Earnings call transcript: Lundin Gold Q2 2025 highlights record earnings

Lundin Gold Inc. reported a significant earnings beat for Q2 2025, with earnings per share (EPS) reaching $0.82, surpassing the forecast of $0.77. Revenue also exceeded expectations, coming in at $453 million compared to the projected $429 million. Following these results, Lundin Gold’s stock surged by 8.57% in after-hours trading, reflecting strong investor confidence. According to InvestingPro data, the company appears overvalued at current levels, though 7 analysts have recently revised their earnings estimates upward for the upcoming period.

Key Takeaways

• Lundin Gold achieved a record net income of $197 million, a 65% increase year-over-year.
• The company reported a 50% year-over-year increase in revenue, reaching $453 million.
• Free cash flow saw a remarkable 110% rise, totaling $236 million.
• Lundin Gold’s stock price jumped by 8.57% post-earnings announcement.

Company Performance

Lundin Gold demonstrated robust performance in Q2 2025, with significant year-over-year improvements across key financial metrics. The company’s strategic initiatives, including the completion of a plant expansion project and achieving record throughput rates, have contributed to its strong financial results. The mining sector’s favorable market conditions, driven by high gold prices, have further bolstered Lundin Gold’s profitability.

Financial Highlights

• Revenue: $453 million, up 50% year-over-year
• Earnings per share: $0.82, a 100% increase year-over-year
• Free cash flow: $236 million, up 110% year-over-year
• Cash position: $493 million, up from $349 million at the start of the year
• Dividend: $0.79 per share

Earnings vs. Forecast

Lundin Gold’s actual EPS of $0.82 exceeded the forecasted $0.77 by 6.65%. Revenue also surpassed expectations, reaching $453 million compared to the $429 million forecast, resulting in a 5.57% surprise. This marks a continuation of the company’s trend of outperforming market expectations over recent quarters.

Market Reaction

Following the earnings announcement, Lundin Gold’s stock surged by 8.57%, closing at $80.43. This movement reflects positive investor sentiment, driven by the company’s strong financial performance and favorable market conditions. The stock’s current price is approaching its 52-week high of $80.57, indicating strong market confidence.

Outlook & Guidance

Lundin Gold has updated its 2025 production guidance to 490,000-525,000 ounces of gold. The company is targeting a throughput of 5,500 tonnes per day by 2026, with potential for further increases. Additionally, Lundin Gold is exploring expansion opportunities within the Tranquiloma-Sandia corridor, indicating a focus on long-term growth.

Executive Commentary

CEO Ron Hoxbine highlighted the impact of record gold prices on the company’s exceptional financial results, stating, "Record gold prices have driven exceptional financial results." He also emphasized the company’s commitment to sustainability, noting, "Sustainability is integral to our success."

Risks and Challenges

• Fluctuating gold prices could impact future profitability.
• Increased operational costs associated with gold price changes.
• Potential geopolitical risks in Ecuador affecting operations.
• Supply chain disruptions could impact production schedules.
• Environmental regulations may pose compliance challenges.

Q&A

During the earnings call, analysts inquired about Lundin Gold’s exploration focus on the Tranquiloma-Sandia corridor and potential throughput increases. Management addressed these concerns by emphasizing strong community support and the company’s single corporate structure, which supports operational efficiency and strategic growth initiatives.

Full transcript - Lundin Gold Inc (LUG) Q2 2025:

Conference Operator: Good morning, ladies and gentlemen, and welcome to Lundin Gold’s Second Quarter twenty twenty five Financial Results Conference Call. At this time, all lines are in a listen only mode. Following the presentation, we will conduct a question and answer session. I would now like to turn the conference call over to Ron Hoxbine, president and CEO. Please go ahead.

Ron Hoxbine, President and CEO, Lundin Gold: Thank you, operator, and good morning, everyone. Thank you all for joining us today. I’m joined by Terry Smith, chief operating officer, and Chester See, our chief financial officer. We’re gonna take you through our results for the 2025. Please note, LendingClose disclaimer is on this slide.

This discussion includes forward looking information. Actual future results may differ from expected results for a variety of reasons described in the caution regarding forward looking information and statements section of our press release. Lending Gold is a US dollar reporting entity, and all amounts of this presentation refer to US dollars unless otherwise indicated. This was another excellent quarter for Lundin Gold. We produced over a 139,000 ounces of gold and sold more than a 136,000 ounces.

