Record mill throughput alongside record net income and earnings per share
VANCOUVER, BC, Nov. 6, 2025 /CNW/ - Lundin Gold Inc. (TSX: LUG) (Nasdaq Stockholm: LUG) (OTCQX: LUGDF) ("Lundin Gold" or the "Company") today announced its financial results for the third quarter of 2025, featuring revenues of $447 million and record net income of $208 million ($0.86 per share). Free cash flow(1) of $191 million ($0.79 per share) was driven by gold sales of 124,911 ounces ("oz") at an average realized gold price(1) of $3,634 per oz, at cash operating costs(1) of $861 and all-in sustaining costs(1) ("AISC") of $1,036 per oz sold. While record-high gold prices have strengthened financial performance, they have also increased royalties and statutory profit sharing payable to employees, which impact both cash operating costs(1) and AISC(1) . The Company also announced cash dividends of $0.80 per share (approximately $193 million) comprised of the fixed quarterly dividend of $0.30 per share and the variable quarterly dividend of $0.50 per share, to be paid at the end of the fourth quarter. All dollar amounts are stated in US dollars unless otherwise indicated. PDF Version
Ron Hochstein, President and CEO commented, "I'm extremely pleased to announce that Lundin Gold has delivered an exceptional third quarter highlighted by record net income of $208 million and robust free cash flow of $191 million. This high-margin performance, with an AISC of $1,036 against an average realized gold price(1) of $3,634 per oz sold, demonstrates the world-class quality of Fruta del Norte. Our financial strength enabled our Board to declare a substantial dividend of $0.80 per share increasing the variable component this quarter to reflect 100% of normalized free cash flow from the policy's minimum of 50%.
With three quarters of strong results, we remain firmly on track to achieve our full-year production guidance while expecting to finish at the upper end of our cash operating cost(1) and AISC(1) guidance range due to the significant increase in the gold price.
As I transition to a new role in the Lundin Group, I am confident that Lundin Gold is well positioned to continue delivering strong performance under Jamie Beck's leadership, as he joins in the role of President and Chief Executive Officer on November 7(th) ...The best is yet to come!"
_____________ (1) Refer to "Non-IFRS Measures" section.
OPERATING AND FINANCIAL RESULTS SUMMARY
The following two tables provide an overview of key operating and financial results.
Three months ended September Nine months ended September
30, 30,
2025 2024 2025 2024
Tonnes ore
mined 480,519 427,389 1,332,367 1,266,320
Tonnes ore
milled 484,296 425,340 1,343,275 1,263,835
Average mill
throughput
(tpd) 5,264 4,623 4,920 4,613
Average head
grade (g/t) 8.9 10.3 9.8 10.3
Average
recovery 88.2 % 86.8 % 89.3 % 88.0 %
Gold ounces
produced 122,086 122,154 378,832 366,788
Gold ounces
sold 124,911 125,887 379,289 364,199
Three months ended September Nine months ended September
30, 30,
2025 2024 2025 2024
Revenues
($'000) 447,119 323,087 1,256,344 851,259
Income from
mining
operations
($'000) 305,228 203,184 852,935 488,178
Earnings before
interest,
taxes,
depreciation,
and
amortization
($'000)(1) 311,680 220,469 872,022 789,150
Adjusted
earnings
before
interest,
taxes,
depreciation,
and
amortization
($'000)(1) 311,680 220,469 872,022 547,326
Net income
($'000) 207,715 135,715 557,946 296,903
Basic income
per share ($) 0.86 0.57 2.32 1.24
Cash provided
by operating
activities
($'000) 215,533 217,873 664,623 466,406
Free cash flow
($'000)(1) 191,148 181,196 597,601 136,478
Free cash flow
per share
($)(1) 0.79 0.76 2.48 0.57
Average
realized gold
price ($/oz
sold)(1) 3,634 2,616 3,364 2,389
Cash operating
cost ($/oz
sold)(1) 861 681 802 713
All-in
sustaining
costs ($/oz
sold)(1) 1,036 877 957 874
Adjusted
earnings
($'000)(1) 207,715 135,715 557,946 292,449
Adjusted
earnings per
share ($)(1) 0.86 0.57 2.32 1.22
Dividends paid
per share ($) 0.79 0.20 1.95 0.40
THIRD QUARTER HIGHLIGHTS
Financial Results
-- Gold sales totaled 124,911 oz, consisting of 81,790 oz in concentrate and
43,121 oz as doré, resulting in gross revenues of $454 million at an
average realized gold price1 of $3,634 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,
2025. Net of treatment and refining charges, revenues for the quarter
were $447 million.
