Record cash flow generation and expanding growth pipeline across epithermal and porphyry systems
VANCOUVER, BC, Feb. 19, 2026 /CNW/ - Lundin Gold Inc. (TSX: LUG) (Nasdaq Stockholm: LUG) (OTCQX: LUGDF) ("Lundin Gold" or the "Company") today announced its financial results for the fourth quarter and year ended December 31, 2025. The year delivered exceptional operational and financial performance, including gold production of 498,315 oz, in line with elevated guidance, and record free cash flow(1) of $926 million. The Company generated record revenues of $1.78 billion from sales of 503,330 oz at an average realized gold price(1) of $3,594 per oz, supported by stable operations, strong margins, and completion of the process plant expansion early in the year. PDF Version
The Company's gold mine in Ecuador, Fruta del Norte ("FDN"), achieved average throughput of 5,009 tpd with recoveries of 89.0%. Cash operating costs(1) of $838/oz and AISC(1) of $1,015/oz remained competitive despite higher royalties and employee profit sharing tied to strong gold prices, resulting in robust margins throughout the year.
The Company also advanced its most extensive exploration program to date, drilling 121,519 metres across conversion and near mine programs and further demonstrating the significant potential of the broader land package. Lundin Gold returned a record $664 million in dividends during the year and has declared $1.15 per share payable in Q1 2026. All amounts are in U.S. dollars unless otherwise indicated.
Jamie Beck, President and CEO, commented "2025 was an outstanding year for Lundin Gold, marked by strong operational delivery, record financial results and dividends to our shareholders. FDN again demonstrated strong production and exceptional cash flow, reinforcing the strength of this world--class asset.
Our exploration results were equally impressive. Following our MRMR update, FDNS now carries an initial Mineral Reserve and FDN East has an initial Inferred Mineral Resource. Drilling at both targets continues to demonstrate the scale and continuity of these high--grade epithermal systems, with the potential to extend the life of mine.
The emerging copper gold porphyry systems at Sandia, Trancaloma, Castillo and other targets further illustrate the exceptional endowment of the district. Together with the growth at FDNS, FDN East and Bonza Sur, the combination of multiple high grade epithermal deposits and several promising porphyry centres provides rare long term optionality and a powerful foundation for future district scale growth
With no debt, a strong balance sheet, and a growing pipeline of high--quality opportunities, we enter 2026 with considerable strategic flexibility and remain focused on disciplined execution and responsible growth."
________________________________ (1) Refer to "Non-IFRS Measures" section.
OPERATING AND FINANCIAL RESULTS SUMMARY
The following two tables provide an overview of key operating and financial results.
Three months ended Year ended
December 31, December 31,
2025 2024 2025 2024
Tonnes ore mined 501,301 405,529 1,832,695 1,671,849
Tonnes ore milled 484,950 427,030 1,828,225 1,690,865
Average mill throughput (tpd) 5,271 4,642 5,009 4,620
Average mill head grade (g/t) 8.7 11.3 9.5 10.5
Average recovery 88.3 % 87.1 % 89.0 % 87.8 %
Gold ounces produced 119,483 135,241 498,315 502,029
Gold ounces sold 124,041 131,175 503,330 495,374
Three months ended Year ended
December 31, December 31,
2025 2024 2025 2024
Revenues ($'000) 526,596 341,791 1,782,940 1,193,050
Income from mining operations
($'000) 373,402 215,208 1,226,337 703,386
Earnings before interest, taxes,
depreciation, and
amortization ($'000)(1) 363,788 232,223 1,235,810 1,021,373
Adjusted earnings before interest,
taxes, depreciation,
and amortization ($'000)(1) 363,788 232,223 1,235,810 779,549
Net income ($'000) 234,205 129,147 792,151 426,050
Basic income per share ($) 0.97 0.54 3.29 1.78
Cash provided by operating
activities ($'000) 358,405 192,021 1,023,029 662,390
Free cash flow ($'000)(1) 328,197 163,767 925,799 304,208
Free cash flow per share ($)(1) 1.36 0.68 3.84 1.27
Average realized gold price ($/oz
sold)(1) 4,299 2,664 3,594 2,462
Cash operating cost ($/oz sold)(1) 947 709 838 712
All-in sustaining costs ($/oz
sold)(1) 1,193 879 1,015 875
Adjusted earnings ($'000)(1) 234,205 129,147 792,151 421,596
Adjusted earnings per share ($)(1) 0.97 0.54 3.29 1.76
Dividends paid per share ($) 0.80 0.20 2.75 0.60
FOURTH QUARTER AND FULL YEAR HIGHLIGHTS
Year ended December 31, 2025
-- FDN achieved annual gold production of 498,315 oz, comprised of 324,485
oz in concentrate and 173,830 oz as doré, which meets the Company's
2025 elevated guidance.
