Lundin Gold Inc. (TSE:LUG)
OTHER OTC:LUG
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Lundin Gold
(OTC:LUG)
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Rating:74Outperform
Price Target:
C$95.00
▼(-19.10% Downside)
Action:Reiterated
Date:06/06/26
The score is driven primarily by exceptional financial strength (high margins, strong growth, debt-free balance sheet, and robust free cash flow). This is partially offset by weak technical momentum (below key moving averages with negative MACD), while valuation and the modest dividend yield are supportive but not a major catalyst.
Positive Factors
High profitability margins
Sustained very high gross and net margins indicate a structurally advantaged production cost position and pricing capture at Fruta del Norte. Over the next 2–6 months this supports durable earnings power and internal funding for operations and capital without reliance on external financing.
Negative Factors
Commodity cyclicality risk
Profitability and cash flow remain highly sensitive to gold prices, metallurgical grades and operating uptime. Even with strong recent metrics, earnings and FCF can materially contract if prices or grades weaken, making forward results structurally volatile.
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Positive Factors
Negative Factors
High profitability margins
Sustained very high gross and net margins indicate a structurally advantaged production cost position and pricing capture at Fruta del Norte. Over the next 2–6 months this supports durable earnings power and internal funding for operations and capital without reliance on external financing.
Read all positive factors
Lundin Gold (LUG) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$19.46B
Dividend Yield2.47%
Average Volume (3M)741.03K
Price to Earnings (P/E)15.1
Beta (1Y)2.01
Revenue Growth49.56%
EPS Growth67.17%
CountryCA
Employees1,893
SectorBasic Materials
Sector Strength58
IndustryGold
Share Statistics
EPS (TTM)3.78
Shares Outstanding241,832,730
10 Day Avg. Volume818,928
30 Day Avg. Volume741,033
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)14.70
Price to Sales (P/S)11.03
P/FCF Ratio20.75
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$108.40Price Target Upside-7.69% Downside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)6.03
Revenue Forecast (FY)C$3.29B
Lundin Gold Business Overview & Revenue Model
Company Description
Lundin Gold Inc. is a Vancouver-based Canadian mining enterprise established in 1986. Its primary focus is on extensive exploration and development assets in Southeast Ecuador, where it controls rights to roughly 64,270 hectares. These holdings in...
How the Company Makes Money
Lundin Gold makes money primarily by producing and selling gold doré (and associated by-product silver) from the Fruta del Norte mine. Revenue is generated based on the volume of payable metal sold and prevailing market prices for gold and silver,...
Lundin Gold Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial performance for 2025 — record production, record quarterly and annual financial metrics, robust cash flow generation ($926M FCF), a healthy balance sheet ($630M cash at year-end), continued dividends and substantial exploration success including FDNS being added to reserves. Lowlights were largely manageable or developmental in nature: cost metrics rose relative to guidance due to elevated realized gold prices (raising royalties/profit sharing), anticipated grade decline requiring higher throughput, potential for higher development/mining costs at FDNS, and some near-term uncertainty on expansion capex and timing. On balance, the highlights materially outweigh the lowlights, with the company positioned to fund growth while returning capital to shareholders.Positive Updates
Record Production and Strong Operational Performance
Fruta del Norte produced ~498,315 ounces of gold in 2025 and sold ~503,000 ounces; mill processed over 1.8 million tonnes for the year with a record average throughput of 5,009 tonnes per day, and Q4 mill throughput averaged 5,271 tpd (a 14% increase vs Q4 2024). Full-year production was inside guidance (490,000–525,000 oz).
Negative Updates
Cost Metrics Above Guidance Driven by Higher Realized Gold Price
Reported cash operating costs and AISC were above 2025 guidance; management attributed this primarily to the guidance being based on a $2,500/oz gold price assumption while average realized gold price was $3,594/oz (an increase of ~ $1,100), which increased royalties and statutory profit sharing. Management quantified an impact of roughly $110/oz on cost metrics (vs the ~$60/oz assumption used in guidance).
