Canada's Lundin Gold Q3 revenue rises on record gold production, higher prices

By Reuters News


Overview

  • Canada gold miner's Q3 revenue rose to record $633 mln on strong gold production

  • Adjusted EPS for Q3 was $1.23, reflecting higher gold sales and strong grades

  • Company returned $264 mln to shareholders via dividends and share repurchases in Q3


Outlook

  • Lundin Gold maintains 2026 gold production guidance of 475,000-525,000 oz

  • Company expects 2026 all-in sustaining cost of $1,110-$1,170 per oz sold

  • Fourth-quarter production expected to be lowest of the year due to lower grades and maintenance


Result Drivers

  • RECORD GOLD PRODUCTION - Co said Q3 gold output reached 153,736 oz, driven by strong mill throughput and higher grades at Fruta del Norte

  • HIGHER REALIZED GOLD PRICE - Average realized gold price rose to $4,299/oz, boosted by provisionally priced sales settling above prior estimates

  • COST DISCIPLINE - Cash operating costs and all-in sustaining costs remained stable as record gold sales, strong grades, and continued cost discipline offset higher royalties and profit sharing from higher gold prices


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

$633 mln

Q3 Adjusted EPS

$1.23

Q3 Adjusted EBITDA

$480.03 mln

Q3 Net Income

$293.80 mln

Q3 Free Cash Flow

$330.86 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the gold peer group is "buy."

  • Wall Street's median 12-month price target for Lundin Gold Inc. is C$99.00, about 8.5% above its November 4 closing price of C$91.28

  • The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 12 three months ago


Reuters Recommended Reads

  • Nov 4 - Canada's Allied Gold Q3 gold output rises 5%

  • Nov 4 - Canada's B2Gold lowers annual all-in sustaining cost guidance after strong gold production in Q3

  • Nov 4 - Canada's Aris Mining YTD gold production rises 16%


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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