LUNDIN GOLD REPORTS FIRST QUARTER 2025 RESULTS

Canada NewsWire

VANCOUVER, BC, May 8, 2025

Strong production and high gold prices result in increased shareholder dividends

VANCOUVER, BC, May 8, 2025 /CNW/ - Lundin Gold Inc. (TSX: LUG) (Nasdaq Stockholm: LUG) (OTCQX: LUGDF) ("Lundin Gold" or the "Company") today announced its financial results for the first quarter of 2025, featuring record revenues of $356 million and net income of $154 million ($0.64 per share). Free cash flow(1) of $171 million ($0.71 per share) was driven by strong gold production of 117,313 ounces ("oz"), with 117,641 oz sold at an average realized gold price(1) of $3,081 per oz, at low cash operating costs(1) of $792 and all-in sustaining costs(1) ("AISC") of $909 per oz sold. The Company also reported increased shareholder returns through an amendment to its dividend policy as well as the declaration of a special dividend. All dollar amounts are stated in US dollars unless otherwise indicated. PDF Version

Ron Hochstein, President and CEO commented, "The first quarter of 2025 is yet another quarter marked by record financial results for Lundin Gold. As a result of our exploration program results in the first quarter, we have expanded our program to continue to evaluate numerous targets. In addition, given the Company's future outlook, which includes the benefits of the recently completed process plant expansion project, we are on track to meet our full-year guidance and have increased shareholder returns through the special dividend and introduction of a variable dividend to complement our fixed sustainable dividend."

OPERATING AND FINANCIAL RESULTS SUMMARY

The following two tables provide an overview of key operating and financial results.

 
                                Three months endedMarch 31, 
                                2025            2024 
Tonnes ore mined                       403,221        419,758 
Tonnes ore milled                      398,159        413,596 
Average mill throughput (tpd)            4,424          4,545 
Average head grade (g/t)                  10.4            9.5 
Average recovery                        88.5 %         88.3 % 
Gold ounces produced                   117,313        111,572 
Gold ounces sold                       117,641        108,916 
 
 
__________________ 
(1) Refer to "Non-IFRS Measures" section. 
 
 
                                             Three months endedMarch 31, 
                                             2025                2024 
Revenues ($'000)                                        356,345    226,741 
Income from mining operations ($'000)                   233,546    113,237 
Earnings before interest, taxes, 
 depreciation, and 
 amortization ($'000)(1)                                241,502    111,612 
Adjusted earnings before interest, taxes, 
 depreciation, 
 and amortization ($'000)(1)                            241,502    131,456 
Net income ($'000)                                      153,500     41,897 
Basic income per share ($)                                 0.64       0.18 
Cash provided by operating activities 
 ($'000)                                                194,308    107,914 
Free cash flow ($'000)(1)                               170,783     82,259 
Free cash flow per share ($)(1)                            0.71       0.35 
Average realized gold price ($/oz sold)(1)                3,081      2,141 
Cash operating cost ($/oz sold)(1)                          792        735 
All-in sustaining costs ($/oz sold)(1)                      909        864 
Adjusted earnings ($'000)(1)                            153,500     57,796 
Adjusted earnings per share ($)(1)                         0.64       0.24 
Dividends paid per share ($)                               0.30       0.10 
 
 

FIRST QUARTER HIGHLIGHTS

Financial Results

   -- Gold sales totalled 117,641 oz, consisting of 78,552 oz in concentrate 
      and 39,089 oz as doré, resulting in gross revenues of $362 million 
      at an average realized gold price1 of $3,081 per oz.  Average realized 
      gold price1 was positively impacted by rising gold prices on 
      provisionally priced gold sales which exceeded fair value estimates as at 
      December 31, 2024.  Net of treatment and refining charges, revenues for 
      the quarter were $356 million. 
 
   -- Average realized gold price1 includes $2,926 per ounce of gross price 
      received and a favourable impact of $155 per oz mark-to-market on 
      provisionally priced sales. 
 