Our cost performance remained strong with cash operating cost per ounce of $756 and all in sustaining cost of $927 per ounce sold. This combined with an average realized gold price of $3,361 resulted in an impressive all in sustaining cost margin of 72%. With this strong operating performance in the first half of the year, we are updating our 2025 production guidance by raising the lower end of our range from 475,000 to 490,000 ounces while maintaining our upper end at 525,000 ounces. Record gold prices have driven exceptional financial results, but they also have an impact on our costs. Royalties and statutory employee profit sharing are impacted by the gold price and are included in our cash operating cost and all in sustaining cost.

Our original guidance was based on an average gold price of $2,500 per ounce. For every $100 increase in the gold price, we anticipate a roughly $10 increase in our costs. With our average realized price of $3,231 per ounce in the first half of the year, this translates to an approximate $70 per ounce increase in costs. Despite this pressure, our costs are focused on operational excellence allows us to reaffirm our guidance. So we now expect to be at the high end of our cost ranges, largely due to the current gold prices.

Supported by another quarter of strong operations and record gold prices, We generated a record 255,000,000 in cash flow from operations and 236,000,000 in free cash flow. This robust free cash flow enables us to declare a total dividend of 79¢ per share consisting of our fixed dividend of 30¢ and a variable dividend of 49¢ per share. Chester will provide more detail on this shortly. On the exploration front, we’ve had a very active quarter. We recently released two sets of exciting results from our FDNS, FDNS East and the copper gold porphyry systems at Tranquiloma and the newly discovered Sandia.

Our conversion drilling at FDNS is progressing well, and our engineering studies are on track to integrate it into our long term mine plan as part of our reserves and resource update early next year. Turning to Slide five,

Terry Smith, Chief Operating Officer, Lundin Gold: you can

Ron Hoxbine, President and CEO, Lundin Gold: see the power of both the strong gold price and our operational excellence in our year over year performance. In Q2, we saw significant growth across all key financial metrics. Compared to the same quarter in 2024, revenue surged 50% to 453,000,000. Net income hit a record high of 197,000,000, up 65%. Earnings per share doubled, increasing by 100 to 82¢ per share, and free cash flow grew by a substantial 110% to 236,000,000.

While we certainly benefited from rising gold price, we’ve also controlled our costs through continuous optimization and productivity improvements.

Terry Smith, Chief Operating Officer, Lundin Gold: This is

Ron Hoxbine, President and CEO, Lundin Gold: a testament to our team’s commitment to innovation and efficiency. Our all in sustaining cost margin per ounce increased by 62% to $2,434 in Q2, reflecting our enhanced profitability. With that, I’d now like to turn the call over to Terry to discuss our operations in more detail. Thanks, Ron, and good morning all. Turning to safety, I’m pleased with our q two and year to date performance.

While it’s nice to see a quarter with no recordable incidents and our overall incident rate dropped compared to last year, our focus at FTN hasn’t changed. From promoting hazard recognition and safe behaviors with visible leadership in the field to fostering open two way communication, helping to improve the way we work are making a real difference. I’m always inspired by the the commitment of every single person on our team. This commitment will help us avoid complacency and continue to operate at the highest standard. Moving to operations, I’m pleased to report that we’ve had another strong quarter, delivering on our key strategic objectives.

Last quarter, we discussed the successful completion of our plant expansion project. This quarter, we realized the benefits of that investment, achieving record throughput and recovery rates, meeting our operational targets for the expanded plant. The team has done an outstanding job of improving the new infrastructure and it’s already showing up in our results. As Ron mentioned earlier, this strong performance combined with our positive first quarter gives us confidence to tighten our 2025 production guidance. We are now raising the bottom end of our guidance range from four seventy five to a new range of four and ninety thousand to 525,000 ounces.

As we look ahead to the second half of the year, we expect a few things. As per our mine plan, we expect a moderation in the mill head grade. However, we also expect to see continued increases in mill throughput as we optimize the mine and mill to work toward our medium term goal of averaging 5,500 tonnes per day in 2026. Finally, you should expect to see our sustaining capital expenditures increase in the second half of the year. This will be driven by the ongoing ramp up of our fifth tailings dam raise and other plant site infrastructure improvement projects.

