Lmc

Anyone own this one? I have it because I bought EZM during the winter. What does everyone think about LMC though (use to be EZM and then merged with a canadian company)? I think its a great buy with Zinc going much higher with demand.

 

Thanks for the heads up! I didn't see this one yesterday when i was doing my portfolio update. The company seems to be great, i will have to do some research on it but from what I've read it seems to be a great buy. Next year with the opening of their new mine (Aljustrel) it should be a profit taker. Might go to the 50's? Who knows.

HIGHLIGHTS FOR THE THIRD QUARTER 2006
• Increased net earnings by 153 percent from the third quarter of 2005 to $64.0 million
or $0.11 (C$0.13) per share;
• Generated cash flow from operating activities before changes in non-cash working
capital items of $60.0 million or $0.11 (C$0.12) per share (see non-GAAP measure
reconciliation);
• Increased cash and cash equivalents by $98.0 million to $195.3 million from the
previous quarter;
• Zinc production commenced at Neves-Corvo on July 3rd, 2006
• Announced merger with Lundin Mining Corporation on August 21, 2006 to create a
premier diversified copper and zinc producer; and
• Completed merger with Lundin Mining Corporation on October 31, 2006.
OVERVIEW
During 2006, stronger copper prices generated significantly higher net earnings, revenues and
cash flows as compared to 2005.
Net earnings increased 153% for the quarter and the nine months ended September 30, 2006
to $64.0 million, $0.11 (C$0.13) per share and $153.01 million, $0.28 (C$0.31) per share,
respectively, over net earnings of $25.3 million, $0.05 (C$0.06) per share and $60.5 million,
$0.12 (C$0.14) per share for the same periods in 2005. Net earnings include realized and
unrealized (non-cash) losses on derivative instruments of $9.4 million for the third quarter and
$77.0 million for the first nine months of 2006 compared with $6.8 million and $19.8 million for
the same periods in 2005.

 

They are also producing 70% more zinc in 2007. Zinc is at $2.02/oz and should go much higher with strong demand.

 

Yep. Read their statements, the stronger the dollar gets the more they make. I've been going threw their I've been going threw their 3rd quarter results, i will most definitely buy some of their stock. Hopefully it won't start too high so i can get a bid in before the jump! ! I'm going to be watching it at 9:30.

 

I just finish reading their entire 3rd quater results. Like it so far, but, didn't get this part.

During the nine months ended September 30, 2006, the Company:
a) recognized a realized loss on derivative instruments of $66,129,000 (2005 - $20,001,000) on the
settlement of copper forward sales and currency hedging contracts; and
b) recognized mark-to-market loss of $10,854,000 (2005 – gain of $205,000)

Is that as bad as it sounds?

 

no, but it is not a tiny loss considerin' total revenue.

 

Yea, i'm not going to invest on it after all. After looking at the numbers i really don't like it. Especially with copper going down.