Lundin Gold Inc. · TSX:LUG
Lundin Gold — Investor Day (September 2024)
108 slides from Lundin Gold's investor day presentation, Sep 6, 2024
Slide 1: Building a Leading Gold Company Through Responsible Mining
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING September 6, 2024 INVESTOR DAY 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 Resources and Reserves at Fruta del Norte. There can be no advised that, while such terms are recognized and required by information contained in this presentation and resp
Slide 3: Agenda
AGENDA INVESTOR DAY 2024 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 Juan José Herrera 5. Conclusion Ron Hochstein 6. Q&A All Andre Oliveira Juan José Herr
Slide 4: 2024 Shaping Up to Be Another Strong Year for Lundin Gold
2024 SHAPING UP TO BE ANOTHER STRONG YEAR FOR LUNDIN GOLD 2023 Objectives Results 2024 Focus Met updated 2023 guidance 2024 guidance: 450,000 – 500,000 oz Continue Operating Excellently Generated Free Cash Flow1 of $263 million Complete Process Plant Expansion Project Clean up Early repayment of the
Slide 5: Strong Operating Performance in Q2 2024
STRONG OPERATING PERFORMANCE IN Q2 2024 Q2 2024 H1 2024 133,062 oz 244,634 oz Gold produced Gold produced 83,910 oz 49,152 oz 157,874 oz 86,760 oz Gold as concentrate Gold as doré Gold as concentrate Gold as doré 424,899 11.0 g/t 838,495 10.2 g/t Tonnes milled Average Head Grade Tonnes milled Averag
Slide 6: One of the Lowest Cost Gold Mines in the World
ONE OF THE LOWEST COST GOLD MINES IN THE WORLD Q2 2024 AISC1 2000 Cash operating costs $725 1800 1600 Corporate social responsibility $4 1400 All-In Sustaining Cost (US$/oz) Treatment and refining charges $80 1200 Accretion of restoration prevision $1 1000 800 Sustaining capital $95 600 Silver by pr
Slide 7: Firmly on Track to Meet Production and Cost Guidance
FIRMLY ON TRACK TO MEET PRODUCTION AND COST GUIDANCE 2024 2025 2026 450,000 - 500,000 475,000 - 525,000 475,000 - 525,000 Gold Production (oz) Gold Production (oz) Gold Production (oz) 35 - 45 65 - 80 40 - 55 Sustaining Capital ($ million) Sustaining Capital ($ million) Sustaining Capital ($ million
Slide 8: Generating Significant Free Cash Flow
GENERATING SIGNIFICANT FREE CASH FLOW Historical Free Cash Flow1 Generation (US$M) $194M $156M $147M $143M $122M $120M $113M Commercial Production $39M H1'20 H2'20 H1'21 H2'21 H1'22 H2'22 H1'23 H2'23 H1'24 -$47M 1. Free cash flow is reported by Lundin Gold as cash flow provided by operating activiti
Slide 9: Expansion Project to Increase Throughput and Improve Recoveries
EXPANSION PROJECT TO INCREASE THROUGHPUT AND IMPROVE RECOVERIES Average Annual Plant Throughput (tpd) and Recovery (%) 6,000 92% FOCUS OF 91.0%1 91% EXPANSION: 5,000 4,272 4,533 4,500 5,000 90% 3,878 89.5% 4,000 89.0% 89% Tailings & Water Reclaim 3,499 tpd 88.6% 88.4% 88% 3,000 87% Ultrafine Flotati
Slide 10: Lundin Gold Is Now Debt Free
LUNDIN GOLD IS NOW DEBT FREE… PROJECT FINANCING PACKAGE January 2023: Prepaid the 10 remaining quarterly Gold Prepay Credit Facility (“GPP”) instalments of the GPP for $207.5 million November 2023: Repaid early the remaining balance of Senior Debt Facility the senior debt totaling $72 million June 2
Slide 11: Dividend Doubled
DIVIDEND DOUBLED Increased Dividend (paid quarterly) SIGNIFICANT CASH LEFT AFTER $0.80/sh = ~$200M annually INCREASED DIVIDEND PAYMENT TO: Gold Mining Industry Average Dividend Yields %1 4.2% Carry out Fund future expanded capital projects exploration and expansion programs opportunities 2.4% 2.2% P
Slide 12: A Simple Approach to Exploration
A SIMPLE APPROACH TO EXPLORATION CONVERSION DRILLING › 2.59 Moz have been added to FDN reserves, more than replacing all mined ounces since the beginning of operations. NEAR-MINE PROGRAM › Extension of FDN deposit and addition of inferred resources. New discoveries discovered close to the processing
