Lundin Gold - Corporate Presentation - April 2025
- 1. BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING www.lundingold.com TSX, Nasdaq Stockholm: LUG OTCQX: LUGDF A CASH FLOW AND GROWTH STORY April 2025
- 2. All statements, other than statements of historical fact, made and information contained in this presentation and responses to questions constitute “forward-looking information” or “forward- looking statements” as those terms are defined under Canadian securities laws (“forward-looking statements”). Forward-looking statements may be identified by terminology such “believes”, “anticipates”, “expects”, “is expected”, “scheduled”, “estimates”, “pending”, “intends”, “plans”, “forecasts”, “targets”, or “hopes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “will”, “should” “might”, “will be taken”, or “occur” and similar expressions). By their nature, forward-looking statements involve assumptions, inherent risks and uncertainties, many of which are difficult to predict, and are usually beyond the control of management, that could cause actual results to be materially different from those expressed by these forward-looking. Lundin Gold believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, but no assurance can be given that these expectations will prove to be correct. This presentation contains forward-looking statements pertaining to: Company’s2025 production outlook, including estimates of gold production, grades recoveries and AISC; operating plans; expected sales receipts and cash flow forecasts, its estimated capital costs and sustaining capital; the Company’s efforts to mitigate the impacts of the energy crisis in Ecuador on its operations; timing of completion of the process plant expansion project and the anticipated benefits; the Company’s declaration and payment of dividends pursuant to its dividend policy; the timing and the success of its drill program at Fruta del Norte and its other exploration activities; and estimates of Mineral Resources and Reserves at Fruta del Norte. There can be no assurance that such statements will prove to be accurate, as Lundin Gold's actual results and future events could differ materially from those anticipated in this forward-looking information as a result of the factors discussed in the "Risk Factors" section in Lundin Gold’s Management’s Discussion and Analysis dated February 20, 2025, which is available at www.lundingold.com or on SEDAR+. Forward-looking information should not be unduly relied upon. Except as noted, the technical information contained in this presentation relating to the Fruta Del Norte Project is based on the Technical Report prepared for the Company entitled “Amended NI 43-101 Technical Report, Fruta del Norte Mine, Ecuador” dated March 29, 2023 with an effective date of December 31, 2022, available under the Company’s profile at www.sedarplus.ca. Information of a scientific and technical nature in this presentation was reviewed and approved by Terry Smith, P.Eng., Lundin Gold’s Chief Operating Officer, who is a Qualified Persons within the meaning of National Instrument 43- 101 - Standards of Disclosure for Mineral Projects (“NI 43-101”). The disclosure of exploration information contained in this presentation was prepared by Andre Oliveira P.Geo, Lundin Gold’s V.P. Exploration, who is a Qualified Person in accordance with the requirements of NI 43-101. Unless otherwise indicated, all dollar values herein are in US dollars. Important Information for US Investors This presentation may use the terms “measured", “indicated“, “inferred" and “historical” mineral resources. U.S. investors are advised