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LUG

Lundin GoldTSX:LUG Stock Report

Market Cap

CA$2.3b

7D

0.4%

1Y

-12.6%

Updated

01 Dec, 2021

Data

Company Financials +
LUG fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance4/6
Financial Health3/6
Dividends0/6

LUG Stock Overview

Lundin Gold Inc. operates as a mining company in Canada.

Lundin Gold Competitors

Endeavour Mining

TSX:EDV

CA$7.5b

Centerra Gold

TSX:CG

CA$2.7b

Dundee Precious Metals

TSX:DPM

CA$1.5b

Perseus Mining

ASX:PRU

AU$2.1b

Price History & Performance

Summary of all time highs, changes and price drops for Lundin Gold
Historical stock prices
Current Share PriceCA$10.41
52 Week HighCA$12.93
52 Week LowCA$9.11
Beta1.06
1 Month Change-8.12%
3 Month Change-7.71%
1 Year Change-12.59%
3 Year Change117.33%
5 Year Change93.14%
Change since IPO-81.10%

Recent News & Updates

Sep 26
Here's Why Lundin Gold (TSE:LUG) Can Manage Its Debt Responsibly

Here's Why Lundin Gold (TSE:LUG) Can Manage Its Debt Responsibly

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Sep 08
A Look At The Intrinsic Value Of Lundin Gold Inc. (TSE:LUG)

A Look At The Intrinsic Value Of Lundin Gold Inc. (TSE:LUG)

Does the September share price for Lundin Gold Inc. ( TSE:LUG ) reflect what it's really worth? Today, we will estimate...

Shareholder Returns

LUGCA Metals and MiningCA Market
7D0.4%-2.4%-1.3%
1Y-12.6%5.8%23.7%

Return vs Industry: LUG underperformed the Canadian Metals and Mining industry which returned 5.6% over the past year.

Return vs Market: LUG underperformed the Canadian Market which returned 21.9% over the past year.

Price Volatility

Is LUG's price volatile compared to industry and market?
LUG volatility
LUG Average Weekly Movement5.3%
Metals and Mining Industry Average Movement10.7%
Market Average Movement9.4%
10% most volatile stocks in CA Market17.1%
10% least volatile stocks in CA Market3.5%

Stable Share Price: LUG is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: LUG's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1986n/aRon Hochsteinhttps://www.lundingold.com

Lundin Gold Inc. operates as a mining company in Canada. The company holds interests in 29 metallic mineral concessions and three materials concessions covering an area of approximately 64,609 hectares located in Southeast Ecuador. It primary holds interests in the Fruta del Norte gold project that comprises seven concessions covering an area of approximately 5,566 hectares located near the city of Loja in Ecuador.

Lundin Gold Fundamentals Summary

How do Lundin Gold's earnings and revenue compare to its market cap?
LUG fundamental statistics
Market CapUS$1.83b
Earnings (TTM)US$191.40m
Revenue (TTM)US$736.14m

9.9x

P/E Ratio

2.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LUG income statement (TTM)
RevenueUS$736.14m
Cost of RevenueUS$273.23m
Gross ProfitUS$462.91m
ExpensesUS$271.51m
EarningsUS$191.40m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.82
Gross Margin62.88%
Net Profit Margin26.00%
Debt/Equity Ratio95.4%

How did LUG perform over the long term?

See historical performance and comparison

Valuation

Is Lundin Gold undervalued compared to its fair value and its price relative to the market?

26.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LUG (CA$10.06) is trading below our estimate of fair value (CA$14.17)

Significantly Below Fair Value: LUG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LUG is good value based on its PE Ratio (9.6x) compared to the Canadian Metals and Mining industry average (9.8x).

PE vs Market: LUG is good value based on its PE Ratio (9.6x) compared to the Canadian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: LUG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: LUG is good value based on its PB Ratio (2.3x) compared to the CA Metals and Mining industry average (2.4x).


Future Growth

How is Lundin Gold forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-31.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LUG's earnings are forecast to decline over the next 3 years (-31.7% per year).

Earnings vs Market: LUG's earnings are forecast to decline over the next 3 years (-31.7% per year).

High Growth Earnings: LUG's earnings are forecast to decline over the next 3 years.

Revenue vs Market: LUG's revenue is expected to decline over the next 3 years (-6.9% per year).

High Growth Revenue: LUG's revenue is forecast to decline over the next 3 years (-6.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LUG's Return on Equity is forecast to be low in 3 years time (7.9%).


Past Performance

How has Lundin Gold performed over the past 5 years?

26.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LUG has high quality earnings.

Growing Profit Margin: LUG became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: LUG has become profitable over the past 5 years, growing earnings by 26.8% per year.

Accelerating Growth: LUG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: LUG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (126.9%).


Return on Equity

High ROE: LUG's Return on Equity (24.4%) is considered high.


Financial Health

How is Lundin Gold's financial position?


Financial Position Analysis

Short Term Liabilities: LUG's short term assets ($457.9M) exceed its short term liabilities ($321.8M).

Long Term Liabilities: LUG's short term assets ($457.9M) do not cover its long term liabilities ($524.3M).


Debt to Equity History and Analysis

Debt Level: LUG's net debt to equity ratio (67.2%) is considered high.

Reducing Debt: Insufficient data to determine if LUG's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: LUG's debt is well covered by operating cash flow (54.1%).

Interest Coverage: LUG's interest payments on its debt are well covered by EBIT (8.4x coverage).


Balance Sheet


Dividend

What is Lundin Gold current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate LUG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate LUG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LUG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LUG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LUG's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.8yrs

Average management tenure


CEO

Ron Hochstein (60 yo)

6.92yrs

Tenure

US$2,340,292

Compensation

Mr. Ronald F. Hochstein, also known as Ron, MBA, P.Eng., B.Sc. (Mineral Process Engineering), serves as an Independent Chairman of the Board of Directors of Denison Mines Corp. since May 2021. He has been...


CEO Compensation Analysis

Compensation vs Market: Ron's total compensation ($USD2.34M) is about average for companies of similar size in the Canadian market ($USD1.96M).

Compensation vs Earnings: Ron's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: LUG's management team is seasoned and experienced (5.8 years average tenure).


Board Members

Experienced Board: LUG's board of directors are considered experienced (6.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lundin Gold Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Lundin Gold Inc.
  • Ticker: LUG
  • Exchange: TSX
  • Founded: 1986
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$2.348b
  • Shares outstanding: 233.36m
  • Website: https://www.lundingold.com

Number of Employees


Location

  • Lundin Gold Inc.
  • 885 West Georgia Street
  • Suite 2000
  • Vancouver
  • British Columbia
  • V6C 3E8
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/01 00:02
End of Day Share Price2021/11/30 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.