GoGold Resources Inc. press release
LUNDIN GOLD REPORTS THIRD QUARTER 2025 RESULTS
TSX - Toronto Stock Exchange · Silver · Gold · Copper · Zinc · Lead · Canada
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Record mill throughput alongside record net income and earnings per share
VANCOUVER, BC, Nov. 6, 2025/CNW/ - Lundin Gold Inc. (TSX: LUG) (Nasdaq Stockholm: LUG) (OTCQX: LUGDF)("Lundin Gold" or the "Company")today announced its financial results for the third quarter of 2025, featuring revenues of $447 millionand record net income of $208 million($0.86per share). Free cash flow1of $191 million($0.79per share) was driven by gold sales of 124,911 ounces ("oz") at an average realized gold price1of $3,634per oz, at cash operating costs1of $861and all-in sustaining costs1("AISC") of $1,036per oz sold. While record-high gold prices have strengthened financial performance, they have also increased royalties and statutory profit sharing payable to employees, which impact both cash operating costs1and AISC1. The Company also announced cash dividends of $0.80per share (approximately $193 million) comprised of the fixed quarterly dividend of $0.30per share and the variable quarterly dividend of $0.50per share, to be paid at the end of the fourth quarter. All dollar amounts are stated in US dollars unless otherwise indicated. PDF Version
Ron Hochstein, President and CEO commented, "I'm extremely pleased to announce that Lundin Goldhas delivered an exceptional third quarter highlighted by record net income of $208 millionand robust free cash flow of $191 million. This high-margin performance, with an AISC of $1,036against an average realized gold price1of $3,634per oz sold, demonstrates the world-class quality of Fruta del Norte. Our financial strength enabled our Board to declare a substantial dividend of $0.80per share increasing the variable component this quarter to reflect 100% of normalized free cash flow from the policy's minimum of 50%.
With three quarters of strong results, we remain firmly on track to achieve our full-year production guidance while expecting to finish at the upper end of our cash operating cost1and AISC1guidance range due to the significant increase in the gold price.
As I transition to a new role in the Lundin Group, I am confident that Lundin Goldis well positioned to continue delivering strong performance under Jamie Beck'sleadership, as he joins in the role of President and Chief Executive Officer on November 7th...The best is yet to come!"
| _ | | 1Refer to "Non-IFRS Measures" section. |
OPERATING AND FINANCIAL RESULTS SUMMARY
The following two tables provide an overview of key operating and financial results.
| | Three months ended
September 30, | Nine months ended
September 30, | | | | | 2025 | 2024 | 2025 | 2024 | | Tonnes ore mined | 480,519 | 427,389 | 1,332,367 | 1,266,320 | | Tonnes ore milled | 484,296 | 425,340 | 1,343,275 | 1,263,835 | | Average mill throughput (tpd) | 5,264 | 4,623 | 4,920 | 4,613 | | Average head grade (g/t) | 8.9 | 10.3 | 9.8 | 10.3 | | Average recovery | 88.2 % | 86.8 % | 89.3 % | 88.0 % | | Gold ounces produced | 122,086 | 122,154 | 378,832 | 366,788 | | Gold ounces sold | 124,911 | 125,887 | 379,289 | 364,199 |
| | Three months ended
September 30, | Nine months ended
September 30, | | | | | 2025 | 2024 | 2025 | 2024 | | Revenues ($'000) | 447,119 | 323,087 | 1,256,344 | 851,259 | | Income from mining operations ($'000) | 305,228 | 203,184 | 852,935 | 488,178 | | Earnings before interest, taxes, depreciation, and amortization ($'000)1 | 311,680 | 220,469 | 872,022 | 789,150 | | Adjusted earnings before interest, taxes, depreciation, and amortization ($'000)1 | 311,680 | 220,469 | 872,022 | 547,326 | | Net income ($'000) | 207,715 | 135,715 | 557,946 | 296,903 | | Basic income per share ($) | 0.86 | 0.57 | 2.32 | 1.24 | | Cash provided by operating activities ($'000) | 215,533 | 217,873 | 664,623 | 466,406 | | Free cash flow ($'000)1 | 191,148 | 181,196 | 597,601 | 136,478 | | Free cash flow per share ($)1 | 0.79 | 0.76 | 2.48 | 0.57 | | Average realized gold price ($/oz sold)1 | 3,634 | 2,616 | 3,364 | 2,389 | | Cash operating cost ($/oz sold)1 | 861 | 681 | 802 | 713 | | All-in sustaining costs ($/oz sold)1 | 1,036 | 877 | 957 | 874 | | Adjusted earnings ($'000)1 | 207,715 | 135,715 | 557,946 | 292,449 | | Adjusted earnings per share ($)1 | 0.86 | 0.57 | 2.32 | 1.22 | | Dividends paid per share ($) | 0.79 | 0.20 | 1.95 | 0.40 |
THIRD QUARTER HIGHLIGHTS
Financial Results
