Even amid the worst commodities downturn in recent history, the Lundin Group of natural resources concerns is still worth an astounding $9-10 billion.
This from Lundin family investment manager Lukas Lundin, who joined Andrew Bell’s Commodities program on BNN Television Tuesday. I am not 100% sure, but I think this is Mr. Lundin’s first appearance on BNN (other than during commercials).
The natural resources word hangs on Mr. Lundin’s every word, and my interviews with him have been some of the most popular in the history of this site.
He has interests in almost every commodity, and he’s known for almost always being bullish about the sectors he’s most closely involved in.
Here’s Lundin’s outlook on gold:
“I’m not a gold bug but I’m quite bullish about gold. There’s all this financial turmoil in the world; it should be good for gold over time. So I can see it doing well. With our project in Ecuador, it doesn’t really matter, it’s so rich, it still [could] produce gold at $500 an ounce. If gold is at $1100 today it’s good. If it goes up, it’s just a bonus. We just make sure we get deposits that are very valuable at low prices.”
[Mr. Lundin was referring to his gold company Lundin Gold LUG – TSX]
On copper:
“They are churning out mine plans and they have to do it. The big copper producers … can’t choke back. If their big mines choke back, their operating costs go up, the metal costs that much to extract, so they have to do what they do to be in business. At these prices, there’s no investment really in the copper business. Over time, supply and demand will take over because nobody is re-investing today because nobody makes much money… They would like to see $3 [copper].”