Lundin Gold Eyes Fruta del Norte Expansion to Sustain 500,000-Ounce Output - TradingView

AI desk brief

Lundin Gold plans to expand Fruta del Norte’s processing capacity to 6,500-7,000 tonnes per day from about 5,500 tpd, aiming to sustain roughly 500,000 ounces of annual gold output as the mine matures. The company said reserves have grown from just under 5 million ounces at start-up to about 6 million ounces after producing more than 3 million ounces, with expansion work expected through 2027 and possible new contributions from Fruta del Norte East/South in 2028.

The update is modestly supply-negative for gold over the medium term because it points to a longer production runway at one of Ecuador’s highest-grade, lowest-cost mines. Lundin also highlighted an AISC around $1,100/oz, $100 million of annual exploration spending, and cheap hydro-based power under a new PPA, while noting it is not forecasting gold prices and is focused on protecting margins through commodity cycles.