Lundin Gold Executes Definitive Silver Stream Agreement with LunR Royalties

The most recent news (April 2, 2026) confirms the execution of definitive agreements for a life-of-mine silver stream on the Fruta del Norte (FDN) mine with LunR Royalties. Lundin Gold will receive 50,505,051 common shares of LunR (valued at approximately $670 million). Crucially, these shares will not be held by the company but will be distributed to Lundin Gold shareholders as a dividend-in-kind in Q2 2026. This follows a series of record-breaking financial results for FY 2025, where the company reported $1.78 billion in revenue and $926 million in free cash flow.

• Strategic Value Unlock: The transaction is a "Routine - Positive" event because it formalizes a previously announced binding term sheet. It effectively "spins off" the silver by-product value directly to shareholders without diluting gold exposure.
• Shareholder Returns: This is an additive return on top of an already aggressive dividend policy. In Q4 2025, the company declared a $1.15/share dividend ($0.30 fixed + $0.85 variable). The LunR distribution adds a one-time equity value of ~$2.77 per Lundin share (based on $670M / 241.8M shares).
• Operational Focus: By divesting the silver stream, management is simplifying the story to a pure-play gold producer with high margins (72% basic margin in 2025).
• Regulatory/Tax Hurdles: Shareholders in restricted jurisdictions (notably the U.S.) will receive cash instead of shares, which may create different tax implications and selling pressure on LunR shares upon distribution.

Lundin Gold operates the 100%-owned Fruta del Norte (FDN) mine in southeast Ecuador. FDN is one of the highest-grade operating gold mines in the world. - Flagship: Fruta del Norte. - Reserves: 5.85 Moz gold at 7.09 g/t (as of Dec 31, 2025). - Production: ~500,000 oz/year. - Expansion: Currently ramping to 5,500 tpd; evaluating further expansion beyond this level.