FULLTEXT DEL 1 AV 1
Kvartalsrapport Q3 2025
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NEWS RELEASE
Vancouver, November 6, 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 THIRD QUARTER 2025 RESULTS
Record mill throughput alongside record net income and earnings per share
Lundin Gold Inc. (TSX: LUG; Nasdaq Stockholm: LUG; OTCQX: LUGDF) ("Lundin Gold" or the "Company") today
announced its financial results for the third quarter of 2025, featuring revenues of $447 million and record net
income of $208 million ($0.86 per share). Free cash flow1 of $191 million ($0.79 per share) was driven by gold
sales of 124,911 ounces (“oz”) at an average realized gold price 1 of $3,634 per oz, at cash operating costs1 of
$861 and all-in sustaining costs1 (“AISC”) of $1,036 per oz sold. While record-high gold prices have strengthened
financial performance, they have also increased royalties and statutory profit sharing payable to employees,
which impact both cash operating costs 1 and AISC1. The Company also announced cash dividends of $0.80 per
share (approximately $193 million) comprised of the fixed quarterly dividend of $0.30 per share and the variable
quarterly dividend of $0.50 per share, to be paid at the end of the fourth quarter. All dollar amounts are stated
in US dollars unless otherwise indicated.
Ron Hochstein, President and CEO commented , "I’m extremely pleased to announce that Lundin Gold has
delivered an exceptional third quarter highlighted by record net income of $208 million and robust free cash flow
of $191 million. This high-margin performance, with an AISC of $1,036 against an average realized gold price1 of
$3,634 per oz sold, demonstrates the world-class quality of Fruta del Norte. Our financial strength enabled our
Board to declare a substantial dividend of $0. 80 per share increasing the variable component this quarter to
reflect 100% of normalized free cash flow from the policy’s minimum of 50%.
With three quarters of strong results, we remain firmly on track to achieve our full -year production guidance
while expecting to finish at the upper end of our cash operating cost 1 and AISC 1 guidance range due to the
significant increase in the gold price.
As I transition to a new role in the Lundin Group , I am confident that Lundin Gold is well positioned to continue
delivering strong performance under Jamie Beck’s leadership, as he joins in the role of President and Chief
Executive Officer on November 7th...The best is yet to come!"
OPERATING AND FINANCIAL RESULTS SUMMARY
The following two tables provide an overview of key operating and financial results.
Three months ended
September 30,
Nine months ended
September 30,
2025 2024 2025 2024
Tonnes ore mined 480,519 427,389 1,332,367 1,266,320
1 Refer to “Non-IFRS Measures” section.
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Three months ended
September 30,
Nine months ended
September 30,
2025 2024 2025 2024
Tonnes ore milled 484,296 425,340 1,343,275 1,263,835
Average mill throughput (tpd) 5,264 4,623 4,920 4,613
Average head grade (g/t) 8.9 10.3 9.8 10.3
Average recovery 88.2% 86.8% 89.3% 88.0%
Gold ounces produced 122,086 122,154 378,832 366,788
Gold ounces sold 124,911 125,887 379,289 364,199
Three months ended
September 30,
Nine months ended
September 30,
2025 2024 2025 2024
Revenues ($’000) 447,119 323,087 1,256,344 851,259
Income from mining operations ($’000) 305,228 203,184 852,935 488,178
Earnings before interest, taxes, depreciation, and amortization ($’000)1 311,680 220,469 872,022 789,150
Adjusted earnings before interest, taxes, depreciation, and amortization ($’000)1 311,680 220,469 872,022 547,326
Net income ($’000) 207,715 135,715 557,946 296,903
Basic income per share ($) 0.86 0.57 2.32 1.24
Cash provided by operating activities ($’000) 215,533 217,873 664,623 466,406
Free cash flow ($’000)1 191,148 181,196 597,601 136,478
Free cash flow per share ($)1 0.79 0.76 2.48 0.57
Average realized gold price ($/oz sold)1 3,634 2,616 3,364 2,389
Cash operating cost ($/oz sold)1 861 681 802 713
All-in sustaining costs ($/oz sold)1 1,036 877 957 874
Adjusted earnings ($‘000)1 207,715 135,715 557,946 292,449
Adjusted earnings per share ($)1 0.86 0.57 2.32 1.22
Dividends paid per share ($) 0.79 0.20 1.95 0.40
THIRD QUARTER HIGHLIGHTS
Financial Results
• Gold sales totaled 124,911 oz, consisting of 81,790 oz in concentrate and 43,121 oz as doré, resulting in
gross revenues of $454 million at an average realized gold price 1 of $3,634 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 June 30, 2025. Net of treatment and refining charges, revenues for the quarter were
$447 million.
• Average realized gold price1 includes $3,446 per oz of gross price received and a favourable impact of $188
per ounce from adjustments to provisionally priced sales.
• Cash operating costs1 and AISC1 were $861 and $1,036 per oz of gold sold, respectively. These figures reflect
the impact of higher accrued royalties and statutory profit sharing payable to employees which were driven
by record-high average realized gold prices1.
• The Company generated cash from operating activities of $216 million and free cash flow1 of $191 million,
or $0.79 per share, resulting in a cash balance of $494 million at September 30, 2025.
1 Refer to “Non-IFRS Measures” section.
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o The cash balance remained consistent with June 30, 2025, as the dividend payment of $191
million, determined based on second quarter results, offset free cash flow1 generated during the
third quarter.
o In addition to monthly corporate income tax instalment payments, the Company paid in advance
corporate income tax of $50.6 million. This amount, along with monthly corporate income tax
instalment payments, will be deductible from annual corporate income taxes due in April 2026.
Production Results
• The mine ramped up during the third quarter to keep pace with the mill resulting in a record 480,519 tonnes
mined at an average grade of 7.9 g/t.
• The mill processed 484,296 tonnes at an average throughput rate of 5,264 tpd, with average recoveries of
88.2%. Recoveries were affected by ore variability which impacted performance of the floatation circuit.
The average grade of ore milled was 8.9 g/t.
• Gold production was 122,086 oz which was comprised of 78,172 oz in concentrate and 43,914 oz as doré.
Outlook
• The Company remains on track to meet its revised annual production guidance of 490,000 to 525,000 oz.
Cash operating cost1 and AISC1 are expected to be at the upper end of guidance of $730 to $790 per oz sold
and $935 to $995 per oz sold, respectively.
• While record-high gold prices have significantly strengthened the Company’s financial performance, they
have also resulted in higher royalties and statutory profit sharing payable to employees, which in turn
impact both cash operating costs1 and AISC1. For every $100 per oz increase in gold price, these metrics are
estimated to increase by approximately $10 per oz. The Company’s guidance was based on a gold price
assumption of $2,500 per oz while average realized gold prices 1 during the 2025 Period was $3,364 per oz
– an increase of $864 per oz. This variance in costs exceeds the $60 per oz span of the Company’s cash
operating cost1 and AISC1 guidance ranges.
• The near-mine underground drilling program is expected to continue to advance at FDNS where the primary
focus is the conversion and expansion of the resources while concurrently exploring the FDN East target.
The surface drilling program is expected to continue to explore the recently discovered copper -gold
porphyry corridor which hosts Trancaloma and Sandia, advance at Castillo, and explore new sectors around
FDN and along the south extension of the Suarez Basin.
• Seventeen rigs are currently turning across the conversion and near -mine exploration programs. The
Company continues to allocate capital to organic growth and based on recent drilling results on the
porphyry district, has further expanded its 2025 exploration program from an original 80,000 to a minimum
of 120,000 metres. This represents the largest drill program ever completed on the land package that hosts
the FDN deposit. 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 to be updated in Q1 2026.
1 Refer to “Non-IFRS Measures” section.
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• 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.
• 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 September 30, 2025, the Company is in a strong financial position.
