The S&P/TSX Composite Index rose 72 points on Thursday, October 27. On the same day, the S&P/TSX
Global Base Metals Index dropped 1.99%. Today, I want to look at one of the top base metals stocks
available on the Canadian market. Is it worth snatching up today? Let’s jump in.
Lundin Mining (TSX:LUN) is a Toronto-based diversified base metals mining company that is engaged in
the exploration, development, and mining of mineral properties around the world. Shares of this mining
stock have dropped 25% in 2022 as of close on October 27. The stock is down 28% in the year-over-year
period.
This company unveiled its third quarter fiscal 2022 earnings on October 25. Its gross profit plunged $221
million compared to the third quarter of fiscal 2021. This was due to higher operating costs that were
impacted by soaring inflation as well as lower metal prices. Indeed, commodities have been hit hard as
fears of a global recession have increased.
Lundin is focused on the production of base metals like copper, zinc, and nickel. Copper prices gained
some momentum in the middle of this week in the face of a weaker U.S. dollar. Meanwhile, zinc prices
have continued to suffer in the face of global economic pressures. Finally, nickel prices have also been
hit by volatility.
Macroeconomic conditions are troubling for Lundin right now. However, its shares possess a very
favourable price-to-earnings ratio of 5.7. It offers a quarterly dividend of $0.09 per share. That
represents a solid 4.8% yield. This stock offers nice value and income right now, but there is too much
uncertainty for metal prices to take the risk.
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