Slide 13: Strongly Positioned to Create Shareholder Value
STRONGLY POSITIONED TO CREATE SHAREHOLDER VALUE Operational Excellence Cash Flow Growth ESG Focus on continued Repaid in full all of project 2.59 Moz added to Reserves A leader in responsible mining optimization of operations finance debt since operations at FDN began Throughput to increase to Quart
Slide 14: 2. Operations
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING 2. OPERATIONS Terry Smith Slide 14 Lundin Gold Investor Day 2024
Slide 15: Agenda: Operations
AGENDA OPERATIONS 1. Site Overview 2. Life of Mine Plan 3. Reserve Growth 4. Health & Safety 5. Plant Expansion 6. Operational Excellence Terry Smith COO Slide 15 Lundin Gold Investor Day 2024 TSX: LUG / OMX: LUG / OTCQX: LUGDF
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Slide 17: Mineral Reserves
MINERAL RESERVES 2.59MOZ ADDED SINCE 2019 +2.59 Moz 5.50 Moz 2023 Mineral Reserves1,2 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 2.90 3.21 5.50 (Moz Au) Grade (g/t Ag) 10.5 11.7 11.3 Contained Metal 2.55 5.34 7.89 (Moz Ag) 201
Slide 18: Health and Safety
HEALTH AND SAFETY SAFETY PERFORMANCE TRIR TRIR YTD TRIR YTD TRIR Rolling MONTHLY 2023 2024 12 months Operations team is addressing increasing incident trend 1.50 › 69% of injuries are hand injuries (11 of 16) › Several injuries are related to 1.00 contractors on site for the Expansion Project TRIR ›
Slide 19: Plant Expansion Project Overview
PLANT EXPANSION PROJECT OVERVIEW Project is on track to achieve What improvements are improvements by year end targeted with this expansion? Detailed engineering complete ‒ Throughput Increase to 5,000 tpd Procurement complete New tailings line substantially ‒ Recovery Improvement of 3% comple
Slide 20: Plant Expansion Project: Construction Progressing
PLANT EXPANSION PROJECT CONSTRUCTION PROGRESSING Slide 20 Lundin Gold Investor Day 2024 TSX: LUG / OMX: LUG / OTCQX: LUGDF
Slide 21: Plant Expansion Project: Jameson Cell Area
PLANT EXPANSION PROJECT JAMESON CELL AREA Slide 21 Lundin Gold Investor Day 2024 TSX: LUG / OMX: LUG / OTCQX: LUGDF
Slide 22: Plant Expansion Project: Jameson Cell Area
PLANT EXPANSION PROJECT JAMESON CELL AREA Jameson Cell Additions to Flowsheet › Rougher feed ‒ Recovering fines ahead of traditional tank cell flotation › Cleaner feed ‒ Recover fines ahead of cleaner circuit after regrind › Rougher tailings ‒ Recover fines not captured in circuit previously Slide 2
Slide 23: Plant Expansion Project: Concentrate Area
PLANT EXPANSION PROJECT CONCENTRATE AREA Slide 23 Lundin Gold Investor Day 2024 TSX: LUG / OMX: LUG / OTCQX: LUGDF
Slide 24: Plant Expansion Project: Concentrate Area
PLANT EXPANSION PROJECT CONCENTRATE AREA Slide 24 Lundin Gold Investor Day 2024 TSX: LUG / OMX: LUG / OTCQX: LUGDF
Slide 25: Operational Excellence
OPERATIONAL EXCELLENCE PRODUCE MORE EFFICIENTLY, AT LOWER COSTS WITH FOCUS ON ENVIRONMENTAL RESPONSIBILITY Key Levers Production Au recovery • Plant expansion (Jameson cells), geometallurgy program Throughput • Plant expansion project (debottlenecking with additional equipment) Mine Fleet Availabili
Slide 26: Operational Excellence - Production
OPERATIONAL EXCELLENCE - PRODUCTION A MULTIYEAR STORY OF REVENUE ENHANCEMENTS 4,665 Ramp-up to design throughput 4,535 4,270 Preparation 2nd 4,200 Expansion Ramp-up to • Upgraded VFDs 4,000 design throughput • Improve tailings motor output • Jaw crusher grizzly design 3,632 Process Optimization • Ne
Slide 27: Operational Excellence - Operating Costs
OPERATIONAL EXCELLENCE - OPERATING COSTS NUMEROUS INITIATIVES DRIVING COSTS DOWN MINE Description Value Range Per Year Period Operator training, drill bit sharpening, Reduction of drilling steel consumption alternative suppliers +$1.5M Retail Reduction of backfill cement consumption Changed type of
Slide 28: Operational Excellence: Leveraging Technology
