Lundin Gold Inc (LUG.TO) Q1 2026 Earnings Call Transcript
Bullish Gold 19.25B Canada
Next Earnings
2026-05-13
Lundin Gold Inc. operates as a mining company in Canada. The company holds interests in 28 metallic mineral concessions and three construction material concessions covering an area of approximately 64,454 hectares located in Southeast Ecuador. It primary holds 100% interests in the Fruta del Norte gold project that comprising seven concessions covering an area of approximately 5,566 hectares located near the city of Loja in Ecuador. The company was formerly known as Fortress Minerals Corp. and changed its name to Lundin Gold Inc. in December 2014. Lundin Gold Inc. was incorporated in 1986 and is headquartered in Vancouver, Canada.
Lundin Gold delivered record 2025 operational and financial results, with robust free cash flow, a growing reserve base, and a clear path to further expansion and shareholder returns through FDNS integration and district-scale exploration.
⭐ Key Highlights
Record quarterly and full-year metrics
Q4 revenue $527m, net income $234m, EBITDA $364m, and free cash flow $328m; full-year revenue $1.78b, net income $792m, EBITDA $1.24b, and free cash flow $926m.
Fruta del Norte (FDN) growth and reserves
FDN reserve and resource base expanded to 5.85Moz (up 6% YoY) with inaugural FDNS reserve of 0.54Moz and 7.48Moz Measured + Indicated resources (up 6%).
FDNS integration and mine plan progression
FDNS added to mineral reserves; underground development proceeding; integrated mine-to-mill expansion study to evaluate throughput beyond 5,500 tpd with an integrated investment decision in 2026.
Dividend and capital allocation
Q4 dividend of $1.15/shr ( ~$278m) declared; total 2025 dividends $664m; Board-approved dividend policy remains, supported by strong free cash flow and robust liquidity ($630m cash at year-end).
Exploration and district-scale potential
Strong near-mine and district exploration results (FDNS, FDN East, Sandia, Trancaloma, Castillo, Bonza Sur) with high-grade intercepts and potential for significant reserve growth.
✔Positive Signals
- Record Q4 and full-year results across revenue, net income, EBITDA, and free cash flow
- FDN reserves and resources increased; FDNS added to reserves
- Underground development progression and plan to evaluate throughput beyond 5,500 tpd
- Strong free cash flow supports robust dividend and balance sheet strength
- District-scale exploration results indicate significant growth potential
✖Negative Signals
- Cost metrics (cash operating costs and AISC) above guidance due to higher realized gold price and royalties
- Nonsustaining capex for FDNS development estimated at $30–$35 million in 2026
- Near-term timing and scale of FDNS expansion remain to be finalized; incremental expansion rather than a major step change
- Potential exploration and development risks inherent in multi-front growth (execution risk)
📊Financial Results
- Q4 net revenues $527m vs. prior implied target from seasonal strength (record quarter)
- Full-year net revenues $1.78b and EBITDA $1.24b, driven by a realized gold price of $3,594/oz vs. $2,500/oz guidance
- Q4 free cash flow $328m; full-year free cash flow $926m
- Cash operating costs $838/oz and AISC $1,015/oz for 2025; both higher than initial guidance due to higher gold prices and royalties
- Dividends of $664m paid in 2025; year-end cash $630m
🔮Future Guidance
- 2026 production guidance to be delivered with 133,000 m exploration program and integrated FDNS/FDN optimization; plan for 2026 to achieve production and unit cost targets
- Integrated investment decision on mine-to-mill expansion expected in 2026, considering options to increase throughput beyond 5,500 tpd
- Nonsustaining FDNS development capex guidance of $30–$35 million for 2026, with more detailed capital plan to be released later in the year
- Exploration program expected to drive further reserve growth, including potential addition of Bonza Sur to future planning
- Financial guidance anticipated to reflect higher realized gold prices and potential margin expansion from throughput gains
💡Interesting Insights
- FDNS could be integrated to the current mine plan with no shaft required, using existing development toward the south, suggesting a relatively low incremental capex path to sustain production
Detailed Analysis
AI-generated summary of Lundin Gold Inc earnings call transcript.
Lundin Gold reported a landmark 2025, featuring record quarterly and annual financials driven by strong production at Fruta del Norte, a growing reserve/resource base including the FDNS addition, and a disciplined capital return program. The company achieved record Q4 metrics (revenue, net income, EBITDA, and free cash flow) and finished the year with solid cash generation and a healthy balance sheet. Operationally, Q4 produced over 501k tonnes with annual production near the upper end of guidance, while cost performance benefited from high realized gold prices, though cash operating costs and AISC exceeded initial guidance due to higher gold prices and related royalties. FDNS reserve incorporation, ongoing underground development, and an integrated mine-to-mill expansion study aim to sustain higher throughput beyond 5,500 tpd, with a 2026 decision planned. Exploration across the district yielded compelling high-grade results and new porphyry discoveries, reinforcing the long-term growth potential. The Board approved a $1.15 per-share quarterly dividend, supporting strong shareholder returns in a strengthened balance sheet context, with guidance for 2026 focusing on production and unit costs while pursuing a record exploration program.
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