Lundin Gold Inc. · TSX:LUG
Lundin Gold — Investor Day (June 2023)
88 slides from Lundin Gold's investor day presentation, Jun 7, 2023
Slide 1: Investor Day 2023
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING June 7, 2023 INVESTOR DAY 2023 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 target and the future availability and cost of offset credits; share This presentation may use the terms “measured", “indicated“, information contained in this presentation
Slide 3: Agenda
AGENDA INVESTOR DAY 2023 PRESENTING TODAY 1. Introduction Ron Hochstein 2. Operations Terry Smith 3. Exploration Andre Oliveira Ron F. Hochstein Terry Smith President, CEO & Director COO 4. Business Sustainability Nathan Monash 5. Conclusion Ron Hochstein 6. Q&A All Andre Oliveira Nathan Monash VP,
Slide 4: Strongly Positioned to Create Shareholder Value
STRONGLY POSITIONED TO CREATE SHAREHOLDER VALUE Operational Excellence Cash Flow Growth ESG Beat updated 2022 production Significant cash flow generation in Conversion drilling Focus on local community development guidance 2021 and 2022 Near-mine and regional exploration Adopting TCFD recommendation
Slide 5: All Time High Production Reported in First Quarter of 2023
ALL TIME HIGH PRODUCTION REPORTED IN FIRST QUARTER OF 2023 Q1 2023 Q1 2022 140,021 oz 121,665 oz Gold produced Gold produced 88,236 oz 51,785 oz 78,601 oz 43,064 oz Gold as concentrate Gold as doré Gold as concentrate Gold as doré 392,332 12.3 g/t 373,407 11.2 g/t Tonnes milled Average Head Grade To
Slide 6: Lundin Gold in the Lowest Quartile of the Global Gold AISC Curve
LUNDIN GOLD IN THE LOWEST QUARTILE OF THE GLOBAL GOLD AISC CURVE1 2000 Q1 2023 AISC3 Gold Price ~$1,945/oz2 1800 Cash operating costs $644 1600 1400 Corporate social responsibility $4 All-In Sustaining Cost (US$/oz) 1200 Treatment and refining charges $70 1000 Accretion of restoration prevision $1 8
Slide 7: Cash Is King at FDN
CASH IS KING AT FDN In Q1 2023, Lundin Gold generated 144.4 million in cash from operations and ended the quarter with a cash balance of $210 million, which supports debt repayments, near-mine, regional exploration and conversion drilling, planned capital expenditures, and dividends $144.0 $4.0 $(20
Slide 8: First Quarter of 2023 Balance Sheet
FIRST QUARTER OF 2023 BALANCE SHEET As at December 31, As at March 31, 2023 (Table expressed in US$’000) 2022 Financial Position: Cash 209,714 363,400 Working capital 256,853 194,804 Total assets 1,467,040 1,668,865 Long-term debt 434,175 667,966 Equity 885,643 852,081 Slide 8 Lundin Gold Investor D
Slide 9: 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 page 13 in the Company's MD&A for the quarter ended March 31, 2023 f
Slide 10: Making Headway in Debt Consolidation Strategy
MAKING HEADWAY IN DEBT CONSOLIDATION STRATEGY PROJECT FINANCING PACKAGE On January 5th 2023, Lundin Gold prepaid in full the 10 remaining quarterly instalments of its GPP based on the Gold Prepay Credit Facility (“GPP”) price of gold late in December, through the payment of $207.5 million, inclusive
Slide 11: Dividend Above Industry Average
DIVIDEND ABOVE INDUSTRY AVERAGE Quarterly Payout Next Dividend Payment SIGNIFICANT CASH LEFT AFTER $0.10/sh June 27 DIVIDEND PAYMENT TO: (June 30 for shares trading on Nasdaq Stockholm) Gold Mining Industry Average Dividend Yields % - 20221 3.3% 3.2% Accelerate Carry out expanded debt exploration re
Slide 12: Exploration Strategy Showing Material Results
EXPLORATION STRATEGY SHOWING MATERIAL RESULTS CONVERSION DRILLING › 1.58 Moz were added to FDN reserves, more than replacing all mined ounces since the beginning of operations. › Conversion drilling planned in 2023/24 will target the remaining 1.8 Moz of Indicated and 1.7 Moz of Inferred Resources.
