Lundin Gold Announces Three-Year Production Outlook: 405,000 – 445,000 Ounces In 2022

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.”

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:

Gold production (ounces)380,000 – 420,000405,000 – 445,000390,000 – 430,000400,000 – 440,000
Sustaining capital (US$)32.640 – 4530 – 35 7 – 12
AISC (US$/ounce sold)770 – 830860 – 930850 – 915750 – 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.

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