Aduna partners with SoftBank Corp. to expand network API access in Japan
The engagement aligns with industry efforts to simplify how developers interact with network functions by building on the foundations of the CAMARA open-source project. Together, Aduna and SoftBank will help enable cross-operator alignment and faster implementation of programmable telco capabilities across markets.
By combining SoftBank's advanced infrastructure and digital expertise with Aduna's unified integration platform, the two companies aim to lower barriers for innovation and make it easier for businesses to embed connectivity intelligence into their applications. This partnership further expands Aduna's reach in Asia and reinforces the importance of interoperable, carrier-grade APIs as building blocks for the future of enterprise services, fintech, mobility, and beyond.
About SoftBank Corp.
Guided by the SoftBank Group's corporate philosophy, "Information Revolution – Happiness for everyone," SoftBank Corp. (TOKYO: 9434) operates telecommunications and IT businesses in Japan and globally. Building on its strong business foundation, SoftBank Corp. is expanding into non-telecom fields in line with its "Beyond Carrier" growth strategy while further growing its telecom business by harnessing the power of 5G/6G, IoT, Digital Twin and Non-Terrestrial Network (NTN) solutions, including High Altitude Platform Station (HAPS)-based stratospheric telecommunications. While constructing AI data centers and developing homegrown LLMs specialized for the Japanese language with 1 trillion parameters, SoftBank is integrating AI with radio access networks (AI-RAN) with the aim of becoming a provider of next-generation social infrastructure. To learn more, please visit https://www.softbank.jp/en/
About Aduna
Aduna is a landmark venture between some of the world's leading telecom operators and Ericsson, dedicated to enabling developers worldwide to accelerate innovation by leveraging networks to their full potential via common network Application Programming Interfaces (APIs). Its venture partners include: AT&T, Bharti Airtel, Deutsche Telekom, e&, KDDI, Orange, Reliance Jio, Singtel, Telefonica, Telstra, T-Mobile, Verizon and Vodafone. Aduna's developer partner platforms include Google Cloud, Infobip, Sinch, and Vonage. By combining network APIs from multiple operators globally under a unified platform based on the CAMARA open-source project, driven by the GSMA and the Linux Foundation, Aduna provides a standardized platform to foster collaboration, enhance user experiences, and drive industry growth.
To find out more about network APIs and Aduna, visit adunaglobal.com.
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MONTREAL, Aug. 8, 2025 /CNW/ - Fiera Capital Corporation (TSX: FSZ) ("Fiera Capital" or the "Company"), a leading independent asset management firm, today announced its financial results for the second quarter ended June 30, 2025. Financial references are in Canadian dollars unless otherwise indicated. (in $ thousands except where otherwise indicated) Q2 Q1 Q2 YTD YTD 2025 2025 2024 2025 2024 End of period AUM (in $ billions) 160.5 161.6 158.9 160.5 158.9 Average AUM (in $ billions) 159.0 164.4 159.1 161.7 162.0 IFRS Financial Measures Total revenues 162,974 162,871 164,786 325,845 332,901 Base management fees 147,867 154,542 149,343 302,409 300,880 Performance fees 2,491 183 2,544 2,674 5,329 Commitment and transaction fees 5,246 2,440 4,287 7,686 5,602 Share of earnings in joint ventures and associates 2,035 2,595 2,689 4,630 8,976 Other revenues 5,335 3,111 5,923 8,446 12,114 Net earnings (loss) 1 3,757 21,789 4,895 25,546 12,540 Non-IFRS Financial Measures Adjusted EBITDA 2 45,692 43,403 45,284 89,095 90,679 Adjusted EBITDA margin 2 28.0 % 26.6 % 27.5 % 27.3 % 27.2 % Adjusted net earnings 1,2 27,198 25,426 24,872 52,624 50,961 LTM Free Cash Flow 2 75,336 86,674 121,148 75,336 121,148 1 Attributable to the Company's shareholders 2 Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net earnings and Free Cash Flow are non-IFRS measures. Refer to the "Non-IFRS Measures" section of this press release "We are pleased with the momentum in our business during the second quarter. Our Public Markets platform secured $1.4 billion of new mandates, marking our strongest gross flows in nine quarters. Assets under management in our Private Markets platform grew year-over-year to reach nearly $21 billion" said Maxime Ménard, Global President and Chief Executive Officer."These results underscore the trust our clients continue to place in us, the depth of our investment capabilities and the momentum that has been built through our regionalized distribution model. We remain focused on executing on our strategic priorities, including delivering consistent investment performance and providing a connected client experience, to drive sustained, long-term organic growth." "Year-to-date base management fees increased from the same period last year, reflecting stable average AUM and a resilient fee rate which was driven by growing contribution from our Private Markets platform. SG&A expenses were down 3% year-over-year as we delivered on our commitment to streamline the organization and improve operating efficiency" said Lucas Pontillo, Executive Director, Global Chief Financial Officer and Head of Corporate Strategy."During the quarter, we repurchased 1.1 million shares, reinforcing our commitment to return capital to shareholders. The Board of Directors has approved a dividend of 10.8 cents per share, payable on September 18, 2025." Assets Under Management (in $ millions, unless otherwise indicated) By Platform March 31, 2025 New Lost Net Contributions Net Organic Growth 1 Market and Other 2 Strategic 3 June 30, 2025 Public Markets, excluding sub-advised AUM 104,057 1,441 (140) (1,757) (456) 1,306 (1,110) 103,797 Public Markets sub-advised AUM 36,388 7 (406) (658) (1,057) 493 — 35,824 Public Markets - Total 140,445 1,448 (546) (2,415) (1,513) 1,799 (1,110) 139,621 Private Markets 21,149 209 (46) (349) (186) (110) — 20,853 Total 161,594 1,657 (592) (2,764) (1,699) 1,689 (1,110) 160,474 By Distribution Channel March 31, 2025 New Lost Net Contributions Net Organic Growth 1 Market and Other 2 Strategic 3 June 30, 2025 Institutional 91,843 1,149 (78) (1,229) (158) 732 (309) 92,108 Financial Intermediaries 55,544 431 (391) (890) (850) 739 (801) 54,632 Private Wealth 14,207 77 (123) (645) (691) 218 — 13,734 Total 161,594 1,657 (592) (2,764) (1,699) 1,689 (1,110) 160,474 By Platform December 31, 2024 New Lost Net Contributions Net Organic Growth 1 Market and Other 2 Strategic 3 June 30, 2025 Public Markets, excluding sub-advised AUM 103,350 2,202 (398) (2,060) (256) 1,813 (1,110) 103,797 Public Markets sub-advised AUM 44,045 7 (6,156) (1,877) (8,026) (195) — 35,824 Public Markets - Total 147,395 2,209 (6,554) (3,937) (8,282) 1,618 (1,110) 139,621 Private Markets 19,716 687 (92) (655) (60) 250 947 20,853 Total 167,111 2,896 (6,646) (4,592) (8,342) 1,868 (163) 160,474 By Distribution Channel December 31, 2024 New Lost Net Contributions Net Organic Growth 1 Market and Other 2 Strategic 3 June 30, 2025 Institutional 90,085 2,192 (246) (1,996) (50) 1,435 638 92,108 Financial Intermediaries 62,418 451 (6,135) (1,486) (7,170) 185 (801) 54,632 Private Wealth 14,608 253 (265) (1,110) (1,122) 248 — 13,734 Total 167,111 2,896 (6,646) (4,592) (8,342) 1,868 (163) 160,474 1 Net Organic Growth represents the sum of new mandates, lost mandates and net contributions 2 Market and Other includes the impact of market changes, income distributions and foreign exchange 3 Relates to the wind down of the Canadian Equity Small Capitalization and Canadian Equity Microcap Opportunity strategies in the current quarter, as previously announced, and the acquisition of a controlling interest in a real estate investment platform in the first quarter of 2025 AUM decreased by $1.1 billion or 0.7% compared to March 31, 2025 reflecting negative net organic growth of $1.7 billion and the previously announced wind down of the Canadian Equity Small Capitalization and Canadian Equity Microcap Opportunity strategies in the current quarter, which reduced AUM by $1.1 billion. This was partly offset by a positive market impact of $1.8 billion. The increase in the market value of AUM, specifically equity mandates, was partly offset by a negative foreign exchange impact during the quarter. Excluding sub-advised AUM, Public Markets net organic growth was a net outflow of $0.5 billion. Negative net contributions of $1.8 billion, due to rebalancing mainly from fixed income strategies, were largely offset by new mandates of $1.4 billion, primarily from equity strategies. Negative net organic growth included $1.1 billion of outflows connected to sub-advised AUM, including lost mandates of $0.4 billion and negative net contributions of $0.7 billion, related primarily to ongoing client relationships where clients simply rebalanced their overall investments. AUM decreased by $6.6 billion or 3.9% compared to December 31, 2024 reflecting negative net organic growth of $8.3 billion, primarily from sub-advised AUM, partly offset by a favourable market impact of $2.0 billion. Negative net organic growth connected to sub-advised AUM decreased $8.0 billion, largely from approximately $5.7 billion of lost mandates from Canoe Financial LP in January 2025. Excluding sub-advised AUM, there was negative net organic growth of $0.3 billion, as negative net contributions were largely offset by new mandates. Second Quarter Financial Highlights Revenue was relatively flat compared to Q1 2025, reflecting an increase in commitment and transaction fees, performance fees, and other revenues, offset by lower base management fees in Public Markets. Revenue decreased by $1.8 million or 1.1% compared to Q2 2024, primarily due to lower base management fees in Public Markets, partly offset by higher base management fees in Private Markets. Adjusted EBITDA increased by $2.3 million or 5.3% compared to Q1 2025, primarily due to lower-sub-advisory fees. Adjusted EBITDA increased by $0.4 million or 0.9% compared to Q2 2024, primarily due to lower selling, general and administrative ("SG&A") expenses, excluding share-based compensation. Adjusted net earnings increased by $1.8 million or 7.1% compared to Q1 2025, primarily due to lower SG&A expenses and balance sheet foreign exchange revaluation gains from the weaker US dollar, partly offset by higher interest on debentures. Adjusted net earnings increased by $2.3 million or 9.2% compared to Q2 2024, primarily due to balance sheet foreign exchange revaluation gains and lower SG&A expenses. Net earnings attributable to the Company's shareholders decreased by $18.0 million or 82.6% compared to Q1 2025. The decrease was primarily due to a $12.7 million gain on revaluation of an investment in the prior quarter related to the acquisition of a controlling interest in a real estate investment platform, and higher restructuring costs related to severance in the current quarter, as a result of management and organizational changes. Net earnings attributable to the Company's shareholders decreased by $1.1 million compared to Q2 2024, primarily due to higher restructuring costs partly offset by balance sheet foreign exchange revaluation gains in the current quarter. LTM free cash flow decreased by $11.4 million or 13.1% compared to Q1 2025, primarily due to higher severance costs paid in the current quarter and the timing of accounts receivable collections. LTM free cash flow decreased by $45.8 million or 37.8% compared to Q2 2024, primarily due to higher performance fees and distributions from joint ventures and associates in the prior period. Year-to-Date Financial Highlights Revenue decreased by $7.1 million or 2.1% compared to the corresponding period of 2024, primarily due to lower base management fees in Public Markets, share of earnings in joint ventures and associates, and other revenues, partly offset by higher base management fees in Private Markets. Adjusted EBITDA decreased by $1.6 million or 1.8% compared to the corresponding period of 2024, primarily due to lower share of earnings in joint ventures and associates, lower other revenues, and higher technical services costs, partly offset by lower sub-advisory fees. Adjusted net earnings increased by $1.6 million or 3.1% compared to the corresponding period of 2024, primarily due to lower SG&A and balance sheet foreign exchange revaluation gains from the weaker US dollar in the current year, partly offset by lower revenues. Net earnings attributable to the Company's