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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 Pete1986on Dec 11, 2021 6:22am
143 Views
Post# 34221314

RE:Resource nationalism

RE:Resource nationalismWell, I don't see the politial situation in Ecuador as an issue. FDN mine is running and both the tax and the permitting sitatuion look pretty good. 

There are many other develeopers/producers in"tier 1" jurisdications which sufferd pretty much the last couple of weeks as well, e.g. Sabina Gold, Victoria Gold, New Found Gold,...
And also check out Kinross, they just bought a "tier 1 jurisdication" project but got sold off recently. 
And if we talk about Filo Mining, they develop a project in Chile and Argentina. They sill did not even start to build the mine and their current market cap is 1.4 billion CAD. They do a great job and they create lots of shareholder value, but location is not an issue. So your tier 2/3 jurisdication argument is not really consistent. 

We should also take into consideration the financial numbers
EPS in FY2021 will be between 1 and 1.2 USD. So even if we take the lower end of the range, current P/E ratio is gonna about around 7. Then there is huge free cash flow and many other great fincancial numbers. And we are talking about a world class project (top 3 around the world) which got huge upside potentail. 
So lots of value drivers to come, however, the market somehow totaly ignors the value. The question is whats the reason. I assume Newcrest andd/or the Lundins are selling. Maybe they need some cash to invest somewhere else. Maybe its also related to tax loss selling, who knows. All we know is this one of the top3 gold projects world wide but the market don't give any love to it. 
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