Slide 13: 2. Operations
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING 2. OPERATIONS Terry Smith Slide 13 Lundin Gold Investor Day 2023
Slide 14: Site Overview
SITE OVERVIEW Slide 14 Lundin Gold Investor Day 2023
Slide 15: Health and Safety: Industry Leading Safety Performance
HEALTH AND SAFETY INDUSTRY LEADING SAFETY PERFORMANCE Total Recordable Incident Rate (TRIR) - Operations Established an excellent safety program, and TRIR MONTHLY TRIR YTD 2022 TRIR YTD 2023 Annual Limit TRIR Rolling 12 months more importantly a great culture to sustain great performance Q1 0.59 The
Slide 16: Firmly on Track to Meet Production and Cost Guidance
FIRMLY ON TRACK TO MEET PRODUCTION AND COST GUIDANCE 2023 off to a great start, with record Q1 production of 140 koz coupled with AISC of $728/oz sold Gold Production 425,000 – 475,000 Maintaining 2023 guidance oz gold AISC1 Grades expected to be lower through Q2-Q4 $870 – 940 Cost improvements in d
Slide 17: Three-Year Outlook Underscores Low Cost Nature of Fruta del Norte
THREE-YEAR OUTLOOK UNDERSCORES LOW COST NATURE OF FRUTA DEL NORTE 2023 2024 2025 425,000 - 475,000 450,000 - 500,000 465,000 - 515,000 Gold Production (oz) Gold Production (oz) Gold Production (oz) 45 - 55 25 - 35 45 - 55 Sustaining Capital ($ million) Sustaining Capital ($ million) Sustaining Capit
Slide 18: Conversion Drilling Has Improved Understanding of Deposit Geology
CONVERSION DRILLING HAS IMPROVED UNDERSTANDING OF DEPOSIT GEOLOGY 2.1 Moz 1.7 Moz A total of 18,340 metres of 3.2 Moz underground drilling across 88 drill holes was completed during 7.3 Moz 2021/22, the results of which have improved confidence in and further supported the geological model, and 3.6
Slide 19: 1.58 Moz Added to FDN Reserves
1.58 MOZ ADDED TO FDN RESERVES MORE THAN REPLACING MINED OZ SINCE THE BEGINNING OF OPERATIONS 2022 Mineral Reserves1 + 1.58 Moz 5.02 Moz 4.82 Moz Proven Probable Total Tonnage (Mt) 10.75 7.23 17.98 - 1.38 Moz Grade (g/t Au) 9.95 6.81 8.68 Contained Metal 3.44 1.58 5.02 (Moz Au) Grade (g/t Ag) 11.6 1
Slide 20: Operational Excellence
Truck shop excavation OPERATIONAL EXCELLENCE IMPROVING AN ALREADY GREAT BUSINESS A SYSTEM TO ADVANCE INITIATIVES, UTILIZING A SIMPLE STAGE GATE PROCESS TO IMPROVE OUR CAPABILITY TO CAPTURE VALUE Value Quality control Generation and checklist to Locked-In Checklist Results Cash flow checklist Ideas m
Slide 21: Ventilation on Demand
VENTILATION ON DEMAND CENTRALIZED FAN CONTROL REDUCES POWER CONSUMPTION AND WITH IT SCOPE 2 EMISSIONS Auxiliary ventilation control › Speed control of main fans from surface › Online readings of airflow, pressure, gases, temperature, relative humidity and power consumption › ON/OFF control of auxili
Slide 22: Modification of Barricade Design
MODIFICATION OF BARRICADE DESIGN NEW BARRICADE DESIGN REDUCES CEMENT CONTENT IN PASTEFILL With the design of the new barricade, the contact area of waste with the roof was increased from 5.5 meters to 8.77 meters, this allows us to fill the stopes in a single phase, reducing the cement used in the p
Slide 23: Operational Excellence - Mine
OPERATIONAL EXCELLENCE - MINE MORE IMPROVEMENTS IN THE PIPELINE UNDERGROUND TRUCK SHOP › Surface shop at capacity and distant from the underground work fronts › Faster turnaround of equipment repairs improving equipment availability › Additional workshop space facilitates shift to more planned / pre
Slide 24: Operational Excellence – Mill
OPERATIONAL EXCELLENCE – MILL MORE IMPROVEMENTS IN THE PIPELINE JAMESON CELL › Recently installed a “pilot” Jameson cell › Project could recover finer gold fraction currently not recovered in flotation circuit › Woodgrove flotation technology also being considered GEOMETALLURGY › Developing a clear
Slide 25: 5000TPD Mill Expansion
