National Bank Financial Reduces Price Target of Lundin Gold to C$20.50
May 20, 2023
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Lundin Gold ($TSX:LUG), a Canadian gold development and exploration company, saw its price target reduced by National Bank Financial on Tuesday. Lundin Gold is a mineral exploration and development company based in Vancouver, British Columbia. Their primary focus is on the development and advancement of their flagship Fruta Del Norte gold project located in the south-eastern part of Ecuador. The company also holds a number of exploration properties in Ecuador and Sweden.
The company’s goal is to become a mid-tier gold producer and deliver long-term value for shareholders. The gold price, which was trading at record highs in August, has since weakened, leading to a decrease in investor confidence. Despite this, the company remains committed to its goals and is continuing to advance its Fruta Del Norte project in an effort to position itself as a top gold producer.
Stock Price
Tuesday was a tough day for LUNDIN GOLD stock as it opened at CA$18.4 and closed at CA$18.2, down by 1.8% from its last closing price of 18.6. This news has put a dent in the stock’s momentum, and will likely influence investors’ decisions over the short-term. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Lundin Gold. More…
| Total Revenues | Net Income | Net Margin |
| 855.92 | 101.84 | 5.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lundin Gold. More…
| Operations | Investing | Financing |
| 443.25 | -55 | -514.04 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Lundin Gold. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.47k | 581.4 | 3.74 |
Key Ratios Snapshot
Some of the financial key ratios for Lundin Gold are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 185.3% | – | 29.3% |
| FCF Margin | ROE | ROA |
| 45.5% | 18.0% | 10.7% |
Analysis
As part of our analysis of LUNDIN GOLD, GoodWhale conducted a deep dive into its fundamentals. According to our Star Chart, LUNDIN GOLD has an intermediate health score of 6/10 with regard to its cashflows and debt, making it likely to sustain future operations in times of crisis. We classified LUNDIN GOLD as ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. When considering what type of investors may be interested in such a company, we looked at the various characteristics of LUNDIN GOLD. Our analysis suggests that it is strong in growth, profitability, and medium in asset and dividend. These traits may be attractive to investors looking for a balance of stability and potential for growth. More…
Peers
They are active in Ecuador and are in competition with Sitka Gold Corp, Aura Minerals Inc, and Moneta Gold Inc for gold exploration and production. These companies have all made significant investments in gold exploration and production and are actively seeking new opportunities to increase their gold production.
– Sitka Gold Corp ($OTCPK:SITKF)
Sitka Gold Corp is a mineral exploration and production company primarily engaged in the exploration and development of gold properties in Canada and the United States. As of 2022, the company has a market cap of 12.86M, indicating a small but significant presence in the mining industry. Unfortunately, their return on equity of -659.58% is indicative of a loss in value for shareholders, which could be due to mismanagement of resources or lack of profits from their operations.
– Aura Minerals Inc ($TSX:ORA)
Aura Minerals Inc is a Canadian mining and exploration company focused on gold and base metal projects in the Americas. The company has a market cap of 546.53M as of 2022 and a return on equity of 14.52%. Market cap is the total value of a company’s outstanding stock, and is a measure of the company’s size. Similarly, the return on equity (ROE) is a measure of how well a company is generating profits relative to its shareholders’ equity. This indicates that Aura Minerals Inc has been generating positive returns for its investors, making it a good investment option.
– Moneta Gold Inc ($TSX:ME)
Moneta Gold Inc is a Canadian-based gold exploration and development company. The company has a market capitalization of 149.53M as of 2022, indicating that it is a large company in the industry. Its Return on Equity (ROE) of -22.91% indicates that it has not been able to generate any profit from its investments. The company’s core focus is on the exploration and development of gold deposits in the Abitibi Mining District of Quebec, Canada. Moneta Gold Inc is making investments in its exploration and development activities in order to increase the value of its gold resources and expand its business operations.
Summary
Lundin Gold is a Canadian gold mining company that has recently been analyzed by National Bank Financial. Following the analysis, the price target for the company’s stock was lowered from C$21.00 to C$20.50. Investors should be aware of this change when considering Lundin Gold as an investment option. The company’s performance and potential should be studied closely before investing, as it should be with any stock. Factors such as the company’s financials, industry trends, and market sentiment should all be taken into account.
In addition, investors should be sure to keep an eye on upcoming news and events that could affect the gold market and Lundin Gold’s stock price.
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