Business
Lundin Gold Announces Strong Third Quarter Results and Firmly on Track to Achieve High End of Gold Production Guidance for 2022
Fruta del Norte achieves gold production of 355,190 oz and an AISC¹ of $785/oz sold in the first nine months of 2022 VANCOUVER, BC, Nov. 8, 2022 /CNW/ -
About this update from Lundin Gold Inc.
[{"type":"text","content":" Fruta del Norte achieves gold production of 355,190 oz and an AISC¹ of $785/oz sold in the first nine months of 2022 VANCOUVER, BC, Nov. 8, 2022 /CNW/ - Lundin Gold Inc. (TSX: LUG) (Nasdaq Stockholm: LUG) (OTCQX: LUGDF) (\"Lundin Gold\" or the \"Company\") today reports results for the third quarter of 2022, highlighted by Q3 production of 121,635 ounces (\"oz\") of gold and sales of 134,640 oz at a cash operating cost1 of $656 per oz sold and all-in sustaining cost (\"AISC\")1 of $807 per oz sold. For the first nine months of 2022, Lundin Gold produced 355,190 oz and sold 350,213 oz of gold at an AISC1 of $785 per oz sold, putting the Company firmly on track to meet the upper end of its production guidance of 430,000 to 460,000 oz and lower end of or slightly below its AISC1 guidance of $820 to $870 per oz sold. All amounts are in U.S. dollars unless otherwise indicated. In the third quarter, Lundin Gold generated net revenues of $210 million, adjusted earnings1 of $20.4 million and free cash flow1 of $65.2 million, resulting in a cash balance of $304 million at quarter end. With operations at Fruta del Norte (\"FDN\") generating sizeable free cash flow and considering the Company's existing cash balance, Lundin Gold paid an inaugural semi-annual dividend of $0.20 per share on September 13, 2022 (September 15 for shares trading on Nasdaq Stockholm) based on a record date of August 24, 2022. Under its recently established dividend policy, Lundin Gold anticipates continuing to pay dividends of at least $0.40 per share annually, equivalent to approximately $100 million, based on current gold prices, expected production levels, and current issued and outstanding shares. Ron Hochstein, President and CEO of Lundin Gold commented, \"Once again, I am pleased to report another fantastic quarter for Lundin Gold. We continue to strive for operational excellence at Fruta del Norte, and remain focused on further optimization, improved efficiencies and lowering costs. Now that the South Ventilation Raise is complete, we will have more flexibility to mine on all levels, allowing us to continue generating strong results. Payment of our first dividend was a great milestone, and we see potential to create further shareholder value through the significant free cash flow we are generating from this tier one asset. With this cash flow we will...