Monday, October 25, 2010

The Financial Post says Lundin Mining catches a break with DRC, czx.v, tnr.v,, fcx, rio, bhp,,,,,,,


  We have the first reaction from the press now. Analyst with new research and target prices to follow. With all recent press for REE Lundin Mining will get more attention later with its Cobalt production and reserves at Tenke Fungurume. Cobalt is used in some chemistries for lithium ion batteries.

"Tenke Fungurume is back and so we are with our pen and paper to share with you this story again. We have another M&A target in the Copper market now back in business. We would expect a new coverage issued on the company and more investment research from Canadian financial institutions with potential upgrades on valuation. Company is up today on volume - chart shows the cup and handle formation - break out to the upside is in the cards with high copper prices. Share price will have to reflect new valuation with settled political uncertainty over this huge copper project in DRC. Country discount will always be there, but the fact that Tenke Fungurume is now producing and will expand its production rate at these prices will drive the valuation."


2010-10-25 08:43 ET - In the News

The Financial Post reports in its Saturday, Oct. 23, edition that Lundin Mining and Freeport McMoRan Copper & Gold have obtained a bit of stability in the Democratic Republic of the Congo after they reached agreement on contract terms with the government covering the massive Tenke Fungurume copper-cobalt mine. The Post's Jonathan Ratner and Peter Koven write that the deal removes a significant political risk overhang over the two companies, and particularly Lundin Mining. The news has been good to Lundin's stock. Last Tuesday, Lundin shares finished at $5.47. On Friday Lundin closed at $6.75. While the new agreement includes some concessions by Freeport and Lundin, analysts do not consider them to be excessively onerous. RBC Capital Markets analyst Fraser Phillips says, "Freeport and Lundin now have the greater confidence level needed to make further capital investments at Tenke, leading the way for them to capture its significant upside potential." Mr. Phillips considers the deal to be a positive catalyst for Lundin. The new arrangement includes an increase in the ownership interest of state-owned Gecamines to 20 per cent from 17.5 per cent, which will come from both Freeport and Lundin."
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