LUNDIN GOLD REPORTS FOURTH QUARTER AND FULL YEAR 2024 RESULTS Record annual production, cash generation and increased dividend
NEWS RELEASE
Vancouver, February 20, 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 FOURTH QUARTER AND FULL YEAR 2024 RESULTS
Record annual production, cash generation and increased dividend
Lundin Gold Inc . (TSX: LUG; Nasdaq Stockholm: LUG; OTCQX: LUGDF) ("Lundin Gold" or the "Company") is
pleased to report results for the fourth quarter and year ended December 31, 2024. Lundin Gold’s year is
highlighted by record annual production of 502,029 ounces (“ oz”) of gold at an all -in sustaining cost
("AISC")1 of $875 per oz sold, exceeding production guidance of 450,000 to 500,000 oz and achieving
AISC1 guidance of $820 to $890 per oz sold. This led to record high cash flow with cash from operating activities
of $662 million and adjusted free cash flow 1 of $540 million or $2.26 per share . This was achieved through
record revenues of $1,193 million realized from the sale of 495,374 oz at an average realized gold
price1 of $2,462 per oz . Record adjusted earnings before interest, taxes, depreciation, and amortization
("EBITDA")1 of $780 million were also achieved during the year. All amounts are in U.S. dollars unless otherwise
indicated.
Ron Hochstein, President and CEO commented, "Lundin Gold delivered a record -breaking 2024, exceeding
production guidance with 502,029 ounces of gold at an AISC1 of $875 per ounce. This achievement reflects our
team's dedication to operational excellence, and with the Process Plant Expansion Project substantially complete,
we anticipate increased throughput and recovery in 2025 . B ecoming debt -free in 2024 was another major
milestone and, building on this strong foundation, we've increased our quarterly dividend to $0.30 per share. In
addition, our ongoing exploration program continues to find new ounces which resulted in the highest published
Mineral Reserves and Resources at FDN highlighting the exceptional potential of FDN and the district. As a low-
cost producer, we anticipate continuing to generate significant free cash flow1 in excess of $500 million based on
a gold price of $2,500 per oz, providing flexibility for capital allocation and increased shareholder returns."
OPERATING AND FINANCIAL RESULTS SUMMARY
The following two tables provide an overview of key operating and financial results achieved during 2024
compared to the same periods in 2023.
Three months ended
December 31,
Year ended
December 31,
2024 2023 2024 2023
Tonnes ore mined 405,529 405,705 1,671,849 1,635,550
Tonnes ore milled 427,030 427,743 1,690,865 1,654,520
Average mill throughput (tpd) 4,642 4,649 4,620 4,533
Average head grade (g/t) 11.3 8.2 10.5 10.2
1 Certain additional disclosures for these specified financial measures have been incorporated by reference and can be found on
pages 15 to 17 of the Company's MD&A for the year ended December 31, 2024 available on SEDAR+.
2
Three months ended
December 31,
Year ended
December 31,
2024 2023 2024 2023
Average recovery 87.1% 88.1% 87.8% 88.4%
Gold ounces produced 135,241 99,310 502,029 481,274
Gold ounces sold 131,175 98,005 495,374 474,365
Three months ended
December 31,
Year ended
December 31,
2024 2023 2024 2023
Net revenues ($’000) 341,791 190,688 1,193,050 902,518
Income from mining operations ($’000) 215,208 78,051 703,386 435,180
Earnings before interest, taxes, depreciation, and amortization ($’000)1 232,223 67,274 1,021,373 493,976
Adjusted earnings before interest, taxes, depreciation, and amortization ($’000)1 232,223 95,908 779,549 526,045
Net income (loss) ($’000) 129,147 11,062 426,050 179,457
Basic income (loss) per share ($) 0.54 0.05 1.78 0.76
Cash provided by operating activities ($’000) 192,021 92,574 662,390 519,395
Adjusted free cash flow ($’000)1 163,767 62,330 539,783 263,473
Adjusted free cash flow per share ($)1 0.68 0.26 2.26 1.11
Average realized gold price ($/oz sold)1 2,664 2,021 2,462 1,958
Cash operating cost ($/oz sold)1 709 832 712 697
All-in sustaining costs ($/oz sold)1 879 1,062 875 860
Adjusted net earnings ($‘000)1 129,147 33,236 421,596 204,310
Adjusted net earnings per share ($)1 0.54 0.14 1.76 0.86
Dividends paid per share ($) 0.20 0.10 0.60 0.40
FOURTH QUARTER AND FULL YEAR HIGHLIGHTS
Year ended December 31, 2024
• FDN achieved record annual gold production of 502,029 oz, comprised of 320,240 oz in concentrate and
181,789 oz as doré, which exceeds the Company’s 2024 guidance.
