LUNDIN GOLD THREE YEAR OUTLOOK ANTICIPATES CONTINUED GROWTH IN GOLD PRODUCTION FROM FRUTA DEL NORTE
2023 production estimated between 425,000 to 475,000 ounces
Highlights:
- 2023 production is estimated between 425,000 to 475,000 ounces ("oz").
- Cash operating costs¹ and all-in sustaining costs[1] ("AISC") for 2023 are expected to range between
$700 and$760 and$870 and$940 per oz gold sold, respectively. - Total sustaining capital in 2023 is estimated at
$45 to$55 million . - 28,000 metres is planned to be drilled under the 2023 near mine and regional exploration programs.
The Company's outlook for production, sustaining capital and AISC for the next three years is provided in the table below.
|
2023 |
2024 |
2025 |
Gold Production (oz) |
425,000 – 475,000 |
450,000 – 500,000 |
465,000 – 515,000 |
Sustaining Capital ($ million) |
45 – 55 |
25 – 35 |
45 – 55 |
Cash operating cost ($/oz)¹ |
700 – 760 |
650 – 710 |
640 – 700 |
AISC ($/oz)¹ |
870 – 940 |
780 – 850 |
800 – 870 |
1. Gold/silver price per oz assumptions for the three years are |
_________________________ |
1 See Non-GAAP Financial Measures below. |
2023 Guidance and 2023-2025 Outlook
Gold production at Fruta del Norte for 2023 is estimated to be between 425,000 to 475,000 oz based on an average throughput rate of 4,400 tpd. The head grade is estimated to average 9.67 g/t, with fluctuations expected during the year as different sections of the ore body are mined. Average mill recovery for the year is estimated at 90%.
Cash operating costs are estimated to range between
Total sustaining capital in 2023 is estimated at
The anticipated fluctuation in gold production over the three years is principally due to expected variations in the grade of ore mined and milled. Except for variations in gold price and possible continuing inflationary pressure which impact cash operating cost and AISC, the other significant factor affecting AISC is sustaining capital which is expected to be higher in the years when a tailings dam lift is planned (2023 and 2025).
Other 2023 Activities
Consistent with the dividend policy approved in Q2 2022, the Company is planning to continue to pay dividends, moving to quarterly dividends of at least
The near-mine program will focus on underground and surface drilling at or near Fruta del Norte. Indications from drilling in 2022 suggests significant potential for the extension of the Fruta del Norte resources at depth as well as to east, west and south of the current resource envelope. The 2023 near mine program is estimated to cost
The regional program will focus on several exploration targets located in the 16km long
Non-GAAP Financial Measures
This news release refers to certain financial measures, such as cash operating costs and AISC, which are not measures recognized under IFRS and do not have a standardized meaning prescribed by IFRS. These measures may differ from those made by other companies and accordingly may not be comparable to such measures as reported by other companies. These measures have been calculated on a basis consistent with historical periods. Please refer to the Company's MD&A filed on SEDAR under the Company's profile at www.sedar.com, pages 13 to 16, for the third quarter of 2022 for an explanation of non-IFRS measures used.
Qualified Persons
The technical information relating to Fruta del Norte contained in this News Release has been reviewed and approved by
About
The Company's board and management team have extensive expertise in mine operations and are dedicated to operating Fruta del Norte responsibly. The Company operates with transparency and in accordance with international best practices.
Additional Information
The information in this release is subject to the disclosure requirements of
Caution Regarding Forward-Looking Information and Statements
Certain of the information and statements in this press release are considered "forward-looking information" or "forward-looking statements" as those terms are defined under Canadian securities laws (collectively referred to as "forward-looking statements"). Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, identified by words or phrases such as "believes", "anticipates", "expects", "is expected", "scheduled", "estimates", "pending", "intends", "plans", "forecasts", "targets", or "hopes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "will", "should" "might", "will be taken", or "occur" and similar expressions) are not statements of historical fact and may be forward-looking statements. By their nature, forward-looking statements and information involve assumptions, inherent risks and uncertainties, many of which are difficult to predict, and are usually beyond the control of management, that could cause actual results to be materially different from those expressed by these forward-looking statements and information. Lundin Gold believes that the expectations reflected in this forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct. Forward-looking information should not be unduly relied upon. This information speaks only as of the date of this press release, and the Company will not necessarily update this information, unless required to do so by securities laws.
This press release contains forward-looking information in a number of places, such as in statements relating its 2023 production outlook, including estimates of gold production, grades and recoveries, and its expectations regarding AISC, cash operating costs, free cash flow and capital costs, benefits of increased ventilation in the mine, plans to declare and pay dividend and the Company's exploration plans and success. There can be no assurance that such statements will prove to be accurate, as Lundin Gold's actual results and future events could differ materially from those anticipated in this forward-looking information as a result of the factors discussed in the "Risk Factors" section in Lundin Gold's Annual Information Form dated
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