5000TPD MILL EXPANSION Tailings pump box DEBOTTLENECKING OF PLANT › Original design throughput of 3500tpd, now operating ~4400tpd Addition of a › Debottlenecking the plant will utilize the full splitter box capacity of the crushing and grinding circuit with ahead of the upgrades to the following: ta
Slide 26: Strategic Development
STRATEGIC DEVELOPMENT GROWING NPV BY LOOKING AHEAD Mine Life Extension and Enhancement Support Engineering and Permitting › Resources Conversion › Longer mine life, requires additional development: ‒ Target 1.7Moz of Inferred Resource for conversion, as well ‒ Tailings facility: current facility has
Slide 27: 3. Exploration
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING 3. EXPLORATION Andre Oliveira Slide 27 Lundin Gold Investor Day 2023
Slide 28: Regional Geology
REGIONAL GEOLOGY Slide 28 Lundin Gold Investor Day 2023
Slide 29: Regional Geology – New Frontier
REGIONAL GEOLOGY – NEW FRONTIER Fruta del Norte is located in the “Cordillera del Condor”, a Subandean zone in the eastern foothills of the Andes A new frontier for major high-quality deposits on the Andean belt Regional Geological Units Fluvial quartz sandstone of the Cr. (Hollin Fm) Cretaceous Jur
Slide 30: Regional Geology New Frontier
REGIONAL GEOLOGY NEW FRONTIER › The Fruta del Norte deposit (FDN) is located in the Zamora Cu-Au belt, a geological setting with several major deposits discovered: - Cu-Au porphyry deposits with resources totaling >25 Bl lbs Cu and 3.2 Moz Au (i.e. Mirador, Warintza) - Au epithermal and skarns depos
Slide 31: Exploration Concessions
EXPLORATION CONCESSIONS › Lundin Gold has a land package of 28 concessions covering 64,300 ha along a 90 km North-South trend in this highly prospective geological setting › Includes Earn In agreement between Lundin Gold and Newcrest ‒ Eight exploration concessions covering 15,700 ha › Before Lundin
Slide 32: Fruta del Norte Geology
FRUTA DEL NORTE GEOLOGY Slide 32 Lundin Gold Investor Day 2023
Slide 33: Fruta del Norte: A Unique Deposit
FRUTA DEL NORTE A UNIQUE DEPOSIT › Fruta del Norte is a blind Au-Ag epithermal system in the Zamora Belt › High degree of preservation. Uniquely preserved in its entirely because of progressive syn hydrothermal burial › Hydrothermal alteration and minor values of Au, As, Sb, Hg, Mo indicating minera
Slide 34: Fruta del Norte – A Unique Deposit
FRUTA DEL NORTE – A UNIQUE DEPOSIT One of the premier gold discoveries of the last 50 years. Large mineral inventory concentrated a in small volume (1.3 km long, 60 to 160 m wide, 300 m high subvertical) Breccias and veins domain: Volcanic and breccias domain: - 40-50 m average width - 30-40 m avera
Slide 35: Fruta del Norte – Large Mineral Resource
FRUTA DEL NORTE – LARGE MINERAL RESOURCE1 2.1 Moz 1.7 Moz 3.2 Moz 7.3 Moz A high quality deposit with a sustainable mineral resource 3.6 Moz inventory 2016 2022 Measured Resources Indicated Resources Inferred Resources 1. Please see the Company’s technical report entitled “Amended NI 43-101 Technica
Slide 36: First Mover Opportunity
FIRST MOVER OPPORTUNITY PROSPECTIVE EXPLORATION DISTRICT › Short exploration history ‒ Since discovery, focus on the deposit delineation, development and contruction/production ‒ Limited exploration outside FDN. Have conducted >93% of drilling at Fruta Del Norte and Bonzas-Las Penas › Unexplored ter
Slide 37: First Mover Opportunity
FIRST MOVER OPPORTUNITY PROSPECTIVE EXPLORATION DISTRICT › All critical aspects for high quality deposits are present: metals, geological architecture ‒ Major Structures: East and West Major Faults ‒ Occurrence of the favourable lithologies that host FDN Q.La Negra Norte ‒ Preservation under Suarez
Slide 38: Exploration Strategy
EXPLORATION STRATEGY Slide 38 Lundin Gold Investor Day 2023
Slide 39: Exploration Strategy
