Lundin Gold (LUG) Q1 2025 earnings summary

Executive summary

• Achieved gold production of 117,313 oz and sales of 117,641 oz in Q1 2025, with plant expansion completed, throughput averaging 5,076 tpd in March, and recovery rates up to 90.0%, supporting strong operational and financial results.

• Record revenues of $356 million and net income of $154 million ($0.64 per share), driven by high gold prices and cost optimization.

• Confirmed 2025 production guidance of 475,000–525,000 oz and AISC of $935–$995/oz, with strong operational momentum and cost control.

• Introduced a new variable quarterly dividend, declared a special $100 million ($0.41/share) dividend, and paid a quarterly dividend of $0.30/share, enhancing shareholder returns.

• Expanded exploration program to a record 108,000 metres with a $47 million budget, focusing on resource growth at FDNS, FDN East, Bonza Sur, and Trancaloma.

Financial highlights

• Q1 2025 revenue reached $356 million, up 57% year-over-year; net income was $154 million, up 266%; EPS at $0.64, up 256%.

• EBITDA increased 116% to $242 million; free cash flow more than doubled to $171 million ($0.71/share).

• Cash operating cost per ounce sold was $792; AISC was $909/oz, with an AISC margin of $2,172/oz, up 71%.

• Ended Q1 with $452 million in cash and working capital of $551 million.

• Dividends paid totaled $72.7 million for the quarter.

Outlook and guidance

• 2025 production and cost guidance reaffirmed; higher gold prices could increase costs by $10/oz for every $100/oz price rise.

• Sustaining capital expenditures expected to rise with major projects including the fifth tailings dam raise and infrastructure upgrades.

• Exploration drilling program expanded to a minimum of 108,000 metres for 2025, with a total estimated cost of $47 million.

• Plant throughput guidance for 2026 increased to 5,500 tpd.

• Regional exploration program initiated, covering 54,000 hectares over 23 concessions.