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When copper costs drop, it usually drags down each inventory within the sector, no matter high quality. And that’s precisely what we’ve seen with Lundin Mining (TSX:LUN) in 2025. The dividend inventory has been unstable all yr, weighed down by issues over slowing international demand, significantly from China, and the broader weak spot in commodity costs. However now that it’s buying and selling close to its 52-week excessive, traders are asking: Is that this a purchase alternative, a time to chop losses, or one thing to attend out?
Let’s have a look at the case for purchasing, promoting, or holding Lundin Mining in July 2025.
About Lundin
Lundin Mining is likely one of the largest base metallic miners on the TSXwith a give attention to copper, nickel, and zinc. It has a diversified portfolio of property throughout the Americas and Europe, together with its crown jewel: the Candelaria mine in Chile. And it’s not simply sitting nonetheless. Over the previous few years, Lundin has been actively increasing its manufacturing base, most notably with the $1 billion acquisition of the Caserones copper mine in Chile, which closed in mid-2023. This added important scale and long-term potential.
In its most up-to-date earnings report for Q1 2025, Lundin Mining reported income of $963.9 million. Internet earnings got here in at $138.1 million, or $0.16 per share. Manufacturing was strong throughout the board, producing 76,774 tons of copper. Moreover, money prices for copper got here in at $2.07, close to the low finish of steering. Plus, the corporate reaffirmed its full-year manufacturing steering.
What to observe
The issue is copper costs. After peaking in late 2024, copper slumped in 2025 attributable to weaker-than-expected Chinese language industrial exercise and a shift in investor sentiment, however has since climbed again. After costs slipped under US$3.80 per pound, the worth has now jumped again upwards to US$4.50 as of writing.
So is that this a shopping for alternative? Presumably. Lundin’s long-term development outlook stays strong. The Caserones deal continues to unlock synergies, and the corporate has ample reserves and exploration upside. It additionally maintains a wholesome steadiness sheet, with over $341.6 million in money and money equivalents. Analysts typically see LUN as undervalued, with the one-year value goal hitting $16.41 as of writing. The inventory’s dividend yield of roughly 0.8% additionally provides some cushion when you await copper to rebound.
Issues
That stated, there are causes to be cautious. Copper costs are notoriously cyclical, and additional declines might eat into earnings. Operational dangers, particularly in Chile, shouldn’t be ignored, with ongoing political uncertainty and excessive enter prices creating volatility. Buyers who’re extra risk-averse or short-term targeted could choose to attend till the copper market stabilizes or till Lundin proves it could actually management prices higher on this surroundings.
If you happen to already personal the inventory, holding seemingly is smart. The corporate continues to be worthwhile, the dividend is undamaged, and the long-term copper demand story tied to electrification, infrastructure, and electrical autos (EV) isn’t going anyplace. Promoting now would imply locking in losses, probably on the backside of the cycle. However these pondering of including ought to go in figuring out this may very well be a bumpy trip for a number of extra quarters.
Backside line
Lundin Mining is neither a screaming purchase nor a particular promote. It’s a textbook maintain for now, until you’re particularly looking for contrarian copper performs. If you happen to consider within the long-term electrification pattern and have the abdomen for short-term volatility, it is likely to be value nibbling at these ranges. However for those who’re in search of stability or near-term returns, you would possibly wish to keep on the sidelines till copper costs discover their footing. Briefly, Lundin is a strong firm in a tricky surroundings. This metals miner has potential, but it surely additionally requires persistence.
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