Question about Lundin Mining. How is the copper mine life in the countries they are in and which countries they are in. The stock double in the last 4 years and does it has more room to grow due to the data center build outs. The business model, does it continue to generate cash and are they buying back stocks.
In advance, thank you for taking the time to answer my question. Greatly appreciate it.
Norwood
LUN has mines in Chile, Brazil, and Argentina, and the mine life in these countries are generally quite good, with expectations into 2040s for some of its mines. It is producing record copper volumes with competitive cash costs, and guidance suggests that cost performance could improve. There is currently a buyback in place (0.7% yield), and the company generates more than enough cash flow to sustain this buyback policy at this time. Demand for copper is being driven by a few electrification megatrends like EVs, renewables and grid infrastructure, data centers and digital infrastructure, and energy storage and electrification of transport. At 26X forward earnings, with good forward sales and earnings growth estimates, we feel there is potential for further growth here.