Futures and Commodity Market News

VANCOUVER, BC, Feb. 20, 2025 (CNW Group via COMTEX) --

Record annual production, cash generation and increased dividend

Lundin Gold Inc.  (TSX: LUG) (Nasdaq Stockholm: LUG) (OTCQX: LUGDF) ("Lundin Gold" or the "Company") is pleased to report results for the fourth quarter and year ended December 31, 2024.  Lundin Gold's year is highlighted by record annual production of 502,029 ounces ("oz") of gold at an all-in sustaining cost ("AISC")1 of $875 per oz sold, exceeding production guidance of 450,000 to 500,000 oz and achieving AISC1 guidance of $820 to $890 per oz sold.  This led to record high cash flow with cash from operating activities of $662 million and adjusted free cash flow1 of $540 million or $2.26 per share.  This was achieved through record revenues of $1,193 million realized from the sale of 495,374 oz at an average realized gold price1 of $2,462 per oz.  Record adjusted earnings before interest, taxes, depreciation, and amortization ("EBITDA")1 of $780 million were also achieved during the year.  All amounts are in U.S.  dollars unless otherwise indicated. View PDF

Ron Hochstein, President and CEO commented, "Lundin Gold delivered a record-breaking 2024, exceeding production guidance with 502,029 ounces of gold at an AISC1 of $875 per ounce.  This achievement reflects our team's dedication to operational excellence, and with the Process Plant Expansion Project substantially complete, we anticipate increased throughput and recovery in 2025.  Becoming debt-free in 2024 was another major milestone and, building on this strong foundation, we've increased our quarterly dividend to $0.30 per share.  In addition, our ongoing exploration program continues to find new ounces which resulted in the highest published Mineral Reserves and Resources at FDN highlighting the exceptional potential of FDN and the district.  As a low-cost producer, we anticipate continuing to generate significant free cash flow1 in excess of $500 million based on a gold price of $2,500 per oz, providing flexibility for capital allocation and increased shareholder returns."

OPERATING AND FINANCIAL RESULTS SUMMARY

The following two tables provide an overview of key operating and financial results achieved during 2024 compared to the same periods in 2023. 

FOURTH QUARTER AND FULL YEAR HIGHLIGHTS

Year ended December 31, 2024

Fourth quarter of 2024

Outlook

Liquidity and Capital Resources

At the end of 2024, the Company is in a strong financial position.

As at December 31, 2024, the Company had cash of $349 million and a working capital balance of $458 million compared to cash of $268 million and a working capital balance of $347 million at December 31, 2023.  The change in cash during 2024 was primarily due to cash generated from operating activities of $662 million and proceeds from the exercise of stock options and anti-dilution rights totaling $22.1 million.  This is offset by scheduled principal, interest, and finance expense repayments under the Stream Facility totaling $35.8 million; the buy out of the Stream Facility and Offtake of $330 million; dividends of $144 million; and cash outflows of $93.5 million relating to investing activities. 

Capital Expenditures

Health and Safety

During 2024 there were ten Lost Time Incidents ("LTIs") and 13 Medical Aid Incident ("MAIs").  The Total Recordable Incident Rate across exploration and operations was 0.66 per 200,000 hours worked during 2024. 

Community

Lundin Gold continued to support several community projects during the year.  One of the Company's most significant programs, run by the non-governmental organization Educacià³n para Compartir, focuses on mental health and well-being in our local communities.  At year end, the program advanced into its second year, continuing to show increasing participation by local community members.  From inception of the program in July 2023 to the end of the fourth quarter of 2024, over 3,500 counselling sessions occurred, and more than 400 youth were registered in regular extra-curricular activities, including English studies, basketball, soccer, dance, music, and boxing. 

Engagement with the local governments of Yantzaza and Los Encuentros continued through support agreements for rural road maintenance, basic service infrastructure, community well-being and support for livestock and local farmers initiatives.  During the quarter, the Company committed to several significant projects including the second phase of infrastructure maintenance for the local school in Los Encuentros (more than 1,300 students), construction of sidewalks, curbs and road safety infrastructure for El Pindal community, maintenance of the infrastructure of smaller local schools and the construction of two bridges in Rà­o Blanco Community. 

