Category: 3. Business

United Airlines on Wednesday said it had suspended flights due to a widespread tech issue, and anticipates additional flight delays in the evening.

“Due to a technology issue, we are holding United mainline flights at their departure airports,” United said in a statement. “We expect additional flight delays this evening as we work through this issue. Safety is our top priority, and we’ll work with our customers to get them to their destinations.”

According to the Federal Aviation Administration’s website, ground stops had been issued for United Airlines flights at several US airports including its hubs in Chicago, Denver, Houston, Newark and San Francisco.

The ground stop does not affect United Express flights, and any flight already in the air will continue to its destination, the airline said.

As of Wednesday evening, tracking site FlightAware reported that United had delayed 28%, or 876, of that day’s flights.

As frustrated passengers took to social media, United apologized for the disruption and assured people their teams were “working to resolve the widespread system error as quickly as possible”.

United Airlines has halted flights at major airports across the US over a “technology issue”, according to the company.

A ground stop was issued for the company’s mainline flights from departure airports, causing issues at airports including Chicago, Denver, Houston, San Francisco and New Jersey, the US Federal Aviation Administration’s website shows.

“We expect additional flight delays this evening as we work through this issue,” United told the BBC’s US partner CBS News.

“Safety is our top priority, and we’ll work with our customers to get them to their destinations,” the company said.

The BBC has contacted United Airlines for comment.

Flights that are already in the air will continue to their destination, the company told CBS News. It added that regional flights were not impacted but could be delayed because of traffic jams from the ground stops.

Over 700 United flights had been delayed as of 21:00 EDT (2:00 BST), according to flight tracking site FlightAware.

KARACHI:

A study by the Lahore University of Management Sciences (LUMS) has called for urgent policy reforms to unlock the full potential of Pakistan’s gig and digital economy, using foodpanda as a case study. The report, titled “Economic Impact Assessment of foodpanda in Pakistan”, not only quantifies the platform’s substantial economic contribution – estimated at $1.2 billion for 2023-2024 – but also underscores the need for a more supportive regulatory environment.

The report highlights the platform’s expansive role in job creation, SME enablement, and digital inclusion through its network of over 50,000 registered riders and partnerships with 13,000+ restaurants, many of which operate in the informal sector.

While the findings underline foodpanda’s growing influence on Pakistan’s gig and digital economy, the study emphasises the urgent need for regulatory reforms to maintain and expand the impact of such platforms. LUMS recommends that the government preserve flexibility in labour laws to support gig and freelance workers who value autonomy and flexible hours. The study cautions that imposing rigid structures could reduce employment opportunities, particularly for youth and low-income groups.

The report also stresses that informal food vendors should not be excluded from the digital economy, urging the government instead to collaborate with food delivery platforms to gradually formalise these businesses without disrupting their operations or incomes.

Internet infrastructure was highlighted as another major concern. Since digital platforms rely on reliable and fast connectivity, service disruptions lead to order delays, customer dissatisfaction, and financial losses. The report urges the government to invest in broadband access, infrastructure upgrades, and incentives for private sector investment, especially in underserved areas.

LUMS also flagged concerns over the proposed Personal Data Protection Bill. Provisions for local data storage, strict consent rules, and cross-border data restrictions could raise costs for digital platforms that use global cloud services. The report warns these rules may deter global investors and hinder scalability.

The study also proposes a one-window licensing system for delivery riders. This would cover ID verification, vehicle checks, and licensing under one platform to streamline compliance, reduce administrative burdens, and enhance safety and accountability in the sector.

To support the wider e-commerce ecosystem, LUMS recommends reducing import tariffs on technology and providing targeted incentives to local digital startups.

The study found strong ripple effects across food, hospitality, manufacturing, transport, and retail. In FY 2023-24, foodpanda enabled Rs75 billion in restaurant revenue, created jobs, contributed Rs9.76 billion in taxes, and empowered 50,000+ riders and entrepreneurs through fintech.

In June 2025, Japan hosted the LNG Producer-Consumer Conference 2025 in Tokyo, bringing together representatives from 30 countries to address global energy stability. At the event, liquefied natural gas (LNG) was framed as a “driver of clean economic growth” in Asia, reaffirming Japan’s emphasis on regional fossil fuel development. 

However, Japan’s fossil-focused diplomacy stands at a crossroads. While it has long promoted LNG as the cornerstone of Asia’s economic stability, shifting global dynamics — such as China’s dominance in renewable energy supply chains and the growing uncertainty around the United States (U.S.) trade policy — call for strategic change.

Southeast Asia faces dual challenges: renewable manufacturing hubs are exposed to tariff shocks and supply chain disruptions, while countries urgently need renewables and grid infrastructure investment to meet economic and climate goals. As the region’s largest infrastructure investor, Japan is strategically positioned to accelerate, rather than delay, Southeast Asia’s clean energy transition.

By pivoting to support renewable energy deployment and manufacturing capacity in Southeast Asia, Japan can tackle fossil fuel dependence, reduce reliance on China-centric supply chains, and spur regional economic growth. Matching its LNG leadership with equally ambitious action on clean energy would cement Japan’s role as a driver of Southeast Asia’s sustainable future.

Japan’s fossil fuel-heavy investment profile in Southeast Asia

Japan’s energy investments in Southeast Asia heavily favor fossil fuels. Between 2013 and 2022, Japan’s public financial institutions – including the Japan Bank for International Cooperation (JBIC), the Japan International Cooperation Agency (JICA), and the Nippon Export and Investment Insurance (NEXI) – provided around USD41 billion for fossil fuel projects in Asia, nearly five times the USD9 billioninvested in clean energy such as wind and solar. By July 2024, Japanese companies supported over 30 LNG-related projects in the Asia-Pacific region.

