Lundin Gold Inc. (TSX: LUG) announced on Tuesday its production outlook for the next three years. The announcement highlighted its 2022 production guidance to be 405,000 – 445,000 gold ounces at its Fruta del Norte mine in Ecuador.
The annual production estimate is expected to decrease in 2023 to 390,000 – 430,000 gold ounces and then increase in 2024 to 400,000 – 440,000 gold ounces.
In the firm’s announcement of its Q3 2021 production results, the mining company relayed that it has produced a total of 320,599 gold ounces for the first nine months. CEO Ron Hochstein said the firm is “on track to meet the upper end of [its] 2021 production guidance of 420,000 ounces of gold.”
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The 2022 production guidance is based on an average throughput rate of 4,200 tpd and head grade averaging 9.79 g/t gold.
Sustaining capital for 2022 is budgeted at US$40 – US$45 million, more than half of which is earmarked for tailings dam construction planned in 2022 and 2023. On top of this, the firm also allotted an estimated US$14 million to continue its regional exploration drilling program.
The three-year production outlook is as follows, as it compares to the 2021 guidance:
| 2021 | 2022 | 2023 | 2024 | |
| Gold production (ounces) | 380,000 – 420,000 | 405,000 – 445,000 | 390,000 – 430,000 | 400,000 – 440,000 |
| Sustaining capital (US$) | 32.6 | 40 – 45 | 30 – 35 | 7 – 12 |
| AISC (US$/ounce sold) | 770 – 830 | 860 – 930 | 850 – 915 | 750 – 810 |
The cost estimates are based on an assumed gold price of US$1,750 per ounce and silver price of US$22.50 per ounce.
In November 2021, Lundin Mining Corporation (TSX: LUN) also released its three-year guidance, highlighting an annual production estimate of 258,000 – 282,000 copper tonnes next year.
Lundin Gold last traded at $9.39 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.
