Eurozinc will soon become a high valued mining company if the merger goes as expected.  Synergies between the two markets, European and US, are expected to significantly increase Shareholder value.

"The increased scale, resources and capabilities of the combined company will position us to deliver significant long-term value to shareholders," said Colin K. Benner, Vice-Chairman and Chief Executive Officer of EuroZinc. "Together, we will have access to capital, projects, acquisition opportunities and people that would otherwise be beyond our reach."

While I bought in a little higher than where the price is now the merger will more than make up for the few cents the price has dropped since I bought the stock.  I'm a shareholder and agree with the merger.  I look forward to the day when this is completed as I'm certain all shareholders agree too.

Now is not the time to back away from uncertainty and change but rather to embrace it.  Full steam ahead.

http://biz.yahoo.com/iw/060925/0166379.html

- Bill

I was in EZM with 500 shares at $2.42. I stayed in until $3.26 and got out at $2.54. This was mostly because i got scared as it was my first investment. I do, however think that EZM will do well. They have been growing for many years and have built up their company a lot. I think it is a very good long term investment still.

Has the merger happened yet? When it does, that will increase the stock even more.

EuroZinc has scheduled a special meeting of shareholders to be held at the Four Seasons Hotel, 791 West Georgia Street, Vancouver, British Columbia, on Thursday, October 19, 2006 at 2:00 p.m. (Vancouver time). Shareholders will be asked to consider and approve a proposed Plan of Arrangement involving EuroZinc and Lundin Mining.

The combined company will have four profitable operating mines in Portugal, Sweden and Ireland, plus a fifth mine, Aljustrel in Portugal, scheduled to commence production in the second half of 2007, as well as a strong balance sheet and an extensive portfolio of exploration and development opportunities.

- Bill

Do you think EZM is still a good stock to buy into?

That depends on the merger details.

Whenever a company merges with another whether through acquisition, leveraged buyout, hostile takeover, etc.  There are always integration challenges.  Is this a vertical or horizontal integration?  I'm not sure at this point.

Is the merger related to concentric growth?  Probably.  What will the combined organizational entity look like?  What products will be produced and who will lead each program?  Are the current program leaders and CEO effective?

What is the profitability of Lundin's operating mines?  What is the profitability of EuroZinc's operations?  Combining bad with good may not turn a bad operation into a good one.

The best we can do is understand Lundin's profitability compared with EuroZinc's profitability then guage whether the synergy of the two will increase overall profitability.

There are a number of issues related to integration problems that typically are understated.  Often companies spend enormous amounts of money to make the integration happen and it may take months or years to reap the benefits by combining.

It all depends on how adaptable the two companies are and how swiftly change is internalized and accepted by the existing staff.  Change resistance can affect productivity through passive resistance such as social loafing, time mis-management, etc. or through active resistance such as intentionally slowing productivity, strikes, etc.

This will be a leader oriented strategy and will need to be planned and synchronized well for it to be effective and efficient.

It's time for due diligence and reflection.  If the two companies are profitable and the synergy makes sense then I would say the combined entity has a high potential to be even more profitable.  

If you feel confident based on your homework, research, and analysis then put 25 to 50 shares in the company - a little at a time.  See what develops.  This is a cautious approach.  Any number of scenarios could develop leading to, during, and after the merger.

Just my two cents.

- Bill

is principally engaged in the development of its Aljustrel zinc-silver-lead-copper mine (the Aljustrel Project) and in the operation of its Neves-Corvo copper mine (Neves-Corvo), both in Portugal.

A final feasibility study of the Aljustrel Project was completed in 2000, and further updated in 2001, 2004 and again in March 2006. The company's principal product is copper which it sells into the world market. While the company is not dependent on a particular purchaser, it has entered into an offtake agreement with Boliden AB of Sweden pursuant to which the company will annually deliver and sell to Boliden approximately 50% of the copper concentrate produced at Neves-Corvo.

In 2005, the Neves-Corvo mine produced 89.5 thousand tonnes of copper contained in concentrates. The average grade of copper ore treated over the year in 2005 was 4.96%, with an average recovery rate of 88.1%.

The company also conducts exploration activities on other properties in Portugal. In 2005, the company was granted one exploration concession in the IPB and one exploration concession in north central Portugal.

