Lundin Gold Inc. · TSX:LUG
Lundin Gold — Investor Presentation (January 2025)
42 slides from Lundin Gold's investor presentation, January 2025
Slide 1: Building a Leading Gold Company Through Responsible Mining
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING January 2025 A CASH FLOW AND GROWTH STORY 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 to be accurate, as Lundin Gold's actual results and future events does not recognize them. “Inferred mineral resources" and information contained in this presentation and r
Slide 3: Fruta del Norte: The First Large-Scale Gold Mine in Ecuador
FRUTA DEL NORTE THE FIRST LARGE-SCALE GOLD MINE IN ECUADOR Location: Exceeded 2024 production Zamora Chinchipe Province, guidance and achieved record Southeast Ecuador annual production Q4 FY2024 135,241 oz 502,029 oz Ownership: Stage: Mine Type: Gold produced Gold produced 100% Producing Undergroun
Slide 4: One of the Lowest Cost Gold Mines in the World
ONE OF THE LOWEST COST GOLD MINES IN THE WORLD AISC1 Q3 2024 YTD 2000 Cash operating costs $681 $713 1800 Corporate social 1600 $4 $5 responsibility 1400 Treatment and refining All-In Sustaining Cost (US$/oz) $81 $82 charges 1200 Accretion of $2 $2 1000 restoration prevision 800 Sustaining capital $
Slide 5: Generating Significant Free Cash Flow
GENERATING SIGNIFICANT FREE CASH FLOW Historical Free Cash Flow1 Generation (US$M) Record quarterly free cash flow $194M $194M $156M $182M $147M $156M $143M $147M $143M $122M $120M $122M $113M $120M $113M $39M $39M H1'20 H2'20 H1'21 H2'21 H1'22 H2'22 H1'23 H2'23 H1'24 Q3'24 H1'20 H2'20 H1'21 H2'21 H
Slide 6: Four Key Pillars of Value Creation
FOUR KEY PILLARS OF VALUE CREATION Operational Excellence Cash Flow Growth ESG Slide 6 TSX: LUG / OMX: LUG / OTCQX: LUGDF
Slide 7: Delivering Future Value at Lundin Gold
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING DELIVERING FUTURE VALUE AT LUNDIN GOLD Slide 7
Slide 8: Exceeded Production Guidance and On Track to Meet Cost Guidance in 2024
EXCEEDED PRODUCTION GUIDANCE AND ON TRACK TO MEET COST GUIDANCE IN 2024 2024 GOLD PRODUCTION › Exceeded 2024 production guidance achieving 450,000 - 500,000 record annual production of 502,029 oz. Gold Production (oz) › Marks five consecutive years of meeting or exceeding production guidance since o
Slide 9: Expansion Project to Increase Throughput and Improve Recoveries
EXPANSION PROJECT TO INCREASE THROUGHPUT AND IMPROVE RECOVERIES Average Annual Plant Throughput (tpd) and Recovery (%) 6,000 95% 5,500 FOCUS OF EXPANSION 5,000 93% to 5,000 tpd: 5,000 4,533 4,620 4,272 91% 4,000 3,878 Tailings & Water Reclaim 3,499 90.0% 89.5% 89% 88.6% 88.4% 3,000 87.8% 87% Ultrafi
Slide 10: 2025 Guidance Benefiting from Plant Expansion Project
2025 GUIDANCE BENEFITING FROM PLANT EXPANSION PROJECT, INCREASED THROUGHPUT AND GOLD RECOVERIES 2025 475,000 - 525,000 Gold Production (oz) 5,000 75 - 85 Milled Throughput (tpd) Sustaining Capital ($ million) 9.2 730 - 790 Head Grade (g/t Au) Cash Cost ($/oz sold)1 90% 935 - 995 Average Mill Recover
Slide 11: 3 Year Guidance: Anticipated Increase to Throughput in 2026
3 YEAR GUIDANCE ANTICIPATED INCREASE TO THROUGHPUT IN 2026 2025 2026 2027 475,000 - 525,000 475,000 - 525,000 475,000 - 525,000 Gold Production (oz) Gold Production (oz) Gold Production (oz) 5,000 5,500 5,500 Milled Throughput (tpd) Milled Throughput (tpd) Milled Throughput (tpd) 75 - 85 75 - 90 70
Slide 12: Dividend Doubled
DIVIDEND DOUBLED Increased Dividend (paid quarterly) SIGNIFICANT CASH LEFT AFTER $0.80/sh = ~US$200M annually INCREASED DIVIDEND PAYMENT TO: Gold Mining Industry Average Dividend Yields %1 3.3% 3.7% Carry out Fund future expanded capital projects exploration and expansion programs opportunities 2.0%
