LUNDIN GOLD REPORTS THIRD QUARTER OF 2024 RESULTS Record cash generation, revenue, and adjusted EBITDA achieved and supported by a strong gold price
NEWS RELEASE
Vancouver, November 7, 2024
Lundin Gold Inc. Suite 2800, Four Bentall Centre
1055 Dunsmuir Street
Phone: +1 604 689 7842
Fax: +1 604 689 4250
lundingold.com
Email: [email protected] Vancouver, BC, Canada, V7X 1L2
LUNDIN GOLD REPORTS THIRD QUARTER OF 2024 RESULTS
Record cash generation, revenue, and adjusted EBITDA achieved and supported by a
strong gold price
Lundin Gold Inc. (TSX: LUG) (Nasdaq Stockholm: LUG) (OTCQX: LUGDF) ("Lundin Gold" or the "Company") is
pleased to report results for the third quarter of 2024, highlighted by record high cash flow with cash from
operating activities of $218 million and adjusted free cash flow 1 of $182 million or $0.76 per share. This was
achieved through record revenues of $323 million realized from the sale of 125,887 ounces (“oz”) at an average
realized gold price 1 of $2,615 per oz . Record adjusted earnings before interest, taxes, depreciation, and
amortization (“EBITDA”)1 of $220 million were also achieved during the quarter. Cash operating costs1 and all-
in sustaining costs (“AISC”)1 this quarter were $681 and $877 per oz sold, respectively. All amounts are in U.S.
dollars unless otherwise indicated.
"I’m pleased to announce that Lundin Gold has achieved another quarter of record results. Our operating cash
flow reached a record high of $218 million, and we again set new records for both revenue and adjusted EBITDA1.
This was underscored by both the team’s operating performance and a high gold price.” Ron Hochstein, President
and CEO commented, “ As we move into the last quarter of the year, we expect to achieve the high end of
production guidance of 450,000 to 500,000 oz and the upper end of AISC1 guidance of $820 to $890 per oz largely
due to higher sustaining capital. Lastly, the Process Plant Expansion remains on track, and we are looking forward
to bringing the major components online by year end to increase throughput to 5,000 tonnes per day and improve
recoveries.”
OPERATING AND FINANCIAL RESULTS SUMMARY
The following two tables provide an overview of key operating and financial results.
Three months ended
September 30,
Nine months ended
September 30,
2024 2023 2024 2023
Tonnes ore mined 427,389 397,702 1,266,320 1,229,845
Tonnes ore milled 425,340 416,072 1,263,835 1,226,777
Average mill throughput (tpd) 4,623 4,523 4,613 4,494
Average head grade (g/t) 10.3 9.7 10.3 10.9
Average recovery 86.8% 86.5% 88.0% 88.5%
Gold ounces produced 122,154 112,212 366,788 381,964
Gold ounces sold 125,887 112,711 364,199 376,360
1 Certain additional disclosures for these specified financial measures have been incorporated by reference and can be found on
pages 14 to 18 of the Company’s MD&A for the third quarter ended September 30, 2024 available on SEDAR+.
2
Three months ended
September 30,
Nine months ended
September 30,
2024 2023 2024 2023
Revenues ($’000) 323,087 211,172 851,259 711,830
Income from mining operations ($’000) 203,184 99,620 488,178 357,129
Earnings before interest, taxes, depreciation, and amortization ($’000)1
220,469
133,170
789,150
426,702
Adjusted earnings before interest, taxes, depreciation, and amortization ($’000)1
220,469
121,492
547,326
430,137
Net income ($’000) 135,715 53,782 296,903 168,395
Basic income per share ($) 0.57 0.23 1.24 0.71
Cash provided by operating activities ($’000) 218,286 120,030 470,369 426,821
Adjusted free cash flow ($’000)1 181,609 80,937 376,016 201,143
Adjusted free cash flow per share ($)1 0.76 0.34 1.57 0.85
Average realized gold price ($/oz sold)1 2,615 1,931 2,390 1,942
Cash operating cost ($/oz sold)1 681 704 713 662
All-in sustaining costs ($/oz sold)1 877 907 874 807
Adjusted earnings ($‘000)1 135,715 44,673 292,449 171,074
Adjusted earnings per share ($)1 0.57 0.19 1.22 0.72
Dividends paid per share ($) 0.20 0.10 0.40 0.30
THIRD QUARTER HIGHLIGHTS – STRONG FINANCIAL PERFORMANCE UNDERPINNED BY CONTINUED
OPERATIONAL EXCELLENCE
Financial Results
• Gold sales totalled 125,887 oz, consisting of 73,032 oz in concentrate and 52,855 oz as doré, resulting in
gross revenues of $329 million at an average realized gold price 1 of $2,615 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 June 30, 2024.
