Lundin Gold Inc. · TSX:LUG
Lundin Gold — Q1 2024 Earnings Presentation
24 slides from Lundin Gold's earnings presentation, May 9, 2024
Slide 1: First Quarter 2024 Results Conference Call
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING May 9, 2024 FIRST QUARTER 2024 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 Q1 Conference Call | May 9, 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 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 4: Q1 2024 Highlights
Q1 2024 HIGHLIGHTS - Gold production of 111,572 oz, with 108,916 oz sold Production - Average grade of ore milled was 9.5 g/t with average recovery at 88.3% - Mill processed 413,596 tonnes at a throughput rate of 4,545 tpd Cash Operating Costs1 - Cash operating costs1 of $735 per oz of gold sold and
Slide 5: 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 $72 million April
Slide 6: …Providing Shareholders with Increased Exposure to Cash Flow
…PROVIDING SHAREHOLDERS WITH INCREASED EXPOSURE TO CASH FLOW Cash Flow From Operations and Scheduled Payments Under Project Financing Package from 2021 to 2023 (US$M) $1,600 $1,400 45% Average % of cash from operations required for annual $1,200 scheduled payments under the Project Financing Package
Slide 7: Terry Smith, COO
TERRY SMITH COO Slide 7 Lundin Gold Q1 Conference Call | May 9, 2024 TSX: LUG / OMX: LUG / OTCQX: LUGDF
Slide 8: 2024 Off to a Solid Start with Production in Line with Expectations
2024 OFF TO A SOLID START WITH PRODUCTION IN LINE WITH EXPECTATIONS Q1 2024 111,572 oz Gold produced 73,964 oz 37,608 oz Gold as concentrate Gold as doré 413,596 9.5 g/t Tonnes milled Average Head Grade 88.3% 4,545 tpd Average recovery Average Mill Throughput 450,000 – 500,000 oz 2024 Gold Productio
Slide 9: 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 10: 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 Q1 2024 AISC3 1800 Cash operating costs $735 1600 1400 Corporate social responsibility $6 All-In Sustaining Cost (US$/oz) 1200 Treatment and refining charges $86 1000 Accretion of restoration prevision $2 800 Sustaining capital $65 600 Silv
Slide 11: … That Provides Better Exposure to a Rising Gold Price
… THAT PROVIDES BETTER EXPOSURE TO A RISING GOLD PRICE OCF Margin - Peer Average OCF Margin - Lundin Gold Average Gold Price (US$/oz Au) $2,300 Key Gold Exposure Drivers: $2,100 $1,943 $1,800 $1,900 $1,773 $1,798 Meaningful Modest capex to $1,700 operating cash sustain and grow 57% 58% $1,500 flow o
Slide 12: Q1 Operating Results Puts Company on Track to Meet Guidance
Q1 OPERATING RESULTS PUTS COMPANY ON TRACK TO MEET GUIDANCE 2024 2025 2026 450,000 - 500,000 475,000 - 525,000 475,000 - 525,000 Gold Production (oz) Gold Production (oz) Gold Production (oz) 35 - 45 65 - 80 40 - 55 Sustaining Capital ($ million) Sustaining Capital ($ million) Sustaining Capital ($
Slide 13: 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 4.82 Moz -1.86 Moz 2016 Technical Mining Depletion Additions 2023 Mineral Report Reserves 1. Please see the Company’s Annual Information Form dated March 26, 2024 filed on SEDAR+ under the Company’s profile at www.sedar
Slide 14: 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 Annual Information Form dated March 26, 2024 filed on SEDAR+ under the Company’s profile at www.
Slide 15: Ron F. Hochstein, President and CEO
RON F. HOCHSTEIN PRESIDENT AND CEO Slide 15 Lundin Gold Q1 Conference Call | May 9, 2024 TSX: LUG / OMX: LUG / OTCQX: LUGDF
Slide 16: Near-Mine Exploration Surface Drilling
East Fault FDN MINE NEAR-MINE EXPLORATION FDN North SURFACE DRILLING FDN FDN East Drilling continues along the extensions of the East Fault 4,000 meters Bonza Sur: mineralization identified for >1.3km along strike and 500m downdip - open in all FDN South directions FDN South: vein system open from n
Slide 17: Near-Mine Exploration Underground Drilling
NEAR-MINE EXPLORATION UNDERGROUND DRILLING Drilling explores continuity of FDN at depth Depth: drilling has confirmed hydrothermal alteration zones and gold mineralization below FDN Four drill holes completed YTD indicating gold mineralization like that found at shallower levels of FDN Slide 17 Lund
Slide 18: 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 19: Christopher Kololian, CFO
CHRISTOPHER KOLOLIAN CFO Slide 19 Lundin Gold Q1 Conference Call | May 9, 2024 TSX: LUG / OMX: LUG / OTCQX: LUGDF
Slide 20: First Quarter 2024 Financial Highlights
FIRST QUARTER 2024 FINANCIAL HIGHLIGHTS Three Months ended March 31 (Tables are expressed in $’000, except share and per share amounts, or unless 2024 2023 otherwise stated) Net revenues 226,741 256,728 Income from mining operations 113,237 132,708 Net income 41,897 51,465 Basic income per share ($)
Slide 21: Free Cash Flow
FREE CASH FLOW1 Three Months ended March 31 (Tables are expressed in $’000, except share and per share amounts, or unless 2024 2023 otherwise stated) Net cash provided by operating activities 107,914 144,439 Net cash used for investing activities (13,636) (7,172) Interest paid (1,876) (6,368) Financ
Slide 22: Cash is King at FDN
CASH IS KING AT FDN Lundin Gold generated $108 million in cash from operations in Q1 and ended the quarter with a cash balance of $324 million, which supports near-mine and regional exploration, conversion drilling, capital expenditures, and dividends $4 $(15) $108 $(24) $(14) $(4) $324 $268 Cash as
Slide 23: Lundin Gold is Now a Growth Story
LUNDIN GOLD IS NOW A GROWTH STORY Operational Excellence Cash Flow Growth ESG Slide 23 Lundin Gold Q1 Conference Call | May 9, 2024 TSX: LUG / OMX: LUG / OTCQX: LUGDF
Slide 24: Building a Leading Gold Company Through Responsible Mining
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING Contact information: Finlay Heppenstall - Director, IR & Corp Dev finlay.heppenstall@lundingold.com +1 604-806-3089 Lundin Gold Ecuador LundinGold LundinGold @LundinGold / LundinGoldEC www.lundingold.com TSX, Nasdaq Stockholm: LUG / OTCQX: L