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Lundin Mining Corporation (LUN.TO)

Toronto - Toronto Real Time Price. Currency in CAD
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10.38-0.05 (-0.48%)
At close: 04:00PM EST
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  • J
    Jazenevc
    Production guidance looks solid. Copper output trends higher. Candelaria expansion confirmed; apparently, the company waited for Chilean elections.
    Share price is substantially undervalued, imho, taking into account decrease of Chilean political risks. Today’s drop in share price in Sweden can present a buying opportunity later in Canada/US.
  • h
    hugh
    Lundin, at years beginning, announced that they would access high grade copper deposits in the second half of the year and combined with higher gold/nickel/copper prices lundin should announce a significant beat in the last quarter which seems to be flying by.
  • J
    Jazenevc
    Today’s drop likely caused by two reasons. Firstly, new guidance for Candelaria assumes some production increase in 2022-24. However, it is still visibly lower than it was assumed in past guidances, before the company got in operational problems at Candelaria, this year. Secondly, Canaccord analyst downgraded to Neutral, probably because of the guidance.
    In my opinion, the stock is undervalued and this drop is a buying opportunity. I bought shares at opening. Copper market is strong while Chilean political risks diminished.
  • J
    Jazenevc
    I have found notes regarding Canaccord downgrade in Swedish press
    Start of quote (google translated from Swedish)
    Lundin Mining's new production and cost forecasts are generally negative compared with expectations and the assessment is that these do not inspire much confidence in the company. This is what the Canadian investment bank Canaccord Genuity writes in an analysis where the recommendation for Lundin Mining is lowered to hold from purchases with a reduced target price to 10:50 Canadian dollars (12:50), which Nyhetsbyrån Direkt previously reported. The bank points out that the production forecasts for all of Lundin Mining's four key assets were lower than expected for all years, 2023-2024. The mining company's guidance for capex 2022, on the other hand, was 22 percent above Canaccord's estimate.
    End of quote
    It seems, the analyst does not like the company management, disclosing things not quite compatible with his rosy expectations before.
  • J
    Jazenevc
    Chilean elections results are better than expected in pro-mining interpretation. It likely indicates that Lundin remains in Chile and Candelaria will be expanded. It also means that the stock is really undervalued.
  • J
    Jazenevc
    Chinese announced upcoming stoppage of Las Bambas copper mine in Peru, one of the largest mines. The reason is government inability to pacify anti-mining protesters. Mining situation in Peru worsens daily and it will provide big push to copper prices.
  • J
    Joe
    why dont they up list off pinks ??
  • J
    Jazenevc
    It can be added to today’s discussion that Chilean senate shelved until elections the anti-mining law voted in by Chilean house. In newly elected senate pro-business parties secured majority. If Chilean taxes stay the same as now, then Lundin shares are undervalued, because copper price is already at levels never seen before and forward guidance is strong. Lundin will still produce good amount of very valuable copper, even with new guidance. As long as company profits are not stolen, it is a buy. The only remaining uncertainty is second-round of presidential elections coming in December. Preliminarily, pro-business candidate is in strong position to win.
  • h
    hugh
    Good news report from the company tonight. The mention of share buyback again is a very positive sign. It looks like increased production and efficiency across the board except for nickel. Tomorrow and for the rest of the quarter should be quite positive for our shares!
  • J
    Joe
    dividend coming up ... buy before the ex date .
  • h
    hugh
    So…I understand that josemaria is approximately 120 miles from candelaria…just on the other side of the border..that’s quite positive , practical , and efficient! They say it’s destined to be one of the largest copper deposits in the world. Quite interesting scenario…
  • J
    Jazenevc
    Mining press posted bunch of articles last week, conveying the same message: “Lundin Mining Group” finalized decision to invest $4.2B in Josemaria copper project in Argentina. These articles are result of the meeting that Adam Lundin, CEO of Josemaria Resources had last week with the President of Argentina Alberto Fernandez.
    Certainly, “Lundin Mining Group” referred in the articles is not the same as Lundin Mining company. However, Lundin family owns 39% of Josemaria and it can steer, if decides it expedient, Josemaria to merge with Lundin Mining. It could become even more realistic if impending elections in Chile confirm anti-mining shift in the country politics. The company has big investment plans on hold now: either invest in Candelaria expansion or go to invest outside of Chile. The family effective control of both Lundin Mining and Josemaria opens way for relatively smooth and economic way to go out of Chile.
  • J
    Jazenevc
    Maintained as Market Perform at BMO Capital. Price target reduced from C$16.50 to C$15.00
  • J
    Joe
    what percentage of gold do they mine overall ?
  • h
    hugh
    It certainly helps that in the past few days the company added another billion dollars to its core value with gold rising by over $50. And should add close to an extra 8-10 million dollars to its next quarterly revenue!
  • h
    hugh
    I love this company and hope that they focus on a share buyback. They’ve repeatedly focused on shareholder support and value and the combined 6% dividend supports that. A buyback will increase earnings per share without increasing production. If future production increases, then earnings per share will be furtherly attractive. I wouldn’t think that they would focus on buying another miner at these full value prices, especially when they can buy Josemaria from Adam and keep it in the family. An analyst (drama queen) or two tried to emphasize an unstable political environment in Chile to no avail and this company just churns out huge cash with no debt. It’s undervalued and the quarterly report should be further evidence of that, in my opinion.
  • A
    Andy
    Any news driving the drop today? Copper up 1% to 1 week highs despite strong dollar.
  • H
    Harjit
    I am a novice at investing. Why is the market reaction negative. Did I miss something with the report? They are showing profit.
  • A
    Al
    green
  • S
    SameTousy
    Numbers look reasonable & above target EPS, debt reduced, 4th qrt # have lots of upside & year end looks Golden! I'm holding.....