Key Takeaways:
- Lundin Gold press release (OTCQX:LUGDF) reports a fourth quarter Non-GAAP EPS of $0.14.
- Revenue for the quarter amounts to $190.69 million, marking a decrease of 9.6% year-over-year.
- The revenue figure falls short of expectations by $6.61 million.
- Fourth quarter gold sales total 98,005 ounces, comprising 65,223 ounces of concentrate and 32,782 ounces of doré.
- The average realized gold price per ounce stands at $2,021.
- Total gross revenues from gold sales in the quarter reach $198 million.
- Cash operating costs and AISC for the quarter were reported at $832 and $1,062 per ounce of gold sold, respectively.
- Cash provided by operating activities amounted to $92.6 million in the fourth quarter, with the company generating free cash flow of $62.3 million from operations, equivalent to $0.26 per share.
- Gold production during the fourth quarter totaled 98,310 ounces, consisting of 65,298 ounces in concentrate and 34,012 ounces as doré.
- Lundin Gold’s performance for the year is highlighted by its production of 481,274 ounces of gold at an all-in sustaining cost (AISC) of $860 per ounce sold. This achievement met the company’s upwardly revised production guidance of 450,000 to 485,000 ounces and AISC guidance of $820 to $870 per ounce sold.
- Cash from operating activities for the year amounted to $519 million, resulting in free cash flow of $263 million.
- Looking ahead, the outlook for gold production at the Fruta del Norte (FDN) mine in 2024 is projected to be between 450,000 to 500,000 ounces. This projection is based on an average throughput rate of 4,500 tonnes per day (tpd), average recoveries of 89%, and an average head grade of 9.9 grams per tonne (g/t).
- By the end of the year, Lundin Gold aims to complete the $36 million Process Plant Expansion Project. This project is designed to increase plant throughput to 5,000 tonnes per day (tpd) and enhance metallurgical recoveries by approximately 3%.
- Estimated cash operating costs for 2024 are anticipated to range between $680 and $740 per ounce of gold sold. Similarly, all-in sustaining costs (AISC) are expected to average between $820 and $890 per ounce of gold sold. It’s noted that both cash operating costs and AISC will fluctuate throughout the year.
- Total sustaining capital expenditure in 2024 is projected to be in the range of $35 to $45 million. This investment is aimed at maintaining the operations and infrastructure necessary to sustain gold production at the desired levels.