Q: I plan to invest in LUN in my TFSA for potentially some capital gain + copper demand+dividends,what are then risks ( including tariffs)vs favorable points ?
5i Research Answer:
LUN carries with it the usual risks for a miner: commodity prices, environmental costs, production risks, production costs (power, labour), as well as the usual overall market risks. On the positive side, it has a long history, is not overly expensive, is well-managed and offers a good dividend. The balance sheet is quite strong and good earnings growth is expected over the next couple of years. The dividend has grown nicely since 2017 and it has paid special dividends on occasion. The well-respected Lundin family owns 20%. It is one of our favourites in the copper sector.