LUNDIN GOLD REPORTS SECOND QUARTER 2025 RESULTS Exceptional operating performance drives record revenues and free cash flow
NEWS RELEASE
Vancouver, August 7, 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 SECOND QUARTER 2025 RESULTS
Exceptional operating performance drives record revenues and free cash flow
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.
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 $0.79 per share, comprised of both our fixed and variable components, for payment in the third quarter.
This demonstrates the effectiveness of our new dividend policy in returning capital to shareholders during periods
of strong free cash flow, while still allowing us to strategically invest in our long-term growth initiatives. Lundin
Gold remains in a formidable financial position, poised for continued success."
OPERATING AND FINANCIAL RESULTS SUMMARY
The following two tables provide an overview of key operating and financial results.
1 Refer to “Non-IFRS Measures” section.
2
Three months ended
June 30,
Six months ended
June 30,
2025 2024 2025 2024
Tonnes ore mined 448,627 419,173 851,848 838,931
Tonnes ore milled 460,820 424,899 858,979 838,495
Average mill throughput (tpd) 5,064 4,669 4,745 4,607
Average head grade (g/t) 10.4 11.0 10.4 10.2
Average recovery 90.9% 89.0% 89.8% 88.6%
Gold ounces produced 139,433 133,062 256,746 244,634
Gold ounces sold 136,737 129,396 254,378 238,312
Three months ended
June 30,
Six months ended
June 30,
2025 2024 2025 2024
Revenues ($’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 ($)1 0.82 0.41 1.46 0.66
Dividends paid per share ($) 0.86 0.10 1.16 0.20
SECOND QUARTER HIGHLIGHTS
Financial Results
• Gold sales totalled 136,737 oz, consisting of 89,615 oz in concentrate and 47,122 oz as doré, resulting in
gross revenues of $460 million at an average realized gold price 1 of $3,361 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 March 31, 2025. Net of treatment and refining charges, revenues for the quarter were
$453 million.
• Average realized gold price1 includes $3,276 per ounce of gross price received and a favourable impact of
$85 per ounce from adjustments to provisionally priced sales.
• Cash operating costs 1 and AISC1 were $756 and $927 per oz of gold sold, respectively. Sustaining capital
expenditures1 are expected to increase during the second half of 2025 with the continued ramp up of the
fifth tailings dam raise and other site infrastructure improvement projects.
• The Company generated cash from operating activities of $255 million and free cash flow1 of $236 million,
or $0.98 per share, resulting in a cash balance of $493 million at June 30, 2025 following quarterly dividend
and special dividend payments of $107 million and $100 million, respectively.
1 Refer to “Non-IFRS Measures” section.
3
• EBITDA1 was $319 million while income from mining operations was $314 million which, after deducting
corporate, exploration, and taxes, resulted in net income of $197 million for the quarter or $0.82 per share.
Production Results
• The mine ramped up during the second quarter to keep pace with the mill resulting in a record 448,627
tonnes mined at an average grade of 9.3 g/t.
• The mill processed 460,820 tonnes at an average throughput rate of 5,064 tpd, with improved recoveries
of 90.9%, achieving the process plant expansion operational targets. The average grade of ore milled was
10.4 g/t.
• Gold production was 139,433 oz which was comprised of 92,242 oz in concentrate and 47,191 oz as doré.
Outlook
• As a result of the strong operating performance in the first half of the year , the Company is updating its
2025 production guidance from 475,000 to 525,000 oz to 490,000 to 525,000 oz. Due to mine sequencing,
the Company expects a reduction in average head grade during the second half of the year.
• The Company expects its cash operating cost1 and AISC1 to be near the upper end of guidance of $730 to
$790 and $935 to $995 per oz sold respectively. While the significant increase in gold price has led to record
financial performance during the first half of 2025, it has also resulted in increased royalties and profit
sharing to employees, metrics that impact cash operating cost1 and AISC1. Continued efforts to reduce cost
and improvements to mill throughput is expected to allow the Company to remain within the upper end of
its cost guidance even with average realized gold prices 1 of $3,231 per oz during the first half of 2025 ,
compared to its guidance assumption of $2,500 per oz.
• Sustaining capital expenditures1 are expected to increase over the remainder of the year and come in at the
previously guided $75 to $85 million.
• The near-mine underground drilling program is expected to continue to advance at FDNS where the primary
focus is the conversion and expansion of this new system. The surface drilling program is expected to
continue to explore the recently discovered Tranc aloma copper-gold porphyry mineralization, expand the
mineralization along the Bonza Sur and FDN East sectors, and advance on new sectors around FDN.