EXPLORATION STRATEGY CORE EXPERTISE & INVESTMENT PRIORITY › Renewed exploration focusing on large under explored areas around operating mine › Multi-year exploration plan to unlock FDN district potential TEAM: Geoscientists underpinned by a successful operating Model - Fruta del Norte Discovery Grou
Slide 40: Exploration Strategy
EXPLORATION STRATEGY CONTINUOUS INVESTIMENT IN DRILLING ~43.000 Near Mine Drilling Expansion Lundin Gold drilling 7,500 program at FDN has Start Near expanded annually since 7,600 Mine Program 2021 FDN - Recently announced drilling expansion supported by first round of promising results 26,200 - Sev
Slide 41: Exploration Strategy
EXPLORATION STRATEGY SIMPLE APPROACH CONVERSION DRILLING › Replace depleted ounces and grow reserve base through conversion of a large inferred resources base NEAR-MINE PROGRAM › Grow inferred resources through extension of known deposit and identification of new targets within FDN system REGIONAL P
Slide 42: Conversion Program
CONVERSION PROGRAM Slide 42 Lundin Gold Investor Day 2023
Slide 43: 2023 – 2024 Conversion Program
2023 – 2024 CONVERSION PROGRAM OPPORTUNITY FOR FURTHER RECATEGORIZATION Conversion drilling program at FDN successfully replaced all mined Mineral Reserves since beginning of operations New Resource Model has identified areas for further conversion drilling Additional conversion drilling planned in
Slide 44: Conversion Program - High Grade Results Within the Mineral Envelope
CONVERSION PROGRAM - HIGH GRADE RESULTS WITHIN THE MINERAL ENVELOPE N North-Central sector Southern extension S FDN-C23-007 160.20m @ 4.27 g/t Au (48.50m) Incl. 31.80m @ 7.13 g/t Au (110.60m) FDN-C23-001 26.00m @ 4.08 g/t Au (90.80m) FDN-C23-008 Incl. 12.90m @ 5.97 g/t Au FDN-C23-010 FDN-C23-004 24.
Slide 45: Near-Mine Program
NEAR-MINE PROGRAM Slide 45 Lundin Gold Investor Day 2023
Slide 46: Near-Mine Exploration
NEAR-MINE EXPLORATION GROWING RESOURCE & SUSTAINING PRODUCTION THREE MAJOR FOCUSES SOUTH FDN EAST DEPTH EXTENSION AND WEST Near-mine exploration focuses on expanding the FDN mineral resource envelope and testing several unexplored opportunities near the mine Results from the first round of drilling
Slide 47: Near-Mine Exploration Reports High Grade Intercepts
NEAR-MINE EXPLORATION REPORTS HIGH GRADE INTERCEPTS Exploration in the South Extension of FDN East Fault successfully identified mineralization in new sectors FDN South (“FDNS”) › New buried epithermal mineralization located to the west of the East Fault. › Drilling intercepted wide hydrothermal alt
Slide 48: Near Mine Exploration: Expanded the Mineralized Trend
NEAR MINE EXPLORATION EXPANDED THE MINERALIZED TREND FDN-Bonza Sur Long Section (North-South) FDNS Bonza Sur (>100ppb Soil anomaly) FDNS-2022-015 FDNS-2023-019 FDNS-2023-024 FDNS-2023-023 BLP-2023-020 N BLP-2023-022 S BLPW-2022-017 BLP-2023-025 FDN BLP-2022-016 Encouraging drilling results related t
Slide 49: Near Mine Exploration: Fruta del Norte Extension
NEAR MINE EXPLORATION FRUTA DEL NORTE EXTENSION › Underground exploration drill program is underway targeting resource & reserve growth - Extension of higher-grade shoots along the down plunge continuity in the north sector - Extend mineral envelope in the south where recent drilling intercepts indi
Slide 50: Near Mine Exploration: FDN West and East Targets
NEAR MINE EXPLORATION FRUTA DEL NORTE WEST AND EAST TARGETS Fruta del Norte East-West Cross Section LEGEND W E Suárez conglomerate Hydrotermal breccia/Vein 1500 Hydrotermal breccia Undiff Sinter Phreatic breccia Feldespar porphyry West East Santiago andesite/stockwork › Nearby Fruta del Norte, the m
Slide 51: Short Term Strategy
SHORT TERM STRATEGY DISCIPLINED PROGRAM FOR RESOURCE & RESERVES GROWTH Optimize Near-term Life Extension & New Reserve Base Extension Discoveries Potential Operational FDN Deposit Infill drilling & continuous Excellence Improvement Resource Conversion Drill FDN Depth Extension Conversion & Near Mine
