Very good article on Zinc, Lundin Mining LUN.to LMC and Mantle Resources MTS.v

I am following this Blog and found it very interesting:

http://www.greatinvestments.blogspot.com/

You can find a lot of information on Roxmark Mines RMK.v and some info on Mantle Resources MTS.v.

Lundin Mining LUN.to LMC Assestment. CS

Risk comes when you do not know what you are doing.

I will run some numbers later.

Bullish case for Lundin Mining LUN.to LMC in the Big Picture:

1. You are making Money when you are buying undervalued assets with near term catalyst for realising their true value.

2. You are making Big Money when "nobody wants it" and there is blood on the street.

3. You are making money when your house is safe and You Are Not on Margin: nobody can force you to Sell at Loss.

4. You are happy when your precious asset is going down in price only in One case - when you can Buy more.

5. In Lundin Mining Case you have invested because:

- You think that the US Dollar is shrinking in value, powers are shifting and Demand will be there even with USA already in recession and Chinese stock market crashed 50%. You do think so because you know that China is Planed economy with huge amount of USD paper asset which they are happy to exchange for the real goods. You have checked Shippers Talks - they are pointing to higher Demand in 2008 for all raw materials. You know that Chinese Market is still a fraction of Chinese economy and its "crash" of 50% will only put it on solid uptrend line. You think that this blip will not prevent Chinese Government from race with time: they need leap frog in building infrastructure in order to prevent aggression and attempt to democratisise them as well as to ease tensions inside the society and by urbanisation move unstable classes from poverty into New Middle Class Consumers of their own Chinese products. They have for this 1.5 trillion USD IOU from bankrupt state which by accident are still accepted in some parts of the world. This is the only positive scenario for me in the world of shifting powers: that rising powers will become quickly confident in order to prevent stupid attempt to nuke them. Once reality will be accepted: Multypolar World will become evident. Reality will be difficult to accept: it means that Average standard of living in the Western world will need to come down and Eastern World will rise. Standard of living means not amount of Credit Cards, but amount of available for consumption energy and commodities. You can fool your citizens about value of the dollar, rich have all means to diversify, how can you diversify if you are living from cheque to cheque? But you can not fool yourself: real wealth is not IOU of the bankrupt state but Real Assets which you can use to build productive assets, by raw materials, feed your workers, give them part of the profit to make them happy and then Store your Surplus Capital in Ultimate Value: Gold ans Silver before you will make another investment decision.

- You have taken into account that recent drive down on Zinc price was caused by increased Chinese export due to Reduction of Export Subsidaries which is actually indicating Strong Demand from China for the product.

- You know that Lundin Mining has the right mix of commodities to satisfy your Big Picture approach: Zinc - you need it for all white goods and cars, bridges, skyscrapers and pipelines. Copper - it is Energy, energy, energy. Lead - it is cars, millions of them. World did not noticed but people still need fridges, microwaves and cars, only one new thing: it is not in Arizona but in Shanghai.

- You know that main production assets of Lundin Mining are in stable boring Europe and even they are trading with discount to Real Value. There is no Credit for Huge Tenke Fungurume and Ozernoe deposit in the price at all.

- You have read latest release and satisfied that management is investing in existing Assets in order to increase production, putting another mine into production this year and cutting operational cost combining and eliminating six offices (economy of scale).

- You like to Buy below owners of the company, you are not so stupid to think that you can know something better then them in their business. Buying at 9.5 CAD you will feel better by 2.5 million on their recent 2 mil purchase at around 12 CAD.

- You have run the numbers and decided that it is a real bargain considering all the above.

New Company and Tenke Fungurume presentations:

http://www.lundinmining.com/s/Home.asp

P.S. Guys are in a very difficult position: they can not Promote Tenke too much untill DRC will confirm their project status: hint is that Latest Drilling was never reported, before "people have talked" about three times bigger resource (it will not be revealed by recent drilling but magnutued of potential), they have 30% cap on increase in investment with FCX. This is the catalyst.

P.S. Insiders are buying again at 9.57CAD

http://canadianinsider.ca/coReport/allTransactions.php?ticker=lun

Colin Benner is Vice Chairman of the Company

Lundin Mining LUN.to LMC Tenke Fungurume Update

I would like to thank my reader about another confirmation on Kabila's visit to FCX facilities.

I think we are on a good track to receive positive news confirming finalisation of agreement between FCX and Gecamines. Report should be finalised in next two weeks.

Please do not be confused with:

"If you will insist my advise will be only to read CS and that if you are on a margin or have put your house in ANY stock in the market SELL immediately. In all other cases obtain all information and then entertain yourself with your own thoughts and decisions."

This is my general position: never trade your house or be on margin for ANY STOCK in the Universe.