• Net of treatment and refining charges, revenues for the quarter were $323 million.
• Cash operating costs 1 and AISC1 were $681 and $877 per oz of gold sold, respectively . AISC has trended
toward the upper end of guidance due to higher sustaining capital expenditures . Operational excellence
initiatives continued to reduce operating costs offsetting the impact of 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.
• The Company generated cash from operating activities of $218 million and adjusted free cash flow1 of $182
million, or $0.76 per share, resulting in a cash balance of $226 million at September 30, 2024.
• EBITDA1 and adjusted EBITDA1 were both $220 million as no adjustments were required following the buy
out of the stream loan credit facility (the “Stream Facility”) and offtake agreement (“Offtake”) at the end of
the second quarter.
• Income from mining operations was $203 million which, after deducting corporate, exploration, and taxes,
resulted in net income of $136 million for the quarter or $0.57 per share.
1 Certain additional disclosures for these specified financial measures have been incorporated by reference and can be found on pages
14 to 18 of the Company’s MD&A for the third quarter ended September 30, 2024 available on SEDAR+.
3
Production Results
• Gold production was 122,154 oz which was comprised of 73,532 oz in concentrate and 48,622 oz as doré.
• Mine productivity was near record levels during the quarter with 427,389 tonnes mined at an average grade
of 9.9 g/t.
• The mill processed 425,340 tonnes at an average throughput rate of 4,623 tpd which was slightly less than
the previous quarter due to a planned shutdown to complete tie-ins relating to the process plant expansion
project and higher unscheduled mill downtime.
• The average grade of ore milled was 10.3 g/t with average recovery at 86.8%. Recoveries were affected by
finely disseminated sulphide minerals in the ore. The plant expansion’s addition of Jameson cells is
expected to improve recoveries for gold associated with these sulphides.
Outlook
• The Company expects to achieve the high end of its production guidance of 450,000 to 500,000 oz. In
addition, the Company expects to continue to generate significant cash flow at current gold prices
combined with its low cost of operations. Despite the Company’s effective cost saving measures, AISC 1
per oz sold is expected at the upper end of cost guidance due to increased sustaining capital.
• The process plant expansion project is still on track to increase throughput to 5,000 tonnes per day and
improve recoveries by year end. Production during the fourth quarter of 2024 is expected to be affected
by planned shutdowns for tie-ins to substantially complete the process plant expansion project.
• The near-mine drilling program will continue to explore Bonza Sur where the primary focus is to expand
the mineralized system and advance the initial geological model. Four rigs are currently turning along the
extensions of Bonza Sur. At FDNS, two underground rigs are expected to continue to delineate this high-
grade vein system. At FDN East, one rig will continue to focus on expanding the initial positive results
achieved to gain a better understanding of the mineralized zones and main geological contro ls. The
regional drilling program is expected to continue expanding the gold mineralization at the Robles target
and test new sectors in the Southern Basin.
• Eleven rigs are currently turning across the near -mine and regional programs. The 2024 conversion
program was completed in early Q4, and conversion drilling is expected to resume in 2025. The Company
is on track to achieve a minimum of 80,000 metres of drilling during the year across the conversion, near-
mine and regional drilling programs. The total cost is estimated to be $44.0 million on near -mine and
regional exploration which represents the largest drill program ever completed at the land package tha t
hosts the FDN deposit.
• The Company anticipates continuing to declare quarterly dividends of $0.20 per share, equivalent to
approximately $200 million annually, based on currently issued and outstanding shares.
1 Certain additional disclosures for these specified financial measures have been incorporated by reference and can be found on
pages 14 to 18 of the Company’s MD&A for the third quarter ended September 30, 2024 available on SEDAR+.
4
Liquidity and Capital Resources
At the end of the third quarter of 2024, the Company is in a strong financial position:
(in thousands of U.S. dollars) As at September 30,
2024
As at December 31,
2023
Financial Position:
Cash 225,728 268,025
Working capital 357,410 346,859
Total assets 1,364,106 1,468,209
Long-term debt - 305,647
The change in cash during the nine months ended September 30, 2024 was primarily due to cash generated from
operating activities of $470 million and proceeds from the exercise of stock options and anti -dilution rights
totalling $18.2 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
$95.8 million; cash outflows of $65.3 million relating to investing activities; and settlement of vested share units
with cash of $4.0 million.
Capital Expenditures
• Sustaining Capital:
o Highlights of sustaining capital activities were the significant progress made on the camp refurbishment
project, replacement of the concrete batch plant, as well as preliminary works for future TSF expansion.
o The mine dispatch system implementation was substantially completed by the end of the third quarter.
o Four additional diesel-powered generators were received during the third quarter and will be installed
in the fourth quarter. 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 run slightly below capacity. Currently, the Company’s existing generators
are being used to reduce FDN’s load on the national grid.
o In the third quarter, the conversion drilling program completed approximately 3,983 metres across 40
holes. Results continue to confirm mineralization at FDN with positive intercepts associated with
breccias and stockwork zones, like the mineralization found in the north sector of the current Mineral
Reserve envelope. The 2024 conversion drilling program is now complete and the work to update the
FDN Mineral Resource and Reserve statement is underway.
