Lundin Gold (TSX: LUG) reported Q3 2025 revenue of $447 million, up 38.4% year over year from $323 million as a sharply higher realized gold price offset flat volumes and higher unit costs.
Income from mining operations rose 50.2% to $305 million from $203 million last year, which leads to a quarterly EBITDA of $312 million, up 41.4% from $220 million, also equal to adjusted EBITDA. Further down, net income increased to $208 million from $136 million, equating to $0.86 earnings per share from $0.57 last year.
Average realized gold price rose 38.9% to $3,634 per ounce, including $3,446 per ounce of gross price and a positive $188 per ounce provisional pricing adjustment. Cash operating costs increased 26.4% to $861 per ounce sold while AISC increased 18.1% to $1,036 per ounce sold. Management attributes the cost inflation to higher royalties and statutory profit sharing that scale with price.
Cash provided by operating activities was $215.5 million, down 1.1% from $217.9 million. Free cash flow was up 5.5% to $191.1 million. At the end of the quarter, the cash balance landed at $494 million versus $349 million at year-end 2024. The quarter-end cash balance was broadly unchanged from June 30 as the $191 million Q3 dividend offset free cash flow.
The board declared a Q4 dividend of $0.80 per share, approximately $193 million, composed of the $0.30 fixed quarterly dividend and a $0.50 variable dividend.
For Q3 2025, gold production was 122,086 ounces, essentially flat year over year, while gold sales were 124,911 ounces, down 0.8%. The mill processed 484,296 tonnes, up 13.9%, at 5,264 tonnes per day. Average head grade declined to 8.9 g/t from 10.3 g/t but recovery improved to 88.2% from 86.8%.
Mining ramped to a record 480,519 tonnes at 7.9 g/t to match mill throughput. Year to date, production rose 3.3% to 378,832 ounces and gold sold increased 4.1% to 379,289 ounces.
Lundin Gold reiterated full-year production guidance of 490,000 to 525,000 ounces. Cash operating cost and AISC are now expected at the upper end of guidance ranges of $730 to $790 per ounce sold and $935 to $995 per ounce sold, respectively. Management notes that for every $100 per ounce increase in gold price, unit costs rise about $10 per ounce. Guidance assumed $2,500 per ounce, while year-to-date realized prices averaged $3,364 per ounce, an $864 uplift that explains the upward pressure on per-ounce costs and the likely finish at the top of guidance ranges.
Under its policy the company expects to continue the $0.30 per share quarterly minimum dividend plus a variable dividend equal to at least 50% of normalized free cash flow.
Lundin Gold last traded at $99.88 on the TSX.
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