Highlights 

  • Lundin Gold targets 475,000–525,000 ounces of gold production in 2026. 
  • Largest exploration campaign in company history with 133,000 metres of drilling planned. 
  • Mill throughput is expected to reach 5,500 tonnes per day, supporting long-term growth. 
  • A fixed quarterly dividend of USD 0.30 per share maintained, with variable dividend linked to free cash flow. 
  • Potential mine-to-mill expansion beyond 5,500 tpd under evaluation for 2026 H2 decision. 

Lundin Gold Inc. (TSX:LUG) has released its 2026 guidance for its Fruta del Norte gold mine in southeast Ecuador, projecting gold production between 475,000 to 525,000 ounces. The company expects to maintain a competitive cost structure with cash operating costs of USD 900–960 per ounce and all-in sustaining costs of USD 1,110–1,170 per ounce, based on an assumed gold price of USD 4,000 per ounce. 

Mill throughput is expected to reach 5,500 tonnes per day, with an average head grade of 8.3 g/t Au and mill recovery of 91%. Total sustainingcapitalis estimated at USD 75–90 million to support operational stability, infrastructure enhancements, and equipment overhauls. Production and sales are anticipated to be back-end weighted, with lower unit costs expected in H2 2026 as higher-grade ore is mined. 

Exploration and Expansion: Unlocking Future Potential 

Next year marks a landmark exploration year for Lundin Gold, with the largest program in the company’s history. A total of 133,000 metres of drilling is planned, including 100,000 metres near the FDN mine and 8,000 metres on regional targets, along with 25,000 metres for resource conversion. These efforts aim to extend mine life, unlock growth potential, and support the anticipated development of the Fruta del Norte South deposit, with a decision expected in H1 2026. 

The company is also evaluating opportunities to expand the mine and mill capacity beyond 5,500 tpd, with aninvestmentdecision expected in H2 2026. These initiatives demonstrate Lundin Gold’s strategic focus on combining operational excellence with sustainable growth through disciplined exploration and development. 

Three-Year Outlook: Sustained Production and Shareholder Value 

Lundin Gold’s three-year outlook maintains consistent production levels of 475,000–525,000 ounces per year, with sustaining capital ranging from USD 50–95 million. Cash operating costs and AISC are expected to remain within current ranges. The company continues to prioritizeshareholderreturns, maintaining a fixed quarterlydividendof USD 0.30 per share along with a variable dividend based on at least 50% of normalizedfree cash flow. 

This strategic outlook emphasizes Lundin Gold’s long-term growth through operational efficiency, disciplined exploration, and careful planning for potential expansions, ensuring the company remains a leading gold producer with sustainable value creation. 

Conclusion 

Lundin Gold is positioning itself for a transformative 2026, with sustained production, the largest exploration program in its history, and potential expansions that could increase throughput and extend mine life. The company’s commitment to operational excellence, growth, and shareholder returns underscores its confidence in the long-term potential of Fruta del Norte and the surrounding exploration areas. 

Lundin Golds’ shares closed at CAD 109.61, marking a 1.34% increase from the prior session.