Local businesses continue to be supported by the Company in conjunction with the Lundin Foundation.  The local companies that participate in the Lundin Foundation's local supplier development program continued to provide products and services to FDN, while also advancing growth strategies.  The Lundin Foundation's Soy Emperadora program, which supports women led businesses in the Province of Zamora Chinchipe, continued to show positive impacts and results.  As part of the relationship with the Shuar Indigenous Peoples, Lundin Gold and the Lundin Foundation continue to work to implement several initiatives to promote the culture of and to develop economic opportunities for the Shuar People in Zamora Chinchipe.

EXPLORATION

Near-Mine Exploration Program

During the year, the Company completed a total of 60,965 metres across 174 holes from surface and underground, of which approximately 15,640 metres across 42 holes were drilled in the fourth quarter.  Underground drilling explored mainly FDNS while drilling from surface continued to test sectors located along the extensions of the controlling structures of FDN, such as Bonza Sur and FDN East.

At Bonza Sur, the drilling program advanced the deposit delineation and extension.  At FDN East, drilling focused on follow up drilling from previous results.  Exploratory drilling was also completed in distinct sectors located to the east and south of the Bonza Sur deposit.

The underground exploration drilling program continues to focus on the southern limit of the FDN deposit, at the FDNS target, targeting the delineation of a new high grade vein system.  During the quarter, four drill holes were completed with most drill holes confirming gold mineralization associated with vein and veinlet zones of chalcedony and manganoan-calcite with sulfides and visible gold.  The program also advanced along the continuity of the FDN deposit at depth, where drill holes intercepted several zones of narrow veins of chalcedony-calcite, indicating the continuity of the mineralization in this sector. 

Regional Exploration ProgramThe regional program continues to advance in the identification of important indicators that point toward the presence of buried epithermal deposits in the southern basin.  The 2024 drilling program focused on distinct sectors along the southeastern and southwestern borders of the Suarez basin and a total of 1,889 metres across five drill holes were completed in the fourth quarter resulting in 5,337 metres completed under the 2024 program across 12 drill holes.  During the fourth quarter of 2024, the regional drilling focused on the Puente Princesa target.  At Puente Princesa, located along the west border of Suarez Basin, the drilling program tested a geochemical soil anomaly (gold and epithermal pathfinder elements like arsenic and mercury) located on the volcanic rocks of Santiago formation and intercepted narrow hydrothermal alteration represented by chalcedony veinlets and quartz calcite veins with limited sulfides occurrence.  Results remain pending.

Geophysical ProgramDuring the quarter, a 2D seismic survey was completed which was designed to provide detailed continuous images of the main controlling structures at FDN and the area of focus of the near mine exploration program.

CORPORATE

Qualified Persons

The technical information relating to Fruta del Norte contained in this MD&A has been reviewed and approved by Terry Smith P.  Eng, Lundin Gold's COO, who is a Qualified Person in accordance with the requirements of National Instrument 43-101 â?? Standards of Disclosure for Mineral Projects ("NI 43-101").  The disclosure of exploration information contained in this MD&A was prepared by Andre Oliveira P.Geo, Vice President, Exploration of the Company, who is a Qualified Person in accordance with the requirements of NI 43-101. 

Webcast and Conference Call

The Company will host a conference call and webcast to discuss its results on Friday, February 21 at 8:00 a.m.  PT, 11:00 a.m.  ET, 5:00 p.m.  CET.

Conference Call Dial-In Numbers:

A link to the webcast will be available on the Company's website, www.lundingold.com.

A replay of the conference call will be available two hours after its completion until February 28, 2025.

About Lundin Gold

Lundin Gold, headquartered in Vancouver, Canada, owns the Fruta del Norte gold mine in southeast Ecuador.  Fruta del Norte is among the highest-grade operating gold mines in the world.

The Company's board and management team have extensive expertise and are dedicated to operating Fruta del Norte responsibly.  The Company operates with transparency and in accordance with international best practices.  Lundin Gold is committed to delivering value to its shareholders through operational excellence and growth, while simultaneously providing economic and social benefits to impacted communities, fostering a healthy and safe workplace and minimizing the environmental impact.  Furthermore, Lundin Gold is focused on continued exploration on its extensive and highly prospective land package to identify and develop new resource opportunities to ensure long-term sustainability and growth for the Company and its stakeholders.

