Lundin Gold posts higher Q1 production in Ecuador

Lundin Gold Inc. [LUG-TSX, Nasdaq Stockholm] has reported first quarter 2025 gold production of 117,313 ounces from its flagship Fruta del Norte gold mine in southeast Ecuador.

Of the total quarterly gold production, 75,494 ounces were produced as concentrate and 41,819 ounces as dore.  During the same quarter in 2024, the company produced 111,572 ounces of gold

In the first quarter of 2025, the mill processed 398,159 tonnes of ore resulting in an average throughput rate of 4,424 tonnes per day at an average grade of 10.4 g/t with recoveries of 88.5%

“2025 is off to a strong start marked by  the successful completionof our Plant Expansion Project this quarter,’’ said Lundin Gold President and CEO Ron Hochstein. “Capitalizing on the downtime associated with the new equipment tie-ins we proactively completed the relining of the SAG mill, as well as other maintenance that was originally scheduled in the second quarter, positioning us well for the remainder of the year,’’ he said. “As a result of strategic mine resequencing and positive grade reconciliation, we have seen a higher mill head grade, which we now expect to continue through the first half of the year before moderating in the second half. Hochstein said the company is also pleased with the initial performance of the process plant, post Plant Expansion Project, in terms of throughput and recoveries and are focused on optimizing performance in the coming quarter.

Fruta del Norte is one of the highest-grade operating gold mines in the world. The mine reached commercial production in February, 2020. Lundin acquired the asset from Kinross Gold Corp. (K-TSX, KGC-NYSE) in 2014 for $240 million.

Lundin will publish its first quarter of 2025 results on May 8, 2025, after the close of trading on North American markets.

Lundin was able to acquire Fruta Del Norte for a fraction of the $1.2 billion that Kinross paid for the asset after Kinross was hit with a 70% revenue-based windfall profits tax and halted development after spending US$225 million on drilling.

Confident that he could secure more favourable terms, Lundin Gold’s late Chairman Lukas Lundin won the right to produce gold at Fruta del Norte for 25 years under an (potentially renewable) exploitation agreement that allows Ecuador to tax the difference between net smelter revenue and what the revenue would be using a base price at a 70% rate. The base price, to be determined on a monthly basis, will equal the trailing 10-year average of the daily price of gold and silver.

On Friday, Lundin Gold shares were unchanged at $48.01. The shares trade in a 52-week range of $48.80 and $18.01