(in thousands of U.S. dollars) As at September 30,
2025
As at December 31,
2024
Financial Position:
Cash 494,369 349,200
Working capital 576,799 458,944
Total assets 1,638,974 1,527,481
Long-term debt - -
As at September 30, 2025, the Company had cash of $494 million and a working capital balance of $577
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
$665 million and proceeds from the exercise of stock options and anti -dilution rights totaling $18.2 million.
This is offset by dividends paid of $471 million and capital expenditures of $67.0 million.
Capital Expenditures
Sustaining Capital Expenditures1
• Sustaining capital expenditures1 during the second quarter were $14.3 million.
• Construction of the fifth tailings dam raise is well underway and is on track for completion during the first
quarter of 2026.
• Other projects that were completed or advanced during the quarter included enhancements to camp
facilities, construction of administration building, as well as other operational infrastructure improvements.
Non-Sustaining Capital Expenditures1
1 Refer to “Non-IFRS Measures” section.
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• Non-sustaining capital expenditures1 of $7.7 million are comprised of growth-oriented investments such as
new projects, expansions, conversion drilling, and associated permitting and study expenditures not related
to current operations.
• The 2025 conversion drilling program is focused on FDNS, located in the southern portion of the FDN
deposit. During the third quarter, the conversion drilling program completed approximately 8,976 metres
across 64 holes with four rigs currently turning.
o The completed holes confirmed continuity of the mineralization and indicated higher grade
zones within the vein system. Some conversion drill holes also intercepted mineralized zones
outside of the existing geological model.
o Several results for the FDNS conversion drilling program remain pending and are expected to be
reported during the fourth quarter of 2025.
Health and Safety
During the third quarter there were no Lost Time Incidents and four Medical Aid Incidents . The Total
Recordable Incident Rate across the Company was 0. 37 per 200,000 hours worked for the quarter and 0.20
for the first nine months of 2025.
Community
Lundin Gold sponsored community projects continued to advance in the third quarter of 2025. The first phase
of one of the Company’s most impactful programs, which focused on mental health and well -being in local
communities, successfully concluded during the quarter, surpassing several of the targets set for the program.
Phase 2 of the program commenced during the quarter and is expected to run until December 2026. By the
end of the third quarter, approximately 415 counselling sessions were provided to 7 6 local community
residents. In addition, the sports academy component of the program had 484 youth registered in extra -
curricular activities, including basketball, soccer, dance, music, and boxing.
Engagement with numerous local governments continues to support rural road maintenance, road
emergencies caused by extreme weather events, community wellbeing, and the Company’s regional
exploration activities. In response to flooding in the province of Zamora Chinchipe during the quarter, Lundin
Gold provided humanitarian aid to support affected families and road maintenance support in the affected
zone in coordination with the Ministry of Transportation and Public Works. During the quarter, the Company
committed to several significant projects focused on dairy productivity enhancement and the paving of the
El Zarza – Jardín del Cóndor Road which is a key part of the public road from Los Encuentros to FDN.
Lundin Gold continued to participate in the community dialogue roundtable process. Six separate roundtables
were held in July and September. Approximately 380 individuals participated in these sessions including local
vendors, local authorities, and Lundin Gold personnel.
Local businesses received ongoing support from the Company, in partnership with the Lundin Foundation.
The local companies that participated in the Lundin Foundation’s supplier development program continued
to provide products and services to FDN, while also advancing growth strategies. In addition, strengthening
1 Refer to “Non-IFRS Measures” section.
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the Company’s long -standing relationship with the Shuar Indigenous Peoples, Lundin Gold, the Lundin
Foundation, and the Shuar continued to collaborate to advance the implementation of a Shuar tire
distribution business to supply FDN.
EXPLORATION
Near-Mine Exploration Program
During the third quarter of 2025, the Company completed a total of 32,973 metres across 58 holes from
surface and underground.
The underground near mine drilling program focused on the FDNS deposit, which remains open for expansion
in the north and along the south extensions and where one underground rig is currently turning. The
underground drilling program also continues to advance at FDN East (“FDNE”) where one rig is exploring the
mineralization continuity in the central portion of this target. As at the date of this MD&A, two underground
rigs are active in the near mine drilling program.
The surface near mine drilling program advanced in the recently discovered copper-gold mineralization at
Trancaloma and Sandia. Furthermore, the near mine drilling program continues to explore the FDN deposit
at depth, the Castillo target, and in distinct sectors along the south extension of the Suarez Basin. As at the
date of this MD&A, 11 surface rigs are drilling with three at Sandia, two at Trancaloma, one at Castillo, one
at FDN at depth, and four at new sectors.
• At Trancaloma, located four kilometres from FDN, results of the drilling program confirmed the lateral and
vertical continuity of the copper -gold porphyry mineralization. In the eastern portion of the target, the
drilling program extended the mineralizati on along the northwestern direction and indicated areas for
further expansion.
• At Sandia, located two kilometres from FDN, results of the drilling program indicated the continuity of the
copper-gold mineralization. All completed drill holes in the period confirmed the occurrence of a shallow
wide copper -gold porphyry mineralization and extended the mineralized zone along the northwestern
direction and at depth.
• At Castillo, an exploratory hole intercepted a higher-grade copper-gold mineralized interval associated
with significant sulfide levels and indicated new areas for further drilling under the Suarez Basin cover.
• At FDN, directional drilling technology continues to be 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
are testing the mineralization continuity at distinct depths of the FDN deposit.
• An exploratory drilling program is underway to define additional exploration targets underneath the Suarez
Basin cover. The program is systematically testing the presence of hydrothermal alteration horizons and
epithermal deposits pathfinder elements hosted in the Suarez Basin sediments, which could potentially
indicate gold epithermal systems at depth.
• 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 continues to
cover unexplored sectors in the near mine area.
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• 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 this Mineral
Resource into FDN’s 2026 updated long-term mine plan.
A table of third quarter 2025 near mine results for the Trancaloma, Sandia, and Castillo targets received to
date can be found in Lundin Gold’s press release dated November 3, 2025. Several results for the FDNS and
FDNE drilling programs remain pending and are expected to be announced during the fourth quarter.
Regional Exploration Program
The Company advanced its multi -year regional exploration program during the third 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 which resulted in the identification of additional
potential targets for further evaluation. Furthermore, exploration activities advanced at the Soberano
concession, located approximately 22 kilometres southwest of FDN, where geological mapp ing followed by
soil and rock sampling were completed. An airborne geophysics survey (Radiometric and Magnetic) was
concluded and covered most of the regional concessions.
CORPORATE
• In September, the Company announced a planned leadership transition with Mr. Ron Hochstein stepping
down as President, CEO, and Director of the Company. Mr. Jamie Beck will be appointed President, CEO,
and Director effective November 7, 2025.
• During the quarter, Lundin Gold completed its new five-year sustainability strategy (2026-2030) to coincide
with the expiry of its current five -year strategy. Anchored by the vision of “Transforming lives through
responsible mining”, the strategy is built on five strategic pillars: Shared Prosperity, Stakeholder Trust,
Responsible Governance, Environmental Stewardship and Valued Workforce. With ambitious targets for
2030 and beyond, this strategy will guide Lundin Gold’s legacy as a leading gold company, a trusted
community partner and a driver of long-term local prosperity.
• The Company paid a quarterly dividend of $0.79 per share, comprised of the fixed dividend of $0.30 per
share and variable dividend of $0.49 per share, on September 25, 2025 (September 30, 2025 for shares
trading on Nasdaq Stockholm) for a total of $191 million.
• With the release of its third quarter 2025 results, the Company has declared cash dividends totaling $0. 80
per share, comprised of the fixed dividend of $0.30 per share and variable dividend of $0. 50 per share,
payable on December 22, 2025 (December 30, 2025 for shares trading on Nasdaq Stockholm) to
shareholders of record at the close of business on December 5, 2025. Pursuant to the Company’s dividend
policy, the variable dividend was calculated bas ed on 100% of the Company’s normalized free cash flow
during the third quarter of 2025, after deducting the fixed dividend paid, which exceeds the policy’s
minimum threshold of 50%.
