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2022 Annual Filings
December 31, 2022
Management’s Discussion and Analysis
For the year ended December 31, 2022

This management’s discussion and analysis (“MD&A”) has been prepared as of February 22, 2023 and should be read in
conjunction with the Company’s consolidated financial statements for the year ended December 31, 2022. Those financial
statements are prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the
International Accounting Standards Board. The Company’s presentation currency is United States (“US”) dollars. Reference
herein of $ or USD is to United States dollars, ARS is to Argentine pesos, BRL is to Brazilian reais, C$ is to Canadian dollars,
CLP is to Chilean pesos, € refers to euros, and SEK is to Swedish kronor.
About Lundin Mining
Lundin Mining Corporation (“Lundin Mining” or the “Company”) is a diversified Canadian base metals mining company with
projects and operations in Argentina, Brazil, Chile, Portugal, Sweden, and the United States of America, primarily producing
copper, zinc, gold and nickel.
Table of Contents

Highlights ................................................................................................................................................................................ | 1
Financial Position and Financing ............................................................................................................................................ | 4
Outlook ................................................................................................................................................................................... | 5
Selected Annual Financial Information .................................................................................................................................. | 6
Summary of Quarterly Results ............................................................................................................................................... | 6
Revenue Overview .................................................................................................................................................................. | 7
Annual Financial Results ......................................................................................................................................................... | 10
Fourth Quarter Financial Results ............................................................................................................................................ | 11
Mining Operations .................................................................................................................................................................. | 13
Production Overview ........................................................................................................................................................ | 13
Cash Cost Overview .......................................................................................................................................................... | 14
Capital Expenditures ......................................................................................................................................................... | 15
Candelaria ......................................................................................................................................................................... | 16
Chapada ............................................................................................................................................................................ | 17
Eagle .................................................................................................................................................................................. | 18
Neves-Corvo ...................................................................................................................................................................... | 19
Zinkgruvan ......................................................................................................................................................................... | 21
Josemaria Project ................................................................................................................................................................... | 22
Metal Prices, LME Inventories, and Smelter Treatment and Refining Charges ..................................................................... | 23
Liquidity and Capital Resources .............................................................................................................................................. | 24
Related Party Transactions ..................................................................................................................................................... | 27
Changes in Accounting Policies and Critical Accounting Estimates and Judgements ............................................................ | 27
Non-GAAP and Other Performance Measures ....................................................................................................................... | 28
Managing Risks ....................................................................................................................................................................... | 35
Management's Report on Internal Controls .......................................................................................................................... | 35
Outstanding Share Data ......................................................................................................................................................... | 35

Cautionary Statement on Forward-Looking Information
Certain of the statements made and information contained herein is “forward-looking information” within the meaning of applicable Canadian securities laws. All statements
other than statements of historical facts included in this document constitute forward-looking information, including but not limited to statements regarding the Company’s
plans, prospects and business strategies; the Company’s guidance on the timing and amount of future production and its expectations regarding the results of operations;
expected costs; permitting requirements and timelines; timing and possible outcome of pending litigation; the results of any Preliminary Economic Assessment, Feasibility Study,
or Mineral Resource and Mineral Reserve estimations, life of mine estimates, and mine and mine closure plans; anticipated market prices of metals, currency exchange rates, and
interest rates; the development and implementation of the Company’s Responsible Mining Management System; the Company’s ability to comply with contractual and permitting
or other regulatory requirements; anticipated exploration and development activities at the Company’s projects; the Company’s integration of acquisitions and any anticipated
benefits thereof; and expectations for other economic, business, and/or competitive factors. Words such as “believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”,
“goal”, “aim”, “intend”, “continue”, “budget”, “estimate”, “may”, “will”, “can”, “could”, “should”, “schedule” and similar expressions identify forward-looking statements.
Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation, the expectations and beliefs of management, including
that the Company can access financing, appropriate equipment and sufficient labour; assumed and future price of copper, nickel, zinc, gold and other metals; anticipated costs;
ability to achieve goals; the prompt and effective integration of acquisitions; that the political environment in which the Company operates will continue to support the
development and operation of mining projects; and assumptions related to the factors set forth below. While these factors and assumptions are considered reasonable by Lundin
Mining as at the date of this document in light of management’s experience and perception of current conditions and expected developments, these statements are inherently
subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those
projected in the forward-looking statements and undue reliance should not be placed on such statements and information. Such factors include, but are not limited to: global
financial conditions, market volatility and inflation, including pricing and availability of key supplies and services; risks inherent in mining including but not limited to risks to the
environment, industrial accidents, catastrophic equipment failures, unusual or unexpected geological formations or unstable ground conditions, and natural phenomena such as
earthquakes, flooding or unusually severe weather; uninsurable risks; project financing risks, liquidity risks and limited financial resources; volatility and fluctuations in metal and
commodity demand and prices; delays or the inability to obtain, retain or comply with permits; significant reliance on a single asset; reputation risks related to negative publicity
with respect to the Company or the mining industry in general; health and safety risks; risks relating to the development of the Josemaria Project; inability to attract and retain
highly skilled employees; risks associated with climate change; compliance with environmental, health and safety laws and regulations; unavailable or inaccessible infrastructure,
infrastructure failures, and risks related to ageing infrastructure; risks inherent in and/or associated with operating in foreign countries and emerging markets, including with
respect to foreign exchange and capital controls; economic, political and social instability and mining regime changes in the Company’s operating jurisdictions, including but not
limited to those related to permitting and approvals, environmental and tailings management, labour, trade relations, and transportation; risks relating to indebtedness; the
inability to effectively compete in the industry; risks associated with acquisitions and related integration efforts, including the ability to achieve anticipated benefits, unanticipated
difficulties or expenditures relating to integration and diversion of management time on integration; changing taxation regimes; risks related to mine closure activities,
reclamation obligations, environmental liabilities and closed and historical sites; reliance on key personnel and reporting and oversight systems, as well as third parties and
consultants in foreign jurisdictions; information technology and cybersecurity risks; risks associated with the estimation of Mineral Resources and Mineral Reserves and the
geology, grade and continuity of mineral deposits including but not limited to models relating thereto; actual ore mined and/or metal recoveries varying from Mineral Resource
and Mineral Reserve estimates, estimates of grade, tonnage, dilution, mine plans and metallurgical and other characteristics; ore processing efficiency; community and
stakeholder opposition; financial projections, including estimates of future expenditures and cash costs, and estimates of future production may not be reliable; enforcing legal
rights in foreign jurisdictions; environmental and regulatory risks associated with the structural stability of waste rock dumps or tailings storage facilities; activist shareholders
and proxy solicitation matters; risks relating to dilution; regulatory investigations, enforcement, sanctions and/or related or other litigation; risks relating to payment of dividends;
counterparty and customer concentration risks; the estimation of asset carrying values; risks associated with the use of derivatives; relationships with employees and contractors,
and the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; conflicts of interest; existence of a
significant shareholder; exchange rate fluctuations; challenges or defects in title; internal controls; compliance with foreign laws; potential for the allegation of fraud and
corruption involving the Company, its customers, suppliers or employees, or the allegation of improper or discriminatory employment practices, or human rights violations; the
threat associated with outbreaks of viruses and infectious diseases; risks relating to minor elements contained in concentrate products; and other risks and uncertainties,
including but not limited to those described in the “Risk and Uncertainties” section of the Company’s Annual Information Form and the “Managing Risks” section of the
Company’s MD&A for the year ended December 31, 2022, which are available on SEDAR at www.sedar.com under the Company’s profile.
All of the forward-looking statements made in this document are qualified by these cautionary statements. Although the Company has attempted to identify important factors
that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated,
estimated, forecast or intended and readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Should one or more
of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking
information. Accordingly, there can be no assurance that forward-looking information will prove to be accurate and forward-looking information is not a guarantee of future
performance. Readers are advised not to place undue reliance on forward-looking information. The forward-looking information contained herein speaks only as of the date of
this document. The Company disclaims any intention or obligation to update or revise forward‐looking information or to explain any material difference between such and
subsequent actual events, except as required by applicable law.
Highlights
For the year ended December 31, 2022 the Company generated revenue in excess of $3.0 billion (2021 - $3.3 billion). The
Company achieved gross profit of $762.6 million (2021 - $1,369.7 million) and adjusted EBITDA 1 of $1,292.5 million (2021 -
$1,869.4 million). The Company remains in a strong balance sheet position maintaining low leverage with ample liquidity
available.
Total copper and gold production substantially achieved the most recent guidance, with gold at the top end of the guidance
range. Total zinc produced exceeded the prior year but was below the guidance range. Total nickel produced achieved
guidance. Production costs and C1 costs were higher than the prior year primarily due to inflationary impacts on
consumables, particularly diesel and electricity, as well as on contractor costs, partially offset by favourable foreign
exchange.
Operational Performance
Candelaria (80% owned): Candelaria produced, on a 100% basis, 152,042 tonnes of copper, approximately 86,000 ounces
of gold and 1.6 million ounces of silver in concentrate during the year. Production of copper was higher than the prior year
due to higher grades. Gold production was lower than the prior year due to throughput. Copper production was modestly
below guidance but gold production was within the guidance range. Production costs were higher than the prior year due
primarily to higher costs for energy and consumables. Copper cash cost 1 of $1.96/lb were higher than the annual guidance
due primarily to bonuses paid resulting from early successful union negotiations, and higher than the prior year due to the
impact of higher production costs, partially offset by a weaker CLP.
Chapada (100% owned): Chapada produced 45,739 tonnes of copper and approximately 68,000 ounces of gold, with both
metals lower than the prior year due to mine sequencing impacting grades as a result of above average rainfall experienced
in the first half of 2022. Copper production was within the guidance range and gold production exceeded guidance.
Production costs were higher than the prior year due to higher costs for energy and other input costs. Full year copper cash
cost of $2.08/lb was better than guidance.
Eagle (100% owned): Eagle’s production of 17,475 tonnes of nickel and 15,895 tonnes of copper were both lower than the
prior year due to planned lower grades. Both metals achieved annual guidance. Production costs were higher than the prior
year due to higher energy and consumable costs. Nickel cash cost of $0.79/lb was higher than the prior year as a result of
higher production costs and exceeded guidance due to by-product copper prices.
Neves-Corvo (100% owned): Neves-Corvo produced 31,906 tonnes of copper and 82,435 tonnes of zinc during the year.
Copper production was lower than prior year due to lower grades and recoveries, while zinc production was higher than the
prior year as a result of increased throughput from ZEP ("Zinc Expansion Project"). However, both metals were below
guidance. Production costs were higher than the prior year due primarily to inflationary impacts on electricity, partially
offset by a weaker Euro. Copper cash cost of $2.27/lb for the year was higher than the prior year due to increased
production costs. Cash cost was higher than guidance due to higher production costs and lower zinc by-product volumes.
Zinkgruvan (100% owned): Zinc production of 76,503 tonnes was below the prior year and annual guidance due to grades.
Lead production of 30,517 tonnes was higher than the prior year due to higher grades. Production costs were higher than
the prior year, but on a per unit basis, zinc cash cost of $0.32/lb for the current year was better than guidance and prior
year due to higher by-product credits.
1 This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
1
2022 Production, Cash Cost and Capital Expenditure Summary
Total production, cash costs and capital expenditures are compared to the most recent guidance as follows:

|  |  | Production | Cash Cost ($/lb)
| (Contained metal in concentrate) | Actual | Guidance a | Actual | Guidance a
| Copper (t) | Candelaria (100%) | 152,042 | 155,000 - 165,000 | 1.96 | 1.75
|  | Chapada | 45,739 | 45,000 - 50,000 | 2.08 | 2.25
|  | Eagle | 15,895 | 15,000 - 18,000 |  |
|  | Neves-Corvo | 31,906 | 33,000 - 38,000 | 2.27 | 1.80
|  | Zinkgruvan | 4,077 | 2,000 - 3,000 |  |
|  | Total | 249,659 | 250,000 - 274,000 |  |
| Zinc (t) | Neves-Corvo | 82,435 | 90,000 - 100,000 |  |
|  | Zinkgruvan | 76,503 | 78,000 - 83,000 | 0.32 | 0.55
|  | Total | 158,938 | 168,000 - 183,000 |  |
| Gold (koz) | Candelaria (100%) | 86 | 83 - 88 |  |
|  | Chapada | 68 | 62 - 67 |  |
|  | Total | 154 | 145 - 155 |  |
| Nickel (t) | Eagle | 17,475 | 15,000 - 18,000 | 0.79 | (0.25)

2022 Capital Expenditure b

| ($ thousands) | Actual | Guidance a
| Candelaria (100%) | 389,731 | 400,000
| Chapada | 104,711 | 80,000
| Eagle | 16,413 | 10,000
| Neves-Corvo | 71,222 | 95,000
| Zinkgruvan | 48,144 | 60,000
| Other | 9,610 | 25,000
| Total Sustaining Capital | 639,831 | 670,000
| Zinc Expansion Project (Neves-Corvo) | 31,964 | 30,000
| Total Capital Expenditures | 671,795 | 700,000
| a. Guidance as disclosed in the Company's MD&A for the three and six months ended June 30, 2022 with trending commentary in the MD&A for the three and nine months ended September 30, 2022.
| b. Sustaining capital expenditure is a supplementary financial measure and expansionary capital expenditure is a non-GAAP measure – see Section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.

Josemaria Project
The Josemaria Project incurred a total expenditure of $237.4 million, inclusive of foreign exchange and trading gains from
equity investments of which $171.1 million was capitalized with the remaining amount recorded in the Consolidated
Statement of Earnings.
2
Corporate Updates
•On February 17, 2022, the Company declared a semi-annual performance dividend of C$0.11 per share.
•On March 23, 2022, the Company announced the appointment of Ms. Juliana Lam to the Company’s Board of Directors
effective the same date. The Company also announced the retirement of Director Mr. Peter Jones effective as at the
Company’s 2022 annual shareholders meeting.
•On March 30, 2022, and September 30, 2022, the Company reported two independent fatalities at its Neves-Corvo
mine in Portugal. Operations were voluntarily temporarily suspended following each incident and relevant authorities
were notified. Mandatory regulatory investigations were commenced and the Company continues to cooperate fully
with those investigations.
•On April 26, 2022, the Company executed a fourth amended and restated credit agreement that increased its revolving
credit facility (the "Credit Facility" or the "Credit Agreement") to $1,750.0 million (previously $800.0 million with a
$200.0 million accordion option), reduced the cost of borrowing, and extended the term to April 2027, from August
2023. The amended Credit Facility bears interest on drawn funds at rates of Term Secured Overnight Financing Rate
(“Term SOFR”) + Credit Spread Adjustment (“CSA”) + 1.45% to Term SOFR+CSA+2.50% depending upon the Company’s
net leverage ratio, reduced from LIBOR+1.75% to LIBOR+2.75%, previously. The amendment and restatement provides
the Company with more favourable covenants, reduced security on assets and included other customary revisions. On
February 16, 2023, the Company received commitments from the lenders of the revolving Credit Facility to, upon
completion and execution of the First Amendment to the Fourth Amended and Restated Credit Agreement, extend the
term by one year to April 2028 and reduce the Credit Spread Adjustment.
•On April 28, 2022, the Company completed the plan of arrangement (the “Arrangement”) to acquire all of the issued
and outstanding shares of Josemaria Resources Inc. (“Josemaria Resources”). Under the terms of the Arrangement,
Josemaria Resources shareholders were provided with the right to elect to receive (i) 0.1487 of a common share of
Lundin Mining (each whole share, a "Lundin Mining Share") per Josemaria Resources common share (“Josemaria
Resources Share”) plus C$0.11 for each whole Lundin Mining Share issued to such shareholder; (ii) or C$1.60 in cash for
each Josemaria Resources Share; (iii) or any combination thereof, subject to pro-ration of a total maximum number
Lundin Mining Shares and cash consideration. Pursuant to the acquisition, the Company paid an aggregate of $144.4
million in cash and issued 40,031,936 Lundin Mining Shares to Josemaria Resources shareholders.
•On May 12, 2022, following the Company's annual shareholders meeting, the Company announced the appointment of
Mr. Adam Lundin as the Chair of the Board of Directors following the retirement of Mr. Lukas H. Lundin.
•On July 19, 2022, the Company announced the publication of its 2021 Sustainability Report, which highlighted its new
Focused on the Future long-term sustainability strategy which included a 35% reduction target in greenhouse gas
emissions by 2030.
•On July 27, 2022, the Company announced the passing of the Company's founder and former Chairman, Mr. Lukas H.
Lundin. The Company also announced the appointment of Ms. Natasha Vaz to the Company's Board of Directors, and
the following executive leadership appointments: Mr. Juan Andres Morel, Senior Vice President and Chief Operating
Officer; Mr. Teitur Poulsen, Senior Vice President and Chief Financial Officer; Mr. David Dicaire, Senior Vice President,
Josemaria Project; and Ms. Kristen Mariuzza, Senior Vice President Sustainability, Health and Safety.
•On July 30, 2022, a sinkhole was detected near the Company's Alcaparrosa mine in Chile. All personnel at the operation
and in the community were safe and the appearance of the sinkhole did not result in any injuries. All mining operations
at the Alcaparrosa underground mine remain suspended and the Company mobilized resources in support of the
ongoing investigation.
•On October 12, 2022, the Company announced the passing of its Board member Ms. Karen Poniachik, who had served
on the Board of Directors since February 2021.
•On December 5, 2022, the Company announced that it had renewed its Normal Course Issuer Bid (“NCIB”) which allows
the Company to purchase up to 65,313,173 common shares over a period of twelve months commencing on December
3
9, 2022 and expiring on December 8, 2023. As at February 22, 2023, the Company has not purchased any common
shares under the renewed NCIB.
•On December 6, 2022, the Company announced the appointment of Mr. Jack Lundin as President. Concurrently, Mr.
Jack Lundin stepped down from the Company's Board of Directors.
•During the last quarter of 2022, the Company decided to relocate its corporate head office from Toronto to Vancouver,
Canada, to be effective in the second half of 2023.
•On February 8, 2023, the Company reported (1) a maiden Mineral Resource for the Saúva deposit and (2) its Mineral
Resource and Mineral Reserve estimates as at December 31, 2022 (or as otherwise specified therein).
Financial Performance
•Gross profit for the year ended December 31, 2022 was $762.6 million, which was $607.1 million lower than the prior
year due to lower metal prices, higher operating costs impacted by inflation partially offset by favourable foreign
exchange impacts.
•Adjusted EBITDA of $1,292.5 million for the year ended December 31, 2022 was 31% lower than the prior year due to
lower gross profit before depreciation.
•For the year ended December 31, 2022, net earnings of $463.5 million were 47% lower than the prior year due to lower
gross profit and higher project development costs partially offset by lower income taxes, higher foreign exchange and
trading gain on equity investment as well as unrealized gain on revaluation of hedges.
•Adjusted earnings 1 of $482.8 million for the year ended December 31, 2022 were 41% lower than the prior year due to
lower net earnings.
Financial Position and Financing
•During the year ended December 31, 2022, cash and cash equivalents decreased by $402.7 million. Cash flow from
operations of $876.9 million was used to fund investing activities of $1,013.4 million, which includes the Josemaria
Resources acquisition. Cash used for financing activities was $251.6 million which includes the payment of shareholder
dividends of $275.4 million, share repurchase of $59.4 million and distributions to non-controlling interests partially
offset by net proceeds from debt.
•As at December 31, 2022, the Company had a net debt 1 balance of $10.9 million. Excluding the impact of finance leases
the Company would be in a net cash position. Net debt changed from a net cash position during the year due to the
activities described above for cash and cash equivalents.
•As at February 22, 2023, the Company had cash and net debt balances of approximately $220.0 million and
$15.0 million, respectively.
1 This is a non-GAAP measure - see section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
4
Outlook
Production, cash cost, capital expenditures and exploration investment guidance for 2023 remains unchanged from the
most recently reported guidance.
2023 Production and Cash Cost Guidance

|  |  | Guidance a |
| (contained metal in concentrate) | Production | Cash Cost ($/lb)b |
| Copper (t) | Candelaria (100%) | 145,000 - 155,000 | 1.80 - 1.95 c |
|  | Chapada | 43,000 - 48,000 | 2.55 - 2.75 d |
|  | Eagle | 12,000 - 15,000 |  |
|  | Neves-Corvo | 33,000 - 38,000 | 2.10 - 2.30 c |
|  | Zinkgruvan | 3,000 - 4,000 |  |
|  | Total | 236,000 - 260,000 |  |
| Zinc (t) | Neves-Corvo | 100,000 - 110,000 |  |
|  | Zinkgruvan | 80,000 - 85,000 | 0.60 - 0.65 c |
|  | Total | 180,000 - 195,000 |  |
| Gold (koz) | Candelaria (100%) | 85 - 90 |  |
|  | Chapada | 55 - 60 |  |
|  | Total | 140 - 150 |  |
| Nickel (t) | Eagle | 13,000 - 16,000 | 1.50 - 1.65 |
a. Guidance as outlined in the news release "Lundin Mining Announces 2022 Production Results and Provides 2023 Guidance", dated January 12, 2023. b. Cash costs are based on various assumptions and estimates, including but not limited to: production volumes, commodity prices (Cu: $3.75/lb, Zn: $1.30/lb, Pb: $0.90/lb, Au: $1,750/oz), foreign exchange rates (€/USD:1.00, USD/SEK:10.50, USD/CLP:850, USD/BRL:5.00) and production costs. c. 68% of Candelaria's total gold and silver production are subject to a streaming agreement and silver production at Zinkgruvan and Neves-Corvo are also subject to streaming agreements. Cash costs are calculated based on receipt of approximately $425/oz gold and $4.25/oz to $4.57/oz silver. d. Chapada cash cost is calculated on a by-product basis and does not include the effects of its copper stream agreements. Effects of the copper stream agreements are reflected in copper revenue and will impact realized price per pound.

2023 Capital Expenditure Guidance b

| ($ millions) | Guidance a
| Candelaria (100% basis) | 400
| Chapada | 70
| Eagle | 20
| Neves-Corvo | 130
| Zinkgruvan | 70
| Other | 10
| Total Sustaining | 700
| Josemaria | 400
| Total Capital Expenditures | 1,100
a.Guidance as outlined in the news release dated January 12, 2023. b.Sustaining capital expenditure is a supplementary financial measure and expansionary capital expenditure is a non-GAAP measure – see Section "Non- GAAP and Other Performance Measures" of this MD&A for discussion.

2023 Exploration Investment Guidance
Exploration expenditures are planned to be $45.0 million in 2023 primarily for in-mine and near-mine targets. The largest
portion of the planned expenditures are to be at Candelaria and Chapada with the remaining operations and new business
development activities comprising the balance.
Selected Annual Financial Information 1

|  | Year ended December 31,
($ millions, except share and per share amounts) |  | 2022 |  | 2021 |  | 2020
Revenue |  | 3,041.2 |  | 3,328.8 |  | 2,041.5
Costs of goods sold: |  |  |  |  |  |
Production costs |  | (1,661.4) |  | (1,371.3) |  | (1,095.9)
Depreciation, depletion and amortization |  | (554.8) |  | (522.8) |  | (447.5)
Inventory write-down |  | (62.5) |  | (65.0) |  | —
Gross profit |  | 762.6 |  | 1,369.7 |  | 498.1
Net earnings attributable to: |  |  |  |  |  |
Lundin Mining shareholders |  | 426.9 |  | 780.3 |  | 168.8
Non-controlling interests |  | 36.7 |  | 99.0 |  | 20.3
Net earnings |  | 463.5 |  | 879.3 |  | 189.1
Adjusted earnings 3 |  | 482.8 |  | 820.6 |  | 225.2
Adjusted EBITDA 3 |  | 1,292.5 |  | 1,869.4 |  | 856.9
Cash flow from operations |  | 876.9 |  | 1,485.0 |  | 565.9
Adjusted operating cash flow 3 |  | 992.9 |  | 1,487.1 |  | 644.6
Free cash flow from operations 3 |  | 381.4 |  | 1,054.5 |  | 243.6
Free cash flow 3 |  | 34.1 |  | 953.2 |  | 135.9
Capital expenditures 4 |  | 842.9 |  | 532.1 |  | 431.2
Per share amounts: |  |  |  |  |  |
Basic and diluted earnings per share ("EPS") attributable to shareholders |  | 0.56 |  | 1.06 |  | 0.23
Adjusted EPS |  | 0.63 |  | 1.11 |  | 0.31
Adjusted operating cash flow per share 3 |  | 1.30 |  | 2.02 |  | 0.88
Dividends declared (C$/share) |  | 0.47 |  | 0.39 |  | 0.16
Total assets |  | 8,172.8 |  | 7,636.9 |  | 7,058.5
Total debt and lease liabilities |  | 197.3 |  | 31.0 |  | 203.0
Net (debt) cash 3 |  | (10.9) |  | 563.1 |  | (63.2)

Summary of Quarterly Results 1,2,5

($ millions, except per share data) | Q4-22 | Q3-22 | Q2-22 | Q1-22 | Q4-21 | Q3-21 | Q2-21 | Q1-21
Revenue | 811.4 | 648.5 | 590.2 | 991.1 | 1,018.6 | 756.4 | 872.3 | 681.5
Gross profit | 155.2 | 82.5 | 46.0 | 478.8 | 433.2 | 303.9 | 380.2 | 252.5
Net earnings (loss) | 145.3 | (11.2) | (48.6) | 378.1 | 266.1 | 190.6 | 268.4 | 154.2
- attributable to shareholders | 145.6 | (11.2) | (52.6) | 345.1 | 228.8 | 173.7 | 242.6 | 135.2
Adjusted earnings (loss)3 | 191.5 | 30.9 | (35.3) | 295.6 | 281.5 | 168.4 | 226.3 | 144.3
Adjusted EBITDA 3 | 353.7 | 202.4 | 148.6 | 587.8 | 623.0 | 411.3 | 480.7 | 354.4
EPS - Basic and Diluted | 0.19 | (0.01) | (0.07) | 0.47 | 0.31 | 0.24 | 0.33 | 0.18
Adjusted EPS 3 | 0.25 | 0.04 | (0.05) | 0.40 | 0.38 | 0.23 | 0.31 | 0.20
Cash flow from operations | 156.9 | 36.3 | 366.4 | 317.3 | 384.2 | 523.1 | 419.0 | 158.7
Adjusted operating cash flow per share 3 | 0.38 | 0.23 | 0.06 | 0.64 | 0.65 | 0.40 | 0.58 | 0.38
Capital expenditures 4 | 281.2 | 199.5 | 217.3 | 144.9 | 153.9 | 133.8 | 131.9 | 112.5

6
1 Except where otherwise noted, financial data has been prepared in accordance with IFRS as issued by the IASB.
2 The sum of quarterly amounts may differ from year-to-date results due to rounding.
3 This is a non-GAAP measure - see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.
4 Capital expenditures are reported on a cash basis, as presented in the consolidated statement of cash flows.
5 Variability in revenues and net earnings is largely driven by metal prices. In recent quarters, net earnings has also been impacted by global inflation
factors. For further metal price trending discussion, refer to page 23 of this MD&A.
Revenue Overview
Sales Volumes by Payable Metal

(Contained metal in concentrate) | 2022 | 2021
Total | Q4 | Q3 | Q2 | Q1 | Total | Q4 | Q3 | Q2 | Q1
Copper (t) |  |  |  |  |  |  |  |  |  |
Candelaria (100%) | 147,251 | 33,561 | 35,587 | 39,655 | 38,448 | 148,213 | 43,417 | 33,743 | 35,537 | 35,516
Chapada | 45,563 | 12,037 | 12,817 | 7,905 | 12,804 | 47,123 | 13,628 | 13,869 | 12,247 | 7,379
Eagle | 14,060 | 2,672 | 3,721 | 4,159 | 3,508 | 16,522 | 3,155 | 3,792 | 5,257 | 4,318
Neves-Corvo | 31,592 | 6,351 | 8,574 | 8,183 | 8,484 | 36,618 | 10,668 | 9,071 | 10,314 | 6,565
Zinkgruvan | 4,428 | 886 | 1,570 | 337 | 1,635 | 1,806 | 19 | 859 | 926 | 2
| 242,894 | 55,507 | 62,269 | 60,239 | 64,879 | 250,282 | 70,887 | 61,334 | 64,281 | 53,780
Zinc (t) |  |  |  |  |  |  |  |  |  |
Neves-Corvo | 66,966 | 20,205 | 18,770 | 16,289 | 11,702 | 53,622 | 15,058 | 12,516 | 14,443 | 11,605
Zinkgruvan | 65,684 | 17,635 | 13,722 | 18,525 | 15,802 | 64,056 | 18,005 | 16,043 | 14,305 | 15,703
| 132,650 | 37,840 | 32,492 | 34,814 | 27,504 | 117,678 | 33,063 | 28,559 | 28,748 | 27,308
Gold (koz) |  |  |  |  |  |  |  |  |  |
Candelaria (100%) | 83 | 20 | 20 | 22 | 21 | 89 | 25 | 20 | 23 | 21
Chapada | 65 | 17 | 23 | 10 | 15 | 68 | 18 | 22 | 16 | 12
| 148 | 37 | 43 | 32 | 36 | 157 | 43 | 42 | 39 | 33
Nickel (t) |  |  |  |  |  |  |  |  |  |
Eagle | 14,427 | 3,239 | 3,715 | 4,206 | 3,267 | 15,012 | 3,390 | 3,246 | 4,258 | 4,118
Lead (t) |  |  |  |  |  |  |  |  |  |
Neves-Corvo | 2,908 | 673 | 654 | 818 | 763 | 4,890 | 1,592 | 999 | 1,054 | 1,245
Zinkgruvan | 30,163 | 7,654 | 7,502 | 10,163 | 4,844 | 19,245 | 4,787 | 4,825 | 4,928 | 4,705
| 33,071 | 8,327 | 8,156 | 10,981 | 5,607 | 24,135 | 6,379 | 5,824 | 5,982 | 5,950
Silver (koz) |  |  |  |  |  |  |  |  |  |
Candelaria (100%) | 1,442 | 278 | 305 | 412 | 447 | 1,281 | 425 | 297 | 287 | 272
Chapada | 156 | 50 | 32 | 26 | 48 | 93 | 33 | 26 | 14 | 20
Eagle | 34 | 9 | 9 | 9 | 7 | 63 | 23 | 16 | 9 | 15
Neves-Corvo | 552 | 92 | 117 | 152 | 191 | 960 | 307 | 183 | 228 | 242
Zinkgruvan | 2,088 | 551 | 532 | 650 | 355 | 1,348 | 346 | 354 | 356 | 292
| 4,272 | 980 | 995 | 1,249 | 1,048 | 3,745 | 1,134 | 876 | 894 | 841