These are critical investments that will support our long term production goals and operational stability. With that, I’d like to turn the call over to Chester to discuss our financial results. Thanks, Terry, and good morning, everyone. For the 2025, Lundin Gold achieved record revenues of 453,000,000 from the sale of approximately 137,000 ounces of gold at an average realized gold price of 3,361 per ounce. This average realized price includes 3,276 per ounce of gross price received and a favorable impact of $85 per ounce mark to market on provisionally priced sales.

Our income from mining operations was 314,000,000, a significant increase from the same period last year, primarily driven by the higher gold price. This strong performance translated to adjusted earnings of 197,000,000 or 82¢ per share and EBITDA of 319,000,000. Dollars Record free cash flow was generated in the 2025 from strong gold sales and a strong gold price. We generated $255,000,000 in net cash from operating activities and $236,000,000 in free cash flow or $0.98 per share during the quarter compared to $112,000,000 or $0.47 per share in the 2024. We ended the quarter with a very strong cash position, $493,000,000, up from $349,000,000 at the beginning of the year.

We generated $449,000,000 from operating activities, paid out $280,000,000 in dividends and reinvested $43,000,000 back into the business in the 2025. With the continued positive outlook on gold prices, combined with our production and cost guidance, I’m very optimistic that we will continue to generate significant free cash flow. Our financial performance year to date has been exceptional, driven by our operational excellence as well as by the significant increase in the price of gold. However, it’s important to note that this same increase to the gold price has also created upward pressure on our operating costs. Specifically, higher gold prices directly translate to increased expenses for both royalties and employee profit sharing.

These costs directly impact our cash operating costs and our all in sustaining costs. To put this into perspective, we’ve seen an impact of approximately $70 per ounce to our cash costs and all in sustaining costs due to the higher gold price when compared to the $2,500 gold price that we used for our 2025 guidance. In general, for every $100 per ounce increase in the gold price, we can expect our cost to rise by about 10 per ounce. Despite these pressures, our focus remains on operational efficiency. We’re continuing to drive cost reduction and improve mill throughput across our operations.

As a result of these ongoing efforts, we expect to remain within our cash operating costs and basic guidance for the year, albeit at the upper end of our guidance ranges. Now turning to our capital allocation strategy and dividend policy. I’m very pleased to announce another strong dividend for our shareholders. Following a record quarter of free cash flow, our board of directors has declared a quarterly dividend totaling 79¢ per share comprised of our regular fixed dividend of 30¢ and a bear a substantial variable dividend of 49¢ per share. This distribution totaling approximately 190,000,000 is a direct reflection of our record q two performance.

The variable dividend is based on a normalized free cash flow, which this quarter includes an add back of 95,000,000 in annual tax and profit sharing paid in q two. This adjustment helps us move out these large onetime payments and minimizes significant swings in our quarterly dividend. This robust payout reflects our commitment to return a significant value to our shareholders while maintaining the flexibility to invest strategically in our long term growth initiatives. For a more detailed discussion of our dividend and financial results, I encourage you to read our MD and A. Now I’d like to turn the call back over to Ron.

Thanks, Chester. We’re excited to share some significant updates on our exploration and growth initiatives. Over the past week, we’ve issued two releases detailing our progress, and I strongly encourage you to read them for the full picture. Our top priority remains FDNS, and our work here is twofold, growing the resource and increasing our confidence in the inferred resource. Our conversion drilling is yielding some of our highest grade results yet, and we’ve also discovered a new mineralized vein just outside the existing inferred resource.

This progress, combined with significant advancements in our engineering studies, keeps us on track to integration a portion of the FDNS mineralization into FDNS long term mine plan as part of our annual resource update early next year. Additionally, recent drill results from FDNS could continue to highlight its excellent exploration potential, especially given its proximity to our existing underground development. Beyond our current operations, we’re very excited about a new development, the emergence of a copper gold porphyry corridor right next to FDM. Follow-up drilling at Trenculoma has successfully confirmed the continuity of the at surface copper gold mineralization, with results pointing to significant expansion potential. This new geological understanding is further strengthened by the discovery of a new copper gold porphyry system at Sandia.

This system also holds mineralization begin with surface and helps to define an emerging and highly prospective corridor that we’ve now delineated thus far as five kilometers long and directly adjacent to FTN. Turning to slide 18. With respect to our twenty twenty five objectives we set at the beginning of the year, we are well on track to meet or exceed them. Our top priority remains the health, safety of our people and the environmental performance of our operations. We continue to embed best practices across the organization.

