Dividends and Giant sinkhole opens up near Lundin copper mine in Chile

The development of drones has made the world and business a smaller world because news organizations, governments and rival companies have a view of what is going on or what issues management is dealing with and how they are dealing with the issues.

In an article by Niall McGee of the Globe and Mail, a company called Lundin Mining Corporation is mining copper in the Chile. The mountains of Chile have some of the biggest mines and all the major mining companies are actively looking and finding minerals in the Andes Mountains. After locating potential deposits, it takes millions of dollars to extract the ore from the ground, but there are even more millions to be made if the deposit is of commercial quality.

In Alcaparrosa, Chile, Lundin Mining with a 80% share and Sumitomo Metal Mining Co of Japan has 20%, they mine copper, gold and silver. The annual production is about 160,000 tonnes of copper.

Chile’s geology and mining regulator, Sernageomin, posted a picture of the large sinkhole on Twitter, and a new challenge of analyzing why the sinkhole appeared. Lundin said the sinkhole has no impact on staff, equipment, or mine infrastructure. The mine where the sinkhole opened up accounts for 5% of the production of the Candelaria’s output.

Sinkholes form when the land underground can not support the weight coming from the surface and collapses. This could be a natural normal occurrence or caused by industrial activity.

Lundin purchased the mine site from Freeport-McMoRan for $1.8 billion in 2014.

Linking to dividend paying stocks, things happen and many happen because it is nothing normal, what is the new normal is everyone knows about the issue sooner and longer. The issue is how does management to tell its shareholders? Shareholders do not mind bad news, but if the company is not forthcoming, it is easy to seek new alternatives on the stock market.

There are more questions than answers, till the next time – to raising questions.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s