OPERATIONAL EXCELLENCE LEVERAGING TECHNOLOGY FOR FURTHER IMPROVEMENTS MINE Description Fleet efficiency, maintenance improvements, Mining Operations Center ventilation automation, increased mine production, machine learning and advanced analytics. Strategic Management Slide 28 Lundin Gold Investor D
Slide 29: Operational Excellence: Leveraging Technology
OPERATIONAL EXCELLENCE LEVERAGING TECHNOLOGY FOR FURTHER IMPROVEMENTS PROCESS PLANT Description Improve recoveries with plant stability and better Advanced Process Control management with variable ore type changes. Higher overall throughput with less upset conditions. Management Flotation Cameras SA
Slide 30: 3. Exploration
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING 3. EXPLORATION Andre Oliveira Slide 30 Lundin Gold Investor Day 2024
Slide 31: Agenda: Exploration
AGENDA EXPLORATION 1. FDN Geology 2. FDN Deposit 3. Exploration Strategy 4. Conversion & Exploration Programs Andre Oliveira VP, Exploration Slide 31 Lundin Gold Investor Day 2024 TSX: LUG / OMX: LUG / OTCQX: LUGDF
Slide 32: Fruta del Norte Geology
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING FRUTA DEL NORTE GEOLOGY Slide 32 Lundin Gold Investor Day 2024
Slide 33: Fruta del Norte Endowment Belt
FRUTA DEL NORTE ENDOWMENT BELT › 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 ‒ Two major operating mines: FDN and Mirador ‒ Projects under development: Warintza a
Slide 34: Lundin Gold Concessions
LUNDIN GOLD CONCESSIONS Mirador (Cu-Au) › Lundin Gold has a land package of 30 concessions covering 64,300 ha along a 90 km North-South trend in this highly prospective geological setting › Strategically covering a potential corridor that hosts major deposits Condor (Au) › Historically, drilling has
Slide 35: Fruta del Norte District
FRUTA DEL NORTE DISTRICT GEOLOGIC SETTING FOR MAJOR GOLD DEPOSITS Chinapintza (Condor) › Typical magmatic arc ‒ Like others worldwide that host major epithermal & porphyry deposits (i.e Central Andes) FDN › Different episodes of Mirador mineralization ‒ Epithermal, Porphyry, Skarn ‒ Variable host ro
Slide 36: Fruta del Norte District
FRUTA DEL NORTE DISTRICT GEOLOGIC SETTING FOR MAJOR GOLD DEPOSITS › Great geological environment, providing distinct types deposits ‒ Blind targets like FDN (under Suarez Basin cover) or exposed targets like Bonza Sur W BONZA SUR E FDN East Fault Bonza Sur Geo Domains Vn- Silica- Illite – Pyrite Sil
Slide 37: Fruta del Norte Deposit
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING FRUTA DEL NORTE DEPOSIT Slide 37 Lundin Gold Investor Day 2024
Slide 38: Fruta del Norte - A Unique Deposit
FRUTA DEL NORTE – A UNIQUE DEPOSIT ONE OF THE PREMIER GOLD DISCOVERIES IN 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) Uniquely preserved in its entirety because of progressive syn hydrothermal burial Breccias and v
Slide 39: Fruta del Norte Mineral Resource
FRUTA DEL NORTE MINERAL RESOURCE 2.1 Moz 1.7 Moz 1.5 Moz 3.2 Moz 4.1 Moz 7.3 Moz High quality deposit with a sustainable mineral resource inventory of more than 8Moz Au since 3.6 Moz 2.9 Moz the start of the operation 2016 2022 2023 Measured Resources Indicated Resources Inferred Resources 1. Please
Slide 40: Exploration Strategy
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING EXPLORATION STRATEGY Slide 40 Lundin Gold Investor Day 2024
Slide 41: Exploration Strategy: Core Expertise & Investment Priority
EXPLORATION STRATEGY CORE EXPERTISE & INVESTMENT PRIORITY The true size of a given resource is not fully recognized until after mining has commenced › Renewed exploration program focusing on large under explored areas around operating mine ‒ Highest values ounces are next to our processing plant › C
Slide 42: Exploration Strategy: Land-Province Gold Endowment
