FULLTEXT DEL 1 AV 1
Kvartalsrapport Q2 2025
===== SIDA 1 =====
NEWS RELEASE
Vancouver, August 7, 2025
Lundin Gold Inc. Suite 2800, Four Bentall Centre Phone: +1 604 689 7842 lundingold.com
1055 Dunsmuir Street Fax: +1 604 689 4250 Email: info@lundingold.com
Vancouver, BC, Canada, V7X 1L2
LUNDIN GOLD REPORTS SECOND QUARTER 2025 RESULTS
Exceptional operating performance drives record revenues and free cash flow
Lundin Gold Inc. (TSX: LUG; Nasdaq Stockholm: LUG; OTCQX: LUGDF) ("Lundin Gold" or the "Company") today
announced its financial results for the second quarter of 2025, featuring record revenues of $453 million and net
income of $197 million ($0.82 per share). Free cash flow1 of $236 million ($0.98 per share) was driven by strong
gold production of 139,433 ounces (“oz”), with 136,737 oz sold at an average realized gold price1 of $3,361 per
oz, at low cash operating costs1 of $756 and all-in sustaining costs1 (“AISC”) of $927 per oz sold. The Company
also announced cash dividends totaling $0.79 per share (approximately $190 million) comprised of the fixed
quarterly dividend of $0.30 per share and the variable quarterly dividend of $0.49 per share, to be paid at the
end of the third quarter. All dollar amounts are stated in US dollars unless otherwise indicated.
Ron Hochstein, President and CEO commented, "The second quarter of 2025 delivered outstanding results for
Lundin Gold, featuring record revenues and record free cash flow. This was driven by excellent gold production,
sales, and a robust realized gold price. Our mill achieved impressive throughput of 5,064 tpd with improved
recoveries, a testament to our team's operational excellence.
Given this strong performance and outlook, we've elevated the lower end of our 2025 production guidance from
475,000 to 490,000 oz while maintaining the upper end at 525,000 oz. We also expect to remain within the upper
end of our cash operating cost
1 and AISC1 guidance for the year. We are confident that our continued efforts to
reduce costs and improve mill throughput will allow us to offset the impact of rising gold prices on royalties and
profit sharing payable to employees.
As a direct result of our strong Q2 financial performance, we are pleased to declare sector leading dividends
totaling $0.79 per share, comprised of both our fixed and variable components, for payment in the third quarter.
This demonstrates the effectiveness of our new dividend policy in returning capital to shareholders during periods
of strong free cash flow, while still allowing us to strategically invest in our long -term growth initiatives. Lundin
Gold remains in a formidable financial position, poised for continued success."
OPERATING AND FINANCIAL RESULTS SUMMARY
The following two tables provide an overview of key operating and financial results.
1 Refer to “Non-IFRS Measures” section.
===== SIDA 2 =====
2
Three months ended
June 30,
Six months ended
June 30,
2025 2024 2025 2024
Tonnes ore mined 448,627 419,173 851,848 838,931
Tonnes ore milled 460,820 424,899 858,979 838,495
Average mill throughput (tpd) 5,064 4,669 4,745 4,607
Average head grade (g/t) 10.4 11.0 10.4 10.2
Average recovery 90.9% 89.0% 89.8% 88.6%
Gold ounces produced 139,433 133,062 256,746 244,634
Gold ounces sold 136,737 129,396 254,378 238,312
Three months ended
June 30,
Six months ended
June 30,
2025 2024 2025 2024
Revenues ($’000) 452,880 301,431 809,225 528,172
Income from mining operations ($’000) 314,161 171,757 547,707 284,994
Earnings before interest, taxes, depreciation, and amortization ($’000)1 318,840 457,069 560,342 568,681
Adjusted earnings before interest, taxes, depreciation, and amortization ($’000)1 318,840 195,401 560,342 326,857
Net income ($’000) 196,731 119,291 350,231 161,188
Basic income per share ($) 0.82 0.50 1.46 0.68
Cash provided by operating activities ($’000) 254,782 144,169 449,090 252,083
Free cash flow ($’000)1 235,670 (123,427) 406,453 (41,168)
Free cash flow per share ($)1 0.98 (0.52) 1.69 (0.17)
Average realized gold price ($/oz sold)1 3,361 2,379 3,231 2,270
Cash operating cost ($/oz sold)1 756 725 773 730
All-in sustaining costs ($/oz sold)1 927 875 918 872
Adjusted earnings ($‘000)1 196,731 98,938 350,231 156,734
Adjusted earnings per share ($)1 0.82 0.41 1.46 0.66
Dividends paid per share ($) 0.86 0.10 1.16 0.20
SECOND QUARTER HIGHLIGHTS
Financial Results
• Gold sales totalled 136,737 oz, consisting of 89,615 oz in concentrate and 47,122 oz as doré, resulting in
gross revenues of $460 million at an average realized gold price 1 of $3,361 per oz. Average realized gold
price1 was positively impacted by rising gold prices on provisionally priced gold sales which exceeded fair
value estimates as at March 31, 2025. Net of treatment and refining charges, revenues for the quarter were
$453 million.
• Average realized gold price
1 includes $3,276 per ounce of gross price received and a favourable impact of
$85 per ounce from adjustments to provisionally priced sales.
• Cash operating costs 1 and AISC1 were $756 and $927 per oz of gold sold, respectively. Sustaining capital
expenditures1 are expected to increase during the second half of 2025 with the continued ramp up of the
fifth tailings dam raise and other site infrastructure improvement projects.
• The Company generated cash from operating activities of $255 million and free cash flow 1 of $236 million,
or $0.98 per share, resulting in a cash balance of $493 million at June 30, 2025 following quarterly dividend
and special dividend payments of $107 million and $100 million, respectively.
1 Refer to “Non-IFRS Measures” section.
===== SIDA 3 =====
3
• EBITDA1 was $319 million while income from mining operations was $314 million which, after deducting
corporate, exploration, and taxes, resulted in net income of $197 million for the quarter or $0.82 per share.
Production Results
• The mine ramped up during the second quarter to keep pace with the mill resulting in a record 448,627
tonnes mined at an average grade of 9.3 g/t.
• The mill processed 460,820 tonnes at an average throughput rate of 5,064 tpd, with improved recoveries
of 90.9%, achieving the process plant expansion operational targets. The average grade of ore milled was
10.4 g/t.
• Gold production was 139,433 oz which was comprised of 92,242 oz in concentrate and 47,191 oz as doré.
Outlook
• As a result of the strong operating performance in the first half of the year , the Company is updating its
2025 production guidance from 475,000 to 525,000 oz to 490,000 to 525,000 oz. Due to mine sequencing,
the Company expects a reduction in average head grade during the second half of the year.
• The Company expects its cash operating cost1 and AISC1 to be near the upper end of guidance of $730 to
$790 and $935 to $995 per oz sold respectively. While the significant increase in gold price has led to record
financial performance during the first half of 2025, it has also resulted in increased royalties and profit
sharing to employees, metrics that impact cash operating cost
1 and AISC1. Continued efforts to reduce cost
and improvements to mill throughput is expected to allow the Company to remain within the upper end of
its cost guidance even with average realized gold prices 1 of $3,231 per oz during the first half of 2025,
compared to its guidance assumption of $2,500 per oz.
• Sustaining capital expenditures1 are expected to increase over the remainder of the year and come in at the
previously guided $75 to $85 million.
• The near-mine underground drilling program is expected to continue to advance at FDNS where the primary
focus is the conversion and expansion of this new system. The surface drilling program is expected to
continue to explore the recently discovered Tranc aloma copper-gold porphyry mineralization, expand the
mineralization along the Bonza Sur and FDN East sectors, and advance on new sectors around FDN.
• Seventeen rigs are currently turning across the conversion and near -mine exploration programs. The
Company increased the near -mine drilling program by 18,000 metres to a minimum of 83,000 metres to
accelerate the definition of near-mine targets and the co nversion drilling program from 15,000 metres to
approximately 25,000 metres. A minimum of 108,000 metres of drilling are planned across the conversion
and near-mine drilling programs for 2025.
• Mine engineering work is underway on FDNS to evaluate geotechnical, mine design, metallurgical
characteristics and infrastructure needs with the goal of integrating FDNS into FDN’s long-term mine plan
in 2026.
• The regional exploration program is expected to continue to focus on the unexplored large package of
mineral concessions located on a highly prospective environment which hosts the Fruta del Norte deposit.
1 Refer to “Non-IFRS Measures” section.
===== SIDA 4 =====
4
This is the first year of a new three -year greenfield strategy to identify new areas for exploration drilling.
The 2025 program includes a geophysical magnetic survey and a geochemical sampling program.
• The total estimated cost of the near-mine and regional program is $47 million for the year. This represents
the largest drill program ever completed on the land package that hosts the FDN deposit.
• Under its dividend policy, the Company anticipates continuing to declare quarterly minimum dividends of
$0.30 per share, equivalent to approximately $300 million annually based on currently issued and
outstanding shares, plus a variable dividend equal to a n amount based on at least 50% of the Company’s
normalized free cash flow, after the deduction of the fixed dividend.
Liquidity and Capital Resources
At the end of June 30, 2025, the Company is in a strong financial position.
(in thousands of U.S. dollars) As at June 30,
2025
As at December 31,
2024
Financial Position:
Cash 493,372 349,200
Working capital 562,273 458,944
Total assets 1,618,899 1,527,481
Long-term debt - -
As at June 30, 2025, the Company had cash of $493 million and a working capital balance of $562 million
compared to cash of $349 million and a working capital balance of $459 million at December 31, 2024. The
change in cash during the 2025 Period was primarily due to cash generated from operating activities of $449
million and proceeds from the exercise of stock options and anti -dilution rights totalling $17.7 million. This is
offset by dividends paid of $280 million and capital expenditures of $42.6 million.
Capital Expenditures
Sustaining Capital
• Sustaining capital expenditures
1 during the second quarter were $15.9 million.
• Construction of the fifth raise of the tailings dam started in the second quarter with progress to date
consistent with plan. Completion during the first quarter of 2026 remains as expected.
• Commissioning of the four additional diesel-powered generators was completed during the second quarter,
and they are now operational. In the event of a power disruption from the national grid, the additional
generators are expected to allow the FDN process plant to run slightly below capacity.
• Other projects that advanced during the quarter included improvements to the wastewater treatment
plants, construction of camp and administration building, as well as enhancements to the South Portal.
• The 2025 conversion drilling program is focused on FDNS, located in the south portion of the FDN deposit.
During the second quarter, the conversion drilling program completed approximately 7,085 metres across
50 holes with three rigs currently turning.
o The completed holes confirmed the mineralization continuity and indicated higher grade zones
within the vein system. Some conversion drill holes also intercepted mineralized zones outside
of the existing geological model.
===== SIDA 5 =====
5
o A complete table of the conversion drilling results received to date can be found in Lundin Gold’s
press release dated July 31, 2025.
o The conversion drilling program has been expanded to 25,000 metres from 15,000 metres.
Health and Safety
During the second quarter there were no Lost Time Incidents and no Medical Aid Incidents. The Total Recordable
Incident Rate across the Company was 0.00 per 200,000 hours worked for the quarter and 0.10 for the first six
months of 2025.
Community
Lundin Gold sponsored community projects continued to advance well in the second quarter of 2025. One of
the Company’s most impactful programs, run by the non -governmental organization Educación para Compartir
(“EPC”), has focused on mental health and wel l-being in our local communities since its inception in November
2023. During the second quarter, approximately 957 counselling sessions were provided, with an intake of
approximately 55 new patients. As of the end of June, the sports academy component o f the program had 359
youth registered in extra -curricular activities, including English studies, basketball, soccer, dance, music and
boxing. During the quarter, Lundin Gold committed to the second phase of the EPC program, which is planned
to run from July 2025 to December 2026. This second phase will build on the previous phase and seek to increase
its reach and impact.
Engagement with El Pangui, Paquisha, Zamora, Yantzaza and Los Encuentros local governments continues to
support rural road maintenance, road emergencies caused by extreme weather events, community wellbeing
and regional exploration activities. During the quarter, the Company committed to several significant projects,
such as improvements to the water system in El Pangui Canton and the installation and electricity network
expansion in the Paquisha Canton.
Lundin Gold continued to participate in the community roundtable process. Six separate thematic roundtables
were held in May. Approximately 200 individuals participated in these sessions, including local vendors, local
authorities and Lundin Gold personnel.
Local businesses receive ongoing support from the Company, in conjunction with the Lundin Foundation. The
local companies that participate in the Lundin Foundation’s supplier development program continued to provide
products and services to FDN, while also advancing growth strategies. The Lundin Fou ndation continued to
support the third cohort of its successful Soy Emprendedora program. In furtherance of the Company’s long -
standing relationship with the Shuar Indigenous Peoples, Lundin Gold and the Lundin Foundation continued to
advance the implementation of a Shuar local supplier initiative for FDN.
===== SIDA 6 =====
6
EXPLORATION
Near-Mine Exploration Program
During the second quarter of 2025, the Company completed a total of 19,788 metres across 35 holes from
surface and underground.
The underground near mine drilling program focused on potential extensions of the FDNS deposit, which remains
open for expansion in the north and along the south extensions where two underground rigs are currently
turning. The underground drilling program continued to advance in the quarter at FDN East and is currently
exploring the mineralization continuity in the central portion of this target. As at the date of this press release,
three underground rigs are active in the near mine drilling program. In addition to the drilling programs, mine
engineering work is underway on FDNS to evaluate geotechnical, mine design, metallurgical characteristics and
infrastructure needs with the goal of integrating FDNS into FDN’s long-term mine plan in 2026.