   -- Cash operating costs1 and AISC1 were $792 and $909 per oz of gold sold, 
      respectively.  Sustaining capital expenditures1 are expected to increase 
      in future quarters with the initiation of the fifth tailings dam raise 
      and other site infrastructure improvement projects. 
 
   -- The Company generated cash from operating activities of $194 million and 
      free cash flow1 of $171 million, or $0.71 per share, resulting in a cash 
      balance of $452 million at March 31, 2025 following the quarterly 
      dividend payment of $72.7 million. 
 
   -- EBITDA1 was $242 million while income from mining operations was $234 
      million which, after deducting corporate, exploration, and taxes, 
      resulted in net income of $154 million for the quarter or $0.64 per 
      share. 
 
______________ 
(1) Refer to "Non-IFRS Measures" section. 
 

Production Results

   -- Mine production was aligned with mill availability which resulted in 
      403,221 tonnes mined at an average grade of 9.5 g/t. 
 
   -- The mill processed 398,159 tonnes at an average throughput rate of 4,424 
      tpd with performance affected by the proactive completion of the relining 
      of the SAG mill and other maintenance activities.  These activities, 
      originally scheduled for the second quarter, were completed during 
      planned downtime associated with equipment tie-ins for the process plant 
      expansion project. 
 
   -- The average grade of ore milled was 10.4 g/t with average recovery at 
      88.5%.  Mined grades were lower than milled grades, mainly due to 
      positive reconciliation. 
 
   -- Gold production was 117,313 oz which was comprised of 75,494 oz in 
      concentrate and 41,819 oz as doré. 
 
   -- Plant throughput for the month of March averaged 5,076 tpd and recoveries 
      averaged 90.0%.  These figures demonstrate the early benefits of the 
      expansion with more potential expected to be unlocked through 
      optimization. 

Outlook

   -- With the process plant expansion project now complete, the Company is 
      well-positioned to meet its production guidance of 475,000 to 525,000 oz 
      and AISC1 guidance of $935 to $995 per oz sold.  Sustaining capital 
      expenditures1 are expected to increase over the remaining quarters of 
      2025 with construction of the fifth raise of the tailings dam starting in 
      the second quarter as well as several other capital projects. 
 
   -- Increased rainfall in Ecuador since the start of 2025 has normalized 
      power supply from the national grid.  Commissioning of the four 
      additional diesel generators purchased last year continues with 
      completion expected by the end of the second quarter.  These additional 
      diesel generators are expected to allow the FDN process plant to run 
      slightly below capacity in the event of recurrence of power disruption 
      from the national grid. 
 
   -- On the Company's exploration programs, results continue to demonstrate 
      significant exploration potential and provide a growing pipeline of 
      targets around FDN. The near-mine underground drilling program will 
      continue to advance at FDNS where the primary focus is the conversion and 
      expansion of this new system. The surface drilling program will continue 
      to explore the extensions of Bonza Sur, FDN East, advance at Trancaloma, 
      and explore for new sectors around FDN.  Due to the proximity between 
      Bonza Sur and the recently discovered Trancaloma porphyry system, the 
      decision has been made to delay the initial Mineral Resource Estimate for 
      Bonza Sur to better understand the geological environment.  Fourteen rigs 
      are currently turning across the conversion and near-mine exploration 
      programs. 
 
   -- The regional exploration program will continue to focus on the unexplored 
      large package of mineral concessions located on a highly prospective 
      environment which hosts the Fruta del Norte deposit.  This is the first 
      year of a new three-year greenfield strategy to identify new areas for 
      exploration drilling.  The 2025 program includes a geophysical magnetic 
      survey and a geochemical sampling program. 
 
   -- Based on the first quarter results, the Company expects to increase the 
      near-mine drilling program by 18,000 metres to a minimum of 83,000 metres 
      to accelerate the definition of near-mine targets and the conversion 
      drilling program from 15,000 metres to approximately 25,000 metres. A 
      minimum of 108,000 metres of drilling are planned across the conversion 
      and near-mine drilling programs for 2025.  The total estimated cost of 
      the near-mine and regional exploration program is $47 million for the 
      year.  This represents the largest drill program ever completed on the 
      land package that hosts the FDN deposit. 
 