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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 w ith the
requirements of NI 43-101.
Webcast and Conference Call
The Company will host a conference call and webcast to discuss its results on November 7 at 8:00 a.m. PT,
11:00 a.m. ET, 5:00 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 / 51479
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 November 15, 2025.
Toll Free North America Replay Number: +1 888-660-6345
International Replay Number: +1 416-764-8677
Replay passcode: 51479 #
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 excelle nce
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
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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 13 of the Company's MD&A for the period ended
September 30, 2025 available on SEDAR+.
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 November 6, 2025 at 4:30 p.m. Pacific
Time through the contact persons set out below.
For more information, please contact
Brendan Creaney
Vice President, Corporate Development & Investor Relations
Tel: +1-604-376-4595
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, ob jectives,
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 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 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; management changes; benefits of the Company’s
community programs; the Company’s declaration and payment of dividends pursuant to its dividend policy; 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 relati ng 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;
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health and safety; human rights; employee misconduct; measures to protect biodiversity, endangered species and critical habit ats;
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; conf licts
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 c ould
differ materially from those anticipated in this forward -looking information as a result of the factors discussed under the he ading
“Risk Factors” in the Company’s Annual Information Form dated March 17, 2025 available at www.sedarplus.ca.
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Q3 2025
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LUNDIN GOLD INC.
Management’s Discussion and Analysis
Nine Months Ended September 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 nine months ended September 30, 2025 with those of the same period from the previous year.
This MD&A is dated as of November 6, 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 nine months ended
September 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 nine months ended September 30, 2025 and September 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.
THIRD QUARTER 2025 HIGHLIGHTS AND ACTIVITIES
Operating results continue to be strong in the third quarter and are highlighted by the achievement of record mine and
plant throughput of 5,223 tonnes per day (“tpd”) and 5,264 tpd, respectively. This was achieved through continued
debottlenecking efforts following the completion of the process plant expansion project earlier this year. Gold
production during the quarter was 122,086 ounces (“oz”) and sales were 124,911 oz at a cash operating cost1 of $861
per oz sold and all-in sustaining cost (“AISC”)1 of $1,036 per oz sold. Quarterly revenues of $447 million were realized
at an average realized gold price1 of $3,634 per oz. which generated $216 million in cash from operating activities and
$191 million in free cash flow1.
The Company remains on track to meet its revised annual production guidance of 490,000 to 525,000 oz. Due to
elevated gold prices, cash operating cost1 and AISC1 are expected to be at the upper end of guidance of $730 to $790
per oz sold and $935 to $995 per oz sold, respectively. 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. For every
$100 per oz increase in gold price, these metrics are estimated to increase by approximately $10 per oz. The
Company’s guidance was based on a gold price assumption of $2,500 per oz while average realized gold prices1 during
the 2025 Period was $3,364 per oz – an increase of $864 per oz. This variance in costs exceeds the $60 per oz span
of the Company’s cash operating cost1 and AISC1 guidance ranges.
The Company advanced its near-mine and regional exploration programs with results continuing to demonstrate
significant exploration potential and provide a growing pipeline of targets around FDN. Underground drilling focused
on expanding the FDN South (“FDNS”) and FDN East deposits, while surface drilling targeted the recently discovered
copper-gold porphyry corridor which hosts Trancaloma and Sandia. Results confirmed mineralization continuity and
identified new areas for expansion. The conversion program at FDNS indicates high grade zones within the vein
system with additional mineralized zones intercepted outside 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 to be updated in Q1 2026.
Pursuant to the Company’s dividend policy, Lundin Gold has declared cash dividends totaling $0.80 per share,
comprised of the fixed quarterly dividend of $0.30 per share and the variable quarterly dividend of $0.50 per share, to
be paid at the end of the fourth quarter.
1 Refer to “Non-IFRS Measures” section.
===== SIDA 13 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Nine Months Ended September 30, 2025
(All dollar amounts are stated in U.S. dollars unless otherwise indicated. Tables are expressed in thousands of U.S.
dollars, except share and per share amounts)
2
The following two tables provide an overview of key operating and financial results achieved during the third quarter of
2025 compared to the same period in 2024.
Three months ended
September 30,
Nine months ended
September 30,
2025 2024 2025 2024
Tonnes ore mined 480,519 427,389 1,332,367 1,266,320
Tonnes ore milled 484,296 425,340 1,343,275 1,263,835
Average mill throughput (tpd) 5,264 4,623 4,920 4,613
Average mill head grade (g/t) 8.9 10.3 9.8 10.3
Average recovery 88.2% 86.8% 89.3% 88.0%
Gold ounces produced 122,086 122,154 378,832 366,788
Gold ounces sold 124,911 125,887 379,289 364,199
Three months ended
September 30,
Nine months ended
September 30,
2025 2024 2025 2024
Revenues ($’000) 447,119 323,087 1,256,344 851,259
Income from mining operations ($’000) 305,228 203,184 852,935 488,178
Earnings before interest, taxes, depreciation, and
amortization ($’000)1
311,680
220,469
872,022
789,150
Adjusted earnings before interest, taxes,
depreciation, and amortization ($’000)1
311,680
220,469
872,022
547,326
Net income ($’000) 207,715 135,715 557,946 296,903
Basic income per share ($) 0.86 0.57 2.32 1.24
Cash provided by operating activities ($’000) 215,533 217,873 664,623 466,406
Free cash flow ($’000)1 191,148 181,196 597,601 136,478
Free cash flow per share ($)1 0.79 0.76 2.48 0.57
Average realized gold price ($/oz sold)1 3,634 2,616 3,364 2,389
Cash operating cost ($/oz sold)1 861 681 802 713
All-in sustaining costs ($/oz sold)1 1,036 877 957 874
Adjusted earnings ($‘000)1 207,715 135,715 557,946 292,449
Adjusted earnings per share ($)1 0.86 0.57 2.32 1.22
Dividends paid per share ($) 0.79 0.20 1.95 0.40
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.
1 Refer to “Non-IFRS Measures” section.
===== SIDA 14 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Nine Months Ended September 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
Operating and Financial Results During the Third Quarter of 2025
The mine ramped up during the third quarter to keep pace with the mill resulting in a record 480,519 tonnes
mined at an average grade of 7.9 g/t.
The mill processed 484,296 tonnes at an average throughput rate of 5,264 tpd, with average recoveries of
88.2%. Recoveries were affected by ore variability which impacted performance of the floatation circuit. The
average grade of ore milled was 8.9 g/t.
Gold production was 122,086 oz which was comprised of 78,172 oz in concentrate and 43,914 oz as doré.
Gold sales totaled 124,911 oz, consisting of 81,790 oz in concentrate and 43,121 oz as doré, resulting in gross
revenues of $454 million at an average realized gold price1 of $3,634 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 June 30, 2025. Net of treatment and refining charges, revenues for the quarter were $447
million.
Average realized gold price1 includes $3,446 per oz of gross price received and a favourable impact of $188
per ounce from adjustments to provisionally priced sales.
Cash operating costs1 and AISC1 were $861 and $1,036 per oz of gold sold, respectively. These figures
reflect the impact of higher accrued royalties and statutory profit sharing payable to employees which were
driven by record-high average realized gold prices1.
The Company generated cash from operating activities of $216 million and free cash flow1 of $191 million, or
$0.79 per share, resulting in a cash balance of $494 million at September 30, 2025.
o The cash balance remained consistent with June 30, 2025, as the dividend payment of $191 million,
determined based on second quarter results, offset free cash flow1 generated during the third quarter.
o In addition to monthly corporate income tax instalment payments, the Company remitted $50.6 million
to the Government of Ecuador as a partial payment against its annual income taxes due in April
2026.
