Lundin Mining Corp. (LUN.TO)

LUN vs HBM? He owns LUN-T, but not HBM-T as it has a lower beta to the market. They are good at timing their acquisitions and they know how to balance brownfield expansions, while creating cross-commodity diversification. HBM-T has gone through a proxy fight and their CEO has departed -- it is a wait and see company.

The stock has a 61% upside before reaching the model price. It is acquiring another company which creates some volatility. If it breaks below $7, he thinks the stock will go lower and he would set a stop loss for $7.

A couple of weeks ago they came out with a forecast that was not very good, and the stock got whacked. Management and the family behind it think of this in 50-year cycles. They are taking the short-term pain to have a better future opportunity. However, investors just sold not caring what the strategy was. There is an interesting opportunity here because you are investing in a company that is planning for the future. You need patience though. There is no big rush to buy this, but if you want to buy a metal stock, put it away for 5 years and wait for the cycle, you should do fine. They have a good balance sheet and great management and a good leverage to metals. The new price looks good.

Doesn’t know this company well. He likes to see a company where the stock price has dropped 33% in the past 52 weeks and is trading at the lower end of its 10-year range.

There was a real change of events last week and the week before where there was a very, very negative reaction to the Candelaria mine in Chile, where the walls had collapsed. He finds the commodity space of metals, minerals, oils, gas a tough place to be because of volatility. A lot are very capital-intensive projects, and when something goes wrong, it is very costly, and very costly to shareholders. It’s always been too volatile for his liking.

Hudbay (HBM-T) or Lundin Mining (LUN-T)? The great, great history going back in time is Hudbay. The shorter-term great history is this one, and has been much more active on the world scene. Very successful and one of the few decent sized names. We are not marching to great heights with these companies. He holds both.

The composition of the metals in this company is attractive. The only issue is that they need to make an acquisition. They have a lot of cash and she would like to see them do something. It will be interesting to see what they buy, and until that happens, there is a little bit of uncertainty. A well-managed company with very, very nice assets.

A consolidating stock that decided to break out, and has had a great break out with all kinds of positive action. Probably a little overbought at this moment. However, overall, the trend is great and for the patient person, the trend should stay in place.

Mining is a difficult business. When he is investing in resources, he much prefers oil and gas. The companies tend to be much more diversified on a property perspective. This company is an example of one that has been well-managed. They keep their capital allocation hat on and really go after the best properties. He would have this as a Hold to a Buy.

He is a founding shareholder. He goes back with management almost 40 years. Over the last 10 years they have made a series of spectacular moves. He is attracted to the zinc and copper operations.

She loves this stock. One of her favourites in this sector. In the past 6 months, most of the mining stocks have got crushed. They sold a mine, and are now sitting on a bunch of cash. Management is fairly savvy, so she would expect them to buy something accretive.

First Quantum (FM-T) or Hudbay (HBM-T)? He tries to only focus in areas of the market that are strong technically and fundamentally. Also, he always looks for new groups of leadership to emerge. In the last few weeks, despite the fact that commodities in general have been spotty, the metals group has started to perform better. Globally, things are getting better economically, but in addition, the US$ has really taken a tumble. When that happens, it tends to be good for emerging markets and good for commodity prices. The 3 metal stocks that stand out would be Hudbay, First Quantum, and Lundin (LUN-T). All 3 look very attractive. He would be OK with all 3.