• Process Plant Expansion Project
o Detailed Engineering was completed early in the quarter, as well as procurement of all major items.
o Concrete work was completed during the quarter and structural steel erection is ongoing.
o Major pieces of equipment, such as the three Jameson cells and the concentrate filter have arrived at
FDN.
o The new tailings line was successfully commissioned with completion of the reclaim line expected by the
end of November.
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Health and Safety
During the third quarter there were no Lost Time Incidents and three Medical Aid Incidents. The Total
Recordable Incident Rate across the Company was 0.33 per 200,000 hours worked for the quarter and 0.67
for the first nine months of 2024. The operations team continue to focus on safety through improved
awareness of the workforce and contractors with more leadership presence in the field, as well as a review
of activities where the potential for hand injuries is high.
Community
Lundin Gold continued to support several community projects in the third quarter of 2024. 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. The program is now advancing into its
second year and continues to show increasing participation by local community members. From inception of
the program in July 2023 to the end of the third quarter of 2024, over 2,700 counselling sessio ns occurred,
and more than 400 youth 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 continues through support
agreements for rural road maintenance, basic service infrastructure, and local communities’ well -being
programs. During the quarter, the Company committed to thr ee significant projects including an
electrification and public lighting project in El Pangui, which is approximately 40 kilometres from Fruta del
Norte, a maintenance project for the Cultural Interpretation Centre of the Shuar Indigenous people, and an
improvement and maintenance project for the local park in Los Encuentros.
Two community dialogue roundtable sessions were held in the third quarter which focused on six topics with
416 participants. Senior members of the Company’s sustainability, community, environment, supply chain,
IT, and human resources departments, along with representatives of the Lundin Foundation, participated in
the sessions.
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 are
continuing to provide products and services to FDN, while also advancing growth strategies. The Lundin
Foundation’s Soy Emprendadora program which supports women led businesses in the Province of Zamora
Chinchipe continues to show positive impacts and results. Three businesses selected through the third cohort
of the program received seed capital and technical assistance during the third quarter.
EXPLORATION
Near-Mine Exploration Program
During the third quarter of 2024, the Company completed a total of 19,268 metres across 56 holes from
surface and underground. Drilling from underground mainly explored the FDNS target located in the
southern part of the FDN deposit, while drilling from s urface continued to test sectors located along the
extensions of the controlling structures of FDN, such as Bonza Sur and FDN East.
• During the quarter, the surface drilling program continued along the extension of the East Fault,
where the Bonza Sur discovery and other prospective sectors like FDN East are located.
6
o At Bonza Sur, located one kilometre from FDN, 28 surface drill holes were completed. In the
central part of the deposit, drill holes intercepted wide mineralized zones at shallower depths
associated mainly to vein/veinlet zones of quartz and minor chalcedony and manganoan-
carbonate with occurrences of disseminated levels of sulphides. At depth, the drilling
program showed the transition of the wider mineralized zone into a narrower veins/veinlets
system. Furthermore, along the south and east extension of the deposit, the drilling program
intercepted the same hydrothermal alteration as those found at Bonza Sur which indicate a
potential for expansion along these directions. Gold mineralization has already been
discovered for more than 1.8 kilometres along the north-south strike and for 500 metres
along the downdip and remains open mainly to the south and to the east.
o At FDN East, drilling continues to explore around the recently discovered buried epithermal
mineralized system. Five drill holes were completed during the third quarter and zones of
hydrothermal alteration with breccias and disseminated sulfides were intercepted in the
south portion of the target. Results are pending.
• The underground exploration drilling program focused on FDNS targeting the delineation of a new
high grade vein system. A total of 22 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.
A complete table of FDNS results received to date can be found in Lundin Gold’s press release dated
November 4, 2024. At Bonza Sur, several results remain pending which are expected later in the year.
Regional Exploration Program
The 2024 regional program continues to advance the identification of important indicators that point toward
the presence of buried epithermal deposits in the southern basin. During the quarter, regional drilling
focused on the Robles and Crisbel targets, both located in the southern border of the Suarez Basin, where
detailed geological interpretation of exploration data and additional surface works identified major structures
and zones of hydrothermal alteration. A total of 2,323 metres across four holes were completed. At Robles,
the drilling program aimed to step out the wide disseminated gold mineralization zone intercepted in prior
drilling. Results are pending. At Crisbel, one drill hole tested the presence of the Suarez Basin west fault in
this sector and showed limited hydrothermal alteration with no significant results.