The surface near mine drilling program advanced in the recently discovered copper-gold mineralization at the
Trancaloma target, while also continuing the delineation of the Bonza Sur deposit and drilling on new sectors
like the Sandia porphyry, located a few kilometres east from the FDN deposit. As at the date of this press release,
11 surface rigs are drilling, with four of them at Trancaloma, one at Sandia, one below FDN depth, one at FDN
East, one at Bonza Sur, and three testing new sectors.
• At Trancaloma, located on the east border of Bonza Sur, the drilling program confirmed the extension of the
recently discovered copper-gold porphyry mineralization. In the eastern portion of the target, the drilling
program followed up on drilling results from the first quarter, extended the mineralized system along the
northeastern and southwestern directions, and identified areas for further expansion. The drilling program
also advanced in the western portion of Trancaloma, where another near surface copper mineralized zone
was identified.
• At Bonza Sur, drill holes were completed along south and southeastern extensions and confirmed the
deposit’s continuity. In the south end of the deposit recent drilling suggests further potential for expansion
along this direction. Toward the southeastern extension, the drilling program advanced along the limit with
the Trancaloma porphyry.
• At FDN East, the surface drilling program advanced in conjunction with the underground program and
continued to intercept the mineralization continuity in the central part of the target and indicated areas for
further expansion potential toward the north and south direction.
• At FDN, directional drilling technology has been employed in the surface drilling program to enhance
precision for the target testing in the deeper portions of the deposit. Throughout the program, drill holes
tested the mineralization continuity at distinct depths along the central portion of FDN.
• The near-mine exploration program continues to advance in unexplored areas close to FDN. A systematic
exploration program employing geochemical and geophysical surveys and geological mapping advanced on
potential targets. At Sandia, initial drilling results revealed the occurrence of a new shallow and wide copper-
gold porphyry mineralization.
A table of second quarter 2025 near mine results for the FDNS, FDN East, Bonza Sur and Trancaloma and Sandia
targets received to date can be found in Lundin Gold’s press releases dated July 31 and August 5, 2025.
===== SIDA 7 =====
7
Regional Exploration Program
The Company advanced its multi-year regional exploration program during the second quarter of 2025. The
program is expected to cover approximately 54,000 hectares on 23 of the Company’s concessions along the
Zamora Copper Gold Belt, a high potential geological setting which hosts the Fruta del Norte mine and several
large copper gold projects. The exploration program continues to advance in the Gamora district, located 65
kilometres north of FDN and approximately four kilometres north of the Mirador copper gold mine. The Gamora
district comprises multiple exploration sectors that exhibit geological features similar to those found in copper-
gold porphyry systems. Geological mapping and geochemical sampling programs were completed in distinct
parts of the district during the quarter and resulted in the identification of several new potential targets for
further evaluation. Furthermore, exploration started at the Soberano concession, located approximately 22
kilometres southwest from the FDN Mine, where geological mapping followed by soil and rock sampling were
completed.
CORPORATE
• The Company published its 2024 Sustainability Report in April which marks its second year of transition
towards aligning with the European Sustainability Reporting Standards.
• The Company paid dividends during the quarter as follows:
o A special dividend of $0.41 per share on June 9, 2025 (June 12, 2025 for shares trading on Nasdaq
Stockholm) for a total of $100 million.
o A quarterly dividend of $0.45 per share, comprised of the fixed dividend of $0.30 per share and variable
dividend of $0.15 per share, on June 25, 2025 (June 30, 2025 for shares trading on Nasdaq Stockholm)
for a total of $107 million.
• With the release of its second quarter 2025 results, the Company has declared cash dividends totaling $0.79
per share, comprised of the fixed dividend of $0.30 per share and variable dividend of $0.49 per share,
payable on September 25 , 2025 (September 30, 2025 for shares trading on Nasdaq Stockholm) to
shareholders of record at the close of business on September 10, 2025. Pursuant to the Company’s dividend
policy, the variable dividend was calculated based on 50% of the Company’s normalized free cash flow, after
deducting the fixed dividend paid, during the second quarter of 2025.
Qualified Persons
The technical information relating to Fruta del Norte contained in this press release has been reviewed and
approved by Terry Smith P . Eng, Lundin Gold’s COO, who is a Qualified Person in accordance with the
requirements of National Instrument 43 -101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) . The
disclosure of exploration information contained in this press release was prepared by Andre Oliveira P.Geo, Vice
President, Exploration of the Company, who is a Qualified Person in accordance with the requirements of NI 43-
101.
===== SIDA 8 =====
8
Webcast and Conference Call
The Company will host a conference call and webcast to discuss its results on August 8 at 5:30 a.m. PT, 8:30 a.m.
ET, 2:30 p.m. CET.
Conference Call Dial-In Numbers:
Participant Dial-In North America: +1 437-900-0527
Toll-Free Participant Dial-In North America: +1 888-510-2154
Participant Dial-In Sweden: +46 8 505 24649
Conference ID: Lundin Gold / 02256
A link to the webcast will be available on the Company’s website, www.lundingold.com.
A replay of the conference call will be available two hours after its completion until August 15, 2025.
Toll Free North America Replay Number: +1 888-660-6345
International Replay Number: +1 416-764-8677
Replay passcode: 02256 #
About Lundin Gold
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.
The Company's board and management team have extensive expertise and are dedicated to operating Fruta del
Norte responsibly. The Company operates with transparency and in accordance with international best
practices. Lundin Gold is committed to delivering value to its shareholders through operational excellence and
growth, while simultaneously providing economic and social benefits to impacted communities, fostering a
healthy and safe workplace and minimizing the environmental impact. Furthermore, Lundin Gold is focused on
continued exploration on its extensive and highly prospective land package to identify and develop new resource
opportunities to ensure long-term sustainability and growth for the Company and its stakeholders.
Non-IFRS Measures
This news release refers to certain financial measures, such as average realized gold price per oz sold, EBITDA,
adjusted EBITDA, cash operating cost per oz sold, all-in sustaining cost, sustaining capital expenditures, free cash
flow, free cash flow per share, and adjusted earnings, which are not measures recognized under IFRS and do not
have a standardized meaning prescribed by IFRS . These measures may differ from those made by other
companies and accordingly may not be comparable to such measures as reported by other companies. These
measures have been derived from the Company's financial statements because the Company believes that they
are of assistance in the understanding of the results of operations and its financial position. Certain additional
disclosures for these specified financial measures have been incorporated by reference and can be found on
page 12 of the Company's MD&A for the year ended August 7, 2025 available on SEDAR+.
===== SIDA 9 =====
9
Additional Information
The information in this release is subject to the disclosure requirements of Lundin Gold under the EU Market
Abuse Regulation. This information was publicly communicated on August 7 , 2025 at 4:30 p.m. Pacific Time
through the contact persons set out below.
For more information, please contact
Ron F. Hochstein Brendan Creaney
President and CEO Vice President, Corporate Development & Investor Relations
Tel (Canada): +1-604-806-3589 Tel: +1-604-376-4595
ron.hochstein@lundingold.com brendan.creaney@lundingold.com
Caution Regarding Forward-Looking Information and Statements
Certain of the information and statements in this press release are considered “forward -looking information” or “forward -looking
statements” as those terms are defined under Canadian securities laws (collectively referred to as “forward- looking statements”). Any
statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives,
assumptions or future events or performance (often, but not always, identified by words or phrases such as “believes”, “antic ipates”,
“expects”, “is expected”, “scheduled”, “estimates”, “pending”, “intends”, “plans”, “forecasts”, “targets”, or “hopes”, or variations of such
words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “will”, “should” “might”, “will be taken”,
or “occur” and similar expressions) are not statements of historical fact and may be forward-looking statements. By their nature, forward-
looking statements and information involve assumptions, inherent risks and uncertainties, many of which are difficult to predict, and are
usually beyond the control of management, that could cause actual results to be materially di fferent from those expressed by these
forward-looking statements and information . Lundin Gold believes that the expectations reflected in this forward -looking information
are reasonable, but no assurance can be given that these expectations will prove to be correct. Forward-looking information should not
be unduly relied upon. This information speaks only as of the date of this press release, and the Company will not necessarily update this
information, unless required to do so by securities laws.
This press release contains forward- looking information in several places, such as in statements relating to to the Company’s 2025
production outlook, including estimates of gold production, grades recoveries and AISC; operating plans; expected sales receipts and cash
flow forecasts; gold price; estimated capital costs and sustaining capital; estimated costs related to the Company’s near-mine and regional
drilling programs; the Company’s ability to mitigate the impacts on its operations of a power disruption from the national grid; benefits
of the Company’s community programs; the Company’s declaration and payment of dividends pursuant to its dividend policy; and the
timing and the success of its drill program at Fruta del Norte and its other exploration activities; and estimates of Mineral Resources and
Reserves at Fruta del Norte.
Lundin Gold’s actual results could differ materially from those anticipated. Factors that could cause actual results to differ materially
from any forward-looking statement or that could have a material impact on the Company or the trading price of its sh ares include risks
relating to: instability in Ecuador; community relations; reliability of power supply; tax changes in Ecuador; security; availability of
workforce and labour relations; mining operations; waste disposal and tailings; environmental compliance; illegal mining; Mineral Reserve
and Mineral Resource estimates; infrastructure; regulatory risk; government or regulatory approvals; forecasts relating to production and
costs; gold price; dependence on a single mine; shortages of critical resources; climate change; exploration and development; control of
Lundin Gold; dividends; information systems and cyber security; title matters and surface rights and access; health and safety; human
rights; employee misconduct; measures to protect biodiversity, endangered species and critical habitats; global economic conditions;
competition for new projects; key talent recruitment and retention; market price of the Company’s shares; social media and reputation;
insurance and uninsured risks; pandemics, epidemics or infectious disease outbreak; conflicts of interest; violation of anti -bribery and
corruption laws; internal controls; claims and legal proceedings; and reclamation obligations.
There can be no assurance that such statements will prove to be accurate, as Lundin Gold's actual results and future events could differ
materially from those anticipated in this forward-looking information as a result of the factors discussed under the heading “Risk Factors”
in the Company’s Annual Information Form dated March 17, 2025 available at www.sedarplus.ca.
===== SIDA 10 =====
Q2 2025
===== SIDA 11 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Six Months Ended June 30, 2025
(All dollar amounts are stated in U.S. dollars unless otherwise indicated. Tables are expressed in thousands of U.S.
dollars, except share and per share amounts)
1
INTRODUCTION
This Management’s Discussion and Analysis (“MD&A”) of Lundin Gold Inc. and its subsidiaries (collectively, “Lundin
Gold” or the “Company”) provides a detailed analysis of the Company’s business and compares its financial results for
the three and six months ended June 30, 2025 with those of the same period from the previous year.
This MD&A is dated as of August 7, 2025 and should be read in conjunction with the Company’s unaudited condensed
consolidated interim financial statements and related notes thereto for the three and six months ended June 30, 2025,
which are prepared in accordance with IAS 34: Interim Financial Statements, and the Company’s audited annual
consolidated financial statements and related notes thereto, which are prepared in accordance with International
Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Accounting
Standards”), and the MD&A for the fiscal year ended December 31, 2024. References to the “2025 Period” and “2024
Period” relate to the six months ended June 30, 2025 and June 30, 2024, respectively.
Other continuous disclosure documents, including the Company’s press releases, quarterly and annual reports, and
annual information form, are available through its filings with the securities regulatory authorities in Canada at
www.sedarplus.ca.
Lundin Gold, headquartered in Vancouver, Canada, is committed to positive and long-lasting impact on our host
communities, while delivering significant value to stakeholders through operational excellence, cash flow generation,
focused growth and returning capital to shareholders. Lundin Gold currently operates its 100% owned Fruta del Norte
(“Fruta del Norte” or “FDN”) gold mine in southeast Ecuador, which is one of the highest-grade gold mines in production
in the world today. The Company also owns a portfolio of highly prospective exploration properties close to FDN.
SECOND QUARTER 2025 HIGHLIGHTS AND ACTIVITIES
The second quarter of 2025 was highlighted by record financial performance starting with quarterly revenues of $453
million from the sale of 136,737 ounces (“oz”) of gold at an average realized gold price1 of $3,361 per oz. From this,
EBITDA1 and net income of $319 million and $197 million, respectively, were achieved. Cash generated from operating
activities of $255 million and free cash flow1 of $236 million or $0.98 per share were record achievements
notwithstanding annual income tax and profit sharing payments of $95 million. As a result, pursuant to the Company’s
dividend policy, Lundin Gold has declared cash dividends totaling $0.79 per share, comprised of the fixed quarterly
dividend of $0.30 per share and the variable quarterly dividend of $0.49 per share, to be paid at the end of the third
quarter.