Gold sales totaled 124,911 oz, consisting of 81,790 oz in concentrate and 43,121 oz as doré, resulting in gross revenues of $454 millionat an average realized gold price1of $3,634per oz. Average realized gold price1was positively impacted by rising gold prices on provisionally priced gold sales which exceeded fair value estimates as at June 30, 2025. Net of treatment and refining charges, revenues for the quarter were $447 million. Average realized gold price1includes $3,446per oz of gross price received and a favourable impact of $188per ounce from adjustments to provisionally priced sales. Cash operating costs1and AISC1were $861and $1,036per oz of gold sold, respectively. These figures reflect the impact of higher accrued royalties and statutory profit sharing payable to employees which were driven by record-high average realized gold prices1. The Company generated cash from operating activities of $216 millionand free cash flow1of $191 million, or $0.79per share, resulting in a cash balance of $494 millionat September 30, 2025.
| _ | | 1Refer to "Non-IFRS Measures" section. |
Production Results
The mine ramped up during the third quarter to keep pace with the mill resulting in a record 480,519 tonnes mined at an average grade of 7.9 g/t. The mill processed 484,296 tonnes at an average throughput rate of 5,264 tpd, with average recoveries of 88.2%. Recoveries were affected by ore variability which impacted performance of the floatation circuit. The average grade of ore milled was 8.9 g/t. Gold production was 122,086 oz which was comprised of 78,172 oz in concentrate and 43,914 oz as doré.
Outlook
The Company remains on track to meet its revised annual production guidance of 490,000 to 525,000 oz. Cash operating cost1and AISC1are expected to be at the upper end of guidance of $730to $790per oz sold and $935to $995per oz sold, respectively. While record-high gold prices have significantly strengthened the Company's financial performance, they have also resulted in higher royalties and statutory profit sharing payable to employees, which in turn impact both cash operating costs1and AISC1. For every $100per oz increase in gold price, these metrics are estimated to increase by approximately $10per oz. The Company's guidance was based on a gold price assumption of $2,500per oz while average realized gold prices1during the 2025 Period was $3,364per oz – an increase of $864per oz. This variance in costs exceeds the $60per oz span of the Company's cash operating cost1and AISC1guidance ranges. The near-mine underground drilling program is expected to continue to advance at FDNS where the primary focus is the conversion and expansion of the resources while concurrently exploring the FDN East target. The surface drilling program is expected to continue to explore the recently discovered copper-gold porphyry corridor which hosts Trancaloma and Sandia, advance at Castillo, and explore new sectors around FDN and along the south extension of the Suarez Basin. Seventeen rigs are currently turning across the conversion and near-mine exploration programs. The Company continues to allocate capital to organic growth and based on recent drilling results on the porphyry district, has further expanded its 2025 exploration program from an original 80,000 to a minimum of 120,000 metres. This represents the largest drill program ever completed on the land package that hosts the FDN deposit. In addition, mine engineering work is underway on FDNS to evaluate geotechnical, mine design, metallurgical characteristics and infrastructure needs with the goal of integrating FDNS into FDN's long-term mine plan to be updated in Q1 2026. The regional exploration program is expected to continue to focus on the unexplored large package of mineral concessions located on a highly prospective environment which hosts the Fruta del Norte deposit. This is the first year of a new three-year greenfield strategy to identify new areas for exploration drilling. The 2025 program includes a geophysical magnetic survey and a geochemical sampling program. Under its dividend policy, the Company anticipates continuing to declare quarterly minimum dividends of $0.30per share, equivalent to approximately $300 millionannually based on currently issued and outstanding shares, plus a variable dividend equal to an amount based on at least 50% of the Company's normalized free cash flow, after the deduction of the fixed dividend.
| | | 1Refer to "Non-IFRS Measures" section. |
Liquidity and Capital Resources
At the end of September 30, 2025, the Company is in a strong financial position.
| (in thousands of U.S. dollars) | As at September 30,
2025 | As at December 31,
2024 | | Financial Position: | | | | Cash | 494,369 | 349,200 | | Working capital | 576,799 | 458,944 | | Total assets | 1,638,974 | 1,527,481 | | Long-term debt | - | - |
As at September 30, 2025, the Company had cash of $494 millionand a working capital balance of $577 millioncompared to cash of $349 millionand a working capital balance of $459 millionat December 31, 2024.