Read all updates
Q4-2025 Updates
Positive
Negative
Record Production and Strong Operational Performance
Fruta del Norte produced ~498,315 ounces of gold in 2025 and sold ~503,000 ounces; mill processed over 1.8 million tonnes for the year with a record average throughput of 5,009 tonnes per day, and Q4 mill throughput averaged 5,271 tpd (a 14% increase vs Q4 2024). Full-year production was inside guidance (490,000–525,000 oz).
Read all positive updates
Company Guidance
Management guided that for 2026 they intend to achieve their 2026 production and unit‑cost guidance and to average ~5,500 tonnes per day (with a mine‑to‑mill expansion study evaluating options to increase processing beyond 5,500 tpd), will complete a record 133,000‑meter exploration program, will proceed with underground development at FDNS with nonsustaining capital of about $30–35 million in 2026, and plans to make an integrated mine‑to‑mill investment decision in 2026 (with FDNS expected to meaningfully impact production over the next 3–4 years); they reiterated focus on health, safety and environmental performance, commitment to their dividend framework (Q4 dividend of $1.15/share, ~ $278 million payable March 26), and noted that every $100/oz change in the gold price alters cash operating costs and AISC by ~$10/oz.Lundin Gold Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
95
Very Positive
Cash Flow
90
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.00B | 1.81B | 1.19B | 902.52M | 815.67M | 733.33M |
| Gross Profit | 1.41B | 1.19B | 840.37M | 571.78M | 500.39M | 463.24M |
| EBITDA | 1.44B | 1.28B | 766.60M | 527.06M | 465.57M | 428.71M |
| Net Income | 912.99M | 806.02M | 426.05M | 179.46M | 73.56M | 221.43M |
Balance Sheet | ||||||
| Total Assets | 1.83B | 1.78B | 1.53B | 1.47B | 1.67B | 1.69B |
| Cash, Cash Equivalents and Short-Term Investments | 703.60M | 629.03M | 349.20M | 268.02M | 363.40M | 262.61M |
| Total Debt | 0.00 | 0.00 | 0.00 | 305.65M | 667.97M | 739.98M |
| Total Liabilities | 467.77M | 422.26M | 311.18M | 512.40M | 816.78M | 870.64M |
| Stockholders Equity | 1.36B | 1.36B | 1.22B | 955.81M | 852.08M | 814.48M |
Cash Flow | ||||||
| Free Cash Flow | 1.12B | 964.59M | 579.99M | 471.16M | 372.13M | 360.76M |
| Operating Cash Flow | 1.20B | 1.05B | 662.39M | 519.39M | 426.14M | 417.75M |
| Investing Cash Flow | -95.28M | -98.93M | -93.50M | -53.48M | -60.07M | -63.11M |
| Financing Cash Flow | -853.76M | -667.28M | -487.49M | -561.23M | -264.10M | -171.43M |
Lundin Gold Technical Analysis
Negative
117.43
Price Trends
87.40
Negative
94.10
Negative
94.69
Negative
Market Momentum
-1.67
Negative
48.02
Neutral
70.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LUG, the sentiment is Negative. The current price of 117.43 is above the 20-day moving average (MA) of 79.83, above the 50-day MA of 87.40, and above the 200-day MA of 94.69, indicating a neutral trend. The MACD of -1.67 indicates Negative momentum. The RSI at 48.02 is Neutral, neither overbought nor oversold. The STOCH value of 70.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:LUG.
Lundin Gold Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$13.81B | 9.81 | 26.05% | ― | 87.39% | 21.18% | |
74 Outperform | C$19.46B | 15.07 | 68.29% | 2.47% | 49.56% | 67.17% | |
74 Outperform | C$18.66B | 15.52 | 27.75% | 2.31% | 38.40% | ― | |
73 Outperform | C$9.98B | 14.02 | 22.46% | 0.51% | 75.48% | 95.86% | |
72 Outperform | C$21.59B | 14.36 | 25.24% | 0.25% | 46.83% | 306.46% | |
72 Outperform | C$11.68B | 13.57 | 10.73% | ― | 65.86% | 10.18% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.