Japan’s Asia Zero Emission Community (AZEC) initiative, launched in 2023, includes renewables in its framework but essentially emphasizes LNG, ammonia co-firing in coal plants, and carbon capture. While Japan labels these as “transition tools,” such investments risk locking the region into prolonged fossil fuel dependence. Since AZEC’s inception, the country has signed over 150 Memoranda of Understanding (MOUs), with 35% supporting fossil fuel technologies, while only 7% focus explicitly on wind and solar, according to data compiled by research firm Zero Carbon Analytics. 

Southeast Asia needs to increase annual clean energy investment to USD190 billion by 2035 and invest USD300 billion in grid development to meet climate goals. As part of AZEC’s Asia Energy Transition Initiative, Japan committed USD10 billion in blended public–private financing for the region’s energy transition. Yet much of this funding supports hydrogen, ammonia, and other technologies with limited immediate decarbonization impact, risking the perpetuation of regional fossil fuel dependence rather than enabling a true energy transition.

Why has Japan been reluctant to invest in renewables?

Japan’s hesitation to invest in renewable energy domestically and across Southeast Asia stems from structural and strategic factors.

First, Japanese policymakers believe that fossil fuels, particularly LNG, are crucial for the development of emerging Asian economies. At the LNG Producer-Consumer Conference 2025, Japan’s Minister of Economy, Trade and Industry described LNG as “a foundation of global stability and economic growth, especially in Asia”, emphasizing its role as a “realistic transition fuel” for sustainable development. He also highlighted LNG’s role in enabling industrial growth across Asia.

Second, Japan’s overseas fossil fuel investment strategy focuses on increasing its “fossil fuel self-development ratio”, which measures the share of imported oil and gas from Japanese-owned upstream assets. Despite declining domestic energy demand and climate concerns, Japan aims to raise this ratio from 37% in fiscal year (FY) 2023 to over 50% by 2030 and 60% by 2040. Between 2013 and 2023, Japanese public financial institutions invested USD93 billion in overseas oil and gas projects, with 45% dedicated specifically to upstream oil and gas development, against their commitment to end fossil-fuel financing by the end of 2022.

Third, the government has expressed concern regarding China’s dominance in renewable energy supply chains. China controls over 80% of solar photovoltaic (PV) manufacturing and contributes more than 60% of new global renewable capacity, while Japan’s PV share has fallen below 1%. Japan’s global market share in lithium-ion batteries declined from 40% in 2015 to 21% in 2020 for electric vehicle (EV) batteries, and from 27% to 5% for storage batteries. Chinese and Korean companies now lead both categories.

To avoid direct competition in China-dominated sectors, Japan focuses on developing emerging technologies — such as hydrogen, ammonia, carbon capture, utilization, and storage (CCUS), and e-methane — where it holds a competitive advantage. This strategic choice aims to establish a domestic, independent energy supply chain without deepening reliance on China.

U.S. trade disruptions and the Southeast Asian clean energy shock

Recent decisions by the U.S. to impose high tariffs on Asian economies — including increased duties on clean energy imports from the region introduced by previous administrations — have disrupted global supply chains and created significant uncertainty for Southeast Asian renewable energy exporters. 

The Institute for Energy Economics and Financial Analysis (IEEFA) has reported that although 88% of U.S. solar panel imports came from Southeast Asia in 2024, producers in countries such as Vietnam, Malaysia, and Thailand face margin compression, cancelled orders, and delayed investment decisions from foreign buyers. These disruptions weaken the region’s manufacturing base and reduce the economic viability of new capacity expansion, especially as companies reassess exposure to volatile export markets.

Simultaneously, LNG markets remain geopolitically volatile, adding a second layer of risk for Asian economies already dependent on energy imports. The resulting uncertainty undermines long-term energy planning for both importing and exporting countries in the region.

This convergence of shocks presents a unique opportunity for Japan. By pivoting its investment and industrial strategy to support renewable energy deployment and supply chain development in Southeast Asia, Japan could address three interconnected challenges: fossil fuel overreliance, regional supply insecurity, and geopolitical risks stemming from overdependence on China or the U.S.

To seize this opportunity, Japan should:

1. Create a renewable self-development ratio

Just as Japan tracks fossil fuel supply security through its self-development ratio, it should establish a similar metric for renewable energy. This would help incentivize upstream and midstream investment in Southeast Asian clean energy manufacturing.

2. Increase domestic renewables targets to anchor regional demand

Japan’s slow deployment of renewables weakens demand signals for its suppliers. Increasing its 2030 and 2040 renewables targets, alongside grid and market reforms, would create a stable domestic market for Southeast Asian-made panels, turbines, and batteries.

3. Champion global support for Southeast Asian renewable growth

Leveraging its influence at the Asian Development Bank and experience in regional development finance, Japan should lead efforts within international fora and financial institutions to mobilize funding and capacity-building for Southeast Asian clean energy manufacturing and infrastructure.

4. Reorient AZEC and power sector engagement toward renewables

Japan wields considerable influence over Southeast Asian power development plans through AZEC, bilateral dialogues, and infrastructure finance. This authority should be used to promote renewable-based systems, not further entrench fossil fuels or unproven technologies like co-firing ammonia in coal plants.

By Emily Bary

Trump vows to impose roughly 100% tariffs on semiconductors unless companies build in the U.S. Is it the latest installment of the ‘TACO’ trade?

Earlier this year, Nvidia pledged to make AI supercomputers in the U.S.

President Donald Trump threatened steep tariffs for the semiconductor industry if they don’t build in the U.S., but major chip stocks are largely shrugging off his latest comments.

Trump’s Wednesday remarks were somewhat vague, with Trump saying he “will be putting a tariff of approximately 100% on chips and semiconductors” but declining to provide details on when those rules would go into effect.

He also said there would be exceptions for companies “building” in the U.S., without going into detail about how much domestic manufacturing these companies actually have to be doing.

“If you’re building in the United States of America, there’s no charge,” he said. “Even though you’re building and you’re not producing yet in terms of the big numbers of jobs and all of the things that you’re building, if you’re building, there will be no charge.”

