Did you know that a single family is responsible for most of the natural resource discoveries within the past few decades? The Lundin family is a name that is associated with some of the most lucrative and profitable natural resource discoveries in history
The Lundin Group was founded over 40 years ago by Adolf Lundin and has now evolved to become one of the most prominent names in the industry of natural resources. The Lundin group consists of 13 publicly traded companies with a total group market capitalization of around $20.99 billion.
Shaky Beginnings
The Lundin family didn’t start from riches. Adolf Lundin was born to a middle-class family and was always enticed by the depiction of an American-styled oil baron. In 1970, Adolf decided to devote himself to investing and stock picking. During this time, Adolf made over $300,000 by investing in a Canadian zinc and lead mining company, Aaro Explorations.
However, in the same year, a Lundin-managed fund had misinterpreted some information and invested a lot of money into a company called Tasminex. This poor investment almost derailed Adolf’s entire enterprise. Still, Adolf Lundin was not dissuaded by this poor investment. With strong business acumen and the courage to take on high risks, Adolf set off on his next venture.
In 1972 he flew to Dota, the capital of Qatar, to discuss exploring and discovering potential gas and oil fields. Adolf and his partner put together a group of German oil companies led by Wintershall for the exploration and development of the Gulf coast. This project eventually came to be known as Gulfstream Resources, in which Adolf Lundin and his partner were entitled to 5% stake. This project led to the discovery of the North Dome Gas Field, one of the biggest gas fields ever discovered, and this skyrocketed the value of the project. At the end of 1976, Adolf Lundin’s 5% stake was worth $15 million, and he sold this share to finance and build up his enterprise.
A History of Success
Adolf Lundin went on to have a lucrative career with a history of large-scale successes. In 1992, Adolf purchased the rights to the undeveloped gold and copper deposits of Catamarca, Argentina for $2 million through his company the International Musto Exploration. These deposits ended up yielding around 300 tons of gold and 2.7 million tons of copper. In 1994, Adolf sold 50% of his stake for $130 million. In the following year, Adolf sold the other 50% for $325 million.
Adolf’s successes did not stop there. In 1998, he discovered the En Naga oil field, which yielded 100 million barrels of oil. In the same year, he discovered Block PM 3m, a 144-barrel oil field. In the following year, he discovered Thar Jath, another oil field that yielded 150-million barrels.
Adolf was an accomplished trader as well, often helping build up companies and selling them for large sums of profit. Lundin Oil was sold in 2001 for $480 million. Musto Exploration was sold for $500 million and Argentina Gold was sold for $300 million. Adolf Lundin was a billionaire by the time he retired. He had amassed
huge fortunes for himself as well as many investors.
The Lundin Group Today
The Lundin Group is now succeeded by Adolf Lundin’s two sons – Lukas H. Lundin and Ian H. Lundin. Together they manage an enterprise with operations in over 20 countries through 13 different companies. In addition, the Lundin Group continues to be involved in investing and building up other companies. With a reputation for strong environmental responsibility and shared community values, the Lundin group seeks to follow Adolf Lundin’s vision, utilizing proven methods of investing and management.
The Lundin Group and Small-Cap Stocks
Businesses associated with the Lundin family have the potential to be very lucrative investments. Adolf Lundin was well-known in building up business and selling them for large sums of profit. Investors that stood by Lundin saw their investments grow exponentially.
Lukas and Ian had learned from their fathers business acumen and tactics. As a result, companies that are associated with the Lundin family will benefit from time-tested and proven tactics. Since the Lundin Group has a knack for building up small companies into industry titans, investors of today can look at Lundin investments with confidence and use their involvement as a success story benchmark when investing in junior mining companies.
The Lundin family is currently associated with several micro and small-cap stocks that investors may be interested in. Some of the 13 companies directly associated with the group were recently founded, and as a result, have very inexpensive prices per share.
NGEx Minerals LTD was founded in 2019 and is currently trading at $0.36CAD per share. Given the group’s long history of success with mining and exploration, a modest investment here could yield extremely large returns. Filo Mining Corp. made its public debut in 2016, trading at around $1.11CAD per share. After several successful drilling campaigns, the company is now trading at $2.20CAD per share. Early investors would have seen their money double through this company. Filo Mining Corp. is planning an extensive drilling campaign for the 2019/2020 season to expand currently indicated resources. This campaign could increase the company’s stock value very quickly if it is successful.
The Lundin family has investments in other high-potential companies too that are not directly affiliated with the group. BlueStone Resources (BSR) is a gold project in Guatemala with 34% of their shares belonging to the Lundin Family. Two of the board of directors of BSR are representatives from the Lundin family as well. The company is currently trading at $1.05 per share, with experts suggesting that that number is undervaluing the company and the gold mine project will be wildly profitable to investors.
This tactic of purchasing 30% of a company was utilized to great effect by Adolf Lundin. Adolf would routinely purchase 30% of shares to high-potential companies, and with his guidance, turn them into highly profitable companies. BSR will benefit from the same time-tested methods.
Colbiri Resources (CBI) is a company with gold mining projects in Mexico. One of their projects, the Pilar Project, is taking place on a property previously owned by Santa Catalina Mining – a company led by Lukas Lundin. Consequently, this company will also benefit from the Lundin families experience in selecting high-yield mining locations. CBI is currently trading at $0.07CAD with the potential to grow rapidly.
Investing in the Lundin Family
The Lundin family has a proven track record of profitable ventures and investments. Adolf Lundin made large profits for himself and even larger profits for investors that put their faith in him. Lukas and Ian Lundin have inherited their father’s talent for business and continue to lead the Lundin Group as one of the most reputable names in the natural resources industry.