• A total of 1,671,849 and 1,690,865 tonnes of ore was mined and processed, respectively, which is higher
than the previous year due to an increase in mill throughput.
• The average grade of ore milled was 10.5 grams per tonne (g/t) with average recovery at 87.8%. Recoveries
were affected by finely disseminated sulphide minerals in the ore and improvements have been realized
following commissioning of one of the three Jameson cells in late November.
• The Company sold a total of 495,374 oz of gold, consisting of 319,040 oz in concentrate and 176,334 oz as
doré at an average realized gold price 1 of $2,462 per oz sold for total revenues from gold sales of $1.22
billion. Net of treatment and refining charges, revenues for 2024 were $1.19 billion.
• Cash operating costs1 and AISC1 for 2024 were $712 and $875 per oz of gold sold, respectively, which are in
line with the Company’s 2024 guidance.
• The Company generated cash from operating activities of $662 million and adjusted free cash flow1 of $540
million or $2.26 per share resulting in a cash balance of $349 million at December 31, 2024.
1 Certain additional disclosures for these specified financial measures have been incorporated by reference and can be found on pages
15 to 17 of the Company's MD&A for the year ended December 31, 2024 available on SEDAR+.
3
• EBITDA1 and adjusted EBITDA 1 were $1.0 2 billion and $ 780 million, respectively, with the difference
resulting from derivative gains recognized from the buy out of the stream loan credit facility (the “Stream
Facility”) and offtake commitment (the “Offtake”) and a one-time special government levy of $1.9 million.
• Net income was $426 million including a derivative gain of $244 million, and net of corporate, exploration,
finance costs, and associated taxes . Adjusted earnings 1, which exclude the one -time finance expense
relating to the buy out of the Stream Facility and Offtake, derivative gains, and related taxes were $4 22
million, or $1.76 per share.
Fourth quarter of 2024
• Gold production was 135,241 oz, comprised of 88,834 oz in concentrate and 46,407 oz as doré.
• During the fourth quarter, 405,529 tonnes of ore were mined while the mill processed 427,030 tonnes of
ore at an average throughput of 4,642 tonnes per day (“tpd”) . Due to the power shortages in Ecuador,
mining and milling activities were decreased in order to allocate available power from the national grid and
self-generation to ensure process plant availability.
• The average ore grade milled was 11.3 grams per tonne with average recovery at 87.1%, both improvements
from the third quarter of 2024.
• The Company sold a total of 131,175 oz of gold, consisting of 88,650 oz in concentrate and 42,525 oz as
doré at an average realized gold price 1 of $2,664 per oz sold for total revenues from gold sales of $349
million. Net of treatment and refining charges, revenues for the quarter were $342 million.
• Cash operating costs 1 and AISC1 were $709 and $879 per oz of gold sold, respectively . Both metrics were
impacted by higher gold prices resulting in higher royalties and profit sharing for which the portion
attributable to employees is recorded in operating costs as well as higher diesel consumption due to the
operation of our existing power generation units to reduce our power consumption from the national grid.
• Income from mining operations was $215 million and the Company generated adjusted free cash flow 1 of
$164 million from operations, or $0.68 per share.
• EBITDA1 and net income were $2 32 million and $1 29 million, respectively. No adjustments were required
following the buy out of the Stream Facility and Offtake at the end of the second quarter.
• The Company substantially completed the Plant Expansion Project which targets increased throughput to
5,000 tpd and an increase in average recovery of 3%. Subsequent to quarter end, throughput has averaged
over 5,000 tpd. With one Jameson cell in operation, recoveries have been positively affected. The
remaining two Jameson cells are expected to be commissioned in the first quarter.