EBITDA1 was $312 million while income from mining operations was $305 million which, after deducting
corporate, exploration, and taxes, resulted in net income of $208 million for the quarter or $0.86 per share.
Capital Expenditures
Sustaining capital expenditures1
Sustaining capital expenditures1 during the third quarter were $14.3 million.
Construction of the fifth tailings dam raise is well underway and is on track for completion during the first
quarter of 2026.
Other projects that were completed or advanced during the quarter included enhancements to camp facilities,
construction of administration building, as well as other operational infrastructure improvements.
Non-sustaining capital expenditures1
Non-sustaining capital expenditures1 of $7.7 million are comprised of growth-oriented investments such as
new projects, expansions, conversion drilling, and associated permitting and study expenditures not related
to current operations.
The 2025 conversion drilling program is focused on FDNS, located in the southern portion of the FDN
deposit. During the third quarter, the conversion drilling program completed approximately 8,976 metres
across 64 holes with four rigs currently turning.
o The completed holes confirmed continuity of the mineralization and indicated higher grade zones
within the vein system. Some conversion drill holes also intercepted mineralized zones outside of
the existing geological model.
o Several results for the FDNS conversion drilling program remain pending and are expected to be
reported during the fourth quarter of 2025.
1 Refer to “Non-IFRS Measures” section.
===== SIDA 15 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Nine Months Ended September 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 third quarter there were no Lost Time Incidents and four Medical Aid Incidents.
The Total Recordable Incident Rate across the Company was 0.37 per 200,000 hours worked for the quarter
and 0.20 for the 2025 Period.
Community
Lundin Gold sponsored community projects continued to advance in the third quarter of 2025. The first phase of one
of the Company’s most impactful programs, which focused on mental health and well-being in local communities,
successfully concluded during the quarter, surpassing several of the targets set for the program. Phase 2 of the
program commenced during the quarter and is expected to run until December 2026. By the end of the third quarter,
approximately 415 counselling sessions were provided to 76 local community residents. In addition, the sports
academy component of the program had 484 youth registered in extra-curricular activities, including basketball, soccer,
dance, music, and boxing.
Engagement with numerous local governments continues to support rural road maintenance, road emergencies caused
by extreme weather events, community wellbeing, and the Company’s regional exploration activities. In response to
flooding in the province of Zamora Chinchipe during the quarter, Lundin Gold provided humanitarian aid to support
affected families and road maintenance support in the affected zone in coordination with the Ministry of Transportation
and Public Works. During the quarter, the Company committed to several significant projects focused on dairy
productivity enhancement and the paving of the El Zarza – Jardín del Cóndor Road which is a key part of the public
road from Los Encuentros to FDN.
Lundin Gold continued to participate in the community dialogue roundtable process. Six separate roundtables were
held in July and September. Approximately 380 individuals participated in these sessions including local vendors, local
authorities, and Lundin Gold personnel.
Local businesses received ongoing support from the Company, in partnership with the Lundin Foundation. The local
companies that participated in the Lundin Foundation’s supplier development program continued to provide products
and services to FDN, while also advancing growth strategies. In addition, strengthening the Company’s long-standing
relationship with the Shuar Indigenous Peoples, Lundin Gold, the Lundin Foundation, and the Shuar continued to
collaborate to advance the implementation of a Shuar tire distribution business to supply FDN.
Exploration
Near-Mine Exploration Program
During the third quarter of 2025, the Company completed a total of 32,973 metres across 58 holes from surface and
underground.
The underground near mine drilling program focused on the FDNS deposit, which remains open for expansion in the
north and along the south extensions and where one underground rig is currently turning. The underground drilling
program also continues to advance at FDN East where one rig is exploring the mineralization continuity in the central
portion of this target. As at the date of this MD&A, two underground rigs are active in the near mine drilling program.
The surface near mine drilling program advanced in the recently discovered copper-gold mineralization at Trancaloma
and Sandia. Furthermore, the near mine drilling program continues to explore the FDN deposit at depth, the Castillo
target, and in distinct sectors along the south extension of the Suarez Basin. As at the date of this MD&A, 11 surface
rigs are drilling with three at Sandia, two at Trancaloma, one at Castillo, one at FDN at depth, and four at new sectors.
At Trancaloma, located four kilometres from FDN, results of the drilling program confirmed the lateral and
vertical continuity of the copper-gold porphyry mineralization. In the eastern portion of the target, the drilling
program extended the mineralization along the northwestern direction and indicated areas for further
expansion.
===== SIDA 16 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Nine Months Ended September 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 Sandia, located two kilometres from FDN, results of the drilling program indicated the continuity of the
copper-gold mineralization. All completed drill holes in the period confirmed the occurrence of a shallow wide
copper-gold porphyry mineralization and extended the mineralized zone along the northwestern direction and
at depth.
At Castillo, an exploratory hole intercepted a higher-grade copper-gold mineralized interval associated with
significant sulfide levels and indicated new areas for further drilling under the Suarez Basin cover.
At FDN, directional drilling technology continues to be 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 are
testing the mineralization continuity at distinct depths of the FDN deposit.
An exploratory drilling program is underway to define additional exploration targets underneath the Suarez
Basin cover. The program is systematically testing the presence of hydrothermal alteration horizons and
epithermal deposits pathfinder elements hosted in the Suarez Basin sediments, which could potentially
indicate gold epithermal systems at depth.
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 continues to
cover unexplored sectors in the near mine area.
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 this Mineral
Resource into FDN’s 2026 updated long-term mine plan.
A table of third quarter 2025 near mine results for the Trancaloma, Sandia, and Castillo targets received to date can be
found in Lundin Gold’s press release dated November 3, 2025. Several results for the FDNS and FDNE drilling
programs remain pending and are expected to be announced during the fourth quarter.
Regional Exploration Program
The Company advanced its multi-year regional exploration program during the third 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 which resulted in the identification of additional potential targets for further
evaluation. Furthermore, exploration activities advanced at the Soberano concession, located approximately 22
kilometres southwest of FDN, where geological mapping followed by soil and rock sampling were completed. An
airborne geophysics survey (Radiometric and Magnetic) was concluded and covered most of the regional concessions.
Corporate
In September, the Company announced a planned leadership transition with Mr. Ron Hochstein stepping
down as President, CEO, and Director of the Company. Mr. Jamie Beck will be appointed President, CEO,
and Director effective November 7, 2025.
During the quarter, Lundin Gold completed its new five-year sustainability strategy (2026-2030) to coincide
with the expiry of its current five-year strategy. Anchored by the vision of “Transforming lives through
responsible mining”, the strategy is built on five strategic pillars: Shared Prosperity, Stakeholder Trust,
Responsible Governance, Environmental Stewardship and Valued Workforce. With ambitious targets for 2030
and beyond, this strategy will guide Lundin Gold’s legacy as a leading gold company, a trusted community
partner and a driver of long-term local prosperity.
The Company paid a quarterly dividend of $0.79 per share, comprised of the fixed dividend of $0.30 per share
and variable dividend of $0.49 per share, on September 25, 2025 (September 30, 2025 for shares trading on
Nasdaq Stockholm) for a total of $191 million.
===== SIDA 17 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Nine Months Ended September 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
With the release of its third quarter 2025 results, the Company has declared cash dividends totaling $0.80 per
share, comprised of the fixed dividend of $0.30 per share and variable dividend of $0.50 per share, payable
on December 22, 2025 (December 30, 2025 for shares trading on Nasdaq Stockholm) to shareholders of
record at the close of business on December 5, 2025. Pursuant to the Company’s dividend policy, the variable
dividend was calculated based on 100% of the Company’s normalized free cash flow during the third quarter
of 2025, after deducting the fixed dividend paid, which exceeds the policy’s minimum threshold of 50%.
