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Lundin Gold reports net income of $62.7M in Q3, touts 'another fantastic quarter' for the company

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(Kitco News) - Lundin Gold (TSX: LUG) reported Tuesday that the company sold a total of 134,640 oz of gold in Q3 2022 at an average realized gold price of $1,618 per oz for total gross revenues from gold sales of $218 million.

Lundin Gold said that income from mining operations was $83.9 million, adding that the company generated cash flow of $105 million from operations and ended the quarter with a cash balance of $304 million. Free cash flow for the quarter was $65.2 million or $0.28 per share.

Net income was $62.7 million including a derivative gain of $41.8 million, and net of corporate, exploration, finance costs, and associated taxes on earnings. Adjusted earnings, which exclude derivative gains, were $20.4 million, or $0.09 per share.

According to a press release, net income was positively impacted by the recording of gold sales from the delay of shipments of gold concentrate from the second quarter, offset by the lower gold price realized on sales in Q3 2022.

Importantly, Lundin Gold pointed out that strong performance in the first nine months of 2022 points to a strong overall result for the year.

The company expects that its production will be at or near the high end of its guidance of 430,000 to 460,000 oz and at the low end of or slightly below its AISC guidance of $820 to $870 per oz gold sold.

President and CEO Ron Hochstein commented, "Once again, I am pleased to report another fantastic quarter for Lundin Gold. We continue to strive for operational excellence at Fruta del Norte, and remain focused on further optimization, improved efficiencies and lowering costs.

"Now that the South Ventilation Raise is complete, we will have more flexibility to mine on all levels, allowing us to continue generating strong results. Payment of our first dividend was a great milestone, and we see potential to create further shareholder value through the significant free cash flow we are generating from this tier one asset. With this cash flow we will continue to evaluate restructuring and paying down our debt, funding exploration, evaluating throughput expansion and M&A opportunities."

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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