"Congo president tours Morenci mine
His Excellency President of the Democratic Republic of the Congo Joseph Kabila visited Freeport-McMoRan’s Phelps Dodge Morenci Mine on Tuesday.President Kabila toured the mine and the company’s Process Tech-nology Center near Safford.
Monday, October 29, 2007
-->Kabila and a delegation from the Congo are scheduled to meet with President George W. Bush later this week.Freeport McMoRan is the managing shareholder in the Tenke Fungurume Project, which is building a copper and cobalt mine on a 600-square-mile site in the Congo.Construction on the mine began in 2006 and should be in operation by late 2008. President Kabila requested to visit a copper mine operated by Freeport McMoRan Copper & Gold Inc. while he was in the U.S."

Lundin Mining LUN.to LMC Upgraded

"Lundin Mining Raised To Buy From Hold At Paradigm >LMCLundin
Tgt Raised To C$16.75 From C$14.60 At Paradigm >LMC "

These guys know what they are talkimg about, they were ones who followed Tenke mining and issued BUY at CAD5.0. They also participated in PP in Tenke mining at early stage.

Copper to $9,000 - Lundin Mining LUN.to LMC upside underestimated

When Lundin Mining took over Tenke Mining estimated long term price for copper in Tenke Fungurume Project was ... USD 1.0. There is a lot political risk, but I do not think that we will see copper at 1.0 USD for 1 lb again.

"Copper specialists Bloomsbury Mineral Economics believe that we can expect copper prices to reach $9,000 a tonne within the next two years.

Author: Lawrence WilliamsPosted: Friday , 05 Oct 2007
LONDON -
In a presentation at Mining Journal's 20:20 Copper Day in London, Chris Welch of copper specialist analytical service, Bloomsbury Mineral Economics (BME), made a strong case for copper reaching $9,000 a tonne - $4.08 a pound - by 2009. Given that BME has a great track record on copper price predictions such a prediction should not be taken lightly!

The point perhaps that both speakers were making is that individual corporate presentations of copper mine supply are frequently heavily overestimated but many analysts may take these as reality without applying a big enough discount for projects which are cancelled, fall behind schedule or for major supply disruptions for technical, political and labour reasons. Real growth in copper consumption remains very strong, older mines are becoming depleted and grades are declining sharply.
Another interesting point which arose in Longley's presentation was the rate of copper usage per capita in the Asian sector in particular. It was pointed out that growth in Taiwan and South Korea has been very high in relation to the developed nations where the curve was lower because of the existing copper based infrastructure. But in the real growth economies like China and India, this growth pattern has hardly started yet, and should this rise to Korean or Taiwanese levels then the effect on the$ supply/demand pattern could enormous with price development which could make $9,000 copper itself a huge underestimate!"

Lundin Mining LUN.to LMC Take Over Bid

If somebody was really interested to make a bid - it is right time: once uncertainty in DR Congo will be resolved stock will surpass CAD 20.0 and bid will have to be in CAD 30.0 region to be successful. With portfolio of Zinc, Copper, Lead and Nickel company is becoming very attractive target for acquisition. One of the suitors could be Freport-McMoRan with its pile of cash 2.0 bil USD and two J/V with Lundin Group: one in DR Congo - Tenke Fungurume and another one is Fortress Mining in Russia, which took off today to +20%? Is something going on?

Do you remember:

"Desjardins' take over price of CAD 25.00 for Lundin Mining based on Spring aquisitions value looks like a dream now, but time is flying fast and such bargains are not forever."

More on Lundin Mining:

http://sufiy.blogspot.com/search?q=Lundin

Mantle Resources MTS.v is halted

Must be some serious news are coming...Lundin Mining LMC LUN.to owns 10% of the company.

Lundin Mining LUN.to LMC Daily at Buy

Important Market Observation for Lundin Mining LMC LUN.to and Juniors

From Monty Guild:

Posted On: Thursday, September 13, 2007, 8:36:00 PM ESTMonty Guild's Global Market Commentary Author: Monty Guild

"BASE METALS
We have been bullish on gold, oil, base metals, India, China and transportation of energy and minerals for a very long time and that bullishness continues. In a recent email, I stated that we had become more cautious short term about the demand for base metals although continued to be long-term bullish. Our logic was that a U.S. economic slowdown in demand would impact the prices of base metals...and even though it takes many years to bring on new mines, a slowdown in U.S. demand would impact global prices.
Now after a few days of deep research and conversations with a number of economists, we have modified our position. It seems that the ship borne deliveries of many base metals and minerals are almost entirely imported by the fast growing countries like China; ship borne imports of many metals into the U.S. is not a large part of the global market. With the exception of copper and one or two others, most metals are not imported into the U.S. by ship in nearly as large quantities as they are imported into China and similar countries.
Because we continue to believe that a recession in the U.S. would not lead to anything more than a growth slowdown in the developing countries, we are once again short-term bullish on base metals such as iron ore, nickel, cobalt and others where the U.S. is not a huge importer. We will buy the companies that mine these metals on dips.

URANIUM
Also, for those of you who think more long-term take a look at uranium, which has suffered a big price decline. Perhaps not immediately...but over time, uranium prices will once again rise, as demand from nuclear utilities will be growing, due to the fact that more and more nuclear power plants are going to be built worldwide."