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Recent Performance Context for Lundin Mining

Lundin Mining (TSX:LUN) has drawn fresh attention after a period of strong share performance, with the stock showing gains over the past week, month, and past 3 months that outpaced its single day decline.

For investors tracking longer trends, total returns over the past year and past 3 years are very large multiples of the starting value. The past 5 years also show a sizeable gain, putting the current CA$34.22 share price into sharper focus.

See our latest analysis for Lundin Mining.

The recent 60.28% three-month share price return on Lundin Mining, together with a very large one-year total shareholder return of 178.33%, suggests momentum has been building into the current CA$34.22 level despite a one-day share price decline of 1.10%.

If you are scanning for other opportunities in the resources space, this could be a good moment to broaden your search with fast growing stocks with high insider ownership.

With Lundin Mining now at CA$34.22 and trading above the average analyst price target of CA$30.14, the key question is whether recent momentum leaves upside on the table or if the market is already pricing in future growth.

Most Popular Narrative: 21% Overvalued

With Lundin Mining last closing at CA$34.22 against a narrative fair value of about CA$28.28, the gap between price and modelled worth is clear and sets up an interesting valuation debate.

The fair value estimate has risen slightly from US$27.52 to US$28.28, reflecting a modest adjustment to the model inputs.

The net profit margin has risen slightly from 15.98% to 16.67%, suggesting a somewhat higher assumed earnings efficiency over time.

Read the complete narrative.

Curious what justifies paying up for Lundin Mining here? The narrative leans heavily on future profitability, modest growth assumptions, and a premium earnings multiple. Want to see how those ingredients are combined into that fair value?

Result: Fair Value of $28.28 (OVERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, the heavy tilt to South American copper and the ongoing Candelaria legal overhang could easily challenge today’s upbeat profitability assumptions.

Find out about the key risks to this Lundin Mining narrative.

Build Your Own Lundin Mining Narrative

If you look at the numbers and reach a different conclusion, or simply want to test your own assumptions against the data, you can build a personalised Lundin Mining narrative in just a few minutes, starting with Do it your way.

A great starting point for your Lundin Mining research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.

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If Lundin Mining has caught your attention, do not stop here. You could miss opportunities that better match your goals and risk comfort.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include LUN.TO.

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