Trump made his comments alongside Apple Inc. (AAPL) Chief Executive Tim Cook, who pledged $100 billion more in U.S. investments on top of the $500 billion the company had previously committed over a multiyear span. As part of the latest round, Apple will spend $2.5 billion to manufacture cover glass for iPhones and watches at a Corning Inc. (GLW) facility in Kentucky.

See more: Apple’s stock gains as new announcement with Trump could help its tariff problem

While Trump got to hail the investment as a win for domestic iPhone production, analysts remain skeptical that the latest pledge will drive a dramatic change in Apple’s iPhone manufacturing process.

“The reality continues to be that producing iPhones in the U.S. is unrealistic given the cost structure vs. Asia/India and remains a fairy tale concept in our view,” Wedbush’s Daniel Ives wrote on Wednesday.

Meanwhile, Nvidia Corp. shares (NVDA) rose 0.6% in Wednesday’s extended session, while shares of Advanced Micro Devices Inc. (AMD) gained 1%. Marvell Technology Inc. stock (MRVL) was fractionally higher, while Broadcom Inc. (AVGO), and Qualcomm Inc. (QCOM) edged slightly lower.

Nvidia has already made a U.S. investment pledge, saying in April that it would domestically produce up to $500 billion of artificial-intelligence infrastructure, including AI supercomputers, over four years. While the company is still producing other products overseas, the pledge could land favorably with Trump and chip-sector investors may reason that other big companies will follow suit if they haven’t already made public commitments of their own.

Shares Texas Instruments Inc. (TXN) and GlobalFoundries Inc. (GFS), two chip companies with more established U.S. presences already, gained about 2% and 8%, respectively, while Intel Corp.’s stock (INTC) rose 0.7% in Wednesday’s after-hours action.

Investors may also see the latest commentary factoring into another installment of the “TACO” trade – an acronym for “Trump always chickens out.” The term captures a sentiment by some on Wall Street that Trump makes draconian threats but ultimately backs off.

-Emily Bary

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

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  08-06-25 2025ET
Copyright (c) 2025 Dow Jones & Company, Inc.

Lundin Mining Reports Second Quarter 2025 Results

August 6, 2025

VANCOUVER, BC, Aug. 6, 2025 /CNW/ – (TSX: LUN) (Nasdaq Stockholm: LUMI) Lundin Mining Corporation (“Lundin Mining” or the “Company”) today reported its second quarter 2025 financial results. Unless otherwise stated, results are presented in United States dollars on a 100% basis.

Jack Lundin, President and CEO commented, “Our portfolio of high-quality assets continued to generate solid results during the quarter keeping us firmly on track to achieve the midpoint of our production guidance. This resulted in over $930 million in revenue and $211 million in free cash flow from operations¹. Consolidated copper cash costs decreased to $1.92/lb, down 7% from last quarter. Importantly, our record safety performance in Q1 continued into Q2, with the Company achieving the lowest Total Recordable Injury Frequency Rate recorded in the past ten years.

“With the successful $1.4 billion sale of our European assets, we paid down our term loan and reduced net debt excluding lease liabilities¹ to $135 million as at the end of Q2. At our Capital Markets Day (“CMD”) event in June, we showcased medium-term brownfield expansion opportunities that complement the long-term growth potential of the Vicuña Project. The Vicuña Project team continues to progress with parallel studies supporting a multi-phased development plan and an integrated technical report remains on track for Q1 2026. Our five-year financial outlook provided at the CMD event demonstrates our ability to fund these transformational growth initiatives while maintaining shareholder returns in the form of share buybacks and dividends. We look forward to continuing to build off the solid first half performance for the remainder of 2025.”

Second Quarter Operational and Financial Highlights

Strong operational results drove earnings in the second quarter supported by continued higher gold prices. The Company’s balance sheet was also strengthened from the sale of its European assets. 2025 production guidance was reaffirmed in the quarter and cash cost guidance was improved.

• Copper Production: Production of 80,073 tonnes of copper in the second quarter from continuing operations.
• Other Production: During the quarter, 38,118 ounces of gold and 2,713 tonnes of nickel were produced.
• Revenue: $937.2 million in the second quarter from continuing operations with a realized copper price¹ of $4.40 /lb and a realized gold price¹ of $3,478 /oz.
• Net Earnings and Adjusted Earnings¹: During the quarter, net earnings from continuing operations attributable to shareholders of the Company was $126.1 million ($0.15 per share) and adjusted earnings from continuing operations was $98.2 million ($0.11 per share).
• Adjusted EBITDA¹: $394.7 million was generated from continuing operations for the quarter.
• Cash Generation: Cash provided by continuing operations was $314.6 million and free cash flow from operations¹ was $211.1 million, which was impacted by significant cash income taxes paid at Candelaria in the quarter due to timing of payments and increased taxable income.
• Growth: During the quarter the Company outlined strategic aspirations to become a global top-ten copper producer and achieve copper production of over 500,000 tonnes per year and gold production of over 550,000 ounces per year:
  • On April 16, 2025 Lundin Mining completed the sale of Neves-Corvo and Zinkgruvan to Boliden AB (“Boliden”) for cash proceeds of $1,314.6 million, net of cash disposed and transaction costs, and subsequently repaid in full its term loan of $1,150 million and repaid $170.0 million of amounts drawn on its revolving credit facility.
  • During the quarter the Company announced a Mineral Resource estimate (the “Vicuña Mineral Resource”) for the Vicuña Project which highlighted one of the world’s largest copper, gold and silver Mineral Resources, with the potential to support a globally ranked mining complex. The Company continues to advance the integrated study of the Filo del Sol and Josemaria deposits, which is expected to be completed in Q1 2026. The resource contains:
    • Contained copper of 13 million tonnes (“Mt”) Measured and Indicated at 0.35% copper (“M&I”) and 25 Mt Inferred at 0.32% copper.
    • Contained gold of 32 million ounces (“Moz”) M&I at 0.27 g/t gold and 49 Moz Inferred at 0.19 g/t gold.
    • Contained silver of 659 Moz M&I at 5.6 g/t silver and 808 Moz Inferred at 3.2 g/t silver.
  • On June 18, 2025, the Company hosted a Capital Markets Day, which outlined medium-term, low-cost brownfield expansion opportunities alongside the Vicuña Project which offers transformational long-term growth potential. The Company also provided guidance on financial performance for the next five years that outlined its ability to fund future growth plans.
• 2024 Sustainability Report Published: The Company continues to demonstrate its commitment to sustainability as an integral part of the Company’s overall strategy for disciplined growth and released its annual 2024 Sustainability report on May 26, 2025.
• Shareholder Returns: A quarterly dividend of $0.0275 per share has been declared. In addition, the Company purchased 4,629,000 common shares during the quarter at an average share price of C$10.91 for total consideration of $36.2 million under its normal course issuer bid. So far during 2025, Lundin Mining has cancelled 13,058,800 common shares at a cost of approximately $104.0 million.
• Outlook: The Company reaffirms it is tracking to full year guidance for production of all metals, including 303,000 – 330,000 tonnes of copper. The Company has further revised cash cost guidance at Chapada which supports its previously lowered overall consolidated cash cost guidance for the Company to $1.95 to $2.15 per pound cash cost. Annual sustaining capital expenditure guidance has remained unchanged with reductions at Caserones being offset by higher capital expenditure at Chapada. Expansionary capital guidance has increased, driven by an increase in the Vicuña Project budget.
• Discontinued Operations: On April 16, 2025, the Company completed the sale of its European assets, Neves-Corvo and Zinkgruvan, to Boliden. The operating results of the Neves-Corvo and Zinkgruvan reporting segments have been classified as net earnings from discontinued operations. Net earnings from discontinued operations for the quarter of $102.4 million includes a gain on disposal of $106.4 million, net of income tax.

