Lundin Gold more than doubles net income in Q3 2021

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(Kitco News) – Lundin Gold (TSX: LUG) today reported third quarter 2021 gold production of 107,663 oz from its Fruta del Norte gold mine in southeast Ecuador resulting in gold production of 320,599 oz for the nine months ended September 30, 2021.

Of the total quarterly gold production, 76,837 oz were produced as a concentrate and 30,826 oz as doré. During the same quarter in 2020, the company produced 94,250 oz of gold.

The company said that in Q3 2021, it sold a total of 111,605 oz of gold at an average realized gold price of $1,769 per oz for total gross revenues from gold sales of $197.4 million.

Income from mining operations was $89.4 million and the company generated cash flow of $92.7 million from operations and ended the quarter with a cash balance of $221.8 million.

Free cash flow for the quarter was $47.1 million or $0.20 per share and for the nine month period was $193.7 million or $0.84 per share.

Net income was $56.7 million in Q3 2021, an increase of 104% compared to Q3 2020 ($27.8 million).

President and CEO Ron Hochstein commented, “Fruta del Norte has generated significant free cash flow of $194 million in the first nine months of 2021, and at current gold prices, will continue to do so for many years. Our throughput expansion program is substantially complete and we continue to push our resource expansion drilling program. We are also focused on our regional exploration program which, based on drilling to date, has been expanded from 9,000 to 11,000 metres for 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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