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Lundin Gold: Lundin Gold's Strong 2025 Performance: A Closer Look

Lundin Gold reported a robust financial performance for 2025, with revenues reaching $1.78 billion, a testament to the company's operational excellence. The net income for the year was $234 million in the fourth quarter, and $926 million of free cash flow was generated, underscoring the company's ability to convert its operational success into financial gains. Earnings per share (EPS) came in at $1.34, slightly below analyst estimates of $1.62. The gross margin stood at 72%, highlighting the company's disciplined approach to cost management. As Chester See, CFO, noted, "We generated $926 million of free cash flow for 2025, with cash operating cost and AISC of $838 and $1,015 per ounce, respectively."

LUG.TO

CAD 118.97

2.56%

A-Score: 6.5/10

Publication date: February 20, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Record Gold Production: Produced 498,315 ounces in 2025, with 501,301 tonnes mined in Q4.
  • Cost Efficiency: Cash operating costs averaged $838/oz, all-in sustaining costs $1,015/oz in 2025.
  • Strong Cash Flow: Generated $1B cash flow from operations and $926M free cash flow in 2025.
  • Dividend Payout: $664M dividends paid in 2025, with a $1.15/share dividend announced for Q4.
  • Growth Pipeline Advances: FDNS added to mineral reserves; mill throughput expansion studied for >5,500 tonnes/day.

Operational Highlights

The company's operational performance was equally impressive, with gold production reaching 498,315 ounces in 2025, within the guided range of 490,000 to 525,000 ounces. The average head grade was 9.5 grams per tonne, and the mill processed over 1.8 million tonnes at a record average throughput of 5,009 tonnes per day. The fourth quarter saw record mining output of 501,301 tonnes, with the mill processing 484,950 tonnes at an average of 5,271 tonnes per day.

Valuation and Growth Prospects

With a P/E Ratio of 25.77 and an EV/EBITDA of 16.09, Lundin Gold's valuation suggests that the market has high expectations for the company's future performance. The Dividend Yield stands at 3.3%, indicating an attractive return for income-seeking investors. Analysts estimate revenue growth at 0.4% for the next year, a modest increase. The company's growth pipeline is advancing, with the inclusion of FDNS into mineral reserves and the progression of underground development. The mine to mill expansion study is also underway, evaluating the potential to increase throughput beyond 5,500 tonnes per day.

Outlook and Conclusion

Lundin Gold's strong operational and financial performance in 2025 positions the company well for future growth. With a clean balance sheet and a robust dividend, the company is well-placed to deliver on its 2026 objectives. The incorporation of Bonza Sur into long-term planning and the ongoing exploration program are expected to drive future growth. As the company continues to execute its plans, investors will be watching closely to see if Lundin Gold can meet its growth prospects and deliver returns that justify its current valuation.

Lundin Gold's A-Score