Record annual production, cash generation and increased dividend
VANCOUVER, BC, Feb. 20, 2025 /CNW/ – Lundin Gold Inc. (TSX:LUG) (Nasdaq Stockholm: LUG) (OTCQX:LUGDF) (“Lundin Gold” or the “Company”) is pleased to report results for the fourth quarter and year ended December 31, 2024. Lundin Gold’s year is highlighted by record annual production of 502,029 ounces (“oz”) of gold at an all-in sustaining cost (“AISC”)1 of $875 per oz sold, exceeding production guidance of 450,000 to 500,000 oz and achieving AISC1 guidance of $820 to $890 per oz sold. This led to record high cash flow with cash from operating activities of $662 million and adjusted free cash flow1 of $540 million or $2.26 per share. This was achieved through record revenues of $1,193 million realized from the sale of 495,374 oz at an average realized gold price1 of $2,462 per oz. Record adjusted earnings before interest, taxes, depreciation, and amortization (“EBITDA”)1 of $780 million were also achieved during the year. All amounts are in U.S. dollars unless otherwise indicated. View PDF
Ron Hochstein, President and CEO commented, “Lundin Gold delivered a record-breaking 2024, exceeding production guidance with 502,029 ounces of gold at an AISC1 of $875 per ounce. This achievement reflects our team’s dedication to operational excellence, and with the Process Plant Expansion Project substantially complete, we anticipate increased throughput and recovery in 2025. Becoming debt-free in 2024 was another major milestone and, building on this strong foundation, we’ve increased our quarterly dividend to $0.30 per share. In addition, our ongoing exploration program continues to find new ounces which resulted in the highest published Mineral Reserves and Resources at FDN highlighting the exceptional potential of FDN and the district. As a low-cost producer, we anticipate continuing to generate significant free cash flow1 in excess of $500 million based on a gold price of $2,500 per oz, providing flexibility for capital allocation and increased shareholder returns.”
OPERATING AND FINANCIAL RESULTS SUMMARY
The following two tables provide an overview of key operating and financial results achieved during 2024 compared to the same periods in 2023.
|
Three months ended December 31, |
Year ended December 31, |
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|
2024 |
2023 |
2024 |
2023 |
|
|
Tonnes ore mined |
405,529 |
405,705 |
1,671,849 |
1,635,550 |
|
Tonnes ore milled |
427,030 |
427,743 |
1,690,865 |
1,654,520 |
|
Average mill throughput (tpd) |
4,642 |
4,649 |
4,620 |
4,533 |
|
Average head grade (g/t) |
11.3 |
8.2 |
10.5 |
10.2 |
|
Average recovery |
87.1 % |
88.1 % |
87.8 % |
88.4 % |
|
Gold ounces produced |
135,241 |
99,310 |
502,029 |
481,274 |
|
Gold ounces sold |
131,175 |
98,005 |
495,374 |
474,365 |
|
___________________________ |
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1 Certain additional disclosures for these specified financial measures have been incorporated by reference and can be found on pages 15 to 17 of the Company’s MD&A for the year ended December 31, 2024 available on SEDAR+. |
|
Three months ended December 31, |
Year ended December 31, |
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|
2024 |
2023 |
2024 |
2023 |
|
|
Net revenues ($’000) |
341,791 |
190,688 |
1,193,050 |
902,518 |
|
Income from mining operations ($’000) |
215,208 |
78,051 |
703,386 |
435,180 |
|
Earnings before interest, taxes, depreciation, and amortization ($’000)[2] |
232,223 |
67,274 |
1,021,373 |
493,976 |
|
Adjusted earnings before interest, taxes, depreciation, and amortization ($’000)1 |
232,223 |
95,908 |
779,549 |
526,045 |
|
Net income (loss) ($’000) |
129,147 |
11,062 |
426,050 |
179,457 |
|
Basic income (loss) per share ($) |
0.54 |
0.05 |
1.78 |
0.76 |
|
Cash provided by operating activities ($’000) |
192,021 |
92,574 |
662,390 |
519,395 |
|
Adjusted free cash flow ($’000)1 |
163,767 |
62,330 |
539,783 |
263,473 |
|
Adjusted free cash flow per share ($)1 |
0.68 |
0.26 |
2.26 |
1.11 |
|
Average realized gold price ($/oz sold)1 |
2,664 |
2,021 |
2,462 |
1,958 |
|
Cash operating cost ($/oz sold)1 |
709 |
832 |
712 |
697 |
|
All-in sustaining costs ($/oz sold)1 |
879 |
1,062 |
875 |
860 |
|
Adjusted net earnings ($’000)1 |
129,147 |
33,236 |
421,596 |
204,310 |
|
Adjusted net earnings per share ($)1 |
0.54 |
0.14 |
1.76 |
0.86 |
|
Dividends paid per share ($) |
0.20 |
0.10 |
0.60 |
0.40 |
FOURTH QUARTER AND FULL YEAR HIGHLIGHTS
Year ended December 31, 2024
- FDN achieved record annual gold production of 502,029 oz, comprised of 320,240 oz in concentrate and 181,789 oz as doré, which exceeds the Company’s 2024 guidance.
- A total of 1,671,849 and 1,690,865 tonnes of ore was mined and processed, respectively, which is higher than the previous year due to an increase in mill throughput.
- The average grade of ore milled was 10.5 grams per tonne (g/t) with average recovery at 87.8%. Recoveries were affected by finely disseminated sulphide minerals in the ore and improvements have been realized following commissioning of one of the three Jameson cells in late November.
- The Company sold a total of 495,374 oz of gold, consisting of 319,040 oz in concentrate and 176,334 oz as doré at an average realized gold price1 of $2,462 per oz sold for total revenues from gold sales of $1.22 billion. Net of treatment and refining charges, revenues for 2024 were $1.19 billion.
- Cash operating costs1 and AISC1 for 2024 were $712 …