1 Certain additional disclosures for these specified financial measures have been incorporated by reference and can be found on pages
15 to 17 of the Company's MD&A for the year ended December 31, 2024 available on SEDAR+.
4
Outlook
• The Company maintains its 2025 guidance with gold production estimated between 475,000 to 525,000 oz
based on an average throughput rate of 5,000 tpd. Head grade is estimated to average 9.2 g/t while average
mill recovery is estimated at 90% . Cash operating costs 1 are estimated to range between $730 and $790
per oz of gold sold in 2025. AISC1 for 2025 is expected to range between $935 and $995 per oz of gold sold
and to fluctuate quarterly based on sustaining capital activities . Unit costs are anticipated to be higher
compared to 2024 and are primarily attributable to increased royalties and employee profit sharing
resulting from the increase in the assumed gold price from $1,900 per oz to $2,500 per oz, an increase in
power tariffs, and an increase in sustaining capital expenditures.
• The process plant expansion project is expected to be fully completed by the end of the first quarter of 2025
following commissioning of the concentrate filter and the two remaining Jameson cells . As a result, mill
throughput is anticipated to increase over the year and gold recoveries to improve. In addition, mill head
grade is also expected to improve as the year progresses based on mine sequencing. This combined with
the plant expansion translates to lower anticipated unit costs in the second half of the year relative to the
first half.
• Total sustaining capital in 2025 is estimated at $75 to $85 million and includes costs related to the fifth raise
of the tailings storage facility, improvements to industrial and potable water supply and distribution, the
next phase of upgrades to the wast e water treatment plants, power generation expansion , mobile
equipment rebuilds or replacement and underground development and improvements of the South Portal.
In addition, included in estimated sustaining capital in 2025 is a total of 15,000 metres of r esource
conversion drilling.
• Following increased rainfall in Ecuador since the start of 2025, power supply from the national grid has
normalized. Notwithstanding this, the Company expects to complete the commissioning of four additional
diesel generators purchased in 2024 by the end of the first quarter of 2025 which will allow the FDN process
plant to run slightly below capacity in the event of recurrence of power disruption from the national grid.
• Consistent with previous years, the Company expects its free cash flow 1 during the second quarter of 2025
to be lower than other quarters due to the payment of annual profit sharing to the government and
employees along with remaining income taxes owed. This variation is expected to be more pronounced in
2025 due to the Company's strong operating performance achieved in 2024 which has been further
bolstered by high gold prices.
• As part of the 2025 near -mine program a total of 65,000 metres of drilling is planned from surface and
underground using 1 3 rigs at an estimated cost of $32 million . The program will focus on extending the
mine life of FDN by exploring several advanced targets within and around the FDN mine . Underground
drilling will continue exploring the extension of the FDNS sector, while surface drilling in 2025 will primarily
focus on Bonza Sur and FDN East targets, as well as explore for new sectors around FDN . The Company is
currently drilling and evaluating the Bon za Sur deposit and anticipates publishing an initial resource by the
middle of 2025.
1 Certain additional disclosures for these specified financial measures have been incorporated by reference and can be found on pages
15 to 17 of the Company's MD&A for the year ended December 31, 2024 available on SEDAR+.
5
• The regional exploration program will focus on the unexplored large package of mineral concessions located
on a highly prospective environment which hosts the Fruta del Norte deposit . This will be the first year of
a new three-year greenfield strategy to identify new areas for exploration drilling . The 2025 program
includes an airborne geophysical magnetic survey, geochemical sampling programs and extensive field work
and is estimated to cost $8 million.
• In accordance with the Company ’s updated dividend policy, Lundin Gold anticipates paying quarterly
dividends of $0.30 per share , which is equivalent to approximately $300 million annually , subject to the
approval of the Board of Directors.
Liquidity and Capital Resources
At the end of 2024, the Company is in a strong financial position.
