Lundin Gold (LUG) Q1 2026 earnings summary

Executive summary

• Achieved record gold production of 119,742 oz in Q1 2026, with 115,308 oz sold and record mill throughput of 5,520 tpd, supporting strong operational and financial performance at Fruta del Norte.

• Generated $370 million in cash from operations, ending the quarter with $704 million in cash and no debt after $278 million in dividend payments.

• Free cash flow reached $349 million, supporting robust dividends and ongoing exploration, with a declared Q1 dividend of $1.21/share totaling $293 million and plans for a LunR Royalties share dividend.

• Advanced early-stage development at FDNS, mine-to-mill expansion study, and launched the largest exploration program in company history.

• Confirmed 2026 production guidance of 475,000–525,000 oz, with output expected to be back-end weighted due to planned maintenance and mine resequencing.

Financial highlights

• Q1 2026 revenue was $567 million, up from $356 million year-over-year, with net income of $273 million and EBITDA of $424 million.

• Free cash flow for Q1 2026 was $349 million ($1.44 per share), more than double the prior year’s Q1.

• Cash operating costs averaged $987/oz and AISC averaged $1,114/oz, resulting in a strong AISC margin of 78%.

• Operating cash flow was $370 million, increasing the cash balance to $704 million after $278 million in dividends paid.

• Basic EPS for Q1 2026 was $1.13, up from $0.64 in Q1 2025.

Outlook and guidance

• Full-year production guidance reaffirmed at 475,000–525,000 oz, with output expected to be back-end weighted due to planned maintenance and grade sequencing.

• Recoveries are expected to remain in line with guidance, despite Q1 trending slightly below the 91% target due to geological variability and higher throughput.

• Mine-to-mill expansion study remains on track for completion by year-end, with an integrated investment decision targeted for late 2026.

• Targeting a record 133,000 metres of drilling in 2026, with ~30,000 metres completed in Q1.

• Sustaining capital expenditures to increase in subsequent quarters with the sixth tailings dam raise and new quarry development.