-- A total of 1,832,695 and 1,828,225 tonnes of ore was mined and processed,
respectively. In 2025, average mill throughput exceeded 5,000 tpd,
demonstrating the benefits of the process plant expansion project
completed in Q1 2025. The mine also ramped up progressively throughout
the year keeping pace with the mill.
-- The average grade of ore milled was 9.5 grams per tonne ("g/t") with
improved average recoveries of 89.0% when compared to 2024.
-- The Company sold a total of 503,330 oz of gold, consisting of 331,305 oz
in concentrate and 172,025 oz as doré at an average realized gold
price1 of $3,594 per oz sold for total revenues from gold sales of $1.81
billion. Net of treatment and refining charges, revenues for 2025 were
$1.78 billion.
-- Average realized gold price1 was positively impacted by rising gold
prices on provisionally priced gold sales, which include $3,426 per oz of
gross price received and a favourable impact of $168 per ounce from
adjustments to provisionally priced sales.
-- Cash operating costs1 and AISC1 for 2025 were $838 and $1,015 per oz of
gold sold, respectively. These figures reflect the impact of higher
accrued royalties and statutory profit sharing payable to employees which
were driven by record-high average realized gold prices1. AISC1 also
includes sustaining capital costs related to the expansion of the
tailings storage facility.
-- The Company generated record cash from operating activities of $1.02
billion and free cash flow1 of $926 million or $3.84 per share. The
strong free cash flow enabled the Company to return $664 million to
shareholders through dividends and resulted in a cash balance of $630
million at December 31, 2025.
-- Earnings before interest, taxes, depreciation, and amortization1
("EBITDA") were $1.24 billion while income from mining operations was
$1.23 billion which, after deducting corporate, exploration, and taxes,
resulted in net income of $792 million for the quarter or $3.29 per
share.
________________________________
(1) Refer to "Non-IFRS Measures" section.
Fourth Quarter of 2025
-- Focus on Operational Excellence programs led to the highest quarterly
mine production since the beginning of operations with 501,301 tonnes of
ore mined.
-- The mill processed 484,950 tonnes of ore at an average throughput of
5,271 tpd despite lower mill operating hours due to unplanned maintenance
activities at the mill. This was also a quarterly record since the
beginning of operations. The average grade of ore milled was 8.7 g/t with
average recoveries of 88.3%.
-- Gold production was 119,483 oz which was comprised of 78,577 oz in
concentrate and 40,906 oz as doré.
-- Gold sales totaled 124,041 oz, consisting of 81,348 oz in concentrate and
42,693 oz as doré, resulting in gross revenues of $533 million at an
average realized gold price1 of $4,299 per oz. Net of treatment and
refining charges, revenues for the quarter were $527 million.
-- Average realized gold price1 includes $4,133 per oz of gross price
received and a favourable impact of $166 per ounce from adjustments to
provisionally priced sales.
-- Cash operating costs1 and AISC1 were $947 and $1,193 per oz of gold sold,
respectively. The increase in both metrics compared to previous quarters
is due to the impact of higher accrued royalties and statutory profit
sharing payable to employees which were driven by record-high average
realized gold prices1. Furthermore, AISC1 was impacted by the timing of
sustaining capital expenditures incurred.
-- The Company generated cash from operating activities of $358 million and
free cash flow1 of $328 million, or $1.36 per share.
-- EBITDA1 was $364 million while income from mining operations was $373
million which, after deducting corporate, exploration, and taxes,
resulted in net income of $234 million for the quarter or $0.97 per
share.
________________________________
(1) Refer to "Non-IFRS Measures" section.
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