Lundin Gold outlines 2026 guidance, explores expansion options at Fruta del Norte
Vancouver-headquartered Lundin Gold has issued its 2026 production guidance and a three-year outlook for the Fruta del Norte (FDN) gold mine in Ecuador, signalling further growth, a step-up in exploration and potential expansion beyond the recently achieved throughput rate of 5 500 t/d.
The miner expects to produce between 475 000 oz and 525 000 oz of gold next year, driven by a full year of higher throughput and an average head grade of 8.3 g/t. Recoveries are forecast at about 91%.
Cash operating costs are estimated at $900/oz to $960/oz, while all-in sustaining costs (AISC) are projected at $1 110/oz to $1 170/oz, based on an assumed gold price of $4 000/oz. Lundin noted that higher royalties and profit-sharing, linked to the higher gold price assumption, had added about $150/oz compared with 2025 cost guidance.
The operation is expected to be back-end weighted in 2026, owing to grade sequencing, resulting in lower unit costs in the second half of the year.
Sustaining capital is forecast at $75-million to $90-million, which includes ongoing raises at the tailings storage facility and mobile equipment overhauls.
President and CEO Jamie Beck said 2026 would mark “an important step forward” for the company. “With increased throughput to 5 500 t/d, sustained free cash flow generation, and the largest exploration programme in our history, we are positioning the company for long-term growth,” he commented.
Lundin plans to spend $85-million on exploration next year, with 133 000 m of drilling. Near-mine drilling will account for about 100 000 m, with a focus on extending the FDN mine life and advancing the porphyry corridor. A further 8 000 m will target regional prospects identified during reconnaissance work in 2025.
The company also plans 25 000 m of resource conversion drilling to support updated mineral reserve and resource estimates.
Further, Lundin reports that it expects to make a development decision on the Fruta del Norte South deposit in the first half of 2026. It is also undertaking a mill expansion study to evaluate increasing throughput beyond 5 500 t/d, with an investment decision targeted for the second half of the year.
Production guidance for 2027 and 2028 remains in line with 2026 levels at 475 000 oz to 525 000 oz. Sustaining capital over the next three years is expected to range from $75-million to $95-million a year in 2026 and 2027, before easing to $50-million to $85-million in 2028. AISC for the period is estimated at $1 110/oz to $1 180/oz.
Subject to board approval, Lundin says it plans to continue paying a fixed quarterly dividend of $0.30 a share, along with a variable dividend based on at least 50% of normalised free cash flow after the fixed payout.