that, while such terms are recognized and required by Canadian regulations, the Securities and Exchange Commission does not recognize them. “Inferred mineral resources" and “historical estimates” have a great amount of uncertainty as to their existence and great uncertainty as to their economic feasibility. It cannot be assumed that all or any part of an inferred mineral resource or a historical estimate will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. Further, historical estimates are not recognized under Canada’s NI 43-101. U.S. investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted to mineral reserves. This presentation is not an offer of securities for sale in the United States or in any other jurisdiction. The Company’s securities have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States absent registration or an application exemption from registration CAUTION REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS Slide 2 TSX: LUG / OMX: LUG / OTCQX: LUGDF
- 3. FRUTA DEL NORTE THE FIRST LARGE-SCALE GOLD MINE IN ECUADOR Location: Zamora Chinchipe Province, Southeast Ecuador Ownership: 100% Stage: Producing Mine Type: Underground Life of Mine: ~12 Years Current Reserves: 5.54 M Oz Au Avg Grade 7.81 g/t1 TSX: LUG / OMX: LUG / OTCQX: LUGDF Exceeded 2024 production guidance and achieved record annual production Current M&I Resources: 7.06 M Oz Au Avg Grade 7.17 g/t1 135,241 oz Gold produced 11.3 g/t Average Head Grade 87.1% Average recovery 4,642 tpd Average Mill Throughput 502,029 oz Gold produced 10.5 g/t Average Head Grade 87.8% Average recovery 4,620 tpd Average Mill Throughput Q4 FY2024 1. Please refer to pages 15 to 17 in the Company's MD&A for the twelve months ended December 31, 2024 for an explanation of non-IFRS measures used Current Inferred Resources: 2.36 M Oz Au Avg Grade 5.27 g/t1 Slide 3
- 4. FULL YEAR 2024 HIGHLIGHTS Slide 4 Leading to robust financials • Record adjusted free cash flow1 of $540m or $2.26 per share with cash balance of $349 million • Debt free - Purchased stream loan credit facility and offtake commitment in Q2 2024 • Increased quarterly dividend to $0.30 per share - Payable on March 26, 2025 TSX: LUG / OMX: LUG / OTCQX: LUGDF Setting the stage for growth • Plant expansion project complete • 2025 production and cost guidance – On track • Increased Mineral Reserves and Resources to highest level – More than replaced 2024 mining depletion, increased M&I and added 1.7 Moz’s of Inferred Resources through drilling • Exploration potential - Completed 80,057 metres of drilling in 2024 and 2025 program to be a similar size, deliver on Bonza Sur initial Mineral Resource by mid year 2025 Strong operating results • Exceeded production guidance and achieved record annual production – 502,029 oz • Achieved unit cost guidance – Cash operating costs1 and AISC1 for 2024 were $712 and $875 per oz of gold sold, respectively • Safety – Recorded ten Lost Time Incidents and thirteen Medical Aid Incidents. Total Recordable Incident Rate 0.66 per 200,000 hours worked 1. Please refer to pages 15 to 17 in the Company's MD&A for the twelve months ended December 31, 2024 for an explanation of non-IFRS measures used
- 5. 0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 0 10 20 30 40 50 60 70 80 90 100 All-In Sustaining Cost (US$/oz) Percentage (%) of Global Production Slide 5 Cash operating costs $709 $712 Corporate social responsibility $4 $4 Treatment and refining charges $89 $84 Accretion of restoration prevision $2 $2 Sustaining capital $106 $103 Silver by product credit ($30) ($30) AISC per oz sold $879 $875 2025 AISC Guidance $935-995 AISC1 Q4 2024 FY 2024 TSX: LUG / OMX: LUG / OTCQX: LUGDF ONE OF THE LOWEST COST GOLD MINES IN THE WORLD Source: SNL Metals and Mining, public company filings estimated for the year 2025. 1. Please refer to pages 15 to 17 in the Company's MD&A for the twelve months ended December 31, 2024 for an explanation of non-IFRS measures used
