Lundin Gold Inc. · TSX:LUG
Lundin Gold — Investor Presentation (April 2024)
27 slides from Lundin Gold's investor presentation, April 2024
Slide 1: Building a Leading Gold Company Through Responsible Mining
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING A CASH FLOW STORY April 2024 www.lundingold.com TSX, Nasdaq Stockholm: LUG OTCQX: LUGDF
Slide 2: Caution Regarding Forward-Looking Information and Statements
CAUTION REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS All statements, other than statements of historical fact, made and same. There can be no assurance that such statements will prove Canadian regulations, the Securities and Exchange Commission information contained in this presentation and
Slide 3: Fruta del Norte
FRUTA DEL NORTE THE FIRST LARGE-SCALE GOLD MINE IN ECUADOR Location: Zamora Chinchipe Province, Q1 2024 Operating Results Southeast Ecuador Recently Released 111,572 oz Gold produced Ownership: Stage: Mine Type: 100% Producing Underground 9.5 g/t Average Head Grade 88.3% Average recovery Life of Min
Slide 4: Ecuador, a World-Class Mining Jurisdiction
ECUADOR, A WORLD-CLASS MINING JURISDICTION Unique status as a responsible First Mover FDN is one of two large-scale operator provides excellent FDN operations are Advantage operating mines in Ecuador standing with the Government insulated from the and local community recent security situation, which
Slide 5: Industry Leading GHG Emissions Intensity
INDUSTRY LEADING GHG EMISSIONS INTENSITY Target: To be carbon neutral by 2030 with Industry leading GHG emissions (Scopes 1 and 2) intensity of respect to Scopes 1 and 2 emissions 0.06 tCO2e per ounce of gold produced in 20221 based on the current life of mine plan Credible and transparent pathway t
Slide 6: Delivering Future Value at Lundin Gold
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING DELIVERING FUTURE VALUE AT LUNDIN GOLD Slide 6
Slide 7: Strongly Positioned to Create Shareholder Value
STRONGLY POSITIONED TO CREATE SHAREHOLDER VALUE Operational Excellence Cash Flow Growth ESG Met high end of improved 2023 Significant cash flow generation Successful replacement of FDN’s mined Focus on local community development production guidance mineral reserves as at Dec 31, 2023 Gold Prepay Fa
Slide 8: 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 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 2023 AISC2 1800 1600 Cash operating costs $697 1400 All-In Sustaining Cost (US$/oz) Corporate social responsibility $5 1200 Treatment and refining charges $83 1000 800 Accretion of restoration prevision $1 600 Sustaining capital $101 400 Si
Slide 10: That Provides Better Exposure to a Rising Gold Price
… THAT PROVIDES BETTER EXPOSURE TO A RISING GOLD PRICE $2,300 OCF Margin - Select Peer Average OCF Margin - Lundin Gold Average Gold Price (US$/oz Au) Key Gold Exposure Drivers: $2,100 $1,943 $1,798 $1,800 $1,900 $1,773 $1,700 Meaningful Modest capex to 57% 58% $1,393 $1,500 operating cash sustain a
Slide 11: Three-Year Outlook Underscores Free Cash Flow Potential
THREE-YEAR OUTLOOK UNDERSCORES FREE CASH FLOW POTENTIAL 2024 2025 2026 450,000 - 500,000 475,000 - 525,000 475,000 - 525,000 Gold Production (oz) Gold Production (oz) Gold Production (oz) 35 - 45 65 - 80 40 - 55 Sustaining Capital ($ million) Sustaining Capital ($ million) Sustaining Capital ($ mill
Slide 12: Lundin Gold Is a Free Cash Flow Story
LUNDIN GOLD IS A FREE CASH FLOW STORY Historical Free Cash Flow1 Generation (US$M) $156M $147M $143M $122M $120M $113M Commercial $39M Production H1'20 H2'20 H1'21 H2'21 H1'22 H2'22 H1'23 H2'23 -$47M 1. Free cash flow is reported by Lundin Gold as cash flow provided by operating activities, less cas
Slide 13: Cash Is King at FDN
CASH IS KING AT FDN $519 $14 $(208) $(193) $(80) $(95) $363 $(52) $268 Cash as at Dec. 31, 2022 Cash generated from Proceeds from the exercise Full repayment of GPP Full repayment of Senior Principal repayments, Dividends Cash Outflows Cash as at December 31, operating activities of stock options, a
