Lundin Gold Inc. · TSX:LUG
Lundin Gold — Q4 2023 Earnings Presentation
22 slides from Lundin Gold's earnings presentation, Feb 23, 2024
Slide 1: Fourth Quarter 2023 Results Conference Call
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING February 23, 2024 FOURTH QUARTER 2023 RESULTS CONFERENCE CALL www.lundingold.com TSX, Nasdaq Stockholm: LUG OTCQX: LUGDF
Slide 2: Ron F. Hochstein, President and CEO
RON F. HOCHSTEIN PRESIDENT AND CEO Slide 2 Lundin Gold Q4 Conference Call | February 23, 2024 TSX: LUG / OMX: LUG / OTCQX: LUGDF
Slide 3: Caution Regarding Forward-Looking Information and Statements
CAUTION REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS All statements, other than statements of historical fact, made and completion of the process plant expansion project and benefits to advised that, while such terms are recognized and required by information contained in this presentation a
Slide 4: 2023 Another Strong Year for Lundin Gold
2023 ANOTHER STRONG YEAR FOR LUNDIN GOLD Set target to be carbon neutral by 2030 with Payment of $95M in respect to Scope 1 and 2 emissions based on dividends current LOM Free Cash Flow1 of $263 million Met upgraded 2023 gold generated production and AISC1 guidance 11,233m of conversion drilling, An
Slide 5: Terry Smith, COO
TERRY SMITH COO Slide 5 Lundin Gold Q4 Conference Call | February 23, 2024 TSX: LUG / OMX: LUG / OTCQX: LUGDF
Slide 6: Strong Operating Performance in 2023
STRONG OPERATING PERFORMANCE IN 2023 Q4 2023 FY 2023 99,310 oz 481,274 oz Gold produced Gold produced 65,298 oz 34,012 oz 310,831 oz 170,443 oz Gold as concentrate Gold as doré Gold as concentrate Gold as doré 427,743 8.2 g/t 1,654,520 10.2 g/t Tonnes milled Average Head Grade Tonnes milled Average
Slide 7: Phase 2 Expansion Project to Increase Throughput and Improve Recoveries
PHASE 2 EXPANSION PROJECT TO INCREASE THROUGHPUT AND IMPROVE RECOVERIES Average Annual Plant Throughput (tpd) and Recovery (%) 6,000 92% 91.0%1 91% 5,000 4,272 4,533 4,500 5,000 90% 3,878 89.5% 4,000 89.0% 89% 3,499 tpd 88.6% 88.4% 88% 3,000 87% 2,000 86% 85.9% 85% 1,000 84% 0 83% 2020 2021 2022 202
Slide 8: Significant Sustaining Capital Projects Successfully Completed in 2023
SIGNIFICANT SUSTAINING CAPITAL PROJECTS SUCCESSFULLY COMPLETED IN 2023 TAILINGS DAM RAISE › Fourth raise completed in mid Q4 RESOURCE CONVERSION DRILLING › 79 drill holes totaling 11,233 m were completed during 2023, focused on the north- central and southern extensions of FDN › The geological and m
Slide 9: FDN Is One of the Lowest Cost Gold Mines in the World
FDN IS ONE OF THE LOWEST COST GOLD MINES IN THE WORLD 2000 Gold Price ~$2,025/oz2 2023 AISC3 Q4 FY 1800 Cash operating costs $832 $697 1600 Corporate social 1400 $6 $5 All-In Sustaining Cost (US$/oz) responsibility 1200 Treatment and refining $103 $83 charges 1000 Accretion of restoration $2 $1 prev
Slide 10: Three-Year Outlook Underscores Free Cash Flow Potential
THREE-YEAR OUTLOOK UNDERSCORES FREE CASH FLOW POTENTIAL 2024 2025 2026 450,000 - 500,000 475,000 - 525,000 475,000 - 525,000 Gold Production (oz) Gold Production (oz) Gold Production (oz) 35 - 45 65 - 80 40 - 55 Sustaining Capital ($ million) Sustaining Capital ($ million) Sustaining Capital ($ mill
Slide 11: Ron F. Hochstein, President and CEO
RON F. HOCHSTEIN PRESIDENT AND CEO Slide 11 Lundin Gold Q4 Conference Call | February 23, 2024 TSX: LUG / OMX: LUG / OTCQX: LUGDF
Slide 12: 2023 Conversion Drilling to Enable Updated Mineral Resource and Reserve Estimate
