The following is a summary of the Lundin Gold Inc. (LUGDF) Q3 2024 Earnings Call Transcript:
Financial Performance:
Lundin Gold achieved record cash generation with adjusted free cash flow of $182 million from $218 million cash flow from operations in Q3 2024.
Record quarterly revenues of $323 million were realized from the sale of 125,887 ounces of gold at an average price of $2,615 per ounce.
Adjusted earnings were $136 million or $0.57 per share, significantly up from $45 million or $0.19 per share in the previous year.Strong gold production for the year, with 367,000 ounces produced by the end of Q3, on track to reach 450,000 to 500,000 ounces as per guidance.
Achieved an all-in sustaining cost (AISC) of $877 per ounce due to higher sustaining capital expenditures.
Business Progress:
Lundin Gold is committed to a substantial expansion of the process plant, expecting completion by end of the year.
The new Jameson cell technology is anticipated to enhance metallurgical recoveries by approximately 3%, aiming for a throughput increase to 5,000 tonnes per day.
Delineation drilling continues at FDNS, showcasing high-grade vein systems and promising conversion of mineral resources to reserves in upcoming estimates.
Opportunities:
Strategic exploration plans in place with at least 80,000 meters of drilling targeted for the year to expand and confirm mineral potential.
The discovery of Bonza Sur and other deposits continues to show promising expansion opportunities and the potential for new satellite deposits.
Risks:
Higher diesel consumption and operational adjustments due to prolonged drought in South America impacting hydroelectric power generation, increasing operational costs.
Potential for increased operating costs from newly acquired diesel power generators to compensate for intermittent power supply issues.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
