Q2/26 Production Beats Expectations, Well-Positioned to Meet Annual Guidance

研报英文原文证据摘录

Q2/26 Production Beats Expectations, Well-Positioned to Meet Annual Guidance

affirmed 2026 annual guidance range of 475-525koz, as H1/26 production represents Gold Prod (koz) 498 502 503 494

48% of the mid-point of full-year guidance. As per previous disclosure, production is Consensus Estimates

anticipated to increase in H2/26 as mill head grade is expected to improve due to mine 2025A 2026E 2027E 2028E

sequencing.

EPS $0.96 $0.84 $0.77

Financial Impact. Management noted that gold sales were ~110koz at an average price of

Valuation

$4,359/oz. This compared to our estimates of ~118koz at an average price of $4,344/oz and

2025A 2026E 2027E 2028Ehas resulted in our EPS decreasing to $0.86/sh from $0.94/sh. We do, however, believe

this provides upside to future earnings as LUG has built ~13koz in inventory through H1/26. P/E 35.7x 17.4x 15.3x 19.8x

Upcoming Catalysts. Looking ahead, investors will probably remain focused on the P/CFPS 32.5x 13.7x 11.6x 14.5x

investment decision to integrate both the FDNS deposit and mine to mill expansion study, EV/EBITDA 11.5x 5.3x 4.3x 5.3x

which will be made later this year. We also believe investors will remain focused on QTR. EPS Q1 Q2 Q3 Q4

exploration results, as the new porphyry targets may provide upside to investors due to 2025A $0.64 $0.82 $0.86 $0.97

the diversification of revenue with the addition of copper, but these porphyry deposits

2026E $1.13a $0.86 $1.25 $1.18will take many years to come into production.

2027E $1.26 $1.28 $1.26 $1.23

LUG will release its Q2/26 results on August 6, 2026, after market close in North America

with a conference call at 11:00 a.m. EST the following day. 2028E $0.98 $1.01 $0.92 $0.97

Key Changes

Estimates Q2 / 26E 2026E

Revenue $487 $2,341

Previous $519 $2,342 Our Thesis