Average mill throughput for a quarterly period exceeded 5,000 tonnes per day (“tpd”) for the first time with record
average recoveries of 90.9% resulting in gold production of 139,433 oz which demonstrates the impact of the process
plant expansion project completed in late February. Cash operating costs1 and all-in sustaining costs (“AISC”)1 of $756
and $927 per oz sold, respectively, were realized. While record high gold prices have bolstered the Company’s financial
performance, they have also increased royalties paid which affect cash operating costs1 and AISC1. Given this strong
performance and outlook, the Company elevated the lower end of its 2025 production guidance from 475,000 to
490,000 oz while maintaining the upper end at 525,000 oz. With continued efforts to reduce costs and improve mill
throughput, the Company maintains its cash operating cost1 and AISC1 guidance even with average realized gold
prices1 equaling $3,231 per oz during the first half of 2025, compared to its guidance assumption of $2,500 per oz.
Construction of the fifth tailings dam raise began in the second quarter resulting in increased sustaining capital
expenditures, a figure included in the AISC1 calculation. Construction activities are expected to peak during the fourth
quarter with completion expected during the first quarter of 2026.
On the Company’s exploration programs, results continue to demonstrate significant exploration potential and provide
a growing pipeline of targets around FDN. At Trancaloma, the drilling program confirmed the extension of the recently
discovered copper-gold porphyry system and highlight the potential for other porphyries nearby. At Bonza Sur, recent
drilling confirmed the deposit’s continuity and suggests further potential for expansion. The conversion program at FDN
South (“FDNS”) indicates high grade zones within the vein system with additional mineralized zones intercepted outside
1 Refer to “Non-IFRS Measures” section.
===== SIDA 12 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Six Months Ended June 30, 2025
(All dollar amounts are stated in U.S. dollars unless otherwise indicated. Tables are expressed in thousands of U.S.
dollars, except share and per share amounts)
2
the existing geological model. In addition to the drilling programs, mine engineering work is underway to evaluate
FDNS with the goal of integrating FDNS into FDN’s long-term mine plan in 2026.
The following two tables provide an overview of key operating and financial results achieved during the second quarter
of 2025 compared to the same period in 2024.
Three months ended
June 30,
Six months ended
June 30,
2025 2024 2025 2024
Tonnes ore mined 448,627 419,173 851,848 838,931
Tonnes ore milled 460,820 424,899 858,979 838,495
Average mill throughput (tpd) 5,064 4,669 4,745 4,607
Average mill head grade (g/t) 10.4 11.0 10.4 10.2
Average recovery 90.9% 89.0% 89.8% 88.6%
Gold ounces produced 139,433 133,062 256,746 244,634
Gold ounces sold 136,737 129,396 254,378 238,312
Three months ended
June 30,
Six months ended
June 30,
2025 2024 2025 2024
Revenues ($’000) 452,880 301,431 809,225 528,172
Income from mining operations ($’000) 314,161 171,757 547,707 284,994
Earnings before interest, taxes, depreciation, and
amortization ($’000)1
318,840
457,069
560,342
568,681
Adjusted earnings before interest, taxes,
depreciation, and amortization ($’000)1
318,840
195,401
560,342
326,857
Net income ($’000) 196,731 119,291 350,231 161,188
Basic income per share ($) 0.82 0.50 1.46 0.68
Cash provided by operating activities ($’000) 254,782 144,169 449,090 252,083
Free cash flow ($’000)1 235,670 (123,427) 406,453 (41,168)
Free cash flow per share ($)1 0.98 (0.52) 1.69 (0.17)
Average realized gold price ($/oz sold)1 3,361 2,379 3,231 2,270
Cash operating cost ($/oz sold)1 756 725 773 730
All-in sustaining costs ($/oz sold)1 927 875 918 872
Adjusted earnings ($‘000)1 196,731 98,938 350,231 156,734
Adjusted earnings per share ($)1 0.82 0.41 1.46 0.66
Dividends paid per share ($) 0.86 0.10 1.16 0.20
1 Refer to “Non-IFRS Measures” section.
===== SIDA 13 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Six Months Ended June 30, 2025
(All dollar amounts are stated in U.S. dollars unless otherwise indicated. Tables are expressed in thousands of U.S.
dollars, except share and per share amounts)
3
Following the buy out of the stream loan credit facility (the “Stream Facility”) and offtake agreement (the “Offtake”) from
Newmont Corporation at the end of the second quarter of 2024, there were no adjustments between net income and
adjusted earnings1 as well as earnings before interest, taxes, depreciation, and amortization (“EBITDA”)1 and adjusted
EBITDA1 during 2025.
Operating and Financial Results During the Second Quarter of 2025
The mine ramped up during the second quarter to keep pace with the mill resulting in a record 448,627 tonnes
mined at an average grade of 9.3 g/t.
The mill processed 460,820 tonnes at an average throughput rate of 5,064 tpd, with improved recoveries of
90.9%, achieving the process plant expansion operational targets. The average grade of ore milled was 10.4
g/t.
Gold production was 139,433 oz which was comprised of 92,242 oz in concentrate and 47,191 oz as doré.
Gold sales totaled 136,737 oz, consisting of 89,615 oz in concentrate and 47,122 oz as doré, resulting in gross
revenues of $460 million at an average realized gold price1 of $3,361 per oz. Average realized gold price1
was positively impacted by rising gold prices on provisionally priced gold sales which exceeded fair value
estimates as at March 31, 2025. Net of treatment and refining charges, revenues for the quarter were $453
million.
Average realized gold price1 includes $3,276 per ounce of gross price received and a favourable impact of
$85 per ounce from adjustments to provisionally priced sales.
Cash operating costs1 and AISC1 were $756 and $927 per oz of gold sold, respectively. Sustaining capital
expenditures1 are expected to increase during the second half of 2025 with the continued ramp up of the fifth
tailings dam raise and other site infrastructure improvement projects.
The Company generated cash from operating activities of $255 million and free cash flow1 of $236 million, or
$0.98 per share, resulting in a cash balance of $493 million at June 30, 2025 following quarterly dividend and
special dividend payments of $107 million and $100 million, respectively.
EBITDA1 was $319 million while income from mining operations was $314 million which, after deducting
corporate, exploration, and taxes, resulted in net income of $197 million for the quarter or $0.82 per share.
Capital Expenditures
Sustaining Capital
Sustaining capital expenditures1 during the second quarter were $15.9 million.
Construction of the fifth raise of the tailings dam started in the second quarter with progress to date consistent
with plan. Completion during the first quarter of 2026 remains as expected.
Commissioning of the four additional diesel-powered generators was completed during the second quarter,
and they are now operational. In the event of a power disruption from the national grid, the additional
generators are expected to allow the FDN process plant to run slightly below capacity.
Other projects that advanced during the quarter included improvements to the wastewater treatment plants,
construction of camp and administration building, as well as enhancements to the South Portal.
The 2025 conversion drilling program is focused on FDNS, located in the south portion of the FDN deposit.
During the second quarter, the conversion drilling program completed approximately 7,085 metres across 50
holes with three rigs currently turning.
o The completed holes confirmed the mineralization continuity and indicated higher grade zones within
the vein system. Some conversion drill holes also intercepted mineralized zones outside of the
existing geological model.
o A complete table of the conversion drilling results received to date can be found in Lundin Gold’s
press release dated July 31, 2025.
o The conversion drilling program has been expanded to 25,000 metres from 15,000 metres.
1 Refer to “Non-IFRS Measures” section.
===== SIDA 14 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Six Months Ended June 30, 2025
(All dollar amounts are stated in U.S. dollars unless otherwise indicated. Tables are expressed in thousands of U.S.
dollars, except share and per share amounts)
4
Health and Safety and Community
Health and Safety
During the second quarter there were no Lost Time Incidents and no Medical Aid Incidents.
The Total Recordable Incident Rate across the Company was 0.00 per 200,000 hours worked for the quarter
and 0.10 for the first six months of 2025.
Community
Lundin Gold sponsored community projects continued to advance well in the second quarter of 2025. One of the
Company’s most impactful programs, run by the non-governmental organization Educación para Compartir (“EPC”),
has focused on mental health and well-being in our local communities since its inception in November 2023. During
the second quarter, approximately 957 counselling sessions were provided, with an intake of approximately 55 new
patients. As of the end of June, the sports academy component of the program had 359 youth registered in extra-
curricular activities, including English studies, basketball, soccer, dance, music and boxing. During the quarter, Lundin
Gold committed to the second phase of the EPC program, which is planned to run from July 2025 to December 2026.
This second phase will build on the previous phase and seek to increase its reach and impact.
Engagement with El Pangui, Paquisha, Zamora, Yantzaza and Los Encuentros local governments continues to support
rural road maintenance, road emergencies caused by extreme weather events, community wellbeing and regional
exploration activities. During the quarter, the Company committed to several significant projects, such as improvements
to the water system in El Pangui Canton and the installation and electricity network expansion in the Paquisha Canton.
Lundin Gold continued to participate in the community roundtable process. Six separate thematic roundtables were
held in May. Approximately 200 individuals participated in these sessions, including local vendors, local authorities and
Lundin Gold personnel.
Local businesses receive ongoing support from the Company, in conjunction with the Lundin Foundation. The local
companies that participate in the Lundin Foundation’s supplier development program continued to provide products
and services to FDN, while also advancing growth strategies. The Lundin Foundation continued to support the third
cohort of its successful Soy Emprendedora program. In furtherance of the Company’s long-standing relationship with
the Shuar Indigenous Peoples, Lundin Gold and the Lundin Foundation continued to advance the implementation of a
Shuar local supplier initiative for FDN.
Exploration
Near-Mine Exploration Program
During the second quarter of 2025, the Company completed a total of 19,788 metres across 35 holes from surface and
underground.
The underground near mine drilling program focused on potential extensions of the FDNS deposit, which remains open
for expansion in the north and along the south extensions where two underground rigs are currently turning. The
underground drilling program continued to advance in the quarter at FDN East and is currently exploring the
mineralization continuity in the central portion of this target. As at the date of this MD&A, three underground rigs are
active in the near mine drilling program. In addition to the drilling programs, mine engineering work is underway on
FDNS to evaluate geotechnical, mine design, metallurgical characteristics and infrastructure needs with the goal of
integrating FDNS into FDN’s long-term mine plan in 2026.
The surface near mine drilling program advanced in the recently discovered copper-gold mineralization at the
Trancaloma target, while also continuing the delineation of the Bonza Sur deposit and drilling on new sectors like the
Sandia porphyry, located a few kilometres east from the FDN deposit. As at the date of this MD&A, 11 surface rigs are
drilling, with four of them at Trancaloma, one at Sandia, one below FDN depth, one at FDN East, one at Bonza Sur,
and three testing new sectors.
===== SIDA 15 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Six Months Ended June 30, 2025
(All dollar amounts are stated in U.S. dollars unless otherwise indicated. Tables are expressed in thousands of U.S.
dollars, except share and per share amounts)
5
At Trancaloma, located on the east border of Bonza Sur, the drilling program confirmed the extension of the
recently discovered copper-gold porphyry mineralization. In the eastern portion of the target, the drilling
program followed up on drilling results from the first quarter, extended the mineralized system along the
northeastern and southwestern directions, and identified areas for further expansion. The drilling program
also advanced in the western portion of Trancaloma, where another near surface copper mineralized zone
was identified.
At Bonza Sur, drill holes were completed along south and southeastern extensions and confirmed the deposit’s
continuity. In the south end of the deposit recent drilling suggests further potential for expansion along this
direction. Toward the southeastern extension, the drilling program advanced along the limit with the
Trancaloma porphyry.
At FDN East, the surface drilling program advanced in conjunction with the underground program and
continued to intercept the mineralization continuity in the central part of the target and indicated areas for
further expansion potential toward the north and south direction.
At FDN, directional drilling technology has been employed in the surface drilling program to enhance precision
for the target testing in the deeper portions of the deposit. Throughout the program, drill holes tested the
mineralization continuity at distinct depths along the central portion of FDN.
The near-mine exploration program continues to advance in unexplored areas close to FDN. A systematic
exploration program employing geochemical and geophysical surveys and geological mapping advanced on
potential targets. At Sandia, initial drilling results revealed the occurrence of a new shallow and wide copper-
gold porphyry mineralization.
A table of second quarter 2025 near mine results for the FDNS, FDN East, Bonza Sur and Trancaloma and Sandia
targets received to date can be found in Lundin Gold’s press releases dated July 31 and August 5, 2025.
Regional Exploration Program
The Company advanced its multi-year regional exploration program during the second quarter of 2025. The program
is expected to cover approximately 54,000 hectares on 23 of the Company’s concessions along the Zamora Copper
Gold Belt, a high potential geological setting which hosts the Fruta del Norte mine and several large copper gold
projects. The exploration program continues to advance in the Gamora district, located 65 kilometres north of FDN
and approximately four kilometres north of the Mirador copper gold mine. The Gamora district comprises multiple
exploration sectors that exhibit geological features similar to those found in copper-gold porphyry systems. Geological
mapping and geochemical sampling programs were completed in distinct parts of the district during the quarter and
resulted in the identification of several new potential targets for further evaluation. Furthermore, exploration started at
the Soberano concession, located approximately 22 kilometres southwest from the FDN Mine, where geological
mapping followed by soil and rock sampling were completed.
Corporate
The Company published its 2024 Sustainability Report in April which marks its second year of transition
towards aligning with the European Sustainability Reporting Standards.
The Company paid dividends during the quarter as follows:
o A special dividend of $0.41 per share on June 9, 2025 (June 12, 2025 for shares trading on Nasdaq
Stockholm) for a total of $100 million.
o A quarterly dividend of $0.45 per share, comprised of the fixed dividend of $0.30 per share and
variable dividend of $0.15 per share, on June 25, 2025 (June 30, 2025 for shares trading on Nasdaq
Stockholm) for a total of $107 million.