- 6. Slide 6 GENERATING SIGNIFICANT FREE CASH FLOW TSX: LUG / OMX: LUG / OTCQX: LUGDF Historic Free Cash Flow1 Generation (US$M) 1. Free cash flow is reported by Lundin Gold as cash flow provided by operating activities, less cash used for investing activities and interest and finance charge paid. Please refer to pages 15 to 17 in the Company's MD&A for the twelve months ended December 31, 2024 for an explanation of non-IFRS measures used. -$47M $39M $147M $122M $113M $156M $120M $143M $194M H1'20 H2'20 H1'21 H2'21 H1'22 H2'22 H1'23 H2'23 Q1'24 $-47M $39M $147M $122M $113M $156M $120M $143M $194M $345M H1'20 H2'20 H1'21 H2'21 H1'22 H2'22 H1'23 H2'23 H1'24 H2'24
- 7. 4.4% 2.0% 2.2% 1.8% Lundin Gold Average All Large Producers (Production: +1000 Koz) Medium Producers (Production: 200-1000Koz) TRIPLED THE DIVIDEND IN UNDER A YEAR Slide 7 Source: Factset, share price as at March 21, 2025. SIGNIFICANT CASH LEFT AFTER INCREASED DIVIDEND PAYMENT TO: Carry out expanded exploration programs Fund future capital projects and expansion opportunities Pursue growth opportunities Increased Dividend (paid quarterly) $1.20/sh = ~US$300M annually Gold Mining Industry Average Dividend Yields %1 TSX: LUG / OMX: LUG / OTCQX: LUGDF 3.9% 1.8% 2.2% 1.5% Lundin Gold Average All Large Producers (Production: +1000 Koz) Medium Producers (Production: 200-1000Koz)
- 8. BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING DELIVERING FUTURE VALUE AT LUNDIN GOLD Slide 8
- 9. 3,499 3,878 4,272 4,533 4,620 5,000 5,500 85.9% 88.6% 89.5% 88.4% 87.8% 90.0% 81% 83% 85% 87% 89% 91% 93% 95% 0 1,000 2,000 3,000 4,000 5,000 6,000 2020 2021 2022 2023 2024 2025E 2026E Slide 9 EXPANSION PROJECT TO INCREASE THROUGHPUT AND IMPROVE RECOVERIES TSX: LUG / OMX: LUG / OTCQX: LUGDF Average Annual Plant Throughput (tpd) and Recovery (%) FOCUS OF EXPANSION to 5,000 tpd: Tailings & Water Reclaim Ultrafine Flotation 3rd Concentrate Filter Plant Automation
- 10. 3 YEAR GUIDANCE ANTICIPATED INCREASE TO THROUGHPUT IN 2026 Slide 10 1. Please refer to pages 15 to 17 in the Company's MD&A for the twelve months ended December 31, 2024 for an explanation of non-IFRS measures used 2. Gold/silver price per oz assumptions are $2,500/$31.00, respectively 2025 2026 2027 5,000 Milled Throughput (tpd) 75 - 85 Sustaining Capital ($ million) 730 - 790 Cash Cost ($/oz sold)1 5,500 Milled Throughput (tpd) 75 - 90 Sustaining Capital ($ million) 750 - 810 Cash Cost ($/oz sold)1 5,500 Milled Throughput (tpd) 70 - 85 Sustaining Capital ($ million) 750 - 810 Cash Cost ($/oz sold)1 TSX: LUG / OMX: LUG / OTCQX: LUGDF 935 - 995 AISC ($/oz sold)1,2 950 – 1,020 AISC ($/oz sold)1,2 925 - 995 AISC ($/oz sold)1,2 475,000 - 525,000 Gold Production (oz) 475,000 - 525,000 Gold Production (oz) 475,000 - 525,000 Gold Production (oz)
- 11. LARGEST RESERVE AND RESOURCE STATEMENT EVER PUBLISHED AT FDN Slide 11 Based on contained gold ounces the 2024 estimates are the highest ever published at FDN for Mineral Reserves and Resources. › Proven and Probable Mineral Reserves increased to 5.54 Moz of contained gold from 22.06 metric tonnes (“Mt”) with an average grade of 7.81 g/t, after 2024 mining depletion of 0.54 Moz. › Measured and Indicated Mineral Resources increased to 7.06 Moz of contained gold from 30.62 Mt with an average grade of 7.17 g/t. › Inferred Resources increased by 59% to 2.36 Moz of contained gold consisting of 13.95 Mt with an average grade of 5.27 grams per tonne (“g/t”) net of conversion of 0.65 Moz to Measured and Indicated. TSX: LUG / OMX: LUG / OTCQX: LUGDF 2.9 Moz 2.8 Moz 4.1 Moz 4.3 Moz 1.5 Moz 2.4 Moz 2023 2024 Measured Resources Indicated Resources Inferred Resources
