Lundin Gold (TSX: LUG) posted a 50% revenue jump to a record $452.9 million in Q2 2025 from last year’s $301.4 million, buoyed by a 41% spike in realized gold prices to $3,361 per ounce and a 6% increase in ounces sold to 136,737.
The firm’s shares spiked over 10% following the earnings before settling at a 7% gain on the day.
Income from mining operations surged 83% to $314.2 million, widening the operating margin to 69% from 57%. After‐tax return on sales ticked up to 43% from 40% in Q2 2024.
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Reported EBITDA fell 30% to $318.8 million after last year’s figure was inflated by derivative‐related gains. Net income still climbed 65% YoY to $196.7 million, lifting EPS to $0.82, from last year’s $119.2 million, or $0.50 per share, as stronger realized gold prices more than offset higher royalties and profit-sharing costs. Adjusted EBITDA soared 63% to $318.8 million.
Operating cash flow reached $254.8 million, up 77%. After paying $207 million in fixed and variable dividends during the quarter, the cash balance still climbed to $493.4 million, leaving Lundin Gold debt-free and with working capital of $562.3 million. Free cash flow flipped from a $123.4 million outflow last year to a $235.7 million inflow.
On production, mill throughput rose 8% to 5,064 tpd and recovery improved to 90.9%, offsetting a 5% drop in head grade to 10.4 g/t. Gold output grew 5% to 139,433 ounces, while cash operating costs edged 4% higher to $756 per ounce. AISC rose 6% to $927 per ounce.
Management lifted the low end of its 2025 production guidance to 490,000 ounces from 475,000 ounces and kept the top end at 525,000 ounces, but cautioned that AISC will likely track the upper bound of its $935-$995 per ounce range as higher prices inflate royalty and bonus obligations.
Lundin Gold last traded at $79.40 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.
