Lundin Gold declares highest quarterly dividend from record $349m free cash flow
Canadian miner Lundin Gold has generated record free cash flow of $349-million and net income of $273-million in the quarter ended March 31, marking a strong start to its financial year.
The company’s earnings were supported by consistent operating and cost performance at the Fruta del Norte mine, in Ecuador, as well as record realised gold prices.
Lundin produced 119 742 oz in the quarter, with gold sales of 115 308 oz having been made at an average realised price of $4 951/oz – for total revenue of $567-million.
About 79 451 oz of the quarterly output comprised concentrate and 40 291 oz comprised doré.
Cash operating costs and all-in sustaining costs were $987/oz and $1 114/oz, respectively, reflecting higher royalties and statutory profit-sharing associated with higher gold prices.
Lundin ended the quarter with cash and cash equivalents of $704-million and no debt, while having returned $278-million to shareholders through dividends.
The board declared a cash dividend of $1.21 apiece for the quarter under review, which Lundin president and CEO Jamie Beck says is a record quarterly dividend reflecting the exceptional quality of Fruta del Norte and its ability to consistently generate significant free cash flow.
“Given the asset's strong performance and margins, we again chose to return 100% of normalised free cash flow after payment of the fixed dividend to shareholders this quarter.”
Lundin remains on track to meet its 2026 production guidance of between 475 000 oz and 525 000 oz and continues to make progress on exploration and a mile-to-mill expansion study to increase processing throughput at Fruta del Norte.