EXPLORATION STRATEGY Holling cover . LAND-PROVINCE GOLD ENDOWMENT FDN Deposit >10Moz Au › FDN is a “Tier 1” deposit / truly “World Class” Bonza Sur Discovery ₋ Situated on highly prospectivity land for large epithermal systems (>485,000 km2), 15Km long district ₋ > 10Moz mineral resource in 1.5km st
Slide 43: Exploration Strategy: Investment - Continuous Growth
EXPLORATION STRATEGY INVESTMENT - CONTINUOUS GROWTH EXPLORATION BUDGET (US$M) REGIONAL NEAR MINE › Exploration activities have expanded rapidly in recent years ‒ Driven by the near-mine program ‒ Near mine budget increase by $2M based on recent results 31.80 › Approximately $43.5M for the exploratio
Slide 44: Exploration Strategy: Drilling - Largest Program
EXPLORATION STRATEGY DRILLING – LARGEST PROGRAM IN CONTINUOUS EXPANSION 90,000 Conversion Exploration Regional Near-Mine 80,000 CONVERSION DRILLING 70,000 14,000 metres 60,000 Drilled Metres 50,000 NEAR-MINE EXPLORATION 40,000 FDN 56,000 metres Discovery 30,000 REGIONAL EXPLORATION 20,000 10,000 met
Slide 45: Exploration Strategy: Highly Qualified Team
EXPLORATION STRATEGY HIGHLY QUALIFIED TEAM › Team of geoscientists underpinned by a successful operating model ₋ 20 years of cumulative expertise in the FDN geological setting ₋ Revigorated the team with 18 new geologists (ten women geologists from localities around FDN) ₋ New leadership centered on
Slide 46: Exploration Strategy: Empowering Geologists with Technology
EXPLORATION STRATEGY EMPOWERING OUR GEOLOGISTS WITH TECHNOLOGY › Transforming how we work with our technology partners ‒ Future metal discovery, mainly undercover, requires us to empower our people to creatively use data in smarter and faster ways › Apply step-change technology to deliver real-time
Slide 47: Exploration Strategy: A Simple Approach
EXPLORATION STRATEGY A SIMPLE APPROACH 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 within FDN system REGIONAL PROGRAM › De
Slide 48: Exploration Strategy: Delivering Consistent Results
EXPLORATION STRATEGY DELIVERING CONSISTENT RESULTS › Short exploration history with important achievements and milestones › Early days of a long-term program to unlock the real potential of FDN District Achievements and milestones in last 3 years 2024 + ✓ Near-mine exploration started with first dri
Slide 49: Conversion & Exploration Programs
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING CONVERSION & EXPLORATION PROGRAMS Slide 49 Lundin Gold Investor Day 2024
Slide 50: Conversion Program
CONVERSION PROGRAM OPPORTUNITY TO REPLACE MINED OUNCES Conversion program plays a significant role for extension of the life of FDN More than 30,000 meters of drilling have been completed in the last three years Significant expansion of indicated resources Converted Resources along FDN southern and
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Slide 52: Conversion Program
CONVERSION PROGRAM ADDITIONAL AREAS FOR CONVERSION IN 2024 2024 CONVERSION DRILLING HIGHLIGHTS: LONGITUDINAL SECTION (LOOKING EAST) N S A A’ 2024 Conversion UG Stopes areas Underground development Indicated Resources FDN-C24-114 Drill holes FDN-C24-107 Inferred Resources 42.50m @ 7.51 g/t Au (28.20m
Slide 53: Near-Mine Program
FDN FDN PLANT NEAR-MINE PROGRAM North FDN SYSTEM FDN FDN Depth East › Focus on the expansion of the FDN system footprint in extension several directions ‒ Consistent track record of new sectors discovered close to FDNS FDN FDN Depth 4,000 meters › High grade mineralized sectors at FDN open at depth
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Slide 55: Near-Mine Program: FDN Depth
NEAR-MINE PROGRAM FDN DEPTH FRUTA DEL NORTE: LONGITUDINAL SECTION – 1,500 METRES (LOOKING WEST) S N FDN MINE PORTAL Interpolation Inside Geological FDN Domain FDN GEOLOGICAL FDN INFERRED RESOURCES (Au ppm) BRECCIA-VEIN DOMAIN 2 FDN-C23-020 1 3 23.05m @ 7.07 g/t Au (145.75m) 4 5 Incl. 7.00m @ 13.91 g
Slide 56: Near-Mine Program: FDN South (FDNS)