Our total recordable injury rate for H1 to 2025 was zero point one zero, and we are continuing to be diligent. We’ve seen the benefits of our plant expansion with increased throughput and recovery. The focus for the second half of the year will be to continue optimizing recoveries and ramping up throughput to an average of 5,500 tonnes per day in 2026. Our strong performance led us to increase the low end of our 2025 production guidance to 490,000 to 525,000 ounces. We’re also confirming our unit cost guidance, but we expect to be at the high end of the range due to the impact of our gold prices on royalties and profit sharing.

Our largest ever exploration program is off to a great start with 48,000 meters completed of a minimum of 108,000 meters. At FD and S, we’re making excellent progress on conversion drilling, and our engineering studies are moving toward initial reserve as part of our annual statement early next year. For the discovery of Transcaloma and now Sandia, we’re looking at better understanding the geological environment between Bazaar and the expanding Porphyry Corridor. Sustainability is integral to our success. We are actively working on a new five year sustainability strategy aligned with global best practices.

Finally, we are committed to returning value to our shareholders. Our initial target was to return 300,000,000 via dividends. I’m pleased to say we’ve already exceeded that, having paid out and announced approximately 470,000,000 year to date. In conclusion, we are delivering on our operational targets, advancing our key projects and enhancing shareholder returns. We are confident in our ability to continue this possible momentum throughout the second half of the year and beyond.

Thank you all for joining us and for your continued support. And with that, I will now open the call to questions.

Conference Operator: Thank you, ladies and gentlemen. We will now begin the question and answer session. If you have a question, please press the star followed by the one on the touch tone pound. Should you wish to cancel your request, press the star followed by the two. If you’re using a speakerphone, please lift the handset before pressing any case.

Your first question is from Fahad Tariq from Jefferies.

Terry Smith, Chief Operating Officer, Lundin Gold: At at end, you mentioned you expect throughput to increase in the second half, but how should we be thinking about grades relative to the first half of the year?

Ron Hoxbine, President and CEO, Lundin Gold: Terry, do you wanna take that one? Sure, Ron. Hey, Fahad. Yeah. We’re looking at grades between nine and ten grams for the balance of the of the year, closer to to nine, I would say.

Terry Smith, Chief Operating Officer, Lundin Gold: Okay. Great. And then looking at the exploration, I didn’t see much commentary in the MD and A or in the presentation about Bonds De Sur. Maybe and I think you mentioned something just a few minutes ago. Maybe just mention or remind us what’s kind of the the focus there.

And it sounds like the initial resource is is it’s not going to be announced anytime soon there as as you kinda do drilling elsewhere.

Ron Hoxbine, President and CEO, Lundin Gold: Well, that’s a that’s a really good question. Yeah, our shift our focus has shifted there. Yeah. With Bongo Sur, we see this now as part of a much potentially much larger complex. So it really doesn’t make a lot of sense for us based on what we’re seeing on the drilling right now to be putting out just a a potentially small resource of a much larger area with Bonsa Sur.

You know, Bonsa Sur, helped us to get to where we are today. It helped lead us towards looking at Tranquiloma and that whole corridor. But it’s it’s it’s I think in some respects, it’s, you know, much larger system now. So it just doesn’t make a lot of sense for us to be pushing that out.

Terry Smith, Chief Operating Officer, Lundin Gold: That’s very clear. Thank you.

Conference Operator: Thank you. And your next question is from Don DeMarco from National Bank Financial. Your line is now open.

Terry Smith, Chief Operating Officer, Lundin Gold: Thank you, operator, and good morning, Ron and team. Congratulations on a strong h one, actually. So I see that you opportunistically relined the mill and you completed the commission in James himself. So should we expect an uptick in recoveries and minimal downtime in processing in h two?

Ron Hoxbine, President and CEO, Lundin Gold: Morning, Don. Yeah. We took we did take advantage of when we commissioned the Jameson cells to shift a Segmell relining and then Balmell relining to February. We will have another relining. I think it’s November, Terry?

Correct. Yeah. So we will have a little bit of downtime in November for that reline. But, yeah, we don’t anticipate any significant downtime done for the second half of the year other than that one reline.

