EFN Börslunch 2018-03-22


Deltagare:

Jesper Norberg – EFN

Matilda Karlsson – EFN

Erik Hansén – marknadsstrateg IG Markets

Espen Grönstad VD Investtech

Ron Hochstein – CEO Lundin Gold


Rubriker:

  • Equador har röstat för att stoppa gruvdrift
  • Guldpriset i dollar: + 7% på ett år
  • Erik: “Silver är mer intressant än guldet”
  • Oljan handlas på 70 dollar igen
  • Omsättningen avtar på Stockholmsbörsen
  • Espen är svagt negativ till Stockholms börsen
  • Autoliv stuvar om
  • Husqvarna: aktien + 11% på ett år
  • Eriks case: Stendörren Fastigheter
  • Stendörren: aktien +6 % på ett år

Matilda Karlsson – EFN

-“Välkommen till börslunch. Latour köper ytterligare aktier i allimack. Och OK Peptide  backar på beskedet om riktad nyemission”

Jesper Norberg – EFN

-“Vi har en massa bra gäster med oss idag. Vi har Erik Hansén, Espen Gronstad välkommen hela vägen från Norge and all the way from Quito Ecuador we have Ron Hochstein – CEO Lundin Gold Welcome”

Ron Hochstein – CEO Lundin Gold

-“Thank you”

Jesper Norberg – EFN

-“Good to have you here. Could you start givings us a short history of your company? It doesn’t have that many years”

Ron Hochstein – CEO Lundin Gold

-“We are just coming up on our 3rd year. We acquired the Fruta del Norte project that is in Ecuador in december 2014. And its been a pretty active pathway since then. We completed our feasibility study 2016 and then I moved directly in construction and we are well underway with detailed engineering and construction and underground development”

Matilda Karlsson – EFN

-“Can you tell us a little bit more of your expectation for Fruta del Norte.

Ron Hochstein – CEO Lundin Gold

-“Well Fruta del Norte is pretty unique right now it is the largest highgrade undeveloped underground gold deposite in the world today so it is in its class of its own. It was not developed previously because of issues in Ecuador as the Lundin family tend to do they find the right time to enter countries and our plan now is to aggressively move forward with our underground development. Construction of surface facilities and some infrastructure. With first gold planned for Q4 2019”

Jesper Norberg – EFN

-“Erik do you have a question?”

Erik Hansén – IG Markets

-“So the risk factor with the finance is now away. Anther risk factor is the political and the economic situation in Ecuador .”

Ron Hochstein – CEO Lundin Gold

-“That is a really good question because Ecuador has been probably one of the things historically when we first got in there I would spend a lot of time talking about Ecuador. Less so today I think the big thing with Ecuador was that country was the memorable pack oil was a big part of their economic development. But with the crash in oil that we have seen in the previous years they realized they needed something else to help the economy. The thing that people don’t realize is that Ecuador is a US dollar. They don’t have their own currency so the strength of the US dollar and the crash in the oil price really hurt them because a lot of the other commodities are agriculture flowers, bananas, cocoa, tuna and they are competing with Colombia and Peru. As a result they were really hurt economically competitively. So mining is the one area were they see they can really help to develop their economy. If you look geologically we have the largest deposits in Chile and Peru and Colombia in this trend. We know geology doesn’t stop with borders. So Ecuador is starting to see the potential benefits of mining.”

Jesper Norberg – EFN

-“But there was a recent deduction in certain regions and areas were the vote was said no for that?”

Ron Hochstein – CEO Lundin Gold

-“The vote said yes to the question. But it was really a confirmation and it was good for Ecuador. The lock currently would not allow companies to have production concessions in urban zones, towns or cities, protected areas or in specialized transitions zones in the Amazon basin. What the question was is now the national assembly could still make exceptions. Now it is in the constitution no one can stake a concession in those 3 particular areas. but if we now look at there are now over 30 companies active in Ecuador. Non of us had any concessions in those areas. Those tended to be more the artismal and the small minors so with a respect it didn’t really hurt the industry and actualy it gave the people of Ecuador the level of comfort that mining will not be in some of those areas.”

Jesper Norberg – EFN

-“Fruta del Norte is not in the risk area?”

Ron Hochstein – CEO Lundin Gold

-“No we are not in the risk area. We are actually in the Amazon basin south east of Ecuador only about 10 kilometers from the border with Peru. And we are actually located with nearest community is 10 kilometers away so we are actually quite isolated.”

Matilda Karlsson – EFN

-“So the election was good for Ecuador but it was also good for Lundin Gold?”

Ron Hochstein – CEO Lundin Gold

-“Yes it was and we had a change in president in may in last year and that party is still very much pro mining and what we are seeing in Ecuador right now is that it is not only the mining ministry and the presidency, the finance ministry, the ministry of trade even tax are starting to see that mining because we have been there for a few years they actually are seeing the numbers happening. The province that we are in year over year had a 30% tax increase from VAT and income tax from personal income tax and that. So they are starting to see that mining can help economy. ”

Espen Grönstad – Investtech

-“We are looking at the stock market and the stock has gone quite sideways but we have seen an increase in gold. How important is the gold price for you?”

Ron Hochstein – CEO Lundin Gold

-“For us right now because we are in construction and we are a single project company that is really what a lot of investors are looking at. How are you doing on construction site and also with our recent analysis in financing both in equity and debt now that we are substantially fully financed that has also taken away some of the risk. I think for us now you will start to see probably more as we get through construction this year. In 2019 and as we get closer you will see us being related to the gold price. But right now everyone is seeing can you financing and can you perform in construction. ”

Jesper Norberg – EFN

-“Thank you so much for coming and good luck with all your ventures down in Ecuador”