   -- Under its amended dividend policy, the Company anticipates continuing to 
      declare quarterly fixed dividends of $0.30 per share (the "Fixed 
      Dividend"), equivalent to approximately $300 million annually based on 
      currently issued and outstanding shares, plus a variable dividend equal 
      to an amount per share based on at least 50% of the Company's normalized 
      free cash flow less the Fixed Dividend.  The Company will determine its 
      normalized free cash flow each quarter by removing significant 
      non-recurring items from its free cash flow1 calculation such as annual 

      income taxes and profit sharing which have historically been paid in the 
      second quarter of each year. 
 
________________ 
(1) Refer to "Non-IFRS Measures" section. 
 

Liquidity and Capital Resources

At the end of March 31, 2025, the Company is in a strong financial position.

 
(in thousands of U.S. dollars)   As at March 31,2025  As at December 31,2024 
Financial Position: 
Cash                                         451,737                 349,200 
Working capital                              551,032                 458,944 
Total assets                               1,613,365               1,527,481 
Long-term debt                   -                    - 
 

As at March 31, 2025, the Company had cash of $452 million and a working capital balance of $551 million compared to cash of $349 million and a working capital balance of $459 million at December 31, 2024. The change in cash during the first quarter of 2025 was primarily due to cash generated from operating activities of $194 million and proceeds from the exercise of stock options and anti-dilution rights totalling $4.5 million. This is offset by dividends paid of $72.7 million and capital expenditures of $23.5 million.

Capital Expenditures

   -- Sustaining Capital 
 
          -- Preparations were underway for the fifth raise of the tailings dam 
             with work starting late in the second quarter and expected to 
             conclude during the first quarter of 2026. 
 
          -- Other projects that advanced during the quarter included 
             improvements to the industrial and potable water supply as well as 
             enhancements to the South Portal. 
 
          -- Commissioning of the four diesel-powered generators continued and 
             is expected to be completed by the end of the second quarter. 
 
          -- The 2025 conversion drilling program is focused on FDNS, located 
             in the south portion of the FDN deposit.  During the first quarter, 
             the conversion drilling program completed approximately 2,762 
             metres across 17 holes with two rigs currently turning. 
 
                 -- All drill holes confirmed the mineralization continuity and 
                    indicated higher grade zones within the vein system.  Some 
                    conversion drill holes also intercepted mineralized zones 
                    outside of the existing geological model. 
 
                 -- A complete table of the conversion drilling results 
                    received to date can be found in Lundin Gold's press 
                    release dated May 7, 2025. 
 
   -- Process Plant Expansion Project 
 
          -- The process plant expansion project was completed during the 
             quarter, including commissioning of the remaining two Jameson 
             cells, new concentrate filter, and other ancillary upgrades. 
 
          -- Downtime was required in the quarter to complete the remaining 
             tie-ins and commissioning, with the relining of the SAG mill 
             completed opportunistically. 
 
          -- Plant throughput for the month of March averaged 5,076 tpd and 
             recoveries averaged 90.0%.  These figures demonstrate the early 
             benefits of the expansion with more potential expected to be 
             unlocked through optimization. 
 
__________________ 
(1) Refer to "Non-IFRS Measures" section. 
 

Health and Safety

During the first quarter there were no Lost Time Incidents and two Medical Aid Incidents. The Total Recordable Incident Rate across the Company was 0.21 per 200,000 hours worked for the quarter.

Community

Lundin Gold sponsored community projects continued to advance well in the first quarter of 2025. One of the Company's most impactful programs, run by the non-governmental organization Educación para Compartir, has focused on mental health and well-being in our local communities since its inception in November 2023. During the first quarter, approximately 775 counselling sessions were provided, with an intake of approximately 70 new patients. As of the end of March, over 550 youth were registered in extra-curricular activities through the program, including English studies, basketball, soccer, dance, music and boxing.