Slide 52: Regional Exploration
REGIONAL EXPLORATION Slide 52 Lundin Gold Investor Day 2023
Slide 53: Regional Exploration: Long Term Strategy
REGIONAL EXPLORATION LONG TERM STRATEGY › Explore for a new buried epithermal system 7Km Drilling stage targets ‒ Similar geological conditions/setting to that found around FDN New targets ‒ Focus on southern basin, 7 km distance from the mine plant ‒ Different exploration environment (topography, c
Slide 54: Regional Exploration: Quebrada La Negra
REGIONAL EXPLORATION QUEBRADA LA NEGRA › At Quebrada La Negra, drilling Au + As successfully identified large anomaly in soil structures ‒ Same geological setting as FDN (border and covered by the basin) ‒ Wide hydrothermal alteration zone - quartz veins and breccias, with significant amounts of bas
Slide 55: District Scale Exploration
Near Mine DISTRICT SCALE EXPLORATION Regional Programs › Lundin Gold holds a large package of concessions with less than 25% explored to date › Significant geochemical anomalies in a high potential geological setting to be developed › Generative exploration program to provide new exploration targets
Slide 56: Robust Exploration Target Pipeline
ROBUST EXPLORATION TARGET PIPELINE BALANCED FOR CONTINUED GROWTH Proven & Probable Reserves › Numerous exploration opportunities in Prospect Advancement Development an unexplored district that hosts a world Measured & Preliminary Economic Assessment, Scoping class gold deposit Indicated Resource Pre
Slide 57: 4. Business Sustainability
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING 4. BUSINESS SUSTAINABILITY Nathan Monash Slide 57 Lundin Gold Investor Day 2023
Slide 58: Political, Economic and Mining Landscape
POLITICAL, ECONOMIC AND MINING LANDSCAPE National and Local Slide 58 Lundin Gold Investor Day 2023
Slide 59: National Political Landscape
NATIONAL POLITICAL LANDSCAPE On May 17th, President Guillermo Lasso activated the “Muerte Cruzada” constitutional mechanism National elections National Assembly was (President and dissolved while the New national Congress) in August, impeachment process authorities will be in with a second round in
Slide 60: National Economic Landscape
NATIONAL ECONOMIC LANDSCAPE Improved Final stages for macroeconomics commercial treaties Lack of investment in indicators (GDP, public with China and South sectors such as health, deficit) due to increase Korea; early stages education, public roads of exports, oil prices, with Panama and and agricul
Slide 61: National Mining Landscape
NATIONAL MINING LANDSCAPE Active role with the LUG and CME1 hold National Assembly Ongoing meetings with regular meetings with (now dissolved) to ambassadors from the President, his understand potential mining countries advisors and ministers reforms that can affect mining sector There will be two l
Slide 62: Fruta del Norte (FDN) Area of Influence
FRUTA DEL NORTE (FDN) AREA OF INFLUENCE › There are no communities within FDN´s direct area of influence Indirect area of influence (ring 1) 22 communities in Los Encuentros Río Blanco El Playón Slide 62 Lundin Gold Investor Day 2023 TSX: LUG / OMX: LUG / OTCQX: LUGDF
Slide 63: Local Political Landscape
LOCAL POLITICAL LANDSCAPE There are new local authorities at the parish, municipal and provincial levels Ongoing engagement with them to define priorities and collaboration opportunities. This will include visiting FDN Ongoing interaction and strong relationship with the Shuar Federation of Zamora C
Slide 64: Level of Acceptance of Mining Perception Survey 2022
LEVEL OF ACCEPTANCE OF MINING PERCEPTION SURVEY 2022 Identification Psychological Benchmark results in the Latin Confidence threshold America region vs. Yantzaza and Los Encuentros in 2022 ‘22 vs ‘21 Approval Yantzaza (0.64*) 1. Peru (0.57) Credibility threshold 2. Chile (0.55) 3. Bolivia (0.51) 4.