Terry Smith, Chief Operating Officer, Lundin Gold: Okay. I think the q two recoveries were maybe close to ninety one percent With the completed commissioning of the Jameson stuff, do you think you will add about that in h two, or or is that a good number to go forward with?

Ron Hoxbine, President and CEO, Lundin Gold: I think that’s a good number to go forward with. We’re still and I’ll let Terry comment as well. We’re still seeing some optimizations that we need to do. There’s some instrumentation we want to add to further work on. And with the channels now, we’ve kind of seen a shift on to a little bit of a bottleneck in our concentrate dewatering.

We’re producing a little more con, and so we need to to work on that. Anything else, Terry, that I’m missing? No. You’ve got it, Ron. Yeah.

Recoveries in that 90% range are are are good numbers to use, Don. And and but I agree with Ron. There’s there’s still some upside in in how we can debottleneck part of the circuit there and and achieve better recoveries. And just to clarify what I was when I was speaking about grades earlier to Fahad, I I would say our grade Fahad will be sub nine. So that’s that’s what we expect for the second half of the year.

Was I was looking at the full year grades earlier.

Terry Smith, Chief Operating Officer, Lundin Gold: Okay. Thanks for that clarification. So you mentioned that some of the mill optimization opportunities and going, you’re looking to get throughput up to 5,500 tons per day in 2026. What are some of the things that you’re doing to get to that level? And is there scope to get to 6,000 tons per day with the existing infrastructure beyond 2026?

Ron Hoxbine, President and CEO, Lundin Gold: Yeah. John, you know our team, we continue to push. Yeah. Our goal originally was to be at 5,500 for next year, but we’re seeing opportunities to continue to push ourselves to get to be at 5,500 at January 1 or maybe even a bit sooner. So we’re gonna continue to do it.

A lot of it’s tweaking. Just refining you know, as we now have the Jameson sales in and the other changes we did as part of the 40,000,000 expansion, We’re seeing maybe starting to find some other battery limits so we could but that’s nothing significant. Pump pump speeds, you know, of different things that we’re working on. But to your point, the team, we’ve already engaged some engineering companies to start looking at what is the next level. Is it fixed?

Is it a little bit higher than that? That’s what we’re we’ve already are starting to look ahead, and teams were on-site a few weeks ago, kinda looking at all things and what what needs to be done to maybe take us above that. Then also then we’d have to look at what, you know, where we’re running any constraints around our permitting and that sort of thing. But, John, as probably you would expect, our team has already started to look at what’s next.

Terry Smith, Chief Operating Officer, Lundin Gold: Absolutely. Okay. And then just as a final question, it’s on your expiration update. So, certainly, as you mentioned, I appreciate the priority of the FDNS, and FDNS don’t want anything near you know, you know, they have offered near term term returns. But but this poor porphyry corridor looks really interesting in terms of the up the blue side upside potential.

And so I was just wondering what your approach is to explore this. Like, do you plan to do a detailed definition, let’s say, one porphyry tricholoma and expedite toward, you know, preparation of the PEA or continue with just high level porphyry discovery beyond Sandia, maybe a multiyear program just to understand the full regional potential?

Ron Hoxbine, President and CEO, Lundin Gold: I think it’s more the we would be we’re what’s happened is, first of all, the team started to realize is actually there were some big gaps even in our surface sampling, the GeoChem surface sampling in that, and we’ve completed all that in the past quarter, and we’ve highlighted a number of new anomalies between Sandia and Tranquiloma. I wouldn’t say that it’s actually gonna shift to a regional, Don. It’s gonna be more that we’re gonna we’re gonna start focusing on this corridor, Sandia to Tranquiloma. And even from June to now, we’re up to 17 rigs, but we’ve shifted some of our surface rigs from other targets to focus on this this corridor. We also had a bit of a there’s some results in that were delayed because in q two, we had a lot of rain, a lot as you may have seen in some of this new stories that came out of Ecuador with the flooding in that.

And as a result, a lot of that’s helicopter supporting, and we couldn’t get core to from the pads to the core shed to be processed. So we’re a bit behind on results. So we it’s fine. We are really starting to focus on it. And, yeah, some rates have been moved to it.

Terry Smith, Chief Operating Officer, Lundin Gold: Okay. Okay. Great. Well, that’s all for me. Good luck with the rest of the quarter, and, you know, keep those rates turning.

