Lundin Mining’s Vicuña Study Charts Path to World‑Class Copper District
President's Day Sale - 70% Off
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
The latest announcement is out from Lundin Mining ( (TSE:LUN) ).
Lundin Mining has released the results of an integrated preliminary economic assessment for its Vicuña project, combining the Filo del Sol and Josemaria deposits in a staged development that targets long-life, large-scale copper, gold, and silver production. The study outlines a three-stage build‑out that starts with an initial open‑pit sulphide mill at Josemaria, adds leachable oxides and an SX/EW plant at Filo del Sol, and culminates in a major concentrator expansion and sulphide development supported by new desalination and pipeline infrastructure.
According to the study, Vicuña could rank among the world’s top five copper, gold, and silver mines, with average annual output of 400,000 tonnes of copper, 700,000 ounces of gold, and 22 million ounces of silver over the first 25 full years, and peak copper production exceeding 500,000 tonnes per year. The project carries an initial life of more than 70 years, first‑quartile cash costs driven by substantial by‑product credits, and a base‑case after‑tax NPV of $9.5 billion, rising sharply under higher metal price assumptions.
The staged approach is designed to manage development risk, fund later phases from operating cash flow, and allow continued optimization of the district while generating average free cash flow of about $2.2 billion annually during the first 25 years. Lundin Mining, which recently secured commitments to upsize its credit facility to $4.5 billion, says it is fully funded for the initial construction phase and is targeting a potential sanctioning decision by year‑end, with detailed engineering, project readiness work, and access road upgrades now moving ahead.
More about Lundin Mining
Lundin Mining is a diversified base metals miner focused on copper, gold, and silver, with operations and development projects that position it as an emerging large-scale copper producer. Through its 50/50 Vicuña Corp. joint venture with BHP, the company is advancing the Vicuña district, which includes the Filo del Sol and Josemaria deposits in South America, as a cornerstone growth asset aimed at elevating Lundin into the ranks of the world’s top copper producers.
See more data about LUN stock on TipRanks’ Stock Analysis page.