NEAR-MINE PROGRAM FDN SOUTH (FDNS) › Advances in the geological understanding indicates a high-grade vein system at FDNS ‒ Volcanic lower grade envelope defined by wide drilling spacing Recently developed underground levels ‒ Recent development of 1080 and 1170 levels enabled access to this sector F
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Slide 58: Near-Mine Program: FDN South (FDNS)
NEAR-MINE PROGRAM FDN SOUTH (FDNS) FDNS CROSS–SECTION - 400 METERS SE FDN-FDNS NW A ’ N UGE-S-24-129 SOUTHERN LIMIT OF FDN 8.60m @ 8.33 g/t Au (50.40m) INDICATED RESOURCES 8.05m @ 17.14 g/t Au (130.60m) FDN EAST UGE-S-24-125 (2024) 4.00m @ 5.84 g/t Au (73.10m) 5.50m @ 5.14 g/t Au (97.10m) FDNS UGE-S
Slide 59: Near-Mine Program: Bonza Sur Drilling Program
BONZA SUR DRILLING PROGRAM FDNS-2023-019 83.75m @ 2.91 g/t Au (387.45m) FDNS-2022-009 141.0m @ 2.05 g/t Au (158m) Incl. 30.3m @ 5.09 g/t Au (267.7m) Incl. 41.80m @ 5.16 g/t Au (397.3m) with 18.0m @ 8.56 g/t Au (421.10m) NEAR-MINE PROGRAM with 9.00m @ 14.44 g/t Au (288m) BLP-2024-107 113.30m @ 2.01 g
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Slide 61: Near-Mine Program: Bonza Sur Discovery
NEAR-MINE PROGRAM BONZA SUR DISCOVERY Outer halo Inner halo W BONZA SUR CROSS-SECTION E BLP-2024-107 113.30m @ 2.01 g/t Au (6.5m) Incl. 54.80m @ 3.10 g/t Au (6.5m) with 9.00m @ 8.59 g/t Au (6.5m) BLP-2024-101 123.10m @ 4.34 g/t Au (9.00m) Incl. BLP-2024-116 79.50m @ 6.43 g/t Au (9.00m) 93.30m @ 1.21
Slide 62: Bonza Sur - Transitioning to a Mineral Deposit
BONZA SUR - TRANSITIONING TO A MINERAL DEPOSIT 1,800M LONG AND CONTINUOUS MINERAL ENVELOPE ALONG NORTH-SOUTH STRIKE. HIGHER GRADE CENTRAL CORE OF 900M OPEN FOR EXPANSION. ANOTHER HIGHER ZONE IN THE NORTH OPEN AT DEPTH BONZA SUR LONGITUDINAL SECTION – 1,800 METERS N BLP-2024-123 BLP-2023-069 BLP-2024
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Slide 64: Near-Mine Program: FDN East
NEAR-MINE PROGRAM FDN EAST UGE-E-24-088 Q1 2024 4.80m @ 2.64 g/t Au (367.20m) › FDN East, new high-grade system discovered east of FDN ₋ Early stage - two vein zones intercepted hosted in similar volcanic UGE-E-24-094 Q1 2024 5.00m @ 76. 95 g/t Au (156.10m) and intrusive rocks to those found at FDN
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Slide 66: Near-Mine Program
NEAR-MINE FDN Targets and East FDN Geochemical Anomalies NEAR-MINE PROGRAM EXPLORING FOR NEW OPPORTUNITIES FDNS Bonza Sur › District scale to be developed in the short-medium term ‒ Minor part of the FDN-Bonza Sur prospective anomalous corridor was explored ‒ More than 30 geochemical gold anomalies
Slide 67: FDN Regional Program
FDN REGIONAL PROGRAM ADVANCING FOR NEW DISCOVERIES › Exploring for new buried epithermal systems ‒ Similar geological conditions/setting to that found around FDN NEAR MINE PROGRAM › Potential areas for a new discovery under evaluation ‒ Initial program tested large geochemical anomalies at Robles ‒
Slide 68: Exploration Program
EXPLORATION PROGRAM areas for drilling Line 06 INNOVATION & TECHNOLOGY Line 07 Geophysical Survey (IP & Deep AMT) recently initiated over and near FDN FDN Line 08 › Includes most important targets and untested soil anomalies › Structures undercover (South extension of FDN) Line 09 › New structures/t
Slide 69: Exploration Program: Innovation & Technology
EXPLORATION PROGRAM INNOVATION & TECHNOLOGY › Geologic AI unit is operating. Advance exploration targeting at FDN ₋ Enable the construction of a large database (Hyperspectral, Laser Profiling (LiDAR), RGB Imaging (structural and lithologic logging), XRF (multielement analysis on time) ₋ Provide data
Slide 70: Exploration Pipeline
EXPLORATION STRATEGIC PLAN EXPLORATION PIPELINE Proven & Probable Reserves Prospect Advancement Development Measured & Preliminary Economic Assessment, Scoping Indicated Resource › Maximize FDN, while exploring Pre-Feasibility Study & Feasibility Study FDN North Conversion and Infill Drilling, Geo.