Slide 65: Sustainability Strategy 2021-2025
SUSTAINABILITY STRATEGY 2021-2025 Slide 65 Lundin Gold Investor Day 2023
Slide 66: Sustainability Strategy Lundin Gold
SUSTAINABILITY STRATEGY LUNDIN GOLD 2021-2025 Climate ACCOUNTABILITY Change AND Community MANAGEMENT Infrastructure SYSTEMS Community Well-being EXTERNAL COMMUNICATION, SUSTAINABILITY AND FINANCIAL REPORTS Environmental Stewardship ENABLERS STRATEGIC OF PILLARS SUCCESS Health & Safety STRATEGIC PART
Slide 67: ESG Considered in Every Aspect of Our Activities
ESG CONSIDERED IN EVERY ASPECT OF OUR ACTIVITIES STRATEGIC PILLARS Health & Safety Climate Change TRIR (total recordable incident rate) Annual Climate Change report published. reduction for operations: 0.46 in 2021, Established GHG emissions reduction target, and and 0.30 in 2022 provided greater de
Slide 68: Industry Leading GHG Emissions Intensity
INDUSTRY LEADING GHG EMISSIONS INTENSITY Industry leading GHG emissions (Scopes 1 and 2) intensity of Target: To be carbon neutral by 2030 with respect to Scopes 1 and 2 emissions 0.06 tCO2e per ounce of gold produced in 2022 based on the current life of mine plan Credible and transparent pathway to
Slide 69: Key Community Investment Initiatives: Estamos Conectados
KEY COMMUNITY INVESTMENT INITIATIVES ESTAMOS CONECTADOS Estamos Conectados Program 22 Wi-Fi community hotspots in 21 communities Fiber optic network installation Increased internet capacity in the “Unidad Educativa 10 de Noviembre” Donation of 1,545 tablets to students from four schools in Ring 1: ›
Slide 70: Key Community Investment Initiatives: Community Infrastructure
KEY COMMUNITY INVESTMENT INITIATIVES COMMUNITY INFRASTRUCTURE ICU Zamora Chinchipe In 2022, the emergency room provided critical medical care to 126 patients from the provinces of Zamora Chinchipe, El Oro LUG, SolGold and Newcrest Mining and Morona Santiago, of which 49% came from Rings 1 and 2 Inve
Slide 71: Key Community Investment Initiatives: Community Well Being
KEY COMMUNITY INVESTMENT INITIATIVES COMMUNITY WELL BEING Home care for vulnerable and priority Pillar 1 groups Pillar 2 Epidemiological monitoring In 2022, Lundin Gold continued to support the Neighborhood Doctor Program, through which doctors treated an average of 1,000 patients per month from vul
Slide 72: Key Community Investment Initiatives: Community Well Being
KEY COMMUNITY INVESTMENT INITIATIVES COMMUNITY WELL BEING In May 2022, the after-school activities were reactivated in Los More than 200 students, 122 of them Encuentros women, have accessed higher education between 2015 and 2021 Pillar In person: wrestling, boxing, 1 music, dance and soccer 46 42 P
Slide 73: Key Community Investment Initiatives: Agriculture
KEY COMMUNITY INVESTMENT INITIATIVES AGRICULTURE Objective: Contribute to the creation of lasting economic opportunities for local communities, both with Lundin Gold and in the broader economy › Takataii: linking local farmers to FDN’s catering. The Lundin Foundation started in 2023 a comprehensive
Slide 74: Key Community Investment Initiatives: Indigenous People
KEY COMMUNITY INVESTMENT INITIATIVES INDIGENOUS PEOPLE General Framework Shuar Num Tourism Company Agreement Preservation of the ancestral Shuar Goal: Promote cooperation culture through tourism. between LUG and the Shuar Federation of Zamora Chinchipe (2021 – 2024). Shuar Federation Offices Remodel
Slide 75: Key Community Investment Initiatives: Business Opportunities
