Lundin Mining is, as most people know, a Canadian mining company with a focus on copper production in South America. The company is listed both in Canada and on the Large Cap in Sweden.
I am a proponent of owning Lunding Mining for the long term. Sure, it’s not a great dividend stock, but there’s still a lot else in the company. First and foremost, I believe that copper will be a much more important resource in the future than it is today. I know many people disagree.
Just like in some other cases, I have caught the falling knife for a while in Lunding Mining. My thesis was that it would take quite a while for the share to recover but that Lundin could still create fantastic results in the long term thanks to their awesome track record in the industry. The price tag had gone up a bit since the calm after the Trump campaign had subsided.
Then came the news recently that Freeport (another mining company, major producer of copper and gold) is pausing production at the Grasberg mine in Indonesia. Apparently an accident occurred there a couple of weeks ago. Of course, this will reduce the supply of copper in the near future (expected production recover to normalized levels (before accident) by 2027) and then other players like Lundin should benefit.
There’s really nothing more to say other than that the copper price rose 3% on the news.
Looking at Lunding Mining, a lot is about how well their investment in the Vicuña district is going. This is located in the Andes on the border between Argentina and Chile. If this succeeds, we will have a nice upside if the price of copper does not drop.
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