Slide 71: Generative Exploration
GENERATIVE EXPLORATION LONG-TERM POTENTIAL Quito › Lundin Gold holds a large package of concessions at Cordillera del Condor CORDILLERA DEL CONDOR ‒ Same underlying geological sequence as FDN and Mirador mine Panantza and Warintza deposit Warintza Mirador › LUG regional concessions are 5 times large
Slide 72: Generative Exploration
GENERATIVE EXPLORATION LONG-TERM POTENTIAL Soil Sampling Gata Salvage- Explore for new Las Nubes belt systems › Great environment for new Systematic sampling Gata Selvage epithermal-porphyry systems Au-As-Sb covering all areas ‒ Access for large Au mineral resources Crisbel Au-Cu (+Cu) ‒ Anomalous i
Slide 73: 4. Business Sustainability
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING 4. BUSINESS SUSTAINABILITY Juan José Herrera Slide 73 Lundin Gold Investor Day 2024
Slide 74: Agenda: Business Sustainability
AGENDA BUSINESS SUSTAINABILITY 1. Political, Economic and Mining Landscape 2. Sustainability Strategy 3. FDN Economic and Social Impact Juan José Herrera Senior Manager, Business Sustainability Slide 74 Lundin Gold Investor Day 2024 TSX: LUG / OMX: LUG / OTCQX: LUGDF
Slide 75: Political, Economic and Mining Landscape
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING POLITICAL, ECONOMIC AND MINING LANDSCAPE National and Local Slide 75 Lundin Gold Investor Day 2024
Slide 76: National Political Landscape
NATIONAL POLITICAL LANDSCAPE 1 2 3 President Daniel His “war” on With a temporary Noboa took office criminal organizations majority in the NA, in November 2023. earned him political the government passed a Noboa inherited support. Approval significant tax reform an unprecedented ratings above 75% (V
Slide 77: National Economic Landscape
NATIONAL ECONOMIC LANDSCAPE 1 2 3 Key areas of public Weak macro figures Constrained state concern: Security, (GDP, fiscal deficit, investment in health, unemployment, revenues and external energy, education, government arrears, debt) due to multi-year public roads and rural power outages and econom
Slide 78: National Mining Landscape
NATIONAL MINING LANDSCAPE 1 New government has publicly backed large-scale responsible mining notably 2 LUG and CME hold 3 Active role with the National Assembly to understand potential by streamlining licensing regular meetings with reforms that can affect processes—a significant the President, his
Slide 79: 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. 22 communities in Los Encuentros Indirect Area of Río Blanco Influence (Ring 1) El Playón Slide 79 Lundin Gold Investor Day 2024 TSX: LUG / OMX: LUG / OTCQX: LUGDF
Slide 80: Political and Social Local Landscape
POLITICAL AND SOCIAL LOCAL LANDSCAPE 1 2 Ongoing engagement with local Ongoing interaction and strong authorities and communities to define relationship with the Shuar Federation priorities and collaboration opportunities. of Zamora Chinchipe. 3 Key local issues: Illegal mining in Zamora Chinchipe,
Slide 81: Lundin Gold - FDN Political Engagement
LUNDIN GOLD - FDN POLITICAL ENGAGEMENT Key Activities Develop and implement a Local and national communications stakeholder engagement strategic strategy to highlight FDN benefits plan at national and local level and LUG´s growth. Deliver tailored messages to key stakeholders regarding Develop capac
Slide 82: Level of Acceptance Perception Survey 2023
LEVEL OF ACCEPTANCE PERCEPTION SURVEY 2023 Evolution of the Perception of Mining in Ecuador and Yantzaza Psychological Identification 0.72 0.64 24vs23 0.56 Confidence 0.34 0.30 0.32 0.39 threshold Yantzaza (0.72*) Chile (0.68) Approval Guatemala (0.55) Ecuador Yantzaza Peru (0.53) 2021 2022 2023 202
Slide 83: Sustainability Strategy 2021-2025
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING SUSTAINABILITY STRATEGY 2021-2025 Slide 83 Lundin Gold Investor Day 2024
Slide 84: Sustainability Strategy 2021-2025: Strategic Pillars