With the release of its second quarter 2025 results, the Company has declared cash dividends totaling $0.79
per share, comprised of the fixed dividend of $0.30 per share and variable dividend of $0.49 per share, payable
on September 25, 2025 (September 30, 2025 for shares trading on Nasdaq Stockholm) to shareholders of
record at the close of business on September 10, 2025. Pursuant to the Company’s dividend policy, the
variable dividend was calculated based on 50% of the Company’s normalized free cash flow, after deducting
the fixed dividend paid, during the second quarter of 2025.
===== SIDA 16 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Six Months Ended June 30, 2025
(All dollar amounts are stated in U.S. dollars unless otherwise indicated. Tables are expressed in thousands of U.S.
dollars, except share and per share amounts)
6
SUMMARY OF QUARTERLY FINANCIAL RESULTS
The Company’s quarterly financial statements are reported under IFRS Accounting Standards as applicable to interim
financial reporting. The following table provides highlights from the Company’s financial statements for the past eight
quarters (unaudited).
2025 2025 2024 2024
Q2 Q1 Q4 Q3
Revenues $ 452,880 $ 356,345 $ 341,791 $ 323,087
Income from mining operations $ 314,161 $ 233,546 $ 215,208 $ 203,184
Net income for the period $ 196,731 $ 153,500 $ 129,147 $ 135,715
Basic income per share $ 0.82 $ 0.64 $ 0.54 $ 0.57
Diluted income per share $ 0.81 $ 0.63 $ 0.53 $ 0.56
Weighted-average number of common shares outstanding
Basic 240,984,033 240,460,033 240,101,527 239,737,300
Diluted 242,475,579 241,992,389 242,320,782 241,890,593
Additions to property, plant and equipment $ 16,878 $ 14,919 $ 35,044 $ 28,019
Total assets $ 1,618,899 $ 1,613,365 $ 1,527,481 $ 1,364,106
Working capital $ 562,273 $ 551,032 $ 458,944 $ 357,410
2024 2024 2023 2023
Q2 Q1 Q4 Q3
Revenues $ 301,431 $ 226,741 $ 190,688 $ 211,172
Income from mining operations $ 171,757 $ 113,237 $ 78,051 $ 99,620
Derivative gain (loss) for the period $ 261,668 $ (17,931) $ (28,634) $ 11,678
Net income for the period $ 119,291 $ 41,897 $ 11,062 $ 53,782
Basic income per share $ 0.50 $ 0.18 $ 0.05 $ 0.23
Diluted income per share $ 0.49 $ 0.17 $ 0.05 $ 0.22
Weighted-average number of common shares outstanding
Basic 239,129,917 238,255,452 237,665,855 237,411,813
Diluted 241,031,608 239,968,974 239,745,358 239,583,745
Additions to property, plant and equipment $ 17,467 $ 9,701 $ 15,791 $ 15,744
Total assets $ 1,396,496 $ 1,508,987 $ 1,468,209 $ 1,516,866
Long-term debt $ - $ 326,791 $ 305,647 $ 361,109
Working capital $ 253,587 $ 413,528 $ 346,859 $ 313,794
===== SIDA 17 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Six Months Ended June 30, 2025
(All dollar amounts are stated in U.S. dollars unless otherwise indicated. Tables are expressed in thousands of U.S.
dollars, except share and per share amounts)
7
Three months ended June 30, 2025 compared to the three months ended June 30, 2024
The Company generated net income of $197 million during the second quarter of 2025 compared to $119 million during
the second quarter of 2024. Net income was generated from the recognition of revenues of $453 million, which resulted
in income from mining operations of $314 million, as well as finance income of $5.2 million. This is offset by exploration
costs of $13.3 million, corporate administration costs of $16.1 million, income tax expense of $92.0 million, and other
expenses totalling $1.3 million. During the second quarter of 2024, when the Company completed the buy back of the
Stream Facility and Offtake, net income was generated from the recognition of revenues of $301 million and income
from mining operations of $172 million as well as a derivative gain on $262 million, finance income of $4.8 million, and
other income of $1.5 million. This is offset by finance expense of $254 million, income tax expense of $52.3 million,
and other expenses totalling $13.7 million.
Income from mining operations
During the second quarter of 2025, the Company generated revenues of $453 million from the sale of 136,737 oz of
gold and income from mining operations of $314 million compared to revenues of $301 million from the sale of 129,396
oz of gold and income from mining operations of $172 million during the second quarter of 2024. The increase is
primarily attributable to an increase in oz sold at a higher average realized gold price1.
Exploration
Exploration costs were $13.3 million in the quarter compared to $8.9 million during the same period in 2024. The
increase is attributable to the continued expansion of the near-mine exploration program following positive results to
date.
Corporate administration
Corporate administration costs increased by $11.2 million from $4.9 million during the second quarter of 2024 to $16.1
million during the second quarter of 2025. The increase is mainly attributable to an increase in stock-based
compensation expense of $11.1 million. Effective December 31, 2024, share units have been reclassified as financial
liabilities measured at fair value since, subject to the continued discretion of the Company’s board of directors, they are
expected to generally settle in cash in future periods. Therefore, stock-based compensation expense during the second
quarter of 2025 reflects the increase in the Company’s share price from March 31, 2025 to June 30, 2025.
Finance expense
No finance expense was incurred during the second quarter of 2025 following the buy out of the Stream Facility and
Offtake at the end of the second quarter of 2024.
Finance income
Finance income increased from $4.8 million during the second quarter of 2024 to $5.2 million during the second quarter
of 2025 as the Company’s increased cash balance offset a declining yield on the Company’s treasury investments.
Other expense (income)
Other expense of $1.3 million was recognized during the quarter compared to other income of $1.5 million in the second
quarter of 2024 which is mainly driven by foreign exchange movements during the period and its impact on the
Company’s liabilities and expenses that are denominated in Canadian dollars.
Derivative gain or loss
With the Company in a debt free position, no derivative gains or losses are recognized. During the second quarter of
2024, the derivative gain of $262 million primarily resulted from the buy out of the Stream Facility and Offtake.
1 Refer to “Non-IFRS Measures” section.
===== SIDA 18 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Six Months Ended June 30, 2025
(All dollar amounts are stated in U.S. dollars unless otherwise indicated. Tables are expressed in thousands of U.S.
dollars, except share and per share amounts)
8
Income taxes
Income taxes of $92.0 million were recorded during the second quarter of 2025 (three months ended June 30, 2024 –
$52.3 million) which is comprised of current income tax expenses of $110.2 million offset by deferred income tax
recovery of $18.2 million. The change is mainly attributable to an increase in net income before tax resulting from a
higher average realized gold price1. In addition to corporate income taxes in Ecuador which are levied at a rate of 22%,
income tax expense includes a 5% Ecuadorean withholding tax on the anticipated portion of net income generated
from FDN to be paid in the form of dividends, and an accrual for the portion of profit sharing payable to the Government
of Ecuador which is calculated at the rate of 12% of the estimated net income for tax purposes for the quarter. The
employee portion of profit sharing payable, calculated at the rate of 3% of net income for tax purposes is considered
an employee benefit and is included in operating expenses.
Corporate income tax instalment payments are due monthly based on a percentage of monthly revenues with residual
income taxes owed, if any, due in April of each year. In addition, the government and employee portion of profit sharing
are payable annually in April. The Company may elect to make additional tax payments in advance in Ecuador from
time to time.
Six months ended June 30, 2025 compared to the six months ended June 30, 2024
The Company generated net income of $350 million during the 2025 Period compared to $161 million during the 2024
Period. During the 2025 Period, revenues of $809 million were recognized which generated income from mining
operations of $548 million, as well as finance income of $9.9 million. This is offset by income tax expense of $155
million and other expenses totalling $52.3 million. Revenues and income from mining operations were lower for the
2024 Period at $528 million and $285 million, respectively, due mainly to lower realized gold prices. In addition, with
consideration for the buy back of the Stream Facility and Offtake, derivative gains of $244 million and finance income
of $9.2 million were recorded which are offset by finance expense of $267 million, income tax expense of $80.9 million,
and other expenses totalling $29.4 million
Income from mining operations
During the 2025 Period, the Company recognized revenues of $809 million from the sale of 254,378 oz of gold. This
is offset by cost of goods sold of $262 million which is comprised of operating expenses of $150 million; royalties of
$46.6 million; and depletion and depreciation of $64.9 million resulting in income from mining operations of $548 million.
During the same period in 2024, revenues of $528 million were recognized from the sale of 238,312 oz of gold resulting
in income from mining operations of $285 million.
Exploration
Exploration costs were $23.7 million during the 2025 Period compared to $16.8 million during the 2024 Period with the
increase being driven by increased activities under the near-mine exploration program given success to date.
Corporate administration
Corporate administration costs of $28.2 million were incurred during the 2025 Period compared to $15.2 million during
the 2024 Period. The increase is mainly due to additional expenses relating to cash-settled share units and its fair
value adjustment which reflect the increase in the Company’s share price from December 31, 2024 to June 30, 2025.
During the 2024 Period, these share units were considered to be equity-settled and not subject to fair value accounting.
Finance expense
No finance expense was incurred during the 2025 Period following the buy out of the Stream Facility and Offtake
at the end of the second quarter of 2024.
1 Refer to “Non-IFRS Measures” section.
===== SIDA 19 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Six Months Ended June 30, 2025
(All dollar amounts are stated in U.S. dollars unless otherwise indicated. Tables are expressed in thousands of U.S.
dollars, except share and per share amounts)
9
Derivative gain or loss
With the Company in a debt free position, no derivative gains or losses are recognized. During the 2024 Period, a
derivative gain of $244 million was recorded on the statement of operations which was mainly due to the buy out of the
Stream Facility and Offtake.
LIQUIDITY AND CAPITAL RESOURCES
As at June 30, 2025, the Company had cash of $493 million and a working capital balance of $562 million compared
to cash of $349 million and a working capital balance of $459 million at December 31, 2024.
The change in cash during the 2025 Period was primarily due to cash generated from operating activities of $449 million
and proceeds from the exercise of stock options and anti-dilution rights totalling $17.7 million. This is offset by dividends
paid of $280 million and capital expenditures of $42.6 million.
Trade receivables
Trade receivables mainly represent the value of concentrate sold as at period end for which the funds are not yet
received. Revenues and related trade receivables for concentrate sales are initially recorded at provisional gold prices.
Subsequent determination of final gold prices can range from one to four months after shipment depending on the
customer. For sales that are provisionally priced at period end, an estimate of the adjustment to trade receivables is
calculated based on the expected month when the final gold price is forecast to be determined and the related forward
price of gold at the end of the reporting period. At June 30, 2025, this resulted in an estimated increase of $16.5 million
($5.1 million at December 31, 2024) to trade receivables reflecting rising gold prices during the period.
Consistent with industry standards, concentrate sales have relatively long payment terms and are not fully settled until
concentrate is received by the customer and related final assays confirmed, generally two to five months after the
export sale occurs.
VAT receivables
Subject to the submission of monthly claims and their acceptance by the applicable authorities, VAT paid in Ecuador
by the Company after January 1, 2018 are being refunded or applied, based on the level of export sales in any given
month, as a credit against taxes payable. A portion of the VAT recoverable has been reclassified as current assets
based on the Company’s assessment of the estimated time for processing VAT claims during the next twelve months.
Inventories
Gold inventory is recognized in the ore stockpiles and in production inventory, comprised principally of concentrate and
doré at site or in transit to port or to the refinery, with a component of gold-in-circuit. The increase in gold-in-circuit
inventory due to higher throughput and timing of production. The variations in doré and concentrate are mainly the
result of timing of shipments around period end. In addition, there has been a decrease in the value of materials and
supplies due to the continued disposal of obsolete or slow-moving inventory generally accumulated during the
construction of FDN.
Investment activities
Investment activities during the 2025 Period are comprised principally of major sustaining capital expenditures1
including the fifth tailings dam raise, commissioning of diesel-powered generators, construction of camp and
administration buildings, mine fleet overhaul, and conversion drilling. In addition, costs were incurred relating to the
process plant expansion project.
===== SIDA 20 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Six Months Ended June 30, 2025
(All dollar amounts are stated in U.S. dollars unless otherwise indicated. Tables are expressed in thousands of U.S.
dollars, except share and per share amounts)
10
Liquidity and capital resources
The Company generated strong operating cash flow during the 2025 Period and expects to continue to do so for the
remainder of the year based on its production and AISC1 guidance. With no debt and strong gold prices, the Company
expects to generate significant free cash flow1 which will continue to support the exploration programs, planned capital
expenditures, growth initiatives, and regular dividend payments under its dividend policy.
TRANSACTIONS WITH RELATED PARTIES
During the 2025 Period, the Company incurred $0.5 million (2024 Period – $1.0 million), primarily relating to office
rental and related services provided by Namdo Management Services Ltd. (“Namdo”), a company associated with a
director of the Company. In addition, the Company entered into transactions with its largest shareholder, Newmont
Corporation, as presented in Note 16 in the Notes to the unaudited condensed consolidated interim financial statements
for the three and six months ended June 30, 2025.