===== SIDA 18 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Nine Months Ended September 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
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 2025 2024
Q3 Q2 Q1 Q4
Revenues $ 447,119 $ 452,880 $ 356,345 $ 341,791
Income from mining operations $ 305,228 $ 314,161 $ 233,546 $ 215,208
Net income for the period $ 207,715 $ 196,731 $ 153,500 $ 129,147
Basic income per share $ 0.86 $ 0.82 $ 0.64 $ 0.54
Diluted income per share $ 0.86 $ 0.81 $ 0.63 $ 0.53
Weighted-average number of common shares outstanding
Basic 241,285,625 240,984,033 240,460,033 240,101,527
Diluted 242,746,896 242,475,579 241,992,389 242,320,782
Additions to property, plant and equipment $ 22,029 $ 16,878 $ 14,919 $ 35,044
Total assets $ 1,638,974 $ 1,618,899 $ 1,613,365 $ 1,527,481
Working capital $ 576,799 $ 562,273 $ 551,032 $ 458,944
2024 2024 2024 2023
Q3 Q2 Q1 Q4
Revenues $ 323,087 $ 301,431 $ 226,741 $ 190,688
Income from mining operations $ 203,184 $ 171,757 $ 113,237 $ 78,051
Derivative gain (loss) for the period $ - $ 261,668 $ (17,931) $ (28,634)
Net income for the period $ 135,715 $ 119,291 $ 41,897 $ 11,062
Basic income per share $ 0.57 $ 0.50 $ 0.18 $ 0.05
Diluted income per share $ 0.56 $ 0.49 $ 0.17 $ 0.05
Weighted-average number of common shares outstanding
Basic 239,737,300 239,129,917 238,255,452 237,665,855
Diluted 241,890,593 241,031,608 239,968,974 239,745,358
Additions to property, plant and equipment $ 28,019 $ 17,467 $ 9,701 $ 15,791
Total assets $ 1,364,106 $ 1,396,496 $ 1,508,987 $ 1,468,209
Long-term debt $ - $ - $ 326,791 $ 305,647
Working capital $ 357,410 $ 253,587 $ 413,528 $ 346,859
===== SIDA 19 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Nine Months Ended September 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
Three months ended September 30, 2025 compared to the three months ended September 30, 2024
The Company generated net income of $208 million during the third quarter of 2025 compared to $136 million during
the third quarter of 2024. Net income was generated from the recognition of revenues of $447 million, which resulted
in income from mining operations of $305 million, as well as finance income of $6.9 million. This is offset by exploration
costs of $16.2 million, corporate administration costs of $11.9 million, and income tax expense of $76.4 million. During
the third quarter of 2024, net income was generated from the recognition of revenues of $323 million and income from
mining operations of $203 million as well as finance income of $4.2 million. This is offset by exploration costs of $10.6
million, income tax expense of $54.8 million, and other expenses totalling $6.2 million
Income from mining operations
During the third quarter of 2025, the Company generated revenues of $447 million from the sale of 124,911 oz of gold
and income from mining operations of $305 million compared to revenues of $323 million from the sale of 125,887 oz
of gold and income from mining operations of $203 million during the third quarter of 2024. The increase is primarily
attributable to an increase in average realized gold price.
Exploration
Exploration costs were $16.2 million in the quarter compared to $10.6 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 $7.0 million from $4.9 million during the third quarter of 2024 to $11.9
million during the third quarter of 2025. The increase is mainly attributable to an increase in stock-based compensation
expense of $7.5 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 third quarter of
2025 reflects the increase in the Company’s share price from June 30, 2025 to September 30, 2025.
Finance income
Finance income increased from $4.2 million during the third quarter of 2024 to $6.9 million during the third quarter of
2025 as the Company’s increased cash balance offset a declining yield on the Company’s treasury investments.
Other expense (income)
Other income of $0.1 million was recognized during the quarter compared to other expense of $1.3 million in the third
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.
Income taxes
Income taxes of $76.4 million were recorded during the third quarter of 2025 (three months ended September 30, 2024
– $54.8 million) which is comprised of current income tax expenses of $95.3 million offset by deferred income tax
recovery of $18.9 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. The effective tax rate for the quarter reflects the impact of
the Company’s international structure, which results in a portion of income being taxed at lower rates outside of
Ecuador.
1 Refer to “Non-IFRS Measures” section.
===== SIDA 20 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Nine Months Ended September 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
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.
Nine months ended September 30, 2025 compared to the nine months ended September 30, 2024
The Company generated net income of $558 million during the 2025 Period compared to $297 million during the 2024
Period. During the 2025 Period, revenues of $1.26 billion were recognized which generated income from mining
operations of $853 million, as well as finance income of $16.8 million. This is offset by income tax expense of $231
million and other expenses totalling $80.3 million. Revenues and income from mining operations were lower for the
2024 Period at $851 million and $488 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 $13.4 million were recorded which are offset by finance expense of $267 million, income tax expense of $136 million,
and other expenses totalling $46.2 million
Income from mining operations
During the 2025 Period, the Company recognized revenues of $1.26 billion from the sale of 379,289 oz of gold. This
is offset by cost of goods sold of $403 million which is comprised of operating expenses of $231 million; royalties of
$72.8 million; and depletion and depreciation of $99.3 million resulting in income from mining operations of $853 million.
During the same period in 2024, revenues of $851 million were recognized from the sale of 364,199 oz of gold resulting
in income from mining operations of $488 million.
Exploration
Exploration costs were $39.8 million during the 2025 Period compared to $27.4 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 $40.1 million were incurred during the 2025 Period compared to $20.2 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 September 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.
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 September 30, 2025, the Company had cash of $494 million and a working capital balance of $577 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 $665 million
and proceeds from the exercise of stock options and anti-dilution rights totalling $18.2 million. This is offset by dividends
paid of $471 million and capital expenditures of $67.0 million.
===== SIDA 21 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Nine Months Ended September 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
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 September 30, 2025, this resulted in an estimated increase of $30.7
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 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 an increase in the value of materials and
supplies due to requirements for additional spares following completion of the process plant expansion project.
Investment activities
Investment activities during the 2025 Period are comprised principally of major capital expenditures 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.
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 $0.6 million (2024 Period – $1.2 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 nine months ended September 30, 2025.
1 Refer to “Non-IFRS Measures” section.
===== SIDA 22 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Nine Months Ended September 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
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 $175 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 is impacted by fluctuations of commodity prices.
COMMITMENTS
Significant capital and other expenditures contracted as at September 30, 2025 but not recognized as liabilities are as
follows:
Capital
Expenditures Other
12 months ending September 30, 2026 $ 23,975 572
October 1, 2026 onward - 7,099
Total $ 23,975 7,671
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 23 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Nine Months Ended September 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
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 241,390,763 common shares issued and outstanding. There were also stock
options outstanding to purchase a total of 1,600,811 common shares, 373,118 restricted share units with a performance
criteria, 176,891 restricted share units, and 61,828 deferred share units.
OUTLOOK
The Company remains on track to meet its revised annual production guidance of 490,000 to 525,000 oz. Cash
operating cost1 and AISC1 are expected to be at the upper end of guidance of $730 to $790 per oz sold and $935 to
$995 per oz sold, respectively. While record-high gold prices have significantly strengthened the Company’s financial
performance, they have also resulted in higher royalties and statutory profit sharing payable to employees, which in
turn impact both cash operating costs1 and AISC1. For every $100 per oz increase in gold price, these metrics are
estimated to increase by approximately $10 per oz. The Company’s guidance was based on a gold price assumption
of $2,500 per oz while average realized gold prices1 during the 2025 Period was $3,364 per oz – an increase of $864
per oz. This variance in costs exceeds the $60 per oz span of the Company’s cash operating cost1 and AISC1 guidance
ranges.
The near-mine underground drilling program is expected to continue to advance at FDNS where the primary focus is
the conversion and expansion of the resources while concurrently exploring the FDN East target. The surface drilling
program is expected to continue to explore the recently discovered copper-gold porphyry corridor which hosts
Trancaloma and Sandia, advance at Castillo, and explore new sectors around FDN and along the south extension of
the Suarez Basin.
