Lundin Gold aims for high-end of 2022 guidance
Toronto-listed Lundin Gold is firmly on track to achieve the high-end of its gold production guidance for the year, with Fruta del Norte (FDN), in Ecuador, producing 355 190 oz at an all-in sustaining cost (AISC) of $785/oz in the first nine months of the year.
Third quarter gold production was 121 645 oz at an AISC of $807/oz.
“Once again, I am pleased to report another fantastic quarter for Lundin Gold,” said president and CEO Ron Hochstein.
The company’s production guidance for 2022 is 430 000 oz to 460 000 oz and its AISC is $820/oz to $870/oz.
“We continue to strive for operational excellence at Fruta del Norte, and remain focused on further optimization, improved efficiencies and lowering costs. Now that the South Ventilation Raise is complete, we will have more flexibility to mine on all levels, allowing us to continue generating strong results,” said Hochstein.
In the third quarter, Lundin generated net revenues of $210-million, adjusted earnings of $20.4-million and free cash flow of $65.20-million, resulting in a cash balance of $304-million at quarter end.
With operations at FDN generating sizeable free cash flow and considering the existing cash balance, Lundin Gold paid an inaugural semi-annual dividend of $0.20 a share.
Under the recently established dividend policy, Lundin anticipates continuing to pay dividends of at least $0.40 a share a year, equivalent to about $100-million, based on current gold prices, expected production levels and current issued and outstanding shares.
“Payment of our first dividend was a great milestone, and we see potential to create further shareholder value through the significant free cash flow we are generating from this tier-one asset. With this cash flow we will continue to evaluate restructuring and paying down our debt, funding exploration, evaluating throughput expansion and M&A opportunities,” added Hochstein.
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