Lundin Gold (LUG.TO) will likely produce close to 500,000 ounces of gold this year. The company disclosed its three year outlook for the Fruta del Norte gold mine in Ecuador at the end of 2023, and the near-term future looks pretty bright. As the table below shows, Lundin Gold anticipates a gold production of 450,000-500,000 ounces of gold at an AISC of $820-890/oz this year while the anticipated production rate will increase towards 500,000 ounces per year at initially a higher AISC in 2025 before decreasing to the low $800s in 2026.
The strong production and cost guidance will help the company to reduce its net debt at a pretty fast pace. At the end of Q3, Lundin Gold had a positive working capital position of in excess of US$300M while its net debt dropped below $100M.
Disclosure: The author has no position in Lundin Gold. Please read the disclaimer.
