Lundin Gold Reports Second Quarter 2026 Results
Lundin’s expanding district features seven porphyry discoveries alongside a world-class mill generating strong cash flow.
Lundin Gold Inc. (LUG) reported second-quarter 2026 financial results, posting revenue of $478 million and net income of $220 million, or $0.91 per share. Adjusted earnings came in at $202 million, or $0.84 per share, while free cash flow reached $96 million, or $0.40 per share.
Production totaled 118,994 ounces, a figure in line with expectations for the company’s weakest quarter. The results were based on an average gold price of $4,359 per ounce and an all-in sustaining cost (AISC) of $1,176 per ounce sold.
Management reaffirmed its full-year 2026 guidance, targeting production between 475,000 and 525,000 ounces with an AISC range of $1,110 to $1,170 per ounce.
In corporate developments, the silver stream-for-equity transaction with LunR Royalties closed, resulting in the distribution of 50.5 million LunR shares as a dividend-in-kind. The company also declared a third-quarter cash dividend of $1.08 per share, comprising a $0.30 fixed component and a $0.78 variable component.
On the exploration front, Lundin Gold identified two new porphyry centers, bringing the total count to seven. The company is targeting a maiden resource definition for Sandia in early 2027.
Lundin Gold Inc. (LUG) reported second-quarter results that were widely anticipated as the year’s weakest period due to planned plant maintenance and resequencing. Production fell to 118,994 oz, down from 139,433 oz in Q2 2025, while all-in sustaining costs (AISC) rose to $1,176/oz sold, slightly exceeding the upper end of guidance. Free cash flow was $96M, a significant sequential decline from Q1’s $349M, a drop consistent with the company’s back-end-loaded production profile and lower realized gold prices.
The company reduced its dividend from $1.21 to $1.08 per share, a move following its variable formula rather than representing a discretionary cut. Lundin reaffirmed its full-year guidance, removing uncertainty regarding its financial outlook. Additionally, two new porphyry discoveries, previously announced on July 21, 2026, are already reflected in the stock price.
While AISC ran slightly above the guided ceiling, management’s reaffirmation suggests that costs are expected to normalize in the second half of the year.
Lundin Gold Inc. is a Canadian gold producer operating the high-grade underground Fruta del Norte (FDN) mine in Ecuador. FDN produces approximately 500,000 ounces per year at an all-in sustaining cost (AISC) near the industry low end. The company has advanced the Fruta del Norte South (FDNS) deposit into a maiden reserve of 0.54 million ounces and discovered the FDN East deposit. Additionally, the company monetized a silver stream through a share dividend of LunR Royalties. Exploration on the district-scale land package has identified seven copper-gold porphyry centers. The new CEO, Jamie Beck, formerly of Filo Corp., brings a track record of discovery and asset monetization.