Lundin Gold Inc. Expected to Earn FY2024 Earnings of $2.08 Per Share (TSE:LUG)

On October 10, 2024, analysts at Cormark issued an update regarding their earnings forecasts for Lundin Gold Inc. (TSE:LUG). The firm now expects Lundin Gold to achieve earnings of $2.08 per share for the fiscal year 2024, an increase from their previous estimate of $1.96 per share. This adjustment reflects the analysts' positive outlook on the company’s performance. Cormark maintains a "Hold" rating on the stock with a price target of $32.00.

Currently, the consensus estimate for the company’s full-year earnings stands at $2.56 per share, indicating a higher expectation among analysts compared to Cormark's outlook.

Analyst Ratings and Price Targets

Several other analysts have also shared their insights on Lundin Gold. For instance, on September 23, Raymond James adjusted their rating from "outperform" to "market perform" while raising their price target from C$25.00 to C$29.00. In contrast, CIBC set a higher price target of C$34.00, suggesting an “outperform” rating recorded on September 11.

Moreover, Royal Bank of Canada increased its price target to C$27.00 from C$25.00 on September 10, and TD Securities raised their target from C$24.00 to C$27.00, assigning a "buy" rating on July 30. National Bankshares made a similar adjustment on August 14, boosting their target to C$32.00 while maintaining an "outperform" rating. Overall, the ratings reflect a mixture of recommendations, with three analysts suggesting a hold, four advising a buy, and one issuing a strong buy recommendation. The average rating on the stock is noted as "Moderate Buy" according to MarketBeat, with a consensus target price of C$28.33.

Current Stock Performance

As of the latest trading day, Lundin Gold's shares opened at C$32.67, showing a slight decline of 0.2%. The stock has seen fluctuations over the past year, ranging between a low of C$14.23 and a high of C$33.34. With a market capitalization of C$7.84 billion, the company's price-to-earnings ratio stands at 25.33, accompanied by a beta of 1.23. The financial ratios suggest a stable position, indicated by a debt-to-equity ratio of 14.28 and a current ratio of 1.98.

Lundin Gold recently disclosed its quarterly earnings on August 8, reporting earnings per share of C$0.55, which was lower than the consensus estimate of C$0.62 by C$0.07. The company recorded a return on equity of 22.88% and a net margin of 24.30%, with revenues amounting to C$412.43 million for the quarter.

Insider Transactions

In insider news, Senior Officer Sheila Margaret Colman recently sold a total of 32,000 shares of Lundin Gold in two transactions on September 12 and September 20. Additionally, another Senior Officer, Terrence Smith, sold 25,740 shares, indicating notable insider activity. Over the last quarter, insiders have sold a combined total of 72,840 shares worth approximately $2,146,122. Currently, corporate insiders own about 58.72% of the company’s shares.

Dividend Increase

Lundin Gold has recently upped its quarterly dividend payment. Shareholders received a dividend of $0.551, which is a substantial increase from the previous dividend of $0.10. This translates to an annualized dividend of $2.20 with a yield of 6.75%. The ex-dividend date was September 10, and the company's dividend payout ratio currently stands at 82.95%.

About Lundin Gold Inc.

Lundin Gold Inc. is a prominent mining company based in Canada, focusing on the extraction of gold and other minerals. The company holds interests in 28 metallic mineral concessions and three construction material concessions spanning an area of approximately 64,454 hectares located in Southeast Ecuador. A significant asset is its 100% ownership of the Fruta del Norte gold project, which encompasses seven concessions over a total area of around 5,566 hectares near Loja in Ecuador.

Lundin, Gold, Earnings