2023 CONVERSION DRILLING TO ENABLE UPDATED MINERAL RESOURCE AND RESERVE ESTIMATE 11,233 m of underground drilling from 79 drill holes was successfully completed during the 2023 conversion program Drilling in the southern sector returned several high- grade intercepts associated mainly with vein and/
Slide 13: Near-Mine Exploration Advancing on All Fronts
EXPLORATORY PROGRAM NEAR-MINE EXPLORATION N North ADVANCING ON ALL FRONTS Extension Fruta del Norte Plant SURFACE UNDERGROUND FDN Extension FDN (Depth) East FDN Surface drilling continues along the south Underground drilling continues to extension of the East Fault, where Bonza explore the continuit
Slide 14: Regional Exploration Continues
REGIONAL EXPLORATION CONTINUES 8,461 m completed in 2023 7Km Drilling stage targets New targets Barbasco SE Crisbel Q. La Negra Two drill holes completed in 2023, Six drill holes completed in 2023, testing the extension of the FDN East testing this previously unexplored Fault along the southeastern
Slide 15: 2024 to Be the Largest Drilling Program Ever Conducted on Land Package
2024 TO BE THE LARGEST DRILLING PROGRAM EVER CONDUCTED ON LAND PACKAGE THAT HOSTS FDN 70,000 Conversion Exploration Regional Near-Mine CONVERSION DRILLING 60,000 9,815 metres Included in sustaining capital 50,000 Drilled Metres 40,000 NEAR-MINE EXPLORATION 30,000 FDN 46,000 metres Discovery $30 mill
Slide 16: Christopher Kololian, CFO
CHRISTOPHER KOLOLIAN CFO Slide 16 Lundin Gold Q4 Conference Call | February 23, 2024 TSX: LUG / OMX: LUG / OTCQX: LUGDF
Slide 17: Fourth Quarter and Full Year 2023 Financial Highlights
FOURTH QUARTER AND FULL YEAR 2023 FINANCIAL HIGHLIGHTS Three Months ended Year ended December 31 December 31 (Tables are expressed in $’000, except share and per 2023 2022 2023 2022 share amounts, or unless otherwise stated) Net revenues 190,688 210,961 902,518 815,666 Income from mining operations
Slide 18: Free Cash Flow
FREE CASH FLOW1 Three Months ended Year ended December 31 December 31 (Tables are expressed in $’000, except share and 2023 2022 2023 2022 per share amounts, or unless otherwise stated) Net cash provided by operating 92,574 133,390 519,395 426,145 activities Net cash used for investing activities (1
Slide 19: Cash Is King at FDN
CASH IS KING AT FDN In 2023 Lundin Gold generated $519 million in cash from operations and ended Q4 with a cash balance of $268 million, which supports near-mine and regional exploration, conversion drilling, planned capital expenditures, potential 50% buying back 50% of the stream, and dividends $5
Slide 20: Option to Buy Back 50% of the Stream in June for $150M
OPTION TO BUY BACK 50% OF THE STREAM IN JUNE FOR $150M PROJECT FINANCING PACKAGE Lundin Gold prepaid in full the 10 remaining quarterly Gold Prepay Credit Facility (“GPP”) instalments of its GPP through the payment of $207.5 million, inclusive of applicable taxes Elected for early repayment in full
Slide 21: Strongly Positioned to Create Shareholder Value
STRONGLY POSITIONED TO CREATE SHAREHOLDER VALUE DEBT REPAYMENT ORGANIC DIVIDENDS GROWTH/ Based on guidance and current gold prices, Lundin Gold will M&A generate significant free cash flow1 for many years to come 1. Please refer to pages 16 to 18 in the Company's MD&A for the year ended December 31,
Slide 22: Building a Leading Gold Company Through Responsible Mining
Contact information: Finlay Heppenstall - Director, IR & Corp Dev finlay.heppenstall@lundingold.com +1 604-806-3089 BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING Lundin Gold Ecuador LundinGold LundinGold @LundinGold / LundinGoldEC www.lundingold.com TSX, Nasdaq Stockholm: LUG / OTCQX: L