Lundin Mining (LUN) AI Stock Analysis

• Market Cap: $17.74B
• Dividend Yield: 1.28%
• Average Volume (3M): 3.02M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.98
• Revenue Growth: -16.62%
• EPS Growth: -112.03%
• Country: CA
• Employees: 6,195
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Copper
• EPS (TTM): 0.17
• Shares Outstanding: 856,100,340
• 10 Day Avg. Volume: 2,819,593
• 30 Day Avg. Volume: 3,016,728
• PEG Ratio: 0.18
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 1.95
• P/FCF Ratio: 9.38
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 3.95
• Enterprise Value/Gross Profit: 8.66
• Enterprise Value/Ebitda: 11.22
• 1Y Price Target: $22.27
• Price Target Upside: 8.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 68 Neutral
• Price Target: C$22.50 ▲(9.92% Upside)

Lundin Mining's overall stock score is driven by strong technical indicators and a positive earnings call, highlighting operational efficiency and debt reduction. However, the valuation is a concern due to a negative P/E ratio, and financial performance is challenged by low profitability and declining cash flow growth. The company's stable financial position and bullish technical trend provide a balanced outlook.

Positive Factors

Debt Reduction

Significant debt reduction enhances financial flexibility and reduces interest expenses, improving long-term financial stability and enabling future investments.

Sustainability Progress

Meeting sustainability targets early positions the company as a responsible operator, potentially attracting ESG-focused investors and reducing regulatory risks.

Cost Efficiency

Lower production costs improve margins and competitiveness, allowing the company to withstand price fluctuations and maintain profitability.

Negative Factors

Revenue Decline

Declining revenue growth may signal challenges in market demand or pricing, potentially impacting long-term profitability and market position.

Free Cash Flow Decline

Decreasing free cash flow can constrain the company's ability to fund operations and investments, affecting future growth and financial health.

Profitability Challenges

Low profitability limits the company's ability to reinvest in growth opportunities and may affect its competitive edge in the long term.

Lundin Mining Business Overview & Revenue Model

Company Description

Lundin Mining Corporation, a diversified base metals mining company, engages in the exploration, development, and mining of mineral properties in Brazil, Chile, Portugal, Sweden, and the United States. It primarily produces copper, zinc, nickel, and gold, as well as lead, silver, and other metals. The company holds 100% interests in the Chapada mine located in Brazil; the Neves-Corvo mine located in Portugal; the Eagle mine located in the United States; and the Zinkgruvan mine located in Sweden. It also holds 80% interests in the Candelaria and Ojos del Salado mining complex located in Chile. The company was formerly known as South Atlantic Ventures Ltd. and changed its name to Lundin Mining Corporation in August 2004. Lundin Mining Corporation was incorporated in 1994 and is headquartered in Toronto, Canada.

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	3.63B	3.42B	2.74B	3.04B	3.33B	2.04B
Gross Profit	1.66B	1.51B	1.10B	1.32B	1.89B	945.60M
EBITDA	1.28B	1.15B	828.28M	974.80M	1.64B	691.31M
Net Income	13.81M	-203.53M	241.56M	426.85M	780.35M	168.80M
Balance Sheet
Total Assets	9.85B	10.40B	10.78B	8.25B	7.57B	7.04B
Cash, Cash Equivalents and Short-Term Investments	278.71M	407.34M	266.86M	193.26M	588.48M	141.16M
Total Debt	653.61M	2.00B	1.48B	199.26M	30.71M	202.64M
Total Liabilities	2.98B	4.89B	4.41B	2.77B	2.62B	2.56B
Stockholders Equity	5.74B	4.42B	4.93B	4.91B	4.40B	3.97B
Cash Flow
Free Cash Flow	549.76M	579.24M	114.49M	40.96M	961.85M	146.30M
Operating Cash Flow	1.17B	1.35B	985.52M	858.78M	1.49B	599.40M
Investing Cash Flow	540.05M	-973.92M	-1.71B	-1.00B	-543.45M	-459.03M
Financing Cash Flow	-1.89B	-214.19M	798.47M	-234.66M	-481.13M	-237.06M

Lundin Mining Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 20.47 is below the 20-day moving average (MA) of 20.93, above the 50-day MA of 18.09, and above the 200-day MA of 14.02, indicating a neutral trend. The MACD of 0.86 indicates Positive momentum. The RSI at 54.81 is Neutral, neither overbought nor oversold. The STOCH value of 15.87 is Positive, 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
HBM	74 Outperform	$8.44B	20.83	10.81%	0.09%	11.90%	221.39%
ERO	71 Outperform	$3.01B	14.84	19.31%	―	24.05%	―
LUN	68 Neutral	$17.74B	―	2.61%	1.28%	-16.62%	-112.03%
CS	65 Neutral	$8.39B	80.80	2.51%	―	42.07%	―
FM	65 Neutral	$24.88B	88.64	1.79%	―	-7.46%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
TKO	55 Neutral	$1.73B	―	-5.19%	―	0.10%	-135.33%

Lundin Mining Corporate Events

Lundin Mining Pre-Announces Third Quarter 2025 Financial Impacts

Lundin Mining has announced preliminary items affecting its third-quarter 2025 results, highlighting a positive impact on revenue due to provisional pricing adjustments on prior copper and gold sales, amounting to approximately $11 million. However, a shipment delay of copper concentrate due to weather issues will defer some revenue to the fourth quarter, while a non-cash unrealized loss of $26 million is expected due to rising gold prices affecting derivative contracts.

