Lundin Gold Reports Fourth Quarter and Full Year 2025 Results Record cash flow generation and expanding growth pipeline across epithermal and porphyry systems
NEWS RELEASE
Vancouver, February 19, 2026
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 2025 Results
Record cash flow generation and expanding growth pipeline across epithermal and
porphyry systems
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 flow¹ 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.
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 costs¹ of $838/oz and AISC¹ 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.
2
OPERATING AND FINANCIAL RESULTS SUMMARY
The following two tables provide an overview of key operating and financial results.
Three months ended
December 31,
Year ended
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
December 31,
Year ended
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.
1 Refer to “Non-IFRS Measures” section.
3
• 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 price 1 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 costs 1 and AISC 1 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 prices 1. AISC 1 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 flow 1 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 amortization 1 (“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.
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 o f 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 price 1 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 flow 1 of $328
million, or $1.36 per share.
1 Refer to “Non-IFRS Measures” section.
4
• 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.
Outlook
• Gold production at FDN for 2026 is estimated to be between 475,000 to 525,000 oz based on an
average throughput rate of 5,500 tpd. Head grade is estimated to average 8.3 g/t, with fluctuations
expected during the year as different sections of the ore body are mined. Average mill recovery for
the year is estimated at 91%.
• Cash operating costs 1 are estimated to range between $900 and $960 per oz of gold sold in 2026.
AISC1 for 2026 is expected to range between $1,110 and $1,170 per oz of gold sold and to fluctuate
quarterly based on sustaining capital activities. Unit costs are anticipated to be higher compared to
2025, primarily attributable to increased royalties and sta tutory employee profit sharing resulting
from the higher assumed gold price of $4,000 per oz. This assumption adds approximately $150 per
oz to unit costs compared to our 2025 guidance which was based on a gold price of $2,500 per oz.
• Sustaining capital expenditures1 for 2026 is projected to range between $75 million and $90 million.
This investment will fund several key initiatives that support the long -term performance of the
operation. A major component of this capital is the completion of the fifth raise of the tailings storage
facility, which began in 2025, and commencement of the sixth raise including development of a new
quarry. These raises are designed to provide additional storage capacity to accommodate higher
throughput and extended mine life. Guidance also includes expenditures for infrastructure
enhancements and mobile equipment overhauls or replacements.
• Following the recent inclusion of FDNS into Mineral Reserves, underground mine development
toward the deposit is planned to proceed. The mine to mill expansion study is examining how
incorporating FDNS into the broader mine plan could support sustaining higher processing
throughputs and contribute to increased production over time. The Company now expects to make
a single, integrated investment decision in 2026, informed by analysis of the most efficient mining
rates at both FDN and FDNS and options for increasing processing capacity beyond 5,500 tpd. The
anticipated non -sustaining capital costs associated with the initial FDNS develop ment in 2026 is
expected to be $30 - $35 million. Further details on future spending towards the integrated expansion
will be provided as this opportunity is further advanced and finalized.
• 2026 is set to be a landmark year for Lundin Gold, featuring the largest exploration program in the
Company's history with 133,000 metres of drilling planned. The near-mine exploration program will
account for approximately 100,000 metres, combining surfa ce and underground drilling aimed at
extending the mine life of FDN. This investment will target high -grade epithermal gold deposits and
advance exploration of the promising copper -gold porphyry corridor, building on the strong results
achieved to date.
• In addition to near -mine efforts, the regional program will focus on the Company’s extensive and
highly prospective land package surrounding FDN and beyond. Following reconnaissance work
completed in 2025, 8,000 metres of drilling is planned on advanced ta rgets identified within this
underexplored district, marking an important step in unlocking new growth opportunities.
1 Refer to “Non-IFRS Measures” section.
5
• Separately, 25,000 metres of resource conversion drilling is anticipated in 2026 to support the
updating of Mineral Reserve and Resource estimates. The total investment in our 2026 exploration
program is estimated at $85 million, underscoring the Company’s commitment to growth through
exploration
• Under its dividend policy, the Company anticipates continuing to declare quarterly minimum
dividends of $0.30 per share, equivalent to approximately $300 million annually based on currently
issued and outstanding shares, plus a variable dividend equal to an amount based on at least 50% of
the Company’s normalized free cash flow, after the deduction of the fixed dividend.
Liquidity and Capital Resources
At the end of December 31, 2025, the Company is in a strong financial position.
