective partners I mean, they've been only heating up because of the fact that yes. There are companies in play that are currently producing copper today the issue with.

Jack Lundin: So, you know, whether it be producing assets or, you know, near-term producing assets, there's definitely an inflow of capital and interest, and with the copper price ticking up, and we have been, and remain very bullish on the prospect of all base metals going up as well as precious metals, I think we'll still be in a strong position to negotiate a good deal in terms of bringing in a partner.

Jack Lundin: Supply is that there is there's not enough coming online over the next three 510 years. So.

Jack Lundin: Whether it be producing assets or near term producing assets. There is definitely an inbounds and interest and with copper price ticking up and we've been bullish and remain very bullish on the prospect of all base metals are going up as well as precious metals I think we'll still be in a strong position to to negotiate a good day.

Jack Lundin: So, discussions continue to be ongoing and are only ramping up with existing and new potentials. Thanks. And just one more. I mean, Lundin has been very successful bolting on producing assets over the years. I'm just wondering, are you 100% focused right now on Jose Maria and, obviously, the extra option at Casa Ronis?

Jack Lundin: And in terms of bringing in a partner so.

Jack Lundin: Discussions continue to be ongoing and only ramping up with existing and new new potentials.

Speaker Change: Thanks, and just one more I mean, London has been very successful bolting on producing assets over the year. So I'm. Just wondering are you 100% focused right now on.

Jack Lundin: Jose Maria and obviously, the extra option casseroles or is there still potential that we could see lundin mining active from an M&A perspective for other producing assets.

Jack Lundin: Or is there still potential that we could see Lundin Mining active from an M&A perspective for other producing assets? I think we always want to stay opportunistic and look at what the options are and the opportunities that exist out there. Of course, you know, external or macro-influenced components will influence how we drive the strategy of the business, and we have to be able to adapt in the industry that we're in. I think that we've been able to demonstrate that with Lundin Mining and the existing asset base that we have.

Jack Lundin: I think we always want to stay opportunistic and look at what the options are and the opportunities that exist out there of course.

Jack Lundin: External or macro influential.

Jack Lundin: Components will influence how we drive the strategy of the business and we have to be able to adapt in the industry that we're in and I think that we've been able to display that with lundin mining and the existing asset base that we have and so we have a very strong portfolio with existing.

Jack Lundin: And so we have a very strong portfolio with existing near-term immediate growth options and future longer-term growth opportunities. And so we're comfortable with the assets that we have today. You know, however, if an opportunity comes our way and it makes sense, you know, economically and from an operating philosophy standpoint for our business, then we would entertain those opportunities. And I think that more opportunities will present themselves given the environment that we're in today. So we definitely, Orest, I would say remain opportunistic. Our focus is growing our business, you know, in a disciplined way through scaling up and predominantly with copper. And we continue to drive that same strategy.

Jack Lundin: Thanks, Track. Thank you. I guess with that, we'll draw the call to a close. Appreciate everybody and the questions today. Ladies and gentlemen, this concludes today's conference call. Thank you for your participation, and you may now disconnect.

Jack Lundin: Near term immediate growth options and future longer term growth opportunities and so we're comfortable with the assets that we have today. However, if an opportunity comes our way and it makes sense.

Jack Lundin: Economically and from a operating philosophy standpoint for our business, then we would entertain those opportunities and I think that.

Jack Lundin: It is more will present themselves given the environment that we're in today. So we definitely almost I would say remain opportunistic our focus is growing our business.

Jack Lundin: The disciplined way through scaling up predominantly with copper.

Jack Lundin: And we continue to drive that same strategy.

Speaker Change: Thanks Jack.

Speaker Change: Thank you Hayden I guess with that.

Jack Lundin: We will draw the call to a close.

Jack Lundin: I appreciate everybody in the questions here today.

Speaker Change: Ladies and gentlemen, this concludes today's conference call.

Speaker Change: Thank you for your participation and you may now disconnect.

Jack Lundin: Yeah.

Jack Lundin: Okay.