-- Average realized gold price1 includes $3,446 per oz of gross price
received and a favourable impact of $188 per ounce from adjustments to
provisionally priced sales.
-- Cash operating costs1 and AISC1 were $861 and $1,036 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 prices1.
-- The Company generated cash from operating activities of $216 million and
free cash flow1 of $191 million, or $0.79 per share, resulting in a cash
balance of $494 million at September 30, 2025.
-- The cash balance remained consistent with June 30, 2025, as the dividend
payment of $191 million, determined based on second quarter results,
offset free cash flow1 generated during the third quarter.
-- In addition to monthly corporate income tax instalment payments, the
Company paid in advance corporate income tax of $50.6 million. This
amount, along with monthly corporate income tax instalment payments, will
be deductible from annual corporate income taxes due in April 2026.
___________________
(1) Refer to "Non-IFRS Measures" section.
Production Results
-- The mine ramped up during the third quarter to keep pace with the mill
resulting in a record 480,519 tonnes mined at an average grade of 7.9
g/t.
-- The mill processed 484,296 tonnes at an average throughput rate of 5,264
tpd, with average recoveries of 88.2%. Recoveries were affected by ore
variability which impacted performance of the floatation circuit. The
average grade of ore milled was 8.9 g/t.
-- Gold production was 122,086 oz which was comprised of 78,172 oz in
concentrate and 43,914 oz as doré.
Outlook
-- The Company remains on track to meet its revised annual production
guidance of 490,000 to 525,000 oz. Cash operating cost1 and AISC1 are
expected to be at the upper end of guidance of $730 to $790 per oz sold
and $935 to $995 per oz sold, respectively.
-- While record-high gold prices have significantly strengthened the
Company's financial performance, they have also resulted in higher
royalties and statutory profit sharing payable to employees, which in
turn impact both cash operating costs1 and AISC1. For every $100 per oz
increase in gold price, these metrics are estimated to increase by
approximately $10 per oz. The Company's guidance was based on a gold
price assumption of $2,500 per oz while average realized gold prices1
during the 2025 Period was $3,364 per oz -- an increase of $864 per oz.
This variance in costs exceeds the $60 per oz span of the Company's cash
operating cost1 and AISC1 guidance ranges.
-- The near-mine underground drilling program is expected to continue to
advance at FDNS where the primary focus is the conversion and expansion
of the resources while concurrently exploring the FDN East target. The
surface drilling program is expected to continue to explore the recently
discovered copper-gold porphyry corridor which hosts Trancaloma and
Sandia, advance at Castillo, and explore new sectors around FDN and along
the south extension of the Suarez Basin.
-- Seventeen rigs are currently turning across the conversion and near-mine
exploration programs. The Company continues to allocate capital to
organic growth and based on recent drilling results on the porphyry
district, has further expanded its 2025 exploration program from an
original 80,000 to a minimum of 120,000 metres. This represents the
largest drill program ever completed on the land package that hosts the
FDN deposit. In addition, 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 to be updated in Q1 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. 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.
-- 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.
________________
(1) Refer to "Non-IFRS Measures" section.
Liquidity and Capital Resources
At the end of September 30, 2025, the Company is in a strong financial position.
(in thousands of U.S. As at September 30, 2025 As at December 31, 2024 dollars) Financial Position: Cash 494,369 349,200 Working capital 576,799 458,944 Total assets 1,638,974 1,527,481 Long-term debt - -
As at September 30, 2025, the Company had cash of $494 million and a working capital balance of $577 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 $665 million and proceeds from the exercise of stock options and anti-dilution rights totaling $18.2 million. This is offset by dividends paid of $471 million and capital expenditures of $67.0 million.
Capital Expenditures
Sustaining Capital Expenditures(1)
-- Sustaining capital expenditures1 during the second quarter were $14.3
million.
-- Construction of the fifth tailings dam raise is well underway and is on
track for completion during the first quarter of 2026.
-- Other projects that were completed or advanced during the quarter
included enhancements to camp facilities, construction of administration
building, as well as other operational infrastructure improvements.
______________
(1) Refer to "Non-IFRS Measures" section.
Non-Sustaining Capital Expenditures(1)
-- Non-sustaining capital expenditures1 of $7.7 million are comprised of
growth-oriented investments such as new projects, expansions, conversion
drilling, and associated permitting and study expenditures not related to
current operations.
