Lundin Mining (TSE:LUN) reported a robust second quarter for 2026, posting over $1.2 billion in revenue and $658 million in adjusted EBITDA, fueled by record-high copper prices and steady production across its three core mining assets.
Financial Performance and Production Milestones
President and CEO Jack Lundin confirmed that the company produced approximately 76,900 tonnes of copper during the quarter at a consolidated cash cost of $2.11 per pound. For the first half of 2026, total copper output reached 157,000 tonnes, while gold production stood at approximately 65,000 ounces.
CFO Teitur Poulsen highlighted that copper accounted for roughly 88% of the company’s near-record quarterly revenue. Individual asset performance saw Caserones leading with $518 million in revenue, followed by Candelaria at $476 million and Chapada at $219 million. Despite lower sales volumes of 74,000 tonnes of copper, the impact was neutralized by a record realized copper price of $6.51 per pound, a significant jump from $4.40 in the same quarter last year.
Operational Challenges: Winter Storms in Chile
While the company reaffirmed its full-year production guidance of 310,000 to 335,000 tonnes of copper, management warned of potential headwinds. Severe winter weather in Chile’s Atacama region significantly impacted operations after the quarter concluded. Caserones faced 12 days of power outages after snow damaged infrastructure, leading the company to anticipate production at the lower end of its annual guidance range for that site.
COO Juan Andrés Morel noted that backup generators maintained critical functions during the disruption. Power has been restored, and the company has adjusted its mine plans—including postponing a mill shutdown—to keep higher-grade material in the 2026 schedule.
Strategic Growth and Capital Projects
Lundin Mining continues to expand its footprint, finalizing the acquisition of an additional 5% stake in Caserones, bringing its total ownership to 75%. Furthermore, the company acquired a 31% interest in the Los Salados copper-gold project for a total consideration of $215 million.
Capital investment remains a priority, with $65 million approved for a new ball mill at Chapada to enhance recoveries ahead of the Saúva growth project. Expansionary capital spending reached $83 million this quarter, with a major focus on the Vicuña project in Argentina.
Vicuña Project and Liquidity Position
The Vicuña project achieved a significant regulatory milestone as Argentina approved the inclusion of the Josemaría and Filo del Sol deposits in the RIGI PEELP program. A new long-term agreement with San Juan Province consolidates royalty and infrastructure obligations, providing a clearer path toward a potential Stage 1 sanctioning decision by the end of 2026.
The company remains in a strong financial position, ending the quarter with $79 million in net cash and $2.5 billion in available liquidity through its revolving credit facility. Demonstrating commitment to shareholder value, Lundin Mining repurchased approximately 2.2 million shares during the quarter, continuing a trend that has seen over $1.8 billion returned to shareholders since 2017.