- 12. 2016 Technical Report Mining Depletion Additions 2024 Mineral Reserves Slide 12 TRACK RECORD OF MINERAL RESERVE REPLACEMENT 1. Please see the Company’s press release dated February 18, 2025 titled “Lundin Gold achieves a new high of contained gold ounces in Mineral Reserves and Mineral Resources at Fruta Del Norte” for information regarding the assumptions, parameters and risks associated with the Mineral Reserve estimate TSX: LUG / OMX: LUG / OTCQX: LUGDF 4.82 Moz 5.54 Moz 3.12 Moz -2.40 Moz
- 13. BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING EXPLORATION IS THE FUTURE Slide 13
- 14. A SIMPLE APPROACH TO EXPLORATION Slide 14 TSX: LUG / OMX: LUG / OTCQX: LUGDF CONVERSION DRILLING › Replace depleted ounces and grow reserve base through conversion of inferred resources NEAR-MINE PROGRAM › Grow inferred resources through extension of known deposit and identification of new targets including FDNS, FDN East, and Bonza Sur REGIONAL PROGRAM › Develop long-term gold inventory through exploration on untested sectors targeting new discoveries – looking for large epithermal systems like Fruta del Norte › 2025 is first year of three year program to identify new targets for drilling FDN NEAR MINE FDN FDNS BONZA SUR REGIONAL Known deposits 40km Concessions FDN EAST TRANCALOMA
- 15. 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 Drilled Metres Near-Mine Regional Exploration Conversion REGIONAL EXPLORATION NEAR-MINE EXPLORATION 2024 WAS THE LARGEST DRILL PROGRAM EVER CONDUCTED ON LAND PACKAGE THAT HOSTS FDN AND 2025 TO BE LARGER 65,000 metres $32 million budget Slide 15 Geophysical surveys and geochemical sampling program $8 million budget TSX: LUG / OMX: LUG / OTCQX: LUGDF 15,000 metres Included in sustaining capital CONVERSION DRILLING 2025 Program FDN Discovery
- 16. NEAR-MINE EXPLORATION SURFACE & UNDERGROUND Slide 16 Focused along extensions of the East Fault SURFACE UNDERGROUND Bonza Sur: drilling continues to expand new epithermal system along the north extension FDN East: drilling continues in this recently discovered buried epithermal mineralized system Other: drilling advanced at FDN North and Trancaloma Focused on the southern limit of the FDN deposit and tested the occurrence of a new high grade vein system FDNS: significant results highlighted by some of the highest-grade intercepts achieved in the sector to date › UGE-S-24-212 (173.98 g/t Au over 8.45 m) › UGE-S-24-213 (77.31 g/t Au over 10.90 m) ¯ Bonza Sur FDN FDNS FDN East Trancaloma NEAR MINE DRILLING PROGRAM M&I Resources Inferred Resources Bonza Sur Modelling Exploration Target 3,600 meters FDN North FDN PLANT TSX: LUG / OMX: LUG / OTCQX: LUGDF
- 17. NEAR-MINE PROGRAM Slide 17 FDN EXTENSION Lundin Gold Corporate Presentation | May 2023 TSX: LUG / OMX: LUG / OTCQX: LUGDF Additional area at FDN could provide additional resources in the short term Upper Contact › Continuity of the south strike along the upper contact FDN Depth › Continuity of the south strike at depth FDN-C23-063 16.9m @ 10.86 g/t Au (112.6m) Incl. 10.0m @ 16.29 g/t Au (114.3m) UGE-DD-24-089 19.9m @ 8.62 g/t Au (97.7m) Incl. 2.40m @ 64.61 g/t Au (115.2m) 11.80m @ 12.04 g/t Au (264.90m) Incl. 5.90m @ 21.40 g/t Au (266.80m) FDN-C24-107-Q2 2024 32.85m @ 18.23 g/t Au (0.00m) Incl. 7.80m @ 67.82 g/t Au (0.00m) FDN-C24-105-Q2 2024 25.90m @ 14.89 g/t Au (59.10m) Incl. 10.50m @ 29.63 g/t Au (60.20m) FDN M&I Pre Conversion FDN M&I Resources 2024 FDNS Inferred Resources 2025 Exploration Drilling