Summary Financial Results 

• For the quarter ended June 30, 2025, the Company generated revenue from continuing operations of $937.2 million (Q2 2024 – $878.3 million).
• Gross profit from continuing operations for the quarter of $271.3 million was $42.8 million higher than in the prior year comparable period of $228.5 million. The increase was primarily due to higher sales volume, lower treatment charges, and cost savings from operational efficiencies.
• Net earnings from continuing operations for the quarter of $159.6 million was higher than in the prior year comparable period of $119.4 million. The increase was primarily due to an increase in gross profit combined with lower interest expense due to the repayment of debt in the quarter with cash proceeds received from the sale of the Neves-Corvo and Zinkgruvan operations.
• Adjusted earnings² from continuing operations for the quarter of $98.2 million, increased from $83.4 million primarily as a result of higher gross profit.
• Cash provided by operating activities related to continuing operations for the quarter of $314.6 million represented a decrease of $125.4 million from the prior year comparable period of $440.0 million. The decrease was primarily due to significant cash income taxes paid in the quarter of $168.0 million (Q2 2024 – $47.1 million), primarily at Candelaria, and a reduction in working capital inflows of $111.4 million to $37.4 million from $148.8 million in the prior year comparable period.
• In the quarter, sustaining capital expenditures³ from continuing operations of $115.9 million were lower than in the prior year comparable period of $126.6 million. The reduction was primarily due to lower spending at Candelaria from reduced deferred stripping.
• Expansionary capital expenditures² of $33.7 million in the quarter were lower than $87.1 million in the prior year comparable period due to the formation of Vicuña, a 50/50 joint arrangement with BHP Investments Canada Inc. (“BHP”) (the “Joint Arrangement”), on January 15, 2025. From this date, the Company’s expansionary capital expenditures include 50% of Vicuña’s capital expenditures.
• Free cash flow² from continuing operations for the quarter of $165.0 million was lower than in the prior year comparable period of $226.3 million primarily due to reduced cash provided by operating activities related to continuing operations, partially offset by lower sustaining and expansionary capital expenditures.
• As at August 6, 2025, the Company had cash of approximately $276 million and net debt excluding lease liabilities² of approximately $139 million.

Operational Performance

Total Production

Candelaria (80% owned): Candelaria produced 36,999 tonnes of copper and 20,574 ounces of gold in concentrate on a 100% basis during the quarter. Production in the quarter and year-to-date periods were positively impacted by increased throughput as a result of softer ore feed and higher ball mill runtime due to rescheduled maintenance in the quarter. Mining and processing in the quarter was focused on Phase 11 with some contribution from higher grade areas of Phase 12. Cash cost⁴ of $1.81/lb during the quarter was positively impacted by higher production and favourable foreign exchange.

Caserones (70% owned): Caserones produced 29,290 tonnes of copper and 380 tonnes of molybdenum on a 100% basis during the quarter. Production in the quarter was impacted by lower grades as a result of mine sequencing with mining focused on Phases 6 and 7 as mining of Phase 5 nears completion. Throughput was impacted slightly by a temporary reduction in primary crusher availability during the quarter and copper cathode production benefitted from increased material placed on the leach pad. Cash cost of $2.45/lb in the quarter benefitted from lower mining and milling costs, as well as lower treatment and refining charges and favorable foreign exchange.

Chapada (100% owned): Chapada produced 11,274 tonnes of copper and 17,544 ounces of gold in concentrate during the quarter. Ore from the North and South open pits was mined and processed, resulting in higher grades as compared to the prior quarter which focused on processing ore from the older low-grade stockpile. Cash cost of $0.75/lb was the lowest amount since 2021, and benefitted from higher gold by-product credits as a result of higher realized gold prices, combined with favourable foreign exchange and higher copper sales volume.

Eagle (100% owned): Eagle produced 2,713 tonnes of nickel and 2,510 tonnes of copper in the quarter. Production was impacted by a temporary reduction in equipment availability and reduced throughput as a result of an unplanned four-day power outage. Production gradually increased to normal levels following the completion of ramp rehabilitation at Eagle East in the previous quarter. Nickel cash cost of $2.02/lb was positively impacted by higher by-product credits and higher nickel sales volumes.

Outlook

The Company remains on track to meet annual production guidance for all metals. In light of higher gold prices, the cash cost guidance range for Chapada is further reduced from that announced on June 17, 2025.

