Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Lundin Gold (TSX: LUG) has reported an all-time high quarterly gold production from its Fruta del Norte mine in southeast Ecuador, with a total of 140,021 ounces in the first quarter of 2023. During the same quarter in 2022, the company produced 121,665 ounces of gold.
In the first quarter of 2023, the mill processed 392,332 tonnes of material, resulting in an average throughput rate of 4,359 tonnes per day at an average grade of 12.3 grams per tonne with recoveries of 90.6%.
These results, according to Lundin, are in line with the variability incorporated within the company’s production guidance of 425,000 to 475,000 ounces for 2023, as grades and gold production are expected to vary over the coming quarters.
Gold sales in the first quarter of 2023 totalled 134,691 ounces versus 119,282 ounces sold in the same period last year.
“2023 is off to a great start, and I’m extremely happy to announce that record gold production was achieved through an all-time high in recoveries and grade,” CEO Ron Hochstein commented in a press release.
For two straight years, the company has exceeded its production guidance at Fruta del Norte, one of the world’s highest grade gold mines. Its 2022 production totalled 476,329 ounces.
Shares of Lundin Gold closed 3.6% higher on Thursday afternoon, giving the company a market capitalization of C$4 billion ($2.9bn).