Revenue Analysis

|  |  | Year ended December 31,
| by Mine |  | 2022 |  | 2021 |  | Change
| ($ thousands) |  | $ | % |  | $ | % |  | $
| Candelaria (100%) |  | 1,317,223 | 43 |  | 1,591,109 | 48 |  | (273,886)
| Chapada |  | 477,927 | 16 |  | 567,386 | 17 |  | (89,459)
| Eagle |  | 520,472 | 17 |  | 462,488 | 14 |  | 57,984
| Neves-Corvo |  | 433,486 | 14 |  | 479,347 | 14 |  | (45,861)
| Zinkgruvan |  | 292,120 | 10 |  | 228,435 | 7 |  | 63,685
|  |  | 3,041,228 |  |  | 3,328,765 |  |  | (287,537)

|  |  | Year ended December 31,
| by Metal |  | 2022 |  | 2021 |  | Change
| ($ thousands) |  | $ | % |  | $ | % |  | $
| Copper |  | 1,909,235 | 63 |  | 2,344,635 | 70 |  | (435,400)
| Zinc |  | 371,822 | 12 |  | 305,432 | 9 |  | 66,390
| Gold |  | 227,616 | 7 |  | 249,176 | 7 |  | (21,560)
| Nickel |  | 379,790 | 12 |  | 276,446 | 8 |  | 103,344
| Lead |  | 60,624 | 2 |  | 46,314 | 1 |  | 14,310
| Silver |  | 41,958 | 1 |  | 39,179 | 1 |  | 2,779
| Other |  | 50,183 | 3 |  | 67,583 | 4 |  | (17,400)
|  |  | 3,041,228 |  |  | 3,328,765 |  |  | (287,537)

Revenue for the year ended December 31, 2022 amounted to $3,041.2 million which was lower in comparison to the prior
year as a result of lower realized copper metal prices ($360.6 million) partially offset by higher nickel price.
Revenue from gold and silver for the year ended December 31, 2022 includes the partial recognition of an upfront purchase
price on the sale of precious metals streams for Candelaria, Neves-Corvo, and Zinkgruvan as well as the cash proceeds
which amount to approximately $420/oz for gold and between $4.20/oz and $4.52/oz for silver.
Chapada’s copper revenue includes the recognition of deferred revenue from copper streams acquired with the Chapada
mine, as well as the cash proceeds of 30% of the market price of the copper sold under the streams.
Revenue is recorded using the metal price received for sales that settle during the reporting period. For sales that have not
been settled, an estimate is used based on the expected month of settlement and the forward price of the metal at the end
of the reporting period. The difference between the estimate and the final price received is recognized by adjusting revenue
in the period in which the sale is settled. Settlement dates can range from one to six months after shipment.
The Company is also subject to customer counterparty risks and concentration risk associated with trade receivables. The
Company transacts with credit-worthy customers to minimize credit risk and if necessary, employs pre-payment
arrangements and the use of letters of credit, where appropriate, but cannot always be assured of the solvency of its
customers over time. In addition, four customers represent a significant portion of the Company’s sales and are expected to
continue to account for a significant portion of the Company’s sales in the future. The Company may be susceptible to an
impact on financial returns as a result of the fact that its sales are concentrated on a limited number of customers and, in
some cases, on a long-term contract basis. There is a risk that a customer reducing its overall purchases or otherwise
seeking to materially change the terms of the business relationship at any time could adversely affect the Company’s
business, financial condition, and operational results.
8
Provisionally Valued Revenue as of December 31, 2022

| Metal | Payable metal | Valued at
| Copper | 89,887 | t | $3.79 /lb
| Zinc | 36,350 | t | $1.35 /lb
| Gold | 39 | koz | $1,823 /oz
| Nickel | 4,939 | t | $13.60 /lb

Full-Year Reconciliation of Realized Prices

|  | Year ended December 31, 2022
| ($ thousands) | Copper | Zinc | Gold | Nickel | Total
| Current period sales 1 | 1,993,596 | 425,801 | 263,304 | 388,027 | 3,070,728
| Prior period price adjustments | 15,444 | 13,818 | 1,333 | (1,509) | 29,086
|  | 2,009,040 | 439,619 | 264,637 | 386,518 | 3,099,814
| Other metal sales |  |  |  |  | 223,683
| Copper stream cash effect |  |  |  |  | (23,520)
| Gold stream cash effect |  |  |  |  | (75,868)
| Less: Treatment & refining charges |  |  |  |  | (182,881)
| Total Revenue |  |  |  |  | 3,041,228
| Payable Metal | 242,894 t | 132,650 t | 148 koz | 14,427 t |
| Current period sales 1,2 | $3.72 | $1.46 | $1,775 | $12.20 |
| Prior period adjustments 2 | 0.03 | 0.04 | 9 | (0.05) |
| Realized prices 2, 3 | $3.75 /lb | $1.50 /lb | $1,784 /oz | $12.15 /lb |
|  | Year ended December 31, 2021
|  | Copper | Zinc | Gold | Nickel | Total
| Current period sales 1 | 2,394,066 | 368,193 | 282,876 | 283,755 | 3,328,890
| Prior period price adjustments | 41,932 | 1,545 | (4,451) | (2,742) | 36,284
|  | 2,435,998 | 369,738 | 278,425 | 281,013 | 3,365,174
| Other metal sales |  |  |  |  | 233,037
| Copper stream cash effect |  |  |  |  | (17,485)
| Gold stream cash effect |  |  |  |  | (80,832)
| Less: Treatment & refining charges |  |  |  |  | (171,129)
| Total Revenue |  |  |  |  | 3,328,765
| Payable Metal | 250,282 t | 117,678 t | 157 koz | 15,012 t |
| Current period sales 1,2 | $4.34 | $1.42 | $1,802 | $8.57 |
| Prior period adjustments 2 | 0.07 | 0.01 | (28) | (0.08) |
| Realized prices 2, 3 | $4.41 /lb | $1.43 /lb | $1,774 /oz | $8.49 /lb |
| 1. Includes provisional price adjustments on current period sales.
| 2. This is a non-GAAP measure - see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.
| 3. The realized price for copper inclusive of the impact of streaming agreements for 2022 is $3.71/lb (2021: $4.38/lb). The realized price for gold inclusive of the impact of streaming agreements for 2022 is $1,273/oz (2021: $1,259/oz).

Annual Financial Results
Production Costs
Production costs for the year ended December 31, 2022 amounted to $1,661.4 million and were higher by $290.1 million
over the prior year. These production cost increases were as a result of higher consumable costs primarily at Candelaria,
Chapada and Neves-Corvo due to inflationary increases and bonuses paid resulting from early successful union negotiations
at Candelaria, partially offset by the effects of favourable foreign exchange. In addition, a non-cash write-down of long-term
ore stockpile inventory at Chapada of $62.5 million was recognized during the year ended December 31, 2022 (2021 - $65.0
million)
Depreciation, Depletion and Amortization
Depreciation, depletion and amortization expense for the year ended December 31, 2022 increased, primarily attributable
to higher depreciation reported at Neves-Corvo with the start-up of ZEP.

| Depreciation, depletion & amortization |  | Year ended December 31,
| ($ thousands) |  | 2022 | 2021 | Change
| Candelaria |  | 284,259 | 289,090 | (4,831)
| Chapada |  | 49,865 | 46,097 | 3,768
| Eagle |  | 79,523 | 81,493 | (1,970)
| Josemaria |  | 633 | — | 633
| Neves-Corvo |  | 101,807 | 63,168 | 38,639
| Zinkgruvan |  | 36,739 | 41,114 | (4,375)
| Other |  | 1,924 | 1,802 | 122
|  |  | 554,750 | 522,764 | 31,986

General Exploration and Business Development
Total general exploration and business development expenses for the year ended December 31, 2022 were higher than the
prior year primarily due to project development costs related to the Josemaria Project. Project costs for engineering, drilling
costs and other project related costs were $107.3 million for 2022. Josemaria Project costs were capitalized beginning in the
fourth quarter of 2022. Current year exploration costs were consistent with the prior year. During 2022, exploration costs
were spent primarily on in-mine and near-mine targets at the Company’s operations. Exploration drilling at Chapada was
primarily focused on expansion of the Saúva discovery located approximately 15km from the mine.
Income from Equity Investment in Associate
Income from equity investment in associate has decreased during the current year due to the sale of the specialty cobalt
business in 2021. As a result of the sale, substantially all of the net assets were distributed, with $18.8 million received in
2022 (2021 - $32.2 million).
Other Income
Net other income for the year ended December 31, 2022 was higher than the prior year due to foreign exchange and
trading gains on equity investments of $93.1 million and unrealized gain on revaluation of hedges of $63.0 million.
Additionally, included in other expense was $63.3 million remediation expense related to the sinkhole near the Alcaparrosa
mine in Chile. Approximately, $20.4 million was paid during the year related to the remediation expense.
Foreign exchange gains and losses recorded in other expense primarily resulted from foreign exchange revaluation of
working capital denominated in foreign currencies. Period end exchange rates having a meaningful impact on foreign
exchange recorded at December 31, 2022 were:
10

|  | December 31, 2022 | December 31, 2021
| Brazilian Real (USD:BRL) | 5.22 | 5.58
| Chilean Peso (USD:CLP) | 860 | 845
| Euro (USD:€) | 0.94 | 0.88
| Swedish Kronor (USD:SEK) | 10.44 | 9.04
| Argentine Peso (USD:ARS) | 177 | 115 a

a. Argentine Peso as at April 28, 2022.
Income Taxes

| Income tax expense (recovery) |  | Year ended December 31,
| ($ thousands) |  | 2022 | 2021 | Change
| Candelaria |  | 85,270 | 222,318 | (137,048)
| Chapada |  | (27,840) | 72,451 | (100,291)
| Eagle |  | 28,458 | 33,808 | (5,350)
| Josemaria |  | — | — | —
| Neves-Corvo |  | (3,898) | 22,732 | (26,630)
| Zinkgruvan |  | 34,413 | 13,251 | 21,162
| Other |  | 18,225 | 1,126 | 17,099
|  |  | 134,628 | 365,686 | (231,058)

| Income taxes by classification |  | Year ended December 31,
| ($ thousands) |  | 2022 | 2021 | Change
| Current income tax expense |  | 149,978 | 273,638 | (123,660)
| Deferred income tax expense (recovery) |  | (15,350) | 92,048 | (107,398)
|  |  | 134,628 | 365,686 | (231,058)

Income tax expense for the year ended December 31, 2022 was lower than the prior year primarily due to lower taxable
earnings at most sites with the exception of Zinkgruvan. Included in Chapada's income taxes for the year ended December
31, 2022 was $20.7 million recovery recorded for deferred tax on foreign exchange revaluation of non-monetary assets and
deferred taxes (2021 – $1.7 million expense).
Included in Neves-Corvo’s tax recovery is an investment tax credit of $6.5 million. Other taxes in 2022 include withholding
taxes on accrued interest on intercompany debt and distributions from Eagle mine.
Fourth Quarter Financial Results
Gross Profit
Gross profit for the current quarter was $155.2 million, $277.9 million lower than the prior year comparable quarter. The
decrease was primarily due to lower overall sales volumes ($148.8 million) as well as lower metal prices net of price
adjustments ($75.8 million). Production costs were also higher in the current quarter due to $20.0 million recognized for
bonuses resulting from early successful union negotiations at Candelaria (2021 - $7.0 million).
Fourth Quarter Reconciliation of Realized Prices

|  | Three months ended December 31, 2022
| ($ thousands) | Copper | Zinc | Gold | Nickel | Total
| Current period sales 1 | 466,626 | 119,734 | 68,195 | 97,457 | 752,012
| Prior period price adjustments | 45,098 | (7,121) | 1,298 | 35,493 | 74,768
|  | 511,724 | 112,613 | 69,493 | 132,950 | 826,780
| Other metal sales |  |  |  |  | 57,678
| Copper stream cash effect |  |  |  |  | (5,146)
| Gold stream cash effect |  |  |  |  | (17,318)
| Less: Treatment & refining charges |  |  |  |  | (50,564)
| Total Revenue |  |  |  |  | 811,430
| Payable Metal | 55,507 t | 37,840 t | 37 koz | 3,239 t |
| Current period sales 1,2 | $3.81 | $1.44 | $1,822 | $13.65 |
| Prior period adjustments 2 | 0.37 | (0.09) | 34 | 4.97 |
| Realized prices 2, 3 | $4.18 /lb | $1.35 /lb | $1,856 /oz | $18.62 /lb |
|  | Three months ended December 31, 2021
|  | Copper | Zinc | Gold | Nickel | Total
| Current period sales 1 | 686,208 | 116,310 | 78,353 | 70,659 | 951,530
| Prior period price adjustments | 57,679 | 4,111 | 95 | 1,586 | 63,471
|  | 743,887 | 120,421 | 78,448 | 72,245 | 1,015,001
| Other metal sales |  |  |  |  | 78,830
| Copper stream cash effect |  |  |  |  | (5,874)
| Gold stream cash effect |  |  |  |  | (22,582)
| Less: Treatment & refining charges |  |  |  |  | (46,806)
| Total Revenue |  |  |  |  | 1,018,569
| Payable Metal | 70,887 t | 33,063 t | 43 koz | 3,390 t |
| Current period sales 1,2 | $4.39 | $1.60 | $1,844 | $9.45 |
| Prior period adjustments 2 | 0.37 | 0.05 | 2 | 0.22 |
| Realized prices 2, 3 | $4.76 /lb | $1.65 /lb | $1,846 /oz | $9.67 /lb |
| 1. Includes provisional price adjustments on current period sales.
| 2. This is a non-GAAP measure - see Section "Non-GAAP and Other Performance Measures" of this MD&A for discussion.
| 3. The realized price for copper inclusive of the impact of streaming agreements for 2022 is $4.14/lb (2021: $4.72/lb). The realized price for gold inclusive of the impact of streaming agreements for 2022 is $1,394/oz (2021: $1,315/oz).

Net Earnings
Net earnings for the quarter ended December 31, 2022 were $145.3 million compared to net earnings of $266.1 million in
the prior year comparable quarter. Net earnings were impacted by lower gross profit, partially offset by lower income tax
expense ($129.8 million).
Cash Flow from Operations
Cash flow from operations for the current quarter was $156.9 million, compared to the prior year comparable quarter of
$384.2 million. The decrease was largely due to lower gross profit before depreciation as well as a comparative negative
change in non-cash working capital of $34.8 million partially offset by lower income taxes paid.
12
Mining Operations
Production Overview

(Contained metal in concentrate) | 2022 | 2021
Total | Q4 | Q3 | Q2 | Q1 | Total | Q4 | Q3 | Q2 | Q1
| Copper (t) |  |  |  |  |  |  |  |  |  |
| Candelaria (100%) | 152,042 | 34,398 | 37,192 | 40,949 | 39,503 | 151,719 | 45,573 | 35,929 | 36,014 | 34,203
| Chapada | 45,739 | 11,306 | 13,988 | 10,345 | 10,100 | 52,019 | 14,870 | 16,050 | 11,258 | 9,841
| Eagle | 15,895 | 3,081 | 3,994 | 4,400 | 4,420 | 18,419 | 3,636 | 4,165 | 5,227 | 5,391
| Neves-Corvo | 31,906 | 7,160 | 7,019 | 7,867 | 9,860 | 37,941 | 12,100 | 8,083 | 10,317 | 7,441
| Zinkgruvan | 4,077 | 607 | 1,737 | 535 | 1,198 | 2,786 | 817 | 850 | 641 | 478
|  | 249,659 | 56,552 | 63,930 | 64,096 | 65,081 | 262,884 | 76,996 | 65,077 | 63,457 | 57,354
| Zinc (t) |  |  |  |  |  |  |  |  |  |
| Neves-Corvo | 82,435 | 24,523 | 22,514 | 20,647 | 14,751 | 66,031 | 18,750 | 15,909 | 16,662 | 14,710
| Zinkgruvan | 76,503 | 19,785 | 17,813 | 21,265 | 17,640 | 77,766 | 18,080 | 22,860 | 18,171 | 18,655
|  | 158,938 | 44,308 | 40,327 | 41,912 | 32,391 | 143,797 | 36,830 | 38,769 | 34,833 | 33,365
| Gold (koz) |  |  |  |  |  |  |  |  |  |
| Candelaria (100%) | 86 | 20 | 21 | 23 | 22 | 91 | 26 | 20 | 24 | 21
| Chapada | 68 | 16 | 24 | 16 | 12 | 76 | 20 | 26 | 17 | 13
|  | 154 | 36 | 45 | 39 | 34 | 167 | 46 | 46 | 41 | 34
| Nickel (t) |  |  |  |  |  |  |  |  |  |
| Eagle | 17,475 | 4,096 | 4,379 | 4,719 | 4,281 | 18,353 | 4,101 | 4,124 | 4,774 | 5,354
| Lead (t) |  |  |  |  |  |  |  |  |  |
| Neves-Corvo | 3,306 | 845 | 743 | 925 | 793 | 5,419 | 1,644 | 1,359 | 1,343 | 1,073
| Zinkgruvan | 30,517 | 7,619 | 7,046 | 9,124 | 6,728 | 22,183 | 5,427 | 6,952 | 5,095 | 4,709
|  | 33,823 | 8,464 | 7,789 | 10,049 | 7,521 | 27,602 | 7,071 | 8,311 | 6,438 | 5,782
| Silver (koz) |  |  |  |  |  |  |  |  |  |
| Candelaria (100%) | 1,595 | 306 | 337 | 457 | 495 | 1,420 | 481 | 341 | 318 | 280
| Chapada | 258 | 65 | 75 | 60 | 58 | 257 | 80 | 72 | 55 | 50
| Eagle | 93 | 20 | 20 | 26 | 27 | 119 | 34 | 30 | 25 | 30
| Neves-Corvo | 1,383 | 370 | 323 | 346 | 344 | 1,636 | 522 | 362 | 407 | 345
| Zinkgruvan | 2,621 | 663 | 642 | 739 | 577 | 2,018 | 483 | 658 | 457 | 420
|  | 5,950 | 1,424 | 1,397 | 1,628 | 1,501 | 5,450 | 1,600 | 1,463 | 1,262 | 1,125

Production Cost and Cash Cost Overview ($ thousand, $/lb)

|  | Three months ended December 31, |  | Year ended December 31,
| ($ thousands) | 2022 | 2021 |  | 2022 | 2021
| Candelaria |  |  |  |  |
| Production costs | $207,596 | $154,751 |  | $697,171 | $580,819
| Gross cost | 2.95 | 1.75 |  | 2.30 | 1.91
| By-product 1 | (0.43) | (0.44) |  | (0.34) | (0.40)
| Cash Cost (Cu, $/lb) | 2.52 | 1.31 |  | 1.96 | 1.51
| AISC (Cu, $/lb)2 | 4.19 | 2.25 |  | 3.22 | 2.52
| Chapada |  |  |  |  |
| Production costs | $84,247 | $64,685 |  | $324,096 | $226,821
| Gross cost | 3.23 | 2.19 |  | 3.28 | 2.22
| By-product | (1.28) | (1.12) |  | (1.20) | (1.17)
| Cash Cost (Cu, $/lb) | 1.95 | 1.07 |  | 2.08 | 1.05
| AISC (Cu, $/lb) | 3.73 | 1.75 |  | 3.36 | 1.75
| Eagle |  |  |  |  |
| Production cost | $50,581 | $41,080 |  | $193,003 | $169,508
| Gross cost | 6.39 | 5.08 |  | 5.21 | 4.39
| By-product | (3.99) | (5.30) |  | (4.42) | (5.63)
| Cash Cost (Ni, $/lb) | 2.40 | (0.22) |  | 0.79 | (1.24)
| AISC (Ni, $/lb) | 5.23 | 1.43 |  | 3.01 | 0.41
| Neves-Corvo |  |  |  |  |
| Production costs | $78,402 | $86,734 |  | $329,232 | $291,110
| Gross cost | 5.82 | 3.79 |  | 4.96 | 3.75
| By-product | (3.50) | (2.26) |  | (2.69) | (1.86)
| Cash Cost (Cu, $/lb) | 2.32 | 1.53 |  | 2.27 | 1.89
| AISC (Cu, $/lb) | 4.22 | 2.59 |  | 3.40 | 2.73
| Zinkgruvan |  |  |  |  |
| Production costs | $29,590 | $28,708 |  | $115,553 | $102,025
| Gross cost | 0.98 | 0.90 |  | 1.00 | 0.95
| By-product | (0.66) | (0.32) |  | (0.68) | (0.42)
| Cash Cost (Zn, $/lb) | 0.32 | 0.58 |  | 0.32 | 0.53
| AISC (Zn, $/lb) | 0.77 | 0.94 |  | 0.68 | 0.86
1. By-product is after related treatment and refining charges.
2. All-in Sustaining Cost ("AISC") is a non-GAAP measure, see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.

14
Capital Expenditures 1

|  | Year ended December 31,
|  | 2022 | 2021
| ($ thousands) | Sustaining | Expansionary | Capitalized Interest | Total | Sustaining | Expansionary | Capitalized Interest | Total
| Candelaria | 389,731 | — | — | 389,731 | 312,388 | — | — | 312,388
| Chapada | 104,711 | — | — | 104,711 | 52,275 | — | — | 52,275
| Eagle | 16,413 | — | — | 16,413 | 16,279 | — | — | 16,279
| Josemaria | — | 171,094 | 14 | 171,108 | — | — | — | —
| Neves-Corvo | 71,222 | 31,899 | 65 | 103,186 | 52,552 | 56,388 | 336 | 109,276
| Zinkgruvan | 48,144 | — | — | 48,144 | 41,325 | — | — | 41,325
| Other | 9,610 | — | — | 9,610 | 554 | — | — | 554
|  | 639,831 | 202,993 | 79 | 842,903 | 475,373 | 56,388 | 336 | 532,097
1. Capital expenditures are reported on a cash basis, as presented in the consolidated statement of cash flows. Sustaining capital expenditure is supplementary financial measure and expansionary capital expenditure is a non-GAAP measure – see the "Non-GAAP and Other Performance Measures" section of this MD&A for discussion.

Candelaria (Chile)
The Candelaria operations consist of an open pit and underground mines providing copper ore to two on-site processing
plants located near Copiapó in the Atacama region of Chile, as well as a port facility and desalination plant located
approximately 100km from the mine facilities in the town of Caldera. The Company holds an indirect 80% ownership interest
in Candelaria with the remaining 20% interest indirectly held by Sumitomo Metal Mining Co., Ltd and Sumitomo
Corporation. The plants have a combined processing capacity of 28 million tonnes per annum (“mtpa”), producing copper in
concentrate. The primary metal is copper, with gold and silver as by-product metals.
Operating Statistics

|  | 2022 | 2021
| (100% Basis) | Total | Q4 | Q3 | Q2 | Q1 | Total | Q4 | Q3 | Q2 | Q1
| Ore mined (000s tonnes) | 22,666 | 4,993 | 6,239 | 6,362 | 5,072 | 23,753 | 6,998 | 6,098 | 5,062 | 5,595
| Ore milled (000s tonnes) | 26,725 | 6,593 | 6,642 | 6,847 | 6,643 | 27,849 | 7,066 | 6,838 | 7,012 | 6,933
| Grade |  |  |  |  |  |  |  |  |  |
| Copper (%) | 0.62 | 0.57 | 0.60 | 0.64 | 0.65 | 0.59 | 0.69 | 0.58 | 0.56 | 0.53
| Gold (g/t) | 0.14 | 0.13 | 0.14 | 0.14 | 0.14 | 0.14 | 0.16 | 0.13 | 0.13 | 0.13
| Recovery |  |  |  |  |  |  |  |  |  |
| Copper (%) | 92.7 | 92.7 | 93.3 | 93.0 | 91.9 | 92.5 | 93.4 | 91.8 | 91.5 | 93.1
| Gold (%) | 73.9 | 74.0 | 74.6 | 73.8 | 73.0 | 74.4 | 72.1 | 73.8 | 77.5 | 74.7
| Production (contained metal) |  |  |  |  |  |  |  |  |  |
| Copper (tonnes) | 152,042 | 34,398 | 37,192 | 40,949 | 39,503 | 151,719 | 45,573 | 35,929 | 36,014 | 34,203
| Gold (000 oz) | 86 | 20 | 21 | 23 | 22 | 91 | 26 | 20 | 24 | 21
| Silver (000 oz) | 1,595 | 306 | 337 | 457 | 495 | 1,420 | 481 | 341 | 318 | 280
| Revenue ($000s) | 1,317,223 | 342,348 | 255,330 | 261,999 | 457,546 | 1,591,109 | 512,309 | 326,903 | 399,907 | 351,990
| Production costs ($000s) | 697,171 | 207,596 | 168,602 | 168,164 | 152,809 | 580,819 | 154,751 | 140,363 | 148,764 | 136,941
| Gross profit ($000s) | 335,793 | 69,285 | 11,956 | 17,924 | 236,628 | 721,200 | 275,529 | 121,007 | 182,867 | 141,797
| Cash cost ($ per pound copper) | 1.96 | 2.52 | 1.97 | 1.86 | 1.58 | 1.51 | 1.31 | 1.62 | 1.52 | 1.65
| AISC ($ per pound copper) | 3.22 | 4.19 | 3.34 | 2.89 | 2.61 | 2.52 | 2.25 | 2.67 | 2.61 | 2.59

Gross Profit
Gross profit for the year ended December 31, 2022 was lower than 2021, largely as a result of lower copper prices and
inflationary increases on production costs, partially offset by favourable foreign exchange movements.
Production
Copper production for the year ended December 31, 2022 was higher than the prior year due to higher head grades
extracted and processed from Phase 10 of the open pit. Gold production for the year was lower than 2021, impacted by mill
throughput due to increased maintenance activities. Annual copper production was slightly below full year guidance, while
gold production was at the high end of the guidance range.
On July 30, 2022, a sinkhole formed near the Alcaparrosa mine which is part of the Candelaria district operations. Upon
detection the area was immediately isolated. Mining operations at the Alcaparrosa mine remain suspended with minimal
impact on full year production results. The status of the sinkhole has not changed materially since detection and the
Company has supported ongoing investigations.
Production Costs and Cash Cost
Production costs and copper cash cost for the year ended December 31, 2022 were higher than the prior year, mainly due
to higher costs for energy and consumables, partially offset by favourable foreign exchange. Cash cost was higher than
guidance as a result of early successful negotiated union bonuses recognized during the fourth quarter of 2022. AISC for the
year ended December 31, 2022 were higher than those reported in the prior year due to higher cash cost.
For the year ended December 31, 2022, approximately 55,000 oz of gold and 983,000 oz of silver were subject to terms of a
streaming agreement from which approximately $420/oz of gold and $4.20/oz of silver were received.
16
Chapada (Brazil)
The Chapada mine consists of four open pit mines and on-site processing facilities located in the northern Goiás State of
Brazil, approximately 270 km northwest of the national capital of Brasilia. The processing plant has a capacity of 24.0 mtpa,
producing high-quality gold-rich copper concentrate. The primary metal is copper, with gold and silver as by-product metals.
Operating Statistics

|  | 2022 | 2021
| (100% Basis) | Total | Q4 | Q3 | Q2 | Q1 | Total | Q4 | Q3 | Q2 | Q1
| Ore mined (000s tonnes) | 26,319 | 7,801 | 7,404 | 4,875 | 6,239 | 37,294 | 10,845 | 11,227 | 8,725 | 6,497
| Ore milled (000s tonnes) | 22,752 | 5,296 | 6,345 | 5,670 | 5,441 | 24,121 | 5,711 | 6,435 | 6,132 | 5,843
| Grade |  |  |  |  |  |  |  |  |  |
| Copper (%) | 0.26 | 0.25 | 0.28 | 0.25 | 0.23 | 0.27 | 0.30 | 0.30 | 0.25 | 0.23
| Gold (g/t) | 0.16 | 0.16 | 0.19 | 0.17 | 0.13 | 0.18 | 0.17 | 0.21 | 0.17 | 0.15
| Recovery |  |  |  |  |  |  |  |  |  |
| Copper (%) | 78.6 | 83.4 | 78.8 | 72.9 | 79.6 | 80.4 | 87.0 | 84.1 | 75.7 | 72.1
| Gold (%) | 56.0 | 59.5 | 58.3 | 50.6 | 55.3 | 56.0 | 65.9 | 58.3 | 52.3 | 46.2
| Production (contained metal) |  |  |  |  |  |  |  |  |  |
| Copper (tonnes) | 45,739 | 11,306 | 13,988 | 10,345 | 10,100 | 52,019 | 14,870 | 16,050 | 11,258 | 9,841
| Gold (000 oz) | 68 | 16 | 24 | 16 | 12 | 76 | 20 | 26 | 17 | 13
| Silver (000 oz) | 258 | 65 | 75 | 60 | 58 | 257 | 80 | 72 | 55 | 50
| Revenue ($000s) | 477,927 | 142,328 | 118,734 | 57,260 | 159,605 | 567,386 | 172,699 | 160,332 | 148,137 | 86,218
| Production costs ($000s) | 324,096 | 84,247 | 88,665 | 71,507 | 79,677 | 226,821 | 64,685 | 59,489 | 63,667 | 38,980
| Gross profit (loss) ($000s) | 41,420 | (22,522) | 17,851 | (22,720) | 68,811 | 229,443 | 27,833 | 90,275 | 72,023 | 39,312
| Cash cost ($ per pound copper) | 2.08 | 1.95 | 1.92 | 2.98 | 1.82 | 1.05 | 1.07 | 0.62 | 1.32 | 1.33
| AISC ($ per pound copper) | 3.36 | 3.73 | 2.80 | 5.00 | 2.56 | 1.75 | 1.75 | 1.36 | 1.98 | 2.11

