Opinions
Colin Cieszynski
Lundin Gold Inc.
LUG-T
BUY
Mar 24, 2025
$43.670
Stock price when the opinion was issued
Mining
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COMMENT
A gold developer in Ecuador. Their project is 7 million ounces, 8-9 g per ton, so a very high grade underground development. It appears that they have the backing of the government to go ahead now, and there is nothing you can find bad with the assets. Where he struggles to find value is that they are developing an asset in a country that doesn’t have much modern mining in an area that is relatively infrastructure poor. There is going to be a period where they are spending capital for 2-3 years, which tends to be a time when gold stocks don’t do much. It is 17% IRR. There are other gold developers he would be looking at, giving a better rate of return.
Mining
TOP PICK
They are ramping up in Ecuador. He has been waiting 10-12 years for this project to work. It is now up and running. He thinks you will see a big re-rating of the stock. It should be trading for a significant premium to the sector. He thinks there will be a seven year mine life but in seven years it will still have a seven year mine life. He sees $10-$12 in the future. (Analysts’ price target is $8.99)
Mining
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Highly ranked stock acting extremely well. RSI doing well. Stock's currently in an uptrend, and gold is trending upward. Gold is consolidating around $3000.