Lundin Mining (LUN) AI Stock Analysis

• Market Cap: $13.97B
• Dividend Yield: 1.61%
• Average Volume (3M): 1.99M
• Price to Earnings (P/E): 25.6
• Beta (1Y): 1.96
• Revenue Growth: -16.62%
• EPS Growth: -112.03%
• Country: CA
• Employees: 6,195
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Copper
• EPS (TTM): 0.17
• Shares Outstanding: 856,001,000
• 10 Day Avg. Volume: 1,875,979
• 30 Day Avg. Volume: 1,992,280
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 4.35
• Enterprise Value/Gross Profit: 13.56
• Enterprise Value/Ebitda: 12.37
• 1Y Price Target: $17.18
• Price Target Upside: 4.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 67 Neutral
• Price Target: C$16.50 ▲(0.61% Upside)

Lundin Mining's overall stock score is driven by its strong operational performance and positive technical indicators, despite challenges in valuation and profitability. The earnings call highlighted significant achievements in production and sustainability, which are offset by concerns over profitability and CapEx challenges.

Lundin Mining Business Overview & Revenue Model

Company Description

Lundin Mining Corporation is a Canadian-based base metals mining company engaged in the exploration, development, and production of mineral properties. Operating primarily in the Americas and Europe, Lundin Mining focuses on the extraction of copper, nickel, zinc, and precious metals. The company owns several high-quality mining operations, including the Candelaria and Ojos del Salado mines in Chile, the Neves-Corvo mine in Portugal, and the Eagle mine in the United States, positioning itself as a key player in the global mining sector.

How the Company Makes Money

Lundin Mining generates revenue primarily through the sale of base metals, including copper, zinc, nickel, and precious metals like gold and silver. The company operates on a revenue model based on the extraction and sale of these minerals at market prices. Key revenue streams include the direct sale of concentrates and metals to industrial consumers and trading firms. Additionally, Lundin Mining benefits from long-term contracts with various customers, which helps stabilize revenue. The company has also engaged in strategic partnerships and joint ventures that enhance its operational capabilities and access to new markets, contributing to its overall earnings. Factors influencing its revenues include global commodity prices, production levels, operational efficiency, and geopolitical stability in its operating regions.

Lundin Mining Financial Statement Overview

Summary

Lundin Mining demonstrates a stable financial position with strong equity and efficient cost management. However, challenges in revenue growth and profitability are evident, as reflected in the low net profit margin and recent decline in free cash flow growth. Despite these challenges, the company maintains low leverage and a strong capital structure, providing financial stability.

Income Statement

Lundin Mining's income statement shows mixed performance. The TTM data indicates a slight decline in revenue growth at -4.24%, reflecting potential challenges in market demand or pricing. However, the company maintains a stable gross profit margin of 32.04% and an EBIT margin of 19.29%, indicating efficient cost management. The net profit margin is low at 0.42%, suggesting limited profitability. Historical data shows fluctuating revenue growth and margins, with a notable peak in 2021. Overall, the company demonstrates resilience but faces profitability challenges.

Balance Sheet

The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.11 in the TTM period, indicating low leverage and financial stability. The return on equity is modest at 0.27%, suggesting limited returns on shareholder investments. The equity ratio is healthy, showing a strong capital structure. Historical data indicates a consistent increase in stockholders' equity, enhancing financial resilience. However, the company should focus on improving ROE for better shareholder value.

Cash Flow

Lundin Mining's cash flow statement reveals a decline in free cash flow growth at -7.84% in the TTM period, indicating potential cash generation challenges. The operating cash flow to net income ratio is strong at 1.24, suggesting efficient cash conversion from operations. The free cash flow to net income ratio is 0.52, reflecting moderate cash flow generation relative to net income. Historical data shows fluctuating free cash flow growth, with a peak in 2021. The company maintains solid cash flow management but should address the recent decline in free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.30B	3.42B	2.74B	3.04B	3.33B	2.04B
Gross Profit	1.06B	942.86M	601.53M	762.57M	1.37B	498.12M
EBITDA	1.16B	1.12B	1.05B	1.16B	1.78B	801.27M
Net Income	13.84M	-203.53M	241.56M	426.85M	780.35M	168.80M
Balance Sheet
Total Assets	9.87B	10.41B	10.86B	8.17B	7.64B	7.06B
Cash, Cash Equivalents and Short-Term Investments	279.30M	407.58M	268.79M	191.39M	594.07M	141.45M
Total Debt	655.00M	2.01B	1.76B	197.33M	31.00M	203.05M
Total Liabilities	2.99B	4.89B	4.44B	2.75B	2.64B	2.56B
Stockholders Equity	5.76B	4.42B	4.96B	4.86B	4.45B	3.98B
Cash Flow
Free Cash Flow	660.73M	711.55M	159.47M	33.99M	952.86M	134.65M
Operating Cash Flow	1.27B	1.52B	1.02B	876.89M	1.48B	565.89M
Investing Cash Flow	516.13M	-1.01B	-1.67B	-1.01B	-520.01M	-420.98M
Financing Cash Flow	-1.96B	-344.23M	728.59M	-251.63M	-496.64M	-236.93M

Lundin Mining Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LUN, the sentiment is Positive. The current price of 16.4 is above the 20-day moving average (MA) of 15.83, above the 50-day MA of 14.95, and above the 200-day MA of 13.03, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 62.76 is Neutral, neither overbought nor oversold. The STOCH value of 51.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:LUN.

Lundin Mining Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LUN	67 Neutral	$13.97B	25.63	2.61%	1.61%	-16.62%	-112.03%
Sector *	61 Neutral	$10.48B	7.30	-0.05%	2.85%	2.87%	-36.73%
HBM	―	$5.33B	18.38	10.81%	0.10%	―	―
TGB	―	$1.08B	10.75	-5.19%	―	―	―
CSCCF	―	$5.60B	73.77	2.51%	―	―	―
ERO	―	$1.68B	11.79	19.31%	―	―	―
FQVLF	―	$15.24B	75.31	1.79%	―	―	―

Lundin Mining Corporate Events

Lundin Mining Unveils Major Resource Estimate at Filo del Sol

Lundin Mining has announced a significant milestone with the initial Mineral Resource estimate for the Filo del Sol sulphide deposit, highlighting its potential as one of the largest copper, gold, and silver resources globally. This discovery, part of the Vicuña district, positions the company to develop a world-class mining complex, with substantial high-grade mineralization and expansion potential, enhancing its market positioning and long-term value for stakeholders.