Seventeen rigs are currently turning across the conversion and near-mine exploration programs. The Company
continues to allocate capital to organic growth and based on recent drilling results on the porphyry district, has further
expanded its 2025 exploration program from an original 80,000 to a minimum of 120,000 metres. This represents the
largest drill program ever completed on the land package that hosts the FDN deposit. 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 to be updated in Q1 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. 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.
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.
1 Refer to “Non-IFRS Measures” section.
===== SIDA 24 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Nine Months Ended September 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
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, non-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
September 30,
Nine months ended
September 30,
2025 2024 2025 2024
Gross gold sales before provisional
pricing impact
$
430,486
$
322,738
$
1,211,992
$ 860,680
Gain (loss) on provisionally priced
trade receivables
23,461
6,500
64,014
9,600
Silver revenues 5,891 4,104 15,196 10,898
Less: Treatment and refining charges (12,719) (10,255) (34,858) (29,919)
Revenues $ 447,119 $ 323,087 $ 1,256,344 $ 851,259
Gold oz sold 124,911 125,887 379,289 364,199
Average realized gold price (per oz sold)
Gross gold sales before provisional
pricing impact
$
3,446
$
2,564
$
3,195
$
2,363
Gain on provisionally priced trade
receivables
188
52
169
26
Average realized gold price 3,634 2,616 $ 3,364 $ 2,389
Silver revenues 47 33 40 30
Less: Treatment and refining charges (102) (81) (92) (82)
Revenues $ 3,579 $ 2,568 $ 3,312 $ 2,337
===== SIDA 25 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Nine Months Ended September 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
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
September 30,
Nine months ended
September 30,
2025 2024 2025 2024
Net income for the period $ 207,715 $ 135,715 $ 557,946 $ 296,903
Adjusted for:
Finance expense - - - 266,542
Finance income (6,892) (4,176) (16,786) (13,414)
Income tax expense 76,448 54,774 231,475 135,652
Depletion and depreciation 34,409 34,156 99,387 103,467
EBITDA $ 311,680 $ 220,469 $ 872,022 $ 789,150
Special government levy - - - 1,913
Derivative loss - - - (243,737)
Adjusted EBITDA $ 311,680 $ 220,469 $ 872,022 $ 547,326
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 nine months ended September 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
September 30,
Nine months ended
September 30,
2025 2024 2025 2024
Net income for the period $ 207,715 $ 135,715 $ 557,946 $ 296,903
Adjusted for:
Finance expense on buy out of
stream and offtake
-
-
-
235,575
Special government levy - - - 1,913
Derivative loss - - - (243,737)
Deferred income tax recovery - - 1,795
Adjusted earnings $ 207,715 $ 135,715 $ 557,946 $ 292,449
Basic weighted average shares
outstanding
241,285,625
239,737,300
240,912,920
239,046,940
Adjusted basic earnings per share $ 0.86 $ 0.57 $ 2.32 $ 1.22
===== SIDA 26 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Nine Months Ended September 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
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
September 30,
Nine months ended
September 30,
2025 2024 2025 2024
Operating expenses $ 81,218 $ 67,512 $ 231,244 $ 210,946
Royalty expenses 26,288 18,243 72,843 48,687
Cash operating costs $ 107,506 $ 85,755 $ 304,087 $ 259,633
Gold oz sold 124,911 125,887 379,289 364,199
Cash operating cost per oz sold $ 861 $ 681 $ 802 $ 713
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
September 30,
Nine months ended
September 30,
2025 2024 2025 2024
Cash operating costs $ 107,506 $ 85,755 $ 304,087 $ 259,633
Corporate social responsibility 594 484 1,506 1,649
Treatment and refining charges 12,719 10,255 34,858 29,919
Accretion of restoration provision 190 206 570 616
Sustaining capital expenditures 14,326 17,866 37,210 37,278
Less: silver revenues (5,891) (4,104) (15,196) (10,898)
All-in sustaining cost $ 129,444 $ 110,462 $ 363,035 $ 318,197
Gold oz sold 124,911 125,887 379,289 364,199
All-in sustaining cost per oz sold $ 1,036 $ 877 $ 957 $ 874
===== SIDA 27 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Nine Months Ended September 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
Sustaining capital expenditures and non-sustaining capital expenditures
Capital expenditures are classified into sustaining capital expenditures and non-sustaining capital expenditures.
Sustaining capital expenditures includes expenditures required to maintain ongoing production and operations. Non-
sustaining capital, which is excluded from the calculation of AISC1, comprises growth-oriented investments such as
new projects, expansions, conversion drilling, and associated permitting and study expenditures not related to current
operations.
Three months ended
September 30,
Nine months ended
September 30,
2025 2024 2025 2024
Sustaining capital expenditures $ 14,326 $ 17,866 $ 37,210 $ 37,278
Non-sustaining capital expenditures 7,703 10,153 16,616 17,909
Capital expenditures $ 22,029 $ 28,019 $ 53,826 $ 55,187
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
September 30,
Nine months ended
September 30,
2025 2024 2025 2024
Net cash provided by operating
activities
$
215,533
$
217,873
$
664,623
$
466,406
Net cash used for investing activities (24,385) (36,677) (67,022) (65,250)
Interest paid - - - (3,688)
Finance expense paid - - - (260,990)
Free cash flow $ 191,148 $ 181,196 $ 597,601 $ 136,478
Basic weighted average shares
outstanding
241,825,625
239,737,300
240,912,920
239,046,940
Free cash flow per share $ 0.79 $ 0.76 $ 2.48 $ 0.57
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.
===== SIDA 28 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Nine Months Ended September 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
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 year ended December 31, 2025 is expected to be published on or about February 19, 2026.
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 September 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,
===== SIDA 29 =====
LUNDIN GOLD INC.
Management’s Discussion and Analysis
Nine Months Ended September 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)
18
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; recovery of VAT; management
changes; 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
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 30 =====
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.
