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(Kitco News) - Lundin Gold (TSX: LUG) yesterday reported an all-time high quarterly gold production of 140,021 ounces from its Fruta del Norte gold mine in southeast Ecuador in the first quarter 2023.
During the same quarter in 2022, the company produced 121,665 ounces of gold. Gold sales in the first quarter of 2023 totalled 134,691 ounces versus 119,282 ounces sold in the same period last year.
The company said that cash operating costs and all-in sustaining costs (AISC) for the quarter were $644 (Q1 2022: $619) and $728 (Q1 2022: $696) per oz of gold sold, respectively.
Importantly, Lundin Gold expects sustaining capital to increase “significantly” in future periods with the start of the fourth tailings dam raise and ramp up of other site infrastructure and improvement projects which is expected to result in higher AISC for the remainder of the year.
The company reported Q1 2023 net income of $51.5 million (Q1 2022: net income of $23.2 million) including a derivative loss of $15.4 million, and net of corporate, exploration, finance costs, and associated taxes on earnings.
Adjusted net earnings, which exclude the derivative loss, were $67.0 million or $0.28 per share (Q1 2022: adjusted net earnings of $57.6 million or $0.25 per share).
Lundin Gold said its performance in the first quarter of 2023 provides a “strong foundation” for the rest of the year, and the company's production guidance of 425,000 to 475,000 oz and AISC of $870 to $940 for 2023 remain unchanged.
The company also announced that its Board of Directors has declared a quarterly cash dividend of US$0.10 per common share. The dividend will be payable on June 27, 2023, to shareholders of record at the close of business on June 13, 2023.
President and CEO Ron Hochstein commented, "Our strong operating and financial results were achieved while maintaining our outstanding safety record. On the heels of an excellent quarter, the operations team at FDN recently reached the milestone of four million hours worked without a Lost Time Incident or Medical Aid Incident.
"We continue to realize increased cash flows from Fruta del Norte as a result of our commitment to operational excellence and the full repayment of the gold prepay at the start of the year. The team at FDN is doing a great job, and I expect this positive momentum to continue."
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.