Gross Profit
Gross profit for the year ended December 31, 2022 was lower compared to the prior year largely due to lower copper prices
and inflationary increases for production costs, as well as lower sales volumes. Included in gross profit is a non-cash write-
down of long-term ore stockpile inventory of $62.5 million to net realizable value.
Production
Copper and gold production for the year ended December 31, 2022 were lower than 2021 due to mine sequencing which
affected grades. Delayed access to planned ore sources, primarily as a result of above average rainfall experienced in the
first half of 2022, impacted planned waste stripping and mining activities, resulting in lower throughput. Both metals
achieved annual production guidance, with gold exceeding the guidance range.
Production Costs and Cash Cost
Production costs were higher than the prior year due to higher consumables prices, including diesel and electricity, and
other operating contracts impacted by inflationary increases.
Copper cash cost for the year ended December 31, 2022 was higher than in 2021 due to higher costs for energy and other
inputs, combined with lower sales volumes. Full year copper cash cost was better than annual guidance.
AISC was higher compared to the prior year due to higher cash cost and sustaining capital expenditures.
Projects
The Company is continuing to evaluate options for long-term mine and plant expansion. Study work is being conducted
following comprehensive exploration efforts focused on near-mine targets since acquisition. The results will be
incorporated in any future expansionary or optimization plans. During the year, approximately 61,200 metres of exploration
drilling were completed.
Eagle (USA)
The Eagle mine consists of the Eagle underground mine, located approximately 53 km northwest of Marquette, Michigan,
U.S.A. and the Humboldt mill, located 61 km west of Marquette. The plant has a processing capacity of 0.7 mtpa, producing
nickel and copper in concentrates. The primary metal is nickel with copper, and minor amounts of cobalt, gold, and
platinum-group metals as by-product metals.
Operating Statistics

|  | 2022 | 2021
| (100% Basis) | Total | Q4 | Q3 | Q2 | Q1 | Total | Q4 | Q3 | Q2 | Q1
| Ore mined (000s tonnes) | 718 | 165 | 190 | 181 | 182 | 697 | 165 | 169 | 177 | 186
| Ore milled (000s tonnes) | 718 | 170 | 187 | 182 | 179 | 699 | 167 | 166 | 180 | 186
| Grade |  |  |  |  |  |  |  |  |  |
| Nickel (%) | 2.8 | 2.7 | 2.7 | 3.0 | 2.8 | 3.1 | 2.9 | 3.0 | 3.2 | 3.3
| Copper (%) | 2.3 | 1.9 | 2.2 | 2.5 | 2.5 | 2.7 | 2.2 | 2.6 | 3.0 | 3.0
| Recovery |  |  |  |  |  |  |  |  |  |
| Nickel (%) | 86.6 | 88.6 | 85.5 | 87.3 | 85.3 | 84.1 | 83.6 | 82.4 | 83.9 | 86.1
| Copper (%) | 97.2 | 96.8 | 96.5 | 97.7 | 97.6 | 97.3 | 96.8 | 97.4 | 97.2 | 97.5
| Production (contained metal) |  |  |  |  |  |  |  |  |  |
| Nickel (tonnes) | 17,475 | 4,096 | 4,379 | 4,719 | 4,281 | 18,353 | 4,101 | 4,124 | 4,774 | 5,354
| Copper (tonnes) | 15,895 | 3,081 | 3,994 | 4,400 | 4,420 | 18,419 | 3,636 | 4,165 | 5,227 | 5,391
| Revenue ($000s) | 520,472 | 157,060 | 106,715 | 106,828 | 149,869 | 462,488 | 108,416 | 101,311 | 133,893 | 118,868
| Production costs ($000s) | 193,003 | 50,581 | 47,736 | 55,128 | 39,558 | 169,508 | 41,080 | 39,641 | 48,527 | 40,260
| Gross profit ($000s) | 247,946 | 87,359 | 37,329 | 29,796 | 93,462 | 211,487 | 48,203 | 42,752 | 62,228 | 58,304
| Cash cost ($ per pound nickel) | 0.79 | 2.40 | 1.05 | 0.90 | (1.25) | (1.24) | (0.22) | (0.80) | (2.01) | (1.62)
| AISC ($ per pound nickel) | 3.01 | 5.23 | 2.77 | 2.93 | 1.19 | 0.41 | 1.43 | 0.93 | (0.23) | (0.17)

Gross Profit
Gross profit for the year ended December 31, 2022 was higher than the prior year due primarily to higher nickel prices.
Production
Nickel and copper production for the year were lower than the prior year, due to planned lower grades. 2022 full year
production guidance was achieved for both nickel and copper.
Production Costs and Cash Cost
Production costs for the year ended December 31, 2022 were $23.5 million higher than the prior year due to higher costs
for energy and consumables.
Nickel cash cost for the year ended December 31, 2022 was higher than the prior year and annual guidance, primarily due
to lower by-product copper prices, combined with inflationary increases on operating costs and lower sales volumes.
AISC for the year ended December 31, 2022, were higher than the prior year largely as a result of higher cash cost, as well
as higher royalties and amortization related to reclamation and other closure provisions assets.
18
Neves-Corvo (Portugal)
Neves-Corvo is located 200 km southeast of Lisbon, Portugal, in the western part of the Iberian Pyrite Belt and consists of an
underground mine and on-site processing facilities. The copper plant has a processing capacity of up to 2.8 mtpa, producing
copper in concentrate, and the zinc plant is ramping up to an expanded capacity of 2.5 mtpa producing zinc and lead
concentrates. The primary metal is copper, with zinc, lead and silver as by-product metals.
Operating Statistics

|  | 2022 | 2021
| (100% Basis) | Total | Q4 | Q3 | Q2 | Q1 | Total | Q4 | Q3 | Q2 | Q1
| tonnes) | 2,501 | 611 | 598 | 610 | 682 | 2,573 | 716 | 580 | 646 | 631
| Ore mined, zinc (000s tonnes) | 1,632 | 462 | 447 | 426 | 297 | 1,062 | 278 | 251 | 275 | 258
| tonnes) | 2,499 | 607 | 596 | 606 | 690 | 2,564 | 724 | 565 | 655 | 620
| Ore milled, zinc (000s tonnes) | 1,633 | 465 | 449 | 420 | 299 | 1,060 | 284 | 242 | 280 | 254
| Grade |  |  |  |  |  |  |  |  |  |
| Copper (%) | 1.7 | 1.6 | 1.6 | 1.7 | 1.8 | 1.9 | 2.1 | 1.8 | 1.9 | 1.5
| Zinc (%) | 6.9 | 6.9 | 6.9 | 6.9 | 7.0 | 7.8 | 8.1 | 8.2 | 7.5 | 7.4
| Recovery |  |  |  |  |  |  |  |  |  |
| Copper (%) | 76.1 | 75.1 | 73.0 | 77.0 | 78.7 | 79.6 | 78.9 | 77.8 | 81.7 | 80.0
| Zinc (%) | 70.2 | 74.3 | 70.3 | 68.4 | 66.1 | 76.6 | 76.4 | 76.5 | 77.5 | 76.0
| Production (contained metal) |  |  |  |  |  |  |  |  |  |
| Copper (tonnes) | 31,906 | 7,160 | 7,019 | 7,867 | 9,860 | 37,941 | 12,100 | 8,083 | 10,317 | 7,441
| Zinc (tonnes) | 82,435 | 24,523 | 22,514 | 20,647 | 14,751 | 66,031 | 18,750 | 15,909 | 16,662 | 14,710
| Lead (tonnes) | 3,306 | 845 | 743 | 925 | 793 | 5,419 | 1,644 | 1,359 | 1,343 | 1,073
| Silver (000 oz) | 1,383 | 370 | 323 | 346 | 344 | 1,636 | 522 | 362 | 407 | 345
| Revenue ($000s) | 433,486 | 102,516 | 102,865 | 93,538 | 134,567 | 479,347 | 156,008 | 108,083 | 134,496 | 80,760
| Production costs ($000s) | 329,232 | 78,402 | 94,572 | 77,788 | 78,470 | 291,110 | 86,734 | 69,831 | 73,846 | 60,699
| Gross profit (loss) ($000s) | 2,447 | (7,570) | (17,006) | (8,229) | 35,252 | 125,069 | 51,851 | 22,313 | 44,085 | 6,820
| Cash cost ($ per pound copper) | 2.27 | 2.32 | 2.69 | 2.39 | 1.70 | 1.89 | 1.53 | 2.05 | 1.65 | 2.61
| AISC ($ per pound copper) | 3.40 | 4.22 | 3.51 | 3.14 | 2.92 | 2.73 | 2.59 | 2.86 | 2.34 | 3.38

Gross Profit
Gross profit for the year ended December 31, 2022, was lower than 2021 due to higher costs for energy and consumables
and lower copper price. Higher costs were partially offset by favourable foreign exchange movements.
Production
Copper production for the year ended December 31, 2022, was lower than the prior year and annual guidance due to lower
grades and recoveries. Full year zinc production was better than the prior year, due to higher throughput related to the
increased production from ZEP.
On March 30, 2022 and September 30, 2022, two independent fatalities occurred during underground mining operations.
The Company voluntarily suspended operations temporarily following the incidents and initiated internal investigations and
continues to cooperate with all relevant authorities.
Production Costs and Cash Cost
Production costs for the year ended December 31, 2022, were higher than the prior year, largely as a result of inflationary
cost increases, in particular electricity, partially offset by favourable foreign exchange.
Copper cash cost for the year was higher than annual guidance and the prior year due to higher production costs and lower
sales volumes.
AISC for the year ended December 31, 2022, were higher than the prior year due to higher cash cost and higher capital
expenditures.
Projects
ZEP production ramp-up continues, although it has experienced some impacts due to ore availability from newly developed
mining areas. The slower than anticipated ramp up of the Neves-Corvo ZEP achieved in 2022 will necessitate further
operational improvement in 2023, particularly in new underground mining areas and materials handling infrastructure.
Optimization of the ZEP underground and plant infrastructure has commenced and will continue into 2023. A total of
approximately $32.0 million of expansionary capital expenditures was spent in 2022.
20
Zinkgruvan (Sweden)
The Zinkgruvan mine consists of an underground mine and on-site processing facilities, located approximately 200 km
southwest of Stockholm, Sweden. The plant has processing capacity of 1.6 mtpa. Products are zinc, lead and copper
concentrates. The primary metal is zinc, with lead, silver and copper as by-products.
Operating Statistics

|  | 2022 | 2021
| (100% Basis) | Total | Q4 | Q3 | Q2 | Q1 | Total | Q4 | Q3 | Q2 | Q1
| Ore mined, zinc (000s tonnes) | 1,209 | 325 | 260 | 298 | 326 | 1,200 | 295 | 279 | 298 | 328
| Ore mined, copper (000s tonnes) | 192 | 48 | 61 | 38 | 45 | 201 | 26 | 66 | 66 | 43
| Ore milled, zinc (000s tonnes) | 1,234 | 309 | 293 | 327 | 305 | 1,181 | 291 | 289 | 267 | 334
| Ore milled, copper (000s tonnes) | 225 | 26 | 84 | 27 | 88 | 178 | 52 | 52 | 50 | 24
| Grade |  |  |  |  |  |  |  |  |  |
| Zinc (%) | 7.0 | 7.3 | 6.9 | 7.3 | 6.5 | 7.4 | 7.0 | 8.9 | 7.6 | 6.3
| Lead (%) | 3.0 | 3.0 | 2.9 | 3.3 | 2.7 | 2.4 | 2.3 | 3.1 | 2.4 | 1.8
| Copper (%) | 2.1 | 2.6 | 2.4 | 2.3 | 1.6 | 1.8 | 1.8 | 1.9 | 1.5 | 2.2
| Recovery |  |  |  |  |  |  |  |  |  |
| Zinc (%) | 88.4 | 88.3 | 87.5 | 89.1 | 88.7 | 88.9 | 88.5 | 89.1 | 89.1 | 88.8
| Lead (%) | 82.4 | 82.2 | 82.5 | 83.1 | 81.7 | 78.3 | 80.8 | 77.4 | 78.7 | 76.5
| Copper (%) | 87.1 | 89.0 | 86.1 | 87.7 | 87.3 | 87.5 | 87.5 | 88.5 | 85.0 | 89.5
| Production (contained metal) |  |  |  |  |  |  |  |  |  |
| Zinc (tonnes) | 76,503 | 19,785 | 17,813 | 21,265 | 17,640 | 77,766 | 18,080 | 22,860 | 18,171 | 18,655
| Lead (tonnes) | 30,517 | 7,619 | 7,046 | 9,124 | 6,728 | 22,183 | 5,427 | 6,952 | 5,095 | 4,709
| Copper (tonnes) | 4,077 | 607 | 1,737 | 535 | 1,198 | 2,786 | 817 | 850 | 641 | 478
| Silver (000 oz) | 2,621 | 663 | 642 | 739 | 577 | 2,018 | 483 | 658 | 457 | 420
| Revenue ($000s) | 292,120 | 67,178 | 64,854 | 70,596 | 89,492 | 228,435 | 69,137 | 59,765 | 55,891 | 43,642
| Production costs ($000s) | 115,553 | 29,590 | 25,709 | 29,066 | 31,188 | 102,025 | 28,708 | 21,885 | 25,840 | 25,592
| Gross profit ($000s) | 139,828 | 29,800 | 33,703 | 30,500 | 45,825 | 85,296 | 29,249 | 28,630 | 20,100 | 7,317
| Cash cost ($ per pound) | 0.32 | 0.32 | 0.18 | 0.44 | 0.27 | 0.53 | 0.58 | 0.32 | 0.42 | 0.76
| AISC ($ per pound) | 0.68 | 0.77 | 0.50 | 0.82 | 0.57 | 0.86 | 0.94 | 0.61 | 0.76 | 1.10

Gross Profit
Gross profit for the year ended December 31, 2022, was higher than the prior year due to higher sales volumes, higher zinc
prices, net of price adjustments, and favourable foreign exchange.
Production
Zinc production for the year ended December 31, 2022, was below the prior year production and annual guidance, due to
lower grades impacted by mine sequencing. Current annual copper production exceeded guidance and 2021 production
due to higher mill throughput and grades. Lead production for the year was higher than the prior year due to higher grades.
Production Costs and Cash Cost
Production costs for the year ended December 31, 2022, were higher than the prior year due to inflationary increases on
input costs and higher production volumes, partially offset by favourable foreign exchange.
Zinc cash cost for the year ended December 31, 2022, was better than annual guidance and the prior year cash cost, due to
higher by-products credits and favourable foreign exchange movements.
AISC for the year were lower than the prior year due to lower cash cost.
Josemaria Project (Argentina)
Josemaria Project is located in the San Juan Province of Argentina, approximately 9 km east of the Chile-Argentina border.
Access to site is to be from the city of San Juan, a major mining centre, along public two-lane paved roads and a project-
developed and maintained gravel road. The project is developing access to water, grid power, as well as transportation and
logistics wholly within San Juan province.
Project Development
The Josemaria Project is a large-scale copper-gold-silver project. Lundin Mining acquired the Project with the April 2022
acquisition of Josemaria Resources. The Josemaria Project received its Environmental Social Impact Assessment ("ESIA")
approval from the Mining Authority of San Juan, Argentina on April 11, 2022. The Josemaria Project team are working with
the national and provincial authorities to progress the project through the next stages of development and associated
approvals and meeting the conditions accompanying the issuance of the ESIA.
The Josemaria Project is working towards establishing a baseline capital cost estimate and project execution schedule based
on advancing the project engineering design. Plant engineering, including procurement of long lead equipment, is underway
and engineering was at 38% complete as at December 31, 2022. Early works continues onsite mainly with the preparation
of platforms for the camp, commissioning of additional fuel storage and kitchen expansion at the existing Batidero camp.
Pre-construction early works including internal access roads and completion of Phase 1 of the new camp were also well
advanced. Work continues on permitting and the EIA for the new power line was submitted. Agreements continue to
progress on power supply, concentrate logistics, infrastructure funding and a project construction union agreement.
Annual guidance for the Project was $300.0 million in 2022, including engineering, long-lead equipment, pre-construction
activities, owner's costs and drilling. In 2022, the Company spent $237.4 million, inclusive of foreign exchange and trading
gains on equity investments, of which $171.1 million was recorded as capital expenditure and has entered into
approximately $122.0 million of non-cancellable commitments. Substantially all project costs related to the Josemaria
Project were capitalized beginning in the fourth quarter of 2022.
Josemaria Mineral Resources and Mineral Reserves remain unchanged since the 2020 estimates. Subsequent to the 2020
estimate cut-off date, approximately 30,600 metres of drilling have been completed through the end of 2022, which will be
incorporated into future Mineral Resource and Reserve estimates. Testing and modelling work continues, which will also be
incorporated into the updated estimate.
22
Metal Prices, LME Inventories and Smelter Treatment and Refining Charges
The average metal prices for zinc and nickel were higher in 2022 compared to 2021, while the average metal price for
copper was lower over the same period. The average gold price was unchanged in 2021 and 2022. The average prices
during the fourth quarter for copper and nickel were 3% and 15% higher, respectively, than the average prices of the third
quarter of 2022. The average price of zinc during the fourth quarter of 2022 was 8% lower than the average price in the
third quarter of 2022, and the price of gold was essentially unchanged. All metal prices, with the exception of nickel, were
lower in the current quarter compared to the prior year comparable quarter.

|  |  | Three months ended December 31, |  | Year ended December 31,
| (Average LME Price) | 2022 | 2021 | Change |  | 2022 | 2021 | Change
| Copper | US$/pound | 3.63 | 4.40 | -18% |  | 3.99 | 4.23 | -6%
|  | US$/tonne | 8,001 | 9,699 |  |  | 8,797 | 9,317 |
| Zinc | US$/pound | 1.36 | 1.53 | -11% |  | 1.58 | 1.36 | 16%
|  | US$/tonne | 3,001 | 3,364 |  |  | 3,478 | 3,007 |
| Gold | US$/ounce | 1,726 | 1,795 | -4% |  | 1,800 | 1,799 | —%
| Nickel | US$/pound | 11.47 | 8.99 | 28% |  | 11.61 | 8.39 | 38%
|  | US$/tonne | 25,292 | 19,821 |  |  | 25,604 | 18,488 |

The LME inventory for zinc and nickel decreased during 2022 and ended the year 84% and 46% lower respectively, than the
closing levels of 2021. The LME inventory for copper remained unchanged.
During the first four months of 2022 the treatment charges (“TC”) and refining charges (“RC”) in the spot market for copper
concentrates between miners and commodity traders increased from an average spot TC during January of $53 per dmt of
concentrate and a spot RC of $0.053 per lb of payable copper to a spot TC of $77 per dmt of concentrate and a spot RC of
$0.077 per lb of payable copper during April 2022. Starting in May, with slightly decreased supply, the spot TC’s and copper
RC’s started to decrease from an average spot TC during May of $74 per dmt of concentrate and a spot RC of $0.074 per lb
of payable copper to a spot TC of $53 per dmt of concentrate and a spot RC of $0.053 per lb of payable copper during July
2022. During the remainder of the year the spot TC increased from an August level of $58 per dmt of concentrates and a
spot RC of $0.058 per lb payable copper, peaking at a spot TC of $80 per dmt of concentrates and a spot RC of $0.08 per lb
payable copper in November 2022, before dropping to a spot TC of $76 per dmt of concentrates and a spot RC of $0.076
per lb payable copper in December 2022.
The Chinese smelter buying terms followed the same trend as above, starting the year from a spot TC of $63 per dmt of
concentrates and a spot RC of $0.063 per lb payable copper and finishing the year at a spot TC of $87 per dmt of
concentrates and a spot RC of $0.087 per lb payable copper.
The terms for annual contracts for copper concentrates for 2023 were reached in November 2022 at a TC of $88 per dmt
with a RC of $0.088 per payable lb of copper. This represents an improvement for the smelters compared to the 2022
annual terms at a TC of $65.00 per dmt of concentrates and a RC of $0.065 per payable lb of copper.
The spot TC, delivered China, for zinc concentrates increased steadily during the first four months of 2022, ranging between
$115 per dmt, flat, at the beginning of the year to $260 per dmt, flat, by the end of April. After gradually decreasing down
to $189 per dmt, flat in July 2022, the spot TC again increased through the balance of the year, ending at $275 per dmt, flat.
The TC for annual contracts for 2022 was settled at $230 per dmt of concentrates, with an upscale price escalator of 5%
from a price basis of $3,800 per mt zinc without de-escalator, and represented an improvement of approximately $71 per
dmt concentrates in favour of the smelters compared to the prior year. The negotiation of annual terms for 2023 are not
expected to be completed until the end of the first quarter of 2023.
The Company’s nickel concentrate production from Eagle is sold under several long-term contracts at terms in-line with
market conditions. Gold production from Chapada and Candelaria is sold at terms in-line with market conditions for copper
concentrates.
Liquidity and Capital Resources
As at December 31, 2022, the Company had cash and cash equivalents of $191.4 million. The Company continues to expect
to be able to fund all its contractual commitments with its operating cash flow, cash on hand and available capital
resources.
Cash flow from operations for the year ended December 31, 2022 amounted to $876.9 million and was $608.1 million lower
than the prior year as a result of lower gross profit before depreciation of $572.9 million, a lower comparative change in
non-cash working capital, increase in Josemaria costs partially offset by lower cash taxes paid.
Cash flow used in investing activities for the year ended December 31, 2022 amounted to $1,013.4 million and was higher
compared to the prior year due to higher capital investments, particularly deferred stripping. During the second quarter of
2022, $126.4 million was used for the acquisition of Josemaria Resources.
During the current year, the Company used $251.6 million in financing activities which was lower than the cash used in
2021. This was primarily as a result of higher net proceeds from debt used to fund the Josemaria Project.
Capital Resources
As at December 31, 2022, the Company had $170.2 million of debt and $27.2 million of lease liabilities outstanding.
The Company has a revolving Credit Facility of $1,750.0 million (2021 - $800.0 million with a $200.0 million accordion
option), maturing in April 2027. As at December 31, 2022, $13.7 million was outstanding (2021 - $nil). The Credit Facility
bears interest on drawn funds at rates of Term Secured Overnight Financing Rate ("Term SOFR") + Credit Spread
Adjustment ("CSA") + 1.45% to Term SOFR + CSA + 2.50% depending on the Company’s net leverage ratio. The Credit Facility
is subject to customary covenants. Subsequent to year end t he Company drew down an additional $25.0 million on the
Credit Facility, and received commitments from the lenders to, upon completion and execution of the first amendment to
the fourth amended and restated credit agreement, extend the term by one year to April 2028 and reduce the credit spread
adjustment.
The Company also has an equipment financing line of credit of $26.7 million (€25.0 million) with an outstanding balance of
$2.4 million at December 31, 2022 (2021 - $5.1 million). The Company also has a commercial paper program which matures
in May 2025 in the amount of $26.7 million (€25.0 million). The program bears interest rates at EURIBOR+0.50%. As at
December 31, 2022, the full amount of the program was drawn (2021 - $nil). As at December 31, 2022, the Company had
outstanding unsecured term loans of $127.4 million with interest rates between 5.32% to 6.13% and maturity dates ranging
from January 5, 2023 to December 20, 2023. Subsequent to year end the Company obtained additional unsecured term
loans totalling $34.6 million.
The Company purchased approximately 10.8 million shares under its NCIB for total consideration of $59.4 million during the
year ended December 31, 2022 (2021 - 4.5 million shares, $40.7 million consideration). All of the common shares purchased
have been cancelled.
The Company renewed its NCIB which allows the Company to purchase up to 65,313,173 common shares over a twelve
month period commencing December 9, 2022. In addition, the Company entered into an automatic share purchase plan
with its designated broker to allow for the purchase of common shares at times when the Company ordinarily would not be
active in the market due to trading blackout periods, insider trading rules or otherwise.
On April 28, 2022, the Company issued 40,031,936 Lundin Mining common shares and 2,513,866 Lundin Mining
replacement stock options upon closing of the Josemaria Resources acquisition. For a detailed discussion of the Company’s
acquisition of Josemaria Resources refer to Note 3 of the Company’s Consolidated Financial Statements.
The development of the Josemaria Project requires significant capital commitments from the Company, and additional
funding, beyond debt, may be required to advance the project to completion. Such additional funding may take the form of
a partnership, joint venture, royalty, stream or other arrangement (or combination of the foregoing) for the Josemaria
Project, any of which would dilute the Company’s existing interest in the Josemaria Project. The Company may also be
required or elect to pursue equity financing, which could have a dilutive effect on existing security holders if shares,
options, warrants or other convertible securities are issued.
24
The Company’s ability to obtain additional financing for the Josemaria Project in the future will depend, in part, on
prevailing capital market conditions and the Company’s financial performance. Failure to secure adequate financing on a
timely basis may cause the Company to postpone, abandon, reduce or terminate its development activities in respect of the
Josemaria Project and could have a material adverse effect on the Company’s business, results of operations and financial
condition.
In addition, the Company’s exploration, acquisition, development and operational activities generally require significant
investment of resources and capital. The Company allocates such resources and capital to support business objectives, and
the availability of required resources and capital is subject to market conditions and the Company’s financial position.
The Company has limited financial resources and there is no assurance that sufficient additional funding or financing will be
available to the Company or its direct and indirect subsidiaries on acceptable terms, or at all, for further exploration or
development of its properties, including the development of the Josemaria Project, or to fulfill its obligations under any
applicable agreements.
The Company may incur substantial debt from time to time to finance working capital, capital expenditures (such as to
advance the Josemaria Project), investments or acquisitions or for other purposes. If the Company does so, the risks related
to the Company’s indebtedness could intensify, including, among other things: substantial interest and capital payments;
increased difficulty in satisfying existing debt obligations; limitations on the ability to obtain additional financing, or
imposed requirements to make non-strategic divestitures; imposed hedging requirements; explicit or implicit restrictions on
the Company’s cash flows for capital investment, dividends or distributions, opportunistic acquisitions and other business
needs; increased vulnerability to general adverse economic and industry conditions; interest rate risk exposure as
borrowings may be at variable rates of interest; decreased flexibility in planning for and reacting to changes in the industry
in which it competes; reduced competitiveness as compared to less leveraged competitors; and increased cost of additional
borrowing.
The terms of the Credit Agreement require the Company to satisfy various affirmative and negative covenants and to meet
certain financial ratios and tests. These covenants limit, among other things, the Company’s ability to incur further
indebtedness if doing so would cause it to fail to meet certain financial covenants, create certain liens on assets or engage
in certain types of transactions. A failure to comply with these covenants, including a failure to meet the financial tests or
ratios, would likely result in an event of default under the Credit Agreement and would allow the lenders to restrict future
loans or accelerate the debt, which could materially and adversely affect the Company’s business, financial condition and
results of operations, its ability to meet payment obligations under its debt and the price of its common shares.
The Company may issue additional securities to raise funds, to pay for acquisitions or for other reasons. The Company
cannot predict the size of future issuances of securities or the effect, if any, that future issuances and sales of securities will
have on the market price of common shares. Sales or issuances of substantial numbers of common shares, or the
expectation that such sales could occur, may adversely affect prevailing market prices of the Company’s common shares. In
connection with any issuance of common shares, investors will suffer dilution to their voting power and the Company may
experience dilution in its earnings per share.
The Company is exposed to various counterparty risks including, among others: financial institutions that hold the
Company’s cash; companies that have payables to the Company, including concentrate customers; the Company’s
insurance providers; the Company’s lenders and other banking counterparties; companies that have received deposits from
the Company for the future delivery of equipment; third parties that have agreed to indemnify the Company upon the
occurrence of certain events; and joint venture/operations partners.
The Company maintains relationships with various banking partners for its operating activities in the jurisdictions in which
the Company operates. The Company’s access to funds under its credit facilities or other debt arrangements is dependent
on the ability of the financial institutions that are counterparties to the facilities to meet their funding commitments.
Default by financial institutions could require the Company to take measures to conserve cash until the markets stabilize or
until alternative credit or other funding arrangements for the Company’s business needs can be obtained.
Contractual Obligations, Commitments and Contingencies
The Company has contractual obligations and capital commitments as described in Note 24 “Commitments and
Contingencies” in the Company’s Consolidated Financial Statements. From time to time, the Company may also be involved
in legal proceedings that arise in the ordinary course of its business.
The Company has the following contractual obligations and capital commitments as at December 31, 2022:

|  | Payments due by period 1
| $ thousands | <1 year | 1-5 years | Thereafter | Total
| Reclamation and closure provisions | 23,550 | 78,213 | 588,649 | 690,412
| Long-term debt and lease liabilities | 171,282 | 30,451 | 1,360 | 203,093
| Capital commitments | 382,043 | 101,694 | — | 483,737
| Defined pension obligations | 709 | 2,474 | 1,797 | 4,980
|  | 577,584 | 212,832 | 591,806 | 1,382,222
| 1 Reported on an undiscounted basis, before inflation.

