One Mine Stake Is Already Worth Nearly 3X This Company's Entire Market Cap
Lundin reports Vicuña’s feasibility study is on track and Caserones’ storm impact is priced in, maintaining robust cash flow.
Lundin Mining Corporation (LUN) provided a pre-announcement for its second quarter of 2026 on July 16, followed by operational updates regarding severe winter storms in Chile on July 21 and July 27. The company reported Q2 2026 revenue of $1.21 billion and net earnings of $385.1 million, driven by record realized copper prices of $6.51/lb and gold prices of $4,385/oz.
Consolidated copper production reached 76.9 kt in the second quarter, bringing first-half production to approximately 107 kt. Q2 consolidated cash costs came in at $2.11/lb, slightly above the $1.90–$2.10/lb guidance range, although year-to-date cash costs remain at $1.88/lb.
At the Caserones mine, a severe winter storm on July 18 caused a 12-day power outage, with a full restart anticipated in two to three weeks. Meanwhile, the Candelaria mine has returned to full capacity. Management retained its full-year production and cost guidance, noting that weather disruptions are factored into the annual forecast.
Strategic milestones for the period include securing Argentina's RIGI PEELP status for the Vicuña project, completing the $215 million acquisition of an additional 5% stake in Caserones and a 31% interest in Los Helados, and sanctioning the Chapada Saúva ball mill. Shareholder returns included $56.2 million in buybacks and a dividend of C$0.0275 per share.
Lundin Mining Corporation’s second-quarter results and updates on weather-related disruptions were already reflected in the stock price. The market had priced in the Chilean weather impacts, with the share price falling from approximately $36.20 in mid-July to roughly $34.50 by month-end.
The company maintained its guidance and reported strategic progress on the Vicuña project, developments that were anticipated by investors. A slight miss on Q2 cash costs represented minor operational friction rather than a structural issue. Following the release, the stock consolidated between $34.50 and $37.50.
Lundin Mining Corporation (LUN) operates a portfolio of major mining assets across South America. In Chile, the company holds an 80% interest in Candelaria, a copper-gold-silver mine with a mine life exceeding 20 years, where the insourcing of underground contracting is nearing completion. Also in Chile, Lundin owns 75% of Caserones, a copper mine that saw cathode production increase to approximately 25,817 tonnes in 2025, with expansion plans targeting a capacity of roughly 40,000 tonnes per year.
In Brazil, Lundin owns 100% of Chapada, a copper-gold mine with a mine life of more than 30 years; the Saúva project has been sanctioned, with ball mill construction currently underway. The company also holds a 50% joint venture interest with BHP in the Vicuña Project, a district-scale copper-gold-silver development spanning Argentina and Chile. Stage 1 capital for Vicuña is $7.1 billion, with targets aiming for a peak production of over 500,000 tonnes of copper per year. Additionally, Lundin holds a 31% interest plus a 0.62% net smelter return (NSR) in Los Helados, an asset acquired for $215 million that expands the company’s copper-gold resource base near Caserones.