Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (CAD) | Target 1 (CAD) | Target 2 (CAD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 26 May, 26 | LUN | Buy | CAD 39.93 | CAD 42.0 | CAD 43.95 | 7 days | Closed |
10.27%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Lundin Mining Corporation, a diversified base metals mining company, engages in the exploration, development, and mining of mineral properties in Chile, Brazil, and Argentina. It explores for copper, gold, silver, molybdenum, and other metal deposits. The company was formerly known as South Atlantic Ventures Ltd. and changed its name to Lundin Mining Corporation in August 2004. Lundin Mining Corporation was incorporated in 1994 and is headquartered in Vancouver, Canada.
Increase in Free Cash Flow from Operations: USD 380 Mn in Q1FY26 vs USD 30 Mn in Q1FY25
Increase in Adjusted EBITDA: USD 627 Mn in Q1FY26 vs USD 382 Mn in Q1FY25
Increase in Consolidated Production Costs: USD 487 Mn in Q1FY26 vs USD 480 Mn in Q1FY25
Decline in Copper Production: 80 kt in Q1FY26 vs 87 kt in Q1FY25
Lundin Mining remains exposed to commodity price volatility, operational disruptions, permitting delays, geopolitical risks in South America, and execution risks associated with large-scale development projects such as Vicuña and Los Helados
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 39.93 | 37.0 | 42.0 | 43.95 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Robust Operational Performance: Lundin Mining Corporation delivered solid operational performance during Q1 2026, producing 80 kt of copper and 32 koz of gold, while remaining on track to meet its annual production guidance. Caserones reported particularly strong performance driven by higher grades and robust cathode production, supporting consolidated operational efficiency.
Strong Financial and Cash Flow Generation: The company generated revenue of USD 1.16 billion and adjusted EBITDA of USD 627 million during Q1 2026, reflecting strong copper pricing and operational discipline. Free cash flow from operations reached USD 380 million, while adjusted operating cash flow stood at USD 450 million, highlighting strong liquidity generation capabilities.
Improving Cost Structure and Operational Discipline: Lundin Mining maintained strong cost control during the quarter, with consolidated C1 cash costs at USD 1.66/lb, below the company’s guidance level of USD 1.90/lb. Higher by-product credits and operational efficiencies supported lower production costs, positioning the company competitively within the global copper mining industry.
Strategic Expansion and Resource Growth: The company strengthened its long-term growth pipeline through the acquisition of an additional 5% stake in Caserones and a 31% interest in Los Helados. Furthermore, Lundin Mining reported copper resource growth of 115% YoY, while the Vicuña integrated technical study reinforced the project’s Tier-1 asset potential.
Balance Sheet Strength and Future Positioning: Lundin Mining further enhanced financial flexibility by increasing its revolving credit facility to USD 4.5 billion and ending Q1 2026 with net cash of USD 249 million. Continued investments in Vicuña development, workforce expansion, and infrastructure preparation support the company’s long-term production and growth ambitions.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to Lundin Mining Corporation (TSX: LUN) at the closing market price of CAD 39.93, as on 25 May,2026.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Basic Materials Industry: Copper
| Company | Change (CAD) | Price (CAD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| LUN Lundin Mining Corporation |
-1.81 4.10% | 42.29 | 22.37 | 22.68 | 7.88 | 3.75 | 6.20 | 13.69 |
| FM First Quantum Minerals Ltd |
-0.83 1.80% | 45.30 | - | 39.22 | 5.82 | 2.12 | 5.53 | 16.22 |
| HBM HudBay Minerals Inc |
-1.91 4.33% | 42.16 | 16.56 | 14.41 | 5.86 | 3.12 | 4.82 | 7.38 |
| CS Capstone Mining Corp |
-0.7 4.39% | 15.25 | 22.17 | 16.50 | 3.80 | 2.05 | 3.40 | 7.42 |
| ERO Ero Copper Corp |
-1.48 3.32% | 43.08 | 11.15 | 7.41 | 4.90 | 3.14 | 4.43 | 7.53 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on May 26, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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