Lundin Gold (LUG) Q2 2025 earnings summary

Executive summary

• Achieved record gold production of 139,433 oz and sales of 136,737 oz in Q2 2025, with average recovery of 90.9% and mill throughput exceeding 5,000 tpd.

• Record quarterly revenues of $453 million and net income of $197 million ($0.82 per share), driven by high realized gold prices and strong operational performance.

• Free cash flow reached $236 million ($0.98 per share), supporting sector-leading dividends totaling $0.79 per share for the quarter.

• Exploration success included new copper-gold porphyry discoveries at Sandia and Trancaloma, and expanded drilling at FDNS and FDN East.

• Largest-ever exploration program underway, with 48,000 meters drilled out of a planned 108,000 meters in 2025.

Financial highlights

• Q2 2025 revenue surged 50% year-over-year to $453 million; net income was $196.7 million, up 65% year-over-year; EBITDA was $319 million.

• Free cash flow for Q2 was $235.7 million, with cash flow from operations at $255 million and a cash balance of $493 million at quarter-end.

• Cash operating cost per ounce was $756, and all-in sustaining cost (AISC) was $927 per ounce sold.

• Working capital at June 30, 2025 was $562 million, up from $459 million at year-end 2024.

• Dividend declared at $0.79 per share (fixed $0.30, variable $0.49), totaling $190 million for the quarter.

Outlook and guidance

• 2025 production guidance raised to 490,000–525,000 oz, with throughput expected to reach 5,500 tpd in 2026.

• Cash operating cost and AISC expected near the upper end of guidance ($730–$790/oz and $935–$995/oz) due to higher gold prices and related cost pressures.

• Sustaining capital expenditures for 2025 expected at $75–$85 million, with increases for tailings dam and plant improvements.

• Near-mine and regional exploration drilling programs expanded, with a record 108,000 metres planned for 2025.