Engagement with the local governments of Yantzaza and Los Encuentros continued through support agreements for rural road maintenance, basic service infrastructure, community well-being and support for livestock and local farmers initiatives. During the quarter, the Company committed to several noteworthy projects, such as the renewal of internet connectivity to all 22 communities in FDN's area of influence, the Neighbourhood Doctor Project which helps Ecuador's Ministry of Health provide care in remote areas of the Yantzaza canton, and projects relating to road maintenance and water treatment. In addition, the Company supported Ecuador's Ministry of Transportation and Public Works to repair critical areas of the national road network.

EXPLORATION

Near-Mine Exploration Program

During the first quarter of 2025, the Company completed a total of 16,105 metres across 43 holes from surface and underground.

The underground near mine drilling program focused on the FDNS deposit, which remains open for expansion in the north and along the south extension. Exploration of this deposit is currently underway using an underground rig at the recently reopened and rehabilitated South Portal. The underground drilling program also advanced at FDN East and is currently exploring the mineralization continuity in the central portion of this target. As at the date of this press release, two underground rigs are active in the near mine drilling program.

The surface near mine drilling program continues to advance the delineation of the Bonza Sur deposit, the definition of the FDN East target, and exploring new sectors like Trancaloma and Castillo. As at the date of this press release, 10 surface rigs are drilling, three of them at Bonza Sur, one at FDN East, three at Trancaloma, and three testing new sectors.

   -- At Bonza Sur, drill holes were completed mainly along the east and south 
      extension of the deposit and confirmed the deposit's continuity.  In the 
      east extension, the drilling program defined the east limit, close to the 
      contact with the Trancaloma porphyry.  In the south end of the deposit 
      recent drilling suggests further potential for expansion along this 
      direction.  The Bonza Sur mineralization has already been identified for 
      more than 2.6 kilometres along the north-south strike and for at least 
      500 metres along the downdip and remains open to the south.At FDN East, 
      the surface drilling program advanced in conjunction with the underground 
      program and confirmed the mineralization continuity in the central part 
      of the target and indicated areas for further expansion potential toward 
      the north and south direction. 
 
   -- The near-mine exploration program continues to advance in unexplored 
      areas close to FDN.  A systematic exploration program employing 
      geochemical and geophysical surveys and geological mapping advanced on 
      potential targets, and the initial drilling results confirmed the 
      occurrence of copper-gold porphyry mineralization in distinct sectors. 
      At Trancaloma, located on the east border of Bonza Sur, the drilling 
      program intercepted a wide copper-gold porphyry mineralization in the 
      eastern portion of the target. At the porphyry target Castillo, located 
      along the west border of Bonza Sur, the drilling program intercepted 
      copper gold mineralization, potentially an outer hydrothermal alteration 
      halo of another porphyry system in this sector, and covered by 
      conglomerates of the Suarez Basin. 

In addition to the drilling programs, mine engineering work began on FDNS to evaluate geotechnical, mine design, metallurgical characteristics, and infrastructure needs with the goal of integrating this Mineral Resource into FDN's 2026 updated long-term mine plan.

A table of first quarter 2025 near mine results for the FDNS, FDN East, Bonza Sur and Trancaloma targets received to date can be found in Lundin Gold's press release dated February 23 and May 7, 2025.

Regional Exploration Program

The Company initiated its multi-year regional exploration program during the first quarter of 2025. The program is expected to cover approximately 54,000 hectares on 23 of the Company's concessions along the Zamora Copper Gold Belt, a high potential geological setting which hosts the Fruta del Norte mine and several large copper gold projects. The exploration program was initiated in the Gamora district, located 65 kilometres north of FDN and approximately four kilometres north of the Mirador copper gold mine. The Gamora district comprises multiple exploration sectors that exhibit geological features similar to those found in copper-gold porphyry systems. Geological mapping and geochemical sampling program were completed in distinct parts of the district during the quarter. Initial results identified new potential targets for further evaluation.