Slide 13: Exploration Is the Future
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING EXPLORATION IS THE FUTURE Slide 13
Slide 14: A Simple Approach to Exploration
A SIMPLE APPROACH TO FDN NEAR MINE EXPLORATION FDN FDNS REGIONAL BONZA SUR Known deposits CONVERSION DRILLING › Replace depleted ounces and grow reserve base through conversion of inferred resources NEAR-MINE PROGRAM 40km › Grow inferred resources through extension of known deposit and identificatio
Slide 15: 2024 Was the Largest Drill Program Ever Conducted on Land Package That Hosts FDN
2024 WAS THE LARGEST DRILL PROGRAM EVER CONDUCTED ON LAND PACKAGE THAT HOSTS FDN AND 2025 TO BE SIMILAR IN SIZE 2025 Program 90,000 Near-Mine Regional Exploration Conversion CONVERSION DRILLING 80,000 15,000 metres 70,000 Included in sustaining capital 60,000 Drilled Metres 50,000 NEAR-MINE EXPLORAT
Slide 16: Conversion Program Can Enable Continued Conversion of Mineral Resources to Reserves
CONVERSION PROGRAM CAN ENABLE CONTINUED CONVERSION OF MINERAL RESOURCES TO RESERVES N S 2024 Conversion FDN UG FDN-C24-140 UG Stopes areas DEVELOPMENT A 80.90m @ 8.28 g/t Au (143.50m) Indicated Resources 2024 Drilling Incl. 9.25m @ 31.29 g/t Au (167.80m) FDN-C24-107-Q2 2024 A’ Inferred Resources Con
Slide 17: FDN Near Mine Overview
¯ FDN PLANT FDN North FDN NEAR MINE OVERVIEW NEAR-MINE EXPLORATION SURFACE & UNDERGROUND FDN East FDN SURFACE UNDERGROUND FDNS Focused along extensions of the East 4,000 meters Fault Focused on the southern limit of the FDN deposit and tested the Bonza Sur: drilling continues to occurrence of a new
Slide 18: Near-Mine Exploration: FDN at Depth
NEAR-MINE EXPLORATION FDN AT DEPTH DRILLING HAS CONFIRMED HYDROTHERMAL ALTERATION ZONES AND GOLD MINERALIZATION BELOW FDN Slide 18 TSX: LUG / OMX: LUG / OTCQX: LUGDF
Slide 19: FDN South (FDNS)
FDN North FDN East NEAR-MINE EXPLORATION 2,000 meters FDN SOUTH (FDNS) VEIN SYSTEM OPEN FROM NORTHEAST TO SOUTHWEST AND AT DEPTH FDN UG DEVELOPMENT Regional Faults zones M&I Resources Veins Domain > 3.4 gpt FDN South DATUM WGS 84 17 Sur Source: Lundin Gold, March 2024 Slide 19 TSX: LUG / OMX: LUG /
Slide 20: Near-Mine Program: FDN South (FDNS)
NEAR-MINE PROGRAM FDN SOUTH (FDNS) Drilling results confirmed a high-grade vein system, of distinct geometry and style (FDN deposit) ‒ Results to be incorporated within 2024 FDN MRE process ‒ Test the expansion potential from the recently reopened South Portal. Opportunities to explore the continuit
Slide 21: FDN East: New Discovery
FDN North FDN East NEAR-MINE EXPLORATION 2,000 meters FDN EAST NEW DISCOVERY – FOUR DRILL HOLES ALL INTERCEPTED GOLD MINERALIZATION FDN UG DEVELOPMENT Regional Faults zones FDN South M&I Resources Veins Domain > 3.4 gpt DATUM WGS 84 17 Sur Source: Lundin Gold, March 2024 Slide 21 TSX: LUG / OMX: LUG
Slide 22: 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 around FDN ‒ Early stage. Two vein zones intercepted hosted in similar volcanic and UGE-E-24-094 Q1 2024 5.00m @ 76. 95 g/t Au (156.10m) intrusive rocks to those found at FDN Incl
Slide 23: Near-Mine Exploration: Bonza Sur
NEAR-MINE EXPLORATION BONZA SUR MINERALIZATION IDENTIFIED FOR >2.6KM ALONG STRIKE, 150M WIDE, AND AT LEAST 500M AT DEPTH - OPEN IN ALL DIRECTIONS Slide 23 TSX: LUG / OMX: LUG / OTCQX: LUGDF
Slide 24: Exploration Strategic Plan: Prospect Advancement
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 25: Corporate Structure
CORPORATE STRUCTURE (DATA AS AT JANUARY 10, 2025) CAPITAL MARKETS DATA1 SHAREHOLDERS TSX: LUG / OMX: LUG Market Capitalization Symbol $7,896M / OTCQX: LUGDF (CAD) Share price (CAD/sh) $33.84 52 Week Trading Range (CAD/sh) $14.23-35.89 14% Retail Shares Outstanding 240.2 M ANALYST COVERAGE (CAD unles