At Candelaria, production in the second half of the year is expected to be in line with the first half of the year to meet the Company’s annual production guidance for 2025. Cash costs at Candelaria are tracking to the mid-point of guidance for the full year.

At Caserones, higher copper head grades anticipated in the second half of the year, together with strong cathode production are expected to sustain the Company’s annual production guidance for 2025.

At Chapada, production is expected to be weighted to the second half of the year as copper grades and recoveries in the second half of the year are expected to remain in line with the second quarter. Mine sequencing is expected to result in processing increased fresh ore from the North and South pits and less lower-grade stockpile material. Cash costs are expected to continue to benefit from higher gold prices, leading to a further reduction in annual guidance as compared to that previously announced by the Company (see News Release dated June 17, 2025).

At Eagle, grades and mining rates are expected to normalize in the second half of the year, supporting annual production guidance. Mining at the Eagle deposit is expected to be completed towards the end of the year and higher grade ore from Eagle East will be sourced.

See below for revised 2025 Guidance:

2025 Production and Cash Cost Guidance^a

2025 Capital Expenditure Guidance^a,b,c

2025 Exploration Investment Guidance

Total exploration expenditure guidance for 2025 remains at $40 million, which has potential to increase subject to successful exploration results at the Boulderdash property. Drilling metres (“m”) across the Company have been re-allocated to account for the anticipated earn-in agreement with Talon Metal Corp. (“Talon”) and the Boulderdash property. 

Exploration

During the quarter, exploration activity focused on in-mine and near-mine targets at the Company’s operations. Exploration drilling at Candelaria was focused on Candelaria South (Mariana) and Candelaria Norte with a total of 1,533m completed during the quarter.

At Caserones, drilling started for the year early in the quarter with one rig at the Caserones pit targeting deep high-grade copper breccias and two rigs at Angelica targeting copper sulphides beneath the Angelica oxide deposit, totaling 3,097m.

A total of 5,077m was drilled using two rigs at Chapada. One rig was in the Saúva resource area, focusing on adding high grade resources. A second rig was testing shallow targets outside the Saúva resource area and near-mine targets.

At Eagle, drilling commenced at the Boulderdash property with two rigs targeting potential extensions of the known nickel-copper mineralized intrusion. This drilling is part of an exclusivity agreement with Talon to negotiate an earn-in agreement for the right to acquire up to a 70% ownership interest in the Boulderdash property that is near the Company’s Eagle mine. Total drilling for the quarter was 1,874m, as part of the proposed 10,000m Phase 1 earn-in drilling program.

Vicuña

On January 15, 2025, the Company completed the joint acquisition of all of the issued and outstanding common shares of Filo Corp. not already owned by Lundin Mining and concurrently formed the Joint Arrangement, resulting in the Company indirectly holding a 50% interest in Vicuña Corp., an independently managed joint operation which owns the Josemaria project in Argentina and the Filo del Sol project in Argentina and Chile. BHP indirectly owns the remaining 50% interest in Vicuña.

In 2025, work continues to focus on advancing studies related to the synergies between the Filo del Sol and Josemaria projects, continuing the drilling program, and progressing the development of the Josemaria project.

Activities at Josemaria during the quarter focused on the completion and submission of the Environmental Impact Assessment (“EIA”), power infrastructure planning, and continued advancement of the water program. Mobilization and preparatory works for the northern access road commenced in the quarter with full construction scheduled to begin later in 2025 following the winter season. Work also continued on a multi-phased development concept pertaining to the Josemaria and Filo del Sol deposits. An integrated technical report is targeted to be complete by early 2026.

Government relations activities continued with both the national and provincial governments. In conjunction, discussions on provincial agreements continued to be advanced. Work also progressed in the quarter on an application for the Argentinean Basis Law – Incentive Regime for Large Investments (“RIGI”).

Community investment programs were launched in 2025 with a focus on gender, youth training, cooperative development, and rural livelihoods.

On May 4, 2025, the Company announced an initial Mineral Resource estimate for the Filo del Sol sulphide deposit, an update to the Mineral Resource estimate for the Filo del Sol oxide deposit and an update to the Mineral Resource estimate for the Josemaria deposit, which highlighted the combined Vicuña Project as one of the largest copper, gold and silver resources in the world. Details of the Vicuña Mineral Resource are set out in the “NI 43-101 Technical Report on the Vicuña Project, Argentina and Chile” with an effective date of April 15, 2025 (the “Vicuña Technical Report”).

The Filo del Sol and Josemaria deposits have significant high-grade mineralization that could provide the initial years of mining for the Project.

• Filo del Sol high-grade core at cut-off of 0.75% copper equivalent (“CuEq”): 606 million Mt (M&I) at 1.14% CuEq⁵ (0.74% Cu) for contained metal of 4.5 Mt copper at 0.74%, 9.6 Moz gold at 0.49 g/t and 259 Moz silver at 13.3 g/t.
• Near surface Josemaria high-grade core at cut-off of 0.60% CuEq: 196 Mt (M&I) at 0.73% CuEq⁶ (0.50% Cu) for contained metal of 978 kt copper at 0.50%, 2.4 Moz gold at 0.38 g/t and 11 Moz silver at 1.7 g/t.

The Filo del Sol deposit also contains copper oxide mineralization at surface.

• Lower capital intensity heap leach oxide cap of 434 Mt (M&I) at 0.34% copper (1.5 Mt), 0.28 g/t gold (3.9 Moz) and 2.5 g/t silver (35 Moz)
• High-grade oxides at a cut-off of 0.60% CuEq of 181 Mt (M&I) at 1.05% CuEq⁷(0.50% Cu) for contained metal of 911 kt copper at 0.50%, 2.3 Moz gold at 0.39 g/t and 230 Moz silver at 39.6 g/t.

There is clear potential for expansion. Drilling at Filo del Sol bottomed in mineralization and is open at depth, while drilling at the Flamenco zone approximately 2 kilometers to the south has intercepted mineralization beyond the limits of the current resource pit shell.