Geophysical Program
During the quarter, the geophysical survey designed to provide high resolution resistivity and chargeability
imaging of exploration targets significantly advanced in the entire near -mine area and parts of the regional
district.
CORPORATE
A payment of $150 million, representing the second and final tranche of the buy out of the Stream Facility and
Offtake, was made at the end of the third quarter.
The Company doubled its quarterly dividend and subsequently paid a quarterly dividend of $0.20 per share on
September 25, 2024 (September 30, 2024 for shares trading on Nasdaq Stockholm) based on a record date of
September 10, 2024, for a total of $48.0 million.
7
With the release of its third quarter 2024 results, the Company declared a cash dividend of $0.20 per share,
which is payable on December 20, 2024 (December 30, 2024 for shares trading on Nasdaq Stockholm) to
shareholders of record on December 5, 2024.
Mr. Chester See assumed the role of Chief Financial Officer at the start of the quarter following Mr. Christopher
Kololian’s departure. Subsequent to quarter end, the Company announced the appointment of Mr. Brendan
Creaney as Vice President, Corporate Development and Investor Relations.
Qualified Persons
The technical information relating to FDN contained in this News 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 NI 43-
101. The disclosure of exploration information contained in this press release was prepared by Andre Oliveira,
P.Geo, Lundin Gold’s V.P. Exploration, 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, November 8 at 7:00 a.m.
PT, 10:00 a.m. ET, 4:00 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: 46850524649
Conference ID: Lundin Gold / 10863
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 the completion of the call until Friday, November
15, 2024.
Toll Free North America Replay Number: +1 888-660-6345
International Replay Number: +1 289-819-1450
Replay passcode: 10863 #
About Lundin Gold
Lundin Gold, headquartered in Vancouver, Canada, is committed to positive and long-lasting impact on our host
communities, while delivering significant value to stakeholders through operational excellence, cash flow
generation and focused growth. Lundin Gold currently operates its 100% owned Fruta del Norte gold mine in
southeast Ecuador, which is one of the highest-grade gold mines in production in the world today. The Company
also owns a portfolio of prospective exploration properties close to FDN.
8
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, adjusted free cash flow, adjusted 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 s uch measures as reported by other c ompanies. These measures have
been derived from the Company's financial statements because the Company believes that, with the
achievement of commercial production, they are of assistance in the understanding of the results of operations
and its financial position. Certain additional disclosures for t hese specified financial measures have been
incorporated by reference and can be found on page 14 of the Company's MD&A for the three and nine months
ended September 30, 2024 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 November 7, 2024 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 and Investor Relations
Tel: +1-604-806-3589 Tel: +1 604 376 4595
[email protected] [email protected]
Caution Regarding Forward-Looking Information and Statements
Certain of the information and statements in this press release are considered "forward -looking information" or "forward -
looking statements" as those terms are defined under Canadian securities laws (collectively referred to as "forward -looking
statements"). Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans,
projections, objectives, assumptions or future events or performance (often, but not always, identified by words or phrases
such as "believes", "anticipates", "expects", "is expected", "scheduled", "estimates", "pending", "intends", "plans",
"forecasts", "targets", or "hopes", or variations of such words and phrases or statements that certain actions, events or
results "may", "could", "would", "w ill", "should" "might", "will be taken", or "occur" and similar expressions) are not
statements of historical fact and may be forward -looking statements. By their nature, forward -looking statements and
information involve assumptions, inherent risks and un certainties, many of which are difficult to predict, and are usually
beyond the control of management, that could cause actual results to be materially different from those expressed by these
forward-looking statements and information. Lundin Gold believes that the expectations reflected in this forward -looking
information are reasonable, but no assurance can be given that these expectations will prove to be correct. Forward-looking
information should not be unduly relied upon. This information speaks only as of the date of this press release, and the
Company will not necessarily update this information, unless required to do so by securities laws.
This press release contains forward -looking information in several places, such as in statements relating to the Company’s
2024 production outlook, including estimates of gold production, grades recoveries and AISC; operating plans; expected sales
receipts, and cash flow forecasts , its estimated capital costs and sustaining capital; the Company’s efforts to mitigate the
impacts of the energy crisis in Ecuador on its operations; the recovery of VAT; timing of completion of the process plant
expansion project and the anticipated benefits; benefits of the Company’s community programs; the Company’s declaration
and payment of dividends pursuant to its dividend policy; the timing and the success of its drill program at Fruta del Norte
and its other exploration activities; and estimates of Mineral Resources and Reserves at Fruta del Norte . There can be no
assurance that such statements will prove to be accurate, as Lundin Gold's actual results and future events could differ
materially from those anticipated in this forward-looking information as a result of the factors discussed in the "Risk Factors"