Lundin Gold on track to meet production guidance

Canada’s Lundin Gold, which has the Fruta del Norte underground mine in Ecuador, is on track to meet its 2022 production forecast.

In the first nine months, Lundin Gold produced 355,190oz, putting it firmly on course to end the year within guidance of 430,000-460,000oz, the company said in a statement on its Q3 results. All the production was from Fruta del Norte.

The Vancouver-based company remains focused on further optimization at Fruta del Norte, improving efficiencies and reducing costs, said CEO Ron Hochstein.

Third quarter revenues were US$210mn compared to US$191mn a year earlier, and net income reached US$62.7mn, up from US$56.7mn.

Hochstein said that while quarterly revenue was affected by the drop in the price of gold, the sale of additional ounces produced at the end of the second quarter had a positive impact.

That production was not sold until the third quarter due to blockades on some of Ecuador's main highways during a national strike in June.

Ecuador currently has only two large mines in production, Fruta del Norte and the Mirador copper mine, operated by EcuaCorriente.