Lundin Mining says adjusted profit more than tripled from a year earlier as copper prices hovered near record highs and quarterly revenue topped $1.3 billion. The company is also advancing its Vicuña project on the Argentina-Chile border, outlining plans for a staged development that could reshape its production profile.
BNN Bloomberg spoke with Jack Lundin, president and CEO of Lundin Mining, about the company’s record financial performance, its 50 per cent stake in the Vicuña joint venture with BHP, and the potential for a sanction decision on the first stage of the project before year-end.
Key Takeaways
- Adjusted EBITDA rose 65 per cent year-over-year to $700.6 million in the fourth quarter, while revenue increased 52 per cent to $1.30 billion on stronger realized copper and gold prices.
- The company produced 331,000 tonnes of copper in 2025 and met production guidance for the third consecutive year across its key metals.
- The Vicuña joint venture with BHP outlines a staged development that could produce more than 500,000 tonnes of copper annually at peak, with significant gold and silver byproducts.
- At recent spot prices, the project carries an estimated net present value of nearly $30 billion and an internal rate of return of 25.5 per cent, underscoring its leverage to commodity markets.
- Stage 1 capital costs are estimated at US$7.1 billion, with Lundin saying it is positioned to fund its 50 per cent share as it targets a potential sanction decision before the end of the year.
Read the full transcript below:
ANDREW: Let’s talk copper. Lundin Mining just posted adjusted profit that tripled compared with the same period last year. Copper has been trading near record highs, and the company has a big stake in a potentially giant project called Vicuña, located in the mountains on the border of Argentina and Chile. Some analysts say Vicuña is the future for Lundin. We’re joined by Jack Lundin, president and CEO. Jack, thanks very much for joining us.
JACK: Hi, Andrew. Thank you very much for having me.
ANDREW: Looking at your existing mines — two in Chile and one in Brazil — you had copper production of just under 90,000 tonnes in the latest quarter. So your annual run rate from those mines is about 360,000 tonnes of copper.
JACK: Yes, just about. In 2025, we had a really solid year for Lundin Mining, the third consecutive year where we were able to meet our production guidance across all the metals we produce, mainly copper and gold. In 2025, we produced 331,000 tonnes of copper. That translated into record financial performance for us. We generated over $4 billion in revenue for the year.
If you look at the fourth quarter, which is indicative of current conditions, we generated over $1.3 billion in revenue and about $686 million in adjusted EBITDA. That put us on solid footing for the year ahead. We had strong financial and operational performance, and we’re also pleased to report a record safety performance, with our lowest injury frequency rate. We’re hitting our stride as we enter what is a very exciting period for our sector.
ANDREW: The stock has done just fine over the past year. Let’s talk about this Vicuña project. It’s expected to be gigantic, eventually producing up to around half a million tonnes of copper a year. It includes at least two deposits. You own part of it. How does that work?
JACK: That’s right. Our partner BHP and Lundin Mining each own 50 per cent of a joint venture called Vicuña Corp. On Monday, we announced the preliminary economic assessment for the combined project, which outlines a world-class development in terms of scale. It has the potential to rank among the top five globally in copper, gold and silver production.
The preliminary economic assessment outlined very robust project economics. At current spot prices, the project has nearly $30 billion in net present value at an eight per cent discount rate and a 25.5 per cent internal rate of return. We plan to develop it in stages. We’re excited to reach this milestone and continue advancing the project, with a potential sanction decision before the end of this year.
ANDREW: You would receive half of the production from the mine, and BHP would receive the rest?
JACK: Exactly. It’s an independent joint venture, with BHP and Lundin Mining each owning 50 per cent. Production would be split evenly.
We’re now moving the project forward through further definition work. This was a preliminary economic assessment, and we have additional work to complete on Stage 1, which we aim to sanction before year-end. Importantly for Lundin Mining, we enter this year in a net cash position following strong financial performance. Our revolving credit facility is in the process of being upsized to US$4.5 billion, which positions us to fund our share of Stage 1.
ANDREW: It’s not going to be inexpensive. It’s at high altitude, and the initial capital spend is about US$7 billion?
JACK: That’s correct. We outlined Stage 1 capital expenditure of US$7.1 billion. We have significant experience operating in the region. Our Caserones mine is just over the border in Chile, within the Vicuña district, and we’ve developed strong operational expertise at high altitude.
We believe we can apply those lessons here. BHP also brings extensive experience in developing large-scale projects. We’re confident in our team and our understanding of the operating environment, given we already operate a mine about 40 kilometres from the Vicuña project.
ANDREW: There’s desalination infrastructure, water supply, and cross-border considerations. It’s fascinating. At one point, you’ll effectively be producing copper at a negative cash cost because of the gold and silver byproducts.
JACK: That’s correct. The project contains significant quantities of gold and silver alongside the copper. Over the first 25 full years of operation, the average cash cost is expected to be negative 20 cents per pound of copper, driven by strong byproduct credits from gold and silver.
It’s a unique, large-scale asset that attracted a partner like BHP. We have a strong relationship and intend to continue advancing the project together. We see a clear path toward a final investment decision before the end of this year.
ANDREW: Just to be clear, you don’t expect BHP to buy you out of the asset?
JACK: No. The intention is to continue operating 50/50 with our partner. We are keen to maintain our 50 per cent interest in what we see as a transformational asset for Lundin Mining.
Today, we are a top-25 global copper producer. When Vicuña reaches full production, we believe it could position us among the top 10. We intend to pursue that opportunity while continuing to generate consistent returns from our existing operations. The first quarter of 2026 is already shaping up well, and we look to build on that momentum.
ANDREW: Thanks, Jack. Jack Lundin, president and CEO of Lundin Mining.
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This BNN Bloomberg summary and transcript of the Feb. 20, 2026 interview with Jack Lundin are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.