Lundin Gold outperforms Q2 estimates, retains outperform rating By Investing.com

On Tuesday, BMO Capital maintained its Outperform rating and C$26.00 price target for Lundin Gold (OTC:) Inc. (LUG:CN) (OTC: FTMNF), following the company’s reported gold production of 133 thousand ounces (koz) for the second quarter of 2024. The production figure notably surpassed both the consensus forecast and BMO Capital’s own estimate, which were set at 114 koz and 113 koz respectively.

The higher-than-expected production was attributed to gold grades averaging 11 grams per tonne (g/t), which exceeded BMO Capital’s estimated 9.8 g/t. Additionally, mill throughput and gold recoveries for the quarter matched the firm’s expectations, each hitting 4.7 thousand tonnes per day (ktpd) and 89%, respectively.

BMO Capital’s analysis suggests that Lundin Gold is well-positioned to achieve its projected annual production guidance, which ranges between 450 koz to 500 koz of gold. The firm’s optimistic outlook for the company remains steadfast, with the reiterated C$26.00 price target reflecting confidence in Lundin Gold’s operational performance.

Lundin Gold’s robust quarterly output is a significant achievement, as it not only surpasses industry estimates but also aligns with the company’s targeted production goals. The consistency in mill throughput and gold recovery rates further underscores the company’s operational efficiency and ability to maintain projected performance levels.

The confirmation of Lundin Gold’s Outperform rating and the stable price target by BMO Capital underscores a positive outlook for the company, as it continues to navigate the gold production landscape in 2024.

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