shareholders increased by $13.0 million compared to the corresponding period of 2024, primarily due to a $12.7 million gain on revaluation of an investment related to the acquisition of a controlling interest in a real estate investment platform. Subsequent Events Dividend Declared On August 7, 2025, the Board declared a quarterly dividend of $0.108 per Class A subordinate voting share ("Class A Share") and Class B special voting share ("Class B Share"), payable on September 18, 2025 to shareholders of record at the close of business on August 20, 2025. The dividend is an eligible dividend for income tax purposes. Normal Course Issuer Bid ("NCIB") The Company announces that the Toronto Stock Exchange (the "TSX") approved the renewal of the Company's NCIB to purchase for cancellation up to a maximum of 4,000,000 Class A Shares over the twelve-month period commencing on August 16, 2025 and ending no later than August 15, 2026, and representing approximately 4.6% of its 87,210,436 issued and outstanding Class A Shares as at August 4, 2025 (the "Renewed NCIB"). Under the NCIB that will expire August 15, 2025, and pursuant to which the Company was authorized to purchase up to 4,000,000 Class A Shares, Fiera Capital purchased and cancelled 1,862,016 shares at a weighted average purchase price per security of $6.38 for total consideration of $11.9 million. This included 536,048 Class A Shares purchased and cancelled subsequent to quarter end, at a weighted average purchase price per security of $6.66 for total consideration of $3.6 million. Purchases were effected through the facilities of the TSX and through Canadian alternative trading systems. Purchases under the Renewed NCIB will be made on the open market through the facilities of the TSX and through Canadian alternative trading systems, as well as outside the facilities of the TSX pursuant to exemptions available under applicable securities legislation or exemption orders issued by securities regulatory authorities. The price that the Company will pay for the Class A Shares purchased under the Renewed NCIB will be the market price of such shares at the time of the acquisition as per the requirements of the market where the trade is made and applicable securities laws, except for purchases effected outside the facilities of the TSX pursuant to exemptions available under applicable securities legislation or exemption orders issued by securities regulatory authorities, which will be at a discount to the prevailing market price. The board of directors of the Company believes that the repurchase of Class A Shares, which the Company may carry out from time to time during the Renewed NCIB, represents a responsible investment and that the Renewed NCIB provides the Company with the flexibility to purchase Class A Shares as it considers advisable. Security holders may obtain a copy of the " Notice of Intention to Make a Normal Course Issuer Bid" filed with the TSX, without charge, by written request addressed to: Corporate Secretary, Fiera Capital Corporation, 1981 McGill College Avenue, Suite 1500, Montréal, Québec, H3A 0H5. The average daily trading volume (the "ADTV") of the Class A Shares over the last six complete calendar months was 372,087 Class A Shares. Accordingly, under TSX rules and policies, Fiera Capital is entitled on any trading day to purchase on the TSX up to 93,021 Class A Shares. Fiera Capital may also purchase, once a week and in excess of the foregoing daily repurchase limit of 25% of the ADTV, blocks of Class A Shares that are not owned by any insiders, in accordance with the TSX rules and policies. Additional details relating to the Company's operating results can be found in the Company's Management's Discussion and Analysis for the three and six-month periods ended June 30, 2025 available on our Investor Relations web page under Financial Documents - Quarterly Results - Management's Discussion and Analysis. Fiera Capital will hold a conference call at 10:00 a.m. (ET) on Friday, August 8, 2025, to discuss its financial results. The dial-in number to access the conference call from Canada and the United States is 1-800-990-4777 (toll-free) and 1-289-819-1299 from outside North America. The conference call will also be accessible via webcast on the Investor Relations section of Fiera Capital's website under Events and Presentations. Replay An audio replay of the call will be available until August 15, 2025 by dialing 1-888-660-6345 (North American toll free), access code 49008 followed by the number sign (#). The webcast will remain available for three months following the call and can be accessed on the Investor Relations section of Fiera Capital's website under Events and Presentations. Non-IFRS Measures Earnings before interest, taxes, depreciation and amortization ("EBITDA"), Adjusted EBITDA, Adjusted EBITDA margin and Adjusted EBITDA per share, Adjusted net earnings and Adjusted net earnings per share (basic and diluted), and Last Twelve Months ("LTM") Free Cash Flow are not standardized measures prescribed by International Financial Reporting Standards ("IFRS"), and are therefore unlikely to be comparable to similar measures presented by other companies. We have included non-IFRS measures to provide investors with supplemental measures of our operating and financial performance. We believe non-IFRS measures are important supplemental metrics of operating and financial performance because they highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. Securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers, many of which present non-IFRS measures when reporting their results. Management also uses non-IFRS measures in order to facilitate operating and financial performance comparisons from period to period, to prepare annual budgets and to assess its ability to meet future debt service, capital expenditure and working capital requirements. For a description of the Company's non-IFRS Measures, please refer to page 51 of the Company's Management's Discussion and Analysis for the three months ended June 30, 2025 which is available on SEDAR+ at For a reconciliation of the Company's non-IFRS Measures, refer to the below tables: FOR THE THREE MONTHS ENDED FOR THE SIX-MONTH PERIODS ENDED June 30, 2025 March 31, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Net earnings 5,960 23,902 6,578 29,862 16,344 Income tax expense 1,799 3,679 2,531 5,478 3,531 Amortization and depreciation 12,215 12,270 12,603 24,485 25,445 Interest on long-term debt and debentures 12,057 11,389 12,431 23,446 24,134 Interest on lease liabilities, foreign currency revaluation and other financial charges (740) 433 2,087 (307) 5,009 EBITDA 31,291 51,673 36,230 82,964 74,463 Restructuring, acquisition related and other costs 10,112 2,818 5,140 12,930 9,633 Accretion and change in fair value of purchase price obligations and other (7) (932) (680) (939) (1,799) Share-based compensation 5,022 2,599 4,813 7,621 8,586 Gain on investments, net (190) (542) (222) (732) (209) Revaluation of assets held for sale — (12,730) — (12,730) — Other expenses (income) (536) 517 3 (19) 5 Adjusted EBITDA 45,692 43,403 45,284 89,095 90,679 Adjusted EBITDA Margin 28.0 % 26.6 % 27.5 % 27.3 % 27.2 % Per share basic 0.42 0.40 0.42 0.82 0.85 Per share diluted 0.41 0.31 0.42 0.68 0.83 Weighted average shares outstanding - basic (thousands) 108,068 108,003 106,584 108,032 106,515 Weighted average shares outstanding - diluted (thousands) 111,709 140,459 109,023 130,091 108,957 Reconciliation to Adjusted Net Earnings (in $ thousands except per share data) FOR THE THREE MONTHS ENDED FOR THE SIX-MONTH PERIODS ENDED June 30, 2025 March 31, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Net earnings attributable to the Company's shareholders 3,757 21,789 4,895 25,546 12,540 Amortization and depreciation 12,215 12,270 12,603 24,485 25,445 Restructuring, acquisition related and other costs 10,112 2,818 5,140 12,930 9,633 Accretion and change in fair value of purchase price obligations and other, and effective interest on debentures 320 (703) (412) (383) (1,325) Share-based compensation 5,022 2,599 4,813 7,621 8,586 Revaluation of an investment related to an acquisition — (12,730) — (12,730) — Other expenses (income) (536) 517 3 (19) 5 Tax effect of above-mentioned items (3,692) (1,134) (2,170) (4,826) (3,923) Adjusted net earnings 27,198 25,426 24,872 52,624 50,961 Per share – basic Net earnings (loss) 1 0.03 0.20 0.05 0.24 0.12 Adjusted net earnings 1 0.25 0.24 0.23 0.49 0.48 Per share – diluted Net earnings (loss) 1 0.03 0.17 0.04 0.22 0.12 Adjusted net earnings 1 0.24 0.20 0.23 0.42 0.47 Weighted average shares outstanding - basic (thousands) 108,068 108,003 106,584 108,032 106,515 Weighted average shares outstanding - diluted (thousands) 111,709 140,459 109,023 130,091 108,957 1 Attributable to the Company's shareholders Free Cash Flow Reconciliation (in $ thousands) FOR THE THREE MONTHS ENDED Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 2025 2025 2024 2024 2024 2024 2023 2023 Cash flow from operations before the impact of working capital 33,647 37,658 47,487 48,589 37,218 34,641 70,265 46,180 Changes in non-cash operating working capital items 8,287 (55,639) 4,464 6,187 15,807 (60,389) (12,666) 33,528 Net cash generated by (used in) operating activities 41,934 (17,981) 51,951 54,776 53,025 (25,748) 57,599 79,708 Settlement of purchase price obligations — — (937) — (1,500) — — — Proceeds on promissory note 1,406 1,509 1,538 1,502 1,521 1,501 1,500 1,510 Distributions received from joint ventures and associates, net of investments 4,061 531 (321) 925 8,137 3,326 1,723 1,617 Dividends and other distributions to Non-Controlling Interest (1,191) (9,110) — — (6,215) — (3,167) — Lease payments (3,851) (3,913) (3,862) (4,727) (3,038) (4,718) (4,690) (3,837) Interest paid on long-term debt and debentures (14,213) (11,814) (10,519) (11,244) (12,775) (13,995) (6,299) (12,174) Other restructuring costs 2,329 1,873 3,333 1,015 2,685 1,569 2,075 1,226 Acquisition related and other costs 27 129 180 — — 32 420 130 Free Cash Flow 30,502 (38,776) 41,363 42,247 41,840 (38,033) 49,161 68,180 LTM Free Cash Flow 75,336 86,674 87,417 95,215 121,148 71,847 89,212 98,056 Forward-Looking Statements This document contains forward-looking statements relating to future events or, future performance reflecting management's expectations or beliefs regarding future events, including, without limitation, business and economic conditions, outlook and trends, Fiera Capital's growth, results of operations, performance, business prospects and opportunities, objectives, plans and strategic priorities, new initiatives, such as those related to sustainability and other statements that do not refer to historical facts. Forward-looking statements may include comments on Fiera Capital's objectives, strategies to achieve these objectives, expected financial results or dividends, and the outlook for the Company's businesses, as well as for the Canadian, American, European, Asian and other global economies. Such forward-looking statements reflect management's current beliefs and are based on factors and assumptions it considers to be reasonable based on information currently available to management. These forward-looking statements may typically be identified by words and expressions such as "assumption, "continue", "estimate", "forecast", "goal", "guidance", "likely", "plan", "objective", "outlook", "potential", "foresee", , "project", "strategy", "target", and other similar words or expressions or future or conditional verbs (including in their negative form), such as "aim", "anticipate", "believe", "could", "expect", "foresee", "intend", "may", "plan", "predict", "seek", "should", "strive" and "would". Forward-looking statements, by their very nature, are subject to inherent risks and uncertainties and are based on several assumptions, which make it possible for actual results or events to differ materially from management's expectations and that predictions, forecasts, projections, expectations, conclusions or statements will not prove to be accurate. As a result, the Company does not guarantee that any forward-looking statement will materialize and readers are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements are presented for the purpose of assisting investors and others in understanding certain key elements of the Company's objectives, strategies, expectations, plans and business outlook as well as the anticipated operating environment. Readers are cautioned, however, that such information may not be appropriate for other purposes. A number of