Lundin Gold (TSE:LUG) Releases Earnings Results

Lundin Gold (TSE:LUG) issued its quarterly earnings data on Thursday. The company reported C$1.75 EPS for the quarter, FiscalAI reports. Lundin Gold had a return on equity of 81.63% and a net margin of 46.31%. The company had revenue of C$901.15 million during the quarter.

Here are the key takeaways from Lundin Gold’s conference call:

• Lundin Gold reported record Q3 production of about 154,000 ounces, supported by higher-than-planned grades and record mine and mill throughput. Management said it remains on track to meet 2026 production guidance of 475,000–525,000 ounces, though Q4 production is expected to moderate as grades normalize and after scheduled maintenance.
• Strong operations generated $377 million in operating cash flow and $331 million in free cash flow; the company ended the quarter with $574 million in cash. It returned $261 million to shareholders in Q3 and declared a $1.14-per-share dividend, continuing its policy of returning 100% of normalized free cash flow.
• The mine-to-mill expansion study has advanced to final cost estimates and scheduling, with an integrated investment decision expected in Q4. Underground development at FDNS and FDN East is progressing, while management said further throughput growth beyond the contemplated project may be constrained without a significant new discovery.
• Exploration results included a new epithermal gold discovery, Quebrada Dorada, which doubles the known strike length of the trend to 8 km, alongside encouraging results at FDNS, FDN East, and Bonza Sur. Lundin Gold plans to release a maiden resource estimate for its Sandia copper-gold deposit in early 2027.
• The company said the calculation of Ecuador’s sovereign adjustment remains under discussion, with differences involving the interpretation of its agreements. Mediation is expected to begin early in 2027, and management could not provide a resolution timeline.

Lundin Gold Stock Up 2.7%

LUG stock traded up C$2.59 during trading on Friday, hitting C$98.46. The company had a trading volume of 906,900 shares, compared to its average volume of 617,474. The firm has a market capitalization of C$23.79 billion, a P/E ratio of 25.57 and a beta of 1.86. The company has a 50 day simple moving average of C$91.32 and a 200-day simple moving average of C$95.24. Lundin Gold has a 52-week low of C$71.51 and a 52-week high of C$130.98.

Lundin Gold Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, September 25th. Stockholders of record on Friday, September 25th were issued a $1.0934 dividend. The ex-dividend date was Thursday, September 10th. This is a boost from Lundin Gold’s previous quarterly dividend of $0.91. This represents a $4.37 dividend on an annualized basis and a dividend yield of 4.4%. Lundin Gold’s dividend payout ratio (DPR) is currently 102.60%.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on the company. Canadian Imperial Bank of Commerce dropped their price objective on Lundin Gold from C$137.00 to C$131.00 in a research note on Monday, August 10th. Royal Bank Of Canada lowered their price objective on Lundin Gold from C$98.00 to C$89.00 in a research note on Wednesday, September 16th. Finally, Desjardins dropped their price objective on shares of Lundin Gold from C$105.00 to C$100.00 and set a “buy” rating for the company in a research note on Monday, July 27th. Two research analysts have rated the stock with a Buy rating. According to MarketBeat, Lundin Gold presently has an average rating of “Buy” and a consensus target price of C$108.40.

Lundin Gold Company Profile

Lundin Gold, headquartered in Vancouver, Canada, owns the Fruta del Norte gold mine in southeast Ecuador. Fruta del Norte is among the highest-grade operating gold mines in the world. The Company’s board and management team have extensive expertise and are dedicated to operating Fruta del Norte responsibly. The Company operates with transparency and in accordance with international best practices. Lundin Gold is committed to delivering value to its shareholders through operational excellence and growth, while simultaneously providing economic and social benefits to impacted communities, fostering a healthy and safe workplace and minimizing the environmental impact.