Lundin boosts gold forecast after earnings plunge during Ecuador's national strike

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Lundin Gold Inc. reported disappointing second\u002Dquarter earnings, despite strong production. Read more

The company reported adjusted net earnings of US$13.4 million, or 6 cents per share, in the quarter that ended June 30, compared with US$74.8 million, or 32 cents per share, a year earlier. Its all-in sustaining cost — a measure of cost of production — increased to US$864 per ounce of gold sold, compared with US$720 per ounce in the same quarter last year.

Gold shipments and sales of about 16,000 ounces that were planned for June were hampered by the blockades on some of Ecuador’s national highways and were delayed into July, resulting in some revenue being pushed to the third quarter, the company said.Article content The protests took place at a time when Ecuador’s new government, which took power of the South American nation a little over a year ago, aims to boost its mining industry and put about half-a dozen projects in construction by 2025.

“We will know through September as to how things are going,” Lundin Gold chief executive Ron Hochstein said on a conference call on Aug. 10.

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