FINANCIAL INSTRUMENTS
The Company’s financial instruments include cash, cash equivalents and certain receivables, which are categorized as
financial assets at amortized cost, and accounts payable and accrued liabilities, which are categorized as financial
liabilities at amortized cost. The fair value of these financial instruments approximates their carrying values due to the
short-term nature of these instruments. Further, provisionally priced trade receivables of $147 million (December 31,
2024 – $156 million) are measured at fair value using quoted forward market prices.
The Company’s financial instruments are exposed to a variety of financial risks by virtue of its activities.
Credit risk
Credit risk is the risk of a financial loss to the Company if a counterparty to a financial instrument fails to meet its
contractual obligations. The majority of the Company’s cash is held in large financial institutions with a high investment
grade rating. The Company is also subject to credit risk associated with its trade receivables. The Company manages
this risk by only selling to a small group of reputable customers with strong financial statements.
Concentration of credit risk
Cash and cash equivalents are held with high quality financial institutions. Substantially all of the Company’s cash and
cash equivalents held with financial institutions exceed government-insured limits. The Company has established a
treasury policy that seeks to minimize its credit risk by entering into transactions with investment grade creditworthy
and reputable financial institutions and by monitoring the credit standing of those financial institutions. The Company
seeks to limit the amount of exposure with any one counterparty in accordance with its established treasury policy.
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its obligations as they become due. Cash flow
forecasting is performed regularly to monitor the Company’s liquidity requirements to ensure it has sufficient cash to
always meet its operational needs. In addition, management is actively involved in the review, planning and approval
of significant expenditures and commitments.
Commodity price risk
The Company is subject to commodity price risk from fluctuations in the market prices of gold and silver. Commodity
price risks are affected by many factors that are outside the Company’s control including global or regional consumption
patterns, the supply of and demand for metals, speculative activities, the availability and costs of substitutes, inflation,
and political and economic conditions. The Company has not hedged the price of any commodity at this time. The fair
value of a portion of the Company’s trade receivables are impacted by fluctuations of commodity prices.
1 Refer to “Non-IFRS Measures” section.
===== SIDA 21 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Six Months Ended June 30, 2025
(All dollar amounts are stated in U.S. dollars unless otherwise indicated. Tables are expressed in thousands of U.S.
dollars, except share and per share amounts)
11
COMMITMENTS
Significant capital and other expenditures contracted as at June 30, 2025 but not recognized as liabilities are as follows:
Capital
Expenditures Other
12 months ending June 30, 2026 $ 23,975 572
July 1, 2026 onward - 7,242
Total $ 23,975 7,814
The Company’s sales are subject to a 5% net smelter royalty payable to the Government of Ecuador and a 1% net
smelter royalty payable to third parties.
OFF-BALANCE SHEET ARRANGEMENTS
During the 2025 Period and the year ended December 31, 2024, there were no off-balance sheet transactions. The
Company has not entered into any specialized financial arrangements to minimize its currency risk.
OUTSTANDING SHARE DATA
As at the date of this MD&A, there were 241,267,371 common shares issued and outstanding. There were also stock
options outstanding to purchase a total of 1,724,203 common shares, 368,528 restricted share units with a performance
criteria, 174,736 restricted share units, and 59,824 deferred share units.
OUTLOOK
As a result of the strong operating performance in the first half of the year, the Company is updating its 2025 production
guidance from 475,000 to 525,000 oz to 490,000 to 525,000 oz. Due to mine sequencing, the Company expects a
reduction in average head grade during the second half of the year. The Company also expects its cash operating
cost1 and AISC1 to be near the upper end of guidance of $730 to $790 and $935 to $995 per oz sold respectively.
While the significant increase in gold price has led to record financial performance during the first half of 2025, it has
also resulted in increased royalties and profit sharing to employees, metrics that impact cash operating cost1 and AISC1.
Continued efforts to reduce cost and improvements to mill throughput is expected to allow the Company to remain
within the upper end of its cost guidance even with average realized gold prices1 of $3,231 per oz during the first half
of 2025, compared to its guidance assumption of $2,500 per oz. Sustaining capital expenditures1 are expected to
increase over the remainder of the year and come in at the previously guided $75 to $85 million.
The near-mine underground drilling program is expected to continue to advance at FDNS where the primary focus is
the conversion and expansion of this new system. The surface drilling program is expected to continue to explore the
recently discovered Trancaloma copper-gold porphyry mineralization, expand the mineralization along the Bonza Sur
and FDN East sectors, and advance on new sectors around FDN.
Seventeen rigs are currently turning across the conversion and near-mine exploration programs. The Company
increased the near-mine drilling program by 18,000 metres to a minimum of 83,000 metres to accelerate the definition
of near-mine targets and the conversion drilling program from 15,000 metres to approximately 25,000 metres. A
minimum of 108,000 metres of drilling are planned across the conversion and near-mine drilling programs for 2025. In
addition, mine engineering work is underway on FDNS to evaluate geotechnical, mine design, metallurgical
characteristics and infrastructure needs with the goal of integrating FDNS into FDN’s long-term mine plan in 2026.
1 Refer to “Non-IFRS Measures” section.
===== SIDA 22 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Six Months Ended June 30, 2025
(All dollar amounts are stated in U.S. dollars unless otherwise indicated. Tables are expressed in thousands of U.S.
dollars, except share and per share amounts)
12
The regional exploration program is expected to continue to focus on the unexplored large package of mineral
concessions located on a highly prospective environment which hosts the Fruta del Norte deposit. This is the first year
of a new three-year greenfield strategy to identify new areas for exploration drilling. The 2025 program includes a
geophysical magnetic survey and a geochemical sampling program.
The total estimated cost of the near-mine and regional program is $47 million for the year. This represents the largest
drill program ever completed on the land package that hosts the FDN deposit.
Under its dividend policy, the Company anticipates continuing to declare quarterly minimum dividends of $0.30 per
share, equivalent to approximately $300 million annually based on currently issued and outstanding shares, plus a
variable dividend equal to an amount based on at least 50% of the Company’s normalized free cash flow, after the
deduction of the fixed dividend.
NON-IFRS MEASURES
This MD&A refers to certain financial measures, such as average realized gold price per oz sold, EBITDA, adjusted
EBITDA, cash operating cost per oz sold, all-in sustaining cost, sustaining capital expenditures, free cash flow, free
cash flow per share, and adjusted earnings, which are not recognized under IFRS Accounting Standards and do not
have a standardized meaning prescribed by IFRS Accounting Standards. These measures may differ from those made
by other companies and accordingly may not be comparable to such measures as reported by other companies. These
measures have been derived from the Company’s financial statements because the Company believes that they are
of assistance in the understanding of the results of operations and its financial position.
Average realized gold price per oz sold
Average realized gold price is a metric used to better understand the gold price realized during a period. This is
calculated by disaggregating revenues for the period between gross gold sales before provisional pricing impact, mark-
to-market on provisionally priced sales, and silver revenues less treatment and refining charges.
Three months ended
June 30,
Six months ended
June 30,
2025 2024 2025 2024
Gross gold sales before provisional
pricing impact
$
447,958
$
310,352
$
781,506
$ 537,942
Gain (loss) on provisionally priced
trade receivables
11,623
(2,500)
40,553
3,100
Silver revenues 5,377 3,871 9,305 6,794
Less: Treatment and refining charges (12,078) (10,292) (22,139) (19,664)
Revenues $ 452,880 $ 301,431 $ 809,225 $ 528,172
Gold oz sold 136,737 129,396 254,378 238,312
Average realized gold price (per oz sold)
Gross gold sales before provisional
pricing impact
$
3,276
$
2,398
$
3,072
$
2,257
Gain on provisionally priced trade
receivables
85
(19)
159
13
Average realized gold price 3,361 2,379 $ 3,231 $ 2,270
Silver revenues 39 30 37 29
Less: Treatment and refining charges (88) (80) (87) (83)
Revenues $ 3,312 $ 2,329 $ 3,181 $ 2,216
===== SIDA 23 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Six Months Ended June 30, 2025
(All dollar amounts are stated in U.S. dollars unless otherwise indicated. Tables are expressed in thousands of U.S.
dollars, except share and per share amounts)
13
EBITDA and Adjusted EBITDA
Earnings before interest, taxes, depreciation, and amortization (“EBITDA”) is a metric used to better understand the
financial performance of the Company by computing earnings from business operations without including the effects of
capital structure, tax rates and depreciation. Adjusted EBITDA is EBITDA excluding items which are considered not
indicative of underlying business operations.
Three months ended
June 30,
Six months ended
June 30,
2025 2024 2025 2024
Net income for the period $ 196,731 $ 119,291 $ 350,231 $ 161,188
Adjusted for:
Finance expense - 254,449 - 266,542
Finance income (5,222) (4,784) (9,894) (9,238)
Income tax expense 91,965 52,256 155,027 80,878
Depletion and depreciation 35,366 35,857 64,978 69,311
EBITDA $ 318,840 $ 457,069 $ 560,342 $ 568,681
Special government levy - - - 1,913
Derivative loss - (261,668) - (243,737)
Adjusted EBITDA $ 318,840 $ 195,401 $ 560,342 $ 326,857
Adjusted earnings and adjusted basic earnings per share
Adjusted earnings and adjusted basic earnings per share can be used to measure and may assist in evaluating
operating earning trends in comparison with results from prior periods by excluding specific items that are significant,
but not reflective of the underlying operating activities of the Company. During the six months ended June 30, 2024
these included a special one-time government levy; derivative gains or losses from accounting for the Stream Facility
at fair value; one-time finance expense incurred on buy out of the Stream Facility and Offtake; and related income tax
effects. Adjusted basic earnings per share is calculated using the weighted average number of shares outstanding
under the basic method of earnings per share as determined under IFRS Accounting Standards.
Three months ended
June 30,
Six months ended
June 30,
2025 2024 2025 2024
Net income for the period $ 196,731 $ 119,291 $ 350,231 $ 161,188
Adjusted for:
Finance expense on buy out of
stream and offtake
-
235,575
-
235,575
Special government levy - - - 1,913
Derivative loss - (261,668) - (243,737)
Deferred income tax recovery - 5,740 - 1,795
Adjusted earnings $ 196,731 $ 98,938 $ 350,231 $ 156,734
Basic weighted average shares
outstanding
240,984,033
239,129,917
240,723,483
238,697,974
Adjusted basic earnings per share $ 0.82 $ 0.41 $ 1.46 $ 0.66
===== SIDA 24 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Six Months Ended June 30, 2025
(All dollar amounts are stated in U.S. dollars unless otherwise indicated. Tables are expressed in thousands of U.S.
dollars, except share and per share amounts)
14
Cash operating cost per oz
Cash operating cost per oz sold, combined with revenues, can be used to evaluate the Company’s performance and
ability to generate operating income and cash flow from operating activities. Cash operating costs include operating
expenses and royalty expenses.
Three months ended
June 30,
Six months ended
June 30,
2025 2024 2025 2024
Operating expenses $ 77,462 $ 76,166 $ 150,026 $ 143,434
Royalty expenses 25,915 17,656 46,555 30,444
Cash operating costs $ 103,377 $ 93,822 $ 196,581 $ 173,878
Gold oz sold 136,737 129,396 254,378 238,312
Cash operating cost per oz sold $ 756 $ 725 $ 773 $ 730
All-in sustaining cost and sustaining capital expenditures
AISC provides information on the total cost associated with producing gold and has been calculated on a basis
consistent with historic news releases by the Company.
The Company calculates AISC as the sum of total cash operating costs (as described above), corporate social
responsibility costs, treatment and refining charges, accretion of restoration provision, and sustaining capital
expenditures, less silver revenue, all divided by the gold oz sold to arrive at a per oz amount. Sustaining capital
expenditures is defined as cash basis expenditures which maintain existing operations and sustain production levels.
Other companies may calculate this measure differently as a result of differences in underlying principles and policies
applied.
Three months ended
June 30,
Six months ended
June 30,
2025 2024 2025 2024
Cash operating costs $ 103,377 $ 93,822 $ 196,581 $ 173,878
Corporate social responsibility 566 479 912 1,165
Treatment and refining charges 12,078 10,292 22,139 19,664
Accretion of restoration provision 190 205 380 410
Sustaining capital expenditures 15,870 12,302 22,884 19,412
Less: silver revenues (5,377) (3,871) (9,305) (6,794)
All-in sustaining cost $ 126,704 $ 113,229 $ 233,591 $ 207,735
Gold oz sold 136,737 129,396 254,378 238,312
All-in sustaining cost per oz sold $ 927 $ 875 $ 918 $ 872
===== SIDA 25 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Six Months Ended June 30, 2025
(All dollar amounts are stated in U.S. dollars unless otherwise indicated. Tables are expressed in thousands of U.S.
dollars, except share and per share amounts)
15
Free cash flow and free cash flow per share
Free cash flow is indicative of the Company’s ability to generate cash from operations after consideration for required
capital expenditures, including related VAT impact, necessary to maintain operations and interest and finance expense
paid on its debt obligations. Free cash flow is defined as cash flow provided by operating activities, less cash used for
investing activities and interest and finance expense paid.
