In early 2013 Lundin Mining Corporation made headlines as it acquired the high-grade Eagle Mine nickel/copper project from a subsidiary of Rio Tinto [NYSE:RIO. For Rio, the transaction was yet another step in its efforts to divest non-core assets: for Lundin it represented an excellent low risk opportunity to increase both near-term production and exploration potential. Although having been subject to multiple merger talks and take-over attempts throughout the late 2000s – most recently by Inmet Mining and Equinox Minerals – Lundin Mining Corporation still today remains as one of few independent intermediate base metals producers listed on the Toronto Stock Exchange.
Being in the process of replacing declining reserves in Europe with development and exploration projects in North and South America, the purpose of this report is to examine the prospects of Lundin Mining Corporation as an independent intermediate base metals producer. The miner and its shares have recently been touted as prospective “winners” for the fall of 2013 and this report attempts to discern whether such
recommendations hold any substance.