• Seventeen rigs are currently turning across the conversion and near -mine exploration programs. The
Company increased 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 co nversion drilling program from 15,000 metres to
approximately 25,000 metres. A minimum of 108,000 metres of drilling are planned across the conversion
and near-mine drilling programs for 2025.
• Mine engineering work is underway on FDNS to evaluate geotechnical, mine design, metallurgical
characteristics and infrastructure needs with the goal of integrating FDNS into FDN’s long -term mine plan
in 2026.
• The regional exploration program is expected to continue to focus on the unexplored large package of
mineral concessions located on a highly prospective environment which hosts the Fruta del Norte deposit.
1 Refer to “Non-IFRS Measures” section.
4
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.
• The total estimated cost of the near-mine and regional program is $47 million for the year. This represents
the largest drill program ever completed on the land package that hosts the FDN deposit.
• 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 a n 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 June 30, 2025, the Company is in a strong financial position.
(in thousands of U.S. dollars) As at June 30,
2025
As at December 31,
2024
Financial Position:
Cash 493,372 349,200
Working capital 562,273 458,944
Total assets 1,618,899 1,527,481
Long-term debt - -
As at June 30, 2025, the Company had cash of $493 million and a working capital balance of $562 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 2025 Period was primarily due to cash generated from operating activities of $449
million and proceeds from the exercise of stock options and anti -dilution rights totalling $17.7 million. This is
offset by dividends paid of $280 million and capital expenditures of $42.6 million.
Capital Expenditures
Sustaining Capital
• Sustaining capital expenditures1 during the second quarter were $15.9 million.
• Construction of the fifth raise of the tailings dam started in the second quarter with progress to date
consistent with plan. Completion during the first quarter of 2026 remains as expected.
• Commissioning of the four additional diesel-powered generators was completed during the second quarter,
and they are now operational. In the event of a power disruption from the national grid, the additional
generators are expected to allow the FDN process plant to run slightly below capacity.
• Other projects that advanced during the quarter included improvements to the wastewater treatment
plants, construction of camp and administration building, as well as enhancements to the South Portal.
• The 2025 conversion drilling program is focused on FDNS, located in the south portion of the FDN deposit.
During the second quarter, the conversion drilling program completed approximately 7,085 metres across
50 holes with three rigs currently turning.
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.
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o A complete table of the conversion drilling results received to date can be found in Lundin Gold’s
press release dated July 31, 2025.
o The conversion drilling program has been expanded to 25,000 metres from 15,000 metres.
Health and Safety
During the second quarter there were no Lost Time Incidents and no Medical Aid Incidents. The Total Recordable
Incident Rate across the Company was 0. 00 per 200,000 hours worked for the quarter and 0.10 for the first six
months of 2025.
Community
Lundin Gold sponsored community projects continued to advance well in the second quarter of 2025. One of
the Company’s most impactful programs, run by the non-governmental organization Educación para Compartir
(“EPC”), has focused on mental health and well-being in our local communities since its inception in November
2023. During the second quarter, approximately 957 counselling sessions were provided, with an intake of
approximately 55 new patients. As of the end of June, the sports academy component of the program had 359
youth registered in extra -curricular activities, including English studies, basketball, soccer, dance, music and
boxing. During the quarter, Lundin Gold committed to the second phase of the EPC program, which is planned
to run from July 2025 to December 2026. This second phase will build on the previous phase and seek to increase
its reach and impact.
Engagement with El Pangui, Paquisha, Zamora, Yantzaza and Los Encuentros local governments continues to
support rural road maintenance, road emergencies caused by extreme weather events, community wellbeing
and regional exploration activities. During the quarter, the Company committed to several significant projects,
such as improvements to the water system in El Pangui Canton and the installation and electricity network
expansion in the Paquisha Canton.
Lundin Gold continued to participate in the community roundtable process. Six separate thematic roundtables
were held in May. Approximately 200 individuals participated in these sessions, including local vendors, local
authorities and Lundin Gold personnel.
Local businesses receive ongoing support from the Company, in conjunction with the Lundin Foundation. The
local companies that participate in the Lundin Foundation’s supplier development program continued to provide
products and services to FDN, while also advancing growth strategies. The Lundin Fou ndation continued to
support the third cohort of its successful Soy Emprendedora program. In furtherance of the Company’s long -
standing relationship with the Shuar Indigenous Peoples, Lundin Gold and the Lundin Foundation continued to
advance the implementation of a Shuar local supplier initiative for FDN.
