PROFIT & LOSS

Lundin on track at Fruta del Norte

Underground development ahead of target rate

Staff reporter
Ground support in the K’isa decline

Ground support in the K’isa decline

The company reported overall engineering was 48% complete and construction was 21% complete, in its June quarter results.

"Underground development rates exceeded our target advance rates and today we are more than half-way to the orebody and remain on track for first gold production in the fourth quarter of next year," president and CEO Ron Hochstein said.

The company announced income of 9c per share for the quarter.

It had cash of US$393.5 million at the end of June, compared with $35 million at the end of December, primarily due to net proceeds from a $396.5 million private placement and the final drawdown of $110 under a gold prepay and stream credit facilities.

This was offset by $121 spent on development, $9.9 million on general and administration costs and $4.2 million on exploration.

Lundin closed a $350 million senior debt facility with a seven-member syndicate last month to complete funding for Fruta del Norte.

The company said it was also in discussions with "selected potential parties" to establish a cost overrun facility, which was a condition precedent to the initial drawdown of the facility, expected in early 2019.

Hochstein said Lundin had secured contracts for 80% of expected production through its offtake agreements with Boliden and Orion.

Fruta del Norte has a 4.9 million ounce reserve grading 9.2g/t gold and is expected to produce an average 325,000oz of gold a year over 15 years at an all-in sustaining cost of $609/oz.

Lundin shares closed down 1.26% on Friday to C$4.70, near the middle of its 52-week range.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Q1 Mining Equities Report 2023

Discover new trends in mining investment with insights into capital raisings and share price performance of more than 2,500 companies.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.