From time to time, the Company is involved in legal proceedings that arise in the ordinary course of its business.
Additionally, the Company has other commitments and contingencies as discussed in the Company’s Consolidated Financial
Statements Note 24 “Commitments and Contingencies”.
Financial Instruments
During the year, the Company entered into derivative contracts consisting of foreign currency forward contracts and
forward option contracts. The option contracts consist of put and call contracts in a collar structure. The Company does not
currently utilize financial instruments in hedging metal price or interest rate exposure.
For a detailed discussion of the Company’s financial instruments refer to Note 23 of the Company’s Consolidated Financial
Statements.
Market and Liquidity Risks and Sensitivities
Revenue and cost of goods sold are affected by certain external factors including fluctuations in metal prices and changes in
exchange rates between the €, the SEK, the CLP, the BRL and the $.
Commodity prices, primarily copper, zinc, gold and nickel are key performance drivers and fluctuations in the prices of these
commodities can have a dramatic effect on the results of operations. Prices can fluctuate widely and are affected by
numerous factors beyond the Company’s control. The prices of metals are influenced by supply and demand, exchange
rates, interest rates and interest rate expectations, inflation or deflation and expectations with respect to inflation or
deflation, speculative activities, changes in global economies, and geopolitical, social and other factors. The supply of
metals consists of a combination of new mine production, recycling and existing stocks held by governments, producers and
consumers.
If market prices for metals fall below the Company’s full production costs and remain at such levels for any sustained period
of time, the Company may experience losses and may decide to discontinue mining operations or development of a project
at one or more of its properties. If the prices drop significantly, the economic prospects of the mines and projects in which
the Company has an interest could be significantly reduced or rendered uneconomic, in which case the Company may need
to restate its Mineral Resource and Mineral Reserve estimates. Low metal prices will affect the Company’s liquidity, and if
they persist for an extended period of time, the Company may have to look for other sources of cash flow to maintain
liquidity until metal prices recover. A sustained and material impact on the Company’s liquidity may also impact the
Company’s ability to comply with financial covenants under its credit facilities.
Foreign Currency Denominated Production Costs
For the year ended December 31, 2022, Candelaria production costs are approximately 55% CLP denominated and Chapada
production costs are approximately 80% BRL denominated. Production costs for Eagle, Neves-Corvo and Zinkgruvan are
substantially denominated in their functional currencies.
26
Metal Prices
The following table illustrates the sensitivity of the Company's risk on final settlement of its provisionally priced revenues:

| Metal | Payable Metal | Provisional price on December 31, 2022 | Change | Effect on Revenue ($millions)
| Copper | 89,887 t | $3.79/lb | +/- 10% | +/- $75.1
| Zinc | 36,350 t | $1.35/lb | +/- 10% | +/- $10.8
| Gold | 39 koz | $1,823/oz | +/- 10% | +/- $7.1
| Nickel | 4,939 t | $13.60/lb | +/- 10% | +/- $14.8

Related Party Transactions
The Company enters into related party transactions that are in the normal course of business and on an arm’s length basis.
Related party disclosures can be found in Note 26 of the Company’s December 31, 2022 Consolidated Financial Statements.
Changes in Accounting Policies and Critical Accounting Estimates and Judgments
The Company describes its significant accounting policies as well as any changes in accounting policies in Note 2 “Basis of
Presentation and Summary of Significant Accounting Policies” of the December 31, 2022 Consolidated Financial Statements.
Non-GAAP and Other Performance Measures
The Company uses certain performance measures in its analysis. These performance measures have no meaning within
generally accepted accounting principles under IFRS and, therefore, amounts presented may not be comparable to similar
data presented by other mining companies. This data is intended to provide additional information and should not be
considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The following are
non-GAAP measures that the Company uses as key performance indicators.
Net (Debt) Cash
Net (debt) cash is a performance measure used by the Company to assess its financial position. Management believes that
in addition to conventional performance measures prepared in accordance with IFRS, net (debt) cash is a useful indicator to
some investors to evaluate the Company’s financial position. Net (debt) cash is defined as cash and cash equivalents, less
debt and lease liabilities, excluding deferred financing fees and can be reconciled as follows:

| ($thousands) | December 31, 2022 | December 31, 2021 | December 31, 2020
| Cash and cash equivalents | 191,387 | 594,069 | 141,447
| Current portion of total debt and lease liabilities | (170,149) | (14,617) | (116,942)
| Debt and lease liabilities | (27,179) | (16,386) | (86,106)
|  | (197,328) | (31,003) | (203,048)
| Deferred financing fees (netted in above) | (4,926) | — | (1,622)
|  | (202,254) | (31,003) | (204,670)
| Net (debt) cash | (10,867) | 563,066 | (63,223)

Adjusted Operating Cash Flow and Adjusted Operating Cash Flow per Share
Adjusted operating cash flow per share is a performance measure used by the Company to assess its ability to generate
cash from its operations. Adjusted operating cash flow is defined as cash provided by operating activities, excluding changes
in non-cash working capital items. The Company believes adjusted operating cash flow per share is a relevant measure to
some investors, as it removes the impact of working capital, which can experience variability period-to-period. Adjusted
operating cash flow per share can be reconciled to the Company's cash provided by operating activities as follows:

|  | Year ended December 31,
| ($thousands, except share and per share amounts) | 2022 | 2021 | 2020
| Cash provided by operating activities | 876,889 | 1,484,954 | 565,888
| Changes in non-cash working capital items | 116,056 | 2,136 | 78,714
| Adjusted operating cash flow | 992,945 | 1,487,090 | 644,602
| Basic weighted average number of shares outstanding | 762,518,753 | 736,789,666 | 734,074,514
| Adjusted operating cash flow per share | 1.30 | 2.02 | 0.88

|  | Three months ended December 31,
| ($thousands, except share and per share amounts) | 2022 | 2021
| Cash provided by operating activities | 156,890 | 384,177
| Changes in non-cash working capital items | 132,167 | 97,326
| Adjusted operating cash flow | 289,057 | 481,503
| Basic weighted average number of shares outstanding | 770,804,446 | 735,233,287
| Adjusted operating cash flow per share | 0.38 | 0.65

28
Free Cash Flow from Operations and Free Cash Flow
The Company believes free cash flow from operations and free cash flow are relevant measures for investors. Free cash
flow from operations is indicative of the Company’s ability to generate cash from operations, after consideration of
required sustaining capital expenditures necessary to maintain operations. Free cash flow is a relevant measure for some
investors, as it is indicative of the Company’s available cash generated.
Free cash flow from operations is defined as cash flow provided by operating activities, excluding exploration and project
investigation costs and less sustaining capital expenditures. Free cash flow is defined as free cash flow from operations less
expansionary capex and exploration and project investigation costs.
The Company has redefined free cash flow so that it encompasses all capital expenditures, including both sustaining and
expansionary, to more fully represent available cash generation.

|  | Year ended December 31,
| ($thousands) | 2022 | 2021 | 2020
| Cash provided by operating activities | 876,889 | 1,484,954 | 565,888
| Sustaining capital expenditures | (639,831) | (475,373) | (366,501)
| General exploration and business development | 144,353 | 44,938 | 44,212
| Free cash flow from operations | 381,411 | 1,054,519 | 243,599
| General exploration and business development | (144,353) | (44,938) | (44,212)
| Expansionary capital expenditures | (202,993) | (56,388) | (63,440)
| Free cash flow | 34,065 | 953,193 | 135,947

|  | Three months ended December 31,
| ($thousands) | 2022 | 2021
| Cash provided by operating activities | 156,890 | 384,177
| General exploration and business development | 12,094 | 8,628
| Sustaining capital expenditures | (204,686) | (136,560)
| Free cash flow from operations | (35,702) | 256,245
| General exploration and business development | (12,094) | (8,628)
| Expansionary capital expenditures | (76,485) | (17,358)
| Free cash flow | (124,281) | 230,259

Adjusted EBITDA, Adjusted Earnings and Adjusted EPS
Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), adjusted earnings and
adjusted EPS are non-GAAP measures. These measures are presented to provide additional information to investors and
other stakeholders on the Company’s underlying operational performance. The Company believes certain investors find this
information useful to evaluate the Company’s ability to generate cash flow from the Company’s core operations. Certain
items have been excluded from adjusted EBITDA and adjusted earnings such as unrealized foreign exchange and revaluation
gains and losses, impairment charges and reversals, gain or loss on debt settlement, interest on tax refunds and
assessments, litigations, settlements and other items that do not represent the Company’s current and on-going operations
and are not necessarily indicative of future operating results.
Adjusted EBITDA can be reconciled to the Company's Consolidated Statement of Earnings as follows:

|  | Year ended December 31,
| ($thousands) | 2022 | 2021 | 2020
| Net earnings | 463,533 | 879,301 | 189,057
| Add back: |  |  |
| Depreciation, depletion and amortization | 554,750 | 522,764 | 447,474
| Finance income and costs | 64,185 | 41,387 | 46,624
| Income taxes | 134,628 | 365,686 | 152,421
|  | 1,217,096 | 1,809,138 | 835,576
| Unrealized foreign exchange | 21,164 | 27,648 | (12,582)
| Unrealized (gain) loss of derivative asset and liability | (58,691) | 3,836 | 21,812
| Income from investment in associates | (3,297) | (24,895) | (3,302)
| Gain on disposal of subsidiary | (16,828) | — | —
| Sinkhole costs | 63,271 | — | —
| Ore stockpile inventory write-down | 62,546 | 65,025 | —
| Business interruption insurance settlement | — | (16,000) | —
| Project standby and suspension costs | — | — | 10,043
| Labour action costs | — | — | 5,133
| Other | 7,245 | 4,664 | 189
| Total adjustments - EBITDA | 75,410 | 60,278 | 21,293
| Adjusted EBITDA | 1,292,506 | 1,869,416 | 856,869

|  | Three months ended December 31,
| ($thousands) | 2022 | 2021
| Net earnings | 145,295 | 266,070
| Add back: |  |
| Depreciation, depletion and amortization | 142,710 | 145,367
| Finance income and costs | 16,664 | 11,070
| Income taxes | (2,347) | 127,495
|  | 302,322 | 550,002
| Unrealized foreign exchange | (3,836) | 24,121
| Unrealized (gain) loss of derivative asset and liability | (59,681) | 4,581
| Income from investment in associates | — | (2,661)
| Sinkhole costs | 55,482 | —
| Ore stockpile inventory write-down | 62,546 | 65,025
| Business interruption insurance settlement | — | (16,000)
| Other | (3,117) | (2,114)
| Total adjustments - EBITDA | 51,394 | 72,952
| Adjusted EBITDA | 353,716 | 622,954

30
Adjusted earnings and adjusted EPS can be reconciled to the Company's Consolidated Statement of Earnings as follows:

|  | Year ended December 31,
| ($thousands, except share and per share amounts) | 2022 | 2021 | 2020
| Net earnings attributable to Lundin Mining shareholders | 426,851 | 780,348 | 168,798
| Add back: |  |  |
| Total adjustments - EBITDA | 75,410 | 60,278 | 21,293
| Tax effect on adjustments | (797) | (21,817) | 11,886
| Deferred tax arising from foreign exchange translation | (20,733) | 1,730 | 39,684
| Tax asset revaluations | — | — | 5,675
| Prior year tax refund and interest | — | — | (19,161)
| Other | 2,026 | 64 | (2,934)
| Total adjustments | 55,906 | 40,255 | 56,443
| Adjusted earnings | 482,757 | 820,603 | 225,241
| Basic weighted average number of shares outstanding | 762,518,753 | 736,789,666 | 734,074,514
| Net earnings attributable to Lundin Mining shareholders | 0.56 | 1.06 | 0.23
| Total adjustments | 0.07 | 0.05 | 0.08
| Adjusted EPS | 0.63 | 1.11 | 0.31

|  | Three months ended December 31,
| ($thousands, except share and per share amounts) | 2022 | 2021
| Net earnings attributable to Lundin Mining shareholders | 145,562 | 228,780
| Add back: |  |
| Total adjustments - EBITDA | 51,394 | 72,952
| Tax effect on adjustments | 8,214 | (19,088)
| Deferred tax arising from foreign exchange translation | (14,469) | (1,481)
| Other | 829 | 368
| Total adjustments | 45,967 | 52,751
| Adjusted earnings | 191,529 | 281,531
| Basic weighted average number of shares outstanding | 770,804,446 | 735,233,287
| Net earnings attributable to Lundin Mining shareholders | 0.19 | 0.31
| Total adjustments | 0.06 | 0.07
| Adjusted EPS | 0.25 | 0.38

Realized Price per Pound
Realized price per pound and price per ounce are non-GAAP ratios that are calculated using the non-GAAP financial
measures of current period sales and prior period adjustments. Realized prices exclude the effects of the stream cash
effects as well as TC/RCs. Management believes that measuring these prices enables investors to better understand
performance based on the realized metal sales in the current and prior periods.
Capital Expenditures
Identifying capital expenditures, on a cash basis, using a sustaining or expansionary classification provides investors with a
better understanding of costs required to maintain existing operations, and costs required for future growth of existing or
new assets.
•Sustaining capital expenditures – Expenditures which maintain existing operations and sustain production levels.
•Expansionary capital expenditures – Expenditures which increase current or future production capacity, cash flow or
earnings potential.
Where an expenditure both maintains and expands current operations, classification would be based on the primary
decision for which the expenditure is being made. Expansionary capital expenditures are reported excluding capitalized
interest and therefore is a non-GAAP measure. Sustaining capital expenditure is a supplementary financial measure.
Cash Cost per Pound
Copper, zinc and nickel cash costs per pound are key performance measures that management uses to monitor
performance. Management uses these statistics to assess how well the Company’s producing mines are performing and to
assess overall efficiency and effectiveness of the mining operations. Cash cost is a non-GAAP measure and, although it is
calculated according to accepted industry practice, the Company’s disclosed cash costs may not be directly comparable to
other base metal producers.
•Cash cost per pound, gross – Total cash costs directly attributable to mining operations, excluding any allocation of
upfront streaming proceeds or capital expenditures for deferred stripping, are divided by the sales volume of the
primary metal to arrive at gross cash cost per pound. As this measure is not impacted by fluctuations in sales of by-
product metals, it is generally more consistent across periods.
•Cash cost per pound, net of by-products – Credits for by-products sales are deducted from total cash costs directly
attributable to mining operations. By-product revenue is adjusted for the terms of streaming agreements, but excludes
any deferred revenue from the allocation of upfront cash received. The net cash costs are divided by the sales volume
of the primary metal to arrive at net cash cost per pound. The inclusion of by-product credits provides a broader
economic measurement, incorporating the benefit of other metals extracted in the production of the primary metal.
All-in Sustaining Cost (“AISC”) per Pound
AISC per pound is an extension of the cash cost per pound measure discussed above and is also a key performance measure
that management uses to monitor performance. Management uses this measure to analyze margins achieved on existing
assets while sustaining and maintaining production at current levels. Expansionary capital and certain exploration costs are
excluded from this definition as these are costs typically incurred to extend mine life or materially increase the productive
capacity of existing assets, or for new operations. Corporate general and administrative expenses have also been excluded
from the all-in sustaining cost measure, as any attribution of these costs to an operating site would not necessarily be
reflective of costs directly attributable to the administration of the site.
32
Cash and All-in Sustaining Costs can be reconciled to the Company's production costs as follows:

| Three months ended December 31, 2022
| Operations | Candelaria | Chapada | Eagle | Neves-Corvo | Zinkgruvan |
| ($000s, unless otherwise noted) | (Cu) | (Cu) | (Ni) | (Cu) | (Zn) | Total
| Sales volumes (Contained metal in concentrate): |  |  |  |  |  |
| Tonnes | 33,561 | 12,037 | 3,239 | 6,351 | 17,635 |
| Pounds (000s) | 73,990 | 26,537 | 7,141 | 14,001 | 38,878 |
| Production costs |  |  |  |  |  | 450,927
| Less: Royalties and other |  |  |  |  |  | (15,664)
|  |  |  |  |  |  | 435,263
| Deduct: By-product credits |  |  |  |  |  | (168,620)
| Add: Treatment and refining charges |  |  |  |  |  | 33,897
| Cash cost | 186,628 | 51,782 | 17,169 | 32,462 | 12,499 | 300,540
| Cash cost per pound ($/lb) | 2.52 | 1.95 | 2.40 | 2.32 | 0.32 |
| Add: Sustaining capital expenditure | 117,174 | 41,299 | 5,968 | 22,086 | 16,607 |
| Royalties | — | 3,137 | 9,152 | 3,185 | — |
| Reclamation and other closure accretion and depreciation | 1,999 | 1,855 | 4,403 | 481 | 902 |
| Leases and other | 4,360 | 932 | 638 | 835 | 118 |
| All-in sustaining cost | 310,161 | 99,005 | 37,330 | 59,049 | 30,126 |
| AISC per pound ($/lb) | 4.19 | 3.73 | 5.23 | 4.22 | 0.77 |
| Three months ended December 31, 2021
| Operations | Candelaria | Chapada | Eagle | Neves-Corvo | Zinkgruvan |
| ($000s, unless otherwise noted) | (Cu) | (Cu) | (Ni) | (Cu) | (Zn) | Total
| Sales volumes (Contained metal in concentrate): |  |  |  |  |  |
| Tonnes | 43,417 | 13,628 | 3,390 | 10,668 | 18,005 |
| Pounds (000s) | 95,718 | 30,044 | 7,474 | 23,519 | 39,694 |
| Production costs |  |  |  |  |  | 375,007
| Less: Royalties and other |  |  |  |  |  | (15,192)
|  |  |  |  |  |  | 359,815
| Deduct: By-product credits |  |  |  |  |  | (180,394)
| Add: Treatment and refining charges |  |  |  |  |  | 35,963
| Cash cost | 125,630 | 32,255 | (1,623) | 36,065 | 23,057 | 215,384
| Cash cost per pound ($/lb) | 1.31 | 1.07 | (0.22) | 1.53 | 0.58 |
| Add: Sustaining capital expenditure | 85,747 | 14,419 | 3,865 | 19,204 | 13,013 |
| Royalties | — | 4,061 | 6,307 | 4,280 | — |
| Reclamation and other closure accretion and depreciation | 1,961 | 859 | 1,841 | 528 | 993 |
| Leases and other | 1,867 | 980 | 304 | 734 | 275 |
| All-in sustaining cost | 215,205 | 52,574 | 10,694 | 60,811 | 37,338 |
| AISC per pound ($/lb) | 2.25 | 1.75 | 1.43 | 2.59 | 0.94 |

| Twelve months ended December 31, 2022
| Operations | Candelaria | Chapada | Eagle | Neves-Corvo | Zinkgruvan |
| ($000s, unless otherwise noted) | (Cu) | (Cu) | (Ni) | (Cu) | (Zn) | Total
| Sales volumes (Contained metal in concentrate): |  |  |  |  |  |
| Tonnes | 147,251 | 45,563 | 14,427 | 31,592 | 65,684 |
| Pounds (000s) | 324,633 | 100,449 | 31,806 | 69,648 | 144,808 |
| Production costs |  |  |  |  |  | 1,661,358
| Less: Royalties and other |  |  |  |  |  | (53,785)
|  |  |  |  |  |  | 1,607,573
| Deduct: By-product credits |  |  |  |  |  | (656,534)
| Add: Treatment and refining charges |  |  |  |  |  | 124,841
| Cash cost | 637,486 | 209,238 | 25,168 | 158,351 | 45,637 | 1,075,880
| Cash cost per pound ($/lb) | 1.96 | 2.08 | 0.79 | 2.27 | 0.32 |
| Add: Sustaining capital expenditure | 389,731 | 104,711 | 16,413 | 71,222 | 48,144 |
| Royalties | — | 12,298 | 33,281 | 4,169 | — |
| Reclamation and other closure accretion and depreciation | 8,001 | 7,388 | 18,512 | 1,562 | 3,937 |
| Leases and other | 11,313 | 3,988 | 2,404 | 1,404 | 665 |
| All-in sustaining cost | 1,046,531 | 337,623 | 95,778 | 236,708 | 98,383 |
| AISC per pound ($/lb) | 3.22 | 3.36 | 3.01 | 3.40 | 0.68 |
| ($000s, unless otherwise noted) | 2023 Guidance |
| Cash cost | 599,800 | 263,500 | 46,100 | 180,400 | 90,100 |
| Cash cost per pound($/lb) | 1.80 - 1.95 | 2.55 - 2.75 | 1.50 - 1.65 | 2.10 - 2.30 | 0.60 - 0.65 |
| Twelve months ended December 31, 2021
| Operations | Candelaria | Chapada | Eagle | Neves-Corvo | Zinkgruvan |
| ($000s, unless otherwise noted) | (Cu) | (Cu) | (Ni) | (Cu) | (Zn) | Total
| Sales volumes (Contained metal in concentrate): |  |  |  |  |  |
| Tonnes | 148,213 | 47,123 | 15,012 | 36,618 | 64,056 |
| Pounds (000s) | 326,753 | 103,888 | 33,096 | 80,729 | 141,219 |
| Production costs |  |  |  |  |  | 1,371,253
| Less: Royalties and other |  |  |  |  |  | (57,887)
|  |  |  |  |  |  | 1,313,366
| Deduct: By-product credits |  |  |  |  |  | (646,950)
| Add: Treatment and refining charges |  |  |  |  |  | 122,330
| Cash cost | 494,213 | 108,782 | (40,883) | 152,416 | 74,218 | 788,746
| Cash cost per pound ($/lb) | 1.51 | 1.05 | (1.24) | 1.89 | 0.53 |
| Add: Sustaining capital expenditure | 312,388 | 52,275 | 16,279 | 52,552 | 41,325 |
| Royalties | — | 13,858 | 28,241 | 9,856 | — |
| Reclamation and other closure accretion and depreciation | 8,552 | 3,443 | 8,138 | 1,434 | 4,200 |
| Leases and other | 6,753 | 3,456 | 1,772 | 4,049 | 1,370 |
| All-in sustaining cost | 821,906 | 181,814 | 13,547 | 220,307 | 121,113 |
| AISC per pound ($/lb) | 2.52 | 1.75 | 0.41 | 2.73 | 0.86 |

34
Managing Risks
Risks and Uncertainties
The Company’s business activities are subject to a variety and wide range of inherent risks and uncertainties. Any of these
risks could have an adverse effect on the Company, its business and prospects, and could cause actual outcomes and results
to differ materially from those described in forward-looking statements relating to the Company.
For additional discussion on Lundin Mining’s risks, refer to the “Risks and Uncertainties” section of the Company’s Annual
Information Form (“AIF”) for the year ended December 31, 2022 and the “Cautionary Statement on Forward-Looking
Information” of this MD&A.
Management’s Report on Internal Controls
Disclosure controls and procedures (“DCP”)
DCP have been designed to provide reasonable assurance that all material information related to the Company is identified
and communicated on a timely basis. Management of the Company, under the supervision of the Chief Executive Officer
and the Chief Financial Officer, is responsible for the design and operation of DCP. Management has evaluated the
effectiveness of the Company’s DCP and has concluded that they were effective as at December 31, 2022.
Internal control over financial reporting (“ICFR”)
The Company’s ICFR is designed to provide reasonable assurance regarding the reliability of financial reporting and
preparation of financial statements for external purposes in accordance with IFRS. However, due to inherent limitations
ICFR may not prevent or detect all misstatements and fraud. Management will continue to monitor the effectiveness of its
ICFR and may make modifications from time to time as considered necessary.
Control Framework
Management assesses the effectiveness of the Company’s ICFR using the Internal Control – Integrated Framework (2013
Framework) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Management
conducted an evaluation of the effectiveness of ICFR and concluded that it was effective as at December 31, 2022.
Changes in ICFR
There have been no changes in the Company’s ICFR during the three months ended December 31, 2022 that have
materially affected, or are reasonably likely to materially affect, the Company’s financial reporting.
Outstanding Share Data
As at February 22, 2023, the Company has 770,988,424 common shares issued and outstanding, and 6,646,168 stock
options and 1,311,556 share units outstanding under the Company's plans.
Other Information
Additional information regarding the Company is included in the Company’s AIF which is filed with the Canadian securities
regulators. A copy of the Company’s AIF can be obtained on SEDAR (www.sedar.com) or on the Company’s website
(www.lundinmining.com).
Consolidated Financial Statements of
Lundin Mining Corporation
December 31, 2022
Management’s Report
The accompanying consolidated financial statements of Lundin Mining Corporation ("Lundin Mining" or the “Company”)
and other information contained in the management’s discussion and analysis are the responsibility of management and
have been approved by the Board of Directors. The consolidated financial statements have been prepared by management
in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards
Board (“IASB”) as outlined in Part 1 of the Handbook of the Chartered Professional Accountants (“CPA”) of Canada, and
include some amounts that are based on management’s estimates and judgment.
The Board of Directors carries out its responsibility for the consolidated financial statements principally through its Audit
Committee, which is comprised solely of independent directors. The Audit Committee reviews the Company’s annual
consolidated financial statements and recommends its approval to the Board of Directors. The Company’s auditors have full
access to the Audit Committee, with and without management being present. These consolidated financial statements have
been audited by PricewaterhouseCoopers LLP, Chartered Professional Accountants, Licensed Public Accountants.
(Signed) Peter Rockandel(Signed) Teitur Poulsen
Chief Executive Officer Senior Vice President and Chief Financial Officer
Toronto, Ontario, Canada
February 22, 2023
Independent auditor’s report
To the Shareholders of Lundin Mining Corporation

Our opinion

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the
financial position of Lundin Mining Corporation and its subsidiaries (together, the Company) as at December 31,
2022 and 2021, and its financial performance and its cash flows for the years then ended in accordance with
International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS).
What we have audited
The Company’s consolidated financial statements comprise:
•the consolidated balance sheets as at December 31, 2022 and 2021;
•the consolidated statements of earnings for the years then ended;
•the consolidated statements of comprehensive income for the years then ended;
•the consolidated statements of changes in equity for the years then ended;
•the consolidated statements of cash flows for the years then ended; and
•the notes to the consolidated financial statements, which include significant accounting policies and other
explanatory information.

Basis for opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities
under those standards are further described in the Auditor’s responsibilities for the audit of the consolidated
financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Independence
We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of
the consolidated financial statements in Canada. We have fulfilled our other ethical responsibilities in accordance
with these requirements.
PricewaterhouseCoopers LLP
PwC Tower, 18 York Street, Suite 2600, Toronto, Ontario, Canada M5J 0B2
T: +1 416 863 1133, F: +1 416 365 8215
“PwC” refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the consolidated financial statements for the year ended December 31, 2022. These matters were addressed in the
context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters.

Key audit matter | How our audit addressed the key audit matter
Impairment assessments for goodwill and mineral properties, plant and equipment Refer to note 2 – Basis of presentation and summary of significant accounting policies, note 7 – Mineral properties, plant and equipment and note 9 – Goodwill to the consolidated financial statements. The Company’s total net carrying amount of goodwill and mineral properties, plant and equipment as at December 31, 2022 amounted to $237 million and $5,976 million, respectively. At the end of each reporting period, management assesses whether there is an indication that an asset or group of assets within a cash generating unit (CGU) may be impaired. When impairment indicators exist, management estimates the recoverable amount of the asset or CGU and compares it against the asset or CGU’s carrying amount. Also, a CGU to which goodwill has been allocated is tested for impairment at least annually. As at December 31, 2022, management identified indicators of impairment. As a result, management performed impairment assessments for all of the Company’s CGUs. The recoverable amounts of the CGUs were determined using the fair value less cost of disposal method which included using discounted cash flow projection models. Management used key assumptions in the discounted cash flow projection models which included forecasted | Our approach to addressing the matter included the following procedures, among others: ● Tested how management determined the recoverable amounts of the CGUs, which included the following as applicable: –Evaluated the appropriateness of the fair value less cost of disposal method and discounted cash flow projection models. –Evaluated the reasonability of the key assumptions such as forecasted commodity prices, foreign exchange rates and capital and production cost forecasts used by management in the discounted cash flow projection models by (i) comparing forecasted commodity prices and foreign exchange rates with external market and industry data; (ii) comparing capital and production cost forecasts to the current and past performance of the operating mines within these CGUs; and (iii) assessing whether these assumptions aligned with evidence obtained in other areas of the audit, as applicable. –Professionals with specialized skill and knowledge in the field of valuation assisted in assessing the reasonability of the discount rates and the external market information used to determine the component of the recoverable amounts relating to the fair value estimates for

Key audit matter | How our audit addressed the key audit matter
commodity prices, foreign exchange rates, capital and production cost forecasts, mineral reserve and resource quantities and discount rates. Another component of the recoverable amounts is the fair value estimates for mineral reserve and resource quantities not captured in the discounted cash flow projection models, which are valued using external market information. Management’s estimates of the mineral reserve and resource quantities are prepared by or under the supervision of and verified by Qualified Persons as defined in National Instrument 43-101 of the Canadian Securities Administrators (management’s experts). We considered this a key audit matter due to the subjectivity and complexity in performing procedures to test key assumptions in determining the recoverable amounts of the CGUs, which involved judgment from management. Professionals with specialized skill and knowledge in the field of valuation assisted in performing our procedures. | mineral reserve and resources quantities not captured in the discounted cash flow projection models. –The work of management’s experts was used in performing the procedures to evaluate the reasonableness of the mineral reserve and resource quantities. As a basis for using this work, the competence, capabilities and objectivity of management’s experts was evaluated, the work performed was understood and the appropriateness of the work as audit evidence was evaluated. The procedures performed also included evaluation of the methods and assumptions used by management’s experts and an evaluation of their findings.

Other information

Management is responsible for the other information. The other information comprises the Management’s
Discussion and Analysis.
Our opinion on the consolidated financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other
information identified above and, in doing so, consider whether the other information is materially inconsistent
with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be
materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of management and those charged with governance for the consolidated financial statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in
accordance with IFRS, and for such internal control as management determines is necessary to enable the
preparation of consolidated financial statements that are free from material misstatement, whether due to fraud
or error.
In preparing the consolidated financial statements, management is responsible for assessing the Company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or
has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Auditor’s responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with Canadian generally accepted auditing standards will always detect a material misstatement when
it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of
these consolidated financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:
•Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
•Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Company’s internal control.
•Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
•Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the
related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Company to cease to continue as a going concern.
•Evaluate the overall presentation, structure and content of the consolidated financial statements, including the
disclosures, and whether the consolidated financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
•Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Company to express an opinion on the consolidated financial statements. We are
responsible for the direction, supervision and performance of the group audit. We remain solely responsible
for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the consolidated financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
The engagement partner on the audit resulting in this independent auditor’s report is James Lusby.
/s/PricewaterhouseCoopers LLP
Chartered Professional Accountants, Licensed Public Accountants
Toronto, Ontario
February 22, 2023

LUNDIN MINING CORPORATION |  |  |
CONSOLIDATED BALANCE SHEETS | As at
(in thousands of US dollars) | December 31, 2022 |  | December 31, 2021
ASSETS |  |  |
Cash and cash equivalents (Note 4) | $191,387 |  | $594,069
Trade and other receivables (Note 5) | 576,178 |  | 602,674
Income taxes receivable | 72,402 |  | 85,642
Inventories (Note 6) | 296,710 |  | 227,383
Current portion of derivative assets (Note 23) | 43,521 |  | —
Other current assets | 38,571 |  | 16,817
Total current assets | 1,218,769 |  | 1,526,585
Restricted funds | 50,195 |  | 54,753
Long-term inventory (Note 6) | 641,877 |  | 719,599
Non-current portion of derivative assets (Note 23) | 25,111 |  | —
Other non-current assets | 19,655 |  | 14,933
Mineral properties, plant and equipment (Note 7) | 5,975,686 |  | 5,050,899
Investment in associate (Note 8) | 380 |  | 15,083
Deferred tax assets (Note 22) | 3,837 |  | 12,050
Goodwill (Note 9) | 237,294 |  | 243,005
| 6,954,035 |  | 6,110,322
Total assets | $8,172,804 |  | $7,636,907
LIABILITIES |  |  |
Trade and other payables (Note 10) | $612,965 |  | $413,629
Income taxes payable | 45,000 |  | 226,293
Current portion of derivative liabilities (Note 23) | 24,423 |  | 24,973
Current portion of debt and lease liabilities (Note 11) | 170,149 |  | 14,617
Current portion of deferred revenue (Note 12) | 74,061 |  | 76,202
Current portion of reclamation and other closure provisions (Note 13) | 23,550 |  | 31,829
Total current liabilities | 950,148 |  | 787,543
Non-current portion of derivative liabilities (Note 23) | 27,876 |  | 42,522
Debt and lease liabilities (Note 11) | 27,179 |  | 16,386
Deferred revenue (Note 12) | 580,045 |  | 617,265
Reclamation and other closure provisions (Note 13) | 422,298 |  | 414,226
Other long-term liabilities | 24,922 |  | 19,166
Provision for pension obligations | 5,613 |  | 8,149
Deferred tax liabilities (Note 22) | 709,602 |  | 738,917
| 1,797,535 |  | 1,856,631
Total liabilities | 2,747,683 |  | 2,644,174
SHAREHOLDERS' EQUITY |  |  |
Share capital (Note 14) | 4,555,125 |  | 4,199,756
Contributed surplus | 55,769 |  | 58,166
Accumulated other comprehensive loss | (342,287) |  | (249,929)
Retained earnings | 592,425 |  | 437,160
Equity attributable to Lundin Mining Corporation shareholders | 4,861,032 |  | 4,445,153
Non-controlling interests | 564,089 |  | 547,580
Total shareholders' equity | 5,425,121 |  | 4,992,733
Total liabilities and shareholders' equity | $8,172,804 |  | $7,636,907
Commitments and contingencies (Note 24) |  |  |
The accompanying notes are an integral part of these consolidated financial statements. |  |
APPROVED BY THE BOARD OF DIRECTORS |  |  |
(Signed) Adam I. Lundin - Director | (Signed) Dale C. Peniuk - Director

- 1 -

LUNDIN MINING CORPORATION |  |  |
CONSOLIDATED STATEMENTS OF EARNINGS |  |  |
For the years ended December 31, 2022 and 2021 |  |  |
(in thousands of US dollars, except for shares and per share amounts) |  |  |
| 2022 |  | 2021
Revenue (Note 16) | $3,041,228 |  | $3,328,765
Cost of goods sold |  |  |
Production costs (Note 17) | (1,661,358) |  | (1,371,253)
Depreciation, depletion and amortization | (554,750) |  | (522,764)
Inventory write-down (Note 6) | (62,546) |  | (65,025)
Gross profit | 762,574 |  | 1,369,723
General and administrative expenses | (53,879) |  | (52,196)
General exploration and business development (Note 19) | (144,353) |  | (44,938)
Finance income (Note 20) | 4,211 |  | 3,112
Finance costs (Note 20) | (68,396) |  | (44,499)
Income from equity investment in associate (Note 8) | 3,297 |  | 24,895
Other income (expense) (Note 21) | 94,707 |  | (11,110)
Earnings before income taxes | 598,161 |  | 1,244,987
Current tax expense (Note 22) | (149,978) |  | (273,638)
Deferred tax recovery (expense) (Note 22) | 15,350 |  | (92,048)
Net earnings | $463,533 |  | $879,301
Net earnings attributable to: |  |  |
Lundin Mining Corporation shareholders | $426,851 |  | $780,348
Non-controlling interests | 36,682 |  | 98,953
Net earnings | $463,533 |  | $879,301
Basic and diluted earnings per share attributable to Lundin Mining Corporation shareholders: | $0.56 |  | $1.06
Weighted average number of shares outstanding (Note 14(e)) |  |  |
Basic | 762,518,753 |  | 736,789,666
Diluted | 763,594,053 |  | 739,300,413
The accompanying notes are an integral part of these consolidated financial statements.