- 18. UGE-S-24-171 7.40m @ 10.57 g/t Au (0.80m) 6.50m @ 8.81 g/t Au (10.20m) 10.00m @ 27.54 g/t Au (21.30m) 4.10m @ 15.90 g/t Au (59.6m) UGE-S-24-184 3.90m @ 8.85 g/t Au (10.8m) MINE PORTAL UGE-S-24-213 10.90m @ 77.30 g/t Au (94.80m) FDN M&I Res FDNS Inferred Res Recent Results UGE-S-24-212 8.45m @ 173.98 g/t Au (77.6m) UGE-S-24-160 4.80m @ 12.45 g/t Au (203.05m) UGE-S-24-185 3.80m @ 17.61 g/t Au (49.70m) 7.80m @ 49.86 g/t Au (59.00m) 11.40m @ 7.98 g/t Au (73.05m) FDNS ¯ Exploration Target UGE-S-24-176 4.25m @ 6.81 g/t Au (95.25m) 4.40m @ 12.27 g/t Au (144.8m) UGE-S-24-199 4.70m @ 14.16 g/t Au (58.5m) UGE-S-24-164 3.50m @ 6.62 g/t Au (118.80m) 2023-2024 Results FDN East › New buried epithermal mineralized system located only 100 metres east of FDN › Similar characteristics and host rocks to FDN and FDNS FDNS › A total of 37 drill holes completed to date › Recent results show FDNS deposit remains open along the south direction and north direction FDN SOUTH (FDNS) AND FDN EAST NEAR-MINE PROGRAM FDNS 2024 Inferred Mineral Resource1 Slide 18 TSX: LUG / OMX: LUG / OTCQX: LUGDF Cut-off Grade g/t Tonnage kt Grade (g/t Au) Contained Metal (k oz Au) 3.0 12,347 5.25 2,085 4.0 8,498 6.07 1,659 4.5 6,748 6.54 1,419 5.0 5,113 7.11 1,169 5.5 3,636 7.86 919 6.0 2,656 8.64 737 ¯ FDNE-2024-200 53.00m @ 3.15 g/t Au (277.8m) Incl. 8.40m @ 7.13 g/t Au (277.8m) Incl. 4.60m @ 9.40 g/t Au (303.1m) UGE-E-24-210 6.25m @ 10.16 g/t Au (238.85m) Incl. 3.25m @ 14.84 g/t Au (238.85m) UGE-E-23-045 3.80m @ 15.11 g/t Au (242.8m) UGE-E-24-094 5.00m @ 76.95 g/t Au (156.1m) Incl. 1.1m @ 349 g/t Au (158.2m) UGE-E-24-088 36.10m @ 0.72 g/t Au (344.4m) Incl. 4.80m @ 2.64 g/t Au (367.20m) FDNE 1. Effective date December 31, 2024. FDNS Inferred Mineral Resource Statement used the cut-off grade of 3.0 g/t. All other cut-off grades to highlight sensitivity are provided for information only.
- 19. Slide 19 300m Depth A ’ BONZA SUR LONGITUDINAL SECTION – 2,650 METERS N S 500 METERS > 100 gm 50 - 100 gm 25 - 50 gm 10 - 25 gm Grams versus Metres (gm) Exploration Extension Zone BLP-2024-189 BLP-2024-182 Pending Results BLP-2022-016 (Discovery Hole) 243.0m @ 1.55 g/t Au (42.0m) Incl. 39.0m @ 8.27 g/t Au (58.0m) with. 1.0m @ 277 g/t Au (70.0m) AMN-2024-168 70.95m @ 0.66 g/t Au (167.9m) Incl. 12.30m @ 2.88 g/t Au (167.9m) with 3.10m @ 6.37 g/t Au (175.9m) HOR-2024-147 86.15m @ 0.83 g/t Au (55.75m) Incl. 16.80m @ 2.02 g/t Au (61.4m) with 1.00m @ 25.3 g/t Au (70.0m) BLP-2024-128 102.60m @ 1.96 g/t Au (57.3m) Incl. 41.40m @ 3.84 g/t Au (111.3m) with 11.60m @ 7.24 g/t Au (133m) BLP-2024-161-D4 99.45m @ 1.07 g/t Au (500.65m) Incl. 39.25m @ 2.54 g/t Au (500.65m) with 2.35m @ 4.29 g/t Au (502.15m) with 7.10m @ 12.26 g/t Au (530.8m) BLP-2023-022 129.1m @ 1.73 g/t Au (1.0m) Incl. 38.4m @ 4.47 g/t Au (96.7m) with 3.5m @ 46.98 g/t Au (126.6m) BLP-2024-107 113.30m @ 2.01 g/t Au (6.5m) Incl. 54.80m @ 3.1 g/t Au (6.5m) with 9.00m @ 8.59 g/t Au (6.5m) BLP-2024-101 123.1m @ 4.34 g/t Au (9.0m) Incl. 79.5m @ 6.43 g/t Au (9.0m) with 14.5m @ 32.31 g/t Au (74.0m) BLP-2024-162 115.60m @ 1.43 g/t Au (47.4m) Incl.58.10m @ 2.43 g/t Au (92.9m) With 20.50m @ 4.58 g/t Au (105.05m) AMN-2024-156 100.30m @ 2.35 g/t Au (333.2m) Incl. 53.20m @ 3.30 g/t Au (353.8m) with 4.30m @ 5.26 g/t Au (359.75m BLP-2024-173 133.2m @ 1.22 g/t Au (31.9m) Incl. 49.8m @ 2.54 g/t Au (113.4m) With. 2.90m @ 17.29 g/t Au (132.0m) Drilling Intercepts Pending Results 2024 Q3-Q4 Drilling Intercepts 2023-2024 Drilling Intercepts BONZA SUR Q3 EXTENSION NEAR-MINE PROGRAM BONZA SUR - OPEN TO SOUTH 2025 Priority area TSX: LUG / OMX: LUG / OTCQX: LUGDF
