2025 highlights include the benefits of increased throughput to 5,000 tpd and improved gold recoveries and an exploration program with 80,000 metres of drilling
2025 Guidance Highlights:
- Gold production is estimated between 475,000 to 525,000 ounces ("oz").
- Cash operating costs1 and all-in sustaining costs1 ("AISC") are expected to range between
$730 to$790 and$935 to$995 per oz of gold sold2, respectively. - Total sustaining capital in 2025 is estimated at
$75 to$85 million which includes 15,000 metres planned to be drilled under the resource conversion program. - In light of exploration success, the Company's near-mine exploration program's footprint is being expanded to incorporate additional land which was previously considered part of the regional program. 65,000 metres is planned to be drilled (see Figure 1).
- The regional exploration program will broaden with a new three-year greenfield strategy over the Company's unexplored land package of over 50,000 hectares. In its first year the focus will consist of surface exploration and airborne surveys to identify new targets for exploration drilling in 2026.
Lundin Gold anticipates continuing to declare quarterly dividends of$0.20 per share.
The Company's guidance for the year 2025 is provided in the table below.
2025 | |
Gold Production (oz) | 475,000 – 525,000 |
Mill Throughput (tpd) | 5,000 |
Head Grade (g/t Au) | 9.2 |
Average Mill Recovery (%) | 90 % |
Sustaining Capital ($ million) | 75 – 85 |
Cash operating cost1 ($/oz sold)2 | 730 – 790 |
AISC1 ($/oz sold)2 | 935 – 995 |
Near-mine Exploration Program ($ million) | 32 |
Regional Exploration Program ($ million) | 8 |
1 See Non-GAAP Financial Measures section. | ||
2 Gold/silver price per oz assumptions are |
The Company's outlook for production, mill throughput, sustaining capital and AISC for the next three years is provided in the table below.
2025 | 2026 | 2027 | |
Gold Production (oz) | 475,000 - 525,000 | 475,000 - 525,000 | 475,000 - 525,000 |
Mill Throughput (tpd) | 5,000 | 5,500 | 5,500 |
Sustaining Capital ($ million) | 75 - 85 | 75 - 90 | 70 - 85 |
Cash operating cost ($/oz sold)1, 2 | 730 - 790 | 750 - 810 | 750 - 810 |
AISC ($/oz sold)1, 2 | 935 - 995 | 950 - 1,020 | 925 - 995 |
2025 Guidance and 2025-2027 Outlook
Gold production at FDN for 2025 is estimated to be between 475,000 to 525,000 oz based on an average throughput rate of 5,000 tonnes per day ("tpd"). Head grade is estimated to average 9.2 g/t, with fluctuations expected during the year as different sections of the ore body are mined. Grades are slightly lower relative to 2024, as a result of continued extension of the mine life at FDN and adjustments to the mine sequence. Average mill recovery for the year is estimated at 90%.
Several opportunities have been identified to further debottleneck operations and increase average throughput to 5,500 tonnes per day starting in 2026. Mine operations will benefit from increased mine equipment availability and utilization resulting from the new underground workshop and dispatch system. At the processing plant the debottlenecking opportunities can be implemented with minimal cost as they are optimizations to the new configuration of the process plant.
Cash operating costs1 are estimated to range between
Gold production and sales are expected to be backend weighted in 2025 as mill throughput is anticipated to increase over the year as the plant expansion project is fully commissioned. Mill head grade is also expected to improve as the year progresses due to mine sequencing. This translates to lower anticipated unit costs in the second half of the year relative to the first half.
1 See Non-GAAP Financial Measures section. | ||
2 Gold/silver price per oz assumptions for the three years are |
Total sustaining capital in 2025 is estimated at
Sustaining capital in 2026 has increased from previous guidance due to the impact of increased mineral reserves and tonnage, leading to adjustments to the maintenance and replacement schedule of the mobile equipment fleet, as well as a larger tailings storage facility design. This increase in sustaining capital, combined with the increase in the assumed gold price1, has resulted in an increase in AISC2 per oz sold in 2026 compared to previous guidance.
Consistent with previous years, the Company expects its free cash flow2 during the second quarter of 2025 to be lower than other quarters due to the payment of annual profit sharing to the government and employees along with remaining income taxes owed. This variation is expected to be more pronounced in 2025 due to the Company's strong operating performance achieved so far in 2024 which has been further bolstered by high gold prices.
2025 Resource Conversion Program
Based on the results of the 2024 conversion drilling program, the Company intends to release updated estimates of Mineral Reserves and Resources for FDN early in 2025. A total of 15,000 metres of resource conversion drilling is anticipated in 2025.
2025 Exploration Programs
The Company is currently drilling and evaluating the Bonza Sur deposit and anticipates publishing an initial resource by mid year 2025.
The regional exploration program will focus on the unexplored large package of mineral concessions located on a highly prospective environment which hosts the Fruta del Norte deposit (see Figure 1). This will be 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 and is estimated to cost
1 Gold/silver price per oz assumptions for the three years are | ||
2 See Non-GAAP Financial Measures section. |
Figure 1: Map showing expanded near-mine exploration program and 1st year focus of new three year regional exploration program
Dividend
Consistent with the Company's dividend policy,
Non-GAAP Financial Measures
This news release refers to certain financial measures, such as cash operating costs, AISC, and free cash flow, 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 calculated on a basis consistent with historical periods. Please refer to the Company's MD&A filed on SEDAR+ under the Company's profile at www.sedarplus.ca, pages 14 to 18, for the third quarter of 2024 for an explanation of non-IFRS measures used.
Qualified Persons
The technical information relating to FDN contained in this News Release has been reviewed and approved by
About
The Company's board and management team have extensive expertise in mine operations and are dedicated to operating Fruta del Norte responsibly. The Company operates with transparency and in accordance with international best practices.
Additional Information
The information in this release is subject to the disclosure requirements of
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.
This press release contains forward-looking information in several places, such as in statements relating to the Company's 2025 guidance and 2025-2027 outlook, including estimates of gold production, grades, recoveries and its expectations regarding ASIC, cash operating costs, sustaining costs, free cash flow and capital costs, plans to declare and pay dividends, the timing of updates to Mineral Reserve and Resource estimates, actions taken to mitigate the impacts of disruptions to power to Fruta del Norte, and the Company's exploration plans and success. There can be no assurance that such statements will prove to be accurate, as
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