Lundin Gold Reports First Quarter of 2023 Results

Due to the ramp up of sustaining capital activities starting in the second quarter, the most significant being the construction of the fourth tailings dam raise, the Company also maintains its AISC1 guidance.

SEATTLE (Scrap Monster):  Lundin Gold Inc. (TSX: LUG) (Nasdaq Stockholm: LUG) (OTCQX: LUGDF) ('Lundin Gold' or the 'Company') is pleased to report results for the first quarter of 2023, highlighted by all-time high gold production of 140,021 ounces ('oz') and gold sales of 134,691 oz at a cash operating cost1 of $644 per oz sold and all-in sustaining cost ('AISC')1 of $728 per oz sold. Although the robust performance provides a strong start for the year, the Company's production guidance for 2023 remains unchanged as grade and gold production are expected to vary over the coming quarters. Due to the ramp up of sustaining capital activities starting in the second quarter, the most significant being the construction of the fourth tailings dam raise, the Company also maintains its AISC1 guidance. All amounts are in U.S. dollars unless otherwise indicated..

As at March 31, 2023, the Company maintained a strong cash balance of $210 million compared to $363 million as at December 31, 2022 with the decrease being driven by the use of cash for debt reduction initiatives and dividends to shareholders. During the three months ended March 31, 2023, the Company utilized cash to optimize its balance sheet through the full repayment of the gold prepay facility ('GPP') of $208 million which provides the Company with greater exposure to the positive outlook on gold price. This one-time transaction resulted in additional interest and finance charges of $129 million with a resultant first quarter free cash flow of $(11.7).

Ron Hochstein, President and CEO commented, 'Our strong operating and financial results were achieved while maintaining our outstanding safety record. On the heels of an excellent quarter, the operations team at FDN recently reached the milestone of four million hours worked without a Lost Time Incident or Medical Aid Incident. We continue to realize increased cash flows from Fruta del Norte as a result of our commitment to operational excellence and the full repayment of the gold prepay at the start of the year. The team at FDN is doing a great job, and I expect this positive momentum to continue.'

 Courtesy: www.lundingold.com

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