important risk factors and uncertainties, many of which are beyond Fiera Capital's control, could cause actual events, performance or results to differ materially from the predictions, forecasts, projections, expectations, conclusions or statements expressed in such forward-looking statements which include, without limitation: risks related to investment performance, investment of the assets under management ("AUM"), including, without limitation, risks related to external market and economic conditions and other events beyond Fiera Capital's control such as the imposition of economic measures such as tariffs and other trade restrictions, AUM concentration related to strategies sub-advised by PineStone, key employees, asset management industry and competitive pressure, reputational risk, regulatory compliance, information security policies, procedures and capabilities, litigation risk, employee misconduct or error, insurance coverage, third-party relationships, client commitment, indebtedness, market risk, credit risk, inflation, interest rates and recession risks, ownership structure and potential dilution and other risks and uncertainties described in the Company's Annual Information Form for the year ended December 31, 2024 under the heading " Risk Factors and Uncertainties" or discussed in other materials filed by the Company with applicable securities regulatory authorities from time to time which are available on SEDAR+ at Readers are cautioned that the preceding list of risk factors and uncertainties is not exhaustive and that other risks and uncertainties could affect the Company. Additional risks and uncertainties, including those not currently known to Fiera Capital or currently deemed immaterial, could also have a material adverse effect on the Company's business, financial condition, liquidity, operations or financial results. When relying on forward-looking statements in this document or in any other disclosure made by Fiera Capital, investors and others should carefully consider the risks and uncertainties listed above, along with other potential events that could affect the Company's financial condition, operations, performance or results. Unless otherwise indicated, forward-looking statements in this press release describe management's expectations as at the date hereof and, accordingly, are subject to change after that date. Fiera Capital does not undertake to update or revise any forward-looking statement, whether written or oral, that may be made from time to time by it or on its behalf in order to reflect new information, future events or circumstances or otherwise, except as required by applicable law. About Fiera Capital Corporation Fiera Capital is a leading independent asset management firm with a growing global presence. The Company delivers customized and multi-asset solutions across public and private market asset classes to institutional, financial intermediary and private wealth clients across North America, Europe and key markets in Asia and the Middle East. Fiera Capital's depth of expertise, diversified investment platform and commitment to delivering outstanding service are core to our mission of being at the forefront of investment management science to create sustainable wealth for clients. Fiera Capital trades under the ticker FSZ on the Toronto Stock Exchange. Headquartered in Montreal, Fiera Capital, with its affiliates in various jurisdictions, has offices in over a dozen cities around the world, including New York (U.S.), London (UK), Hong Kong (SAR) and Abu Dhabi (ADGM). Each affiliated entity (each an "Affiliate") of Fiera Capital only provides investment advisory or investment management services or offers investment funds in the jurisdictions where the Affiliate is authorized to provide services pursuant to the relevant registrations, an exemption from such registrations and/or the relevant product is registered or exempt from registration. Fiera Capital does not provide investment advice to U.S. clients or offer investment advisory services in the U.S. In the U.S., asset management services are provided by Fiera Capital's Affiliates who are investment advisers that are registered with the U.S. Securities and Exchange Commission (SEC) or exempt from registration. Registration with the SEC does not imply a certain level of skill or training. For details on the particular registration of, or exemptions therefrom relied upon by, any Fiera Capital entity, please consult
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Revenue for the second quarter of 2025 was $372.4 million, a five percent decrease from the second quarter of 2024 revenue of $391.8 million. Revenue by geographic area: Canada - $100.8 million, 27 percent of total; United States - $197.2 million, 53 percent of total; and International - $74.4 million, 20 percent of total. Adjusted EBITDA for the second quarter of 2025 was $81.4 million, a 19 percent decrease from Adjusted EBITDA of $100.2 million for the second quarter of 2024. Funds flow from operations for the second quarter of 2025 decreased 26 percent to $72.5 million from $98.3 million in the second quarter of the prior year. Net loss attributable to common shareholders for the second quarter of 2025 was $26.4 million, down from net loss attributed to common shareholders of $4.5 million for the second quarter of 2024. During the second quarter of 2025, $19.7 million of debt was repaid and a total of $42.9 million was repaid during the first half of 2025. The Company is on track to achieve its stated debt reduction target of $600.0 million for the period beginning of 2023 to the end of 2025. The remaining amount of debt to be repaid to achieve this target is $119.8 million. If industry conditions change, this target could be increased or decreased. Total debt, net of cash has decreased $68.5 million during the first half of 2025 due to debt repayments and foreign exchange translation of converting USD denominated debt. Interest expense decreased by 27 percent to $18.6 million from $25.5 million. The decrease is the result of lower debt levels and effective interest rates. 1 Excludes coring rigs. 2 Includes workover rigs. 3 Defined as contract drilling days, between spud to rig release. Canadian drilling recorded 2,494 operating days in the second quarter of 2025, a two percent increase from 2,451 operating days in the second quarter of 2024. Canadian well servicing recorded 11,987 operating hours in the second quarter of 2025, fairly consistent with 12,027 operating hours in the second quarter of 2024. United States drilling recorded 2,943 operating days in the second quarter of 2025, a one percent increase from 2,912 operating days in the second quarter of 2024. United States well servicing recorded 25,747 operating hours in the second quarter of 2025, a 27 percent decrease from 35,312 operating hours in the second quarter of 2024. International drilling recorded 1,081 operating days in the second quarter of 2025, a 14 percent decrease from 1,255 operating days recorded in the second quarter of 2024. FINANCIAL POSITION HIGHLIGHTS 1 See non-GAAP Measures section. CAPITAL EXPENDITURE HIGHLIGHTS Three months ended June 30 Six months ended June 30 ($ thousands) 2025 2024 % change 2025 2024 % change Capital expenditures Upgrade 13,276 2,368 nm 16,246 4,138 nm Maintenance 37,363 46,058 (19) 73,029 99,057 (26) Proceeds from disposals of property and equipment (1,489) (8,116) (82) (3,262) (11,387) (71) Net capital expenditures 49,150 40,310 22 86,013 91,808 (6) nm - calculation not meaningful Net purchases of property and equipment for the second quarter of 2025 totaled $49.2 million, consisting of $13.3 million in upgrade capital and $37.4 million in maintenance capital, offset by disposition proceeds of $1.5 million. Maintenance capital expenditures for 2025 are targeted to be approximately $154.0 million, with selective upgrade capital of approximately $30.5 million, of which $19.0 million is customer funded. The increase in the 2025 targeted capital spend relates to the upgrade of two drilling rigs in the Company's Oman operations. These two rigs are expected to begin operations in the first half to 2026 under a five-year contract. In addition, the Company may consider other upgrade or growth projects in response to customer demand and appropriate contract terms. This news release contains "forward-looking information and statements" within the meaning of applicable securities legislation. For a full disclosure of the forward-looking information and statements and the risks to which they are subject, see the "Advisory Regarding Forward-Looking Statements" later in this news release. This news release contains references to Adjusted EBITDA, Adjusted EBITDA per common share and working capital. These measures do not have any standardized meaning prescribed by IFRS Accounting Standards ("IFRS") and accordingly, may not be comparable to similar measures used by other companies. The non-GAAP measures included in this news release should not be considered as an alternative to, or more meaningful than, the IFRS measures from which they are derived or to which they are compared. See "Non-GAAP Measures" later in this news release. OVERVIEW Revenue for the second quarter of 2025 was $372.4 million, a five percent decrease from $391.8 million in revenue for the second quarter of 2024. Revenue for the six months ended June 30, 2025, was $808.9 million, a decrease of two percent from revenue for the six months ended June 30, 2024, of $823.1 million. Adjusted EBITDA totaled $81.4 million ($0.44 per common share) in the second quarter of 2025, 19 percent lower than Adjusted EBITDA of $100.2 million ($0.54 per common share) in the second quarter of 2024. For the six months ended June 30, 2025, Adjusted EBITDA totaled $183.7 million ($1.00 per common share), 16 percent lower than Adjusted EBITDA of $217.7 million ($1.18 per common share) in the first six months ended June 30, 2024. Net loss attributable to common shareholders for the second quarter of 2025 was $26.4 million ($0.14 per common share) compared to a net loss attributable to common shareholders of $4.5 million ($0.02 per common share) for the second quarter of 2024. Net loss attributable to common shareholders for the six months ended June 30, 2025, was $22.7 million ($0.12 per common share), compared to a net loss attributable to common shareholders of $5.8 million ($0.03 per common share) for the six months ended June 30, 2024. Funds flow from operations decreased 26 percent to $72.5 million ($0.39 per common share) in the second quarter of 2025 compared to $98.3 million ($0.53 per common share) in the second quarter of the prior year. Funds flow from operations decreased 18 percent to $169.1 million ($0.92 per common share) for the six months ended June 30, 2025, compared to $206.7 million ($1.12 per common share) for the six months ended June 30, 2024. The oilfield services sector maintains a generally constructive outlook despite a year-over-year activity decline in some operating regions. Geopolitical tensions and global trade uncertainties have kept activity in the United States subdued and reinforced customer capital discipline in regard to drilling programs. Volatile commodity prices and shifts in the United States trade policies under the new administration, including tariffs, are further clouding the global economic outlook and pressuring commodity prices. Additionally, OPEC+ nations easing voluntary production cuts has increased crude supply, keeping a ceiling on crude oil commodity prices. Geopolitical tensions, hostilities in areas of the Middle East, the ongoing Russia-Ukraine conflict, and global trade policy changes continue to impact global commodity prices and add uncertainty to the outlook for crude oil supply and commodity prices over the short-term. The Company's operating days were lower for the six months ended June 30, 2025, when compared with the same periods in 2024 as operations were negatively impacted by the above-mentioned uncertainty in the global economy and volatility in the crude oil and natural gas commodity pricing. The average United States dollar exchange rate was $1.41 for the first half of 2025 (2024 - $1.36), higher than the first half of 2024. The higher exchange rate helped offset the net loss for the three and six months ended June 30, 2025, with the positive foreign exchange translation on USD denominated earnings. The Company's working capital deficit as at June 30, 2025, was $96.0 million, compared to $100.9 million as at December 31, 2024. The working capital deficit is the result of the