Non-IFRS Measures 

This news release refers to certain financial measures, such as average realized gold price per oz sold, EBITDA, adjusted EBITDA, cash operating cost per oz sold, all-in sustaining cost, free cash flow, adjusted free cash flow, adjusted free cash flow per share, and adjusted earnings, which are not measures recognized under IFRS and do not have a standardized meaning prescribed by IFRS.  These measures may differ from those made by other companies and accordingly may not be comparable to such measures as reported by other companies.  These measures have been derived from the Company's financial statements because the Company believes that they are of assistance in the understanding of the results of operations and its financial position.  Certain additional disclosures for these specified financial measures have been incorporated by reference and can be found on page 15 of the Company's MD&A for the year ended December 31, 2024 available on SEDAR+.

Additional Information

The information in this release is subject to the disclosure requirements of Lundin Gold under the EU Market Abuse Regulation.  This information was publicly communicated on February 20, 2025 at 4:30 p.m.  Pacific Time through the contact persons set out below.

Caution Regarding Forward-Looking Information and Statements

Certain of the information and statements in this press release are considered "forward-looking information" or "forward-looking statements" as those terms are defined under Canadian securities laws (collectively referred to as "forward-looking statements").  Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, identified by words or phrases such as "believes", "anticipates", "expects", "is expected", "scheduled", "estimates", "pending", "intends", "plans", "forecasts", "targets", or "hopes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "will", "should" "might", "will be taken", or "occur" and similar expressions) are not statements of historical fact and may be forward-looking statements.  By their nature, forward-looking statements and information involve assumptions, inherent risks and uncertainties, many of which are difficult to predict, and are usually beyond the control of management, that could cause actual results to be materially different from those expressed by these forward-looking statements and information.  Lundin Gold believes that the expectations reflected in this forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct.  Forward-looking information should not be unduly relied upon.  This information speaks only as of the date of this press release, and the Company will not necessarily update this information, unless required to do so by securities laws. 

This press release contains forward-looking information in several places, such as in statements relating to  Company's 2025 production outlook, including estimates of gold production, grades recoveries and AISC; operating plans; expected sales receipts and cash flow and free cash flow forecasts, its estimated capital costs and sustaining capital; the Company's efforts to mitigate the impacts of the energy crisis in Ecuador on its operations; the recovery of VAT; timing of completion of the process plant expansion project and the anticipated benefits; benefits of the Company's community programs; the Company's declaration and payment of dividends pursuant to its dividend policy; the timing and the success of its drill program at Fruta del Norte and its other exploration activities; and estimates of Mineral Resources and Reserves at Fruta del Norte.  There can be no assurance that such statements will prove to be accurate, as Lundin Gold's actual results and future events could differ materially from those anticipated in this forward-looking information as a result of the factors discussed in the "Risk Factors" section in Lundin Gold's Management's Discussion and Analysis dated February 20, 2025 which is available at www.lundingold.com or on SEDAR+ at www.sedarplus.ca. 

Lundin Gold's actual results could differ materially from those anticipated.  Factors that could cause actual results to differ materially from any forward-looking statement or that could have a material impact on the Company or the trading price of its shares include risks relating to: instability in Ecuador; community relations; reliability of power supply; tax changes in Ecuador; security; availability of workforce and labour relations; mining operations; waste disposal and tailings; environmental compliance; illegal mining; Mineral Reserve and Mineral Resource estimates; infrastructure; regulatory risk; government or regulatory approvals; forecasts relating to production and costs; gold price; dependence on a single mine; shortages of critical resources; climate change; exploration and development; control of Lundin Gold; dividends; information systems and cyber security; title matters and surface rights and access; health and safety; human rights; employee misconduct; measures to protect biodiversity, endangered species and critical habitats; global economic conditions; competition for new projects; key talent recruitment and retention; market price of the Company's shares; social media and reputation; insurance and uninsured risks; pandemics, epidemics or infectious disease outbreak; conflicts of interest; violation of anti-bribery and corruption laws; internal controls; claims and legal proceedings; and reclamation obligations. 

SOURCE Lundin Gold Inc.

SOURCE: Lundin Gold Inc.

For more information, please contact: Ron F. Hochstein, President and CEO, Tel
(Canada): +1-604-806-3589, ron.hochstein@lundingold.com; Brendan Creaney, Vice
President, Corporate Development & Investor Relations, Tel: +1-604-376-4595,
brendan.creaney@lundingold.com

COMTEX_462974434/2197/2025-02-20T19:30:00

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