Lundin Gold's Q2 hit by strike but guidance improves...
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Adjusted net earnings fell to US$13.49 million for the period, which is down from $74.8 million a year earlier.
On a per share basis, they dropped to $0.06 from $0.32.
Investor Insight: InterGroup Mining
SPONSOREDintergroup mining
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SPONSOREDbarton gold holdings limited
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SPONSOREDauteco minerals ltd
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National Bank of Canada Financial Markets said that missed their estimate of $0.13 and was below the consensus view of $0.17.
Lundin Gold said: "While production was not affected by a national strike in Ecuador, which ended on June 30th, some gold shipments and sales, estimated at approximately 16,000oz, planned for June were impeded by blockades on some of Ecuador's major highways and delayed into July".
Some revenues will be deferred into Q3 as a result, it said.
Meanwhile, a strong operating performance has seen the company increase its 2022 production guidance from 405,000-445,000oz to between 430,000-460,000oz and decrease its all-in sustaining costs guidance from $860-$930/oz to $820-$870/oz, it said.
"Fruta del Norte continues to generate significant operating cash flow, which allows us to expand our exploration programmes, pay down our debt aggressively and declare our inaugural semi-annual dividend equivalent to an annual yield of approximately 5.6%," president and CEO Ron Hochstein said.
The Q2 gold production stood at 111,890oz, which was up from 108,799oz a year earlier. And Lundin's ASIC rose from $720/oz to $864/oz.
Lundin Gold released the results after market close on 10 August. The company's share price closed the session that day at C$9.67, having risen 6% day on day.
NBF has a target price for Lundin of C$10.50 (US$8.21).
The company has a market capitalisation of C$2.27 billion.