classification of the current portion of long-term debt. The Company's available liquidity, consisting of cash and available borrowings under its $750.0 million revolving credit facility (the "Credit Facility"), was $20.9 million as at June 30, 2025 (December 31, 2024: $31.9 million). REVENUE AND OILFIELD SERVICES EXPENSE Revenue for the three months ended June 30, 2025, totaled $372.4 million, a decrease of five percent from the three months ended June 30, 2024 of $391.8 million. Revenue for the six months ended June 30, 2025, totaled $808.9 million, a two percent decrease from the six months ended June 30, 2024 of $823.1 million. The decrease in total revenue during the first half of 2025 was primarily due to the lower operating activity. Offsetting the decrease is a four percent positive foreign exchange translation of converting USD denominated revenue. CANADIAN OILFIELD SERVICES Revenue increased eight percent to $100.8 million for the three months ended June 30, 2025, from $93.4 million for the three months ended June 30, 2024. The Company recorded revenue of $252.8 million in Canada for the six months ended June 30, 2025, an increase of nine percent from $231.9 million recorded for the six months ended June 30, 2024. Canadian revenue accounted for 27 percent of the Company's total revenue in the second quarter of 2025 (2024 - 24 percent) and 31 percent (2024 - 28 percent) for the first half of 2025. The Company's Canadian drilling operations recorded 2,494 operating days in the second quarter of 2025, compared to 2,451 operating days for the second quarter of 2024, an increase of two percent. For the six months ended June 30, 2025, the Company recorded 6,497 operating days compared to 6,203 days for the six months ended June 30, 2024, an increase of five percent. Canadian well servicing hours remained flat at 11,987 operating hours in the second quarter of 2025 compared to 12,027 operating hours in the corresponding period of 2024. For the six months ended June 30, 2025, Canadian well servicing hours increased by two percent totaling 24,324 compared to 23,953 in the corresponding period of 2024. The financial results for the Company's Canadian operations for the first half of 2025 were higher as a result of increased operating activity and revenue rates. Our Canadian operations continue to see growth following the completion of the Trans Mountain Pipeline expansion in May 2024. During the first half of 2025, the Company transferred five under-utilized Canadian drilling rigs into its reserve fleet and transferred one marketed rig to its United States operations. UNITED STATES OILFIELD SERVICES The Company's United States operations recorded revenue of $197.2 million in the second quarter of 2025, a decrease of five percent from the $208.6 million recorded in the corresponding period of the prior year. During the six months ended June 30, 2025, revenue of $403.0 million was recorded, a decrease of 3 percent from the $417.0 million recorded in the corresponding period of the prior year. The Company's United States operations accounted for 53 percent of the Company's revenue in the second quarter of 2025 (2024 - 53 percent) and 50 percent of the Company's revenue in the first half of 2025 (2024 - 51 percent). Drilling rig operating days increased by one percent to 2,943 operating days in the second quarter of 2025 from 2,912 operating days in the second quarter of 2024 and decreased by five percent to 5,715 operating days in the first half of 2025 from 6,046 operating days in the first half of 2024. United States well servicing recorded 25,747 operating hours in the second quarter of 2025 which was a 27 percent decrease from 35,312 operating hours recorded in the second quarter of 2024. For the first half of 2025, well servicing activity decreased by 19 percent to 49,929 operating hours from 61,563 operating hours in the first half of 2024. Operating and financial results for the Company's United States operations were impacted by the uncertainty over the global economy, the volatility in the crude oil and natural gas commodity pricing, customer capital discipline and one time expenses related to the reactivation and deactivation of drilling rigs. Offsetting the decline is the four percent positive USD translation difference. During the first half of 2025, the Company transferred seven under-utilized United States drilling rigs into its reserve fleet and transferred one marketed rig from its Canadian operations to the United States. INTERNATIONAL OILFIELD SERVICES The Company's international operations recorded revenue of $74.4 million in the second quarter of 2025, a 17 percent decrease from the $89.8 million recorded in the corresponding period of the prior year. International revenues for the six months ended June 30, 2025, decreased 12 percent to $153.1 million from $174.2 million recorded for the six months ended June 30, 2024. The Company's international operations contributed 20 percent of the total revenue in the second quarter of 2025 (2024 - 23 percent) and 19 percent of the Company's revenue in the second quarter of 2025 (2024 - 21 percent). International operating days for the three months ended June 30, 2025, totaled 1,081 operating days, a decrease of 14 percent from 1,255 operating days in the same period of 2024. For the six months ended June 30, 2025, international operating days totaled 2,230 operating days compared to 2,574 operating days for the six months ended June 30, 2024, a decrease of 13 percent. Operating and financial results from international operations declined as a result of rigs coming off contract. Offsetting the decline is the four percent positive USD translation difference. During the first half of 2025, the Company transferred four under-utilized international drilling rigs into its reserve fleet. DEPRECIATION Depreciation expense totaled $82.8 million for the second quarter of 2025 compared with $82.5 million for the second quarter of 2024, fairly consistent with the comparative period. Depreciation expense for the first six months of 2025 decreased by four percent, to $164.7 million compared with $170.8 million for the same period of 2024. The decrease in depreciation is due to certain operating assets having become fully depreciated in which case no further depreciation expense will be incurred on such assets. Offsetting the decrease is the negative four percent translation effect on converting depreciation on USD denominated assets. GENERAL AND ADMINISTRATIVE General and administrative expense decreased 17 percent to $12.8 million (3.4 percent of revenue) for the second quarter of 2025 compared to $15.5 million (4.0 percent of revenue) for the second quarter of 2024. For the six months ended June 30, 2025, general and administrative expense totaled $27.9 million (3.4 percent of revenue) compared to $30.6 million (3.7 percent of revenue) for the six months ended June 30, 2024. General and administrative expenses decreased due to non-recurring expenses incurred in the prior year. Offsetting the decrease is the annual wage increases and the negative four percent translation effect of converting USD denominated expenses. FOREIGN EXCHANGE AND OTHER nm - calculation not meaningful Included in this amount is the impact of foreign currency fluctuations in the Company's subsidiaries that have functional currencies other than the Canadian dollar. In addition, during the three and six months ended June 30, 2025, the Company received $0.8 million and $2.6 million in premiums from foreign exchange financial instruments offset by settlement costs of $6.9 million. INTEREST EXPENSE Interest expense was incurred on the Company's Credit and Term Facilities, Convertible Debentures (defined below), capital lease and other obligations. Interest expense decreased by 25 percent for the first half of 2025 compared to the same period of 2024, as a result of lower debt levels and effective interest rates. The Company remains committed to disciplined capital allocation and debt repayment. Offsetting the decrease is the negative four percent translation effect on converting USD denominated interest expense. INCOME TAXES (RECOVERY) Three months ended June 30 Six months ended June 30 ($ thousands) 2025 2024 % change 2025 2024 % change Current income taxes 642 328 96 2,057 1,482 39 Deferred taxes income (recovery) (6,684) 658 nm (7,690) (4,113) 87 Total income taxes (recovery) (6,042) 986 nm (5,633) (2,631) nm nm - calculation not meaningful FUNDS FLOW FROM OPERATIONS AND WORKING CAPITAL nm - calculation not meaningful 1 Comparative figure as at December 31, 2024 During the three months ended June 30, 2025, the Company generated funds flow from operations of $72.5 million ($0.39 per common share) compared to funds flow from operations of $98.3 million ($0.53 per common share) for the three months ended June 30, 2024, a decrease of 26 percent. For the six months ended June 30, 2025, the Company generated funds flow from operations of $169.1 million ($0.92 per common share), a decrease of 18 percent from $206.7 million ($1.12 per common share) for the six months ended June 30, 2024. The decrease in funds flow from operations for the six months ended June 30, 2025, compared to the same period of 2024, is largely due to the decrease in operating activity and cost escalation year over year. Offsetting the decrease is the positive four percent translation effect on converting USD denominated earnings. At June 30, 2025, the Company's working capital deficit was $96.0 million, compared to a working capital deficit of $100.9 million at December 31, 2024. The improvement in working capital deficit is the result of utilizing funds flow from operations to reduce the Company's accounts payable and accrued liabilities as well as a reduction in the current portion of long-term debt. The Company's existing bank facility provides for total borrowings of $750.0 million, of which $5.9 million was undrawn and available as at June 30, 2025 (December 31, 2024: $3.8 million). nm - calculation not meaningful Net purchases of property and equipment for the second quarter of 2025 totaled $49.2 million (2024 - $40.3 million). Net purchases of property and equipment during the first six months of 2025 totaled $86.0 million (2024 - $91.8 million). The purchase of property and equipment for the first six months of 2025 consists of $16.2 million in upgrade capital and $73.0 million in maintenance capital. FINANCING ACTIVITIES nm - calculation not meaningful As at June 30, 2025, the amount of available borrowings under the Credit Facility was $5.9 million. On October 13, 2023, the Company amended and restated its existing credit agreement with its syndicate of lenders, which provides a revolving Credit Facility and a three-year $369.0 million Term Facility. The amendments include an extension to the maturity date of the now $750.0 million Credit Facility to the earlier of (i) the date that is six months prior to the earliest maturity of any future Senior Notes, and (ii) October 13, 2026. The Credit Facility includes a reduction of the facility by $25.0 million at the end of the third quarter of 2025 and a further reduction of $25.0 million by the end of the fourth quarter of 2025. The final size of the Credit Facility will then be $700.0 million. The Term Facility requires repayments of at least $27.7 million each quarter beginning in the first quarter of 2024 to the fourth quarter 2025; and then repayments of at least $36.9 million each quarter from the first quarter 2026 to the fourth quarter 2026. The amended and restated Credit Facility provides the Company with continued access to revolver capacity in a dynamic industry environment. On June 26, 2024, the Company amended and restated its existing credit agreement with its syndicate of lenders to include a US $50.0 million secured Letter of Credit Facility and various updates regarding the replacement of the Canadian Dollar Offered Rate ("CDOR") with the Canadian Overnight Repo Rate Average ("CORRA"). Furthermore, the Company finalized an additional US $25.0 million unsecured Letter of Credit Facility in the third quarter of 2024. As at June 30, 2025, the amount available was US $21.2 million on the Letter of Credit Facility. On December 31, 2024, the Company issued a non-brokered private placement of unsecured, subordinated convertible debentures ("Convertible Debentures") for aggregate gross proceeds of $25.0 million. The Convertible Debentures bear interest from the date of closing at 7.5% per annum, payable semi-annually in arrears, on April 1 and October 1 each year. The Convertible Debentures