September 30, December 31,
Note 2025 2024
ASSETS
Current assets
Cash and cash equivalents 18 $ 494,369 $ 349,200
Trade receivables and other current assets 3 250,609 233,555
Inventories 4 90,835 88,210
Advance royalty - 3,494
835,813 674,459
Non-current assets
VAT recoverable 20,509 24,287
Property, plant and equipment 5 666,194 695,703
Mineral properties 6 116,458 133,032
$ 1,638,974 $ 1,527,481
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities 7 $ 116,395 $ 109,947
Income taxes payable 129,075 96,843
Other current liabilities 10 13,544 8,725
259,014 215,515
Non-current liabilities
Other non-current liabilities 10 15,645 3,457
Reclamation provisions 8,436 7,866
Deferred income tax liabilities 33,915 84,344
317,010 311,182
EQUITY
Share capital 9 1,056,173 1,035,399
Equity-settled share-based payment reserve 10 6,677 9,059
Accumulated other comprehensive loss (40,747) (40,747)
Retained earnings 299,861 212,588
1,321,964 1,216,299
$ 1,638,974 $ 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 31 =====
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
September 30,
Nine months ended
September 30,
Note 2025 2024 2025 2024
Revenues 11 $ 447,119 $ 323,087 $ 1,256,344 $ 851,259
Cost of goods sold
Operating expenses 12 81,218 67,512 231,244 210,946
Royalty expenses 26,288 18,243 72,843 48,687
Depletion and depreciation 34,385 34,148 99,322 103,448
141,891 119,903 403,409 363,081
Income from mining operations 305,228 203,184 852,935 488,178
Other expenses (income)
Exploration 13 16,154 10,578 39,823 27,367
Corporate administration 14 11,863 4,948 40,084 20,187
Finance expense 15 - - - 266,542
Finance income (6,892) (4,176) (16,786) (13,414)
Other expense (income) (60) 1,345 393 (1,322)
Derivative gain 8 - - - (243,737)
21,065 12,695 63,514 55,623
Net income before tax 284,163 190,489 789,421 432,555
Income tax expense
Current income tax expense 17 95,304 49,058 281,904 121,403
Deferred income tax expense
(recovery) 17
(18,856)
5,716
(50,429)
14,249
76,448 54,774 231,475 135,652
Net income for the period $ 207,715 $ 135,715 $ 557,946 $ 296,903
OTHER COMPREHENSIVE INCOME (LOSS)
Items that will not be reclassified to net income
Currency translation adjustment - 2,260 - 66
Derivative loss related to the Company’s
own credit risk - - - (37,332)
Deferred income tax on accumulated other
comprehensive income - - - 6,339
Comprehensive income $ 207,715 $ 137,975 $ 557,946 $ 265,976
Income per common share
Basic $ 0.86 $ 0.57 $ 2.32 $ 1.24
Diluted 0.86 0.56 2.30 1.23
Weighted-average number of common shares outstanding
Basic 241,285,625 239,737,300 240,912,920 239,046,940
Diluted 242,746,896 241,890,593 242,453,010 240,989,325
===== SIDA 32 =====
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 1,443,259 12,306 (3,395) - - 8,911
Vesting of share units 75,757 900 (3,025) - - (2,125)
Exercise of anti-dilution rights 9 638,004 9,293 - - - 9,293
Stock-based compensation 10 - - 3,422 - - 3,422
Other comprehensive loss - - - (30,927) - (30,927)
Net income for the period - - - - 296,903 296,903
Dividends paid - - - - (95,807) (95,807)
Balance, September 30, 2024 240,017,068 $ 1,031,431 $ 11,537 $ (28,972) $ 131,480 $ 1,145,476
Balance, January 1, 2025 240,194,898 $ 1,035,399 $ 9,059 $ (40,747) $ 212,588 $ 1,216,299
Exercise of stock options 860,326 9,299 (2,296) - - 7,003
Vesting of share units 21,635 315 (315) - - -
Exercise of anti-dilution rights 9 252,592 11,160 - - - 11,160
Stock-based compensation 10 - - 870 - - 870
Reclassification of share units - - (641) - - (641)
Net income for the period - - - - 557,946 557,946
Dividends paid - - - - (470,673) (470,673)
Balance, September 30, 2025 241,329,451 $ 1,056,173 $ 6,677 $ (40,747) $ 299,861 $ 1,321,964
===== SIDA 33 =====
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
September 30,
Nine months ended
September 30,
Note 2025 2024 2025 2024
OPERATING ACTIVITIES
Net income for the period $ 207,715 $ 135,715 $ 557,946 $ 296,903
Items not affecting cash:
Depletion and depreciation 34,409 34,156 99,387 103,467
Stock-based compensation 10 8,583 1,063 28,005 5,260
Derivative gain 8 - - - (243,737)
Other expense (income) (571) 2,406 185 859
Finance expense (income) (6,892) (4,176) (16,786) 253,128
Deferred income tax expense (recovery) (18,856) 5,716 (50,429) 14,249
224,388 174,880 618,308 430,129
Changes in non-cash working capital items:
Trade receivables and other current assets (24,058) 9,640 (5,659) (2,644)
Inventories (3,508) 567 (1,624) 8,899
Advance royalty - 6,500 3,494 13,000
Accounts payable and accrued liabilities 4,834 (4,384) 12,027 (1,660)
Income taxes payable 6,985 26,907 32,232 9,231
Interest received 6,892 4,176 16,786 13,414
Share units settled in cash 10 - (413) (10,941) (3,963)
Net cash provided by operating activities 215,533 217,873 664,623 466,406
FINANCING ACTIVITIES
Repayments of long-term debt 8 - - - (101,106)
Interest paid 8 - - - (3,688)
Finance expense paid 8 - - - (260,990)
Proceeds from exercise of stock options 478 2,961 7,003 8,911
Proceeds from exercise of anti-dilution rights 9 - 1,586 11,160 9,293
Dividends paid (190,632) (47,976) (470,673) (95,807)
Change in non-cash working capital 7,8 - (150,000) - -
Net cash used for financing activities (190,154) (193,429) (452,510) (443,387)
INVESTING ACTIVITIES
Acquisition and development of property, plant
and equipment (20,736) (34,065) (59,405) (59,392)
VAT paid on investing activities (3,649) (2,612) (7,617) (5,858)
Net cash used for investing activities (24,385) (36,677) (67,022) (65,250)
Effect of foreign exchange rate differences on cash 3 281 78 (66)
Net increase (decrease) in cash and cash equivalents 997 (11,952) 145,169 (42,297)
Cash and cash equivalents, beginning of period 493,372 237,680 349,200 268,025
Cash and cash equivalents, end of period $ 494,369 $ 225,728 $ 494,369 $ 225,728
Supplemental cash flow information (Note 18)
===== SIDA 34 =====
LUNDIN GOLD INC.
Notes to the condensed consolidated interim financial statements as at September 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 November 6, 2025.
3. Trade receivables and other current assets
September 30, December 31,
2025 2024
Trade receivables (a) $ 175,444 $ 155,948
VAT recoverable (b) 46,121 58,028
Prepaid expenses and other 29,044 19,579
$ 250,609 $ 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
September 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 $30.7 million in trade receivables as of September 30, 2025 (December
31, 2024 - $5.1 million increase) reflecting rising gold prices during the period.
===== SIDA 35 =====
LUNDIN GOLD INC.
Notes to the condensed consolidated interim financial statements as at September 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
September 30, December 31,
2025 2024
Ore stockpile $ 4,441 $ 8,254
Gold in circuit 13,120 8,546
Doré and concentrate 18,067 18,687
Materials and supplies 55,207 52,723
$ 90,835 $ 88,210
As at September 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 30,229 19,084 2,132 836 1,545 53,826
Disposals and other - (80) (112) (2,088) - (2,280)
Reclassifications (49,023) 49,023 - - - -
Balance, September 30,
2025 $ 20,450 $ 1,107,468 $ 51,232 $ 22,050 $ 6,806 $ 1,208,006
===== SIDA 36 =====
LUNDIN GOLD INC.
Notes to the condensed consolidated interim financial statements as at September 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 - 75,509 5,188 1,280 1,267 83,244
Disposals and other - (22) (79) (2,088) - (2,189)
Balance, September 30,
2025 $ - $ 484,895 $ 35,442 $ 19,098 $ 2,377 $ 541,812
Net book value
As at December 31,
2024 $ 39,244 $ 630,033 $ 18,879 $ 3,396 $ 4,151 $ 695,703
As at September 30,
2025 $ 20,450 $ 622,573 $ 15,790 $ 2,952 $ 4,429 $ 666,194
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 (16,574)
Balance, September 30, 2025 $ 116,458
===== SIDA 37 =====
LUNDIN GOLD INC.
Notes to the condensed consolidated interim financial statements as at September 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
September 30, December 31,
2025 2024
Accounts payable $ 11,646 $ 18,261
Accrued liabilities 54,304 43,561
Accrued profit sharing to employees and royalties 50,445 48,125
$ 116,395 $ 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 nine months ended
September 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 nine months ended September 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 38 =====
LUNDIN GOLD INC.
Notes to the condensed consolidated interim financial statements as at September 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 nine months ended September 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 September 30, 2025 was 1,662,123.
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:
September 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 nine months ended September 30, 2025, the Company recorded stock-based compensation
expense of $0.8 million (nine months ended September 30, 2024 – $0.8 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 nine months ended September 30, 2025, the Company granted 297,982 Share Units. In addition,
in connection with dividends paid during the nine months ended September 30, 2025, 23,036 Share Units
were granted as Dividend Equivalents. The total number of Share Units outstanding at September 30, 2025
was 611,837.
During the nine months ended September 30, 2025, the Company recorded stock-based compensation
expense of $27.2 million (nine months ended September 30, 2024 – $4.4 million) related to Share Units which
reflect the Company’s rising share price during 2025.
