Investing for the long term often means tuning out the noise and focusing on businesses that can deliver results across cycles. That’s where a company like Lundin Mining (TSX:LUN) can really shine. With a strong global presence, a focus on essential base metals, and a stock price that’s come well off its highs, it’s the kind of Canadian stock that could reward patience for decades to come.
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Looking at Lundin
Lundin is all about the building blocks of the modern economy: copper, zinc, and nickel. These are the metals used in everything from electric vehicle (EV) batteries to buildings and data centres. When demand for infrastructure and clean energy goes up, so does the demand for what Lundin produces. The Canadian stock’s portfolio spans across Chile, Brazil, the U.S., and Europe, offering both scale and geographic diversity. This gives it a steady stream of production and revenue, even when one region hits a speed bump.
Let’s talk stock performance. As of writing, Lundin trades at $11.50. That’s roughly 30% down from its 52-week high of about $18. This decline has made some investors skittish, but for long-term thinkers, it may be a gift. Much of the drop stems from a broader pullback in commodity stocks, combined with copper prices that have been choppy due to uncertainty in global demand. But when you zoom out, the need for copper isn’t going anywhere. Electrification, decarbonization, and infrastructure upgrades are all copper-hungry themes, and they aren’t fading anytime soon.
The numbers
Now, let’s move on to the financials. In 2024, Lundin Mining posted a record revenue of $4.1 billion, with $3.4 billion coming from continuing operations. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at $1.7 billion. That’s a solid showing in a year when copper prices weren’t exactly soaring. The Canadian stock also delivered record copper production of 369,067 tonnes, which met its guidance and showed that its mines are operating efficiently. The fact that it could post such strong results in a tough market says a lot about its underlying business.
There was a net loss of $203.5 million, but this wasn’t because of poor operations. It was due to non-cash impairments related to asset sales in Europe. On a more useful basis, adjusted earnings from continuing operations, Lundin earned $291.7 million. Even better, it generated $797.1 million in free cash flow, giving it the flexibility to reinvest in projects, reduce debt, and potentially raise its dividend. And right now, Lundin does pay a dividend, currently yielding around 3.2%, with room to grow.
Looking ahead
On the growth side, Lundin has been anything but idle. It increased its stake in the Caserones mine in Chile to 70%, adding more high-quality copper production. It also joined forces with BHP in a 50/50 venture to acquire Filo, which owns a massive copper-gold-silver project in the Andes. This region could become a major new mining district, and Lundin now has a front-row seat.
It’s clear the Canadian stock is thinking about the next decade, not the next quarter. That’s exactly what long-term investors should want. It’s also managing its balance sheet well. Net debt is under control, and the company is being selective about how and where it spends capital. This kind of discipline is crucial, especially in a sector known for booms and busts.
Bottom line
In a nutshell, Lundin Mining has the key ingredients for a stock you can buy and tuck away. It has strong assets, solid cash flow, a dividend, smart leadership, and exposure to long-term global trends. And right now, it’s trading at a discount. That makes it a rare mix of value and quality. While no Canadian stock is without risk, especially in the cyclical mining space, the long-term case for Lundin is looking strong. For investors building a portfolio to hold forever, this may be one of the best TSX names to consider while it’s still on sale.
