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Lundin Gold Inc T.LUG

Alternate Symbol(s):  LUGDF

Lundin Gold Inc. is a Canada-based mining company. The Company owns the Fruta del Norte gold mine in southeast Ecuador and a large exploration land package that hosts the Fruta del Norte deposit at its northern edge. The deposit is hosted in the La Zarza concession, located in the 38 square kilometers (km2) Suarez Pull-Apart Basin. Fruta del Norte deposit is located within a 150 kilometers (km) long copper-gold metallogenic sub-province in the Cordillera del Condor region in southeastern Ecuador. The Company’s properties in Southeast Ecuador consists of over 28 metallic mineral concessions and three construction materials concessions covering an area of approximately 64,454 hectares. From this, Fruta del Norte is comprised of seven concessions covering an area of approximately 5,566 hectares and is located approximately 142 km east-northeast of the City of Loja in southeastern Ecuador. Fruta del Norte deposit is an intermediate sulphidation epithermal gold-silver deposit.


TSX:LUG - Post by User

Comment by Retiredgeoon Dec 17, 2020 4:27pm
155 Views
Post# 32130776

RE:RE:RE:RE:RE:SLUGGY

RE:RE:RE:RE:RE:SLUGGYReason 1 - It is in Equador and that scares a lot of would be investors.  If this mine was in Canada LUG would be double where it is now.
Reason 2 - it is a boring industrial stock with known metrics.
Reason 3 - it is the end of year and portfolios are being readjusted.  Those who don't believe in gold in 2021 are selling.  Those who have already made a good profit on LUG might be moving on.
Reason 4 - It is still officially tax loss season.
Reason 5 - It is paying down debt - how truly boring!
Reason 6 - It doesn't pay a dividend (yet).
Reason 7 - it is tightly held with over 80% locked up by the top ten investors.  That makes it a lightly traded stock.  It is difficult for funds to buy and flip stocks with weak floats.
Reason 8 - the exploration programme hasn't started yet, just boring mine drilling.
Reason 9 - the recent collapse in the price of Gold has spooked some would be investors
Reason 10 - like all Gold stocks it is facing competition from high tech, big pharma, cryptocurrencies etc.  There is always more flash for the buck somewhere else.

On the flip side it is a $billion/year gold mine spitting out $600 million/year in profit.  For long term investors, like me, it is a no brainer - buy and hold baby!  I am predicting $20/share by mid 2022, if not before.  I am predicting $40/share within 5 years.  I can wait.


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