The change in cash during the 2025 Period was primarily due to cash generated from operating activities of $665 millionand proceeds from the exercise of stock options and anti-dilution rights totaling $18.2 million. This is offset by dividends paid of $471 millionand capital expenditures of $67.0 million.
Capital Expenditures
_Sustaining Capital Expenditures__1_
Sustaining capital expenditures1during the second quarter were $14.3 million. Construction of the fifth tailings dam raise is well underway and is on track for completion during the first quarter of 2026. Other projects that were completed or advanced during the quarter included enhancements to camp facilities, construction of administration building, as well as other operational infrastructure improvements.
| | | 1Refer to "Non-IFRS Measures" section. |
_Non-Sustaining Capital Expenditures__1_
Non-sustaining capital expenditures1of $7.7 millionare comprised of growth-oriented investments such as new projects, expansions, conversion drilling, and associated permitting and study expenditures not related to current operations. The 2025 conversion drilling program is focused on FDNS, located in the southern portion of the FDN deposit. During the third quarter, the conversion drilling program completed approximately 8,976 metres across 64 holes with four rigs currently turning. The completed holes confirmed continuity of the mineralization and indicated higher grade zones within the vein system. Some conversion drill holes also intercepted mineralized zones outside of the existing geological model. Several results for the FDNS conversion drilling program remain pending and are expected to be reported during the fourth quarter of 2025.
Health and Safety
During the third quarter there were no Lost Time Incidents and four Medical Aid Incidents. The Total Recordable Incident Rate across the Company was 0.37 per 200,000 hours worked for the quarter and 0.20 for the first nine months of 2025.
Community
Lundin Goldsponsored community projects continued to advance in the third quarter of 2025. The first phase of one of the Company's most impactful programs, which focused on mental health and well-being in local communities, successfully concluded during the quarter, surpassing several of the targets set for the program. Phase 2 of the program commenced during the quarter and is expected to run until December 2026. By the end of the third quarter, approximately 415 counselling sessions were provided to 76 local community residents. In addition, the sports academy component of the program had 484 youth registered in extra-curricular activities, including basketball, soccer, dance, music, and boxing.
Engagement with numerous local governments continues to support rural road maintenance, road emergencies caused by extreme weather events, community wellbeing, and the Company's regional exploration activities. In response to flooding in the province of Zamora Chinchipe during the quarter, Lundin Goldprovided humanitarian aid to support affected families and road maintenance support in the affected zone in coordination with the Ministry of Transportation and Public Works. During the quarter, the Company committed to several significant projects focused on dairy productivity enhancement and the paving of the El Zarza – Jardín del Cóndor Road which is a key part of the public road from Los Encuentros to FDN.
Lundin Goldcontinued to participate in the community dialogue roundtable process. Six separate roundtables were held in July and September. Approximately 380 individuals participated in these sessions including local vendors, local authorities, and Lundin Goldpersonnel.
Local businesses received ongoing support from the Company, in partnership with the Lundin Foundation. The local companies that participated in the Lundin Foundation's supplier development program continued to provide products and services to FDN, while also advancing growth strategies. In addition, strengthening the Company's long-standing relationship with the Shuar Indigenous Peoples, Lundin Gold, the Lundin Foundation, and the Shuar continued to collaborate to advance the implementation of a Shuar tire distribution business to supply FDN.
| _ | | 1Refer to "Non-IFRS Measures" section. |
EXPLORATION
Near-Mine Exploration Program
During the third quarter of 2025, the Company completed a total of 32,973 metres across 58 holes from surface and underground.
The underground near mine drilling program focused on the FDNS deposit, which remains open for expansion in the north and along the south extensions and where one underground rig is currently turning. The underground drilling program also continues to advance at FDN East ("FDNE") where one rig is exploring the mineralization continuity in the central portion of this target. As at the date of this MD&A, two underground rigs are active in the near mine drilling program.
The surface near mine drilling program advanced in the recently discovered copper-gold mineralization at Trancaloma and Sandia. Furthermore, the near mine drilling program continues to explore the FDN deposit at depth, the Castillo target, and in distinct sectors along the south extension of the Suarez Basin. As at the date of this MD&A, 11 surface rigs are drilling with three at Sandia, two at Trancaloma, one at Castillo, one at FDN at depth, and four at new sectors.