- 2 -

LUNDIN MINING CORPORATION |  |  |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |  |  |
For the years ended December 31, 2022 and 2021 |  |  |
(in thousands of US dollars) |  |  |
| 2022 |  | 2021
Net earnings | $463,533 |  | $879,301
Other comprehensive loss, net of taxes |  |  |
Item that will not be reclassified to net earnings: |  |  |
Remeasurements for post-employment benefit plans | (366) |  | 5,053
Item that may be reclassified subsequently to net earnings: |  |  |
Effects of foreign exchange | (88,388) |  | (92,945)
Item that was reclassified to net earnings: |  |  |
Cumulative translation adjustment (Note 21(d)) | (3,777) |  | 16,205
Other comprehensive loss | (92,531) |  | (71,687)
Total comprehensive income | $371,002 |  | $807,614
Comprehensive income attributable to: |  |  |
Lundin Mining Corporation shareholders | $334,493 |  | $707,634
Non-controlling interests | 36,509 |  | 99,980
Total comprehensive income | $371,002 |  | $807,614
The accompanying notes are an integral part of these consolidated financial statements.

- 3 -

LUNDIN MINING CORPORATION |  |  |  |
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY |  |  |
For the years ended December 31, 2022 and 2021
(in thousands of US dollars, except for shares) |  |  |
| Number of shares | Share capital | Contributed surplus | Accumulated other comprehensive loss | Retained earnings (deficit) | Non- controlling interests | Total
Balance, December 31, 2021 | 734,987,154 | $4,199,756 | $58,166 | $(249,929) | $437,160 | $547,580 | $4,992,733
Distributions (Note 15) | — | — | — | — | — | (20,000) | (20,000)
Josemaria acquisition (Note 3) | 40,031,936 | 369,175 | 13,436 | — | — | — | 382,611
Exercise of share-based awards | 6,488,941 | 49,813 | (23,636) | — | — | — | 26,177
Share-based compensation | — | — | 7,803 | — | — | — | 7,803
Dividends declared (Note 14(f)) | — | — | — | — | (275,795) | — | (275,795)
Shares purchased (Note 14(g)) | (10,761,500) | (63,619) | — | — | 4,209 | — | (59,410)
Net earnings | — | — | — | — | 426,851 | 36,682 | 463,533
Other comprehensive loss | — | — | — | (92,358) | — | (173) | (92,531)
Total comprehensive (loss) income | — | — | — | (92,358) | 426,851 | 36,509 | 371,002
Balance, December 31, 2022 | 770,746,531 | $4,555,125 | $55,769 | $(342,287) | $592,425 | $564,089 | $5,425,121
Balance, December 31, 2020 | 736,039,350 | $4,201,277 | $52,098 | $(177,215) | $(98,231) | $518,600 | $4,496,529
Distributions declared | — | — | — | — | — | (71,000) | (71,000)
Exercise of share-based awards | 3,411,404 | 24,048 | (8,773) | — | — | — | 15,275
Share-based compensation | — | — | 14,841 | — | — | — | 14,841
Dividends declared | — | — | — | — | (229,816) | — | (229,816)
Shares purchased | (4,463,600) | (25,569) | — | — | (15,141) | — | (40,710)
Net earnings | — | — | — | — | 780,348 | 98,953 | 879,301
Other comprehensive (loss) income | — | — | — | (72,714) | — | 1,027 | (71,687)
Total comprehensive (loss) income | — | — | — | (72,714) | 780,348 | 99,980 | 807,614
Balance, December 31, 2021 | 734,987,154 | $4,199,756 | $58,166 | $(249,929) | $437,160 | $547,580 | $4,992,733
The accompanying notes are an integral part of these consolidated financial statements. |  |  |  |

- 4 -

LUNDIN MINING CORPORATION |  |  |
CONSOLIDATED STATEMENTS OF CASH FLOWS |  |  |
For the years ended December 31, 2022 and 2021 |  |  |
(in thousands of US dollars) |  |  |
Cash provided by (used in) | 2022 |  | 2021
Operating activities |  |  |
Net earnings | $463,533 |  | $879,301
Items not involving cash and other adjustments |  |  |
Depreciation, depletion and amortization | 554,750 |  | 522,764
Share-based compensation | 7,803 |  | 14,841
Foreign exchange loss | 21,164 |  | 27,648
Finance costs, net (Note 20) | 64,185 |  | 41,387
Recognition of deferred revenue | (73,605) |  | (83,327)
Deferred tax (recovery) expense | (15,350) |  | 92,048
Income from equity investment in associate (Note 8) | (3,297) |  | (24,895)
Ore stockpile inventory write-down (Note 6) | 62,546 |  | 65,025
Revaluation of foreign currency derivatives (Note 23) | (68,951) |  | —
Other | (12,311) |  | 32,251
Reclamation payments (Note 13) | (15,903) |  | (9,175)
Other payments | (1,876) |  | (2,191)
Changes in long-term inventory | 10,257 |  | (68,587)
Changes in non-cash working capital items (Note 29) | (116,056) |  | (2,136)
| 876,889 |  | 1,484,954
Investing activities |  |  |
Investment in mineral properties, plant and equipment | (842,903) |  | (532,097)
Acquisition of Josemaria, net of cash acquired (Note 3) | (126,381) |  | —
Cash received from disposal of subsidiary (Note 21) | 16,828 |  | —
Payment of Chapada derivative liability (Note 23) | (25,000) |  | (25,000)
Josemaria bridge loan (Note 3) | (54,100) |  | —
Distributions from associate, net (Note 8) | 18,000 |  | 32,154
Other | 189 |  | 4,930
| (1,013,367) |  | (520,013)
Financing activities |  |  |
Proceeds from debt (Note 11) | 282,938 |  | 33,171
Interest paid | (9,765) |  | (7,299)
Principal payments of lease liabilities | (20,152) |  | (17,875)
Principal repayments of debt (Note 11) | (113,824) |  | (195,813)
Payment of Josemaria debentures (Note 3 and 11) | (47,000) |  | —
Dividends paid to shareholders | (275,448) |  | (227,392)
Shares purchased (Note 14) | (59,410) |  | (40,710)
Proceeds from common shares issued | 26,177 |  | 15,275
Distributions paid to non-controlling interests | (35,000) |  | (56,000)
Proceeds from settlement of foreign currency derivatives (Note 23) | 4,784 |  | —
Other | (4,926) |  | —
| (251,626) |  | (496,643)
Effect of foreign exchange on cash balances | (14,578) |  | (15,676)
(Decrease) increase in cash and cash equivalents during the year | (402,682) |  | 452,622
Cash and cash equivalents, beginning of year | 594,069 |  | 141,447
Cash and cash equivalents, end of year | $191,387 |  | $594,069
Supplemental cash flow information (Note 29) |  |  |
The accompanying notes are an integral part of these consolidated financial statements. |  |

- 5 -
1.NATURE OF OPERATIONS
Lundin Mining Corporation is a diversified Canadian base metals mining company primarily producing copper, zinc,
gold and nickel. The Company owns 80% of the Candelaria and Ojos del Salado mining complex ("Candelaria") located
in Chile. The Company’s wholly-owned operating assets include the Chapada mine located in Brazil, the Eagle mine
located in the United States of America (“USA”), the Neves-Corvo mine located in Portugal, and the Zinkgruvan mine
located in Sweden. In addition, the Company owns the large scale copper-gold Josemaria project ("Josemaria Project"),
located in Argentina (Note 3).
The Company’s common shares are listed on the Toronto Stock Exchange (“TSX”) in Canada and the Nasdaq Stockholm
Exchange in Sweden. The Company is incorporated under the Canada Business Corporations Act. The Company is
domiciled in Canada and its registered address is 150 King Street West, Toronto, Ontario, Canada.
2. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(i)Basis of presentation and measurement
The consolidated financial statements have been prepared in accordance with International Financial Reporting
Standards as issued by the International Accounting Standards Board and Interpretations of the International
Financial Reporting Interpretations Committee (“IFRIC”) which the Canadian Accounting Standards Board has
approved for incorporation into Part 1 of the CPA Canada Handbook – Accounting
The consolidated financial statements have been prepared on a historical cost basis except for certain financial
instruments which have been measured at fair value.
The Company's presentation currency is United States (“US”) dollars. Reference herein of $ or USD is to US
dollars, C$ or CAD is to Canadian dollars, SEK is to Swedish krona, € refers to the Euro, CLP refers to the Chilean
peso, BRL refers to the Brazilian real, and ARS refers to the Argentine peso.
Balance sheet items are classified as current if receipt or payment is due within twelve months. Otherwise, they
are presented as non-current.
These consolidated financial statements were approved by the Board of Directors of the Company for issue on
February 22, 2023.
(ii)Significant accounting policies
The Company has consistently applied the accounting policies to all the years presented. The significant
accounting policies applied in these consolidated financial statements are set out below.
(a)Basis of consolidation
The financial statements consist of the consolidation of the financial statements of the Company and its
subsidiaries.
Subsidiaries are entities over which the Company has control, including the power to govern the financial
and operating policies in order to obtain benefits from their activities. The existence and effect of potential
voting rights that are currently exercisable or convertible are considered when assessing whether the
Company controls another entity. Subsidiaries are fully consolidated from the date on which control is
obtained by the Company and are de-consolidated from the date that control ceases.
Where necessary, adjustments are made to the results of the subsidiaries and associates to bring their
accounting policies in line with those used by the Company. Intra-group transactions, balances, income and
expenses are eliminated on consolidation.

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 6 -
For non wholly-owned controlled subsidiaries, the net assets attributable to outside equity shareholders are
presented as non-controlling interests in the equity section of the consolidated balance sheet. Net earnings
for the period that are attributable to non-controlling interests are calculated based on the ownership of
the minority shareholders in the subsidiary.
(b)Investments in associate s
An associate is an entity over which the Company has significant influence, but not control, and is neither a
subsidiary nor an interest in a joint venture.
Investments in which the Company has the ability to exercise significant influence are accounted for by the
equity method. Under this method, the investment is initially recorded at cost and adjusted thereafter to
record the Company’s share of post-acquisition earnings or loss of the investee as if the investee had been
consolidated. The carrying value of the investment is also increased or decreased to reflect the Company’s
share of capital transactions, including amounts recognized in other comprehensive income (“OCI”), and for
accounting changes that relate to periods subsequent to the date of acquisition.
(c)Translation of foreign currencies
The functional currency of each entity within the Company is the currency of the primary economic
environment in which it operates. The Company’s presentation currency is US dollars.
Transactions denominated in currencies other than the functional currency are recorded using the exchange
rates prevailing on the dates of the transactions. At each balance sheet date, monetary items denominated
in foreign currencies are translated at the rates prevailing on the balance sheet date. Non-monetary items
that are measured at historical cost in a foreign currency are translated using the exchange rate at the date
of the transaction. Non-monetary items measured at fair value in a foreign currency are translated at the
rates prevailing on the date when the fair value was determined.
Exchange differences arising on the settlement of monetary items, and on the translation of monetary
items, are recognized in the consolidated statement of earnings in the period in which they arise. Exchange
differences arising on the translation of non-monetary items carried at fair value are included in the
consolidated statement of earnings. However, exchange differences arising on the translation of certain
non-monetary items are recognized as a separate component of equity.
On disposal of a foreign operation, the historical, cumulative amount of exchange differences recognized as
a separate component of equity is reclassified and recognized in the consolidated statement of earnings.
For the purpose of presenting the consolidated financial statements, the assets and liabilities of the
Company’s foreign operations are translated into US dollars, which is the presentation currency of the
group, at the rate of exchange prevailing at the end of the reporting period. Income and expenses are
translated at the average exchange rates for the period where these approximate the rates on the dates of
transactions.
Foreign currency translation differences on deferred foreign tax liabilities and assets are reported in
deferred tax expense/recovery in the consolidated statement of earnings.
(d)Cash and cash equivalents
Cash and cash equivalents comprise cash on deposit with banks and highly liquid short-term interest-
bearing investments with a term to maturity at the date of purchase of 90 days or less which are subject to
an insignificant risk of change in value.

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 7 -
(e)Restricted funds
Restricted funds include reclamation funds and cash on deposit that have been pledged for reclamation and
closure activities which are not available for immediate disbursement.
(f)Inventories
Ore and concentrate stockpiles are valued at the lower of production cost and net realizable value (“NRV”).
Production costs include costs of materials and labour related directly to mining and processing activities,
including production phase stripping costs, depreciation and amortization of mineral property, plant and
equipment directly involved in the related mining and production process, amortization of any stripping
costs previously capitalized and directly attributable overhead costs.
Materials and supplies inventories are valued at the lower of average cost less allowances for obsolescence
and NRV.
If the carrying value of inventories exceeds NRV, a write-down is recognized. The write-down may be
reversed in a subsequent period if the circumstances which caused the write-down no longer exist.
(g)Mineral properti es
Mineral properties are carried at cost, less accumulated depletion and any accumulated impairment
charges. Expenditures of mineral properties include:
i.Acquisition costs which consist of payments for property rights and leases, including the
estimated fair value of exploration properties acquired as part of a business combination or the
acquisition of a group of assets.
ii.Exploration, evaluation and project investigation costs incurred on an area of interest once a
determination has been made that a property has economically recoverable Mineral Resources
and Mineral Reserves (“R&R”) and there is a reasonable expectation that costs can be
recovered by future exploitation or sale of the property. Exploration, evaluation and project
investigation expenditures made prior to a determination that a property has economically
recoverable R&R are expensed as incurred.
iii.Deferred stripping costs which represent the costs incurred to remove overburden and other
waste materials to access ore in an open pit mine. Stripping costs incurred prior to the
production phase of the mine are capitalized and included as part of the carrying value of the
mineral property. During the production phase, stripping costs which provide probable future
economic benefits, identifiable improved access to the ore body and which can be measured
reliably are capitalized to mineral properties. Capitalized stripping costs are amortized using a
unit-of-production basis over the Proven and Probable Mineral Reserve to which they relate.
iv.Development costs incurred in an area of interest, once management has determined the
technical feasibility and commercial viability of a project, the project presents an appropriate
rate of return on investment, and the Board of Directors has demonstrated commitment to
advance the project. When additional development expenditures are made on a property after
commencement of production, the expenditure is capitalized as mineral property when it is
probable that additional economic benefit will be derived from future operations. Development
costs are amortized using a unit-of-production basis over the Proven and Probable Mineral
Reserve to which they relate.
v.Interest and financing costs on debt or other liabilities, including interest expense on deferred
revenue, that are directly attributed to the acquisition, construction and development of a
qualifying asset. All other borrowing costs are expensed as incurred.

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 8 -
Incidental pre-production expenditures, if any, are recognized in the consolidated statement of earnings.
The Company recognizes in the consolidated statement of earnings any net proceeds received from the sale
of items produced while bringing an asset to the location and condition necessary for it to be capable of
operating in the manner intended by management.
(h)Plant and equipment
Plant and equipment are carried at cost less accumulated depreciation and any accumulated impairment
charges. For production plant and equipment, depreciation is recorded on a units-of-production basis.
Depreciation on all other plant and equipment is recorded on a straight-line basis over the estimated useful
life of the asset or over the estimated remaining life of the mine, if shorter. Residual values and useful lives
are reviewed annually. Gains and losses on disposals are calculated as proceeds received less the carrying
amount and are recognized in the consolidated statement of earnings.
Useful lives are as follows:

| Number of years
Buildings | 8-20
Plant and machinery | 3-20
Equipment | 3-8

(i)Intangible assets
Separately acquired intangible assets are initially measured at cost which comprises its purchase price and
any directly attributable costs of preparing the asset for its intended use. The Company depreciates
intangible assets with finite useful lives on a straight-line basis over the estimated useful life of the asset.
For intangibles with an indefinite useful life, no amortization is calculated.
(j)Impairment and impairment reversals
At the end of each reporting period, the Company assesses whether there is an indication that an asset or
group of assets within a cash generating unit (“CGU”) may be impaired. When impairment indicators exist,
the Company estimates the recoverable amount of the asset or CGU and compares it against the asset or
CGU’s carrying amount. The recoverable amount is the higher of the fair value less cost of disposal
(“FVLCD”) and the asset or CGU’s value in use (“VIU”). If the carrying value exceeds the recoverable amount,
an impairment loss is recorded in the consolidated statement of earnings during the period. If either FVLCD
or VIU exceeds the asset or CGU’s carrying amount, the asset or CGU is not impaired, and the Company does
not estimate the other amount.
In assessing VIU, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to
the CGU for which the estimates of future cash flows have not been adjusted. The cash flows are based on
best estimates of expected future cash flows from the continued use of the asset or the CGU and its
eventual disposal.
FVLCD is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants, which is best evidenced if obtained from an active market or
binding sale agreement. Where neither exists, the fair value is based partly on a discounted cash flow
projections model. Costs of disposal, other than those that have been recognized as liabilities, are deducted
in measuring FVLCD.
Reversals of impairment are assessed at each reporting period where there is an indication that an
impairment loss recognized previously may no longer exist or has decreased. If an impairment reversal

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 9 -
indicator exists, the recoverable amount is calculated. If the recoverable amount exceeds the carrying
amount, the carrying value of the CGU is increased to the recoverable amount net of depreciation. The
increased carrying amount cannot exceed the carrying amount that would have been determined had no
impairment loss been recognized for the CGU in prior years. A reversal of an impairment loss is recognized
as a gain in the consolidated statement of earnings in the period it is determined.
(k)Business combinations and goodwill
Acquisitions of businesses are accounted for using the purchase method of accounting whereby all
identifiable assets and liabilities are recorded at their fair values as at the date of acquisition. Any excess
purchase price over the aggregate fair value of net assets is recorded as goodwill. Goodwill is identified and
allocated to CGUs, or groups of CGUs, that are expected to benefit from the synergies of the acquisition.
Goodwill is not amortized. Any excess of the aggregate fair value of net assets over the purchase price is
recognized in the consolidated statement of earnings.
A CGU to which goodwill has been allocated is tested for impairment at least annually or when events or
circumstances indicate that an assessment for impairment is required. For goodwill arising on an acquisition
in a financial year, the CGU to which the goodwill has been allocated is tested for impairment before the
end of that financial year.
When the recoverable amount of the CGU is less than the carrying amount of that CGU, the impairment loss
is allocated to reduce the carrying amount of any goodwill allocated to that CGU first, and then to the other
assets of that CGU on a pro-rata basis of the carrying amount of each asset in the CGU. Any impairment loss
for goodwill is recognized directly in the consolidated statement of earnings. An impairment loss for
goodwill is not reversed in subsequent periods.
On disposal of a subsidiary, the attributable amount of goodwill is included in the determination of the gain
or loss on disposal.
(l)Non-current assets held for sale and discontinued operations
Non-current assets are classified as assets held for sale when it is highly probable their value will be
recovered principally through a sale rather than through continuing use. For the sale to be highly probable,
management must be committed to and have initiated a plan to sell the assets; the assets must be available
for immediate sale in their present condition and the sale must be expected to qualify for recognition as a
completed sale within one year from the date of classification.
Assets classified as held for sale are carried at the lower of carrying amount and fair value less costs to sell.
A discontinued operation is a component of the Company that has been disposed of or is classified as held
for sale. A component comprises operations and cash flows that can be clearly distinguished from the rest
of the Company. To be classified as a discontinued operation, the component must either (i) represent a
major line of business or geographical area of operation; (ii) be part of a plan to dispose of a major line of
business; or (iii) be a subsidiary acquired with a view to resell.
(m)Leases
At inception of a contract, the Company assesses whether the contract is, or contains a lease. A contract is,
or contains a lease, if the contract conveys the right to control the use of an identified asset for a period of
time in exchange for consideration.
The Company has elected not to recognize right-of-use assets and lease liabilities for short-term leases that
have a lease term of 12 months or less, and leases of low-value assets. For these leases, the Company
recognizes the lease payments as an expense in the consolidated statement of earnings on a straight-line
basis over the term of the lease.

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 10 -
The Company recognizes a lease liability and a right-of-use asset at the lease commencement date.
The lease liability is initially measured as the present value of future lease payments discounted using the
interest rate implicit in the lease or, if that rate cannot be readily determined, each operation’s applicable
incremental borrowing rate. The incremental borrowing rate is the rate which the operation would have to
pay to borrow, over a similar term and with a similar security, the funds necessary to obtain an asset of
similar value to the right-of-use asset in a similar economic environment.
Lease payments included in the measurement of the lease liability comprise the following:
-fixed payments, including in-substance fixed payments, less any lease incentives receivable;
-variable lease payments that depend on an index or a rate, initially measured using the index or
rate as at the commencement date;
-amounts expected to be payable by the Company under residual value guarantees;
-the exercise price of a purchase option if the Company is reasonably certain to exercise that option;
and
-payments of penalties for terminating the lease, if the Company expects to exercise an option to
terminate the lease.
The lease liability is subsequently measured by:
-increasing the carrying amount to reflect interest on the lease liability;
-reducing the carrying amount to reflect lease payments made; and
-remeasuring the carrying amount to reflect any reassessment or lease modifications.
Variable lease payments that do not depend on an index or rate are not included in the measurement of the
lease liability.
The lease liability is remeasured when there is a change in future lease payments arising from a change in an
index or rate, if there is a change in the Company’s estimate of the amount expected to be payable under a
residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase,
extension or termination option.
Each lease payment is allocated between the lease liability and finance cost. The finance cost is recorded as
an expense in the consolidated statement of earnings over the lease period to produce a constant periodic
rate of interest on the remaining balance of the liability for each period.
The right-of-use asset is initially measured at cost, which comprises the following:
-the amount of the initial measurement of the lease liability;
-any lease payments made at or before the commencement date, less any lease incentives received;
-any initial direct costs incurred by the Company; and
-an estimate of costs to be incurred by the Company in dismantling and removing the underlying
asset, restoring the site on which it is located or restoring the underlying asset to the condition
required by the terms and conditions of the lease, unless those costs are incurred to produce
inventories.
The right-of-use asset is subsequently measured at cost, less any accumulated depreciation and any
accumulated impairment losses, and adjusted for any remeasurement of the lease liability. It is depreciated
in accordance with the Company’s accounting policy for plant and equipment, from the commencement
date to the earlier of the end of its useful life or the end of the lease term.
On the consolidated balance sheet, right-of-use assets and lease liabilities are reported in mineral
properties, plant and equipment and debt and lease liabilities, respectively.

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 11 -
(n)Provision for pension obligations
The Company’s Zinkgruvan mine has an unfunded defined benefit pension plan based on employee
pensionable remuneration and length of service. The cost of the defined benefit pension plan is determined
annually by independent actuaries. The actuarial valuation is based on the projected benefit method pro-
rated for service which incorporates management’s best estimate of future salary levels, retirement ages of
employees and other actuarial factors. Actuarial gains and losses are recorded in other comprehensive
income.
Payments to defined contribution plans are expensed when employees render service entitling them to the
contribution.
(o)Reclamation and other closure provisions
The Company incurs reclamation and other closure costs related to its mining properties such as facility
decommissioning and dismantling, end of mine life severance, site restoration and ongoing environmental
monitoring. These costs are a normal consequence of mining and are dependent on the requirements of the
Company’s legal and constructive obligations, as well as any other commitments made to stakeholders. The
majority of these expenditures will be incurred at the end of the life of mine and are dependent upon a
number of factors such as the life and nature of the asset, the operating license conditions and the
environment in which the mine operates.
The future obligations for mine closure activities are estimated by the Company using mine closure plans or
other similar studies which outline the activities to be undertaken to meet regulatory and internal
requirements. Since the obligations are dependent on the laws and regulations of the countries in which the
mines operate, they are regularly evaluated by management and external experts. Costs included in the
obligations encompass all reclamation and other closure activities expected to occur progressively over the
life of the operation at the time of closure and post-closure in connection with disturbances as at the
reporting date.
Obligations may change as a result of amendments in laws and regulations relating to environmental
protection and/or other legislation affecting resource companies. Included in the estimated obligations are
a number of significant assumptions made by management in determining closure provisions. Accordingly,
closure provisions are more uncertain the further into the future mine closure activities are expected to be
carried out.
The Company records the fair value of its reclamation and other closure provisions as a liability with a
corresponding increase in the carrying value of the related asset. The provision is discounted to its net
present value using a country specific, current market, pre-tax discount rate. The unwinding of the discount,
referred to as an accretion expense, is included in finance costs in the consolidated statement of earnings
and results in an increase in the carrying amount of the liability. Reclamation obligations settled in the year
are offset against the corresponding liability. Unplanned reclamation costs are reported as either part of the
cost of inventory or recognized as a cost in the consolidated statement of earnings, if they relate to either
production activities or a closed site.
The capitalized cost of the reclamation and other closure activities is recognized in the mineral property and
plant & equipment and depreciated on a unit-of-production basis over the expected mine life of the
operation to which it relates. Depreciation costs are included in the consolidated statement of earnings as
part of cost of goods sold.
Changes in obligations resulting from revisions to the timing or amount of expenditures, discount rate or
foreign exchange rate are recognized as an increase or decrease in the reclamation and other closure
provision liability, and a corresponding change in the carrying amount of the related assets. Where
rehabilitation is conducted over the life of the operation, rather than at the time of closure, a provision is

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 12 -
made for the estimated outstanding continuous rehabilitation work at each balance sheet date and the cost
is charged to the consolidated statement of earnings.
(p)Revenue recognition
Revenue from contracts with customers is recognized when a customer obtains control of the promised
asset and the Company satisfies its performance obligation. Revenue is allocated to each performance
obligation. The Company considers the terms of the contract in determining the transaction price. The
transaction price is based upon the amount the entity expects to be entitled to in exchange for the
transferring of promised goods. The Company earns revenue from contracts with customers related to its
concentrate sales and its copper, gold and silver streaming arrangements.
The Company satisfies its performance obligations for its concentrate sales per specified contract terms
which are generally upon shipment or delivery. Revenue from concentrate sales is recorded based upon
forward market prices of the expected final sales price date. The Company typically receives payment
shortly after vessel arrival at its destination port.
Deferred revenue arises from up-front payments received by the Company or obligations acquired in
consideration for future commitments as specified in its various streaming arrangements. The accounting
for streaming arrangements is dependent on the facts and terms of each of the arrangements. Revenue
from streaming arrangements is recognized when the customer obtains control of the copper, gold and/or
silver metal and the Company has satisfied its performance obligations.
The Company identified significant financing components related to its streaming arrangements resulting
from a difference in the timing of the up-front consideration received and delivery of the promised goods.
Interest expense on deferred revenue is recognized in finance costs, or in mineral properties, plant and
equipment if directly attributable to the acquisition, construction and development of a qualifying asset.
The interest rate is determined based on the rate implicit in each streaming agreement at the date of
inception or acquisition.
The initial consideration received from the streaming arrangements is considered variable, subject to
changes in the total copper, gold and silver volumes to be delivered. Changes to variable consideration are
reflected in revenue in the consolidated statement of earnings.
(q)Share-based compensation
The Company grants share-based awards in the form of share options and share units to certain employees
in exchange for the provision of services. The share options and share units are equity-settled awards. The
Company determines the fair value of the awards on the date of grant. This fair value is charged to the
consolidated statement of earnings using a graded vesting attribution method over the vesting period of the
awards, with a corresponding credit to contributed surplus. When the share options or share units are
exercised, the applicable amounts of contributed surplus are transferred to share capital. At the end of the
reporting period, the Company updates its estimate of the number of awards that are expected to vest and
adjusts the total expense to be recognized over the vesting period.
(r)Current and deferred income taxes
Income tax expense represents the sum of current and deferred tax. Current taxes payable is based on
taxable earnings for the year. Taxable earnings may differ from earnings before income tax as reported in
the consolidated statement of earnings because it may exclude items of income or expense that are taxable
or deductible in other years and it may further exclude items of income or expense that are never taxable or
deductible. The Company’s liability for current tax is calculated using tax rates that have been enacted or
substantively enacted at the balance sheet date.