(in thousands of U.S. dollars) As at December 31,
2024
As at December 31,
2023
Financial Position:
Cash 349,200 268,025
Working capital 458,944 346,859
Total assets 1,527,481 1,468,209
Long-term debt - 305,647
As at December 31, 2024, the Company had cash of $349 million and a working capital balance of $458 million
compared to cash of $268 million and a working capital balance of $347 million at December 31, 2023. The
change in cash during 2024 was primarily due to cash generated from operating activities of $662 million and
proceeds from the exercise of stock options and anti -dilution rights totaling $22.1 million. This is offset by
scheduled principal, interest, and finance expense repayments under the Stream Facility totaling $35.8
million; the buy out of the Stream Facility and Offtake of $330 million; dividends of $144 million; and cash
outflows of $93.5 million relating to investing activities.
Capital Expenditures
• Sustaining Capital
o Total sustaining capital spent during the year was $51.2 million, of which $13.9 was spent during the
fourth quarter. This total exceeds the top end of guidance of $45.0 million due to the purchase of
four additional diesel-powered generators.
o Highlights of sustaining capital projects completed or substantially completed in 2024 include
implementation of a mine dispatch system, the upgrade of the surface haul road, replacement of the
concrete batch plant, primary crusher upgrade, camp refurbishment, and improvements to the
sewage treatment plants.
o Significant progress was made on preliminary works for future TSF expansion.
o Four additional diesel -powered generators were purchased, and the units are expected to be
commissioned by the end of the first quarter of 2025 . In the event of a power disruption from the
national grid, the additional generators are expected to allow the FDN process plant to operate
slightly below capacity.
6
o The 2024 conversion drilling program was completed during the third quarter. The program focused
on the northern-central sector of FDN deposit with approximately 13,755 metres drilled across 110
holes.
o Most of the results confirmed the mineralization in drilled areas with positive intercepts
associated with breccias and stockwork zones, similar to the mineralization found in the
north sector of the current Mineral Reserve envelope.
o All results were incorporated in the geological and the mineral resource model, and the
Company updated its estimates of Mineral Resources and Reserves as at December 31, 2024
for Fruta del Norte deposit on February 18, 2025.
• Process Plant Expansion Project
o All major structural work was completed during the fourth quarter and one Jameson cell
commissioned. Remaining work during the first quarter of 2025 will be focussed on commissioning
of the new concentrate filer and the two remaining Jameson cells.
o Plant throughput through the first month of 2025 was above 5,000 tpd.
o Recoveries were positively impacted after the first of three Jameson cells was commissioned in late
November.
o During 2024, project expenditures of $38.8 million were incurred, of which $21.1 million was incurred
during the fourth quarter.
Health and Safety
During 2024 there were ten Lost Time Incidents (“LTIs”) and 13 Medical Aid Incident (“MAIs”) . The Total
Recordable Incident Rate across exploration and operations was 0.66 per 200,000 hours worked during 2024.
Community
Lundin Gold continued to support several community projects during the year. One of the Company’s most
significant programs, run by the non -governmental organization Educación para Compartir, focuses on
mental health and well -being in our local communities . At year end, the program advanced into its second
year, continuing to show increasing participation by local community members . From inception of the
program in July 2023 to the end of the fourth quarter of 2024, over 3,500 counselling sessions occurred, and
more than 400 youth were registered in regular extra -curricular activities, 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 significant
projects including the second phase of infrastructure maintenance for the local school in Los Encuentros
(more than 1,300 students), construction of sidewalks, curbs and road safety infrastru cture for El Pindal
community, maintenance of the infrastructure of smaller local schools and the construction of two bridges in
Río Blanco Community.
7
Local businesses continue to be supported by the Company in conjunction with the Lundin Foundation . The
local companies that participate in the Lundin Foundation’s local supplier development program continued
to provide products and services to FDN, while also advancing growth strategies . The Lundin Foundation’s
Soy Emperadora program, which supports women led businesses in the Province of Zamora Chinchipe,
continued to show positive impacts and results . As part of the relationship with the Shuar Indigen ous
Peoples, Lundin Gold and the Lundin Foundation continue to work to implement several initiatives to
promote the culture of and to develop economic opportunities for the Shuar People in Zamora Chinchipe.
EXPLORATION
Near-Mine Exploration Program
During the year, the Company completed a total of 60,965 metres across 174 holes from surface and
underground, of which approximately 15,640 metres across 42 holes were drilled in the fourth quarter.