During the quarter, the Company spent $32.2 million in capital expenditures compared to $87.1 million in the prior year comparable period. On a year-to-date basis, the Company spent $74.9 million compared to $143.1 million in the prior year comparable period. Reduced spending in both the quarter and year-to-date periods is due to the formation of Vicuña on January 15, 2025. From this date, the Company’s expansionary capital expenditures include 50% of Vicuña’s capital expenditures.

Expansionary Projects

The Company has a number of brownfield expansionary projects that are expected to contribute to medium-term growth in its existing operating asset portfolio. Combined, these opportunities could add 30,000 to 40,000 tonnes of copper production growth and 60,000 to 70,000 ounces of annual gold production through low capital intensity growth projects.

Candelaria

Projects are ongoing to support the mine life extension under the Environmental Impact Assessment (“2040 EIA”). During the quarter, $1.5 million was spent on relocation of electrical transmission lines to allow for expansion of the open pit. During the year-to-date period, $21.7 million of spending also included key equipment deliveries as well as the acquisition of mining rights.

Additionally, the Company is working on an expansion opportunity which re-envisions the previously disclosed Candelaria Underground Expansion Project (“CUGEP”) to a lower-capital intensive option with only marginally lower production rates. The Company forecasts that this could increase underground throughput capacity by approximately 50% to 60% to ~22,000 tonnes per day from current levels of 12,000 to 14,000 tonnes per day and increase annual copper production by approximately 10% or 14,000 tonnes of copper per year. The opportunity includes insourcing of the Company’s underground mining contract, which is anticipated to provide incremental copper production gains from higher productivity rates through improved mechanical availability and higher development rates. Initial recruitment has begun as part of the internalization process, along with training and licensing of blast technicians. It is expected that by mid-2026, the initial underground mining crews will have been internalized. 

Caserones

While cathode production at Caserones has remained strong over recent quarters, the Company is anticipating that through continued improvements with its leaching practices and additional oxide material, incremental future production can be realized in the range of 7,000 to 10,000 tonnes of copper per year.

Chapada

The development of the Saúva deposit, approximately 15 kilometers from the Chapada mine, represents a near mine opportunity to add approximately 15,000 to 20,000 tonnes of copper production per year and 50,000 to 60,000 ounces of gold production per year, representing 50% and 100% production increases respectively. This is expected to be achieved through the installation of additional grinding capacity and by offsetting lower grade material with higher grade ore from Saúva. Permitting and technical work is ongoing to further define the project and the Company anticipates completing a pre-feasibility study by the end of 2025.

Second Quarter 2025 Results Conference Call and Webcast Details 

The Company will hold a webcast and conference call on Thursday, August 7, 2025 to present the results. Webcast and conference call details are provided below. 

Webcast / Conference Call Details:

Date: Thursday, August 7, 2025

Time: 7:00 AM PT | 10:00 AM ET

Listen Only Webcast: WEBCAST LINK

Dial In for Investor & Analyst Q&A: DIAL IN LINK

To participate in the call click on the dial in LINK above and complete the online registration form. Once registered you will receive the dial-in information and a unique PIN to join the call and ask questions.

A replay of the webcast will be available by clicking on the webcast LINK above and will be archived on the Company’s website for a limited period of time.

About Lundin Mining

Lundin Mining is a diversified Canadian base metals mining company with projects or operations focused in Argentina, Brazil, Chile and the United States of America, and primarily producing copper, gold and nickel.

The information in this release is subject to the disclosure requirements of Lundin Mining under the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below on August 6, 2025 at 17:30 Vancouver Time.

Technical Information 

The scientific and technical information in this document pertaining to the Vicuña Mineral Resource is based on the Vicuña Technical Report. The Vicuña Technical Report was prepared by Luke Evans, M.Sc., P.Eng. of SLR Consulting (Canada) Ltd, Paul Daigle, P.Geo. of AGP Mining Consultants Inc., Sean Horan, P.Geo. of Resource Modeling Solutions Ltd., Jeffrey Austin, P.Eng. of International Metallurgical and Environmental Inc., and Bruno Borntraeger, P.Eng. of Knight Piésold Ltd, each of whom reviewed, verified and approved the scientific and technical information pertaining to the Vicuña Mineral Resource that is related to his respective scope of responsibility. Each of the foregoing individuals is a “Qualified Person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and independent of the Company.

The scientific and technical information in this document other than that pertaining to the Vicuña Mineral Resource has been reviewed and approved in accordance with NI 43-101 by Eduardo Cortés, Registered Member (Comisión Calificadora de Competencias en Recursos y Reservas Mineras (Chilean Mining Commission)), Vice President, Mining & Resources at Lundin Mining, a “Qualified Person” under NI 43-101. Mr. Cortés has verified the data disclosed in this document and no limitations were imposed on his verification process.

The Vicuña Mineral Resource estimates are shown on a 100% basis and have an effective date of April 15, 2025. For further information related to the Vicuña Mineral Resource, including the key assumptions, parameters, and methods used to estimate the Vicuña Mineral Resource, risks and cautionary statements, see the Vicuña Technical Report and the Company’s News Release “Lundin Mining Announces Initial Mineral Resource at Filo Del Sol Demonstrating One of the World’s Largest Copper, Gold, and Silver Resources” dated May 4, 2025.

Reconciliation of Non-GAAP Measures  

The Company uses certain performance measures in its analysis. These performance measures have no standardized meaning within generally accepted accounting principles under International Financial Reporting Standards and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. For additional details please refer to the Company’s discussion of non-GAAP and other performance measures in its Management’s Discussion and Analysis for the three and six months ended June 30, 2025 which is available on SEDAR+ at www.sedarplus.com.