- 20. TRANCALOMA EARLY STAGE TARGET COPPER GOLD PORPHYRY Slide 20 TSX: LUG / OMX: LUG / OTCQX: LUGDF › New Cu-Au mineralization less than one km east from Bonza Sur. › Four drill holes with copper and gold, potentially related to an outer hydrothermal alteration halo of a porphyry system. › Pending drill hole - one km east of the initial drill holes intercepted a long hydrothermal alteration zone with disseminated copper bearing sulfides plus quartz-chalcopyrite veins
- 21. 59% 1% 27% 14% CORPORATE STRUCTURE Slide 21 (DATA AS AT FEBRUARY 20, 2025) SHAREHOLDERS Strategic Retail Institutional Management ANALYST COVERAGE (CAD unless otherwise stated) CAPITAL MARKETS DATA Symbol TSX: LUG / OMX: LUG / OTCQX: LUGDF Share price (CAD/sh) $43.60 52 Week Trading Range (CAD/sh) $18.08 – 45.82 Shares Outstanding 240.4 M Market Capitalization (CAD) $10,483M TSX: LUG / OMX: LUG / OTCQX: LUGDF BMO Capital Markets Hold, $38.00 Canaccord Genuity Hold, $37.50 CIBC World Markets Hold, $44.00 Cormark Securities Hold, $42.00 Desjardins Securities Buy, $42.00 Jefferies Hold, $36.00 National Bank of Canada Outperform, $49.75 Raymond James Hold, $32.00 RBC Hold, $37.00 Pareto Securities Hold, SEK 300 / $40.06 Scotiabank Hold, $32.50 TD Cowen Buy, $46.00 Veritas Sell, $39.00
- 22. STRONGLY POSITIONED TO CREATE SHAREHOLDER VALUE Slide 22 Operational Excellence Cash Flow Growth ESG TSX: LUG / OMX: LUG / OTCQX: LUGDF Focus on continued optimization of operations Repaid in full all project finance debt / debt free Throughput to increase to 5,000 tpd for 2025 and 5,500 tpd for 2026 Quarterly dividend of $0.30 per share (US$300m annually) 2025 exploration program minimum of 80k metres Key to our continued success 3.12 Moz added to Reserves since operations at FDN began A leader in responsible mining (2024 #1 ESG Mining Journal)
- 23. BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING www.lundingold.com www.lundingold.com TSX, Nasdaq Stockholm: LUG / OTCQX: LUGDF @LundinGold / LundinGoldEC @LundinGold / LundinGoldEC LundinGold LundinGold Lundin Gold Ecuador Lundin Gold Ecuador LundinGold LundinGold Slide 23 Contact information: Brendan Creaney VP Corporate Development and Investor Relations [email protected] +1 604-376-4595
- 24. BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING APPENDIX Slide 24
- 25. 2024 MEASURED AND INDICATED RESOURCES JUST BEYOND THE RESERVE BOUNDARY Slide 25 TSX: LUG / OMX: LUG / OTCQX: LUGDF › The 2024 conversion drilling campaign was successful at reclassifying Inferred Resources to Indicated in areas immediately beyond the current Reserve boundary › The new areas of Indicated Resources include extensions to the north, at depth and to the south of the FDN deposit
- 26. 2024 MINERAL RESERVES MORE THAN OFFSET DEPLETION Slide 26 TSX: LUG / OMX: LUG / OTCQX: LUGDF › Proven and Probable Mineral Reserves increased to 5.54 Moz of contained gold consisting of 22.06 Mt with an average grade of 7.81 g/t after mining depletion of 0.54 Moz › The addition of 2.03 Mt was achieved at a grade of 8.81 g/t which is higher than the average 2023 Mineral Reserve grade of 7.89 g/t › 2024 mining depletion of 1.67 Mt at 10.01 g/t 21.70 Mt 22.06 Mt 2.03 Mt 1.67 Mt 7.89 g/t 8.81 g/t 10.01 g/t 7.81 g/t YE2023 Additions 2024 Mining Depletion YE2024 Mineral Reserves 5.54 Moz 5.50 Moz