Thank you.

Ron Hoxbine, President and CEO, Lundin Gold: Thanks, Don.

Conference Operator: Thank you. Your next question is from Martin Pettier from Veritas Investment Research. Your line is now open.

Terry Smith, Chief Operating Officer, Lundin Gold: Thank you. Great results. Thank you for taking my question. The first question I have is, did you have, you know, months or days of, you know, 93, 94, 95% recovery? Or that never happened?

Ron Hoxbine, President and CEO, Lundin Gold: Terry, do wanna take that one? Hi, Martin. Yeah. We see recoveries pretty stable on a on a day to day basis. I would say the the range is in the, you know, 88 to 93, 94%.

And, you know, obviously, averaging out what we did around 91 for the quarter.

Terry Smith, Chief Operating Officer, Lundin Gold: Okay. So there there might be like, if you if you do more, you you might get more consistent in 92 or 93 eventually.

Ron Hoxbine, President and CEO, Lundin Gold: Well, you know, we’re not like like Ron was describing with throughput, you know, we’re never done trying to improve recovery. I do think that there’s some further optimization and there’s some technology aspects and and even longer term, there’s some some things we’re we’re working on from a recovery perspective. So but but for now, you know, in the in the medium term, where we are is is about what we’re gonna be able to do.

Terry Smith, Chief Operating Officer, Lundin Gold: Now when I look at 2026, you you’re going to be at 5,500 tons per day perhaps since the beginning. Your recovery are a little bit higher than than before. Is there a possibility that that you’ll be able to push production a little bit higher than than your original guidance?

Ron Hoxbine, President and CEO, Lundin Gold: Go ahead, Terry. Yeah. I you know, we we brought up the bottom end of our guidance, and I think that’s a, you know, a a good good way to think about the year. We’ve we’ve already guided on some grades, recoveries. You know, Ron’s talking about our throughput pushing towards 5,500.

So I I think you’ve got all the all the information you need to sort of forecast where we’re gonna land.

Terry Smith, Chief Operating Officer, Lundin Gold: I’m saying 2026, not 2025.

Ron Hoxbine, President and CEO, Lundin Gold: Oh, I’m sorry. 2026. You know, we’re we’re we’re sticking with our our guidance that we our three year guidance that we put out earlier this year where, you know, we’ll get into the year next year at 6,500 tons per day, and that’s a good number to use until we we have a little bit more information. As Ron was describing, we’re just getting into looking ahead as to what we can push this plant beyond. And so we don’t have any timing of of when we would be able to achieve higher throughput than 5,500 at the moment.

Terry Smith, Chief Operating Officer, Lundin Gold: Great. Thank you. And in terms of the you know, trying to figure out the exploration of of, you know, this big porphyse that that you’re finding, how long will it take you or do you you have an estimate it would take you two, three years to figure this out I mean

Ron Hoxbine, President and CEO, Lundin Gold: That’s a that’s a great question, Martin. That’s that’s some of the things we’re going through ourselves. And, you know, that kinda came up at our board meeting yesterday. And, you know, it’s very early days. You know, we’ve got, I think, four or five holes, and we’ve reported in Tranquiloma and one in Sandia.

And as I said, we just kinda finished the new surface geochem program, which has identified more anomalies to be tested. So it’s you know, I think that’s something I would see that as part of our what we talked about when we come out with our 2026 budget is, obviously, our expiration. You’ll see where we’re focused on and maybe have a little bit more visibility as what we see as a longer term plan for that that district.

Terry Smith, Chief Operating Officer, Lundin Gold: Great. Okay. Thank you very much. That’s all for me.

Ron Hoxbine, President and CEO, Lundin Gold: Thank you. Thank you, Morgan.

Conference Operator: Thank you. Your next question is from Jeremy Horne from Canaccord Genuity. Your line is now open.

Ron Hoxbine, President and CEO, Lundin Gold: Hi, Ron and team. Thanks for taking my question.

Terry Smith, Chief Operating Officer, Lundin Gold: Thinking about Transloma and the the Porphyry Corridor, you know, you’ve just said it is early days, but it certainly seems to be quite quite the exciting developments. You guys have also had an excellent relationship with the community. Do you think that the nearby communities would be supportive of an expanded footprint of if an industrial works on the property if it were to

Ron Hoxbine, President and CEO, Lundin Gold: get that to that point with resource and and mine plans? Good morning, Jeremy. Yeah. It it you that’s one of the things we’ve had some, you know, just a lot of discussions internally with our teams. And quite frankly, we see the timing of us with these opportunities as porphyry district.