Cash Cost per Pound and All-in Sustaining Costs per pound can be reconciled to Production Costs as follows:

 

 

 

Adjusted EBITDA can be reconciled to Net Earnings (Loss) as follows:

Adjusted Earnings and Adjusted EPS can be reconciled to Net Earnings (Loss) Attributable to Lundin Mining Shareholders as follows:

Free Cash Flow from Operations and Free Cash Flow can be reconciled to Cash provided by Operating Activities on the Company’s Condensed Interim Consolidated Statements of Cash Flows as follows:                                                  

Adjusted Operating Cash Flow and Adjusted Operating Cash Flow per Share can be reconciled to Cash Provided by Operating Activities on the Company’s Condensed Interim Consolidated Statements of Cash Flows as follows:

Net debt and net debt excluding lease liabilities can be reconciled to Debt and Lease Liabilities, Current Portion of Debt and Lease Liabilities and Cash and Cash Equivalents on the Company’s Condensed Interim Consolidated Balance Sheets as follows:                               

Cautionary Statement on Forward-Looking Information

Certain of the statements made and information contained herein are “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, business strategies and strategic vision and aspirations and their achievement and timing; the Company’s guidance on the timing and amount of future production and its expectations regarding the results of operations; expected financial performance, including expected costs and expenditures and other financial metrics; expected metal prices and foreign exchange rates; the Company’s growth and optimization initiatives and expansionary projects, and the potential costs, outcomes, results and impacts thereof and timing thereof; permitting requirements and timelines; timing and possible outcome of pending litigation; the results of any Preliminary Economic Assessment, Pre-Feasibility Study, 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 Company’s shareholder distribution policy, including with respect to share buybacks and the payment and amount of dividends and the timing thereof; the development and implementation of the Company’s Responsible Mining Management System; the Company’s liquidity, contractual obligations, commitments and contingencies, and the Company’s capital resources and adequacy thereof; the Company’s ability to comply with contractual and permitting or other regulatory requirements; anticipated exploration and development activities, including potential outcomes, results, impacts and timing thereof; the Company’s integration of acquisitions and expansions and any anticipated benefits thereof, including the anticipated project development and other plans and expectations with respect to the Vicuña Project and the 50/50  joint arrangement with BHP; mineral resource estimation for the Vicuña Project, including the parameters and assumptions related thereto; the operation of Vicuña with BHP; the realization of synergies and economies of scale in the Vicuña district; the development and future operation of the Vicuña Project; the timing and expectations for future studies and technical reports with respect to the Company’s operations and projects, including the Vicuña Project and the Saúva Project; the potential for resource expansion; the terms of the contingent payments in respect of the completion of the sale of the Company’s European assets and expectations related thereto; the earn-in arrangement in respect of the Boulderdash properties, including the entering into of an option agreement in respect thereof and the terms of such option agreement; future actions taken by Talon Metals Corp. and Lundin Mining in relation to the Boulderdash properties and the outcomes and 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 information.

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, gold, zinc, nickel and other metals; anticipated costs; currency exchange rates and interest rates; ability to achieve goals; the prompt and effective integration of acquisitions and the realization of synergies and economies of scale in connection therewith; that the political, economic, permitting and legal environment in which the Company operates will continue to support the development and operation of mining projects; timing and receipt of governmental, regulatory and third party approvals, consents, licenses and permits and their renewals; positive relations with local groups; the accuracy of Mineral Resource and Mineral Reserve estimates and related information, analyses and interpretations; and such other assumptions as set out herein as well as those 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, such information is inherently subject to significant business, economic, political, regulatory and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking information and undue reliance should not be placed on such information. Such factors include, but are not limited to: dependence on international market prices and demand for the metals that the Company produces; political, economic, and regulatory uncertainty in operating jurisdictions, including but not limited to those related to permitting and approvals, nationalization or expropriation without fair compensation, environmental and tailings management, labour, trade relations, and transportation; operating jurisdictions, including but not limited to those related to permitting and approvals, nationalization or expropriation without fair compensation, environmental and tailings management, labour, trade relations, and transportation; risks relating to mine closure and reclamation obligations; health and safety hazards; inherent risks of mining, not all of which related risk events are insurable; risks relating to tailings and waste management facilities; risks relating to the Company’s indebtedness; challenges and conflicts that may arise in partnerships and joint operations; risks relating to development projects, including Filo del Sol and Josemaria; risks that revenue may be significantly impacted in the event of any production stoppages or reputational damage in Chile; the impact of global financial conditions, market volatility and inflation; business interruptions caused by critical infrastructure failures; challenges of effective water management; exposure to greater foreign exchange and capital controls, as well as political, social and economic risks as a result of the Company’s operation in emerging markets; risks relating to stakeholder opposition to continued operation, further development, or new development of the Company’s projects and mines; any breach or failure information systems; risks relating to reliance on estimates of future production; risks relating to litigation and administrative proceedings which the Company may be subject to from time to time; risks relating to acquisitions or business arrangements; risks relating to competition in the industry; failure to comply with existing or new laws or changes in laws; challenges or defects in title or termination of mining or exploitation concessions; the exclusive jurisdiction of foreign courts; the outbreak of infectious diseases or viruses; risks relating to taxation changes; receipt of and ability to maintain all permits that are required for operation; minor elements contained in concentrate products; changes in the relationship with its employees and contractors; the Company’s Mineral Reserves and Mineral Resources which are estimates only; uncertainties relating to inferred Mineral Resources being converted into Measured or Indicated Mineral Resources; payment of dividends in the future; compliance with environmental, health and safety laws and regulations, including changes to such laws or regulations; interests of significant shareholders of the Company; asset values being subject to impairment charges; potential for conflicts of interest and public association with other Lundin Group companies or entities; activist shareholders and proxy solicitation firms; risks associated with climate change; the Company’s common shares being subject to dilution; ability to attract and retain highly skilled employees; reliance on key personnel and reporting and oversight systems; risks relating to the Company’s internal controls; counterparty and customer concentration risk;  risks associated with the use of derivatives; exchange rate fluctuations; the terms of the contingent payments in respect of the completion of the sale of the Company’s European assets and expectations related thereto; the earn-in arrangement in respect of the Boulderdash properties, including the entering into of an option agreement in respect thereof and the terms of such option agreement; future actions taken by Talon Metals Corp. and Lundin Mining in relation to the Boulderdash properties and the outcomes and anticipated benefits thereof; and other risks and uncertainties, including but not limited to those described in the “Risks and Uncertainties” section of the Company’s MD&A for the three and six months ended June 30, 2025, the “Risks and Uncertainties” section of the Company’s MD&A for the year ended December 31, 2024, and the “Risks and Uncertainties” section of the Company’s Annual Information Form for the year ended December 31, 2024, which are available on SEDAR+ at www.sedarplus.ca under the Company’s profile.

