Lundin Gold (LUG.TO) has completed its capital raise and acquisition of the Fruta del Norte project earlier this year, but unfortunately the trading volume in the company’s shares remains very low. The company wanted to use the past PDAC conference to enter the scene with a big bang, but it does look like the investor’s appetite for another gold story isn’t too strong.
Ecuador seems to start to understand the mining sector could be a huge boost for its economy and it does look like Lundin Gold will be able to re-negotiate the original profit sharing ‘agreement’ the government had in place with Kinross Gold (K.TO, KGC). Lundin will now focus on re-interpreting all of Kinross’ data and should complete an updated feasibility study in order to be in a position to make a production decision by the summer of next year.
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Disclosure: The author has no position in Lundin Gold. Please see our disclaimer for current positions.