Three months ended
June 30,
Six months ended
June 30,
2025 2024 2025 2024
Net cash provided by operating
activities
$
254,782
$
144,169
$
449,090
$
252,083
Net cash used for investing activities (19,112) (14,937) (42,637) (28,573)
Interest paid - (1,812) - (3,688)
Finance expense paid - (250,847) - (260,990)
Free cash flow $ 235,670 $ (123,427) $ 406,453 $ (41,168)
Basic weighted average shares
outstanding
240,984,033
239,129,917
240,723,483
238,697,974
Free cash flow per share $ 0.98 $ (0.52) $ 1.69 $ (0.17)
CRITICAL ACCOUNTING ESTIMATES
The adoption of certain accounting policies requires the Company to make estimates that affect both the amount and
timing of the recording of assets, liabilities, revenues and expenses. Some of these estimates require judgments about
matters that are inherently uncertain. For a complete discussion of accounting estimates deemed most crucial by the
Company, refer to the Company’s annual 2024 Management’s Discussion and Analysis.
RISKS AND UNCERTAINTIES
Natural resources exploration, development and operation involves a number of risks and uncertainties, many of which
are beyond the Company’s control. These risks and uncertainties include, without limitation, the risks discussed
elsewhere in this MD&A and those set out in the Company’s Annual Information Form dated March 17, 2025 (the “AIF”),
which is available on SEDAR+ at www.sedarplus.ca.
QUALIFIED PERSON
The technical information relating to Fruta del Norte contained in this MD&A has been reviewed and approved by Terry
Smith P. Eng, Lundin Gold’s COO, who is a Qualified Person in accordance with the requirements of National
Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). The disclosure of exploration
information contained in this MD&A was prepared by Andre Oliveira P.Geo, Vice President, Exploration of the
Company, who is a Qualified Person in accordance with the requirements of NI 43-101.
FINANCIAL INFORMATION
The report for the nine months ended September 30, 2025 is expected to be published on or about November 6, 2025.
===== SIDA 26 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Six Months Ended June 30, 2025
(All dollar amounts are stated in U.S. dollars unless otherwise indicated. Tables are expressed in thousands of U.S.
dollars, except share and per share amounts)
16
DISCLOSURE CONTROLS AND INTERNAL CONTROLS OVER FINANCIAL REPORTING
Disclosure controls and procedures
Management, including the Chief Executive Officer and the Chief Financial Officer, are responsible for the design of
the Company’s disclosure controls and procedures in order to provide reasonable assurance that information required
to be disclosed by the Company in its annual filings, interim filings or other reports filed or submitted by it under
securities legislation is recorded, processed, summarized and reported within the time periods specified in the securities
legislation.
Internal controls over financial reporting
Management is also responsible for the design of the Company’s internal control over financial reporting in order to
provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with IFRS Accounting Standards.
Because of their inherent limitations, internal controls over financial reporting can provide only reasonable assurance
and may not prevent or detect misstatements. Furthermore, projections of any evaluation of effectiveness to future
periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the
degree of compliance with the policies or procedures may deteriorate.
As required under Multilateral Instrument 52-109, management advises that there have been no changes in the
Company’s internal control over financial reporting that occurred during the most recent interim period, beginning
January 1, 2025 and ending June 30, 2025, that have materially affected, or are reasonably likely to materially affect,
the Company’s internal control over financial reporting.
FORWARD LOOKING STATEMENTS
Certain of the information and statements in this MD&A are considered “forward-looking information” or “forward-looking
statements” as those terms are defined under Canadian securities laws (collectively referred to as “forward-looking
statements”). Any statements that express or involve discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions or future events or performance (often, but not always, identified by words
or phrases such as “believes”, “anticipates”, “expects”, “is expected”, “scheduled”, “estimates”, “pending”, “intends”,
“plans”, “forecasts”, “targets”, or “hopes”, or variations of such words and phrases or statements that certain actions,
events or results “may”, “could”, “would”, “will”, “should” “might”, “will be taken”, or “occur” and similar expressions) are
not statements of historical fact and may be forward-looking statements.
By their nature, forward-looking statements and information involve assumptions, inherent risks and uncertainties,
many of which are difficult to predict, and are usually beyond the control of management, that could cause actual results
to be materially different from those expressed by these forward-looking statements and information. Lundin Gold
believes that the expectations reflected in this forward-looking information are reasonable, but no assurance can be
given that these expectations will prove to be correct. Forward-looking information should not be unduly relied upon.
This information speaks only as of the date of this MD&A, and the Company will not necessarily update this information,
unless required to do so by securities laws.
This MD&A contains forward-looking information in a number of places, such as in statements pertaining to the
Company’s 2025 production outlook, including estimates of gold production, grades recoveries and AISC; operating
plans; expected sales receipts and cash flow forecasts; gold price; estimated capital costs and sustaining capital;
estimated costs related to the Company’s near-mine and regional drilling programs; the Company’s ability to mitigate
the impacts on its operations of a power disruption from the national grid; recovery of VAT; benefits of the Company’s
community programs; the Company’s declaration and payment of dividends pursuant to its dividend policy; and the
timing and the success of its drill program at Fruta del Norte and its other exploration activities.
Lundin Gold’s actual results could differ materially from those anticipated. Factors that could cause actual results to
differ materially from any forward-looking statement or that could have a material impact on the Company or the trading
price of its shares include risks relating to: instability in Ecuador; community relations; reliability of power supply; tax
changes in Ecuador; security; availability of workforce and labour relations; mining operations; waste disposal and
===== SIDA 27 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Six Months Ended June 30, 2025
(All dollar amounts are stated in U.S. dollars unless otherwise indicated. Tables are expressed in thousands of U.S.
dollars, except share and per share amounts)
17
tailings; environmental compliance; illegal mining; Mineral Reserve and Mineral Resource estimates; infrastructure;
regulatory risk; government or regulatory approvals; forecasts relating to production and costs; gold price; dependence
on a single mine; shortages of critical resources; climate change; exploration and development; control of Lundin Gold;
dividends; information systems and cyber security; title matters and surface rights and access; health and safety;
human rights; employee misconduct; measures to protect biodiversity, endangered species and critical habitats; global
economic conditions; competition for new projects; key talent recruitment and retention; market price of the Company’s
shares; social media and reputation; insurance and uninsured risks; pandemics, epidemics or infectious disease
outbreak; conflicts of interest; violation of anti-bribery and corruption laws; internal controls; claims and legal
proceedings; and reclamation obligations.
There can be no assurance that such statements will prove to be accurate, as Lundin Gold's actual results and future
events could differ materially from those anticipated in this forward-looking information as a result of the factors
discussed under the heading “Risk Factors” in the AIF available at www.sedarplus.ca.
===== SIDA 28 =====
LUNDIN GOLD INC.
Condensed Consolidated Interim Statements of Financial Position
(Unaudited – Prepared by Management)
(Expressed in thousands of U.S. Dollars)
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
June 30, December 31,
Note 2025 2024
ASSETS
Current assets
Cash and cash equivalents 18 $ 493,372 $ 349,200
Trade receivables and other current assets 3 223,108 233,555
Inventories 4 88,560 88,210
Advance royalty - 3,494
805,040 674,459
Non-current assets
VAT recoverable 20,303 24,287
Property, plant and equipment 5 671,762 695,703
Mineral properties 6 121,794 133,032
$ 1,618,899 $ 1,527,481
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities 7 $ 110,267 $ 109,947
Income taxes payable 122,090 96,843
Other current liabilities 10 10,410 8,725
242,767 215,515
Non-current liabilities
Other non-current liabilities 10 10,960 3,457
Reclamation provisions 8,246 7,866
Deferred income tax liabilities 52,771 84,344
314,744 311,182
EQUITY
Share capital 9 1,055,528 1,035,399
Equity-settled share-based payment reserve 10 6,596 9,059
Accumulated other comprehensive loss (40,747) (40,747)
Retained earnings 282,778 212,588
1,304,155 1,216,299
$ 1,618,899 $ 1,527,481
Commitments (Note 21)
Approved by the Board of Directors
/s/ Ron F. Hochstein /s/ Ian W. Gibbs
Ron F. Hochstein Ian W. Gibbs
===== SIDA 29 =====
LUNDIN GOLD INC.
Condensed Consolidated Interim Statements of Income and Comprehensive Income
(Unaudited – Prepared by Management)
(Expressed in thousands of U.S. Dollars, except share and per share amounts)
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
Three months ended
June 30,
Six months ended
June 30,
Note 2025 2024 2025 2024
Revenues 11 $ 452,880 $ 301,431 $ 809,225 $ 528,172
Cost of goods sold
Operating expenses 12 77,462 76,166 150,026 143,434
Royalty expenses 25,915 17,656 46,555 30,444
Depletion and depreciation 35,342 35,852 64,937 69,300
138,719 129,674 261,518 243,178
Income from mining operations 314,161 171,757 547,707 284,994
Other expenses (income)
Exploration 13 13,277 8,864 23,669 16,789
Corporate administration 14 16,126 4,852 28,221 15,239
Finance expense 15 - 254,449 - 266,542
Finance income (5,222) (4,784) (9,894) (9,238)
Other expense (income) 1,284 (1,503) 453 (2,667)
Derivative gain 8 - (261,668) - (243,737)
25,465 210 42,449 42,928
Net income before tax 288,696 171,547 505,258 242,066
Income tax expense
Current income tax expense 17 110,155 48,850 186,600 72,345
Deferred income tax expense
(recovery) 17
(18,190)
3,406
(31,573)
8,533
91,965 52,256 155,027 80,878
Net income for the period $ 196,731 $ 119,291 $ 350,231 $ 161,188
OTHER COMPREHENSIVE INCOME (LOSS)
Items that will not be reclassified to net income
Currency translation adjustment - (820) - (2,194)
Derivative loss related to the Company’s
own credit risk - (31,071) - (37,332)
Deferred income tax on accumulated other
comprehensive income - 4,962 - 6,339
Comprehensive income $ 196,731 $ 92,362 $ 350,231 $ 128,001
Income per common share
Basic $ 0.82 $ 0.50 $ 1.46 $ 0.68
Diluted 0.81 0.49 1.45 0.67
Weighted-average number of common shares outstanding
Basic 240,984,033 239,129,917 240,723,483 238,697,974
Diluted 242,475,579 241,031,608 242,268,436 240,540,041
===== SIDA 30 =====
LUNDIN GOLD INC.
Condensed Consolidated Interim Statements of Changes in Equity
(Unaudited – Prepared by Management)
(Expressed in thousands of U.S. Dollars, except number of common shares)
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
Equity-settled
Number of share-based Retained
common Share payment Other earnings
Note shares capital reserve reserves (deficit) Total
Balance, January 1, 2024 237,860,048 $ 1,008,932 $ 14,535 $ 1,955 $ (69,616) $ 955,806
Exercise of stock options 1,108,198 8,385 (2,435) - - 5,950
Vesting of share units 57,205 631 (2,463) - - (1,832)
Exercise of anti-dilution rights 9 542,515 7,707 - - - 7,707
Stock-based compensation 10 - - 2,479 - - 2,479
Other comprehensive loss - - - (33,187) - (33,187)
Net income for the period - - - - 161,188 161,188
Dividends paid - - - - (47,831) (47,831)
Balance, June 30, 2024 239,567,966 $ 1,025,655 $ 12,116 $ (31,232) $ 43,741 $ 1,050,280
Balance, January 1, 2025 240,194,898 $ 1,035,399 $ 9,059 $ (40,747) $ 212,588 $ 1,216,299
Exercise of stock options 789,246 8,654 (2,129) - - 6,525
Vesting of share units 21,635 315 (315) - - -
Exercise of anti-dilution rights 9 252,592 11,160 - - - 11,160
Stock-based compensation 10 - - 622 - - 622
Reclassification of share units - - (641) - - (641)
Net income for the period - - - - 350,231 350,231
Dividends paid - - - - (280,041) (280,041)
Balance, June 30, 2025 241,267,371 $ 1,055,528 $ 6,596 $ (40,747) $ 282,778 $ 1,304,155
===== SIDA 31 =====
LUNDIN GOLD INC.
Condensed Consolidated Interim Statements of Cash Flows
(Unaudited – Prepared by Management)
(Expressed in thousands of U.S. Dollars)
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
Three months ended
June 30,
Six months ended
June 30,
Note 2025 2024 2025 2024
OPERATING ACTIVITIES
Net income for the period $ 196,731 $ 119,291 $ 350,231 $ 161,188
Items not affecting cash:
Depletion and depreciation 35,366 35,857 64,978 69,311
Stock-based compensation 10 12,501 1,427 19,423 4,197
Derivative gain 8 - (261,668) - (243,737)
Other expense (income) 648 (502) 756 (1,547)
Finance expense (income) (5,222) 249,665 (9,894) 257,304
Deferred income tax expense (recovery) (18,190) 3,406 (31,573) 8,533
221,834 147,476 393,921 255,249
Changes in non-cash working capital items:
Trade receivables and other current assets 18,438 730 18,399 (12,284)
Inventories 1,065 8,361 1,884 8,332
Advance royalty - 1,119 3,494 6,500
Accounts payable and accrued liabilities 18,946 7,192 7,192 2,724
Income taxes payable (10,723) (25,493) 25,247 (17,676)
Interest received 5,222 4,784 9,894 9,238
Share units settled in cash 10 - 11 (10,941) (3,550)
Net cash provided by operating activities 254,782 144,180 449,090 248,533
FINANCING ACTIVITIES
Repayments of long-term debt 8 - (97,985) - (101,106)
Interest paid 8 - (1,812) - (3,688)
Finance expense paid 8 - (250,847) - (260,990)
Proceeds from exercise of stock options 2,202 1,631 6,525 5,950
Proceeds from exercise of anti-dilution rights 9 11,014 7,707 11,160 7,707
Dividends paid (207,325) (23,957) (280,041) (47,831)
Change in non-cash working capital 7,8 - 150,000 - 150,000
Net cash used for financing activities (194,109) (215,263) (262,356) (249,958)
INVESTING ACTIVITIES
Acquisition and development of property, plant
and equipment (17,278) (12,686) (38,669) (25,327)
VAT paid on investing activities (1,834) (2,251) (3,968) (3,246)
Net cash used for investing activities (19,112) (14,937) (42,637) (28,573)
Effect of foreign exchange rate differences on cash 74 (235) 75 (347)
Net increase (decrease) in cash and cash equivalents 41,635 (86,255) 144,172 (30,345)
Cash and cash equivalents, beginning of period 451,737 323,935 349,200 268,025
Cash and cash equivalents, end of period $ 493,372 $ 237,680 $ 493,372 $ 237,680
Supplemental cash flow information (Note 18)
===== SIDA 32 =====
LUNDIN GOLD INC.