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 13 -
Income tax assets and liabilities are offset when there is a legally enforceable right to offset the assets and
liabilities and when they relate to income taxes levied by the same tax authority on either the same taxable
entity or different taxable entities where there is an intention to settle the balance on a net basis.
Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases used in the computation of taxable earnings. Deferred
tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are
recognized to the extent that it is probable that future taxable profits will be available against which
deductible temporary differences or tax loss carryforwards can be utilized. Such assets and liabilities are not
recognized if the temporary difference arises from goodwill or from the initial recognition (other than in a
business combination) of other assets and liabilities in a transaction that affects neither the taxable earnings
nor the accounting earnings. Deferred tax liabilities are recognized for taxable temporary differences arising
on investments in subsidiaries and investments in associates, except where the Company is able to control
the reversal of the temporary differences and it is probable that the temporary differences will not reverse
in the foreseeable future. The carrying amount of deferred tax assets is reviewed at each balance sheet date
and reduced to the extent that it is no longer probable that sufficient taxable earnings will be available to
allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is
settled or the asset realized, based on tax rates and tax laws that have been enacted or substantively
enacted by the balance sheet date. Deferred tax is charged or credited to earnings, except when it relates to
items charged or credited directly to equity, in which case the deferred tax is reflected in equity.
(s)Earnings per share
Basic earnings per share is calculated using the weighted average number of common shares outstanding
during each reporting period. Diluted earnings per share is calculated assuming the proceeds from the
exercise of “in-the-money” share-based arrangements are used to purchase common shares at the average
market price during the period.
(t)Accounting for equity investments
As part of the capital funding process for ongoing activities at the Josemaria Project, the Company purchases
equity instruments via a third-party investment broker. The equity instruments are transferred from the
parent to the Argentinian subsidiary and held for a pre-determined period and then sold. The Company only
purchases equity instruments with high trading volumes and low volatilities. The equity instruments are
designated as held-for-trading, and as such all changes in the fair value of the underlying equity instruments
are recognized through the c onsolidated statement of earnings.
Upon receipt of the transferred equity instruments by the local investment broker, the Company realizes an
immediate foreign exchange impact. This foreign exchange impact is incurred directly as a result of holding
equity instruments with the intention of trading, and as such the foreign exchange impact is also recognized
through the consolidated statement of earnings.
(u)Financial instruments
Financial instruments are recognized on the consolidated balance sheet on the trade date, the date on
which the Company becomes a party to the contractual provisions of the financial instrument. The Company
classifies its financial instruments in the following categories:
Financial Assets at Amortized Cost
Assets that are held for collection of contractual cash flows where those cash flows represent solely
payments of principal and interest are measured at amortized cost. The Company intends to hold these
receivables until cash flows are collected. Receivables are recognized initially at fair value, net of any

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 14 -
transaction costs incurred and subsequently measured at amortized cost using the effective interest
method. The Company recognizes a loss allowance for expected credit losses on a financial asset that is
measured at amortized cost.
Financial Assets at Fair Value through Profit or Loss (“FVTPL”)
Financial assets measured at FVTPL are assets which do not qualify as financial assets at amortized cost or
those not designated in hedge relationships.
Provisionally priced trade receivables are considered embedded derivatives as some or all of the cash flows
are dependent on commodity prices. Trade receivables with embedded derivatives are initially measured at
their transaction price. Subsequent changes to provisionally priced trade receivables are recorded in the
consolidated statement of earnings as revenue from other sources.
Marketable securities, equity investments, and derivative assets not designated in hedge relationships are
classified as FVTPL. These financial assets are initially recognized at their fair value with changes to fair
values recognized in the consolidated statement of earnings.
Financial Liabilities at Amortized Cost
Financial liabilities are measured at amortized cost using the effective interest method, unless they are
required to be measured at FVTPL, or the Company has opted to measure them at FVTPL. Long-term debt is
recognized initially at fair value, net of any transaction costs incurred, and subsequently at amortized cost
using the effective interest method.
Financial Liabilities at FVTPL
Financial liabilities at FVTPL are liabilities which include embedded derivatives and cannot be classified as
amortized cost or those not designated in hedge relationships. Financial liabilities at FVTPL are initially
recognized at fair value with changes to fair values recognized in the consolidated statement of earnings.
The Company derecognizes financial assets only when the contractual rights to cash flows from the financial
assets expire, or when it transfers the financial assets and substantially all of the associated risks and
rewards of ownership. Gains and losses on derecognition are generally recognized in the consolidated
statement of earnings.
The Company derecognizes financial liabilities only when its obligations under the financial liabilities are
discharged, cancelled or expelled. The difference between the carrying amount of the financial liability
derecognized and the consideration paid and payable, including any non-cash assets transferred or liabilities
assumed, is recognized in the consolidated statement of earnings.
The Company may enter into derivative instruments to mitigate exposures to commodity price and currency
exchange rate fluctuations, among other exposures. Unless the derivative instruments qualify for hedge
accounting, and management undertakes appropriate steps to designate them as such, they are designated
as financial assets or liabilities at FVTPL and recorded at their fair value with realized and unrealized gains or
losses arising from changes in the fair value recorded in the consolidated statement of earnings in the
period they occur. Fair values for derivative instruments are determined using valuation techniques. The
valuations use assumptions based on prevailing market conditions on the reporting date.
Hedge Accounting
The Company may apply cash flow hedge accounting to qualifying derivative financial instruments that
mitigate exposures to commodity price and currency exchange rate fluctuations.

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 15 -
The Company formally documents all relationships between hedging instruments and hedged items at
inception of the contracts, as well as its risk management objectives and strategies for undertaking hedge
transactions. This process includes linking all derivative hedging instruments to highly probable forecasted
transactions. Hedge effectiveness is assessed based on the degree to which the cash flows from the
derivative contracts are expected to offset the cash flows of the underlying transaction being hedged.
The effective portion of changes in fair value is recognized in other comprehensive income ("OCI"). For
hedged items other than the purchase of non-financial assets, the amounts accumulated in OCI are
reclassified to the consolidated statement of earnings when the underlying hedged transaction, identified at
contract inception, affects profit or loss. When hedging a forecasted transaction that results in the
recognition of a non-financial asset, the amounts accumulated in equity are removed and added to the
carrying amount of the non-financial asset. The amounts accumulated in OCI are reclassified to the
consolidated statement of earnings or to the carrying amount of the non-financial asset, consistent with the
classification of the underlying hedged transaction, when the underlying hedged transaction is recognized.
Any ineffective portion of a hedge relationship is recognized immediately in the consolidated statement of
earnings. When derivative contracts designated as cash flow hedges are terminated, expired, sold or no
longer qualify for hedge accounting, hedge accounting is discontinued prospectively. Any amounts recorded
in OCI until the time the contracts do not qualify for hedge accounting remain in OCI. Amounts recognized in
OCI are recognized in the consolidated statement of earnings in the period in which the underlying hedged
transaction is completed. Gains or losses arising subsequent to the derivative contracts not qualifying for
hedge accounting are recognized in the period incurred in the consolidated statement of earnings. If the
forecasted transaction is no longer expected to occur, then the amounts accumulated in OCI are reclassified
to the consolidated statement of earnings immediately.
(iii)New standards and interpretations adopted January 1, 2023
In May 2021, the IASB issued amendments to IAS 12, Income Taxes. The amendments to IAS 12 narrow the scope
of the initial recognition exemption so that it no longer applies to transactions which give rise to equal amounts
of taxable and deductible temporary differences. The Company is to recognize a deferred tax asset and deferred
tax liability for temporary differences arising on initial recognition for certain transactions, including leases and
reclamation provisions. The amendments to IAS 12 are effective for annual reporting periods beginning on or
after January 1, 2023, with early adoption permitted. The Company adopted the amendments effective January
1, 2023, with no material impact expected to the consolidated financial statements for 2023.
(iv)Critical accounting estimates and judgements in applying the entity’s accounting policies
The preparation of consolidated financial statements in accordance with IFRS requires the use of certain critical
accounting estimates and judgements. These estimates and judgements are based on management’s best
knowledge of the relevant facts and circumstances taking into account previous experience, but actual results
may differ materially from the amounts included in the financial statements.
Areas where critical accounting estimates and judgements have the most significant effect on the amounts
recognized in the consolidated financial statements include:
Depreciation, depletion and amortization of mineral properties, plant and equipment - Mineral properties,
plant and equipment comprise a large component of the Company’s assets and as such, the depreciation,
depletion and amortization of these assets have a significant effect on the Company’s financial statements. Upon
commencement of commercial production, the Company depletes mineral property over the life of the mine
based on the depletion of the mine’s Proven and Probable Mineral Reserves. In the case of mining equipment or
other assets, if the useful life of the asset is shorter than the life of the mine, the asset is amortized over its
expected useful life.

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 16 -
Proven and Probable Mineral Reserves are determined based on a professional evaluation using accepted
international standards for the estimation of Mineral Reserves. The assessment involves geological and
geophysical studies, economic data and the reliance on a number of assumptions. The estimates of the Mineral
Reserves may change based on additional knowledge gained subsequent to the initial assessment. This may
include additional data available from continuing exploration, results from the reconciliation of actual mining
production data against the original Mineral Reserve estimates, or the impact of economic factors such as
changes in the price of commodities or the cost of components of production.
A change in the original estimate of Mineral Reserves would result in a change in the rate of depreciation,
depletion and amortization of the related mineral assets. The effect of a change in the estimates of Mineral
Reserves would have a relatively greater effect on the amortization of the current mining operations at Eagle
because of the relatively short mine life of this operation. A short mine life results in a high rate of amortization
and depreciation, and mineral assets may exist at these sites that have a useful life in excess of the revised life of
the related mine.
Revenue from Contracts with Customers – To determine the transaction price for streaming agreements, the
Company made estimates with respect to future production of the life of mine and R&R quantities. These
estimates are subject to variability and may have an impact on the timing and amount of revenue recognized and
may result in cumulative adjustments.
The Company exercised judgment in the identification of performance obligations under its contracts and the
allocation of the transaction price thereto. Specifically, the Company considers the performance obligations to be
the delivery of gold and silver in concentrate to offtakers and copper to streamers.
Valuation of long-term inventory - The Company carries its long-term inventory at the lower of production cost
and NRV. If the carrying value exceeds the net realizable amount, a write-down is required. The write-down may
be reversed in a subsequent period if the circumstances which caused it no longer exist.
The Company reviews NRV at least annually. In particular, for the NRV of long-term inventory, the Company
makes significant estimates in its use of a discounted NRV model related to future production plans, forecasted
commodity prices, foreign exchange rates, R&R quantities, future capital and production costs to complete, and
the discount rate. These estimates are subject to various risks and uncertainties and may have an effect on the
NRV estimate and the carrying value of the long-term inventory. The carrying value of Chapada's long-term
stockpile of $247.7 million is most sensitive to these estimates.
Valuation of mineral properties - The Company carries its mineral properties at cost less accumulated depletion
and any accumulated provision for impairment. The Company expenses exploration costs which are related to
specific projects until commercial feasibility of the project is determinable. The costs of each property and related
capitalized development expenditures are depleted over the economic life of the property on a unit‐of‐
production basis. Costs are charged to the consolidated statement of earnings when a property is abandoned or
when there is a recognized impairment in value.
The Company undertakes a review of the carrying values of mineral properties and related expenditures
whenever events or changes in circumstances indicate that their carrying values may exceed their estimated net
recoverable amounts determined by reference to estimated future operating results and discounted net cash
flows. An impairment loss is recognized when the carrying value of those assets is not recoverable. Where a
previous impairment has been recorded, the Company analyzes any reverse impairment indicators. Impairment
reversals are recognized in subsequent periods when there has been a change in the estimates used to determine
the asset’s recoverable amount since the last impairment loss was recognized. In undertaking this review,
management of the Company is required to make significant estimates of, amongst other things, future
production and sale volumes, metal prices, foreign exchange rates, R&R quantities, future capital and production
costs and reclamation costs to the end of the mine’s life. These estimates are subject to various risks and
uncertainties which may ultimately have an effect on the expected recoverability of the carrying values of the
mineral properties and related expenditures.

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

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The Company, from time to time, acquires exploration and development properties. When a number of
properties are acquired in a portfolio, the Company must make a determination of the fair value attributable to
each of the properties within the total portfolio. When the Company conducts further exploration on acquired
properties, it may determine that certain of the properties do not support the fair values applied at the time of
acquisition. If such a determination is made, the property is written down which could have a material effect on
the consolidated balance sheet and consolidated statement of earnings.
Goodwill - The amount by which the purchase price of a business acquisition exceeds the fair value of identifiable
assets and liabilities acquired is recorded as goodwill. Goodwill is allocated to the CGUs acquired based on the
assessment of which CGU would be expected to benefit from the synergies of the acquisition. Estimates of
recoverable value may be impacted by changes in metal prices, foreign exchange rates, discount rates, level of
capital expenditures, production costs and other factors that may be different from those used in determining
fair value. Changes in estimates could have a material impact on the carrying value of the goodwill.
Reclamation and other closure provisions - The Company incurs reclamation and other closure costs related to
its mining properties. The future obligations for mine closure activities are estimated by the Company using mine
closure plans or other similar studies which outline the activities to be undertaken to meet regulatory and
internal requirements. Since the obligations are dependent on the laws and regulations of the countries in which
the mines operate, they are regularly reviewed by management and external experts, and could change as a
result of amendments to the laws and regulations. Included in the estimated obligations are a number of
significant assumptions made by management in determining closure provisions. Accordingly, closure provisions
are more uncertain the further into the future the mine closure activities are to be carried out.
The Company’s policy for recording reclamation and other closure provisions is to establish provisions for future
mine closure costs based on the present value of the future cash flows required to satisfy the obligations. This
provision is updated as the estimate for future closure costs change. The amount of the present value of the
provision is added to the cost of the related mineral property and plant & equipment and depreciated over the
life of the mine. The provision is accreted to its future value over the life of mine through a charge to finance
costs.
Income taxes - Deferred tax assets and liabilities are determined based on differences between the financial
statement carrying values of assets and liabilities and their respective income tax bases (“temporary differences”)
and losses carried forward.
The determination of the ability of the Company to utilize tax loss carry‐forwards and deductible temporary
differences to offset deferred tax liabilities requires management to exercise judgment and make certain
assumptions about the future performance of the Company. Management is required to assess whether it is
“probable” that the Company will benefit from these prior losses and other deductible temporary differences.
Changes in economic conditions, metal prices and other factors could result in revisions to the estimates of the
benefits to be realized or the timing of utilization of the losses.
Assessment of impairment and reverse impairment indicators - Management applies significant judgement in
assessing whether indicators of impairment or reverse impairment exist for a CGU which would necessitate
impairment testing. Internal and external factors such as significant changes in the use of the asset, commodity
prices, foreign exchange rates, capital and production forecasts, R&R quantities, and discount rates are used by
management in determining whether there are any indicators.
During the year, management identified indicators of impairment of long-lived assets. As a result, an impairment
assessment was performed with no impairment s identified.
Contingent liabilities - Contingent liabilities are possible obligations that arise from past events which will be
confirmed by the occurrence or non-occurrence of future events. These contingencies are not recognized in the
consolidated financial statements when the obligation is not probable or if the obligation cannot be measured
reliably. The Company exercises significant judgment when determining the probability of the future outcome
and with regard to any required disclosure of contingencies, and measuring the liability is a significant estimate.

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 18 -
Josemaria Resources Inc. acquisition - Management determined that the Company’s acquisition of Josemaria
Resources Inc. ("Josemaria Resources") (Note 3), which owns the copper-gold project in the San Juan Province of
Argentina, did not meet the definition of a business combination under IFRS 3.
The assets acquired included plant and equipment, and Mineral Resources and Mineral Reserves. They did not
include sufficient infrastructure or workforce to create substantial output, as the plant and equipment acquired
only supported the engineering, procurement and preparation for pre-construction early works. Accordingly, the
acquisition has been accounted for as the purchase of individual assets in accordance with IAS 16 – Property,
Plant and Equipment.
The identifiable assets and liabilities acquired were measured at their relative fair values as at the date of
acquisition. The excess of the consideration paid for the identifiable assets and liabilities acquired was attributed
to the mineral properties of the Josemaria Project. The determination of the relative fair values required
management to make assumptions and estimates on the future production profile, construction costs, metal
prices, discount rates, and exchange rates. Changes in the assumptions or estimates could affect the relative fair
values of the assets acquired and liabilities assumed in the purchase price allocation.
During the fourth quarter of 2022, the Company began to capitalize development costs to reflect significant
project advancement made since acquisition (Note 3). Engineering, procurement of long lead equipment, and
pre-construction early works including internal access roads and Phase 1 of the new camp were all well
advanced. In addition, Mr. David Dicaire joined the company as Senior Vice President, taking on responsibility for
project advancement, and the Board of Directors have approved several rounds of project funding, which
demonstrated continued support for the Project.
3.ACQUISITION OF JOSEMARIA
On April 28, 2022 the Company completed the acquisition of Josemaria Resources through a plan of arrangement (the
“Transaction”) for a purchase price of $539.7 million. On closing of the Transaction, each former Josemaria Resources
shareholder received either (i) C$1.60 in cash or (ii) 0.1487 (“Exchange Ratio”) Lundin Mining shares plus C$0.11 cash
for each whole Lundin Mining share issued, or a combination of cash and shares, subject to proration. This resulted in
total cash consideration paid of $144.4 million and the issuance of 40,031,936 Lundin Mining common shares to
Josemaria Resources shareholders. In addition, outstanding Josemaria Resources stock options were converted to
Lundin Mining stock options at the Exchange Ratio, resulting in the issuance of 2,513,866 Lundin Mining stock options
(the “Replacement Options”).

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 19 -
The purchase price is as follows:

| Cash consideration | $144,412
| Fair value of 40,031,936 common shares issued by the Company (a) | 369,175
| Fair value of 2,513,866 Replacement Options issued by the Company (b) | 13,436
| Transaction costs | 9,321
| Lundin Mining’s previously held shares in Josemaria Resources | 3,343
| Total purchase price | $539,687

Assets acquired and liabilities assumed:

| Cash and cash equivalents | $26,534
| Receivables and other assets | 1,584
| Mineral properties, plant and equipment (Note 7) | 675,477
| Total assets | 703,595
| Trade and other payables | (62,770)
| Debentures (c) | (47,000)
| Bridge loan (d) | (54,100)
| Lease liabilities (Note 11) | (38)
| Total liabilities | (163,908)
| Total assets acquired and liabilities assumed, net | $539,687

a)The fair value of the common shares issued was determined using the Company’s share price of C$11.83 and
foreign exchange rate of USD/CAD: 1.283 at the close of business on April 28, 2022 (Note 14).
b)Each Replacement Option gives the holder the fully-vested right to acquire common shares of the Company.
The exercise price of the Replacement Options was determined by dividing the exercise price of the Josemaria
Resources stock options by the Exchange Ratio. The full option value of the Replacement Options was
accounted for as consideration, and no future compensation expense will be recorded with respect to the
Replacement Options.
The fair value of the Replacement Options was determined using the Black-Scholes option pricing model which
assumed a dividend yield of 3.04%, risk-free interest rate of 2.21%, expected life of 0.07 years to 2.83 years,
and expected price volatility of 48%. On issuance, the weighted average fair value of the Replacement Options
was C$6.75 (Note 14).
c)Subsequent to the Transaction closing, the Company settled in full the principal on the existing debentures
totaling $47.0 million (Note 11).
d)The $54.1 million bridge loan owed by Josemaria Resources to the Company became an intercompany loan
with the closing of the Transaction and was eliminated on consolidation.

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

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4.CASH AND CASH EQUIVALENTS
Cash and cash equivalents are comprised of the following:

|  | December 31, 2022 |  | December 31, 2021
| Cash | $158,153 |  | $533,560
| Short-term deposits | 33,234 |  | 60,509
|  | $191,387 |  | $594,069

5.TRADE AND OTHER RECEIVABLES
Trade and other receivables are comprised of the following:

|  | December 31, 2022 |  | December 31, 2021
| Trade receivables | $430,734 |  | $507,697
| Value added tax | 65,028 |  | 37,136
| Prepaid expenses | 53,767 |  | 25,972
| Other receivables | 26,649 |  | 31,869
|  | $576,178 |  | $602,674

In 2021, other receivables included an insurance settlement of $16.0 million related to a mill interruption at Chapada
in 2020, which was received in the first quarter of 2022.
The Company does not have any significant balances that are past due nor any significant expected credit losses. The
Company's credit risk is discussed in Note 27.
The fair value of trade and other receivables is disclosed in Note 23.
The carryin g amounts of trade and other receivables are mainly denominated as follows: $435.1 million, CLP 65.7
billion, €23.1 million, C$15.6 million, SEK 69.0 million, BRL 102.8 million and ARS 367.7 million as at December 31, 2022
(December 31, 2021 - $528.0 million, CLP 24.0 billion, €21.6 million, C$4.1 million, SEK 37.7 million and BRL 79.2
million).
6.INVENTORIES
Inventories are comprised of the following:

|  | December 31, 2022 |  | December 31, 2021
| Ore stockpiles | $69,781 |  | $28,307
| Concentrate stockpiles | 42,209 |  | 56,526
| Materials and supplies | 184,720 |  | 142,550
|  | $296,710 |  | $227,383

Long-term inventory is comprised of ore stockpiles. As at December 31, 2022, the Company had $394.2 million
(December 31, 2021 - $422.3 million) and $247.7 million (December 31, 2021 - $297.3 million) of long-term ore
stockpiles at Candelaria and Chapada, respectively. The Company recognized a net realizable value write-down in the
Chapada long-term ore stockpiles of $66.8 million (December 31, 2021 - $68.1 million), with $4.2 million of the write-
down included in depreciation, depletion and amortization (December 31, 2021 - $3.1 million).

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 21 -
7.MINERAL PROPERTIES, PLANT AND EQUIPMENT
Mineral properties, plant and equipment are comprised of the following:

| Cost | Mineral properties |  | Plant and equipment |  | Assets under construction 1 |  | Development project 2 |  | Software intangible assets |  | Total
| As at December 31, 2020 | $5,059,793 |  | $3,266,149 |  | $421,697 |  | $— |  | $14,225 |  | $8,761,864
| Additions | 259,644 |  | 47,977 |  | 278,676 |  | 6,631 |  | 587 |  | 593,515
| Disposals and transfers | 115,230 |  | 192,512 |  | (330,489) |  | — |  | 618 |  | (22,129)
| Effects of foreign exchange | (155,524) |  | (65,467) |  | (27,292) |  | — |  | (752) |  | (249,035)
| As at December 31, 2021 | 5,279,143 |  | 3,441,171 |  | 342,592 |  | 6,631 |  | 14,678 |  | 9,084,215
| Josemaria acquisition (Note 3) | — |  | 22,233 |  | — |  | 646,605 |  | — |  | 668,838
| Additions | 322,465 |  | 92,649 |  | 277,249 |  | 228,462 |  | 14,270 |  | 935,095
| Disposals and transfers | 93,105 |  | 259,430 |  | (369,687) |  | (5,279) |  | 4,041 |  | (18,390)
| Effects of foreign exchange | (147,790) |  | (63,306) |  | (14,098) |  | — |  | (363) |  | (225,557)
| As at December 31, 2022 | $5,546,923 |  | $3,752,177 |  | $236,056 |  | $876,419 |  | $32,626 |  | $10,444,201

| Accumulated depreciation, depletion and amortization | Mineral properties |  | Plant and equipment |  | Assets under construction 1 |  | Development project 2 |  | Software intangible assets |  | Total
| As at December 31, 2020 | $2,382,365 |  | $1,246,026 |  | $— |  | $— |  | $7,862 |  | $3,636,253
| Depreciation | 314,573 |  | 225,099 |  | — |  | — |  | 730 |  | 540,402
| Disposals and transfers | 19,031 |  | (31,894) |  | — |  | — |  | 8 |  | (12,855)
| Effects of foreign exchange | (95,773) |  | (34,147) |  | — |  | — |  | (564) |  | (130,484)
| As at December 31, 2021 | 2,620,196 |  | 1,405,084 |  | — |  | — |  | 8,036 |  | 4,033,316
| Depreciation | 308,831 |  | 252,003 |  | — |  | — |  | 3,829 |  | 564,663
| Disposals and transfers | (79) |  | (5,461) |  | — |  | — |  | (119) |  | (5,659)
| Effects of foreign exchange | (93,517) |  | (30,187) |  | — |  | — |  | (101) |  | (123,805)
| As at December 31, 2022 | $2,835,431 |  | $1,621,439 |  | $— |  | $— |  | $11,645 |  | $4,468,515

| Net book value | Mineral properties |  | Plant and equipment |  | Assets under construction 1 |  | Development project 2 |  | Software intangible assets |  | Total
| As at December 31, 2021 | $2,658,947 |  | $2,036,087 |  | $342,592 |  | $6,631 |  | $6,642 |  | $5,050,899
| As at December 31, 2022 | $2,711,492 |  | $2,130,738 |  | $236,056 |  | $876,419 |  | $20,981 |  | $5,975,686
| ¹ Represent assets under construction at our operating mine sites which are currently non-depreciable.
| 2 Assets relate to the Josemaria Project which are currently non-depreciable.

During the second quarter of 2022, the Company completed the Josemaria Resources acquisition (Note 3) acquiring
$668.8 million of mineral properties, plant and equipment. In addition, $6.6 million of transaction costs related to the
acquisition were capitalized in 2021. During the fourth quarter of 2022, the Company began to capitalize the Josemaria
Project development costs (Note 2(iv)).
During 2022, the Company capitalized $4.4 million (2021 - $15.1 million) of finance costs to assets under construction
and the Josemaria Project, at a weighted average interest rate of 5.5% (2021 - 4.5%).

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 22 -
During 2022, the Company capitalized $253.4 million (2021 - $179.6 million) of deferred stripping costs to mineral
properties. The depreciation expense related to deferred stripping for the year was $123.0 million (2021 - $131.2
million). Included in the mineral properties balance at December 31, 2022 is $681.7 million (December 31, 2021 -
$464.6 million) related to deferred stripping at Candelaria, which is currently non-depreciable.
The Company's software intangible assets relate primarily to a global, distinct instance of an Enterprise Resource
Planning ("ERP") system, and related configuration and customization costs incurred in preparing the intangible asset
for its intended use. These assets have useful lives of 8 years or less, and are amortized on a straight-line basis.
The Company leases various assets including buildings, rail cars, vehicles, machinery and equipment. The following
table summarizes the changes in right-of-use assets within plant and equipment:

|  | Net book value
| As at December 31, 2020 | $38,870
| Additions | 10,408
| Depreciation | (20,011)
| Disposals | (873)
| Effects of foreign exchange | (797)
| As at December 31, 2021 | 27,597
| Josemaria acquisition (Note 3) | 32
| Additions | 22,071
| Depreciation | (21,288)
| Disposals | (75)
| Effects of foreign exchange | (414)
| As at December 31, 2022 | $27,923

The Company acts as lessee in certain leases that contain variable lease payment terms that are primarily based on
usage of the right-of-use assets.
8.INVESTMENT IN ASSOCIATE
The following table summarizes the changes in the investment in associate:

| As at December 31, 2020 | $22,342
| Distributions, net | (32,154)
| Share of equity income | 24,895
| As at December 31, 2021 | 15,083
| Distributions | (18,000)
| Share of equity income | 3,297
| As at December 31, 2022 | $380

The Company had a 24% ownership interest in Freeport Cobalt, a specialty cobalt business based in Kokkola, Finland,
held through its 24% owned subsidiary Koboltti Chemicals Holdings Limited (“KCHL”), with the balance held by
Freeport-McMoRan Inc. (56%) and La Générale des Carrières et des Mines (20%), a Democratic Republic of the Congo
government-owned corporation.
In September 2021, KCHL completed the sale of Freeport Cobalt for $208 million (including cash and other working
capital and subject to post-closing adjustments), consisting of cash consideration of $173 million and 7% of shares in
the purchaser (valued at approximately $35 million). In addition, the Company and its partners will have the right to
receive contingent cash consideration up to $40 million based on the future performance of Freeport Cobalt, of which
the Company’s share is $9.6 million. The Company’s net share of the proceeds, excluding contingent consideration,

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 23 -
was approximately $45 million cash plus $8 million in shares of the purchaser. The Company recognized $21.6 million
through its share of equity income and received partial cash distributions of $41.2 million from the transaction during
2021.
During the second quarter of 2022, the shares in the purchaser were sold and substantially all of the remaining net
assets were distributed to the partners.
9.GOODWILL
The Company recognized goodwill on the acquisition of Chapada, Neves-Corvo, and Ojos del Salado (“Ojos”). Goodwill
is allocated to the following CGUs:

|  | Chapada | Neves-Corvo | Ojos¹ | Total
| Balance at December 31, 2020 | $134,284 | $106,186 | $10,713 | $251,183
| Effects of foreign exchange | — | (8,178) | — | (8,178)
| Balance at December 31, 2021 | 134,284 | 98,008 | 10,713 | 243,005
| Effects of foreign exchange | — | (5,711) | — | (5,711)
| Balance at December 31, 2022 | $134,284 | $92,297 | $10,713 | $237,294
| ¹ Ojos is included in the Candelaria reporting segment. |  |  |

The Company performs an impairment assessment annually, or more frequently if there are impairment indicators, for
the carrying amount of its CGUs where goodwill is allocated.
The recoverable value of a CGU is determined partly using the FVLCD method applied by using a discounted cash flow
projections model based on life-of-mine financial plans. The key assumptions used in the cash flow projections model
consist of forecasted commodity prices, treatment and refining charges, R&R quantities, capital and production cost
forecasts, reclamation and other closure costs, discount rates and foreign exchange rates.
For the 2022 assessment, commodity prices and foreign exchange rates used in the cash flow projections are within a
range of market consensus observed during the fourth quarter of 2022. Foreign exchange rate assumptions include
the impact of the Company's foreign currency derivative contracts. The valuation of recoverable amount is most
sensitive to changes in metal prices, exchange rates and discount rates.
Production costs and capital expenditures included in the cash flow projections are based on operating plans which
consider past and estimated future performance.
In performing the CGU impairment test for Chapada, Neves-Corvo and Ojos, the Company used a FVLCD valuation
model. Inputs utilized in this model were based on level 3 fair value measurements (see Note 23), which were not
based on observable market data. The R&R were based on the Company’s last published estimate dated December 31,
2022. Incorporated in the FVLCD were fair value estimates developed by the Company for R&R not captured in the
cash flow projections model. These estimates are valued using third-party market information.
Chapada
For the Chapada CGU impairment review, the Company used a FVLCD model (level 3 measurement). For the years
ended December 31, 2022 and 2021, the Company determined that the recoverable amount of the Chapada CGU was
higher than its carrying value, and therefore no impairment was recognized.
Sensitivity analysis was performed on the cash flow model for Chapada. Reviewing changes in key inputs such as
changes to metal prices (+/-5%), foreign exchange rate (+/-5%) and discount rate (+/-1%) did not have a material
impact on the result of the Company’s goodwill impairment assessment.