will mature on January 31, 2029, and have a conversion price of $3.50 per common share. If, on and after March 31, 2028, the closing price of the Company's common shares on the Toronto Stock Exchange exceeds 125% of the Conversion Price for at least 30 consecutive trading days, the Convertible Debentures may be redeemed by the Company for cash on a pro rata basis, in whole or in part from time to time, on not more than 90 days and not less than 60 days prior notice, at a redemption price equal to the outstanding principal amount of the Convertible Debentures plus accrued and unpaid interest thereon (if any), up to, but excluding, the date of redemption. The liability component of the Convertible Debentures was recognized initially at fair value and revalued quarterly using a similar liability that does not have an equity conversion option, which was calculated based on an estimated market interest rate of 7.6%. There was no material difference between the principal amount of the Convertible Debentures and the fair value of the liability component. The Convertible Debentures include $20.8 million issued to management and directors of the Company. The current capital structure of the Company consisting of the Credit and Term Facility and the Convertible Debentures, allows the Company to utilize funds flow generated to reduce debt in the near term with greater flexibility than a more non-callable weighted capital structure. Covenants The following is a list of the Company's currently applicable covenants pursuant to the Credit Facility and the associated calculations as at June 30, 2025: 1 Consolidated Net Debt is defined as consolidated total debt, less cash and cash equivalent. Consolidated EBITDA, as defined in the Company's Credit Facility agreement, is used in determining the Company's compliance with its covenants. The Consolidated EBITDA is substantially similar to Adjusted EBITDA. 2 Consolidated Interest Expense is defined as all interest expense calculated on twelve month rolling consolidated basis. 3 Consolidated Net Senior Debt is defined as Consolidated Total Debt minus subordinated debt, cash and cash equivalent. As at June 30, 2025, the Company was in compliance with all covenants related to the Credit Facility. The Credit Facility The amended and restated credit agreement, a copy of which is available on SEDAR+, provides the Company with its Credit Facility and includes requirements that the Company comply with certain covenants including a Consolidated Net Debt to Consolidated EBITDA ratio, a Consolidated EBITDA to Consolidated Interest Expense ratio and a Consolidated Net Senior Debt to Consolidated EBITDA ratio. Industry Overview The outlook for oilfield services continues to be relatively constructive despite a complex backdrop. Global oil demand continues to remain steady in 2025; however, the market is currently well supplied keeping a ceiling on global crude oil prices. In the second quarter of 2025, OPEC+ announced further easing of production cuts, adding additional supply to the market. Furthermore, new hostilities between Israel and Iran, while currently abated, led to crude oil commodity price volatility during the second quarter. The benchmark price of West Texas Intermediate (" WTI") crude prices increased from an average of $62/bbl in May 2025 to currently average $68/bbl in July 2025, reflecting hostilities in the Middle East and oil supply risk. The United States renewed trade policy changes, economic growth concerns, and OPEC+ production changes continue to add uncertainty to the oil and natural gas market and commodity prices. Oil producers have shown capital discipline keeping drilling programs steady in the Company's United States operating region, while Canadian activity continues to show strength as a result of the completion of the Trans Mountain Pipeline expansion in May of 2024. The pending activation of the Coastal GasLink Pipeline and several liquefied natural gas ("LNG") projects, including LNG Canada, are expected to drive longer-term growth in Canada. In the present environment, the Company remains committed to disciplined capital allocation, driving free cash flow generation, and debt repayment. The Company has targeted, from the period beginning 2023 to the end of 2025, debt reduction of approximately $600.0 million. If industry conditions change, these targets may be increased or decreased. The Company has budgeted maintenance capital expenditures for 2025 of approximately $154.0 million and selective upgrade capital of approximately $30.5 million, of which $19.0 million is customer funded. The increase in capital expenditures in 2025 is due to a recently awarded five year contract for two rigs in the Company's Oman operating region as well as a rig being relocated from Canada to the United States. The Company continues to consider rig relocation or upgrade projects in response to customer demand and under appropriate contract terms, which may impact capital expenditures. Canadian Activity Canadian activity, representing 31 percent of total revenue in the first half of 2025, declined in the second quarter of 2025 due to seasonal spring break-up. Canadian activity is expected to improve in the third quarter of 2025 due to positive market conditions. However, potential future trade tariffs imposed between Canada and the United States, including tariffs on crude oil, may impact Canadian activity over the near term. As of August 7, 2025, of our 88 marketed Canadian drilling rigs, approximately 56 percent were engaged under term contracts of various durations. Approximately 57 percent of our contracted rigs have a remaining term of six months or longer, although they may be subject to early termination. United States Activity United States activity, representing 50 percent of total revenue in the first half of 2025, improved in the second quarter with rig additions in the Company's California and Rockies operating regions. In addition, during the second quarter, the Company moved one rig from Canada down to the United States on a long-term contract in the Rockies region. United States activity is expected to remain steady or modestly improve in the second half of 2025 due to potential rig additions in the Company's California region. As of August 7, 2025, of our 71 marketed United States drilling rigs, approximately 56 percent were engaged under term contracts of various durations. Approximately eight percent of our contracted rigs have a remaining term of six months or longer, although they may be subject to early termination. International Activity International activity, representing 19 percent of total revenue in the first half of 2025, declined in the second quarter due to rig declines in Venezuela and Bahrain. However, international operations are expected to remain steady and improve exiting the year due to a two-rig award in Oman. Activity in Oman remained steady in the second quarter with three rigs. In addition, the Company was recently awarded a two-rig five-year contract with a major international producer. The two rigs are currently in-country and both are expected to begin operations by the first half of 2026. Operations in Kuwait remained steady in the second quarter with two rigs. Activity in Bahrain decreased in the second quarter with one of the two rigs coming off contract. In the third quarter, the Company expects activity in the Middle East to be steady at three rigs in Oman, two rigs in Kuwait, and one rig in Bahrain. Operations in Australia improved by an additional rig in the second quarter to four active rigs. The Company expects activity to improve by one rig to a total of five rigs in the third quarter. Operations in Argentina remained steady at two rigs in the second quarter of 2025. However, exiting the second quarter, activity in Argentina temporarily declined by one rig. Argentina is expected to remain at one rig active in the third quarter of 2025 and increase back to two rigs in the fourth quarter of 2025. In the second quarter, operations in Venezuela declined by two rigs and operations suspended as a result of announced changes by the United States administration regarding sanction waivers. Operations in Venezuela are expected to remain suspended for the remainder of 2025. As of August 7, 2025, of our 27 marketed international drilling rigs, approximately 48 percent were engaged under term contracts of various durations. Approximately 85 percent of our contracted rigs have a remaining term of six months or longer, although they may be subject to early termination. RISK AND UNCERTAINTIES The Company is subject to numerous risks and uncertainties. A discussion of certain risks faced by the Company may be found under the "Risk Factors" section of the Company's Annual Information Form (" AIF") and the "Risks and Uncertainties" section of the Company's Management's Discussion & Analysis (" MD&A") for the year ended December 31, 2024, which are available under the Company's SEDAR+ profile at The Company's risk factors and management of those risks have not changed substantially from those as disclosed in the AIF. Additional risks and uncertainties not presently known by the Company, or that the Company does not currently anticipate or deem material, may also impair the Company's future business operations or financial condition. If any such potential events described in the Company's AIF or otherwise actually occur, or described events intensify, overall business, operating results and the financial condition of the Company could be materially adversely affected. A conference call will be held to discuss the Company's second quarter 2025 results at 10:00 a.m. MDT (12:00 p.m. EDT) on Friday, August 8, 2025. The conference call number is 1-888-510-2154 and the conference call ID is: 29695. A taped recording of the conference call will be available until August 15, 2025, by dialing 1-888-660-6345 and entering the reservation number 29695#. A live broadcast may be accessed through the Company's website at Ensign Energy Services Inc. is an international oilfield services contractor and is listed on the Toronto Stock Exchange under the trading symbol ESI. As at June 30 2025 December 31 2024 (Unaudited - in thousands of Canadian dollars) Assets Current Assets Cash $ 14,974 $ 28,113 Accounts receivable 271,989 310,453 Inventories, prepaid, investments and other 44,417 50,473 Total current assets 331,380 389,039 Property and equipment 2,149,214 2,305,985 Deferred income taxes 214,953 215,466 Total assets $ 2,695,547 $ 2,910,490 Liabilities Current Liabilities Accounts payable and accruals $ 237,938 $ 280,627 Share-based compensation 5,275 8,730 Income taxes payable 2,291 5,811 Current portion of lease obligation 10,237 12,848 Current portion of long-term debt 171,599 181,929 Total current liabilities 427,340 489,945 Share-based compensation 5,242 7,952 Long-term debt 798,379 869,682 Lease obligations 17,466 11,469 Income tax payable 5,426 5,738 Deferred income taxes 140,127 156,165 Total liabilities 1,393,980 1,540,951 Shareholders' Equity Shareholders' capital 268,965 267,987 Contributed surplus 22,282 23,354 Accumulated other comprehensive income 291,021 336,187 Retained earnings 719,299 742,011 Total shareholders' equity 1,301,567 1,369,539 Total liabilities and shareholders' equity $ 2,695,547 $ 2,910,490 Ensign Energy Services Inc. Consolidated Statements of Loss Three months ended Six months ended June 30 2025 June 30 2024 June 30 2025 June 30 2024 (Unaudited - in thousands of Canadian dollars, except per common share data) Revenue $ 372,415 $ 391,792 $ 808,926 $ 823,099 Expenses Oilfield services 278,217 276,075 597,319 574,865 Depreciation 82,767 82,512 164,660 170,765 General and administrative 12,844 15,495 27,870 30,556 Share-based compensation 1,984 241 373 4,066 Foreign exchange and other 2,439 (220) 540 4,664 Total expenses 378,251 374,103 790,762 784,916 (Loss) income before interest expense, accretion of deferred financing charges and other gains and income taxes (5,836) 17,689 18,164 38,183 Loss (gain) on asset sale 7,774 (4,663) 6,549 (6,408) Interest expense 18,564 25,538 39,065 52,018 Accretion of deferred financing charges 417 417 834 834 Loss before income taxes (32,591) (3,603) (28,284) (8,261) Income taxes (recovery) Current income taxes 642 328 2,057 1,482 Deferred income taxes (recovery) (6,684) 658 (7,690) (4,113) Total income taxes (recovery) (6,042) 986 (5,633) (2,631) Net loss $ (26,549) $ (4,589) $ (22,651) $ (5,630) Net (loss) income attributable to: Common shareholders (26,397) (4,538) (22,712) (5,755) Non-controlling interests (152) (51) 61 125 (26,549) (4,589) (22,651) (5,630) Net loss attributable to common shareholders per common share Basic $ (0.14) $ (0.02) $ (0.12) $ (0.03) Diluted $ (0.14) $ (0.02) $ (0.12) $ (0.03) Ensign Energy Services Inc. Consolidated Statements of Cash Flows Three months ended Six months ended June 30 2025 June 30 2024 June 30 2025 June 30 2024 (Unaudited - in thousands of Canadian dollars) Cash provided by (used in) Operating activities Net loss $ (26,549) $ (4,589) $ (22,651) $ (5,630) Items not affecting cash Depreciation 82,767 82,512 164,660 170,765 Loss (gain) on asset sale 7,774 (4,663) 6,549 (6,408) Share-based compensation, net cash settlements 1,292 (383) (5,188) (5,273) Unrealized foreign exchange and other (5,114) (1,240) (6,521) 4,495 Accretion of deferred financing charges 417 417 834 834 Interest expense 18,564 25,538 39,065 52,018 Deferred income taxes (recovery) (6,684) 658 (7,690) (4,113) Funds flow from operations 72,467 98,250 169,058 206,688 Net change in non-cash working capital 34,882 28,152 (7,418) 13,592 Cash provided by operating activities 107,349 126,402 161,640 220,280 Investing activities Purchase of property and equipment (50,639) (48,426) (89,275) (103,195) Proceeds from disposals of property and equipment 1,489 8,116 3,262 11,387 Net change in non-cash working capital (16,479) 6,529 3,227 24,325 Cash used in investing activities (65,629) (33,781) (82,786) (67,483) Financing activities Proceeds from long-term debt 38,462 13,240 48,218 56,714 Repayments of long-term debt (58,163) (92,126) (91,155) (147,024) Lease obligation principal repayments (3,797) (2,505) (8,289) (4,792) Interest paid (18,773) (25,055) (38,970) (52,558) Issuance of common shares under share option plan 10 148 10 196 Purchase of common shares held in trust (534) (450) (1,086) (1,032) Cash used in financing activities (42,795) (106,748) (91,272) (148,496) Net (decrease) increase in cash (1,075) (14,127) (12,418) 4,301 Effects of foreign exchange on cash (617) 245 (721) 424 Cash – beginning of period 16,666 39,108 28,113 20,501 Cash – end of period $ 14,974 $ 25,226 $ 14,974 $ 25,226 Ensign Energy Services Inc. Non-GAAP Measures Adjusted EBITDA, Adjusted EBITDA per common share, working capital and Consolidated EBITDA. These non-GAAP measures do not have any standardized meaning prescribed by IFRS and accordingly, may not be comparable to similar measures used by other companies. The non-GAAP measures included in this news release should not be considered as an alternative to, or more meaningful than, the IFRS measure from which they are derived or to which they are compared. Adjusted EBITDA is used by management and investors to analyze the Company's profitability based on the Company's principal business activities prior to how these activities are financed, how assets are depreciated, amortized and how the results are taxed in various jurisdictions. Additionally, in order to focus on the core business alone, amounts are removed related to foreign exchange, share-based compensation expense, the sale of assets and fair value adjustments on financial assets and liabilities, as the Company does not deem these to relate to its core drilling and well services business. Adjusted EBITDA is not intended to represent income (loss) as calculated in accordance with IFRS. Consolidated EBITDA Consolidated EBITDA, as defined in the Company's Credit Facility agreement, is used in determining the Company's compliance with its covenants. The Consolidated EBITDA is substantially similar to Adjusted EBITDA. Consolidated EBITDA is calculated on a rolling twelve-month basis. Working Capital Working capital is defined as current assets less current liabilities as reported on the consolidated statements of financial position. Certain statements herein constitute forward-looking statements or information (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Forward-looking statements generally can be identified by the words "believe", "anticipate", "expect", "plan", "estimate", "target", "continue", "could", "intend", "may", "potential", "predict", "should", "will", "objective", "project", "forecast", "goal", "guidance", "outlook", "effort", "seeks", "schedule", "contemplates" or other expressions of a similar nature suggesting future outcome or statements regarding an outlook. Disclosure related to expected future commodity pricing or trends, revenue rates, equipment utilization or operating activity levels, operating costs, capital expenditures and other prospective guidance provided herein including, but not limited to, information provided in the "Funds Flow from Operations and Working Capital" section regarding the Company's expectation that funds generated by operations combined with current and future credit facilities will support current operating and capital requirements, information provided in the "Financial Instruments" section regarding Venezuela and information provided in the "Outlook" section regarding the general outlook for 2025 and beyond, are examples of forward-looking statements. Forward-looking statements are not representations or guarantees of future performance and are subject to certain risks and unforeseen results. The reader should not place undue reliance on forward-looking statements as there can be no assurance that the plans, initiatives, projections, anticipations or expectations upon which they are based will occur. The forward-looking statements are based on current assumptions, expectations, estimates and projections about the Company and the industries and environments in which the Company operates, which speak only as of the date such statements were made or as of the date of the report or document in which they are contained. These assumptions include, among other things: the fluctuation in commodity prices which may pressure customers to modify their capital programs; the status of current negotiations with the Company's customers and vendors; customer focus on safety performance; royalty regimes and effects of regulation by government agencies; existing term contracts that may not be renewed or are terminated prematurely; the Company's ability to provide services on a timely basis and successfully bid on new contracts; successful integration of acquisitions; future operating costs; the general stability of the economic and political environments in the jurisdictions where we operate; tariffs, economic sanctions, inflation, interest rate and exchange rate expectations; pandemics; and impacts of geopolitical events such as the hostilities in the Middle East and between Ukraine and the Russian Federation, and the global community responses thereto; that the Company will have sufficient cash flow, debt or equity sources or other financial resources required to fund its capital and operating expenditures and requirements as needed; that the Company's conduct and results of operations will be consistent with its expectations; and other matters. The forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Such risk factors include, among others: general economic and business conditions which will, among other things, impact demand for and market prices of the Company's services and the ability of the Company's customers to pay accounts receivable balances; volatility of and assumptions regarding commodity prices; foreign exchange exposure; fluctuations in currency and interest rates; inflation; economic conditions in the countries and regions in which the Company conducts business; political uncertainty and civil unrest; the Company's ability to implement its business strategy; impact of competition and industry conditions; risks associated with long-term contracts; force majeure events; artificial intelligence development and implementation; cyber-attacks; determinations the by Organization of Petroleum Exporting Countries (" OPEC") and other countries (OPEC and various other countries are referred to as " OPEC +") regarding production levels; loss of key customers; litigation risks, including the Company's defence of lawsuits; risks associated with contingent liabilities and potential unknown liabilities; availability and cost of labour and other equipment, supplies and services; business interruption and casualty losses; the Company's ability to complete its capital programs; operating hazards and other difficulties inherent in the operation of the Company's oilfield services equipment; availability and cost of financing and insurance; access to credit facilities and debt capital markets; availability of sufficient cash flow to service and repay its debts; impairment of capital assets; the Company's ability to amend or comply with covenants under the credit facility and other debt instruments; actions by governmental authorities; impact of and changes to laws and regulations impacting the Company and the Company's customers, and the expenditures required to comply with them (including safety and environmental laws and regulations and the impact of climate change initiatives on capital and operating costs); safety performance; environmental contamination; shifting interest to alternative energy sources; environmental activism; the adequacy of the Company's provision for taxes; tax challenges; the impact of, and the Company's response to future pandemics; workforce and reliance on key management; technology; cybersecurity risks; seasonality and weather risks; risks associated with acquisitions and ability to successfully integrate acquisitions; risks associated with internal controls over financial reporting; the impact of the ongoing hostilities in the Middle East and between Ukraine and the Russian Federation and the global community responses thereto; the economic and tariff policies pursued by the new United States administration, including the impact of recent United States Government pronouncements regarding imposition of global tariffs and curtailment of our customer's license to operate in Venezuela, which have recently suspend our operations in the area, along with any retaliatory policies by other governments and other risks and uncertainties affecting the Company's business, revenues and expenses. In addition, the Company's operations and levels of demand for its services have been, and at times in the future may be, affected by political risks and developments, such as tariffs, economic sanctions, expropriation, nationalization, or regime change, and by national, regional and local laws and regulations such as changes in taxes, royalties and other amounts payable to governments or governmental agencies, environmental protection regulations, pandemics, pandemic mitigation strategies and the impact thereof upon the Company, its customers and its business, ongoing hostilities in the Middle East and between Ukraine and the Russian Federation, including recent developments in discussions regarding cessation of hostilities in Ukraine and pursuit of a resolution of the dispute, related potential future impact on the supply of oil and natural gas to Europe by Russia and the impact of global community responses to the ongoing conflicts, including the impact of shipping through the Red Sea and governmental energy policies, laws, rules or regulations that limit, restrict or impede exploration, development, production, transportation or consumption of hydrocarbons and/or incentivize development, production, transportation or consumption of alternative fuel or energy sources. Should one or more of these risks or uncertainties materialize, or should any of the Company's assumptions prove incorrect, actual results from operations may vary in material respects from those expressed or implied by the forward-looking statements. The impact of any one factor on a particular forward-looking statement is not determinable with certainty as such factors are interdependent upon other factors, and the Company's course of action would depend upon its assessment of the future considering all information then available. Unpredictable or unknown factors not discussed herein could also have material adverse effects on forward-looking statements. Readers are cautioned that the lists of important factors contained herein are not exhaustive. For additional information on these and other factors that could affect the Company's business, operations or financial condition, refer to the "Risk Factors" section of the Company's Annual Information Form for the year ended December 31, 2024 available on SEDAR+ at The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained herein are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, except as required by law.