The most recent analyst rating on (TSE:LUN) stock is a Buy with a C$23.50 price target. To see the full list of analyst forecasts on Lundin Mining stock, see the TSE:LUN Stock Forecast page.

Lundin Mining Updates Share Capital and Buyback Progress

Lundin Mining has announced an update to its share capital, with an increase in the number of issued and outstanding shares to 856,468,476 as of September 30, 2025, due to the exercise of employee stock options and vesting of employee share units. The company has also provided an update on its share buyback program, stating that it has acquired 12,629,000 common shares at a cost of approximately US$104 million in 2025, under its commitment to allocate up to US$150 million annually for buybacks.

The most recent analyst rating on (TSE:LUN) stock is a Buy with a C$20.00 price target. To see the full list of analyst forecasts on Lundin Mining stock, see the TSE:LUN Stock Forecast page.

Lundin Mining Appoints New CEO for Vicuña Corp

Lundin Mining Corporation announced the appointment of Ron Hochstein as the new Chief Executive Officer of Vicuña Corp, a joint venture with BHP. Hochstein brings over 30 years of experience in the mining sector, having previously led the successful development of the Fruta del Norte gold mine in Ecuador. His leadership is expected to enhance the Vicuña Project’s development, focusing on stakeholder engagement and advancing the mega project in Argentina.

Lundin Mining to Undertake Remediation After Alcaparrosa Mine Sinkhole

Lundin Mining has been mandated by the Chilean State Defense Council to undertake remediation activities following a sinkhole incident at its Alcaparrosa mine in July 2022. These activities include backfilling the sinkhole, aquifer recharge, and enhancing water systems in nearby communities. The Alcaparrosa mine operations remain suspended, but the company’s Candelaria operation is unaffected and is projected to produce significant copper output in 2025.

Lundin Mining Updates Share Capital and Buyback Progress

Lundin Mining announced an update on its share capital and share buyback activities. The company reported an increase in its issued and outstanding shares due to employee stock options and share units, while also detailing its ongoing commitment to share buybacks, having acquired 12,629,000 shares at a cost of approximately US$104 million in 2025.

Lundin Mining’s Strong Earnings Call Highlights Growth

Lundin Mining Corp’s recent earnings call conveyed a strong and optimistic sentiment, highlighting significant achievements in both financial and operational domains. The company reported robust production numbers and sustainability milestones, alongside effective debt reduction strategies. Despite facing some operational challenges, such as downtime at Caserones and increased capital expenditure, Lundin Mining remains positive about its strategic growth initiatives moving forward.

Lundin Mining Reports Strong Q2 2025 Results

Lundin Mining Corporation is a Canadian-based diversified mining company primarily focused on producing copper, gold, and nickel, with operations in Argentina, Brazil, Chile, and the United States. The company is known for its strategic growth initiatives and commitment to sustainability.

Lundin Mining Reports Robust Q2 2025 Results and Strategic Growth Plans

Lundin Mining reported strong second quarter 2025 results, with over $930 million in revenue and significant free cash flow. The company achieved record safety performance and reduced its net debt through the sale of European assets. Lundin Mining is on track with its production guidance and continues to focus on growth, aiming to become a top-ten global copper producer. The company also highlighted its commitment to sustainability and shareholder returns through dividends and share buybacks.

Lundin Mining Declares Quarterly Dividend

Lundin Mining announced a regular quarterly dividend of CAD $0.0275 per share, payable on September 24, 2025, to shareholders of record on September 5, 2025. This move reflects the company’s commitment to returning value to shareholders, with dividends on shares traded on the Toronto Stock Exchange paid in CAD and those on Nasdaq Stockholm paid in Swedish kronor. The announcement may impact the company’s financial performance and shareholder relations positively.

Lundin Mining Updates Share Capital and Buyback Progress

Lundin Mining has announced an update to its share capital, with an increase in issued and outstanding shares to 856,000,994 due to the exercise of employee stock options or the vesting of employee share units. The company has not purchased any shares for cancellation under its Normal Course Issuer Bid (NCIB) program, although it has acquired 12,629,000 common shares at a cost of approximately US$104 million as part of its commitment to allocate up to US$150 million in annual share buybacks.