Ecuador-focused Lundin Gold has increased its production guidance and decreased its cost guidance for 2022, following continuing strong operating results in the first half of the year.
The Vancouver-headquartered miner now expects to produce between 430 000 oz and 460 000 oz, from a previous guidance of 405 000 oz to 445 000 oz. All-in sustaining costs (AISC) decreased from a range of $860/oz to $930/oz, to between $820/oz and $930/oz.
In the half-year, Lundin produced 233 555 oz at an AISC of $771/oz. Second-quarter production came to 111 890 oz at an AISC of $864/oz. The miner generated cash from operating activities of $60.7-million and free cash flow of $21.2-million resulting in a cash balance of $301-million at quarter end.
“Fruta del Norte continues to generate significant operating cash flow, which allows us to expand our exploration programmes, pay down our debt aggressively and declare our inaugural semi-annual dividend equivalent to an annual yield of approximately 5.6%,” said CEO Ron Hochstein.
Lundin Gold declared a cash dividend of $0.20 a share, payable on September 13.