-- The 2025 conversion drilling program is focused on FDNS, located in the
southern portion of the FDN deposit. During the third quarter, the
conversion drilling program completed approximately 8,976 metres across
64 holes with four rigs currently turning.
-- The completed holes confirmed continuity of the mineralization and
indicated higher grade zones within the vein system. Some
conversion drill holes also intercepted mineralized zones outside
of the existing geological model.
-- Several results for the FDNS conversion drilling program remain
pending and are expected to be reported during the fourth quarter
of 2025.
Health and Safety
During the third quarter there were no Lost Time Incidents and four Medical Aid Incidents. The Total Recordable Incident Rate across the Company was 0.37 per 200,000 hours worked for the quarter and 0.20 for the first nine months of 2025.
Community
Lundin Gold sponsored community projects continued to advance in the third quarter of 2025. The first phase of one of the Company's most impactful programs, which focused on mental health and well-being in local communities, successfully concluded during the quarter, surpassing several of the targets set for the program. Phase 2 of the program commenced during the quarter and is expected to run until December 2026. By the end of the third quarter, approximately 415 counselling sessions were provided to 76 local community residents. In addition, the sports academy component of the program had 484 youth registered in extra-curricular activities, including basketball, soccer, dance, music, and boxing.
Engagement with numerous local governments continues to support rural road maintenance, road emergencies caused by extreme weather events, community wellbeing, and the Company's regional exploration activities. In response to flooding in the province of Zamora Chinchipe during the quarter, Lundin Gold provided humanitarian aid to support affected families and road maintenance support in the affected zone in coordination with the Ministry of Transportation and Public Works. During the quarter, the Company committed to several significant projects focused on dairy productivity enhancement and the paving of the El Zarza -- Jardín del Cóndor Road which is a key part of the public road from Los Encuentros to FDN.
Lundin Gold continued to participate in the community dialogue roundtable process. Six separate roundtables were held in July and September. Approximately 380 individuals participated in these sessions including local vendors, local authorities, and Lundin Gold personnel.
Local businesses received ongoing support from the Company, in partnership with the Lundin Foundation. The local companies that participated in the Lundin Foundation's supplier development program continued to provide products and services to FDN, while also advancing growth strategies. In addition, strengthening the Company's long-standing relationship with the Shuar Indigenous Peoples, Lundin Gold, the Lundin Foundation, and the Shuar continued to collaborate to advance the implementation of a Shuar tire distribution business to supply FDN.
_____________________ (1) Refer to "Non-IFRS Measures" section.
EXPLORATION
Near-Mine Exploration Program
During the third quarter of 2025, the Company completed a total of 32,973 metres across 58 holes from surface and underground.
The underground near mine drilling program focused on the FDNS deposit, which remains open for expansion in the north and along the south extensions and where one underground rig is currently turning. The underground drilling program also continues to advance at FDN East ("FDNE") where one rig is exploring the mineralization continuity in the central portion of this target. As at the date of this MD&A, two underground rigs are active in the near mine drilling program.
The surface near mine drilling program advanced in the recently discovered copper-gold mineralization at Trancaloma and Sandia. Furthermore, the near mine drilling program continues to explore the FDN deposit at depth, the Castillo target, and in distinct sectors along the south extension of the Suarez Basin. As at the date of this MD&A, 11 surface rigs are drilling with three at Sandia, two at Trancaloma, one at Castillo, one at FDN at depth, and four at new sectors.
-- 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 eastern portion of the target, the
drilling program extended the mineralization along the northwestern
direction and indicated areas for further expansion.
-- At Sandia, located two kilometres from FDN, results of the drilling
program indicated the continuity of the copper-gold mineralization. All
completed drill holes in the period confirmed the occurrence of a shallow
wide copper-gold porphyry mineralization and extended the mineralized
zone along the northwestern direction and at depth.
-- At Castillo, an exploratory hole intercepted a higher-grade copper-gold
mineralized interval associated with significant sulfide levels and
indicated new areas for further drilling under the Suarez Basin cover.
-- At FDN, directional drilling technology continues to be 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
are testing the mineralization continuity at distinct depths of the FDN
deposit.
-- 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.
-- 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.
-- 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
this Mineral Resource into FDN's 2026 updated long-term mine plan.
A table of third quarter 2025 near mine results for the Trancaloma, Sandia, and Castillo targets received to date can be found in Lundin Gold's press release dated November 3, 2025. Several results for the FDNS and FDNE drilling programs remain pending and are expected to be announced during the fourth quarter.
