Lundin Mining (TSX: LUN) Pre-Announces Q2 2024 Earnings Impact from Key Financial Items

2 min read | July 19, 2024 02:23 AM EDT | By Team Kalkine Media

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Lundin Mining (TSX: LUN) Pre-Announces Q2 2024 Earnings Impact from Key Financial Items — Image source: shutterstock

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Lundin Mining Corporation (TSX: LUN) has issued a pre-announcement regarding certain financial items expected to impact the company’s quarterly earnings, adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA), adjusted earnings, and adjusted earnings per share for the second quarter of 2024.

Foreign Exchange and Derivatives

One of the significant factors expected to influence Lundin Mining's Q2 2024 financials is the unaudited foreign exchange and trading gains on debt and equity investments tied to the capital funding for the Josemaria Project, estimated at approximately $10 million. Although the company recorded some realized gains and losses on foreign exchange and commodity derivative contracts, these were not significant for the quarter.

Additionally, Lundin Mining anticipates recognizing certain non-cash items that will impact earnings but not adjusted EBITDA, adjusted earnings, or adjusted earnings per share. These include an unaudited non-cash unrealized loss on foreign exchange of about $3 million pre-tax, and an unaudited non-cash unrealized gain of approximately $4 million pre-tax related to the mark-to-market valuation of the company’s unexpired foreign exchange and commodity derivative contracts.

Provisional Pricing Adjustments

Lundin Mining’s revenue for Q2 2024 is expected to benefit significantly from provisional pricing adjustments on prior period concentrate sales. The company anticipates unaudited provisional pricing adjustments to add approximately $95 million on a pre-tax basis to the quarter’s revenue. These adjustments mainly result from upward revisions in the pricing of prior period copper and zinc sales.

Financial Reporting

Lundin Mining will publish its financial results for the three and six months ended June 30, 2024, on Tuesday, July 30, 2024. The announcement will provide detailed insights into the company's financial performance, reflecting the impact of the aforementioned items.

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