(in thousands of U.S. dollars) As at December 31,
2025
As at December 31,
2024
Financial Position:
Cash 630,181 349,200
Working capital 594,654 458,944
Total assets 1,787,158 1,527,481
As at December 31, 2025, the Company had cash of $630 million and a working capital balance of $595 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 year ended December 31, 2025 was primarily due to cash generated from
operating activities of $1.02 billion and proceeds from the exercise of stock options and anti -dilution rights
totaling $18.9 million. This is offset by dividends paid of $664 million and capital expenditures of $97.2
million.
Capital Expenditures
Sustaining Capital Expenditures1
• Total sustaining capital spent during the year was $60.3 million, of which $23.1 was spent during the
fourth quarter.
• Construction of the fifth tailings dam raise reached 85% completion and is on track for completion
during the first quarter of 2026.
• Key sustaining capital projects completed or advanced substantially during 2025 include
enhancements to camp facilities, construction of an administration building, commissioning of four
additional diesel generators, mobile equipment rebuilds or replacement, as well as other operational
infrastructure improvements.
1 Refer to “Non-IFRS Measures” section.
6
Non-Sustaining Capital Expenditures1
• Non-sustaining capital expenditures1 of $20.9 million were incurred during the year ended December
31, 2025 , of which $4.3 million was incurred during the fourth quarter, for growth -oriented
investments such as the process plant expansion, conversion drilling, and associated permitting and
study expenditures not related to current operations.
• The 2025 conversion drilling program was focused on FDNS, located in the southern portion of the
FDN deposit. During the year, the conversion drilling program completed approximately 25,634
metres across 187 holes, of which approximately 6,811 metres across 56 holes were drilled in the
fourth quarter. Two underground rigs are currently active in the conversion drilling program.
o The completed 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 Drilling results up to November 1, 2025 were incorporated in the geological and the mineral
resource model, and the maiden Mineral Resources and Reserves estimate for the FDNS
deposit was announced on February 17, 2026.
o A complete table of results received to date can be found in Lundin Gold's press releases
dated May 4, September 2, November 1, 2025 and February 17, 2026.
Health and Safety
During the fourth quarter there were no Lost Time Incidents (“LTIs”) and three Medical Aid Incidents (“MAIs”)
and for the year ended December 31, 2025 , the Company recorded no LTIs and nine MAIs. The Total
Recordable Incident Rate (“TRIR”) across exploration and operations was 0.22 per 200,000 hours worked
during 2025, representing the lowest annual TRIR ever achieved by Lundin Gold.
Community
Lundin Gold's community investment initiatives continued to advance throughout Q4 2025. The Company's
flagship well-being program, delivered through Educación para Compartir, continued to demonstrate strong
community participation across its mental health counselling, youth sports academy, and English education
streams. In addition, the 2025 university preparation program concluded successfully with placements of
local students in public institutions across Ecuador. During the quarter, the Company launched a school meals
initiative serving over 1,200 students in Los Encuentros in partnership with the Lundin Foundation, integrating
local agricultural suppliers into the program's delivery model.
Local government partnerships with Yantzaza and Los Encuentros advanced through support agreements
targeting rural infrastructure, basic service infrastructure, community well-being, and livestock and local
farmers initiatives. Key commitments during the quarter included waste management system improvements,
livestock trade infrastructure, street lighting and electrical infrastructure, and community childcare facility
enhancements.
1 Refer to “Non-IFRS Measures” section.
7
The community dialogue roundtable process remained active, facilitating engagement among local
stakeholders, government representatives, and Company personnel. The Lundin Foundation's supplier
development program continued strengthening local business capacity while supporting procurement
objectives.
The partnership with Shuar Indigenous Peoples advanced through the Lundin Foundation, including the
implementation of a Shuar-owned tire distribution enterprise to supply FDN and ongoing support for cocoa
and sugar cane production projects with Shuar communities.
EXPLORATION
Near-Mine Exploration Program
During the year, the Company completed a total of 95,885 metres across 196 holes from surface and
underground, of which approximately 27,019 metres across 60 holes were drilled in the fourth quarter.
The underground near mine drilling program focused on the FDNS deposit, which remains open for expansion
in the main extensions and where one underground rig is currently turning. At FDN, one rig is currently
exploring the mineralization continuity at depth. The underground drilling program also continues to advance
at FDN East where one rig is currently exploring the central portion of the target and another rig is testing the
east extension of this vein system. Four underground rigs are active in the near mine drilling program.
