Lundin Gold (LUG) Q4 2024 earnings summary

Executive summary

• Achieved record annual gold production of 502,029 ounces in 2024, surpassing guidance and setting new operational and financial records.

• Ended 2024 debt-free after repurchasing stream loan and offtake commitments for $330 million, with a year-end cash balance of $349 million.

• Increased quarterly dividend to $0.30/share, tripling the rate from the start of 2024, with $144 million paid and an annualized payout of $300 million.

• Plant expansion project substantially complete, targeting 5,000 tpd throughput and improved recoveries in 2025.

• Mineral reserves and resources reached record levels, more than replacing mining depletion.

Financial highlights

• Record revenues of $1.2 billion from the sale of 495,000 ounces at an average realized price of $2,462/oz.

• Net income for 2024 was $426 million, up from $179 million in 2023, including a $244 million derivative gain.

• Adjusted earnings reached $422 million ($1.76/share), up from $204 million ($0.86/share) in 2023.

• Adjusted EBITDA was $780 million; adjusted free cash flow hit $540 million ($2.26/share).

• Cash balance increased to $349 million at year-end; working capital stood at $459 million.

Outlook and guidance

• 2025 gold production guidance: 475,000–525,000 oz at 5,000 tpd throughput, 9.2 g/t head grade, and 90% recovery.

• 2025 AISC expected at $935–$995/oz, higher due to increased royalties, profit sharing, power tariffs, and sustaining capital.

• Exploration drilling in 2025 to exceed 80,000 meters, with initial Bonza Sur resource estimate due mid-year.

• Process plant expansion to be fully completed in Q1 2025; throughput and recoveries expected to improve.

• New five-year sustainability strategy to be established in 2025.