Lundin Gold Reports Third Quarter 2026 Results

Lundin Gold Inc. (LUG) reported third-quarter 2026 results for the period ended September 30, 2026, highlighting a record quarter at its Fruta del Norte mine. Production reached 153,736 ounces of gold, with 148,326 ounces sold. The company mined 555,369 tonnes of ore and milled 535,711 tonnes, achieving a throughput of 5,823 tonnes per day, a head grade of 10.1 grams per tonne, and a recovery rate of 88.3%.

Financial performance for the quarter included revenue of $633.0 million, income from mining operations of $467.7 million, and EBITDA of $475.9 million. Adjusted EBITDA stood at $480.0 million, while net income was $293.8 million, or $1.21 per share. Adjusted earnings were $296.8 million, or $1.23 per share. Cash from operating activities totaled $376.9 million, and free cash flow was $330.9 million, or $1.37 per share.

The company closed the quarter with $573.6 million in cash and $477.1 million in working capital. Lundin Gold paid $261 million in dividends and repurchased 49,500 shares for $3.1 million under its normal course issuer bid. A fourth-quarter dividend of $1.14 per share was declared, consisting of a $0.30 fixed component and a $0.84 variable component, payable on December 23, 2026. The variable portion represents 100% of normalized free cash flow, exceeding the company’s 50% policy minimum.

Full-year 2026 guidance was reaffirmed, targeting production between 475,000 and 525,000 ounces with an all-in sustaining cost (AISC) of $1,110 to $1,170 per ounce sold. Year-to-date production reached 392,472 ounces, approximately 78% of the guidance midpoint. Management indicated that the fourth quarter will be the lowest production period of the year due to lower grades in the mine sequence and scheduled mill maintenance completed in October, though mill throughput is expected to remain strong.

An investment decision regarding the integrated Fruta del Norte Sandia (FDNS) and mill expansion is still expected in the fourth quarter of 2026. While final cost estimates and project schedules have been developed, they were not disclosed in the release. Exploration activity continues, with 109,000 meters of the 133,000-meter 2026 program completed through the third quarter. A maiden Mineral Resource estimate for the Sandia copper-gold porphyry is targeted for early 2027. Additionally, the Quebrada Dorada discovery has doubled the known epithermal trend from 4 kilometers to 8 kilometers.

The release reiterated the ongoing tax dispute in Ecuador, citing a September 8, 2026 notice of assessment for the 2023 fiscal year sovereign adjustment of $154 million, which includes potential fines and penalties but excludes interest. The company disputes the assessment and stated that operations, guidance, exploration, and capital returns remain unaffected. The third-quarter operating results were previously released on October 8, 2026; this earnings release provides the financial statements, cash flow details, dividend information, balance sheet, and updated outlook.

Lundin Gold Inc. (LUG) reported strong operational and financial results for the quarter, though the key production figures had been pre-released on October 8. The new information contained in this release includes the financial results, a Q4 dividend of $1.14 per share, the cash balance, and a reaffirmed outlook. The results confirm the Q3 operating beat rather than introducing a new one, with full-year production and all-in sustaining cost (AISC) guidance remaining unchanged. Q4 is explicitly guided lower due to grades and maintenance.

The Q4 dividend of $1.14 per share is mechanically derived from normalized free cash flow under the stated policy and is not an unexpected capital return. The company also addressed the Ecuador tax assessment, which was originally disclosed on September 8 and is repeated here rather than newly announced. The $154 million figure, including $73 million payable and $81 million in potential fines and penalties, is material relative to the $574 million cash balance.

The stock closed at CAD 91.42 on November 4, up 6.6% from CAD 85.73 on November 3. The release was published after market close, and post-release trading is not in the provided data, so the market reaction to this specific print cannot be measured.

Lundin Gold Inc is a Canadian gold producer headquartered in Vancouver. Its flagship and only producing asset is the 100% owned Fruta del Norte gold mine in southeast Ecuador.

FDN is an underground, high-grade epithermal gold mine. It is one of the highest-grade operating gold mines in the world, with 2026 production guidance of 475,000–525,000 oz.

The asset pipeline includes FDNS, where an inaugural reserve has been declared and underground development is advancing; FDN East, where an inferred resource has been declared and development commenced in July 2026; and the Sandia copper-gold porphyry cluster, which is exploration-stage with a maiden resource targeted for early 2027.

Additional exploration targets include Bonza Sur, Quebrada Dorada, Trancaloma, Castillo, and a regional land package of about 54,000 hectares across 23 concessions along the Zamora Copper Gold Belt.

The company is a single-mine producer. That concentration is the core portfolio risk, offset by high grade, strong margins, no debt, and a substantial cash balance.

Management: Jamie Beck became President and CEO effective November 7, 2025, succeeding Ron Hochstein. Terry Smith is COO and Qualified Person for FDN technical disclosure. Chester See is CFO. The board added a Newmont nominee, Erin Workman, in May 2026.