CORPORATE

   -- The Company published its 2024 Sustainability Report in April which marks 
      its second year of transition towards aligning with the European 
      Sustainability Reporting Standards. 
 
   -- The Company paid a quarterly dividend of $0.30 per share on March 26, 
      2025 (March 31, 2025 for shares trading on Nasdaq Stockholm) based on a 
      record date of March 11, 2025, for a total of $72.7 million. 
 
   -- With the release of its first quarter 2025 results, the Company amended 
      its dividend policy to provide, subject to the discretion of the Board of 
      Directors, for a quarterly Fixed Dividend, plus a variable dividend equal 
      to an amount per share based on at least 50% of the Company's normalized 
      free cash flow during the preceding quarter less the Fixed Dividend paid 
      during such period. 
 
   -- Pursuant to the amended dividend policy, the Company declared cash 
      dividends of $0.45 per share, comprised of the Fixed Dividend of $0.30 
      per share and the variable dividend of $0.15 per share.  The dividends 
      are payable on June 25, 2025 (June 30, 2025 for shares trading on Nasdaq 
      Stockholm) to shareholders of record on June 10, 2025. 
 
   -- As a result of the rapid and substantial increase in gold price, combined 
      with a debt-free balance sheet, and robust performance of operations, the 
      Company also declared a special dividend of $0.41 per share.  The special 
      dividend is payable on June 9, 2025 (June 12, 2025 for shares trading on 
      Nasdaq Stockholm) to shareholders of record on May 22, 2025. 

Qualified Persons

The technical information relating to Fruta del Norte contained in this press release has been reviewed and approved by Terry Smith P. Eng, Lundin Gold's COO, who is a Qualified Person in accordance with the requirements of National Instrument 43-101 -- Standards of Disclosure for Mineral Projects ("NI 43-101"). The disclosure of exploration information contained in this press release was prepared by Andre Oliveira P.Geo, Vice President, Exploration of the Company, who is a Qualified Person in accordance with the requirements of NI 43-101.

Webcast and Conference Call

The Company will host a conference call and webcast to discuss its results on Friday, May 9 at 8:00 a.m. PT, 11:00 a.m. ET, 5:00 p.m. CET.

Conference Call Dial-In Numbers:

 
Participant Dial-In North America:                 +1 437-900-0527 
Toll-Free Participant Dial-In North America:       +1 888-510-2154 
Participant Dial-In Sweden:                        +46 8 505 24649 
Conference ID:                                 Lundin Gold / 27398 
 

A link to the webcast will be available on the Company's website, www.lundingold.com.

A replay of the conference call will be available two hours after its completion until May 16, 2025.

 
Toll Free North America Replay Number:   +1 888-660-6345 
International Replay Number:             +1 416-764-8677 
Replay passcode:                                 27398 # 
 

About Lundin Gold

Lundin Gold, headquartered in Vancouver, Canada, owns the Fruta del Norte gold mine in southeast Ecuador. Fruta del Norte is among the highest-grade operating gold mines in the world.

The Company's board and management team have extensive expertise and are dedicated to operating Fruta del Norte responsibly. The Company operates with transparency and in accordance with international best practices. Lundin Gold is committed to delivering value to its shareholders through operational excellence and growth, while simultaneously providing economic and social benefits to impacted communities, fostering a healthy and safe workplace and minimizing the environmental impact. Furthermore, Lundin Gold is focused on continued exploration on its extensive and highly prospective land package to identify and develop new resource opportunities to ensure long-term sustainability and growth for the Company and its stakeholders.

Non-IFRS Measures

This news release refers to certain financial measures, such as average realized gold price per oz sold, EBITDA, adjusted EBITDA, cash operating cost per oz sold, all-in sustaining cost, sustaining capital expenditures, free cash flow, free cash flow per share, and adjusted earnings, which are not measures recognized under IFRS and do not have a standardized meaning prescribed by IFRS. These measures may differ from those made by other companies and accordingly may not be comparable to such measures as reported by other companies. These measures have been derived from the Company's financial statements because the Company believes that they are of assistance in the understanding of the results of operations and its financial position. Certain additional disclosures for these specified financial measures have been incorporated by reference and can be found on page 11 of the Company's MD&A for the year ended March 31, 2025 available on SEDAR+.

