LUNDIN GOLD REPORTS FIRST QUARTER 2025 RESULTS Strong production and high gold prices result in increased shareholder dividends
NEWS RELEASE
Vancouver, May 8, 2025
Lundin Gold Inc. Suite 2800, Four Bentall Centre Phone: +1 604 689 7842 lundingold.com
1055 Dunsmuir Street Fax: +1 604 689 4250 Email: [email protected]
Vancouver, BC, Canada, V7X 1L2
LUNDIN GOLD REPORTS FIRST QUARTER 2025 RESULTS
Strong production and high gold prices result in increased shareholder dividends
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 flow1 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 price1 of $3,081 per
oz, at low cash operating costs1 of $792 and all-in sustaining costs1 (“AISC”) of $909 per oz sold. The Company
also reported increased shareholder returns through an amendment to its dividend policy as well as the
declaration of a special dividend. All dollar amounts are stated in US dollars unless otherwise indicated.
Ron Hochstein, President and CEO commented, "The first quarter of 2025 is yet another quarter marked by record
financial results for Lundin Gold. As a result of our exploration program results in the first quarter, we have
expanded our program to continue to evaluate numerous targets. In addition, g iven the Company’s future
outlook, which includes the benefits of the recently completed process plant expansion project, we are on track
to meet our full -year guidance and have increased shareholder returns through the special dividend and
introduction of a variable dividend to complement our fixed sustainable dividend."
OPERATING AND FINANCIAL RESULTS SUMMARY
The following two tables provide an overview of key operating and financial results.
Three months ended
March 31,
2025 2024
Tonnes ore mined 403,221 419,758
Tonnes ore milled 398,159 413,596
Average mill throughput (tpd) 4,424 4,545
Average head grade (g/t) 10.4 9.5
Average recovery 88.5% 88.3%
Gold ounces produced 117,313 111,572
Gold ounces sold 117,641 108,916
1 Refer to “Non-IFRS Measures” section.
2
Three months ended
March 31,
2025 2024
Revenues ($’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 price 1 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 costs 1 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.
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.
1 Refer to “Non-IFRS Measures” section.
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• 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 AISC 1 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. Thes e 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 t he
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 ap proximately 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.
1 Refer to “Non-IFRS Measures” section.
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• 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.
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
o 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.
o Other projects that advanced during the quarter included improvements to the industrial and potable
water supply as well as enhancements to the South Portal.
o Commissioning of the four diesel-powered generators continued and is expected to be completed by
the end of the second quarter.
o 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.
o 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.
o A complete table of the conversion drilling results received to date can be found in Lundin
Gold’s press release dated May 7, 2025.
1 Refer to “Non-IFRS Measures” section.
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• Process Plant Expansion Project
o 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.
o Downtime was required in the quarter to complete the remaining tie -ins and commissioning, with
the relining of the SAG mill completed opportunistically.
o 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.
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 i n 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 qu arter, 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
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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 explo ration 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.
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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 Director s, 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.
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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 sharehold ers 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 rep orted 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.
For more information, please contact
Ron F. Hochstein Brendan Creaney
President and CEO Vice President, Corporate Development & Investor Relations
Tel (Canada): +1-604-806-3589 Tel: +1-604-376-4595