Robust free cash flow generation underpins decision to extinguish bank debt
Lundin Gold Inc. (TSX: LUG; Nasdaq Stockholm: LUG; OTCQX: LUGDF) ("Lundin Gold" or the "Company") today reports results for the third quarter of 2023, highlighted by Q3 production of 112,212 ounces (“oz”) of gold and sales of 112,711 oz, at a cash operating cost1 of $704 per oz sold and all-in sustaining cost (“AISC”)1 of $907 per oz sold. All amounts are in U.S. dollars unless otherwise indicated.
Lundin Gold’s track record of generating strong free cash flow1
continued during the third quarter of 2023 with
free cash flow1 of $80.9 million or $0.34 per share achieved resulting in a cash balance of $302 million at September 30, 2023. Given this robust cash balance at quarter end and forecasted cash requirements, the
Company has elected to fully repay the remaining principal balance of $70.5 million plus accrued interest under its senior debt facility (the “Senior Facility”) on November 14, 2023, well in advance of the original maturity date
of June 2026. Upon completion of this repayment, the Company will have extinguished two of its project finance facilities, being the gold prepay credit facility and Senior Facility, which had an original combined principal
amount of $500 million, after only three years of operations.
Ron Hochstein, President and CEO commented, “After another strong quarter of free cash flow generation, we are advancing our debt reduction strategy with the repayment in full of the remaining balance of our senior debt
facility. We are firmly on track to meet our revised AISC1 guidance of $820 to $870 per oz sold and expect to be near the upper end of our revised production guidance of 450,000 to 485,000 oz. I am also very excited about the
continued expansion of our near-mine exploration program, which is yielding very positive results going into 2024.”

1 Certain additional disclosures for these specified financial measures have been incorporated by reference and can be found on pages
14 to 17 of the Company's MD&A for the three and nine months ended September 30, 2023 available on SEDAR+.

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