Slide 26: 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 2024
Slide 27: Building a Leading Gold Company Through Responsible Mining
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING Contact information: Brendan Creaney VP Corporate Development and Investor Relations Brendan.creaney@lundingold.com +1 604-376-4595 Lundin Gold Ecuador Lundin Gold Ecuador LundinGold LundinGold LundinGold LundinGold @LundinGold / LundinGoldE
Slide 28: Appendix
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING APPENDIX Slide 28
Slide 29: Track Record of Mineral Reserve Replacement
TRACK RECORD OF MINERAL RESERVE REPLACEMENT +2.59 Moz 5.50 Moz 4.82 Moz -1.86 Moz 2016 Technical Report Mining Depletion Additions 2023 Mineral Reserves 1. Please see the Company’s Annual Information Form dated March 26, 2024 filed on SEDAR+ under the Company’s profile at www.sedarplus.ca or on the
Slide 30: Underground Mine Development
UNDERGROUND MINE DEVELOPMENT Slide 30 TSX: LUG / OMX: LUG / OTCQX: LUGDF
Slide 31: Mine Infrastructure Projects
MINE INFRASTRUCTURE PROJECTS 01 Dispatch 02 Autonomous Drilling – ABC 03 Dewatering 04 Hard Line Ducts 05 Ore Pass 06 South Exploration Portal Slide 31
Slide 32: Process Plant Flow Diagram
PROCESS PLANT FLOW DIAGRAM ROM Ore 4,200 t/d Mine F80 = 15” Crushing To process Auxiliary systems Industrial P80 = 3.5” Rich Gravimetric Water Grinding Gravimetric concentrate solution Grinding ILR SR To Electrowinning To process concentration Reagent preparation P80 = 55 µm Tailings Concentrate Con
Slide 33: Plant Expansion Project
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 3
Slide 34: Geophysical Survey Launched as Part of Exploration Program
FDN North LINE 06 LINE 07 GEOPHYSICAL SURVEY LAUNCHED FDN FDN East AS PART OF EXPLORATION PROGRAM Geophysical Survey recently initiated at Near Mine property (IP & Deep AMT) › Includes most important targets and all untested Au soil anomalies Bonza Sur › Structures undercover › Initial results indic
Slide 35: Industry Leading Responsible Miner
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING INDUSTRY LEADING RESPONSIBLE MINER Slide 35
Slide 36: ESG Considered in Every Aspect of Our Activities
ESG CONSIDERED IN EVERY ASPECT OF OUR ACTIVITIES Responsible Resource Governance Climate Change Lasting Economic Opportunities Community Infrastructure SUSTAINABILITY PILLARS Community Well-being Human Rights Health & Safety Environmental Stewardship * EITI: Extractive Industries Transparency Initia
Slide 37: Industry Leading GHG Emissions Intensity
INDUSTRY LEADING GHG EMISSIONS INTENSITY Target: To be carbon neutral by 2030 with respect to Scopes 1 and 2 emissions based on the current life of mine plan Key Areas of Focus Industry leading GHG emissions (Scopes 1 and 2) intensity of 0.08 1 2 3 4 tCO2e per ounce of gold produced in 2023 Climate
Slide 38: FDN Direct and Indirect Benefits for the Government
FDN DIRECT AND INDIRECT BENEFITS FOR THE GOVERNMENT FDN Direct and Indirect Benefits for the Central 2023 and Local Governments (USD millions) Other FDN contributions: $44M - Income Tax* • $0.2M Mining Conservation Patents (paid in Dec-2023 and Apr-2024) • $1.3M Customs taxes • $1.6M Superintendency
Slide 39: 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 40: 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 41: 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 42: Building a Leading Gold Company Through Responsible Mining
BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING Lundin Gold Ecuador Lundin Gold Ecuador LundinGold LundinGold LundinGold LundinGold @LundinGold / LundinGoldEC @LundinGold / LundinGoldEC www.lundingold.com www.lundingold.com TSX, Nasdaq Stockholm: LUG / OTCQX: LUGDF Slide 42