Additional Information

The information in this release is subject to the disclosure requirements of Lundin Gold under the EU Market Abuse Regulation. This information was publicly communicated on May 8, 2025 at 4:30 p.m. Pacific Time through the contact persons set out below.

Caution Regarding Forward-Looking Information and Statements

Certain of the information and statements in this press release are considered "forward-looking information" or "forward-looking statements" as those terms are defined under Canadian securities laws (collectively referred to as "forward-looking statements"). Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, identified by words or phrases such as "believes", "anticipates", "expects", "is expected", "scheduled", "estimates", "pending", "intends", "plans", "forecasts", "targets", or "hopes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "will", "should" "might", "will be taken", or "occur" and similar expressions) are not statements of historical fact and may be forward-looking statements. By their nature, forward-looking statements and information involve assumptions, inherent risks and uncertainties, many of which are difficult to predict, and are usually beyond the control of management, that could cause actual results to be materially different from those expressed by these forward-looking statements and information. Lundin Gold believes that the expectations reflected in this forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct. Forward-looking information should not be unduly relied upon. This information speaks only as of the date of this press release, and the Company will not necessarily update this information, unless required to do so by securities laws.

This press release contains forward-looking information in several places, such as in statements relating to to the Company's 2025 production outlook, including estimates of gold production, grades recoveries and AISC; operating plans; expected sales receipts and cash flow forecasts, gold price, its estimated capital costs and sustaining capital; the Company's ability to mitigate the impacts on its operations of a power disruption from the national grid; the recovery of VAT, the anticipated benefits of the process plant expansion project; benefits of the Company's community programs; the Company's declaration and payment of dividends pursuant to its dividend policy; the timing and the success of its drill program at Fruta del Norte and its other exploration activities; and estimates of Mineral Resources and Reserves at Fruta del Norte.

Lundin Gold's actual results could differ materially from those anticipated. Factors that could cause actual results to differ materially from any forward-looking statement or that could have a material impact on the Company or the trading price of its shares include risks relating to: instability in Ecuador; community relations; reliability of power supply; tax changes in Ecuador; security; availability of workforce and labour relations; mining operations; waste disposal and tailings; environmental compliance; illegal mining; Mineral Reserve and Mineral Resource estimates; infrastructure; regulatory risk; government or regulatory approvals; forecasts relating to production and costs; gold price; dependence on a single mine; shortages of critical resources; climate change; exploration and development; control of Lundin Gold; dividends; information systems and cyber security; title matters and surface rights and access; health and safety; human rights; employee misconduct; measures to protect biodiversity, endangered species and critical habitats; global economic conditions; competition for new projects; key talent recruitment and retention; market price of the Company's shares; social media and reputation; insurance and uninsured risks; pandemics, epidemics or infectious disease outbreak; conflicts of interest; violation of anti-bribery and corruption laws; internal controls; claims and legal proceedings; and reclamation obligations.

There can be no assurance that such statements will prove to be accurate, as Lundin Gold's actual results and future events could differ materially from those anticipated in this forward-looking information as a result of the factors discussed under the heading "Risk Factors" in the Company's Annual Information Form dated March 17, 2025 available at www.sedarplus.ca.

SOURCE Lundin Gold Inc.

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/CONTACT:

For more information, please contact: Ron F. Hochstein, President and CEO, Tel (Canada): +1-604-806-3589, ron.hochstein@lundingold.com; Brendan Creaney, Vice President, Corporate Development & Investor Relations, Tel: +1-604-376-4595, brendan.creaney@lundingold.com

Copyright CNW Group 2025 
 

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May 08, 2025 19:30 ET (23:30 GMT)