Notes to the condensed consolidated interim financial statements as at June 30, 2025
(Unaudited – Prepared by Management)
(Expressed in U.S. Dollars unless otherwise noted. Tables are expressed in thousands of U.S. dollars, except share
and per share amounts)
5
1. Nature of operations
Lundin Gold Inc. together with its subsidiaries (collectively referred to as “Lundin Gold” or the “Company”) is
focused on its Fruta del Norte gold operation and developing its portfolio of mineral concessions in Ecuador.
The common shares of the Company are listed for trading on the Toronto Stock Exchange (the “TSX”) and Nasdaq
Stockholm under the symbol “LUG” and the OTCQX Best Market under the symbol “LUGDF”. The Company was
originally incorporated in British Columbia and continued under the Canada Business Corporations Act in 2002.
The Company’s head office is located at Suite 2800, 1055 Dunsmuir Street, Vancouver, BC, and it has an office
in Quito, Ecuador.
2. Basis of preparation and consolidation
These unaudited condensed consolidated interim financial statements, including comparatives, have been
prepared in accordance with International Financial Reporting Standards as issued by the International Accounting
Standard Board (“IFRS Accounting Standards”), applicable to the preparation of interim financial statements,
including International Accounting Standard 34, Interim Financial Reporting. As a result, they do not conform in
all respects with the disclosure requirements for annual financial statements under IFRS Accounting Standards
and should be read in conjunction with the Company’s audited consolidated financial statements for the fiscal year
ended December 31, 2024.
These unaudited condensed consolidated interim financial statements are presented in U.S. dollars.
In preparing these unaudited condensed consolidated interim financial statements, the Company applied the same
accounting policies and key sources of estimation uncertainty as those that were applied to the Company’s audited
consolidated financial statements for the fiscal year ended December 31, 2024.
These financial statements were approved for issue by the Board of Directors on August 7, 2025.
3. Trade receivables and other current assets
June 30, December 31,
2025 2024
Trade receivables (a) $ 146,705 $ 155,948
VAT recoverable (b) 56,619 58,028
Prepaid expenses and other 19,784 19,579
$ 223,108 $ 233,555
(a) Trade receivables mainly represent the value of concentrate sold as at period end for which the funds are not
yet received. Consistent with industry standards, these sales generally have relatively long payment terms
and are not settled until two to five months after export.
Concentrate sales are first recorded based on provisional prices. For sales that are provisionally priced as at
June 30, 2025, an adjustment is estimated and recorded using the forward gold price at quarter end for the
future month when the final gold price for each individual sale is expected to be determined. This adjustment
resulted in an increase of $16.5 million in trade receivables as of June 30, 2025 (December 31, 2024 - $5.1
million increase) reflecting rising gold prices during the period.
===== SIDA 33 =====
LUNDIN GOLD INC.
Notes to the condensed consolidated interim financial statements as at June 30, 2025
(Unaudited – Prepared by Management)
(Expressed in U.S. Dollars unless otherwise noted. Tables are expressed in thousands of U.S. dollars, except share
and per share amounts)
6
3. Trade receivables and other current assets (continued)
(b) Subject to submission of VAT claims and their acceptance by the applicable tax authorities, VAT paid in
Ecuador by the Company is being refunded or applied as a credit against taxes payable, based on the level
of export sales in any given month. Therefore, a portion of the VAT recoverable has been reclassified as
current assets based on the Company’s assessment of the estimated time for processing VAT claims during
the next twelve months.
4. Inventories
June 30, December 31,
2025 2024
Ore stockpile $ 7,584 $ 8,254
Gold in circuit 14,755 8,546
Doré and concentrate 14,171 18,687
Materials and supplies 52,050 52,723
$ 88,560 $ 88,210
As at June 30, 2025, the Company maintained a provision of $4.0 million (December 31, 2024 - $4.0 million)
associated with obsolete or slow-moving materials and supplies inventory.
5. Property, plant and equipment
Cost
Construction-
in-progress
Mine and
plant
facilities
Machinery
and
equipment Vehicles
Furniture
and office
equipment Total
Balance, January 1,
2024 $ 7,009 $ 986,741 $ 49,591 $ 24,440 $ 2,543 $ 1,070,324
Additions 38,363 47,629 1,086 423 2,730 90,231
Disposals and other - - (1,465) (1,561) - (3,026)
Reclassifications (6,128) 6,128 - - - -
Cumulative translation
adjustment - (1,057) - - (12) (1,069)
Balance, December 31,
2024 39,244 1,039,441 49,212 23,302 5,261 1,156,460
Additions 26,521 1,973 2,089 760 454 31,797
Disposals and other - (111) (112) (400) - (623)
Reclassifications (48,552) 48,522 - - - -
Balance, June 30, 2025 $ 17,243 $ 1,089,825 $ 51,189 $ 23,662 $ 5,715 $ 1,187,634
===== SIDA 34 =====
LUNDIN GOLD INC.
Notes to the condensed consolidated interim financial statements as at June 30, 2025
(Unaudited – Prepared by Management)
(Expressed in U.S. Dollars unless otherwise noted. Tables are expressed in thousands of U.S. dollars, except share
and per share amounts)
7
5. Property, plant and equipment (continued)
Accumulated depletion
and depreciation
Construction-
in-progress
Mine and
plant
facilities
Machinery
and
equipment Vehicles
Furniture
and office
equipment Total
Balance, January 1,
2024 $ - $ 306,896 $ 24,669 $ 19,583 $ 280 $ 351,428
Depletion and
depreciation - 102,883 6,530 1,884 831 112,128
Disposals and other - (866) (1,561) - (2,427)
Cumulative translation
adjustment - (371) - - (1) (372)
Balance, December 31,
2024 - 409,408 30,333 19,906 1,110 460,757
Depletion and
depreciation - 50,502 3,449 826 817 55,594
Disposals and other - - (79) (400) - (479)
Balance, June 30, 2025 $ - $ 459,910 $ 33,703 $ 20,332 $ 1,927 $ 515,872
Net book value
As at December 31,
2024 $ 39,244 $ 630,033 $ 18,879 $ 3,396 $ 4,151 $ 695,703
As at June 30, 2025 $ 17,243 $ 629,915 $ 17,486 $ 3,330 $ 3,788 $ 671,762
6. Mineral properties
Cost Fruta del Norte
Balance, January 1, 2024 $ 160,028
Adjustments to restoration asset (1,677)
Depletion (25,319)
Balance, December 31, 2024 133,032
Depletion (11,238)
Balance, June 30, 2025 $ 121,794
===== SIDA 35 =====
LUNDIN GOLD INC.
Notes to the condensed consolidated interim financial statements as at June 30, 2025
(Unaudited – Prepared by Management)
(Expressed in U.S. Dollars unless otherwise noted. Tables are expressed in thousands of U.S. dollars, except share
and per share amounts)
8
7. Accounts payable and accrued liabilities
June 30, December 31,
2025 2024
Accounts payable $ 18,493 $ 18,261
Accrued liabilities 37,094 43,561
Accrued profit sharing to employees and royalties 54,680 48,125
$ 110,267 $ 109,947
8. Long-term debt
The stream loan credit facility (the “Stream Facility”) and the offtake derivative liability (the “Offtake”) were
accounted for as financial liabilities at fair value through profit or loss until the closing of their buy out from Newmont
Corporation (“Newmont”) on June 27, 2024 (the “Closing Date”) following payment of the first tranche of the
purchase price of $180 million. The second and final tranche of $150 million was paid on September 30, 2024.
The total buy out price of $330 million was comprised of the remaining unamortized principal balance of $94.4
million and finance expense of $235.6 million. The derivative adjustments during the six months ended June 30,
2024 reflect the reversal of accumulated derivative adjustments recorded on the Stream Facility since its inception
in 2017.
Until the Closing Date, the Company made scheduled monthly payments under the Stream Facility totaling $35.8
million of which $6.7 million was paid on account of principal; $3.7 million for accrued interest; and the remaining
$25.4 million as a finance expense. Following the buy out of the Stream Facility, the remaining balance of deferred
transaction costs were recognized within finance expense.
9. Share capital
Authorized:
Unlimited number of common shares without par value
Unlimited number of preference shares without par value
During the six months ended June 30, 2025, the Company issued 252,592 common shares to Newmont, indirectly
through its subsidiary Newcrest Canada Inc. (“Newcrest”) at a weighted average price of CAD$60.89 per share for
total proceeds of $11.2 million. During the year ended December 31, 2024, 804,340 common shares were issued
to Newcrest at a weighted average price of CAD$22.40 per share for total proceeds of $13.1 million. These
issuances were completed in accordance with Newcrest’s anti-dilution rights granted as part of its initial investment
into the Company.
===== SIDA 36 =====
LUNDIN GOLD INC.
Notes to the condensed consolidated interim financial statements as at June 30, 2025
(Unaudited – Prepared by Management)
(Expressed in U.S. Dollars unless otherwise noted. Tables are expressed in thousands of U.S. dollars, except share
and per share amounts)
9
10. Stock-based compensation
i. Stock options
During the six months ended June 30, 2025, 143,500 stock options were granted to employees and non-
employees. These options have a weighted average exercise price of CAD$38.58, an expiry date of five years
and vest over a period of three or four years from date of grant. The total number of stock options outstanding
at June 30, 2025 was 1,724,203.
The fair value based method of accounting was applied to stock options granted on the date of grant using
the Black-Scholes option pricing model with the following weighted-average assumptions:
June 30, 2025
Risk-free interest rate 2.64%
Expected stock price volatility 35.27%
Expected life 4 years
Expected dividends (CAD) $1.13
Weighted-average fair value per option granted (CAD) $9.29
During the six months ended June 30, 2025, the Company recorded stock-based compensation expense of
$0.5 million (six months ended June 30, 2024 – $0.7 million) related to stock options.
ii. Share units
The Company has issued and outstanding deferred share units (DSUs), restricted share units without
performance criteria (RSUs), and restricted share units with performance criteria (PSUs) (collectively, “Share
Units”). Share Units were initially expected to be settled in shares. However, starting December 31, 2024, to
the extent permitted by the Company’s omnibus incentive plan and subject to the continued discretion of the
Company’s board of directors, Share Units are expected to generally settle in cash. As a result, the Share
Units were reclassified as financial liabilities measured at fair value.
During the six months ended June 30, 2025, the Company granted 296,723 Share Units. In addition, in
connection with dividends paid during the six months ended June 30, 2025, 15,546 Share Units were granted
as Dividend Equivalents. The total number of Share Units outstanding at June 30, 2025 was 603,088.
During the six months ended June 30, 2025, the Company recorded stock-based compensation expense of
$18.9 million (six months ended June 30, 2024 – $3.5 million) related to Share Units which reflect the
Company’s rising share price during 2025.
During the six months ended June 30, 2025, total stock-based compensation expense was $19.4 million (six
months ended June 30, 2024 – $4.2 million expense).
===== SIDA 37 =====
LUNDIN GOLD INC.
Notes to the condensed consolidated interim financial statements as at June 30, 2025
(Unaudited – Prepared by Management)
(Expressed in U.S. Dollars unless otherwise noted. Tables are expressed in thousands of U.S. dollars, except share
and per share amounts)
10
11. Revenues
Three months ended
June 30,
Six months ended
June 30,
2025 2024 2025 2024
Doré sales (a) $ 155,795 $ 101,484 $ 267,950 $ 177,953
Concentrate sales 285,462 202,447 500,722 347,119
Gain (loss) on provisionally priced
trade receivables
11,623
(2,500)
40,553
3,100
$ 452,880 $ 301,431 $ 809,225 $ 528,172
(a) During the six months ended June 30, 2024, doré sales were to Newmont under the Offtake until the Closing
Date of the buy out of the Stream Facility and Offtake.
12. Operating expenses
Three months ended
June 30,
Six months ended
June 30,
2025 2024 2025 2024
Direct production costs $ 59,535 $ 61,572 $ 118,671 $ 121,383
Transportation 6,609 5,532 12,742 10,962
Direct sales costs, including employee
portion of profit sharing
9,785 5,375 17,401 8,014
Change in inventories 1,533 3,687 1,212 3,075
$ 77,462 $ 76,166 $ 150,026 $ 143,434
13. Exploration
Three months ended
June 30,
Six months ended
June 30,
2025 2024 2025 2024
Catering and camp expenses $ 943 $ 665 $ 1,822 $ 1,248
Concessions and land 711 88 1,147 575
Development - 413 - 413
Drilling 5,650 3,909 10,340 7,179
Environmental 372 260 778 496
Geophysics 343 - 660 -
Salaries and benefits 1,898 1,780 3,584 3,341
Sampling and supplies 2,654 1,343 4,294 2,967
Study and evaluation 300 - 360 -
Others 406 406 684 570
$ 13,277 $ 8,864 $ 23,669 $ 16,789
===== SIDA 38 =====
LUNDIN GOLD INC.
