Thursday, May 20, 2010

Lundin Mining (TSE:LUN) Down as Base Metal Stocks Take Hit

Lundin Mining (TSE:LUN) (OTC:LUNMF.PK) dropped 7.89, or $0.30 a share in Toronto, and 9.84 percent, or $0.36 a share in New York, as metals stocks continue to have downward pressure on share price with investors going temporarily to cash for safety with gold going through a correction with investors taking profits.

Another key element in metals prices and miners taking hits is the uncertainty surrounding how the battle against inflation in China will hurt metals demand, as well as the fallout in Europe from their debt crisis, where it is uncertain whether or not the region can handle it, and that, too, could have a dramatic impact on demand for precious metals.

Lundin reported recently that they had turned things around since last year, generating a profit of $38 million, against a loss last year during the same quarter of $8.6 million.

They also reached an agreement last Friday with unions concerning their Neves-Corvo copper mine in Portugal.

No comments: