TSX:LUN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless 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


Market Performance


7 Day Return

5.3%

LUN

-1.9%

CA Metals and Mining

0.1%

CA Market


1 Year Return

24.3%

LUN

11.8%

CA Metals and Mining

1.6%

CA Market

Return vs Industry: LUN exceeded the Canadian Metals and Mining industry which returned 11.8% over the past year.

Return vs Market: LUN exceeded the Canadian Market which returned 1.6% over the past year.


Shareholder returns

LUNIndustryMarket
7 Day5.3%-1.9%0.1%
30 Day0.9%-4.7%-2.9%
90 Day-6.3%-5.0%-1.4%
1 Year26.7%24.3%12.7%11.8%5.2%1.6%
3 Year40.8%34.4%-11.3%-13.0%13.8%3.7%
5 Year38.6%32.3%6.9%2.8%25.3%7.2%

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

Undervalued: LUN (CA$6.8) is trading below our estimate of fair value (CA$23.09)

Significantly Undervalued: 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 (47.7x) compared to the Metals and Mining industry average (13.6x).

PE vs Market: LUN is poor value based on its PE Ratio (47.7x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: LUN is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: LUN is good value based on its PB Ratio (1x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

How is Lundin Mining forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

30.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LUN's forecast earnings growth (30.9% per year) is above the savings rate (1.9%).

Earnings vs Market: LUN's earnings (30.9% per year) are forecast to grow faster than the Canadian market (13.2% per year).

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

Revenue vs Market: LUN's revenue (12.3% per year) is forecast to grow faster than the Canadian market (5.8% per year).

High Growth Revenue: LUN's revenue (12.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: LUN's Return on Equity is forecast to be low in 3 years time (10.5%).


Next Steps

Past Performance

How has Lundin Mining performed over the past 5 years?

23.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LUN's earnings have grown significantly by 23.8% 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 (-81.3%) over the past year, making it difficult to compare to the Metals and Mining industry average (-13.7%).


Return on Equity

High ROE: LUN's Return on Equity (2.2%) is considered low.


Return on Assets

ROA vs Industry: LUN's Return on Assets is below or equal to the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: LUN's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Lundin Mining's financial position?


Financial Position Analysis

Short Term Liabilities: LUN's short term assets ($1.3B) exceeds its short term liabilities ($522.8M)

Long Term Liabilities: LUN's short term assets (1.3B) exceeds its long term liabilities (1.3B)


Debt to Equity History and Analysis

Debt Level: LUN's debt to equity ratio (0.8%) is considered satisfactory

Reducing Debt: LUN's debt to equity ratio has reduced from 8.4% to 0.8% over the past 5 years.

Debt Coverage: LUN's debt is well covered by operating cash flow (1290.7%).

Interest Coverage: LUN's interest payments on its debt are well covered by EBIT (6.4x coverage).


Balance Sheet

Inventory Level: LUN has a high level of physical assets or inventory.

Debt Coverage by Assets: LUN's debt is covered by short term assets (assets are 37.123020x debt).


Next Steps

Dividend

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

1.74%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%2.0%markettop25%6.0%industryaverage1.2%forecastin3Years1.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: LUN's dividend (1.74%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.01%).

High Dividend: LUN's dividend (1.74%) is low compared to the top 25% of dividend payers in the Canadian market (6.01%).

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 3 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (81.3%), LUN's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LUN's dividends in 3 years are forecast to be thoroughly covered by earnings (12.4% payout ratio).


Next Steps

Management

What is the CEO of Lundin Mining's salary, the management and board of directors tenure and is there insider trading?

1.1yrs

Average management tenure


CEO

Marie Inkster (47yo)

1yrs

Tenure

US$3,148,807

Compensation

Ms. Marie Inkster is President and Chief Executive Officer of Lundin Mining Corporation since October 1, 2018 and has been its Director since September 30, 2018. She was Chief Financial Officer of Lundin M ...


CEO Compensation Analysis

Compensation vs. Market: Marie has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Canadian market.

Compensation vs Earnings: Marie's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

1.1yrs

Average Tenure

58yo

Average Age

Experienced Management: LUN's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Age and Tenure

11.8yrs

Average Tenure

64.5yo

Average Age

Experienced Board: LUN's board of directors are seasoned and experienced ( 11.8 years average tenure).


Insider Trading

Insider Buying: LUN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$119,03015 Aug 19
Peter Rockandel
EntityIndividual
Role
Head of Investor Relations
Senior Vice President of Corporate Development & Investor Relations
Shares20,000
Max PriceUS$5.95
BuyUS$890,80512 Aug 19
Nemesia S.A.R.L.
EntityCompany
Shares150,000
Max PriceUS$5.94
BuyUS$2,336,92008 Aug 19
Nemesia S.A.R.L.
EntityCompany
Shares400,000
Max PriceUS$5.84
BuyUS$2,623,81507 Aug 19
Nemesia S.A.R.L.
EntityCompany
Shares450,000
Max PriceUS$5.83
BuyUS$9,12830 Jul 19
Catherine Jean Stefan
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,400
Max PriceUS$6.52
SellUS$685,86101 May 19
Marie Inkster
EntityIndividual
Role
Chief Executive Officer
President
Shares93,467
Max PriceUS$7.34
SellUS$95,48005 Mar 19
J. Schauman
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Commercial
Shares14,000
Max PriceUS$6.82
BuyUS$51,40028 Nov 18
Stephen Gatley
EntityIndividual
Role
Chief Technology Officer
Vice President of Technical Services
Shares10,000
Max PriceUS$5.14
SellUS$45,67714 Nov 18
Jonas Peter Richardson
EntityIndividual
Role
Head of Human Resources
Senior VP & COO
Shares8,320
Max PriceUS$5.49
BuyUS$81,45009 Nov 18
Peter Jones
EntityIndividual
Role
Member of the Board of Directors
Director
Shares15,000
Max PriceUS$5.43
BuyUS$51,00030 Oct 18
William Rand
EntityIndividual
Role
Lead Director
Lead Director
Shares10,000
Max PriceUS$5.10

Ownership Breakdown


Management Team

  • Marie Inkster (47yo)

    President

    • Tenure: 1yrs
    • Compensation: US$3.15m
  • Peter Rockandel

    Senior Vice President of Corporate Development & Investor Relations

    • Tenure: 1.1yrs
  • Steve Gatley (58yo)

    Vice President of Technical Services

    • Tenure: 7.3yrs
    • Compensation: US$1.19m
  • J. Schauman (60yo)

    Senior Vice President of Commercial

    • Tenure: 0.8yrs
    • Compensation: US$1.00m
  • Jinhee Magie

    Senior VP & CFO

    • Tenure: 1.1yrs
    • Compensation: US$1.11m
  • Lesley Duncan

    Special Project Manager

    • Tenure: 0yrs
  • Annie Laurenson

    Corporate Secretary

    • Tenure: 1.5yrs
  • Andrew Hastings

    Senior VP & General Counsel

    • Tenure: 0.7yrs
  • Ciara Talbot

    Vice President of Exploration

    • Tenure: 1.6yrs
  • Jonas Peter Richardson

    Senior VP & COO

    • Tenure: 2.1yrs
    • Compensation: US$1.58m

Board Members

  • Don Charter (63yo)

    Director

    • Tenure: 13yrs
    • Compensation: US$135.08k
  • Lukas Lundin (61yo)

    Chairman of the Board

    • Tenure: 25.1yrs
    • Compensation: US$200.69k
  • Bill Rand (77yo)

    Lead Director

    • Tenure: 11.8yrs
    • Compensation: US$154.38k
  • John Craig (72yo)

    Non-Independent Director

    • Tenure: 16.3yrs
    • Compensation: US$119.65k
  • Marie Inkster (47yo)

    President

    • Tenure: 1yrs
    • Compensation: US$3.15m
  • Catherine Jean Stefan (66yo)

    Director

    • Tenure: 4.4yrs
    • Compensation: US$135.08k
  • Dale Peniuk (60yo)

    Director

    • Tenure: 13yrs
    • Compensation: US$138.94k
  • Peter Jones (71yo)

    Director

    • Tenure: 6.1yrs
    • Compensation: US$131.22k
  • Jean-Claude Lalumiere

    Senior Vice President of Human Resources

    • Tenure: 1.6yrs
    • Compensation: US$1.22m

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$4.995b
  • Shares outstanding: 734.54m
  • 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, the United States, Portugal, and Sweden. It primaril ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:55
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.