Lundin Gold Inc (STU:F1YN)

Q2 2026 Lundin Gold Inc Earnings Call Transcript

Aug 7, 2026 / 03:00 PM GMT

Release Date Price: €56.92 (+6.27%)

Transcript

Key Points

Positve

Lundin Gold Inc (LUGDF) delivered strong Q2 2026 operational performance with production of approximately 119,000 ounces, bringing year-to-date output to 239,000 ounces and reaffirming full-year guidance of 475,000-525,000 ounces.
The company generated robust free cash flow of $96 million in Q2, even after making annual tax and profit-sharing payments of $221 million, and ended the first half with a strong cash balance of $507 million.
Lundin Gold Inc (LUGDF) continues to return significant capital to shareholders, declaring a Q2 dividend of $1.08 per share, representing 100% of normalized free cash flow, and announcing plans to commence share buybacks under its normal course issuer bid.
Exploration success was notable, with the discovery of two new copper-gold porphyries (bringing the total to seven), high-grade intercepts at FDNS and FDN East, and progress on the Sandia deposit, which is on track for a maiden resource in early 2027.
The company is advancing its growth pipeline, including the mine-to-mill expansion study (on track for year-end), underground development at FDNS (370 meters completed), and commencement of development towards FDN East in July.
Operational efficiency improved, with the mill averaging approximately 5,500 tons per day despite nine days of planned maintenance, and June throughput reaching closer to 6,000 tons per day, positioning the company for a stronger second half.
Lundin Gold Inc (LUGDF) maintains a debt-free balance sheet with $445 million in working capital, providing financial flexibility for future growth projects and potential strategic options.

Negative

Q2 2026 was the lowest production quarter of the year, with cash operating costs of $1,016 per ounce and all-in sustaining costs of $1,176 per ounce reflecting lower ounces sold, though margins remained robust at approximately 73%.
The company recognized a one-time non-cash fair value loss of approximately $75 million on LUNAR shares received and distributed as a dividend in kind, which, while offset by a $127 million gain on the Silver Stream obligation, introduces volatility to reported earnings.
Investors should expect ongoing quarter-to-quarter volatility in reported earnings due to the revaluation of the Silver Stream obligation, driven by changes in silver prices and updates to long-term production and mine plan assumptions.
Annual tax and profit-sharing payments of $221 million were materially higher than the prior year due to strong 2025 financial performance, impacting quarterly cash flow generation.
The company's growth projects, such as the potential copper-gold porphyry development, will require significant future investment, which may necessitate adjustments to the current 100% free cash flow return policy and could limit near-term shareholder returns.
While the mine-to-mill expansion study is on track, the company clarified that increased throughput will not lead to a significant production bump, as it will primarily offset declining grades later in the mine life, keeping production around the 500,000-ounce profile.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

LUG.TO - Lundin Gold Inc.
Q2 2026 Lundin Gold Inc Earnings Call
Aug 07, 2026 / 03:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good morning, ladies and gentlemen, and welcome to the Linden Gold Q2 2026 earnings call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press *0 for the operator. This call is being recorded on August 7, 2026.

I would now like to turn the conference over to Jamie Beck, President and CEO. Please go ahead.

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Unidentified_2 [2]
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Thank you, operator, and good morning, everyone.

Thank you all for

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