Notes to the condensed consolidated interim financial statements as at June 30, 2025
(Unaudited – Prepared by Management)
(Expressed in U.S. Dollars unless otherwise noted. Tables are expressed in thousands of U.S. dollars, except share
and per share amounts)
11
14. Administration
Three months ended
June 30,
Six months ended
June 30,
2025 2024 2025 2024
Corporate social responsibility $ 566 $ 479 $ 912 $ 1,165
Investor relations 139 102 249 138
Office and general 814 778 1,979 1,839
Professional fees 573 750 1,170 1,307
Regulatory and transfer 340 106 609 360
Salaries and benefits 972 1,030 3,248 3,958
Special government levy (a) - - - 1,913
Stock-based compensation 12,500 1,427 19,422 4,197
Travel 222 180 632 362
$ 16,126 $ 4,852 $ 28,221 $ 15,239
(a) In March 2024, the Government of Ecuador introduced a special one-time temporary security contribution to
strengthen security amid rising violence in the country.
15. Finance expense
Three months ended
June 30,
Six months ended
June 30,
2025 2024 2025 2024
Interest expense $ - $ 1,817 $ - $ 3,693
Finance expense - 15,272 - 25,415
Finance expense on buy out of
stream and offtake (Note 8)
-
235,575
-
235,575
Accretion of transaction costs - 1,785 - 1,859
$ - $ 254,449 $ - $ 266,542
16. Related party transactions
i. Key management compensation
Key management includes executive officers and directors of the Company. The compensation paid or
payable to key management for employee services during the six months ended June 30 is shown below.
June 30, June 30,
2025 2024
Salaries, bonuses and benefits $ 3,450 $ 3,165
Stock-based compensation 15,601 2,811
$ 19,051 $ 5,976
===== SIDA 39 =====
LUNDIN GOLD INC.
Notes to the condensed consolidated interim financial statements as at June 30, 2025
(Unaudited – Prepared by Management)
(Expressed in U.S. Dollars unless otherwise noted. Tables are expressed in thousands of U.S. dollars, except share
and per share amounts)
12
16. Related party transactions (continued)
ii. Other related party transactions
During the six months ended June 30, 2025, the Company incurred $0.5 million (six months ended June 30,
2024 – $1.0 million), primarily relating to office rental and related services provided by Namdo Management
Services Ltd. (“Namdo”), a company associated with a director of the Company. In addition, the Company
entered into transactions with its largest shareholder, Newmont, during the six months ended June 30, 2025
and June 30, 2024 as disclosed in Note 8, Note 9, and Note 11.
17. Income taxes
Current income tax expense is generated from net income for tax purposes in Ecuador relating to operations at
Fruta del Norte. In addition to corporate income taxes in Ecuador which are levied at a rate of 22% and dividend
withholding taxes levied at a rate of 5% related to the anticipated portion of net income distributed from Ecuador,
included in current income tax expense is the portion of profit sharing payable to the Government of Ecuador which
is calculated at the rate of 12% of net income for tax purposes. The employee portion of profit sharing, calculated
at the rate of 3% of net income for tax purposes, is considered an employment benefit and included in operating
costs.
The Company pays monthly corporate income tax instalment payments based on a percentage of monthly
revenues. Remaining corporate income taxes owed, if any, and profit sharing in Ecuador are due in April of each
year. In addition, audits by the tax authorities in Ecuador may result in additional taxes owed from time to time
due to differing interpretations of tax law which may impact the Company’s financial results.
The rates used in Ecuador differ from the amount that would result from applying the Canadian federal and
provincial income tax rates to net income before tax. These differences result from the following items:
Three months ended
June 30,
Six months ended
June 30,
2025 2024 2025 2024
Net income before tax $ 288,696 $ 171,547 $ 505,258 $ 242,066
Canadian federal and provincial
income tax rates
27%
27%
27%
27%
Income tax expense based on the
above rates
77,948
46,318
136,420
65,358
Increase (decrease) due to:
Differences in foreign tax rates (5,114) 7,739 (14,952) 11,264
Non-deductible costs 1,705 (2,628) 6,989 899
Withholding taxes (current and deferred) 11,135 1,040 17,939 2,500
Losses and temporary differences for
which an income tax asset has not been
recognized 3,965
(213)
6,049
857
Other 2,326 - 2,582 -
Income tax expense $ 91,965 $ 52,256 $ 155,027 $ 80,878
===== SIDA 40 =====
LUNDIN GOLD INC.
Notes to the condensed consolidated interim financial statements as at June 30, 2025
(Unaudited – Prepared by Management)
(Expressed in U.S. Dollars unless otherwise noted. Tables are expressed in thousands of U.S. dollars, except share
and per share amounts)
13
18. Supplemental cash flow information
Cash and cash equivalents are comprised of the following:
June 30, December 31,
2025 2024
Cash $ 342,599 $ 224,783
Short-term investments 150,773 124,417
$ 493,372 $ 349,200
Other supplemental cash information:
Three months ended
June 30,
Six months ended
June 30,
2025 2024 2025 2024
Taxes and profit sharing paid to the
Government of Ecuador $
125,977 $
80,946
$
159,523
$
97,040
Change in accounts payable and accrued
liabilities related to:
Acquisition of property, plant and
equipment $ (399) $ 4,781
$ (6,872)
$
1,841
19. Segmented information
Operating segments are components of an entity that engage in business activities from which they incur expenses
and whose operating results are regularly reviewed by a chief operating decision maker to make resource
allocation decisions and to assess performance. The Chief Executive Officer is responsible for allocating
resources and reviewing operating results of each operating segment on a periodic basis.
The Company’s primary business activity is the Fruta del Norte operating mine in Ecuador where all revenues
originate. Materially all of the Company’s non-current assets and non-current liabilities relate to Fruta del Norte.
In addition, the Company conducts exploration activities and maintains a number of concessions in Ecuador
outside of Fruta del Norte.
===== SIDA 41 =====
LUNDIN GOLD INC.
Notes to the condensed consolidated interim financial statements as at June 30, 2025
(Unaudited – Prepared by Management)
(Expressed in U.S. Dollars unless otherwise noted. Tables are expressed in thousands of U.S. dollars, except share
and per share amounts)
14
19. Segmented information (continued)
The following are summaries of the Company’s current and non-current assets, current and non-current liabilities,
and income from mining operations:
Fruta del
Norte
Exploration
activities
Corporate
and other Total
As at June 30, 2025
Current assets $ 504,409 $ 541 $ 300,090 $ 805,040
Non-current assets 813,242 66 551 813,859
Total assets 1,317,651 607 300,641 1,618,899
Current liabilities 227,555 438 14,774 242,767
Non-current liabilities 61,017 - 10,960 71,977
Total liabilities 288,572 438 25,734 314,744
For the three months ended June 30, 2025
Revenues 452,880 - - 452,880
Operating expenses (77,462) - - (77,462)
Royalty expenses (25,915) - - (25,915)
Depletion and depreciation (35,342) - - (35,342)
Income from mining operations 314,161 - - 314,161
For the six months ended June 30, 2025
Revenues 809,225 - - 809,225
Operating expenses (150,026) - - (150,026)
Royalty expenses (46,555) - - (46,555)
Depletion and depreciation (64,937) - - (64,937)
Income from mining operations 547,707 - - 547,707
===== SIDA 42 =====
LUNDIN GOLD INC.
Notes to the condensed consolidated interim financial statements as at June 30, 2025
(Unaudited – Prepared by Management)
(Expressed in U.S. Dollars unless otherwise noted. Tables are expressed in thousands of U.S. dollars, except share
and per share amounts)
15
19. Segmented information (continued)
Fruta del
Norte
Exploration
activities
Corporate
and other Total
As at June 30, 2024
Current assets $ 450,534 $ 540 $ 62,681 $ 513,755
Non-current assets 881,608 90 1,043 882,741
Total assets 1,332,142 630 63,724 1,396,496
Current liabilities 258,650 690 828 260,168
Non-current liabilities 77,498 - 8,550 86,048
Total liabilities 336,148 690 9,378 346,216
For the three months ended June 30, 2024
Revenues 301,431 - - 301,431
Operating expenses (76,166) - - (76,166)
Royalty expenses (17,656) - - (17,656)
Depletion and depreciation (35,852) - - (35,852)
Income from mining operations 171,757 - - 171,757
For the six months ended June 30, 2024
Revenues 528,172 - - 528,172
Operating expenses (143,434) - - (143,434)
Royalty expenses (30,444) - - (30,444)
Depletion and depreciation (69,300) - - (69,300)
Income from mining operations 284,994 - - 284,994
The Company generated 76% of its revenue from four major customers during the six months ended June 30,
2025 (June 30, 2024 – 70% from three major customers). However, the Company is not economically dependent
on these customers as gold and silver can be sold to and through numerous banks and commodity market traders
worldwide.
20. Financial instruments
The Company’s financial instruments include cash, cash equivalents and certain receivables, which are
categorized as financial assets at amortized cost, and accounts payable and accrued liabilities, which are
categorized as financial liabilities at amortized cost. The fair value of these financial instruments approximates
their carrying values due to the short-term nature of these instruments. Further, provisionally priced trade
receivables of $146.7 million (December 31, 2024 - $156.0 million) are measured at fair value using quoted forward
market prices (Fair value hierarchy level 2).
===== SIDA 43 =====
LUNDIN GOLD INC.
Notes to the condensed consolidated interim financial statements as at June 30, 2025
(Unaudited – Prepared by Management)
(Expressed in U.S. Dollars unless otherwise noted. Tables are expressed in thousands of U.S. dollars, except share
and per share amounts)
16
21. Commitments
Significant capital and other expenditures contracted as at June 30, 2025 but not recognized as liabilities are as
follows:
Capital
Expenditures Other
12 months ending June 30, 2026 $ 23,975 572
July 1, 2026 onward - 7,242
Total $ 23,975 7,814
The Company’s sales are subject to a 5% net smelter royalty payable to the Government of Ecuador and a 1% net
smelter royalty payable to third parties.
===== SIDA 44 =====
Corporate Information
BOARD OF DIRECTORS
Jack Lundin, Chairman
Vancouver, Canada
Carmel Daniele
London, United Kingdom
Gillian Davidson
Edinburgh, United Kingdom
Ian Gibbs
Vancouver, Canada
Melissa Harmon
Denver, USA
Ashley Heppenstall
London, United Kingdom
Ron F. Hochstein
Vancouver, Canada
Scott Langley
Toronto, Canada
Angelina Mehta
Montreal, Canada
OFFICERS
Ron F. Hochstein
President & Chief Executive Officer
Chester See Chief Financial Officer Terry Smith Chief Operating Officer Sheila Colman
Vice President, Legal and Sustainability
Andre Oliveira Vice President, Exploration Brendan Creaney Vice President, Corporate Development and Investor Relations
OFFICES
CORPORATE HEAD OFFICE
Lundin Gold Inc.
Four Bentall Centre
1055 Dunsmuir Street, Suite 2800
Vancouver, BC V7X 1L2
Telephone: 604-689-7842
Toll Free: 1-888-689-7842
Facsimile: 604-689-4250
REGIONAL HEAD OFFICE
Aurelian Ecuador S.A.,
a subsidiary of Lundin Gold Inc.
Av. Amazonas N37-29 y UNP Edificio
Eurocenter, Piso 5
Quito, Pichincha
Ecuador
Telephone: 593-2-299-6400
COMMUNITY OFFICE
Calle 1ro de Mayo y 12 de Febrero,
esquina
Los Encuentros, Zamora-Chinchipe,
Ecuador
STOCK EXCHANGE
LISTINGS
The Toronto Stock Exchange
Trading Symbol: LUG
Nasdaq Stockholm
Trading Symbol: LUG
SHARE REGISTRAR AND
TRANSFER AGENT
Computershare Investor Services Inc.
510 Burrard Street, 3rd Floor
Vancouver, BC V6C 3B9
Telephone: 1-800-564-6253
AUDITOR
PricewaterhouseCoopers LLP
250 Howe St, Suite 700
Vancouver, BC V6C 3S7
Telephone: 604-806-7000
ADDITIONAL INFORMATION
Further information about Lundin Gold
is available by contacting:
Brendan Creaney
Vice President, Corporate
Development and Investor
Relations
Telephone: 604-806-3089
Toll Free: 1-888-689-7842
info@lundingold.com
Lundin Gold Ecuador
===== SIDA 45 =====
Four Bentall Centre
1055 Dunsmuir Street, Suite 2800
Vancouver, BC V7X 1L2
Canada
Av. Amazonas N37-29 y UNP Edificio
Eurocenter, Piso 5
Quito, Pichincha, Ecuador
Telephone: 604-689-7842
Toll Free: 1-888-689-7842
Telephone: 593-2-299-6400
info@lundingold.com www.lundingold.com
@LundinGold @LundinGoldEC Lundin Gold
Lundin Gold
Lundin Gold Ecuador