Q2 2024 Lundin Gold Inc Earnings Call Transcript
Key Points
- Lundin Gold Inc (LUGDF) achieved record quarterly revenues of $301 million from the sale of 129,396 ounces of gold at an average realized price of $2,379 per ounce.
- The company generated significant cash flow, with $144 million from operating activities and adjusted free cash flow of $112 million.
- Lundin Gold Inc (LUGDF) is on track to meet its production guidance of 450,000 to 500,000 ounces for the year.
- Exploration activities yielded positive results, with over 13,700 meters of drilling completed, indicating potential to increase resources at FDN.
- The company has repaid all project finance debt and is now debt-free, allowing 100% of cash flow to be attributable to shareholders.
- Cash operating costs and all-in sustaining costs have trended toward the upper end of guidance due to higher royalties and profit sharing.
- The ongoing power crisis in Ecuador has necessitated additional investment in power generation equipment, which will be operational by early Q2 2025.
- The expansion project has created new work fronts within existing operations, leading to disappointing safety performance compared to previous periods.
- The company expects more scheduled downtime and commissioning for new equipment in the second half of the year.
- Adjusted free cash flow decreased in Q2 compared to the previous year due to higher income taxes paid following the full repayment of the gold prepay facility.
Good morning, ladies and gentlemen. And welcome to the Lundin Goldâs second-quarter 2024 earnings conference call. (Operator Instructions) Also note this call is being recorded on Friday, August 9, 2024. And I would like to turn the conference over to Ron Hochstein. Please go ahead, sir.
Thank you, operator and good morning, everyone. Thank you all for joining us on our conference call today where Terry Smith, Chief Operating Officer; Chester See, Chief Financial Officer, and I are going to take you through our results for the second quarter of 2024.
Please note Lundin Goldâs disclaimers on this slide. This discussion includes forward-looking information. Actual future results may differ from expected results for a variety of reasons described in the caution regarding forward-looking information and statements section of our press release. Lundin Gold is a US dollar reporting entity, and all amounts in this presentation refer to US dollars, unless otherwise wise indicated.
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