The surface near mine drilling program advanced the recently discovered copper-gold mineralization at both
the Trancaloma and Sandia targets. Furthermore, surface drilling continues to explore the Castillo target, in
distinct sectors along the south extension of the Suarez Basin, and the recently discovered Chontas target.
Eleven surface rigs are drilling with four at Sandia, one at Trancaloma, one at Castillo, one at Chontas and
four targeting new discoveries.
• At Sandia, located two kilometres from FDN, drilling results confirmed and expanded the recently
discovered copper-gold mineralization. The completed drill holes helped define the western limit of
the deposit and extended a wide zone of copper-gold porphyry mineralization along the
northwestern direction both near surface and at depth.
• At Trancaloma, located four kilometres from FDN, results of the drilling program confirmed the lateral
and vertical continuity of the copper-gold porphyry mineralization. In the southeastern portion of
the target, drilling confirmed the extension of the mineralization and indicated areas for further
expansion along this direction.
• At Castillo, drilling confirmed the continuity of the high-grade copper-gold mineralization along the
southwestern direction and identified potential new areas for further drilling under the Suarez Basin
cover.
• At Chontas, located approximately ten kilometres south of FDN, the drilling program identified
another occurrence of wide, shallow, copper-gold porphyry mineralization, and indicated areas for
further expansion in this new sector.
• An exploratory drilling program is underway to define additional exploration targets underneath the
Suarez Basin cover. The program is systematically testing the presence of hydrothermal alteration
horizons and epithermal deposits pathfinder elements hosted in the Suarez Basin sediments, which
could potentially indicate gold epithermal systems at depth.
8
• 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 continues to cover unexplored sectors in the near mine area.
A table of fourth quarter 2025 near mine results received to date can be found in Lundin Gold’s press release
dated February 12 and 18, 2026.
Regional Exploration Program
The Company advanced its multi -year regional exploration program during 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 ho sts the Fruta del Norte mine and several large copper -gold
projects. 2026 is the first year of drill testing targets with 8,000 metres planned. The exploration program
continues to advance in the Gamora district, located 65 kilometres north of FDN and ap proximately 4
kilometres north of the Mirador copper -gold mine. Furthermore, exploration activities started at the
Guacamayo District, located 17 kilometres south of FDN.
The Gamora district comprises multiple exploration sectors that exhibit geological features similar to those
found in copper -gold porphyry systems. Additional geochemical sampling program results were received
from distinct parts of the district during th e fourth quarter and supported the identification of additional
potential targets for further evaluation. At the Guacamayo district, geological mapping followed by soil and
rock sampling was completed in the central portion of the concession. Furthermore , the recently acquired
airborne geophysics data (Radiometric and Magnetic), which covered most of the regional concessions, were
processed and supported the selection of additional potential exploration targets.
CORPORATE
• Effective November 7, 2025, Mr. Ron Hochstein stepped down as President, CEO, and Director of the
Company, and was succeeded by Mr. Jamie Beck.
• Lundin Gold completed its new five -year sustainability strategy (2026 -2030) to coincide with the
expiry of its prior five -year strategy. Anchored by the vision of “Transforming lives through
responsible mining”, the strategy is built on five strategic pill ars: Shared Prosperity, Stakeholder
Trust, Responsible Governance, Environmental Stewardship and Valued Workforce. With ambitious
targets for 2030 and beyond, this strategy will guide Lundin Gold’s legacy as a leading gold company,
a trusted community partner, and a driver of long-term local prosperity.
• The Company amended its dividend policy by increasing the existing quarterly fixed dividend from
$0.20 to $0.30 per share and introducing a new variable quarterly dividend based on at least 50% of
the Company’s normalized free cash flow during the precedin g quarter less the Fixed Dividend paid
during such period. During 2025, the Company paid out a total of $664 million in dividends as follows:
o Special dividend on June 9, 2025 for a total of $100 million;
o Quarterly fixed dividends for a total of $289 million; and
o Quarterly variable dividends for a total of $275 million.
• With the release of its 2025 year end results, the Company has declared quarterly dividends totaling
$1.15 per share, comprised of the fixed dividend of $0.30 per share and variable dividend of $0.85
per share, payable on March 2 6, 2026 (March 31, 2026 for shares trading on Nasdaq Stockholm) to