During the nine months ended September 30, 2025, total stock-based compensation expense was $28.0 million
(nine months ended September 30, 2024 – $5.3 million expense).
===== SIDA 39 =====
LUNDIN GOLD INC.
Notes to the condensed consolidated interim financial statements as at September 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
September 30,
Nine months ended
September 30,
2025 2024 2025 2024
Doré sales (a) $ 149,958 $ 131,504 $ 417,908 $ 309,457
Concentrate sales 273,700 185,083 774,422 532,202
Gain on provisionally priced trade
receivables
23,461
6,500
64,014
9,600
$ 447,119 $ 323,087 $ 1,256,344 $ 851,259
(a) During the nine months ended September 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
September 30,
Nine months ended
September 30,
2025 2024 2025 2024
Direct production costs $ 64,097 $ 57,581 $ 182,768 $ 178,964
Transportation 7,772 5,163 20,514 16,125
Direct sales costs, including employee
portion of profit sharing
9,701 4,660 27,102 12,674
Change in inventories (352) 108 860 3,183
$ 81,218 $ 67,512 $ 231,244 $ 210,946
13. Exploration
Three months ended
September 30,
Nine months ended
September 30,
2025 2024 2025 2024
Catering and camp expenses $ 877 $ 878 $ 2,699 $ 2,126
Concessions and land 1,536 73 2,683 648
Development - 359 - 772
Drilling 6,902 5,248 17,242 12,427
Environmental 464 439 1,242 935
Geophysics 211 171 871 411
Salaries and benefits 2,029 1,618 5,613 4,959
Sampling and supplies 3,033 1,536 7,327 4,503
Study and evaluation 484 - 844 -
Others 618 256 1,302 586
$ 16,154 $ 10,578 $ 39,823 $ 27,367
===== SIDA 40 =====
LUNDIN GOLD INC.
Notes to the condensed consolidated interim financial statements as at September 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
September 30,
Nine months ended
September 30,
2025 2024 2025 2024
Corporate social responsibility $ 594 $ 484 $ 1,506 $ 1,649
Investor relations 128 61 377 199
Office and general 1,035 844 3,014 2,683
Professional fees 372 430 1,542 1,737
Regulatory and transfer agent 60 51 669 411
Salaries and benefits 941 1,706 4,189 5,664
Special government levy (a) - - - 1,913
Stock-based compensation (Note 10) 8,583 1,063 28,005 5,260
Travel 150 309 782 671
$ 11,863 $ 4,948 $ 40,084 $ 20,187
(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
September 30,
Nine months ended
September 30,
2025 2024 2025 2024
Interest expense $ - $ - $ - $ 3,693
Finance expense - - - 25,415
Finance expense on buy out of
stream and offtake (Note 8)
-
-
-
235,575
Accretion of transaction costs - - - 1,859
$ - $ - $ - $ 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 nine months ended September 30 is shown
below.
September 30, September 30,
2025 2024
Salaries, bonuses and benefits $ 3,450 $ 4,606
Stock-based compensation 23,180 3,486
$ 26,630 $ 8,092
===== SIDA 41 =====
LUNDIN GOLD INC.
Notes to the condensed consolidated interim financial statements as at September 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 nine months ended September 30, 2025, the Company incurred $0.6 million (nine months ended
September 30, 2024 – $1.2 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 nine months ended
September 30, 2025 and September 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 effective tax rate for the quarter reflects the impact of the Company’s international structure, which
results in a portion of income being taxed at lower rates outside of Ecuador.
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
September 30,
Nine months ended
September 30,
2025 2024 2025 2024
Net income before tax $ 284,163 $ 190,489 $ 789,421 $ 432,555
Canadian federal and provincial
income tax rates
27%
27%
27%
27%
Income tax expense based on the
above rates
76,724
51,432
213,144
116,790
Increase (decrease) due to:
Differences in foreign tax rates (19,303) (22,193) (34,255) (10,929)
Non-deductible costs 7,726 11,028 14,715 11,927
Withholding taxes (current and deferred) 8,719 15,243 26,658 17,743
Losses and temporary differences for
which an income tax asset has not been
recognized 2,716
(736)
8,765
121
Other (134) - 2,448 -
Income tax expense $ 76,448 $ 54,774 $ 231,475 $ 135,652
===== SIDA 42 =====
LUNDIN GOLD INC.
Notes to the condensed consolidated interim financial statements as at September 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:
September 30, December 31,
2025 2024
Cash $ 494,369 $ 224,783
Short-term investments - 124,417
$ 494,369 $ 349,200
Other supplemental cash information:
Three months ended
September 30,
Nine months ended
September 30,
2025 2024 2025 2024
Taxes and profit sharing paid to the
Government of Ecuador $
96,060 $
21,825
$
255,583
$
118,865
Change in accounts payable and accrued
liabilities related to:
Acquisition of property, plant and
equipment $ 1,293 $ (6,046)
$ (5,579)
$
(4,205)
During the three months ended September 30, 2025, in addition to monthly corporate income tax instalment
payments, the Company remitted $50.6 million to the Government of Ecuador as a partial payment against its
annual income taxes due in April 2026.
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 43 =====
LUNDIN GOLD INC.
Notes to the condensed consolidated interim financial statements as at September 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 September 30, 2025
Current assets $ 627,462 $ 1,175 $ 207,176 $ 835,813
Non-current assets 802,522 98 541 803,161
Total assets 1,429,984 1,273 207,717 1,638,974
Current liabilities 239,624 2,617 16,773 259,014
Non-current liabilities 42,351 - 15,645 57,996
Total liabilities 281,975 2,617 32,418 317,010
For the three months ended September 30, 2025
Revenues 447,119 - - 447,119
Operating expenses (81,218) - - (81,218)
Royalty expenses (26,288) - - (26,288)
Depletion and depreciation (34,385) - - (34,385)
Income from mining operations 305,228 - - 305,228
For the nine months ended September 30, 2025
Revenues 1,256,344 - - 1,256,344
Operating expenses (231,244) - - (231,244)
Royalty expenses (72,843) - - (72,843)
Depletion and depreciation (99,322) - - (99,322)
Income from mining operations 852,935 - - 852,935
===== SIDA 44 =====
LUNDIN GOLD INC.
Notes to the condensed consolidated interim financial statements as at September 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 September 30, 2024
Current assets $ 345,397 $ 526 $ 138,147 $ 484,070
Non-current assets 879,316 84 636 880,036
Total assets 1,224,713 610 138,783 1,364,106
Current liabilities 125,055 707 898 126,660
Non-current liabilities 75,470 - 16,500 91,970
Total liabilities 200,525 707 17,398 218,630
For the three months ended September 30, 2024
Revenues 323,087 - - 323,087
Operating expenses (67,512) - - (67,512)
Royalty expenses (18,243) - - (18,243)
Depletion and depreciation (34,148) - - (34,148)
Income from mining operations 203,184 - - 203,184
For the nine months ended September 30, 2024
Revenues 851,259 - - 851,259
Operating expenses (210,946) - - (210,946)
Royalty expenses (48,687) - - (48,687)
Depletion and depreciation (103,448) - - (103,448)
Income from mining operations 488,178 - - 488,178
The Company generated 75% of its revenue from four major customers during the nine months ended September
30, 2025 (September 30, 2024 – 67% from four 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 $175 million (December 31, 2024 - $156 million) are measured at fair value using quoted forward
market prices (Fair value hierarchy level 2).
===== SIDA 45 =====
LUNDIN GOLD INC.
Notes to the condensed consolidated interim financial statements as at September 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 September 30, 2025 but not recognized as liabilities
are as follows:
Capital
Expenditures Other
12 months ending September 30, 2026 $ 23,975 572
October 1, 2026 onward - 7,099
Total $ 23,975 7,671
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 46 =====
===== SIDA 47 =====
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 48 =====
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