- 27. 2024 INFERRED RESOURCES FDNS A KEY GROWTH DRIVER Slide 27 TSX: LUG / OMX: LUG / OTCQX: LUGDF › FDNS contributed 2.09 Moz to the Inferred Resource from 12.35 Mt with an average grade of 5.25 g/t › Majority of FDNS showing grades above 7 g/t › FDNS Inferred Resource will be a focus of the 2025 conversion drilling program Cut-off Grade g/t Tonnage kt Grade (g/t Au) Contained Metal (k oz Au) 3.0 12,347 5.25 2,085 4.0 8,498 6.07 1,659 4.5 6,748 6.54 1,419 5.0 5,113 7.11 1,169 5.5 3,636 7.86 919 6.0 2,656 8.64 737 725 2,085 756 648 1,476 134 250 277 188 YE2023 Conversion to M&I Exploration & Geology Cut-off Grade Engineering YE2024 +59% FDN FDNS 2,362 1,481 -648 1,664 181 -316 47 66
- 28. UNDERGROUND MINE DEVELOPMENT Slide 28 TSX: LUG / OMX: LUG / OTCQX: LUGDF
- 29. Mine ROM Ore Crushing F80 = 15” Grinding Grinding Flotation Thickening Pre-Leach CIL Detox Concentrate filtration P80 = 3.5” P80 = 55 µm Industrial Water To Process To Environment Gravimetric concentration ILR Classification TSF Tailings Dam Electrowinning Refinery Dore Paste Plant Mine Water Treatment Plant SR SR Tailings (O/F) Auxiliary systems Reagent preparation To process To process Process water Concentrate Au-Ag ≥ 90 g/t Bars Au-Ag PH: 10.5-11 100 -150 ppm 18 hours To Electrowinning 4,200 t/d Carbon Au: 75 % Ag: 20 % Gravimetric concentrate Barren solution Rich solution Precipitate (U/F) U/F Paste To process ADR Process water O/F Process water Tailing slurry Concentrate thickening (O/F) Rich solution PROCESS PLANT FLOW DIAGRAM TSX: LUG / OMX: LUG / OTCQX: LUGDF Slide 29
- 30. PLANT EXPANSION PROJECT JAMESON CELL AREA › Rougher feed ‒ Recovering fines ahead of traditional tank cell flotation › Cleaner feed ‒ Recover fines ahead of cleaner circuit after regrind › Rougher tailings ‒ Recover fines not captured in circuit previously Slide 30 TSX: LUG / OMX: LUG / OTCQX: LUGDF Lundin Gold Investor Day 2024 Jameson Cell Additions to Flowsheet
- 31. GEOPHYSICAL SURVEY LAUNCHED AS PART OF EXPLORATION PROGRAM Slide 31 TSX: LUG / OMX: LUG / OTCQX: LUGDF Mineralized Veins zones Untested Au soil anomalies FDN Inferred Resource FDN Indicated Resource LINE 06 LINE 07 FDN East Bonza Sur FDN FDN North Geophysic Survey IP & AMT planned Lines Geophysical Survey recently initiated at Near Mine property (IP & Deep AMT) › Includes most important targets and all untested Au soil anomalies › Structures undercover › Initial results indicated new structures at FDN East for drilling test E FDN FDN EAST EAST FAULT WEST FAULT
- 32. BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING INDUSTRY LEADING RESPONSIBLE MINER Slide 32
- 33. ESG CONSIDERED IN EVERY ASPECT OF OUR ACTIVITIES Slide 33 SUSTAINABILITY PILLARS Climate Change Responsible Resource Governance * EITI: Extractive Industries Transparency Initiative ** ESTMA: Extractive Sector Transparency Measures Act Environmental Stewardship Health & Safety Community Infrastructure Community Well-being Human Rights Lasting Economic Opportunities TSX: LUG / OMX: LUG / OTCQX: LUGDF
- 34. INDUSTRY LEADING GHG EMISSIONS INTENSITY Slide 34 TSX: LUG / OMX: LUG / OTCQX: LUGDF Industry leading GHG emissions (Scopes 1 and 2) intensity of 0.08 tCO2e per ounce of gold produced in 2023 Target: To be carbon neutral by 2030 with respect to Scopes 1 and 2 emissions based on the current life of mine plan Key Areas of Focus Reduce GHGs Offset GHGs Climate Adaptation Climate Leadership 1 2 3 4