In addition to the concession granted in the IPB, the company has applied for four additional exploration concessions on the IPB, which together cover an area of 2,683 square kilometers.

The merger deal with Lundin mining is now complete and approved by shareholders.  Lundin, which also operates mines in Portugal, stand to gain significant market share in copper, silver, lead, and zinc.  These mines are operational and producing marketable product to which there are buyers.

We can now say that the companies position has moved from a speculative stock to a viable operational business that has market streams necessary to sustain itself.

Best wishes to the folks at EZM and Lundin - nice job.

- Bill.

Zinc, Lead, and Silver mining companies expected to open higher today on positive sentiment from last week.

Gold expected to be up this morning since topping $600/ounce.

Tuesday October 31, 2:40 pm ET

VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Oct 31, 2006 -- Lundin Mining Corporation ("Lundin Mining") (TSX:LUN.TO - News)(LMC - News)(OMX: LUMI) and EuroZinc Mining Corporation ("EuroZinc") (TSX:EZM.TO - News)(AMEX:EZM - News) are pleased to announce that the merger between the two companies was finalized today. The merged company, Lundin Mining Corporation, is listed on the Toronto Stock Exchange (TSX symbol LUN), the Stockholm Stock Exchange (SSE symbol LUMI) and the American Stock Exchange (AMEX symbol LMC) as of November 1, 2006.



On August 21, 2006, Lundin Mining and EuroZinc announced that the two companies had entered into an agreement to merge through a Plan of Arrangement. Following approvals at Special Shareholders' Meetings, held by the respective companies, on October 19, 2006, and a court approval on October 24, 2006, the transaction has been closed.

The new company, with a total of 1,500 employees, will operate four profitable mines in Sweden, Portugal and Ireland and in 2007, a fifth mine is planned to start production in Portugal. Production for 2006, on a combined basis, is estimated to be approximately 180,000 tonnes (400 million pounds) of contained zinc, 90,000 tonnes (205 million pounds) of contained copper, 45,000 tonnes (100 million pounds) of contained lead and 6 million ounces of contained silver.

Going forward, in the near term, Lundin Mining expects to increase its zinc, lead and silver production with the start up of the Aljustrel mine in September 2007 and with the potential to increase zinc production at the Neves-Corvo mine which is currently being studied. In addition, the Ozernoe Project will provide a substantial increase in zinc and lead production.

The new Lundin Mining's balance sheet is strong and as of June 30, 2006, had total cash and short term investments of US$229 million, and long term debt of US$43 million. Pro-forma sales for the first half of 2006 amounted to US$462 million with an operating cash flow of US$203 million.

Lukas Lundin will continue as Chairman of Lundin Mining Corporation and Colin K. Benner will be Vice Chairman and Chief Executive Officer. Both will remain based in Vancouver while Karl-Axel Waplan, who will be the President and Chief Operating Officer of Lundin Mining, will remain based in Stockholm. Anders Haker will be the Vice President and Chief Financial Officer while Neil O'Brien will hold the position of Vice President of Exploration and Manfred Lindvall will hold the position of Vice President of Environmental, Safety and Health. Joao Carrelo will continue in the position of Executive Vice President and Chief Operating Officer of the operations in Portugal and Spain, and will remain in Portugal. Kjell Larsson will hold the position of Vice President Projects and the Operations in Ireland and in Sweden. Neil O'Brien, Manfred Lindvall and Kjell Larsson will remain in Sweden.

Both Companies are equally represented on the board of the combined Company that, along with Lukas Lundin as Chairman includes; Colin K. Benner, Donald Charter, John Craig, Brian Edgar, Graham Mascall, David Mullen, Bill Rand, Tony O'Reilly and Dale Peniuk.

"The new Lundin Mining Corporation is well positioned to create shareholder value with its excellent producing properties as well as its pipeline of good internal projects for growth with the Aljustrel and Neves-Corvo zinc projects in Portugal and the Ozernoe zinc project in Russia. As well, we have significant exploration opportunities in the immediate vicinity of our existing operations and in numerous other countries where we have investment interests. All of this coupled with our strong balance sheet bodes well for the Company's growth plans," said Colin K. Benner, CEO of Lundin Mining. "We expect to move quickly to take advantage of our development and exploration prospects and as well to evaluate other growth opportunities around the world."