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 24 -
Key assumptions for Chapada

| 2022 | 2021
Copper price $/lb | 3.75 - 3.85 | 3.40 - 4.10
Gold price $/oz | 1,700 - 1,750 | 1,550 - 1,800
After-tax discount rate | 8.0% | 7.3%
BRL/$ exchange rate | 5.00 - 5.20 | 5.20 - 5.70
Life of mine | 29 years | 32 years

Neves-Corvo
For the Neves-Corvo CGU impairment review, the Company used a FVLCD model (level 3 measurement). For the years
ended December 31, 2022 and 2021, the Company determined that the recoverable amount of the Neves-Corvo CGU
was higher than its carrying value, and therefore no impairment was recognized.
Sensitivity analysis was performed on the cash flow model for Neves-Corvo. Reviewing changes in key inputs such as
changes to metal prices (+/-5%), foreign exchange rate (+/-5%) and discount rate (+/-1%) did not have a material
impact on the result of the Company’s goodwill impairment assessment.
Key assumptions for Neves-Corvo

| 2022 | 2021
Copper price $/lb | 3.75 - 3.85 | 3.40 - 4.10
Zinc price $/lb | 1.15 - 1.30 | 1.10 - 1.30
After-tax discount rate | 9.0% | 9.0%
$/€ exchange rate | 1.03 - 1.10 | 1.15 - 1.20
Life of mine | 10 years | 11 years

Ojos
For the Ojos CGU impairment review, the Company used a FVLCD model (level 3 measurement). For the years ended
December 31, 2022 and 2021, the Company determined that the recoverable amount of the Ojos CGU was higher than
its carrying value, and therefore no impairment was recognized.
Sensitivity analysis was performed on the cash flow model for Ojos. Reviewing changes in key inputs such as changes
to metal prices (+/-5%), foreign exchange rate (+/-5%) and discount rate (+/-1%) did not have a material impact on the
result of the Company’s goodwill impairment assessment.
Key assumptions for Ojos

| 2022 | 2021
Copper price $/lb | 3.75 - 3.85 | 3.40 - 4.10
After-tax discount rate | 8.5% | 8.5%
CLP/$ exchange rate | 800 - 900 | 800 - 820
Life of mine | 12 years | 9 years

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 25 -
10.TRADE AND OTHER PAYABLES
Trade and other payables are comprised of the following:

|  | December 31, 2022 |  | December 31, 2021
| Trade payables | $315,948 |  | $199,545
| Unbilled goods and services | 122,390 |  | 80,067
| Employee benefits payable | 88,086 |  | 71,078
| Sinkhole provision (Note 24) | 38,000 |  | —
| Royalties payable | 16,283 |  | 16,876
| Pricing provisions on concentrate sales | 8,484 |  | 1,940
| Prepayment from customers | 389 |  | 9,165
| Distributions payable to non-controlling interests (Note 15) | — |  | 15,000
| Other | 23,385 |  | 19,958
|  | $612,965 |  | $413,629

Included in pricing provisions on concentrate sales are balances owing to customers and provisions arising from
forward market price adjustments.
The sinkhole provision recorded in 2022 relates to expected remediation costs and potential fines directly related to
the sinkhole near the Company's Ojos del Salado operations.
11.DEBT AND LEASE LIABILITIES
Debt and lease liabilities are comprised of the following:

|  | December 31, 2022 |  | December 31, 2021 |
| Revolving credit facility (a) | $13,730 |  | $— |
| Term loans (b) | 127,400 |  | — |
| Lease liabilities (c) | 27,166 |  | 25,878 |
| Commercial paper (d) | 26,665 |  | — |
| Line of credit (e) | 2,367 |  | 5,125 |
| Debt and lease liabilities | 197,328 |  | 31,003 |
| Less: current portion | 170,149 |  | 14,617 |
| Long-term portion | $27,179 |  | $16,386 |

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 26 -
The changes in debt and lease liabilities are comprised of the following:

|  | Leases |  | Debt |  | Total
| As at December 31, 2020 | $36,312 |  | $166,736 |  | $203,048
| Additions | 10,420 |  | 33,171 |  | 43,591
| Payments | (19,369) |  | (195,813) |  | (215,182)
| Disposals | (866) |  | — |  | (866)
| Interest | 1,494 |  | — |  | 1,494
| Financing fee amortization | — |  | 322 |  | 322
| Financing fee reclassification | — |  | 1,300 |  | 1,300
| Effects of foreign exchange | (2,113) |  | (591) |  | (2,704)
| As at December 31, 2021 | 25,878 |  | 5,125 |  | 31,003
| Josemaria acquisition (Note 3) | 38 |  | 47,000 |  | 47,038
| Additions | 21,198 |  | 282,938 |  | 304,136
| Payments | (21,651) |  | (160,824) |  | (182,475)
| Disposals | (26) |  | — |  | (26)
| Interest | 1,434 |  | — |  | 1,434
| Financing fee amortization | — |  | 656 |  | 656
| Deferred financing fee | — |  | (4,926) |  | (4,926)
| Effects of foreign exchange | 295 |  | 193 |  | 488
| As at December 31, 2022 | 27,166 |  | 170,162 |  | 197,328
| Less: current portion | 13,813 |  | 156,336 |  | 170,149
| Long-term portion | $13,353 |  | $13,826 |  | $27,179

a)During the second quarter of 2022, the Company executed a fourth amended and restated credit agreement
that increased its secured revolving credit facility to $1,750.0 million (previously $800.0 million with a $200.0
million accordion option), reduced the cost of borrowing, and extended the maturity to April 2027 (previously
August 2023). The credit facility bears interest on drawn funds at rates of Term Secured Overnight Financing
Rate (“Term SOFR”) + Credit Spread Adjustment (“CSA”) + 1.45% to Term SOFR+CSA+2.50% (previously
LIBOR+1.75% to LIBOR+2.75%), depending on the Company’s net leverage ratio. The revolving credit facility is
subject to customary covenants. During the fourth quarter of 2022, the Company drew down $50.0 million on
the credit facility and subsequently repaid $32.0 million. As at December 31, 2022, the balance outstanding was
$18.0 million (December 31, 2021 - nil). The previously issued SEK and Euro denominated letters of credit of
$15.9 million (SEK 162.0 million) and $2.3 million (€2.2 million) were cancelled on April 14, 2022, and December
13, 2022, respectively. Deferred financing fees of $4.3 million have been netted against borrowings. As at
December 31, 2021, deferred financing fees were reported in other asse ts. In January 2023, the Company drew
down an additional $25.0 million on the credit facility. On February 16, 2023, the Company received
commitments from the lenders of the revolving credit facility to, upon completion and execution of the first
amendment to the fourth amended and restated credit agreement, extend the term by one year to April 2028
and reduce the credit spread adjustment.
b)During the fourth quarter of 2022, Candelaria obtained an unsecured fixed term loan in the amount of $50.0
million. The loan matures on December 20, 2023 and accrues interest at a rate of 6.13% per annum, with
interest payable upon maturity. As at December 31, 2022, the total balance outstanding was $50.0 million
(December 31, 2021 - nil).

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 27 -
During the fourth quarter of 2022, Mineração Maracá Indústria e Comércio S/A (“Chapada”), a subsidiary of the
Company which owns the Chapada mine, obtained eleven unsecured fixed term loans totalling $101.4 million.
The term loans accrue interest at rates ranging from 4.00% to 6.70% per annum with interest payable upon
maturity. The maturity dates range from November 3, 2022 to May 18, 2023. Two term loans totalling $24.0
million were repaid in full upon their respective maturity dates of November 3, 2022 and December 16, 2022.
As at December 31, 2022, the total balance outstanding was $77.4 million (December 31, 2021 - nil).
In January 2023 and February 2023, Chapada repaid a total of $19.3 million of the outstanding term loans and
obtained six additional unsecured fixed term loans totalling $34.6 million, accruing interest at rates ranging
from 5.44% to 6.23% per annum with interest payable upon maturity. The maturity dates range from March 20,
2023 to May 8, 2023.
c)L ease liabilities relate to leases on buildings, rail cars, vehicles, machinery and equipment which have remaining
lease terms of one to twelve years and interest rates of 0.8% - 8.0% over the terms of the leases.
d)Sociedade Mineira de Neves-Corvo, S.A. (“Somincor”), a subsidiary of the Company which owns the Neves-
Corvo mine, has a commercial paper program which matures in May 2025. The $26.7 million (€25.0 million)
program bears interest on drawn funds at EURIBOR+0.50%. During 2022, Somincor made several draw downs
totalling $81.5 million (€80.0 million) and made several repayments totalling $55.7 million (€55.0 million). As at
December 31, 2022, the credit facility remains fully drawn at $26.7 million (€25.0 million).
e)As at December 31, 2022, the balance outstanding for Somincor equipment financing was $2.4 million (€2.2
million) (December 31, 2021 - $5.1 million). Interest rates vary from a fixed rate of 0.88% to EURIBOR+0.84%,
dependent on the piece of equipment, with the debt maturing throughout 2023 and 2024.
f) As part of the acquisition of Josemaria Resources (Note 3), the Company assumed existing debentures of $47.0
million. Immediately following the Transaction closing, the Company settled the debentures balance in full. As
at December 31, 2022, there was no balance outstanding.
g)Certain leases relating to mine development, exploration, production and transportation equipment contain
variable lease expenses based on tonnage or drilling metres. Variable lease expense for the period ended
December 31, 2022 was $173.9 million (2021 - $153.1 million). The Company has short-term leases related to
mining equipment and office space. Short-term lease expense for the period ended December 31, 2022 was
$3.0 million (2021 - $7.1 million).
The schedule of undiscounted lease payment and debt obligations is as follows:

|  | Leases |  | Debt |  | Total
| Less than one year | $14,946 |  | $156,336 |  | $171,282
| One to five years | 12,355 |  | 18,096 |  | 30,451
| More than five years | 1,360 |  | — |  | 1,360
| Total undiscounted obligations as at December 31, 2022 | $28,661 |  | $174,432 |  | $203,093

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 28 -
12.DEFERRED REVENUE
The following table summarizes the changes in deferred revenue:

| As at December 31, 2020 | $739,566
| Recognition of revenue | (74,067)
| Variable consideration adjustment | (6,997)
| Finance costs | 40,325
| Effects of foreign exchange | (5,360)
| As at December 31, 2021 | 693,467
| Recognition of revenue | (73,733)
| Variable consideration adjustment | 3,492
| Finance costs | 37,621
| Effects of foreign exchange | (6,741)
| As at December 31, 2022 | 654,106
| Less: current portion | 74,061
| Long-term portion | $580,045

Consideration received under the Company’s gold, silver and copper streaming agreements is deemed to be variable
and can be subject to cumulative adjustments when the contractual volume to be delivered changes. As a result of
changes to the Company’s R&R, adjustments have been made to the deferred revenue liability for 2021 and 2022
which were recognized through revenue and finance costs.
For the year ended December 31, 2022, the Company recognized finance costs at a weighted average rate of 5.5%
(2021 - 5.5%) on the deferred revenue balances.
a) Candelaria
The Company entered into a stream agreement with Franco-Nevada Corporation (“FN”), whereby the Company
has agreed to sell 68% of all the gold and silver contained in production from Candelaria until 720,000 oz of gold
and 12 million oz of silver have been delivered. Thereafter, FN will be entitled to purchase 40% of the gold and
silver production from Candelaria. The Company received an up-front payment of $648 million which is being
recognized as gold and silver are delivered to FN under the contract.
For each ounce of gold and silver delivered, FN makes payments equal to the lesser of the prevailing market prices
and approximately $420/oz of gold and $4.20/oz of silver (2021 - $416/oz of gold and $4.16/oz of silver), subject to
a 1% annual inflationary adjustment. In 2022, approximately 55,000 oz of gold and 983,000 oz of silver (2021 -
approximately 59,000 oz of gold and 874,000 oz of silver) were subject to the terms of the streaming agreement.
b) Chapada mine
The Company assumed the following streaming agreements with Sandstorm Gold Ltd. (“Sandstorm”) and Altius
Minerals Corporation (“Altius”) when the Chapada mine was acquired:
Sandstorm is entitled to purchase the lesser of 3.9 million pounds (“Mlbs”) or 4.2% of the payable copper produced
annually from Chapada at 30% of the market price. The percentage of payable copper is subject to two reduction
thresholds. Once an aggregate of 39 Mlbs has been delivered, the percentage of payable copper reduces to 3.0%.
Upon delivery of 50 Mlbs of copper in aggregate, the percentage of payable copper reduces to 1.5% for the
remaining life of mine. In 2022, approximately 3.9 Mlbs (2021 – 3.7 Mlbs) were delivered under this agreement.
The deferred revenue is being recognized as copper is delivered to Sandstorm under the contract.

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 29 -
Altius is entitled to purchase 3.7% of the payable copper produced from Chapada at 30% of the market price. The
percentage of payable copper is subject to two reduction thresholds. In the event of a specified expansion at
Chapada, the percentage of payable copper reduces to 2.65%. Also, upon delivery of 75 Mlbs of copper in
aggregate, the percentage of payable copper reduces to 1.5% for the remaining life of mine. In 2022,
approximately 3.7 Mlbs (2021 – 3.6 Mlbs) were delivered under this agreement. The deferred revenue is being
recognized as copper is delivered to Altius under the contract.
c) Neves-Corvo mine
The Company has an agreement to deliver all of the silver contained in concentrate produced from its Neves-Corvo
mine to Wheaton Precious Metals Corporation (“Wheaton”). The Company received an up-front payment which
was deferred and is being recognized in revenue as silver is delivered under the contract. The Company receives
the lesser of a fixed payment (subject to annual inflationary adjustments) and the market price per ounce of silver.
During 2022, the Company received approximately $4.42/oz of silver (2021 - $4.38/oz). The agreement extends to
the earlier of September 2057 and the end of mine life.
d) Zinkgruvan mine
The Company has an agreement with Wheaton to deliver all of the silver contained in concentrate from its
Zinkgruvan mine. The Company received an up-front payment which was deferred and is being recognized in
revenue as silver is delivered under the contract and receives the lesser of a fixed payment (subject to annual
inflationary adjustments) and the market price per ounce of silver. During 2022, the Company received
approximately $4.53/oz of silver (2021 - $4.46/oz). The agreement includes a guaranteed minimum delivery of 40.0
million oz of silver over an initial 25 year term. If at the end of the initial term the Company has not met its
minimum obligation, it must pay $1.00 for each ounce of silver not delivered. An aggregate total of approximately
31.4 million oz has been delivered since the inception of the contract in 2004.
13.RECLAMATION AND OTHER CLOSURE PROVISIONS
Reclamation and other closure provisions relating to the Company's mining operations are as follows:

|  | Reclamation provisions |  | Other closure provisions |  | Total
| Balance, December 31, 2020 | $399,838 |  | $44,407 |  | $444,245
| Accretion | 9,108 |  | — |  | 9,108
| Changes in estimate | 71,361 |  | 1,558 |  | 72,919
| Changes in discount rate | (56,992) |  | — |  | (56,992)
| Payments | (4,695) |  | (4,480) |  | (9,175)
| Effects of foreign exchange | (11,654) |  | (2,396) |  | (14,050)
| Balance, December 31, 2021 | 406,966 |  | 39,089 |  | 446,055
| Accretion | 14,344 |  | — |  | 14,344
| Changes in estimate | 45,766 |  | 11,374 |  | 57,140
| Changes in discount rate | (43,667) |  | — |  | (43,667)
| Payments | (11,175) |  | (4,728) |  | (15,903)
| Effects of foreign exchange | (11,214) |  | (907) |  | (12,121)
| Balance, December 31, 2022 | 401,020 |  | 44,828 |  | 445,848
| Less: current portion | 18,579 |  | 4,971 |  | 23,550
| Long-term portion | $382,441 |  | $39,857 |  | $422,298

The Company expects these liabilities to be settled between 2023 and 2062. The reclamation provisions are
discounted using current market pre-tax discount rates which range from 2.0% to 13.5% (December 31, 2021 - 0.2% to
10.6%).

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 30 -
14.SHARE CAPITAL
(a)Authorized and issued shares
Authorized share capital consists of an unlimited number of voting common shares with no par value and one
special non-voting share with no par value. As at December 31, 2022, there were 770,746,531 fully paid voting
common shares issued (2021 - 734,987,154 shares). The special non-voting share is not issued and outstanding.
(b)Share units
The Company has a Share Unit Plan (“SU Plan”) which provides for share unit awards (“SUs”) to be granted by the
Board of Directors to certain employees of the Company. The maximum number of SUs that are issuable under
the SU Plan is 14,000,000. An SU is a unit representing the right to receive one common share (subject to
adjustments) issued from treasury.
The number and terms of SUs awarded will be determined by the Board of Directors based on the closing market
price on the TSX of the Company’s common shares on the date of the grant. The Company uses the fair value
method of accounting for the recording of SU grants to employees and officers.
i)Time-vesting SUs
During 2022, the Company granted 392,904 time-vesting SUs to employees and officers that expire in 2025.
These SUs vest three years from the grant date with the number of SUs being fixed, and with no vesting
conditions other than service. The fair value of the time-vesting SUs are based on the market value of the
shares on the date of the grant and an estimated forfeiture rate of approximately 11% (2021 - 11%). The
weighted average fair value per time-vesting SU granted during 2022 wa s C$11.38 (2021 - C$14.92). The
Company recorded share-based compensation expense of $3.1 million for 2022 (2021 - $5.9 million) with a
corresponding credit to contributed surplus related to time-vesting SUs. As at December 31, 2022, there
was $2.6 million (2021 - $3.8 million) of unamortized stock-based compensation expense related to time-
vesting SUs.
ii)P erformance-vesting SUs
During 2022, the Company granted 114,675 performance-vesting SUs to officers that expire in 2025. These
SUs vest three years from the grant date with the number of SUs being variable, which can range from zero
to 229,350 contingent upon achieving applicable performance vesting conditions. The fair value of the
performance-vesting SUs are based on a Monte Carlo model and an estimated forfeiture rate of
approximately 11% (2021 - 11%). The weighted average fair value per performance-vesting SU granted
during 2022 was C$13.52 (2021 - C$18.83). The Company recorded share-based compensation expense of
$0.3 million for 2022 (2021 - $1.3 million) with a corresponding credit to contributed surplus related to
performance-vesting SUs. As at December 31, 2022, there was $0.7 million (2021 - $0.9 million) of
unamortized stock-based compensation expense related to performance-vesting SUs.
During 2022, 1,222,797 common shares (2021 - 686,416) were issued as a result of SUs being vested.
(c)Stock options
The Company’s Stock Option Plan provides for stock option awards to be granted by the Board of Directors to
certain employees of the Company. The term of any stock options granted under the Stock Option Plan may not
exceed seven years from the date of grant. The maximum number of stock options that are issuable under the
Stock Option Plan is 42,000,000. The vesting requirements are established by the Board of Directors.

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 31 -
The Company uses the fair value method of accounting for the recording of stock options. Under this method, the
Company recorded a share-based compensation expense of $4.4 million for 2022 (2021 - $7.6 million) with a
corresponding credit to contributed surplus.
During 2022, the Company granted 1,830,020 stock options to employees and officers that expire in 2029. The
stock options vest over three years from the grant date. The Black-Scholes option pricing model used to
determine the fair value of the stock options at the date of the grant assumed a dividend yield, risk-free interest
rate of 1.59% to 2.87% (2021 - 0.33% to 0.74%), expected life of 4.4 years (2021 - 4.4 years) and expected price
volatility of 47% (2021 - 46% to 47%). Volatility is determined using the historical daily volatility over the expected
life of the options. A forfeiture rate of approximately 11% was applied (2021 - 11%). The weighted average fair
value per stock option granted during 2022 was C$3.47 (2021 - C$5.30). As at December 31, 2022, there was $2.1
million of unamortized stock-based compensation expense (2021 - $3.1 million) related to stock options.
During 2022, 3,202,107 common shares (2021 - 2,724,988) were issued as a result of stock options being
exercised.
(d)Replacement Options
On April 28, 2022, the Company issued 2,513,866 Replacement Options upon closing of the Transaction as
discussed in Note 3.
During 2022, 2,064,037 common shares (2021 - nil) were issued as a result of Replacement Options being
exercised.
The continuity of share-based payments outstanding is as follows:

|  | Number of SUs | Number of Replacement Options | Weighted average exercise price (C$) | Number of options | Weighted average exercise price (C$)
| Outstanding, December 31, 2020 | 2,534,100 | — | — | 9,676,245 | 7.11
| Granted | 569,250 | — | — | 1,985,500 | 14.91
| Forfeited | (96,184) | — | — | (283,832) | 10.72
| Exercised | (686,416) | — | — | (2,724,988) | 7.00
| Outstanding, December 31, 2021 | 2,320,750 | — | — | 8,652,925 | 8.82
| Granted | 507,579 | — | — | 1,830,020 | 11.54
| Josemaria acquisition (Note 3) | — | 2,513,866 | 4.99 | — | —
| Forfeited | (292,476) | (14,598) | 5.05 | (821,841) | 11.08
| Exercised | (1,222,797) | (2,064,037) | 4.97 | (3,202,107) | 7.25
| Outstanding, December 31, 2022 | 1,313,056 | 435,231 | 5.09 | 6,458,997 | 10.08

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 32 -
The following table summarizes options outstanding as at December 31, 2022:

|  |  | Outstanding Options |  | Exercisable Options
| Range of exercise prices (C$) |  | Number of Options Outstanding | Weighted Average Remaining Contractual Life (Years) | Weighted Average Exercise Price (C$) |  | Number of Options Exercisable | Weighted Average Remaining Contractual Life (Years) | Weighted Average Exercise Price (C$)
| 4 to 6.99 |  | 1,140,633 | 1.3 | 6.57 |  | 1,115,633 | 1.2 | 6.58
| 7 to 9.99 |  | 2,205,827 | 1.8 | 7.28 |  | 1,424,164 | 1.6 | 7.39
| 10 to 12.99 |  | 1,451,203 | 6.2 | 11.54 |  | 22,533 | 6.2 | 11.54
| 13 to 15.99 |  | 1,661,334 | 5.2 | 14.91 |  | 823,271 | 5.2 | 14.91
|  |  | 6,458,997 | 3.6 | 10.08 |  | 3,385,601 | 2.4 | 8.98

The following table summarizes Replacement Options outstanding as at December 31, 2022:

|  |  | Outstanding and Exercisable Replacement Options
| Range of exercise prices (C$) |  | Number of Options Exercisable | Weighted Average Remaining Contractual Life (Years) | Weighted Average Exercise Price (C$)
| 4 to 4.99 |  | 161,475 | 2.1 | 4.45
| 5 to 5.99 |  | 226,549 | 2.1 | 5.26
| 6 to 6.99 |  | 47,207 | 1.0 | 6.46
|  |  | 435,231 | 2.0 | 5.09

(e) Basic and diluted weighted average number of shares outstanding

|  | December 31, 2022 | December 31, 2021
| Basic weighted average number of shares outstanding | 762,518,753 | 736,789,666
| Effect of dilutive securities | 1,075,300 | 2,510,747
| Diluted weighted average number of shares outstanding | 763,594,053 | 739,300,413
| Antidilutive securities | 423,200 | 416,050

The effect of dilutive securities relates to in-the-money outstanding stock options and SUs.
Upon closing the Josemaria Resources acquisition (Note 3), the Company issued 40,031,936 common shares to
the former shareholders of Josemaria Resources with a fair value of $369.2 million.
(f)Dividends
The Company declared dividends in the amount of $275.8 million (2021 - $229.8 million), or C$0.47 per share, for
the year ended December 31, 2022 (2021 - C$0.39 per share).
(g)Normal course issuer bid
In 2021, the Company obtained approval from the TSX for the renewal of its normal course issuer bid (“NCIB”) to
purchase up to 63,762,574 common shares between December 9, 2021 and December 8, 2022. Daily purchases
(other than pursuant to a block purchase exemption) on the TSX under the NCIB were limited to a maximum of
565,398 common shares. In connection with the NCIB renewal, the Company entered into an automatic share
purchase plan (“ASPP”) with its broker to allow for the purchase of common shares at times when the Company
ordinarily would not be active in the market due to trading blackout periods, insider trading rules or otherwise.

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 33 -
In December 2022, the Company obtained approval from the TSX for the renewal of its NCIB to purchase up to
65,313,173 common shares between December 9, 2022 and December 8, 2023. Daily purchases (other than
pursuant to a block purchase exemption) on the TSX under the NCIB are limited to a maximum of 875,921
common shares. In connection with the NCIB renewal, the Company entered into an ASPP with its broker under
the same terms as the ASPP entered in December 2022.
For the year ended December 31, 2022, 10,761,500 shares were purchased under the NCIB at an average price of
C$7.21 per share for total consideration of $59.4 million. All of the common shares purchased were cancelled.
For the year ended December 31, 2021, 4,463,600 shares were purchased under the NCIB at an average price of
C$11.19 per share for total consideration of $40.7 million. All of the common shares purchased were cancelled.
15.NON-CONTROLLING INTERESTS
As part of its Candelaria segment, the Company owns 80% of Compañia Contractual Minera Candelaria S.A. and
Compañia Contractual Minera Ojos del Salado S.A.’s copper mining operations and supporting infrastructure in Chile.
The remaining 20% ownership stake is held by Sumitomo Metal Mining Co., Ltd. and Sumitomo Corporation. The
continuity of non-controlling interests balance is disclosed in the consolidated statements of changes in equity.
Summarized financial information for Candelaria mine and Ojos mine on a 100% basis is as follows:

| Summarized Balance Sheets |  |  |  |  |  |  |
|  | Candelaria mine |  | Ojos mine
| For the years ended December 31 | 2022 |  | 2021 |  | 2022 |  | 2021
| Total current assets | $557,565 |  | $505,300 |  | $77,177 |  | $103,683
| Total non-current assets | $2,818,053 |  | $2,705,657 |  | $169,985 |  | $170,865
| Total current liabilities | $299,605 |  | $306,339 |  | $83,083 |  | $48,370
| Total non-current liabilities | $564,228 |  | $522,387 |  | $39,463 |  | $43,976
| Summarized Statements of Earnings and Comprehensive Income (Loss) |  |  |  |  |  |
|  | Candelaria mine |  | Ojos mine
| For the years ended December 31 | 2022 |  | 2021 |  | 2022 |  | 2021
| Total revenue | $1,364,274 |  | $1,618,214 |  | $180,726 |  | $293,916
| Net earnings (loss) | $209,346 |  | $391,506 |  | $(7,586) |  | $103,371
| Net comprehensive income (loss) | $209,173 |  | $392,533 |  | $(7,586) |  | $103,371

During the year ended December 31, 2022, Candelaria mine and Ojos mine declared distributions of $10.0 million
(2021 - $29.0 million) and $10.0 million (2021 - $42.0 million) to non-controlling interests, respectively. As at
December 31, 2021, $15.0 million of the $29.0 million in distributions declared to non‐controlling interests by
Candelaria mine was paid in January 2022.
The above information is presented before inter-company eliminations.

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 34 -
16.REVENUE
The Company's analysis of revenue from contracts with customers, segmented by product, is as follows:

|  | 2022 |  | 2021
| Revenue from contracts with customers: |  |  |
| Copper | $2,018,678 |  | $2,257,571
| Zinc | 379,755 |  | 294,612
| Nickel | 351,385 |  | 273,532
| Gold | 225,716 |  | 249,845
| Lead | 61,245 |  | 44,560
| Silver | 42,654 |  | 38,963
| Other | 50,811 |  | 65,605
|  | 3,130,244 |  | 3,224,688
| Provisional pricing adjustments on concentrate sales | (89,016) |  | 104,077
| Revenue | $3,041,228 |  | $3,328,765
| The Company's geographical analysis of revenue from contracts with customers, segmented based on the destination of product, is as follows:
|  | 2022 |  | 2021
| Revenue from contracts with customers: |  |  |
| Japan | $838,383 |  | $667,478
| Spain | 537,268 |  | 607,005
| Canada | 497,030 |  | 449,370
| Finland | 277,465 |  | 290,774
| Germany | 241,795 |  | 300,157
| China | 167,576 |  | 119,611
| Chile | 125,362 |  | 400,854
| Other | 445,365 |  | 389,439
|  | 3,130,244 |  | 3,224,688
| Provisional pricing adjustments on concentrate sales | (89,016) |  | 104,077
| Revenue | $3,041,228 |  | $3,328,765

Revenue from contracts with customers for the year ended December 31, 2022 includes a decrease of $0.1 million
(2021 - increase of $9.3 million) due to variable consideration adjustments.
17.PRODUCTION COSTS
The Company's production costs are comprised of the following:

|  | 2022 |  | 2021 1
| Direct mine and mill costs | $1,490,348 |  | $1,217,139
| Transportation | 121,262 |  | 102,159
| Royalties | 49,748 |  | 51,955
| Total production costs | $1,661,358 |  | $1,371,253

1 2021 direct mine and mill costs previously included the $65.1 million inventory write-down related to the Chapada long-term
stockpile. These have now been presented on a separate line in the consolidated statement of earnings.

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 35 -
During the year ended December 31, 2022, the Company incurred $20.0 million (2021 - $7.1 million) related to union
negotiation settlements at the Company’s Candelaria operations in Chile, which were reported in direct mine and mill
costs.
18.EMPLOYEE BENEFITS
The Company's employee benefits recognized in the consolidated statement of earnings are comprised of the
following:

|  | 2022 |  | 2021
| Production costs |  |  |
| Wages and benefits | $296,428 |  | $287,816
| Retirement benefits | 1,655 |  | 1,656
| Share-based compensation | 2,325 |  | 2,310
|  | 300,408 |  | 291,782
| General and administrative expenses |  |  |
| Wages and benefits | 25,568 |  | 22,756
| Retirement benefits | 875 |  | 804
| Share-based compensation | 5,133 |  | 12,351
| Departure benefit (Note 26) | 1,891 |  | 3,879
|  | 33,467 |  | 39,790
| General exploration and business development |  |  |
| Wages and benefits | 8,030 |  | 3,976
| Retirement benefits | 35 |  | 34
| Share-based compensation | 345 |  | 180
|  | 8,410 |  | 4,190
| Total employee benefits | $342,285 |  | $335,762

19.GENERAL EXPLORATION AND BUSINESS DEVELOPMENT
The Company's general exploration and business development costs are comprised of the following:

|  | 2022 |  | 2021
| Project development | $107,306 |  | $7,431
| General exploration | 36,750 |  | 36,736
| Corporate development | 297 |  | 771
| Total general exploration and business development | $144,353 |  | $44,938

Project development expenses include costs related to the Josemaria Project and study costs related to potential
expansion projects at the Company's operating sites. During the fourth quarter of 2022, the Company began to
capitalize the Josemaria Project's development costs (Note 2 (iv)).

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 36 -
20.FINANCE INCOME AND COSTS
The Company's finance income and costs are comprised of the following:

|  | 2022 |  | 2021
| Interest income | $4,211 |  | $613
| Deferred revenue finance costs | (36,621) |  | (27,872)
| Accretion expense on reclamation provisions | (14,344) |  | (9,108)
| Interest expense and bank fees | (10,196) |  | (6,025)
| Lease liability interest | (1,434) |  | (1,494)
| Other | (5,801) |  | 2,499
| Total finance costs, net | $(64,185) |  | $(41,387)
| Finance income | $4,211 |  | $3,112
| Finance costs | (68,396) |  | (44,499)
| Total finance costs, net | $(64,185) |  | $(41,387)

21. OTHER INCOME AND EXPENSE
The Company's other income and expense are comprised of the following:

| 2022 |  | 2021
Foreign exchange and trading gains on equity investments (a) | $93,132 |  | $—
Unrealized gain on revaluation of foreign currency contracts (Note 23) | 62,971 |  | —
Gain on disposal of subsidiary (b) | 18,829 |  | —
Realized gain on foreign currency contracts (Note 23) | 5,980 |  | —
Revaluation of marketable securities | 5,484 |  | 7,094
Ojos del Salado sinkhole expenses (c) | (63,271) |  | —
Foreign exchange loss (d) | (15,359) |  | (8,920)
Revaluation of Chapada derivative liability | (4,280) |  | (3,836)
Insurance settlement (e) | — |  | 16,000
Loss on disposal of assets | (5,125) |  | (6,634)
Other expense | (3,654) |  | (14,814)
Total other income (expense), net | $94,707 |  | $(11,110)

a) Foreign exchange and trading gains on equity investments include the changes in fair value of equity instruments
supporting capital funding for the Josemaria Project.
b) Pursuant to the terms of the original sale agreement of Rio Narcea Recursos, S.A. in 2016, the Company received
a $16.8 million payment in the first quarter of 2022 that was contingent on a historical tax assessment which has
now been closed. The remaining amount relates to the reversal of a provision originally recorded at the time of
disposal.
c)Ojos del Salado sinkhole expenses include a $5.0 million write-down of mineral properties, plant and equipment,
a $38.0 million provision for future expected remediation costs and potential fines, and $20.4 million of costs
incurred directly related to the sinkhole near the Company's Ojos del Salado operations.