- 35. FDN DIRECT AND INDIRECT BENEFITS FOR THE GOVERNMENT FDN Direct and Indirect Benefits for the Central and Local Governments (USD millions) 2 1 1 1 2 2 Other FDN contributions: 2023 • $0.2M Mining Conservation Patents • $1.3M Customs taxes • $1.6M Superintendency of Companies 3 3 3 5 4 4 5 5 $44M - Income Tax* (paid in Dec-2023 and Apr-2024) $44M – Generated Royalties* ($31M paid) $16M – Social Security** $29M – Profit Sharing: attributable to the State 12%* $7.3M – Capital Outflow Tax $26M – Gross VAT on purchases of goods/services* $2.7M - Yantzaza property tax and quarry royalties* 2023 Fiscal Year Government Benefits+ ~$110M Source: Lundin Gold (*) Direct, (**) Indirect, (+) Includes VAT refund Mining and Quarrying (includes oil industry) are the 4th largest taxpayer's industry (out of 23) Metallic mining (gold, copper, etc) is the 9th largest taxpayer’s economic activity (out of 91) 2023 Slide 35 TSX: LUG / OMX: LUG / OTCQX: LUGDF
- 36. FDN Economic Virtuous Cycle 2023 More production in the Ecuadorian economy Slide 36 CHANGING THE LANDSCAPE OF RESPONSIBLE MINING TSX: LUG / OMX: LUG / OTCQX: LUGDF Increased national and local tax revenues Greater multiplier effect (productive linkages) More mining exports More employment opportunities and higher remuneration $201M total procurement in Ecuador ~$110M total contribution $903M in exports 3,100 employees (direct + indirect) and competitive base salary 481,274 gold ounces produced
- 37. 39% in 2015 vs 57% in 2021. As of 2021, 91% of the EAP are employed and mostly linked to agricultural activities, followed by activities in the mining and trade sectors. - 16% of households with Internet access in 2015 vs 100% in 2024. - Access to electricity: 84% in 2010 vs 97% in 2022. - Sewerage: 35% in 2010 vs 49% in 2022. Economically Active Population - EAP Employment Access to University Education Community Infrastructure Source: 2021 census implemented by Lundin Gold, signed agreements, public institutions data, 2010 and 2022 census by National Statistics Institution (INEC). SOCIOECONOMIC IMPACTS LOS ENCUENTROS Average Schooling: 8.2 years in 2015 vs 10.4 years in 2021 (population aged 15 and over). By 2021, the % of the population with higher education (university) more than doubled compared to 2015. It went from 4% to 9%. Community Health - In 2021, an ICU at the Yantzaza Hospital was inaugurated (first of the province). - Access to drinking water: 47% in 2010 vs 72% in 2022. - Garbage collection: 44% in 2010 vs 74% in 2022. Poverty Poverty (UBN) : 84% in 2010 vs 34% in 2021. Slide 37 SOCIOECONOMIC IMPACTS – LOS ENCUENTROS - 51% of all children and youth in Ring 1 are enrolled in extracurricular programs (2024). - 71% of college/trade school graduates are formally employed or providing professional services upon graduation (2024). Community Well-being TSX: LUG / OMX: LUG / OTCQX: LUGDF
- 38. Slide 38 Psychological Identification Confidence threshold Approval Credibility threshold Acceptance Legitimacy threshold Retention/withdrawal Source: Mining Compass Report, Public Opinion and Social License, 2023. Yantzaza (0.72*) Chile (0.68) Guatemala (0.55) Peru (0.53) Bolivia (0.48) LATAM (0.48) Colombia (0.44) Brasil (0.39) Ecuador (0.39) Argentina (0.35) 24vs23 Note: (*) 2023 Value. 0.34 0.56 0.30 0.64 0.32 0.72 0.39 Ecuador Yantzaza 2021 2022 2023 2024 LEVEL OF ACCEPTANCE PERCEPTION SURVEY 2023 Local population acknowledge that socially responsible and environmentally friendly large-scale mining is possible. They recognize that the suspension of large-scale mining operations would have negative impacts on local and national economy. Evolution of the Perception of Mining in Ecuador and Yantzaza TSX: LUG / OMX: LUG / OTCQX: LUGDF
- 39. BUILDING A LEADING GOLD COMPANY THROUGH RESPONSIBLE MINING www.lundingold.com www.lundingold.com TSX, Nasdaq Stockholm: LUG / OTCQX: LUGDF @LundinGold / LundinGoldEC @LundinGold / LundinGoldEC LundinGold LundinGold Lundin Gold Ecuador Lundin Gold Ecuador LundinGold LundinGold Slide 39