All of the forward-looking information in this document is 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, forecasted 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.

SOURCE Lundin Mining Corporation

For further information, please contact: Stephen Williams, Vice President, Investor Relations +1 604 806 3074; Robert Eriksson, Investor Relations Sweden: +46 8 440 54 40

The age of borderless tech is ending.

For decades, global technology firms operated on the assumption that markets were open, supply chains integrated and politics a background variable.

Now, multinationals must navigate a landscape in which compliance with state authority outweighs cost-efficiency and scale.

What was once a question of strategy is now a matter of survival.

Nowhere is this shift more apparent than in the technology sector. US export controls, tariffs and investment restrictions – especially those targeting China – have redrawn the boundaries of market access, research and development (R&D), collaboration and supply chain design.

China, in turn, has tightened procurement standards and retaliated against firms deemed complicit in Washington’s containment agenda.

The result is a world where geopolitical sensitivities govern commercial viability.

The end of global arbitrage

The traditional model of multinational expansion – arbitraging labour, regulatory gaps and tax jurisdictions (in other words, finding the cheapest workforce, laxest red tape and most advantageous tax regime) – has unravelled under rising techno-nationalism.

For decades, tech multinationals thrived on a transnational division of labour: design and intellectual property in Silicon Valley or Eindhoven; high-volume manufacturing in Guangdong or Jiangsu; and increasingly, component production or final assembly in emerging sites like Thailand or Vietnam.

That model is now under siege.

US tariffs under Section 301, far-reaching export controls on advanced semiconductors (including AI-optimised chips), and the restrictions embedded in the CHIPS and Science Act have raised transaction costs and introduced new political risks.

But more than that, they have signalled a normative shift. Global value chains are no longer governed solely by economic logic but by strategic imperatives around security and autonomy.

Researchers are seeing that geopolitical fragmentation is compelling firms to reconfigure supply chains around blocs of political alignment – friend-shoring, redundancy and regional clustering are rapidly replacing ‘just-in-time’ globalism.

Multinationals like Nvidia, ASML and Applied Materials are now being forced to decouple parts of their supply chains from China – even as they depend on Chinese demand for scale, margins and technological relevance.

These firms sit at the heart of critical infrastructure for AI, advanced semiconductors and industrial automation.

Yet US export controls increasingly limit what they can sell to Chinese clients.

At the same time, Beijing has begun issuing informal ‘window guidance’ to state entities to avoid procurement from firms like Intel and AMD – signalling a strategic shift away from foreign suppliers perceived as aligned with Washington’s containment strategy.

The contradiction is sharp: to lead globally in advanced tech still requires presence in China, but that very presence is now politically contingent.

Weaponised interdependence

The United States has not only constrained trade – it has repurposed global networks as tools of coercion.

As American political economists Professor Henry Farrell and Professor Abraham Newman argue, weaponised interdependence allows states to exert power over firms through their dominance of key chokepoints – finance, software, standards and intellectual property.

For tech multinationals, this has created new fault lines.

American giant, Nvidia, cannot export its most advanced graphics processing units (or GPUs) to Chinese customers, even via third countries.

ASML, a Dutch firm, is prohibited from selling extreme ultraviolet lithography systems – used for semi-conductor manufacturing – to China under US pressure.

These restrictions aren’t symbolic; they sever firms from the world’s second-largest market, undermining both revenue and the scale needed for frontier R&D.

Beijing, in response, is enforcing its own restrictions.

Foreign firms seen as aligned with US controls are being excluded from procurement by state-owned enterprises and government agencies.

The result is a fragmented commercial landscape where multinationals are no longer truly global – they are segmented, disciplined and increasingly defined by the geopolitical posture of their home country.

Strategic adaptation

But all is not lost. Tech multinationals still have room to manoeuvre – if they recalibrate.

A full decoupling is unlikely; what we are witnessing is selective disentanglement and strategic realignment.

First, firms can focus on China’s vast enterprise and small-to-medium enterprise sector, which remains more commercially driven and less bound by state procurement mandates.

These segments continue to demand high-end chips, automation systems and digital services – areas where foreign firms still hold a competitive edge.

Second, China remains a critical base for export-oriented manufacturing, particularly into Southeast Asia.

Intra-Asian trade has intensified in recent years, with deepening economic interdependence between China and ASEAN countries.

The Regional Comprehensive Economic Partnership (RCEP) – the world’s largest free trade agreement – further integrates China into a broader Asia-Pacific production ecosystem.

For multinationals, this provides a pathway to retain operations in China while strategically reorienting toward third-party markets.

Third, firms can pivot toward new growth corridors – like Central Asia, the Middle East or Eastern Europe – where China’s Belt and Road Initiative is expanding infrastructure and digital connectivity.

These regions are increasingly important to second-order demand and can serve as hedges against US-China volatility.

The key for these big companies is not withdrawal, but segmentation.

Commercial strategies must now reflect political geography. Product lines, partnerships and R&D pathways must be tailored to the realities of a divided world.

Navigating fragmentation

In this new era, the globally dominant, efficiency-maximising multinational may be a relic.

But a regionally embedded, politically agile and strategically selective tech firm is not only viable – it may define the next chapter of globalisation.

Innovation no longer happens in a vacuum. It unfolds within the constraints of geopolitical power.

The challenge for multinationals is not how to restore the old global order – but how to survive, adapt and lead within its fracture.