Regional Exploration Program
The Company advanced its multi-year regional exploration program during the third 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 which resulted in the identification of additional potential targets for further evaluation. Furthermore, exploration activities advanced at the Soberano concession, located approximately 22 kilometres southwest of FDN, where geological mapping followed by soil and rock sampling were completed. An airborne geophysics survey (Radiometric and Magnetic) was concluded and covered most of the regional concessions.
CORPORATE
-- In September, the Company announced a planned leadership transition with
Mr. Ron Hochstein stepping down as President, CEO, and Director of the
Company. Mr. Jamie Beck will be appointed President, CEO, and Director
effective November 7, 2025.
-- During the quarter, Lundin Gold completed its new five-year
sustainability strategy (2026-2030) to coincide with the expiry of its
current five-year strategy. Anchored by the vision of "Transforming lives
through responsible mining", the strategy is built on five strategic
pillars: 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 paid a quarterly dividend of $0.79 per share, comprised of
the fixed dividend of $0.30 per share and variable dividend of $0.49 per
share, on September 25, 2025 (September 30, 2025 for shares trading on
Nasdaq Stockholm) for a total of $191 million.
-- With the release of its third quarter 2025 results, the Company has
declared cash dividends totaling $0.80 per share, comprised of the fixed
dividend of $0.30 per share and variable dividend of $0.50 per share,
payable on December 22, 2025 (December 30, 2025 for shares trading on
Nasdaq Stockholm) to shareholders of record at the close of business on
December 5, 2025. Pursuant to the Company's dividend policy, the variable
dividend was calculated based on 100% of the Company's normalized free
cash flow during the third quarter of 2025, after deducting the fixed
dividend paid, which exceeds the policy's minimum threshold of 50%.
Qualified Persons
The technical information relating to Fruta del Norte contained in this press release has been reviewed and approved by Terry Smith P. Eng, Lundin Gold's COO, who is a Qualified Person in accordance with the requirements of National Instrument 43-101 -- Standards of Disclosure for Mineral Projects ("NI 43-101"). The disclosure of exploration information contained in this press release was prepared by Andre Oliveira P.Geo, Vice President, Exploration of the Company, who is a Qualified Person in accordance with the requirements of NI 43-101.
Webcast and Conference Call
The Company will host a conference call and webcast to discuss its results on November 7 at 8:00 a.m. PT, 11:00 a.m. ET, 5:00 p.m. CET.
Conference Call Dial-In Numbers:
Participant Dial-In North America: +1 437-900-0527 Toll-Free Participant Dial-In North America: +1 888-510-2154 Participant Dial-In Sweden: +46 8 505 24649 Conference ID: Lundin Gold / 51479
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 November 15, 2025.
Toll Free North America Replay Number: +1 888-660-6345 International Replay Number: +1 416-764-8677 Replay passcode: 51479 #
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 13 of the Company's MD&A for the period ended September 30, 2025 available on SEDAR+.
Additional Information
The information in this release is subject to the disclosure requirements of Lundin Gold under the EU Market Abuse Regulation. This information was publicly communicated on November 6, 2025 at 4:30 p.m. Pacific Time through the contact persons set out below.
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", "will", "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 uncertainties, 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 2025 production outlook, including estimates of gold production, grades recoveries and AISC; operating plans; expected sales receipts and cash flow forecasts; gold price; estimated capital costs and sustaining capital; management changes; 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.
Lundin Gold's actual results could differ materially from those anticipated. Factors that could cause actual results to differ materially from any forward-looking statement or that could have a material impact on the Company or the trading price of its shares include risks relating to: instability in Ecuador; community relations; reliability of power supply; tax changes in Ecuador; security; availability of workforce and labour relations; mining operations; waste disposal and tailings; environmental compliance; illegal mining; Mineral Reserve and Mineral Resource estimates; infrastructure; regulatory risk; government or regulatory approvals; forecasts relating to production and costs; gold price; dependence on a single mine; shortages of critical resources; climate change; exploration and development; control of Lundin Gold; dividends; information systems and cyber security; title matters and surface rights and access; health and safety; human rights; employee misconduct; measures to protect biodiversity, endangered species and critical habitats; global economic conditions; competition for new projects; key talent recruitment and retention; market price of the Company's shares; social media and reputation; insurance and uninsured risks; pandemics, epidemics or infectious disease outbreak; conflicts of interest; violation of anti-bribery and corruption laws; internal controls; claims and legal proceedings; and reclamation obligations.
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 under the heading "Risk Factors" in the Company's Annual Information Form dated March 17, 2025 available at www.sedarplus.ca.
SOURCE Lundin Gold Inc.
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