Lundin Gold (TSX: LUG) has announced its fourth quarter and full-year 2024 financial and operational results, with annual net revenue of US$1.19 billion, a 32% increase from US$902.5 million in 2023. Quarterly revenue came in at US$341.8 million, a 79% surge compared to US$190.7 million in the same period last year.
Management credited higher realized gold prices—averaging US$2,462 per ounce for the full year—and increased production volumes for driving these topline gains.
Cost of goods sold edged up from US$467.3 million in 2023 to US$489.7 million in 2024, partly due to increased throughput and higher royalties tied to elevated gold prices. Nonetheless, income from mining operations still rose 62% to US$703.4 million in 2024 from US$435.2 million a year earlier. The fourth quarter alone delivered US$215.2 million in mining income, compared to US$78.1 million in Q4 2023.
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Net income for the year came in at US$426 million versus US$179.5 million in 2023—an increase of 137%. In Q4, net income also soared to US$129.1 million, a more-than-tenfold jump from the US$11.1 million reported in Q4 2023. This profitability translated into basic earnings per share of US$1.78 for the year, compared to US$0.76 in the prior period.
Cash provided by operating activities amounted to US$662.4 million in 2024, 28% above the US$519.4 million generated in 2023. In Q4, the figure nearly doubled to US$192 million from US$92.6 million in the same quarter last year.
The firm also reported adjusted free cash flow of US$539.8 million in 2024, a surge from US$263.5 million in 2023. Despite sizable outlays to buy out the Stream Facility and offtake agreements (totaling US$330 million), and US$144 million in dividend payments, Lundin Gold still ended the year with US$349.2 million in cash and cash equivalents. This brings the total current assets balance to US$674.5 million while current liabilities ended at US$215.5 million.
Aside from this, the company touts its elimination of long-term debt, falling from US$305.6 million at year-end 2023 to zero in 2024. The buyout of the Stream Facility and the offtake commitments was largely responsible for restructuring the company’s obligations.
On the operational front, Fruta del Norte delivered record annual gold production of 502,029 ounces in 2024 at an AISC of $875 per ounce sold, beating the prior year’s 481,274 ounces and surpassing the high end of the company’s guidance. Quarterly output likewise reached 135,241 ounces in the final stretch of 2024, up from 99,310 ounces in Q4 2023. The average head grade milled for the year was 10.5 g/t gold, up from 10.2 g/t in 2023, while recoveries dipped slightly from 88.4% to 87.8%.
Heading into 2025, Lundin Gold projects production between 475,000 and 525,000 ounces at an AISC range of US$935 to US$995 per ounce sold. Management also anticipates throughput to improve to 5,000 tonnes per day, with head grade estimated at 9.2 g/t while average mill recovery is estimated at 90%.
The firm raised its quarterly dividend to US$0.30 per share, up from US$0.20. Lundin Gold also announced a share buyback program, intending to repurchase up to 5% of its issued and outstanding shares.
Lundin Gold last traded at $38.37 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
2 Responses
Exciting results from Lundin Gold! The increase in net income is impressive. Looking forward to seeing how they leverage this growth in the future!
Exciting results from Lundin Gold! Can’t wait to see how this impacts the market and their future projects.