The company boosted its copper outlook for 2021, based on increasing grades at Candelaria in Chile and expected "full-year, uninterrupted contributions" from both Candelaria and Chapada in Brazil.
Lundin last week reached agreement at Candelaria with a union representing about 350 workers and said it had now reached agreements with all five unions at the mine, where a ramp-up to full capacity was underway.
Its reintroduced guidance for 2020 at Candelaria was 120,000-125,000 tonnes of copper at a cash cost of $1.50/lb, net of credits from forecast gold production of 70,000-75,000oz. Candelaria had previously been expected to produce 160,000-175,000 tonnes of copper and 90,000-100,000 ounces of gold on a 100% basis.
Chapada was "on track" to return to full production capacity in December and its 2020 production guidance remained at 45,000-50,000t of copper and 80,000-85,000oz of gold, the company said.
Lundin said its total 2021 copper production was forecast to increase 25% to 275,000-299,000t, then up to 281,000-305,000t in 2022 and 278,000-302,000 in 2023.
"Over the next 10 years, copper production is forecast to average nearly 180,000tpa," Lundin said.
Zinc production of 141,000-151,000t was expected next year, followed by a 30% jump to 183,000-198,000t in 2022 as the Zinc Expansion Project, set to restart in January at Neves-Corvo in Portugal, ramped up.
Nickel output was expected to increase 10% in 2022 to 17,000-20,000t due to higher grade ore at Eagle East in the US.
Gold production guidance was put at 170,000-180,000oz in 2021, 162,000-172,000oz in 2022 and 175,000-185,000oz in 2023.
Lundin forecast 2021 capex of US$610 million and earmarked $40 million for exploration.
It said a dividend increase to C6c per share, or 24c on an annualised basis, was expected to be declared alongside full-year results in February, pending board approval.
Lundin's shares (TSX: LUN) reached a one-year high intraday of $10.43 as the copper price reached its highest point since 2013 on the London Metal Exchange.
They closed up 0.58% to $10.38 to capitalise it at $7.6 billion (US$5.9 billion).