Business
Lundin Gold Three Year Outlook Anticipates Sustained Strong Free Cash Flow Generation From Fruta Del Norte
2024 highlights include expansion to 5,000 tpd by year end and the largest exploration program ever conducted at Fruta del Norte VANCOUVER, BC, Dec. 4, 2023
About this update from Lundin Gold Inc.
[{"type":"text","content":" 2024 highlights include expansion to 5,000 tpd by year end and the largest exploration program ever conducted at Fruta del Norte VANCOUVER, BC, Dec. 4, 2023 /CNW/ - Lundin Gold Inc. (TSX: LUG) (Nasdaq Stockholm: LUG) (OTCQX: LUGDF) (\"Lundin Gold\" or the \"Company\") is pleased to announce its 2024 guidance and three-year outlook for its 100% owned Fruta del Norte (\"FDN\") gold mine in southeast Ecuador. All amounts are in U.S. dollars unless otherwise indicated. Highlights: 2024 production is estimated between 450,000 to 500,000 ounces (\"oz\"). Cash operating costs1 and all-in sustaining costs1 (\"AISC\") for 2024 are expected to range between $680 to $740 and $820 to $890 per oz of gold sold, respectively. Total sustaining capital in 2024 is estimated at $35 to $45 million. 56,000 metres is planned to be drilled under the 2024 near-mine and regional exploration programs. The Company's outlook for production, sustaining capital and AISC for the next three years is provided in the table below. 2024 2025 2026 Gold Production (oz) 450,000 – 500,000 475,000 – 525,000 475,000 – 525,000 Sustaining Capital ($ million) 35 – 45 65 – 80 40 – 55 Cash operating cost ($/oz)2 680 – 740 650 – 710 650 – 710 AISC ($/oz)2 820 – 890 840 – 910 780 – 850 Ron Hochstein, President and CEO commented, \"2024 marks Lundin Gold's next step in our FDN expansion story by increasing plant throughput to 5,000 tonnes per day and installing new flotation technology to improve recoveries, which will be operational by Q4 next year. In parallel, the Company will carry out the largest exploration program ever conducted on the extensive and highly prospective land package that hosts Fruta del Norte. Based on forecasted performance, we look forward to continued generation of strong free cash flow for years to come.\" 1 See Non-GAAP Financial Measures below2 Gold/silver price per oz assumptions for the three years are $1,900/$22.50, respectively 2024 Guidance and 2024-2026 Outlook Gold production at FDN for 2024 is estimated to be between 450,000 to 500,000 oz based on an average throughput rate of 4,500 tonnes per day (\"tpd\"), with an increase to 5,000 tpd from the end of 2024 onwards. Head grade is estimated to average 9.9 g/t, with fluctuations expected during the year as different sections of the ore body are mined. Average mill rec...