SUSTAINABILITY STRATEGY 2021-2025 TEGIC PILLARS STRA Community Health Wellbeing and Safety It provides a framework for Community Human integrating sustainability Infrastructure SOCIAL Rights principles into core operations by engaging Lasting T Climate IRONMEN Economic stakeholders, setting goals, C
Slide 85: Community Investment
COMMUNITY INVESTMENT Lundin Gold invested a total of $38 M (2015 – 2023) $26 M for social, community, and road maintenance investments $12 M through the Lundin Foundation Education, training Entrepreneurship and connectivity and gender-based programs. programs. Construction and maintenance of local
Slide 86: Community Investment Milestones - Roadmap 2015-2019
COMMUNITY INVESTMENT MILESTONES - ROADMAP FDN CONSTRUCTION 2015 – 2019 2015 2016 2017 2018 2019 NEXO Program I: CLP, MINEDUC: Accelerated JAE: Support education high school program. EDLA, heavy transport, and motivate students. Tourist, cultural and hardware stores, etc. recreational complex El Mash
Slide 87: Our Community Investment Roadmap
OUR COMMUNITY INVESTMENT ROADMAP FDN OPERATIONS 2020 2021 2022 2023 2024 Present Day LE and LUG Bridge. Los Encuentros Parish: ICU Yantzaza Los Encuentros School (maintenance, • Water Treatment Plant. Hospital. rehabilitation, and bus stop). EPC: Recreational, • Asphalting rural roads. Educational a
Slide 88: Key Community Investment Initiatives: Community Well-Being
KEY COMMUNITY INVESTMENT INITIATIVES COMMUNITY WELL-BEING RECREATIONAL, EDUCATIONAL AND MENTAL HEALTH PROGRAM JUNIOR ACHIEVEMENT ECUADOR (JAE) High School Graduation and Higher Education Acceptance Rates Total Students from Graduation Rate Academic Rings 1 and 2 from Los Encuentros Year Accepted to
Slide 89: Key Community Investment Initiatives: Community Well-Being
KEY COMMUNITY INVESTMENT INITIATIVES COMMUNITY WELL-BEING A resident of Los Encuentros, took part in the JAE Program (2016 edition). With the support of Junior Achievement Ecuador (JAE), Evelin was accepted to study in her chosen field of Clinical Psychology at the National University of Loja, Ecuad
Slide 90: Key Community Investment Initiatives: Agriculture and Livestock
KEY COMMUNITY INVESTMENT INITIATIVES AGRICULTURE AND LIVESTOCK Contributing to the creation of lasting economic opportunities for local communities Veterinarian: Professional assistance to farmers in Los Encuentros. Services provided (June 2023 – June 2024): 34 emergency veterinary services; 2 works
Slide 91: Key Community Investment Initiatives: Indigenous People
KEY COMMUNITY INVESTMENT INITIATIVES INDIGENOUS PEOPLE Cocoa Organic Farming Phase III Sugar Cane Farming and Panela Processing in Shuar Territory Supporting Shuar communities with organic cocoa production, technical assistance, Supporting with sugar cane production, technical agricultural supplies,
Slide 92: Key Community Investment Initiatives: Lasting Economic Opportunities
KEY COMMUNITY INVESTMENT INITIATIVES LASTING ECONOMIC OPPORTUNITIES "SOY EMPRENDEDORA" PROGRAM "Soy Emprendedora" began in 2021 with the objective of positioning the important role of women within the business field. 24 small businesses supported, all of them led by women To date, 3 rounds of the pr
Slide 93: Key Community Investment Initiatives: Lasting Economic Opportunities
KEY COMMUNITY INVESTMENT INITIATIVES LASTING ECONOMIC OPPORTUNITIES focuses on supporting the effective integration of local suppliers into the mining industry's supply chain identifying supply- demand opportunities NEXO COMPONENTS Effectively identifying Targeted technical Strengthening of supply-d
Slide 94: Key Community Investment Initiatives: Lasting Economic Opportunities
KEY COMMUNITY INVESTMENT INITIATIVES LASTING ECONOMIC OPPORTUNITIES Construction Phase (NEXO I) Operation Phase (NEXO II) NEXO III (2024 – 2025) Sales since NEXO II support (July 2024) OSBRA since 2021 $600k SMERA since 2022 $479k ASERFRUN since 2022 $562k All have an ongoing contract with LUG Slide
Slide 95: Enablers of Success: Participatory Dialogue
