The Swedish-Canadian family in March 2024 invested that amount in Montage Gold Corp., a company in which they already held a significant stake, to support the development of its flagship mine in Ivory Coast.
Adam Lundin, chairman, and Jack Lundin, CEO of Lundin Mining. Photo courtesy of the company |
The wager paid off in January this year when the Toronto-listed firm announced the mine would start producing gold by the end of the year, ahead of schedule.
The stock surged, and Montage’s shares now trade at CAD14.66, up from the price tag of CAD0.7 per unit the Lundins paid for to expand their holding two years ago, according to Bloomberg.
The family’s nearly 20% holding is now valued at about CAD1 billion ($739 million), lifting their total wealth to $18.1 billion.
The striking gain highlights how quickly gold’s role in global finance has evolved since President Donald Trump took office last year.
The war with Iran is expected to further strengthen the metal’s safe-haven appeal, which had already been a key factor behind its recent price surge amid market volatility, Trump’s efforts to influence U.S. monetary policy, and attempts to curb international trade.
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Candelaria Mining Complex (copper, gold and silver) in Chile, operated by Lundin Mining. Photo courtesy of the company |
In January, Montage Gold estimated the total value of the gold in its Ivory Coast mine at $3.1 billion, based on a conservative assumption that the metal would average around $3,000 an ounce over the mine’s 16-year lifespan. Today, it trades at roughly $5,150 an ounce.
The Lundins already held a stake in Montage when the company began raising capital in 2024 for the Ivory Coast project.
Their CAD17.5 million investment in March that year accounted for half of the new shares offered in that funding round, leaving the family with roughly a 20% stake, according to financial filings at the time.
When Montage issued additional shares in August in a CAD180 million funding round led by China’s Zijin Mining Group Co., the Lundins invested a further CAD45 million to maintain their position.
The family now remains Montage’s largest shareholder, with 19.9% of the outstanding shares.
While gold producers have generally benefited from the metal’s rising prices over the past year, Montage’s performance stands out.
Since announcing in January that the Ivory Coast mine was ahead of schedule, the company’s shares have climbed 46%.
By comparison, Lundin Gold Inc., another Toronto-listed firm owned by the family, has gained 1.5% this year.
The Lundins have three generations of mining experience. The family’s history began with Adolf Lundin, a swashbuckling wildcatter who spent the 1970s and 1980s pursuing natural-resource fortunes from the gas fields of Qatar to the gold mines of South Africa.
Adolf’s grandsons, Jack and Adam, both in their 30s, now serve as chief executive officer and chairman, respectively, of Vancouver-headquartered Lundin Mining Corp., the family’s largest company, with interests in copper, zinc, nickel and gold.
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