Exceptional operating performance drives record revenues and free cash flow
VANCOUVER, BC, Aug. 7, 2025 /CNW/ – Lundin Gold Inc. (TSX:LUG) (Nasdaq Stockholm: LUG) (OTCQX:LUGDF) (“Lundin Gold” or the “Company”) today announced its financial results for the second quarter of 2025, featuring record revenues of $453 million and net income of $197 million ($0.82 per share). Free cash flow1 of $236 million ($0.98 per share) was driven by strong gold production of 139,433 ounces (“oz”), with 136,737 oz sold at an average realized gold price1 of $3,361 per oz, at low cash operating costs1 of $756 and all-in sustaining costs1 (“AISC”) of $927 per oz sold. The Company also announced cash dividends totaling $0.79 per share (approximately $190 million) comprised of the fixed quarterly dividend of $0.30 per share and the variable quarterly dividend of $0.49 per share, to be paid at the end of the third quarter. All dollar amounts are stated in US dollars unless otherwise indicated. PDF Version
Ron Hochstein, President and CEO commented, “The second quarter of 2025 delivered outstanding results for Lundin Gold, featuring record revenues and record free cash flow. This was driven by excellent gold production, sales, and a robust realized gold price. Our mill achieved impressive throughput of 5,064 tpd with improved recoveries, a testament to our team’s operational excellence.
Given this strong performance and outlook, we’ve elevated the lower end of our 2025 production guidance from 475,000 to 490,000 oz while maintaining the upper end at 525,000 oz. We also expect to remain within the upper end of our cash operating cost1 and AISC1 guidance for the year. We are confident that our continued efforts to reduce costs and improve mill throughput will allow us to offset the impact of rising gold prices on royalties and profit sharing payable to employees.
As a direct result of our strong Q2 financial performance, we are pleased to declare sector leading dividends totaling $0.79 per share, comprised of both our fixed and variable components, for payment in the third quarter. This demonstrates the effectiveness of our new dividend policy in returning capital to shareholders during periods of strong free cash flow, while still allowing us to strategically invest in our long-term growth initiatives. Lundin Gold remains in a formidable financial position, poised for continued success.”
OPERATING AND FINANCIAL RESULTS SUMMARY
The following two tables provide an overview of key operating and financial results.
|
Three months ended June 30, |
Six months ended June 30, |
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|
2025 |
2024 |
2025 |
2024 |
|
|
Tonnes ore mined |
448,627 |
419,173 |
851,848 |
838,931 |
|
Tonnes ore milled |
460,820 |
424,899 |
858,979 |
838,495 |
|
Average mill throughput (tpd) |
5,064 |
4,669 |
4,745 |
4,607 |
|
Average head grade (g/t) |
10.4 |
11.0 |
10.4 |
10.2 |
|
Average recovery |
90.9 % |
89.0 % |
89.8 % |
88.6 % |
|
Gold ounces produced |
139,433 |
133,062 |
256,746 |
244,634 |
|
Gold ounces sold |
136,737 |
129,396 |
254,378 |
238,312 |
|
___________ |
|
1 Refer to “Non-IFRS Measures” section. |
|
Three months ended June 30, |
Six months ended June 30, |
|||
|
2025 |
2024 |
2025 |
2024 |
|
|
Revenues ($’000) |
452,880 |
301,431 |
809,225 |
528,172 |
|
Income from mining operations ($’000) |
314,161 |
171,757 |
547,707 |
284,994 |
|
Earnings before interest, taxes, depreciation, and amortization ($’000)1 |
318,840 |
457,069 |
560,342 |
568,681 |
|
Adjusted earnings before interest, taxes, depreciation, and amortization ($’000)1 |
318,840 |
195,401 |
560,342 |
326,857 |
|
Net income ($’000) |
196,731 |
119,291 |
350,231 |
161,188 |
|
Basic income per share ($) |
0.82 |
0.50 |
1.46 |
0.68 |
|
Cash provided by operating activities ($’000) |
254,782 |
144,169 |
449,090 |
252,083 |
|
Free cash flow ($’000)1 |
235,670 |
(123,427) |
406,453 |
(41,168) |
|
Free cash flow per share ($)1 |
0.98 |
(0.52) |
1.69 |
(0.17) |
|
Average realized gold price ($/oz sold)1 |
3,361 |
2,379 |
3,231 |
2,270 |
|
Cash operating cost ($/oz sold)1 |
756 |
725 |
773 |
730 |
|
All-in sustaining costs ($/oz sold)1 |
927 |
875 |
918 |
872 |
|
Adjusted earnings ($’000)1 |
196,731 |
98,938 |
350,231 |
156,734 |
|
Adjusted earnings per share ($)1 |
0.82 |
0.41 |
1.46 |
0.66 |
|
Dividends paid per share ($) |
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