CA - Lundin Gold: A Solid Buy-The-Dip Candidate
2024-03-11 05:10:35 ET
Summary
- Lundin Gold reported another record year for gold production and generated over $500 million in operating cash flow before working capital changes.
- Notably, the company should have another monster year in 2024 from a financial standpoint, especially if the gold price can continue to hang above $2,100/oz.
- In this update, we'll dig into Lundin Gold's Q4 and FY2023 results, recent evolutions, and why it continues to be one of the best ways to get gold exposure.
The Q4 Earnings Season for the Gold Miners Index ( GDX ) is nearly over and while results were mixed overall, the outlook for H1 2024 is significantly better. This is because producers are benefiting from a ~9% higher gold price quarter-to-date (~$2,050/oz) than they were in Q1 2022 (~$1,880/oz) and could see a nearly 10% higher gold price in Q2 2023 with what looked to be difficult comparisons (~$1,960/oz) to lap now looking easily beatable. The result will be significant margin expansion for the group, translating to improved free cash flow generation, stronger balance sheets, and the potential for more acquisitions after what's already been a quite busy period for M&A, with 2024 seeing additional deals with Shandong (which previously acquired Cardinal for its Namdini Project) set to acquire Osino Resources in Namibia, out-bidding Dundee Precious Metals ( OTCPK:DPMLF )....
Lundin Gold: A Solid Buy-The-Dip Candidate