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EXPLORATION
Near-Mine Exploration Program
During the second quarter of 2025, the Company completed a total of 19,788 metres across 35 holes from
surface and underground.
The underground near mine drilling program focused on potential extensions of the FDNS deposit, which remains
open for expansion in the north and along the south extensions where two underground rigs are currently
turning. The underground drilling program continued to advance in the quarter at FDN East and is currently
exploring the mineralization continuity in the central portion of this target. As at the date of this press release,
three underground rigs are active in the near mine drilling program. In addition to the drilling programs, mine
engineering work is underway on FDNS to evaluate geotechnical, mine design, metallurgical characteristics and
infrastructure needs with the goal of integrating FDNS into FDN’s long-term mine plan in 2026.
The surface near mine drilling program advanced in the recently discovered copper-gold mineralization at the
Trancaloma target, while also continuing the delineation of the Bonza Sur deposit and drilling on new sectors
like the Sandia porphyry, located a few kilometres east from the FDN deposit. As at the date of this press release,
11 surface rigs are drilling, with four of them at Trancaloma, one at Sandia, one below FDN depth, one at FDN
East, one at Bonza Sur, and three testing new sectors.
• At Trancaloma, located on the east border of Bonza Sur, the drilling program confirmed the extension of the
recently discovered copper-gold porphyry mineralization. In the eastern portion of the target, the drilling
program followed up on drilling results from the first quarter, extended the mineralized system along the
northeastern and southwestern directions, and identified areas for further expansion. The drilling program
also advanced in the western portion of Trancaloma, where another near surface copper mineralized zone
was identified.
• At Bonza Sur, drill holes were completed along south and southeastern extensions and confirmed the
deposit’s continuity. In the south end of the deposit recent drilling suggests further potential for expansion
along this direction. Toward the southeastern extension, the drilling program advanced along the limit with
the Trancaloma porphyry.
• At FDN East, the surface drilling program advanced in conjunction with the underground program and
continued to intercept the mineralization continuity in the central part of the target and indicated areas for
further expansion potential toward the north and south direction.
• At FDN, directional drilling technology has been employed in the surface drilling program to enhance
precision for the target testing in the deeper portions of the deposit. Throughout the program, drill holes
tested the mineralization continuity at distinct depths along the central portion of FDN.
• 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. At Sandia, initial drilling results revealed the occurrence of a new shallow and wide copper-
gold porphyry mineralization.
A table of second quarter 2025 near mine results for the FDNS, FDN East, Bonza Sur and Trancaloma and Sandia
targets received to date can be found in Lundin Gold’s press releases dated July 31 and August 5, 2025.
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Regional Exploration Program
The Company advanced its multi-year regional exploration program during the second 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 exploration program continues to advance 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 programs were completed in distinct
parts of the district during the quarter and resulted in the identification of several new potential targets for
further evaluation. Furthermore, exploration started at the Soberano concession, located approximately 22
kilometres southwest from the FDN Mine, where geological mapping followed by soil and rock sampling were
completed.
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 dividends during the quarter as follows:
o A special dividend of $0.41 per share on June 9, 2025 (June 12, 2025 for shares trading on Nasdaq
Stockholm) for a total of $100 million.
o A quarterly dividend of $0.45 per share, comprised of the fixed dividend of $0.30 per share and variable
dividend of $0.15 per share, on June 25, 2025 (June 30, 2025 for shares trading on Nasdaq Stockholm)
for a total of $107 million.
• With the release of its second quarter 2025 results, the Company has declared cash dividends totaling $0.79
per share, comprised of the fixed dividend of $0.30 per share and variable dividend of $0.49 per share,
payable on September 25, 2025 (September 30, 2025 for shares trading on Nasdaq Stockholm ) to
shareholders of record at the close of business on September 10, 2025. Pursuant to the Company’s dividend
policy, the variable dividend was calculated based on 50% of the Company’s normalized free cash flow, after
deducting the fixed dividend paid, during the second quarter of 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.
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Webcast and Conference Call
The Company will host a conference call and webcast to discuss its results on August 8 at 5:30 a.m. PT, 8:30 a.m.
ET, 2:30 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 / 02256
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 August 15, 2025.
Toll Free North America Replay Number: +1 888-660-6345
International Replay Number: +1 416-764-8677
Replay passcode: 02256 #
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 shareholders 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 reported 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 12 of the Company's MD&A for the year ended August 7, 2025 available on SEDAR+.