Lundin Gold (LUG) Investor Day 2024 summary

Strategic direction and financial outlook

• Focus on operational excellence, cost reduction, and productivity improvements to maximize cash flow and shareholder value.

• Balance sheet fully cleaned up, with $750 million in debt repaid over four years and a recent stream buyback for $330 million; debt fully repaid, freeing cash flow for dividends, exploration, and growth projects.

• Dividend doubled to $0.20 per share quarterly ($0.80/share annually), with $200M/year targeted and policy to be revisited, reflecting strong cash generation and commitment to shareholder returns.

• 2024 production guidance set at 450,000–500,000 oz, increasing to 475,000–525,000 oz in 2025 and 2026; all-in sustaining cost (AISC) guidance for 2024 is $820–$890/oz, with a target to reduce to $780–$850/oz by 2026.

• 2025–2026 guidance expected to remain stable, with no significant changes anticipated.

Expansion and operational initiatives

• Mill expansion underway to increase throughput from 4,500 to 5,000 tpd, with debottlenecking expected to reach 5,500 tpd; process plant expansion and 3% recovery improvement on track for completion by year-end 2024.

• Plant upgrades include installation of Jameson Cells, advanced process control, and automation to improve gold recoveries and operational stability.

• Tailings facility expansion to provide capacity through the 2040s, supporting long mine life and future exploration success.

• Ongoing cost-saving projects include cement supplier changes, tire management, improved ventilation, and other measures saving millions annually.

• Technology adoption in mining and processing aims to boost efficiency and reduce environmental impact, including evaluation of battery electric equipment and sustainability initiatives.

Exploration and resource growth

• Largest-ever exploration program underway in 2024, with $43.5 million budgeted and over 80,000m of drilling planned, focused on near-mine and regional targets.

• Over 2.59 Moz added to reserves since 2019, more than replacing all mined ounces; conversion drilling has replaced all mined ounces and grown reserves, with over 1 million ounces added in 2023.

• Bonanza Sur, a new near-surface epithermal discovery, is being fast-tracked for a maiden resource estimate in H1 2025, with drilling nearly complete on 1,800m strike.

• Fruta del Norte East and other targets show high-grade potential, with ongoing drilling and geophysical surveys expanding the resource base.

• Regional concessions cover highly prospective ground for both gold and copper, with systematic exploration ramping up.