LUG: Rising Gold And Silver Price Forecasts Will Drive Stronger Outlook

Lundin Gold's analyst price target has been raised significantly, from about C$85 to roughly C$125, as analysts factor in sharply higher long term gold and silver price assumptions along with stronger expected revenue growth and profitability.

Analyst Commentary

Bullish analysts are highlighting Lundin Gold as a key beneficiary of structurally higher precious metal price assumptions, pointing to meaningful upside to both earnings and net asset value under revised scenarios.

Recent research notes emphasize that the company is well positioned to translate higher gold and silver prices into stronger free cash flow generation, supporting a higher valuation range even after the stock's strong year to date performance.

Bullish analysts also flag that, while part of the recent target price revisions reflects a catch up to the rapid move in gold, the underlying thesis is increasingly supported by resilient operational execution and robust margins at current commodity prices.

Bullish Takeaways

• Multiple bullish analysts have raised their price targets into the low C$100s, signaling growing conviction that Lundin Gold's valuation has room to expand as higher long term gold and silver price decks are incorporated.
• Upward revisions are being driven by sharply increased gold price forecasts, including expectations for prices approaching $4,500 per ounce in 2026 and 2027, which materially enhance projected revenue, cash flow, and net asset value.
• Higher assumed silver prices, with forecasts moving toward $55 per ounce in 2026 and 2027, provide an additional earnings tailwind and support a more robust multi year growth profile.
• Despite notable share price outperformance year to date, bullish analysts view the latest target hikes as evidence that the market is still catching up to Lundin Gold's improved earnings power and long term growth outlook.

What's in the News

• Issued multi year production guidance for Fruta del Norte, targeting 475,000 to 525,000 ounces of gold annually from 2026 through 2028, with higher grades and lower unit costs expected in the second half of 2026 (Corporate guidance).
• Reported strong conversion and near mine exploration drilling results at Fruta del Norte, including some of the highest grade intercepts ever recorded at FDN East. These results support potential resource growth and mine life extension (Product related announcement).
• Announced positive near mine exploration results at the Sandia, Trancaloma, and Castillo targets. The results outline large, open mineral envelopes and confirm new shallow high grade zones that could add future porphyry centers (Product related announcement).
• Delivered higher throughput and improved recoveries in third quarter 2025 operating results, with year to date gold production rising to 378,832 ounces versus 366,788 ounces a year earlier (Operating results).
• Added to the FTSE All World Index, increasing Lundin Gold's visibility and potential ownership by global index tracking investors (Index constituent add).

Valuation Changes

• Consensus Analyst Price Target has risen significantly from CA$85.00 to CA$125.00, which reflects a materially higher assessed fair value for Lundin Gold.
• Discount Rate has increased modestly from 6.51% to 7.14%, which implies a slightly higher required return and risk adjustment in valuation models.
• Revenue Growth assumptions have been revised sharply higher from 6.84% to 19.81%, which indicates a significantly more optimistic outlook for top line expansion.
• Net Profit Margin expectations have increased meaningfully from 47.36% to 60.35%, which suggests improved operating leverage and profitability at higher metal prices.
• Future P/E has fallen moderately from 21.33x to 16.43x, which signals a lower multiple being applied even as earnings expectations rise.