ENABLERS OF SUCCESS PARTICIPATORY DIALOGUE Characteristics of the Process Led and facilitated by a neutral Proactive, not reactive. entity (local government). Multistakeholder. Commitments are made and monitored. Ongoing with sessions LUG is another participant of the every six weeks since 2016. pro
Slide 96: Enablers of Success: Strategic Partnerships
ENABLERS OF SUCCESS STRATEGIC PARTNERSHIPS • Ministry of Education • Ministry of Agriculture and Livestock • Ministry of Energy and Mines • Ministry of Telecommunications • Ministry of the Environment, Water and Ecological Transition • Agency for Regulation and Control of Energy and Non-Renewable Na
Slide 97: Enablers of Success: Sustainability, Financial and Management Reports
ENABLERS OF SUCCESS SUSTAINABILITY, FINANCIAL AND MANAGEMENT REPORTS Reporting frameworks, standards, Social Media and recommendations Slide 97 Lundin Gold Investor Day 2024 TSX: LUG / OMX: LUG / OTCQX: LUGDF
Slide 98: FDN Economic and Social Impact
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING FDN ECONOMIC AND SOCIAL IMPACT Slide 98 Lundin Gold Investor Day 2024
Slide 99: Changing the Landscape of Responsible Mining
CHANGING THE LANDSCAPE OF RESPONSIBLE MINING 481,274 gold ounces produced More production in the Ecuadorian economy Increased national ~$110M total More mining $903M in contribution and local tax exports exports revenues FDN Economic Virtuous Cycle 2023 $201M total Greater multiplier More employment
Slide 100: Formal Employment Evolution Ecuador and Amazon Provinces
FORMAL EMPLOYMENT EVOLUTION ECUADOR AND AMAZON PROVINCES 50% Formal Employment Rate (in %) 40% 2019 2023 38% 36% 30% 27% 28% 20% 10% 0% ECUADOR Zamora Morona Napo Pastaza Sucumbios Orellana Chinchipe Santiago Source: Annual Employment, Underemployment and Unemployment Survey ENEMDU 2019-2023 2023 28
Slide 101: Poverty (Income) Evolution Ecuador and Amazon Provinces
POVERTY (INCOME) EVOLUTION ECUADOR AND AMAZON PROVINCES Income Poverty Rate (in %) 90% 80% 2019 2023 70% 60% 50% 40% 43% 30% 36% 20% 22% 24% 10% 14 71612 16 0% ECUADOR Zamora Morona Napo Pastaza Sucumbios Orellana Chinchipe Santiago Source: Annual Employment, Underemployment and Unemployment Survey
Slide 102: Poverty (Unsatisfied Basic Needs) Evolution
POVERTY (UNSATISFIED BASIC NEEDS) EVOLUTION ECUADOR AND AMAZON PROVINCES UBN Poverty Rate (in %) 90% 80% 2019 2023 70% 60% 50% 40% 30% 34% 31% 32% 28% 20% 10% 0% ECUADOR Zamora Morona Napo Pastaza Sucumbíos Orellana Chinchipe Santiago Source: Annual Employment, Underemployment and Unemployment Surve
Slide 103: Sales Evolution Ecuador
SALES EVOLUTION ECUADOR January – June 2023 vs 2024 Zamora Chinchipe increased its sales by 36%. The formal mining industry in Zamora Chinchipe had a significant impact on the local economy, with notable growth in sectors such as agriculture, construction, and lodging. Zamora Chinchipe has the highe
Slide 104: Socioeconomic Impacts - Los Encuentros
SOCIOECONOMIC IMPACTS – LOS ENCUENTROS SOCIOECONOMIC IMPACTS LOS ENCUENTROS Economically Active 39% in 2015 vs 57% in 2021. Population - EAP As of 2021, 91% of the EAP are employed and mostly linked to agricultural activities, followed by Employment activities in the mining and trade sectors. Educat
Slide 105: 5. Conclusions
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING 5. CONCLUSIONS Ron Hochstein Slide 105 Lundin Gold Investor Day 2024
Slide 106: Disciplined Approach to Capital Allocation
DISCIPLINED APPROACH TO CAPITAL ALLOCATION WHAT DO WE INTEND TO DO WITH THE CASH FLOW WE ARE GENERATING? 1 2 3 4 Pay Create Develop Pursue sustainable organic organic inorganic dividend opportunities opportunities opportunities Slide 106 Lundin Gold Investor Day 2024 TSX: LUG / OMX: LUG / OTCQX: LUG
Slide 107: Lundin Gold Is a Growth Story
LUNDIN GOLD IS A GROWTH STORY INVESTOR DAY 2024 Operational Excellence Cash Flow Growth ESG Slide 107 Lundin Gold Investor Day 2024 TSX: LUG / OMX: LUG / OTCQX: LUGDF
Slide 108: Q&A
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING Q&A www.lundingold.com TSX, Nasdaq Stockholm: LUG OTCQX: LUGDF