Cision Canada
13 hours ago
- Cision Canada
LUNDIN GOLD REPORTS SECOND QUARTER 2025 RESULTS
Exceptional operating performance drives record revenues and free cash flow VANCOUVER, BC, Aug. 7, 2025 /CNW/ - Lundin Gold Inc. (TSX: LUG) (Nasdaq Stockholm: LUG) (OTCQX: LUGDF) ("Lundin Gold" or the "Company") today announced its financial results for the second quarter of 2025, featuring record revenues of $453 million and net income of $197 million ($0.82 per share). Free cash flow 1 of $236 million ($0.98 per share) was driven by strong gold production of 139,433 ounces ("oz"), with 136,737 oz sold at an average realized gold price 1 of $3,361 per oz, at low cash operating costs 1 of $756 and all-in sustaining costs 1 ("AISC") of $927 per oz sold. The Company also announced cash dividends totaling $0.79 per share (approximately $190 million) comprised of the fixed quarterly dividend of $0.30 per share and the variable quarterly dividend of $0.49 per share, to be paid at the end of the third quarter. All dollar amounts are stated in US dollars unless otherwise indicated. PDF Version View PDF Ron Hochstein, President and CEO commented, "The second quarter of 2025 delivered outstanding results for Lundin Gold, featuring record revenues and record free cash flow. This was driven by excellent gold production, sales, and a robust realized gold price. Our mill achieved impressive throughput of 5,064 tpd with improved recoveries, a testament to our team's operational excellence. Given this strong performance and outlook, we've elevated the lower end of our 2025 production guidance from 475,000 to 490,000 oz while maintaining the upper end at 525,000 oz. We also expect to remain within the upper end of our cash operating cost 1 and AISC 1 guidance for the year. We are confident that our continued efforts to reduce costs and improve mill throughput will allow us to offset the impact of rising gold prices on royalties and profit sharing payable to employees. As a direct result of our strong Q2 financial performance, we are pleased to declare sector leading dividends totaling $0.79 per share, comprised of both our fixed and variable components, for payment in the third quarter. This demonstrates the effectiveness of our new dividend policy in returning capital to shareholders during periods of strong free cash flow, while still allowing us to strategically invest in our long-term growth initiatives. Lundin Gold remains in a formidable financial position, poised for continued success." The following two tables provide an overview of key operating and financial results. ___________ 1 Refer to "Non-IFRS Measures" section. Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Revenues ($'000) 452,880 301,431 809,225 528,172 Income from mining operations ($'000) 314,161 171,757 547,707 284,994 Earnings before interest, taxes, depreciation, and amortization ($'000) 1 318,840 457,069 560,342 568,681 Adjusted earnings before interest, taxes, depreciation, and amortization ($'000) 1 318,840 195,401 560,342 326,857 Net income ($'000) 196,731 119,291 350,231 161,188 Basic income per share ($) 0.82 0.50 1.46 0.68 Cash provided by operating activities ($'000) 254,782 144,169 449,090 252,083 Free cash flow ($'000) 1 235,670 (123,427) 406,453 (41,168) Free cash flow per share ($) 1 0.98 (0.52) 1.69 (0.17) Average realized gold price ($/oz sold) 1 3,361 2,379 3,231 2,270 Cash operating cost ($/oz sold) 1 756 725 773 730 All-in sustaining costs ($/oz sold) 1 927 875 918 872 Adjusted earnings ($'000) 1 196,731 98,938 350,231 156,734 Adjusted earnings per share ($) 1 0.82 0.41 1.46 0.66 Dividends paid per share ($) 0.86 0.10 1.16 0.20 SECOND QUARTER HIGHLIGHTS Financial Results Gold sales totalled 136,737 oz, consisting of 89,615 oz in concentrate and 47,122 oz as doré, resulting in gross revenues of $460 million at an average realized gold price 1 of $3,361 per oz. Average realized gold price 1 was positively impacted by rising gold prices on provisionally priced gold sales which exceeded fair value estimates as at March 31, 2025. Net of treatment and refining charges, revenues for the quarter were $453 million. Average realized gold price 1 includes $3,276 per ounce of gross price received and a favourable impact of $85 per ounce from adjustments to provisionally priced sales. Cash operating costs 1 and AISC 1 were $756 and $927 per oz of gold sold, respectively. Sustaining capital expenditures 1 are expected to increase during the second half of 2025 with the continued ramp up of the fifth tailings dam raise and other site infrastructure improvement projects. The Company generated cash from operating activities of $255 million and free cash flow 1 of $236 million, or $0.98 per share, resulting in a cash balance of $493 million at June 30, 2025 following quarterly dividend and special dividend payments of $107 million and $100 million, respectively. EBITDA 1 was $319 million while income from mining operations was $314 million which, after deducting corporate, exploration, and taxes, resulted in net income of $197 million for the quarter or $0.82 per share. ___________ 1 Refer to "Non-IFRS Measures" section. Production Results The mine ramped up during the second quarter to keep pace with the mill resulting in a record 448,627 tonnes mined at an average grade of 9.3 g/t. The mill processed 460,820 tonnes at an average throughput rate of 5,064 tpd, with improved recoveries of 90.9%, achieving the process plant expansion operational targets. The average grade of ore milled was 10.4 g/t. Gold production was 139,433 oz which was comprised of 92,242 oz in concentrate and 47,191 oz as doré. Outlook As a result of the strong operating performance in the first half of the year, the Company is updating its 2025 production guidance from 475,000 to 525,000 oz to 490,000 to 525,000 oz. Due to mine sequencing, the Company expects a reduction in average head grade during the second half of the year. The Company expects its cash operating cost 1 and AISC 1 to be near the upper end of guidance of $730 to $790 and $935 to $995 per oz sold respectively. While the significant increase in gold price has led to record financial performance during the first half of 2025, it has also resulted in increased royalties and profit sharing to employees, metrics that impact cash operating cost 1 and AISC 1. Continued efforts to reduce cost and improvements to mill throughput is expected to allow the Company to remain within the upper end of its cost guidance even with average realized gold prices 1 of $3,231 per oz during the first half of 2025, compared to its guidance assumption of $2,500 per oz. Sustaining capital expenditures 1 are expected to increase over the remainder of the year and come in at the previously guided $75 to $85 million. The near-mine underground drilling program is expected to continue to advance at FDNS where the primary focus is the conversion and expansion of this new system. The surface drilling program is expected to continue to explore the recently discovered Trancaloma copper-gold porphyry mineralization, expand the mineralization along the Bonza Sur and FDN East sectors, and advance on new sectors around FDN. Seventeen rigs are currently turning across the conversion and near-mine exploration programs. The Company increased the near-mine drilling program by 18,000 metres to a minimum of 83,000 metres to accelerate the definition of near-mine targets and the conversion drilling program from 15,000 metres to approximately 25,000 metres. A minimum of 108,000 metres of drilling are planned across the conversion and near-mine drilling programs for 2025. Mine engineering work is underway on FDNS to evaluate geotechnical, mine design, metallurgical characteristics and infrastructure needs with the goal of integrating FDNS into FDN's long-term mine plan in 2026. The regional exploration program is expected to continue to focus on the unexplored large package of mineral concessions located on a highly prospective environment which hosts the Fruta del Norte deposit. This is the first year of a new three-year greenfield strategy to identify new areas for exploration drilling. The 2025 program includes a geophysical magnetic survey and a geochemical sampling program. The total estimated cost of the near-mine and regional program is $47 million for the year. This represents the largest drill program ever completed on the land package that hosts the FDN deposit. Under its dividend policy, the Company anticipates continuing to declare quarterly minimum dividends of $0.30 per share, equivalent to approximately $300 million annually based on currently issued and outstanding shares, plus a variable dividend equal to an amount based on at least 50% of the Company's normalized free cash flow, after the deduction of the fixed dividend. ___________ 1 Refer to "Non-IFRS Measures" section. Liquidity and Capital Resources At the end of June 30, 2025, the Company is in a strong financial position. As at June 30, 2025, the Company had cash of $493 million and a working capital balance of $562 million compared to cash of $349 million and a working capital balance of $459 million at December 31, 2024. The change in cash during the 2025 Period was primarily due to cash generated from operating activities of $449 million and proceeds from the exercise of stock options and anti-dilution rights totalling $17.7 million. This is offset by dividends paid of $280 million and capital expenditures of $42.6 million. Capital Expenditures Sustaining Capital Sustaining capital expenditures 1 during the second quarter were $15.9 million. Construction of the fifth raise of the tailings dam started in the second quarter with progress to date consistent with plan. Completion during the first quarter of 2026 remains as expected. Commissioning of the four additional diesel-powered generators was completed during the second quarter, and they are now operational. In the event of a power disruption from the national grid, the additional generators are expected to allow the FDN process plant to run slightly below capacity. Other projects that advanced during the quarter included improvements to the wastewater treatment plants, construction of camp and administration building, as well as enhancements to the South Portal. The 2025 conversion drilling program is focused on FDNS, located in the south portion of the FDN deposit. During the second quarter, the conversion drilling program completed approximately 7,085 metres across 50 holes with three rigs currently turning. The completed holes confirmed the mineralization continuity and indicated higher grade zones within the vein system. Some conversion drill holes also intercepted mineralized zones outside of the existing geological model. A complete table of the conversion drilling results received to date can be found in Lundin Gold's press release dated July 31, 2025. The conversion drilling program has been expanded to 25,000 metres from 15,000 metres. Health and Safety During the second quarter there were no Lost Time Incidents and no Medical Aid Incidents. The Total Recordable Incident Rate across the Company was 0.00 per 200,000 hours worked for the quarter and 0.10 for the first six months of 2025. Community Lundin Gold sponsored community projects continued to advance well in the second quarter of 2025. One of the Company's most impactful programs, run by the non-governmental organization Educación para Compartir ("EPC"), has focused on mental health and well-being in our local communities since its inception in November 2023. During the second quarter, approximately 957 counselling sessions were provided, with an intake of approximately 55 new patients. As of the end of June, the sports academy component of the program had 359 youth registered in extra-curricular activities, including English studies, basketball, soccer, dance, music and boxing. During the quarter, Lundin Gold committed to the second phase of the EPC program, which is planned to run from July 2025 to December 2026. This second phase will build on the previous phase and seek to increase its reach and impact. Engagement with El Pangui, Paquisha, Zamora, Yantzaza and Los Encuentros local governments continues to support rural road maintenance, road emergencies caused by extreme weather events, community wellbeing and regional exploration activities. During the quarter, the Company committed to several significant projects, such as improvements to the water system in El Pangui Canton and the installation and electricity network expansion in the Paquisha Canton. Lundin Gold continued to participate in the community roundtable process. Six separate thematic roundtables were held in May. Approximately 200 individuals participated in these sessions, including local vendors, local authorities and Lundin Gold personnel. Local businesses receive ongoing support from the Company, in conjunction with the Lundin Foundation. The local companies that participate in the Lundin Foundation's supplier development program continued to provide products and services to FDN, while also advancing growth strategies. The Lundin Foundation continued to support the third cohort