Lundin Gold reported record operational and financial performance at its Fruta del Norte mine in 2025, producing 498,000 ounces of gold and selling 503,000 ounces. The company achieved an average head grade of 9.5 grams per tonne with an 89% recovery rate. They processed over 1.8 million tonnes at a record average throughput of 5,009 tonnes per day. In the fourth quarter, Lundin Gold saw continued strong performance, with a record quarterly mining output and progress towards their goal of averaging 5,500 tonnes per day in 2026. The company also focused on safety improvements throughout the year, ending with no lost time incidents and their lowest annual total recordable incident rate.
Despite higher royalty and profit-sharing impacts from gold prices, Lundin Gold maintained disciplined cost performance in 2025. Cash operating costs averaged $838 per ounce and all-in sustaining costs (AISC) averaged $1,015 per ounce, resulting in a basic margin of 72%. The company generated $1.0 billion in cash flow from operations and $926 million in free cash flow in 2025, ending the year with $630 million in cash after paying dividends. Lundin Gold highlighted the inclusion of the FDNS deposit into mineral reserves, with plans for development and expansion. They anticipate a non-sustaining capital investment of $30-35 million in 2026 for FDNS development. Management is evaluating options to increase throughput beyond 5,500 tonnes per day, with a decision expected in 2026. Lundin Gold aims to maintain consistent production levels by integrating FDNS into the plan.
The company declared a quarterly dividend of $1.15 per share, reflecting strong free cash flow. Lundin Gold’s focus remains on returning capital while maintaining balance sheet strength. The board emphasized the importance of responsible operations and community impact, committing to delivering value to shareholders through growth and operational excellence. Lundin Gold anticipates a meaningful impact from FDNS in the coming years as it is integrated into the mine plan and begins production. Reserves and resources at Fruta del Norte increased in 2025, with exploration efforts ongoing at various targets. Lundin Gold’s commitment to transparency and sustainability guides their operations at the Fruta del Norte mine in Ecuador.
Read more at Yahoo Finance: Lundin Gold Q4 Earnings Call Highlights