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Lundin Gold declares inaugural semi-annual dividend, increases 2022 production guidance

Kitco Media
By Vladimir Basov
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(Kitco News) - On Tuesday, Lundin Gold (TSX: LUG) reported Q2 2022 production of 111,890 oz of gold, up 3% compared to 108,799 oz produced in Q2 2021.

The company also reported all-in sustaining costs ("AISC") of $864 per oz sold in Q2 2022, compared to AISC of $720 per oz a year before.

Importantly, Lundin Gold said it is increasing its 2022 production guidance to between 430,000 and 460,000 from 405,000 to 445,000 oz and decreasing its AISC guidance to between $820 and $870 from $860 to $930.

The company generated Q2 2022 cash flow of $60.7 million from operations and ended the quarter with a cash balance of $301 million. Free cash flow for the quarter was $21.2 million or $0.09 per share, compared to a free cash flow of $103.0 million in Q2 2021.

The company said its Q2 2022 net income was $56.0 million, compared to a net income of $50.0 million in Q2 2021.

More importantly, Lundin Gold announced that its Board of Directors has declared an inaugural semi-annual cash dividend of US$0.20 per common share. The first semi-annual dividend will be payable on September 13, 2022, to shareholders of record at the close of business on August 24, 2022.

President and CEO Ron Hochstein stated, "As a result of strong operating results in the first half of 2022 and confidence that our team can continue to deliver excellent performance, we are increasing production guidance and reducing AISC guidance.

"Fruta del Norte continues to generate significant operating cash flow, which allows us to expand our exploration programs, pay down our debt aggressively and declare our inaugural semi-annual dividend equivalent to an annual yield of approximately 5.6%2. The company is in a strong position, and I am excited to take this momentum into the second half of the year."

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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Kitco Media

Vladimir Basov

Vladimir (PhD, MEng in Mining) is a professional mining engineer, scientist and analyst that has more than 20 years of practical in-field and research experience. He is particularly interested in collecting, processing baseline data and writing insightful data-driven mining industry analytics, articles, statistical and research reports.

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