Slide 14: 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 Prepaid the 10 remaining quarterly instalments of the Gold Prepay Credit Facility (“GPP”) GPP for $207.5 million Repaid early the remaining balance of the senior debt Senior Debt Facility totaling $72 million Stream Cre
Slide 15: Dividend Above Industry Average
DIVIDEND ABOVE INDUSTRY AVERAGE 2023 Payout (paid quarterly) SIGNIFICANT CASH LEFT AFTER $0.40/sh = ~US$95M DIVIDEND PAYMENT TO: Gold Mining Industry Average Dividend Yields %1 3.6% Carry out Buy back expanded Stream Facility exploration 2.7% 2.7% programs 2.1% Fund future capital Pursue projects an
Slide 16: Exploration Is the Future
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING EXPLORATION IS THE FUTURE Slide 16
Slide 17: 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 18: A Simple Approach to Exploration
A SIMPLE APPROACH TO EXPLORATION CONVERSION DRILLING › Replace depleted ounces and grow reserve base through conversion of inferred resources NEAR-MINE PROGRAM › Grow inferred resources through extension of known deposit and identification of new targets REGIONAL PROGRAM › Develop long-term gold inv
Slide 19: 2.59 Moz Added to FDN Reserves Since Operations Began in 2019
2.59 MOZ ADDED TO FDN RESERVES SINCE OPERATIONS BEGAN IN 2019 +2.59 Moz 5.50 Moz 2023 Mineral Reserves1 4.82 Moz Proven Probable Total Tonnage (Mt) 7.56 14.14 21.70 Grade (g/t Au) 9.42 7.06 7.89 -1.86 Moz Contained Metal 2.29 3.21 5.50 (Moz Au) Grade (g/t Ag) 10.5 11.7 11.3 Contained Metal 2.55 5.34
Slide 20: 2023 Conversion Program Has Enabled Growth of M&I Resources
2023 CONVERSION PROGRAM HAS ENABLED GROWTH OF M&I RESOURCES 1.7 Moz 1.5 Moz 3.2 Moz 4.1 Moz 3.6 Moz 2.9 Moz 2022 2023 Inferred Resources Indicated Resources Measured Resources 1. Please see the Company’s news release dated March 27, 2024 filed on SEDAR+ under the Company’s profile at www.sedarplus.c
Slide 21: Near-Mine Exploration Advancing on All Fronts
EXPLORATORY PROGRAM NEAR-MINE EXPLORATION N North ADVANCING ON ALL FRONTS Extension Fruta del Norte Plant FDN Extension FDN (Depth) East SURFACE UNDERGROUND FDN Legend Soil Sampling Drilling explores continuity of FDN at Au_ppb Drilling continues along south extension depth and beyond major faults t
Slide 22: FDNS and Bonza Sur Taking Shape
FDNS AND BONZA SUR N TAKING SHAPE FDN North FDN MINE East Fault FDN East FDN 4,000 meters FDNS West Fault FDN UG DEVELOPMENT Historical Drill Holes Bonza Sur Reserves M&I Resources FDN UG DEVELOPMENT Veins and Veins Domain FDNS Regional Faults zones M&I Resources Source: Lundin Gold, March 2024 Vein
Slide 23: 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 complete in 2023, testing the extension of the FDN East testing this previously unexplored Fault along the southeastern g
Slide 24: Robust Exploration Target Pipeline - Balanced for Continued Growth
ROBUST EXPLORATION TARGET PIPELINE - BALANCED FOR CONTINUED GROWTH Proven & Probable Reserves Development Measured & Preliminary Economic Assessment, Scoping Indicated Resource Pre-Feasibility Study & Feasibility Study Inferred Conversion and Infill Drilling, Geo. Modelling, Resource Base Min. Res.
Slide 25: Corporate Structure
CORPORATE STRUCTURE (DATA AS AT APRIL 9, 2024) CAPITAL MARKETS DATA SHAREHOLDERS TSX: LUG / OMX: LUG Market Capitalization Symbol $4,572 M / OTCQX: LUGDF (CAD) Share price (CAD/sh) $19.15 Cash Position (December 31, US$268 M 2023) 52 Week Trading Range (CAD/sh) $14.23-19.57 LT Debt (stream only) (De
Slide 26: Lundin Gold - Foundation for Value Creation
LUNDIN GOLD – FOUNDATION FOR VALUE CREATION Operational Excellence Near term FDN Catalysts Cash Flow Regional and near-mine exploration drilling results Further deleveraging Growth Dividend payments ESG Slide 26 TSX: LUG / OMX: LUG / OTCQX: LUGDF
Slide 27: Thank You
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING THANK YOU Slide 27