KEY COMMUNITY INVESTMENT INITIATIVES BUSINESS OPPORTUNITIES OSBRA ASERFRUN SMERA › Local procurement in Zamora Chinchipe: Textile factory Maintenance and Refilling 2020: $23 million Cleaning and Sanitizing of Fire Extinguishers › 2021: $32 million › 2022: $37 million In 2021, companies OSBRA, SMERA
Slide 76: Grievance Mechanism
GRIEVANCE MECHANISM Lundin Gold has an IFC-compliant grievance mechanism in place since 2016. This is key to Lundin Gold’s commitment to respect human rights Complaints can come from individuals, organizations, institutions or communities. Complaints can be lodged in Spanish, Shuar or English, via m
Slide 77: Enablers of Success: Participatory Dialogue
ENABLERS OF SUCCESS PARTICIPATORY DIALOGUE CHARACTERISTICS OF THE PROCESS › Proactive, not reactive › Facilitated by a neutral entity › Multistakeholder › Commitments are made and monitored › Ongoing with sessions every six weeks since 2016 › Senior LUG leaders deeply engaged › Participation of comm
Slide 78: Enablers of Success: Strategic Partnerships
ENABLERS OF SUCCESS STRATEGIC PARTNERSHIPS Slide 78 Lundin Gold Investor Day 2023 TSX: LUG / OMX: LUG / OTCQX: LUGDF
Slide 79: Enablers of Success: External Communication and Sustainability Report
ENABLERS OF SUCCESS EXTERNAL COMMUNICATION AND SUSTAINABILITY REPORT Slide 79 Lundin Gold Investor Day 2023 TSX: LUG / OMX: LUG / OTCQX: LUGDF
Slide 80: FDN Economic and Social Impact
FDN ECONOMIC AND SOCIAL IMPACT Slide 80 Lundin Gold Investor Day 2023
Slide 81: FDN Contribution to National Exports
FDN CONTRIBUTION TO NATIONAL EXPORTS Non-Oil Exports Rankings (USD millions) $8,000 2022 $7,000 2019 2020 2021 2022 Mining exports are: $6,000 • 1st: non-traditional exports* $5,000 • 3rd: non-oil exports $4,000 750% • 4th: total exports (including oil) $3,000 2,775 2,092 $2,000 FDN exports represen
Slide 82: FDN Contribution to Gross Domestic Product (GDP)
FDN CONTRIBUTION TO GROSS DOMESTIC PRODUCT (GDP) 2020 contribution 2021 contribution 0.32% 0.50% National FDN National Value National GDP Chain GDP FDN 42% 37% LOM estimated Zamora Chinchipe FDN Provincial contribution: Zamora Chinchipe GDP Value Chain GDP* $7.8 – 8.8 billion 81% Canton Value 85% FD
Slide 83: Direct and Indirect Benefits for the State
DIRECT AND INDIRECT BENEFITS FOR THE STATE Income Tax* (paid in March 2022) Tax Contribution VAT on purchases of FDN Royalties* • LUG among the top 7 private companies goods/services* Contribution that generated the most income tax in 2021 to Revenues • $1.3 – 1.5 billion royalties and taxes Yantzaz
Slide 84: FDN Contribution to Local Sales with Multiplier Effect
FDN CONTRIBUTION TO LOCAL SALES WITH MULTIPLIER EFFECT FDN purchases and total impact in Ecuador and Zamora Chinchipe $590 SALES - LINKAGES $544 • Zamora Chinchipe was one of the first Direct Purchases Total Impact provinces to recover pre-pandemic $357 level of sales. 3 2 2 6 6 4 7 7 6 $248 • More
Slide 85: FDN Social Impact Local
FDN SOCIAL IMPACT LOCAL Zamora Chinchipe poverty rate (by income): Zamora Chinchipe poverty rate (by unmet basic needs): o 35% in 2022 vs 43% in 2019 o 27.5% in 2022 vs 34.3% in 2019. o Only 5 out of 24 provinces reduced their poverty o Zamora Chinchipe has the lowest level of poverty levels measure
Slide 86: 5. Conclusions
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING 5. CONCLUSIONS Ron Hochstein Slide 86 Lundin Gold Investor Day 2023
Slide 87: Lundin Gold Is Now a Growth Story
LUNDIN GOLD IS NOW A GROWTH STORY INVESTOR DAY 2023 Operational Excellence Cash Flow Growth ESG Slide 87 Lundin Gold Investor Day 2023 TSX: LUG / OMX: LUG / OTCQX: LUGDF
Slide 88: Q&A
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING Q&A www.lundingold.com TSX, Nasdaq Stockholm: LUG OTCQX: LUGDF