ON BEHALF OF THE BOARD

Colin K. Benner, Vice Chairman and CEO

thanks for the update.  Do you think we should sell the stocks from the previous ezm?

No.  

There will be ups and downs, there will be wars won and lost, but the market is always efficient and has continued to climb since 1925.  Go to Yahoo Finance and look at the Max graph for the Dow and you'll see why.

I like the fact that this is a company with operating profit necessary to sustain and grow itself.

Lundin mining, a Vancouver company, with global reach and revenue generating capacity, is in growth mode.  They have increased their market share through the acquisition of EZM and EZM shareholders will benefit greatly from the synergy of all the new mining capacity.  Lundin mining is a long-term value play where you put your money and let it sit.  There is consolidation going on and I look for other junior mining companies in Canada to get bought up as well.

Just recently, NXG - Northgate Minerals - was on the acquisition hunt to expand its market share.  They are profitable as well and if they don't target other mining operations for acquisition they may become the target too.  

Wouldn't that be grand!

Thirty and 40 years ago there was a Utah based copper miner named Kennecott Copper selling for as little as $2 dollars a share.  Today they are part of Southern Copper which is selling at near $90/share.


Disclosure:  I hold EZM shares and soon the depository trust will convert my shares to LMC shares.  I also hold NXG shares too.  

The moral of the story - solidly operated mining companys are boring but produce big gains over time.  Don't be tempted to predict and market time your way to the top.  It will only add stress to your life and make you a dull person.  Find undervalued companies that have great products and strong balance sheets and invest like crazy in them.  You won't be as stressed because you won't have to watch the ticker every minute, of every hour, of every day.  

- Bill

Hi Everyone,

I am new to the stock market so I am in doubt about the new EZM merger with Lundin. Hope somebody can clarify me.

I have about a thousand shares of EZM in my Ameritrade account and I noticed they don't move anymore since October 31st. I suppose this is because the ticker symbols have changed and because they no longer trade under EZM. Right?

Anyway, I read from one of the other posts in this same site that the depository trust will convert the EZM shares to LMC.

Could somebody explain to me how would this happen? For example:

How can a stock of EZM worth around 3.36 US BE CONVERTED INTO
a LMC stock which is worth higher more than 39 US each?

Take for example my 1000 shares of EZM I have.

I appreciate any help

Thank You,

Adrian

Thanks Bill,

What do you think about TRE?  it's good i bought 300 shares for my sister right before the deal finished....

Grace

Hi Adrian,

You can try to post your question in the other thread that Bill setup and he would be glad to get back to you (I think!).

Grace

Tanzanian Royalty Exploration Corp. (TRE)

Just doing a cursory review, I'd recommend holding off on an investment in this company.

If you look at the key statistics and company profile they are operating at a loss and to date offer no plans that I can see to commercialize their holdings in property.  Other than their desire for exploration I see huge sunk costs before moving into licensed receipt of gold royalties.

Companies such as TRE need to convert their properties and holdings into license generating royalties to sustain their business activities.  Until that happens the company's viability is in question.  

To date I have not found or read any negotiations or signed agreements to commercialize the exploration activities.

Refraining from losing money is paramount in all investments and trades.  Become a defensive investor by searching for undervalued companies that have room to expand regionally and nationally, are in niched markets, and have strong balance sheets with at least a 2 to 1 current ratio.  One example of an undervalued company is PETS currently selling near $12/sh.  Other examples include the Home building industry such as DHI, KBH, TOL, etc.  The market for new homes and new residential construction is really depressed and is at near bottom.  The home building sector WILL bounce back as history demonstrates over time.

Review the Economic forum to understand market trends for products such as gold.  This includes investor/consumer sentiment, Inflation, Interest Rates, etc. all of which affect the market price of gold.  

Purchasing strong companies, that have taken a hit (i.e., share price) due to economic conditions or seasonal patterns, that are able to weather economic downturns, will provide you with big gains in the market, protect yourself from losses, and you'll sleep better at night.

Just my 2 cents.

- Bill

Thanks, Bill....

Grace