Lundin Mining Corp (USA) (LMC)

UncommonSense (< 20) Submitted: 2/12/08 11:27 AM : Start Price: $8.15 LMC Score: -52.72

Lundin Mining is in a great niche. It IPOed in late 2006 and mines copper, zinc, lead, and silver. They operate 5 mines, 4 of which regularly increase production levels every quarter (and usually by double digits yoy). Copper prices are firming up as the world realizes that the economic slowdown is just a speed-bump. Lundin is currently trading at around .8 times its assets. They just finalized a deal to buy a major copper mine in the Democratic Republic of Congo and they are in the process of developing a major surface mine in Russia. If you want a value play - Lundin is it. The company is very cheap right now with huge growth prospects. They have virtually no debt and ample room to expand in coming years as commodity prices continue to rapidly outpace inflation. Desjardins analysts John Redstone, and John Hughes cited LMC's takeout value at $25 per share back in July. That was when LMC was trading at $15 a share. $25 would have represented a very comfortable 60% premium. Now, as of mid February, $25 represents a three bagger and change. Even if LMC is not taken over by an ambitious private equity group or a hungry metal conglomerate, its own individual growth prospects seem to shine. P/E is around 6.5. No dividend, not because it can't pay it, but because it is trying to expand operations. Price target 1 year: $13

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