At Trancaloma, located four kilometres from FDN, results of the drilling program confirmed the lateral and vertical continuity of the copper-gold porphyry mineralization. In the eastern portion of the target, the drilling program extended the mineralization along the northwestern direction and indicated areas for further expansion. At Sandia, located two kilometres from FDN, results of the drilling program indicated the continuity of the copper-gold mineralization. All completed drill holes in the period confirmed the occurrence of a shallow wide copper-gold porphyry mineralization and extended the mineralized zone along the northwestern direction and at depth. At Castillo, an exploratory hole intercepted a higher-grade copper-gold mineralized interval associated with significant sulfide levels and indicated new areas for further drilling under the Suarez Basin cover. At FDN, directional drilling technology continues to be employed in the surface drilling program to enhance precision for the target testing in the deeper portions of the deposit. Throughout the program, drill holes are testing the mineralization continuity at distinct depths of the FDN deposit. An exploratory drilling program is underway to define additional exploration targets underneath the Suarez Basin cover. The program is systematically testing the presence of hydrothermal alteration horizons and epithermal deposits pathfinder elements hosted in the Suarez Basin sediments, which could potentially indicate gold epithermal systems at depth. The near-mine exploration program continues to advance in unexplored areas close to FDN. A systematic exploration program employing geochemical and geophysical surveys and geological mapping continues to cover unexplored sectors in the near mine area. In addition to the drilling programs, mine engineering work is underway on FDNS to evaluate geotechnical, mine design, metallurgical characteristics, and infrastructure needs with the goal of integrating this Mineral Resource into FDN's 2026 updated long-term mine plan.
A table of third quarter 2025 near mine results for the Trancaloma, Sandia, and Castillo targets received to date can be found in Lundin Gold'spress release dated November 3, 2025. Several results for the FDNS and FDNE drilling programs remain pending and are expected to be announced during the fourth quarter.
Regional Exploration Program
The Company advanced its multi-year regional exploration program during the third quarter of 2025. The program is expected to cover approximately 54,000 hectares on 23 of the Company's concessions along the Zamora Copper Gold Belt, a high potential geological setting which hosts the Fruta del Norte mine and several large copper-gold projects. The exploration program continues to advance in the Gamora district, located 65 kilometres north of FDN and approximately four kilometres north of the Mirador copper-gold mine.
The Gamora district comprises multiple exploration sectors that exhibit geological features similar to those found in copper-gold porphyry systems. Geological mapping and geochemical sampling programs were completed in distinct parts of the district during the quarter which resulted in the identification of additional potential targets for further evaluation. Furthermore, exploration activities advanced at the Soberano concession, located approximately 22 kilometres southwest of FDN, where geological mapping followed by soil and rock sampling were completed. An airborne geophysics survey (Radiometric and Magnetic) was concluded and covered most of the regional concessions.
CORPORATE
In September, the Company announced a planned leadership transition with Mr. Ron Hochsteinstepping down as President, CEO, and Director of the Company. Mr. Jamie Beckwill be appointed President, CEO, and Director effective November 7, 2025. During the quarter, Lundin Goldcompleted its new five-year sustainability strategy (2026-2030) to coincide with the expiry of its current five-year strategy. Anchored by the vision of "Transforming lives through responsible mining", the strategy is built on five strategic pillars: Shared Prosperity, Stakeholder Trust, Responsible Governance, Environmental Stewardship and Valued Workforce. With ambitious targets for 2030 and beyond, this strategy will guide Lundin Gold'slegacy as a leading gold company, a trusted community partner and a driver of long-term local prosperity. The Company paid a quarterly dividend of $0.79per share, comprised of the fixed dividend of $0.30per share and variable dividend of $0.49per share, on September 25, 2025(September 30, 2025for shares trading on Nasdaq Stockholm) for a total of $191 million. With the release of its third quarter 2025 results, the Company has declared cash dividends totaling $0.80per share, comprised of the fixed dividend of $0.30per share and variable dividend of $0.50per share, payable on December 22, 2025(December 30, 2025for shares trading on Nasdaq Stockholm) to shareholders of record at the close of business on December 5, 2025. Pursuant to the Company's dividend policy, the variable dividend was calculated based on 100% of the Company's normalized free cash flow during the third quarter of 2025, after deducting the fixed dividend paid, which exceeds the policy's minimum threshold of 50%.