The following is a summary of the Lundin Gold Inc. (LUGDF) Q1 2024 Earnings Call Transcript:
Financial Performance:
Lundin Gold reported Q1 2024 gold production of over 111,500 ounces and sales of nearly 109,000 ounces.
The company generated adjusted earnings of $58 million excluding specified expenses, and adjusted EBITDA of $131 million.
Company's cash operating cost was $735 per ounce sold and an all-in sustaining cost of $868 per ounce sold.
The company recognized revenues of $227 million from the sale of approximately 109,000 ounces of gold with an average realized gold price of $2,141 per ounce.
Generated over $100 million cash from operating activities and a free cash flow of $82 million during this period.
Business Progress:
Lundin Gold meets its production guidance of 450,000 to 500,000 ounces for the year.
Achieved an important milestone in Q1 2024 with its updated mineral resources and mineral reserves.
The largest drilling program conducted on the land package that hosts FDN (Fruta del Norte).
Process plant expansion project remains on schedule for completion by 2024.
After repaying all its project debt, Lundin Gold will have 100% of its cash flow attributable to shareholders, with the potential increase in the dividend payout.
An aggressive exploration program that uncovered a new high-grade zone started with a budget of $42 million.
The company is reporting positive results with ongoing exploration efforts at Bonza Sur, FDN East, and regionally, focusing on replacing depletion or more ideally, incrementally increasing yield.
The current tailings facility has capacity into the 2030s and an expanded facility could support demands well into the 2040s.
A mill expansion project to increase throughput to 5,000 tonnes per day is on schedule with minimal expected disruptions to mill throughput.
More details: LUNDIN GOLD INC IR
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