With its first commercial production around the corner, Lundin Gold is looking at options to grow – including acquisitions.
The company’s only asset, Fruta del Norte in Ecuador, will reach commercial production in the second quarter, CEO Ron Hochstein said Thursday in an interview at Bloomberg’s Toronto office. The low-cost mine is expected to produce more than 300 000 oz of gold this year, and average 325 000 oz over its expected 14-year mine life.
The company’s largest shareholder, Melbourne-based Newcrest Mining, is supportive of a potential acquisition, as is the Lundin family, also a major owner, Hochstein said. “The challenge for us is going to be finding something that’s accretive for our shareholders.”