Lundin Gold (TSX: LUG) exceeded last year’s production guidance with a record output of 502,029 oz. from its Fruta del Norte gold mine in Ecuador, the company announced on Thursday. Its 2024 guidance range was set at 450,000–500,000 oz.
During the fourth quarter, Lundin produced a total of 135,241 oz. of gold, for a 36.2% improvement on the same quarter of 2023, owing an increase in gold head grades.
Lundin Gold’s shares rose 5.5% to C$32.74 apiece by noon ET following the announcement, taking its market capitalization to C$7.9 billion ($5.5bn). The stock traded between C$14.23 and C$35.89 over the past 52 weeks.
Last month, Lundin raised its annual production guidance to 475,000–525,000 oz. for 2025 through 2027 after making progress at expansion projects aimed at improving throughput and recovery.
Following the expansion, the Fruta del Norte mill is expected to have a throughput of 5,000 tonnes per day on average, the company has said, adding that further investments are planned to increase that to 5,500 tonnes starting in 2026.
In addition to upgrading the mine operation, Lundin also has a three-year greenfield exploration strategy to boost the Fruta del Norte resources.
The company acquired Fruta del Norte in late 2014 from Kinross Gold, which had to halt operations after failing to reach an agreement with Ecuadorian authorities on development terms.
Construction began in July 2017, and the first gold was poured in November 2019. Commercial production commenced in February 2020, making Fruta del Norte Ecuador’s first large-scale gold mine.
Later in 2020, Lundin approved an $18.6 million mine expansion.