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 37 -
d)During the year, the Company reclassified a $3.8 million gain (2021 - $16.2 million loss) previously recorded in
accumulated other comprehensive loss to foreign exchange loss, in the consolidated statement of earnings, on
the wind up of subsidiary exploration companies.
e)As a result of a mill interruption at Chapada in 2020, the Company recognized a $16.0 million insurance
settlement in 2021.
22.CURRENT AND DEFERRED INCOME TAXES

|  | 2022 |  | 2021
| Current tax expense: |  |  |
| Current tax on net taxable earnings | $150,861 |  | $277,194
| Adjustments in respect of prior years | (883) |  | (3,556)
|  | 149,978 |  | 273,638
| Deferred tax (recovery) expense: |  |  |
| Origination and reversal of temporary differences | (41,629) |  | 78,521
| Utilization and recognition of previously unrecognized tax losses and temporary differences | 638 |  | (11)
| Temporary differences for which no deferred asset was recognized | 25,641 |  | 13,538
|  | (15,350) |  | 92,048
| Total tax expense | $134,628 |  | $365,686

The tax on the Company's earnings before income tax differs from the amount that would arise using the weighted
average rate applicable to earnings of the consolidated entities as follows:

|  | 2022 |  | 2021
| Earnings excluding income taxes | $598,161 |  | $1,244,987
| Combined basic federal and provincial rates | 26.5% |  | 26.5%
| Income taxes based on Canadian statutory income tax rates | $158,513 |  | $329,922
| Effect of different tax rates in foreign jurisdictions | 11,569 |  | 61,176
| Tax calculated at domestic tax rates applicable to earnings in the respective countries | 170,082 |  | 391,098
| Tax effects of: |  |  |
| Non-deductible and non-taxable items (a) | (37,398) |  | (28,864)
| Adjustments in respect of prior years (b) | (11,112) |  | (15,386)
| Tax losses and temporary differences for which no deferred income tax asset was recognized | 25,641 |  | 13,538
| Foreign exchange impact on temporary differences and other translation amounts (c) | (20,733) |  | 1,673
| Utilization and recognition of previously unrecognized temporary differences | (2,346) |  | (11)
| Tax recovery associated with government grants and other tax credits (d) | (10,029) |  | (7,888)
| Net withholding tax on accrued interest and dividends received | 19,526 |  | 12,371
| Other | 997 |  | (845)
| Total tax expense | $134,628 |  | $365,686

The Company operates in tax jurisdictions that have tax rates ranging from 20.6% to 35.0%.

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 38 -
a)Included in the non-taxable items of $37.4 million in 2022 is the impact of the tax depletion allowance at Eagle of
$17.2 million (2021 - $15.5 million).
b)Temporary difference true-ups of $7.4 million at Chapada (2021 - $5.4 million) and $1.9 million at Eagle (2021 -
$3.1 million) are included in the adjustments in respect of prior years.
c)The revaluation of non-monetary assets in Brazil and the translation of deferred tax liabilities from BRL to USD
resulted in a net decrease to deferred tax expense of $20.7 million (2021 - net increase to deferred tax expense
of $1.7 million).
d)In 2022, Neves-Corvo recorded $6.5 million in investment tax credits (2021 - $5.8 million).

| Deferred tax liabilities, net |  |  |
|  | December 31, 2022 |  | December 31, 2021
| Deferred tax assets | $3,837 |  | $12,050
| Deferred tax liabilities | (709,602) |  | (738,917)
| Deferred tax liabilities, net | $(705,765) |  | $(726,867)

Net deferred tax liabilities of $665.2 million (2021 - $739.8 million) are expected to be settled after 12 months and net
deferred tax liabilities of $40.5 million (2021 - $12.9 million net deferred tax assets) are expected to be settled within
12 months.
The movement in deferred income tax assets and liabilities during the year, without taking into consideration the
offsetting of balances within the same jurisdiction, is as follows:

|  | As at December 31, 2021 | (Expensed)/ recovered | Equity adjustment | Effects of foreign exchange | As at December 31, 2022
| Deferred tax assets: |  |  |  |  |
| Loss carryforwards | $50,452 | $(44,828) | $— | $— | $5,624
| Reclamation and other closure provisions | 66,722 | (789) | — | (803) | 65,130
| Deferred revenue | 11,132 | 2,076 | — | (1,079) | 12,129
| Future tax credits | — | 6,485 | — | 78 | 6,563
| Leases | 4,894 | 458 | — | (87) | 5,265
| Sinkhole provision | — | 6,631 | — | — | 6,631
| Other | 2,929 | (4,143) | — | 5,716 | 4,502
| Deferred tax liabilities: |  |  |  |  |
| Mineral properties, plant and equipment | (704,362) | 42,988 | — | 4,399 | (656,975)
| Right-of-use assets | (5,284) | (30) | — | 106 | (5,208)
| Provisions | (21,189) | (10) | (2,434) | — | (23,633)
| Mining royalty taxes | (20,047) | (2,323) | — | — | (22,370)
| Long-term inventory | (107,578) | 34,212 | — | — | (73,366)
| Fair value gains | (4,138) | (10,957) | — | — | (15,095)
| Foreign currency contracts | — | (14,170) | — | — | (14,170)
| Pension provision | (398) | (250) | — | (144) | (792)
|  | $(726,867) | $15,350 | $(2,434) | $8,186 | $(705,765)

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 39 -

|  | As at December 31, 2020 | (Expensed)/ recovered | Equity adjustment | Effects of foreign exchange | As at December 31, 2021
| Deferred tax assets: |  |  |  |  |
| Loss carryforwards | $171,408 | $(120,849) | $— | $(107) | $50,452
| Reclamation and other closure provisions | 59,793 | 8,087 | — | (1,158) | 66,722
| Deferred revenue | 10,343 | 1,743 | — | (954) | 11,132
| Future tax credits | 12,178 | (11,745) | — | (433) | —
| Leases | 7,246 | (2,352) | — | — | 4,894
| Other | 3,535 | (3,131) | — | 2,525 | 2,929
| Deferred tax liabilities: |  |  |  |  |
| Mineral properties, plant and equipment | (719,350) | 8,823 | — | 6,165 | (704,362)
| Right-of-use assets | (7,909) | 2,625 | — | — | (5,284)
| Provisions | (22,644) | 3,820 | (2,365) | — | (21,189)
| Mining royalty taxes | (18,917) | (1,130) | — | — | (20,047)
| Long-term inventory | (122,176) | 14,598 | — | — | (107,578)
| Fair value gains | (11,867) | 7,729 | — | — | (4,138)
| Pension provision | — | (266) | — | (132) | (398)
|  | $(638,360) | $(92,048) | $(2,365) | $5,906 | $(726,867)

Deferred tax assets are recognized for tax loss carry-forwards and other temporary differences to the extent that the
realization of the related tax benefit through future taxable profits is probable. The Company determined that it is
probable that sufficient future taxable profits will be available to allow the benefit of the deferred tax assets to be
utilized.
The Company did not recognize deferred tax assets of $21.6 million (2021 - $24.6 million) arising from the provision for
reclamation at Eagle and $6.5 million (2021 - $13.5 million) in respect of losses amounting to $24.6 million (2021 -
$52.6 million) that can be carried forward against future taxable income.
23.FINANCIAL INSTRUMENTS
Derivatives instruments
The Company uses derivative contracts for foreign currencies as part of its risk management strategy to mitigate
exposure to foreign currencies.

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 40 -
During the year, t he Company entered into foreign currency options and forward contracts intended to limit the
foreign exchange exposure against the EUR, BRL, CLP, SEK and CAD. Positions taken represent approximately 50% to
90% of forecasted foreign currency denominated after-tax attributable operating and capital expenditures in 2022,
2023 and 2024. The foreign exchange contracts have not been designated as hedges for purposes of hedge
accounting, and are measured at fair value with changes in fair value recognized in the consolidated statement of
earnings. The following table shows the contract positions and their expiry dates:

| Expired in |  | Expiring throughout:
Foreign currency forward contracts | 2022 |  | 2023 |  | 2024
EUR/USD forwards |  |  |  |  |
Average contract price | 0.99 |  | 1.01 |  | 1.02
Position (EUR millions) | 77 |  | 249 |  | 155
USD/SEK forwards |  |  |  |  |
Average contract price | 11.1 |  | 11.1 |  | 10.9
Position (SEK millions) | 434 |  | 1,236 |  | 900

| Expired in |  | Expiring throughout:
Foreign currency zero cost collar contracts | 2022 |  | 2023 |  | 2024
USD/BRL collars |  |  |  |  |
Average contract price | 5.00/6.40 |  | 5.00/6.40 |  | 5.00/6.40
Position (BRL millions) | 319 |  | 1,142 |  | 974
USD/CLP collars |  |  |  |  |
Average contract price | 900/1,050 |  | 900/1,050 |  | 900/1,050
Position (CLP millions) | 100,846 |  | 246,513 |  | 143,426
USD/CAD collars |  |  |  |  |
Average contract price | 1.35/1.39 |  | 1.33/1.38 |  | 1.30/1.40
Position (CAD millions) | 77 |  | 36 |  | 19

T he Company’s unrealized and realized gains and losses on foreign currency derivative contracts are as follows:

| 2022 |  | 2021
Unrealized gain on derivative financial instruments: |  |  |
Foreign currency contracts | $62,971 |  | $—
Realized gain on derivative financial instruments |  |  |
Foreign currency contracts | 5,980 |  | —
Total unrealized and realized gain on foreign currency derivative contracts: | $68,951 |  | $—

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 41 -
A summary of the fair values of unsettled derivative contracts recorded on the consolidated balance sheet is as
follows:

| December 31, 2022 |  | December 31, 2021
Foreign currency contracts: |  |  |
Current asset position | $43,521 |  | $—
Non-current asset position | 25,111 |  | —
Current liability position | — |  | —
Non-current liability position | 5,524 |  | —
Other contracts: |  |  |
Chapada derivative current liability | 24,423 |  | 24,973
Chapada derivative non-current liability | 22,352 |  | 42,522

During 2022, the Company paid the third $25.0 million tranche of the derivative liability related to the Chapada
acquisition (Note 24).
Fair values of financial instruments
The Company’s financial assets and financial liabilities have been classified into categories that determine their basis of
measurement. The following table shows the carrying values, fair values and fair value hierarchy of the Company’s
financial instruments as at December 31, 2022 and December 31, 2021:

|  |  |  | December 31, 2022 |  | December 31, 2021
|  | Level |  | Carrying value | Fair value |  | Carrying value | Fair value
| Financial assets |  |  |  |  |  |  |
| Fair value through profit or loss |  |  |  |  |  |  |
| Restricted funds | 1 |  | $50,195 | $50,195 |  | $54,753 | $54,753
| Trade receivables (provisional) | 2 |  | 403,300 | 403,300 |  | 519,351 | 519,351
| Marketable securities and equity investments | 1 |  | 12,075 | 12,075 |  | 10,493 | 10,493
| Foreign currency contracts | 2 |  | 68,632 | 68,632 |  | — | —
|  |  |  | $534,202 | $534,202 |  | $584,597 | $584,597
| Financial liabilities |  |  |  |  |  |  |
| Amortized cost |  |  |  |  |  |  |
| Debt | 3 |  | $170,162 | $170,162 |  | $5,125 | $5,125
| Fair value through profit or loss |  |  |  |  |  |  |
| Pricing provisions on concentrate sales | 2 |  | $5,006 | $5,006 |  | $— | $—
| Chapada derivative liability | 2 |  | 46,775 | 46,775 |  | 67,495 | 67,495
| Foreign currency contracts | 2 |  | 5,524 | 5,524 |  | — | —
|  |  |  | $57,305 | $57,305 |  | $67,495 | $67,495

Fair values of financial instruments are determined by valuation methods depending on hierarchy levels as defined
below:
Level 1 – Quoted market price in active markets for identical assets or liabilities.

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 42 -
Level 2 – Inputs other than quoted market prices included within Level 1 that are observable for the assets or
liabilities, either directly (i.e. observed prices) or indirectly (i.e. derived from prices).
Level 3 – Inputs for the assets or liabilities are not based on observable market data.
The Company calculates fair values based on the following methods of valuation and assumptions:
Marketable securities/equity investments/restricted funds – The fair value of investments in shares is determined
based on the quoted market price.
Trade receivables/pricing provisions on concentrate sales – The fair value of trade receivables that contain
provisional pricing sales arrangements are valued using quoted forward market prices. The Company recognized
negative pricing adjustments of $89.0 million in revenue during the year ended December 31, 2022 (2021 -
$104.1 million positive pricing adjustments).
Foreign currency contracts – The fair value of these derivatives are determined by the counterparties to the
contracts and are assessed by Management using pricing models based on active market prices.
Chapada derivative liability – The fair value of this derivative is determined using a valuation model that
incorporates such factors as metal prices, metal price volatility, expiry date, and risk-free interest rate.
Debt – The fair values approximate carrying values as the interest rates are comparable to current market rates.
The carrying values of certain financial instruments maturing in the short-term approximate their fair values.
These financial instruments include cash and cash equivalents, trade and other receivables other than those
provisionally priced, and trade and other payables other than those provisionally priced, which are classified as
amortized cost.
24. COMMITMENTS AND CONTINGENCIES
a)The Company has capital commitments of $483.7 million on various initiatives, of which $382.0 million is
expected to be paid during 2023.
b)The Chapada acquisition included contingent consideration of up to $125.0 million payable over five years from
the acquisition date if certain gold price thresholds are met. The Company paid the first $25.0 million tranche in
2020, the second $25.0 million tranche in 2021, and the third $25.0 million tranche in 2022. The maximum
contingent consideration has since been reduced to $50.0 million over the next two years as follows:
•a $10.0 million payment per year if the gold price averages at least $1,350/oz in any sequential annual
period,
•a $10.0 million payment per year if the gold price averages at least $1,400/oz in any sequential annual
period,
•a $5.0 million payment per year if the gold price averages at least $1,450/oz in any sequential annual period.
As part of the Chapada acquisition, the Company has been provided with a tax indemnity for any tax liabilities
that may arise for periods prior to the date of the acquisition. For identified tax claims existing at the date of
acquisition, the Company has agreed to be liable for up to the first $20.1 million (BRL 101.5 million). While it is
uncertain, no material liabilities have been accrued as the Company believes material payment is not likely due to
the nature of the tax claims.
c)The following summarizes total tax exposure under two contradictory assessments received from the Chilean
Internal Revenue Service (“IRS”). Given that the assessments relate to the same issue, the Company’s potential
exposure is expected to be limited to one of the below scenarios:

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

- 43 -
i)For taxation years 2014 through 2019, the IRS issued tax assessments denying tax deductions related to
interest expenses arising from an intercompany debt. The total of all assessments amounts to $265.3 million
($145.6 million in taxes plus interest and penalties of $119.7 million). While not yet assessed by the IRS, a
similar position could deny tax refunds of approximately $3.1 million and additional penalty taxes of $90.6
million, excluding possible additional penalties and interest, related to taxation years 2020 through to
December 31, 2022. In 2022, the Chilean IRS refunded $62.3 million of the potential $6 5.4 million in tax
refunds arising from the tax deductions related to the intercompany debt for taxation years 2020 and 2021.
The Company maintains its position that the assessments are inconsistent with Chilean tax law and,
therefore, without merit.
ii)On the same intercompany debt for taxation years 2016 through 2019, the Company has also received
assessments from the IRS seeking additional withholding taxes, including interest and penalties, on interest
payments made. The total of all assessments amounts to $246.6 million ($114.2 million in taxes plus interest
and penalties of $132.4 million). While not yet assessed by the IRS, a similar position taken on interest
payments could result in approximately $56.6 million in additional withholding taxes, excluding possible
penalties and interest, related to the taxation years 2020 through to December 31, 2022. The Company
believes it has applied the correct withholding tax rate according to the Canada-Chile tax treaty.
The Company has filed claims against the tax assessments related to taxation years 2014 to 2019. No tax expense
has been accrued for these assessments as the Company believes its original filing position is in compliance with
tax regulations and intends to vigorously defend this position.
d)On July 30, 2022, a sinkhole was detected near the Company's Ojos del Salado operations in Chile. On October 5,
2022, the Company received an infraction notice covering four alleged violations of its environmental permit for
the Alcaparrosa underground mine, which forms part of the Company's Ojos del Salado operations. The Company
is reviewing the infraction notice and will respond within the required time periods.
e)The Company may be involved in legal proceedings arising in the ordinary course of business, including the
actions described below. The potential amount of the liability with respect to such legal proceedings is not
expected to materially affect the Company’s financial position. The Company believes the claims to be without
merit and the loss, if any, cannot be determined at this time for all contingencies. The Company has accordingly
not accrued any amounts related to the litigations below (unless otherwise noted). The Company intends to
vigorously defend these claims.
Two proposed class actions were filed against the Company and certain officers and directors. The first, in the
province of Ontario, on December 7, 2017 (Markowich v. Lundin Mining Corporation et al) and a second
overlapping action in the province of Québec on January 18, 2018 (Prévreau v. Lundin Mining Corporation et al).
Both proposed class actions seek damages of $129.0 million (C$175.0 million) and punitive damages of
$7.4 million (C$10.0 million) and assert various statutory and other claims related to, among other things, alleged
misrepresentations and/or failure to make timely disclosure of material information about the Company’s
business and operations and, in particular, the operations of the Candelaria Mine and a rock slide at the
Candelaria Mine on October 31, 2017. The proposed Ontario class action asserts claims on behalf of a putative
class comprising persons who acquired securities of the Company between October 25, 2017, and November 29,
2017, whereas the proposed Québec class action asserts claims on behalf of only such persons who are resident
or domiciled in Québec. In June 2018, counsel to the plaintiffs in the Québec action agreed to a stay (i.e.,
indefinite cessation) of that proceeding in light of the Ontario action. On Augu st 30, 2018, the Québec Superior
Court, on consent of the parties, stayed the Québec action indefinitely. On September 2, 2020, the plaintiff in the
Ontario action served motion materials for leave and certification with the Ontario Superior Court of Justice. On
January 6, 2022, the Ontario Superior Court of Justice denied the leave application and declined the motion for
certification and subsequently ordered costs of approximately $0.5 million (C$0.7 million) be paid to the
Company. The plaintiffs have appealed the court’s decision, which appeal was heard on October 25, 2022 with a
decision expected in the first quarter of 2023.

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

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25. SEGMENTED INFORMATION
The Company is engaged in mining, exploration and development of mineral properties, primarily in Chile, Brazil, USA,
Argentina, Portugal and Sweden. Operating segments are reported in a manner consistent with the internal reporting
provided to executive management who act as the chief operating decision-maker. Executive management are
responsible for allocating resources and assessing performance of the operating segments.

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

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For the year ended December 31, 2022 |  |  |  |  |  |  |  |
| Candelaria | Chapada | Eagle | Josemaria | Neves-Corvo | Zinkgruvan | Other | Total
| Chile | Brazil | USA | Argentina | Portugal | Sweden |  |
Revenue | $1,317,223 | $477,927 | $520,472 | $— | $433,486 | $292,120 | $— | $3,041,228
Cost of goods sold |  |  |  |  |  |  |  |
Production costs | (697,171) | (324,096) | (193,003) | — | (329,232) | (115,553) | (2,303) | (1,661,358)
Depreciation, depletion and amortization | (284,259) | (49,865) | (79,523) | (633) | (101,807) | (36,739) | (1,924) | (554,750)
Inventory write-down | — | (62,546) | — | — | — | — | — | (62,546)
Gross profit (loss) | 335,793 | 41,420 | 247,946 | (633) | 2,447 | 139,828 | (4,227) | 762,574
General and administrative expenses | — | — | — | — | — | — | (53,879) | (53,879)
General exploration and business development | (15,272) | (11,846) | (3,564) | (100,493) | (5,919) | (3,221) | (4,038) | (144,353)
Finance (costs) income | (27,660) | (18,137) | (1,954) | 1,312 | (5,191) | (7,677) | (4,878) | (64,185)
Income from equity investment in associate | — | — | — | — | — | — | 3,297 | 3,297
Other (expense) income | (43,700) | (13,930) | 266 | 68,886 | 36,017 | 23,883 | 23,285 | 94,707
Income tax (expense) recovery | (85,270) | 27,840 | (28,458) | — | 3,898 | (34,413) | (18,225) | (134,628)
Net earnings (loss) | $163,891 | $25,347 | $214,236 | $(30,928) | $31,252 | $118,400 | $(58,665) | $463,533
Capital expenditures | $389,731 | $104,711 | $16,413 | $171,108 | $103,186 | $48,144 | $9,610 | $842,903
Total non-current assets 1 | $2,974,567 | $1,312,488 | $242,212 | $902,037 | $1,148,595 | $246,131 | $29,207 | $6,855,237
1 Non-current assets include long-term inventory, mineral properties, plant and equipment, investment in associates and goodwill.

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

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For the year ended December 31, 2021 |  |  |  |  |  |  |
| Candelaria | Chapada | Eagle | Neves-Corvo | Zinkgruvan | Other | Total
| Chile | Brazil | USA | Portugal | Sweden |  |
Revenue | $1,591,109 | $567,386 | $462,488 | $479,347 | $228,435 | $— | $3,328,765
Cost of goods sold |  |  |  |  |  |  |
Production costs | (580,819) | (226,821) | (169,508) | (291,110) | (102,025) | (970) | (1,371,253)
Depreciation, depletion and amortization | (289,090) | (46,097) | (81,493) | (63,168) | (41,114) | (1,802) | (522,764)
Inventory write-down | — | (65,025) | — | — | — | — | (65,025)
Gross profit (loss) | 721,200 | 229,443 | 211,487 | 125,069 | 85,296 | (2,772) | 1,369,723
General and administrative expenses | — | — | — | — | — | (52,196) | (52,196)
General exploration and business development | (16,011) | (16,109) | (922) | (3,506) | (4,516) | (3,874) | (44,938)
Finance (costs) income | (28,655) | (15,407) | (1,054) | 13,749 | (5,931) | (4,089) | (41,387)
Income from equity investment in associate | — | — | — | — | — | 24,895 | 24,895
Other income (expense) | 2,335 | 10,329 | (715) | (1,148) | 4,929 | (26,840) | (11,110)
Income tax expense | (222,318) | (72,451) | (33,808) | (22,732) | (13,251) | (1,126) | (365,686)
Net earnings (loss) | $456,551 | $135,805 | $174,988 | $111,432 | $66,527 | $(66,002) | $879,301
Capital expenditures | $312,388 | $52,275 | $16,279 | $109,276 | $41,325 | $554 | $532,097
Total non-current assets 1 | $2,874,405 | $1,324,400 | $309,682 | $1,216,207 | $272,007 | $31,885 | $6,028,586
1 Non-current assets include long-term inventory, mineral properties, plant and equipment, investment in associates and goodwill.

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

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26.RELATED PARTY TRANSACTIONS
a)Transactions with associates - The Company may enter into transactions related to its investment in associate.
These transactions are entered into in the normal course of business and on an arm’s length basis.
b)Key management personnel - The Company has identified its directors and senior officers as its key management
personnel. Employee benefits for key management personnel are as follows:

|  | 2022 |  | 2021
| Wages and salaries | $7,327 |  | $8,372
| Pension benefits | 175 |  | 194
| Share-based compensation | 2,286 |  | 8,486
| Departure benefit | 1,891 |  | 3,879
|  | $11,679 |  | $20,931

There was a $1.1 million reversal of share-based compensation expense for the year ended December 31, 2022
due to senior officer departures.
27.MANAGEMENT OF FINANCIAL RISK
The Company’s financial instruments are exposed to certain financial risks, including credit risk, liquidity risk, foreign
exchange risk, commodity price risk and interest rate risk.
(a)Credit risk
The exposure to credit risk arises through the failure of a customer or another third party to meet its contractual
obligations to the Company. The Company believes that its maximum exposure to credit risk as at December 31,
2022 is the carrying value of its trade and other receivables.
Concentrate produced at the Company’s Candelaria, Chapada, Eagle, Neves-Corvo and Zinkgruvan mines is sold
to a number of strategic customers with whom the Company has established long-term relationships. Limited
amounts of concentrate are occasionally sold to commodity traders, under prevailing market conditions.
Payment terms vary and provisional payments are normally received shortly after vessel arrival, in accordance
with industry practice, with final settlement up to six months following the date of shipment. Sales to commodity
traders are made against secure payment terms such as a letter of credit, pre-payment or payment against
scanned shipping documents. Credit worthiness of customers is reviewed by the Company on an annual basis or
more frequently, if warranted, and those not meeting certain credit criteria may be asked to make 100%
provisional payment up-front or provide an acceptable payment instrument such as a letter of credit. The failure
of any of the Company’s strategic customers could have a material adverse effect on the Company’s financial
position. For the year ended December 31, 2022, the Company has four customers that individually account for
more than 10% of the Company’s total sales. The Company's largest customers represent approximately 22%,
18%, 16% and 12% of total sales (2021 - 17%, 16%, 16% and 14%).
With respect to credit risk arising from the other financial assets of the Company, which comprise cash and cash
equivalents, restricted funds, marketable securities and equity investments, and foreign currency contracts, the
Company’s exposure to credit risk arises from default of the counterparty, with a maximum exposure equal to
the carrying amount of these instruments. The Company limits material counterparty credit risk on these assets
by dealing with financial institutions with long-term credit ratings with Standard & Poor’s of at least A, or the
equivalent thereof with Moody’s, or those which have been otherwise approved.

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

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(b)Liquidity risk
The Company has in place a planning and forecasting process to help determine the funds required to support
the Company’s normal operating requirements on an ongoing basis. The Company ensures that there is sufficient
available capital to meet its short-term business requirements, taking into account its anticipated cash flows from
operations and its holdings of cash and cash equivalents. The Company has a revolving credit facility in place to
assist with meeting its cash flow needs as required (Note 11).
The maturities of the Company’s non-current liabilities are disclosed in Note 11 and Note 24. All current liabilities
are due to be settled within one year.
(c)Foreign exchange risk
The Company operates internationally and is exposed to foreign exchange risk arising from various currencies,
primarily with respect to CLP, €, BRL, SEK and ARS.
The Company’s risk management strategy is to manage cash flow risk related to foreign denominated cash flows.
The Company is exposed to currency risk related to changes in rates of exchange between foreign denominated
balances and the functional currencies of the Company’s principal operating subsidiaries. The Company’s
revenues are denominated in US dollars, while most of the Company’s operating and capital expenditures are
denominated in the local currencies. The Company may, at its discretion, use forward or derivative contracts to
manage its exposure to foreign currencies, the use of which is subject to appropriate approval procedures. A
significant change in the currency exchange rates between the US dollar and foreign currencies could have a
material effect on the Company’s net earnings and other comprehensive income.
The following table illustrates the estimated impact a 10% US dollar change against the €, CLP, SEK, and BRL
would have on pre-tax earnings as a result of translating the Company's foreign denominated financial
instruments:

Currency |  | Change |  | Effect on Pre-Tax Earnings |  | Change |  | Effect on Pre-Tax Earnings
€ |  | +10% |  | - $(31,343) |  | -10% |  | + $38,309
CLP |  | +10% |  | - $(35,589) |  | -10% |  | + $46,150
SEK |  | +10% |  | - $(16,508) |  | -10% |  | + $20,177
BRL |  | +10% |  | - $(19,307) |  | -10% |  | + $26,077

The impact of a US dollar change against the € and SEK by 10% at December 31, 2022 would have a $124.4
million (2021 - $133.6 million) impact on OCI.
(d)Commodity price risk
The Company is subject to price risk associated with fluctuations in the market prices for metals. A significant
change in metal prices could have a material effect on the Company’s revenues.
The Company may, at its discretion, use forward or derivative contracts to manage its exposure to changes in
commodity prices, the use of which is subject to appropriate approval procedures. The Company is also subject to
price risk on the final settlement of its provisionally priced trade receivables.

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

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The following table illustrates the sensitivity of the Company’s risk on final settlement of its provisionally priced
trade receivables:

| Metal |  | Payable metal |  | Provisional price on December 31, 2022 |  | Change |  | Effect on Revenue ($millions) |
| Copper |  | 89,887 t |  | $3.79/lb |  | +/-10% |  | +/-75.1 |
| Zinc |  | 36,350 t |  | $1.35/lb |  | +/-10% |  | +/-10.8 |
| Gold |  | 39 koz |  | $1,823/oz |  | +/-10% |  | +/-7.1 |
| Nickel |  | 4,939 t |  | $13.60/lb |  | +/-10% |  | +/-14.8 |

(e)Interest rate risk
The Company’s exposure to interest rate risk arises from the interest rate impact on its cash and cash
equivalents, restricted funds, and debt facilities. Certain of the Company's debt facilities include a variable rate
component. The interest rate on the Company’s revolving credit facility of $18.0 million references Term SOFR,
and the Somincor commercial paper program of $26.7 million (€25.0 million) and equipment line of credit of $2.4
million (€2.2 million) reference EURIBOR.
As at December 31, 2022, holding all other variables constant, a 1% change in the interest rate would result in an
approximate $0.4 million change in interest expense on an annualized basis (2021 - nil).
28.MANAGEMENT OF CAPITAL RISK
The Company’s objectives when managing its capital include ensuring a sufficient combination of positive operating
cash flows and debt and equity financing in order to meet its ongoing capital development and exploration programs
in a way that maximizes the shareholder return given the assumed risks of its operations while, at the same time,
safeguarding the Company’s ability to continue as a going concern. The Company considers the following items as
capital: excess cash balances, share capital reserve and debt and lease liabilities.
Through the ongoing management of its capital, the Company will modify the structure of its capital based on
changing economic conditions in the jurisdictions in which it operates. In doing so, the Company may issue new shares
or debt, buy back issued shares, or pay off any outstanding debt. The Company continuously monitors its capital
structure to determine the appropriateness of paying dividends.
Planning, including life-of-mine plans, annual budgeting and controls over major investment decisions are the primary
tools used to manage the Company’s capital. Updates are made as necessary to both capital expenditure and
operational budgets in order to adapt to changes in risk factors of proposed expenditure programs and market
conditions within the mining industry.
29. SUPPLEMENTARY CASH FLOW INFORMATION

|  |  | 2022 |  | 2021
| Changes in non-cash working capital items consist of: |  |  |  |
| Trade and income taxes receivable, inventories, and other current assets |  | $(52,520) |  | $(270,388)
| Trade and income taxes payable, and other current liabilities |  | (63,536) |  | 268,252
|  |  | $(116,056) |  | $(2,136)
| Operating activities included the following cash payments: |  |  |  |
| Income taxes paid |  | $304,232 |  | $129,987

LUNDIN MINING CORPORATION
Notes to consolidated financial statements
For the years ended December 31, 2022 and 2021
(Tabular amounts in thousands of US dollars, except for shares and per share amounts)

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