Source: Streetwise Reports 03/26/2020
Why it is a good time to get into Lundin Gold stock and the company’s major move in response to COVID-19 are covered in an Echelon Wealth Partners report.
In a March 23 research note, Echelon Wealth Partners analyst Ryan Walker wrote that the big recent pullback in Lundin Gold Inc. (LUG:TSX; FTMNF:OTCMKTS) stock “represents an excellent entry point as we look for the company to recapture the lost ground post COVID-19 on expectations of gold strength during the balance of 2020 and longer term.”
Walker highlighted that with most of Lundin Gold’s year-to-date gains gone, a rerating could be imminent. It is well below its recent high of $12.69 achieved when the company became a producer and gold prices were high.
Vancouver-based Lundin recently announced it achieved commercial production at Fruta del Norte, Walker noted. It successfully ramped up production to an average throughput of 70% of mill capacity and maintained that level for 90 consecutive days
Though no coronavirus infections have been reported among workers at Lundin Gold’s Fruta del Norte gold mine in Ecuador, the company, in a proactive move, temporarily halted production there in light of COVID-19, reported Walker. To minimize the effects of the shutdown, care and maintenance and special projects will be undertaken until production is resumed.
Walker also relayed that the Ecuadoran government waived for its mining industry the new restrictions on the domestic transport of goods and services initiated due to the coronavirus. Lundin is working with its contractors to ensure the export of its concentrate and doré continues uninterrupted and to secure the goods the company needs.
Echelon has a Buy rating and a CA$12.75 per share price target on Lundin Gold; the stock is trading now at around CA$8.62 per share.
Sign up for our FREE newsletter at: www.streetwisereports.com/get-news
Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
Disclosures from Echelon Wealth Partners, Lundin Gold Inc., March 23, 2020
Echelon Wealth Partners compensates its Research Analysts from a variety of sources. The Research Department is a cost centre and is funded by the business activities of Echelon Wealth Partners including, Institutional Equity Sales and Trading, Retail Sales and Corporate and Investment Banking.
I, Ryan Walker, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report.
Important Disclosures:
Is this an issuer related or industry related publication? Issuer.
Does the Analyst or any member of the Analyst’s household have a financial interest in the securities of the subject issuer? No
The name of any partner, director, officer, employee or agent of the Dealer Member who is an officer, director or employee of the issuer, or who serves in any advisory capacity to the issuer. No
Does Echelon Wealth Partners Inc. or the Analyst have any actual material conflicts of interest with the issuer? No
Does Echelon Wealth Partners Inc. and/or one or more entities affiliated with Echelon Wealth Partners Inc. beneficially own common shares (or any other class of common equity securities) of this issuer which constitutes more than 1% of the presently issued and outstanding shares of the issuer? No
During the last 12 months, has Echelon Wealth Partners Inc. provided financial advice to and/or, either on its own or as a syndicate member, participated in a public offering, or private placement of securities of this issuer? No
During the last 12 months, has Echelon Wealth Partners Inc. received compensation for having provided investment banking or related services to this Issuer? No
Has the Analyst had an onsite visit with the Issuer within the last 12 months? No
Has the Analyst or any Partner, Director or Officer been compensated for travel expenses incurred as a result of an onsite visit with the Issuer within the last 12 months? No
Has the Analyst received any compensation from the subject company in the past 12 months? No
Is Echelon Wealth Partners Inc. a market maker in the issuer’s securities at the date of this report? No
( Companies Mentioned: LUG:TSX; FTMNF:OTCMKTS,
)