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Lundin Gold reports strong financial results on record quarterly production

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(Kitco News) - Lundin Gold (TSX: LUG) reported Wednesday that production at its Fruta del Norte mine in Ecuador amounted to 104,137 ounces ("oz") of gold in Q1 2021 (Q1 2020: 51,320 oz), at an average all-in sustaining cost of $830 per oz sold.

The company sold a total of 81,805 oz of gold, consisting of 49,198 oz of concentrate and 32,607 oz of doré at an average realized gold price of $1,765 per oz for total gross revenues from gold sales of $144.4 million.

Income from mining operations was $64.0 million and the company generated cash flow of $75.1 million from operations, or $0.33 per share. Net income was $86.0 million (Q1 2020: net loss of $9.3 million), inclusive of derivative gains and after deducting corporate, exploration, finance costs, and associated taxes on earnings. Adjusted earnings for the quarter, which exclude derivative gains, were $37.4 million, or $0.16 per share.

President and CEO Ron Hochstein commented, "2021 is off to a great start for Lundin Gold, with record quarterly production. Much of our very strong March production was sold during April. I am excited for further developments and updates in 2021 and believe that the company has positioned itself well to continue generating strong shareholder value in the future."

The company said it is on track to meet its 2021 guidance of 380,000 to 420,000 oz of gold produced. AISC for the year is projected between $770 and $830 per oz of gold sold, calculated on a basis consistent with prior periods.

Lundin Gold, headquartered in Vancouver, Canada, owns the Fruta del Norte gold mine in southeast Ecuador. Fruta del Norte is among the highest-grade operating gold mines in the world.

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