TSX:LUN

Stock Analysis Report

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Executive Summary

Lundin Mining Corporation, a diversified base metals mining company, engages in the exploration, development, and mining of mineral properties in Chile, Brazil, the United States, Portugal, and Sweden. More Details


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Lundin Mining's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LUN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.6%

LUN

-2.5%

CA Metals and Mining

-0.9%

CA Market


1 Year Return

18.3%

LUN

54.2%

CA Metals and Mining

-4.2%

CA Market

Return vs Industry: LUN underperformed the Canadian Metals and Mining industry which returned 54.2% over the past year.

Return vs Market: LUN exceeded the Canadian Market which returned -4.2% over the past year.


Shareholder returns

LUNIndustryMarket
7 Day4.6%-2.5%-0.9%
30 Day0.6%-4.0%1.2%
90 Day-0.7%-2.3%1.4%
1 Year21.1%18.3%55.4%54.2%-0.7%-4.2%
3 Year-13.8%-18.7%51.9%48.8%6.6%-3.8%
5 Year90.9%78.0%140.6%133.2%34.2%13.5%

Price Volatility Vs. Market

How volatile is Lundin Mining's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LUN (CA$8.01) is trading below our estimate of fair value (CA$17.38)

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


Price To Earnings Ratio

PE vs Industry: LUN is poor value based on its PE Ratio (88.5x) compared to the CA Metals and Mining industry average (23.8x).

PE vs Market: LUN is poor value based on its PE Ratio (88.5x) compared to the Canadian market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: LUN is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: LUN is good value based on its PB Ratio (1.2x) compared to the CA Metals and Mining industry average (2.8x).


Next Steps

Future Growth

How is Lundin Mining forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

38.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LUN's forecast earnings growth (38% per year) is above the savings rate (1.7%).

Earnings vs Market: LUN's earnings (38% per year) are forecast to grow faster than the Canadian market (21.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LUN's revenue (9.2% per year) is forecast to grow faster than the Canadian market (5.8% per year).

High Growth Revenue: LUN's revenue (9.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LUN's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has Lundin Mining performed over the past 5 years?

27.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LUN has high quality earnings.

Growing Profit Margin: LUN's current net profit margins (2.5%) are lower than last year (5.1%).


Past Earnings Growth Analysis

Earnings Trend: LUN's earnings have grown significantly by 27.6% per year over the past 5 years.

Accelerating Growth: LUN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LUN had negative earnings growth (-36.6%) over the past year, making it difficult to compare to the Metals and Mining industry average (78.5%).


Return on Equity

High ROE: LUN's Return on Equity (1.7%) is considered low.


Next Steps

Financial Health

How is Lundin Mining's financial position?


Financial Position Analysis

Short Term Liabilities: LUN's short term assets ($953.7M) exceed its short term liabilities ($590.0M).

Long Term Liabilities: LUN's short term assets ($953.7M) do not cover its long term liabilities ($2.2B).


Debt to Equity History and Analysis

Debt Level: LUN's debt to equity ratio (11.1%) is considered satisfactory.

Reducing Debt: LUN's debt to equity ratio has reduced from 21% to 11.1% over the past 5 years.

Debt Coverage: LUN's debt is well covered by operating cash flow (90.2%).

Interest Coverage: LUN's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet


Next Steps

Dividend

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

1.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LUN's dividend (1.95%) is higher than the bottom 25% of dividend payers in the Canadian market (1.69%).

High Dividend: LUN's dividend (1.95%) is low compared to the top 25% of dividend payers in the Canadian market (5.78%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, LUN has been paying a dividend for less than 10 years.

Growing Dividend: LUN's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (153%), LUN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LUN's dividends in 3 years are forecast to be well covered by earnings (17.2% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Marie Inkster (48 yo)

2.08yrs

Tenure

US$3,585,353

Compensation

Ms. Marie Inkster is President and Chief Executive Officer of Lundin Mining Corporation since September 30, 2018 and has been its Director since September 30, 2018. She was Chief Financial Officer of Lundi ...


CEO Compensation Analysis

Compensation vs Market: Marie's total compensation ($USD3.59M) is about average for companies of similar size in the Canadian market ($USD3.03M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Marie Inkster
President2.08yrsUS$3.59m0.058%
$ 3.4m
Jinhee Magie
Senior VP & CFO2.08yrsUS$1.17m0.030%
$ 1.8m
Peter Rockandel
Senior Vice President of Corporate Development & Investor Relations2.08yrsUS$1.19m0.0027%
$ 160.4k
Andrew Hastings
Senior VP & General Counsel1.67yrsUS$1.47mno data
Jonas Peter Richardson
Senior VP & COO3.08yrsUS$1.50m0.0027%
$ 158.7k
Stephen Gatley
Vice President of Technical Services8.33yrsUS$1.19m0.019%
$ 1.1m
Jean-Claude Lalumiere
Senior Vice President of Human Resources2.58yrsUS$1.22mno data
J. Schauman
Senior Vice President of Commercial1.75yrsUS$1.00m0.011%
$ 657.0k
Ciara Talbot
Vice President of Exploration2.58yrsno data0.0018%
$ 107.0k
Annie Laurenson
Corporate Secretary2.5yrsno datano data
Mark Turner
Director of Business Valuations & Investor Relationsno datano datano data

2.3yrs

Average Tenure

59yo

Average Age

Experienced Management: LUN's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Marie Inkster
President2.08yrsUS$3.59m0.058%
$ 3.4m
Donald Charter
Independent Director14yrsUS$131.90k0.0092%
$ 540.1k
Lukas Lundin
Chairman of the Board26.08yrsUS$195.96k0.31%
$ 18.2m
John Craig
Independent Director17.33yrsUS$116.82k0.029%
$ 1.7m
Catherine Jean Stefan
Independent Director5.42yrsUS$131.90k0.0077%
$ 451.9k
Dale Peniuk
Independent Director14yrsUS$135.67k0.0068%
$ 400.2k
Peter Jones
Independent Director7.08yrsUS$128.13k0.010%
$ 612.4k
C. Heppenstall
Lead Independent Director0.42yrno datano data

10.5yrs

Average Tenure

63yo

Average Age

Experienced Board: LUN's board of directors are seasoned and experienced ( 10.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: LUN insiders have only sold shares 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 Mining Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lundin Mining Corporation
  • Ticker: LUN
  • Exchange: TSX
  • Founded: 1994
  • Industry: Copper
  • Sector: Materials
  • Market Cap: CA$5.877b
  • Shares outstanding: 733.69m
  • Website: https://www.lundinmining.com

Number of Employees


Location

  • Lundin Mining Corporation
  • 150 King Street West
  • Suite 2200
  • Toronto
  • Ontario
  • M5H 1J9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LUNTSX (The Toronto Stock Exchange)YesCommon SharesCACADNov 1994
GXDDB (Deutsche Boerse AG)YesCommon SharesDEEURNov 1994
LUNM.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDNov 1994
LUMISBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBSEKNov 1994
LUMIOM (OMX Nordic Exchange Stockholm)YesCommon SharesSESEKNov 1994
0RQ9LSE (London Stock Exchange)YesCommon SharesGBSEKNov 1994

Biography

Lundin Mining Corporation, a diversified base metals mining company, engages in the exploration, development, and mining of mineral properties in Chile, Brazil, the United States, Portugal, and Sweden. It ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 00:54
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.