Underground drilling explored mainly FDNS while drilling from surface continued to test sectors located along
the extensions of the controlling structures of FDN, such as Bonza Sur and FDN East.
At Bonza Sur, the drilling program advanced the deposit delineation and extension. At FDN East, drilling
focused on follow up drilling from previous results. Exploratory drilling was also completed in distinct sectors
located to the east and south of the Bonza Sur deposit.
• At Bonza Sur, located only one kilometre from FDN, 16 surface drill holes were completed and
continue to record wide mineralized intercepts in distinct areas of the deposit. Along the south
extension, the drilling program indicates the mineralization continuity for an additional 800 metres
in this direction. In the central portion, the drilling program enabled the lateral extension of 150
metres in the east direction, while in the north portion of Bonza Sur, drill holes intercepted a higher-
grade gold zone close to the surface surrounded by wide disseminated gold mineralization and
confirmed the mineral envelope in this sector. 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 mainly in the south and east directions.
• At FDN East, drilling continues to explore around the recently discovered buried epithermal
mineralized system. Three drill holes were completed during the quarter and intercepted gold
mineralization associated to zones of hydrothermal alteration with breccias and disseminated
sulfides in the central and western part of the sector, suggesting areas for further follow up drilling.
• The drilling exploratory program aiming to explore new sectors advanced in distinct targets near the
FDN deposit. At Aguas Mesas, exploratory drilling tested the south continuity of the Bonza Sur
mineralized trend, and results are pending.
The underground exploration drilling program continues to focus on the southern limit of the FDN deposit,
at the FDNS target, targeting the delineation of a new high grade vein system. During the quarter, four drill
holes were completed with most drill holes confirming gold mineralization associated with vein and veinlet
zones of chalcedony and manganoan-calcite with sulfides and visible gold. The program also advanced along
the continuity of the FDN deposit at depth, where drill holes intercepted several zones of narrow veins of
chalcedony-calcite, indicating the continuity of the mineralization in this sector.
8
Regional Exploration Program
The regional program continues to advance in the identification of important indicators that point toward
the presence of buried epithermal deposits in the southern basin . The 2024 drilling program focused on
distinct sectors along the southeastern and southwestern borders of the Suarez basin and a total of 1,889
metres across five drill holes were completed in the fourth quarter resulting in 5,337 metres completed under
the 2024 program across 12 drill holes . During the fourth quarter of 2024, the regional drilling focused o n
the Puente Princesa target . At Puente Princesa, located along the west border of Suarez Basin, the drilling
program tested a geochemical soil anomaly (gold and epithermal pathfinder elements like arsenic and
mercury) located on the volcanic rocks of Santiago formation and intercepted narrow hydrothermal
alteration represented by chalcedony veinlets and quartz calcite veins with limited sulfides occurrence .
Results remain pending.
Geophysical Program
During the quarter, a 2D seismic survey was completed which was designed to provide detailed continuous
images of the main controlling structures at FDN and the area of focus of the near mine exploration program.
CORPORATE
• Lundin Gold is debt free following the buy out of the Stream Facility and Offtake on June 27, 2024 for a
purchase price of $330 million.
• In May, the Company published its 2023 Sustainability Report, integrating its climate report, highlighting
its progress and performance against its 5-Year Sustainability Strategy.
• A number of changes to the Company’s officers took place in 2024:
o Mr. Chester See was appointed Chief Financial Officer in the third quarter.
o Mr. Brendan Creaney was appointed Vice President, Corporate Development and Investor
Relations in the fourth quarter.
• The Company amended its dividend policy by increasing its quarterly cash dividend from $0.10 to $0.20
per share on August 8, 2024, and paid out a total of $143.9 million in dividends during the year.
• With the release of its 2024 year -end results, the Company increased its cash dividend to $0.30 per
share, equivalent to approximately $300 million annually, and has declared a dividend payable on March
26, 2025 (March 31, 2025 for shares trading on Nasdaq Stockholm) to shareholders of record on March
11, 2025. Concurrently, the Company announced a Normal Course Issuer Bid program which allows the
Company to purchase up to 12,020,129 common shares over a twelve-month period.
Qualified Persons
The technical information relating to Fruta del Norte contained in this MD&A 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 MD&A 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.