Lundin Mining Corp. (LUN.TO)

Still likes copper, anticipates another move higher into next year. A bit extended here. "Smart money" has been selling copper, so a pullback is due shortly. Trim here, but longer-term trend remains intact.

His firm's preferences in resources have been oil, gas, gold. Some of the cyclicality might be coming out of copper. There's lots of it, but does take a long time to get new mines into production. It's in everything, and we'll probably see a time when demand outstrips supply.

Not recommended yet, but a name to keep an eye on.

Depends what you're looking for. Big copper producers will be big cashflow generators and generate dividend growth and special dividends. For one name with that thesis, you could look at TECK.B. It will be an important stock for a long time, and the proposed merger should give you a very strong dividend growth stock that you can own for a long time.

Smaller or intermediate-sized companies ultimately might get purchased by a senior. LUN and HBM fit in that camp. 

In resources, you have to be prepared for inevitable pullbacks. So figure out what volatility you can live with. We've been on this train for the last year, and these stocks have grown a lot. Still a long way to go, but there will be pullbacks along the way.

His preference for a copper play. Canadian company, but Swedish management. Great balance sheet. Good leverage, but not crazy. The one you want to own if copper either goes or doesn't go. You don't want the leverage when things go south.

Bigger consolidation through most of 2024. Downtrend broken, starting to push higher. Higher highs and lows. RSI is accelerating, institutions are stepping in to buy. (The copper chart also looks to be reaccelerating, testing the key $15 level, and the next technical upside target would be ~$16. That would be a tailwind.) Yield is 0.77%.

(Analysts’ price target is $15.40)

Copper is a great strategy for the medium to long term. Investors will sift through companies in the base metal sector. There are concerns re economic weakness so wait before getting into copper companies.

Believes demand for commodities will continue to rise.
Demand for copper in EV car transition growing.
Current valuation presenting good buying opportunity for long term investors.
Recent 51% ownership in Chile mine good for business. 
Strong dividend yield.

Certainly the Lundins know the mining business and have had multiple success world wide. 
The stock is cheap. The balance sheet is quite strong, and we would not see the dividend at risk, though of course in a highly cyclical industry much can change. 
The dividend has grown nicely and the company has also paid out special dividends. 
EPS may be flat this year with lower prices and inflationary costs, but more growth is expected in 2024. 
We would consider it one of the better and more-conservative names in the mining sector right now.  
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One of the Canadian bellwether copper stocks. Pretty good dividend yield. Starting to see higher highs and higher lows. Definitely improving on the technicals. Screens pretty well from a fundamental side.

Lundin is headquartered in Toronto like Agnico-Eagle, but it differs by mining copper (63% of 2022 revenues), zinc (12%), nickel (12%) as well as gold (7%). Key mines are the Chapada in Brazil, the Neves-Corvo in Portugal, the Eagle in the U.S, and the Zinkgruvan in Sweden. Lundin missed two of its last four quarters, but its most recent was generally positive, highlighted by its EPS coming in at $0.25, far above the expected $0.13. including a 36% dividend increase to nine cents per share as it buys back shares. Read: PDAC special: minerals for our full analysis.

 LUN is now trading at 12.7x times' Forward P/E. In the 4Q, LUN’s revenue declined -20% to $811M, beating estimates of $757M, and EPS was $0.25 beating estimates of $0.13. 
The balance sheet is strong, with net debt of $10M. 
Total debt is just a fraction of the trailing twelve-month cash flow of $877M, although cash flow declined around 40% compared to $1.5B last year. The company is trading at a reasonable level compared to Book Value, around 1.2x Price/Book. 
Based on consensus estimates, sales are expected to slightly decline by -2%, while EPS is expected to decrease by 24% next year, as demands for commodities slow down due to an uncertain macro environment.
Overall, a decent quarter, and the result is better than expected. 
The company has paid growing dividends and repurchased shares over the last few years supported by a solid balance sheet, valuation is also reasonable. 
We think the current share price offers an attractive buy entry points for long-term investors. 
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The sector is really tricky. In his income portfolio. Stable business. Don't think of where the stock might be going. Instead, decided if it can generate income for your timeframe. New mine opening around 2027, right when copper supply drops off. Anchor base metal position. See his Top Picks.