The timing couldn’t be better with regards to what we see as the potential in Ecuador and the push of the of the new government to really focus on mining. And we do have strong community relationships, and we’ve been quite upfront. I even started with Bonsa Sur and others about talking about that we may be looking at, you know, open pit potential. And, you know, to date, we’ve seen a lot of support from the community because, again, they’re seeing longer, you know, generational type opportunities and, you know, so I think we would based on what we know today, we would have good support to continue to develop and expand Fruta del Marte and the potential there. That’s great to hear.

Thanks, Ron.

Terry Smith, Chief Operating Officer, Lundin Gold: That’s it for me.

Ron Hoxbine, President and CEO, Lundin Gold: Thanks, Jeremy.

Conference Operator: Thank you. Once again, please press star one should you wish to ask a question. And your next question is from Kate Nakadala from CIBC. Your line is now open. Thank you.

Hi, Ramatine. Thank you for taking my questions. I’m asking on behalf of my analyst, Sunita Soni. So for Transyloma and Sandia, I was wondering if you could provide any detail conceptually on what size of plants you’re envisioning and if it will be separate from a Bonsa sewer plant. Thanks.

Ron Hoxbine, President and CEO, Lundin Gold: Morning. It would, as we said earlier, k it’s a it’s really early days. We we couldn’t even envision as to what size of plant that it would be right now. You know, we’ve gone from just in the past quarter from looking at Tranquiloma now to hit you know, having this anomaly in Sandia, which is, you know, three and a half, four it’s maybe five kilometers from the southern edge of Tranquiloma. You know?

So this thing

Terry Smith, Chief Operating Officer, Lundin Gold: is is

Ron Hoxbine, President and CEO, Lundin Gold: changing rapidly in terms of what potential this could be. Yeah. It would definitely and now also two bungal sewer we’re looking at is possibly part of this overall complex. So it’s really a right now, would say that the way of looking at this, it’s really a blank slate for us. It’s such early days, but it’s something that we too are very excited about, and it’s something we spent some time on dreaming what this could be and and what’s this now focus on the drills.

Andre reminded our board yesterday, it wasn’t that long ago that we had six rigs, and now we’re up to 17 rigs. And so where we will be, you know, making sure you that you and Anita and me and our shareholders that we will be focusing on this and, you trying to move this along and be able to answer some of these questions here in the not too distant future.

Conference Operator: Thank you. Your next question is from Martin Pattier from Veritas Investment Research. Your line is now open.

Terry Smith, Chief Operating Officer, Lundin Gold: Just one question. Have you considered doing, like, two companies? One like, if if the opportunity is there to do two companies, one gold company and another one more like a copper company? Because I I’m thinking the investment and, you know, the kind of stuff that that you need on the copper is is much different, you know, it’s much bigger. And there might be, you know, different investor groups interested in gold and copper.

Ron Hoxbine, President and CEO, Lundin Gold: Yeah. Martin, the answer is no. A, just within Ecuador, this is still all on the little charges concession. So it’s not like we really wanna start having a, you know, another company up in our concession. And we already have a large copper company that’s doing extremely well in Lundin Mining.

So if investors want copper, you know, they got a company that’s doing extremely well. There’s a lot of growth in front of it to invest there. There’s a lot of gold. You know, we’re seeing high gold in these what we’re seeing at Sandia and Trincaloma, which, you know, I think just contributes to our you know, to the the gold story. But, yeah, we wouldn’t consider that.

Terry Smith, Chief Operating Officer, Lundin Gold: Okay. Thank you.

Conference Operator: Thank you. There are no further questions at this time. Please proceed.

Ron Hoxbine, President and CEO, Lundin Gold: Thanks, Jenny. Just wanna thank all of you for your continued coverage. And as always, we are we are always Chester, Terry, Brandon. We’re always available for any questions you may have. And, again, thank you to our shareholders for your continued support.

Thanks very much.

Conference Operator: Thank you. Ladies and gentlemen, the conference has now ended. Thank you all for joining. You may all disconnect your lines.

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