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Lundin Gold extinguishes bank debt

9th November 2023

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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On the back of robust free cash flow generation during the third quarter, Toronto-listed Lundin Gold on Wednesday announced that it had elected to fully repay its remaining bank debt.

The company, which generated free cash flow of $80.9-million, or $0.34 a share, during the September quarter, repaid the remaining $70.5-million plus accrued interest under its senior debt facility earlier this month.

The original maturity date was June 2026.

Upon completion of this repayment, Lundin would have extinguished two of its project finance facilities, being the gold prepay credit facility and the senior facility, which had an original combined principal amount of $500-million, after only three years of operations.

“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,” said president and CEO Ron Hochstein.

He also reported that Lundin was on track to achieve its revised all-in sustaining cost (AISC) guidance of $820/oz to $870/oz and that it would be near the upper-end of its revised production guidance of 450 000 oz to 485 000 oz.

During the third quarter, Lundin produced 112 212 oz of gold at an AISC of $907/oz.

Edited by Creamer Media Reporter

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