of its successful Soy Emprendedora program. In furtherance of the Company's long-standing relationship with the Shuar Indigenous Peoples, Lundin Gold and the Lundin Foundation continued to advance the implementation of a Shuar local supplier initiative for FDN. EXPLORATION Near-Mine Exploration Program During the second quarter of 2025, the Company completed a total of 19,788 metres across 35 holes from surface and underground. The underground near mine drilling program focused on potential extensions of the FDNS deposit, which remains open for expansion in the north and along the south extensions where two underground rigs are currently turning. The underground drilling program continued to advance in the quarter at FDN East and is currently exploring the mineralization continuity in the central portion of this target. As at the date of this press release, three underground rigs are active in the near mine drilling program. In addition to the drilling programs, mine engineering work is underway on FDNS to evaluate geotechnical, mine design, metallurgical characteristics and infrastructure needs with the goal of integrating FDNS into FDN's long-term mine plan in 2026. The surface near mine drilling program advanced in the recently discovered copper-gold mineralization at the Trancaloma target, while also continuing the delineation of the Bonza Sur deposit and drilling on new sectors like the Sandia porphyry, located a few kilometres east from the FDN deposit. As at the date of this press release, 11 surface rigs are drilling, with four of them at Trancaloma, one at Sandia, one below FDN depth, one at FDN East, one at Bonza Sur, and three testing new sectors. At Trancaloma, located on the east border of Bonza Sur, the drilling program confirmed the extension of the recently discovered copper-gold porphyry mineralization. In the eastern portion of the target, the drilling program followed up on drilling results from the first quarter, extended the mineralized system along the northeastern and southwestern directions, and identified areas for further expansion. The drilling program also advanced in the western portion of Trancaloma, where another near surface copper mineralized zone was identified. At Bonza Sur, drill holes were completed along south and southeastern extensions and confirmed the deposit's continuity. In the south end of the deposit recent drilling suggests further potential for expansion along this direction. Toward the southeastern extension, the drilling program advanced along the limit with the Trancaloma porphyry. At FDN East, the surface drilling program advanced in conjunction with the underground program and continued to intercept the mineralization continuity in the central part of the target and indicated areas for further expansion potential toward the north and south direction. At FDN, directional drilling technology has been employed in the surface drilling program to enhance precision for the target testing in the deeper portions of the deposit. Throughout the program, drill holes tested the mineralization continuity at distinct depths along the central portion of FDN. The near-mine exploration program continues to advance in unexplored areas close to FDN. A systematic exploration program employing geochemical and geophysical surveys and geological mapping advanced on potential targets. At Sandia, initial drilling results revealed the occurrence of a new shallow and wide copper-gold porphyry mineralization. A table of second quarter 2025 near mine results for the FDNS, FDN East, Bonza Sur and Trancaloma and Sandia targets received to date can be found in Lundin Gold's press releases dated July 31 and August 5, 2025. Regional Exploration Program The Company advanced its multi-year regional exploration program during the second quarter of 2025. The program is expected to cover approximately 54,000 hectares on 23 of the Company's concessions along the Zamora Copper Gold Belt, a high potential geological setting which hosts the Fruta del Norte mine and several large copper gold projects. The exploration program continues to advance in the Gamora district, located 65 kilometres north of FDN and approximately four kilometres north of the Mirador copper gold mine. The Gamora district comprises multiple exploration sectors that exhibit geological features similar to those found in copper-gold porphyry systems. Geological mapping and geochemical sampling programs were completed in distinct parts of the district during the quarter and resulted in the identification of several new potential targets for further evaluation. Furthermore, exploration started at the Soberano concession, located approximately 22 kilometres southwest from the FDN Mine, where geological mapping followed by soil and rock sampling were completed. CORPORATE The Company published its 2024 Sustainability Report in April which marks its second year of transition towards aligning with the European Sustainability Reporting Standards. The Company paid dividends during the quarter as follows: A special dividend of $0.41 per share on June 9, 2025 (June 12, 2025 for shares trading on Nasdaq Stockholm) for a total of $100 million. A quarterly dividend of $0.45 per share, comprised of the fixed dividend of $0.30 per share and variable dividend of $0.15 per share, on June 25, 2025 (June 30, 2025 for shares trading on Nasdaq Stockholm) for a total of $107 million. With the release of its second quarter 2025 results, the Company has declared cash dividends totaling $0.79 per share, comprised of the fixed dividend of $0.30 per share and variable dividend of $0.49 per share, payable on September 25, 2025 (September 30, 2025 for shares trading on Nasdaq Stockholm) to shareholders of record at the close of business on September 10, 2025. Pursuant to the Company's dividend policy, the variable dividend was calculated based on 50% of the Company's normalized free cash flow, after deducting the fixed dividend paid, during the second quarter of 2025. Qualified Persons The technical information relating to Fruta del Norte contained in this press release has been reviewed and approved by Terry Smith P. Eng, Lundin Gold's COO, who is a Qualified Person in accordance with the requirements of National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101"). The disclosure of exploration information contained in this press release was prepared by Andre Oliveira Vice President, Exploration of the Company, who is a Qualified Person in accordance with the requirements of NI 43-101. Webcast and Conference Call The Company will host a conference call and webcast to discuss its results on August 8 at 5:30 a.m. PT, 8:30 a.m. ET, 2:30 p.m. CET. Conference Call Dial-In Numbers: A link to the webcast will be available on the Company's website, A replay of the conference call will be available two hours after its completion until August 15, 2025. About Lundin Gold Lundin Gold, headquartered in Vancouver, Canada, owns the Fruta del Norte gold mine in southeast Ecuador. Fruta del Norte is among the highest-grade operating gold mines in the world. The Company's board and management team have extensive expertise and are dedicated to operating Fruta del Norte responsibly. The Company operates with transparency and in accordance with international best practices. Lundin Gold is committed to delivering value to its shareholders through operational excellence and growth, while simultaneously providing economic and social benefits to impacted communities, fostering a healthy and safe workplace and minimizing the environmental impact. Furthermore, Lundin Gold is focused on continued exploration on its extensive and highly prospective land package to identify and develop new resource opportunities to ensure long-term sustainability and growth for the Company and its stakeholders. Non-IFRS Measures This news release refers to certain financial measures, such as average realized gold price per oz sold, EBITDA, adjusted EBITDA, cash operating cost per oz sold, all-in sustaining cost, sustaining capital expenditures, free cash flow, free cash flow per share, and adjusted earnings, which are not measures recognized under IFRS and do not have a standardized meaning prescribed by IFRS. These measures may differ from those made by other companies and accordingly may not be comparable to such measures as reported by other companies. These measures have been derived from the Company's financial statements because the Company believes that they are of assistance in the understanding of the results of operations and its financial position. Certain additional disclosures for these specified financial measures have been incorporated by reference and can be found on page 12 of the Company's MD&A for the year ended August 7, 2025 available on SEDAR+. Additional Information The information in this release is subject to the disclosure requirements of Lundin Gold under the EU Market Abuse Regulation. This information was publicly communicated on August 7, 2025 at 4:30 p.m. Pacific Time through the contact persons set out below. Caution Regarding Forward-Looking Information and Statements Certain of the information and statements in this press release are considered "forward-looking information" or "forward-looking statements" as those terms are defined under Canadian securities laws (collectively referred to as "forward-looking statements"). Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, identified by words or phrases such as "believes", "anticipates", "expects", "is expected", "scheduled", "estimates", "pending", "intends", "plans", "forecasts", "targets", or "hopes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "will", "should" "might", "will be taken", or "occur" and similar expressions) are not statements of historical fact and may be forward-looking statements. By their nature, forward-looking statements and information involve assumptions, inherent risks and uncertainties, many of which are difficult to predict, and are usually beyond the control of management, that could cause actual results to be materially different from those expressed by these forward-looking statements and information. Lundin Gold believes that the expectations reflected in this forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct. Forward-looking information should not be unduly relied upon. This information speaks only as of the date of this press release, and the Company will not necessarily update this information, unless required to do so by securities laws. This press release contains forward-looking information in several places, such as in statements relating to to the Company's 2025 production outlook, including estimates of gold production, grades recoveries and AISC; operating plans; expected sales receipts and cash flow forecasts; gold price; estimated capital costs and sustaining capital; estimated costs related to the Company's near-mine and regional drilling programs; the Company's ability to mitigate the impacts on its operations of a power disruption from the national grid; benefits of the Company's community programs; the Company's declaration and payment of dividends pursuant to its dividend policy; and the timing and the success of its drill program at Fruta del Norte and its other exploration activities; and estimates of Mineral Resources and Reserves at Fruta del Norte. Lundin Gold's actual results could differ materially from those anticipated. Factors that could cause actual results to differ materially from any forward-looking statement or that could have a material impact on the Company or the trading price of its shares include risks relating to: instability in Ecuador; community relations; reliability of power supply; tax changes in Ecuador; security; availability of workforce and labour relations; mining operations; waste disposal and tailings; environmental compliance; illegal mining; Mineral Reserve and Mineral Resource estimates; infrastructure; regulatory risk; government or regulatory approvals; forecasts relating to production and costs; gold price; dependence on a single mine; shortages of critical resources; climate change; exploration and development; control of Lundin Gold; dividends; information systems and cyber security; title matters and surface rights and access; health and safety; human rights; employee misconduct; measures to protect biodiversity, endangered species and critical habitats; global economic conditions; competition for new projects; key talent recruitment and retention; market price of the Company's shares; social media and reputation; insurance and uninsured risks; pandemics, epidemics or infectious disease outbreak; conflicts of interest; violation of anti-bribery and corruption laws; internal controls; claims and legal proceedings; and reclamation obligations. There can be no assurance that such statements will prove to be accurate, as Lundin Gold's actual results and future events could differ materially from those anticipated in this forward-looking information as a result of the factors discussed under the heading "Risk Factors" in the Company's Annual Information Form dated March 17, 2025 available at
